B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or
the “Company”) announces its operational and financial results for
the second quarter of 2023. All dollar figures are in United States
dollars unless otherwise indicated.
2023 Second Quarter
Highlights
- Total gold production of
262,701 ounces in Q2 2023, in-line with expectations for the
quarter: Total gold production of 262,701 ounces,
including 16,740 ounces of attributable production from Calibre
Mining Corp. (“Calibre”). The Fekola Mine produced 152,427 ounces
in the quarter, benefitting from a favorable mine phasing sequence
in the second quarter, with Phase 6 of the Fekola pit providing
high-grade ore to the process plant. All B2Gold operations are on
track to meet or exceed annual production guidance ranges.
- Total consolidated cash
operating costs of $667 per gold
ounce sold in Q2 2023, below the annual guidance range:
Total consolidated cash operating costs (see “Non-IFRS Measures”)
(including estimated attributable results for Calibre) of $667 per
gold ounce sold during the quarter. Consolidated cash operating
costs from the Company’s three operating mines of $639 per gold
ounce sold.
- Total consolidated all-in
sustaining costs of $1,214 per gold ounce sold in Q2 2023, below
the midpoint of the annual guidance range: Total
consolidated all-in sustaining costs (see “Non-IFRS Measures”)
(including estimated attributable results for Calibre) of $1,214
per gold ounce sold. Consolidated all-in sustaining costs from the
Company’s three operating mines of $1,210 per gold ounce sold.
- Attributable net income of
$0.06 per share; Adjusted attributable net income of $0.07 per
share in Q2 2023: Net income attributable to the
shareholders of the Company of $80 million ($0.06 per share);
adjusted net income (see “Non-IFRS Measures”) attributable to the
shareholders of the Company of $86 million ($0.07 per share).
- Operating cash flow before
working capital adjustments of $199 million in Q2 2023:
Cash flow provided by operating activities before working capital
adjustments was $199 million in the second quarter of 2023.
- Robust financial
position: At June 30, 2023, the Company had cash and cash
equivalents of $506 million and working capital (defined as current
assets less current liabilities) of $570 million.
- Q2 2023 dividend of $0.04
per share declared: The Company remains in a strong net
positive cash position and paid a second quarter dividend of $0.04
per common share on June 27, 2023 (annualized rate of $0.16 per
common share).
- Completed acquisition of
Sabina Gold and Silver Corp. (“Sabina”); Goose Project construction
on-track for mill completion and first gold production in Q1
2025: In the second quarter of 2023 the Company completed
its inaugural winter ice road season, extinguished certain of
Sabina’s construction financing obligations and received all
critical materials that were necessary to maintain the schedule for
construction completion of the mill and first gold production at
the Goose Project in the first quarter of 2025. Currently, camp
construction is partially complete, generators are being installed,
and construction workshops are being erected. The Company has also
decided to move to an owner-operated construction model versus a
fixed priced EPC contract for the construction of the process
plant, which will reduce costs and result in a mill with higher
availability and lower sustaining capital requirements. Using
B2Gold's owner-operated team also allows for flexibility in
construction and the ability to prioritize construction activities
as needed.
- Updated and significantly
increased Mineral Resource Estimate for the Anaconda Area
announced: On June 21, 2023, the Company announced an
updated Mineral Resource estimate that includes a significant
increase in the laterite, saprolite and saprock (collectively
“oxide”) Mineral Resources, and an initial sulphide Indicated
Mineral Resource estimate for the Anaconda Area.
Second Quarter 2023 Results
| |
Three months ended |
Six months ended |
| |
June 30, |
June 30, |
|
|
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
| Gold revenue ($ in
thousands) |
470,854 |
381,985 |
944,410 |
747,568 |
| Net income ($ in
thousands) |
91,850 |
40,686 |
193,754 |
131,489 |
| Earnings per share – basic(1)
($/ share) |
0.06 |
0.04 |
0.14 |
0.11 |
| Earnings per share –
diluted(1) ($/ share) |
0.06 |
0.04 |
0.14 |
0.11 |
| Cash provided by operating
activities ($ thousands) |
194,983 |
124,879 |
398,806 |
232,189 |
| Average realized gold price
($/ ounce) |
1,969 |
1,861 |
1,934 |
1,867 |
| Adjusted net income(1)(2) ($
in thousands) |
85,804 |
45,248 |
191,666 |
110,344 |
| Adjusted earnings per
share(1)(2) – basic ($) |
0.07 |
0.04 |
0.16 |
0.10 |
| Consolidated
operations results: |
|
|
|
|
| Gold sold (ounces) |
239,100 |
205,300 |
488,250 |
400,400 |
| Gold produced (ounces) |
245,961 |
208,858 |
496,680 |
405,331 |
| Cash operating costs(2) ($/
gold ounce sold) |
639 |
771 |
574 |
702 |
| Cash operating costs(2) ($/
gold ounce produced) |
607 |
766 |
591 |
722 |
| Total cash costs(2) ($/ gold
ounce sold) |
777 |
888 |
714 |
826 |
| All-in sustaining costs(2) ($/
gold ounce sold) |
1,210 |
1,109 |
1,128 |
1,069 |
| Operations results
including equity investment in Calibre: |
|
|
|
|
| Gold sold (ounces) |
255,897 |
220,129 |
521,189 |
428,218 |
| Gold produced (ounces) |
262,701 |
223,623 |
529,557 |
432,988 |
| Cash operating costs(2) ($/
gold ounce sold) |
667 |
786 |
602 |
723 |
| Cash operating costs(2) ($/
gold ounce produced) |
636 |
781 |
618 |
742 |
| Total cash costs(2) ($/ gold
ounce sold) |
800 |
900 |
738 |
844 |
| All-in sustaining costs(2) ($/
gold ounce sold) |
1,214 |
1,111 |
1,135 |
1,074 |
| |
|
|
|
|
(1) Attributable to the shareholders of the
Company.(2) Non-IFRS measure. For a description of how these
measures are calculated and a reconciliation of these measures to
the most directly comparable measures specified, defined or
determined under IFRS and presented in the Company’s financial
statements, refer to “Non-IFRS Measures”.
Liquidity and Capital
Resources
B2Gold continues to maintain a strong financial
position and liquidity. At June 30, 2023, the Company had cash and
cash equivalents of $506 million (December 31, 2022 - $652 million)
and working capital (defined as current assets less current
liabilities) of $570 million (December 31, 2022 - $802 million). At
June 30, 2023, the full amount of the Company's $600 million
revolving credit facility (“RCF”) was undrawn and available. In
July 2023, the available and undrawn capacity of the RCF was
increased to $700 million under the accordion feature with the
addition of the National Bank of Canada to the syndicate of
lenders.
Second Quarter 2023
Dividend
On June 5, 2023, B2Gold’s Board of Directors
declared a cash dividend for the second quarter of 2023 of $0.04
per common share (or an expected $0.16 per share on an annualized
basis), paid on June 27, 2023. The declaration and payment of
future quarterly dividends remains at the discretion of the Board
and will depend on the Company's financial results, cash
requirements, future prospects and other factors deemed relevant by
the Board.
Back River Gold District
On April 19, 2023, the Company completed the
acquisition of Sabina, resulting in the Company acquiring Sabina’s
100% owned Back River Gold District located in Nunavut, Canada by
issuing approximately 216 million common shares in B2Gold as
consideration. The Back River Gold District consists of five
mineral claims blocks along an 80 kilometer (“km”) belt. The most
advanced project in the district, Goose, is fully permitted,
construction ready, and has been de-risked with significant
infrastructure currently in place. The Goose Project has an
estimated two year construction period with first gold production
expected in the first quarter of 2025. In addition, B2Gold obtained
significant untapped exploration potential across the 80 km belt.
B2Gold’s management team has strong northern construction expertise
and experience to deliver the fully permitted Goose Project, and
the financial resources to develop the significant gold resource
endowment at the Back River Gold District into a large, long life
mining complex. B2Gold recognizes that respect and collaboration
with the Kitikmeot Inuit Association is central to the license to
operate in the Back River Gold District and will continue to
prioritize developing the project in a manner that recognizes
Indigenous input and concerns and brings long-term socio-economic
benefits to the area.
Subsequent to completion of the acquisition of
Sabina, in the second quarter of 2023, B2Gold completed its
inaugural winter ice road season, extinguished certain of Sabina’s
construction financing obligations and received all critical
materials that were expected to be necessary to maintain the
schedule for construction completion of the mill and first gold
production at the Goose Project in the first quarter of 2025.
Currently, camp construction is partially complete, generators are
being installed, and construction workshops are being erected. The
Company extinguished certain of Sabina's construction financing
obligations with payments totaling $112 million as follows: senior
secured debt facility for a $2 million payment, gold prepay
facility for a $1 million payment, the entire gold metal offtake
agreement for a $63 million payment, and one-third of the gold
stream arrangement for a $46 million payment.
On June 23, 2023, the Company announced an
initial capital expenditure estimate of C$800 million, which was in
line with B2Gold expectations since the Sabina acquisition
announcement and reflects scope changes to further optimize the
Goose Project. B2Gold has updated the construction budget to
de-risk the project and construct a reliable and low operating cost
mine. In addition, the Company has made the decision to accelerate
underground mining development to increase annual gold production
over the first five years of the mine plan, including the mining of
the Umwelt crown pillar. The cost to accelerate underground mining
is estimated at an additional C$90 million for a total project
capital expenditure of C$890 million (approximately $676 million)
with approximately C$550 million (approximately $418 million)
expected to be spent by B2Gold up to completion of construction in
the first quarter of 2025.
In the second quarter of 2023, a significant
2023 exploration program was approved for the Back River Gold
District. B2Gold has approved a $20 million exploration budget for
the balance of 2023 to complete approximately 25,000 meters (“m”)
of drilling. Drilling will be focused in proximity to existing
deposits at the Goose Project, as well as following up on regional
targets identified at the George, Boulder, Boot and Del
projects.
Operations
Fekola Mine - Mali
| |
Three months ended |
Six months ended |
| |
June 30, |
June 30, |
|
|
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
| Gold revenue ($ in
thousands) |
281,672 |
224,476 |
595,897 |
422,338 |
| Gold sold (ounces) |
142,850 |
121,250 |
307,900 |
226,650 |
| Average realized gold price
($/ ounce) |
1,972 |
1,851 |
1,935 |
1,863 |
| Tonnes of ore milled |
2,324,043 |
2,421,526 |
4,595,934 |
4,620,749 |
| Grade (grams/ tonne) |
2.24 |
1.71 |
2.36 |
1.63 |
| Recovery (%) |
91.8 |
92.4 |
91.9 |
92.8 |
| Gold production (ounces) |
152,427 |
123,066 |
318,291 |
224,714 |
| Cash operating costs(1) ($/
gold ounce sold) |
555 |
711 |
510 |
652 |
| Cash operating costs(1) ($/
gold ounce produced) |
538 |
639 |
509 |
632 |
| Total cash costs(1) ($/ gold
ounce sold) |
721 |
847 |
673 |
797 |
| All-in sustaining costs(1) ($/
gold ounce sold) |
1,165 |
949 |
1,057 |
967 |
| Capital expenditures ($ in
thousands) |
74,151 |
20,198 |
127,946 |
48,426 |
| Exploration ($ in
thousands) |
— |
4,062 |
1,706 |
10,456 |
| |
|
|
|
|
(1) Non-IFRS measure. For a description of how
these measures are calculated and a reconciliation of these
measures to the most directly comparable measures specified,
defined or determined under IFRS and presented in the Company’s
financial statements, refer to “Non-IFRS Measures”.
The Fekola Mine in Mali (owned 80% by the
Company and 20% by the State of Mali) had a successful second
quarter of 2023 with gold production of 152,427 ounces. Fekola's
gold production was slightly lower than expected due to a number of
factors including lower than budgeted gold recovery, delayed
delivery of a key mine production excavator and lower than budgeted
mine production from Phase 6 of the Fekola pit as a result of blast
hole drilling inefficiencies and congestion in working areas. The
Company expects that the gold production variance will be caught up
in the fourth quarter of 2023 and that the Fekola Complex is on
track to meet its annual production guidance. For the second
quarter of 2023, mill feed grade was 2.24 grams per tonne (“g/t”),
mill throughput was 2.32 million tonnes, and gold recovery averaged
91.8%.
The Fekola Mine’s cash operating costs (refer to
“Non-IFRS Measures”) for the second quarter of 2023 were $538 per
ounce produced ($555 per gold ounce sold). Cash operating costs per
ounce produced for the second quarter of 2023 were slightly higher
than expected resulting from lower than anticipated gold
production.
All-in sustaining costs (refer to “Non-IFRS
Measures”) for the second quarter of 2023 for the Fekola Mine were
$1,165 per gold ounce sold. All-in sustaining costs were higher
than expected primarily due to higher than anticipated sustaining
capital expenditures as a result of timing of capital
expenditures.
Capital expenditures in the second quarter of
2023 totaled $74 million primarily consisting of $21 million for
mobile equipment purchases and rebuilds, $21 million for
prestripping, $12 million for Fekola underground development, $6
million for the tailings facility raise project, $4 million for
solar plant expansion and $3 million for haul road
construction.
The low-cost Fekola Complex in Mali is expected
to produce between 580,000 and 610,000 ounces of gold in 2023 at
cash operating costs of between $565 and $625 per ounce and all-in
sustaining costs of between $1,085 and $1,145 per ounce. At the
Fekola Mine, ore will continue to be mined from the Fekola and
Cardinal pits. Receipt of an exploitation license for the Bantako
North permit area remains outstanding pending finalization of a
proposed new 2023 Mining Code by the State of Mali. As a result,
the Company now expects Fekola Regional budgeted production of
18,000 ounces to be delayed into 2024. Due to availability of
additional ore sources in the Fekola Complex, production guidance
of between 580,000 and 610,000 ounces for the Fekola Complex for
2023 remains unchanged.
Masbate Mine – The Philippines
| |
Three months ended |
Six months ended |
| |
June 30, |
June 30, |
|
|
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
| Gold revenue ($ in
thousands) |
111,291 |
99,675 |
168,283 |
182,768 |
| Gold sold (ounces) |
56,700 |
53,250 |
86,350 |
97,550 |
| Average realized gold price
($/ ounce) |
1,963 |
1,872 |
1,949 |
1,874 |
| Tonnes of ore milled |
2,000,360 |
1,986,253 |
4,069,402 |
3,996,441 |
| Grade (grams/ tonne) |
1.03 |
1.09 |
0.99 |
1.14 |
| Recovery (%) |
74.3 |
78.4 |
73.9 |
78.2 |
| Gold production (ounces) |
49,478 |
54,375 |
95,842 |
114,139 |
| Cash operating costs(1) ($/
gold ounce sold) |
850 |
764 |
847 |
773 |
| Cash operating costs(1) ($/
gold ounce produced) |
817 |
840 |
849 |
772 |
| Total cash costs(1) ($/ gold
ounce sold) |
960 |
860 |
971 |
886 |
| All-in sustaining costs(1) ($/
gold ounce sold) |
1,091 |
1,082 |
1,169 |
1,054 |
| Capital expenditures ($ in
thousands) |
6,098 |
14,057 |
15,051 |
19,750 |
| Exploration ($ in
thousands) |
1,008 |
1,378 |
1,967 |
2,415 |
| |
|
|
|
|
(1) Non-IFRS measure. For a description of how
these measures are calculated and a reconciliation of these
measures to the most directly comparable measures specified,
defined or determined under IFRS and presented in the Company’s
financial statements, refer to “Non-IFRS Measures”.
The Masbate Mine in the Philippines had a strong
second quarter of 2023 with gold production of 49,478 ounces, above
expectations, as a result of higher than anticipated mill feed
grade and mill throughput. For the second quarter of 2023, mill
feed grade was 1.03 g/t gold, mill throughput was 2.00 million
tonnes, and gold recovery averaged 74.3%.
The Masbate Mine's cash operating costs (refer
to “Non-IFRS Measures”) for the second quarter of 2023 were $817
per ounce produced ($850 per gold ounce sold). Cash operating costs
per ounce produced for the second quarter of 2023 were lower than
expected as a result of higher than expected gold production, and
lower than anticipated mining and processing costs resulting from
lower than expected diesel and heavy fuel oil ("HFO") costs.
All-in sustaining costs (refer to “Non-IFRS
Measures”) for the second quarter of 2023 were $1,091 per ounce
sold. All-in sustaining costs for the second quarter of 2023 were
lower than anticipated as a result of lower than expected cash
operating costs and sustaining capital expenditures, and higher
than expected gold ounces sold. The lower than expected sustaining
capital expenditures are mainly a result of timing of expenditures
and expected to be incurred later in 2023.
Capital expenditures in the second quarter of
2023 totaled $6 million, primarily consisting of $3 million for
mobile equipment purchases and rebuilds.
The Masbate Mine in the Philippines is expected
to produce between 170,000 and 190,000 ounces of gold in 2023 at
cash operating costs of between $985 and $1,045 per ounce and
all-in sustaining costs of between $1,370 and $1,430 per ounce. For
2023, Masbate is expected to process 7.8 million tonnes of ore at
an average grade of 0.96 g/t gold with a process gold recovery of
74.5%. Gold production is scheduled to be relatively consistent
throughout 2023. Mill feed will be a blend of mined fresh ore
sourced from the Main Vein Pit and low-grade ore stockpiles.
The Masbate Mine has benefited from lower fuel
costs over the first half of 2023. The Company will continue to
monitor actual versus budget fuel prices in the third quarter of
2023 and if lower pricing continues to be observed, it will
consider whether any revision to the Masbate Mine's full-year cash
operating costs and all-in sustaining costs guidance is required at
that time.
Otjikoto Mine - Namibia
| |
Three months ended |
Six months ended |
| |
June 30, |
June 30, |
|
|
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
| Gold revenue ($ in
thousands) |
77,891 |
57,834 |
180,230 |
142,462 |
| Gold sold (ounces) |
39,550 |
30,800 |
94,000 |
76,200 |
| Average realized gold price
($/ ounce) |
1,969 |
1,878 |
1,917 |
1,870 |
| Tonnes of ore milled |
875,055 |
850,889 |
1,699,007 |
1,696,111 |
| Grade (grams/ tonne) |
1.59 |
1.17 |
1.53 |
1.24 |
| Recovery (%) |
98.7 |
98.4 |
98.7 |
98.5 |
| Gold production (ounces) |
44,056 |
31,417 |
82,547 |
66,478 |
| Cash operating costs(1) ($/
gold ounce sold) |
641 |
1,018 |
535 |
763 |
| Cash operating costs(1) ($/
gold ounce produced) |
611 |
1,136 |
609 |
943 |
| Total cash costs(1) ($/ gold
ounce sold) |
720 |
1,093 |
612 |
838 |
| All-in sustaining costs(1) ($/
gold ounce sold) |
1,187 |
1,403 |
1,024 |
1,090 |
| Capital expenditures ($ in
thousands) |
15,630 |
23,152 |
32,976 |
39,283 |
| Exploration ($ in
thousands) |
996 |
873 |
1,490 |
1,379 |
| |
|
|
|
|
(1) Non-IFRS measure. For a description of how
these measures are calculated and a reconciliation of these
measures to the most directly comparable measures specified,
defined or determined under IFRS and presented in the Company’s
financial statements, refer to “Non-IFRS Measures”.
The Otjikoto Mine in Namibia, in which the
Company holds a 90% interest, performed well during the second
quarter of 2023, producing 44,056 ounces of gold. As a result of
the timing of higher-grade ore mining, Otjikoto’s annual gold
production is expected to be 60% weighted to the second half of
2023, when mining is scheduled to reach the higher-grade portions
of Phase 4 of the Otjikoto pit coupled with higher production from
the Wolfshag underground mine. For the second quarter of 2023, mill
feed grade was 1.59 g/t, mill throughput was 0.88 million tonnes,
and gold recovery averaged 98.7%.
Production from the Wolfshag underground mine
remained consistent during the second quarter of 2023, averaging
over 1,000 tonnes per day at an average grade of 4.31 g/t. As of
the beginning of 2023, the Probable Mineral Reserve estimate for
the Wolfshag deposit includes 203,000 ounces of gold in 1.1 million
tonnes of ore at an average grade of 5.55 g/t gold.
Cash operating costs (refer to “Non-IFRS
Measures”) for the second quarter of 2023 were $611 per gold ounce
produced ($641 per ounce gold sold). Cash operating costs per ounce
produced for the second quarter of 2023 were lower than expected as
a result of higher production as described above, lower than
budgeted fuel costs and a weaker Namibian dollar.
All-in sustaining costs for the second quarter
of 2023 were $1,187 per gold ounce sold. All-in sustaining costs
for the second quarter of 2023 were lower than anticipated as a
result of lower than expected cash operating costs described above,
and lower than expected sustaining capital expenditures primarily
related to the timing of underground development. The lower than
expected sustaining capital expenditures are mainly a result of
timing of expenditures and expected to be incurred later in
2023.
Capital expenditures for the second quarter of
2023 totaled $16 million, consisting of $13 million for
pre-stripping in the Otjikoto pit and $2 million for Wolfshag
underground mine development.
The Otjikoto Mine in Namibia is expected to
produce between 190,000 and 210,000 ounces of gold in 2023 at cash
operating costs of between $590 and $650 per ounce and all-in
sustaining costs of between $1,080 and $1,140 per ounce. For 2023,
Otjikoto is expected to process a total of 3.4 million tonnes of
ore at an average grade of 1.87 g/t gold with a process gold
recovery of 98.0%. Otjikoto’s gold production is still expected to
be weighted 60% towards the second half of 2023 due to the timing
of high grade ore mining from the Otjikoto pit and increased ore
volumes from the Wolfshag underground mine.
The Otjikoto Mine has benefited from lower fuel
costs and a weaker Namibian dollar over the first half of 2023. The
Company will continue to monitor the Namibian dollar and actual
versus budget fuel prices in the third quarter of 2023 and if lower
pricing continues to be observed, it will consider whether any
revision to the Otjikoto Mine's full-year cash operating costs and
all-in sustaining costs guidance is required at that time.
Fekola Complex Regional Development and
Exploration
Development
The Fekola Complex is comprised of the Fekola
Mine (Medinandi permit hosting the Fekola and Cardinal zones) and
Fekola Regional (Anaconda Area (Bantako, Menankoto, and Bakolobi
permits), and the Dandoko permit).
In the second quarter of 2023 and the first half
of 2023, the Company invested $15 million and $30 million,
respectively, in the development of Fekola Regional (Anaconda Area)
saprolite mining including road construction, mine infrastructure,
and mining equipment. For 2023, the Company has budgeted a total of
$63 million for Fekola Regional development. The construction
mobile equipment fleet is now in operation, the haul road from
Bantako North to Fekola is operational and construction of the haul
roads and mining infrastructure (warehouse, workshop, fuel depot,
and offices) is on schedule; however, as discussed above (see
Operations-Fekola Mine, Mali), receipt of an exploitation license
for the Bantako North permit area remains outstanding.
Preliminary results of a Fekola Complex
optimization study, coupled with 2022 and 2023 exploration drilling
results, indicate that there is a significant opportunity to
increase gold production and resource utilization with the addition
of oxide processing capacity. The Company is progressing an
engineering study of a Fekola Regional stand-alone mill and oxide
processing facilities, which are expected to be located on the
Anaconda Area. Construction of a stand-alone oxide mill would
constitute Phase II of the Fekola Regional Development Plan. The
engineering study will be based on processing 4 Mtpa of saprolite
and transitional (oxide) resources.
On June 21, 2023, the Company announced an
updated Mineral Resource estimate for the Anaconda Area, located
approximately 20 km from the Fekola Mine in Mali. The June 2023
Mineral Resource estimate included a significantly increased
Mineral Resource estimate for the Anaconda Area, comprised of the
Menankoto permit, the Bantako North permit and the Bakolobi permit.
The updated Mineral Resource estimate includes a significant
increase in the oxide Mineral Resources, and an initial sulphide
Indicated Mineral Resource estimate. The June 2023 Mineral Resource
estimate includes Indicated Mineral Resource estimate of 57,000,000
tonnes at 1.11 g/t gold for 2,030,000 ounces of gold, and Inferred
Mineral Resource estimate of 46,600,000 tonnes at 1.33 g/t gold for
2,000,000 ounces of gold, constrained within a conceptual pit run
at US$1,800 per ounce gold.
To allow for incorporation of this updated
Mineral Resource estimate into the engineering study, results of
the Fekola Complex optimization study are expected in the fourth
quarter of 2023. In addition, Fekola Complex optimization work
continues to maximize project value from all the various oxide and
sulphide material sources including the Fekola Pit, Fekola
Underground, Cardinal Pit, and the Bantako North, Menankoto,
Bakolobi and Dandoko permits.
Exploration
B2Gold is executing another year of extensive
exploration in 2023 with an increased budget of approximately $84
million (original budget of $64 million). A significant focus will
be in proximity to its operating mines in Mali, Namibia and the
Philippines, as well as $20 million of spending on both infill and
generative exploration at the recently acquired Back River Gold
District. Ongoing exploration will continue to advance B2Gold's
early stage projects in Finland and Cote d’Ivoire. Target
generation and pursuing new opportunities in prospective gold
regions in Africa, Canada, South America, the Philippines and
Central Asia continue. This generative initiative could include
equity placements and new joint ventures with junior companies,
similar to B2Gold's 2023 investments in Snowline and its Rogue
project in the Yukon, Canada, and its 2022 investment in Matador
Mining Ltd. and its Cape Ray Gold project in Newfoundland,
Canada.
Outlook
B2Gold expects to continue its strong
operational performance in 2023 with total gold production forecast
to be between 1,000,000 and 1,080,000 ounces (including 60,000 to
70,000 attributable ounces from Calibre). The Company's total
consolidated cash operating costs for the year (including estimated
attributable results for Calibre) are forecast to be between $670
and $730 per ounce and total consolidated all-in sustaining
(including estimated attributable results for Calibre) are forecast
to be between $1,195 and $1,255 per ounce.
Due to the Company's strong net positive cash
position and available liquidity, strong operating results and cash
flows, B2Gold’s quarterly dividend rate is expected to be
maintained at $0.04 per common share (or an annualized rate of
$0.16 per common share), which represents one of the highest
dividend yields in the gold sector.
After a very successful year for exploration in
2022, B2Gold is conducting an aggressive exploration campaign in
2023 with a budget of approximately $84 million with the vast
majority allocated to growth exploration expenditures to support
the next phase of organic growth across the portfolio.
The closing of the acquisition of Sabina and the
Goose Project adds a high grade, fully permitted, construction
stage gold project in Nunavut, Canada to the Company's portfolio
and enhances its operational and geographic diversification by
combining B2Gold’s stable production base with a high grade,
advanced development asset in a Tier-1 mining jurisdiction. The
Goose Project has an estimated two-year construction period with
first gold production expected in the first quarter of 2025. In
addition, B2Gold has acquired access to significant untapped
exploration potential across an 80 km belt.
The Company’s ongoing strategy is to continue to
maximize profitable production from its mines, further advance its
pipeline of remaining development and exploration projects,
evaluate new exploration, development and production opportunities
and continue to pay an industry leading dividend yield.
Second Quarter 2023 Financial Results - Conference Call
Details
B2Gold executives will host a conference call to
discuss the results on Thursday, August 3, 2023, at 10:00 am PT /
1:00 pm ET. You may access the call by registering at the
participant conference link by clicking here prior to the scheduled
start time. Once you have registered, you will be sent an email
with a unique PIN which will connect you to the call at +1 (431)
341-4089 / +1 (855) 513-1368 (Canada) or toll free at +1 (844)
543-0451. You may also listen to the call via webcast by clicking
here.
About B2Gold
B2Gold is a low-cost international senior gold
producer headquartered in Vancouver, Canada. Founded in 2007,
today, B2Gold has operating gold mines in Mali, Namibia and the
Philippines and numerous exploration and development projects in
various countries including Canada, Mali, Colombia, Finland and
Uzbekistan. B2Gold forecasts total consolidated gold production of
between 1,000,000 and 1,080,000 ounces in 2023.
Qualified Persons
Bill Lytle, Senior Vice President and Chief
Operating Officer, a qualified person under NI 43-101, has approved
the scientific and technical information related to operations
matters contained in this news release.
Brian Scott, P. Geo., Vice President, Geology
& Technical Services, a qualified person under NI 43-101, has
approved the scientific and technical information related to
exploration and mineral resource matters contained in this news
release.
ON BEHALF OF B2GOLD CORP.
“Clive T.
Johnson” President and Chief Executive
Officer
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 16, 2023 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; 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:
projected gold production, cash operating costs and AISC on a
consolidated and mine by mine basis in 2023, total consolidated
gold production of between 1,000,000 and 1,080,000 ounces in 2023,
with cash operating costs of between $670 and $730 per ounce and
all-in sustaining costs of between $1,195 and $1,255 per ounce;;
the potential for Fekola Regional (Anaconda Area) to provide
saprolite material to feed the Fekola mill in 2024; the timing and
results of a study for the Fekola Regional (Anaconda Area) to
review the project economics of a stand-alone oxide mill; the
potential for the Fekola complex to produce 800,000 ounces of gold
per year; the Goose Project capital cost being approximately $800
million, and total capital expenditures including the accelerated
underground development costs being $890 million; the construction
of the Goose Project and first gold production in the first quarter
of 2025; Otjikoto's gold production being weighted approximately
60% to the second half of 2023; 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; and B2Gold's attributable share of Calibre’s
production. All statements in this news release that address events
or developments that we expect to occur in the future are
forward-looking statements. Forward-looking statements are
statements that are not historical facts and are generally,
although not always, identified by words such as "expect", "plan",
"anticipate", "project", "target", "potential", "schedule",
"forecast", "budget", "estimate", "intend" or "believe" and similar
expressions or their negative connotations, or that events or
conditions "will", "would", "may", "could", "should" or "might"
occur. All such forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made.
Forward-looking statements necessarily involve
assumptions, risks and uncertainties, certain of which are beyond
B2Gold's control, including risks associated with or related to:
the volatility of metal prices and B2Gold's common shares; changes
in tax laws; the dangers inherent in exploration, development and
mining activities; the uncertainty of reserve and resource
estimates; not achieving production, cost or other estimates;
actual production, development plans and costs differing materially
from the estimates in B2Gold's feasibility and other studies; the
ability to obtain and maintain any necessary permits, consents or
authorizations required for mining activities; environmental
regulations or hazards and compliance with complex regulations
associated with mining activities; climate change and climate
change regulations; the ability to replace mineral reserves and
identify acquisition opportunities; the unknown liabilities of
companies acquired by B2Gold; the ability to successfully integrate
new acquisitions; fluctuations in exchange rates; the availability
of financing; financing and debt activities, including potential
restrictions imposed on B2Gold's operations as a result thereof and
the ability to generate sufficient cash flows; operations in
foreign and developing countries and the compliance with foreign
laws, including those associated with operations in Mali, Namibia,
the Philippines and Colombia and including risks related to changes
in foreign laws and changing policies related to mining and local
ownership requirements or resource nationalization generally;
remote operations and the availability of adequate infrastructure;
fluctuations in price and availability of energy and other inputs
necessary for mining operations; shortages or cost increases in
necessary equipment, supplies and labour; regulatory, political and
country risks, including local instability or acts of terrorism and
the effects thereof; the reliance upon contractors, third parties
and joint venture partners; the lack of sole decision-making
authority related to Filminera Resources Corporation, which owns
the Masbate Project; challenges to title or surface rights; the
dependence on key personnel and the ability to attract and retain
skilled personnel; the risk of an uninsurable or uninsured loss;
adverse climate and weather conditions; litigation risk;
competition with other mining companies; community support for
B2Gold's operations, including risks related to strikes and the
halting of such operations from time to time; conflicts with small
scale miners; failures of information systems or information
security threats; the 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: 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 MeasuresThis 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 Statement Regarding Mineral Reserve
and Resource EstimatesThe disclosure in this news release was
prepared in accordance with Canadian National Instrument 43-101,
which differs significantly from the requirements of the United
States Securities and Exchange Commission ("SEC"), and resource and
reserve information contained or referenced in this news release
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. Further,
estimates of inferred mineral resources have significant geological
uncertainty and it should not be assumed that all or any part of an
inferred mineral resource will be converted to the measured or
indicated categories. Mineral resources that are not mineral
reserves do not meet the threshold for reserve modifying factors,
such as estimated economic viability, that would allow for
conversion to mineral reserves.
B2GOLD CORP.CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE
AND SIX MONTHS ENDED JUNE 30(Expressed in thousands of
United States dollars, except per share amounts)(Unaudited)
| |
|
For the threemonths
endedJune 30, 2023 |
|
|
For the threemonths endedJune 30, 2022 |
|
|
For the sixmonths
endedJune 30, 2023 |
|
|
For the sixmonths endedJune 30, 2022 |
|
| |
|
|
|
|
|
|
|
|
|
Gold revenue |
|
$ |
470,854 |
|
|
$ |
381,985 |
|
|
$ |
944,410 |
|
|
$ |
747,568 |
|
| |
|
|
|
|
|
|
|
|
| Cost of
sales |
|
|
|
|
|
|
|
|
|
Production costs |
|
|
(152,762 |
) |
|
|
(158,303 |
) |
|
|
(280,366 |
) |
|
|
(281,263 |
) |
|
Depreciation and depletion |
|
|
(94,662 |
) |
|
|
(81,874 |
) |
|
|
(191,820 |
) |
|
|
(159,137 |
) |
|
Royalties and production taxes |
|
|
(33,111 |
) |
|
|
(23,901 |
) |
|
|
(68,272 |
) |
|
|
(49,591 |
) |
| Total cost of
sales |
|
|
(280,535 |
) |
|
|
(264,078 |
) |
|
|
(540,458 |
) |
|
|
(489,991 |
) |
| |
|
|
|
|
|
|
|
|
| Gross
profit |
|
|
190,319 |
|
|
|
117,907 |
|
|
|
403,952 |
|
|
|
257,577 |
|
| |
|
|
|
|
|
|
|
|
| General and
administrative |
|
|
(13,921 |
) |
|
|
(12,549 |
) |
|
|
(28,106 |
) |
|
|
(23,377 |
) |
| Share-based payments |
|
|
(4,591 |
) |
|
|
(4,041 |
) |
|
|
(11,445 |
) |
|
|
(12,445 |
) |
| (Impairment) reversal of
impairment of long-lived assets |
|
|
(4,885 |
) |
|
|
909 |
|
|
|
(4,885 |
) |
|
|
909 |
|
| Write-down of mineral property
interests |
|
|
— |
|
|
|
(3,158 |
) |
|
|
(16,457 |
) |
|
|
(3,158 |
) |
| Community relations |
|
|
(1,722 |
) |
|
|
(453 |
) |
|
|
(2,725 |
) |
|
|
(1,072 |
) |
| Foreign exchange losses |
|
|
(2,253 |
) |
|
|
(6,001 |
) |
|
|
(2,849 |
) |
|
|
(8,457 |
) |
| Share of net income of
associate |
|
|
7,009 |
|
|
|
4,139 |
|
|
|
11,988 |
|
|
|
6,911 |
|
| Other (expenses) income |
|
|
(10,817 |
) |
|
|
1,062 |
|
|
|
(14,415 |
) |
|
|
(970 |
) |
| Operating
income |
|
|
159,139 |
|
|
|
97,815 |
|
|
|
335,058 |
|
|
|
215,918 |
|
| |
|
|
|
|
|
|
|
|
| Interest and financing
expense |
|
|
(2,916 |
) |
|
|
(2,691 |
) |
|
|
(5,842 |
) |
|
|
(5,274 |
) |
| Interest income |
|
|
6,035 |
|
|
|
2,506 |
|
|
|
11,854 |
|
|
|
4,628 |
|
| Gains on derivative
instruments |
|
|
782 |
|
|
|
7,749 |
|
|
|
425 |
|
|
|
27,048 |
|
| Other (expense) income |
|
|
(3,618 |
) |
|
|
426 |
|
|
|
(5,218 |
) |
|
|
6,060 |
|
| Income from operations
before taxes |
|
|
159,422 |
|
|
|
105,805 |
|
|
|
336,277 |
|
|
|
248,380 |
|
| |
|
|
|
|
|
|
|
|
| Current income tax,
withholding and other taxes |
|
|
(71,205 |
) |
|
|
(60,141 |
) |
|
|
(147,945 |
) |
|
|
(107,795 |
) |
| Deferred income tax recovery
(expense) |
|
|
3,633 |
|
|
|
(4,978 |
) |
|
|
5,422 |
|
|
|
(9,096 |
) |
| Net income for the
period |
|
$ |
91,850 |
|
|
$ |
40,686 |
|
|
$ |
193,754 |
|
|
$ |
131,489 |
|
| |
|
|
|
|
|
|
|
|
| Attributable
to: |
|
|
|
|
|
|
|
|
| Shareholders of the
Company |
|
$ |
80,418 |
|
|
$ |
37,804 |
|
|
$ |
166,391 |
|
|
$ |
118,527 |
|
| Non-controlling interests |
|
|
11,432 |
|
|
|
2,882 |
|
|
|
27,363 |
|
|
|
12,962 |
|
| Net income for the
period |
|
$ |
91,850 |
|
|
$ |
40,686 |
|
|
$ |
193,754 |
|
|
$ |
131,489 |
|
| |
|
|
|
|
|
|
|
|
| Earnings per
share (attributable to shareholders of the Company) |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.04 |
|
|
$ |
0.14 |
|
|
$ |
0.11 |
|
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.04 |
|
|
$ |
0.14 |
|
|
$ |
0.11 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average
number of common shares outstanding (in
thousands) |
|
|
|
|
|
|
|
|
|
Basic |
|
|
1,251,832 |
|
|
|
1,061,270 |
|
|
|
1,164,104 |
|
|
|
1,059,060 |
|
|
Diluted |
|
|
1,257,804 |
|
|
|
1,068,276 |
|
|
|
1,169,853 |
|
|
|
1,065,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B2GOLD CORP.CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE THREE
AND SIX MONTHS ENDED JUNE 30(Expressed in thousands of
United States dollars)(Unaudited)
| |
|
For the threemonths
endedJune 30, 2023 |
|
|
For the threemonths endedJune 30, 2022 |
|
|
For the sixmonths
endedJune 30, 2023 |
|
|
For the sixmonths endedJune 30, 2022 |
|
| Operating
activities |
|
|
|
|
|
|
|
|
|
Net income for the period |
|
$ |
91,850 |
|
|
$ |
40,686 |
|
|
$ |
193,754 |
|
|
$ |
131,489 |
|
|
Mine restoration provisions settled |
|
|
(579 |
) |
|
|
— |
|
|
|
(579 |
) |
|
|
— |
|
|
Non-cash charges, net |
|
|
107,409 |
|
|
|
98,385 |
|
|
|
228,941 |
|
|
|
171,345 |
|
|
Changes in non-cash working capital |
|
|
15,052 |
|
|
|
(8,736 |
) |
|
|
21,278 |
|
|
|
(53,471 |
) |
|
Changes in long-term value added tax receivables |
|
|
(18,749 |
) |
|
|
(5,456 |
) |
|
|
(44,588 |
) |
|
|
(17,174 |
) |
|
Cash provided by operating activities |
|
|
194,983 |
|
|
|
124,879 |
|
|
|
398,806 |
|
|
|
232,189 |
|
| |
|
|
|
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
|
|
|
|
Extinguishment of gold stream and construction financing
obligations |
|
|
(111,819 |
) |
|
|
— |
|
|
|
(111,819 |
) |
|
|
— |
|
|
Repayment of equipment loan facilities |
|
|
(2,887 |
) |
|
|
(4,705 |
) |
|
|
(6,465 |
) |
|
|
(11,495 |
) |
|
Interest and commitment fees paid |
|
|
(1,118 |
) |
|
|
(1,096 |
) |
|
|
(2,120 |
) |
|
|
(2,324 |
) |
|
Cash proceeds from stock option exercises |
|
|
3,464 |
|
|
|
8,600 |
|
|
|
5,908 |
|
|
|
12,631 |
|
|
Dividends paid |
|
|
(51,730 |
) |
|
|
(42,512 |
) |
|
|
(94,706 |
) |
|
|
(84,746 |
) |
|
Principal payments on lease arrangements |
|
|
(2,046 |
) |
|
|
(2,448 |
) |
|
|
(3,489 |
) |
|
|
(3,667 |
) |
|
Distributions to non-controlling interests |
|
|
(2,198 |
) |
|
|
(3,158 |
) |
|
|
(4,280 |
) |
|
|
(4,180 |
) |
|
Revolving credit facility transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,401 |
) |
|
Other |
|
|
770 |
|
|
|
892 |
|
|
|
1,587 |
|
|
|
730 |
|
|
Cash used by financing activities |
|
|
(167,564 |
) |
|
|
(44,427 |
) |
|
|
(215,384 |
) |
|
|
(95,452 |
) |
| |
|
|
|
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
|
|
|
|
Expenditures on mining interests: |
|
|
|
|
|
|
|
|
|
Fekola Mine |
|
|
(74,151 |
) |
|
|
(20,198 |
) |
|
|
(127,946 |
) |
|
|
(48,426 |
) |
|
Masbate Mine |
|
|
(6,098 |
) |
|
|
(14,057 |
) |
|
|
(15,051 |
) |
|
|
(19,750 |
) |
|
Otjikoto Mine |
|
|
(15,630 |
) |
|
|
(23,152 |
) |
|
|
(32,976 |
) |
|
|
(39,283 |
) |
|
Goose Project |
|
|
(68,612 |
) |
|
|
— |
|
|
|
(68,612 |
) |
|
|
— |
|
|
Fekola Regional, pre-development |
|
|
(15,035 |
) |
|
|
(6,717 |
) |
|
|
(29,810 |
) |
|
|
(6,929 |
) |
|
Gramalote Project |
|
|
(1,204 |
) |
|
|
(4,130 |
) |
|
|
(1,714 |
) |
|
|
(8,537 |
) |
|
Other exploration and development |
|
|
(24,552 |
) |
|
|
(15,982 |
) |
|
|
(40,543 |
) |
|
|
(29,236 |
) |
|
Cash acquired on acquisition of Sabina Gold & Silver Corp. |
|
|
38,083 |
|
|
|
— |
|
|
|
38,083 |
|
|
|
— |
|
|
Transaction costs paid on acquisition of Sabina Gold & Silver
Corp. |
|
|
(6,672 |
) |
|
|
— |
|
|
|
(6,672 |
) |
|
|
— |
|
|
Purchase of long-term investment |
|
|
(16,764 |
) |
|
|
— |
|
|
|
(31,880 |
) |
|
|
— |
|
|
Cash paid for purchase of non-controlling interest |
|
|
— |
|
|
|
— |
|
|
|
(6,704 |
) |
|
|
— |
|
|
Deferred consideration |
|
|
— |
|
|
|
— |
|
|
|
3,850 |
|
|
|
— |
|
|
Cash paid on acquisition of mineral property |
|
|
— |
|
|
|
(48,258 |
) |
|
|
— |
|
|
|
(48,258 |
) |
|
Cash paid on exercise of mineral property option |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,737 |
) |
|
Funding of reclamation accounts |
|
|
(1,351 |
) |
|
|
(1,917 |
) |
|
|
(2,640 |
) |
|
|
(4,098 |
) |
|
Other |
|
|
101 |
|
|
|
(358 |
) |
|
|
(358 |
) |
|
|
(358 |
) |
|
Cash used by investing activities |
|
|
(191,885 |
) |
|
|
(134,769 |
) |
|
|
(322,973 |
) |
|
|
(212,612 |
) |
| |
|
|
|
|
|
|
|
|
| Decrease in cash and
cash equivalents |
|
|
(164,466 |
) |
|
|
(54,317 |
) |
|
|
(139,551 |
) |
|
|
(75,875 |
) |
| |
|
|
|
|
|
|
|
|
| Effect of exchange rate
changes on cash and cash equivalents |
|
|
(3,067 |
) |
|
|
(7,751 |
) |
|
|
(6,188 |
) |
|
|
(10,432 |
) |
| Cash and cash
equivalents, beginning of period |
|
|
673,740 |
|
|
|
648,760 |
|
|
|
651,946 |
|
|
|
672,999 |
|
| Cash and cash
equivalents, end of period |
|
$ |
506,207 |
|
|
$ |
586,692 |
|
|
$ |
506,207 |
|
|
$ |
586,692 |
|
| |
|
|
|
|
|
|
|
|
B2GOLD CORP.CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS(Expressed in thousands of
United States dollars)(Unaudited)
| |
|
As at June 30,2023 |
|
|
As at December 31,2022 |
|
| Assets |
|
|
|
|
| Current |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
506,207 |
|
|
$ |
651,946 |
|
|
Accounts receivable, prepaids and other |
|
|
31,716 |
|
|
|
28,811 |
|
|
Deferred consideration receivable |
|
|
— |
|
|
|
3,850 |
|
|
Value-added and other tax receivables |
|
|
12,165 |
|
|
|
18,533 |
|
|
Inventories |
|
|
339,095 |
|
|
|
332,031 |
|
| |
|
|
889,183 |
|
|
|
1,035,171 |
|
| |
|
|
|
|
| Long-term
investments |
|
|
67,036 |
|
|
|
31,865 |
|
| Value-added tax
receivables |
|
|
158,084 |
|
|
|
121,323 |
|
| Mining
interests |
|
|
|
|
|
Owned by subsidiaries and joint operations |
|
|
3,566,960 |
|
|
|
2,274,730 |
|
|
Investments in associates |
|
|
127,152 |
|
|
|
120,049 |
|
| Long-term
stockpile |
|
|
53,581 |
|
|
|
48,882 |
|
| Other
assets |
|
|
64,926 |
|
|
|
49,213 |
|
| Deferred income
taxes |
|
|
3,963 |
|
|
|
— |
|
| |
|
$ |
4,930,885 |
|
|
$ |
3,681,233 |
|
|
Liabilities |
|
|
|
|
| Current |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
153,318 |
|
|
$ |
114,791 |
|
|
Current income and other taxes payable |
|
|
128,875 |
|
|
|
95,623 |
|
|
Current portion of long-term debt |
|
|
16,972 |
|
|
|
15,519 |
|
|
Current portion of mine restoration provisions |
|
|
4,966 |
|
|
|
5,545 |
|
|
Other current liabilities |
|
|
15,072 |
|
|
|
2,138 |
|
| |
|
|
319,203 |
|
|
|
233,616 |
|
| |
|
|
|
|
| Long-term
debt |
|
|
38,625 |
|
|
|
41,709 |
|
| Gold stream
obligation |
|
|
128,400 |
|
|
|
— |
|
| Mine restoration
provisions |
|
|
100,198 |
|
|
|
95,568 |
|
| Deferred income
taxes |
|
|
181,056 |
|
|
|
182,515 |
|
| Employee benefits
obligation |
|
|
15,235 |
|
|
|
8,121 |
|
| Other long-term
liabilities |
|
|
9,130 |
|
|
|
7,915 |
|
| |
|
|
791,847 |
|
|
|
569,444 |
|
| Equity |
|
|
|
|
| Shareholders’
equity |
|
|
|
|
|
Share capital |
|
|
3,432,229 |
|
|
|
2,487,624 |
|
|
Contributed surplus |
|
|
78,338 |
|
|
|
78,232 |
|
|
Accumulated other comprehensive loss |
|
|
(142,824 |
) |
|
|
(145,869 |
) |
|
Retained earnings |
|
|
654,265 |
|
|
|
588,139 |
|
| |
|
|
4,022,008 |
|
|
|
3,008,126 |
|
| Non-controlling
interests |
|
|
117,030 |
|
|
|
103,663 |
|
| |
|
|
4,139,038 |
|
|
|
3,111,789 |
|
| |
|
$ |
4,930,885 |
|
|
$ |
3,681,233 |
|
| |
|
|
|
|
NON-IFRS MEASURES
Cash operating costs per gold ounce sold
and total cash costs per gold ounce sold
‘‘Cash operating costs per gold ounce’’ and
“total cash costs per gold ounce” are common financial performance
measures in the gold mining industry but, as non-IFRS measures,
they do not have a standardized meaning under IFRS and therefore
may not be comparable to similar measures presented by other
issuers. Management believes that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use
this information to evaluate our performance and ability to
generate cash flow. Accordingly, these measures are 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. The measures, along with sales, are
considered to be a key indicator of the Company’s ability to
generate earnings and cash flow from its mining operations.
Cash cost figures are calculated on a sales
basis in accordance with a standard developed by The Gold
Institute, which was a worldwide association of suppliers of gold
and gold products and included leading North American gold
producers. The Gold Institute ceased operations in 2002, but the
standard is the accepted standard of reporting cash cost of
production in North America. Adoption of the standard is voluntary
and the cost measures presented may not be comparable to other
similarly titled measures of other companies. Other companies may
calculate these measures differently. Cash operating costs and
total cash costs per gold ounce sold are derived from amounts
included in the statement of operations and include mine site
operating costs such as mining, processing, smelting, refining,
transportation costs, royalties and production taxes, less silver
by-product credits. The tables below show a reconciliation of cash
operating costs per gold ounce sold and total cash costs per gold
ounce sold to production costs as extracted from the unaudited
condensed interim consolidated financial statements on a
consolidated and a mine-by-mine basis:
| |
For the three months ended June 30, 2023 |
|
|
Fekola Mine |
Masbate Mine |
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
79,245 |
48,170 |
25,347 |
152,762 |
17,815 |
170,577 |
| Royalties and production
taxes |
23,686 |
6,285 |
3,140 |
33,111 |
1,078 |
34,189 |
| |
|
|
|
|
|
|
| Total cash costs |
102,931 |
54,455 |
28,487 |
185,873 |
18,893 |
204,766 |
| |
|
|
|
|
|
|
| Gold sold (ounces) |
142,850 |
56,700 |
39,550 |
239,100 |
16,797 |
255,897 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce sold) |
555 |
850 |
641 |
639 |
1,061 |
667 |
| |
|
|
|
|
|
|
| Total cash costs per ounce ($/
gold ounce sold) |
721 |
960 |
720 |
777 |
1,125 |
800 |
| |
For the three months ended June 30, 2022 |
|
|
Fekola Mine |
Masbate Mine |
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
86,258 |
40,690 |
31,355 |
158,303 |
14,695 |
172,998 |
| Royalties and production
taxes |
16,475 |
5,104 |
2,322 |
23,901 |
1,159 |
25,060 |
| |
|
|
|
|
|
|
| Total cash costs |
102,733 |
45,794 |
33,677 |
182,204 |
15,854 |
198,058 |
| |
|
|
|
|
|
|
| Gold sold (ounces) |
121,250 |
53,250 |
30,800 |
205,300 |
14,829 |
220,129 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce sold) |
711 |
764 |
1,018 |
771 |
991 |
786 |
| |
|
|
|
|
|
|
| Total cash costs per ounce ($/
gold ounce sold) |
847 |
860 |
1,093 |
888 |
1,069 |
900 |
| |
For the six months ended June 30, 2023 |
|
|
Fekola Mine |
Masbate Mine |
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
156,906 |
73,163 |
50,297 |
280,366 |
33,580 |
313,946 |
| Royalties and production
taxes |
50,352 |
10,698 |
7,222 |
68,272 |
2,332 |
70,604 |
| |
|
|
|
|
|
|
| Total cash costs |
207,258 |
83,861 |
57,519 |
348,638 |
35,912 |
384,550 |
| |
|
|
|
|
|
|
| Gold sold (ounces) |
307,900 |
86,350 |
94,000 |
488,250 |
32,939 |
521,189 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce sold) |
510 |
847 |
535 |
574 |
1,019 |
602 |
| |
|
|
|
|
|
|
| Total cash costs per ounce ($/
gold ounce sold) |
673 |
971 |
612 |
714 |
1,090 |
738 |
| |
For the six months ended June 30, 2022 |
|
|
Fekola Mine |
Masbate Mine |
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
147,668 |
75,454 |
58,141 |
281,263 |
28,289 |
309,552 |
| Royalties and production
taxes |
32,947 |
10,966 |
5,678 |
49,591 |
2,097 |
51,688 |
| |
|
|
|
|
|
|
| Total cash costs |
180,615 |
86,420 |
63,819 |
330,854 |
30,386 |
361,240 |
| |
|
|
|
|
|
|
| Gold sold (ounces) |
226,650 |
97,550 |
76,200 |
400,400 |
27,818 |
428,218 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce sold) |
652 |
773 |
763 |
702 |
1,017 |
723 |
| |
|
|
|
|
|
|
| Total cash costs per ounce ($/
gold ounce sold) |
797 |
886 |
838 |
826 |
1,092 |
844 |
| |
|
|
|
|
|
|
Cash operating costs per gold ounce
produced
In addition to cash operating costs on a per
gold ounce sold basis, the Company also presents cash operating
costs on a per gold ounce produced basis. Cash operating costs per
gold ounce produced is derived from amounts included in the
statement of operations and include mine site operating costs such
as mining, processing, smelting, refining, transportation costs,
less silver by-product credits. The tables below show a
reconciliation of cash operating costs per gold ounce produced to
production costs as extracted from the unaudited condensed interim
consolidated financial statements on a consolidated and a
mine-by-mine basis:
| |
For the three months ended June 30, 2023 |
|
|
Fekola Mine |
Masbate Mine |
|
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Production costs |
79,245 |
48,170 |
|
25,347 |
152,762 |
|
17,815 |
170,577 |
|
| Inventory sales
adjustment |
2,698 |
(7,757 |
) |
1,587 |
(3,472 |
) |
— |
(3,472 |
) |
| |
|
|
|
|
|
|
| Cash operating costs |
81,943 |
40,413 |
|
26,934 |
149,290 |
|
17,815 |
167,105 |
|
| |
|
|
|
|
|
|
| Gold produced (ounces) |
152,427 |
49,478 |
|
44,056 |
245,961 |
|
16,740 |
262,701 |
|
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce produced) |
538 |
817 |
|
611 |
607 |
|
1,064 |
636 |
|
| |
For the three months ended June 30, 2022 |
|
|
Fekola Mine |
|
Masbate Mine |
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
| |
$ |
|
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
86,258 |
|
40,690 |
31,355 |
158,303 |
14,695 |
172,998 |
| Inventory sales
adjustment |
(7,670 |
) |
4,985 |
4,325 |
1,640 |
— |
1,640 |
| |
|
|
|
|
|
|
| Cash operating costs |
78,588 |
|
45,675 |
35,680 |
159,943 |
14,695 |
174,638 |
| |
|
|
|
|
|
|
| Gold produced (ounces) |
123,066 |
|
54,375 |
31,417 |
208,858 |
14,765 |
223,623 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce produced) |
639 |
|
840 |
1,136 |
766 |
995 |
781 |
| |
For the six months ended June 30, 2023 |
|
|
Fekola Mine |
Masbate Mine |
Otjikoto Mine |
|
Total |
Calibre equity investment |
Grand Total |
| |
$ |
$ |
$ |
|
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
156,906 |
73,163 |
50,297 |
|
280,366 |
33,580 |
313,946 |
| Inventory sales
adjustment |
5,216 |
8,180 |
(62 |
) |
13,334 |
— |
13,334 |
| |
|
|
|
|
|
|
| Cash operating costs |
162,122 |
81,343 |
50,235 |
|
293,700 |
33,580 |
327,280 |
| |
|
|
|
|
|
|
| Gold produced (ounces) |
318,291 |
95,842 |
82,547 |
|
496,680 |
32,877 |
529,557 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce produced) |
509 |
849 |
609 |
|
591 |
1,021 |
618 |
| |
For the six months ended June 30, 2022 |
|
|
Fekola Mine |
|
Masbate Mine |
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
| |
$ |
|
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
147,668 |
|
75,454 |
58,141 |
281,263 |
28,289 |
309,552 |
| Inventory sales
adjustment |
(5,682 |
) |
12,659 |
4,543 |
11,520 |
— |
11,520 |
| |
|
|
|
|
|
|
| Cash operating costs |
141,986 |
|
88,113 |
62,684 |
292,783 |
28,289 |
321,072 |
| |
|
|
|
|
|
|
| Gold produced (ounces) |
224,714 |
|
114,139 |
66,478 |
405,331 |
27,657 |
432,988 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce produced) |
632 |
|
772 |
943 |
722 |
1,023 |
742 |
| |
|
|
|
|
|
|
|
All-in sustaining costs per gold
ounce
In June 2013, the World Gold Council, a
non-regulatory association of the world’s leading gold mining
companies established to promote the use of gold to industry,
consumers and investors, provided guidance for the calculation of
the measure “all-in sustaining costs per gold ounce”, but as a
non-IFRS measure, it does not have a standardized meaning under
IFRS and therefore may not be comparable to similar measures
presented by other issuers. The original World Gold Council
standard became effective January 1, 2014 with further updates
announced on November 16, 2018 which were effective starting
January 1, 2019.
Management believes that the all-in sustaining
costs per gold ounce measure provides additional insight into the
costs of producing gold by capturing all of the expenditures
required for the discovery, development and sustaining of gold
production and allows the Company to assess its ability to support
capital expenditures to sustain future production from the
generation of operating cash flows. Management believes that, in
addition to conventional measures prepared in accordance with IFRS,
certain investors use this information to evaluate the Company's
performance and ability to generate cash flow. Accordingly, it 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. Adoption of the
standard is voluntary and the cost measures presented may not be
comparable to other similarly titled measures of other companies.
The Company has applied the principles of the World Gold Council
recommendations and has reported all-in sustaining costs on a sales
basis. Other companies may calculate these measures
differently.
B2Gold defines all-in sustaining costs per ounce
as the sum of cash operating costs, royalties and production taxes,
capital expenditures and exploration costs that are sustaining in
nature, sustaining lease expenditures, corporate general and
administrative costs, share-based payment expenses related to
RSUs/DSUs/PSUs/RPUs, community relations expenditures, reclamation
liability accretion and realized (gains) losses on fuel derivative
contracts, all divided by the total gold ounces sold to arrive at a
per ounce figure.
The tables below show a reconciliation of all-in
sustaining costs per ounce to production costs as extracted from
the unaudited condensed interim consolidated financial statements
on a consolidated and a mine-by-mine basis for the three months
ended June 30, 2023:
| |
For the three months ended June 30, 2023 |
|
|
Fekola Mine |
|
Masbate Mine |
|
Otjikoto Mine |
|
Corporate |
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
|
| Production costs |
79,245 |
|
48,170 |
|
25,347 |
|
— |
152,762 |
|
17,815 |
170,577 |
|
| Royalties and production
taxes |
23,686 |
|
6,285 |
|
3,140 |
|
— |
33,111 |
|
1,078 |
34,189 |
|
| Corporate administration |
2,403 |
|
640 |
|
1,176 |
|
9,836 |
14,055 |
|
574 |
14,629 |
|
| Share-based payments –
RSUs/DSUs/PSUs/RPUs(1) |
— |
|
— |
|
— |
|
3,838 |
3,838 |
|
— |
3,838 |
|
| Community relations |
1,370 |
|
41 |
|
311 |
|
— |
1,722 |
|
— |
1,722 |
|
| Reclamation liability
accretion |
357 |
|
278 |
|
277 |
|
— |
912 |
|
— |
912 |
|
| Realized gains on derivative
contracts |
(688 |
) |
(642 |
) |
(209 |
) |
— |
(1,539 |
) |
— |
(1,539 |
) |
| Sustaining lease
expenditures |
981 |
|
303 |
|
297 |
|
465 |
2,046 |
|
— |
2,046 |
|
| Sustaining capital
expenditures(2) |
59,032 |
|
5,752 |
|
15,630 |
|
— |
80,414 |
|
1,933 |
82,347 |
|
| Sustaining mine
exploration(2) |
— |
|
1,008 |
|
996 |
|
— |
2,004 |
|
— |
2,004 |
|
| |
|
|
|
|
|
|
|
| Total all-in sustaining
costs |
166,386 |
|
61,835 |
|
46,965 |
|
14,139 |
289,325 |
|
21,400 |
310,725 |
|
| |
|
|
|
|
|
|
|
| Gold sold (ounces) |
142,850 |
|
56,700 |
|
39,550 |
|
— |
239,100 |
|
16,797 |
255,897 |
|
| |
|
|
|
|
|
|
|
| All-in sustaining cost per
ounce ($/ gold ounce sold) |
1,165 |
|
1,091 |
|
1,187 |
|
— |
1,210 |
|
1,274 |
1,214 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included as a component of Share-based
payments on the Statement of operations. (2) Refer to Sustaining
capital expenditures and Sustaining mine exploration
reconciliations below.
The table below shows a reconciliation of
sustaining capital expenditures to operating mine capital
expenditures as extracted from the unaudited condensed interim
consolidated financial statements for the three months ended June
30, 2023:
| |
For the three months ended June 30, 2023 |
| |
Fekola Mine |
|
Masbate Mine |
|
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine capital
expenditures |
74,151 |
|
6,098 |
|
15,630 |
95,879 |
|
1,933 |
97,812 |
|
| Road construction |
(2,657 |
) |
— |
|
— |
(2,657 |
) |
— |
(2,657 |
) |
| Fekola underground |
(12,462 |
) |
— |
|
— |
(12,462 |
) |
— |
(12,462 |
) |
| Other |
— |
|
(346 |
) |
— |
(346 |
) |
— |
(346 |
) |
| |
|
|
|
|
|
|
| Sustaining capital
expenditures |
59,032 |
|
5,752 |
|
15,630 |
80,414 |
|
1,933 |
82,347 |
|
| |
|
|
|
|
|
|
|
|
|
|
The table below shows a reconciliation of
sustaining mine exploration to operating mine exploration as
extracted from the unaudited condensed interim consolidated
financial statements for the three months ended June 30, 2023:
| |
For the three months ended June 30, 2023 |
|
|
Fekola Mine |
Masbate Mine |
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Operating mine
exploration |
— |
1,008 |
996 |
2,004 |
— |
2,004 |
| Regional exploration |
— |
— |
— |
— |
— |
— |
| |
|
|
|
|
|
|
| Sustaining mine
exploration |
— |
1,008 |
996 |
2,004 |
— |
2,004 |
| |
|
|
|
|
|
|
The tables below show a reconciliation of all-in
sustaining costs per ounce to production costs as extracted from
the unaudited condensed interim consolidated financial statements
on a consolidated and a mine-by-mine basis for the three months
ended June 30, 2022:
| |
For the three months ended June 30, 2022 |
| |
Fekola Mine |
|
Masbate Mine |
|
Otjikoto Mine |
|
Corporate |
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
|
| Production costs |
86,258 |
|
40,690 |
|
31,355 |
|
— |
158,303 |
|
14,695 |
172,998 |
|
| Royalties and production
taxes |
16,475 |
|
5,104 |
|
2,322 |
|
— |
23,901 |
|
1,159 |
25,060 |
|
| Corporate administration |
2,172 |
|
870 |
|
1,574 |
|
7,933 |
12,549 |
|
1,075 |
13,624 |
|
| Share-based payments –
RSUs/DSUs/PSUs/RPUs(1) |
— |
|
— |
|
— |
|
3,179 |
3,179 |
|
— |
3,179 |
|
| Community relations |
117 |
|
118 |
|
218 |
|
— |
453 |
|
— |
453 |
|
| Reclamation liability
accretion |
224 |
|
227 |
|
165 |
|
— |
616 |
|
— |
616 |
|
| Realized gains on derivative
contracts |
(4,778 |
) |
(4,829 |
) |
(2,076 |
) |
— |
(11,683 |
) |
— |
(11,683 |
) |
| Sustaining lease
expenditures |
192 |
|
315 |
|
1,407 |
|
534 |
2,448 |
|
— |
2,448 |
|
| Sustaining capital
expenditures(2) |
14,101 |
|
13,724 |
|
7,578 |
|
— |
35,403 |
|
— |
35,403 |
|
| Sustaining mine
exploration(2) |
362 |
|
1,378 |
|
679 |
|
— |
2,419 |
|
— |
2,419 |
|
| |
|
|
|
|
|
|
|
| Total all-in sustaining
costs |
115,123 |
|
57,597 |
|
43,222 |
|
11,646 |
227,588 |
|
16,929 |
244,517 |
|
| |
|
|
|
|
|
|
|
| Gold sold (ounces) |
121,250 |
|
53,250 |
|
30,800 |
|
— |
205,300 |
|
14,829 |
220,129 |
|
| |
|
|
|
|
|
|
|
| All-in sustaining cost per
ounce ($/ gold ounce sold) |
949 |
|
1,082 |
|
1,403 |
|
— |
1,109 |
|
1,142 |
1,111 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included as a component of Share-based
payments on the Statement of operations. (2) Refer to Sustaining
capital expenditures and Sustaining mine exploration
reconciliations below
The table below shows a reconciliation of
sustaining capital expenditures to operating mine capital
expenditures as extracted from the unaudited condensed interim
consolidated financial statements for the three months ended June
30, 2022:
| |
For the three months ended June 30, 2022 |
| |
Fekola Mine |
|
Masbate Mine |
|
Otjikoto Mine |
|
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine capital
expenditures |
20,198 |
|
14,057 |
|
23,152 |
|
57,407 |
|
— |
57,407 |
|
| Cardinal mobile equipment |
(2,426 |
) |
— |
|
— |
|
(2,426 |
) |
— |
(2,426 |
) |
| Tailings facility life-of-mine
study |
(3,507 |
) |
— |
|
— |
|
(3,507 |
) |
— |
(3,507 |
) |
| Fekola underground study |
(25 |
) |
— |
|
— |
|
(25 |
) |
— |
(25 |
) |
| Other |
(139 |
) |
— |
|
(362 |
) |
(501 |
) |
— |
(501 |
) |
| Land acquisitions |
— |
|
(333 |
) |
— |
|
(333 |
) |
— |
(333 |
) |
| Underground development |
— |
|
— |
|
(13,196 |
) |
(13,196 |
) |
— |
(13,196 |
) |
| National power grid
connection |
— |
|
— |
|
(2,016 |
) |
(2,016 |
) |
— |
(2,016 |
) |
| |
|
|
|
|
|
|
| Sustaining capital
expenditures |
14,101 |
|
13,724 |
|
7,578 |
|
35,403 |
|
— |
35,403 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
The table below shows a reconciliation of
sustaining mine exploration to operating mine exploration as
extracted from the unaudited condensed interim consolidated
financial statements for the three months ended June 30, 2022:
| |
For the three months ended June 30, 2022 |
|
|
Fekola Mine |
|
Masbate Mine |
Otjikoto Mine |
|
Total |
|
Calibre equity investment |
Grand Total |
|
| |
$ |
|
$ |
$ |
|
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine
exploration |
4,062 |
|
1,378 |
873 |
|
6,313 |
|
— |
6,313 |
|
| Regional exploration |
(3,700 |
) |
— |
(194 |
) |
(3,894 |
) |
— |
(3,894 |
) |
| |
|
|
|
|
|
|
| Sustaining mine
exploration |
362 |
|
1,378 |
679 |
|
2,419 |
|
— |
2,419 |
|
| |
|
|
|
|
|
|
|
|
|
|
The tables below show a reconciliation of all-in
sustaining costs per ounce to production costs as extracted from
the unaudited condensed interim consolidated financial statements
on a consolidated and a mine-by-mine basis for the six months ended
June 30, 2023:
| |
For the six months ended June 30, 2023 |
|
|
Fekola Mine |
|
Masbate Mine |
|
Otjikoto Mine |
|
Corporate |
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
|
| Production costs |
156,906 |
|
73,163 |
|
50,297 |
|
— |
280,366 |
|
33,580 |
313,946 |
|
| Royalties and production
taxes |
50,352 |
|
10,698 |
|
7,222 |
|
— |
68,272 |
|
2,332 |
70,604 |
|
| Corporate administration |
5,364 |
|
1,139 |
|
2,880 |
|
18,857 |
28,240 |
|
1,323 |
29,563 |
|
| Share-based payments –
RSUs/DSUs/PSUs/RPUs(1) |
— |
|
— |
|
— |
|
8,157 |
8,157 |
|
— |
8,157 |
|
| Community relations |
2,044 |
|
99 |
|
582 |
|
— |
2,725 |
|
— |
2,725 |
|
| Reclamation liability
accretion |
738 |
|
569 |
|
571 |
|
— |
1,878 |
|
— |
1,878 |
|
| Realized gains on derivative
contracts |
(1,459 |
) |
(1,814 |
) |
(697 |
) |
— |
(3,970 |
) |
— |
(3,970 |
) |
| Sustaining lease
expenditures |
1,045 |
|
610 |
|
920 |
|
914 |
3,489 |
|
— |
3,489 |
|
| Sustaining capital
expenditures(2) |
108,808 |
|
14,528 |
|
32,976 |
|
— |
156,312 |
|
3,939 |
160,251 |
|
| Sustaining mine
exploration(2) |
1,706 |
|
1,967 |
|
1,490 |
|
— |
5,163 |
|
— |
5,163 |
|
| |
|
|
|
|
|
|
|
| Total all-in sustaining
costs |
325,504 |
|
100,959 |
|
96,241 |
|
27,928 |
550,632 |
|
41,174 |
591,806 |
|
| |
|
|
|
|
|
|
|
| Gold sold (ounces) |
307,900 |
|
86,350 |
|
94,000 |
|
— |
488,250 |
|
32,939 |
521,189 |
|
| |
|
|
|
|
|
|
|
| All-in sustaining cost per
ounce ($/ gold ounce sold) |
1,057 |
|
1,169 |
|
1,024 |
|
— |
1,128 |
|
1,250 |
1,135 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included as a component of Share-based
payments on the Statement of operations. (2) Refer to Sustaining
capital expenditures and Sustaining mine exploration
reconciliations below.
The table below shows a reconciliation of
sustaining capital expenditures to operating mine capital
expenditures as extracted from the unaudited condensed interim
consolidated financial statements for the six months ended June 30,
2023:
| |
For the six months ended June 30, 2023 |
| |
Fekola Mine |
|
Masbate Mine |
|
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine capital
expenditures |
127,946 |
|
15,051 |
|
32,976 |
175,973 |
|
3,939 |
179,912 |
|
| Road construction |
(5,067 |
) |
— |
|
— |
(5,067 |
) |
— |
(5,067 |
) |
| Fekola underground |
(14,071 |
) |
— |
|
— |
(14,071 |
) |
— |
(14,071 |
) |
| Other |
— |
|
(523 |
) |
— |
(523 |
) |
— |
(523 |
) |
| |
|
|
|
|
|
|
| Sustaining capital
expenditures |
108,808 |
|
14,528 |
|
32,976 |
156,312 |
|
3,939 |
160,251 |
|
| |
|
|
|
|
|
|
|
|
|
|
The table below shows a reconciliation of
sustaining mine exploration to operating mine exploration as
extracted from the unaudited condensed interim consolidated
financial statements for the six months ended June 30, 2023:
| |
For the six months ended June 30, 2023 |
|
|
Fekola Mine |
Masbate Mine |
Otjikoto Mine |
Total |
Calibre equity investment |
Grand Total |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Operating mine
exploration |
1,706 |
1,967 |
1,490 |
5,163 |
— |
5,163 |
| Regional exploration |
— |
— |
— |
— |
— |
— |
| |
|
|
|
|
|
|
| Sustaining mine
exploration |
1,706 |
1,967 |
1,490 |
5,163 |
— |
5,163 |
| |
|
|
|
|
|
|
The tables below show a reconciliation of all-in
sustaining costs per ounce to production costs as extracted from
the unaudited condensed interim consolidated financial statements
on a consolidated and a mine-by-mine basis for the six months ended
June 30, 2022:
| |
For the six months ended June 30, 2022 |
| |
Fekola Mine |
|
Masbate Mine |
|
Otjikoto Mine |
|
Corporate |
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
|
| Production costs |
147,668 |
|
75,454 |
|
58,141 |
|
— |
281,263 |
|
28,289 |
309,552 |
|
| Royalties and production
taxes |
32,947 |
|
10,966 |
|
5,678 |
|
— |
49,591 |
|
2,097 |
51,688 |
|
| Corporate administration |
4,287 |
|
1,228 |
|
2,875 |
|
14,987 |
23,377 |
|
1,546 |
24,923 |
|
| Share-based payments –
RSUs/DSUs/PSUs/RPUs(1) |
— |
|
— |
|
— |
|
6,879 |
6,879 |
|
— |
6,879 |
|
| Community relations |
383 |
|
137 |
|
552 |
|
— |
1,072 |
|
— |
1,072 |
|
| Reclamation liability
accretion |
383 |
|
410 |
|
282 |
|
— |
1,075 |
|
— |
1,075 |
|
| Realized gains on derivative
contracts |
(6,887 |
) |
(7,400 |
) |
(3,298 |
) |
— |
(17,585 |
) |
— |
(17,585 |
) |
| Sustaining lease
expenditures |
385 |
|
637 |
|
1,446 |
|
1,199 |
3,667 |
|
— |
3,667 |
|
| Sustaining capital
expenditures(2) |
35,968 |
|
19,005 |
|
16,245 |
|
— |
71,218 |
|
— |
71,218 |
|
| Sustaining mine
exploration(2) |
3,993 |
|
2,415 |
|
1,157 |
|
— |
7,565 |
|
— |
7,565 |
|
| |
|
|
|
|
|
|
|
| Total all-in sustaining
costs |
219,127 |
|
102,852 |
|
83,078 |
|
23,065 |
428,122 |
|
31,932 |
460,054 |
|
| |
|
|
|
|
|
|
|
| Gold sold (ounces) |
226,650 |
|
97,550 |
|
76,200 |
|
— |
400,400 |
|
27,818 |
428,218 |
|
| |
|
|
|
|
|
|
|
| All-in sustaining cost per
ounce ($/ gold ounce sold) |
967 |
|
1,054 |
|
1,090 |
|
— |
1,069 |
|
1,148 |
1,074 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included as a component of Share-based
payments on the Statement of operations. (2) Refer to Sustaining
capital expenditures and Sustaining mine exploration
reconciliations below
The table below shows a reconciliation of
sustaining capital expenditures to operating mine capital
expenditures as extracted from the unaudited condensed interim
consolidated financial statements for the six months ended June 30,
2022:
| |
For the six months ended June 30, 2022 |
| |
Fekola Mine |
|
Masbate Mine |
|
Otjikoto Mine |
|
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine capital
expenditures |
48,426 |
|
19,750 |
|
39,283 |
|
107,459 |
|
— |
107,459 |
|
| Cardinal mobile equipment |
(7,999 |
) |
— |
|
— |
|
(7,999 |
) |
— |
(7,999 |
) |
| Tailings facility life-of-mine
study |
(3,930 |
) |
— |
|
— |
|
(3,930 |
) |
— |
(3,930 |
) |
| Fekola underground study |
(368 |
) |
— |
|
— |
|
(368 |
) |
— |
(368 |
) |
| Other |
(161 |
) |
— |
|
(362 |
) |
(523 |
) |
— |
(523 |
) |
| Land acquisitions |
— |
|
(745 |
) |
— |
|
(745 |
) |
— |
(745 |
) |
| Underground development |
— |
|
— |
|
(18,930 |
) |
(18,930 |
) |
— |
(18,930 |
) |
| National power grid
connection |
— |
|
— |
|
(3,746 |
) |
(3,746 |
) |
— |
(3,746 |
) |
| |
|
|
|
|
|
|
| Sustaining capital
expenditures |
35,968 |
|
19,005 |
|
16,245 |
|
71,218 |
|
— |
71,218 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
The table below shows a reconciliation of
sustaining mine exploration to operating mine exploration as
extracted from the unaudited condensed interim consolidated
financial statements for the six months ended June 30, 2022:
| |
For the six months ended June 30, 2022 |
| |
Fekola Mine |
|
Masbate Mine |
Otjikoto Mine |
|
Total |
Calibre equity investment |
Grand Total |
|
|
|
$ |
|
$ |
$ |
|
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine
exploration |
10,456 |
|
2,415 |
1,379 |
|
14,250 |
|
— |
14,250 |
|
| Regional exploration |
(6,463 |
) |
— |
(222 |
) |
(6,685 |
) |
— |
(6,685 |
) |
| |
|
|
|
|
|
|
| Sustaining mine
exploration |
3,993 |
|
2,415 |
1,157 |
|
7,565 |
|
— |
7,565 |
|
| |
|
|
|
|
|
|
|
|
|
|
Adjusted net income and adjusted
earnings per share - basic
Adjusted net income and adjusted earnings per
share – basic are non-IFRS measures that do not have a standardized
meaning prescribed by IFRS and therefore may not be comparable to
similar measures presented by other issuers. The Company defines
adjusted net income as net income attributable to shareholders of
the Company adjusted for non-recurring items and also significant
recurring non-cash items. The Company defines adjusted earnings per
share – basic as adjusted net income divided by the basic weighted
number of common shares outstanding.
Management believes that the presentation of
adjusted net income and adjusted earnings per share - basic is
appropriate to provide additional information to investors
regarding items that we do not expect to continue at the same level
in the future or that management does not believe to be a
reflection of the Company's ongoing operating performance.
Management further believes that its presentation of these non-IFRS
financial measures provide information that is useful to investors
because they are important indicators of the strength of our
operations and the performance of our core business. Accordingly,
it is intended to provide additional information and should not be
considered in isolation as a substitute for measures of performance
prepared in accordance with IFRS. Other companies may calculate
this measure differently.
A reconciliation of net income to adjusted net income as
extracted from the unaudited condensed interim consolidated
financial statements is set out in the table below:
| |
Three months ended |
Six months ended |
| |
June 30, |
June 30, |
| |
2023 |
2022 |
2023 |
2022 |
| |
$ |
$ |
$ |
$ |
| |
(000’s) |
(000’s) |
(000’s) |
(000’s) |
| |
|
|
|
|
|
Net income attributable to shareholders of the Company for the
period: |
80,418 |
|
37,804 |
|
166,391 |
|
118,527 |
|
| |
|
|
|
|
| Adjustments for non-recurring
and significant recurring non-cash items: |
|
|
|
|
|
Impairment (reversal) of impairment of long-lived assets |
4,885 |
|
(909 |
) |
4,885 |
|
(909 |
) |
|
Write-down of mineral property interests |
— |
|
3,027 |
|
16,419 |
|
3,027 |
|
|
Unrealized losses (gains) on derivative instruments |
757 |
|
3,934 |
|
3,545 |
|
(9,463 |
) |
|
Office lease termination costs |
— |
|
— |
|
1,946 |
|
— |
|
|
Loan receivable provision |
2,085 |
|
— |
|
2,085 |
|
— |
|
|
Change in fair value of gold stream |
1,100 |
|
— |
|
1,100 |
|
— |
|
|
Dilution gain on investment in Calibre |
— |
|
— |
|
— |
|
(5,458 |
) |
|
Non-cash interest income on deferred consideration receivable |
— |
|
(1,051 |
) |
— |
|
(2,090 |
) |
|
Deferred income tax (recovery) expense |
(3,441 |
) |
2,443 |
|
(4,705 |
) |
6,710 |
|
| |
|
|
|
|
| Adjusted net income
attributable to shareholders of the Company for the
period |
85,804 |
|
45,248 |
|
191,666 |
|
110,344 |
|
| |
|
|
|
|
| Basic weighted average number
of common shares outstanding (in thousands) |
1,251,832 |
|
1,061,270 |
|
1,164,104 |
|
1,059,060 |
|
| |
|
|
|
|
| Adjusted net earnings
attributable to shareholders of the Company per share–basic
($/share) |
0.07 |
|
0.04 |
|
0.16 |
|
0.10 |
|
For more information on B2Gold please visit the Company website at www.b2gold.com or contact:
Michael McDonald
VP, Investor Relations & Corporate Development
+1 604-681-8371
investor@b2gold.com
Cherry De Geer
Director, Corporate Communications
+1 604-681-8371
investor@b2gold.com
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