06:43 AM EDT, 09/13/2024 (MT Newswires) -- B2Gold ( BTG ) late on Thursday said its total project construction, mine development and sustaining capital cash expenditures for the Goose project in Canada have increased 23% to $1.54 billion.

About 52% of the cost increase is due to a previously disclosed one-quarter delay in first gold production, as well as the acceleration of capital items previously expected to occur after first gold production. About 24% of the cost increase can be attributed to the higher cost of logistics of shipping materials to the project site.

Construction cash expenditures are now estimated to make up $1.19 billion of the total project cost, an increase of $140 million from the previous estimate. The mine development and sustaining capital cash expenditures estimate has been increased by $150 million to $350 million.

As of June 30, the company had spent about $1.01 billion on construction and mine development costs, two-thirds of the estimated total.

B2Gold ( BTG ) had a working capital balance of $600 million as of June 30 and access to the full amount of its undrawn $700 million revolving credit facility, along with anticipated operating cash flow from existing operations.

The company also expects to spend about $330 million to build up working capital and stockpiles at site to de-risk the ramp up of the operation and reduce operating cash expenditures in future years.

Project construction and development is on track for first gold pour in the second quarter of 2025, followed by a ramp up to commercial production in the third quarter of 2025. The company expects the mine to produce about 310,000 ounces of gold per year over the first full five years.