VANCOUVER, May 7, 2019
/CNW/ - B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
("B2Gold" or the "Company") is pleased to announce its operational
and financial results for the first quarter of 2019. The Company
previously released its gold production and gold revenue for the
first quarter of 2019 (see news release dated 04/17/19). All
dollar figures are in United
States dollars unless otherwise indicated.
2019 First Quarter Highlights
- Consolidated gold production of 230,859 ounces, 6% (12,704
ounces) above budget
- Consolidated gold revenue of $302
million on sales of 232,076 ounces (6% or 13,564 ounces
above budget)
- Consolidated cash operating costs (see "Non-IFRS
Measures") of $545 per ounce
sold, below budget by $27 per ounce
(5%)
- Consolidated all-in sustaining costs ("AISC") (see "Non-IFRS
Measures") of $848 per ounce
sold, significantly below budget by $133 per ounce (14%)
- Consolidated cash flows from operating activities of
$86 million ($0.09 per share); for full-year 2019, if a gold
price assumption of $1,300 per ounce
is used, the Company expects to generate cash flows from operations
of approximately $400 million for the
year
- Strong cash position of $142
million at quarter-end
- On March 26, 2019, the Company
announced very positive results from the Expansion Study
Preliminary Economic Assessment ("PEA") for the Fekola Mine,
including significant estimated increases in average annual gold
production to over 550,000 ounces per year during the five-year
period 2020-2024, and is proceeding with an expansion project to
increase Fekola's processing throughput by 1.5 million tonnes per
annum ("Mtpa") to 7.5 Mtpa from the current base rate of 6 Mtpa;
the Company will issue an updated Fekola Expansion Technical Report
pursuant to the requirements of NI 43-101 by May 10, 2019
- In May 2019, the Company received
commitments from its existing syndicate of banks plus one new
lender, to upsize the revolving credit facility ("RCF") capacity
from $500 million to $600 million and to increase the accordion
feature from $100 million to
$200 million; the upsized RCF is
expected to close by mid-May
2019
- For full-year 2019, B2Gold remains well positioned for
continued strong operational and financial performance with
consolidated gold production forecast to be in the range of between
935,000 and 975,000 ounces with cash operating costs forecast to be
between $520 and $560 per ounce sold and AISC forecast to be
between $835 and $875 per ounce sold
2019 First Quarter Operational Results
Consolidated gold production in the first quarter of 2019 was
230,859 ounces, 6% (12,704 ounces) above budget. Gold production
from the Company's Fekola, Masbate, Otjikoto and El Limon mines all
exceeded their targeted production. The Fekola Mine in Mali and the Masbate Mine in the Philippines continued their very strong
operational performances, with both well-above their budgeted
production for the quarter. For the first quarter of 2019, the
Fekola Mine produced 110,349 ounces of gold, well-above budget by
6% (6,724 ounces), and the Masbate Mine produced 57,481 ounces of
gold, significantly above budget by 15% (7,490 ounces). Compared to
the prior-year quarter, gold production was marginally lower by
8,825 ounces.
Consolidated cash operating costs in the quarter were
$545 per ounce sold, below budget by
$27 per ounce (5%). The favourable
budget variance (on a per ounce of gold sold basis) was mainly
attributable to Masbate's above-budget gold production and
significantly lower-than-budgeted mining costs (see "Operations"
section below). Also contributing to the favourable budget variance
were Otjikoto's sales of lower cost gold ounces from its opening
inventory and higher ore tonnage than budgeted from its Otjikoto
and Wolfshag pits. Compared to the prior-year quarter, consolidated
cash operating costs (on a per ounce of gold sold basis) were
$74 per ounce higher (16%), primarily
due to the lower grade stockpile material processed during the
first quarter of 2019 at Fekola (as a result of Fekola's
significantly higher-than-budgeted mill throughput) as well as to
lower gold sales (the comparative quarter benefitted from
additional sales of 20,153 lower cost ounces generated from the net
drawdown of opening January 1, 2018
gold inventories, built-up in late 2017 in part as a result of
Fekola ramping up to full steady state production).
Consolidated AISC in the first quarter were $848 per ounce sold (Q1 2018 – $719 per ounce sold), significantly below budget
by $133 per ounce (14%), reflecting
the lower per ounce cash operating costs noted above and lower than
planned capital expenditures which were $24
million lower than budget (this reflects mainly timing
differences as the majority of the capital underspend is expected
to be incurred later in 2019).
Given the gold production outperformance in the first quarter of
2019, B2Gold remains well positioned for continued strong
operational and financial performance with consolidated gold
production for full-year 2019 forecast to be in the range of
between 935,000 and 975,000 ounces. For the first-half of 2019,
consolidated gold production is forecast to be between 436,000 and
456,000 ounces of gold before significantly increasing to between
499,000 and 519,000 ounces in the second-half of 2019. Consolidated
cash costs are projected to remain low in 2019 with cash operating
costs forecast to be between $520 and
$560 per ounce sold and AISC forecast
to be between $835 and $875 per ounce sold. As previously released,
consolidated gold production for full-year 2019 is expected to be
weighted towards the second-half of 2019, due to the planned
development of open pits in the first-half of the year and
subsequent ore production from those pits in the
second-half.
2019 First Quarter Financial Results
Consolidated gold revenue in the first quarter of 2019 was
$302 million on sales of 232,076
ounces at an average price of $1,300
per ounce compared to $344 million on
sales of 259,837 ounces at an average price of $1,325 per ounce in the first quarter of 2018.
Gold sales of 232,076 ounces in the first quarter of 2019 were 6%
(13,564 ounces) above budget. Compared to the prior-year quarter,
the decrease in revenue related mainly to the timing of gold
shipments (as the prior-year quarter benefitted from additional
sales of 20,153 ounces generated from the net drawdown of opening
January 1, 2018 gold inventories,
built-up in late 2017 in part as a result of Fekola ramping up to
full steady state production).
Cash flow provided by operating activities was $86 million ($0.09
per share) in the first quarter of 2019 compared to $147 million ($0.15
per share) in the first quarter of 2018. The decrease mainly
reflects lower gold revenue as the comparative quarter benefitted
from the sale of its opening gold inventories. For full-year 2019,
if a gold price assumption of $1,300
per ounce is used, the Company expects to generate cash flows from
operations of approximately $400
million for the year.
For the first quarter of 2019, the Company generated net income
of $27 million ($0.02 per share) compared to net income of
$57 million ($0.06 per share) in the first quarter of 2018.
Adjusted net income (see "Non-IFRS Measures") for the first
quarter of 2019 was $38 million
($0.04 per share) compared to
adjusted net income of $57 million
($0.06 per share) in the first
quarter of 2018.
Liquidity and Capital Resources
At March 31, 2019, the Company had
cash and cash equivalents of $142
million compared to cash and cash equivalents of
$103 million at December 31, 2018. Working capital at
March 31, 2019 was $206 million compared to $156 million at December
31, 2018.
At March 31, 2019, the Company had
drawn $400 million under the
$500 million RCF, leaving an undrawn
and available balance under the existing facility of $100 million. In May
2019, the Company received commitments from its existing
syndicate of banks plus one new lender, to upsize its RCF capacity
from $500 million to $600 million and to increase the accordion
feature from $100 million to
$200 million. In addition, as a
reflection of B2Gold's financial strength, the upsized RCF is
expected to include increased flexibility for permitted borrowings
and equipment financings, coupled with less onerous financial
covenants and lower pricing. The upsized RCF is expected to close
by mid-May 2019 and will be for a
term of four years to mid-2023. Final closing of the facility
and the availability of funds under it remains subject to
completion of customary closing conditions. The upsized RCF,
coupled with strong operating cash flows from the Company's
existing mine operations, is expected to provide the Company with
continued financial flexibility to advance existing assets and
pursue exploration opportunities.
The Company's current strategy is to continue to reduce debt,
expand the Fekola Mine throughput and annual production, further
advance its pipeline of development and exploration projects and
evaluate exploration opportunities.
Operations
Mine-by-mine gold production and gold sales in the first quarter
2019 were as follows (presented on a 100% basis):
Mine
|
Q1
2019 Gold
Production (ounces)
|
Q1
2019 Gold
Sold (ounces)
|
2019 Annual
Guidance Gold
Production (ounces)
|
Fekola
|
110,349
|
115,800
|
420,000 -
430,000
|
Masbate
|
57,481
|
50,400
|
200,000 -
210,000
|
Otjikoto
|
32,712
|
37,200
|
165,000 -
175,000
|
La
Libertad
|
18,086
|
17,272
|
95,000 -
100,000
|
El Limon
|
12,231
|
11,404
|
55,000 -
60,000
|
|
|
|
|
B2Gold
Consolidated
|
230,859
|
232,076
|
935,000 -
975,000
|
Mine-by-mine cash operating costs and AISC per ounce (on a per
ounce of gold sold basis) in the first quarter of 2019 were as
follows (based on the total production at the mines B2Gold
operates):
Mine
|
Q1
2019 Cash Operating
Costs ($ per ounce
sold)
|
2019 Annual
Guidance Cash Operating
Costs ($ per ounce
sold)
|
Q1
2019 AISC ($
per ounce sold)
|
2019 Annual
Guidance AISC ($
per ounce sold)
|
Fekola
|
$397
|
$370 -
$410
|
$614
|
$625 -
$665
|
Masbate
|
$546
|
$625 -
$665
|
$743
|
$860 -
$900
|
Otjikoto
|
$519
|
$520 -
$560
|
$829
|
$905 -
$945
|
La
Libertad
|
$1,295
|
$840 -
$880
|
$1,647
|
$1,150 -
$1,190
|
El Limon
|
$991
|
$720 -
$760
|
$1,524
|
$1,005 -
$1,045
|
|
|
|
|
|
B2Gold
Consolidated
|
$545
|
$520 -
$560
|
$848
|
$835 -
$875
|
Fekola Gold Mine – Mali
The Fekola Mine in Mali had a
very strong start to the year with first quarter gold production of
110,349 ounces, well-above budget by 6% (6,724 ounces), as the
processing facilities continued to outperform. Throughout the
quarter, the operation continued to demonstrate sustained high
processing throughput without reduced recoveries.
For the first quarter of 2019, mill throughput was 1.73 million
tonnes, exceeding budget by 25% and the prior-year quarter by 31%.
Overall mill throughput increased during the quarter from past
quarters due to a combination of factors. Metallurgy was favourable
and excellent recoveries were achieved with a grind coarser than
planned (approximately 12% of the feed came from weathered
saprolite ore which requires little grinding), low-grade ore feed
during the quarter (coming mostly from upper elevations in the pit)
appears to have been softer than anticipated, and overall feed size
to the plant was finer than budgeted. In addition, fine-tuning
of the plant circuit by the operators also played a role in the
positive plant performance. Given the plant's ability to process
significantly higher-than-budgeted throughput during this period,
the Company took the decision to add lower grade material from the
stockpiles to the plant feed. This resulted in higher gold
production at a lower average grade, and, as expected, in
marginally higher per ounce cash operating costs for the quarter.
The average grade processed was 2.11 grams per tonne ("g/t")
(compared to budget of 2.48 g/t). Gold grades from the mine
continue to reconcile closely to the block model. Gold recoveries
in the quarter averaged 94.1% (compared to budget of 94.0% and
94.8% in the first quarter of 2018).
Fekola's first quarter cash operating costs were $397 per ounce sold, marginally above budget (by
$28 per ounce or 8%) and higher than
the prior-year quarter of $270 per
ounce sold (by $127 per ounce or
47%). The increase over budget and the comparative quarter was
mainly due to the lower grade stockpile material being processed
during the quarter (as discussed above). Fekola's AISC for the
first quarter were $614 per ounce
sold (Q1 2018 – $474 per ounce sold),
slightly below budget (by $31 per
ounce).
Capital expenditures in the first quarter of 2019 totaled
$21 million, mainly consisting of
$7 million for mobile equipment
purchases and rebuilds, $5 million
for pre-stripping and $5 million for
Fadougou Village relocation costs.
For full-year 2019, the Fekola Mine is expected to produce
between 420,000 and 430,000 ounces of gold at cash operating costs
of between $370 and $410 per ounce sold and AISC of between
$625 and $665 per ounce sold. Gold production is
scheduled to be weighted towards the second-half of the year (as
new high-grade ore production from Phase 4 of the Fekola Pit is
scheduled to begin in the second-half of 2019). For the first-half
of 2019, the Fekola Mine is forecast to produce between 205,000 and
210,000 ounces of gold before increasing to between 215,000 and
220,000 ounces in the second-half of 2019.
On March 26, 2019, the Company
announced very positive results from the Expansion Study PEA for
the Fekola Mine. As a result, the Company is proceeding with an
expansion project to increase processing throughput by 1.5 Mtpa to
7.5 Mtpa from the current base rate of 6 Mtpa. The PEA took into
account the significant increase in the Fekola Mineral Resource
announced on October 25, 2018. Based
on the PEA, once this expansion is complete, the Fekola Mine is
expected to produce more gold over a longer life, with more robust
economics and higher average annual gold production, revenues and
cash flows than the previous life-of-mine ("LoM"). Project economic
highlights from the PEA include: estimated optimized LoM extended
into 2030, including significant estimated increases in average
annual gold production to over 550,000 ounces per year during the
five-year period 2020-2024 and over 400,000 ounces per year over
the LoM (2019-2030), projected gold production of approximately
5,000,000 ounces over the new mine life of 12 years of mining and
processing (including 2019), an increase in project pre-tax net
present value of approximately $500
million versus the comparable amounts in the Company's
latest AIF Mineral Reserve LoM model (filed on SEDAR on
March 20, 2019) (assuming an
effective date of January 1, 2019, a
gold price of $1,300 per ounce and a
discount rate of 5%) and forecast LoM pre-tax net present value of
over $2.2 billion. The processing
upgrade will focus on increased ball mill power, with upgrades to
other components including a new cyclone classification system,
pebble crushers, and additional leach capacity to support the
higher throughput and increase operability. The capital costs of
this mill expansion are estimated to be less than $50 million, with spending evenly split between
2019 and 2020. Critical path items include ball mill motors and the
lime slaker, both of which are expected to be commissioned in the
third quarter of 2020. With public release of the PEA results,
B2Gold has filed a Material Change Report and will issue an updated
Fekola Expansion Technical Report pursuant to the requirements of
NI 43-101 by May 10, 2019.
Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability. The Expansion Study PEA is
preliminary in nature and includes Indicated and Inferred Mineral
Resources. Inferred Mineral Resources are considered too
speculative geologically to have economic considerations applied to
them that would enable them to be categorized as Mineral Reserves.
Consequently, there is no certainty that the Expansion
Study PEA will be realized.
Fekola Exploration
For 2019, exploration on the licenses in Mali is budgeted to total $18 million. The Company continues its drilling
program to convert Fekola's Inferred Resources to Indicated and
plans to further drill the potential to the north of Fekola, which
remains open, the new Cardinal target, located west of the Fekola
Pit, and the Anaconda zones.
Masbate Gold Mine – the
Philippines
The Masbate Mine in the
Philippines continued its very strong operational
performance into the first quarter of 2019, producing 57,481 ounces
of gold, 15% (7,490 ounces) above budget and 8% (4,334 ounces)
higher compared to the prior-year quarter. Gold production was
significantly above budget due to both higher-than-expected head
grade and recovery, as ore grade, oxide ore tonnage and total ore
tonnage mined from the Main Vein Pit were all better than
modelled.
Masbate's gold production for the quarter resulted from
processing 1.83 million tonnes (compared to budget of 1.85 million
tonnes and 1.79 million tonnes in the first quarter of 2018) at an
average grade of 1.32 g/t (compared to budget of 1.20 g/t and 1.17
g/t in the first quarter of 2018) and average gold recoveries of
73.8% (compared to budget of 69.7% and 78.5% in the first quarter
of 2018). Oxide ore represented 31% of the processed tonnage for
the quarter (versus budget of 8% and 78% in the first quarter of
2018). As planned, compared to the first quarter of 2018, gold
grades increased while recoveries decreased, as higher-grade
transition/fresh ore was mainly mined from the Main Vein Pit in the
first quarter of 2019 (whereas the prior-year quarter included
lower-grade oxide ore mined from the Colorado Pit).
Masbate's first quarter cash operating costs were $546 per ounce sold, significantly below budget
by $123 per ounce (18%) and
comparable with the prior-year quarter. The favourable budget
variance (on a per ounce of gold sold basis) was driven by the
above-budget gold production and Masbate's mining costs which were
well below budget for the quarter (by 24%). Cost savings were
mainly in the areas of: drilling/blasting (mining locations
included backfill areas which did not require blasting, and blast
pattern spacing was increased resulting in savings for drill meters
and blast agents), loading/hauling (mainly due to lower fuel and
maintenance costs) and fewer total tonnes of waste moved (which was
a result of fleet activity focused in Main Vein area, resulting in
a lower-than-budgeted strip ratio). Masbate's AISC for the quarter
were $743 per ounce sold,
significantly below budget by $222
per ounce (23%), mainly due to the lower-than-budgeted mining
costs, and comparable with the prior-year quarter.
Capital expenditures in the first quarter of 2019 totaled
$8 million which mainly consisted of
Masbate processing plant upgrades of $4
million, mobile equipment purchases and rebuilds of
$1 million, pre-stripping costs of
$1 million and tailings storage
facility costs of $1 million.
The Masbate expansion project for the upgrade of the processing
plant to 8.0 Mtpa was completed in early 2019. With the expansion
now fully commissioned and online, Masbate's annual gold production
is projected to average approximately 200,000 ounces per year
during the mining phase and above 100,000 ounces per year when the
low-grade stockpiles are processed in the subsequent period after
open-pit mining activities have ceased.
For full-year 2019, the Masbate Mine is expected to produce
between 200,000 and 210,000 ounces of gold, primarily from the Main
Vein Pit, at cash operating costs of between $625 and $665 per
ounce sold and AISC of between $860
and $900 per ounce sold.
Otjikoto Gold Mine – Namibia
The Otjikoto Mine in Namibia
also had a solid first quarter, producing 32,712 ounces of gold (Q1
2018 – 39,499 ounces), 4% (1,275 ounces) above budget. This was
attributable to above budget mining tonnage from the Otjikoto Pit
and higher-than-budgeted processed grade. As previously released,
Otjikoto's full-year 2019 gold production is scheduled to be
significantly weighted towards the second-half of the year, as a
higher-grade zone of the Otjikoto Pit is forecast to be processed
in the third quarter of 2019 and high-grade ore production from
Phase 2 of the Wolfshag Pit is scheduled to begin in late 2019.
During the first quarter of 2019, the Otjikoto Mine processed
0.8 million tonnes (comparable to budget and the prior-year
quarter) at an average grade of 1.29 g/t (compared to budget of
1.19 g/t and 1.51 g/t in the first quarter of 2018) and average
gold recoveries of 98.6% (compared to budget of 98.0% and 98.7% in
the first quarter of 2018).
For first quarter 2019, Otjikoto's cash operating costs were
$519 per ounce sold, significantly
below budget by $136 per ounce (21%)
and $30 per ounce below the first
quarter of 2018. The favourable budget variance (on a per ounce of
gold sold basis) was mainly due to lower cost gold ounces
sold from opening inventory and from higher-than-budgeted
ore stockpile additions. In the first quarter of 2019, more ore
tonnes were stockpiled than budgeted as a result of higher ore
tonnage than budgeted from Phase 2 of the Otjikoto Pit and Phase 2
of the Wolfshag Pit. These positive ore tonnage reconciliations
decreased the strip ratio and increased stockpiled tonnage for the
first quarter of 2019. On a total cost basis, Otjikoto's mining,
processing and site general costs were approximately as budgeted
for the quarter. Otjikoto's AISC for the quarter were $829 per ounce sold (Q1 2018 – $723 per ounce sold), significantly below budget
by $293 per ounce (26%), mainly due
to higher-than-budgeted sales. Also, sustaining capital
expenditures were $4 million below
budget (mainly relating to lower capitalized stripping which is
expected to be an overall capital expenditure saving for the
year).
Capital expenditures for the first quarter of 2019 totaled
$7 million, consisting of
$4 million for pre-stripping and
$3 million for new mobile equipment
and mobile equipment rebuilds.
For full-year 2019, the Otjikoto Mine is forecast to produce
between 165,000 and 175,000 ounces of gold, primarily from the
Otjikoto Pit, at cash operating costs of between $520 and $560 per
ounce and AISC of between $905 and
$945 per ounce. For the first-half of
2019, the Otjikoto Mine is forecast to produce between 66,000 and
71,000 ounces of gold before significantly increasing to between
99,000 and 104,000 ounces in the second-half of 2019 (as a
higher-grade zone of the Otjikoto Pit is forecast to be processed
in the third quarter of 2019 and high-grade ore production from
Phase 2 of the Wolfshag Pit is scheduled to begin in late
2019).
El Limon Gold Mine – Nicaragua
El Limon Mine in Nicaragua
produced 12,231 ounces of gold (Q1 2018 – 13,529 ounces) in the
first quarter of 2019, slightly above budget. During the quarter,
ore production from the new Limon Central Pit commenced with 49,000
tonnes mined at an average grade of 3.43 g/t. Development of the
Limon Central Pit remains the focus of surface operations at El
Limon Mine, the Santa Pancha underground mine continues to operate
normally and development of the Veta Nueva underground mine is
proceeding as planned. As previously released, El Limon's full-year
2019 gold production is scheduled to be weighted towards the
second-half of the year, as high-grade ore production from the new
Limon Central Pit is scheduled to fully come on line at the
beginning of the second-half of 2019.
For first quarter 2019, El Limon's cash operating costs were
$991 per ounce sold (compared to
budget of $876 per ounce sold) and
AISC were $1,524 per ounce sold
(compared to budget of $1,400 per
ounce sold), both above budget primarily due to lower-than-budgeted
gold sales (El Limon's gold sales were 6% below budget in the
quarter due to the timing of gold shipments). Production costs were
on budget on a total basis.
Capital expenditures in the first quarter of 2019 totaled
$7 million which mainly consisted of
underground development costs for Santa Pancha and Veta Nueva of
$4 million and Limon Central
pre-stripping costs of $3
million.
For full-year 2019, El Limon is expected to produce between
55,000 and 60,000 ounces of gold at cash operating costs of between
$720 and $760 per ounce sold and AISC of between
$1,005 and $1,045 per ounce sold. For the first-half of
2019, El Limon Mine is forecast to produce between 22,000 and
25,000 ounces of gold before increasing to between 33,000 and
35,000 ounces in the second-half of 2019.
La Libertad Gold Mine –
Nicaragua
La Libertad Mine in Nicaragua
produced 18,086 ounces of gold (Q1 2018 – 19,367 ounces) in the
first quarter of 2019, 14% (2,899 ounces) below budget. Gold
production at La Libertad was affected by lower-than-planned grade
from the San Diego Pit, which was partly offset by
higher-than-planned ore tonnage and grade from the San Juan Pit. As
previously released, La Libertad's full-year 2019 gold production
is scheduled to be weighted towards the second-half of the year, as
La Libertad's production forecast assumes that production will
start from the new Jabali Antenna Pit in the second-half of 2019
(dependent upon the successful completion of resettlement
activities and receipt of the Jabali Antenna open-pit permit).
During the quarter, the Company concluded an agreement for
Jabali Antenna with the small miners in the area, and successfully
conducted the public consultation that is required for issuance of
a mine permit. With the permitting issues related to the site
largely resolved, the Company anticipates receiving the permit in
time to start production from the pit in the second-half of 2019 as
budgeted.
La Libertad's cash operating costs in the quarter were
$1,295 per ounce sold (Q1 2018 –
$1,040 per ounce sold), $249 per ounce (24%) above budget, and were
impacted by the lower-than-budgeted production discussed above. La
Libertad's AISC were $1,647 per ounce
sold, $145 per ounce (8%) below
budget. As previously released, La Libertad's AISC per ounce are
forecast to decrease in the second-half of 2019 compared to the
first-half of the year. The lower-than-budgeted AISC resulted from
lower-than-budgeted sustaining capital expenditures arising from
timing delays in developing the Jabali Antenna open pit and
underground mines ($6 million) and
the construction of the tailings storage facility ($4 million), partially offset by higher cash
operating costs as described above and lower gold ounces sold
compared to budget. These delayed capital costs are expected to be
incurred in later in 2019.
Total capital expenditures in the first quarter of 2019 were
$4 million, consisting primarily of
tailings storage facility costs of $3
million.
For full-year 2019, La Libertad Mine is expected to produce
between 95,000 and 100,000 ounces of gold at cash operating costs
of between $840 and $880 per ounce sold and AISC of between
$1,150 and $1,190 per ounce sold. For the first-half of
2019, La Libertad Mine is forecast to produce between 43,000 and
45,000 ounces of gold before increasing to between 52,000 and
55,000 ounces in the second-half of 2019. La Libertad's AISC per
ounce are forecast to decrease in the second-half of 2019 compared
to the first-half of the year, mainly due to higher expected gold
production in the second-half and the timing of capital
expenditures relating to the tailings storage facility lift
($11 million) which is expected to be
completed in the second quarter of 2019.
Outlook
Looking forward in 2019, B2Gold plans to continue to maximize
cash flows and maintain a strong financial position by continuing
the impressive operational and financial performance from our
existing mines, continue to reduce overall debt levels, expand the
Fekola Mine throughput and annual gold production, pursue
additional internal growth through further exploration, development
and expansion of existing projects, and pursuit of greenfield
exploration projects alone or in joint ventures.
The Company has recently commenced the mill expansion at the
Fekola Mine which is expected to significantly increase annual gold
production and enhance the mine economics over the next five years
and over its LoM. A NI 43-101 Technical Report supporting the
Fekola expansion will be filed by May 10,
2019. In addition, infill drilling is well underway on the
Fekola North Extension to convert Inferred Mineral Resources to
Indicated Mineral Resources. Exploration in 2019 will also focus on
drill testing Fekola, further to the north, where it remains open,
the new Cardinal zone west of Fekola and below the Anaconda
saprolite resource to the north. At the Gramalote Project joint
venture in Colombia (AngloGold
Ashanti/B2Gold), the companies are reviewing budgets to complete
significant resource infill drilling and advance permitting and
feasibility work in 2019. Finally, in addition to advancing
existing projects, the Company will continue pursuing gold
exploration opportunities on its own and in joint ventures with
junior exploration companies.
Qualified Persons
Peter D. Montano, P.E., the Project Director of B2Gold, a
qualified person under NI 43-101, has approved the scientific and
technical information related to operations matters contained in
this news release.
John Rajala, Vice President of
Metallurgy at B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information regarding
engineering matters related to Fekola expansion studies.
First Quarter 2019 Financial Results – Conference
Call/Webcast Details
B2Gold executives will host a conference call to discuss the
results on Wednesday, May 8,
2019, at 10:00 am PDT/1:00 pm EDT. You
may access the call by dialing the operator at +1 647-788-4919
(local or international) or toll free at +1 877-291-4570 prior to
the scheduled start time, or you may listen to the call via webcast
by clicking here:
https://www.investornetwork.com/event/presentation/46549. A
playback version will be available for two weeks after the call at
+1 416-621-4642 (local or international) or toll free at +1
800-585-8367 (passcode 9459299).
On Behalf of B2GOLD CORP.
"Clive T.
Johnson"
President and Chief Executive
Officer
For more information on B2Gold please visit the Company website
at www.b2gold.com or contact:
Ian
MacLean
|
Katie
Bromley
|
Vice President,
Investor Relations
|
Manager, Investor
Relations & Public Relations
|
604-681-8371
|
604-681-8371
|
imaclean@b2gold.com
|
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE American LLC
neither approve nor disapprove the information
contained in this news release.
Production results and production guidance presented in this
news release reflect total production at the mines B2Gold operates
on a 100% project basis. Please see our Annual Information
Form dated March 19, 2019 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 events, gold
production and sales, revenues and cash flows, capital and
operating costs, including projected cash operating costs and AISC,
and budgets; statements regarding future or estimated mine life,
metal price assumptions, ore grades or sources, 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 remaining well positioned for continued strong
operational and financial performance for the full-year of 2019;
the upsizing of B2Gold's revolving credit facility capacity and its
accordion feature, and the expected terms and timing of closing;
the results of the Fekola PEA; the Fekola expansion being expected
to increase life-of-mine to 2030 and project pre-tax net present
value, increase processing throughput and produce more gold over a
longer life with more robust economics and higher average gold
production, revenues and cash flows than the previous life-of-mine
and the timing of such expansion; the estimated capital cost of the
Fekola expansion; the release of an updated Fekola Expansion
Technical Report and the timing thereof; the new high-grade ore
production scheduled to begin in the second-half 2019 from Phase 4
of the Fekola Pit; production at the Masbate Mine being
projected to average approximately 200,000 ounces per year during
the mining phase and above 100,000 ounces per year when the
low-grade stockpiles are processed at the end of the open-pit mine
life; higher-grade zone of the Otjikoto Pit being forecast to
be processed in the third quarter of 2019; high-grade ore
production from Phase 2 of the Wolfshag Pit being scheduled to
begin in late 2019; the anticipated timing of receipt of the
Jabali Antenna Pit permit and the start of production therefrom;
high-grade ore production from the new Limon Central Pit being
scheduled to commence at the beginning of the second-half of
2019; B2Gold's consolidated gold production and the gold
production at each of the Fekola Mine, La Libertad, Otjikoto Mine
and El Limon being weighted in the second-half of 2019; the
expected development of open pits in the first half of 2019 and
subsequent ore production therefrom in the second-half of 2019; the
expected completion of an updated Preliminary Economic Assessment
for Gramalote in the second quarter of 2019, and the potential to
proceed to a final feasibility study for Gramalote with AngloGold
Ashanti; and B2Gold remaining focused on reducing debt,
organic growth and greenfield exploration and pursuing other
opportunities. Estimates of mineral resources and
reserves are also forward-looking statements because they
constitute projections regarding the amount of minerals that may be
encountered in the future and/or the anticipated economics of
production, should a production decision be made. 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
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 studies; the ability to
obtain and maintain any necessary permits, consents or
authorizations required for mining activities; the current ongoing
instability in Nicaragua and the
ramifications thereof; 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, Nicaragua 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; 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 final outcome of the audit by the Philippines
Department of Environment and Natural Resources in relation to the
Masbate Project; 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; 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:
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; 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 are not normally permitted to be disclosed
in SEC filings by U.S. companies. 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 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 MONTHS ENDED MARCH
31
(Expressed in thousands of United States dollars, except per share
amounts)
(Unaudited)
|
|
2019
|
|
2018
|
|
|
|
|
|
Gold
revenue
|
|
$
|
301,664
|
|
$
|
344,288
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Production
costs
|
|
(126,502)
|
|
(122,298)
|
Depreciation and
depletion
|
|
(67,390)
|
|
(81,248)
|
Royalties and
production taxes
|
|
(19,456)
|
|
(21,162)
|
Total cost of
sales
|
|
(213,348)
|
|
(224,708)
|
|
|
|
|
|
Gross
profit
|
|
88,316
|
|
119,580
|
|
|
|
|
|
General and
administrative
|
|
(15,778)
|
|
(12,018)
|
Share-based
payments
|
|
(4,747)
|
|
(3,994)
|
Impairment of
long-lived assets
|
|
—
|
|
(18,186)
|
Provision for
non-recoverable input taxes
|
|
50
|
|
(556)
|
Foreign exchange
gains (losses)
|
|
1,029
|
|
(367)
|
Other
|
|
(618)
|
|
(961)
|
Operating
income
|
|
68,252
|
|
83,498
|
|
|
|
|
|
Unrealized gain on
fair value of convertible notes
|
|
—
|
|
11,214
|
Community
relations
|
|
(1,087)
|
|
(1,343)
|
Interest and
financing expense
|
|
(7,768)
|
|
(8,305)
|
Gains on derivative
instruments
|
|
6,246
|
|
3,028
|
Other
|
|
(94)
|
|
(133)
|
Income before
taxes
|
|
65,549
|
|
87,959
|
|
|
|
|
|
Current income tax,
withholding and other taxes
|
|
(27,181)
|
|
(39,479)
|
Deferred income tax
(expense) recovery
|
|
(11,845)
|
|
8,948
|
Net income for the
period
|
|
$
|
26,523
|
|
$
|
57,428
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Shareholders of the
Company
|
|
$
|
22,295
|
|
$
|
56,482
|
Non-controlling
interests
|
|
4,228
|
|
946
|
Net income for the
period
|
|
$
|
26,523
|
|
$
|
57,428
|
|
|
|
|
|
Earnings per
share (attributable to shareholders of the
Company)
|
|
|
|
|
Basic
|
|
$
|
0.02
|
|
$
|
0.06
|
Diluted
|
|
$
|
0.02
|
|
$
|
0.04
|
|
|
|
|
|
Weighted average
number of common sharesoutstanding (in
thousands)
|
|
|
|
|
Basic
|
|
1,001,410
|
|
982,160
|
Diluted
|
|
1,015,484
|
|
1,063,532
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH
31
(Expressed in thousands of United
States dollars)
(Unaudited)
|
|
2019
|
|
2018
|
Operating
activities
|
|
|
|
|
Net income for the
period
|
|
$
|
26,523
|
|
$
|
57,428
|
Mine restoration
provisions settled
|
|
(693)
|
|
—
|
Non-cash charges,
net
|
|
64,350
|
|
74,717
|
Changes in non-cash
working capital
|
|
(1,922)
|
|
13,810
|
Changes in long-term
value added tax receivables
|
|
(1,839)
|
|
1,321
|
Cash provided by
operating activities
|
|
86,419
|
|
147,276
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Repayment of
revolving credit facility
|
|
—
|
|
(75,000)
|
Equipment loan
facilities, drawdowns net of transaction costs
|
|
—
|
|
25,294
|
Repayment of
equipment loan facilities
|
|
(2,312)
|
|
(3,017)
|
Interest and
commitment fees paid
|
|
(5,774)
|
|
(6,887)
|
Common shares issued
for cash on exercise of stock options
|
|
21,165
|
|
4,875
|
Principal payments on
lease arrangements
|
|
(757)
|
|
—
|
Restricted cash
movement
|
|
(856)
|
|
(1,418)
|
Other
|
|
(180)
|
|
(425)
|
Cash provided
(used) by financing activities
|
|
11,286
|
|
(56,578)
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Expenditures on
mining interests:
|
|
|
|
|
Fekola
Mine
|
|
(21,284)
|
|
(21,087)
|
Masbate
Mine
|
|
(8,444)
|
|
(11,837)
|
Otjikoto
Mine
|
|
(7,282)
|
|
(11,376)
|
Libertad
Mine
|
|
(4,351)
|
|
(4,615)
|
Limon Mine
|
|
(7,429)
|
|
(5,980)
|
Gramalote
Project
|
|
(1,188)
|
|
(2,436)
|
Other exploration and
development
|
|
(8,368)
|
|
(13,653)
|
Other
|
|
(151)
|
|
(15)
|
Cash used by
investing activities
|
|
(58,497)
|
|
(70,999)
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
39,208
|
|
19,699
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(377)
|
|
749
|
Cash and cash
equivalents, beginning of period
|
|
102,752
|
|
147,468
|
Cash and cash
equivalents, end of period
|
|
$
|
141,583
|
|
$
|
167,916
|
|
|
|
|
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in
thousands of United States
dollars)
(Unaudited)
|
|
As at March
31,
2019
|
|
As at December
31,
2018
|
Assets
|
|
|
|
|
Current
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
141,583
|
|
$
|
102,752
|
Accounts receivable,
prepaids and other
|
|
20,893
|
|
12,651
|
Value-added and other
tax receivables
|
|
15,684
|
|
13,657
|
Inventories
|
|
226,050
|
|
233,971
|
|
|
404,210
|
|
363,031
|
|
|
|
|
|
Long-term
investments
|
|
4,824
|
|
4,155
|
Value-added tax
receivables
|
|
24,047
|
|
22,185
|
Mining
interests
|
|
|
|
|
Owned by
subsidiaries
|
|
2,039,259
|
|
2,035,097
|
Investments in joint
ventures
|
|
73,266
|
|
72,078
|
Other
assets
|
|
44,929
|
|
40,351
|
Deferred income
taxes
|
|
2,479
|
|
10,907
|
|
|
$
|
2,593,014
|
|
$
|
2,547,804
|
Liabilities
|
|
|
|
|
Current
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
72,612
|
|
$
|
80,318
|
Current income and
other taxes payable
|
|
79,988
|
|
66,904
|
Current portion of
long-term debt
|
|
29,748
|
|
25,008
|
Current portion of
prepaid sales
|
|
12,000
|
|
30,000
|
Current portion of
mine restoration provisions
|
|
3,044
|
|
3,170
|
Other current
liabilities
|
|
1,262
|
|
1,850
|
|
|
198,654
|
|
207,250
|
|
|
|
|
|
Long-term
debt
|
|
453,372
|
|
454,527
|
Mine restoration
provisions
|
|
114,262
|
|
114,051
|
Deferred income
taxes
|
|
106,801
|
|
103,384
|
Employee benefits
obligation
|
|
12,328
|
|
12,063
|
Other long-term
liabilities
|
|
2,280
|
|
3,676
|
|
|
887,697
|
|
894,951
|
Equity
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share
capital
|
|
|
|
|
Issued:1,004,748,151 common shares
(Dec 31, 2018 – 994,621,917)
|
|
2,262,165
|
|
2,234,050
|
Contributed
surplus
|
|
67,916
|
|
70,889
|
Accumulated other
comprehensive loss
|
|
(145,484)
|
|
(146,153)
|
Deficit
|
|
(524,686)
|
|
(547,839)
|
|
|
1,659,911
|
|
1,610,947
|
Non-controlling
interests
|
|
45,406
|
|
41,906
|
|
|
1,705,317
|
|
1,652,853
|
|
|
$
|
2,593,014
|
|
$
|
2,547,804
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/b2gold-reports-strong-first-quarter-2019-results-quarterly-gold-production-of-231-000-oz-6-above-budget-aisc-of-848oz-sold-significantly-below-budget-by-133oz-300845874.html
SOURCE B2Gold Corp.