VANCOUVER, BC, November 3, 2020 /CNW/ - B2Gold
Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or
the "Company") is pleased to announce strong operational and
financial results for the third quarter and first nine months of
2020. The Company previously released its gold production and gold
revenue results for the third quarter and first nine months of
2020. All dollar figures are in United
States dollars unless otherwise indicated.
2020 Third Quarter Highlights
- Consolidated gold production of 248,733 ounces from the
Company's three operating mines, above budget by 1% (2,929 ounces)
and a significant increase of 17% (35,455 ounces) over the third
quarter of 2019 (excluding discontinued operations of El Limon and
La Libertad)
- Total gold production of 263,813 ounces (including 15,080
ounces of attributable production from Calibre Mining Corp.
("Calibre"))
- Record quarterly consolidated gold revenue of $487 million, a significant increase of
$176 million (57%) over the third
quarter of 2019 (excluding discontinued operations)
- Record quarterly consolidated cash flow provided by operating
activities from the Company's three operating mines of $301 million, a significant increase of
$133 million (79%) over the third
quarter of 2019
- Consolidated cash operating costs (see "Non-IFRS
Measures") of $411 per ounce
produced, below budget by $17 per
ounce (4%), and consolidated all-in sustaining costs ("AISC")
(see "Non-IFRS Measures") of $766 per ounce sold, below budget by $31 per ounce (4%) (excluding estimated
attributable results for Calibre)
- Net income of $277 million
(including a net impairment reversal for the Masbate Mine of
$122 million); net income
attributable to the shareholders of the Company of $263 million ($0.25
per share); adjusted net income (see "Non-IFRS Measures")
attributable to the shareholders of the Company of $161 million ($0.15
per share)
- The Fekola Mine continues to operate unimpeded and no
operational days have been lost due to the recent political
developments and demonstrations in Mali
- No Lost-Time-Injury ("LTI") incidents at the Company's
operating mines, extending the number of days without an LTI to 255
days for Fekola, 684 days for Masbate and 918 days for Otjikoto as
at September 30, 2020
- On August 5, 2020, the Company
announced a 100% increase of its quarterly dividend to $0.04 per share (or an expected $0.16 per share on an annualized basis), which
was reflected in the third quarter dividend paid on September 30, 2020
- On September 10, 2020, the
Company announced the successful commissioning of the Fekola mill
expansion to 7.5 million tonnes per annum ("Mtpa") (an increase of
1.5 Mtpa from an assumed base rate of 6 Mtpa), ahead of the
scheduled completion date of September 30,
2020; the Fekola mill has the potential to run above the
annualized throughput rate of 7.5 Mtpa and analysis is currently
underway to determine the optimum throughput rate
- B2Gold maintains a strong financial position and liquidity;
during the third quarter of 2020, the Company fully repaid the
outstanding Revolving Credit Facility ("RCF") balance of
$425 million with the full amount of
the $600 million RCF now undrawn and
available
2020 First Nine Months Highlights
- Record year-to-date consolidated gold production from the
Company's three operating mines of 738,939 ounces, well above
budget by 4% (26,412 ounces) and a significant increase of 19%
(116,229 ounces) over the first nine months of 2019 (excluding
discontinued operations)
- Total gold production of 770,268 ounces (including 31,329
ounces of attributable production from Calibre)
- Record year-to-date consolidated gold revenue of $1.3 billion, a significant increase of
$467 million (56%) over the first
nine months of 2019 (excluding discontinued operations)
- Record year-to-date consolidated cash flow provided by
operating activities of $755 million,
a significant increase of $408
million (118%) over the first nine months of 2019
- Consolidated cash operating costs of $388 per ounce produced, well below budget by
$33 per ounce (8%), and consolidated
AISC of $726 per ounce sold, well
below budget by $77 per ounce (10%)
(excluding estimated attributable results for Calibre)
- Net income of $498 million
(including a net impairment reversal for the Masbate Mine of
$122 million); net income
attributable to the shareholders of the Company of $460 million ($0.44
per share); adjusted net income attributable to the shareholders of
the Company of $368 million
($0.35 per share)
- For full-year 2020, the Company forecasts total consolidated
gold production to come in towards the midpoint of its guidance
range of between 1,000,000 and 1,055,000 ounces, with total
consolidated cash operating costs expected to be at or below the
low end of its guidance range of between $415 and $455 per
ounce and total consolidated AISC to be at the lower end of its
guidance range of between $780 and
$820 per ounce
- Based on current assumptions, including a gold price of
$1,900 per ounce for the balance of
2020, the Company expects to generate cashflows from operating
activities of more than $900 million
in 2020
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
the highest priority and continues to encourage input from all its
stakeholders as the situation evolves. The Company has implemented
several measures and introduced additional 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 plan 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 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.
2020 Third Quarter and First Nine Months Operational Results
and Development
Consolidated gold production from the Company's three operating
mines in the third quarter of 2020 was 248,733 ounces, above
budget by 1% (2,929 ounces) and a significant increase of 17%
(35,455 ounces) over the third quarter of 2019 (excluding
discontinued operations) with solid performances from all of
the Company's operations. The significant increase in gold
production over the third quarter of 2019 was driven by the Fekola
Mine in Mali, which continued its
very strong operational performance with gold production of 152,535
ounces, above budget by 2% (2,535 ounces), and 36% (40,214 ounces)
higher compared to the third quarter of 2019. Fekola's significant
increase in gold production over the third quarter of 2019 was
mainly due to the expansion of the Fekola mining fleet and
optimization of the pit designs and mine plan for 2020, which have
provided access to higher grade portions of the Fekola deposit
earlier than anticipated in previous mine plans. The Otjikoto Mine
in Namibia also had a solid third
quarter of 2020, producing 42,591 ounces of gold, 2% (985 ounces)
above budget. The Masbate Mine in the
Philippines continued to perform well through the third
quarter of 2020 despite a 6-day mill shutdown following an
earthquake on August 18, 2020,
producing 53,607 ounces of gold, substantially in-line with budget
(of 54,198 ounces), and 4% higher (2,061 ounces) compared to the
third quarter of 2019. Including attributable ounces from Calibre
(15,080 ounces), the Company's total gold production in the third
quarter of 2020 was 263,813 ounces.
For the third quarter of 2020, consolidated cash operating costs
were $411 per ounce produced
($414 per ounce sold), below budget
by $17 (4%) per ounce and well below
the third quarter of 2019 by $32 (7%)
per ounce (excluding discontinued operations), reflecting the
strong operating results from all of the Company's operations.
Including estimated attributable results for Calibre, the Company's
total cash operating costs were $435
per ounce produced ($437 per ounce
sold).
For the third quarter of 2020, consolidated AISC were
$766 per ounce sold, below budget by
$31 per ounce (4%) and slightly above
the third quarter of 2019 (1%) (excluding discontinued operations).
The favourable budget variance reflected lower-than-budgeted cash
operating costs, higher-than-budgeted gold ounces sold,
lower-than-budgeted general and administrative costs and
lower-than-budgeted sustaining capital expenditures ($13 million), partially offset by
higher-than-budgeted royalties (as a result of higher gold prices).
The Company expects total sustaining capital expenditures for
full-year 2020 to be approximately $11
million under budget. Including estimated attributable
results for Calibre, the Company's total AISC for the third quarter
of 2020 were $785 per ounce
sold.
Consolidated gold production for the first nine months of 2020
was a year-to-date record 738,939 ounces, 4% (26,412 ounces) above
budget and 19% (116,229 ounces) higher than the first nine months
of 2019 (excluding discontinued operations). Including attributable
ounces from Calibre (31,329 ounces), the Company's total gold
production in the first nine months of 2020 was 770,268 ounces.
For the first nine months of 2020, consolidated cash operating
costs were $388 per ounce produced
($391 per ounce sold), well below
budget by $33 (8%) per ounce and
significantly lower than the first nine months of 2019 by
$63 (14%) per ounce (excluding
discontinued operations). Including estimated attributable results
for Calibre, the Company's total cash operating costs were
$405 per ounce produced ($409 per ounce sold).
For the first nine months of 2020, consolidated AISC were
$726 per ounce sold, well below both
budget by $77 (10%) per ounce and the
first nine months of 2019 by $42 (5%)
per ounce (excluding discontinued operations). Including estimated
attributable results for Calibre, the Company's total AISC for the
first nine months of 2020 were $740
per ounce sold.
B2Gold remains well positioned for continued strong operational
and financial performance in 2020. For full-year 2020, the Company
forecasts total consolidated gold production (including
attributable ounces from Calibre) to come in towards the midpoint
of its production guidance range of between 1,000,000 and 1,055,000
ounces. Consolidated cash costs are expected to remain low in 2020,
and the Company expects to be at or below the low end of its
guidance range for total consolidated cash operating costs of
between $415 and $455 per ounce and at the lower end of its
guidance range for total consolidated AISC of between $780 and $820 per
ounce.
The Company's expansion and development projects also progressed
well through the third quarter of 2020:
- At Fekola, on September 10, 2020,
the Company announced the successful commissioning of the Fekola
mill expansion to 7.5 Mtpa (an increase of 1.5 Mtpa from an assumed
base rate of 6 Mtpa), approximately one month ahead of the
scheduled completion date of September 30,
2020. The Fekola mill has the potential to run above the
annualized throughput rate of 7.5 Mtpa and analysis is currently
underway to determine the optimum throughput rate. Remobilization
of the Fekola solar plant construction group began in mid-September 2020 (following a temporary
suspension of construction activities in April 2020 due to COVID-19) and will continue to
ramp up as camp space becomes available. The target date for
completion of the solar plant is the end of the first quarter of
2021 but has the potential to be delayed by several months as COVID
restrictions are limiting the available workforce and site
support.
- At Otjikoto, development of the Wolfshag underground mine
continues to progress on schedule. In the third quarter of 2020,
the mining contractor was mobilized, and development of the portal
and primary underground ramp has now commenced. Stope ore
production is expected to commence in early 2022, in-line with
original estimates.
- At the Gramalote Project, feasibility work continued as planned
from the recommencement of drilling on May
11, 2020, with infill resource drilling completed on
August 21, 2020. During the third
quarter of 2020, work continued to advance for infrastructure
design, process plant design, pit design and social initiatives.
Resource modelling is anticipated to be completed in November 2020 at which time the final phase of
the Gramalote Feasibility Study work will proceed based upon
updated resources. The Gramalote Feasibility Study is expected to
be completed in the first quarter of 2021.
2020 Third Quarter and First Nine Months Financial
Results
Consolidated gold revenue in the third quarter of 2020 was a
quarterly record of $487 million from
the Company's three operating mines on sales of 253,200 ounces at
an average price of $1,924 per ounce,
compared to $311 million on sales of
208,900 ounces at an average price of $1,488 per ounce in the third quarter of 2019
(excluding discontinued operations). Compared to the third quarter
of 2019, consolidated gold revenue increased significantly by 57%
($176 million), of which 36% related
to the increase in the average realized gold price and 21% to the
increase in gold ounces sold (mainly due to the higher gold
production).
For the third quarter of 2020, cash flow provided by operating
activities was a quarterly record of $301
million compared to $168
million in the third quarter of 2019. This significant
increase of $133 million (79%)
reflected the significant increase in gold revenue, as a result of
higher realized gold prices and sales.
For the third quarter of 2020, net income was $277 million compared to $66 million for the third quarter of 2019. In the
third quarter of 2020, the Company identified a higher sustained
long-term gold price as an indicator of impairment reversal for the
Masbate Mine resulting in a net impairment reversal of $122 million (pre-tax $174
million impairment reversal less $52
million deferred tax expense). Net income attributable to
the shareholders of the Company was $263
million ($0.25 per share)
compared to $56 million ($0.05 per share) for the third quarter of 2019.
Adjusted net income attributable to shareholders of the Company was
$161 million ($0.15 per share) compared to $85 million ($0.08
per share) in the third quarter of 2019.
Consolidated gold revenue for the first nine months of 2020 was
a year-to-date record of $1.3 billion
on sales of 749,800 ounces at an average price of $1,746 per ounce, compared to $842 million on sales of 616,000 ounces at an
average price of $1,367 per ounce in
the first nine months of 2019 (excluding discontinued operations).
Compared to the first nine months of 2019, consolidated gold
revenue increased significantly by 56% ($467
million), of which 34% related to the increase in the
average realized gold price and 22% to the increase in gold ounces
sold.
For the first nine months of 2020, cash flow provided by
operating activities was a year-to-date record of $755 million, a significant increase of
$408 million (118%) compared to the
first nine months of 2019, as a result of higher realized gold
prices and sales.
For the first nine months of 2020, net income was $498 million compared to $133 million for the first nine months of 2019.
Net income attributable to the shareholders of the Company was
$460 million ($0.44 per share) compared to $116 million ($0.11
per share) for the first nine months of 2019. Adjusted net income
attributable to the shareholders of the Company was $368 million ($0.35
per share) compared to adjusted net income of $154 million ($0.15
per share) for the first nine months of 2019.
Liquidity and Capital Resources
B2Gold maintains a strong financial position and liquidity.
During the third quarter of 2020, the Company fully repaid the
outstanding RCF balance of $425
million with the full amount of the $600 million RCF now undrawn and available. In
addition, at September 30, 2020, the
Company had cash and cash equivalents of $365 million (December 31,
2019 - $141 million) and
working capital of $356 million
(December 31, 2019 - $242 million).
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 was increased in the third quarter
of 2020 by 100% to $0.04 per common
share (or an annualized rate of $0.16
per common share), which was reflected in the third quarter
dividend paid on September 30,
2020.
Based on current assumptions, including an average gold price of
$1,900 per ounce for the balance of
2020, the Company expects to generate cashflows from operating
activities of more than $900 million
in 2020. The Company's ongoing strategy is to continue to maximize
profitable production from its mines, grow its mineral reserves,
utilize cash flow to continue the dividend payment, further advance
its pipeline of development and exploration projects and evaluate
growth opportunities.
Operations
Mine-by-mine gold production in the third quarter and first nine
months of 2020 (including the Company's approximate 34% share of
Calibre's production) was as follows:
Mine
|
Q3
2020 Gold
Production (ounces)
|
First Nine Months
2020 Gold
Production (ounces)
|
2020 Annual Guidance Gold Production
(ounces)
|
Fekola
|
152,535
|
463,970
|
590,000 -
620,000
|
Masbate
|
53,607
|
147,133
|
200,000 -
210,000
|
Otjikoto
|
42,591
|
127,836
|
165,000 -
175,000
|
|
|
|
|
B2Gold
Consolidated (1)
|
248,733
|
738,939
|
955,000 –
1,005,000
|
|
|
|
|
Equity interest
in Calibre (2)
|
15,080
|
31,329
|
45,000 - 50,000
(3)
|
|
|
|
|
Total
|
263,813
|
770,268
|
1,000,000 –
1,055,000 (3)
|
(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 34% indirect
share of the operations of Calibre's El Limon and La Libertad mines
in Nicaragua. B2Gold applies the equity method of accounting for
its ownership interest in Calibre.
|
(3)
|
On June 24, 2020,
Calibre provided its revised 2020 production guidance following the
temporary suspension of its Nicaraguan operations due to COVID-19.
The Company's attributable gold production from Calibre is now
estimated to be between 37,000 and 42,000 ounces for 2020 (or 8,000
ounces lower than the original estimate of between 45,000 and
50,000 ounces of gold).
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold produced basis) in the third quarter and first nine
months of 2020 were as follows (presented on a 100%
basis):
Mine
|
Q3
2020 Cash Operating
Costs ($ per ounce
produced)
|
First Nine Months
2020 Cash Operating
Costs ($ per ounce
produced)
|
2020 Annual Guidance Cash Operating Costs ($ per ounce)
|
Fekola
|
$333
|
$294
|
$285 -
$325
|
Masbate
|
$615
|
$646
|
$665 -
$705
|
Otjikoto
|
$435
|
$432
|
$480 -
$520
|
B2Gold
Consolidated
|
$411
|
$388
|
$395 -
$440
|
|
|
|
|
Equity interest
in Calibre
|
$831
|
$819
|
$720 -
$760
|
|
|
|
|
Total
|
$435
|
$405
|
$415 -
$455
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold sold basis) in the third quarter and first nine months of 2020
were as follows (presented on a 100% basis):
Mine
|
Q3
2020 Cash Operating
Costs ($ per ounce
sold)
|
First Nine Months
2020 Cash Operating
Costs ($ per ounce
sold)
|
2020 Annual Guidance Cash Operating Costs ($ per ounce)
|
Fekola
|
$341
|
$299
|
$285 -
$325
|
Masbate
|
$655
|
$684
|
$665 -
$705
|
Otjikoto
|
$423
|
$419
|
$480 -
$520
|
B2Gold
Consolidated
|
$414
|
$391
|
$395 -
$440
|
|
|
|
|
Equity interest
in Calibre
|
$817
|
$822
|
$720 -
$760
|
|
|
|
|
Total
|
$437
|
$409
|
$415 -
$455
|
Mine-by-mine AISC (on a per ounce of gold sold basis) in the
third quarter and first nine months of 2020 were as follows
(presented on a 100% basis):
Mine
|
Q3
2020 AISC ($
per ounce sold)
|
First Nine
Months
2020 AISC ($
per ounce sold)
|
2020 Annual Guidance AISC ($
per ounce)
|
Fekola
|
$584
|
$556
|
$555 -
$595
|
Masbate
|
$1,072
|
$1,012
|
$965 -
$1,005
|
Otjikoto
|
$917
|
$841
|
$1,010 -
$1,050
|
B2Gold
Consolidated
|
$766
|
$726
|
$765 -
$805
|
|
|
|
|
Equity interest
in Calibre
|
$1,090
|
$1,090
|
$1,020 -
$1,060
|
|
|
|
|
Total
|
$785
|
$740
|
$780 -
$820
|
Fekola Gold Mine - Mali
The Fekola Mine in Mali
continued its very strong operational performance in the third
quarter of 2020 with gold production of 152,535 ounces, above
budget by 2% (2,535 ounces), as processed grade and recovery both
exceeded budget and which more than offset lower-than-budgeted
throughput in the quarter due to additional downtime for planned
mill expansion tie-ins and a full SAG mill reline. Compared to the
third quarter of 2019, gold production was significantly higher by
36% (40,214 ounces). Fekola's significant increase in gold
production over the third quarter of 2019 was mainly due to the
expansion of the Fekola mining fleet and optimization of the pit
designs and mine plan for 2020, which have provided access to
higher grade portions of the Fekola deposit earlier than
anticipated in previous mine plans. As at September 30, 2020, the Fekola Mine achieved 255
days without an LTI.
For the third quarter of 2020, mill feed grade was 3.22 grams
per tonne ("g/t") compared to budget of 2.93 g/t and 2.16 g/t in
the third quarter of 2019; mill throughput was 1.56 million tonnes
compared to budget of 1.70 million tonnes and 1.70 million tonnes
in the third quarter of 2019; and gold recovery averaged 94.6%
compared to budget of 94.0% and 94.1% in the third quarter of
2019.
For the third quarter of 2020, Fekola's cash operating costs
were $333 per ounce produced
($341 per gold ounce sold), slightly
above budget (1%). Compared to the third quarter of 2019, Fekola's
cash operating costs were lower by $50 per ounce produced (13%), mainly as a result
of higher gold production. Fekola's AISC for the third quarter of
2020 were $584 per ounce sold, below
budget by $20 per ounce (3%) and well
below the third quarter of 2019 by $58 per ounce (9%).
For the first nine months of 2020, the Fekola Mine produced
463,970 ounces of gold, well above budget by 5% (22,970 ounces) and
significantly higher than the first nine months of 2019 by 38%
(127,403 ounces). Through effective mine planning and a successful
stockpiling strategy, Fekola was able to exceed its gold production
budget during the construction of its mill expansion in 2020.
For the first nine months of 2020, Fekola's cash operating costs
were $294 per ounce produced
($299 per gold ounce sold), below
budget by $11 per ounce (4%) and
significantly lower than the first nine months of 2019 by
$84 per ounce (22%). Fekola's AISC
were $556 per ounce sold, well below
both budget by $34 per ounce (6%) and
the first nine months of 2019 by $70
per ounce (11%). Fekola's AISC for the first nine months of 2020
included lower-than-budgeted sustaining capital expenditures
relating to lower pre-stripping costs for the Fekola Pit Phases 5
and 6 (which resulted from mining sequence changes and are no
longer expected to be incurred in 2020) and approximately
$4 million of overall sustaining
costs savings versus budget on the tailings storage facility
project completed during the year. The Company expects total
sustaining capital expenditures for the Fekola Mine for full-year
2020 to be approximately $8 million
lower than budget.
Capital expenditures in the third quarter of 2020 totaled
$29 million primarily consisting of
$10 million for the mining fleet
expansion, $11 million for the
processing plant expansion, $3
million for pre-stripping and $1
million for the solar plant. Capital expenditures in the
first nine months of 2020 totaled $156
million primarily consisting of $58
million for the mining fleet expansion, $39 million for the processing plant expansion,
$21 million for pre-stripping,
$19 million for the solar plant and
$4 million for the tailings storage
facilities.
The Fekola Mine continues to operate unimpeded and no
operational days were lost due to the recent political
developments in Mali. With the
establishment of a new interim government in September 2020, expected to lead Mali through to new presidential and
legislative elections within 18 months, the Economic Community of
West African States has now lifted its sanctions on Mali, including air, border and financial
restrictions. B2Gold will continue to work with regional and
national governments to ensure that its mining operations continue
normally, providing important economic benefits to all
stakeholders, including our employees, governments and the
communities around the mine.
For full-year 2020, the Fekola Mine is expected to produce at
the upper end of its guidance range of between 590,000 and 620,000
ounces of gold. Fekola's cash operating costs are expected to be
between $285 and $325 per ounce and AISC are expected to be near
the upper end of its guidance range of between $555 and $595 per
ounce (due to increased royalties as a result of higher gold
prices).
Fekola Mine Expansion
On September 10, 2020, the Company
announced the successful commissioning of the Fekola mill expansion
to 7.5 Mtpa (an increase of 1.5 Mtpa from an assumed base rate of 6
Mtpa), ahead of the scheduled completion date of September 30, 2020. The Fekola mill has the
potential to run above the annualized throughput rate of 7.5 Mtpa
and analysis is currently underway to determine the optimum
throughput rate (using ore blends comparable to those planned for
2021 and future production). Commissioning included completion of
all major construction activities associated with the Fekola mill
expansion, as well as successful execution of a process performance
test to compare with design expectations. Four days after start-up,
a 5-day mill performance test was conducted from August 26 to August 30, 2020. The results of the
performance test exceeded design in throughput, gold recovery,
grind and availability over the 5-day day period. In addition,
substantially all of the Fekola mine fleet expansion equipment
planned for 2020 (including excavators, trucks, and drill rigs)
have now arrived on site and are operational, with the overall mine
expansion now materially complete. The final non-sustaining costs
incurred for the plant expansion were approximately $13 million higher than budget, of which the
majority of overruns related to COVID-19 costs and increased labour
and camp costs.
Fekola Solar Plant
Remobilization of the solar plant construction group began in
mid-September 2020 (following a
temporary suspension of construction activities in April 2020 due to COVID-19) and will continue to
ramp up as camp space becomes available. The target date for
completion of the solar plant is the end of the first quarter of
2021 but has the potential to be delayed by several months as COVID
restrictions are limiting the available workforce and site support.
The existing 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 of the mill
expansion but is expected to reduce Fekola's operating costs and
emissions by decreasing power plant fuel consumption and
maintenance costs.
B2Gold's Strong Investment and Partnership in Mali
B2Gold is one of the largest Canadian and foreign investors in
Mali, with total investment to
date of approximately $1 billion and
the Company continues to have a strong and mutually beneficial
relationship with the Government of Mali. As B2Gold's 20% partner at the Fekola
Mine, the State of Mali is a
direct economic beneficiary of the Fekola Mine's operating results,
and in addition the mine employs more than 2,200 Malians. Since the
commencement of commercial production in late 2017, the Fekola Mine
has provided important economic benefits and revenues to both local
Malians and the Government of Mali. For fiscal 2017 to 2019, total employee
wages and benefits paid by the Company were approximately
$140 million, and total payments to
the Government of Mali by the
Company were approximately $276
million. Payments to the Government of Mali included corporate income tax,
withholding taxes, royalties and production-based taxes, and
priority dividends, which are payable each year on the first 10%
tranche of the State of Mali's
overall 20% ownership interest in the Fekola Mine.
In addition to the priority dividends payable annually to the
State of Mali, the second 10%
tranche of the State's interest in the Fekola Mine will also
attract ordinary dividends. Based on current assumptions and
following the final repayment of B2Gold's initial intercompany
loans for construction of the Fekola Mine, the Company expects that
distribution of ordinary dividends to the State will commence in
late 2020.
The Fekola Convention, as amended, was established under the
2012 Mining Code and governs the legal, administrative, tax,
economic, mining, social and environmental conditions under which
B2Gold operates the Fekola Mine and is enforceable between the
parties for the term of the Fekola Mine mining permit, an initial
30 year period, renewable for successive periods of 10 years. A new
mining code was adopted in Mali in
September 2019 (the "2019 Mining
Code"), which outlines certain tax and customs stabilization of
existing mining conventions and the enforceability of the existing
conventions, including the Fekola Convention. The 2019 Mining Code
expressly states that mining titles that are valid at the time of
the entry into force of the 2019 Mining Code remain valid for their
term and for the substance for which they have been issued. In
addition, the mining conventions in force at the date of the 2019
Mining Code, including the Fekola Convention, remain valid for
their term and benefit from the stabilization of their tax and
customs regime as provided under such mining convention.
Masbate Gold Mine – the
Philippines
The Masbate Mine in the
Philippines also continued to perform well through the third
quarter of 2020, producing 53,607 ounces of gold, substantially
in-line with budget (of 54,198 ounces), and 4% higher (2,061
ounces) compared to the third quarter of 2019. Following a
magnitude 6.6 earthquake approximately 90 kilometres from the mine
site on August 18, 2020, Masbate's
mining and processing operations were temporarily suspended for
five and six days, respectively, for inspections mandated by the
Philippines Mines and Geo-sciences Bureau. Planned maintenance was
performed ahead of schedule during the shutdown period, and normal
operations continued after the inspections determined that there
was no damage to the mine from the earthquake. The Company worked
with local communities to provide medical, food, and other support
to the impacted areas. In addition, operations continue to run
normally at the Masbate Mine, following Typhoon Goni which first
made landfall in the Philippines
on November 1, 2020. The Masbate Mine
continued its remarkable safety performance, extending the number
of days without an LTI to 684 days as at September 30, 2020.
For the third quarter of 2020, mill feed grade was 1.05 g/t
compared to budget of 1.05 g/t and 1.09 g/t in the third quarter of
2019; mill throughput was 1.97 million tonnes compared to budget of
2.1 million tonnes and 2.0 million tonnes in the third quarter of
2019; and gold recovery averaged 81.1% compared to budget of 76.4%
and 72.4% in the third quarter of 2019. Average gold recoveries
were above budget due to mining more oxide ore than budgeted.
Masbate's third quarter of 2020 cash operating costs were
$615 per ounce produced ($655 per ounce sold), well-below budget by
$33 per ounce produced (5%) and
slightly lower (1%) than the third quarter of 2019. The favourable
budget variance was attributable to lower-than-budgeted mining and
processing costs, as fuel prices, tonnes mined, and waste stripping
were all below budget for the third quarter of 2020. Masbate's AISC
for the third quarter of 2020 were $1,072 per ounce sold (Q3 2019 - $833 per ounce sold), above budget by
$162 per ounce (18%). This resulted
from lower-than-budgeted gold ounces sold during the period (due to
the timing of gold shipments) and higher-than-budgeted sustaining
capital expenditures resulting from a backlog of COVID-19 delayed
equipment purchases and projects that were scheduled for earlier in
the year. The remaining backlog of capital purchases is expected to
be incurred in the fourth quarter of 2020 and the Company expects
that Masbate's total sustaining capital expenditures for 2020 will
be approximately $7 million higher
than budget as a result of accelerating 2021 capital expenditures.
However, for the full-year 2020, Masbate's AISC are expected to be
within guidance of between $965 and
$1,005 per ounce.
For the first nine months of 2020, the Masbate Mine produced
147,133 ounces of gold, in-line with budget (of 147,381 ounces) and
12% (19,466 ounces) lower compared to the first nine months of 2019
(as planned, mainly due to lower head grade). The on-budget
production was achieved despite a 6-day mandated mill shutdown
following an earthquake on August 18,
2020 (for inspections which confirmed that there was no
damage to the mine from the earthquake) and COVID-19-related
constraints (including a five-day mining shutdown in the first
quarter of 2020 and working with a reduced workforce through the
second quarter of 2020).
For the first nine months of 2020, Masbate's cash operating
costs were $646 per ounce produced
($684 per gold ounce sold), well
below budget by $60 per ounce (8%).
Compared to the first nine months of 2019, cash operating costs
were higher by $82 per ounce produced
(15%) due to lower production (as planned, mainly due to lower head
grade). Masbate's AISC for the first nine months of 2019 were
$1,012 per ounce sold (first nine
months of 2019 - $773 per ounce
sold), below budget by $34 per ounce
(3%).
Capital expenditures for the third quarter of 2020 totaled
$10 million, including $5 million for mobile equipment purchases and
rebuilds, $2 million for
pre-stripping and $1 million for
tailings storage facility projects. Capital expenditures in the
first nine months of 2020 totaled $19
million, including mobile equipment acquisition costs and
rebuilds of $8 million, processing
equipment replacement costs of $3
million, pre-stripping costs of $3
million and $2 million for
tailings storage facility projects.
For full-year 2020, the Masbate Mine is expected to produce
between 200,000 and 210,000 ounces of gold, from the Main Vein and
Montana Pits. Masbate's cash operating costs are expected to be at
or below the low end of its guidance range of between $665 and $705 per
ounce and AISC are expected to be within its guidance range of
between $965 and $1,005 per ounce.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia
also had a solid third quarter of 2020, producing 42,591 ounces of
gold, 2% (985 ounces) above budget, as processed tonnes and
recoveries were both slightly better than budget. Compared to the
third quarter of 2019, gold production, as planned, was lower by
14% (6,820 ounces), due to fewer high-grade ore tonnes being mined
from the Wolfshag Phase 2 Pit (when compared to the third quarter
of 2019). Ore production from the Wolfshag Phase 2 Pit had resumed
in the second half of 2019 following pre-stripping. The Otjikoto
Mine continued its remarkable safety performance, extending the
number of days without an LTI to 918 days as at September 30, 2020.
For the third quarter of 2020, mill feed grade was 1.53 g/t
compared to budget of 1.54 g/t and 1.84 g/t in the third quarter of
2019; mill throughput was 0.88 million tonnes compared to budget of
0.86 million tonnes and 0.84 million tonnes in the third quarter of
2019; and gold recovery averaged 98.2% compared to budget of 98.0%
and 98.8% in the third quarter of 2019.
For the third quarter of 2020, Otjikoto's cash operating costs
were $435 per ounce produced
($423 per ounce sold), well-below
budget by $66 per ounce (13%). This
resulted mainly from higher gold production, lower fuel prices and
a weaker than budgeted Namibian dollar. Compared to the third
quarter of 2019, Otjikoto's cash operating costs were higher by
$41 per ounce (10%), as a result of
lower production (as planned) when compared to the third quarter of
2019. Otjikoto's AISC for the third quarter of 2020 were
$917 per ounce sold (Q3 2019 -
$743 per ounce sold), significantly
below budget by $174 per ounce (16%).
AISC were lower than budget as a result of lower-than-budgeted cash
operating costs, higher-than-budgeted gold ounces sold and
lower-than-budgeted sustaining capital expenditures. Sustaining
capital expenditures for the third quarter of 2020 were below
budget by $3 million (and for the
first nine months of 2020 were below budget by $13 million). For the full-year 2020, the Company
expects permanent sustaining capital expenditure savings of
$10 million mainly relating to
pre-stripping. All other budgeted capital expenditures are expected
to be incurred by the end of the year.
For the first nine months of 2020, the Otjikoto Mine produced
127,836 ounces of gold, above budget by 3% (3,690 ounces) and 7%
(8,292 ounces) higher than the first nine months of 2019.
For the first nine months of 2020, Otjikoto's cash operating
costs were $432 per ounce produced
($419 per ounce sold), well below
both budget by $65 per ounce (13%)
and the first nine months of 2019 by $69 per ounce (14%). Otjikoto's AISC were
$841 per ounce sold, significantly
below budget by $179 per ounce (18%)
and well below the first nine months of 2019 by $54 per ounce (6%).
Capital expenditures in the third quarter of 2020 totaled
$19 million, primarily consisting of
$13 million for pre-stripping in the
Otjikoto Phases 3 and 4 and Wolfshag Phase 3 pits, $3 million for mobile equipment rebuilds and
replacements and $2 million for
Wolfshag underground development. For the first nine months of 2020
capital expenditures totaled $42
million, primarily consisting of $31
million for pre-stripping, $6
million for mobile equipment rebuilds and replacements and
$3 million for Wolfshag underground
development.
Development of the Wolfshag underground mine (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) continues to progress on
schedule. Engineering of the underground mine continued and an
underground mining contractor was appointed for the development of
the underground workings up to the production stopes. In the third
quarter of 2020, the mining contractor was mobilized, and
development of the portal and primary underground ramp has now
commenced. Stope ore production is expected to commence in early
2022, in-line with original estimates.
Exploration at Otjikoto continues to focus on drilling down
plunge on the Wolfshag and Otjikoto deposits which remain open at
depth as well as testing stratigraphy east of Wolfshag for new
mineralized horizons.
For full-year 2020, the Otjikoto Mine is forecast to produce
between 165,000 and 175,000 ounces of gold, from the Otjikoto and
Wolfshag Pits. Otjikoto's cash operating costs are expected to be
at or below the low end of its guidance range of between
$480 and $520 per ounce and AISC are also expected to be
at or below the low end of its guidance range of between
$1,010 and $1,050 per ounce.
Development
Gramalote Project (B2Gold – 50%/AngloGold Ashanti Limited – 50%)
- Colombia
Feasibility work at the Gramalote Project continued as planned
from the recommencement of drilling on May
11, 2020, with infill resource drilling completed on
August 21, 2020. During the third
quarter of 2020, work continued to advance for infrastructure
design, process plant design, pit design and social initiatives.
Resource modelling is anticipated to be completed in November 2020 at which time the final phase of
the Gramalote Feasibility Study work will proceed based upon
updated resources. The Gramalote Feasibility Study is expected to
be completed in the first quarter of 2021.
Through the third quarter of 2020, COVID-19 management on-site
was successful in allowing the project to continue with
advancements in drilling and social initiatives including ongoing
work with resettlement and small miner initiatives. COVID-19
control work included pretests, operational protocols, aggressive
contact tracing and close work with local health authorities. While
COVID-19 caseloads remain relatively high in Colombia, in Antioquia commercial activity and
personal movement have substantially normalized.
Based on the positive results from Gramalote's Updated
Preliminary Economic Assessment (released on January 21, 2020), B2Gold believes that the
Gramalote Project has the potential to become a large, low-cost
open-pit gold mine, subject to the results of a final feasibility
study (expected to be completed in the first quarter of 2021).
Summary and Outlook
Based on the Company's strong performance to date and current
assumptions for the last quarter of 2020, B2Gold remains well
positioned for continued strong operational and financial
performance. In the third quarter of 2020, the Company reached
several milestones including fully repaying the outstanding RCF
balance of $425 million and the
completion of the Fekola mill expansion. Based on the addition of a
larger mining fleet, the optimization of the mining sequence and
the Fekola mill expansion, the Company is on schedule to realize a
significant increase in gold production from the Fekola Mine in
2020 with production expected to be at the upper end of Fekola's
guidance range of 590,000 to 620,000 ounces of gold. The Fekola
mill expansion along with the larger mining fleet will
significantly increase mill throughput, yielding projected annual
production averaging approximately 550,000 ounces of gold over 2020
to 2024 based on current assumptions.
For full-year 2020, the Company forecasts total consolidated
gold production (including attributable ounces from Calibre) to
come in towards the midpoint of its production guidance range of
between 1,000,000 and 1,055,000 ounces; consolidated cash
costs are expected to remain low in 2020, and the Company expects
to be at or below the low end of its guidance range for total
consolidated cash operating costs of between $415 and $455 per
ounce and at the lower end of its guidance range for total
consolidated AISC of between $780 and
$820 per ounce.
Due to the Company's strong net positive cash position, strong
operating results and the current higher gold price environment,
the quarterly dividend rate was increased in the third quarter of
2020 by 100% to $0.04 per common
share (or an annual rate of $0.16 per
common share), which was reflected in the third quarter dividend
paid on September 30, 2020.
Despite some of the challenges that the current COVID-19
pandemic has created in each of the locations where the Company
operates or is head-quartered, the Company continues to operate
virtually unimpeded. The Company is very of proud of its employees'
dedication and resilience in these challenging times and believes
it is in part due to the executive team's and mine employees' years
of experience in all aspects of international mining, and B2Gold's
culture of fairness, respect and transparency. That resilience is
reflected in the Company's results from the first nine months of
2020.
In conjunction with this success, we are also very mindful of
the communities where we operate and continue to assist local and
national governments in their efforts to respond to the COVID-19
crisis. The Company has donated a total of $3 million of COVID-19 relief to assist the
communities in which it operates, including contributions in
Mali, Namibia, the
Philippines, Burkina Faso,
Colombia and Canada. B2Gold would like to thank all levels
of government in the countries for working with the Company in
mutually trusting relationships during these challenging times.
In addition, to managing its operations through these current
challenging times, B2Gold will also look forward through the
balance of 2020 and beyond and remain committed to continuing to
execute on its strategic objectives. The Company's ongoing strategy
is to continue to maximize profitable production from its mines,
further advance its pipeline of development and other exploration
projects, evaluate opportunities and continue to pay a dividend.
The Company continues to focus a significant portion of its overall
exploration activities to drilling at the Cardinal and Anaconda
area deposits in Mali. In
conjunction with this and based on drill results to date, the
Company is currently undertaking a high-level engineering review to
provide preliminary indications as to how future production from
both Cardinal and the Anaconda area could be factored into the
overall Fekola production schedule. In connection with advancing
its pipeline of development projects, the Company expects to have a
feasibility study for the Gramalote Project completed by the end of
the first quarter of 2021. The Company is evaluating the best
course of action to advance the Kiaka Project, due to improved
economics resulting from lower fuel prices, alternative power
options and a higher gold price. The Company is currently updating
its model and is considering its options to advance the
project.
In addition to exploration activities at its operating mine and
development project sites, the Company is also pursuing other
greenfield exploration opportunities globally. For 2020, the
Company has a total greenfield exploration budget of $18 million and it expects that there will be a
similar level of greenfield exploration funding approved for
2021.
Qualified Persons
Bill Lytle, Senior Vice President
of Operations, a qualified person under National
Instrument 43-101, has approved the scientific and technical
information contained in this news release.
Third Quarter and First Nine Months of 2020 Financial Results
- Conference Call Details
B2Gold will release its third quarter and first nine months of
2020 financial results after the North American markets close on
Tuesday, November 3, 2020.
B2Gold executives will host a conference call to discuss the
results on Wednesday, November 4,
2020, 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/1493/38218. 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 5691847).
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
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Katie Bromley
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Vice President,
Investor Relations
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Manager,
Investor Relations & Public Relations
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604-681-8371
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604-681-8371
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imaclean@b2gold.com
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kbromley@b2gold.com
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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 20, 2020 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 more than $900 million in 2020; remaining well positioned
for continued strong operational and financial performance for the
remainder of 2020; projected gold production, cash operating costs
and AISC on a consolidated and mine by mine basis in 2020,
including total consolidated gold production of between 1,000,000
and 1,055,000 ounces in 2020 with cash operating costs of between
$415 and $455 per ounce and AISC of between $780 and $820 per
ounce; the Fekola Mine producing an average of 550,000 ounces of
gold per year between 2020 and 2024; 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 first
quarter of 2021; 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 Gramalote Feasibility Study by the first quarter
of 2021 and the results therein; 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 Note to United States
Investors
The disclosure in this news release was
prepared in accordance with Canadian National Instrument 43-101
("NI 43-101"), which differs significantly from the current
requirements of the SEC set out in Industry Guide 7. Accordingly,
such disclosure may not be comparable to similar information made
public by companies that report in accordance with Industry Guide
7. In particular, this news release may refer to "mineral
resources," "indicated mineral resources" or "inferred mineral
resources". While these categories of mineralization are recognized
and required by Canadian securities laws, they are not recognized
by Industry Guide 7 and have not historically been permitted to be
disclosed in SEC filings by U.S. companies subject to Industry
Guide 7. U.S. investors are cautioned not to assume that any part
of a "mineral resource," "indicated mineral resource" or "inferred
mineral resource" will ever be converted into a "reserve." In
addition, this news release uses the terms "reserves" and "mineral
reserves" which are reported by the Company under Canadian
standards and may not qualify as reserves under Industry Guide 7.
Under Industry Guide 7, mineralization may not be classified as a
"reserve" unless the mineralization can be economically and legally
extracted or produced at the time the "reserve" determination is
made. Accordingly, information contained or referenced in this news
release containing descriptions of the Company's mineral deposits
may not be compatible to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of
Industry Guide 7. "Inferred mineral resources" have a great amount
of uncertainty as to their existence and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Disclosure of "contained ounces" in a
resource is permitted disclosure under Canadian reporting
standards; however, Industry Guide 7 normally only permits issuers
to report mineralization that does not constitute "reserves" by
Industry Guide 7 standards as in-place tonnage and grade without
reference to unit measures. Further, while NI 43-101 permits
companies to disclose economic projections contained in preliminary
economic assessments and pre-feasibility studies, which are not
based on "reserves", U.S. companies subject to Industry Guide 7
have not generally been permitted to disclose economic projections
for a mineral property in their SEC filings prior to the
establishment of "reserves." 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 AND NINE MONTHS
ENDED SEPTEMBER 30
(Expressed
in thousands of United States
dollars, except per share amounts)
(Unaudited)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended
Sept. 30, 2020
|
|
For the
three
months ended
Sept. 30, 2019
|
|
|
For the
nine
months ended
Sept. 30, 2020
|
|
|
For the
nine
months ended
Sept. 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
revenue
|
|
$
|
487,166
|
|
$
|
310,783
|
|
|
$
|
1,309,403
|
|
|
$
|
841,978
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Production costs
|
|
(104,892)
|
|
(90,526)
|
|
|
(293,435)
|
|
|
(278,676)
|
Depreciation and depletion
|
|
(77,090)
|
|
(65,977)
|
|
|
(223,284)
|
|
|
(183,589)
|
Royalties and production taxes
|
|
(33,545)
|
|
(22,034)
|
|
|
(90,510)
|
|
|
(57,540)
|
Total cost of
sales
|
|
(215,527)
|
|
(178,537)
|
|
|
(607,229)
|
|
|
(519,805)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
271,639
|
|
132,246
|
|
|
702,174
|
|
|
322,173
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
(8,770)
|
|
(10,551)
|
|
|
(27,020)
|
|
|
(36,999)
|
Share-based
payments
|
|
(4,313)
|
|
(3,414)
|
|
|
(15,400)
|
|
|
(13,450)
|
Reversal of
impairment of long-lived assets
|
|
174,309
|
|
—
|
|
|
174,309
|
|
|
—
|
Write-down of mineral
property interests
|
|
(11,451)
|
|
(972)
|
|
|
(11,451)
|
|
|
(2,324)
|
Community
relations
|
|
(690)
|
|
(1,277)
|
|
|
(4,916)
|
|
|
(2,420)
|
Foreign exchange
(losses) gains
|
|
(3,669)
|
|
2,274
|
|
|
(8,002)
|
|
|
3,524
|
Share of income of
associate
|
|
10,877
|
|
—
|
|
|
13,512
|
|
|
—
|
Other
|
|
(1,000)
|
|
(2,680)
|
|
|
(5,428)
|
|
|
(2,163)
|
Operating
income
|
|
426,932
|
|
115,626
|
|
|
817,778
|
|
|
268,341
|
|
|
|
|
|
|
|
|
|
Interest and
financing expense
|
|
(3,389)
|
|
(7,123)
|
|
|
(12,957)
|
|
|
(21,640)
|
Losses on derivative
instruments
|
|
(721)
|
|
(4,156)
|
|
|
(12,133)
|
|
|
(824)
|
Other
|
|
1,058
|
|
(61)
|
|
|
1,987
|
|
|
(564)
|
Income from
continuing operations before taxes
|
|
423,880
|
|
104,286
|
|
|
794,675
|
|
|
245,313
|
|
|
|
|
|
|
|
|
|
Current income tax,
withholding and other taxes
|
|
(84,552)
|
|
(34,681)
|
|
|
(230,251)
|
|
|
(84,373)
|
Deferred income tax
expense
|
|
(62,289)
|
|
(19,684)
|
|
|
(66,416)
|
|
|
(30,783)
|
Net income from
continuing operations
|
|
277,039
|
|
49,921
|
|
|
498,008
|
|
|
130,157
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations attributable to shareholders of the
Company
|
|
—
|
|
15,662
|
|
|
—
|
|
|
3,271
|
Net income for the
period
|
|
$
|
277,039
|
|
$
|
65,583
|
|
|
$
|
498,008
|
|
|
$
|
133,428
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Shareholders of the Company
|
|
$
|
262,868
|
|
$
|
55,769
|
|
|
$
|
459,601
|
|
|
$
|
115,968
|
Non-controlling interests
|
|
14,171
|
|
9,814
|
|
|
38,407
|
|
|
17,460
|
Net income for the
period
|
|
$
|
277,039
|
|
$
|
65,583
|
|
|
$
|
498,008
|
|
|
$
|
133,428
|
|
|
|
|
|
|
|
|
|
Earnings per share
from continuing operations
(attributable to
shareholders of the Company)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.25
|
|
$
|
0.04
|
|
|
$
|
0.44
|
|
|
$
|
0.11
|
Diluted
|
|
$
|
0.25
|
|
$
|
0.04
|
|
|
$
|
0.44
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
Earnings per
share
(attributable to
shareholders of the Company)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.25
|
|
$
|
0.05
|
|
|
$
|
0.44
|
|
|
$
|
0.11
|
Diluted
|
|
$
|
0.25
|
|
$
|
0.05
|
|
|
$
|
0.44
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
(in
thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
1,046,973
|
|
1,019,307
|
|
|
1,040,911
|
|
|
1,009,753
|
Diluted
|
|
1,063,818
|
|
1,031,301
|
|
|
1,055,609
|
|
|
1,018,606
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR THE THREE AND NINE MONTHS
ENDED SEPTEMBER 30
(Expressed
in thousands of United States
dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three
months ended
Sept. 30, 2020
|
|
|
For the
three
months ended
Sept. 30, 2019
|
|
|
|
For the
nine
months ended
Sept. 30, 2020
|
|
|
For the
nine
months ended
Sept. 30, 2019
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income from continuing operations for the period
|
|
$
|
277,039
|
|
|
$
|
49,921
|
|
|
$
|
498,008
|
|
|
$
|
130,157
|
Mine
restoration provisions settled
|
|
—
|
|
|
—
|
|
|
(208)
|
|
|
(124)
|
Non-cash
charges, net
|
|
(28,988)
|
|
|
101,229
|
|
|
150,432
|
|
|
220,519
|
Changes
in non-cash working capital
|
|
52,575
|
|
|
(14,033)
|
|
|
112,876
|
|
|
(44,772)
|
Changes
in long-term value added tax receivables
|
|
136
|
|
|
408
|
|
|
(6,044)
|
|
|
325
|
Cash provided by operating
activities of continuing operations
|
|
300,762
|
|
|
137,525
|
|
|
755,064
|
|
|
306,105
|
Cash provided by operating
activities of discontinued operations
|
|
—
|
|
|
30,309
|
|
|
—
|
|
|
40,963
|
Cash
provided by operating activities
|
|
300,762
|
|
|
167,834
|
|
|
755,064
|
|
|
347,068
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Revolving credit facility, drawdowns net of transaction
costs
|
|
—
|
|
|
—
|
|
|
250,000
|
|
|
(5,574)
|
Repayment of revolving credit facility
|
|
(425,000)
|
|
|
(75,000)
|
|
|
(450,000)
|
|
|
(100,000)
|
Equipment loan facilities, drawdowns net of transaction
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,463
|
Repayment of equipment loan facilities
|
|
(5,266)
|
|
|
(5,854)
|
|
|
(20,999)
|
|
|
(18,233)
|
Interest
and commitment fees paid
|
|
(2,934)
|
|
|
(5,897)
|
|
|
(10,838)
|
|
|
(18,166)
|
Common
shares issued for cash on exercise of stock options
|
|
15,670
|
|
|
35,443
|
|
|
43,135
|
|
|
63,613
|
Dividends paid
|
|
(62,852)
|
|
|
—
|
|
|
(73,220)
|
|
|
—
|
Principal payments on lease arrangements
|
|
(1,265)
|
|
|
(803)
|
|
|
(2,910)
|
|
|
(2,304)
|
Restricted cash movement
|
|
(9,744)
|
|
|
(270)
|
|
|
(7,466)
|
|
|
(1,524)
|
Cash
used by financing activities of continuing
operations
|
|
(491,391)
|
|
|
(52,381)
|
|
|
(272,298)
|
|
|
(78,725)
|
Cash
used by financing activities of discontinued
operations
|
|
—
|
|
|
(42)
|
|
|
—
|
|
|
(324)
|
Cash
used by financing activities
|
|
(491,391)
|
|
|
(52,423)
|
|
|
(272,298)
|
|
|
(79,049)
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Expenditures on mining interests:
|
|
|
|
|
|
|
|
|
Fekola Mine
|
|
(29,186)
|
|
|
(30,604)
|
|
|
(155,659)
|
|
|
(64,717)
|
Masbate Mine
|
|
(10,132)
|
|
|
(4,725)
|
|
|
(19,422)
|
|
|
(20,689)
|
Otjikoto Mine
|
|
(19,044)
|
|
|
(9,949)
|
|
|
(41,696)
|
|
|
(34,452)
|
Gramalote Project
|
|
(2,450)
|
|
|
(1,245)
|
|
|
(15,574)
|
|
|
(3,047)
|
Other exploration and development
|
|
(11,274)
|
|
|
(11,022)
|
|
|
(32,521)
|
|
|
(30,206)
|
Non-refundable deposit received on Toega Property
|
|
—
|
|
|
—
|
|
|
9,000
|
|
|
—
|
Other
|
|
(1,640)
|
|
|
(21)
|
|
|
(548)
|
|
|
381
|
Cash
used by investing activities of continuing
operations
|
|
(73,726)
|
|
|
(57,566)
|
|
|
(256,420)
|
|
|
(152,730)
|
Cash
used by investing activities of discontinued
operations
|
|
—
|
|
|
(15,599)
|
|
|
—
|
|
|
(52,290)
|
Cash
used by investing activities
|
|
(73,726)
|
|
|
(73,165)
|
|
|
(256,420)
|
|
|
(205,020)
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
|
(264,355)
|
|
|
42,246
|
|
|
226,346
|
|
|
62,999
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
2,146
|
|
|
(848)
|
|
|
(1,482)
|
|
|
(587)
|
Cash and cash
equivalents, beginning of period
|
|
627,669
|
|
|
123,766
|
|
|
140,596
|
|
|
102,752
|
Less cash
associated with discontinued operations, end of
period
|
|
—
|
|
|
(18,751)
|
|
|
—
|
|
|
(18,751)
|
Cash and cash
equivalents, end of period
|
|
$
|
365,460
|
|
|
$
|
146,413
|
|
|
$
|
365,460
|
|
|
$
|
146,413
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE
SHEETS
(Expressed in thousands of United States dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
As at September
30,
2020
|
|
|
As at December
31,
2019
|
Assets
|
|
|
|
|
Current
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
365,460
|
|
|
$
|
140,596
|
Accounts
receivable, prepaids and other
|
|
33,929
|
|
|
37,890
|
Value-added and other tax receivables
|
|
9,251
|
|
|
11,070
|
Inventories
|
|
242,202
|
|
|
217,923
|
Assets
classified as held for sale
|
|
11,855
|
|
|
22,021
|
|
|
662,697
|
|
|
429,500
|
|
|
|
|
|
Value-added tax
receivables
|
|
30,054
|
|
|
25,153
|
Mining
interests
|
|
|
|
|
Owned by
subsidiaries and joint operations
|
|
2,340,407
|
|
|
2,046,731
|
Investments in joint ventures and associates
|
|
67,536
|
|
|
130,736
|
Other
assets
|
|
66,904
|
|
|
49,615
|
Deferred income
taxes
|
|
14,836
|
|
|
1,336
|
|
|
$
|
3,182,434
|
|
|
$
|
2,683,071
|
Liabilities
|
|
|
|
|
Current
|
|
|
|
|
Accounts
payable and accrued liabilities
|
|
$
|
80,478
|
|
|
$
|
83,370
|
Current
income and other taxes payable
|
|
184,231
|
|
|
53,396
|
Current
portion of long-term debt
|
|
23,091
|
|
|
26,030
|
Current
portion of derivative instruments at fair value
|
|
5,393
|
|
|
1,909
|
Other
current liabilities
|
|
1,275
|
|
|
357
|
|
|
294,468
|
|
|
165,062
|
|
|
|
|
|
Long-term
debt
|
|
25,841
|
|
|
235,821
|
Mine restoration
provisions
|
|
88,479
|
|
|
75,419
|
Deferred income
taxes
|
|
225,506
|
|
|
145,590
|
Employee benefits
obligation
|
|
5,383
|
|
|
4,736
|
Other long-term
liabilities
|
|
9,486
|
|
|
4,791
|
|
|
649,163
|
|
|
631,419
|
Equity
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share
capital
|
|
|
|
|
Issued: 1,049,967,824 common shares (Dec 31,
2019 – 1,030,399,987)
|
|
2,403,487
|
|
|
2,339,874
|
Contributed surplus
|
|
46,633
|
|
|
56,685
|
Accumulated other comprehensive loss
|
|
(141,671)
|
|
|
(145,071)
|
Retained
earnings (deficit)
|
|
127,340
|
|
|
(261,245)
|
|
|
2,435,789
|
|
|
1,990,243
|
Non-controlling
interests
|
|
97,482
|
|
|
61,409
|
|
|
2,533,271
|
|
|
2,051,652
|
|
|
$
|
3,182,434
|
|
|
$
|
2,683,071
|
View original
content:http://www.prnewswire.com/news-releases/b2gold-reports-strong-q3-2020-results-quarterly-and-year-to-date-records-for-gold-revenues-and-operating-cash-flows-cash-operating-costs-and-aisc-lower-than-budget-301166086.html
SOURCE B2Gold Corp.