VANCOUVER, January 20, 2021 /CNW/ - B2Gold Corp. (TSX: BTO)
(NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the
"Company") is pleased to announce its consolidated
gold production and gold revenues for the fourth quarter and
full-year 2020, in addition to its production and budget guidance
for 2021. All dollar figures are in United States dollars unless otherwise
indicated.
2020 Gold Production and Revenue
Highlights
- Fourth quarter total gold production of 270,469 ounces
(including 14,150 ounces of attributable production from Calibre
Mining Corp. ("Calibre")) and consolidated gold production of
256,319 ounces from the Company's three operating mines
- Fourth quarter consolidated gold revenues of $480 million, a significant increase of
$166 million (53%) over the fourth
quarter of 2019 (excluding revenues
from discontinued operations)
- Record annual total gold production of 1,040,737 ounces
(including 45,479 ounces of attributable production from
Calibre)
- Record annual consolidated gold production from the
Company's three operating mines of 995,258 ounces, at the upper end
of the guidance range (of between 955,000 – 1,005,000 ounces), and
significantly higher by 17% (144,142 ounces) over 2019 (excluding
discontinued operations), marking the twelfth consecutive year of
record annual consolidated gold production
- Record annual consolidated gold revenues of $1.79 billion, a significant increase of
$0.63 billion (55%) over 2019
(excluding revenues from
discontinued operations)
- The Company expects to be at the low end of its guidance
range for total consolidated cash operating costs (see "Non-IFRS
Measures") of between $415 -
$455 per ounce and at the low end of
its guidance range for total consolidated all-in sustaining costs
("AISC") (see "Non-IFRS Measures") of between $780 - $820 per
ounce
- 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) on September
10, 2020, several weeks ahead of the scheduled completion
date of September 30, 2020; the
Fekola mill has the potential to run above the expanded annualized
throughput rate of 7.5 Mtpa and analysis is currently underway to
determine the optimum throughput rate (for 2021 budgeting purposes
the Company has assumed a throughput rate of 7.75 Mtpa)
- Selected as the recipient of two prestigious mining
industry awards in 2020 for B2Gold's commitment to sustainable
mining and development: the Prospectors & Developers
Association of Canada's "2021
Sustainability Award" and the Mining Journal's "2020 Most
Sustainable Miner Award"
- In December 2020, the
Gramalote Project in Colombia
received the "Seal of Antioquia Award" from the Government of
Antioquia through the Ministry of Mines for large scale operations,
recognizing its commitment to community support
- 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), one of the
highest dividend yields in the gold sector
2021 Budget Highlights
- For 2021, B2Gold remains well positioned for continued
strong operational and financial performance with total production
guidance of between 970,000 - 1,030,000 ounces of gold (including
attributable ounces projected from Calibre of between 50,000 -
60,000 ounces) with total consolidated forecast cash operating
costs of between $500 - $540 per ounce and total consolidated AISC of
between $870 - $910 per ounce; consolidated cash operating costs
and AISC per ounce are forecast to be higher than 2020, mainly due
to the planned lower production and higher planned stripping
activities at Fekola, higher forecast fuel and labour costs in
Mali, and the drawdown of ore
stockpiles at Otjikoto
- Due to open pit mine sequencing, consolidated gold
production is expected to be significantly weighted to the second
half of 2021; for the first half of 2021, consolidated gold
production is forecasted to be between 365,000 – 385,000 ounces,
which is expected to increase significantly to between 555,000 –
585,000 ounces during the second half of 2021
- Based on current operating plans, over a five-year
outlook from 2020 to 2024, annual consolidated gold production is
forecast to average 950,000 ounces with AISC averaging $825 per ounce
- The results of the Gramalote Feasibility Study are
expected to be announced in April
2021, with a construction decision expected to be made
shortly thereafter
- The Company is re-evaluating the Kiaka Project in Burkina Faso, and expects to have an updated
economic assessment of the project for internal review completed by
the end of the first quarter of 2021, followed by an updated
feasibility study by mid-year 2021
- Following a very successful year for exploration in 2020,
B2Gold is planning a year of aggressive exploration in 2021 with a
budget of approximately $66 million
(excluding Gramalote), including a record $25 million allocated to the Company's ongoing
grassroots exploration programs
- An updated mineral resource estimate for the Anaconda area
(located 20 kilometres north of Fekola), based on the completed
2020 drill program, is expected in the first quarter of 2021 and
the Company has allocated $8 million
for drilling to expand the mineral resource estimate in 2021; in
addition an initial mineral resource estimate is expected to be
completed for the Cardinal zone (located within 500 metres of the
current Fekola resource pit) in the first quarter of 2021
- Based on current assumptions, including a gold price of
$1,800 per ounce, the Company expects
to generate cashflows from operating activities of approximately
$630 million in 2021
Despite some of the challenges that the current COVID-19
pandemic has created worldwide and in each of the locations where
the Company operates or is head-quartered, the Company continues to
operate virtually unimpeded. The B2Gold executive team is very
proud of the Company's employees' dedication and resilience in
these challenging times and believe it is in part due to the
executive team's and mine employees' years of experience in all
aspects of international mining, and the Company's culture of
treating all its stakeholders with fairness, respect and
transparency. This successful approach is reflected again in the
Company's record performance 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
its highest priority and continues to encourage input from all its
stakeholders as the COVID-19 situation evolves. The Company
continues to implement measures and precautionary steps to manage
and respond to the risks associated with COVID-19 to ensure the
safety of B2Gold's employees, contractors, suppliers and
surrounding communities where the Company works while continuing to
operate. The Company is continually updating these plans and
response measures based on the safety and well-being of its
workforce, the severity of the pandemic in areas where it operates,
global response measures, government restrictions and extensive
community consultation. The Company is working closely with
national and local authorities 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 Gold Production and
Development
Despite the challenges of the COVID-19 pandemic, B2Gold
had another remarkable year of strong growth in 2020, with the
achievement of B2Gold's twelfth consecutive year of record annual
gold production. The Company's total gold production for 2020 was
an annual record of 1,040,737 ounces (including 45,479 ounces of
attributable production from Calibre), at the upper end of the
guidance range (of between 1,000,000 – 1,055,000 ounces).
Consolidated gold production from the Company's three operating
mines was an annual record of 995,258 ounces of gold, at the upper
end of the guidance range (of between 955,000 – 1,005,000 ounces),
and significantly higher by 17% (144,142 ounces) than 2019
(excluding discontinued operations). The significant increase in
gold production over 2019 was driven by the Fekola Mine in
Mali, which produced an annual
record of 622,518 ounces of gold, exceeding the upper end of its
guidance range (of between 590,000 - 620,000 ounces). Between the
commencement of Fekola's operations in September 2017 and December 31, 2020, the Fekola Mine has produced
over 1.6 million ounces of gold (which is 155,000 ounces more than
originally forecast under Fekola's Definitive Feasibility Study
over this period). The Masbate Mine in the Philippines achieved another strong year
in 2020, producing 204,699 ounces of gold, at the midpoint of its
guidance range (of between 200,000 - 210,000 ounces). Masbate's
strong operational performance was achieved despite a five-day
temporary suspension of mining activities in the first quarter of
2020 due to fuel shortages relating to COVID-19 restrictions, and a
magnitude 6.6 earthquake approximately 90 kilometres from the mine
site on August 18, 2020, suspending
mining and processing operations for five and six days,
respectively, as inspections were conducted to confirm there was no
damage to the mine from the earthquake. The Otjikoto Mine in
Namibia also had another solid
year in 2020, producing 168,041 ounces of gold, near the midpoint
of its guidance range (of between 165,000 - 175,000
ounces).
The Company is currently compiling its final cash
operating costs and AISC results for 2020 and will release its
fourth quarter and full-year 2020 financial results after the North
American markets close on Tuesday, February
23, 2021. The Company expects to be at the low end of its
guidance range for total consolidated cash operating costs of
between $415 - $455 per ounce and at the low end of its guidance
range for total consolidated AISC of between $780 - $820 per
ounce.
The Company's expansion and development projects also
progressed well throughout 2020:
- At Fekola, 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), occurred on September 10,
2020, several weeks 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 (for 2021 budgeting purposes the Company
has assumed a throughput rate of 7.75 Mtpa). 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.
- At Otjikoto, development of the Wolfshag underground mine
continues to progress well and 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 fourth quarter of 2020, an updated resource model for Gramalote
was completed, providing the information necessary to advance pit
design and mining engineering studies. Feasibility stage
metallurgical studies and process plant design were completed by
year-end and infrastructure design work continues. The results of
the Gramalote Feasibility Study are expected to
be announced in April 2021, with a construction decision
expected to be made shortly thereafter.
Looking forward to 2021, B2Gold remains well positioned
for continued strong operational and financial performance. The
Company's total gold production is forecast to be between
970,000 - 1,030,000 ounces (including 50,000 - 60,000
ounces attributable ounces projected from Calibre) in 2021,
with total consolidated cash operating
costs forecast to be between $500 - $540 per
ounce and total consolidated AISC forecast to be between
$870 - $910 per ounce.
The Company's consolidated gold production
from its three operating mines is forecast to be between 920,000 –
970,000 ounces in 2021, with consolidated cash operating costs
forecast to be between $480 - $520 per
ounce and consolidated AISC forecast to be between $860 - $900 per
ounce. The Company's 2021 production guidance does not include the
potential upside to increase Fekola's gold production in 2021 from
additional mining areas and processing capacity currently being
investigated (see "2021 Production Outlook and Cost Guidance"
section below).
Based on current operating plans, over a five-year outlook
from 2020 to 2024, annual consolidated gold production is forecast
to average 950,000 ounces with AISC averaging $825 per ounce.
2020 Gold Revenue
For full-year 2020, consolidated gold revenue was a record
$1.79 billion on sales of 1,006,455
ounces at an average price of $1,777
per ounce, compared to $1.16 billion
on sales of 827,800 ounces at an average price of $1,396 per ounce in 2019 (excluding
revenues from discontinued operations). This
significant increase in gold revenue of 55% ($0.63 billion) was 33% attributable to the
increase in the average realized gold price and 22% attributable to
the increase in gold ounces sold (mainly due to the higher gold
production).
For the fourth quarter of 2020, consolidated gold revenue
was $480 million on sales of 256,655
ounces at an average price of $1,868
per ounce, compared to $314 million
on sales of 211,800 ounces at an average price of $1,481 per ounce in the fourth quarter of
2019 (excluding revenues from
discontinued operations). This significant
increase in gold revenue of 53% ($166
million) was 32% attributable to the increase in the average
realized gold price and 21% attributable to the increase in gold
ounces sold (mainly due to the higher gold production).
2020 Operations
Mine-by-mine gold production in the fourth
quarter and full-year 2020 (including the Company's approximate 33%
share of Calibre's production) was as
follows:
Mine
|
Q4 2020 Gold
Production (ounces)
|
Full-Year 2020 Gold
Production (ounces)
|
2020 Annual
Guidance Gold Production
(ounces)
|
Fekola
|
158,548
|
622,518
|
590,000 -
620,000
|
Masbate
|
57,566
|
204,699
|
200,000 -
210,000
|
Otjikoto
|
40,205
|
168,041
|
165,000 -
175,000
|
|
|
|
|
B2Gold Consolidated
(1)
|
256,319
|
995,258
|
955,000 – 1,005,000
|
|
|
|
|
Equity interest in Calibre
(2)
|
14,150
|
45,479
|
45,000 - 50,000
|
|
|
|
|
Total
|
270,469
|
1,040,737
|
1,000,000 – 1,055,000
|
(1)
|
"B2Gold Consolidated" - gold production is presented
on a 100% basis, as B2Gold fully consolidates the results of its
Fekola, Masbate and Otjikoto mines in its consolidated financial
statements (even though it does not own 100% of these
operations).
|
(2)
|
"Equity interest in Calibre" - represents the
Company's approximate 33% indirect share of the operations of
Calibre's El Limon and La Libertad mines in Nicaragua. B2Gold
applies the equity method of accounting for its ownership interest
in Calibre.
|
Fekola Gold Mine - Mali
The Fekola Mine in Mali
had a record year in 2020, producing an annual record of 622,518
ounces of gold, exceeding the upper end of its guidance range (of
between 590,000 - 620,000 ounces), as processed grade, tonnes and
recoveries all exceeded budget. Gold production for the year also
increased significantly by 37% (166,708 ounces) over 2019, mainly
due to the expansion of the Fekola mining fleet and optimization of
the pit designs and mine plan for 2020, which provided access to
higher grade portions of the Fekola deposit earlier than
anticipated in previous mine plans. Between the commencement of
Fekola's operations in September 2017
to December 31, 2020, the Fekola Mine
has produced over 1.6 million ounces of gold (which is 155,000
ounces more than originally forecast under Fekola's Definitive
Feasibility Study over this period). As at December 31, 2020, the Fekola Mine had achieved
347 days without a lost time injury ("LTI"). In the fourth quarter
of 2020, the Fekola Mine produced 158,548 ounces of gold,
significantly higher than the fourth quarter of 2019 by 33% (39,305
ounces).
In September 2020, the
commissioning of the Fekola mill expansion to 7.5 Mtpa (an increase
of 1.5 Mtpa from an assumed base rate of 6 Mtpa) was successfully
completed several weeks ahead of schedule. The Fekola mill has the
potential to run above the expanded annualized throughput rate of
7.5 Mtpa and analysis is currently underway to determine the
optimum throughput rate (for 2021 budgeting purposes the Company
has assumed a throughput rate of 7.75 Mtpa). 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.
For full-year 2020, mill feed grade was 2.99 grams per
tonne ("g/t") compared to budget of 2.91 g/t and 2.16 g/t in 2019;
mill throughput was 6.87 million tonnes compared to budget of 6.84
million tonnes and 6.98 million tonnes in 2019; and gold recovery
averaged 94.3% compared to budget of 93.8% and 94.2% in 2019. The
slightly lower mill throughput in 2020 compared to 2019 was
mainly due to the planned
downtime for the Fekola mill
expansion tie-ins and softer low-grade ore
being processed in 2019.
For full-year 2020, Fekola's cash operating costs are
expected to be at the upper end of its guidance range of between
$285 - $325 per ounce and AISC are expected to at the
upper end of its guidance range of between $555 - $595 per
ounce (due to increased royalties as a result of higher gold
prices).
Fekola Solar Plant
Following the temporary suspension of solar plant
construction activities in April 2020
due to COVID-19 restrictions, construction recommenced on
October 2, 2020. At December 31, 2020, overall construction progress
was approximately 70% complete. On January
5, 2021, a fire (currently under investigation) in the solar
storage yard destroyed approximately 25% of the solar panels for
the project. Based on current projections, the Company expects
that 25% of the solar capacity will become available in the first
quarter of 2021, 50% in the second quarter, with the remaining 25%
by the third quarter. Overall project completion timing is
contingent on receiving replacements for the damaged components.
The Company does not anticipate any significant impact on Fekola's
2021 budgeted cash operating costs as a result of the delay in
completion of the solar plant.
The existing HFO and diesel power plant have an installed
capacity of 64 megawatts while Fekola's expanded mill facilities
require only approximately 40 megawatts for continuous operations.
The solar plant is therefore not a necessary component to sustain
the higher process plant production rate but is expected to reduce
Fekola's operating costs and emissions by decreasing power plant
fuel consumption and maintenance costs. When the plant is fully
commissioned, it will reduce HFO consumptions by over 13 million
litres per year and lower carbon dioxide emissions by an estimated
39,000 tonnes per year.
Masbate Gold Mine – the
Philippines
The Masbate Mine in the
Philippines achieved another strong year in 2020, producing
204,699 ounces of gold, at the midpoint of its guidance range (of
between 200,000 - 210,000 ounces). Masbate's strong operational
performance was achieved despite a five day temporary suspension of
mining activities in the first quarter of 2020 due to fuel
shortages relating to COVID-19 restrictions, and a magnitude 6.6
earthquake approximately 90 kilometres from the mine site on
August 18, 2020, suspending mining
and processing operations for five and six days, respectively, as
inspections were conducted to confirm there was no damage to the
mine from the earthquake. In addition, Masbate operations continued
to run normally following a super typhoon (Typhoon Goni), which
first made landfall in the
Philippines on November 1,
2020. Compared to 2019, gold production in 2020, as planned,
was lower by 6% (12,641 ounces), as the prior year had benefited
from higher grade ore tonnage from the Main Vein Pit. The Masbate
Mine continued its remarkable safety performance, extending the
number of days without an LTI to 776 days as at December 31, 2020. Masbate had a strong finish to
the year, producing 57,566 ounces of gold in the fourth quarter of
2020, significantly higher than the fourth quarter of 2019 by 13%
(6,825 ounces), mainly due to higher recoveries (as a result of
mining more oxide ore).
For full-year 2020, mill feed grade was 1.00 g/t compared
to budget of 1.01 g/t and 1.16 g/t in 2019; mill throughput was
7.76 million tonnes compared to budget of 8.2 million tonnes and
8.0 million tonnes in 2019; and gold recovery averaged 82.3%
compared to budget of 76.3% and 73.2% in 2019. Average gold
recoveries were above budget due to mining more oxide ore than
budgeted.
For full-year 2020, Masbate's cash operating costs are
expected to be below the low end of its guidance range of between
$665 - $705 per ounce and AISC are expected to be within
its guidance range of between $965 -
$1,005 per ounce.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia also had another solid year in 2020,
producing 168,041 ounces of gold, near the midpoint of its guidance
range (of between 165,000 - 175,000 ounces). Compared to 2019, gold
production, as planned, was lower by 6% (9,925 ounces) in 2020, as
the prior year had benefited from more high-grade ore tonnes being
mined from Phase 2 of the Wolfshag Pit. The Otjikoto Mine has a
remarkable safety record, with no LTI's from March 27, 2018 until October 29, 2020, when an LTI for a fractured
ankle occurred. As at December 31,
2020, the Otjikoto Mine had achieved 63 days without an LTI.
In the fourth quarter of 2020, the Otjikoto Mine produced 40,205
ounces of gold (fourth quarter of 2019 – 58,422
ounces).
For full-year 2020, mill feed grade was 1.52 g/t compared
to budget of 1.55 g/t and 1.64 g/t in 2019; mill throughput was
3.51 million tonnes compared to budget of 3.41 million tonnes and
3.42 million tonnes in 2019; and gold recovery averaged 98.4%
compared to budget of 98.0% and 98.7% in 2019.
For full-year 2020, Otjikoto's cash operating costs are
expected to be below the low end of its guidance range of between
$480 - $520 per ounce and AISC are expected to be well
below the low end of its guidance range of between $1,010 - $1,050 per
ounce.
2020 Development
Gramalote Project (B2Gold – 50%/AngloGold Ashanti Limited
– 50%) - Colombia
B2Gold has a 50% interest in the Gramalote Project in
Colombia, and on January 1, 2020 became the operator of the
Project.
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.
During 2020, Gramalote successfully completed an extensive
infill drill program of 42,500 meters in August 2020. The purpose of the infill drilling
was to confirm and upgrade the Inferred Mineral Resources to
Indicated status to provide the basis for Gramalote's
Feasibility Study. During the fourth quarter of
2020, an updated resource model for Gramalote was completed,
providing the information necessary to advance pit design and
mining engineering studies. Feasibility stage metallurgical
studies and process plant design were completed by year-end and
infrastructure design work continues. The results of the Gramalote
Feasibility Study are expected to be announced in April 2021, with a construction decision expected
to be made shortly thereafter.
Key social initiatives, including resettlement work and
artisanal miner formalization/relocation, continued to advance
during the fourth quarter of 2020. Gramalote has also
requested that the terms of its EIA be modified to allow the
resettlement process to occur as construction proceeds, which will
assist in accelerating the construction sequence.
2021 Production Outlook and Cost
Guidance
The Company's total gold production is forecast to be
between 970,000 - 1,030,000 ounces (including 50,000 -
60,000 ounces attributable ounces projected from Calibre)
in 2021 (compared to total production of 1,040,737 ounces in
2020).
For 2021, the Company's consolidated gold production from
its three operating mines is forecast to be between 920,000 –
970,000 ounces, lower than 2020 consolidated production of 995,258
ounces by approximately 5%. The decrease is attributable to lower
expected production from Fekola in 2021 (as Phase 5
and 6 of the Fekola Pit are developed in the first
half of 2021), partially offset by an expected overall 16% increase
in production from Otjikoto. Fekola's 2021 production forecast (of
between 530,000 – 560,000 ounces), however, does not include the
potential upside to increase Fekola's gold production in 2021 from
additional mining areas and processing capacity currently being
investigated (as discussed below). Gold production at the Masbate
Mine is forecast to be comparable to 2020.
For 2021, the Company's total consolidated cash operating
costs (including forecast cash operating costs from B2Gold's
attributable 33% share of Calibre production) are forecast to be
between $500 - $540 per ounce (compared to 2020 guidance of
between $415 - $455 per ounce) and total consolidated AISC are
forecast to be between $870 -
$910 per ounce (compared to 2020
guidance of between $780 -
$820 per ounce).
The Company's consolidated cash operating costs from
its three operating mines are forecast to be between
$480 - $520 per ounce (compared to 2020 guidance of
between $395 - $440 per ounce) and consolidated AISC are
forecast to be between $860 -
$900 per ounce (compared to 2020
guidance of between $765 -
$805 per ounce). Consolidated AISC
per ounce are expected to increase by approximately 12% in 2021,
mainly due to the planned lower production and higher period
stripping activities at Fekola (partially offset by higher
production at Otjikoto), higher forecast fuel costs, import duties
and ongoing COVID-19 related labour and medical costs in
Mali, and the drawdown of ore
stockpiles at Otjikoto.
Mine-by-mine 2021 ranges (including the Company's
approximate 33% share of Calibre's El Limon and La Libertad mines)
for forecast gold production, cash operating costs per ounce and
AISC per ounce are presented in the tables below.
The Company's consolidated gold production from its three
operating mines is expected to be significantly weighted to the
second half of 2021, due to the planned significant waste stripping
at both the Fekola and Otjikoto Mines in the first half of 2021
(for Phase 5 and Phase 6 of the Fekola Pit, and Phase 3 of the
Wolfshag and Otjikoto Pits). For the first half of 2021,
consolidated gold production is expected to be between 365,000 –
385,000 ounces, which is expected to increase significantly to
between 555,000 – 585,000 ounces during the second half of 2021
(when mining reaches the higher grade portion of Phase 5 of the
Fekola Pit and Phase 3 of the Wolfshag Pit). Based mainly on the
weighting of production and timing of stripping, consolidated cash
operating costs are expected to be between $620 - $660 per
ounce in the first half of 2021, before significantly improving to
between $380 - $420 per ounce during the second half of 2021. In
addition, consolidated AISC are expected to be between $1,040 - $1,080 per
ounce in the first half of 2021, before significantly improving to
between $745 - $785 per ounce during the second half of
2021.
Mine
|
First-Half 2021 Forecast Gold
Production (ounces)
|
Second-Half 2021 Forecast Gold
Production (ounces)
|
Full-year 2021
Forecast Gold
Production (ounces)
|
Fekola
|
220,000 -
230,000
|
310,000 -
330,000
|
530,000 -
560,000
|
Masbate
|
100,000 -
105,000
|
100,000 -
105,000
|
200,000 -
210,000
|
Otjikoto
|
45,000 -
50,000
|
145,000 -
150,000
|
190,000 -
200,000
|
B2Gold Consolidated
(1)
|
365,000 – 385,000
|
555,000 – 585,000
|
920,000 – 970,000
|
|
|
|
|
Equity interest in Calibre
(2)
|
25,000 - 30,000
|
25,000 - 30,000
|
50,000 - 60,000
|
|
|
|
|
Total
|
390,000 – 415,000
|
580,000 – 615,000
|
970,000 – 1,030,000
|
(1)
|
"B2Gold consolidated" forecasts are all presented on
a 100% basis, as B2Gold fully consolidates the results of its
Fekola, Masbate and Otjikoto mines in its consolidated financial
statements (even though it does not own 100% of these
operations).
|
(2)
|
"Equity interest in Calibre" forecasts represent the
Company's approximate 33% indirect share of the operations of
Calibre's El Limon and La Libertad mines. B2Gold applies the equity
method of accounting for its ownership interest in Calibre.
Calibre's 2021 forecast gold production is assumed to occur evenly
over 2021.
|
Mine
|
First-Half 2021 Forecast Cash Operating
Costs ($ per ounce
produced)
|
Second-Half 2021 Forecast Cash Operating
Costs ($ per ounce
produced)
|
Full-year 2021
Forecast Cash Operating
Costs ($ per ounce
produced)
|
Fekola
|
$530 -
$570
|
$315 -
$355
|
$405 -
$445
|
Masbate
|
$670 -
$710
|
$630 -
$670
|
$650 -
$690
|
Otjikoto
|
$940 -
$980
|
$330 -
$370
|
$480 -
$520
|
B2Gold Consolidated
|
$620 - $660
|
$380 - $420
|
$480 - $520
|
|
|
|
|
Equity interest in Calibre
(1)
|
$920 - $1,020
|
$920 - $1,020
|
$920 - $1,020
|
|
|
|
|
Total
|
$640 - $680
|
$400 - $440
|
$500 - $540
|
(1)
|
Calibre's 2021 forecast cash operating costs are
assumed to be consistent throughout 2021.
|
Mine
|
First-Half 2021 Forecast
AISC ($ per ounce sold)
|
Second-Half 2021 Forecast
AISC ($ per ounce sold)
|
Full-year 2021
Forecast AISC ($ per ounce
sold)
|
Fekola
|
$850 -
$890
|
$670 -
$710
|
$745 -
$785
|
Masbate
|
$980 -
$1,020
|
$940 -
$980
|
$955 -
$995
|
Otjikoto
|
$1,600 -
$1,640
|
$580 -
$620
|
$830 -
$870
|
B2Gold Consolidated
|
$1,040 - $1,080
|
$745 - $785
|
$860 - $900
|
|
|
|
|
Equity interest in Calibre
(1)
|
$1,040 - $1,140
|
$1,040 - $1,140
|
$1,040 - $1,140
|
|
|
|
|
Total
|
$1,040 - $1,080
|
$760 - $800
|
$870 - $910
|
(1)
|
Calibre's 2021 forecast AISC are assumed to be
consistent throughout 2021.
|
Fekola Gold Mine - Mali
The low-cost Fekola Mine in Mali is expected to produce between 530,000 -
560,000 ounces of gold in 2021 at cash operating costs of between
$405 - $445 per ounce and AISC of between $745 - $785 per
ounce. Fekola's gold production is forecast to be lower in 2021,
due to waste stripping and lower mined ore grades expected in the
first half of 2021, as Phase 5 and 6 of the Fekola Pit are
developed. However, additional mining areas and processing capacity
are currently being investigated, with the potential to increase
Fekola's budgeted 2021 and long-term gold production. The nearby
Cardinal (located within 500 metres of the current Fekola resource
pit) and Anaconda area (located 20 kilometres north of Fekola)
include both saprolite and hard-rock gold mineralization, with the
potential to begin mining in 2021, subject to obtaining all
necessary permits. Grade control drilling is already underway at a
portion of the Cardinal deposit to enable ore to be mined for
processing at the Fekola mill in the second quarter of 2021. In
addition, mill processing trials conducted in the fourth quarter of
2020 demonstrate the potential to optimize the grind-throughput
capacity of the expanded facility and increase hard-rock throughput
to approximately 8.0 Mtpa, and support the addition of saprolite
ore tonnage in excess of the hard-rock capacity. Fekola's AISC per
ounce are expected to increase in 2021 (compared to 2020 guidance
of $555 - $595 per ounce), mainly due to the planned lower
production and higher period stripping activities at Fekola, and
higher forecast fuel costs, import duties and ongoing COVID-19
related labour and medical costs.
For 2021, the Fekola Mine is budgeted to process a total
of 7.75 million tonnes of ore, at an average grade of 2.32 g/t and
process gold recovery of 94%. With Phase 4 of the Fekola Pit
completed in 2020, ore is scheduled to be sourced from Phase 5 and
6 of the Fekola Pit in 2021 together with existing stockpiles. As a
result of the planned waste stripping and lower mined ore grades in
the first half of 2021, as Phase 5 and 6 of the Fekola Pit are
developed, production is expected to be significantly weighted to
the second half of 2021 (when mining reaches the higher grade
portion of Phase 5 of the Fekola Pit). For the first half of 2021,
Fekola's gold production is expected to be between 220,000 –
230,000 ounces, which is expected to increase significantly to
between 310,000 – 330,000 ounces during the second half of 2021.
Based mainly on the weighting of production and timing of waste
stripping, Fekola's cash operating costs are expected to be between
$530 - $570 per ounce in the first half of 2021, before
significantly improving to between $315 - $355 per
ounce during the second half of 2021. In addition, Fekola's AISC
are expected to be between $850 -
$890 per ounce in the first half of
2021, before significantly improving to between $670 - $710 per
ounce during the second half of 2021.
Sustaining capital costs in 2021 at the Fekola Mine are
budgeted to total $86 million,
including $58 million for
pre-stripping (development of Phase 5 and 6 of the Fekola Pit),
$15 million for mobile equipment
rebuilds and $4 million for pit
dewatering infrastructure and equipment. Non-sustaining capital
costs are budgeted to total $8
million to complete the solar power plant (excluding the
damages related to the fire).
Masbate Gold Mine - the
Philippines
The Masbate Mine in the
Philippines is expected to produce between 200,000 - 210,000
ounces of gold in 2021 at cash operating costs of between
$650 - $690 per ounce and AISC of between $955 - $995 per
ounce (comparable to 2020). For 2021, Masbate is budgeted to
process a total of 8.0 million tonnes of ore at an average grade of
1.10 g/t and process gold recovery of 73.4%. Mill feed is budgeted
to consist primarily of fresh ore (88%), sourced from the Main Vein
Pit (Stage 4 and 6) and the Montana Pit. Masbate's gold production
is scheduled to be relatively consistent throughout
2021.
Sustaining capital costs in 2021 at the Masbate Mine are
budgeted to total $29 million,
including $9 million for mobile fleet
rebuilds and replacements, $5 million
for a tailings water treatment plant, $3
million for pre-stripping and $3
million for power plant rebuilds. Non-sustaining capital
costs are budgeted to total $9
million.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia is expected to produce between 190,000
- 200,000 ounces of gold in 2021, a significant increase of
approximately 16% (compared to 168,041 ounces produced in 2020),
and is in the range of Otjikoto's annual production record (of
191,534 ounces achieved in 2017), as high-grade ore is scheduled to
be sourced from Phase 3 of the Wolfshag Pit in the second half of
2021. Otjikoto's cash operating costs are forecast to be between
$480 - $520 per ounce and AISC to be between
$830 - $870 per ounce. Otjikoto's AISC per ounce are
expected to decrease in 2021 (compared to 2020 guidance of between
$1,010 - $1,050 per ounce), mainly due to higher
production and lower capitalized pre-stripping costs forecast at
Otjikoto in 2021, partially offset by the cost of ore stockpiles
drawn in the year.
For 2021, Otjikoto is budgeted to process a total of 3.4
million tonnes of ore at an average grade of 1.77 g/t with process
gold recovery of 98%. Mining activities are scheduled to focus on
waste stripping in Phase 3 of the Wolfshag Pit and Phase 3 of the
Otjikoto Pit in the first half of 2021. In the first half of 2021,
ore is scheduled to be sourced mainly from medium grade stockpiles,
resulting in an average head grade of approximately 0.87 g/t in the
first half of 2021, compared to a head grade of approximately 2.67
g/t in the second half of 2021 when high grade ore from Phase 3 of
the Wolfshag Pit is available.
The Wolfshag ore zone is narrow and high grade, with pit
and phase strip ratios that result in a highly variable gold
production profile. Approximately 70% of the gold produced in 2021
is expected to be mined from Phase 3 of the Wolfshag Pit, (with
material ore production starting early in the third quarter of 2020
following the waste stripping campaign). As a result of the timing
of this high-grade ore mining, Otjikoto's production is expected to
be significantly weighted to the second half of 2021. For the first
half of 2021, Otjikoto's gold production is expected to be between
45,000 – 50,000 ounces, which is expected to increase significantly
to between 145,000 – 150,000 ounces during the second half of 2021.
Based mainly on the weighting of the planned production and timing
of higher waste stripping, Otjikoto's cash operating costs are
expected to be between $940 -
$980 per ounce in the first half of
2021, before significantly improving to between $330 - $370 per
ounce during the second half of 2021. In addition, Otjikoto's AISC
are expected to be between $1,600 -
$1,640 per ounce in the first half of
2021, before significantly improving to between $580 - $620 per
ounce during the second half of 2021. In the first quarter of 2021,
forecast gold production at Otjikoto is lower and forecast costs
are higher than the second quarter of 2021, due to the significant
amount of waste stripping and lower stockpile grades processed
early in the year.
Otjikoto's higher 2021 gold production level of between
190,000 – 200,000 ounces is expected to continue through to 2024,
as production from Wolfshag underground is expected to commence in
early 2022 and will supplement ore from the Otjikoto Pit as well as
existing medium and low-grade stockpiles for approximately three
years based on current estimates.
Sustaining capital costs in 2021 at the Otjikoto Mine are
budgeted to total $44 million,
including $36 million for capitalized
pre-stripping and $7 million for
mobile equipment rebuilds and equipment purchases. Non-sustaining
capital costs are budgeted to total $33
million, including $26 million
for development of the Wolfshag underground project and
$7 million for a connection to the
national power grid, originally planned for 2020, and delayed due
to COVID-19. The delay in connecting to the national power grid to
2021 is not expected to impact the targeted commissioning date of
the Wolfshag underground mine.
Development of the Wolfshag underground mine continues to
progress well and on schedule. This project is expected to bring
forward production of high-grade ore from the Wolfshag deposit and
reduce production costs. The mine development will also provide
access for down-plunge and parallel exploration and has been
designed to support future expansions. Project spending is
currently estimated to total $57
million (of which $26 million
is budgeted to be incurred in 2021) from completion of the internal
study to production of stope ore. Portal development was completed
in 2020, and activities in 2021 will focus on horizontal and
vertical development to produce stope ore in the first quarter of
2022. The current Wolfshag underground Mineral Reserve estimate
includes 1.2 million tonnes of ore at an average grade of 5.57 g/t,
for a total of 210,000 contained ounces of gold.
2021 Gramalote Project Budget (B2Gold – 50%/AngloGold
Ashanti Limited – 50%) - Colombia
The initial 2021 budget for the Gramalote Project in
Colombia is $52 million (B2Gold's 50% share is $26 million) for the continued development of the
project, along with continued environmental and social activities
supporting local communities. The Gramalote budget also includes
$9 million for exploration in 2021.
This follows a successful infill drill program in 2020 which
supported an updated resource model, providing the basis for
Gramalote's Feasibility Study. A total of 18,000 metres of diamond
drilling is planned in 2021. This includes 8,000 metres for further
drilling at Gramalote Ridge and 10,000 metres at two satellite
deposits (Trinidad and Monjas
West), which are proximal to the planned infrastructure.
Gramalote's 2021 budget includes project development up to
the feasibility completion and construction decision point in the
second quarter of 2021, and therefore does not include early works
or construction costs, such as mobilization and pioneering. A
separate construction budget is expected to be developed for the
second half of 2021, based on a positive Gramalote Feasibility
Study and construction decision.
Kiaka Project Budget - Burkina Faso
The Company is currently updating the existing feasibility
study for the Kiaka Project in Burkina
Faso, due to the potential for improved economics resulting
from lower fuel prices, alternative power options and a higher gold
price. An updated resource model was completed in December 2019, providing the basis for detailed
mining and processing schedules. Initial evaluations have indicated
an optimal processing rate of 12 Mtpa. Engineering of the plant,
infrastructure, open pit, dumps, stockpiles, and the tailing
storage facility are underway. The Company expects to have
completed an updated economic assessment of the project for
internal review completed by the end of the first quarter of 2021,
followed by the updated feasibility study by mid-year 2021. The
2021 budget for the Kiaka Project is $5.4
million.
2021 Exploration Guidance
Following a very successful year for exploration in 2020,
B2Gold is planning another year of aggressive exploration in 2021
with a budget of approximately $66
million (excludes drilling included in the Gramalote Project
budget). Exploration will focus predominantly in Mali, other operating mine sites in
Namibia and the Philippines, as well as expanded focus on
grassroots targets around the world. Many years of target
generation and pursuing opportunities in prospective gold regions
has culminated in the Company allocating a record $25 million for its grassroots exploration
programs, including a number of new regions.
West African Exploration
In 2021, approximately $27
million is budgeted to be spent on exploration in
Mali, focusing on the Anaconda
area, Cardinal/FMZ and Fekola North. A total of 98,500 meters of
diamond and reverse circulation drilling is planned.
The Company plans to continue focusing on upgrading and
expanding the existing saprolite Mineral Resource estimate of 21.6
million tonnes at 1.11 g/t for 770,000 ounces in the Anaconda area.
An updated saprolite Mineral Resource estimate based on the
completed 2020 drill program is expected in the first quarter of
2021 and will feed into engineering studies currently underway.
This estimate will also include an initial Mineral Resource
estimate on the sulphide material below the saprolite. This
sulphide mineralization will continue to be followed up in 2021.
There are several other prospects in the Anaconda area where
possible Fekola-style mineralization has been intersected in fresh
rock which will be drilled in 2021.
Closer to Fekola, an initial Mineral Resource estimate for
Cardinal is expected to be completed in the first quarter of 2021.
Grade control drilling is underway at a portion of this deposit to
enable ore to be mined for processing at the Fekola plant in the
second quarter of 2021, subject to obtaining all necessary permits.
Ongoing exploration drilling will also focus on infilling the
high-grade portions of Cardinal and extend these down plunge.
Drilling at Fekola North will also continue to track the main
Fekola structure north of the existing open pit.
A total of $2.5 million is
planned in other areas of West
Africa, leveraging off the considerable geological
experience gained at Fekola. This budget includes establishing an
exploration presence and pursuing opportunities in the highly
prospective and under-explored country of Cote d'Ivoire.
Masbate Exploration
The Masbate exploration budget for 2021 is approximately
$6.3 million, including approximately
15,000 metres of drilling. The 2021 exploration program will follow
up where 2020 drilling intersected higher grades in previously
low-grade areas that had been sparsely drilled. It will also focus
on drill testing the most prospective inferred mineral resource
areas below existing design pits to determine if existing open pits
can be expanded as a result of higher gold prices. Several
grassroot greenfield targets will be further tested as
well.
Namibia Exploration
The total exploration budget for Namibia in 2021 is approximately $4.8 million. Exploration in 2021 will include
25,000 metres of diamond drilling and 3,200 metres of RAB drilling
split between Otjikoto Project and the Ondundu joint venture,
located approximately 200 kilometres southwest of Otjikoto. The
majority of the diamond drilling will target the extension of the
existing Wolfshag underground resource area and a lone drillhole
intersection more than 700 metres down plunge. Several new zones
located parallel to and east of Wolfshag with the potential to
enhance the underground project will also be tested.
Grassroots Exploration
B2Gold has allocated approximately $25 million in 2021 for its grassroots
exploration programs, including Finland, Uzbekistan and a number of new
regions.
In Finland, the Company
has allocated $4.8 million to the
Central Lapland joint Venture with Aurion
Gold. Most significantly, the westward extension of Rupert
Resources' Ikarri discovery trends directly onto the joint venture
ground. This trend coincides with B2Gold's base-of-till (BOT)
drilling and the same interpreted structure as defined by airborne
geophysics.
In Uzbekistan, the
Company has allocated $5 million to
advance exploration on the ground acquired in proximity to the
world class Muruntau super-mine. Exploration in 2020, mapping, RAB
drilling and trenching identified multiple targets on structures
and lithologies that have the same alteration and geochemical
characteristics as Muruntau. Reverse circulation and diamond
drilling are planned in 2021.
In addition, the Company has allocated approximately
$15 million for several other
greenfield targets currently being pursued.
Liquidity and Capital Resources
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. In addition, at December 31,
2020, the Company had cash and cash equivalents of
approximately $480
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), one of the
highest dividend yields in the gold sector.
The Company has not yet finalized its 2020 financial
results. However, for the year ended December 31, 2020, the Company expects to have
generated cashflows from operations of approximately $950 million.
In 2021 and based on current assumptions including an
average gold price of $1,800 per
ounce, the Company expects to generate cashflows from operating
activities of approximately $630
million. The Company's 2021 operating cashflows are expected
to be lower than 2020, mainly due to lower production, higher cash
operating costs and higher cash tax payments (mainly for Fekola,
for the expected settlement of its remaining 2020 income tax
liabilities of approximately $75
million at the time of filing its tax return in April 2021 and for the payment of the 2020
priority dividend to the Mali
government of approximately $50
million expected in mid-year 2021).
Environmental, Social and Governance
Commitment
B2Gold is committed to delivering positive impacts in
environmental, social and governance ("ESG") with our many
stakeholders. In 2020, in Mali,
Namibia, the Philippines, Colombia and Canada, B2Gold provided approximately
$4 million in financial assistance to
the local communities and the local and national authorities,
including Cdn. $1 million in the
Vancouver area, in response to the
COVID-19 pandemic. We continue to monitor COVID-19 across all our
operations and work to ensure the health and safety of our
employees and communities.
B2Gold was selected as the recipient of two prestigious
mining industry awards in 2020 for its commitment to sustainable
mining and development: the Prospectors & Developers
Association of Canada's "2021
Sustainability Award" and the Mining Journal's "2020 Most
Sustainable Miner Award". B2Gold is honoured and challenged by this
recognition to work to continuously improve our performance and
maintain our social license to operate.
B2Gold is pleased to announce that in 2021 it plans to
apply for membership to the World Gold Council. The World Gold
Council is the global authority on the gold market comprised of the
world's leading gold mining companies. The World Gold Council is
also a leader in responsible mining through its Responsible Gold
Mining Principles, a comprehensive framework that addresses key
environmental, social and governance issues for the gold mining
sector.
More information on B2Gold's ESG management and
performance, as well as its safety performance and economic
contributions across its operations can be found in the Company's
annual responsible mining report, "Raising the Bar".
Outlook
B2Gold had another remarkable year of strong growth in
2020, marking the twelfth consecutive year of record annual gold
production. The Company's total gold production for 2020 was an
annual record of 1,040,737 ounces, and consolidated gold production
from the Company's three operating mines was an annual record of
995,258 ounces of gold. 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), one of the
highest dividend yields in the gold sector.
Looking forward to 2021, B2Gold remains well positioned
for continued strong operational and financial performance with
total gold production guidance of between 970,000 - 1,030,000
ounces in 2021, total consolidated cash operating costs forecast to
be between $500 - $540 per ounce and total consolidated AISC
forecast to be between $870 -
$910 per ounce. The Company's
consolidated gold production from its three operating mines is
forecast to be between 920,000 – 970,000 ounces in 2021 (consistent
with the Company's five-year outlook from 2020 to 2024 for annual
consolidated gold production, expected to average 950,000 ounces
with AISC averaging $825 per ounce,
based on current operating plans). The Company's 2021 production
guidance does not, however, include the potential upside to
increase Fekola's gold production in 2021 from additional mining
areas and processing capacity currently being
investigated.
In connection with advancing the Company's pipeline of
development projects, the Company expects to announce the results
of the Feasibility Study for the Gramalote Project in Colombia in April
2021, with a construction decision expected to be made
shortly thereafter. 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). The Company is currently updating the existing feasibility
study for the Kiaka Project in Burkina
Faso, due to the potential for improved economics resulting
from lower fuel prices, alternative power options and a higher gold
price. The Company expects to have completed an updated economic
assessment of the Kiaka Project by the end of the first quarter of
2021 for internal review, followed by the updated feasibility study
by mid-year 2021.
Following a very successful year for exploration in 2020,
B2Gold is planning a year of aggressive exploration in 2021 with a
budget of approximately $66 million
(excluding Gramalote). Exploration will focus predominantly in
Mali, other operating mine sites
in Namibia and the Philippines, including a record
$25 million allocated to the
Company's ongoing grassroots exploration programs around the
world.
The Company is focused on upgrading and expanding the
existing saprolite resources at the Anaconda area in Mali (located 20 kilometres north of Fekola),
with an updated mineral resource estimate expected in the first
quarter of 2021, which will feed into engineering studies currently
underway. This resource estimate will also include the initial
mineral resource estimate on the sulphide material below the
saprolite. There are several other prospects in the Anaconda area
where possible Fekola-style mineralization has been intersected in
fresh rock which will be drilled in 2021.
An initial mineral resource estimate is expected to be
completed for the Cardinal zone (located within 500 metres of the
current Fekola resource pit) in the first quarter of 2021, and
grade control drilling is already underway at a portion of this
deposit to enable ore to be mined for processing at the Fekola
plant in the second quarter of 2021. Ongoing exploration drilling
will also focus on infilling the high-grade portions of the
Cardinal zone and extend these down plunge. Drilling at Fekola
North will also continue to track the main Fekola structure north
of the existing open pit.
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.
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, Colombia and Burkina
Faso. B2Gold forecasts total consolidated gold production of
between 970,000 and 1,030,000 ounces in 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.
Fourth Quarter and Year-end 2020 Financial Results -
Conference Call Details
B2Gold will release its fourth quarter and year-end 2020
financial results after the North American markets close on
Tuesday, February 23,
2021.
B2Gold executives will host a conference call to discuss
the results on Wednesday, February 24,
2021, at 10:00 am
PDT/1:00 pm EDT. You may
access the call by dialing the operator at +1 (647) 427-7450 (local
or international) 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/1493/39662. 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 9676547).
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: B2Gold generating operating
cashflows of approximately $950
million in 2020 and $630
million in 2021; remaining well positioned for continued
strong operational and financial performance for 2021; projected
gold production, cash operating costs and AISC on a consolidated
and mine by mine basis in 2021, including production being weighted
heavily to the second half of 2021; total consolidated cash
operating costs for 2020 being between $415 and $455 per
ounce and at AISC of between $780 and
$820 per ounce; total consolidated
gold production of between 970,000 and 1,030,000 ounces in 2021
with cash operating costs of between $500 and $540 per
ounce and AISC of between $870 and
$910 per ounce; the Company' annual
consolidated gold production to average 950,000 ounces of gold per
year between 2020 and 2024 with AISC averaging $825 per ounce; the ability of the Fekola mill to
run above the annualized throughput rate of 7.5 Mtpa; the
anticipated cost, timing and results for the addition of a solar
plant to the Fekola Mine, including the completion of construction
by the end of the third quarter of 2021, contingent on receiving
replacements for the damaged components; the completion of an
updated mineral resource estimate for the Anaconda area in the
first quarter of 2021; the completion of an initial mineral
resource estimate on the Cardinal zone in 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 in the second quarter of 2021 and the results
therein, and a construction decision to be made shortly thereafter;
the completion of an internal economic assessment of the Kiaka
project by the end of the first quarter of 2021 and updated
feasibility study by mid-year 2021; the settlement in 2021 of the
Company's remaining 2020 income tax liabilities of approximately
$75 million (at the time of filing
its tax return in April 2021) and for
the payment of the 2020 priority dividend to the Mali government of approximately $50 million expected in mid-year 2021; 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.
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content:http://www.prnewswire.com/news-releases/b2gold-reports-strong-q4-2020-total-gold-production-of-270-469-oz-record-annual-total-gold-production-of-1-040-737-oz-and-2021-total-gold-production-guidance-of-970-000---1-030-000-oz-301212021.html
SOURCE B2Gold Corp.