VANCOUVER (miningweekly.com) – The TSX-listed stock of gold producer B2Gold rallied more than 3% on Friday morning following the company reporting better-than-expected gold output for the three months ended September 30.

The Toronto-headquartered company reported consolidated gold output of 135 628 oz, including 6 340 oz of pre-commercial production from the newly constructed Fekola mine, in Mali, which was mainly attributable to the increase in its gold in-circuit inventory in September, exceeding the company’s original budget by 2%, or 2 254 oz, and the increased guidance by 15%, or 17 372 oz.

The better-than-budgeted and reforecast consolidated gold output reflected the continued strong operating performances at both the Masbate mine, in the Philippines, and the Otjikoto mine, in Namibia, as well as the successful early start-up of the Fekola mine in September.

Commissioning of the Fekola mill is now ongoing and is expected to ramp up quickly to commercial production by the end of the current quarter. The Fekola mine achieved its first gold pour on October 7, about three months ahead of schedule.

At the Masbate mine, B2Gold recorded better-than-expected throughput and recoveries driven by continued higher-than-budgeted oxide ore at the Colorado pit. This has been a continuing trend at the Colorado pit as mining has advanced.

Otjikoto achieved record quarterly output on the back of continued positive grade reconciliation at Wolfshag. Studies indicate continued mining at Wolfshag will potentially be by a larger openpit, rather than underground.

In Nicaragua, the La Libertad mine has been underperforming so far this year. However, mining has started in the San Juan pit and is expected to start in the San Diego pit by year-end. Production from the Jabali Antenna pit is also expected to start early in 2018.

At El Limon, also in Nicaragua, production remained below guidance. Development of the Mercedes South pit is expected to start by year-end. An initial study was completed regarding the potential reprocessing of 11-million tonnes of old tailings grading 0.95 g/t gold, to produce an average of 23 000 oz/y of gold for about 11 years, at a cash operating cost of $500/oz.

B2Gold remains on track to meet the high end of its revised full-year consolidated production guidance range of between 530 000 oz and 570 000 oz of gold, compared with the original guidance of 545 000 oz to 595 000 oz. 2018 guidance remains between 925 000 oz and 975 000 oz.

The company’s TSX-listed stock hit an intraday high of C$3.45 a share on Friday morning.