B2Gold Corp. (TSX:BTO) (NYSE MKT:BTG) (NSX:B2G) (“B2Gold” or
the “Company”) is pleased to announce its operational and financial
results for the three and six months ended June 30, 2017. The
Company previously released its gold production and revenue for the
second quarter of 2017 (see news release dated 07/31/17). All
dollar figures are in United States dollars unless otherwise
indicated.
2017 Second Quarter
Highlights
- Consolidated gold production of 121,448 ounces, 1% (or 1,611
ounces) above budget
- Consolidated gold revenue of $164.3 million on sales of 131,737
ounces at an average price of $1,247 per ounce
- Consolidated cash operating costs (see “Non-IFRS Measures”) of
$631 per ounce, $81 per ounce (or 11%) below budget
- Consolidated all-in sustaining costs (“AISC”) (see “Non-IFRS
Measures”) of $974 per ounce, $185 per ounce (or 16%) below
budget
- Cash flow from operating activities (after non-cash working
capital changes) of $48.0 million ($0.05 per share)
- Strong cash position of $88.2 million at quarter-end
- Fekola Project mine construction remains 3 months ahead of
schedule and on budget for an anticipated October 1, 2017
production start
- Open-pit mining (hard-rock drilling and blasting) at Fekola
commenced in May 2017; as at July 31, 2017, the Fekola Project
had stockpiled approximately 1,100,000 tonnes of ore (mining
continues)
- For full-year 2017, the Company has revised its consolidated
production guidance range slightly lower (4%) to between 530,000
and 570,000 ounces of gold (previously between 545,000 and 595,000
ounces); overall, consolidated cost guidance remains unchanged
- 2018 outlook provides for dramatic production growth of
approximately 65%, with the planned first full-year of production
from the Fekola Project, consolidated annual gold production is
expected to increase significantly to between 900,000 and 950,000
ounces with cash operating costs and AISC expected to approximate
the Company’s 2016 revised cost guidance ranges (of $500 to $535
per ounce for cash operating costs and $780 to $810 per ounce for
AISC)
2017 First-Half Highlights
- Consolidated first-half gold production of 254,184 ounces, 4%
(or 9,566 ounces) above budget
- Consolidated first-half gold revenue of $310.6 million on sales
of 251,674 ounces at an average price of $1,234 per ounce
- Consolidated cash operating costs of $596 per ounce, $81 per
ounce (or 12%) below budget
- Consolidated AISC of $929 per ounce, $226 per ounce (or 20%)
below budget
- Cash flow from operating activities of $87.6 million ($0.09 per
share)
- Subsequent to June 30, 2017, the Company secured a $500 million
upsized corporate revolving credit facility, representing a $75
million increase from the existing facility
2017 Second Quarter and First-Half
Operational Results
Consolidated gold production in the second
quarter of 2017 was 121,448 ounces, 1% (or 1,611 ounces) above
budget. The above budgeted gold production was attributable to the
continued strong operational performances of both the Masbate Mine
in the Philippines and Otjikoto Mine in Namibia which together more
than offset production shortages from La Libertad and El Limon in
Nicaragua (see “Operations” section below). Gold production at El
Limon is expected to return to more normal levels by the fourth
quarter of 2017, as a result of the successful rehabilitation of a
key dewatering well at Santa Pancha 1. Compared to the prior-year
quarter, consolidated gold production was lower by 10% (or 13,794
ounces), reflecting the operational issues at La Libertad and El
Limon. In addition, the prior-year quarter had benefitted from near
record levels of gold production from Masbate as a result of the
higher grade ore from Main Vein Stage 1 Pit which is no longer
active.
In the second quarter of 2017, consolidated cash
operating costs were $631 per ounce, $81 per ounce (or 11%) below
budget. This was mainly the result of higher than expected
production and lower than expected operating costs at Masbate and
Otjikoto. Compared to the prior-year quarter, consolidated cash
operating costs were $137 per ounce higher, mainly attributable to
lower production, higher fuel prices, and a stronger Namibian
dollar/US dollar foreign exchange rate. Consolidated AISC in the
quarter were $974 per ounce, $185 per ounce (or 16%) below budget.
This favourable variance reflects the lower than budgeted cash
operating costs per ounce and lower than expected capital
expenditures (mainly due to the timing of mobile equipment
purchases). Compared to the prior-year quarter, consolidated AISC
were $243 per ounce higher mainly due to the higher cash operating
costs per ounce and capital expenditures (reflecting Masbate’s
planned 2017 mine fleet and expansion costs and capitalized
pre-stripping costs).
Consolidated gold production in the first-half
of 2017 was 254,184 ounces (YTD 2016 - 263,086 ounces), 4% (or
9,566 ounces) above budget. Gold production is anticipated to be
weighted towards the second-half of the year due to the anticipated
start-up of Fekola combined with lower expected average strip
ratios at Masbate and Otjikoto in the second-half of the year.
For the first-half of 2017, consolidated cash
operating costs were $596 per ounce (YTD 2016 - $497 per ounce),
$81 per ounce (or 12%) below budget, and consolidated AISC were
$929 per ounce (YTD 2016 - $801 per ounce), $226 per ounce (or 20%)
below budget.
Mine construction at the Fekola Project in Mali
remains 3 months ahead of schedule for an anticipated October 1,
2017 production start and remains on budget. At the end of the
quarter, the construction phase was more than 90% complete, and
commissioning had begun. Open-pit mining (hard-rock drilling and
blasting) commenced at Fekola in May 2017. As at July 31, 2017, the
Fekola Project had stockpiled approximately 1,100,000
tonnes of ore with average gold grades in-line with the
geological model. For the fourth quarter of 2017, pre-commercial
production from Fekola is now estimated to be between 50,000 to
55,000 ounces of gold (compared to initial estimates of between
45,000 to 55,000 ounces of gold).
B2Gold is projecting another year of solid
growth. For full-year 2017, the Company has revised its
consolidated production guidance range slightly lower (4%) to
between 530,000 and 570,000 ounces of gold (previously between
545,000 and 595,000 ounces), including estimated pre-commercial
production from Fekola. The Company expects continued strong
performances from Masbate and Otjikoto, combined with Fekola’s
early October 1, 2017 production start, to largely offset any
expected deficits from La Libertad and El Limon. Overall, the
Company’s 2017 guidance for consolidated cash operating costs of
between $610 and $650 per ounce and consolidated AISC of between
$940 and $970 per ounce remains unchanged. Please see “Operations”
section below for individual mine site guidance updates.
Looking forward to 2018, with the planned first
full-year of production from the Fekola Project (based on current
assumptions and updates to the Company’s long-term mine plans), the
Company is projecting its consolidated gold production to increase
significantly by approximately 65% (from 2016) and to be between
900,000 and 950,000 ounces. The Fekola Project is expected to be a
large low-cost producer and should enable the Company to
significantly reduce its forecast longer term cash operating costs
per ounce and AISC per ounce. The Company’s forecast consolidated
cash operating costs per ounce and AISC per ounce are expected to
decrease in 2018 (compared to 2017) and be comparable to the
Company’s 2016 revised cost guidance ranges (of $500 to $535 per
ounce for cash operating costs and $780 to $810 per ounce for
AISC).
2017 Second Quarter and First-Half
Financial Results
Consolidated gold revenue in the second quarter
of 2017 was $164.3 million on sales of 131,737 ounces at an average
price of $1,247 per ounce compared to $164.8 million on sales of
130,829 ounces at an average price of $1,260 per ounce in the
second quarter of 2016.
In the second quarter of 2017, the Company’s
cash flow from operating activities (after non-cash working capital
changes) was $48.0 million ($0.05 per share) compared with $67.6
million ($0.07 per share) in the second quarter of 2016. Operating
cash flows in the prior-year quarter were higher mainly due to
positive non-cash working capital adjustments and lower operating
costs. In 2018, cash flows from operations are forecast to increase
significantly with the first full-year of production from
Fekola.
The Company generated net income of $19.3
million ($0.02 per share) in the quarter compared to a net loss of
$11.8 million (negative $0.01 per share) in the same quarter last
year. Adjusted net income (refer to “Non-IFRS Measures”) was $12.9
million ($0.01 per share) in the second quarter of 2017 compared to
$29.0 million ($0.03 per share) in the prior-year quarter.
For the first-half of 2017, consolidated gold
revenue was $310.6 million on sales of 251,674 ounces at an average
price of $1,234 per ounce compared to $309.1 million on sales of
251,728 ounces at an average price of $1,228 per ounce in the
first-half of 2016.
Consolidated gold revenue in the three and six
months ended June 30, 2017 included $15 million and $30 million,
respectively, related to the delivery of gold into the Company’s
Prepaid Sales contracts (deferred revenue) associated with the
Company’s Prepaid Sales transactions entered into in March 2016.
During the three and six months ended June 30, 2017, 12,908 ounces
and 25,816 ounces, respectively, were delivered under these
contracts.
Year-to-date, cash flow from operating
activities (after non-cash working capital changes) was $87.6
million ($0.09 per share) compared with $239.2 million ($0.26 per
share) in the first-half of 2016. This decrease was mainly due to
the Company’s Prepaid Sales transactions in March 2016 of $120
million and to non-cash working capital adjustments. Non-cash
working capital changes in the first-half of 2017 were negative
$25.3 million compared with negative $3.7 million in the first-half
of 2016.
For the six months ended June 30, 2017, the
Company generated net income of $14.7 million ($0.02 per share)
compared to a net loss of $5.2 million (negative $0.00 per share)
in the comparable period of 2016. Adjusted net income for the
first-half of 2017 was $32.2 million ($0.03 per share) compared to
$47.8 million ($0.05 per share) in the first-half of 2016.
Liquidity and Capital
Resources
At June 30, 2017, the Company remained in a
solid financial position with working capital of $46.1 million
including unrestricted cash and cash equivalents of $88.2 million.
In addition, the Company had $175 million of undrawn capacity on
its $425 million existing revolving credit facility (“RCF”).
Subsequent to June 30, 2017, on July 7, 2017, the Company entered
into an amended and restated credit agreement with a syndicate of
international banks for an amended RCF of an aggregate amount of
$500 million, representing a $75 million increase from the
principal amount of $425 million under its existing RCF. The
amended RCF also allows for an accordion feature whereby upon
receipt of additional binding commitments, the facility may be
increased to $600 million any time prior to the maturity date.
With the announcement of the recently upsized
RCF to $500 million, the Company has given itself increased
financial flexibility. Proceeds from the new upsized RCF will be
used for general corporate purposes and may be used to prepay or
repay the Company's existing convertible notes and for financing
acquisitions.
At June 30, 2017, the Company also had Euro 36.4
million of undrawn capacity on its Fekola equipment loan facility,
$17.8 million of undrawn capacity on its Masbate equipment loan
facility and $6.5 million of undrawn capacity on its Otjikoto
equipment loan facility.
Operations
Mine-by-mine gold production in the second
quarter and first-half of 2017 were as follows:
Mine |
Q2 2017 Gold Production
(ounces) |
First-Half 2017 Gold
Production(ounces) |
RevisedAnnual
Guidance(ounces) |
OriginalAnnual
Guidance(ounces) |
Masbate |
49,930 |
102,492 |
180,000 – 185,000 |
175,000 – 185,000 |
Otjikoto |
41,163 |
83,937 |
170,000 – 180,000 |
165,000 – 175,000 |
La Libertad |
22,615 |
51,154 |
90,000 – 100,000 |
110,000 – 120,000 |
El Limon |
7,740 |
16,601 |
40,000 – 50,000 |
50,000 – 60,000 |
Subtotal |
121,448 |
254,184 |
480,000 – 515,000 |
500,000 – 540,000 |
Fekola (pre-commercial) |
- |
- |
50,000 – 55,000 |
45,000 – 55,000 |
|
|
|
|
|
B2Gold Consolidated |
121,448 |
254,184 |
530,000 – 570,000 |
545,000 – 595,000 |
Masbate Gold Mine – Philippines
The Masbate Mine in the Philippines continued to
exceed expectations, producing 49,930 ounces of gold in the second
quarter of 2017, 13% (or 5,675 ounces) above budget. Gold
production exceeded budget due to better than expected throughput
and recoveries mainly driven by higher than budgeted oxide ore from
the Colorado Pit. As mining advances in the Colorado Pit, the trend
of more oxide ore than modelled has continued. Oxide feed material
accounted for 67% of the total milled tonnes compared to budget of
22%. As expected, compared to the prior-year quarter, gold
production was 13% (or 7,258 ounces) lower as the prior-year
quarter had benefitted from the higher grade ore sourced from the
Main Vein Stage 1 Pit which is no longer active (and had resulted
in the second highest quarterly production ever for the mine). The
Masbate Mine continued its strong safety performance, extending the
number of days without a “Lost-Time-Injury” to 626 days at the end
of the second quarter of 2017.
Mill throughput in the quarter was 1,824,714
tonnes compared to budget of 1,717,168 tonnes and 1,699,705 tonnes
in the second quarter of 2016. Mill throughput exceeded budget as a
result of the softer ore conditions (from the softer oxide blend)
as well as improved plant availability. Mill recoveries averaged
75.9% which was better than budget of 72.9% and 75.0% in the second
quarter of 2016. The average grade processed was 1.12 g/t compared
to budget of 1.10 g/t and 1.40 g/t in the second quarter of 2016.
The first part of the replacement and expansion load and haul fleet
was commissioned and brought into operation during the quarter. The
new drill fleet is scheduled to arrive in the third quarter of 2017
and the final nine haul trucks are scheduled to arrive in the
second-half of the year.
Masbate’s second quarter cash operating costs
were $516 per ounce, significantly below budget by $184 per ounce
(or 26%). This favourable variance was mainly the result of higher
than expected production and lower than expected production costs
(due to cost savings in most areas) and stockpile adjustments.
Compared to the prior-year quarter, cash operating costs were $120
per ounce higher due to near record levels of gold production as
well as lower fuel costs in the prior-year quarter. Masbate’s AISC
in the second quarter were $869 per ounce, below budget by $106 per
ounce (or 11%). Compared to the prior-year quarter, AISC were $313
per ounce higher mainly due to the planned 2017 mine fleet and
expansion costs and higher per ounce cash operating costs.
Masbate’s mine equipment purchases are planned to significantly
decrease in 2018.
For the first-half of 2017, the Masbate Mine
produced 102,492 ounces (YTD 2016 - 109,915 ounces) of gold, above
budget by 9% (or 8,244 ounces).
Masbate’s cash costs remained significantly
below budget in the first-half of the year with cash operating
costs of $520 per ounce (YTD 2016 - $425 per ounce), $145 per ounce
(or 22%) below budget, and AISC of $838 per ounce (YTD 2016 - $595
per ounce), $218 per ounce (or 21%) below budget.
Capital expenditures in the second quarter of
2017 totaled $15.4 million including mobile equipment costs of $9.4
million, pre-stripping costs of $1.7 million, powerhouse upgrade
costs of $1.3 million and processing plant upgrades of $0.8
million. For the first-half of 2017, capital expenditures totaled
$30.4 million mainly consisting of mobile equipment costs of $16.0
million, pre-stripping costs of $4.3 million, processing plant
upgrades of $3.0 million and powerhouse upgrade costs of $2.4
million.
Due to the continued strong year-to-date
performance, the Company now expects full-year Masbate production
to be at the top end of its original production guidance range, and
has revised its annual guidance range to be between 180,000 to
185,000 ounces of gold (original guidance was 175,000 to 185,000
ounces). Masbate’s full-year cash operating costs are now expected
to be below its original guidance range and be between $595 and
$635 per ounce (original guidance was $690 to $730 per ounce) and
AISC are also expected to be lower at between $935 and $975 per
ounce (original guidance was $1,020 to $1,050 per ounce).
As reported by the Company on February 2, 2017,
the Department of Natural Resources (the “DENR”) announced further
results of its mining audits of metallic mines in the Philippines
and the Masbate Mine was not among the mines announced to be
suspended or closed. To date the Company has not received any
updated formal written response from the DENR confirming the final
results of the audit in respect of Masbate and as such, the final
outcome of the audit has not been determined. The Company believes
that it continues to be in compliance with Philippine’s laws and
regulations. Resolution of the audit will occur when the Mining
Industry Coordinating Council (the “MICC” which is the oversight
committee for DENR) conducts a technical review of mines in the
Philippines in order to address DENR audit conclusions. No time
frame has yet been provided for this review, which is expected to
bring finality to this year-old review process.
The Masbate operations were recently presented
with the DENR’s Saringaya Award for its contribution to
environmental protection, conservation, and management in the
regions surrounding the Masbate Mine. The Saringaya Award is
considered the DENR’s most prestigious regional environmental
award.
Otjikoto Gold Mine – Namibia
The Otjikoto Mine in Namibia also continued its
very strong operational performance into the second quarter of
2017, producing 41,163 ounces of gold, 15% (or 5,273 ounces) above
budget and 14% (or 4,991 ounces) higher than the second quarter of
2016. The increase over budget was mainly the result of better than
expected grade and ore tonnage from the new Wolfshag Phase 1 Pit
and higher than expected mill throughput.
The average gold grade processed in the quarter
was 1.50 g/t compared to budget of 1.38 g/t and 1.29 g/t in the
second quarter of 2016. To date there has been a positive
reconciliation in terms of both grade and ore tonnage from the
oxide and transition portions of the Wolfshag Phase 1 Pit versus
the resource model. Analysis of the Wolfshag model is ongoing to
determine whether this positive variance continues throughout the
Wolfshag orebody. Mill throughput for the quarter was 867,170
tonnes compared to budget of 823,732 tonnes and 890,704 tonnes in
the second quarter of 2016. Mill recoveries remained high and
averaged 98.6%, slightly above both budget and the prior-year
quarter.
Otjikoto’s second quarter cash operating costs
were $524 per ounce, significantly below budget by $200 per ounce
(or 28%). This was mainly the result of higher than budgeted gold
production combined with lower than budgeted fuel prices and
reagent consumption. Compared to the prior-year quarter, cash
operating costs were $138 per ounce higher as the prior-year
quarter had benefited from a significantly weaker Namibian
dollar/US dollar foreign exchange rate and lower fuel prices. AISC
in the second quarter were $668 per ounce (Q2 2016 - $570 per
ounce), significantly below budget by $726 per ounce (or 52%),
mainly as a result of lower than budgeted mobile equipment
purchases in the quarter (due to timing differences) and lower than
budgeted cash operating costs per ounce.
Year-to-date, gold production at the Otjikoto
Mine was 83,937 ounces of gold, significantly above budget by 17%
(or 12,355 ounces) and 17% (or 12,062 ounces) higher than the
first-half of 2016.
Otjikoto’s cash costs remained significantly
below budget in the first-half of the year with cash operating
costs of $467 per ounce (YTD 2016 - $384 per ounce), $162 per ounce
(or 26%) below budget, and AISC of $721 per ounce (YTD 2016 - $702
per ounce), $501 per ounce (or 41%) below budget.
Capital expenditures in the second quarter of
2017 totaled $2.7 million and included $1.7 million for capital
repairs. For the first-half of 2017, capital expenditures totaled
$15.2 million consisting of $6.5 million for pre-stripping, $3.3
million for capital repairs and $2.9 million for mobile equipment
purchases.
Due to the continued strong year-to-date
performance, the Company now expects full-year Otjikoto production
to be at or above the top end of its original production guidance
range, and has revised its annual guidance range to be between
170,000 to 180,000 ounces of gold (original guidance was 165,000 to
175,000 ounces). Forecast gold production at Otjikoto is weighted
towards the second-half of the year as the Wolfshag Phase 1 and
Otjikoto Phase 2 pits reach higher grade and lower strip ratio
benches. Otjikoto’s full-year cash operating costs are now expected
to be lower at between $480 and $520 per ounce (original guidance
was $510 to $550 per ounce) and AISC are now expected to be below
its original guidance range and be between $725 and $765 per ounce
(original guidance was $855 to $885 per ounce).
Life-of-mine production plans for the Otjikoto
Mine, incorporating preliminary projections for the Wolfshag open
pit and potential underground mines, have been completed for
various options and will be further refined as the detailed
geotechnical, hydrogeological, and design studies for Wolfshag are
completed (expected at the end of the third quarter of 2017).
Ongoing studies are leading the Company to re-evaluate the open pit
and underground interface in order to determine the optimal mine
plan and economics for the Wolfshag expansion.
La Libertad Gold Mine – Nicaragua
La Libertad Mine in Nicaragua produced 22,615
ounces of gold in the second quarter of 2017, which was 16% (or
4,314 ounces) below budget and 27% (or 8,192 ounces) lower than the
second quarter of 2016. The decrease was mainly attributable to
grade and ore tonnage underperformance from the lower portion of
the Jabali Central Pit (as the pit nears completion) and lower than
planned production from Mojon Underground. As a result, head grades
were lower than anticipated (1.37 g/t compared to budget of 1.61
g/t and 1.75 g/t in the prior-year quarter). La Libertad’s mill
continues to operate well, processing 554,536 tonnes (Q2 2016 –
579,756 tonnes) in the quarter with recoveries averaging 93.3% (Q2
2016 - 94.8%). In the third quarter of 2017, the Jabali Central Pit
and spent ore will remain the primary sources of ore for La
Libertad, while Mojon Underground ramps up and the Jabali Antenna,
San Juan and San Diego open pits are in the final stages of
permitting and development.
As previously released in the first quarter of
2017, the Company has changed its planned sequencing for bringing
the Jabali Antenna Pit into the mine plan (originally forecast to
enter the production stream in the third quarter of 2017). With
strong support from the Nicaraguan Government, the Company is now
focused on developing and permitting the San Juan and San Diego
open pits and bringing them into production later in the third
quarter of 2017, ahead of the Jabali Antenna Pit. In the
second-half of the year, and subject to final permitting, gold
production from San Juan and San Diego are expected to mostly
offset any deferral in Jabali Antenna Pit production. The
Company has also made significant progress in resettlement and
permitting activities at the high grade Jabali Antenna Pit. The
Company is now projecting to receive a mining permit in time to
start production from this pit in early 2018.
La Libertad’s second quarter cash costs, on a
per ounce basis, were impacted by the lower than planned production
with cash operating costs of $841 per ounce (Q2 2016 - $717 per
ounce), $122 per ounce (or 17%) above budget, and AISC of $1,089
per ounce (Q2 2016 - $942 per ounce), $190 per ounce (or 21%) above
budget.
For the first-half of 2017, La Libertad produced
51,154 ounces of gold, which was 3,764 ounces below budget and
8,851 ounces lower than the first six months of 2016.
Year-to-date, La Libertad’s cash operating costs
were $778 per ounce (YTD 2016 - $672 per ounce), $65 per ounce
above budget (or 9%), and AISC were $965 per ounce (YTD 2016 - $991
per ounce), $39 per ounce (or 4%) above budget.
Total capital expenditures in the second quarter
of 2017 were $8.7 million, consisting primarily of deferred
development/infrastructure costs of $3.0 million, land acquisitions
of $2.8 million and La Esperanza Tailings Dam expansion of $2.3
million. For the six months ended June 30, 2017, capital
expenditures totaled $12.3 million, consisting primarily of La
Esperanza Tailings Dam expansion of $4.5 million, deferred
development/infrastructure costs of $4.0 million and land
acquisitions of $3.0 million.
In light of the underperformance of both the
Jabali Central Pit and Mojon Underground, La Libertad’s production
guidance has been revised lower and for the full-year 2017, the La
Libertad Mine is now forecast to produce between 90,000 to 100,000
ounces of gold (original guidance was 110,000 to 120,000 ounces).
However, based on current assumptions, the Company anticipates
increases in production at the La Libertad Mine in 2018 and 2019.
La Libertad’s full-year cash operating costs and AISC are now both
expected to be higher than original guidance and be between $795
and $835 per ounce (original guidance was $625 to $665 per ounce)
and between $1,075 and $1,115 per ounce (original guidance was $785
to $815 per ounce), respectively.
El Limon Gold Mine – Nicaragua
The smaller El Limon Mine in Nicaragua produced
7,740 ounces of gold in the second quarter of 2017, which was 5,023
ounces below budget and 3,335 ounces lower than the second quarter
of 2016. The primary cause of the shortfall was lower processed
grade which was 2.43 g/t versus a budget of 3.45 g/t and 3.65 g/t
in the second quarter of 2016. El Limon’s production continued to
be negatively affected by water control issues which reduced high
grade ore flow from Santa Pancha Underground. As a result, mill
feed was supplemented with smaller volumes of lower grade ore
recovered from surface. At the end of the quarter, improved control
of underground water was achieved with the successful
rehabilitation of a key dewatering well, now enabling the
development of the lower levels of Santa Pancha 1 to proceed.
Additional mining equipment was delivered in the quarter and the
addition of a specialized rebuild crew has resulted in an
improvement of haul fleet availability by 11% since the first
quarter. Tonnage milled for the quarter was 106,428 tonnes compared
to budget of 123,209 tonnes and 99,947 tonnes in the first quarter
of 2016. Mill recoveries averaged 93.1% compared to budget of 93.5%
and 94.5% in the second quarter of 2016.
El Limon’s second quarter cash costs, on a per
ounce basis, were impacted by the lower than planned production
(and as a result were significantly above budget) with cash
operating costs of $1,328 per ounce (Q2 2016 - $733 per ounce) and
AISC of $1,904 per ounce (Q2 2016 - $1,121 per ounce).
For the first-half of 2017, El Limon Mine
produced 16,601 ounces of gold, which was 7,269 ounces below budget
and 4,690 ounces lower than the first six months of 2016.
Year-to-date, El Limon’s cash operating costs
were $1,149 per ounce (YTD 2016 - $753 per ounce) and AISC were
$1,727 per ounce (YTD 2016 - $1,124 per ounce).
Capital expenditures in the second quarter of
2017 totaled $3.1 million which included underground development
for Santa Pancha of $1.8 million and mobile equipment of $0.4
million. Year-to-date capital expenditures totaled $6.4 million
which included underground development for Santa Pancha of $3.7
million and mobile equipment of $1.1 million.
Although production from Santa Pancha 1 is
expected to return to more normal levels by the fourth quarter of
2017, the shortfall to date is not expected to be fully recovered
in the second-half of the year. As a result, El Limon’s production
guidance has been revised lower and for the full-year 2017, the El
Limon Mine is now forecast to produce between 40,000 to 50,000
ounces of gold (original guidance was 50,000 to 60,000 ounces). El
Limon’s full-year cash operating costs and AISC are now both
expected to be higher than original guidance and be between $815
and $855 per ounce (original guidance was $655 to $695 per ounce)
and between $1,415 and $1,455 per ounce (original guidance was
$1,065 to $1,095 per ounce), respectively.
Development
Fekola Development Project – Mali
The Fekola Project mine construction in Mali
remains approximately 3 months ahead of schedule and on target for
an October 1, 2017 production start. The Fekola Project remains on
budget and is expected to be a large low-cost producer and should
enable the Company to significantly reduce its longer term cash
operating costs per ounce and AISC per ounce.
Based on the updated production plans, the
Fekola Project is projected to produce an average of 375,000 to
400,000 ounces of gold per year for the first five years of
production (2018 to 2022) and 365,000 to 390,000 ounces per year
over the first seven years of production (2018 to 2024). The mining
schedule has been adjusted to ensure sufficient feed for the
October 1, 2017 start date. Mining rates will not materially change
to supply the 5 Mtpa plant, as the additional material will be
diverted from planned stockpiles. Under the 5 Mtpa updated
production plan, the initial mine life for the Fekola Project is
expected to be approximately ten years. B2Gold is currently
updating the life-of-mine plan for the Fekola Project to include
updated mineral reserves, updated mining production schedule, 5
Mtpa process throughput, current costs, and reconciliation to
actual construction and pre-stripping progress. The updated cost
model is expected to be completed by the end of the third quarter
of 2017.
In the second quarter of 2017, the B2Gold
construction team continued to fast track development at Fekola. At
the end of the second quarter, the project was estimated to be more
than 90% complete. Installation of the ball and SAG mill at the
Process Plant continues to progress with the shells, trunnions and
gears installed. Rubber lining and inner liner installation of both
mills has commenced. Concrete progress and structural steel
erection at the mill is approximately 99.7% and 99% complete,
respectively. Concrete work, plate work and structural steel
erection at the primary crusher and stockpile feed conveyor have
been completed while mechanical work at the crusher remains
ongoing. Installation of pipework, mechanical equipment and
electrical work continues site wide with overall completion rates
of approximately 84%, 42% and 75%, respectively. Installation of
the underground utilities is largely complete and drainage work
around the plant site has commenced. Erection of the various
buildings around the site continued to progress with a completion
rate of approximately 70% at the end of June 2017.
Construction of the Phase 1 Tailings
Storage Facility (“TSF”), including all associated infrastructure,
is now 100% complete. The two remaining decant structures within
the basin of the TSF have been completed and a submersible pump has
been installed in decant tower No. 1. As the tailings level
rises and the first decant tower is decommissioned, the submersible
pump will be pulled and re-installed in the second decant tower.
Construction of the Phase 1 emergency spillway as well as
excavation of the tailings line and return water line trench is
also complete. All the site ponds, including the storm-water pond,
reclaim and event pond and the dump pond have been lined with HDPE
geomembrane and QAQC tested.
Development of the open pit continued ahead of
schedule, with a total of 4.2 million tonnes of waste and
500,000 tonnes of ore mined during the quarter with waste stripping
and ore stockpiles well ahead of schedule. The Company believes
that the existing stockpile levels and grade of stockpiled ore mean
that Fekola is well positioned to feed the upsized 5 Mtpa Fekola
mill upon start up and achieve the 2017 production range of 50,000
to 55,000 ounces. Surface haul roads have been prepared for the
rainy season, and the ROM pad is complete. The second phase of RC
grade control drilling is in progress. Pre-stripping has been
completed in phases 1 and 2.
Capital expenditures for the three and six
months ended June 30, 2017 totaled $75.0 million and $142.8
million, respectively, versus a total budget of $80.6 million and
$145.9 million, respectively. Expenditures on the Fekola Project to
date are $513.9 million including $41 million of preconstruction
expenditures compared with a budget to date of $522.3 million. The
project remains ahead of schedule and on budget.
Outlook
The core activities of the Company remain its
current mining operations, the construction of its Fekola Mine and
numerous exploration programs. Based on Fekola’s current mine
construction progress, construction is three months ahead of
schedule and is planning for an October 1, 2017 production start.
Looking forward to 2018, with the planned first full year of
production from the Fekola Project (based on current assumptions
and updates to the Company’s long-term mine plans), the Company is
projecting a significant consolidated gold production increase of
approximately 65% (from 2016) for a 2018 production range of
between 900,000 and 950,000 ounces. With the inclusion of low cost
Fekola production, the Company’s forecast consolidated cash
operating costs per ounce and all-in sustaining costs per
ounce are expected to decrease in 2018 (compared to 2017) and be
comparable to the Company’s 2016 revised cost guidance ranges (of
$500 to $535 per ounce for cash operating costs and $780 to $810
per ounce for all-in sustaining cost). In conjunction with this the
Company's revenues and consolidated operating cash flows are also
expected to increase significantly.
In addition to its development of Fekola and
strong operating performance of its existing mines, the Company
continues to pursue its organic growth strategy. Sustainable
organic growth also requires a continued focus on exploration,
permitting and feasibility programs at the Company’s existing
projects. Exploration will also focus on drilling additional
greenfield opportunities. The Company has a significant exploration
budget for 2017 totalling $55 million, which includes a $9 million
increase approved in the first and second quarters of 2017. The
most significant areas of exploration focus for the Company are in
West Africa and Nicaragua. In Mali, the Company continues to follow
up on successful exploration results at and around Fekola. On June
15, 2017, the Company announced an initial resource for its
Anaconda prospect. This saprolite-hosted gold mineralization in the
Fekola district remains open and the Company's exploration group is
continuing to explore the edges of the known zones. In addition
several structures in the sulphide zone underlying known saprolite
mineralization in the Fekola district show promising drill
intersections that warrant further aggressive follow up to test for
Fekola style gold mineralization. In Burkina Faso, drilling at the
Toega prospect remains ongoing. Due to the increased size of the
Toega zone, the Company now expects to release the initial mineral
resource for Toega by the end of the third quarter of 2017 and the
Company also expects to subsequently undertake an in-house
evaluation to determine whether Toega constitutes a potential
source of higher-grade feed for the Kiaka deposit or potentially a
standalone project. In Nicaragua, the Company has increased its
exploration budget from $5 million to $7 million to follow up on
encouraging drill results at and around the Limon site.
In addition to the promising exploration
programs described above, the Company believes it is also well
positioned to evaluate and consider external acquisition prospects.
With the announcement of the recently upsized RCF to $500 million,
the Company has given itself increased financial flexibility.
Proceeds from the new upsized RCF will be used for general
corporate purposes and may be used to prepay or repay the Company's
existing convertible notes and for financing acquisitions. To date
B2Gold’s dramatic production growth profile has been achieved
through a series of accretive acquisitions, on time and on budget
mine construction, strong mine operating performance, and
exploration success. The Company’s objective is to continue its
successful growth strategy of acquisition and exploration,
irrespective of the gold cycle.
Qualified Person
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 and
development matters contained in this news release.
Tom Garagan, Senior Vice President of
Exploration of B2Gold, a qualified person under NI 43-101, has
approved the exploration information contained in this news
release.
Second Quarter and First-Half 2017 Financial
Results – Conference Call Details
B2Gold Corp. will release its second quarter and
first-half 2017 financial results before the North American markets
open on Thursday, August 10, 2017.
B2Gold executives will host a conference call to
discuss the results on Thursday, August 10, 2017,
at 10:00 am PDT / 1:00 pm EDT. You may access the
call by dialing the operator at +1 (647) 788-4919 (local or
international) or toll free at +1 (877) 291-4570 prior to the
scheduled start time or you may listen to the call via webcast by
clicking http://www.investorcalendar.com/event/18241. A playback
version of the call will be available for one week after the call
at +1 416-621-4642 (local or international) or toll free at +1
800-585-8367 (passcode 54297176).
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:
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Ian MacLean |
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Katie Bromley |
Vice President,
Investor Relations |
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Manager, Investor
Relations & Public Relations |
604-681-8371 |
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604-681-8371 |
imaclean@b2gold.com |
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kbromley@b2gold.com |
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The Toronto Stock Exchange neither approves nor
disapproves the information contained in this news
release.
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, estimates and other statements regarding
future financial and operational performance, events, production,
mine life, revenue, costs, including projected consolidated cash
operating costs and AISC, capital expenditures, investments,
budgets, ore grades, sources and types of ore, stripping ratios,
throughput, cash flows and growth; production estimates and
guidance, including the Company’s projected gold production of
between 530,000 to 570,000 ounces in 2017, production being
weighted towards the second half of 2017, projected gold production
of between 900,000 and 950,000 ounces in 2018, expected decrease of
forecast consolidated cash operating costs and AISC in 2018 and the
expected increase in cash flows from operations in 2018; and
statements regarding anticipated exploration, development,
construction, production, permitting and other activities and
achievements of the Company, including: expected grades and sources
of ore to be processed in 2017; the development and production from
the Fekola Project by October 1, 2017 and the Fekola Project being
ahead of schedule and on budget; the Fekola Mine being a low cost
mine and its anticipated effect on the Company’s gold production
and per ounce costs; the update in the third quarter of 2017 of the
Fekola Project’s life-of-mine plan, including mineral reserves,
mining production schedule, throughput, costs and cost model; the
Company’s future growth and cost structure; completion of
geotechnical, hydrogeological and design studies for the Wolfshag
zone in the third quarter of 2017, the expected re-evaluation of
the open pit and underground interface and the potential to extend
the Otjikoto Mine’s mine life and maintain its production levels;
the projections included in existing technical reports, economic
assessments and feasibility studies; the results of anticipated or
potential new technical reports and studies, including the
potential findings and conclusions thereof; the resolution of the
audit by the DENR in relation to the Masbate Mine and the final
outcome thereof; expected replacement and expansion of the Masbate
Mine fleet, including the scheduled arrival of drill fleet and haul
trucks, and the expected decrease in equipment purchases at Masbate
in 2018; La Libertad Mine’s planned resequencing, including receipt
of a permit in time to start production from the Jabali Antenna Pit
in early 2018, completion of development and permitting and
entering into production at San Juan and San Diego in the third
quarter of 2017 and for such production to partly offset the
deferral of the Jabali Antenna Pit; and expected return to normal
level of gold production at El Limon Mine by the fourth quarter of
2017as a result of successful rehabilitation of a key dewatering
well at Santa Pancha 1;timing of release of initial mineral
resource for Toega and results of in-house evaluations of Toega;
and the increase in the amount of the revolving credit facility
upon certain binding commitments and the intended use of proceeds
therefrom. 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 the volatility of
metal prices and our common shares; risks and dangers inherent in
exploration, development and mining activities; uncertainty of
reserve and resource estimates; risk of not achieving production,
cost or other estimates; risk that actual production, development
plans and costs differ materially from the estimates in our
feasibility studies; risks related to hedging activities and ore
purchase commitments; the ability to obtain and maintain any
necessary permits, consents or authorizations required for mining
activities; uncertainty about the outcome of negotiations with the
Government of Mali; risks related to environmental regulations or
hazards and compliance with complex regulations associated with
mining activities; the ability to replace mineral reserves and
identify acquisition opportunities; unknown liabilities of
companies acquired by B2Gold; ability to successfully integrate new
acquisitions; fluctuations in exchange rates; availability of
financing; risks relating to financing and debt; risks related to
operations in foreign and developing countries and compliance with
foreign laws; risks related to 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; risks
related to reliance upon contractors, third parties and joint
venture partners; challenges to title or surface rights; dependence
on key personnel and 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; changes in tax laws; community support for
our operations including risks related to strikes and the halting
of such operations from time to time; risks related to failures of
information systems or information security threats; the ongoing
audit by the DENR in relation to our Masbate Project and the final
outcome thereof; ability to maintain adequate internal control over
financial reporting as required by law; risks relating to
compliance with anti-corruption laws; 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 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 the Company’s forward-looking statements. There can be no
assurance that such 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. The Company’s forward-looking statements
reflect current expectations regarding future events and operating
performance and speak only as of the date hereof and the Company
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. For the
reasons set forth above, undue reliance should not be placed on
forward-looking statements.
The disclosure in this news release and in the
documents described in this news release regarding mineral
properties was prepared in accordance with Canadian National
Instrument 43-101 (“NI 43-101”), which differs significantly from
the 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
U.S. standards.
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
“adjusted net income”. 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 such measures and reconciliation of certain measures to
IFRS terms.
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B2GOLD CORP. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
OPERATIONS |
FOR THE THREE AND SIX MONTHS ENDED JUNE 30 |
(Expressed
in thousands of United States dollars, except per share
amounts) |
(Unaudited) |
|
|
|
For the three months ended June 30,
2017 |
|
For the three months ended June 30, 2016 |
|
For the six months ended June 30,
2017 |
|
For the six months ended June 30, 2016 |
|
|
|
|
|
|
|
|
|
Gold
revenue |
|
$ |
164,322 |
|
|
$ |
164,803 |
|
|
$ |
310,578 |
|
|
$ |
309,055 |
|
|
|
|
|
|
|
|
|
|
Cost of
sales |
|
|
|
|
|
|
|
|
Production
costs |
|
(80,798 |
) |
|
(66,146 |
) |
|
(147,845 |
) |
|
|
(127,790 |
) |
Depreciation and depletion |
|
(45,014 |
) |
|
(38,938 |
) |
|
(81,395 |
) |
|
|
(73,251 |
) |
Royalties
and production taxes |
|
(5,653 |
) |
|
(5,565 |
) |
|
(11,415 |
) |
|
|
(11,421 |
) |
Total cost of
sales |
|
(131,465 |
) |
|
(110,649 |
) |
|
(240,655 |
) |
|
|
(212,462 |
) |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
32,857 |
|
|
54,154 |
|
|
69,923 |
|
|
|
96,593 |
|
|
|
|
|
|
|
|
|
|
General and
administrative |
|
(9,363 |
) |
|
(8,174 |
) |
|
(16,744 |
) |
|
|
(15,662 |
) |
Share-based
payments |
|
(7,713 |
) |
|
(2,087 |
) |
|
(9,314 |
) |
|
|
(7,472 |
) |
Gain on sale of Lynn
Lake royalty |
|
6,593 |
|
|
— |
|
|
6,593 |
|
|
|
— |
|
Write-down of mineral
property interests |
|
— |
|
|
(3,867 |
) |
|
(1,439 |
) |
|
|
(3,867 |
) |
Provision for
non-recoverable input taxes |
|
(970 |
) |
|
(787 |
) |
|
(1,548 |
) |
|
|
(1,029 |
) |
Foreign exchange
losses |
|
(1,727 |
) |
|
(2,147 |
) |
|
(1,408 |
) |
|
|
(1,785 |
) |
Other |
|
(325 |
) |
|
(2,049 |
) |
|
(1,284 |
) |
|
|
(3,584 |
) |
Operating
income |
|
19,352 |
|
|
35,043 |
|
|
44,779 |
|
|
|
63,194 |
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss)
on fair value of convertible notes |
|
2,478 |
|
|
(37,434 |
) |
|
(11,978 |
) |
|
|
(43,393 |
) |
Community
relations |
|
(1,091 |
) |
|
(958 |
) |
|
(2,671 |
) |
|
|
(1,845 |
) |
Interest and financing
expense |
|
(3,138 |
) |
|
(2,906 |
) |
|
(5,271 |
) |
|
|
(5,932 |
) |
Realized losses on
derivative instruments |
|
(892 |
) |
|
(3,752 |
) |
|
(1,340 |
) |
|
|
(9,247 |
) |
Unrealized gains
(losses) on derivative instruments |
|
2,867 |
|
|
(650 |
) |
|
(2,470 |
) |
|
|
(10,100 |
) |
Write-down of long-term
investments |
|
(573 |
) |
|
(182 |
) |
|
(1,456 |
) |
|
|
(182 |
) |
Other |
|
(2 |
) |
|
(414 |
) |
|
(191 |
) |
|
|
(1,325 |
) |
Income (loss)
before taxes |
|
19,001 |
|
|
(11,253 |
) |
|
19,402 |
|
|
|
(8,830 |
) |
|
|
|
|
|
|
|
|
|
Current income tax,
withholding and other taxes expense |
|
(2,498 |
) |
|
(3,990 |
) |
|
(7,258 |
) |
|
|
(8,335 |
) |
Deferred income tax
recovery |
|
2,761 |
|
|
3,437 |
|
|
2,563 |
|
|
|
12,010 |
|
Net income
(loss) for the period |
|
$ |
19,264 |
|
|
$ |
(11,806 |
) |
|
$ |
14,707 |
|
|
$ |
(5,155 |
) |
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
$ |
21,029 |
|
|
$ |
(10,330 |
) |
|
$ |
15,530 |
|
|
$ |
(2,013 |
) |
Non-controlling interests |
|
(1,765 |
) |
|
(1,476 |
) |
|
(823 |
) |
|
|
(3,142 |
) |
Net income
(loss) for the period |
|
$ |
19,264 |
|
|
$ |
(11,806 |
) |
|
$ |
14,707 |
|
|
$ |
(5,155 |
) |
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share (attributable to shareholders of the
Company) |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.00 |
) |
Diluted |
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares
outstanding (in thousands) |
|
|
|
|
|
|
|
|
Basic |
|
976,527 |
|
|
930,235 |
|
|
973,500 |
|
|
|
928,690 |
|
Diluted |
|
1,058,008 |
|
|
930,235 |
|
|
991,028 |
|
|
|
928,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B2GOLD CORP. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH
FLOWS |
FOR THE THREE AND SIX MONTHS ENDED JUNE 30 |
(Expressed
in thousands of United States dollars) |
(Unaudited) |
|
|
|
For the three months ended June 30,
2017 |
|
For the three months ended June 30, 2016 |
|
For the six months ended June 30,
2017 |
|
For the six months ended June 30, 2016 |
Operating
activities |
|
|
|
|
|
|
|
|
Net
income (loss) for the period |
|
$ |
19,264 |
|
|
$ |
(11,806 |
) |
|
$ |
14,707 |
|
|
$ |
(5,155 |
) |
Mine
restoration provisions settled |
|
(24 |
) |
|
(66 |
) |
|
(24 |
) |
|
(98 |
) |
Non-cash
charges, net |
|
26,625 |
|
|
84,015 |
|
|
74,001 |
|
|
132,610 |
|
Changes
in non-cash working capital |
|
(8,364 |
) |
|
2,337 |
|
|
(25,325 |
) |
|
(3,722 |
) |
Proceeds
from prepaid sales |
|
15,000 |
|
|
— |
|
|
30,000 |
|
|
120,000 |
|
Changes
in long-term value added tax receivables |
|
(4,478 |
) |
|
(6,876 |
) |
|
(5,737 |
) |
|
(4,478 |
) |
Cash provided by operating activities |
|
48,023 |
|
|
67,604 |
|
|
87,622 |
|
|
239,157 |
|
|
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
|
|
Credit
facility, drawdowns net of transaction costs |
|
49,642 |
|
|
— |
|
|
49,642 |
|
|
50,000 |
|
Repayment
of credit facility |
|
— |
|
|
— |
|
|
— |
|
|
(100,000 |
) |
Otjikoto
equipment loan facility, drawdowns net of transaction costs |
|
— |
|
|
9,807 |
|
|
— |
|
|
11,043 |
|
Repayment
of Otjikoto equipment loan facility |
|
(2,269 |
) |
|
(2,043 |
) |
|
(4,538 |
) |
|
(3,823 |
) |
Fekola
equipment loan facility, drawdowns net of transaction costs |
|
11,006 |
|
|
— |
|
|
37,132 |
|
|
— |
|
Repayment
of Fekola equipment loan facility |
|
(1,997 |
) |
|
— |
|
|
(1,997 |
) |
|
— |
|
Repayment
of Nicaraguan equipment loans |
|
(412 |
) |
|
(427 |
) |
|
(719 |
) |
|
(932 |
) |
Interest
and commitment fees paid |
|
(7,045 |
) |
|
(6,718 |
) |
|
(9,548 |
) |
|
(9,800 |
) |
Common
shares issued for cash on exercise of stock options |
|
5,231 |
|
|
6,777 |
|
|
23,199 |
|
|
6,795 |
|
Restricted cash movement |
|
(1,813 |
) |
|
(1,119 |
) |
|
(6,099 |
) |
|
(1,169 |
) |
Cash provided (used) by financing activities |
|
52,343 |
|
|
6,277 |
|
|
87,072 |
|
|
(47,886 |
) |
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
|
|
Expenditures on mining interests: |
|
|
|
|
|
|
|
|
Otjikoto
Mine, development and sustaining capital |
|
(2,655 |
) |
|
(7,618 |
) |
|
(15,207 |
) |
|
(26,326 |
) |
Masbate
Mine, development and sustaining capital |
|
(15,412 |
) |
|
(8,836 |
) |
|
(30,366 |
) |
|
(17,350 |
) |
Libertad
Mine, development and sustaining capital |
|
(8,677 |
) |
|
(2,920 |
) |
|
(12,269 |
) |
|
(11,700 |
) |
Limon
Mine, development and sustaining capital |
|
(3,104 |
) |
|
(1,581 |
) |
|
(6,435 |
) |
|
(2,961 |
) |
Fekola
Project, development |
|
(74,981 |
) |
|
(50,998 |
) |
|
(142,791 |
) |
|
(97,439 |
) |
Gramalote
Project, prefeasibility and exploration |
|
(2,595 |
) |
|
(2,753 |
) |
|
(5,180 |
) |
|
(2,816 |
) |
Other
exploration and development |
|
(14,660 |
) |
|
(7,800 |
) |
|
(25,673 |
) |
|
(12,833 |
) |
Cash
proceeds from sale of Lynn Lake royalty, net of transaction
costs |
|
6,593 |
|
|
— |
|
|
6,593 |
|
|
— |
|
Purchase
of non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
(6,000 |
) |
Other |
|
(91 |
) |
|
(115 |
) |
|
(117 |
) |
|
639 |
|
Cash used by investing activities |
|
(115,582 |
) |
|
(82,621 |
) |
|
(231,445 |
) |
|
(176,786 |
) |
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents |
|
(15,216 |
) |
|
(8,740 |
) |
|
(56,751 |
) |
|
14,485 |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
178 |
|
|
(527 |
) |
|
273 |
|
|
174 |
|
Cash and cash
equivalents, beginning of period |
|
103,231 |
|
|
109,069 |
|
|
144,671 |
|
|
85,143 |
|
Cash and cash
equivalents, end of period |
|
$ |
88,193 |
|
|
$ |
99,802 |
|
|
$ |
88,193 |
|
|
$ |
99,802 |
|
|
|
|
|
|
|
|
|
|
|
B2GOLD CORP. |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
(Expressed
in thousands of United States dollars) |
(Unaudited) |
|
|
|
As at June 30,
2017 |
|
As at December 31, 2016 |
Assets |
|
|
|
|
Current |
|
|
|
|
Cash and
cash equivalents |
|
$ |
88,193 |
|
|
$ |
144,671 |
|
Accounts
receivable, prepaids and other |
|
11,251 |
|
|
10,723 |
|
Value-added and other tax receivables |
|
23,603 |
|
|
16,984 |
|
Inventories |
|
111,232 |
|
|
104,691 |
|
|
|
234,279 |
|
|
277,069 |
|
Long-term
investments |
|
9,215 |
|
|
10,028 |
|
Value-added tax
receivables |
|
19,353 |
|
|
18,024 |
|
Mining
interests |
|
|
|
|
Owned by
subsidiaries |
|
2,125,599 |
|
|
1,950,356 |
|
Investments in joint ventures |
|
58,158 |
|
|
53,724 |
|
Other
assets |
|
32,410 |
|
|
26,934 |
|
|
|
$ |
2,479,014 |
|
|
$ |
2,336,135 |
|
Liabilities |
|
|
|
|
Current |
|
|
|
|
Accounts
payable and accrued liabilities |
|
$ |
89,329 |
|
|
$ |
81,722 |
|
Current
taxes payable |
|
5,342 |
|
|
13,180 |
|
Current
portion of long-term debt |
|
20,688 |
|
|
13,935 |
|
Current
portion of derivative instruments at fair value |
|
5,573 |
|
|
3,466 |
|
Current
portion of prepaid sales |
|
60,000 |
|
|
57,450 |
|
Other |
|
7,212 |
|
|
6,288 |
|
|
|
188,144 |
|
|
176,041 |
|
Derivative
instruments at fair value |
|
3,901 |
|
|
6,439 |
|
Long-term
debt |
|
561,671 |
|
|
472,845 |
|
Prepaid
sales |
|
60,000 |
|
|
62,550 |
|
Mine
restoration provisions |
|
82,075 |
|
|
81,162 |
|
Deferred income
taxes |
|
71,592 |
|
|
74,072 |
|
Employee
benefits obligation |
|
7,820 |
|
|
7,860 |
|
Other long-term
liabilities |
|
510 |
|
|
602 |
|
|
|
975,713 |
|
|
881,571 |
|
Equity |
|
|
|
|
Shareholders’
equity |
|
|
|
|
Share
capital |
|
|
|
|
Issued:
978,012,126 common shares (Dec 31, 2016 – 964,892,433) |
|
2,189,748 |
|
|
2,151,993 |
|
Contributed surplus |
|
51,907 |
|
|
56,191 |
|
Accumulated other comprehensive loss |
|
(94,876 |
) |
|
(95,435 |
) |
Deficit |
|
(652,230 |
) |
|
(667,760 |
) |
|
|
1,494,549 |
|
|
1,444,989 |
|
Non-controlling
interests |
|
8,752 |
|
|
9,575 |
|
|
|
1,503,301 |
|
|
1,454,564 |
|
|
|
$ |
2,479,014 |
|
|
$ |
2,336,135 |
|
|
|
|
|
|