B2Gold Corp. (TSX:BTO) (NYSE AMERICAN:BTG) (NSX:B2G) (“B2Gold” or
the “Company”) is pleased to announce its gold production and gold
revenue for the fourth quarter and full-year 2017 in addition to
its production and cash cost guidance for 2018. All dollar figures
are in United States dollars unless otherwise indicated.
2017 Full-Year Highlights
- Record annual consolidated gold production, for the ninth
consecutive year, of 630,565 ounces of gold, (including 79,243
ounces of pre-commercial production from Fekola), exceeding the
upper end of the revised guidance range (of 580,000 to 625,000
ounces) and surpassing the top end of the original guidance range
(of 545,000 to 595,000 ounces)
- Annual consolidated gold revenue of $638.7 million (or an
annual record of $739.5 million, including $100.9 million of
pre-commercial sales from Fekola)
- Full-year consolidated cash operating costs per ounce (see
“Non-IFRS Measures”) and all-in sustaining costs (“AISC”) per ounce
(see “Non-IFRS Measures”) are expected to be at, or below, the low
end of their cost guidance ranges of between $610 and $650 per
ounce and between $940 and $970 per ounce,
respectively
- Fekola Mine construction successfully completed in late
September 2017, more than three months ahead of the original
schedule
- Fekola Mine achieved commercial production on November 30,
2017, one month ahead of the revised schedule and four months ahead
of the original schedule
- Fekola Mine gold production was 111,450 ounces in 2017
(including 79,243 ounces of pre-commercial production), far
surpassing the upper end of its original guidance range (of 45,000
to 55,000 ounces) due to its early start-up and strong ramp-up
performance
- With the planned first full year of production from the Fekola
Mine, the outlook for 2018 provides for dramatic production growth
of approximately 300,000 ounces versus 2017, as consolidated annual
gold production is expected to increase significantly to between
910,000 and 950,000 ounces with cash operating costs and AISC of
between $505 and $550 per ounce and between $780 and $830 per
ounce, respectively
2017 Operating Results
For B2Gold, 2017 was an outstanding year of
performance, with the achievement of another record year of
consolidated gold production (for the ninth straight year), and the
successful construction and commissioning of its flagship Fekola
Mine in southwest Mali which achieved commercial production on
November 30, 2017, one month ahead of the revised schedule and four
months ahead of the original schedule. With the large, low-cost
Fekola Mine now in production, B2Gold is well positioned in
achieving transformational growth in 2018. In 2018, with the
planned first full year of production from the Fekola Mine,
consolidated gold production is forecast to be between 910,000 and
950,000 ounces (see “2018 Production Outlook and Cost Guidance”
section). This represents an increase in annual consolidated gold
production of approximately 300,000 ounces for B2Gold in 2018
versus 2017.
For full-year 2017, B2Gold’s consolidated gold
production was an annual record of 630,565 ounces (including 79,243
ounces of pre-commercial production from Fekola), exceeding the
upper end of its revised guidance range (of 580,000 to 625,000
ounces) and surpassing the top end of its original guidance range
(of 545,000 to 595,000 ounces). Consolidated gold production for
the year also increased by 15% (or 80,142 ounces) over 2016.
B2Gold’s record performance in 2017 reflected the early start-up
and strong ramp-up performance of the new Fekola Mine and the
continued, very strong operational performances of both the Masbate
Mine in the Philippines and Otjikoto Mine in Namibia. The Company
expects its full-year 2017 consolidated cash operating costs per
ounce and AISC per ounce to be at, or below, the low end of their
cost guidance ranges of between $610 and $650 per ounce and between
$940 and $970 per ounce, respectively. B2Gold will release its 2017
year-end consolidated financial statements before the North
American markets open on March 15, 2018. Details of the
consolidated cash operating costs per ounce and AISC per ounce will
also be released at that time.
In the fourth quarter of 2017, B2Gold’s
consolidated gold production was a quarterly record of 240,753
ounces (including 72,903 ounces of pre-commercial production from
Fekola), exceeding reforecast production by 5% (or 10,473 ounces)
and significantly exceeding budget by 28% (or 52,141 ounces).
Consolidated gold production for the quarter also increased by 71%
(or 100,102 ounces) over the same quarter in 2016.
Mine-by-mine gold production in the fourth
quarter and full-year 2017 was as follows:
Mine |
Q4 2017Gold
Production(ounces) |
Full-year 2017Gold
Production(ounces) |
2017RevisedAnnual
Production Guidance(ounces) (2) |
2017OriginalAnnual
Production Guidance(ounces) (2) |
Fekola |
105,110 (1) |
111,450 (1) |
100,000 - 110,000 |
45,000 - 55,000 |
Masbate |
53,419 |
202,468 |
180,000 - 185,000 |
175,000 - 185,000 |
Otjikoto |
52,446 |
191,534 |
170,000 - 180,000 |
165,000 - 175,000 |
La Libertad |
14,696 |
82,337 |
90,000 - 100,000 |
110,000 - 120,000 |
El Limon |
15,082 |
42,776 |
40,000 - 50,000 |
50,000 - 60,000 |
|
|
|
|
|
B2Gold Consolidated |
240,753 (1) |
630,565 (1) |
580,000 - 625,000 |
545,000 - 595,000 |
- Fekola’s fourth quarter and full-year 2017 gold production
includes 72,903 ounces and 79,243 ounces, respectively, of gold
produced during its pre-commercial production period.
- All production results and guidance are presented on a 100%
attributed basis.
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 the original schedule. The first gold pour at the Fekola
Mine was achieved on October 7, 2017. On November 30, 2017, the
Fekola Mine achieved commercial production, one month ahead of the
revised schedule and four months ahead of the original schedule.
Throughput ran above nameplate capacity during the 30-day test
period (on average) with significantly better than expected plant
availability, mill feed grades, and recoveries. Gold production
from the Fekola Mine in 2017 was 111,450 ounces (including 79,243
ounces of pre-commercial production), far surpassing the upper end
of its original guidance range (of 45,000 to 55,000 ounces) due to
its early start-up and strong ramp-up performance. In the fourth
quarter of 2017, the Fekola Mine produced 105,110 ounces of gold
(including 72,903 ounces of pre-commercial production).
The Masbate Mine in the Philippines achieved
another very strong year in 2017, producing 202,468 ounces of gold,
the second-highest annual production ever for the mine (only
slightly below its annual production record of 206,224 ounces of
gold, achieved in the prior year). Masbate’s 2017 gold production
exceeded the upper end of both its revised and original production
guidance ranges by 9% (or 17,468 ounces). The higher production was
due to better than expected recoveries and grades, mainly driven by
significantly higher than budgeted oxide ore tonnage from the
Colorado Pit. The Masbate Mine also continued its outstanding
safety performance, achieving over two years (810 days) without a
Lost-Time-Injury at year-end. In the fourth quarter of 2017,
the Masbate Mine produced 53,419 ounces of gold, significantly
above both budgeted and reforecast production by 24% (or 10,498
ounces).
In July 2017, the Masbate operations were
presented with the Philippine Department of Environment and Natural
Resources’ prestigious Saringaya Award for its contribution to
environmental protection, conservation, and management in the
regions surrounding the Masbate Mine
The Otjikoto Mine in Namibia had a record year
in 2017, producing an annual record of 191,534 ounces of gold which
exceeded the upper end of its revised production guidance range by
6% (or 11,534 ounces) and the top end of its original production
guidance range by 9% (or 16,534 ounces). Gold production was also
15% (or 25,249 ounces) higher versus 2016. Otjikoto’s
outperformance in 2017 was mainly the result of better than
expected high-grade ore tonnage from the Wolfshag Phase 1 Pit and
higher than expected mill throughput. In the fourth quarter of
2017, the Otjikoto Mine produced 52,446 ounces of gold, exceeding
both budgeted and reforecast production by 10% (or 4,655
ounces).
In Nicaragua, for full-year 2017, gold
production from La Libertad Mine and El Limon Mine was 82,337
ounces and 42,776 ounces, respectively, for a combined total of
125,113 ounces. This was slightly below the low end of their
combined revised guidance ranges. During 2017, gold production at
La Libertad was negatively impacted by permitting delays for new
mining areas while El Limon’s production was affected by water
pumping issues which had reduced high-grade ore flow from Santa
Pancha Underground. In the fourth quarter of 2017, mining
operations at El Limon returned to budgeted (normal) production
rates with the successful rehabilitation of the Santa Pancha 1
dewatering well. At La Libertad Mine, the Company has made
significant progress in advancing its mine permits. In September
2017, La Libertad Mine received the San Juan mining permit, and it
is anticipated that the San Diego mining permit will also be
received shortly. Mining has already commenced in the San Juan Pit
and is expected to commence in the San Diego Pit upon receipt of
its permit. For the Jabali Antenna Pit, the Company is expecting to
receive its permit in time to start production from the pit in the
third quarter of 2018. In the fourth quarter of 2017, gold
production from La Libertad Mine and El Limon Mine was 14,696
ounces and 15,082 ounces, respectively.
Gold Revenue
For the full-year 2017, consolidated gold
revenue was $638.7 million (or an annual record of $739.5 million,
including $100.9 million of pre-commercial sales from Fekola) on
sales of 510,966 ounces (or an annual record of 590,209 ounces
including 79,243 ounces of pre-commercial sales from Fekola) at an
average price of $1,250 per ounce compared to $683.3 million on
sales of 548,281 ounces at an average price of $1,246 per ounce in
2016. The decrease in annual gold revenue (excluding pre-commercial
sales from Fekola) was attributable to a 7% decrease in gold sales
volume due to the timing of gold shipments.
Consolidated gold revenue in the fourth quarter
of 2017 was $174.0 million (or a quarterly record of $274.9 million
including $100.9 million of pre-commercial sales from Fekola) on
sales of 137,695 ounces (or a quarterly record of 216,938 ounces
including 79,243 ounces of pre-commercial sales from Fekola) at an
average price of $1,264 per ounce compared to $181.2 million on
sales of 151,524 ounces at an average price of $1,196 per ounce in
the fourth quarter of 2016.
Consolidated gold revenue for the fourth quarter
and year ended December 31, 2017, included $15 million and $60
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 fourth quarter and year
ended December 31, 2017, 12,909 ounces and 51,633 ounces,
respectively, were delivered under these contracts.
2018 Production Outlook and Cost
Guidance
In 2018, with the planned first full year of
production from the Fekola Mine, consolidated gold production is
forecast to be between 910,000 and 950,000 ounces. This represents
an increase in annual consolidated gold production of approximately
300,000 ounces for B2Gold in 2018 versus 2017. The Fekola Mine is
projected to be a large, low-cost producer that will also 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
both expected to decrease in 2018 by approximately 15% compared to
2017 and be between $505 and $550 per ounce and between $780 and
$830 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 $1,300
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 $0.5 billion and a significant increase in free cash
flow (operating cash flows less investing cash flows) (see
“Non-IFRS Measures”).
Mine-by-mine 2018 ranges for forecast gold
production, cash operating costs per ounce and AISC per ounce are
as follows:
Mine |
2018 ForecastGold
Production(ounces) (1) |
2018 Forecast Cash Operating
Costs($ per ounce) |
2018 ForecastAISC ($ per
ounce) |
Fekola |
400,000 - 410,000 |
$345 - $390 |
$575 - $625 |
Masbate |
180,000 - 190,000 |
$675 - $720 |
$875 - $925 |
Otjikoto |
160,000 - 170,000 |
$480 - $525 |
$700 - $750 |
La Libertad |
115,000 - 120,000 |
$745 - $790 |
$1,050 - $1,100 |
El Limon |
55,000 - 60,000 |
$700 - $750 |
$1,135 - $1,185 |
|
|
|
|
B2Gold Consolidated |
910,000 - 950,000 |
$505 - $550 |
$780 - $830 |
- B2Gold’s production guidance is presented on a 100% attributed
basis.
Fekola Mine, Mali
The Fekola Mine is expected to produce between
400,000 and 410,000 ounces of gold in 2018, the first full year of
production. Cash operating costs are expected to be between $345
and $390 per ounce and AISC between $575 and $625 per ounce.
In 2018, the Fekola Mine is budgeted to process
a total of 5.0 million tonnes of ore at an average grade of 2.69
grams per tonne (“g/t”) and process recovery of 92.7%.
Sustaining capital costs in 2018 at the Fekola
Mine are budgeted to total $33.8 million, including $26.3 million
for pre-stripping. Non-sustaining capital costs are budgeted to
total $33.3 million, including $15 million for relocating the
village of Fadougou.
Based on the new life of mine (“LoM”) plan (see
news release dated 9/25/2017), 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.
Masbate Mine, the Philippines
The Masbate Mine is expected to produce between
180,000 and 190,000 ounces of gold in 2018, primarily from the
higher grade Main Vein pit, at cash operating costs of between $675
and $720 per ounce and AISC of between $875 and $925 per
ounce.
In 2018, Masbate is budgeted to process a total
of 6.8 million tonnes of ore at an average grade of 1.26 g/t and
process recovery of 65.9%. The increase in grade and decrease in
recovery versus 2017 is due to the change in ore source from the
Colorado oxide ore (lower grade and higher recovery) to the Main
Vein ore (higher grade and lower recovery).
Sustaining capital costs in 2018 at the Masbate
Mine are budgeted to total $16.6 million. Non-sustaining capital
costs are budgeted to total $32.5 million, including $23 million
for the expansion of the Masbate processing plant.
A detailed capital cost estimate of $25.5
million was recently completed by Lycopodium for the expansion of
the Masbate processing plant to 8 million tonnes per year ($23
million in 2018 and $2.5 million in 2019). The expansion
primarily consists of adding a third ball mill and upgrading the
existing crushing circuit. No addition to the mining fleet is
required as the additional feed will come from the lower grade
material that is currently in the mine plan and scheduled to be
stockpiled. When the expansion is on line (expected in early 2019),
it is expected to keep Masbate’s annual gold production near
200,000 ounces per year during the mining phase, and is expected to
keep gold production above 100,000 ounces per year when the low
grade stockpiles are processed at the end of the project
life.
Otjikoto Mine, Namibia
The Otjikoto Mine is expected to produce between
160,000 and 170,000 ounces of gold in 2018, primarily from the
Otjikoto Pit, at cash operating costs of between $480 and $525 per
ounce and AISC of between $700 and $750 per ounce.
In 2018, Otjikoto is budgeted to process a total
of 3.3 million tonnes of ore at an average grade of 1.59 g/t and
process recovery of 98%. The slight drop in grade versus 2017 is
due to a negligible amount of Wolfshag ore being mined in 2018 as
phase 2 of the Wolfshag Pit is being developed. Ore production is
planned to resume from the Wolfshag Pit in 2019 which is expected
to provide higher grade open-pit mill feed in the future.
Sustaining capital costs in 2018 at the Otjikoto
Mine are budgeted to total $16.6 million. Non-sustaining capital
costs are budgeted to total $28.5 million, including $26.6 million
for Wolfshag pre-stripping and $1.7 million to complete phase one
of the solar power project which is expected to decrease fuel oil
consumption and power costs starting in the second quarter of
2018.
La Libertad Mine, Nicaragua
La Libertad Mine is expected to produce between
115,000 and 120,000 ounces of gold in 2018 at cash operating costs
of between $745 and $790 per ounce and AISC of between $1,050 and
$1,100 per ounce. La Libertad’s production forecast assumes that
production will start from the Jabali Antenna Pit in the third
quarter of 2018 (dependent upon the successful completion of
resettlement activities and receipt of the remaining mining
permits).
In 2018, La Libertad is budgeted to process a
total of 2.3 million tonnes of ore at an average grade of 1.76 g/t
and process recovery of 94%. The significant increase in grade
versus 2017 is due to mining the high-grade Jabali Antenna, San
Diego and San Juan pits, augmented by production from the Mojon and
Jabali West underground mines.
Sustaining capital costs for La
Libertad are planned to total $28.5 million, mainly for
pre-stripping and underground development/infrastructure.
Non-sustaining capital costs are budgeted to total $2 million.
El Limon Mine, Nicaragua
In 2018, El Limon is expected to produce between
55,000 and 60,000 ounces of gold at cash operating costs of between
$700 and $750 per ounce and AISC of between $1,135 and $1,185 per
ounce.
El Limon Mine is budgeted to process 0.5 million
tonnes of ore at an average grade of 3.96 g/t gold with gold
recoveries averaging 94%. Approximately 28% of the process ore is
expected to be sourced from the Mercedes Pit, with the remainder
from underground operations at Santa Pancha. The mining permit for
the Mercedes Pit was recently received, and development of the pit
has commenced.
The Company plans to undertake sustaining
capital expenditures at El Limon totaling $15.3 million in 2018, of
which $6.1 million relates to underground development at Santa
Pancha. Non-sustaining capital costs are budgeted to total $2.8
million.
Historically and looking forward, El Limon
operates best when it combines both underground and open-pit ore
sources. With the Mercedes Pit mining permit in place and
development underway, Mercedes is expected to supply good grade,
open-pit ore for the mill in 2018, combined with underground ore.
The result is expected to maximize mill throughput, increase gold
production, and reduce operating costs.
The recent discovery of the El Limon Central
Zone, with its potential to host a large, good-grade, open-pittable
deposit, could have a very significant long-term, positive impact
on El Limon’s gold production, operating costs and mine life and
may support an expansion of El Limon’s milling and production
capacity. An initial El Limon Central Resource estimate is
scheduled to be released in February 2018.
In addition, an initial study was completed in
2017 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.
2018 Exploration Guidance
B2Gold has a 2018 exploration budget of
approximately $52.4 million. West Africa and Nicaragua will be the
primary areas of focus in 2018.
West African Exploration
2018 will see approximately $25.0 million being
spent on exploration in Mali, Burkina Faso and Ghana.
Exploration on the licenses in Mali will see
expenditures of $15.1 million, focusing on the Fekola North
Extension zone and sulphide targets below the Anaconda saprolite.
The 2018 budget for Mali envisions completing 20,000 metres of
diamond drilling, 48,000 metres of reverse circulation (“RC”)
drilling, 22,000 metres of aircore drilling and 8,500 metres of
auger drilling. Positive drill results from the Company’s 2017
exploration program at the Fekola area (see news release dated
11/9/2017) indicated that the main Fekola deposit, with additional
drilling, could extend significantly to the north. In addition,
drilling below the extensive saprolite resource at the Anaconda,
Adder and Mamba zones has discovered three, well mineralized
bedrock (sulphide) zones, indicating the potential for large,
Fekola-style mineralized zones.
In Burkina Faso, the 2018 exploration budget is
$9.1 million for the Toega prospect and the Kiaka Regional district
that saw exploration success in 2017. Burkina Faso will see
14,500 metres of planned diamond drilling, 29,000 metres of planned
RC drilling and 28,000 metres of combined planned aircore and auger
drilling. An initial Resource estimate for Toega, based on the
positive 2017 exploration results, is scheduled to be released
before the end of January 2018.
Nicaragua Exploration
El Limon’s exploration budget for 2018 is
approximately $7.0 million for a total of 25,000 metres of planned
diamond drilling. The program largely consists of infill drilling
of the recently-discovered Central Zone.
La Libertad’s exploration budget for 2018 is
approximately $4.8 million for a total of 9,000 metres of planned
diamond drilling. The program is split between brownfields (near
mine) drilling and drilling on several regional targets.
Masbate Mine, the Philippines
The Masbate exploration budget for 2018 is
approximately $5.1 million including 12,000 metres of diamond
drilling. The drilling is divided into brownfields drilling to
upgrade resources within the mine licence and on regional
targets.
Namibia Exploration
The total exploration budget for Namibia in 2018
is $5.1 million. Exploration in 2018 will include 17,000 metres of
diamond drilling and 4,000 metres of RAB drilling split between the
Otjikoto Project and the Ondundu joint venture.
Finland Joint Venture
Finland has a 2018 budget of $2.6 million and
will complete 500 metres of drilling on targets defined from
work completed in 2017.
Outlook
Looking forward, the Company will remain focused
on continuing its impressive operational and financial performance
from existing mines and continue with aggressive exploration and
development programs to unlock the potential of its existing
portfolio of properties.
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.
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 scientific and technical information regarding
exploration matters contained in this news release.
John Rajala, Vice President of Metallurgy of
B2Gold, a qualified person under NI 43-101, has approved El Limon
development information contained in this news release.
Fourth Quarter and Year-End 2017
Financial Results – Conference Call Details
B2Gold Corp. will release its fourth quarter and
year-end 2017 results before the North American markets open on
Thursday, March 15, 2018.
B2Gold executives will host a conference call to
discuss the results on Thursday, March 15, 2018,
at 10:00 am PST / 1:00 pm EST. You may access the
call by dialing the operator at +1 647-788-4965 (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/23943. 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 7278809).
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 MacLeanVice President, Investor
Relations604-681-8371imaclean@b2gold.com
Katie BromleyManager, Investor Relations & Public
Relations604-681-8371kbromley@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, guidance, forecasts, estimates and other
statements regarding future financial and operational performance,
events, production, mine life, revenue, cash flows, costs,
including projected cash operating costs and AISC and expected
decrease of forecast consolidated cash operating costs and AISC in
2018, capital expenditures, budgets, ore grades, sources and types
of ore, stripping ratios, throughput, ore processing, cash flows
and growth; production estimates and guidance, including the
Company’s projected increase of gold production to between 910,000
and 950,000 ounces in 2018, reflecting production growth of
approximately 300,000 ounces from 2017; project-specific
projections of gold production and costs; the increased production
and low costs increasing the Company’s production revenues, cash
from operations and cash flow for many years; and statements
regarding anticipated exploration, drilling, development,
construction, production, permitting and other activities and
achievements of the Company, including but not limited to: expected
grades and sources of ore to be processed in 2018; the Fekola Mine
being a low cost producer and its anticipated reduction on the
Company’s per ounce costs; the estimates, assumptions and forecasts
included in the Fekola Mine’s new LoM plan; further exploration
drilling on the Fekola North Extension zone and sulphide targets
below the Anaconda saprolite and the potential for extension of the
main Fekola deposit to the north and for large, Fekola-style
mineralized zones; the completion of phase one of the solar power
project at the Otjikoto Mine decreasing fuel oil consumption and
power costs starting in Q2 of 2018; the Company’s future growth and
cost structure; La Libertad Mine’s planned resequencing, including
completion of resettlement activities and receipt of a permit in
time to start production from the Jabali Antenna Pit in Q3 of 2018;
receipt of a permit and expected commencement of mining at San
Diego Pit; the Mercedes Pit at El Limon providing approximately 28%
of the process ore; the planned underground development at Santa
Pancha; the identification of new large good grade near-surface
zone at El Limon that could be exploitable by open-pit mining; the
potential to significantly extend the current mine life at El
Limon; the possible expansion of El Limon’s milling and production
capacity; and the expansion of the Masbate processing plant to 8
million tonnes per year, and the resulting expected annual
production at Masbate of near 200,000 ounces per year during the
mining phase and above 100,000 ounces per year when low grade
stockpiles are processed. Estimates of mineral resources and
reserves are also forward-looking statements because they
constitute projections regarding the amount of minerals that may be
encountered in the future and/or the anticipated economics of
production, should a production decision be made. All statements in
this news release that address events or developments that we
expect to occur in the future are forward-looking statements.
Forward-looking statements are statements that are not historical
facts and are generally, although not always, identified by words
such as “expect”, “plan”, “anticipate”, “project”, “target”,
“potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend”
or “believe” and similar expressions or their negative
connotations, or that events or conditions “will”, “would”, “may”,
“could”, “should” or “might” occur. All such forward-looking
statements are based on the opinions and estimates of management as
of the date such statements are made. Forward-looking statements
necessarily involve assumptions, risks and uncertainties, certain
of which are beyond B2Gold’s control, including risks and
assumptions 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; 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. 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.
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” and “all-in sustaining costs” (or “AISC”)
and “free cash flow”. 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.