B2Gold Corp. (TSX:BTO)(NYSE AMERICAN:BTG)(NSX:B2G) (“B2Gold” or the
“Company”) is pleased to announce its operational and financial
results for the three and nine months ended September 30, 2017. The
Company previously released its gold production and gold revenue
results for the third quarter of 2017 (see news release dated
10/13/17). All dollar figures are in United States dollars unless
otherwise indicated. In addition, the Company is pleased to
announce that the ramp up to full scale production at the Fekola
Mine is ahead of schedule with gold production well above budget in
September and October. The Company now expects the Fekola Mine to
achieve commercial production by the end of November.
2017 Third Quarter
Highlights
- Consolidated gold production of 135,628 ounces, including 6,340
ounces of pre-commercial gold in-circuit production from Fekola,
exceeding (original) budget by 2% (or 2,254 ounces) and reforecast
production by 15% (or 17,372 ounces)
- Consolidated gold revenue of $154.1 million on sales of 121,597
ounces at an average price of $1,267 per ounce
- Otjikoto Mine achieved record quarterly production of 55,151
ounces
- Fekola Mine construction completed, and processing of ore
commenced more than three months ahead of schedule, in September
2017
- First gold pour at the Fekola Mine achieved on October 7,
2017
- In October 2017, subsequent to the third quarter, the Fekola
Mine produced 33,946 ounces of gold in the month (significantly
surpassing budget of 15,100 ounces) and is now expected to achieve
commercial production (four months ahead of original schedule) by
the end of November
- Consolidated cash operating costs (see “Non-IFRS Measures”) of
$563 per ounce, $28 per ounce (or 5%) below budget
- Consolidated all-in sustaining costs (“AISC”) (see “Non-IFRS
Measures”) of $921 per ounce, $66 per ounce (or 8%) above budget,
due to the timing of capital expenditures, but year-to-date AISC of
$927 per ounce remained well below budget
- Cash flow from operating activities (after non-cash working
capital changes) of $41.8 million ($0.04 per share)
- Strong cash position of $89.7 million at quarter-end combined
with additional liquidity of $175 million available for draw down
on the Company’s upsized corporate revolving credit facility
- In July 2017, the Masbate operations were presented with the
Philippine Department of Environment and Natural Resources’
(“DENR”) prestigious Saringaya Award for its contribution to
environmental protection, conservation and management in the
regions surrounding the Masbate Mine
- In July 2017, the Company secured a $500 million upsized
corporate revolving credit facility, representing a $75 million
increase from the existing facility
- For full-year 2017, the Company is on track to meet the high
end of its revised annual consolidated production guidance range of
between 530,000 and 570,000 ounces of gold and be at the lower end
of its guidance ranges for cash operating costs (of between $610 to
$650 per ounce) and AISC (of between $940 to $970 per ounce)
- 2018 outlook provides for dramatic production growth of
approximately 70%, with the planned first full year of production
from the Fekola Mine, consolidated annual gold production is
expected to increase significantly to between 925,000 and 975,000
ounces with cash operating costs and AISC expected to decrease and
be approximately $525 per ounce and $800 per ounce,
respectively
2017 Third Quarter and First Nine Months
Operational Results
Consolidated gold production in the third
quarter of 2017 was 135,628 ounces, including 6,340 ounces of
pre-commercial production from the newly constructed Fekola Mine in
Mali (attributable to the increase in its gold in-circuit inventory
in September), exceeding (original) budget by 2% (or 2,254 ounces)
and reforecast production by 15% (or 17,372 ounces). The better
than budgeted and reforecast consolidated gold production reflects
the continued very strong operational performances of both the
Masbate Mine in the Philippines and the Otjikoto Mine in Namibia as
well as the successful early start-up of the Fekola Mine in
September (see “Operations” section below).
On September 25, 2017, the Company announced
that it had completed construction of the Fekola mill on budget and
commenced ore processing at the Fekola Mine, more than three months
ahead of schedule. Commissioning of the mill is ongoing and is
expected to ramp up quickly to achieve commercial production by the
end of November 2017, four months ahead of the original schedule.
The Fekola mill started processing ore on September 24, 2017, and
treated 57,695 tonnes of ore at a grade of 3.54 g/t over the
remainder of the month of September with a gold recovery of 96.6%,
producing 6,340 ounces of in-circuit gold inventory (nil ounces
budgeted). The first pour at the Fekola Mine was achieved on
October 7, 2017.
In October 2017, the first full month of ramp up
and pre-commercial production, the Fekola mill treated 324,525
tonnes of ore (budgeted – 225,804 tonnes) at an average grade of
3.40 g/t (budgeted – 2.33 g/t) with a gold recovery of 95.4%
(budgeted – 90.0%), producing a total of 33,946 ounces of gold in
the month (surpassing budget of 15,100 ounces). Mill availability
was 75% (budgeted – 50%) and the mill was operating at design
throughput (of 607 tonnes per hour) during the latter half of the
month. For 2017, the Company is projecting gold production from
Fekola to exceed its reforecast production guidance range of
between 50,000 and 55,000 ounces (at an expected cash operating
cost of $580 to $620 per ounce). 2018 is scheduled to be the first
full year of gold production at Fekola, yielding 400,000 to 410,000
ounces for the year at a cash operating cost of approximately $354
per ounce of gold and AISC of $609 per ounce of gold.
In the third quarter of 2017, consolidated cash
operating costs were $563 per ounce (Q3 2016 – $491 per ounce), $28
per ounce (or 5%) below budget. The favourable variance against
budget reflects higher than budgeted gold production at the Masbate
and Otjikoto mines combined with slightly lower production costs at
the Masbate and Otjikoto mines. Consolidated AISC in the quarter
were $921 per ounce (Q3 2016 – $702 per ounce), $66 per ounce (or
8%) above budget. The increase was mainly a result of higher than
budgeted capital expenditures at the Otjikoto Mine due to the
timing of the purchase of mobile equipment during the third
quarter, which was originally planned for earlier in 2017. However,
year-to-date, consolidated AISC remained well below budget.
Consolidated gold production in the first nine
months of 2017 was 389,812 ounces (YTD 2016 – 409,772 ounces), 3%
(or 11,820 ounces) better than (original) budget and 5% (or 17,372
ounces) better than reforecast production.
Year-to-date, consolidated cash operating costs
were $585 per ounce (YTD 2016 – $495 per ounce), $62 per ounce (or
10%) below budget, and consolidated AISC were $927 per ounce (YTD
2016 – $765 per ounce), $122 per ounce (or 12%) below budget.
For full-year 2017, B2Gold is projecting another
year of solid growth with forecast production for the year expected
to be at the upper end of the Company's revised guidance range of
530,000 to 570,000 ounces and to be at the lower end of its
guidance ranges for cash operating costs (of between $610 to $650
per ounce) and AISC (of between $940 and $970 per ounce). The
Company expects continued strong performances from Masbate and
Otjikoto, combined with Fekola’s early September 24, 2017,
pre-commercial production start, to offset any lower production
from La Libertad and El Limon.
Looking forward to 2018, with the planned first
full year of production from the Fekola Mine (based on current
assumptions and updates to the Company’s long-term mine plans), the
Company is projecting its consolidated gold production to increase
by over 70% and to be between 925,000 and 975,000 ounces. The
Fekola Mine is projected to be a large low-cost producer that will
result in a significant reduction in the Company’s forecast 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
approximately $525 per ounce and $800 per ounce, respectively.
These increased production levels and low costs
are expected to dramatically increase B2Gold’s production revenues,
cash from operations and cash flow for many years, based on current
assumptions (including a gold price assumption of $1,275 per
ounce). On average over the next three years, beginning in 2018,
the Company is projecting per annum gold sales revenues of
approximately $1.2 billion, cash flow from operations of
approximately $0.5 billion and a significant increase in free cash
flow (operating cash flows less investing cash flows).
2017 Third Quarter and First Nine Months
Financial Results
Consolidated gold revenue in the third quarter
of 2017 was $154.1 million on sales of 121,597 ounces at an average
price of $1,267 per ounce compared to $193.0 million on sales of
145,029 ounces at an average price of $1,331 per ounce in the third
quarter of 2016. The 20% (or $38.9 million) decrease in revenue was
mainly attributable to a 16% decrease in gold sales volume, due to
lower production and the timing of gold shipments, and a 5%
decrease in the average realized gold price. The decrease in sales
volumes reflects a 12% decrease in gold production (excluding
in-circuit Fekola pre-commercial production ounces). In addition,
the timing of gold shipments at several sites impacted the
available gold for sale in the third quarter of 2017. These ounces
will be sold in the fourth quarter of 2017.
Consolidated gold revenue in the three and nine
months ended September 30, 2017, included $15 million and $45
million, respectively, relating 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. Proceeds from the Prepaid Sales transactions, used to fund
the Fekola Mine construction, were originally received in March
2016 and are being recognized in revenue as the underlying Prepaid
Sales ounces are delivered into. During the three and nine months
ended September 30, 2017, 12,908 ounces and 38,724 ounces,
respectively, were delivered under these contracts.
Cash flow provided by operating activities
(after non-cash working capital changes) was $41.8 million ($0.04
per share) in the third quarter of 2017 compared to $90.3 million
($0.10 per share) in the third quarter of 2016. The decrease
reflected the delivery of 12,908 ounces of gold into the Company’s
Prepaid Sales contracts in the quarter (representing $15 million of
gold sales revenue for which no cash proceeds were received in the
current quarter), lower gold sales revenue (as previously described
above) and higher operating costs. In 2018, the Company’s cash flow
from operations is expected to increase significantly (relative to
2017) driven by new gold production from the Fekola Mine.
The Company generated net income of $12.4
million ($0.01 per share) in the quarter compared to net income of
$35.7 million ($0.04 per share) in the same quarter last year.
Adjusted net income (refer to “Non-IFRS Measures”) was $13.9
million ($0.01 per share) in the third quarter of 2017 compared to
$48.6 million ($0.05 per share) in the prior-year quarter. The
decrease in adjusted net income was mainly attributable to lower
gold sales revenue (as previously described above) and higher
operating costs.
Consolidated gold revenue for the first nine
months of 2017 was $464.7 million on sales of 373,271 ounces at an
average price of $1,245 per ounce compared to $502.1 million on
sales of 396,757 ounces at an average price of $1,266 per ounce in
the first nine months of 2016.
Year-to-date, cash flow from operating
activities (after non-cash working capital changes) was $129.4
million ($0.13 per share) compared with $329.5 million ($0.35 per
share) in the first nine months of 2016. Included in the prior-year
period was $120 million of proceeds received from the Company’s
Prepaid Sales transactions in March 2016.
For the nine months ended September 30, 2017,
the Company generated net income of $27.1 million ($0.03 per share)
compared to net income of $30.5 million ($0.04 per share) in the
comparable period of 2016. Adjusted net income for the nine months
ended September 30, 2017, was $46.1 million ($0.05 per share)
compared to $96.5 million ($0.10 per share) for the nine months
ended September 30, 2016. The decrease in adjusted net income was
mainly attributable to lower gold sales revenue (as previously
described above) and higher operating costs.
Liquidity and Capital
Resources
At September 30, 2017, the Company remained in a
solid financial position with working capital of $35.2 million
including unrestricted cash and cash equivalents of $89.7 million.
In addition, the Company had drawn $325 million under its $500
million amended revolving credit facility, leaving an undrawn and
available balance at September 30, 2017, of $175 million. At
September 30, 2017, the Company also had Euro 36.4 million of
undrawn capacity on its Fekola equipment loan facility and $9.1
million of undrawn capacity on its Masbate equipment loan
facility.
Operations
Mine-by-mine gold production in the third
quarter and first nine months of 2017 was as
follows:
Mine |
Q3 2017Gold
Production(ounces) |
YTD 2017Gold
Production(ounces) |
2017RevisedAnnual
Production Guidance(ounces) |
2017OriginalAnnual
Production Guidance(ounces) |
Masbate |
46,557 |
149,049 |
180,000 – 185,000 |
175,000 – 185,000 |
Otjikoto |
55,151 |
139,088 |
170,000 – 180,000 |
165,000 – 175,000 |
La Libertad |
16,487 |
67,641 |
90,000 – 100,000 |
110,000 – 120,000 |
El Limon |
11,093 |
27,694 |
40,000 – 50,000 |
50,000 – 60,000 |
Subtotal |
129,288 |
383,472 |
480,000 – 515,000 |
500,000 – 540,000 |
Fekola (pre-commercial) |
6,340 |
6,340 |
50,000 – 55,000 |
45,000 – 55,000 |
|
|
|
|
|
B2Gold Consolidated |
135,628 |
389,812 |
530,000 – 570,000 |
545,000 – 595,000 |
Masbate Gold Mine – Philippines
The Masbate Mine in the Philippines continued to
exceed expectations, producing 46,557 ounces of gold in the third
quarter of 2017, 20% (or 7,799 ounces) above both (original) budget
and reforecast production, and comparable with the prior-year
quarter. Gold production exceeded budget and reforecast production
due to better than expected throughput and recoveries mainly driven
by significantly 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. The Masbate Mine has
continued its outstanding safety performance, achieving two years
without a “Lost-Time-Injury” on October 12, 2017.
Mill throughput in the quarter was 1,704,723
tonnes compared to budget of 1,619,060 tonnes and 1,604,176 tonnes
in the third quarter of 2016. Mill recoveries averaged 77.4% which
was better than budget of 68.9% and 77.2% in the third quarter of
2016. The average grade processed was 1.10 g/t compared to budget
of 1.08 g/t and 1.20 g/t in the third quarter of 2016. As
expected, grades were higher in the prior-year quarter attributable
to the high-grade ore from the Main Vein Stage 1 Pit which is no
longer active.
Masbate’s third quarter cash operating costs
were $541 per ounce (Q3 2016 – $466 per ounce), significantly below
budget by $203 per ounce (or 27%). 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. Masbate’s AISC in the third quarter were
$717 per ounce (Q3 2016 – $650 per ounce), significantly below
budget by $339 per ounce (or 32%). AISC were below budget as a
result of lower cash operating costs and sustaining capital
expenditures due to the timing of mobile equipment purchases which
were expected in the third quarter of 2017 but are now expected to
occur in the fourth quarter of 2017.
Year-to-date, gold production at Masbate was
149,049 ounces (YTD 2016 – 157,591 ounces), significantly
above (original) budget by 12% (or 16,043 ounces) and 6% (or 7,799
ounces) more than reforecast production.
Masbate’s cash costs remained significantly
below budget in the first nine months of the year with cash
operating costs of $527 per ounce (YTD 2016 – $437 per ounce),
$161 per ounce (or 23%) below budget, and AISC of $800 per ounce
(YTD 2016 – $612 per ounce), $256 per ounce (or 24%) below
budget. Compared to the prior-year period, Masbate’s AISC
increased, reflecting higher fuel costs as well as its 2017 planned
mine fleet replacement and expansion program. However, in 2018,
Masbate’s mine equipment purchases are planned to significantly
decrease (relative to 2017).
Capital expenditures in the third quarter of
2017 totaled $6.1 million including pre-stripping costs of $1.6
million, mobile equipment costs of $1.2 million and powerhouse
upgrade costs of $1.0 million. Year-to-date capital expenditures
totaled $36.5 million, consisting mainly of mobile equipment costs
of $17.2 million, pre-stripping costs of $6.1 million, powerhouse
upgrade costs of $3.4 million and processing plant upgrades of $3.1
million.
For full-year 2017, the Masbate Mine is well on
track to meet or exceed the high end of its previously increased
production guidance range of between 180,000 to 185,000 ounces of
gold (original guidance was 175,000 to 185,000 ounces) while
meeting the low end of its guidance range for cash operating costs
of between $595 to $635 per ounce and AISC of between $935 and $975
per ounce.
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.
The Philippine Mining Industry Coordinating
Council ("MICC") (the MICC is the oversight committee for the DENR)
has voted to rescind the existing Department Administrative Order
which bans new open-pit mines (does not apply to current Masbate
operations). They have indicated that the order may be lifted
provided that mining laws, rules and regulations are strictly
enforced.
Otjikoto Gold Mine – Namibia
The Otjikoto Mine in Namibia produced a
quarterly record 55,151 ounces of gold in the third quarter of
2017, 14% (or 6,793 ounces) above both (original) budget and
reforecast production, and 16% (or 7,587 ounces) higher than the
third quarter of 2016. As mining advances into the consolidated
rock in the Wolfshag Phase 1 Pit, the amount of high-grade ore
tonnage mined from Wolfshag continues to be significantly higher
than modelled. Analysis of the Wolfshag model is ongoing to
determine whether this positive variance in the amount of
high-grade ore tonnage continues throughout the entire Wolfshag
orebody.
The average gold grade processed in the quarter
was 1.99 g/t compared to budget of 1.85 g/t and 1.66 g/t in the
third quarter of 2016. Grade exceeded budget due to the higher
amount of high-grade ore being sourced from Wolfshag which
increased the overall average mill feed grade at Otjikoto. Mill
throughput for the quarter was 873,516 tonnes compared to budget of
832,784 tonnes and 910,036 tonnes in the third quarter of 2016.
Mill recoveries remained high and averaged 98.5%, slightly above
both budget and the prior-year
quarter.
Otjikoto’s third quarter cash operating costs
were $447 per ounce, slightly better than budget. Compared to the
prior-year quarter, cash operating costs were $103 per ounce higher
as the prior-year quarter had benefited from a weaker Namibian
dollar and lower fuel prices. Otjikoto’s AISC in the third quarter
were $809 per ounce (Q3 2016 – $474 per ounce), above budget
by $160 per ounce. The increase over budget was mainly attributable
to the timing of the purchase of mobile equipment during the third
quarter which was originally planned for earlier in 2017. However,
year-to-date, Otjikoto’s AISC remained significantly below
budget.
During the first nine months of 2017, the
Otjikoto Mine produced a year-to-date record 139,088 ounces of
gold, 16% (or 19,148 ounces) above (original) budget and 5% (or
6,793 ounces) more than reforecast production, and 16% (or 19,649
ounces) higher compared to the same period last year.
Otjikoto’s cash costs were significantly below
budget in the first nine months of 2017 with cash operating costs
of $459 per ounce (YTD 2016 – $368 per ounce), $101 per ounce
(or 18%) below budget, and AISC of $756 per ounce (YTD 2016
– $611 per ounce), $235 per ounce (or 24%) below
budget.
Capital expenditures in the third quarter of
2017 totaled $20.9 million consisting of $9.0 million for mining
equipment, $4.8 million for installation of a solar power plant,
$3.1 million for capitalized equipment rebuilds and $3.0 million
for pre-stripping. For the nine months ended September 30, 2017,
capital expenditures totaled $36.1 million consisting of $11.9
million for mobile equipment purchases, $9.5 million for
pre-stripping, $6.4 million for capital repairs and $4.8 million
for installation of the solar power plant. Total capital
expenditures for the year are expected to be under budget due to a
combination of lower pre-stripping costs and a slight delay in the
solar plant construction.
For full-year 2017, the Otjikoto Mine remains
well on track to meet or exceed the high end of its previously
increased production guidance range of between 170,000 to 180,000
ounces of gold (original guidance was 165,000 to 175,000 ounces)
while meeting the low end of its guidance range for cash operating
costs of between $480 to $520 per ounce and AISC of between $725
and $765 per ounce.
Geotechnical, hydrogeological and design studies
for Wolfshag have been completed. These studies, coupled with
an updated resource model, indicate that a larger open pit, which
is the Company’s preferred option, have similar positive economics
to the underground option. In addition, the Wolfshag resource
remains open down-plunge which may be exploitable in the future by
underground mining.
La Libertad Gold Mine – Nicaragua
La Libertad Mine in Nicaragua produced 16,487
ounces of gold in the third quarter of 2017 (Q3 2016 – 37,261
ounces), approximately in-line with revised guidance (but lower
than originally budgeted as gold production at La Libertad was
negatively impacted by permitting delays for new mining areas).
Year-to-date, gold production at La Libertad was 67,641 ounces (YTD
2016 – 97,266 ounces), approximately in-line with reforecast
but 18,679 ounces lower than (original) budget.
As previously released, the Company has changed
its planned sequencing for bringing the Jabali Antenna Pit into the
mine plan (originally forecast to enter production in the third
quarter of 2017). With strong support from the Nicaraguan
government, the Company is now focused on bringing the San Juan and
San Diego open pits into production in the second half of 2017
ahead of the Jabali Antenna Pit. In September 2017, the San Juan
mining permit was received, and it is anticipated that the San
Diego mining permit will also be received by early December
(following public consultation). Mining has already commenced in
the San Juan Pit and is expected to commence in the San Diego Pit
upon receipt of its permit. The Company has also made significant
progress in resettlement and permitting activities at the
high-grade Jabali Antenna Pit and is expecting to receive its
permit in time to start production from the pit in the third
quarter of 2018.
La Libertad’s third quarter cash costs, on a per
ounce basis, were impacted by the lower than planned production
with cash operating costs of $788 per ounce (Q3 2016 – $637
per ounce) and AISC of $1,187 per ounce (Q3 2016 – $788 per
ounce), both well above the original budget. Year-to-date, La
Libertad’s cash operating costs were $780 per ounce (YTD 2016
– $658 per ounce) and AISC were $1,019 per ounce (YTD 2016
– $913 per ounce).
Total capital expenditures in the third quarter
of 2017 were $5.9 million, consisting primarily of $2.7 million in
project development costs related to the new San Juan and San Diego
open pits and underground development costs of $2.5 million. For
the nine months ended September 30, 2017, capital expenditures
totaled $18.1 million, consisting primarily of underground
development costs of $4.9 million, La Esperanza Tailings Dam
expansion of $4.7 million, project development costs of $4.5
million and land acquisitions of $3.1 million.
For full-year 2017, La Libertad’s production is
expected to be at the low end of its revised production guidance
range of between 90,000 to 100,000 ounces of gold (original
guidance was 110,000 to 120,000 ounces) and to be at the upper end
of its cash operating costs (of between $795 to $835 per ounce) and
AISC (of between $1,075 and $1,115 per ounce) guidance ranges.
Inclusion of the newly permitted open pits is expected to increase
gold production in the fourth quarter of 2017, resulting in total
2017 production near the lower end of revised guidance. With
the permitting of Jabali Antenna (currently scheduled for Q2 2018)
gold production for 2018 is expected to reach original 2017
guidance, up to 120,000 ounces. The Company has a successful track
record of converting its mineral resources to reserves. Permitting
and development of San Juan, San Diego and Jabali Antenna Permits,
combined with successful conversion of underground resources to
reserves at Mojon and Jabali, have the potential to extend the LoM
at La Libertad for an additional two years (past 2018).
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. In addition, exploration continues
at La Libertad for additional open pit or underground mineral
targets.
El Limon Gold Mine – Nicaragua
El Limon Mine in Nicaragua produced 11,093
ounces of gold in the third quarter of 2017 (Q3 2016 – 14,185
ounces), in-line with revised guidance and a significant
improvement compared to 7,740 ounces produced in the second quarter
of 2017. Throughout the year, El Limon’s production had been
negatively affected by water pumping issues which had reduced
high-grade ore flow from Santa Pancha Underground. However, with
the successful rehabilitation of the Santa Pancha 1 dewatering well
at the beginning of the third quarter, mine output and production
grade are now improving. Year-to-date, gold production at El Limon
was 27,694 ounces (YTD 2016 – 35,476 ounces).
During the quarter, four Environmental Impact
Assessments (“EIA”) were presented to the Nicaraguan government for
approval relating to both open pit and underground mining projects:
Mercedes – Aparejo, Veta Nueva, Santa Emilia South and Mercedes
South. The EIA for the Mercedes South Pit has been approved and the
permit process is now advancing to the public consultation phase.
Development of this pit is anticipated to commence in the fourth
quarter of 2017 and is expected to provide an open-pit source to
complement underground operations for the duration of 2018.
El Limon’s third quarter cash costs, on a per
ounce basis, were impacted by the lower than planned production
with cash operating costs of $901 per ounce (Q3 2016 – $682
per ounce) and AISC of $1,409 per ounce (Q3 2016 – $1,067 per
ounce), both well above budget. Year-to-date, El Limon’s cash
operating costs were $1,050 per ounce (YTD 2016 – $725 per
ounce) and AISC were $1,599 per ounce (YTD 2016 – $1,101 per
ounce).
Capital expenditures in the third quarter of
2017 totaled $4.5 million which consisted mainly of underground
development costs for Santa Pancha of $2.3 million, mining
development/project costs of $0.7 million and mobile equipment
costs of $0.7 million. For the nine months ended September 30,
2017, capital expenditures totaled $11.0 million which consisted
mainly of underground development costs for Santa Pancha of $5.9
million, mobile equipment costs of $2.2 million and mining
development/project costs of $1.5 million.
The Company anticipates gold production from
Santa Pancha 1 to continue to increase and El Limon’s cash
operating costs to decrease in the fourth quarter of 2017. For
full-year 2017, El Limon’s production is expected to be at the low
end of its revised production guidance range of between 40,000 to
50,000 ounces of gold (original guidance was 50,000 to 60,000
ounces) with cash operating costs and AISC expected to be at the
high end of guidance (of between $815 to $855 per ounce and between
$1,415 and $1,455 per ounce, respectively). In 2018, El Limon’s
gold production is expected to return to more normal levels and be
between 50,000 and 60,000 ounces.
Ongoing El Limon Exploration and Development
In 2017, El Limon’s exploration budget was
increased to $7 million to include 28,600 metres of drilling (over
157 holes) with a focus on El Limon Vein system. The system
comprises of the Pozo Bono, Limon Sur, Limon Central, Limon North
and Tigra-Chaparral zones, most of which were previously partially
mined by both open pit and underground methods. Drilling to date
has identified a new large good grade near-surface zone that the
Company believes could be exploitable by open-pit mining. This has
the potential to significantly extend the current mine life at El
Limon and may support an expansion of El Limon’s milling and
production capacity. In November 2017, the Company expects to
announce the results of its 2017 drill campaign.
In 2017, an initial study was completed
regarding the potential re-processing of the old tailings at El
Limon. Based on historic mill and drilling records, the tailings
contain an estimated 9 million to 11 million tonnes with a
potential gold grade of 0.80 g/t to 1.0 g/t. An ongoing drilling
program is underway as part of a Feasibility Study which will
confirm resources and grades, the optimum grind size, capital costs
and final project economics. Based on the initial study completed
in 2017, the Company believes that the project has the potential to
produce an average of approximately 20,000 to 25,000 ounces of gold
and 70,000 to 80,000 ounces of silver per year for approximately 9
to 11 years. The concept is to regrind the old tailings to a much
finer grind size, process them through a new CIP plant and place
the tailings in a new lined tailings storage facility. The
potential quantity and grade included in the initial study is
conceptual in nature and there has been insufficient exploration to
date to define a mineral resource and it is uncertain if further
exploration will result in the target being delineated as a mineral
resource.
Fekola Gold Mine – Mali
On September 25, 2017, the Company announced
that it had completed construction of the Fekola mill on budget and
commenced ore processing at the Fekola Mine, more than three months
ahead of schedule. Commissioning of the mill is ongoing and is
expected to ramp up quickly to achieve commercial production by the
end of November 2017, four months ahead of the original schedule.
The Fekola mill started processing ore on September 24, 2017, and
treated 57,695 tonnes of ore at a grade of 3.54 g/t over the
remainder of the month of September with a gold recovery of 96.6%,
producing 6,340 ounces of in-circuit gold inventory (nil ounces
budgeted). The first pour at the Fekola Mine was achieved on
October 7, 2017.
In October 2017, the first full month of ramp up
and pre-commercial production, the Fekola mill treated 324,525
tonnes of ore (budgeted – 225,804 tonnes) at an average grade
of 3.40 g/t (budgeted – 2.33 g/t) with a gold recovery of
95.4% (budgeted – 90.0%), producing a total of 33,946 ounces
of gold in the month (surpassing budget of 15,100 ounces). Mill
availability was 75% (budgeted – 50%) and the mill was
operating at design throughput (of 607 tonnes per hour) during the
latter half of the month. For 2017, the Company is projecting gold
production from Fekola to exceed its reforecast production guidance
range of between 50,000 and 55,000 ounces (at an expected cash
operating cost of $580 to $620 per ounce). 2018 is scheduled to be
the first full year of gold production at Fekola, yielding 400,000
to 410,000 ounces for the year at a cash operating cost of
approximately $354 per ounce of gold and AISC of $609 per ounce of
gold.
Based on the new LoM plan, the Fekola Mine is
projected to produce approximately 400,000 ounces of gold annually
for the first three years at cash operating costs of $357 per ounce
and AISC of $604 per ounce. For the first seven years, the Fekola
Mine is projected to produce approximately 374,000 ounces of gold
annually with cash operating costs of $391 per ounce and AISC of
$643 per ounce. Over the initial ten-year LoM, Fekola is projected
to produce an average of 345,000 ounces per annum at cash operating
costs of $428 per ounce and AISC of $664 per ounce.
Fekola Project capital expenditures for the
three and nine months ended September 30, 2017 totaled $65.3
million and $208.1 million, respectively, versus a total budget of
$64.7 million and $210.6 million, respectively. Expenditures for
the Fekola Project to date were $579.2 million, including
construction costs, Fekola mill expansion, Fadougou relocation,
pre-stripping, additional mine fleet purchases and $41 million of
preconstruction expenditures. The total Fekola Project costs to
date of $579.2 million are approximately $8 million less than the
project budget to date of $587.0 million.
Ongoing Fekola Exploration
Based on exploration to date, B2Gold’s
exploration team believes there is significant potential to
increase the mine life of Fekola through further exploration
drilling. The $15 million 2017 exploration drill program is ongoing
at the Fekola property and regional area. The drilling is focused
on testing the potential extension of the Fekola deposit to the
north and the mineralized bedrock zones beneath the Anaconda
saprolite resource on the Fekola Project area.
Infill drilling continues on the resources
outlined immediately below the Fekola reserve boundary, immediately
to the north of the boundary and the near-surface portion of the
Kiwi zone (to the north, now part of Fekola). The Company estimates
that it could add up to 900,000 ounces of gold, consisting of
720,000 ounces from the existing indicated category and 180,000
from the existing inferred category to the Fekola Mine plan with
further infill drilling. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. Exploration
drilling at Fekola has included step out drilling to the north of
the Fekola resource to begin testing the ultimate size potential of
the Fekola deposit. Results from these drill programs will be
released shortly.
Outlook
In addition to another strong quarter of
operating and financial results, B2Gold achieved a major milestone
that is transformative for the Company, when it completed
construction of the large Fekola Mine, in southwest Mali, in late
September 2017. Ore processing commenced on September 24, with the
first gold poured on October 7. The mine is now in the
commissioning stage, ramping up to full scale, commercial
production. The ramp up has gone very well and the Company expects
to achieve commercial production by the end of November, four
months ahead of the original schedule and one month ahead of the
revised schedule.
During ramp up, the mine and mill facilities
have performed well, significantly beating budget for ore-grade
mill throughput, gold recoveries and gold produced. Including the
last few days of September and the full month of October, the
Fekola Mine has produced 40,286 ounces of gold, beating the
budgeted production of 15,100 ounces by 167% (or 25,186 ounces).
The Company previously projected 50,000 to 55,000 ounces of gold
production from Fekola, during the ramp up from October to year-end
2017. Based on the mine’s strong operating performance to
date, the Company now expects to exceed the upper level of Fekola’s
production guidance for the fourth quarter.
In 2018, the first full year of Fekola
production, the Company is projecting approximately 400,000 to
410,000 ounces of gold from the Fekola Mine with low projected cash
operating costs and AISC of approximately $354 per ounce and $609
per ounce, respectively. This additional gold production for B2Gold
increases projected consolidated 2018 production to between 925,000
to 975,000 ounces with consolidated projected cash operating costs
and AISC of approximately $525 and $800 per ounce of gold
respectively.
These impressive production levels and low costs
will dramatically increase B2Gold’s production revenues, cash from
operations and cash flow for many years, based on current
assumptions (including a gold price assumption of $1,275 per
ounce). On average over the next three years, beginning in 2018,
the Company is projecting per annum gold sales revenues of
approximately $1.2 billion, cash flow from operations of
approximately $0.5 billion and a significant increase in free cash
flow (operating cash flows less investing cash flows).
Looking forward, the Company will remain focused
on continuing its impressive performance from existing mines while
maintaining the priorities of safety, environmental management and
efficient responsible mining. In addition, B2Gold will continue
with its successful strategy of growing as a profitable gold
producer through the exploration and development of existing
projects, and the potential acquisition of accretive development
stage projects or producing mines.
For the foreseeable future, the Company’s
strategy will be to focus on the Fekola Mine, ramp up to full
production, aggressive exploration to determine the ultimate size
of the Fekola deposit, test other exploration targets in the Fekola
area, and exploration and development studies at its other mines
and identified targets. Positive results from the aggressive 2017
exploration drilling programs at Fekola will be released
shortly.
About B2Gold
Headquartered in Vancouver, Canada, B2Gold Corp.
is one of the fastest-growing intermediate gold producers in the
world. Founded in 2007, today, B2Gold has five operating gold mines
and numerous exploration and development projects in various
countries including Nicaragua, the Philippines, Namibia, Mali,
Burkina Faso, Colombia and Finland.
Based on current assumptions and updates to
B2Gold’s current year guidance and long-term mine plans, the
Company is projecting consolidated gold production in 2017 of
between 530,000 and 570,000 ounces (including estimated
pre-commercial production from the new Fekola Mine of between
50,000 and 55,000 ounces). In 2018, production is forecast to
increase significantly to between 925,000 and 975,000 ounces with
the inclusion of the anticipated first full year of commercial
production at Fekola.
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.
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.
John Rajala, Vice President of Metallurgy of
B2Gold, a qualified person under NI 43-101, has approved the El
Limon development information contained in this news release.
Third Quarter 2017 Financial Results - Conference Call
Details
B2Gold Corp. will release its third quarter 2017
financial results before the North American markets open on
Wednesday, November 8, 2017.
B2Gold executives will host a conference call to
discuss the results on Wednesday, November 8,
2017, 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 http://www.investorcalendar.com/event/21171. 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 1308311).
On Behalf of B2GOLD CORP.
“Clive T.
Johnson”
President and Chief Executive
Officer
For more information on B2Gold please visit the
Company website at www.b2gold.com or contact:
Ian MacLean |
|
Katie Bromley |
Vice President,
Investor Relations |
|
Manager, Investor
Relations & Public Relations |
604-681-8371 |
|
604-681-8371 |
kbromley@b2gold.com |
|
imaclean@b2gold.com |
The Toronto Stock Exchange and the NYSE American LLC neither
approve nor disapprove 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, forecasts, expectations and other
statements regarding future financial and operational performance,
events, production, including consolidated and project-specific
projections of gold production in 2017 and 2018, gold sales and
revenue, future metal prices, costs, including projected
consolidated cash operating costs and all-in sustaining costs,
payments, capital expenditures, mobile equipment purchases,
acquisitions, investments, budgets, ore grades, sources and types
of ore, stripping ratios, throughput, cash flows, growth,
production estimates and guidance, LoM estimates, projected
increases in annual production and cash flows and decreases of
consolidated cash operating costs and all-in sustaining costs in
2018; the projections included in existing technical reports,
economic analyses and feasibility studies; anticipated or potential
new technical reports pre-feasibility and feasibility studies,
including the potential findings and conclusions thereof;
statements regarding anticipated exploration, development,
construction, production, permitting, expenditures, budgets and
other activities and achievements of the Company, including but not
limited to: the expectation that increased production levels and
low costs would increase production revenues, cash from operations
and cash flow for many years; timing of commercial production at
the Fekola Mine; Fekola Mine being a low-cost producer and its
anticipated effect on the Company’s gold production and per ounce
costs; estimates, assumptions and forecasts included in the Fekola
Mine’s new LoM plan; the potential to increase LoM at Fekola
through further exploration drilling and timing of announcement of
drill results; potential for underground mining at Wolfshag; the
final outcome of MICC’s recommendation to lift current ban on new
open-pit mining projects; development of San Juan, receipt of San
Diego and Jabali Antenna Permits and the completion of resettlement
activities at Jabali Antenna, conversion of underground resources
to reserves at Mojon and Jabali and the potential to extend the LoM
at La Libertad; development of the Mercedes South Pit at El Limon
Mine and expected provision of open-pit source to complement
underground operations; the announcement of drill results and a new
inferred resource for El Limon and the potential to extend the LoM
and to expand El Limon’s milling and production capacity; continued
exploration at its mines and other identified targets; and the
availability of capital. Estimates of mineral resources and
reserves are also forward-looking statements because they
constitute projections, based on certain estimates and assumptions,
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 the Company expects 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 the Company’s 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 the Company’s 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 and financing risks; risks related
to operations in foreign and developing countries and compliance
with foreign laws; risks related to remote operations and the
availability 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
the Company’s operations including risks related to strikes and the
halting of such operations from time to time; risks related to
conflict with small scale miners; risks related to failures of
information systems or information security threats; the ongoing
audit by the DENR in relation to the Company’s Masbate Project and
the final outcome thereof; ability to maintain adequate internal
control over financial reporting as required by law; risks related
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. The
Company'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 the Company'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; the Company’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. 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
“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.
Cautionary Note to United States
InvestorsThe Company has prepared its public disclosures
in accordance with Canadian securities laws, which differ in
certain respects from U.S. securities laws. In particular, this
news release may refer to “mineral resources”, “measured 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 the SEC and are not normally permitted to be disclosed in SEC
filings by U.S. companies. U.S. investors are cautioned not to
assume that any part of a “mineral resource”, “measured mineral
resource”, “indicated mineral resource” or “inferred mineral
resource” will ever be converted into a “reserve.” In addition,
“reserves” reported by the Company under Canadian standards may not
qualify as reserves under SEC standards. Under SEC standards,
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
U.S. federal securities laws, rules and regulations. “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. Historical results or feasibility models presented herein
are not guarantees or expectations of future performance.
B2GGOLD CORP. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
OPERATIONS |
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30 |
(Expressed
in thousands of United States dollars) |
(Unaudited) |
|
For the three months ended Sept. 30,
2017 |
For the three months ended Sept. 30, 2016 |
For the nine months ended Sept. 30,
2017 |
For the nine months ended Sept. 30, 2016 |
|
|
|
|
|
Gold
revenue |
$ |
154,109 |
|
$ |
193,049 |
|
$ |
464,687 |
|
$ |
502,104 |
|
|
|
|
|
|
Cost of
sales |
|
|
|
|
Production costs |
|
(72,777 |
) |
(69,942 |
) |
(220,622 |
) |
(197,732 |
) |
Depreciation and depletion |
|
(37,551 |
) |
(44,234 |
) |
(118,946 |
) |
(117,485 |
) |
Royalties
and production taxes |
|
(6,539 |
) |
(7,840 |
) |
(17,954 |
) |
(19,261 |
) |
Total cost of
sales |
|
(116,867 |
) |
(122,016 |
) |
(357,522 |
) |
(334,478 |
) |
|
|
|
|
|
Gross
profit |
|
37,242 |
|
71,033 |
|
107,165 |
|
167,626 |
|
|
|
|
|
|
General and
administrative |
|
(8,485 |
) |
(8,137 |
) |
(25,229 |
) |
(23,799 |
) |
Share-based
payments |
|
(3,938 |
) |
(3,963 |
) |
(13,252 |
) |
(11,435 |
) |
Gain on sale of Lynn
Lake royalty |
|
— |
|
— |
|
6,593 |
|
— |
|
Write-down of mineral
property interests |
|
(2,046 |
) |
(9,749 |
) |
(3,485 |
) |
(13,616 |
) |
Provision for
non-recoverable input taxes |
|
208 |
|
(479 |
) |
(1,340 |
) |
(1,508 |
) |
Foreign exchange
losses |
|
(1,472 |
) |
(105 |
) |
(2,880 |
) |
(1,890 |
) |
Other |
|
(259 |
) |
(714 |
) |
(1,543 |
) |
(4,298 |
) |
Operating
income |
|
21,250 |
|
47,886 |
|
66,029 |
|
111,080 |
|
|
|
|
|
|
Unrealized gain (loss)
on fair value of convertible notes |
|
8,046 |
|
(9,276 |
) |
(3,932 |
) |
(52,669 |
) |
Community
relations |
|
(1,658 |
) |
(677 |
) |
(4,329 |
) |
(2,522 |
) |
Interest and financing
expense |
|
(2,140 |
) |
(2,293 |
) |
(7,411 |
) |
(8,225 |
) |
Realized losses on
derivative instruments |
|
(1,344 |
) |
(3,264 |
) |
(2,684 |
) |
(12,511 |
) |
Unrealized gains
(losses) on derivative instruments |
|
2,454 |
|
12,532 |
|
(16 |
) |
2,432 |
|
Write-down of long-term
investments |
|
(157 |
) |
(3 |
) |
(1,613 |
) |
(185 |
) |
Other |
|
(1,230 |
) |
(83 |
) |
(1,421 |
) |
(1,408 |
) |
Income before
taxes |
|
25,221 |
|
44,822 |
|
44,623 |
|
35,992 |
|
|
|
|
|
|
Current income tax,
withholding and other taxes expense |
|
(6,975 |
) |
(6,664 |
) |
(14,233 |
) |
(14,999 |
) |
Deferred income tax
(expense) recovery |
|
(5,853 |
) |
(2,480 |
) |
(3,290 |
) |
9,530 |
|
Net income for
the period |
$ |
12,393 |
|
$ |
35,678 |
|
$ |
27,100 |
|
$ |
30,523 |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
Shareholders of the Company |
$ |
11,443 |
|
$ |
34,923 |
|
$ |
26,973 |
|
$ |
32,910 |
|
Non-controlling interests |
|
950 |
|
755 |
|
127 |
|
(2,387 |
) |
Net income for
the period |
$ |
12,393 |
|
$ |
35,678 |
|
$ |
27,100 |
|
$ |
30,523 |
|
|
|
|
|
|
Earnings per
share (attributable to shareholders of the Company) |
|
|
|
|
Basic |
$ |
0.01 |
|
$ |
0.04 |
|
$ |
0.03 |
|
$ |
0.04 |
|
Diluted |
$ |
0.00 |
|
$ |
0.04 |
|
$ |
0.03 |
|
$ |
0.03 |
|
|
|
|
|
|
Weighted
average number of common shares
outstanding (in thousands) |
|
|
|
|
Basic |
|
978,680 |
|
948,305 |
|
975,246 |
|
935,276 |
|
Diluted |
|
1,058,345 |
|
970,994 |
|
990,946 |
|
947,707 |
|
B2GOLD CORP. |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH
FLOWS |
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30 |
(Expressed
in thousands of United States dollars) |
(Unaudited) |
|
For the three months ended Sept. 30,
2017 |
For the three months ended Sept. 30, 2016 |
For the nine months ended Sept. 30,
2017 |
For the nine months ended Sept. 30, 2016 |
Operating
activities |
|
|
|
|
Net
income for the period |
$ |
12,393 |
|
$ |
35,678 |
|
$ |
27,100 |
|
$ |
30,523 |
|
Mine
restoration provisions settled |
(231 |
) |
(24 |
) |
(255 |
) |
(122 |
) |
Non-cash
charges, net |
27,377 |
|
57,434 |
|
101,378 |
|
190,044 |
|
Changes
in non-cash working capital |
2,511 |
|
(6,879 |
) |
(22,814 |
) |
(10,601 |
) |
Proceeds
from prepaid sales |
— |
|
— |
|
30,000 |
|
120,000 |
|
Changes
in long-term value added tax receivables |
(278 |
) |
4,107 |
|
(6,015 |
) |
(371 |
) |
Cash provided by operating activities |
41,772 |
|
90,316 |
|
129,394 |
|
329,473 |
|
|
|
|
|
|
Financing
activities |
|
|
|
|
Credit
facility, drawdowns net of transaction costs |
70,699 |
|
— |
|
120,341 |
|
50,000 |
|
Repayment
of credit facility |
— |
|
(25,000 |
) |
— |
|
(125,000 |
) |
Otjikoto
equipment loan facility, drawdowns net of transaction costs |
6,085 |
|
— |
|
6,085 |
|
11,043 |
|
Repayment
of Otjikoto equipment loan facility |
(2,579 |
) |
— |
|
(7,117 |
) |
(3,823 |
) |
Fekola
equipment loan facility, drawdowns net of transaction costs |
— |
|
— |
|
37,132 |
|
— |
|
Repayment
of Fekola equipment loan facility |
— |
|
— |
|
(1,997 |
) |
— |
|
Masbate
equipment loan facility, drawdowns net of transaction costs |
8,114 |
|
— |
|
8,114 |
|
— |
|
Repayment
of Nicaraguan equipment loans |
(416 |
) |
(423 |
) |
(1,135 |
) |
(1,355 |
) |
Interest
and commitment fees paid |
(1,485 |
) |
(2,301 |
) |
(11,033 |
) |
(12,101 |
) |
Common
shares issued for cash on exercise of stock options |
1,869 |
|
30,234 |
|
25,068 |
|
37,029 |
|
Common
shares issued under At-The-Market offering, net of issuance
costs |
— |
|
24,963 |
|
— |
|
24,963 |
|
Restricted cash movement |
(849 |
) |
(203 |
) |
(6,948 |
) |
(1,372 |
) |
Cash provided (used) by financing activities |
81,438 |
|
27,270 |
|
168,510 |
|
(20,616 |
) |
|
|
|
|
|
Investing
activities |
|
|
|
|
Expenditures on mining interests: |
|
|
|
|
Otjikoto
Mine, development and sustaining capital |
(20,881 |
) |
(7,523 |
) |
(36,088 |
) |
(33,849 |
) |
Masbate
Mine, development and sustaining capital |
(6,114 |
) |
(4,911 |
) |
(36,480 |
) |
(22,261 |
) |
Libertad
Mine, development and sustaining capital |
(5,868 |
) |
(2,287 |
) |
(18,137 |
) |
(13,987 |
) |
Limon
Mine, development and sustaining capital |
(4,541 |
) |
(2,328 |
) |
(10,976 |
) |
(5,289 |
) |
Fekola
Project, development |
(65,318 |
) |
(64,180 |
) |
(208,109 |
) |
(161,619 |
) |
Gramalote
Project, prefeasibility and exploration |
(3,512 |
) |
(1,990 |
) |
(8,692 |
) |
(4,806 |
) |
Other
exploration and development |
(14,942 |
) |
(10,539 |
) |
(40,615 |
) |
(23,372 |
) |
Cash
proceeds from sale of Lynn Lake royalty, net of transaction
costs |
— |
|
— |
|
6,593 |
|
— |
|
Purchase
of non-controlling interest |
— |
|
— |
|
— |
|
(6,000 |
) |
Other |
(84 |
) |
168 |
|
(201 |
) |
807 |
|
Cash used by investing activities |
(121,260 |
) |
(93,590 |
) |
(352,705 |
) |
(270,376 |
) |
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents |
1,950 |
|
23,996 |
|
(54,801 |
) |
38,481 |
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
(434 |
) |
(40 |
) |
(161 |
) |
134 |
|
Cash and cash
equivalents, beginning of period |
88,193 |
|
99,802 |
|
144,671 |
|
85,143 |
|
Cash and cash
equivalents, end of period |
$ |
89,709 |
|
$ |
123,758 |
|
$ |
89,709 |
|
$ |
123,758 |
|
|
|
|
|
|
B2GOLD CORP. |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
(Expressed
in thousands of United States dollars) |
(Unaudited) |
|
As at September 30, 2017 |
As at December 31, 2016 |
Assets |
|
|
Current |
|
|
Cash and
cash equivalents |
$ |
89,709 |
|
$ |
144,671 |
|
Accounts
receivable, prepaids and other |
14,563 |
|
10,723 |
|
Value-added and other tax receivables |
19,925 |
|
16,984 |
|
Inventories |
118,088 |
|
104,691 |
|
|
242,285 |
|
277,069 |
|
Long-term
investments |
8,950 |
|
10,028 |
|
Value-added tax
receivables |
22,698 |
|
18,024 |
|
Mining
interests |
|
|
Owned by
subsidiaries |
2,208,960 |
|
1,950,356 |
|
Investments in joint ventures |
61,671 |
|
53,724 |
|
Other
assets |
34,635 |
|
26,934 |
|
|
$ |
2,579,199 |
|
$ |
2,336,135 |
|
Liabilities |
|
|
Current |
|
|
Accounts
payable and accrued liabilities |
$ |
93,433 |
|
$ |
81,722 |
|
Current
taxes payable |
11,724 |
|
13,180 |
|
Current
portion of long-term debt |
27,287 |
|
13,935 |
|
Current
portion of derivative instruments at fair value |
7,682 |
|
3,466 |
|
Current
portion of prepaid sales |
60,000 |
|
57,450 |
|
Other
current liabilities |
6,961 |
|
6,288 |
|
|
207,087 |
|
176,041 |
|
Derivative
instruments at fair value |
2,348 |
|
6,439 |
|
Long-term
debt |
634,418 |
|
472,845 |
|
Prepaid
sales |
45,000 |
|
62,550 |
|
Mine
restoration provisions |
82,305 |
|
81,162 |
|
Deferred income
taxes |
77,432 |
|
74,072 |
|
Employee
benefits obligation |
7,702 |
|
7,860 |
|
Other long-term
liabilities |
423 |
|
602 |
|
|
1,056,715 |
|
881,571 |
|
Equity |
|
|
Shareholders’
equity |
|
|
Share
capital |
|
|
Issued:
979,174,457 common shares (Dec 31, 2016 – 964,892,433) |
2,192,696 |
|
2,151,993 |
|
Contributed surplus |
55,843 |
|
56,191 |
|
Accumulated other comprehensive loss |
(94,970 |
) |
(95,435 |
) |
Deficit |
(640,787 |
) |
(667,760 |
) |
|
1,512,782 |
|
1,444,989 |
|
Non-controlling
interests |
9,702 |
|
9,575 |
|
|
1,522,484 |
|
1,454,564 |
|
|
$ |
2,579,199 |
|
$ |
2,336,135 |
|
|
|
|