VANCOUVER, Sept. 10, 2020
/CNW/ - B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX:
B2G) ("B2Gold" or the "Company") is pleased to provide the
following corporate update:
Fekola Mill Expansion
The Company is pleased to announce the successful commissioning
of the mill expansion at the Fekola Mine to 7.5 million tonnes per
annum, approximately one month ahead of the scheduled completion
date of September 30, 2020. This
includes 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. The minor,
outstanding construction work is expected to be completed
by mid-September 2020.
The Fekola Mine continues to operate unimpeded and no
operational days have been lost due to the recent political
developments in Mali or the
COVID-19 pandemic. 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. In addition, the Company
recently has partnered with the government to assist the people of
Mali in facing the challenges
created by the COVID-19 pandemic and its impact on the mining
sector.
2020 Production Guidance Maintained
The Company is maintaining both quarterly consolidated budgeted
production estimates and consolidated annual production guidance
for 2020. Total consolidated production guidance remains at
between 1,000,000 and 1,055,000 ounces of gold; total consolidated
cash operating costs (see "Non-IFRS Measures") are forecast
to be between $415 and $455 per ounce and total consolidated all-in
sustaining costs (see "Non-IFRS Measures") are forecast to
be between $780 and $820 per ounce. All dollar figures are in
United States Dollars unless
otherwise indicated.
Dividend Declared for Third Quarter of 2020
The Company is also pleased to announce that its Board of
Directors has declared a cash dividend for the third quarter
of 2020 of $0.04 per share,
payable on September 30, 2020 to
shareholders of record as of September 22,
2020.
As part of the long-term strategy to maximize shareholder value,
B2Gold expects to declare future quarterly dividends at the same
level, which reflects a previously announced
increase in the Company's annual dividend from
$0.08 per share to $0.16 per share. This dividend is designated
as an "eligible dividend" for the purposes of the Income Tax Act
(Canada). Dividends paid by B2Gold
to shareholders outside Canada
(non-resident investors) will be subject to Canadian non-resident
withholding taxes.
The declaration and payment of future dividends and the amount
of any such dividends will be subject to the determination of the
Board of Directors, in its sole and absolute discretion, taking
into account, among other things, economic conditions, business
performance, financial condition, growth plans, expected capital
requirements, compliance with the Company's constating documents,
all applicable laws, including the rules and policies of any
applicable stock exchange, as well as any contractual restrictions
on such dividends, including any agreements entered into with
lenders to the Company, and any other factors that the Board of
Directors deems appropriate at the relevant time. There can be no
assurance that any dividends will be paid at the intended rate or
at all in the future.
Debt Repayment Update
Based on the continuing strong operating performance at each of
the Company's mines and no significant unforeseen work stoppages
having been incurred due to COVID-19, the Company commenced
repaying the outstanding Revolving Credit Facility (RCF) balance of
$425 million in August 2020. To date, the Company has repaid
$375 million of the total outstanding
balance and expects to repay the final remaining tranche of
$50 million and be debt-free by late
September 2020, other than mining
equipment loans and leases totaling approximately $50 million which are payable over several years.
This will leave the Company well positioned with the full amount of
the $600 million RCF undrawn and
available.
Based on current assumptions, including a gold price of
$1,900 per ounce for the second half
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.
About B2Gold Corp.
B2Gold is a low-cost international senior gold producer
headquartered in Vancouver,
Canada. Founded in 2007, today, B2Gold has operating gold
mines in Mali, Namibia and the
Philippines and numerous exploration and development
projects in various countries including Mali and Colombia. B2Gold continues to forecast total
consolidated gold production of between 1,000,000 and 1,055,000
ounces in 2020.
Qualified Persons
Bill Lytle, Senior Vice President
of Operations, a qualified person under NI 43-101, has
approved the scientific and technical information related to
operations matters contained in this news release.
On Behalf of B2GOLD CORP.
"Clive T. Johnson"
President and Chief Executive
Officer
For more information on B2Gold please visit the Company website
at www.b2gold.com or contact:
Ian
MacLean
|
Katie Bromley
|
Vice President,
Investor Relations
|
Manager,
Investor Relations & Public Relations
|
604-681-8371
|
604-681-8371
|
imaclean@b2gold.com
|
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE American LLC neither
approve nor disapprove the information contained in this news
release.
Production results and production guidance presented in this
news release reflect total production at the mines B2Gold operates
on a 100% project basis. Please see our Annual Information Form
dated March 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:
generating operating cashflows of approximately $900 million in 2020; projected 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 anticipated
repayment of all or a portion of the outstanding RCF balance in
2020 and the availability of the facility; 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. 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.
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SOURCE B2Gold Corp.