VANCOUVER, BC, May 4, 2021
/CNW/ - B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX:
B2G) ("B2Gold" or the "Company") is pleased to announce its
operational and financial results for the first quarter of 2021.
The Company previously released its gold production and gold
revenue results for the first quarter of 2021. All dollar figures
are in United States dollars
unless otherwise indicated.
2021 First Quarter Highlights
- Total gold production of 220,644 ounces (including 15,001
ounces of attributable production from Calibre Mining Corp.
("Calibre")), 9% (18,542 ounces) above budget, and consolidated
gold production of 205,643 ounces from the Company's three
operating mines, 9% (17,291 ounces) above budget
- Consolidated gold revenue was $362
million on sales of 202,330 ounces at an average price of
$1,791 per ounce
- Consolidated cash flow provided by operating activities from
the Company's three operating mines of $146
million; B2Gold maintains a strong financial position and
liquidity with cash and cash equivalents of $513 million as at March
31, 2021
- Total consolidated cash operating costs (see "Non-IFRS
Measures") of $609 per ounce
produced, well-below budget by $54
per ounce produced (8%), and total consolidated all-in sustaining
costs ("AISC") (see "Non-IFRS Measures") of $932 per ounce sold, significantly below budget
by $146 per ounce sold (14%)
(including estimated attributable results for Calibre)
- Net income attributable to the shareholders of the Company of
$92 million ($0.09 per share); adjusted net income (see
"Non-IFRS Measures") attributable to the shareholders of the
Company of $97 million ($0.09 per share)
- No Lost-Time-Injury ("LTI") incidents at the Company's
operating mines in the first quarter of 2021, extending the number
of days without an LTI to 437 days for Fekola, 866 days for Masbate
and 154 days for Otjikoto as at March 31,
2021
- Following the successful completion of the Fekola mill
expansion to 7.5 million tonnes per annum ("Mtpa") in September 2020, Fekola's mill throughput was a
quarterly record of 2.07 million tonnes in the first quarter of
2021, 9% above budget and 19% higher than the first quarter of
2020
- For full-year 2021, B2Gold remains well positioned for
continued strong operational and financial performance with total
gold production guidance of between 970,000 - 1,030,000 ounces
(including 50,000 – 60,000 attributable ounces projected from
Calibre) with total consolidated forecast cash operating costs of
between $500 - $540 per ounce and total consolidated AISC of
between $870 - $910 per ounce
- Based on current assumptions, including a gold price of
$1,800 per ounce, the Company expects
to generate cashflows from operating activities of approximately
$630 million for the full-year
2021
- Selected as the recipient of five additional mining industry
awards in the Philippines and
Mali
The Company continues to address the COVID-19 pandemic and
minimize its potential impact at B2Gold's operations. B2Gold places
the safety and well-being of its workforce and all stakeholders as
its highest priority and continues to encourage input from all its
stakeholders as the COVID-19 situation evolves. The Company
continues to implement measures and precautionary steps to manage
and respond to the risks associated with COVID-19 to ensure the
safety of B2Gold's employees, contractors, suppliers and
surrounding communities where the Company works while continuing to
operate. The Company is continually updating these plans and
response measures based on the safety and well-being of its
workforce, the severity of the pandemic in areas where it operates,
global response measures, government restrictions and extensive
community consultation. The Company is working closely with
national and local authorities, including labour unions, and
continues to closely monitor each site's situation, including
public and employee sentiment to ensure that stakeholders are in
alignment with continued safe operation of its mines.
2021 First Quarter Operational Results
Total consolidated gold production in the first quarter of
2021 was 220,644 ounces (including 15,001 ounces of
attributable production from Calibre), above budget by 9% (18,542
ounces), with solid performances from the Company's three
operating mines which all exceeded their budgeted production
together with lower than budgeted cash operating costs per ounce
and AISC for the first quarter. The Fekola Mine in Mali continued its strong operational
performance through the first quarter of 2021, producing 125,088
ounces of gold, 7% (8,088 ounces) above budget, as the Fekola
processing facilities continued to outperform. Following the
successful completion of the Fekola mill expansion to 7.5 Mtpa (an
increase of 1.5 Mtpa from an assumed base rate of 6 Mtpa) in
September 2020, mill throughput was a
quarterly record of 2.07 million tonnes in the first quarter of
2021, 9% above budget and 19% higher than the first quarter of
2020. The Masbate Mine in the
Philippines also had a strong start to the year with first
quarter of 2021 gold production of 57,513 ounces, well-above budget
by 14% (6,852 ounces). The Otjikoto Mine in Namibia performed well during the first
quarter of 2021, producing 23,042 ounces of gold, 11% (2,351
ounces) above budget, with processed tonnes, grade and recoveries
all slightly better than budget. As expected, compared to the first
quarter of 2020, total consolidated gold production was lower by
17% (44,218 ounces), due to planned significant waste stripping
campaigns at both the Fekola and Otjikoto mines, scheduled for the
first half of 2021 (for Phase 5 and Phase 6 of the Fekola Pit, and
Phase 3 of each of the Wolfshag and Otjikoto pits). Gold production
is expected to significantly increase in the second half of 2021,
when mining at Fekola reaches the higher-grade zones of the Fekola
Pit and mining at Otjikoto reaches the higher-grade zone at the
base of the Wolfshag Pit.
For the first quarter of 2021, total consolidated cash operating
costs (including estimated attributable results for Calibre)
were $609 per ounce produced
($582 per ounce sold), well-below
budget by $54 per ounce produced
(8%), mainly as a result of higher than budgeted gold production.
As expected, total consolidated cash operating costs were higher in
the first quarter of 2021 compared to the quarterly record low
total consolidated cash operating costs of $389 per ounce produced ($405 per ounce sold) in the first quarter of
2020, mainly as a result of the planned lower gold production and
higher period stripping activities, fuel costs and import
duties.
Total consolidated AISC for the first quarter of 2021 were
$932 per ounce sold (Q1 2020 -
$721 per ounce sold), significantly
below budget by $146 per ounce sold
(14%), mainly attributable to the lower than budgeted cash
operating costs, higher than budgeted ounces sold, and lower than
budgeted general and administrative costs and sustaining capital
expenditures. The lower than budgeted sustaining capital
expenditures are mainly due to timing of expenditures and are
expected to be incurred later in 2021.
For full-year 2021, the Company's total gold production is
forecast to be between 970,000 - 1,030,000 ounces (including 50,000
- 60,000 attributable ounces projected from Calibre), with total
consolidated cash operating costs forecast to be between
$500 - $540 per ounce and total consolidated AISC
forecast to be between $870 -
$910 per ounce. The Company's 2021
production guidance does not include the potential upside to
increase Fekola's gold production in 2021 from the nearby Cardinal
resource and the higher than budgeted processing capacity currently
being investigated.
For full-year 2021, the Company's consolidated gold production
from its three operating mines is expected to be significantly
weighted to the second half of 2021 due to planned significant
waste stripping at both the Fekola and Otjikoto mines in the first
half of 2021. For the first half of 2021, consolidated gold
production is expected to be between 365,000 – 385,000 ounces,
which is expected to increase significantly to between 555,000 –
585,000 ounces during the second half of 2021 when mining
reaches the higher grade portion of Phase 5 of the Fekola Pit
and Phase 3 of the Wolfshag Pit. Based mainly on the weighting of
production and timing of stripping, consolidated cash
operating costs are expected to be between $620 - $660 per
ounce in the first half of 2021, before significantly
improving to between $380 -
$420 per ounce during the second
half of 2021. In addition, consolidated AISC are expected to
be between $1,040 - $1,080 per ounce in the first half of 2021,
before significantly improving to between $745 - $785 per
ounce during the second half of 2021.
2021 First Quarter Financial Results
For the first quarter of 2021, consolidated gold revenue was
$362 million on sales of 202,330
ounces at an average price of $1,791
per ounce, compared to $380 million
on sales of 239,500 ounces at an average price of $1,588 per ounce in the first quarter of 2020.
The decrease in gold revenue of $18
million (5%) was 16% attributable to the decrease in gold
ounces sold (mainly due to the lower gold production), partially
offset by an 11% impact from the increase in the average realized
gold price.
For the first quarter of 2021, cash flow provided by operating
activities was $146 million, lower,
as expected, compared to $216 million
in the first quarter of 2020. The decrease of $70 million was mainly due to lower revenues of
$18 million, higher production costs
of $20 million and higher working
capital outflows in the first quarter of 2021 for value-added and
other tax receivables and current income and other taxes
payable.
Net income for the first quarter of 2021 was $99 million compared to $83 million for the first quarter of 2020. Net
income attributable to the shareholders of the Company was
$92 million ($0.09 per share) compared to $72 million ($0.07
per share) for the first quarter of 2020. Adjusted net income
attributable to the shareholders of the Company (see "Non-IFRS
Measures") was $97 million
($0.09 per share) compared to
adjusted net income of $95 million
($0.09 per share) for the first
quarter of 2020.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and
liquidity. At March 31, 2021, the
Company had cash and cash equivalents of $513 million (December 31,
2020 - $480 million) and
working capital of $536 million
(December 31, 2020 - $465 million). In addition, the Company's
$600 million Revolving Credit
Facility remains fully undrawn and available.
Due to the Company's strong net positive cash position, strong
operating results and the current higher gold price environment,
B2Gold's quarterly dividend rate is expected to be maintained at
$0.04 per common share (or an
annualized rate of $0.16 per common
share), one of the highest dividend yields in the gold sector.
In 2021, the Company expects to generate cashflows from
operating activities of approximately $630
million, based on current assumptions including an average
gold price of $1,800 per
ounce. Approximately $500
million of this total is expected to be generated in the
second half of 2021, when the Company starts mining from
the higher grade areas of the Fekola Pit and mining at Otjikoto
reaches the higher grade zone at the base of the Wolfshag Pit. The
Company's operating cashflows in the second quarter of 2021 are
forecast to be impacted, as expected, by the settlement of the
Company's 2020 year-end income tax and Fekola priority dividend
obligations and other tax installment payments totaling
approximately $140 million.
Operations
Mine-by-mine gold production in the first quarter of 2021
(including the Company's estimated 33% share of Calibre's
production) was as follows:
Mine
|
Q1
2021 Gold
Production
(ounces)
|
First-Half
2021 Forecast Gold Production (ounces)
|
Second-Half
2021
Forecast Gold
Production (ounces)
|
Full-year 2021
Forecast Gold
Production (ounces)
|
Fekola
|
125,088
|
220,000 -
230,000
|
310,000 -
330,000
|
530,000 -
560,000
|
Masbate
|
57,513
|
100,000 -
105,000
|
100,000 -
105,000
|
200,000 -
210,000
|
Otjikoto
|
23,042
|
45,000 -
50,000
|
145,000 -
150,000
|
190,000 -
200,000
|
B2Gold
Consolidated (1)
|
205,643
|
365,000 –
385,000
|
555,000 –
585,000
|
920,000 –
970,000
|
|
|
|
|
|
Equity interest
in Calibre (2)
|
15,001
|
25,000 -
30,000
|
25,000 -
30,000
|
50,000 -
60,000
|
|
|
|
|
|
Total
|
220,644
|
390,000 –
415,000
|
580,000 –
615,000
|
970,000 –
1,030,000
|
|
|
(1)
|
"B2Gold
Consolidated" - gold production is presented on a 100% basis, as
B2Gold fully consolidates the results of its Fekola, Masbate and
Otjikoto mines in its consolidated financial statements (even
though it does not own 100% of these
operations).
|
(2)
|
"Equity interest
in Calibre" - represents the Company's approximate 33% indirect
share of the operations of Calibre's El Limon and La Libertad
mines. B2Gold applies the equity method of accounting for its 33%
ownership interest in Calibre.
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold produced basis) in the first quarter of 2021 were as
follows (presented on a 100% basis):
Mine
|
Q1
2021 Cash Operating
Costs ($ per ounce
produced)
|
First-Half
2021 Forecast Cash Operating Costs ($ per ounce
produced)
|
Second-Half
2021 Forecast Cash Operating
Costs ($ per ounce
produced)
|
Full-year 2021
Forecast Cash
Operating
Costs ($ per ounce
produced)
|
Fekola
|
$503
|
$530 -
$570
|
$315 -
$355
|
$405 -
$445
|
Masbate
|
$608
|
$670 -
$710
|
$630 -
$670
|
$650 -
$690
|
Otjikoto
|
$940
|
$940 -
$980
|
$330 -
$370
|
$480 -
$520
|
B2Gold
Consolidated
|
$581
|
$620 -
$660
|
$380 -
$420
|
$480 -
$520
|
|
|
|
|
|
Equity interest
in Calibre (1)
|
$991
|
$920 -
$1,020
|
$920 -
$1,020
|
$920 -
$1,020
|
|
|
|
|
|
Total
|
$609
|
$640 -
$680
|
$400 -
$440
|
$500 -
$540
|
|
|
(1)
|
Calibre's 2021
forecast cash operating costs are assumed to be consistent
throughout 2021.
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold sold basis) in the first quarter of 2021 were as follows
(presented on a 100% basis):
Mine
|
Q1
2021 Cash Operating
Costs
($ per ounce sold)
|
First-Half
2021 Forecast Cash Operating Costs ($ per ounce sold)
|
Second-Half
2021 Forecast Cash Operating Costs ($ per ounce sold)
|
Full-year 2021
Forecast Cash Operating
Costs ($ per ounce
sold)
|
Fekola
|
$479
|
$530 -
$570
|
$315 -
$355
|
$405 -
$445
|
Masbate
|
$578
|
$670 -
$710
|
$630 -
$670
|
$650 -
$690
|
Otjikoto
|
$823
|
$940 -
$980
|
$330 -
$370
|
$480 -
$520
|
B2Gold
Consolidated
|
$552
|
$620 -
$660
|
$380 -
$420
|
$480 -
$520
|
|
|
|
|
|
Equity interest
in Calibre (1)
|
$981
|
$920 -
$1,020
|
$920 -
$1,020
|
$920 -
$1,020
|
|
|
|
|
|
Total
|
$582
|
$640 -
$680
|
$400 -
$440
|
$500 -
$540
|
|
|
(1)
|
Calibre's 2021
forecast cash operating costs are assumed to be consistent
throughout 2021.
|
Mine-by-mine AISC (on a per ounce of gold sold basis) in the
first quarter of 2021 were as follows (presented on a 100%
basis):
Mine
|
Q1
2021 Forecast AISC ($
per ounce sold)
|
First-Half
2021 Forecast AISC ($
per ounce sold)
|
Second-Half
2021 Forecast AISC ($
per ounce sold)
|
Full-year 2021
Forecast AISC ($
per ounce sold)
|
Fekola
|
$770
|
$850 -
$890
|
$670 -
$710
|
$745 -
$785
|
Masbate
|
$818
|
$980 -
$1,020
|
$940 -
$980
|
$955 -
$995
|
Otjikoto
|
$1,475
|
$1,600 -
$1,640
|
$580 -
$620
|
$830 -
$870
|
B2Gold
Consolidated
|
$919
|
$1,040 -
$1,080
|
$745 -
$785
|
$860 -
$900
|
|
|
|
|
|
Equity interest
in Calibre (1)
|
$1,098
|
$1,040 -
$1,140
|
$1,040 -
$1,140
|
$1,040 -
$1,140
|
|
|
|
|
|
Total
|
$932
|
$1,040 -
$1,080
|
$760 -
$800
|
$870 -
$910
|
|
|
(1)
|
Calibre's 2021
forecast AISC are assumed to be consistent throughout 2021.
|
Fekola Gold Mine - Mali
The Fekola Mine in Mali
continued its strong operational performance through the first
quarter of 2021, producing 125,088 ounces of gold, 7% (8,088
ounces) above budget, as the Fekola processing facilities continued
to outperform. Following the successful completion of the Fekola
mill expansion to 7.5 Mtpa (an increase of 1.5 Mtpa from an assumed
base rate of 6 Mtpa) in September
2020, mill throughput was a quarterly record of 2.07 million
tonnes in the first quarter of 2021, which was 9% above budget and
19% higher than the first quarter of 2020. Fekola's higher than
budgeted mill throughput was mainly due to favourable ore
fragmentation and hardness, and optimization of the grinding
circuit. As expected, compared to the first quarter of 2020, gold
production was lower by 24% (38,923 ounces), as a result of the
planned significant waste stripping and lower mined ore grades, as
Phases 5 and 6 of the Fekola Pit are developed during the
first half of 2021. Mined ore tonnage and grade continue to
reconcile well with the Fekola resource model, and ore production
is expected to significantly increase in the second half of 2021
when mining reaches the higher-grade zones of the Fekola Pit. As at
March 31, 2021, the Fekola Mine had
achieved 437 days without a LTI.
For the first quarter of 2021, mill feed grade was 1.99 grams
per tonne ("g/t") compared to budget of 2.03 g/t and 3.11 g/t in
the first quarter of 2020; mill throughput was 2.07 million tonnes
compared to budget of 1.91 million tonnes and 1.75 million tonnes
in the first quarter of 2020; and gold recovery averaged 94.4%
compared to budget of 94.0% and 93.8% in the first quarter of 2020.
Processed grade was lower compared to the first quarter of 2020,
mainly as a result of the focus on higher mill feed grade and the
stockpiling strategy used during the mill expansion activities in
the first quarter of 2020, in addition to the aforementioned lower
mined ore grades in the first quarter of 2021 as Phases 5
and 6 of the Fekola Pit are developed.
The Fekola mill has the potential to run above the expanded
annualized throughput rate of 7.5 Mtpa and analysis is currently
underway to determine the optimum throughput rate. For 2021
budgeting purposes, the Company has assumed a throughput rate of
7.75 Mtpa. Mill processing trials conducted in the fourth quarter
of 2020 demonstrate the potential to optimize the grind-throughput
capacity of the expanded facility and increase hard-rock
throughput, and support the addition of saprolite ore tonnage in
excess of the hard-rock capacity. Based on positive results to
date, Fekola's annualized throughput rate is expected to continue
to remain above 8.0 Mtpa.
Production planning for the nearby Cardinal resource area,
located within 500 metres of the current Fekola resource pit, is
currently underway (the initial Inferred Mineral Resource estimate
for Cardinal is 640,000 ounces of gold in 13.0 million tonnes of
ore at 1.54 g/t gold). Grade control drilling for a bulk sample at
Cardinal has been completed, and preparations for the bulk
sample are underway with sampling expected to begin in the second
quarter of 2021. An Environmental and Social Impact Assessment has
been completed and submitted to the Malian authorities. Approval of
the addition of Cardinal to the Fekola environmental permit is
expected shortly and following this, an application will be made to
add mining at Cardinal to the Fekola Mine plan.
For the first quarter of 2021, Fekola's cash operating costs
were $503 per ounce produced
($479 per ounce sold), well-below
budget by $55 per ounce produced
(10%), mainly as a result of higher than budgeted gold production.
Mining and processing costs were also below budget for the quarter,
mainly due to lower than budgeted maintenance costs and cyanide
consumption, and earlier than planned power production from the new
Fekola solar power facility. As expected, Fekola's cash operating
costs were higher in the first quarter of 2021 compared to Fekola's
quarterly record low cash operating costs of $251 per ounce produced ($286 per ounce sold) in the first quarter of
2020, mainly as a result of the planned lower gold production and
higher period stripping activities in the first quarter of 2021, as
well as higher fuel costs, import duties and ongoing COVID-19
related labour and medical costs in Mali.
Fekola's AISC for the first quarter of 2021 were $770 per ounce sold (Q1 2020 - $519 per ounce sold), significantly below budget
by $128 per ounce sold (14%), mainly
attributable to the lower than budgeted cash operating costs.
Capital expenditures for the first quarter of 2021 totaled
$17 million, primarily consisting of
$6 million for the solar plant,
$6 million for pre-stripping and
$3 million for mine
infrastructure.
For full-year 2021, the Fekola Mine is expected to produce
between 530,000 - 560,000 ounces of gold at cash operating
costs of between $405 - $445 per
ounce and AISC of between $745
- $785 per ounce. Additional mining from the Cardinal
resource area and higher than budgeted processing capacity are
currently being investigated (as discussed above), with the
potential to increase Fekola's budgeted 2021 and longer-term gold
production.
As a result of the planned waste stripping and lower mined ore
grades in the first half of 2021, as Phase 5 and 6 of the Fekola
Pit are developed, production is expected to be significantly
weighted to the second half of 2021 (when mining reaches the
higher grade portion of Phase 5 of the Fekola Pit). For the
first half of 2021, Fekola's gold production is expected to be
between 220,000 – 230,000 ounces, which is expected to increase
significantly to between 310,000 – 330,000 ounces during the second
half of 2021. Based mainly on the weighting of production and
timing of waste stripping, Fekola's cash operating costs are
expected to be between $530 -
$570 per ounce in the first half
of 2021, before significantly improving to between $315 - $355 per
ounce during the second half of 2021. In addition,
Fekola's AISC are expected to be between $850 - $890 per
ounce in the first half of 2021, before significantly
improving to between $670 -
$710 per ounce during the second
half of 2021.
Fekola Solar Plant
Following the temporary suspension of solar plant construction
activities in April 2020 due to COVID-19 restrictions,
site activities recommenced on October 2, 2020, and
construction progress is now approximately 95% complete.
On January 5, 2021, a fire in the solar storage yard destroyed
approximately 25% of the solar panels for the
project. Replacement panels have been sourced and are
scheduled to arrive on site by
mid-May 2021. Approximately 25% of the solar field came
online on January 28, 2021 and solar production reached
75% of full installed capacity by the end of March 2021 when the plant was turned over to the
Fekola operations team. Solar power production with only 75%
installed capacity has exceeded daily baseline targets for the full
project, with several days of fuel cost savings of over
$32,000 versus a goal of $25,000 per day, and replacement of up to 20% of
the total daily power compared to a baseline goal of 18%.
The schedule for installation of the remaining 25% is contingent
on the delivery of the replacement panels, but full construction
completion is now projected by the end of the second
quarter of 2021. The Company does not anticipate any
significant impact on Fekola's 2021 budgeted cash operating costs
as a result of the delay in completion of the solar plant. The
existing heavy fuel oil ("HFO") and diesel power plant have an
installed capacity of 64 megawatts while Fekola's expanded mill
facilities require only approximately 40 megawatts for continuous
operations. The solar plant is therefore not a necessary component
to sustain the higher process plant production rate but is expected
to reduce Fekola's operating costs and emissions by decreasing
power plant fuel consumption and maintenance costs. When the plant
is fully commissioned, it is expected to reduce HFO consumption by
over 13 million litres per year and lower carbon dioxide emissions
by an estimated 39,000 tonnes per year.
Menankoto Permit
The Company's Malian subsidiary, Menankoto SARL ("Menankoto")
applied for a renewal of the Menankoto exploration permit (the
"Menankoto Permit") in early February
2021 but was subsequently advised in early March 2021 that the permit had been granted to a
third party. The Company believes that the grant of the exploration
permit covering the perimeter of the Menankoto Permit to a third
party is contrary to Menankoto's legal rights under both the 2012
Malian Mining Code and the 2019 Malian Mining Code. Discussions
with the Government in Mali
continue to advance in order to resolve the issue. The Company
strongly believes that Menankoto is entitled to a renewal of the
Menankoto Permit under applicable law and in the event that
discussions with the government are unsuccessful, the Company
intends to pursue all available legal remedies to resolve this
issue.
Masbate Gold Mine – the
Philippines
The Masbate Mine in the
Philippines also had a strong start to the year with first
quarter of 2021 gold production of 57,513 ounces, well-above budget
by 14% (6,852 ounces). Gold production improved against budget
mainly due to higher than budgeted mill recoveries (10%
above budget) and included processed ore from two main
sources. In the first quarter of 2021, recoveries relating to
mill feed sourced from high-grade sulfide ore mined from Main Vein
Pit Phases 4 and 5 in the quarter were 8% above budget, while
recoveries relating to processed low-grade stockpile tonnage,
originally mined from the Colorado Pit, were 7% above budget.
In addition, oxide ore processed during the first quarter of 2021
was 4% higher than budget, which also contributed to the higher
recoveries. Compared to the first quarter of 2020, gold production
in the first quarter of 2021 was higher by 28% (12,641 ounces),
mainly due to higher mined ore grades in the first quarter of 2021,
as a result of mining through a higher-grade zone of the Main Vein
Pit. The Masbate Mine continued its remarkable safety performance,
extending the number of days without an LTI to 866 days as at
March 31, 2021.
For the first quarter of 2021, mill feed grade was 1.10 g/t
compared to budget of 1.06 g/t and 0.90 g/t in the first quarter of
2020; mill throughput was 1.95 million tonnes compared to budget of
1.95 million tonnes and 1.87 million tonnes in the first quarter of
2020; and gold recovery averaged 83.6% compared to budget of 75.7%
and 83.2% in the first quarter of 2020.
For the first quarter of 2021, Masbate's cash operating costs
were $608 per ounce produced
($578 per ounce sold), well-below
budget by $80 per ounce produced
(12%) and significantly lower than the first quarter of 2020 by
$114 per ounce produced (16%), mainly
the result of higher gold production.
Masbate's AISC for the first quarter of 2021 were $818 per ounce sold, significantly below budget
by $194 per ounce sold (19%) and
well-below the first quarter of 2020 by $90 per ounce sold (10%). The favourable budget
variance reflected the lower than budgeted cash operating costs,
higher than budgeted gold ounces sold and lower than budgeted
sustaining capital expenditures (mainly due to the timing of
rebuilds and pre-stripping).
Capital expenditures for the first quarter of 2021 totaled
$7 million, primarily consisting of
$2 million for mobile equipment
acquisition costs and rebuilds, $2
million for tailings storage facility projects and
$1 million for pre-stripping.
For full-year 2021, the Masbate Mine is expected to produce
between 200,000 - 210,000 ounces of gold at cash operating
costs of between $650 - $690 per ounce and AISC of
between $955 - $995 per ounce. Masbate's gold
production is expected to be relatively consistent throughout each
of the quarters in 2021.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia
performed well during the first quarter of 2021, producing 23,042
ounces of gold, 11% (2,351 ounces) above budget, with processed
tonnes, grade and recoveries all slightly better than budget. As
expected, compared to the first quarter of 2020, gold production
was significantly lower by 45% (18,707 ounces), as processed ore is
primarily being sourced from existing stockpiles while significant
waste stripping operations continue at both the Wolfshag and
Otjikoto pits. Mined ore tonnage and grade continue to reconcile
well with Otjikoto's resource model, and ore production is forecast
to significantly increase in the second half of 2021 when mining
reaches the higher-grade zone at the base of the Wolfshag Pit. The
Otjikoto Mine has a remarkable safety record, with no LTI's for the
period from March 27, 2018 until
October 29, 2020, when an LTI for a
fractured ankle occurred. As at March 31,
2021, the Otjikoto Mine had achieved 154 days without an
LTI.
For the first quarter of 2021, mill feed grade was 0.82 g/t
compared to budget of 0.79 g/t and 1.54 g/t in the first quarter of
2020; mill throughput was 0.89 million tonnes compared to budget of
0.84 million tonnes and 0.86 million tonnes in the first quarter of
2020; and gold recovery averaged 97.6% compared to budget of 97.3%
and 98.4% in the first quarter of 2020.
For the first quarter of 2021, Otjikoto's cash operating costs
were $940 per ounce produced
($823 per ounce sold), below budget
by $56 per ounce produced (6%),
mainly as a result of higher than budgeted gold production. As
expected, Otjikoto's cash operating costs were higher in the first
quarter of 2021 compared to $441 per
ounce produced ($416 per ounce sold)
in the first quarter of 2020, mainly as a result of the planned
lower gold production.
Otjikoto's AISC for the first quarter of 2021were $1,475 per ounce sold (Q1 2020 - $850 per ounce sold), significantly below budget
by $243 per ounce sold (14%), mainly
due to lower than budgeted cash operating costs and higher than
budgeted gold ounces sold, partially offset by higher than budgeted
sustaining capital expenditures (due to higher than budgeted
pre-stripping).
Capital expenditures for the first quarter of 2021 totaled
$19 million, primarily consisting of
$12 million for pre-stripping in the
Otjikoto Phase 3 and Wolfshag Phase 3 pits, $2 million for mobile equipment rebuilds and
replacements and $4 million for
Wolfshag underground development.
Development of the Wolfshag underground mine continues to
progress on schedule. In the fourth quarter of 2020, development of
the portal was completed, and development of the primary
underground ramp commenced. Development continued during the first
quarter of 2021, and stope ore production is expected to commence
in early 2022, in-line with original estimates. The initial
underground Mineral Reserve estimate for the down-plunge extension
of the Wolfshag orebody included 210,000 ounces of gold in 1.2
million tonnes of ore at 5.57 g/t gold.
For full-year 2021, the Otjikoto Mine is expected to produce
between 190,000 - 200,000 ounces of gold, as high-grade ore is
scheduled to be sourced from Phase 3 of the Wolfshag Pit in the
second half of 2021. Otjikoto's cash operating costs are forecast
to be between $480 - $520 per
ounce and AISC to be between $830 - $870 per ounce.
Approximately 70% of the gold produced in 2021 is expected to be
mined from Phase 3 of the Wolfshag Pit, with material ore
production starting early in the third quarter of 2021 following
the waste stripping campaign. As a result of the timing of this
high-grade ore mining, Otjikoto's production is expected to be
significantly weighted to the second half of 2021. For the first
half of 2021, Otjikoto's gold production is expected to be between
45,000 – 50,000 ounces, before increasing significantly to between
145,000 – 150,000 ounces during the second half of 2021. Based
mainly on the weighting of the planned production and timing of
higher waste stripping, Otjikoto's cash operating costs are
expected to be between $940 -
$980 per ounce in the first half
of 2021, before significantly improving to between $330 - $370 per
ounce during the second half of 2021. In addition,
Otjikoto's AISC are expected to be between $1,600 - $1,640 per
ounce in the first half of 2021, before significantly
improving to between $580 -
$620 per ounce during the second
half of 2021. In the first quarter of 2021, gold production at
Otjikoto was forecast to be lower and costs forecast to be higher
than the second quarter of 2021, due to the significant amount of
waste stripping and lower stockpile grades processed early in the
year.
Otjikoto's higher 2021 gold production level of between 190,000
– 200,000 ounces is expected to continue through to 2024, with
production from Wolfshag underground expected to commence in early
2022 to supplement ore from the Otjikoto Pit as well as existing
medium and low-grade stockpiles for approximately three years based
on current estimates.
2021 Development
Gramalote Project (B2Gold – 50%/AngloGold Ashanti Limited – 50%)
- Colombia
The Gramalote Project, owned 50% B2Gold/50% AngloGold Ashanti
Limited ("AngloGold") is located in central Colombia northeast of Medellin, in the Province of Antioquia.
Following on the positive results of the Gramalote preliminary
economic assessment in January 2020
(the "Gramalote PEA"), B2Gold commenced the Gramalote feasibility
study to evaluate recovery of gold from an open-pit mining
operation with a 11.0 Mtpa processing plant that includes crushing,
grinding, flotation and a carbon-in-pulp recovery process to
produce doré bullion. The Gramalote feasibility study approach
focused solely on a production scenario based on the Indicated
Mineral Resource estimate from the Gramalote Ridge deposit of
173,400,000 tonnes grading 0.73 g/t gold for a total of 4,060,000
ounces of gold. The feasibility study approach to date has not
included any potential production from the nearby Trinidad deposit, which has a current Inferred
Mineral Resource estimate, and the Monjas West zone.
As a continuation of the Gramalote PEA, the feasibility study
approach to date has also focused on applying most of the same
assumptions and parameters, with the material changes being the
updated Indicated Mineral Resource estimate, as well as updated
cost assumptions for fuel, electricity, labour, equipment, and
construction materials. By design, there is no material change to
the project construction or operating parameters apart from
refinement of the designs to feasibility levels of confidence.
Based on the feasibility study work completed by B2Gold as operator
of the Gramalote Project to date, and assuming an effective date of
January 1, 2021, and a gold price of
$1,500 per ounce, the project
economic highlights include (100% basis):
- Open-pit gold mine with an initial life of mine ("LoM") of 10.6
years based on current Indicated Mineral Resources (for Gramalote
Ridge only)
- LoM gold production of 2.97 million ounces and average annual
gold production of 347,000 ounces per year for the first five full
years of production
- Average annual gold production LoM of 281,000 ounces per year
at cash operating costs of $514 per
ounce of gold and AISC of $744 per
ounce of gold
- Average LoM gold recovery of 95.4% from conventional milling,
flotation and cyanide leach of the flotation concentrate
- Estimated pre-production capital cost of $925 million (includes approximately $160 million for mining equipment)
- LoM pre-tax net cash flow of $1,444
million, and after-tax net cash flow of $948 million
- Post-tax NPV at a 5% discount rate of $483 million
- After-tax internal rate of return ("IRR") of 15% at the project
construction decision date with a project payback (including
construction capital) of 3.5 years
Based on a review of the feasibility study work to date, B2Gold
believes that there is strong potential for a more robust project,
which could be developed by revisiting the original Project design
parameters included in the existing mining permit as applied in the
Gramalote PEA and historical AngloGold studies and further
optimizing project design. The Gramalote Project team has
identified project optimization opportunities, including potential
reductions in capital and operating costs, as well as improved
operability and sustainability. In addition, development and review
of the updated Mineral Resource estimate has indicated that further
value is available through additional drilling of the Inferred
portions of the Mineral Resource area, both within and adjacent to
the designed pit.
The Gramalote Project partners are currently reviewing a revised
feasibility study budget totalling $86
million which would allow the final feasibility study to be
completed by the end of the first quarter of 2022 and incorporate
the identified optimization potential and a decision is expected to
be announced shortly. The completion date of March 2022 is also expected to accommodate the
additional Government six-month consultation and approval period
that is required to get approval for concurrent resettlement. This
represents an increase of $34 million
(Company's share $17 million) over
the initial announced 2021 Gramalote Project budget of $52 million. In conjunction with this, B2Gold
expects that changes in design that modify the approved
Environmental and Social Impact Assessment (ESIA) will potentially
include minor and major permit amendments impacting the development
timeline of the Gramalote Project, delaying delivery of a final
feasibility study for the Gramalote Project until the end of the
first quarter of 2022. B2Gold is proposing to the Gramalote Project
that optimization efforts should include continuing exploration
drilling at the Gramalote deposit with additional drilling and the
Trinidad deposit and Monjas West
zone, continuing to implement the Resettlement Action Plan,
advancing the purchase of key properties required for project
development, entering into a development agreement with a power
company to commence studies to bring power to the Gramalote mill
site, continuing the process of formalization and removal of
artisanal miners to outside of the industrial area, and completing
environmental and social studies necessary to support any potential
permit modifications that are identified as part of the
optimization process.
A revised schedule and budget for the proposed optimizations,
continued sustainability projects, further exploration and
completion of a final feasibility study is being developed. The
Gramalote Project will continue to advance resettlement programs,
establish coexistence programs for small miners, work on health,
safety and environmental projects and continue to work with
government and local communities on social programs. Advancement of
these commitments is viewed as an essential part of project
development.
The Environmental Impact Study and Project Implementation Plans
for the Gramalote Project have been fully approved by the National
Authority of Environmental Licenses of Colombia. Depending on the results of the
project optimization studies and changes to the project layout, a
Modified Environment Impact Study and a Modified Project
Implementation plan may be required. Based on preliminary
discussions with the Colombian government, the Company expects that
these potential minor or major modifications will not impact the
license but may delay the implementation schedule (length of delay
will depend on the significance of potential modifications).
If the final economics of the feasibility study are positive and
B2Gold and AngloGold make the decision to develop Gramalote as an
open-pit gold mine, B2Gold would utilize its proven internal mine
construction team to build the mine and mill facilities and operate
the mine on behalf of the Gramalote Project.
Kiaka Development Project - Burkina
Faso
The Company is currently updating the existing feasibility study
for the Kiaka Project in Burkina
Faso, due to the potential for improved economics resulting
from lower fuel prices, alternative power options and a higher gold
price. The Company expects to complete an updated feasibility study
for the Kiaka Project by mid-year 2021.
Summary and Outlook
For 2021, B2Gold remains well positioned for continued strong
operational and financial performance with total gold production
guidance of between 970,000 and 1,030,000 ounces, total
consolidated cash operating costs forecast to be between
$500 and $540 per ounce and total consolidated AISC
forecast to be between $870 and
$910 per ounce. The Company's
consolidated gold production from its three operating mines is
forecast to be between 920,000 and 970,000 ounces in 2021. The
Company's 2021 production guidance does not, however, include the
potential upside to increase Fekola's gold production in 2021 from
additional mining from the Cardinal resource area and the higher
than budgeted processing capacity currently being investigated.
Due to the Company's strong net positive cash position, strong
operating results and the current higher gold price environment,
B2Gold's quarterly dividend rate is expected to be maintained at
$0.04 per common share (or an
annualized rate of $0.16 per common
share), one of the highest dividend yields in the gold sector.
The Company continues to advance its pipeline of development
projects. Work continues on the Gramalote Project. Based on a
review of the feasibility study work to date, B2Gold believes that
there is strong potential for a more robust project. This is
expected to include revisiting the original Project design
parameters included in the existing mining permit, further
optimizing project design and additional drilling of the inferred
portion of the Gramalote Mineral Resource. The Gramalote
feasibility study is now expected to be completed by the end of the
first quarter of 2022. The Company is currently also updating
the existing feasibility study for the Kiaka Project in
Burkina Faso, due to the potential
for improved economics resulting from lower fuel prices,
alternative power options and a higher gold price. The Company
expects to have completed an updated feasibility study for the
Kiaka Project by mid-year 2021.
Following a very successful year for exploration in 2020, B2Gold
has commenced an aggressive exploration campaign in 2021 with a
budget of approximately $66 million
(excluding the Gramalote Project). Exploration will focus
predominantly in Mali, other
operating mine sites in Namibia
and the Philippines and grassroots
exploration programs around the world. Many years of target
generation and pursuing opportunities in prospective gold regions
have culminated in the Company allocating a record $25 million in 2021 to high quality targets for
its grassroots exploration programs, including a number of new
regions.
The Company was recently selected as the recipient of five
mining industry awards in the
Philippines and Mali. In
the Philippines, the two companies
that comprise the Masbate Gold Project, Filminera Resources
Corporation and Phil. Gold Processing & Refining Corp.,
received four awards in the recently-concluded 2020 Presidential
Mineral Industry Environmental Awards ("PMIEA"), in the "Best
Mining Forest and Safest Mine" categories. The PMIEAs are
given to mining companies that exhibit best practices in safety and
health management, environmental protection and community
development. In Mali, a subsidiary
of the Company, B2Gold Mali SARL, was recognized by Le Baromètre, a
citizen watch organization that monitors the performance of public
and private sector organizations, as Mali's "Best Mining Company of 2020".
The Company's ongoing strategy is to continue to maximize
profitable production from its mines, further advance its pipeline
of development and exploration projects, evaluate opportunities and
continue to pay a dividend.
First Quarter 2021 Financial Results - Conference Call
Details
B2Gold executives will host a conference call to discuss the
results on Wednesday, May 5, 2021, at
10:00 am PST/1:00 pm EST. You may access the call by dialing
the operator at +1 (778)-371-9827 / +1 (647)-427-7450 (Vancouver/Toronto) or toll free at +1 (888)-231-8191
prior to the scheduled start time or you may listen to the call via
webcast by clicking:
https://www.webcaster4.com/Webcast/Page/1493/40852. A playback
version will be available for two weeks after the call at +1
(416)-849-0833 (local or international) or toll free at +1
(855)-859-2056 (passcode 5695701).
Qualified Persons
Bill Lytle, Senior Vice President
of Operations, a qualified person under NI 43-101, has approved the
scientific and technical information related to operations matters
contained in this news release.
On Behalf of B2GOLD CORP.
"Clive T.
Johnson"
President
and Chief Executive
Officer
For more information on B2Gold please visit the Company website
at www.b2gold.com or contact:
Ian
MacLean
|
Katie Bromley
|
Vice President,
Investor Relations
|
Manager,
Investor Relations & Public Relations
|
604-681-8371
|
604-681-8371
|
imaclean@b2gold.com
|
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE American LLC neither
approve nor disapprove the information contained in this news
release.
Production results and production guidance presented in this
news release reflect total production at the mines B2Gold operates
on a 100% project basis. Please see our Annual Information Form
dated March 30, 2021 for a discussion
of our ownership interest in the mines B2Gold operates.
This news release includes certain "forward-looking
information" and "forward-looking statements" (collectively
forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation, including: projections; outlook; guidance;
forecasts; estimates; and other statements regarding future or
estimated financial and operational performance, gold production
and sales, revenues and cash flows, and capital costs (sustaining
and non-sustaining) and operating costs, including projected cash
operating costs and AISC, and budgets on a consolidated and mine by
mine basis; the impact of the COVID-19 pandemic on B2Gold's
operations, including any restrictions or suspensions with respect
to our operations and the effect of any such restrictions or
suspensions on our financial and operational results; the ability
of the Company to successfully maintain our operations if they are
temporarily suspended, and to restart or ramp-up these operations
efficiently and economically, the impact of COVID-19 on the
Company's workforce, suppliers and other essential resources and
what effect those impacts, if they occur, would have on our
business, our planned capital and exploration expenditures; future
or estimated mine life, metal price assumptions, ore grades or
sources, gold recovery rates, stripping ratios, throughput, ore
processing; statements regarding anticipated exploration, drilling,
development, construction, permitting and other activities or
achievements of B2Gold; and including, without limitation: B2Gold
generating operating cashflows of approximately $630 million in 2021, including approximately
$500 million in the second half of
2021; remaining well positioned for continued strong operational
and financial performance for 2021; projected gold production, cash
operating costs and AISC on a consolidated and mine by mine basis
in 2021, including production being weighted heavily to the second
half of 2021; total consolidated gold production of between 970,000
and 1,030,000 ounces in 2021 with cash operating costs of between
$500 and $540 per ounce and AISC of between $870 and $910 per
ounce; consolidated gold production of between 920,000 and 970,000
ounces in 2021 with cash operating costs of between $480 and $520 per
ounce and AISC of between $860 and
$900 per ounce the Fekola mill being
expected to run at an annualized throughput rate of 8.0 Mtpa; the
anticipated cost, timing and results for the addition of a solar
plant to the Fekola Mine, including the completion of construction
by the end of the second quarter of 2021, contingent on receiving
replacements for the damaged components; the Cardinal zone bulk
sampling expected to begin in the second quarter of 2021 and being
added to the Fekola environmental and mining permits; the
development of the Wolfshag underground mine at Otjikoto, including
the results of such development and the costs and timing thereof;
stope ore production at the Wolfshag underground mine at Otjikoto
commencing in early 2022; the completion of the updated Kiaka
feasibility study, including the timing and the results thereof;
the Company's position that Menankoto is entitled to a renewal of
the Menankoto Permit under applicable law and its intention to
pursue all available legal remedies to resolve the issue; the
results of the feasibility work completed to date on the Gramalote
Project, including the economic analysis, and the Company's belief
regarding the potential for a more robust project and further
optimization; the delivery of a final feasibility study for the
Gramalote Project in the first quarter of 2022, and the results
thereof; the potential payment of future dividends, including the
timing and amount of any such dividends, and the expectation that
quarterly dividends will be maintained at the same level; the
availability of the RCF for future drawdowns; and B2Gold's
attributable share at El Limon and La Libertad. All statements in
this news release that address events or developments that we
expect to occur in the future are forward-looking statements.
Forward-looking statements are statements that are not historical
facts and are generally, although not always, identified by words
such as "expect", "plan", "anticipate", "project", "target",
"potential", "schedule", "forecast", "budget", "estimate", "intend"
or "believe" and similar expressions or their negative
connotations, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. All such forward-looking
statements are based on the opinions and estimates of management as
of the date such statements are made.
Forward-looking statements necessarily involve assumptions,
risks and uncertainties, certain of which are beyond B2Gold's
control, including risks associated with or related to: the
duration and extent of the COVID-19 pandemic, the effectiveness of
preventative measures and contingency plans put in place by the
Company to respond to the COVID-19 pandemic, including, but not
limited to, social distancing, a non-essential travel ban, business
continuity plans, and efforts to mitigate supply chain disruptions;
escalation of travel restrictions on people or products and
reductions in the ability of the Company to transport and refine
doré; the volatility of metal prices and B2Gold's common shares;
changes in tax laws; the dangers inherent in exploration,
development and mining activities; the uncertainty of reserve and
resource estimates; not achieving production, cost or other
estimates; actual production, development plans and costs differing
materially from the estimates in B2Gold's feasibility and other
studies; the ability to obtain and maintain any necessary permits,
consents or authorizations required for mining activities;
environmental regulations or hazards and compliance with complex
regulations associated with mining activities; climate change and
climate change regulations; the ability to replace mineral reserves
and identify acquisition opportunities; the unknown liabilities of
companies acquired by B2Gold; the ability to successfully integrate
new acquisitions; fluctuations in exchange rates; the availability
of financing; financing and debt activities, including potential
restrictions imposed on B2Gold's operations as a result thereof and
the ability to generate sufficient cash flows; operations in
foreign and developing countries and the compliance with foreign
laws, including those associated with operations in Mali, Namibia, the
Philippines, Colombia and
Burkina Faso and including risks
related to changes in foreign laws and changing policies related to
mining and local ownership requirements or resource nationalization
generally, including in response to the COVID-19 outbreak; remote
operations and the availability of adequate infrastructure;
fluctuations in price and availability of energy and other inputs
necessary for mining operations; shortages or cost increases in
necessary equipment, supplies and labour; regulatory, political and
country risks, including local instability or acts of terrorism and
the effects thereof; the reliance upon contractors, third parties
and joint venture partners; the lack of sole decision-making
authority related to Filminera Resources Corporation, which owns
the Masbate Project; challenges to title or surface rights; the
dependence on key personnel and the ability to attract and retain
skilled personnel; the risk of an uninsurable or uninsured loss;
adverse climate and weather conditions; litigation risk;
competition with other mining companies; community support for
B2Gold's operations, including risks related to strikes and the
halting of such operations from time to time; conflicts with small
scale miners; failures of information systems or information
security threats; the ability to maintain adequate internal
controls over financial reporting as required by law, including
Section 404 of the Sarbanes-Oxley Act; compliance with
anti-corruption laws, and sanctions or other similar measures;
social media and B2Gold's reputation; risks affecting Calibre
having an impact on the value of the Company's investment in
Calibre, and potential dilution of our equity interest in Calibre;
as well as other factors identified and as described in more detail
under the heading "Risk Factors" in B2Gold's most recent Annual
Information Form, B2Gold's current Form 40-F Annual Report and
B2Gold's other filings with Canadian securities regulators and the
U.S. Securities and Exchange Commission (the "SEC"), which may be
viewed at www.sedar.com and www.sec.gov, respectively (the
"Websites"). The list is not exhaustive of the factors that may
affect B2Gold's forward-looking statements
B2Gold's forward-looking statements are based on the
applicable assumptions and factors management considers reasonable
as of the date hereof, based on the information available to
management at such time. These assumptions and factors include, but
are not limited to, assumptions and factors related to B2Gold's
ability to carry on current and future operations, including: the
duration and effects of COVID-19 on our operations and workforce;
development and exploration activities; the timing, extent,
duration and economic viability of such operations, including any
mineral resources or reserves identified thereby; the accuracy and
reliability of estimates, projections, forecasts, studies and
assessments; B2Gold's ability to meet or achieve estimates,
projections and forecasts; the availability and cost of inputs; the
price and market for outputs, including gold; foreign exchange
rates; taxation levels; the timely receipt of necessary approvals
or permits; the ability to meet current and future obligations; the
ability to obtain timely financing on reasonable terms when
required; the current and future social, economic and political
conditions; and other assumptions and factors generally associated
with the mining industry.
B2Gold's forward-looking statements are based on the opinions
and estimates of management and reflect their current expectations
regarding future events and operating performance and speak only as
of the date hereof. B2Gold does not assume any obligation to update
forward-looking statements if circumstances or management's
beliefs, expectations or opinions should change other than as
required by applicable law. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results, performance or achievements could differ materially from
those expressed in, or implied by, these forward-looking
statements. Accordingly, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what benefits or liabilities B2Gold
will derive therefrom. For the reasons set forth above, undue
reliance should not be placed on forward-looking
statements.
Non-IFRS Measures
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including "cash operating costs" and "all-in sustaining costs" (or
"AISC"). Non-IFRS measures do not have any standardized meaning
prescribed under IFRS, and therefore they may not be comparable to
similar measures employed by other companies. The data presented is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS and should be read in
conjunction with B2Gold's consolidated financial statements.
Readers should refer to B2Gold's Management Discussion and
Analysis, available on the Websites, under the heading "Non-IFRS
Measures" for a more detailed discussion of how B2Gold calculates
certain of such measures and a reconciliation of certain measures
to IFRS terms.
Cautionary Statement Regarding Mineral Reserve and
Resource Estimates
The disclosure in this news release was prepared in
accordance with Canadian National Instrument 43-101, which differs
significantly from the requirements of the United States Securities
and Exchange Commission ("SEC"), and resource and reserve
information contained or referenced in this news release may not be
comparable to similar information disclosed by public companies
subject to the technical disclosure requirements of the SEC.
Historical results or feasibility models presented herein are not
guarantees or expectations of future performance.
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH
31
(Expressed in thousands of United
States dollars, except per share amounts)
(Unaudited)
|
2021
|
|
2020
|
Gold
revenue
|
$
|
362,302
|
|
$
|
380,298
|
|
|
|
Cost of
sales
|
|
|
Production costs
|
(111,632)
|
|
(91,556)
|
Depreciation and depletion
|
(66,727)
|
|
(70,612)
|
Royalties and production taxes
|
(26,526)
|
|
(25,731)
|
Total cost of
sales
|
(204,885)
|
|
(187,899)
|
|
|
|
Gross
profit
|
157,417
|
|
192,399
|
|
|
|
General and
administrative
|
(10,098)
|
|
(10,188)
|
Share-based
payments
|
(1,166)
|
|
(3,647)
|
Community
relations
|
(581)
|
|
(3,734)
|
Foreign exchange
gains (losses)
|
3,494
|
|
(1,232)
|
Share of net income
of associate
|
5,066
|
|
6,400
|
Other
|
(3,956)
|
|
(573)
|
Operating
income
|
150,176
|
|
179,425
|
|
|
|
Interest and
financing expense
|
(2,896)
|
|
(4,517)
|
Gains (losses) on
derivative instruments
|
8,049
|
|
(14,842)
|
Other
|
(338)
|
|
(179)
|
Income from
operations before taxes
|
154,991
|
|
159,887
|
|
|
|
Current income tax,
withholding and other taxes
|
(41,126)
|
|
(63,470)
|
Deferred income tax
expense
|
(15,033)
|
|
(13,409)
|
Net income for the
period
|
$
|
98,832
|
|
$
|
83,008
|
|
|
|
Attributable
to:
|
|
|
Shareholders of the Company
|
$
|
91,555
|
|
$
|
72,287
|
Non-controlling interests
|
7,277
|
|
10,721
|
Net income for the
period
|
$
|
98,832
|
|
$
|
83,008
|
|
|
|
Earnings per
share
(attributable to
shareholders of the Company)
|
|
|
Basic
|
$
|
0.09
|
|
$
|
0.07
|
Diluted
|
$
|
0.09
|
|
$
|
0.07
|
|
|
|
Weighted average
number of common shares outstanding
(in
thousands)
|
|
|
Basic
|
1,051,544
|
|
1,035,032
|
Diluted
|
1,062,006
|
|
1,047,943
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH
31
(Expressed in thousands of United States dollars)
(Unaudited)
|
2021
|
|
2020
|
Operating
activities
|
|
|
Net income for the
period
|
$
|
98,832
|
|
$
|
83,008
|
Mine restoration
provisions settled
|
—
|
|
(189)
|
Non-cash charges,
net
|
75,199
|
|
104,529
|
Changes in non-cash
working capital
|
(24,866)
|
|
31,743
|
Changes in long-term
value added tax receivables
|
(3,311)
|
|
(2,878)
|
Cash provided by
operating activities
|
145,854
|
|
216,213
|
|
|
|
Financing
activities
|
|
|
Repayment of revolving
credit facility
|
—
|
|
(25,000)
|
Repayment of equipment
loan facilities
|
(7,227)
|
|
(10,796)
|
Interest and commitment
fees paid
|
(911)
|
|
(3,776)
|
Cash proceeds from
stock option exercises
|
752
|
|
16,344
|
Dividends
paid
|
(42,072)
|
|
(10,368)
|
Principal payments on
lease arrangements
|
(735)
|
|
(829)
|
Distributions to
non-controlling interest
|
(2,000)
|
|
—
|
Restricted cash
movement
|
111
|
|
2,104
|
Cash used by
financing activities
|
(52,082)
|
|
(32,321)
|
|
|
|
Investing
activities
|
|
|
Expenditures on mining
interests:
|
|
|
Fekola Mine
|
(17,396)
|
|
(74,133)
|
Masbate
Mine
|
(6,564)
|
|
(4,761)
|
Otjikoto
Mine
|
(18,875)
|
|
(11,732)
|
Gramalote
Project
|
(3,467)
|
|
(12,678)
|
Other exploration and
development
|
(10,171)
|
|
(9,364)
|
Funding of reclamation
accounts
|
(1,321)
|
|
—
|
Other
|
(1,533)
|
|
(17)
|
Cash used by
investing activities
|
(59,327)
|
|
(112,685)
|
|
|
|
Increase in cash
and cash equivalents
|
34,445
|
|
71,207
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(1,562)
|
|
(3,864)
|
Cash and cash
equivalents, beginning of period
|
479,685
|
|
140,596
|
Cash and cash
equivalents, end of period
|
$
|
512,568
|
|
$
|
207,939
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United
States dollars)
(Unaudited)
|
As at March
31,
2021
|
As at December
31,
2020
|
Assets
|
|
|
Current
|
|
|
Cash and cash
equivalents
|
$
|
512,568
|
|
$
|
479,685
|
Accounts receivable,
prepaids and other
|
30,128
|
|
21,306
|
Value-added and other
tax receivables
|
27,730
|
|
11,797
|
Inventories
|
255,462
|
|
238,055
|
Assets classified as
held for sale
|
16,749
|
|
11,855
|
|
842,637
|
|
762,698
|
|
|
|
Value-added tax
receivables
|
38,854
|
|
35,383
|
Mining
interests
|
|
|
Owned by subsidiaries
and joint operations
|
2,351,601
|
|
2,387,020
|
Investments in
associates
|
81,301
|
|
76,235
|
Other
assets
|
77,078
|
|
76,496
|
Deferred income
taxes
|
9,783
|
|
24,547
|
|
$
|
3,401,254
|
|
$
|
3,362,379
|
Liabilities
|
|
|
Current
|
|
|
Accounts payable and
accrued liabilities
|
$
|
83,475
|
|
$
|
89,062
|
Current income and
other taxes payable
|
165,791
|
|
154,709
|
Current portion of
long-term debt
|
33,120
|
|
34,111
|
Other current
liabilities
|
7,258
|
|
8,211
|
|
289,644
|
|
286,093
|
|
|
|
Long-term
debt
|
67,025
|
|
75,911
|
Mine restoration
provisions
|
92,062
|
|
104,282
|
Deferred income
taxes
|
221,172
|
|
220,903
|
Employee benefits
obligation
|
7,250
|
|
5,874
|
Other long-term
liabilities
|
7,187
|
|
8,726
|
|
684,340
|
|
701,789
|
Equity
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
|
|
Issued: 1,051,697,473 common shares
(Dec 31, 2020 – 1,051,138,175)
|
2,408,804
|
|
2,407,734
|
Contributed
surplus
|
51,167
|
|
48,472
|
Accumulated other
comprehensive loss
|
(140,593)
|
|
(138,533)
|
Retained
earnings
|
303,352
|
|
254,343
|
|
2,622,730
|
|
2,572,016
|
Non-controlling
interests
|
94,184
|
|
88,574
|
|
2,716,914
|
|
2,660,590
|
|
$
|
3,401,254
|
|
$
|
3,362,379
|
View original
content:http://www.prnewswire.com/news-releases/b2gold-reports-strong-q1-2021-results-quarterly-total-gold-production-of-220-644-oz-9-above-budget-cash-operating-costs-and-all-in-sustaining-costs-lower-than-budget-301283900.html
SOURCE B2Gold Corp.