VANCOUVER, Jan. 15, 2020 /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 2019, in addition to
its production and budget guidance for 2020. All dollar figures are
in United States dollars unless
otherwise indicated.
2019 Gold Production and Revenue Highlights
- Fourth quarter consolidated gold production of 234,416 ounces
(including 6,010 ounces from discontinued
operations)(1) or 245,140 ounces (including
10,724 ounces relating to B2Gold's attributable share of ounces
from Calibre)(2)
- Fourth quarter consolidated gold revenues from continuing
operations of $314 million on sales
of 211,800 ounces; consolidated gold revenues (see "Non-IFRS
Measures") of $324 million on
sales of 218,437 ounces, including gold sales from the discontinued
operations
- Record annual consolidated gold production of 969,495 ounces
(including 118,379 ounces from discontinued operations) or 980,219
ounces (including 10,724 ounces relating to B2Gold's attributable
share of ounces from Calibre), which exceeded the upper end of the
Company's guidance range (of between 935,000 and 975,000 ounces),
and marks the eleventh consecutive year that B2Gold achieved record
annual consolidated gold production
- Annual gold production from the Fekola Mine, Masbate Mine and
Otjikoto Mine all exceeded the upper end of their 2019 production
guidance ranges
- Annual consolidated gold revenues from continuing operations of
$1,156 million on sales of 827,800
ounces; annual consolidated gold revenues (see "Non-IFRS
Measures") of $1,318 million on
sales of 943,465 ounces, including gold sales from discontinued
operations
- Consolidated cash costs (see "Non-IFRS Measures") are
projected to remain low for 2019 with cash operating costs forecast
to be at or below the lower end of the Company's $520 and $560 per
ounce guidance range and all-in sustaining costs ("AISC") (see
"Non-IFRS Measures") to be within the Company's $835 and $875 per
ounce guidance range
- In December 2019, the Fekola Mine
exceeded one million ounces of gold production (since the
commencement of ore processing began in September 2017), achieving this milestone a full
year ahead of the original production schedule (2015 Technical
Report)
- B2Gold is also pleased to announce the appointment of Ms.
Liane Kelly to its Board of
Directors effective January 1,
2020
2020 Budget Highlights
- For 2020, B2Gold remains well positioned for continued strong
operational and financial performance with production guidance of
between 1,000,000 and 1,055,000 ounces of gold (including
attributable ounces of between 45,000 and 50,000 from Calibre) with
forecast cash operating costs of between $415 and $455 per
ounce and AISC of between $780 and
$820 per ounce
- The Fekola Mine expansion project to increase Fekola's
processing throughput by 1.5 million tonnes per annum ("Mtpa") to
7.5 Mtpa from an assumed base rate of 6 Mtpa is scheduled to be
completed by the end of the third quarter of 2020
- New large-scale off-grid Fekola solar plant project is
scheduled for completion in August
2020; expected to provide significant operating cost
reductions (estimated to reduce Fekola's processing costs by
approximately 7%)
- B2Gold plans to complete a final feasibility study for the
joint venture Gramalote Gold Project in Colombia by December 31, 2020
- Following a very successful year for exploration in 2019,
B2Gold is planning another year of aggressive exploration in 2020
with a budget of approximately $51
million
- Based on current assumptions, including a gold price of
$1,500 per ounce, the Company expects
to generate cashflows from operating activities of approximately
$700 million in 2020 and to repay the
remaining outstanding balance of its revolving credit facility
("RCF") of $200 million during the
year
(1)
|
On October 15,
2019, B2Gold and Calibre Mining Corp. ("Calibre") completed the
transaction for B2Gold to restructure its interests in, and for
Calibre to acquire, the El Limon and La Libertad mines.
Accordingly, for the period to October 15, 2019, for financial
reporting purposes, the Company has classified the El Limon and La
Libertad mines' production and results as discontinued
operations.
|
(2)
|
Commencing from
October 15, 2019, B2Gold applies the equity method of accounting
for its ownership interest in Calibre (approximately 34%) and
reports its attributable share of Calibre production ounces as part
of its total production results.
|
2019 Gold
Production
Mine-by-mine gold production (ounces) in the fourth quarter and
full-year 2019 was as follows:
Mine
|
Q4
2019 Gold
Production (ounces)
|
Full-year
2019 Gold
Production (ounces)
|
Revised Annual Guidance Gold Production
(ounces)
|
Original Annual Guidance Gold Production
(ounces)
|
Fekola
|
119,243
|
455,810
|
445,000 -
455,000
|
420,000 -
430,000
|
Masbate
|
50,741
|
217,340
|
200,000 -
210,000
|
200,000 -
210,000
|
Otjikoto
|
58,422
|
177,966
|
165,000 -
175,000
|
165,000 -
175,000
|
From Continuing
Operations
|
228,406
|
851,116
|
810,000 -
840,000
|
785,000 -
815,000
|
La Libertad
|
2,914
|
71,091
|
73,000 -
77,700
|
95,000 -
100,000
|
El Limon
|
3,096
|
47,288
|
41,800 -
46,100
|
55,000 -
60,000
|
From Discontinued
Operations (1)
|
6,010
|
118,379
|
114,800 -
123,800
|
150,000 -
160,000
|
|
|
|
|
|
B2Gold Consolidated
(2)
|
234,416
|
969,495
|
924,800 -
963,800
|
935,000 -
975,000
|
|
|
|
|
|
Equity interest
in Calibre (3)
|
10,724
|
10,724
|
10,200 -
11,200
|
-
|
|
|
|
|
|
Total
|
245,140
|
980,219
|
935,000 -
975,000
|
935,000 -
975,000
|
|
|
(1)
|
"Discontinued
Operations" includes El Limon's and La Libertad's gold production
for the period from January 1, 2019 to the date of their sale on
October 15, 2019.
|
(2)
|
"B2Gold
consolidated" production and guidance are presented on a 100%
basis.
|
(3)
|
"Equity interest
in Calibre" represents the Company's (approximate 34%) indirect
share of production from Calibre's El Limon and La Libertad mines
for the stub period from October 15, 2019 to December 31, 2019.
B2Gold applies the equity method of accounting for its 34%
ownership interest in Calibre.
|
Consolidated cash costs are projected to remain low for 2019
with cash operating costs forecast to be at or below the lower end
of the Company's $520 and
$560 per ounce guidance range and
AISC to be within the Company's $835
and $875 per ounce guidance range.
B2Gold will release its 2019 year-end consolidated financial
statements after the North American markets close on February 27, 2020. Details of the consolidated
cash operating costs per ounce and AISC per ounce will be
included.
2020 Production Outlook and Cost Guidance
In 2020, B2Gold remains well positioned for continued strong
operational and financial performance with consolidated gold
production forecast to be in the range of between 955,000 and
1,005,000 ounces. Including the Company's 34% share of attributable
ounces projected from Calibre's El Limon and La Libertad mines (of
between 45,000 and 50,000 ounces), the Company's total gold
production is expected to be between 1,000,000 and 1,055,000 ounces
in 2020. Gold production in 2020 is anticipated to be
marginally weighted towards the second-half of the year
(52%).
With higher gold production forecast for 2020, continued cost
controls and the sale of the Company's higher-cost Nicaraguan mines
completed, the Company's consolidated cash operating costs per
ounce and AISC per ounce are both projected to further decrease in
2020 (compared to 2019 guidance). The Company's consolidated cash
operating costs are forecast to decrease significantly in 2020 and
be between $415 and $455 per ounce (including forecast cash operating
costs from B2Gold's attributable 34% share of Calibre production),
approximately 19% lower than the Company's 2019 guidance range (of
between $520 and $560 per ounce). The Company's consolidated AISC
are forecast to be between $780 and
$820 per ounce (including forecast
AISC from B2Gold's attributable 34% share of Calibre production),
approximately 6% lower than the Company's 2019 guidance range (of
between $835 to $875 per ounce).
Mine-by-mine 2020 ranges (including the Company's 34% share
of Calibre's El Limon and La Libertad mines) for forecast gold
production, cash operating costs per ounce and AISC per ounce
are as follows:
Mine
|
2020
Forecast Gold
Production (ounces)
|
2020
Forecast Cash Operating
Costs ($ per
ounce)
|
2020
Forecast AISC ($
per ounce)
|
Fekola
|
590,000 -
620,000
|
$285 - $325
|
$555 - $595
|
Masbate
|
200,000 -
210,000
|
$665 - $705
|
$965 -
$1,005
|
Otjikoto
|
165,000 -
175,000
|
$480 - $520
|
$1,010 -
$1,050
|
B2Gold
Consolidated (1)
|
955,000 –
1,005,000
|
$395 -
$440
|
$765 -
$805
|
|
|
|
|
Equity interest
in Calibre (2)
|
45,000 -
50,000
|
$720 -
$760
|
$1,020 -
$1,060
|
|
|
|
|
Total
|
1,000,000 –
1,055,000
|
$415 -
$455
|
$780 -
$820
|
|
|
(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 34% indirect share of
the operations of Calibre's El Limon and La Libertad mines. B2Gold
applies the equity method of accounting for its 34% ownership
interest in Calibre.
|
Fekola Gold Mine - Mali
The low-cost Fekola Mine is forecast to produce between 590,000
and 620,000 ounces of gold in 2020, a significant increase of 33%
(approximately 150,000 ounces) over 2019. Gold production is
forecast to be marginally weighted to the second half of the year
(52%) and be relatively consistent throughout the year, even though
the expansion of the Fekola processing plant is not scheduled to be
completed until the end of the third quarter of 2020. The
consistent production throughout the year is mainly due to the
expansion of the Fekola mining fleet and optimization of the mining
sequence early in the year which will provide access to higher
grade portions of the deposit earlier on in the sequence. When the
mill expansion comes into service, lower grade ore is expected to
be processed (rather than being stockpiled) during the second half
of the year.
With the significant increase in gold production forecast for
2020 (as well as the planned impact of the new Fekola solar plant
once construction is completed), Fekola's cash operating costs are
forecast to significantly decline and be between $285 and $325 per
ounce (approximately 22% below its 2019 guidance range of between
$370 and $410 per ounce). Fekola's AISC are also forecast
to decline and be between $555 and
$595 per ounce (approximately 11%
below its 2019 guidance range of between $625 and $665 per
ounce).
In 2020, the Fekola Mine is budgeted to process a total of 6.84
million tonnes of ore at an average grade of 2.91 grams per tonne
("g/t") and process gold recovery of 93.8%.
Sustaining capital costs in 2020 at the Fekola Mine are budgeted
to total $77 million, including
$46 million for pre-stripping
(relating to Phases 5 and 6 of the Fekola Pit), $12 million for mobile equipment rebuilds and
$8 million for a tailings facility
expansion. The tailings facility expansion is a double raise
and will provide tailings storage capacity through 2022.
Non-sustaining capital costs total $105
million, including $51 million
to expand the mining fleet (of which $40
million is expected to be funded by equipment loans),
$25 million to expand the processing
facilities, and $21 million to
construct a solar power plant.
The Fekola Mine expansion project to increase Fekola's
processing throughput by 1.5 million Mtpa to 7.5 Mtpa from an
assumed base rate of 6 Mtpa is scheduled to be completed by the end
of the third quarter of 2020. 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 of operability. The mining rate at Fekola will also be
increased, along with additional mining equipment to accelerate the
supply of higher-grade ore to the expanded processing facilities.
Construction of the processing expansion commenced in October 2019 and is expected to be completed by
the end of the third quarter of 2020. Mining fleet expansion
equipment has started to arrive on site ahead of schedule, with one
excavator and two haul trucks expected to enter service in
January 2020.
The Fekola solar plant engineering and construction progressed
well in the second half of 2019 and remains within budget and on
schedule for completion in the third quarter of 2020. The
Fekola solar plant will be one of the largest off-grid hybrid
solar/Heavy Fuel Oil ("HFO") plants in the world with a 30 Megawatt
("MW") solar component combined with 64 MW of HFO and diesel
generating capacity. The solar plant will also have a 15.4 MW
hour battery component with up to 17.3 MW of discharge
power. The project has a four-year payback and is estimated to
reduce processing costs by over 7%. HFO consumption is estimated to
be reduced by approximately 13.1 million litres per year,
eliminating approximately 39,000 tonnes per year of carbon dioxide
emissions.
Further details of the Fekola pit design, production schedule,
and costs will be included in B2Gold's Annual Information Form to
be filed by March 30, 2020, and in a
Technical Report to be filed concurrently.
Masbate Gold Mine - the
Philippines
In 2020, the Masbate Mine is expected to produce between 200,000
and 210,000 ounces of gold. Gold production is scheduled to be
weighted towards the second half of the year (54%), as mined grade
from the new Montana Pit is expected to be higher in the second
half of the year. Masbate's cash operating costs are forecast to be
between $665 to $705 per ounce, approximately 6% higher than its
2019 guidance (of between $625 to
$665 per ounce). Masbate's AISC are
forecast to be between $965 to
$1,005 per ounce, approximately 12%
higher than its 2019 guidance (of between $860 to $900 per
ounce), reflecting higher budgeted costs for processing, mobile
equipment rebuilds and exploration (see "2020 Exploration Guidance"
section).
In 2020, Masbate is budgeted to process a total of 8.2 million
tonnes of ore at an average grade of 1.01 g/t and process gold
recovery of 76.3%. Mill feed is budgeted to consist primarily of
fresh ore (86%), sourced from the Main Vein Pit (Stages 4, 5 and 7)
(78%) and from the Montana Stage 1 Pit (22%).
Sustaining capital costs in 2020 at the Masbate Mine are
budgeted to total $28 million,
including $10 million for
pre-stripping, $9 million for mobile
fleet rebuilds and replacements, and $3
million for power plant rebuilds. Non-sustaining capital
costs are budgeted to total $5
million.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine is forecast to produce between 165,000 and
175,000 ounces of gold in 2020, from the Otjikoto and Wolfshag
Pits. Gold production is scheduled to be consistent throughout the
year, as high-grade ore from the Wolfshag Pit is blended with
medium-grade ore from the Otjikoto Pit. Otjikoto's cash operating
costs are forecast to be between $480
and $520 per ounce, a reduction of
approximately 7% compared to its 2019 guidance range (of between
$520 and $560 per ounce). Otjikoto's AISC are forecast to
be between $1,010 to $1,050 per ounce, approximately 11% higher than
its 2019 guidance range (of between $905 and $945 per
ounce), mainly due to higher budgeted pre-stripping sustaining
capital costs (relating to Phase 3 of the Otjikoto Pit and Phase 3
of the Wolfshag Pit).
In 2020, Otjikoto is budgeted to process a total of 3.4 million
tonnes of ore at an average grade of 1.55 g/t and process gold
recovery of 98%. The Wolfshag Pit will be the primary ore source
(accounting for 65% of the high-grade and medium-grade ounces due
to higher grades).
Sustaining capital costs in 2020 at the Otjikoto Mine are
budgeted to total $70 million,
including $57 million for
pre-stripping and $11 million for
mobile equipment rebuilds and equipment purchases. Non-sustaining
capital costs total $25 million,
including $18 million for initial
development of the Wolfshag Underground project and $7 million for a connection to the national power
grid.
In December 2019, the B2Gold Board
of Directors approved the development of the Wolfshag Underground
Mine. This project will bring forward production of high-grade ore
from the Wolfshag orebody 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 $18
million is budgeted to be incurred in 2020) from completion
of the internal study to production of stope ore. Portal
development is expected to begin in the third quarter of 2020 with
initial stope ore production in the first quarter of 2022. Further
details will be included in B2Gold's Annual Information Form to be
filed by March 30, 2020.
2020 Gramalote Joint Venture Budget
Based on an amended and restated shareholders agreement with
Anglogold Ashanti ("AngloGold"), on January
1, 2020 B2Gold became the operator of the joint venture
Gramalote Gold Project in Colombia. Under the terms of the
agreement, B2Gold will sole fund the first $13.9 million of expenditures on the
Gramalote Project (the "Sole Fund Amount"), following which B2Gold
will hold a 50% ownership interest in the joint venture (B2Gold
currently holds a 48.3% interest). Both joint venture partners will
continue to have equal representation on the joint venture
management committee. Following the expenditure of the Sole Fund
Amount, each joint venture partner will fund its share of
expenditures pro rata.
The 2020 budget for the project is $37.4
million and under the terms of the agreement B2Gold will
fund $25.7 million (including the
Sole Fund Amount). The budget will fund 42,500 metres of infill
drilling and 7,645 metres of geotechnical drilling for site
infrastructure. The purpose of the infill drilling is to confirm
and upgrade the Inferred Mineral Resources to Indicated status and
is expected to be completed by the end of May 2020. The budget will also fund additional
feasibility work including an updated Mineral Resource estimate,
detailed mine planning, additional environmental studies,
metallurgical test work, engineering and detailed economic
analysis.
B2Gold plans to announce the results of a Preliminary Economic
Assessment for the Gramalote Project within the week of
January 20, 2020 and to complete a
final feasibility study by December 31, 2020. With prior
testing programs that have been completed and the high level of
engineering performed in 2017 for an internal pre-feasibility
study, the engineering work remaining to get to final feasibility
is not extensive.
The Environmental Impact Study and Project Implementation Plans
for the Gramalote Project have been fully approved by the National
Authority of Environmental Licenses of Colombia. Due to the desired modifications to
the processing plant and infrastructure locations, a Modified
Environment Impact Study and a Modified Project Implementation plan
were submitted and are currently in the final approval process. If
the final economics of the feasibility study are positive and the
joint venture makes the decision to develop Gramalote as an
open-pit gold mine, B2Gold would utilize its proven internal mine
construction team to build the mine and mill facilities.
2020 Exploration Guidance
Following a very successful year for exploration in 2019 (the
Company intends to announce an updated Fekola Mineral Resource
Statement later this week), B2Gold is planning another year of
aggressive exploration in 2020 with a budget of approximately
$33 million (excludes drilling
included in the Gramalote joint venture budget). Exploration will
once again focus predominantly in West
Africa, as well as the other operating mine sites in
Namibia and the Philippines. The Company has also
allocated an additional $18 million
for its grassroots exploration programs for a total exploration
budget of $51 million for 2020.
Mali Exploration
In 2020, approximately $18 million
is budgeted to be spent on exploration in Mali. The Company plans to focus on expanding
the main Fekola deposit to the north and test several near mine
potential open pit targets such as Fekola South, Cardinal, FNZ and
Kingfisher structures with an allocation of approximately 20,000
metres of drilling. In January 2020,
drilling recommenced in Mali.
In 2020, the Company has also budgeted approximately 41,000
metres of diamond drilling and RC drilling on several zones in the
Anaconda Area, located
approximately 20 kilometres from Fekola. Exploration will focus on
increasing the known saprolite resources at the Adder and Mamba
zones and further testing the underlying sulphide mineralization at
the Mamba zone. At Adder, drilling has extended the strike extent
of mineralization up to 1 kilometre north of the known resource
area. At Mamba, recent drilling has extended the high-grade
mineralized saprolite zone by approximately 600 metres, resulting
in more than 1 kilometre of known strike length, and has led to the
discovery of a continuous bedrock sulphide zone down plunge of the
Mamba zone's saprolite mineralization. This Fekola-style,
south-plunging body of sulphide mineralization remains open down
plunge and will be the subject of extensive drilling in 2020.
Masbate Gold Mine - the
Philippines
The Masbate exploration budget for 2020 is approximately
$8 million, including approximately
25,000 metres of diamond and RC drilling. The 2020 exploration
program will focus on drill testing the most prospective inferred
mineral resources below existing design pits to determine if
existing open pits can be expanded. Several grassroot greenfield
targets that have seen variable exploration and drilling will be
further tested with mapping, trenching and drilling as well.
Namibia Exploration
The total exploration budget for Namibia in 2020 is $4
million. Exploration in 2020 will include 19,500 metres of
diamond drilling and 3,300 metres of RAB drilling split between the
Otjikoto Project and the Ondundu joint venture, located
approximately 200 kilometres southwest of Otjikoto. The majority of
the diamond drilling will be allocated towards testing the Wolfshag
zone and near Wolfshag open pit and underground targets.
Grassroots Exploration
B2Gold has allocated $18 million
dollars on several exploration ventures around the world in
jurisdictions and geologic environments that B2Gold believes
warrant a commitment of exploration expertise and dollars to
determine if the projects have resource potential.
Liquidity and Capital Resources
Based on current assumptions, including a gold price of
$1,500 per ounce, the Company expects
to generate cashflows from operating activities of approximately
$700 million in 2020.
At December 31, 2019, the Company
had total long-term debt of approximately $260 million outstanding, composed of
$200 million drawn under the RCF with
the balance of $60 million relating
to equipment loans. The Company expects to repay the remaining
$200 million of the outstanding RCF
balance in 2020, leaving the Company the full amount of the
facility of $600 million as undrawn
and available by the end of the year. During fiscal 2020, the
Company expects to draw down an additional $40 million of funding under its mining fleet
loans related to the Fekola expansion fleet and repay approximately
$29 million of principal under its
existing mining fleet loans over the course of the year.
In the fourth quarter of 2020, the Company will receive the
final cash installment ($10 million)
and final working capital proceeds ($5
million) payments from Calibre related to the disposal of
the Nicaraguan operations in late 2019.
As part of the Company's long-term strategy to maximize
shareholder value, in the fourth quarter of 2019, B2Gold's Board of
Directors declared its first dividend of $0.01 per common share, and expects to declare
future dividends quarterly at the same level (which on an
annualized basis would amount to $0.04 per common share), subject to authorization
of the Board of Directors and all applicable laws.
Outlook
The Company's ongoing strategy is to continue to maximize
profitable production from its mines, reduce debt, expand the
Fekola Mine throughput and annual production, further advance its
pipeline of development and exploration projects and evaluate
exploration opportunities.
Ms. Liane Kelly Appointed to B2Gold's Board of
Directors
Ms. Kelly is a professional engineer and international
development specialist with over 25 years' experience in the mining
sector in a cross-functional capacity. Initially working in mineral
exploration, Ms. Kelly acted as a consultant to various global
mining companies in Africa, and
North and South America. Her
experience includes executive and Board of Director roles for both
private and not-for-profit organizations and she has been the
founder of NGO and consulting organizations. Ms. Kelly currently
advises mining companies on business risks and strategies related
to sustainability and corporate responsibility issues.
Ms. Kelly has been consultant for B2Gold since 2011 in the
capacity of a Corporate Social Responsibility ("CSR") professional.
She is currently the Company's corporate social responsibility
advisor with specific expertise in social risk management and
developing effective CSR and community investment strategies and
programs. She has been responsible for B2Gold's sustainability
reporting since 2016.
Ms. Kelly holds a Bachelor of Science in Engineering Physics
degree from Queen's University, a postgraduate Certificate in
International Development with a focus on sustainability in mining
from the University of British
Columbia, and a Company Directors Diploma through the
Australian Institute of Company Directors. She is a member of the
Institute of Corporate Directors (ICD) of Canada, the Prospectors & Developers
Association of Canada and is a
registered professional engineer in Ontario.
Ms. Kelly's extensive background and experience in the mining
industry, social risk management and CSR strategies will be an
important contributor to B2Gold's commitment to high standards of
responsible mining.
About B2Gold
Headquartered in Vancouver,
Canada, B2Gold is the world's new senior gold producer.
Founded in 2007, today, B2Gold has three operating gold mines and
numerous exploration and development projects in various countries
including Mali, the Philippines, Namibia and Colombia. B2Gold also has a 34% ownership
interest in Calibre (which indirectly holds two mines in
Nicaragua). In 2020, B2Gold
forecasts consolidated gold production of between 1,000,000 and
1,055,000 ounces.
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.
Tom Garagan, Senior Vice
President of Exploration of B2Gold, a qualified person under NI
43-101, has approved the scientific and technical information
regarding exploration matters contained in this news release.
Fourth Quarter and Year-End 2019 Financial Results –
Conference Call / Webcast Details
B2Gold will release its fourth quarter and year-end 2019
financial results after the North American markets close on
Thursday, February 27,
2020.
B2Gold executives will host a conference call to discuss the
results on Friday, February 28,
2020, at 10:00 am
PST/1:00 pm EST. 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.webcaster4.com/Webcast/Page/1493/32857.
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 9581203).
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
Vice President, Investor Relations
604-681-8371
imaclean@b2gold.com
Katie Bromley
Manager, Investor Relations & Public Relations
604-681-8371
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 the total production at the mines B2Gold
operates on a 100% basis. Please see our Annual Information Form,
dated March 19, 2019 for a discussion
of our ownership interest in the mines B2Gold operates. In respect
of La Libertad and El Limon, production is presented on a 100%
basis for the period to October 15,
2019 and on a 34% attributed basis (to reflect B2Gold's
approximate current ownership interest in Calibre)
thereafter.
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 for 2019 and 2020, and budgets; statements
regarding 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: 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;
B2Gold generating operating cashflows of approximately $700 million in 2020; the estimated tax payments
in 2019 and 2020 and the estimated Fekola 2019 priority dividend
and 2020 corporate tax installments; the repayment of the RCF in
2020 and the availability of the facility; the amount of additional
drawdowns under equipment loans; B2Gold remaining well positioned
for continued strong operational and financial performance for the
full-year of 2020; projected gold production, cash operating costs
and AISC on a consolidated and mine by mine basis in 2020,
including total consolidated gold production of between 1,000,000
and 1,055,000 ounces in 2020 with forecast cash operating costs of
between $415 and $455 per ounce and AISC of between $780 and $820 per
ounce in 2020; cash operating costs forecast to be at
the lower end of the Company's guidance range and AISC to be within
the Company's guidance range in 2019; the completion of the
expansion at Fekola and the timing and results thereof; the
anticipated cost, timing, payback and results for the addition of a
solar plant to the Fekola Mine; projected decreases in cash costs
and AISC at Fekola; the announcement of an updated
mineral resource statement at Fekola later this week; the scheduled
commencement of operations at the Montana Pit at the
Masbate Mine in February
2020; the development of the Wolfshag underground mine at
Otjikoto, including the results of such development and the costs
and timing thereof; the completion and results of a
preliminary economic analysis and feasibility study at Gramalote;
planned exploration and exploration budgets in 2020;
and B2Gold's strategy to maximize profitable production
from its mines, reduce debt, expand the Fekola Mine throughput and
annual gold production, advance its pipeline of development and
exploration projects and evaluate exploration 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 and other 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, 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 outcome of the ongoing tax
assessment by the Colombian Tax Office (DIAN) in respect of the
Gramalote property; 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 changes to, including 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:
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",
"all-in sustaining costs" (or "AISC") and "consolidated gold
revenue". 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-record-2019-annual-gold-production-of-980-219-ounces-and-2020-budget-guidance-including-forecast-gold-production-of-1-000-000-to-1-055-000-ounces-300987978.html
SOURCE B2Gold Corp.