VANCOUVER, BC, August 4, 2021 /PRNewswire/ - B2Gold Corp. (TSX:
BTO) (NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the
"Company") is pleased to announce its operational and financial
results for the second quarter and first half of 2021. The Company
previously released its gold production and gold revenue results
for the second quarter and first half of 2021. All dollar figures
are in United States dollars
unless otherwise indicated.
2021 Second Quarter Highlights
- Total gold production of 211,612 ounces (including 14,232
ounces of attributable production from Calibre Mining Corp.
("Calibre"), well above budget by 5% (10,269 ounces), and
consolidated gold production of 197,380 ounces from the Company's
three operating mines, well above budget by 5% (9,787 ounces)
- Consolidated gold revenue of $363
million on sales of 200,071 ounces at an average price of
$1,814 per ounce
- Fekola's mill throughput `was a quarterly record of 2.29
million tonnes, 16% above budget and 47% higher than the second
quarter of 2020, following the successful completion of the Fekola
mill expansion in September 2020
- Total cash operating costs (see "Non-IFRS Measures")
(including estimated attributable results for Calibre) of
$664 per ounce produced and
consolidated cash operating costs from the Company's three
operating mines of $649 per ounce
produced, both approximately in-line with budget
- Total all-in sustaining costs ("AISC") (see "Non-IFRS
Measures") (including estimated attributable results for
Calibre) of $1,016 per ounce sold and
consolidated AISC from the Company's three operating mines of
$1,011 per ounce sold, both below
budget by 3%
- Net income attributable to the shareholders of the Company of
$68 million ($0.07 per share); adjusted net income (see
"Non-IFRS Measures") attributable to the shareholders of the
Company of $52 million ($0.05 per share)
- B2Gold maintains a strong financial position and liquidity with
cash and cash equivalents of $382
million as at June 30, 2021,
and its $600 million Revolving Credit
Facility remains fully undrawn and available
2021 First Half Highlights
- Total gold production of 432,256 ounces (including 29,233
ounces of attributable production from Calibre), well above budget
by 7% (28,811 ounces), and consolidated gold production of 403,023
ounces from the Company's three operating mines, well above budget
by 7% (27,078 ounces)
- Consolidated gold revenue of $725
million on sales of 402,401 ounces at an average price of
$1,802 per ounce
- Total cash operating costs (including estimated attributable
results for Calibre) of $636 per
ounce produced and consolidated cash operating costs from the
Company's three operating mines of $615 per ounce produced, both below budget by
4%
- Total AISC (including estimated attributable results for
Calibre) of $974 per ounce sold,
below budget by 8%, and consolidated AISC from the Company's three
operating mines of $965 per ounce
sold, below budget by 9%
- Net income attributable to the shareholders of the Company of
$160 million ($0.15 per share); adjusted net income
attributable to the shareholders of the Company of $149 million ($0.14
per share)
- Construction of the Fekola solar plant now complete and 100%
online; Fekola's solar production to date indicates that the plant
will exceed initial power production estimates
- Selected as the recipient of five mining industry awards in
the Philippines and Mali
- For full-year 2021, B2Gold remains well positioned for
continued strong operational and financial performance and is on
track to meet or exceed the upper end of its total gold production
forecast of between 970,000 - 1,030,000 ounces (including 50,000 –
60,000 attributable ounces projected from Calibre) with forecast
total cash operating costs of between $500 - $540 per
ounce and total 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
(approximately $500 million of
cashflows from operating activities are expected to be generated in
the second half of 2021)
Second Quarter and First Half of 2021 Operational Results
Total gold production in the second quarter of 2021 was 211,612
ounces (including 14,232 ounces of attributable production from
Calibre), well above budget by 5% (10,269 ounces), and consolidated
gold production of 197,380 ounces from the Company's three
operating mines, well above budget by 5% (9,787 ounces).
The Fekola Mine in Mali
continued its strong operational performance through the second
quarter of 2021, producing 113,611 ounces of gold, 3% (3,611
ounces) above budget, as the Fekola processing facilities continued
to outperform following the successful completion of the Fekola
mill expansion in September 2020. In
the second quarter of 2021, Fekola's mill throughput was a
quarterly record of 2.29 million tonnes, 16% above budget and 47%
higher than the second quarter of 2020. The Masbate Mine in
the Philippines also continued its
strong operational performance with second quarter of 2021 gold
production of 56,878 ounces, well above budget by 8% (4,390
ounces), as processed grade (8% above budget) and recoveries (10%
above budget) both exceeded budget which more than offset lower
than budgeted throughput (8% below budget). The Otjikoto Mine in
Namibia performed well during the
second quarter of 2021, producing 26,891 ounces of gold, well above
budget by 7% (1,786 ounces), mainly due to higher than budgeted
processed grade (5% above budget) as the grade of ore sourced from
the medium grade stockpile was slightly higher than anticipated
during the second quarter. As expected, compared to the second
quarter of 2020, total gold production was lower by 12% (29,981
ounces) due to planned significant waste stripping campaigns at
both the Fekola and Otjikoto mines, which were largely completed in
the first half of 2021 (for Phase 5 and Phase 6 of the Fekola Pit,
and Phase 3 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 second quarter of 2021, total cash operating costs
(including estimated attributable results for Calibre) were
$664 per ounce produced ($675 per ounce sold) and consolidated cash
operating costs from the Company's three operating mines were
$649 per ounce produced ($661 per ounce sold). Consolidated cash operating
costs were approximately in-line with budget in the second quarter
of 2021, as above budgeted gold production largely offset higher
than budgeted realized fuel prices and processing costs. As
expected, consolidated cash operating costs were higher in the
second quarter of 2021 compared to $385 per ounce produced ($377 per ounce sold) in the second quarter of
2020, mainly due to the planned lower gold production and higher
period stripping activities (described above). Total AISC
(including estimated attributable results for Calibre) for the
second quarter of 2021 were $1,016
per ounce sold (Q2 2020 - $712 per
ounce sold) and consolidated AISC from the Company's three
operating mines were $1,011 per ounce
sold (Q2 2020 - $714 per ounce sold).
Consolidated AISC were $32 per ounce
sold (3%) below budget in the second quarter of 2021, reflecting
higher than budgeted gold ounces sold, higher than budgeted gains
on settled fuel derivatives and lower than budgeted sustaining
capital expenditures partially offset by higher than budgeted
royalties resulting from a higher average gold price realized than
budgeted. The lower sustaining capital expenditures were mainly a
result of timing of expenditures and are expected to be incurred
later in 2021.
For the first half of 2021, total gold production was 432,256
ounces (including 29,233 ounces of attributable production from
Calibre), well above budget by 7% (28,811 ounces), and 15% (74,199
ounces) lower than the first half of 2020 (for the same reasons
outlined above). Consolidated gold production from the Company's
three operating mines was 403,023 ounces in the first half of
2021.
For the first half of 2021, total cash operating costs
(including estimated attributable results for Calibre) were
$636 per ounce produced ($628 per ounce sold) (first half of 2020 -
$390 per ounce produced and
$394 per ounce sold) and consolidated
cash operating costs from the Company's three operating mines were
$615 per ounce produced ($606 per ounce sold) (first half of 2020 -
$376 per ounce produced and
$380 per ounce sold). Consolidated
cash operating costs were $25 per
ounce produced (4%) below budget in the first half of 2021, mainly
attributable to higher than budgeted gold production. Total AISC
(including estimated attributable results for Calibre) for the
first half of 2021 were $974 per
ounce sold (first half of 2020 - $717
per ounce sold) and consolidated AISC from the Company's three
operating mines were $965 per ounce
sold (first half of 2020 - $705 per
ounce sold). Consolidated AISC were $95 per ounce sold (9%) below budget in the first
half of 2021, reflecting higher than budgeted gold ounces sold,
higher than budgeted gains on settled fuel derivatives and lower
than budgeted sustaining capital expenditures partially offset by
higher than budgeted royalties resulting from a higher average gold
price realized than budgeted. The lower sustaining capital
expenditures were mainly a result of timing of expenditures and are
expected to be incurred later in 2021.
For full-year 2021, the Company remains on track to meet or
exceed the upper end of its total gold production forecast range of
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 currently include the potential upside to
increase Fekola's gold production in 2021 from the nearby Cardinal
inferred resource area, where production is now expected to
commence in the third quarter of 2021 and the higher than budgeted
processing capacity realized to date at the expanded Fekola
mill.
For full-year 2021, as budgeted, 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 the
planned higher waste stripping campaigns at both the Fekola and
Otjikoto mines which were largely completed in the first half of
2021. For the second half of 2021, consolidated gold production is
expected to significantly increase over the first half of 2021 to
between 555,000 – 585,000 ounces 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 significantly improve to between $380 - $420 per
ounce and consolidated AISC to between $745 - $785 per
ounce during the second half of 2021.
Second Quarter and First Half of 2021 Financial
Results
For the second quarter of 2021, consolidated gold revenue was
$363 million on sales of 200,071
ounces at an average price of $1,814
per ounce, compared to $442 million
on sales of 257,100 ounces at an average price of $1,719 per ounce in the second quarter of 2020.
The decrease in gold revenue of 18% ($79
million) was 22% attributable to the decrease in gold ounces
sold (mainly due to the lower gold production and timing of gold
shipments), partially offset by a 4% impact from the increase in
the average realized gold price.
As expected, cash flow used by operating activities was
$8 million in the second quarter of
2021 compared to cash flow generated of $238
million in the second quarter of 2020. The decrease was
in-line with budget and was mainly due to lower revenues of
$80 million, higher production costs
of $35 million and higher working
capital outflows in the second quarter of 2021 for value-added and
other tax receivables and current income and other taxes payables.
Current income tax payments in the second quarter of 2021 included
approximately $140 million related to
2020 outstanding tax liability obligations (comprised mainly of
Fekola outstanding 2020 tax liabilities of $75 million and Fekola 2020 priority dividend
obligations of $46 million). Based on
current assumptions, including a gold price of $1,800 per ounce for 2021, the Company is
forecasting to make total cash income tax payments in 2021 of
approximately $380 million (including
the $140 million related to 2020
outstanding tax liability obligations discussed above).
Net income for the second quarter of 2021 was $74 million compared to $138 million for the second quarter of 2020. Net
income attributable to the shareholders of the Company was
$68 million ($0.07 per share) compared to $124 million ($0.12
per share) for the second quarter of 2020. Adjusted net income
attributable to the shareholders of the Company (see "Non-IFRS
Measures") was $52 million
($0.05 per share) compared to
adjusted net income of $112 million
($0.11 per share) for the second
quarter of 2020.
For the first half of 2021, consolidated gold revenue was
$725 million on sales of 402,401
ounces at an average price of $1,802
per ounce compared to $822 million on
sales of 496,600 ounces at an average price of $1,656 per ounce in the first half of 2020. The
decrease in gold revenue of 12% ($97
million) was 19% attributable to the decrease in gold ounces
sold (mainly due to the lower gold production and timing of gold
shipments), partially offset by a 7% impact from the increase in
the average realized gold price.
Cash flow provided by operating activities was $138 million in the first half of 2021 compared
to $454 million in the first half of
2020. The decrease was mainly due to lower revenues of $97 million, higher production costs of
$55 million and higher working
capital outflows in the first half of 2021 for value-added and
other tax receivables and current income and other taxes payables
(including current income tax payments in the first half of 2021 of
approximately $140 million relating
to 2020 outstanding tax liability obligations).
For the first half of 2021, net income was $173 million compared to $221 million for the first half of 2020. Net
income attributable to the shareholders of the Company was
$160 million ($0.15 per share) compared to $197 million ($0.19
per share) for the first half of 2020. Adjusted net income
attributable to the shareholders of the Company was $149 million ($0.14
per share) compared to adjusted net income of $207 million ($0.20
per share) for the first half of 2020.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and
liquidity. At June 30, 2021, the
Company had cash and cash equivalents of $382 million (December 31,
2020 - $480 million) and
working capital of $558 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 $500 million of this
total is expected to be generated in the second half of 2021, when
the Company starts mining from the higher-grade areas of the Fekola
Pit and mining at Otjikoto reaches the higher-grade zone at the
base of the Wolfshag Pit.
Operations
Mine-by-mine gold production in the second quarter and first
half of 2021 (including the Company's estimated 33% share of
Calibre's production) was as follows:
Mine
|
Q2
2021 Gold
Production
(ounces)
|
First-Half 2021 Gold
Production
(ounces)
|
First-Half
2021 Guidance Gold
Production
(ounces)
|
Second-Half
2021 Guidance Gold
Production (ounces)
|
Full-year
2021 Guidance Gold
Production (ounces)
|
Fekola
|
113,611
|
238,699
|
220,000 -
230,000
|
310,000 -
330,000
|
530,000 -
560,000
|
Masbate
|
56,878
|
114,391
|
100,000 -
105,000
|
100,000 -
105,000
|
200,000 -
210,000
|
Otjikoto
|
26,891
|
49,933
|
45,000 -
50,000
|
145,000 -
150,000
|
190,000 -
200,000
|
B2Gold
Consolidated (1)
|
197,380
|
403,023
|
365,000 -
385,000
|
555,000 -
585,000
|
920,000 -
970,000
|
|
|
|
|
|
|
Equity
interest
in Calibre (2)
|
14,232
|
29,233
|
25,000 -
30,000
|
25,000 -
30,000
|
50,000 -
60,000
|
|
|
|
|
|
|
Total
|
211,612
|
432,256
|
390,000 -
415,000
|
580,000 -
615,000
|
970,000 -
1,030,000
|
|
|
(1)
|
"B2Gold
Consolidated" - gold production is presented on a 100% basis, as
B2Gold fully consolidates the results of its Fekola, Masbate and
Otjikoto mines in its consolidated financial statements (even
though it does not own 100% of these
operations).
|
(2)
|
"Equity interest
in Calibre" - represents the Company's approximate 33% indirect
share of the operations of Calibre's El Limon and La Libertad
mines. B2Gold applies the equity method of accounting for its 33%
ownership interest in Calibre.
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold produced basis) in the second quarter and first half of 2021
were as follows (presented on a 100% basis):
Mine
|
Q2
2021 Cash
Operating
Costs ($ per ounce
produced)
|
First-Half 2021 Cash
Operating
Costs ($ per ounce
produced)
|
First-Half
2021 Guidance Cash
Operating
Costs ($ per ounce
produced)
|
Second-Half
2021 Guidance Cash
Operating
Costs ($ per ounce
produced)
|
Full-year
2021 Guidance Cash
Operating
Costs ($ per ounce
produced)
|
Fekola
|
$617
|
$557
|
$530 - $570
|
$315 - $355
|
$405 - $445
|
Masbate
|
$616
|
$612
|
$670 - $710
|
$630 - $670
|
$650 - $690
|
Otjikoto
|
$854
|
$893
|
$940 - $980
|
$330 - $370
|
$480 - $520
|
B2Gold
Consolidated
|
$649
|
$615
|
$620 -
$660
|
$380 -
$420
|
$480 -
$520
|
|
|
|
|
|
|
Equity
interest
in Calibre (1)
|
$864
|
$929
|
$920 -
$1,020
|
$920 -
$1,020
|
$920 -
$1,020
|
|
|
|
|
|
|
Total
|
$664
|
$636
|
$640 -
$680
|
$400 -
$440
|
$500 -
$540
|
|
|
(1)
|
Calibre's 2021
forecast cash operating costs are assumed to be consistent
throughout the second half of 2021.
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold sold basis) in the second quarter and first half of 2021 were
as follows (presented on a 100% basis):
Mine
|
Q2
2021 Cash
Operating
Costs ($ per ounce
sold)
|
First-Half 2021 Cash
Operating
Costs ($ per ounce
sold)
|
First-Half
2021 Guidance Cash
Operating
Costs ($ per ounce
sold)
|
Second-Half
2021 Guidance Cash
Operating
Costs ($ per ounce
sold)
|
Full-year
2021 Guidance Cash
Operating
Costs ($ per ounce
sold)
|
Fekola
|
$606
|
$541
|
$530 - $570
|
$315 - $355
|
$405 - $445
|
Masbate
|
$673
|
$627
|
$670 - $710
|
$630 - $670
|
$650 - $690
|
Otjikoto
|
$885
|
$853
|
$940 - $980
|
$330 - $370
|
$480 - $520
|
B2Gold
Consolidated
|
$661
|
$606
|
$620 -
$660
|
$380 -
$420
|
$480 -
$520
|
|
|
|
|
|
|
Equity
interest
in Calibre (1)
|
$861
|
$923
|
$920 -
$1,020
|
$920 -
$1,020
|
$920 -
$1,020
|
|
|
|
|
|
|
Total
|
$675
|
$628
|
$640 -
$680
|
$400 -
$440
|
$500 -
$540
|
|
|
(1)
|
Calibre's 2021
forecast cash operating costs are assumed to be consistent
throughout the second half of 2021.
|
Mine-by-mine AISC (on a per ounce of gold sold basis) in the
second quarter and first half of 2021 were as follows (presented on
a 100% basis):
Mine
|
Q2
2021 AISC ($ per ounce
sold)
|
First-Half 2021 AISC ($ per ounce
sold)
|
First-Half
2021 Guidance AISC ($ per ounce
sold)
|
Second-Half
2021 Guidance AISC ($ per ounce
sold)
|
Full-year
2021 Guidance AISC ($ per ounce
sold)
|
Fekola
|
$854
|
$811
|
$850 - $890
|
$670 - $710
|
$745 - $785
|
Masbate
|
$899
|
$860
|
$980 -
$1,020
|
$940 - $980
|
$955 - $995
|
Otjikoto
|
$1,613
|
$1,542
|
$1,600 -
$1,640
|
$580 - $620
|
$830 - $870
|
B2Gold
Consolidated
|
$1,011
|
$965
|
$1,040 -
$1,080
|
$745 -
$785
|
$860 -
$900
|
|
|
|
|
|
|
Equity
interest
in Calibre (1)
|
$1,082
|
$1,090
|
$1,040 -
$1,140
|
$1,040 -
$1,140
|
$1,040 -
$1,140
|
|
|
|
|
|
|
Total
|
$1,016
|
$974
|
$1,040 -
$1,080
|
$760 -
$800
|
$870 -
$910
|
|
|
(1)
|
Calibre's 2021
forecast AISC are assumed to be consistent throughout the second
half of 2021.
|
Fekola Gold Mine - Mali
The Fekola Mine in Mali
continued its strong operational performance through the second
quarter of 2021, producing 113,611 ounces of gold, 3% (3,611
ounces) above budget, as the Fekola processing facilities continued
to outperform following the successful completion of the Fekola
mill expansion in September 2020. In
the second quarter of 2021, Fekola's mill throughput was a
quarterly record of 2.29 million tonnes, 16% above budget and 47%
higher than the second quarter of 2020. The higher than budgeted
mill throughput was due to favourable ore fragmentation and
hardness, as well as optimization of the grinding circuit,
partially offset by mill feed grade which was 10% below budget in
the second quarter of 2021, as Fekola's low-grade stockpiles were
used to provide additional unbudgeted mill feed required as a
result of the higher than budgeted processed tonnes. As expected,
compared to the second quarter of 2020, gold production was lower
by 23% (33,813 ounces) as a result of the higher waste stripping
and lower mined ore grades in the second quarter of 2021, as Phases
5 and 6 of the Fekola Pit were developed during the first half of
2021.
For the second quarter of 2021, mill feed grade was 1.65 grams
per tonne ("g/t") compared to budget of 1.84 g/t and 3.11 g/t in
the second quarter of 2020; mill throughput was 2.29 million tonnes
compared to budget of 1.98 million tonnes and 1.56 million tonnes
in the second quarter of 2020; and gold recovery averaged 93.2%
compared to budget of 94.0% and 94.8% in the second quarter of
2020. 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.
The Fekola mill has the potential to sustain an annualized
throughput rate which is higher than the original assumed mill
expansion throughput rate of 7.5 million tonnes per annum ("Mtpa").
Mill processing trials conducted in the fourth quarter of 2020
demonstrated 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 the positive results noted to date
through to the second quarter of 2021, Fekola's annualized
throughput rate is now expected to average 8.3 Mtpa for 2021 and
average approximately 8.5 Mtpa (over the long-term), based on an
ore blend including fresh rock and saprolite. For 2021 budgeting
purposes, the Company assumed a throughput rate of 7.75 Mtpa.
Production planning for the nearby Cardinal inferred 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 at Cardinal
was completed in the second quarter of 2021, and a 10,000-tonne
bulk sample was mined and processed. Results indicate that the
Cardinal material can be processed at Fekola. An Environmental and
Social Impact Assessment has been completed and submitted to the
Malian authorities. The Company is in the process of updating the
Fekola Mine Plan to include production from Cardinal which is
expected to commence in the third quarter of 2021.
For the second quarter of 2021, Fekola's cash operating costs
were $617 per ounce produced
($606 per ounce sold), above budget
by $73 per ounce produced (13%), due
to higher than budgeted processing costs (related to the unbudgeted
mill throughput of low-grade stockpile material) and fuel prices,
and increased operational waste (due to lower than budgeted strip
ratios). In addition, camp and medical costs were also higher than
budget as the Company continues to manage COVID-19 related risks
and maintain safe operations. As expected, Fekola's cash operating
costs were higher in the second quarter of 2021 compared to
$300 per ounce produced ($271 per ounce sold) in the second quarter of
2020, mainly due to the planned lower gold production and higher
period stripping activities (as discussed above). Fekola's AISC for
the second quarter of 2021 were $854
per ounce sold (Q2 2020 - $562 per
ounce sold), in-line with budget, as higher than budgeted realized
gains on fuel derivatives, lower than budgeted sustaining capital
expenditures (mainly due to lower than budgeted pre-stripping
costs) and higher than budgeted gold ounces sold offset higher than
budgeted cash operating costs as discussed above.
For the first half of 2021, the Fekola Mine produced 238,699
ounces of gold, well above budget by 5% (11,699 ounces), and 23%
(72,736 ounces) lower than the first half of 2020 (for the reasons
outlined above).
For the first half of 2021, Fekola's cash operating costs were
$557 per ounce produced ($541 per gold ounce sold), in-line with budget
and higher than $274 per ounce
produced ($278 per ounce sold) in the
first half of 2020 (for the reasons outlined above). Fekola's AISC
for the first half of 2021 were $811
per ounce sold (first half of 2020 - $542 per ounce sold), well below budget by
$61 per ounce sold (7%), as a result
of higher than budgeted gold ounces sold, higher than budgeted
realized gains on fuel derivatives, lower than budgeted sustaining
capital expenditures (mainly due to lower than budgeted
pre-stripping costs and mobile equipment rebuilds) and lower than
budgeted community relations costs, partially offset by higher than
budgeted royalties. The lower than budgeted sustaining capital
expenditures are mainly a result of timing of expenditures and are
expected to be incurred later in 2021.
Capital expenditures in the second quarter of 2021 totaled
$9 million, primarily consisting of
$2 million for the solar plant,
$2 million for pre-stripping,
$1 million for mine infrastructure
and $1 million for the development of
Cardinal. Capital expenditures in the first half of 2021 totaled
$26 million, primarily consisting of
$8 million for the solar plant,
$7 million for pre-stripping,
$4 million for mine infrastructure
and $2 million for the development of
Cardinal.
For full-year 2021, the Fekola Mine remains on track to meet or
exceed the upper end of its forecast production range of 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 inferred resource area
and the higher than budgeted processing capacity experienced to
date at the Fekola mill (as discussed above) have the potential to
increase Fekola's budgeted 2021 and longer-term gold production. No
adjustment to Fekola's 2021 guidance range has currently been made
while the Company continues to evaluate the potential upside impact
of these factors for the balance of 2021.
As a result of the planned higher waste stripping completed and
lower mined ore grades realized in the first half of 2021 (as Phase
5 and 6 of the Fekola Pit were being 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 second half of 2021, Fekola's gold production
is expected to increase significantly to between 310,000 – 330,000
ounces and cash operating costs are expected to significantly
improve to between $315 -
$355 per ounce and AISC to between
$670 - $710 per ounce (based mainly on the weighting of
the planned production and timing of higher waste stripping).
Fekola Solar Plant
Following the temporary suspension of the solar plant
construction activities in April 2020
due to COVID-19 restrictions, and a fire in the solar storage yard
in January 2021, construction of the
Fekola solar plant is now complete. A small crew will remain
on site until mid-August 2021 to
ensure that all final commissioning tasks and warranty issues are
properly executed. With the solar plant now 100% online, it is
expected to reduce Fekola's HFO consumption by over 13 million
litres per year and lower carbon dioxide emissions by an estimated
39,000 tonnes per year. Solar production to date indicates
that the plant will exceed initial power production estimates.
Menankoto Permit and Bantako North Permit
The Company, through its Malian subsidiary Menankoto SARL
("Menankoto"), is currently involved in a dispute with the Malian
Government related to renewal of the Menankoto exploration permit
(the "Menankoto Permit") which forms part of the Anaconda Area and is located 20 km north of
the Fekola Mine licence area. The Company strongly believes that
Menankoto is entitled to a one-year renewal of the Menankoto Permit
under applicable law. After ongoing discussions with the Malian
Government were not ultimately successful in resolving the
situation, on June 24, 2021 the
Company announced that it had formally commenced arbitration
proceedings against the Republic of Mali. The arbitration has been commenced
pursuant to the arbitration clause set out in the Menankoto mining
convention (the "Convention") governed by the 2012 Malian Mining
Code ("2012 Mining Code"), on the basis that the Republic of
Mali breached its obligations
under the Convention and under the 2012 Mining Code. Based on the
terms of the Convention, the arbitration will be conducted by the
International Centre for Settlement of Investment Disputes in
Paris, France. In addition to
pursuing arbitration under the Convention, the Company may pursue,
as required, all other available legal remedies.
Notwithstanding the commencement of arbitration proceedings, the
Company is committed to continuing its ongoing discussions with the
Malian Government to resolve the issue. Since the Company commenced
its investment in Mali, B2Gold has
always enjoyed a positive and mutually beneficial relationship with
the Government of Mali. Most
recently, B2Gold partnered with the Government of Mali to assist the people of Mali facing challenges created by the COVID-
19 pandemic, as well as its impact on the mining sector. B2Gold
continues to explore additional ways in which it might help the
Government and local communities deal with the impact of the
pandemic.
The operations at the Fekola Mine, which is situated on a
separate mining license 20 kilometres from the Menankoto Permit and
projected to produce 530,000 to 560,000 ounces of gold in 2021,
continue normally and have not been impacted by the dispute
relating to the Menankoto Permit. In addition, the Fekola Mine has
not included the Mineral Resources from the Anaconda area (comprised of the Menankoto
Permit and the Bantako North permit) in the current Fekola life of
mine plan. The Bantako North permit area (wholly owned and in good
standing) contains a significant portion of the Mamba deposit
saprolite material and remains open. Preliminary planning by the
Company has demonstrated that a pit situated on the Bantako North
permit area could provide saprolite material for at least 1.5 to 2
years to feed the Fekola mill commencing in 2022 subject to
obtaining all necessary permits and completion of a final mine
plan. This additional feed to the Fekola mill would benefit all
stakeholders, including the State of
Mali, B2Gold's 20% partner at the Fekola Mine.
The Company has conducted extensive exploration on the Menankoto
deposit part of the Anaconda Area
over the past seven years, with a considerable investment to date
of approximately $27 million. The
Company had planned a 2021 exploration budget for the Menankoto
deposit of $8.3 million, out of a
total Mali exploration budget of
$26.4 million. B2Gold is one of the
largest Canadian investors in Mali
and the Fekola Mine is a flagship investment in the country's
mining sector.
Masbate Gold Mine - the
Philippines
The Masbate Mine in the
Philippines also continued its strong operational
performance with second quarter of 2021 gold production of 56,878
ounces, well above budget by 8% (4,390 ounces), as processed grade
(8% above budget) and recoveries (10% above budget) both exceeded
budget which more than offset lower than budgeted throughput (8%
below budget). Continuing the positive trend set in the first
quarter of 2021, Masbate's mill recoveries continued to outperform
the recovery model. To improve Masbate's gold recovery (and
production) forecasts, a series of unbudgeted metallurgical test
campaigns were performed in the second quarter of 2021, temporarily
reducing Masbate's throughput for the quarter. Processed grade was
above budget, as ore mined from both the Main Vein and Montana pits in the second quarter produced
higher tonnage and grade compared to the reserve model. In
addition, the metallurgical test campaigns completed also
contributed to the higher than budgeted processed grade in the
quarter (as one test campaign involved high grade ore from the Main
Vein Pit which was originally budgeted to have been blended through
the course of the full year). Gold production in the second quarter
of 2021 was higher by 17% (8,224 ounces), compared to the second
quarter of 2020, mainly due to higher mined ore grades, as a result
of mining through higher-grade zones of the Main Vein and
Montana pits in the second quarter
of 2021.
For the second quarter of 2021, mill feed grade was 1.17 g/t
compared to budget of 1.08 g/t and 0.94 g/t in the second quarter
of 2020; mill throughput was 1.86 million tonnes compared to budget
of 2.02 million tonnes and 1.99 million tonnes in the second
quarter of 2020; and gold recovery averaged 81.5% compared to
budget of 74.3% and 81.0% in the second quarter of 2020.
For the second quarter of 2021, Masbate's cash operating costs
were $616 per ounce produced
($673 per ounce sold), well below
budget by $83 per ounce produced
(12%), mainly attributable to higher than budgeted gold production,
and comparable with the second quarter of 2020. Masbate's AISC for
the second quarter of 2021 were $899
per ounce sold, well below budget by $89 per ounce sold (9%), reflecting lower than
budgeted cash operating costs, higher than budgeted gold ounces
sold, higher than budgeted realized gains on fuel derivatives and
lower than budgeted sustaining capital expenditures (mainly due to
the timing of pre-stripping and mining-related capital
expenditures). The lower than budgeted sustaining capital
expenditures were mainly a result of timing of expenditures and are
expected to be incurred later in 2021. Compared to the second
quarter of 2020, Masbate's AISC were significantly lower by
$161 per ounce sold (15%), mainly
attributable to higher gold production.
For the first half of 2021, the Masbate Mine produced 114,391
ounces of gold, well above budget by 11% (11,242 ounces), and 22%
(20,865 ounces) higher than the first half of 2020 (mainly due to
higher mined ore grades and higher recoveries as outlined
above).
For the first half of 2021, Masbate's cash operating costs were
$612 per ounce produced ($627 per ounce sold), well below both budget by
$82 per ounce produced (12%) and the
first half of 2020 by $52 per ounce
produced (8%). Masbate's AISC for the first half of 2021 were
$860 per ounce sold, significantly
below both budget by $140 per ounce
sold (14%) and the first half of 2020 by $121 per ounce sold (12%).
Capital expenditures in the second 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. Capital
expenditures in the first half of 2021 totaled $13 million, primarily consisting of $4 million for mobile equipment acquisition costs
and rebuilds, $4 million for tailings
storage facility projects and $2
million for pre-stripping.
For full-year 2021, the Masbate Mine remains on track 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 scheduled to be relatively
consistent throughout each of the remaining quarters of 2021.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia
performed well during the second quarter of 2021, producing 26,891
ounces of gold, well above budget by 7% (1,786 ounces), mainly due
to higher than budgeted processed grade (5% above budget) as the
grade of ore sourced from the medium grade stockpile was slightly
higher than anticipated during the second quarter. As expected,
compared to the second quarter of 2020, gold production was
significantly lower by 38% (16,605 ounces), as processed ore was
primarily 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.
For the second quarter of 2021, mill feed grade was 0.99 g/t
compared to budget of 0.94 g/t and 1.58 g/t in the second quarter
of 2020; mill throughput was 0.86 million tonnes compared to budget
of 0.85 million tonnes and 0.87 million tonnes in the second
quarter of 2020; and gold recovery averaged 97.8% compared to
budget of 97.6% and 98.6% in the second quarter of 2020.
For the second quarter of 2021, Otjikoto's cash operating costs
were $854 per ounce produced
($885 per ounce sold), well below
budget by $81 per ounce produced
(9%), mainly attributable to higher than budgeted gold production
and capitalized pre-stripping costs, offsetting higher than
budgeted realized fuel prices and a stronger than budgeted Namibian
dollar. As expected, Otjikoto's cash operating costs were higher in
the second quarter of 2021 compared to $421 per ounce produced ($418 per ounce sold) in the second quarter of
2020, mainly as a result of the planned lower gold production (as
discussed above). Otjikoto's AISC for the second quarter of
2021were $1,613 per ounce sold (Q2
2020 - $757 per ounce sold), above
budget by $67 per ounce sold (4%),
mainly due to higher than budgeted sustaining capital expenditures
(due to higher than budgeted pre-stripping).
For the first half of 2021, the Otjikoto Mine produced 49,933
ounces of gold, well above budget by 9% (4,137 ounces), and 41%
(35,312 ounces) lower than the first half of 2020 (for the reasons
outlined above).
For the first half of 2021, Otjikoto's cash operating costs were
$893 per ounce produced ($853 per gold ounce sold), well below budget by
$69 per ounce produced (7%) and
higher than the first half of 2020 of $431 per ounce produced ($417 per ounce sold) (for the reasons outlined
above). Otjikoto's AISC for the first half of 2021 were
$1,542 per ounce sold (first half of
2020 - $801 per ounce sold), well
below budget by $82 per ounce sold
(5%), as a result of the lower than budgeted cash operating costs
and higher than budgeted gold ounces sold, partially offset by
higher than budgeted sustaining capital costs (due to higher than
budgeted pre-stripping and equipment rebuilds). The higher than
budgeted pre-stripping costs of $5
million for the first half of 2021 are expected to be a
permanent variance.
Capital expenditures for the second quarter of 2021 totaled
$21 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, $5 million for Wolfshag
underground development and $1
million for the national power grid connection line. Capital
expenditures for the first half of 2021 totaled $40 million, primarily consisting of $23 million for pre-stripping in the Otjikoto
Phase 3 and Wolfshag Phase 3 pits, $5
million for mobile equipment rebuilds and replacements,
$10 million for Wolfshag underground
development and $2 million for the
national power grid connection line.
Development of the Wolfshag underground mine continues to
progress on schedule. Development of the primary underground ramp
commenced and continued through the first half of 2021 following
the completion of the development of the portal in the fourth
quarter of 2020, with stope ore production 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 remains on track 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 gold production is expected to
increase significantly in the second half of 2021 to between
145,000 – 150,000 ounces. Based mainly on the weighting of the
planned production and timing of higher waste stripping, Otjikoto's
cash operating costs are expected to significantly improve to
between $330 - $370 per ounce and AISC to between $580 - $620 per
ounce during the second half of 2021.
On average, 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 a review of Gramalote's feasibility study work to
date, B2Gold believes that there is strong potential to improve the
economics of the project (economic highlights were previously
released on May 4, 2021 based on the
feasibility study work to date), which could be developed by
revisiting the original Gramalote Project design parameters
included in the existing mining permit (as applied in the Gramalote
Preliminary Economic Assessment in January
2020 and historical AngloGold studies) and further
optimizing project design. Review of the updated Gramalote Ridge
Mineral Resource also shows that further value can be created
through additional drilling of the Inferred portions of the Mineral
Resource area, both within and adjacent to the designed pit, with
at least 25,000 metres of drilling planned and progressing in 2021
and a mineral resource update expected in early 2022. In addition,
drilling is being carried out in the Trinidad deposit and drilling is planned in
the Monjas West zone later in 2021.
The Gramalote Project team is advancing work on different
project optimization opportunities to potentially reduce capital
and operating costs, as well as improve operability and
sustainability of the Project. Those activities include road
optimization and layout, pit design and phasing, blast design
optimization, river deviation changes, improved infrastructure
layout, and further optimization of plant design. As noted,
optimization efforts also 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.
As the evaluation of the different optimization opportunities
advances, B2Gold is reviewing what changes in the design could
require minor and major permit amendments of the approved
Environmental and Social Impact Assessment (ESIA). The supporting
environmental and social studies continue to move forward as
planned. B2Gold expects that any minor or major permit amendments
required could potentially impact the development timeline and
delivery of the final feasibility study for the Gramalote Project
which is now expected in the second quarter of 2022. Completion of
the feasibility study has been pushed out from the first quarter to
the second quarter of 2022 as a result of an increase in planned
drilling and the impact of ongoing COVID-19 restrictions. B2Gold
and AngloGold recently agreed to a revised 2021 feasibility study
budget (subject to final Joint Venture committee approval) of
$69 million and are reviewing an
additional budget of $17 million for
the first quarter of 2022 to complete the final feasibility study
and updated Mineral Resource estimate. The revised 2021 budget
represents an increase of $17 million
(Company's share $8.5 million) over
the initial announced 2021 Gramalote Project budget of $52 million. 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 (decision
date expected mid-2022), 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.
The Gramalote Project continues advancing the resettlement
programs, the coexistence and formalization programs for artisanal
miners, the removal of miners to outside of the industrial area,
continues to work with government and local communities on social
programs, advances the purchase of key properties required for
project development and is closing a development agreement with a
power company to commence studies to bring power to the Gramalote
mill site. The Gramalote Project continues to benefit from strong
federal and local government support as well as continuing support
from local communities.
Kiaka Development Project - Burkina
Faso
The Company continues to review optimization opportunities for
the Kiaka Project in Burkina Faso.
Several areas which have the potential to reduce capital costs are
being evaluated, including a simplified recovery process,
alternative methods of tailing disposal, mine fleet alternatives,
reduction in project infrastructure and the use of more local
contractors. The Company anticipates that this work will be
completed by the end of the third quarter of 2021. The Company
remains committed to finding the best means of maximizing the value
of the Kiaka Project for its shareholders. The 2021 budget for the
Kiaka Project is $5.4 million.
Summary and Outlook
The Company is pleased with its second quarter and first half of
2021 production results. Based on a strong first half of 2021 and
above budget gold production, the Company remains on track to meet
or exceed the upper end of its total gold production forecast range
for 2021 of between 970,000 and 1,030,000 ounces (including 50,000
and 60,000 attributable ounces projected from Calibre) with total
consolidated cash operating costs of between $500 and $540 per
ounce and total consolidated all-in sustaining costs of between
$870 and $910 per ounce.
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 also continues to advance its pipeline of
development projects. Work continues on the Gramalote Project and
based on a review of the feasibility study work to date, B2Gold
believes that there is strong potential for a more robust project
and has recently agreed a revised 2021 budget (subject to final
Joint Venture committee approval) with its 50% joint venture
partner, AngloGold, to advance the scope of planned feasibility
study work. This includes revisiting the original Gramalote 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 and further drilling of
the Monjas West and Trinidad
zones. Completion of the Gramalote feasibility study has been
pushed out from the first quarter to the second quarter of 2022 as
a result of an increase in planned drilling and the impact of
ongoing COVID-19 restrictions. The Company continues to look at
optimization opportunities for the Kiaka Project in Burkina Faso. The Company now expects that
this work will be completed by the end of the third quarter of
2021. The Company remains committed to finding the best means of
maximizing the value of the Kiaka Project for its shareholders.
Following a very successful year for exploration in 2020, B2Gold
is conducting an aggressive exploration campaign in 2021 with a
budget of approximately $66 million
(excluding the Gramalote Project). Exploration is focused
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 several new
regions.
Notwithstanding the commencement of arbitration proceedings in
Mali with respect to the renewal
of the Menankoto Exploration Permit, the Company is committed to
continuing its ongoing discussions with the Malian Government to
resolve the issue. Since the Company commenced its investment in
Mali, B2Gold has always enjoyed a
positive and mutually beneficial relationship with the Government
of Mali. Most recently, B2Gold
partnered with the Government of Mali to assist the people of Mali facing challenges created by the COVID-19
pandemic, as well as its impact on the mining sector. B2Gold
continues to explore additional ways in which it might help the
Government and local communities to deal with the impact of the
pandemic. We believe that continued exploration success in
Mali has the potential to deliver
significant production upside in both the near term and over the
longer term.
The operations at the Fekola Mine, which is situated on a
separate mining license 20 kilometres from the Menankoto Permit and
projected to produce 530,000 to 560,000 ounces of gold in 2021,
continue normally and have not been impacted by the dispute
relating to the Menankoto Permit. In addition, the Fekola Mine has
not included the Mineral Resources from the Anaconda area (comprised of the Menankoto
Permit and the Bantako North permit) in the current Fekola life of
mine plan. The Bantako North permit area (wholly owned and in good
standing) contains a significant portion of the Mamba deposit
saprolite material and remains open). Preliminary planning by the
Company has demonstrated that a pit situated on the Bantako North
permit area could provide saprolite material for at least 1.5 to 2
years to feed the Fekola mill commencing in 2022 subject to
obtaining all necessary permits and completion of a final mine
plan. This additional feed to the Fekola mill would benefit all
stakeholders, including the State of
Mali, B2Gold's 20% partner at the Fekola Mine.
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 acquisition
opportunities and continue to return capital to our shareholders
with a substantial dividend.
Second Quarter 2021 Financial Results - Conference Call
Details
B2Gold executives will host a conference call to discuss the
results on Thursday, August 5, 2021,
at 10:00 am PDT/1:00 pm EDT. You may access the call by dialing
the operator at +1 (778) 383-7413 (Vancouver), +1 (416) 764-8659 (Toronto) or +1 (888) 664-6392 (toll free)
prior to the scheduled start time or you may listen to the call via
webcast by clicking here. A playback version will be available for
two weeks after the call at +1 (416) 764-8677 (local or
international) or +1 (888) 390-0541 (toll free) (passcode 215816
#).
Qualified Persons
Bill Lytle, Senior Vice President
of Operations, a qualified person under NI 43-101, has approved the
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
|
+1
604-681-8371
|
+1
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, $500
million of which are expected to be generated 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; the Fekola mill being expected to
run at an annualized throughput rate of 8.3 Mtpa for 2021 and
average approximately 8.5 Mtpa (over the long-term); the
Bantako North permit area providing saprolite material for 1.5 to 2
years to feed the Fekola mill commencing in 2022 subject to
obtaining all necessary permits and completion of a final mine
plan; production expected to commence from the Cardinal area in the
third quarter of 2021; the completion of the updated Kiaka
feasibility study, including the timing and the results thereof;
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 second quarter of 2022, and the
results thereof; 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; Otjikoto's
higher gold production level of between 190,000 – 200,000 ounces
being expected to continue through to 2024; 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; 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.
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE
30
(Expressed in thousands of United
States dollars, except per share amounts)
(Unaudited)
|
For the
three
months ended
June 30, 2021
|
For the three
months ended
June 30, 2020
|
|
For the six
months ended
June 30, 2021
|
For the six
months ended
June 30, 2020
|
|
|
|
|
|
|
Gold
revenue
|
$
|
362,990
|
$
|
441,939
|
|
$
|
725,292
|
$
|
822,237
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
Production costs
|
(132,293)
|
(96,987)
|
|
(243,925)
|
(188,543)
|
Depreciation and depletion
|
(77,809)
|
(75,582)
|
|
(144,536)
|
(146,194)
|
Royalties and production taxes
|
(24,671)
|
(31,234)
|
|
(51,197)
|
(56,965)
|
Total cost of
sales
|
(234,773)
|
(203,803)
|
|
(439,658)
|
(391,702)
|
|
|
|
|
|
|
Gross
profit
|
128,217
|
238,136
|
|
285,634
|
430,535
|
|
|
|
|
|
|
General and
administrative
|
(10,518)
|
(8,062)
|
|
(20,616)
|
(18,250)
|
Share-based
payments
|
(8,673)
|
(7,440)
|
|
(9,839)
|
(11,087)
|
Community
relations
|
(733)
|
(492)
|
|
(1,314)
|
(4,226)
|
Foreign exchange
losses
|
(4,534)
|
(3,101)
|
|
(1,040)
|
(4,333)
|
Share of net income
(loss) of associate
|
4,281
|
(3,765)
|
|
9,347
|
2,635
|
Other
|
547
|
(3,855)
|
|
(3,409)
|
(4,428)
|
Operating
income
|
108,587
|
211,421
|
|
258,763
|
390,846
|
|
|
|
|
|
|
Interest and
financing expense
|
(3,049)
|
(5,051)
|
|
(5,945)
|
(9,568)
|
Gains (losses) on
derivative instruments
|
9,491
|
3,430
|
|
17,540
|
(11,412)
|
Other
|
454
|
1,108
|
|
116
|
929
|
Income from
operations before taxes
|
115,483
|
210,908
|
|
270,474
|
370,795
|
|
|
|
|
|
|
Current income tax,
withholding and other taxes
|
(50,470)
|
(82,229)
|
|
(91,596)
|
(145,699)
|
Deferred income tax
recovery (expense)
|
8,969
|
9,282
|
|
(6,064)
|
(4,127)
|
Net income for the
period
|
$
|
73,982
|
$
|
137,961
|
|
$
|
172,814
|
$
|
220,969
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
Shareholders of the Company
|
$
|
68,457
|
$
|
124,446
|
|
$
|
160,012
|
$
|
196,733
|
Non-controlling interests
|
5,525
|
13,515
|
|
12,802
|
24,236
|
Net income for the
period
|
$
|
73,982
|
$
|
137,961
|
|
$
|
172,814
|
$
|
220,969
|
|
|
|
|
|
|
Earnings per
share
(attributable to
shareholders of the Company)
|
|
|
|
|
|
Basic
|
$
|
0.07
|
$
|
0.12
|
|
$
|
0.15
|
$
|
0.19
|
Diluted
|
$
|
0.06
|
$
|
0.12
|
|
$
|
0.15
|
$
|
0.19
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
(in
thousands)
|
|
|
|
|
|
Basic
|
1,053,054
|
1,040,661
|
|
1,052,303
|
1,037,847
|
Diluted
|
1,063,900
|
1,058,388
|
|
1,063,542
|
1,053,696
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND SIX MONTHS ENDED JUNE
30
(Expressed in thousands of United
States dollars)
(Unaudited)
|
For the
three
months
ended
June 30,
2021
|
For the
three
months
ended
June 30,
2020
|
|
For the
six
months
ended
June 30,
2021
|
For the
six
months
ended
June 30,
2020
|
Operating
activities
|
|
|
|
|
|
Net
income for the period
|
$
|
73,982
|
$
|
137,961
|
|
$
|
172,814
|
$
|
220,969
|
Mine
restoration provisions settled
|
—
|
(19)
|
|
—
|
(208)
|
Non-cash
charges, net
|
67,847
|
74,891
|
|
143,046
|
179,420
|
Changes
in non-cash working capital
|
(146,112)
|
28,558
|
|
(170,978)
|
60,301
|
Changes
in long-term value added tax receivables
|
(4,033)
|
(3,302)
|
|
(7,344)
|
(6,180)
|
Cash
(used) provided by operating activities
|
(8,316)
|
238,089
|
|
137,538
|
454,302
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Revolving credit facility drawdowns
|
—
|
250,000
|
|
—
|
250,000
|
Repayment of revolving credit facility
|
—
|
—
|
|
—
|
(25,000)
|
Repayment of equipment loan facilities
|
(7,343)
|
(4,937)
|
|
(14,570)
|
(15,733)
|
Interest
and commitment fees paid
|
(822)
|
(4,128)
|
|
(1,733)
|
(7,904)
|
Cash
proceeds from stock option exercises
|
1,082
|
11,121
|
|
1,834
|
27,465
|
Dividends paid
|
(41,893)
|
—
|
|
(83,965)
|
(10,368)
|
Principal payments on lease arrangements
|
(693)
|
(816)
|
|
(1,428)
|
(1,645)
|
Distributions to non-controlling interests
|
(7,234)
|
—
|
|
(9,234)
|
—
|
Restricted cash movement
|
388
|
174
|
|
499
|
2,278
|
Cash
(used) provided by financing activities
|
(56,515)
|
251,414
|
|
(108,597)
|
219,093
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Expenditures on mining interests:
|
|
|
|
|
|
Fekola Mine
|
(8,721)
|
(52,340)
|
|
(26,117)
|
(126,473)
|
Masbate Mine
|
(6,778)
|
(4,529)
|
|
(13,342)
|
(9,290)
|
Otjikoto Mine
|
(21,091)
|
(10,920)
|
|
(39,966)
|
(22,652)
|
Gramalote Project
|
(4,002)
|
(446)
|
|
(7,469)
|
(13,124)
|
Other exploration and development
|
(15,253)
|
(11,883)
|
|
(25,424)
|
(21,247)
|
Purchase
of common shares of associate
|
(5,945)
|
—
|
|
(5,945)
|
—
|
Funding
of reclamation accounts
|
(2,178)
|
—
|
|
(3,499)
|
—
|
Non-refundable deposit received on Toega Property
|
—
|
9,000
|
|
—
|
9,000
|
Other
|
(1,990)
|
1,109
|
|
(3,523)
|
1,092
|
Cash
used by investing activities
|
(65,958)
|
(70,009)
|
|
(125,285)
|
(182,694)
|
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
(130,789)
|
419,494
|
|
(96,344)
|
490,701
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
362
|
236
|
|
(1,200)
|
(3,628)
|
Cash and cash
equivalents, beginning of period
|
512,568
|
207,939
|
|
479,685
|
140,596
|
Cash and cash
equivalents, end of period
|
$
|
382,141
|
$
|
627,669
|
|
$
|
382,141
|
$
|
627,669
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United
States dollars)
(Unaudited)
|
As at June
30,
2021
|
As at December
31,
2020
|
Assets
|
|
|
Current
|
|
|
Cash and
cash equivalents
|
$
|
382,141
|
$
|
479,685
|
Accounts
receivable, prepaids and other
|
43,439
|
21,306
|
Value-added and other tax receivables
|
35,593
|
11,797
|
Inventories
|
269,668
|
238,055
|
Assets
classified as held for sale
|
11,855
|
11,855
|
|
742,696
|
762,698
|
|
|
|
Value-added tax
receivables
|
38,489
|
35,383
|
Mining
interests
|
|
|
Owned by
subsidiaries and joint operations
|
2,326,024
|
2,387,020
|
Investments in associates
|
96,268
|
76,235
|
Other
assets
|
82,639
|
76,496
|
Deferred income
taxes
|
10,135
|
24,547
|
|
$
|
3,296,251
|
$
|
3,362,379
|
Liabilities
|
|
|
Current
|
|
|
Accounts
payable and accrued liabilities
|
$
|
74,934
|
$
|
89,062
|
Current
income and other taxes payable
|
45,048
|
154,709
|
Current
portion of long-term debt
|
31,632
|
34,111
|
Other
current liabilities
|
21,451
|
8,211
|
|
173,065
|
286,093
|
|
|
|
Long-term
debt
|
61,892
|
75,911
|
Mine restoration
provisions
|
95,802
|
104,282
|
Deferred income
taxes
|
212,555
|
220,903
|
Employee benefits
obligation
|
7,184
|
5,874
|
Other long-term
liabilities
|
7,183
|
8,726
|
|
557,681
|
701,789
|
Equity
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
|
|
Issued: 1,054,090,730 common shares (Dec 31,
2020 – 1,051,138,175)
|
2,414,988
|
2,407,734
|
Contributed surplus
|
56,286
|
48,472
|
Accumulated other comprehensive loss
|
(139,172)
|
(138,533)
|
Retained
earnings
|
330,513
|
254,343
|
|
2,662,615
|
2,572,016
|
Non-controlling
interests
|
75,955
|
88,574
|
|
2,738,570
|
2,660,590
|
|
$
|
3,296,251
|
$
|
3,362,379
|
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SOURCE B2Gold Corp.