VANCOUVER, BC, February 23,
2021 /CNW/ - B2Gold Corp. (TSX: BTO) (NYSE AMERICAN:
BTG) (NSX: B2G) ("B2Gold" or the "Company") is pleased to
announce its operational and financial results for the fourth
quarter and full-year ending December
31, 2020. The Company previously released its gold
production and gold revenue results for the fourth quarter and
full-year 2020, in addition to its production and budget guidance
for 2021. In 2021, the Company is forecasting total gold production
of between 970,000 and 1,030,000 ounces. All dollar figures are in
United States dollars unless
otherwise indicated.
2020 Fourth Quarter Highlights
- Total gold production of 270,469 ounces (including 14,150
ounces of attributable production from Calibre Mining Corp.
("Calibre")) and consolidated gold production of 256,319 ounces
from the Company's three operating mines
- Consolidated gold revenues of $480
million, a significant increase of $166 million (53%) over the fourth quarter of
2019 (excluding revenues from discontinued operations)
- Consolidated cash flow provided by operating activities of
$197 million, an increase of
$52 million (36%) over the fourth
quarter of 2019 (and is net of a voluntary tax installment payment
of $50 million made in December 2020 related to the Fekola Mine's 2020
tax obligations)
- Total consolidated cash operating costs (see "Non-IFRS
Measures") of $473 per ounce
produced ($461 per ounce sold); total
consolidated all-in sustaining costs ("AISC") (see "Non-IFRS
Measures") of $926 per ounce sold
(including the Company's estimated attributable share of Calibre's
results)
- Net income attributable to the shareholders of the Company of
$168 million ($0.16 per share); adjusted net income (see
"Non-IFRS Measures") attributable to the shareholders of the
Company of $147 million ($0.14 per share)
2020 Full-Year Highlights
- Record annual total gold production of 1,040,737 ounces
(including 45,479 ounces of attributable production from Calibre),
at the upper end of the guidance range (of between 1,000,000 –
1,055,000 ounces)
- Record annual consolidated gold production from the Company's
three operating mines of 995,258 ounces, at the upper end of the
guidance range (of between 955,000 – 1,005,000 ounces), and
significantly higher by 17% (144,142 ounces) over 2019 (excluding
discontinued operations), marking the twelfth consecutive year of
record annual consolidated gold production
- Record annual consolidated gold revenues of $1.79 billion, a significant increase of
$0.63 billion (55%) over 2019
(excluding revenues from discontinued operations)
- Record annual consolidated cash flow provided by operating
activities of $951 million, a
significant increase of $459 million
(93%) over 2019
- Total consolidated cash operating costs (including the
Company's estimated attributable share of Calibre's results) of
$423 per ounce produced ($422 per ounce sold), near the low end of the
Company's guidance range (of between $415 - $455 per
ounce), and total consolidated AISC of $788 per ounce sold, near the low end of the
guidance range (of between $780 -
$820 per ounce sold)
- Net income of $672 million
(including a net impairment reversal for the Masbate Mine of
$122 million); net income
attributable to the shareholders of the Company of $628 million ($0.60
per share); adjusted net income attributable to the shareholders of
the Company of $515 million
($0.49 per share)
- B2Gold maintains a strong financial position and liquidity with
cash and cash equivalents of $480
million at December 31, 2020;
during the third quarter of 2020, the Company fully repaid the
outstanding Revolving Credit Facility ("RCF") balance of
$425 million with the full amount of
the $600 million RCF now undrawn and
available
- B2Gold's quarterly dividend rate was increased in the third
quarter of 2020 by 100% to $0.04 per
common share (or an annualized rate of $0.16 per common share), one of the highest
dividend yields in the gold sector
- For 2021, B2Gold remains well positioned for continued strong
operational and financial performance with total production
guidance of between 970,000 - 1,030,000 ounces of gold (including
attributable ounces projected from Calibre of between 50,000 -
60,000 ounces) with total consolidated forecast cash operating
costs of between $500 - $540 per ounce and total consolidated AISC of
between $870 - $910 per ounce; consolidated cash operating costs
and AISC per ounce are forecast to be higher than 2020, mainly due
to the planned lower production and higher planned stripping
activities at Fekola, higher forecast fuel and labour costs in
Mali, and the drawdown of ore
stockpiles at Otjikoto
- Following a very successful year for exploration in 2020,
B2Gold is planning a year of aggressive exploration in 2021 with a
budget of approximately $66 million
(excluding Gramalote), including a record $25 million allocated to high quality targets
for the Company's ongoing grassroots exploration programs
Despite some of the challenges that the current COVID-19
pandemic has created worldwide and in each of the locations where
the Company operates or is head-quartered, the Company continues to
operate virtually unimpeded. The B2Gold executive team is very
proud of the Company's employees' dedication and resilience in
these challenging times and believe it is in part due to the
executive team's and mine management's years of experience in all
aspects of international mining, and the Company's culture of
treating all its stakeholders with fairness, respect and
transparency. This successful approach is reflected again in the
Company's record performance in 2020.
The Company continues to address the COVID-19 pandemic and
minimize its potential impact at B2Gold's operations. B2Gold places
the safety and well-being of its workforce and all stakeholders as
its highest priority and continues to encourage input from all its
stakeholders as the COVID-19 situation evolves. The Company
continues to implement measures and precautionary steps to manage
and respond to the risks associated with COVID-19 to ensure the
safety of B2Gold's employees, contractors, suppliers and
surrounding communities where the Company works while continuing to
operate. The Company is continually updating these plans and
response measures based on the safety and well-being of its
workforce, the severity of the pandemic in areas where it operates,
global response measures, government restrictions and extensive
community consultation. The Company is working closely with
national and local authorities, including labour unions, and
continues to closely monitor each site's situation, including
public and employee sentiment to ensure that stakeholders are in
alignment with continued safe operation of its mines.
2020 Full-Year and
Fourth Quarter Operational Results and
Development
Despite the challenges of the COVID-19 pandemic, B2Gold had
another remarkable year of strong growth in 2020, with the
achievement of B2Gold's twelfth consecutive year of record annual
gold production. The Company's total gold production for 2020 was
an annual record of 1,040,737 ounces (including 45,479 ounces of
attributable production from Calibre), at the upper end of the
guidance range (of between 1,000,000 – 1,055,000 ounces).
Consolidated gold production from the Company's three operating
mines was an annual record of 995,258 ounces of gold, at the upper
end of the guidance range (of between 955,000 – 1,005,000 ounces),
and significantly higher by 17% (144,142 ounces) than 2019
(excluding discontinued operations). The significant increase in
gold production over 2019 was driven by the Fekola Mine in
Mali, which produced an annual
record of 622,518 ounces of gold, exceeding the upper end of its
guidance range (of between 590,000 - 620,000 ounces). Between the
commencement of Fekola's operations in September 2017 and December 31, 2020, the Fekola Mine has produced
over 1.6 million ounces of gold (which is 155,000 ounces more than
originally forecast under Fekola's Definitive Feasibility Study
over this period). The Masbate Mine in the Philippines achieved another strong year
in 2020, producing 204,699 ounces of gold, at the midpoint of its
guidance range (of between 200,000 - 210,000 ounces). Masbate's
strong operational performance was achieved despite a five-day
temporary suspension of mining activities in the first quarter of
2020 due to fuel shortages relating to COVID-19 restrictions, and a
magnitude 6.6 earthquake approximately 90 kilometres from the mine
site on August 18, 2020, suspending
mining and processing operations for five and six days,
respectively, as inspections were conducted to confirm there was no
damage to the mine from the earthquake. The Otjikoto Mine in
Namibia also had another solid
year in 2020, producing 168,041 ounces of gold, near the midpoint
of its guidance range (of between 165,000 - 175,000 ounces).
The Company's full-year 2020 total consolidated cash operating
costs (including the Company's estimated attributable share of
Calibre's results) were $423 per
ounce produced ($422 per ounce sold),
near the low end of its guidance range (of between $415 - $455 per
ounce), and 17% lower ($89 per ounce
produced) compared to 2019. Consolidated cash operating costs from
the Company's three operating mines were $406 per ounce produced ($405 per ounce sold). Lower fuel costs, a weaker
Namibian dollar and changes to mine sequencing as a result of
responding to COVID-19 challenges were the primary reasons for the
cash operating costs per ounce being lower than both budget and
2019. In the fourth quarter of 2020, the Company's total
consolidated cash operating costs (including the Company's
estimated attributable share of Calibre's results) were
$473 per ounce produced ($461 per ounce sold) and consolidated cash
operating costs from the Company's three operating mines were
$458 per ounce produced ($446 per ounce sold). The consolidated cash
operating costs per ounce for the fourth quarter of 2020 were
higher than budgeted, mainly due to higher than budgeted costs at
the Fekola Mine, including higher heavy fuel oil ("HFO") prices,
higher labor costs due to COVID-19 and mining sequence changes.
The Company's full-year 2020 total consolidated AISC (including
the Company's estimated attributable share of Calibre's results)
were $788 per gold ounce sold
(full-year 2019 - $862 per gold ounce
sold), near the low end of its guidance range (of between
$780 - $820 per ounce sold). Consolidated AISC from the
Company's three operating mines were $774 per ounce sold. AISC were near the low-end
of the guidance range, as a result of lower than budgeted cash
operating costs, higher than budgeted gold ounces sold, lower
general and administrative costs and lower than budgeted sustaining
capital expenditures ($24 million),
partially offset by increased royalties as a result of higher gold
prices. In the fourth quarter of 2020, the Company's total
consolidated AISC (including the Company's estimated attributable
share of Calibre's results) were $926
per ounce sold and consolidated AISC from the Company's three
operating mines were $917 per ounce
sold. As expected, consolidated AISC for the fourth quarter of 2020
were higher than budget due to the expected catch up on budgeted
sustaining capital that had been delayed from earlier quarters of
2020, higher than budgeted cash operating costs and increased
royalties as a result of higher gold prices.
The Company's expansion and development projects also progressed
well throughout 2020:
- At Fekola, successful commissioning of the Fekola mill
expansion to 7.5 million tonnes per annum ("Mtpa") (an increase of
1.5 Mtpa from an assumed base rate of 6 Mtpa), occurred on
September 10, 2020, several weeks
ahead of the scheduled completion date of September 30, 2020. The Fekola mill has the
potential to run above the annualized throughput rate of 7.5 Mtpa
and analysis is currently underway to determine the optimum
throughput rate (for 2021 budgeting purposes the Company has
assumed a throughput rate of 7.75 Mtpa). Remobilization of the
Fekola solar plant construction group began in mid-September 2020, following a temporary
suspension of construction activities in April 2020 due to COVID-19.
- At Otjikoto, development of the Wolfshag underground mine
continues to progress well and on schedule. In the third quarter of
2020, the mining contractor was mobilized, and development of the
portal and primary underground ramp has now commenced. Stope ore
production is expected to commence in early 2022, in-line with
original estimates.
- At the Gramalote Project, feasibility work continued throughout
the year, including the recommencement of drilling on May 11, 2020, with infill resource drilling
completed on August 21, 2020. During
the fourth quarter of 2020, an updated resource model for Gramalote
was completed, providing the information necessary to advance pit
design and mining engineering studies. Feasibility stage
metallurgical studies and process plant design were completed by
year-end and infrastructure design work continues. The results of
the Gramalote Feasibility Study are expected to be announced in
April 2021, with a construction
decision expected to be made shortly thereafter.
Looking forward to 2021, B2Gold remains well positioned for
continued strong operational and financial performance. The
Company's total gold production is forecast to be between 970,000 -
1,030,000 ounces (including 50,000 - 60,000 ounces attributable
ounces projected from Calibre) in 2021, with total consolidated
cash operating costs forecast to be between $500 - $540 per
ounce and total consolidated AISC forecast to be between
$870 - $910 per ounce.
The Company's consolidated gold production from its three
operating mines is forecast to be between 920,000 – 970,000 ounces
in 2021, with consolidated cash operating costs forecast to be
between $480 - $520 per ounce and consolidated AISC forecast to
be between $860 - $900 per ounce. The Company's 2021 production
guidance does not include the potential upside to increase Fekola's
gold production in 2021 from additional mining areas and processing
capacity currently being investigated.
The Company's consolidated gold production from its three
operating mines is expected to be significantly weighted to the
second half of 2021 due to the planned significant waste
stripping at both the Fekola and Otjikoto Mines in the first half
of 2021 (for Phase 5 and Phase 6 of the Fekola Pit, and Phase 3 of
the Wolfshag and Otjikoto Pits). For the first half of 2021,
consolidated gold production is expected to be between 365,000 –
385,000 ounces, which is expected to increase significantly to
between 555,000 – 585,000 ounces during the second half of 2021
when mining reaches the higher grade portion of Phase
5 of the Fekola Pit and Phase 3 of the Wolfshag Pit. Based
mainly on the weighting of production and timing of stripping,
consolidated cash operating costs are expected to be between
$620 - $660 per ounce in the first half of 2021,
before significantly improving to between $380 - $420 per
ounce during the second half of 2021. In addition,
consolidated AISC are expected to be between $1,040 - $1,080 per
ounce in the first half of 2021, before significantly
improving to between $745 -
$785 per ounce during the second
half of 2021.
Based on current operating plans, over a five-year outlook from
2020 to 2024, annual consolidated gold production is forecast to
average 950,000 ounces with AISC averaging $825 per ounce.
2020 Full-Year and Fourth Quarter Financial Results
For full-year 2020, consolidated gold revenue was a record
$1.79 billion on sales of 1,006,455
ounces at an average price of $1,777
per ounce, compared to $1.16 billion
on sales of 827,800 ounces at an average price of $1,396 per ounce in 2019 (excluding revenues from
discontinued operations). This significant increase in gold revenue
of 55% ($0.63 billion) was 33%
attributable to the increase in the average realized gold price and
22% attributable to the increase in gold ounces sold (mainly due to
the higher gold production).
For the fourth quarter of 2020, consolidated gold revenue was
$480 million on sales of 256,655
ounces at an average price of $1,868
per ounce, compared to $314 million
on sales of 211,800 ounces at an average price of $1,481 per ounce in the fourth quarter of 2019
(excluding revenues from discontinued operations). This significant
increase in gold revenue of 53% ($166
million) was 32% attributable to the increase in the average
realized gold price and 21% attributable to the increase in gold
ounces sold (mainly due to the higher gold production).
For full-year 2020, cash flow provided by operating activities
was a record $951 million compared to
$492 million in 2019. This
significant increase of $459 million
(93%) reflected the significant increase in gold revenue, as a
result of higher realized gold prices and sales. In December 2020, the Company elected to make a
voluntary installment prepayment of Fekola income taxes of
$50 million. This prepayment will
reduce the final installment amount payable due in April 2021 for Fekola's 2020 income taxes by a
corresponding amount of $50
million.
For the fourth quarter of 2020, cash flow provided by operating
activities was $197 million compared
to $145 million in the fourth quarter
of 2019, an increase of $52 million
(36%) over the fourth quarter of 2019 (and is net of a voluntary
tax installment payment of $50
million made in December 2020
related to the Fekola Mine's 2020 tax obligations).
For full-year 2020, the Company generated net income of
$672 million compared to $316 million in 2019. In the third quarter of
2020, the Company identified a higher sustained long-term gold
price as an indicator of impairment reversal for the Masbate Mine,
resulting in a net impairment reversal of $122 million (pre-tax $174
million impairment reversal less $52
million deferred tax expense). Net income attributable to
the shareholders of the Company was $628
million ($0.60 per share)
compared to $293 million
($0.29 per share) in 2019. Adjusted
net income attributable to shareholders of the Company was
$515 million ($0.49 per share) compared to $219 million ($0.22
per share) in 2019.
For the fourth quarter of 2020, net income was $174 million compared to $182 million in the fourth quarter of 2019. Net
income attributable to the shareholders of the Company was
$168 million ($0.16 per share) compared to $177 million ($0.17
per share) in the fourth quarter of 2019. Adjusted net income
attributable to shareholders of the Company was $147 million ($0.14
per share) compared to $65 million
($0.06 per share) in the fourth
quarter of 2019.
Liquidity and Capital Resources
B2Gold maintains a strong financial position and liquidity.
During the third quarter of 2020, the Company fully repaid the
outstanding RCF balance of $425
million with the full amount of the $600 million RCF now undrawn and available. In
addition, at December 31, 2020, the
Company had cash and cash equivalents of $480 million (December 31,
2019 - $141 million) and
working capital of $465 million
(December 31, 2019 - $242 million).
Due to the Company's strong net positive cash position, strong
operating results and the current higher gold price environment,
B2Gold's quarterly dividend rate was increased in the third quarter
of 2020 by 100% to $0.04 per common
share (or an annualized rate of $0.16
per common share), one of the highest dividend yields in the gold
sector.
In 2021, the Company expects to generate cashflows from
operating activities of approximately $630
million, based on current assumptions including an
average gold price of $1,800 per
ounce. The Company's 2021 operating cashflows are expected to be
lower than 2020, mainly due to lower production, higher cash
operating costs and higher cash tax payments including the expected
settlement of remaining 2020 income tax liabilities of
approximately $90 million (including
$75 million for Fekola) in
April 2021 and the payment of the
2020 Fekola priority dividend to the State of Mali of approximately $50 million which is due in mid-year 2021.
In 2021, the Company is required to pay Fekola tax installments
based on a percentage of 2020's total income tax obligations. Any
difference between the actual cash installments paid during the
year and the final tax amount owing for 2021 must be settled in the
April of the subsequent year, based on Malian tax regulations. In
addition, amounts owing for the Fekola 2021 priority dividend
(which will be recorded in the income tax line for accounting
purposes in the 2021 Consolidated Statement of Operations) must be
settled in cash in the second quarter of 2022. The Company is
forecasting a current income tax, withholding and other taxes
expense of approximately $300 million
in 2021 (using a gold price assumption of $1,800 per ounce) and to make total cash income
tax payments of approximately $380
million, including $140
million related to the 2020 outstanding income tax
obligations and Fekola's 2020 priority dividend obligation
discussed above. Based on the estimated Fekola cash tax
installments to be paid in 2021, the Company expects any
outstanding Fekola tax liability to be accrued at December 31, 2021 to be less than $20 million. The Fekola priority dividend
obligation forecast to be accrued in 2021 is approximately
$45 million and is expected to be
paid in June 2022.
First Quarter 2021 Dividend
On February 23, 2021, B2Gold's
Board of Directors declared a cash dividend for the first quarter
of 2021 of $0.04 per common share (or
an expected $0.16 per share on an
annualized basis), payable on March 16,
2021 to shareholders of record as of March 8, 2021.
As part of the long-term strategy to maximize shareholder value,
B2Gold expects to declare future quarterly dividends at the same
level. This dividend is designated as an "eligible dividend" for
the purposes of the Income Tax Act (Canada). Dividends paid by B2Gold to
shareholders outside Canada (non-resident investors) will
be subject to Canadian non-resident withholding taxes.
The declaration and payment of future dividends and the amount
of any such dividends will be subject to the determination of the
Board, in its sole and absolute discretion, taking into account,
among other things, economic conditions, business performance,
financial condition, growth plans, expected capital requirements,
compliance with the B2Golds's constating documents, all applicable
laws, including the rules and policies of any applicable stock
exchange, as well as any contractual restrictions on such
dividends, including any agreements entered into with lenders to
the Company, and any other factors that the Board deems
appropriate at the relevant time. There can be no assurance that
any dividends will be paid at the intended rate or at all in the
future.
2020 Operations
Mine-by-mine gold production in the fourth quarter and full-year
2020 (including the Company's approximate 33% share of Calibre's
production) was as follows:
Mine
|
Q4
2020 Gold
Production (ounces)
|
Full-Year
2020 Gold
Production (ounces)
|
2020 Annual Guidance Gold Production (ounces)
|
Fekola
|
158,548
|
622,518
|
590,000 -
620,000
|
Masbate
|
57,566
|
204,699
|
200,000 -
210,000
|
Otjikoto
|
40,205
|
168,041
|
165,000 -
175,000
|
|
|
|
|
B2Gold
Consolidated (1)
|
256,319
|
995,258
|
955,000 –
1,005,000
|
|
|
|
|
Equity interest
in Calibre (2)
|
14,150
|
45,479
|
45,000 -
50,000
|
|
|
|
|
Total
|
270,469
|
1,040,737
|
1,000,000 –
1,055,000
|
(1)
|
"B2Gold
Consolidated" - gold production is presented on a 100% basis, as
B2Gold fully consolidates the results of its Fekola, Masbate and
Otjikoto mines in its consolidated financial statements (even
though it does not own 100% of these
operations).
|
(2)
|
"Equity interest
in Calibre" - represents the Company's approximate 33% indirect
share of the operations of Calibre's El Limon and La Libertad mines
in Nicaragua. B2Gold applies the equity method of accounting for
its ownership interest in Calibre.
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold produced basis) in the fourth quarter and full-year 2020
were as follows (presented on a 100% basis):
Mine
|
Q4
2020 Cash Operating
Costs ($ per ounce
produced)
|
Full-Year
2020 Cash Operating
Costs ($ per ounce
produced)
|
2020 Annual Guidance Cash Operating Costs ($ per ounce)
|
Fekola
|
$397
|
$320
|
$285 -
$325
|
Masbate
|
$585
|
$629
|
$665 -
$705
|
Otjikoto
|
$520
|
$453
|
$480 -
$520
|
B2Gold
Consolidated
|
$458
|
$406
|
$395 -
$440
|
|
|
|
|
Equity interest
in Calibre
|
$734
|
$792
|
$720 -
$760
|
|
|
|
|
Total
|
$473
|
$423
|
$415 -
$455
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold sold basis) in the fourth quarter and full-year 2020 were as
follows (presented on a 100% basis):
Mine
|
Q4
2020 Cash Operating
Costs ($ per ounce
sold)
|
Full-Year
2020 Cash Operating
Costs ($ per ounce
sold)
|
2020 Annual Guidance Cash Operating Costs ($ per ounce)
|
Fekola
|
$385
|
$320
|
$285 -
$325
|
Masbate
|
$546
|
$638
|
$665 -
$705
|
Otjikoto
|
$501
|
$437
|
$480 -
$520
|
B2Gold
Consolidated
|
$446
|
$405
|
$395 -
$440
|
|
|
|
|
Equity interest
in Calibre
|
$738
|
$796
|
$720 -
$760
|
|
|
|
|
Total
|
$461
|
$422
|
$415 -
$455
|
Mine-by-mine AISC (on a per ounce of gold sold basis) in the
fourth quarter and full-year 2020 were as follows (presented on a
100% basis):
Mine
|
Q4
2020 AISC ($
per ounce sold)
|
Full-Year
2020 AISC ($
per ounce sold)
|
2020 Annual Guidance AISC ($
per ounce)
|
Fekola
|
$736
|
$599
|
$555 -
$595
|
Masbate
|
$930
|
$985
|
$965 -
$1,005
|
Otjikoto
|
$1,200
|
$920
|
$1,010 -
$1,050
|
B2Gold
Consolidated
|
$917
|
$774
|
$765 -
$805
|
|
|
|
|
Equity interest
in Calibre
|
$1,090
|
$1,090
|
$1,020 -
$1,060
|
|
|
|
|
Total
|
$926
|
$788
|
$780 -
$820
|
Fekola Gold Mine - Mali
The Fekola Mine in Mali had a
record year in 2020, producing an annual record of 622,518 ounces
of gold, exceeding the upper end of its guidance range (of between
590,000 - 620,000 ounces), as processed grade, tonnes and
recoveries all exceeded budget. Gold production for the year also
increased significantly by 37% (166,708 ounces) over 2019, mainly
due to the expansion of the Fekola mining fleet and optimization of
the pit designs and mine plan for 2020, which provided access to
higher grade portions of the Fekola deposit earlier than
anticipated in previous mine plans. Between the commencement of
Fekola's operations in September 2017
to December 31, 2020, the Fekola Mine
has produced over 1.6 million ounces of gold (which is 155,000
ounces more than originally forecast under Fekola's Definitive
Feasibility Study over this period). As at December 31, 2020, the Fekola Mine had achieved
347 days without a lost time injury ("LTI"). In the fourth quarter
of 2020, the Fekola Mine produced 158,548 ounces of gold,
significantly higher than the fourth quarter of 2019 by 33% (39,305
ounces).
In September 2020, the
commissioning of the Fekola mill expansion to 7.5 Mtpa (an increase
of 1.5 Mtpa from an assumed base rate of 6 Mtpa) was successfully
completed several weeks ahead of schedule. The Fekola mill has the
potential to run above the expanded annualized throughput rate of
7.5 Mtpa and analysis is currently underway to determine the
optimum throughput rate. For 2021 budgeting purposes, the Company
has assumed a throughput rate of 7.75 Mtpa. In addition,
substantially all of the Fekola mine fleet expansion equipment
planned for 2020 (including excavators, trucks, and drill rigs)
have now arrived on site and are operational, with the overall mine
expansion now materially complete.
For full-year 2020, mill feed grade was 2.99 grams per tonne
("g/t") compared to budget of 2.91 g/t and 2.16 g/t in 2019; mill
throughput was 6.87 million tonnes compared to budget of 6.84
million tonnes and 6.98 million tonnes in 2019; and gold recovery
averaged 94.3% compared to budget of 93.8% and 94.2% in 2019. The
slightly lower mill throughput in 2020 compared to 2019 was mainly
due to the planned downtime for the Fekola mill expansion tie-ins
and softer low-grade ore being processed in 2019.
For full-year 2020, Fekola's cash operating costs were
$320 per ounce produced ($320 per ounce sold), near the upper end of its
guidance range (of between $285 -
$325 per ounce), and 15% lower
($55 per ounce produced) compared to
2019. Total mining costs for the year were marginally higher than
budget due to mining sequence changes and higher labor costs
related to COVID-19 payments while processing costs were higher
than budget due to higher than budgeted HFO costs. In the fourth
quarter of 2020, Fekola's cash operating costs were $397 per gold ounce produced ($385 per gold ounce sold).
Fekola's AISC for the full-year 2020 were $599 per ounce sold, nominally above the upper
end of its guidance range (of between $555 - $595 per
ounce), and 7% lower ($42 per ounce
sold) compared to 2019. Higher than budgeted cash operating costs
and increased royalties as a result of higher gold prices were
partially offset by higher than budgeted gold ounces sold and lower
than budgeted sustaining capital expenditures. The lower sustaining
capital expenditures were mainly attributable to lower
pre-stripping costs for the Fekola Pit (Phases 5 and 6) totaling
$16 million, resulting from mining
sequence changes, and approximately $4
million of overall sustaining costs savings versus budget on
the tailings storage facility project, completed in 2020. In the
fourth quarter of 2020, Fekola's AISC were $736 per ounce sold. Fekola's AISC for the fourth
quarter of 2020 were higher than budget due to the expected catch
up on budgeted sustaining capital expenditures that had been
delayed from earlier quarters of 2020, higher than budgeted cash
operating costs and increased royalties as a result of higher gold
prices.
Capital expenditures for the full-year 2020 totaled $184 million, including $60 million for the mining fleet expansion,
$39 million for the processing mill
expansion, $22 million for the solar
power plant, $30 million for
pre-stripping, $10 million for mobile
equipment rebuilds and $4 million for
tailing storage facilities. Capital expenditures in the fourth
quarter of 2020 totaled $28 million
and consisted of $9 million for
pre-stripping, $8 million for mobile
equipment rebuilds, $3 million for
the mining fleet expansion and $4
million for the solar power plant.
The low-cost Fekola Mine is expected to produce between 530,000
- 560,000 ounces of gold in 2021 at cash operating costs
of between $405 - $445 per ounce
and AISC of between $745 - $785
per ounce. Fekola's gold production is forecast to be lower in
2021 due to waste stripping and lower mined ore grades expected in
the first half of 2021, as Phase 5 and 6 of the Fekola Pit are
developed. However, additional mining areas and processing capacity
are currently being investigated, with the potential to increase
Fekola's budgeted 2021 and long-term gold production. The nearby
Cardinal (located within 500 metres of the
current Fekola resource pit) and Anaconda area
(located 20 kilometres north of Fekola) include both saprolite and
hard-rock gold mineralization, with the potential to begin mining
in 2021, subject to obtaining all necessary permits. Grade control
drilling is underway at a portion of the Cardinal deposit to enable
it to be mined for processing at the Fekola mill in the second
quarter of 2021. In addition, mill processing trials conducted in
the fourth quarter of 2020 demonstrate the potential to optimize
the grind-throughput capacity of the expanded facility and increase
hard-rock throughput to approximately 8.0 Mtpa, and support the
addition of saprolite ore tonnage in excess of the hard-rock
capacity.
As a result of the planned waste stripping and lower mined ore
grades in the first half of 2021, as Phase 5 and 6 of the Fekola
Pit are developed, production is expected to be significantly
weighted to the second half of 2021 (when mining reaches the
higher grade portion of Phase 5 of the Fekola Pit). For the
first half of 2021, Fekola's gold production is expected to be
between 220,000 – 230,000 ounces, which is expected to increase
significantly to between 310,000 – 330,000 ounces during the second
half of 2021. Based mainly on the weighting of production and
timing of waste stripping, Fekola's cash operating costs are
expected to be between $530 -
$570 per ounce in the first half
of 2021, before significantly improving to between $315 - $355 per
ounce during the second half of 2021. In addition,
Fekola's AISC are expected to be between $850 - $890 per
ounce in the first half of 2021, before significantly
improving to between $670 -
$710 per ounce during the second
half of 2021.
Fekola Solar Plant
Following the temporary suspension of solar plant construction
activities in April 2020 due to
COVID-19 restrictions, site activities recommenced on October 2, 2020, and construction progress is now
approximately 90% complete. On January 5,
2021, a fire in the solar storage yard destroyed
approximately 25% of the solar panels for the
project. Replacement panels have been sourced, and are
scheduled to arrived at site by early
May 2021. Approximately 25% of the solar field came on
line on January 28, 2021 and,
based on current projections, the Company expects that solar
production will reach 75% of full capacity by the end of
March 2021. The remaining 25% is contingent on the
delivery of the replacement panels, but full construction
completion is now projected by the end of the second
quarter of 2021. The Company does not anticipate any
significant impact on Fekola's 2021 budgeted cash operating costs
as a result of the delay in completion of the solar plant and
expects that losses incurred will be covered by the Company's
insurance.
The existing HFO and diesel power plant have an installed
capacity of 64 megawatts while Fekola's expanded mill facilities
require only approximately 40 megawatts for continuous operations.
The solar plant is therefore not a necessary component to sustain
the higher process plant production rate but is expected to reduce
Fekola's operating costs and emissions by decreasing power plant
fuel consumption and maintenance costs. When the plant is fully
commissioned, it will reduce HFO consumptions by over 13 million
litres per year and lower carbon dioxide emissions by an estimated
39,000 tonnes per year.
Masbate Gold Mine – the
Philippines
The Masbate Mine in the
Philippines achieved another strong year in 2020, producing
204,699 ounces of gold, at the midpoint of its guidance range (of
between 200,000 - 210,000 ounces). Masbate's strong operational
performance was achieved despite a five day temporary suspension of
mining activities in the first quarter of 2020 due to fuel
shortages relating to COVID-19 restrictions, and a magnitude 6.6
earthquake approximately 90 kilometres from the mine site on
August 18, 2020, suspending mining
and processing operations for five and six days, respectively, as
inspections were conducted to confirm there was no damage to the
mine from the earthquake. In addition, Masbate operations continued
to run normally following a super typhoon (Typhoon Goni), which
first made landfall in the
Philippines on November 1,
2020. Compared to 2019, gold production in 2020, as planned,
was lower by 6% (12,641 ounces), as 2019 benefited from higher
grade ore tonnage from the Main Vein Pit. The Masbate Mine
continued its remarkable safety performance, extending the number
of days without an LTI to 776 days as at December 31, 2020. Masbate had a strong finish to
the year, producing 57,566 ounces of gold in the fourth quarter of
2020, significantly higher than the fourth quarter of 2019 by 13%
(6,825 ounces), mainly due to higher recoveries (as a result of
mining more oxide ore).
For full-year 2020, mill feed grade was 1.00 g/t compared to
budget of 1.01 g/t and 1.16 g/t in 2019; mill throughput was 7.76
million tonnes compared to budget of 8.2 million tonnes and 8.0
million tonnes in 2019; and gold recovery averaged 82.3% compared
to budget of 76.3% and 73.2% in 2019. Average gold recoveries were
above budget due to mining more oxide ore than budgeted.
For full-year 2020, Masbate's cash operating costs were
$629 per ounce produced ($638 per ounce sold) (full-year 2019 -
$594 per ounce produced), well below
the low end of its guidance range (of between $665 - $705 per
ounce), reflecting lower than budgeted diesel and HFO prices. In
addition, mined tonnage and waste stripping activity was less than
budgeted and haulage distances were shorter, all of which reduced
mining costs per tonne. In the fourth quarter of 2020, Masbate's
cash operating costs were $585 per
ounce produced ($546 per ounce
sold).
Masbate's AISC for the full-year 2020 were $985 per ounce sold (full-year 2019 -
$815 per ounce sold), at the midpoint
of its guidance range (of between $965 - $1,005 per
ounce). In the fourth quarter of 2020, Masbate's AISC were
$930 per ounce sold. As expected,
Masbate's AISC for the fourth quarter of 2020 were higher than
budget due to the expected catch up on budgeted sustaining capital
expenditures that had been delayed from earlier quarters of
2020.
Capital expenditures totaled $34
million in 2020, including mobile equipment purchases and
rebuilds of $15 million,
pre-stripping of $6 million,
processing equipment replacement costs of $4
million and tailings storage facility projects of
$4 million. Capital expenditures for
the fourth quarter of 2020 totaled $15
million consisting primarily of $7
million of mobile equipment purchases and rebuilds and
$2 million of pre-stripping.
The Masbate Mine is expected to produce between 200,000
- 210,000 ounces of gold in 2021 at cash operating costs
of between $650 - $690 per ounce and AISC of between
$955 - $995 per ounce. Masbate's gold production is
scheduled to be relatively consistent throughout 2021.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia
also had another solid year in 2020, producing 168,041 ounces of
gold, near the midpoint of its guidance range (of between 165,000 -
175,000 ounces). Compared to 2019, gold production, as planned, was
lower by 6% (9,925 ounces) in 2020, as 2019 benefited from more
high-grade ore tonnes being mined from Phase 2 of the Wolfshag Pit.
The Otjikoto Mine has a remarkable safety record, with no LTI's
from March 27, 2018 until
October 29, 2020, when an LTI for a
fractured ankle occurred. As at December 31,
2020, the Otjikoto Mine had achieved 63 days without an LTI.
In the fourth quarter of 2020, the Otjikoto Mine produced 40,205
ounces of gold (fourth quarter of 2019 – 58,422 ounces).
For full-year 2020, mill feed grade was 1.52 g/t compared to
budget of 1.55 g/t and 1.64 g/t in 2019; mill throughput was 3.51
million tonnes compared to budget of 3.41 million tonnes and 3.42
million tonnes in 2019; and gold recovery averaged 98.4% compared
to budget of 98.0% and 98.7% in 2019.
For full-year 2020, Otjikoto's cash operating costs were
$453 per ounce produced ($437 per ounce sold) (full-year 2019 -
$461 per ounce produced), well below
its guidance range (of between $480 -
$520 per ounce), mainly due to higher
than budgeted production, lower than budgeted fuel prices and a
weaker Namibian dollar compared to the US dollar. In the fourth
quarter of 2020, Otjikoto's cash operating costs were $520 per ounce produced ($501 per ounce sold).
Otjikoto's AISC for the full-year 2020 were $920 per ounce sold (full-year 2019 -
$895 per ounce sold), well below the
low end of its guidance range (of between $1,010 - $1,050 per
ounce), reflecting lower than budgeted cash operating costs, higher
than budgeted gold ounces sold and lower than budgeted sustaining
capital expenditures (including lower than budgeted pre-stripping
costs). In the fourth quarter of 2020, Otjikoto's AISC were
$1,200 per ounce sold, and were
higher than budget primarily due lower than budgeted gold ounces
sold and the expected catch up on budgeted sustaining capital
expenditures that had been delayed from earlier quarters of
2020.
Capital expenditures totaled $67
million in 2020, primarily consisting of $47 million for pre-stripping for the Otjikoto
Pit Phases 3 and 4 and Wolfshag Pit Phase 3, $10 million in mobile equipment rebuilds and
replacements and $7 million for
Wolfshag underground development. Capital expenditures for the
fourth quarter of 2020 totaled $25
million primarily consisting of $16
million for pre-stripping, $4
million in mobile equipment rebuilds and replacements and
$4 million for Wolfshag underground
development.
The Otjikoto Mine in Namibia is
expected to produce between 190,000 - 200,000 ounces of gold
in 2021, a significant increase of approximately 16% (compared to
168,041 ounces produced in 2020), and is in the range of Otjikoto's
annual production record (of 191,534 ounces achieved in 2017), as
high-grade ore is scheduled to be sourced from Phase 3 of the
Wolfshag Pit in the second half of 2021. Otjikoto's cash operating
costs are forecast to be between $480
- $520 per ounce and AISC to be between $830 - $870 per ounce.
The Wolfshag ore zone is narrow and high grade, with pit and
phase strip ratios that result in a highly variable gold production
profile. Approximately 70% of the gold produced in 2021 is expected
to be mined from Phase 3 of the Wolfshag Pit, with material ore
production starting early in the third quarter of 2021 following
the waste stripping campaign. As a result of the timing of this
high-grade ore mining, Otjikoto's production is expected to be
significantly weighted to the second half of 2021. For the first
half of 2021, Otjikoto's gold production is expected to be between
45,000 – 50,000 ounces, which is expected to increase significantly
to between 145,000 – 150,000 ounces during the second half of 2021.
Based mainly on the weighting of the planned production and timing
of higher waste stripping, Otjikoto's cash operating costs are
expected to be between $940 -
$980 per ounce in the first half
of 2021, before significantly improving to between $330 - $370 per
ounce during the second half of 2021. In addition,
Otjikoto's AISC are expected to be between $1,600 - $1,640 per
ounce in the first half of 2021, before significantly
improving to between $580 -
$620 per ounce during the second
half of 2021. In the first quarter of 2021, forecast gold
production at Otjikoto is lower and forecast costs are higher than
the second quarter of 2021, due to the significant amount of waste
stripping and lower stockpile grades processed early in the
year.
Otjikoto's higher 2021 gold production level of between 190,000
– 200,000 ounces is expected to continue through to 2024, as
production from Wolfshag underground is expected to commence in
early 2022 and will supplement ore from the Otjikoto Pit as well as
existing medium and low-grade stockpiles for approximately three
years based on current estimates.
2020 Development
Gramalote Project (B2Gold – 50%/AngloGold Ashanti Limited – 50%)
- Colombia
B2Gold has a 50% interest in the Gramalote Project in
Colombia, and on January 1, 2020 became the operator of the
project. For full-year 2020, the Company's share of Gramalote
capital expenditures totaled $19
million compared to a budget of $26
million.
Based on the positive results from Gramalote's Updated
Preliminary Economic Assessment (released on January 21, 2020), B2Gold believes that the
Gramalote Project has the potential to become a large, low-cost
open-pit gold mine, subject to the results of a final feasibility
study.
During 2020, Gramalote successfully conducted an extensive
infill drill program of 42,500 meters that was completed in
August 2020. The purpose of the
infill drilling was to confirm and upgrade the Inferred Mineral
Resources to Indicated status to provide the basis for Gramalote's
Feasibility Study. During the fourth quarter of 2020, an updated
resource model for Gramalote was completed, providing the
information necessary to advance pit design and mining engineering
studies. Feasibility stage metallurgical studies and process
plant design were completed by year-end and infrastructure design
work continues. The results of the Gramalote Feasibility Study are
expected to be announced in April
2021, with a construction decision expected to be made
shortly thereafter.
Key social initiatives, including resettlement work and
artisanal miner formalization/relocation, continued to advance
during the fourth quarter of 2020. Gramalote has also
requested that the terms of its EIA be modified which would allow a
phased resettlement process to occur as construction proceeds,
which will assist in accelerating the construction
sequence.
The initial 2021 budget for the Gramalote Project is
$52 million (B2Gold's 50% share is $26
million) for the continued development of the project,
along with continued environmental and social activities supporting
local communities. The Gramalote budget also
includes $9 million for exploration in 2021, which
follows a successful infill drill program in 2020 that supported an
updated resource model, providing the basis for Gramalote's
Feasibility Study. A total of 18,000 metres of diamond
drilling is planned in 2021, including 8,000 metres for further
drilling at Gramalote Ridge and 10,000 metres at two
satellite deposits (Trinidad and
Monjas West), which are proximal to the planned Gramalote
infrastructure.
Gramalote's 2021 budget includes project development up to the
feasibility completion and construction decision point in the
second quarter of 2021, and therefore does not include early
works or construction costs, such as mobilization and
pioneering. A separate construction budget is expected to be
developed for the second half of 2021, based on a positive
Gramalote Feasibility Study and construction decision.
Kiaka Project - Burkina
Faso
The Company is currently updating the existing feasibility
study for the Kiaka Project in Burkina
Faso, reflecting the potential for improved economics
resulting from lower fuel prices, alternative power options and a
higher gold price.
A Mineral Resource model utilizing additional drill results and
revised model interpretations was completed in December
2020. An updated feasibility study is underway utilizing the
new Mineral Resource and several new concepts to reduce costs,
including a liquid natural gas ("LNG") hybrid power plant combined
with solar and dual fuel haul trucks that burn a mix of diesel fuel
and LNG. A larger processing plant size of 12 Mtpa is being
considered for this updated feasibility study. The Company
expects to have an internal decision document completed by the end
of March 2021, with an updated
feasibility study completed by the end of June 2021. The Kiaka
Project development budget for 2021 is $5.4
million.
Summary and Outlook
B2Gold had another remarkable year of strong growth in 2020,
marking the twelfth consecutive year of record annual gold
production. The Company's total gold production for 2020 was an
annual record of 1,040,737 ounces, and consolidated gold production
from the Company's three operating mines was an annual record of
995,258 ounces of gold. Due to the Company's strong net positive
cash position, strong operating results and the current higher gold
price environment, B2Gold's quarterly dividend rate was increased
in the third quarter of 2020 by 100% to $0.04 per common share (or an annualized rate of
$0.16 per common share), one of the
highest dividend yields in the gold sector.
Looking forward to 2021, B2Gold remains well positioned for
continued strong operational and financial performance with total
gold production guidance of between 970,000 and 1,030,000 ounces in
2021, total consolidated cash operating costs forecast to be
between $500 and $540 per ounce and total consolidated AISC
forecast to be between $870 and
$910 per ounce. The Company's
consolidated gold production from its three operating mines is
forecast to be between 920,000 and 970,000 ounces in 2021. The
Company's 2021 production guidance does not, however, include the
potential upside to increase Fekola's gold production in 2021 from
additional mining areas and processing capacity currently being
investigated.
In connection with advancing the Company's pipeline of
development projects, the Company expects to announce the results
of the Feasibility Study for the Gramalote Project in Colombia in April
2021, with a construction decision expected to be made
shortly thereafter. Based on the positive results from Gramalote's
PEA, B2Gold believes that the Gramalote Project has the potential
to become a large, low-cost open-pit gold mine (subject to the
results of a final feasibility study). The Company is currently
also updating the existing feasibility study for the Kiaka Project
in Burkina Faso, due to the
potential for improved economics resulting from lower fuel prices,
alternative power options and a higher gold price. The Company
expects to have completed an updated economic assessment of the
Kiaka Project by the end of the first quarter of 2021 for internal
review, followed by the updated feasibility study by mid-year
2021.
Following a very successful year for exploration in 2020, B2Gold
is planning a year of aggressive exploration in 2021 with a budget
of approximately $66 million
(excluding Gramalote). Exploration will focus predominantly in
Mali, other operating mine sites
in Namibia and the Philippines and grassroots exploration
programs around the world. Many years of target generation and
pursuing opportunities in prospective gold regions have culminated
in the Company allocating a record $25
million in 2021 to high quality targets for its grassroots
exploration programs, including a number of new regions.
The Company is focused on upgrading and expanding the existing
saprolite resources at the Anaconda area in Mali (located 20 kilometres north of Fekola),
with an updated Mineral Resource estimate expected in the first
quarter of 2021, which will feed into engineering studies currently
underway. This Mineral Resource estimate will also include the
initial Mineral Resource estimate on the sulphide material below
the saprolite. There are several other prospects in the Anaconda
area where possible Fekola-style mineralization has been
intersected in fresh rock which will be drilled in 2021.
An initial Mineral Resource estimate is expected to be completed
for the Cardinal zone (located within 500 metres of the current
Fekola resource pit) in the first quarter of 2021, and grade
control drilling is already underway at a portion of this deposit
to enable it to be mined for processing at the Fekola plant in the
second quarter of 2021. Ongoing exploration drilling will also
focus on infilling the high-grade portions of the Cardinal zone and
extend these down plunge. Drilling at Fekola North will also
continue to track the main Fekola structure north of the existing
open pit.
The Company's ongoing strategy is to continue to maximize
profitable production from its mines, further advance its pipeline
of development and exploration projects, evaluate opportunities and
continue to pay a dividend.
Qualified Persons
Bill Lytle, Senior Vice President
of Operations, a qualified person under National
Instrument 43-101, has approved the scientific and technical
information contained in this news release.
Fourth Quarter and Year-end 2020 Financial Results -
Conference Call Details
B2Gold executives will host a conference call to discuss the
results on Wednesday, February 24,
2021, at 10:00 am
PDT/1:00 pm EDT. You may
access the call by dialing the operator at +1 (647) 427-7450 (local
or international) or toll free at +1 (888) 231-8191 prior to the
scheduled start time or you may listen to the call via webcast by
clicking: https://www.webcaster4.com/Webcast/Page/1493/39662. A
playback version will be available for two weeks after the call at
+1 (416) 849-0833 (local or international) or toll free at +1 (855)
859-2056 (passcode 9676547).
On Behalf of B2GOLD CORP.
"Clive T. Johnson"
President and Chief Executive
Officer
For more information on B2Gold please visit the Company website
at www.b2gold.com or contact:
Ian
MacLean
|
Katie Bromley
|
Vice President,
Investor Relations
|
Manager,
Investor Relations & Public Relations
|
604-681-8371
|
604-681-8371
|
imaclean@b2gold.com
|
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE American LLC neither
approve nor disapprove the information contained in this news
release.
Production results and production guidance presented in this
news release reflect total production at the mines B2Gold operates
on a 100% project basis. Please see our Annual Information Form
dated March 20, 2020 for a discussion
of our ownership interest in the mines B2Gold operates.
This news release includes certain "forward-looking
information" and "forward-looking statements" (collectively
forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation, including: projections; outlook; guidance;
forecasts; estimates; and other statements regarding future or
estimated financial and operational performance, gold production
and sales, revenues and cash flows, and capital costs (sustaining
and non-sustaining) and operating costs, including projected cash
operating costs and AISC, and budgets on a consolidated and
mine by mine basis; the impact of the COVID-19 pandemic on B2Gold's
operations, including any restrictions or suspensions with respect
to our operations and the effect of any such restrictions or
suspensions on our financial and operational results; the ability
of the Company to successfully maintain our operations if they are
temporarily suspended, and to restart or ramp-up these
operations efficiently and economically, the impact of COVID-19 on
the Company's workforce, suppliers and other essential resources
and what effect those impacts, if they occur, would have on our
business, our planned capital and exploration expenditures;
future or estimated mine life, metal price assumptions, ore grades
or sources, gold recovery rates, stripping ratios, throughput, ore
processing; statements regarding anticipated exploration, drilling,
development, construction, permitting and other activities or
achievements of B2Gold; and including, without limitation: B2Gold
generating operating cashflows of approximately $630 million in 2021; remaining well positioned
for continued strong operational and financial performance for
2021; projected gold production, cash operating costs and AISC on a
consolidated and mine by mine basis in 2021, including production
being weighted heavily to the second half of 2021; total
consolidated cash operating costs for 2020 being between
$415 and $455 per ounce and at AISC of between
$780 and $820 per ounce; total consolidated gold
production of between 970,000 and 1,030,000 ounces in 2021 with
cash operating costs of between $500
and $540 per ounce and AISC of
between $870 and $910 per ounce; the Company' annual consolidated
gold production to average 950,000 ounces of gold per year between
2020 and 2024 with AISC averaging $825 per ounce; Otjikoto's production level to be
between 190,000 and 20,000 ounces per year though 2024; the ability
of the Fekola mill to run above the annualized throughput rate of
7.5 Mtpa; the anticipated cost, timing and results for the addition
of a solar plant to the Fekola Mine, including the completion of
construction by the end of the third quarter of 2021, contingent on
receiving replacements for the damaged components; the completion
of an updated mineral resource estimate for the Anaconda area in
the first quarter of 2021; the completion of an initial mineral
resource estimate on the Cardinal zone in the first quarter of
2021; the development of the Wolfshag underground mine at Otjikoto,
including the results of such development and the costs and timing
thereof; stope ore production at the Wolfshag underground mine at
Otjikoto commencing in early 2022; the completion of the Gramalote
Feasibility Study in April 2021 and
the results therein, and a construction decision to be made shortly
thereafter; the completion of an internal economic assessment of
the Kiaka project by the end of the first quarter of 2021 and
updated feasibility study by mid-year 2021; the current
income tax, withholding tax and other tax amounts to be
approximately $300 million in 2021
and to make total cash income tax payment of $380 million in 2021, including $140 million related to the 2020 residual tax and
Fekola's priority dividend; the residual Fekola tax
liability to be accrued at the end of 2021 to be less than
$20 million and the priority dividend
accrued in 2021 to be approximately $45
million and paid in mid-2022; the settlement in 2021
of the Company's remaining 2020 income tax liabilities of
approximately $75 million (at the
time of filing its tax return in April
2021) and for the payment of the 2020 priority dividend to
the Mali government of
approximately $50 million expected in
mid-year 2021; the potential payment of future dividends, including
the timing and amount of any such dividends, and the expectation
that quarterly dividends will be maintained at the same level; the
availability of the RCF for future drawdowns; and B2Gold's
attributable share at El Limon and La Libertad. All statements in
this news release that address events or developments that we
expect to occur in the future are forward-looking statements.
Forward-looking statements are statements that are not historical
facts and are generally, although not always, identified by words
such as "expect", "plan", "anticipate", "project", "target",
"potential", "schedule", "forecast", "budget", "estimate", "intend"
or "believe" and similar expressions or their negative
connotations, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. All such forward-looking
statements are based on the opinions and estimates of management as
of the date such statements are made.
Forward-looking statements necessarily involve assumptions,
risks and uncertainties, certain of which are beyond B2Gold's
control, including risks associated with or related to: the
duration and extent of the COVID-19 pandemic, the effectiveness of
preventative measures and contingency plans put in place by the
Company to respond to the COVID-19 pandemic, including, but not
limited to, social distancing, a non-essential travel ban, business
continuity plans, and efforts to mitigate supply chain disruptions;
escalation of travel restrictions on people or products and
reductions in the ability of the Company to transport and refine
doré; the volatility of metal prices and B2Gold's common shares;
changes in tax laws; the dangers inherent in exploration,
development and mining activities; the uncertainty of reserve and
resource estimates; not achieving production, cost or other
estimates; actual production, development plans and costs differing
materially from the estimates in B2Gold's feasibility and other
studies; the ability to obtain and maintain any necessary permits,
consents or authorizations required for mining activities;
environmental regulations or hazards and compliance with complex
regulations associated with mining activities; climate change and
climate change regulations; the ability to replace mineral reserves
and identify acquisition opportunities; the unknown liabilities of
companies acquired by B2Gold; the ability to successfully integrate
new acquisitions; fluctuations in exchange rates; the availability
of financing; financing and debt activities, including potential
restrictions imposed on B2Gold's operations as a result thereof and
the ability to generate sufficient cash flows; operations in
foreign and developing countries and the compliance with foreign
laws, including those associated with operations in Mali, Namibia, the
Philippines, Colombia and
Burkina Faso and including risks
related to changes in foreign laws and changing policies related to
mining and local ownership requirements or resource nationalization
generally, including in response to the COVID-19 outbreak; remote
operations and the availability of adequate infrastructure;
fluctuations in price and availability of energy and other inputs
necessary for mining operations; shortages or cost increases in
necessary equipment, supplies and labour; regulatory, political and
country risks, including local instability or acts of terrorism and
the effects thereof; the reliance upon contractors, third parties
and joint venture partners; the lack of sole decision-making
authority related to Filminera Resources Corporation, which owns
the Masbate Project; challenges to title or surface rights; the
dependence on key personnel and the ability to attract and retain
skilled personnel; the risk of an uninsurable or uninsured loss;
adverse climate and weather conditions; litigation risk;
competition with other mining companies; community support for
B2Gold's operations, including risks related to strikes and the
halting of such operations from time to time; conflicts with small
scale miners; failures of information systems or information
security threats; the ability to maintain adequate internal
controls over financial reporting as required by law, including
Section 404 of the Sarbanes-Oxley Act; compliance with
anti-corruption laws, and sanctions or other similar measures;
social media and B2Gold's reputation; risks affecting Calibre
having an impact on the value of the Company's investment in
Calibre, and potential dilution of our equity interest in Calibre;
as well as other factors identified and as described in more detail
under the heading "Risk Factors" in B2Gold's most recent Annual
Information Form, B2Gold's current Form 40-F Annual Report and
B2Gold's other filings with Canadian securities regulators and the
U.S. Securities and Exchange Commission (the "SEC"), which may be
viewed at www.sedar.com and www.sec.gov, respectively (the
"Websites"). The list is not exhaustive of the factors that may
affect B2Gold's forward-looking statements.
B2Gold's forward-looking statements are based on the
applicable assumptions and factors management considers reasonable
as of the date hereof, based on the information available to
management at such time. These assumptions and factors include, but
are not limited to, assumptions and factors related to B2Gold's
ability to carry on current and future operations, including: the
duration and effects of COVID-19 on our operations and
workforce; development and exploration activities; the timing,
extent, duration and economic viability of such operations,
including any mineral resources or reserves identified thereby; the
accuracy and reliability of estimates, projections, forecasts,
studies and assessments; B2Gold's ability to meet or achieve
estimates, projections and forecasts; the availability and cost of
inputs; the price and market for outputs, including gold; foreign
exchange rates; taxation levels; the timely receipt of necessary
approvals or permits; the ability to meet current and future
obligations; the ability to obtain timely financing on reasonable
terms when required; the current and future social, economic and
political conditions; and other assumptions and factors generally
associated with the mining industry.
B2Gold's forward-looking statements are based on the opinions
and estimates of management and reflect their current expectations
regarding future events and operating performance and speak only as
of the date hereof. B2Gold does not assume any obligation to update
forward-looking statements if circumstances or management's
beliefs, expectations or opinions should change other than as
required by applicable law. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results, performance or achievements could differ materially from
those expressed in, or implied by, these forward-looking
statements. Accordingly, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what benefits or liabilities B2Gold
will derive therefrom. For the reasons set forth above, undue
reliance should not be placed on forward-looking
statements.
Non-IFRS Measures
This news release
includes certain terms or performance measures commonly used in the
mining industry that are not defined under International Financial
Reporting Standards ("IFRS"), including "cash operating costs" and
"all-in sustaining costs" (or "AISC"). Non-IFRS measures do not
have any standardized meaning prescribed under IFRS, and therefore
they may not be comparable to similar measures employed by other
companies. The data presented is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS and should be read in conjunction with B2Gold's consolidated
financial statements. Readers should refer to B2Gold's Management
Discussion and Analysis, available on the Websites, under the
heading "Non-IFRS Measures" for a more detailed discussion of how
B2Gold calculates certain of such measures and a reconciliation of
certain measures to IFRS terms.
Cautionary Note to United States
Investors
The disclosure in this MD&A was
prepared in accordance with Canadian National Instrument 43-101
("NI 43-101"), which differs significantly from the requirements of
the SEC, and resource and reserve information contained or
referenced in this MD&A may not be comparable to similar
information disclosed by public companies subject to the technical
disclosure requirements of the SEC. Historical results or
feasibility models presented herein are not guarantees or
expectations of future performance.
B2GOLD CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars, except per share
amounts)
(Unaudited)
|
|
|
|
|
|
|
|
For the
three
months ended
Dec. 31, 2020
|
For the three
months ended
Dec. 31, 2019
|
|
For the
twelve
months ended
Dec. 31, 2020
|
For the twelve
months ended
Dec. 31, 2019
|
Gold
revenue
|
$
|
479,525
|
$
|
313,659
|
|
$
|
1,788,928
|
$
|
1,155,637
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
Production costs
|
(114,430)
|
(95,502)
|
|
(407,865)
|
(374,178)
|
Depreciation and depletion
|
(78,207)
|
(67,717)
|
|
(301,491)
|
(251,306)
|
Royalties and production taxes
|
(30,775)
|
(22,153)
|
|
(121,285)
|
(79,693)
|
Total cost of
sales
|
(223,412)
|
(185,372)
|
|
(830,641)
|
(705,177)
|
|
|
|
|
|
|
Gross
profit
|
256,113
|
128,287
|
|
958,287
|
450,460
|
|
|
|
|
|
|
General and
administrative
|
(18,585)
|
(17,559)
|
|
(45,605)
|
(54,558)
|
Share-based
payments
|
(1,729)
|
(3,689)
|
|
(17,129)
|
(17,139)
|
Reversal of
impairment of long-lived assets
|
—
|
100,477
|
|
174,309
|
100,477
|
Gain on sale of
Nicaraguan Group
|
—
|
40,129
|
|
—
|
40,129
|
Write-down of mineral
property interests
|
98
|
(4,953)
|
|
(11,353)
|
(7,277)
|
Community
relations
|
(1,568)
|
(807)
|
|
(6,484)
|
(3,227)
|
Share of net income
of associate
|
8,655
|
1,114
|
|
22,167
|
1,114
|
Foreign exchange
(losses) gains
|
(7,299)
|
(1,891)
|
|
(15,301)
|
1,633
|
Other
|
(529)
|
(1,441)
|
|
(5,957)
|
(3,604)
|
Operating
income
|
235,156
|
239,667
|
|
1,052,934
|
508,008
|
|
|
|
|
|
|
Interest and
financing expense
|
(2,846)
|
(4,910)
|
|
(15,803)
|
(26,550)
|
Gains (losses) on
derivative instruments
|
6,427
|
2,404
|
|
(5,706)
|
1,580
|
Other
|
1,016
|
(85)
|
|
3,003
|
(649)
|
Income from
continuing operations before taxes
|
239,753
|
237,076
|
|
1,034,428
|
482,389
|
|
|
|
|
|
|
Current income tax,
withholding and other taxes
|
(79,662)
|
(30,076)
|
|
(309,913)
|
(114,449)
|
Deferred income tax
recovery (expense)
|
14,314
|
(28,298)
|
|
(52,102)
|
(59,081)
|
Net income from
continuing operations
|
174,405
|
178,702
|
|
672,413
|
308,859
|
|
|
|
|
|
|
Net income from
discontinued operations attributable to shareholders of the
Company
|
—
|
3,711
|
|
—
|
6,982
|
Net income for the
period
|
$
|
174,405
|
$
|
182,413
|
|
$
|
672,413
|
$
|
315,841
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
Shareholders of the Company
|
$
|
168,462
|
$
|
177,414
|
|
$
|
628,063
|
$
|
293,382
|
Non-controlling interests
|
5,943
|
4,999
|
|
44,350
|
22,459
|
Net income for the
period
|
$
|
174,405
|
$
|
182,413
|
|
$
|
672,413
|
$
|
315,841
|
|
|
|
|
|
|
Earnings per share
from continuing operations
(attributable to
shareholders of the Company)
|
|
|
|
|
|
Basic
|
$
|
0.16
|
$
|
0.17
|
|
$
|
0.60
|
$
|
0.28
|
Diluted
|
$
|
0.16
|
$
|
0.17
|
|
$
|
0.59
|
$
|
0.28
|
|
|
|
|
|
|
Earnings per
share
(attributable to
shareholders of the Company)
|
|
|
|
|
|
Basic
|
$
|
0.16
|
$
|
0.17
|
|
$
|
0.60
|
$
|
0.29
|
Diluted
|
$
|
0.16
|
$
|
0.17
|
|
$
|
0.59
|
$
|
0.29
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
(in
thousands)
|
|
|
|
|
|
Basic
|
1,050,752
|
1,027,001
|
|
1,043,385
|
1,014,100
|
Diluted
|
1,064,599
|
1,038,672
|
|
1,056,302
|
1,022,915
|
B2GOLD CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of United States dollars)
(Unaudited)
|
|
|
|
|
|
|
For the
three
months ended
Dec. 31, 2020
|
For the
three
months ended
Dec. 31, 2019
|
|
For the
twelve
months ended
Dec. 31, 2020
|
For the
twelve
months ended
Dec. 31, 2019
|
Operating
activities
|
|
|
|
|
|
Net income from
continuing operations for the period
|
$
|
174,405
|
$
|
178,702
|
|
$
|
672,413
|
$
|
308,859
|
Mine restoration
provisions settled
|
(217)
|
—
|
|
(425)
|
(124)
|
Non-cash charges,
net
|
48,735
|
(33,567)
|
|
198,058
|
187,720
|
Changes in non-cash
working capital
|
(26,099)
|
(277)
|
|
86,777
|
(45,049)
|
Changes in long-term
value added tax receivables
|
(134)
|
(2,293)
|
|
(6,178)
|
(1,968)
|
Cash provided by
operating activities of continuing operations
|
196,690
|
142,565
|
|
950,645
|
449,438
|
Cash provided by
operating activities of discontinued operations
|
—
|
2,340
|
|
—
|
42,535
|
Cash provided by
operating activities
|
196,690
|
144,905
|
|
950,645
|
491,973
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Revolving credit
facility, drawdowns net of transaction costs
|
—
|
—
|
|
250,000
|
(5,574)
|
Repayment of
revolving credit facility
|
—
|
(100,000)
|
|
(450,000)
|
(200,000)
|
Equipment loan
facilities, drawdowns net of transaction costs
|
41,416
|
—
|
|
41,416
|
3,463
|
Repayment of
equipment loan facilities
|
(7,446)
|
(5,907)
|
|
(28,445)
|
(24,140)
|
Cash proceeds from
stock option exercises
|
3,017
|
9,319
|
|
46,152
|
72,932
|
Dividends
paid
|
(42,046)
|
(10,268)
|
|
(115,266)
|
(10,268)
|
Interest and
commitment fees paid
|
(1,613)
|
(4,207)
|
|
(12,451)
|
(22,373)
|
Distributions to
non-controlling interests
|
(9,206)
|
—
|
|
(9,206)
|
—
|
Principal payments on
lease arrangements
|
(727)
|
(842)
|
|
(3,637)
|
(3,146)
|
Restricted cash
movement
|
1,341
|
(69)
|
|
2,572
|
1,407
|
Cash used by
financing activities of continuing operations
|
(15,264)
|
(111,974)
|
|
(278,865)
|
(187,699)
|
Cash used by
financing activities of discontinued operations
|
—
|
(40)
|
|
—
|
(364)
|
Cash used by
financing activities
|
(15,264)
|
(112,014)
|
|
(278,865)
|
(188,063)
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Expenditures on
mining interests:
|
|
|
|
|
|
Fekola Mine
|
(28,378)
|
(68,130)
|
|
(184,037)
|
(132,847)
|
Masbate
Mine
|
(14,619)
|
(5,205)
|
|
(34,041)
|
(25,894)
|
Otjikoto
Mine
|
(25,119)
|
(21,633)
|
|
(66,815)
|
(56,085)
|
Gramalote
Project
|
(3,924)
|
(2,140)
|
|
(19,498)
|
(5,187)
|
Other exploration and
development
|
(15,661)
|
(10,941)
|
|
(48,182)
|
(41,147)
|
Cash proceeds from
sale of Nicaraguan Group, net of transaction costs
|
15,525
|
51,530
|
|
15,525
|
51,530
|
Non-refundable
deposit received on Toega Property
|
—
|
—
|
|
9,000
|
—
|
Cash paid into
reclamation accounts
|
(2,878)
|
(1,000)
|
|
(11,575)
|
(4,000)
|
Other
|
1,106
|
890
|
|
1,667
|
1,271
|
Cash used by
investing activities of continuing operations
|
(73,948)
|
(56,629)
|
|
(337,956)
|
(212,359)
|
Cash used by
investing activities of discontinued operations
|
—
|
(2,141)
|
|
—
|
(54,431)
|
Cash used by
investing activities
|
(73,948)
|
(58,770)
|
|
(337,956)
|
(266,790)
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
107,478
|
(25,879)
|
|
333,824
|
37,120
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
6,747
|
1,311
|
|
5,265
|
724
|
Cash and cash
equivalents, beginning of period
|
365,460
|
165,164
|
|
140,596
|
102,752
|
Cash and cash
equivalents, end of period
|
$
|
479,685
|
$
|
140,596
|
|
$
|
479,685
|
$
|
140,596
|
|
|
|
|
|
|
B2GOLD CORP.
CONSOLIDATED BALANCE SHEETS (Expressed in thousands of
United States dollars)
|
|
As at December
31,
2020
|
As at December
31,
2019
|
Assets
|
|
|
Current
|
|
|
Cash and cash
equivalents
|
$
|
479,685
|
$
|
140,596
|
Accounts receivable,
prepaids and other
|
21,306
|
37,890
|
Value-added and other
tax receivables
|
11,797
|
11,070
|
Inventories
|
238,055
|
217,923
|
Assets classified as
held for sale
|
11,855
|
22,021
|
|
762,698
|
429,500
|
|
|
|
Value-added tax
receivables
|
35,383
|
25,153
|
Mining
interests
|
|
|
Owned by subsidiaries
and joint operations
|
2,387,020
|
2,046,731
|
Investments in joint
ventures and associates
|
76,235
|
130,736
|
Other
assets
|
76,496
|
49,615
|
Deferred income
taxes
|
24,547
|
1,336
|
|
$
|
3,362,379
|
$
|
2,683,071
|
Liabilities
|
|
|
Current
|
|
|
Accounts payable and
accrued liabilities
|
$
|
89,062
|
$
|
83,370
|
Current income and
other taxes payable
|
154,709
|
53,396
|
Current portion of
long-term debt
|
34,111
|
26,030
|
Other current
liabilities
|
8,211
|
2,266
|
|
286,093
|
165,062
|
|
|
|
Long-term
debt
|
75,911
|
235,821
|
Mine restoration
provisions
|
104,282
|
75,419
|
Deferred income
taxes
|
220,903
|
145,590
|
Employee benefits
obligation
|
5,874
|
4,736
|
Other long-term
liabilities
|
8,726
|
4,791
|
|
701,789
|
631,419
|
Equity
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
|
|
Issued: 1,051,138,175 common shares
(Dec 31, 2019 – 1,030,399,987)
|
2,407,734
|
2,339,874
|
Contributed
surplus
|
48,472
|
56,685
|
Accumulated other
comprehensive loss
|
(138,533)
|
(145,071)
|
Retained earnings
(deficit)
|
254,343
|
(261,245)
|
|
2,572,016
|
1,990,243
|
Non-controlling
interests
|
88,574
|
61,409
|
|
2,660,590
|
2,051,652
|
|
$
|
3,362,379
|
$
|
2,683,071
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/b2gold-reports-strong-fourth-quarter-and-full-year-2020-results-annual-records-for-2020-gold-production-gold-revenues-and-operating-cash-flows-declares-2021-first-quarter-dividend-of-0-04-per-share-301234080.html
SOURCE B2Gold Corp.