G Mining Ventures (TSX: GMIN) has released its guidance for 2025, which is highlighted by production guidance at its Tocantinzinho Gold Mine in Brazil. The mine is expected to produce between 175,000 to 200,000 ounces of gold in 2025.
That gold production is expected to occur at a cash cost of between $590 to $655 an ounce, while all in sustaining costs will come in higher at $995 to $1,125 an ounce. Total sustaining costs are expected to amount to between $60 and $70 million, including $2 million in near-mine exploration.
“We expect to build on GMIN’s 2024 operational success in the year ahead, as TZ ramps up throughput, reaching nameplate capacity early in the year, generating meaningful free cash flow to advance development activities at Oko West,” commented Louis-Pierre Gignac, CEO of G Mining.
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READ: G Mining Sees 2024 Production Of 63,566 Gold Ounces
Non-sustaining costs expected for 2025 include $9 million in regional exploration at the Tocantinzinho project, as well as $8 million in Oko West exploration. Oko West is also expected to see expenses of between $200 and $240 million related to project development, while the Gurupi project is expected to see $2 to $4 million spent on it this year. Total non-sustaining costs are estimated at $219 to $261 million.
G Mining this year intends to focus activity at Oko West on permitting, with the goal of obtaining a full environmental licenses from the Guyana EPA. Early works, including site preparation, earthworks, the construction of a barge landing and camp facilities as well as other support infrastructure is to begin in the interim as full licenses are pending. Long-lead time items will also be ordered in an effort to keep the project on schedule, with expenditures here to be funded by cash on hand and the cash flow generated from Tocantinzinho.
A feasibility study for the project is slated to be released in the second quarter, followed by a financing package for the project. The formal construction decision for Oko is expected to be made in the second half of the year.
G Mining Ventures last traded at $12.89 on the TSX.
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