B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or
the “Company”) announces its operational and financial results for
the fourth quarter and full year 2023. The Company previously
released its gold production and gold revenue results for the
fourth quarter and full year 2023. All dollar figures are in United
States dollars unless otherwise indicated.
2023 Fourth Quarter and Full Year
Highlights
- Total gold production of
288,665 ounces in Q4 2023: Total gold production in the
fourth quarter of 2023 was 288,665 ounces, including 18,054 ounces
of attributable production from Calibre Mining Corp. (“Calibre”).
The Fekola, Masbate and Otjikoto mines all exceeded their expected
production in the fourth quarter, with Otjikoto achieving record
quarterly production of 81,111 ounces.
- Total consolidated cash
operating costs of $633 per gold ounce produced in Q4
2023: Total consolidated cash operating costs (see
“Non-IFRS Measures”) (including estimated attributable results for
Calibre) of $633 per gold ounce produced and consolidated cash
operating costs from the Company’s three operating mines of $611
per gold ounce produced.
- Total consolidated all-in
sustaining costs of $1,257 per
gold ounce sold in Q4 2023: Total consolidated all-in
sustaining costs (see “Non-IFRS Measures”) (including estimated
attributable results for Calibre) of $1,257 per gold ounce sold and
consolidated all-in sustaining costs from the Company’s three
operating mines of $1,264 per gold ounce sold.
- Achieved upper half of 2023
annual gold production guidance: Record annual total gold
production of 1,061,060 ounces (including 68,717 attributable
ounces from Calibre) for 2023, achieving the upper half of the
annual guidance range of between 1,000,000 and 1,080,000 ounces,
and marking the Company's eighth consecutive year of meeting or
exceeding annual production guidance.
- Below 2023 total
consolidated cash operating cost guidance and achieved low end of
2023 all-in sustaining cost guidance range: Total
consolidated cash operating costs for 2023 of $654 per gold ounce
produced, well below the annual guidance range of between $670 and
$730 per gold ounce primarily as a result of lower than expected
fuel costs and a weaker Namibian dollar. Total consolidated all-in
sustaining costs for 2023 of $1,201 per gold ounce sold, near the
low end of the annual guidance range of between $1,195 and $1,255
per gold ounce.
- Attributable net loss of
$0.09 per share in Q4 2023; Adjusted attributable net income
of $0.07 per share in Q4
2023: Net loss attributable to the shareholders of the
Company of $113 million ($0.09 per share); adjusted net income (see
“Non-IFRS Measures”) attributable to the shareholders of the
Company of $91 million ($0.07 per share). For 2023, net income
attributable to the shareholders of the Company of $10 million
($0.01 per share) and adjusted net income (see “Non-IFRS Measures”)
attributable to the shareholders of the Company of $347 million
($0.28 per share).
- Operating cash flow before
working capital adjustments of $221 million in Q4 2023:
Cash flow provided by operating activities before working capital
adjustments was $221 million in the fourth quarter of 2023. Cash
flow provided by operating activities before working capital
adjustments was $834 million for the year ended December 31,
2023.
- Strong financial position
and liquidity: At December 31, 2023, the Company had cash
and cash equivalents of $307 million and working capital (defined
as current assets less current liabilities) of $397 million.
- Construction at the Goose
Project continues to progress on track, with the project remaining
on schedule for first gold pour in the first quarter of
2025: Concrete and steel works in the mill area to date
continue to progress ahead of schedule. Exterior cladding of the
mill building and truck shop is complete, and cladding of the power
house will start in the first quarter of 2024. Additionally, the
ball mill will be set in place in the first quarter of 2024,
approximately four months ahead of schedule. Following the
successful completion of the 2023 sealift, construction of the 2024
winter ice road (“WIR”) is being finalized and scheduled to be
fully operational by February 23, 2024, transporting all required
materials from the Marine Laydown Area (“MLA”) to the Goose Project
site by the end of April 2024.
- Preliminary Economic
Assessment (“PEA”) underway on the Gramalote Project with
completion expected by the end of the second quarter of
2024: In 2023, B2Gold entered into a purchase agreement
with AngloGold Ashanti Limited (“AngloGold”) to acquire AngloGold's
50% interest in the Gramalote Project located in the Department of
Antioquia, Colombia. B2Gold now owns 100% of the Gramalote Project.
In 2023, the Company completed a detailed review of the Gramalote
Project, including the facility size and location, power supply,
mining and processing options, tailings design, resettlement,
potential construction sequencing, and camp design to identify
potential cost savings to develop a smaller scale project. A formal
study commenced in the fourth quarter of 2023, with the goal of
completing a PEA by the end of the second quarter of 2024.
- Subsequent to year-end
2023, announced positive exploration drilling results from the
Antelope deposit at the Otjikoto Mine in Namibia: On
January 31, 2024, the Company announced positive exploration
drilling results from the Antelope deposit, located approximately 3
kilometers (“km”) south of the Otjikoto Phase 5 open pit. The
Antelope deposit has the potential to be developed as an
underground mining operation, which could complement the expected
processing of low-grade stockpiles at the Otjikoto mill from 2026
through 2031.
- Subsequent to year-end
2023, received an upfront payment of $500 million, to further
enhance financial flexibility and provide additional cash
liquidity: In January 2024, B2Gold entered into a series
of prepaid gold sales (the “Gold Prepay”) with a number of existing
lenders to further enhance financial flexibility and provide
additional cash liquidity at attractive terms as the Company
continues to fund sustaining, development, and growth projects
across the operating portfolio, and increase financial capacity for
potential growth projects in Namibia and Colombia. The Company
received an upfront payment of $500 million, based on gold forward
curve prices averaging approximately $2,191 per ounce, in exchange
for equal monthly deliveries of gold from July 2025 to June 2026
totaling 264,775 ounces, representing approximately 10% of expected
annual gold production in each of 2025 and 2026 (subject to
finalization of production guidance for 2025 and 2026). Gold
deliveries can be from production from any of the Company's
operating mines and the Gold Prepay can be settled prior to
maturity through accelerated delivery of the remaining deliverable
gold ounces.
- Q1 2024 dividend of $0.04
per share declared: On February 21, 2024, B2Gold's Board
of Directors declared a cash dividend for the first quarter of 2024
of $0.04 per common share (or an expected $0.16 per share on an
annualized basis), payable on March 20, 2024, to shareholders of
record as of March 7, 2024.
- B2Gold consolidated gold
production expected to increase to record levels in 2025:
Based on current estimates, consolidated gold production is
expected to be between 1,130,000 and 1,260,000 ounces in 2025,
driven by a significant increase in gold production from the Fekola
Complex, relative to 2024, as a result of the scheduled mining and
processing of higher-grade ore from the Fekola and Cardinal pits
made accessible by the meaningful stripping campaign that will be
undertake throughout 2024, a full year contribution of higher-grade
ore from Fekola Regional, and commencement of mining the
higher-grade Fekola underground (subject to receipt of necessary
permits for Fekola Regional and Fekola underground). In addition,
the Goose Project is expected to commence gold production in the
first quarter of 2025 and contribute between 220,000 and 260,000
ounces of gold production in calendar year 2025.
Update on Off-Site Attack in
Mali
On February 15, 2024, the Company reported three
fatalities from an off-site armed attack in Mali. Traveling on the
national highway under Malian gendarme escort, a bus transporting
B2Gold employees from the Fekola Mine to Bamako was involved in an
incident when it was attacked approximately 75 km west of Bamako.
This tragic event was the result of an armed attack on the employee
transport convoy, which included Malian gendarmerie vehicles in
front and in the rear of the transport convoy. Unfortunately, as of
February 21, 2024, B2Gold deeply regrets to report that a fourth
employee has passed away as a result of injuries sustained in the
attack. Three employees remain in intensive care and are being
treated for their injuries in Bamako. All B2Gold employees
traveling on the bus have now been accounted for. B2Gold wishes to
express its deepest condolences to the families of the deceased
employees and extends its best wishes for a full recovery to all
those employees who were injured in the attack.
The attack occurred over 300 km northeast of the
Fekola Mine site, along a transport route that has been the focus
of increased security presence by the Malian armed forces. Mining
and processing activities at the Fekola Mine were not impacted by
this incident. The Company is actively engaged with the Malian
government on a full investigation into the cause of the attack,
and on further improvements to security along the national
highway.
Fourth Quarter and Full Year 2023
Results
| |
Three months ended |
Year ended |
| |
December 31 |
December 31 |
|
|
2023 |
2022 |
2023 |
2022 |
2021 |
| |
|
|
|
|
|
| Gold revenue ($ in
thousands) |
511,974 |
592,468 |
1,934,272 |
1,732,590 |
1,762,264 |
| Net (loss) income ($ in
thousands) |
(117,396) |
176,468 |
41,588 |
286,723 |
460,825 |
| (Loss) earnings per share –
basic(1)($/share) |
(0.09) |
0.15 |
0.01 |
0.24 |
0.40 |
| (Loss) earnings per share –
diluted(1)($/share) |
(0.09) |
0.15 |
0.01 |
0.24 |
0.40 |
| Cash provided by operating
activities ($ in thousands) |
205,443 |
270,491 |
714,453 |
595,798 |
724,113 |
| Total assets ($ in
thousands) |
4,874,619 |
3,681,233 |
4,874,619 |
3,681,233 |
3,561,293 |
| Non-current liabilities ($ in
thousands) |
651,173 |
335,828 |
651,173 |
335,828 |
369,097 |
| Average realized gold price
($/ounce) |
1,993 |
1,746 |
1,946 |
1,788 |
1,796 |
| Adjusted net income(1)(2)($ in
thousands) |
90,697 |
121,442 |
347,203 |
263,782 |
385,370 |
| Adjusted earnings per
share(1)(2)- basic ($) |
0.07 |
0.11 |
0.28 |
0.25 |
0.37 |
| Consolidated operations
results: |
|
|
|
|
|
| Gold sold (ounces) |
256,921 |
339,355 |
994,060 |
969,155 |
981,401 |
| Gold produced (ounces) |
270,611 |
352,769 |
992,343 |
973,003 |
987,595 |
| Production costs ($ in
thousands) |
164,406 |
159,559 |
616,197 |
626,526 |
493,389 |
| Cash operating costs(2)($/gold
ounce sold) |
640 |
470 |
620 |
646 |
503 |
| Cash operating costs(2)($/gold
ounce produced) |
611 |
440 |
631 |
637 |
511 |
| Total cash costs(2)($/gold
ounce sold) |
769 |
593 |
756 |
768 |
626 |
| All-in sustaining
costs(2)($/gold ounce sold) |
1,264 |
876 |
1,199 |
1,022 |
874 |
| Operations results
including equity investment in Calibre: |
|
|
|
|
|
| Gold sold (ounces) |
274,980 |
354,496 |
1,062,785 |
1,024,272 |
1,041,381 |
| Gold produced (ounces) |
288,665 |
367,870 |
1,061,060 |
1,027,874 |
1,047,414 |
| Production costs ($ in
thousands) |
181,801 |
176,195 |
683,963 |
684,894 |
549,610 |
| Cash operating costs(2)($/gold
ounce sold) |
661 |
497 |
644 |
669 |
528 |
| Cash operating costs(2)($/gold
ounce produced) |
633 |
468 |
654 |
660 |
535 |
| Total cash costs(2)($/gold
ounce sold) |
786 |
618 |
776 |
788 |
648 |
| All-in sustaining
costs(2)($/ounce gold sold) |
1,257 |
892 |
1,201 |
1,033 |
888 |
(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 December 31, 2023, the Company had cash
and cash equivalents of $307 million (December 31, 2022 - $652
million). Working capital at December 31, 2023 was $397 million
(December 31, 2022 - $802 million). During the year ended December
31, 2023, the Company drew down $150 million on the Company's $700
million revolving credit facility (“RCF”) with $550 remaining
available for future draw downs. Subsequent to December 31, 2023,
the Company utilized a portion of the proceeds from the $500
million Gold Prepay completed in January 2024 to repay the $150
million balance drawn on the RCF, leaving the full amount of $700
million available for future draw downs.
First Quarter 2024 Dividend
On February 21, 2024, B2Gold's Board of
Directors declared a cash dividend for the first quarter of 2024
(the “Q1 2024 Dividend”) of $0.04 per common share (or an expected
$0.16 per share on an annualized basis), payable on March 20, 2024,
to shareholders of record as of March 7, 2024.
In 2023, the Company implemented a Dividend
Reinvestment Plan (“DRIP”). For the purposes of the Q1 2024
Dividend, the Company is pleased to announce that a discount of 3%
will be applied to calculate the Average Market Price (as defined
in the DRIP) of its common shares issued from treasury. However,
the Company may, from time to time, in its discretion, change or
eliminate any applicable discount, which would be publicly
announced, all in accordance with the terms and conditions of the
DRIP. Participation in the DRIP is optional. In order to
participate in the DRIP in time for the Q1 2024 Dividend,
registered shareholders must deliver a properly completed
enrollment form to Computershare Trust Company of Canada by no
later than 4:00 p.m. (Toronto time) on February 29, 2024.
Beneficial shareholders who wish to participate in the DRIP should
contact their financial advisor, broker, investment dealer, bank,
financial institution, or other intermediary through which they
hold common shares well in advance of the above date for
instructions on how to enroll in the DRIP.
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 B2Gold'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.
For more information regarding the DRIP and
enrollment in the DRIP, please refer to the Company's website at
https://www.b2gold.com/investors/stock_info/.
This news release does not constitute an offer
to sell or the solicitation of an offer to buy securities in any
jurisdiction nor will there be any sale of these securities in any
province, state or jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such province, state or
jurisdiction.
The Company has filed a registration statement
relating to the DRIP with the U.S. Securities and Exchange
Commission that may be obtained under the Company's profile on the
U.S. Securities and Exchange Commission's website at
http://www.sec.gov/EDGAR or by contacting the Company using the
contact information at the end of this news release.
Operations
Fekola Mine - Mali
| |
Three months ended |
Year ended |
| |
December 31 |
December 31 |
|
|
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
| Gold revenue ($ in
thousands) |
255,509 |
415,121 |
1,143,781 |
1,067,482 |
| Gold sold (ounces) |
128,321 |
237,800 |
588,460 |
599,600 |
| Average realized gold price
($/ounce) |
1,991 |
1,746 |
1,944 |
1,780 |
| Tonnes of ore milled |
2,419,637 |
2,469,924 |
9,408,400 |
9,376,096 |
| Grade (grams/tonne) |
1.99 |
3.31 |
2.13 |
2.14 |
| Recovery (%) |
93.4 |
92.8 |
92.3 |
92.9 |
| Gold production (ounces) |
143,010 |
244,014 |
590,243 |
598,661 |
| Production costs ($ in
thousands) |
82,921 |
85,053 |
333,215 |
326,529 |
| Cash operating costs(1)($/gold
ounce sold) |
646 |
358 |
566 |
545 |
| Cash operating costs(1)($/gold
ounce produced) |
605 |
348 |
572 |
537 |
| Total cash costs(1)($/gold
ounce sold) |
809 |
495 |
729 |
684 |
| All-in sustaining
costs(1)($/gold ounce sold) |
1,444 |
708 |
1,194 |
867 |
| Capital expenditures ($ in
thousands) |
87,830 |
48,843 |
298,942 |
117,622 |
| Exploration ($ in thousands) |
2,022 |
1,366 |
3,728 |
15,214 |
(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) was a strong performer in
2023, producing 590,243 ounces of gold, near the mid-point of the
annual guidance range of 580,000 to 610,000 ounces. For the year
ended December 31, 2023, mill feed grade was 2.13 grams per tonne
(“g/t”), mill throughput was a record 9.41 million tonnes, and gold
recovery averaged 92.3%. In the fourth quarter of 2023, the Fekola
Mine produced 143,010 ounces of gold. During the fourth quarter of
2023, the Fekola processing facilities continued to outperform
expectations as a result of continued favourable ore fragmentation
and continued optimization of the grinding circuit. For the fourth
quarter of 2023, mill feed grade was 1.99 g/t, mill throughput was
2.42 million tonnes, and gold recovery averaged 93.4%. Mined ore
tonnage and grade continue to reconcile well with the Fekola
resource model.
For the year ended December 31, 2023, the Fekola
Mine's cash operating costs (see “Non-IFRS Measures”) of $572 per
gold ounce produced ($566 per gold ounce sold) were at the lower
end of Fekola's guidance range of between $565 and $625 per gold
ounce produced. Fekola’s cash operating costs for the fourth
quarter of 2023 were $605 per gold ounce produced ($646 per gold
ounce sold), slightly lower than expected due to higher than
anticipated production in the fourth quarter.
All-in sustaining costs (see “Non-IFRS
Measures”) for the Fekola Mine for the year ended December 31, 2023
were $1,194 per gold ounce sold, near the low end of the revised
guidance range of between $1,175 and $1,235 per gold ounce sold,
but higher than the original guidance range of between $1,085 and
$1,145 per gold ounce sold. All-in sustaining costs for the Fekola
Mine for the fourth quarter of 2023 were $1,444 per gold ounce
sold.
Capital expenditures for the year ended December
31, 2023, totalled $299 million, primarily consisting of $80
million for deferred stripping, $84 million for mobile equipment
purchases and rebuilds, $39 million for tailings storage facility
expansion and equipment, $39 million for the development of the
Fekola underground mine, $18 million for the expansion of the solar
plant, $12 million for site general capital, $12 million for other
mining sustaining capital, $10 million for process and power plant,
and $5 million for Bantako road construction. Capital expenditures
in the fourth quarter of 2023 totalled $88 million, primarily
consisting of $24 million for deferred stripping, $18 million for
mobile equipment purchases and rebuilds, $16 million for tailings
storage facility expansion and equipment, $14 million for the
development of the Fekola underground mine, $7 million for the
expansion of the solar plant, $5 million site general capital, and
$3 million for other mining sustaining capital.
The Fekola Complex is comprised of the Fekola
Mine (Medinandi permit hosting the Fekola and Cardinal pits and
Fekola underground) and Fekola Regional (Anaconda Area (Bantako,
Menankoto, and Bakolobi permits) and the Dandoko permit). The
Fekola Complex is expected to produce between 470,000 and 500,000
ounces of gold in 2024 at cash operating costs of between $835 and
$895 per ounce and all-in sustaining costs of between $1,420 and
$1,480 per ounce. The Fekola Complex's total 2024 gold production
is anticipated to decrease relative to 2023, predominantly as a
result of the delay in receiving an exploitation license for Fekola
Regional from the Government of Mali, delaying the 80,000 to
100,000 ounces that were scheduled in the life of mine plan to be
trucked to the Fekola mill and processed in 2024. The contribution
of this gold production from Fekola Regional is now assumed to
commence at the beginning of 2025. If an exploitation license is
received in the first half of 2024, there is potential for 2024
Fekola Complex production to be supplemented with up to 18,000
ounces of higher-grade ore from Fekola Regional.
During the year ended December 31, 2023, the
State of Mali introduced a new mining code (the “2023 Mining
Code”). Receipt of an exploitation license for Fekola Regional
remains outstanding pending finalization of an implementation
decree for the new 2023 Mining Code by the State of Mali. B2Gold
recently held meetings with representatives of the Government of
Mali regarding the 2023 Mining Code. The Government of Mali
assisted the Company in clarifying the application of the 2023
Mining Code to existing and future projects in Mali, and also
expressed their desire for B2Gold to rapidly progress the
development of Fekola Regional and committed to assisting the
Company in such development.
The haul road from Bantako North to Fekola is
complete and construction of the mining infrastructure (warehouse,
workshop, fuel depot, and offices) will be completed in the first
quarter of 2024. Mining operations will commence upon receipt of an
exploitation license, with initial gold production approximately
three months after commencement.
Fekola is expected to process 9.4 million tonnes
of ore during 2024 at an average grade of 1.77 g/t gold with a
process gold recovery of 90.9%. Gold production is expected to be
evenly weighted between the first half of 2024 and the second half
of 2024. In the second half of 2024, gold production is expected to
be weighted approximately 40% to the third quarter and
approximately 60% to the fourth quarter.
The expected increase in Fekola's all-in
sustaining costs for 2024 relative to 2023 reflects the expected
decrease in production at Fekola in 2024 due to the delay in
receiving an exploitation license for Fekola Regional and higher
sustaining capital expenditures. Capital expenditures in 2024 at
Fekola are expected to total approximately $309 million, of which
approximately $202 million is classified as sustaining capital
expenditures and $107 million is classified as non-sustaining
expenditures. Sustaining capital expenditures are anticipated to
include $80 million for deferred stripping, $45 million for ongoing
construction of the new tailings storage facility (expected to be
completed in the second quarter of 2025), $39 million for new and
replacement Fekola mining equipment, including capitalized
rebuilds, and $19 million for the expansion of the Fekola solar
plant (expected to be completed in the third quarter of 2024).
Non-sustaining capital expenditures are anticipated to include $64
million for underground mine development and $43 million for mine
development and infrastructure at Fekola Regional.
Masbate Mine – The Philippines
| |
Three months ended |
Year ended |
| |
December 31 |
December 31 |
| |
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
| Gold revenue ($ in
thousands) |
107,063 |
94,010 |
372,902 |
384,714 |
| Gold sold (ounces) |
53,500 |
53,865 |
190,800 |
214,015 |
| Average realized gold price
($/ounce) |
2,001 |
1,745 |
1,954 |
1,798 |
| Tonnes of ore milled |
2,077,503 |
2,043,931 |
8,302,075 |
7,929,094 |
| Grade (grams/tonne) |
0.90 |
1.08 |
0.97 |
1.11 |
| Recovery (%) |
77.0 |
68.3 |
74.5 |
74.9 |
| Gold production (ounces) |
46,490 |
48,687 |
193,502 |
212,728 |
| Production costs ($ in
thousands) |
43,733 |
47,228 |
160,952 |
177,705 |
| Cash operating costs(1)
($/gold ounce sold) |
817 |
877 |
844 |
830 |
| Cash operating costs(1)
($/gold ounce produced) |
910 |
872 |
859 |
817 |
| Total cash costs(1) ($/gold
ounce sold) |
933 |
984 |
966 |
937 |
| All-in sustaining costs(1)
($/gold ounce sold) |
1,118 |
1,187 |
1,143 |
1,104 |
| Capital expenditures ($ in
thousands) |
9,195 |
9,620 |
30,142 |
39,528 |
| Exploration ($ in thousands) |
1,067 |
1,648 |
3,808 |
4,759 |
(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 continued
its strong operational performance in 2023, producing 193,502
ounces of gold, exceeding the upper end of its guidance range of
170,000 to 190,000 ounces. For the year ended December 31, 2023,
mill feed grade was 0.97 g/t, mill throughput was a record 8.30
million tonnes, and gold recovery averaged 74.5%. Gold recoveries
for 2023 of 74.5% were in-line with those of 2022. Average 2023
gold recoveries were as expected despite processing a higher
percentage of sulphide and transitional ore than planned. Masbate's
mill throughput was higher than anticipated in 2023 as a result of
continued improvements to optimization of mill operations and
blending of mill feed. Mined ore tonnage and grade continue to
reconcile well with the Masbate resource model. In the fourth
quarter of 2023, Masbate produced 46,490 ounces of gold. Lower ore
gold grade during the quarter was offset by higher than expected
mill throughput. Fourth quarter 2023 mill feed grade was 0.90 g/t,
mill throughput was 2.08 million tonnes, and gold recovery averaged
77.0%.
The Masbate Mine’s cash operating costs (see
“Non-IFRS Measures”) of $859 per gold ounce produced ($844 per gold
ounce sold) for the year ended December 31, 2023 were at the low
end of the revised guidance range of between $855 and $915 per gold
ounce produced and significantly below the original guidance range
of between $985 and $1,045 per gold ounce produced. As a result of
lower than anticipated diesel and heavy fuel oil costs, Masbate
experienced lower than expected mining and processing costs
throughout 2023, which with the higher than anticipated gold
production, contributed significantly to the lower than expected
cash operating costs per gold ounce produced for Masbate for the
year ended December 31, 2023. The Masbate Mine's cash operating
costs for the fourth quarter of 2023 were $910 per gold ounce
produced ($817 per gold ounce sold).
All-in sustaining costs (see “Non-IFRS
Measures”) for the Masbate Mine were $1,143 per gold ounce sold for
the year ended December 31, 2023, below the lower end of the
revised guidance range of between $1,155 and $1,215 per gold ounce
sold and well below the original guidance range of between $1,370
and $1,430 per gold ounce sold. All-in sustaining costs for the
year ended December 31, 2023 were lower than anticipated as a
result of higher than expected gold ounces sold, lower than
expected cash operating costs as described above, and lower than
anticipated sustaining capital expenditures. All-in sustaining
costs for the Masbate Mine for the fourth quarter of 2023 were
$1,118 per gold ounce sold.
Capital expenditures totalled $30 million in
2023, primarily consisting of mobile equipment rebuilds and
purchases of $17 million, $3 million for the completion of a new
powerhouse generator and other powerhouse engine rebuilds, $2
million in deferred stripping, $2 million for tailings storage
facility projects, and $2 million for capitalized mill maintenance.
Capital expenditures for the fourth quarter of 2023 totalled $9
million, primarily consisting of $5 million for mobile equipment
rebuilds and purchases, $1 million for capitalized mill
maintenance, $1 million for powerhouse rebuilds, and $1 million for
the tailings storage facility.
The Masbate Mine is expected to produce between
170,000 and 190,000 ounces of gold in 2024 at cash operating costs
of between $945 and $1,005 per ounce and all-in sustaining costs of
between $1,300 and $1,360 per ounce. Gold production is scheduled
to be relatively consistent throughout 2024. For 2024, Masbate is
expected to process 7.9 million tonnes of ore at an average grade
of 0.93 g/t with a process gold recovery of 76.0%. Mill feed will
be a blend of mined fresh ore and low-grade ore stockpiles.
Capital expenditures for 2024 at Masbate are
expected to total $49 million, of which approximately $33 million
is classified as sustaining capital expenditures and $16 million is
classified as non-sustaining capital expenditures. Sustaining
capital expenditures are anticipated to include $16 million for
mining and mobile equipment replacement and rebuilds, $6 million
for deferred stripping, $6 million for process plant, and $3
million for tailings storage facility expansion. Non-sustaining
capital expenditures are anticipated to include $16 million for
land acquisition and mine development.
Otjikoto Mine - Namibia
| |
Three months ended |
Year ended |
| |
December 31 |
December 31 |
|
|
2023 |
2022 |
2023 |
2022 |
| |
|
|
|
|
| Gold revenue ($ in
thousands) |
149,402 |
83,337 |
417,589 |
280,394 |
| Gold sold (ounces) |
75,100 |
47,690 |
214,800 |
155,540 |
| Average realized gold price
($/ounce) |
1,989 |
1,747 |
1,944 |
1,803 |
| Tonnes of ore milled |
888,561 |
839,599 |
3,443,308 |
3,412,960 |
| Grade (grams/tonne) |
2.88 |
2.25 |
1.91 |
1.50 |
| Recovery (%) |
98.5 |
98.8 |
98.6 |
98.5 |
| Gold production (ounces) |
81,111 |
60,068 |
208,598 |
161,614 |
| Production costs ($ in
thousands) |
37,752 |
27,278 |
122,030 |
122,292 |
| Cash operating costs(1)
($/gold ounce sold) |
503 |
572 |
568 |
786 |
| Cash operating costs(1)
($/gold ounce produced) |
451 |
465 |
585 |
769 |
| Total cash costs(1) ($/gold
ounce sold) |
582 |
642 |
646 |
858 |
| All-in sustaining costs(1)
($/gold ounce sold) |
816 |
965 |
984 |
1,161 |
| Capital expenditures ($ in
thousands) |
14,797 |
19,521 |
61,063 |
79,096 |
| Exploration ($ in thousands) |
1,410 |
1,201 |
3,863 |
3,476 |
(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, had a strong finish to 2023 and
produced an annual record of 208,598 ounces of gold, at the upper
end of the guidance range of 190,000 to 210,000 ounces, mainly due
to improved processed grade as a result of higher-grade ore mined
from the Wolfshag underground mine. For the year ended December 31,
2023, mill feed grade was 1.91 g/t, mill throughput was 3.44
million tonnes, and gold recovery averaged 98.6%. In the fourth
quarter of 2023, the Otjikoto Mine produced a quarterly record of
81,111 ounces of gold. For the fourth quarter of 2023, mill feed
grade was 2.88 g/t, mill throughput was 0.89 million tonnes, and
gold recovery averaged 98.5%.
As of the beginning of 2023, the Probable
Mineral Reserve estimate for the Wolfshag deposit included 203,000
ounces of gold in 1.1 million tonnes of ore at an average grade of
5.55 g/t gold. Open pit mining operations at the Otjikoto Mine are
scheduled to ramp down throughout 2024 and conclude in 2025, while
underground mining operations at Wolfshag are expected to continue
through 2026. Processing operations will continue through 2031,
when economically viable stockpiles are forecast to be
exhausted.
On January 31, 2024, the Company announced
positive exploration drilling results from the Antelope deposit at
the Otjikoto Mine. The Antelope deposit, comprised of the Springbok
Zone, the Oryx Zone, and a possible third structure, Impala,
subject to further confirmatory drilling, is located approximately
3 km south of the Otjikoto Phase 5 open pit. The Antelope deposit
has the potential to be developed as an underground mining
operation, which could complement the expected processing of
low-grade stockpiles at the Otjikoto mill from 2026 through
2031.
The Otjikoto Mine's cash operating costs (see
“Non-IFRS Measures”) for the year ended December 31, 2023 were $585
per gold ounce produced ($568 per gold ounce sold), within its
revised guidance range of between $545 and $605 per gold ounce
produced and below its original guidance range between $590 and
$650 per gold ounce produced. Cash operating costs per gold ounce
produced for the year ended December 31, 2023 were lower than
expectations as a result of higher than expected gold ounces
produced and lower operating costs due to a weaker than anticipated
Namibian dollar. For the fourth quarter of 2023, the Otjikoto
Mine's cash operating costs were $451 per gold ounce produced ($503
per ounce gold sold).
All-in sustaining costs (see “Non-IFRS
Measures”) for the Otjikoto Mine for the year ended December 31,
2023 were $984 per gold ounce sold, within its revised guidance
range of between $950 and $1,010 per ounce sold and well below its
original guidance range of between $1,080 and $1,140 per ounce
sold. All-in sustaining costs for the year ended December 31, 2023
were below the low end of its original guidance range as a result
of higher than anticipated gold ounces sold, lower than expected
cash operating costs and lower than anticipated sustaining capital
expenditures primarily related to deferred stripping and
underground development. All-in sustaining costs for the Otjikoto
Mine for the fourth quarter of 2023 were $816 per gold ounce
sold.
Capital expenditures totalled $61 million in
2023, primarily consisting of $47 million for deferred stripping
for the Otjikoto pit, $10 million for Wolfshag underground
development, and $2 million in mobile equipment rebuilds. Capital
expenditures for the fourth quarter of 2023 totalled $15 million,
primarily consisting of $10 million for deferred stripping for the
Otjikoto pit and $3 million for Wolfshag underground
development.
The Otjikoto Mine is expected to produce between
180,000 and 200,000 ounces of gold in 2024 at cash operating costs
of between $685 and $745 per ounce and all-in sustaining costs of
between $960 and $1,020 per ounce. Gold production at Otjikoto is
expected to be relatively consistent throughout 2024. For 2024,
Otjikoto is expected to process a total of 3.4 million tonnes of
ore at an average grade of 1.77 g/t with a process gold recovery of
98.0%. Processed ore will be sourced from the Otjikoto pit and the
Wolfshag underground mine, supplemented by existing medium and
high-grade ore stockpiles.
Capital expenditures in 2024 at Otjikoto are
expected to total $33 million, of which approximately $32 million
is classified as sustaining capital expenditures and $1 million is
classified as non-sustaining capital expenditures. Sustaining
capital expenditures are anticipated to include $32 million for
deferred stripping and deferred underground development.
Goose Project Development
On April 19, 2023, the Company completed the
acquisition of Sabina Gold & Silver Corp. (“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 of B2Gold as consideration. The Back River
Gold District consists of five mineral claims blocks along an 80 km
belt.
B2Gold recognizes that respect and collaboration
with the Kitikmeot Inuit Association (“KIA”) 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 Inuit priorities, addresses concerns, and brings
long-term socio-economic benefits to the Kitikmeot Region. B2Gold
looks forward to continuing to build on its strong collaboration
with the KIA and Kitikmeot Communities.
Construction at the Goose Project continues to
progress on track, with the project remaining on schedule to pour
first gold in the first quarter of 2025. Concrete and steel works
in the mill area to date are progressing ahead of schedule.
Exterior cladding of the mill building and truck shop is complete
and cladding of the power house will commence in the first quarter
of 2024. Enclosure of these buildings has allowed for work to
continue through the colder months and remain on schedule.
Additionally, the ball mill will be set in place in the first
quarter of 2024, approximately four months ahead of schedule, and
the focus will switch to piping, electrical, and mechanical systems
as materials begin to arrive via the WIR from the MLA. Crews for
installation of piping, electrical, and mechanical systems have
been mobilized and will work within the enclosed workshops and
buildings as the site ramps up to peak 2024 construction season.
Progress to date has considerably de-risked the Goose Project as
the site ramps up to the peak 2024 construction season.
Following the successful completion of the 2023
sealift, construction of the 163 km WIR between the MLA and the
Goose Project is being finalized. The WIR is scheduled to be fully
operational by February 23, 2024, transporting all required
materials from the MLA to the Goose Project site by the end of
April 2024, keeping the Goose Project on schedule to pour first
gold in the first quarter of 2025.
After completing a detailed review of the Goose
Project design, materials, and construction schedule as part of the
2024 budgeting process, the Company has revised the total
construction capital estimate from C$800 million to C$1,050
million. Most of the increase in the construction capital estimate
relates to underestimated labour and site operating costs in the
feasibility study, along with additional general inflationary
impacts on construction materials, consumables, and transportation
costs. In addition, a detailed review of the project design has
identified deficiencies in project components including power
generation and distribution, laboratory, piping, and controls and
instrumentation, which are being corrected to deliver a reliable
operation. In 2024, B2Gold expects to incur approximately C$280
million in construction capital costs. Future construction cost
variance is expected to be minimal as over half of the construction
capital costs to be incurred in 2024 are related to labour in order
to bring the project close to commissioning by the end of the year,
and all major components have been purchased or are under contract.
In the fourth quarter of 2023 and post-acquisition to December 31,
2023, the Company incurred $126 million (C$171 million) and $282
million (C$381 million), respectively for construction activities
at the Goose Project.
In addition, the net cost of open pit and
underground development, deferred stripping, and sustaining capital
expenditures to be incurred prior to first gold production is
estimated at approximately C$200 million (including approximately
C$125 million of direct mining costs related to open pit and
underground development). The cost of these initiatives is
primarily related to optimization changes in the underground mine
plan as a result of switching the underground mining method to
long-hole stoping and prioritizing ore from the Umwelt crown pillar
area ahead of the zones below. It is anticipated that the increase
in underground development costs will be offset during operations
through lower sustainable operating costs than could be achieved
with the cut-and-fill underground mining method. Additionally,
B2Gold has elected to advance open pit mining of the Echo Pit,
which is underway and will produce construction fill, stockpile
ore, and provide tailings storage capacity. Open pit mining of the
Umwelt Pit is expected to commence later in the first quarter of
2024 and will produce much of the commissioning ore as well as
future tailings storage. In 2024, B2Gold expects to incur
approximately C$170 million in open pit and underground
development, deferred stripping, and sustaining capital
expenditures.
In 2024, the Company will undertake a buildup of
working capital over the Goose Project construction period up to
the first quarter of 2025 in order to materially de-risk the
execution of the production ramp-up phase and initial years of
operation by including 2025 and certain 2026 consumables and
sustaining capital equipment on the 2024 sealift. Areas of focus
for working capital include: accelerated purchase and additional
storage of diesel fuel to manage the requirements for operations in
2025 and part of 2026; critical inventory of consumables and spares
for mining and processing to avoid the requirement for air
transport; and development of open pit and underground ore
stockpiles to provide a consistent and uninterrupted feed to the
process plant. The Company estimates that approximately C$205
million of fuel, reagents, and other working capital items will be
purchased in 2024 to build up site inventory levels, which will
substantially de-risk the project from operational and supply chain
disruptions. Post-acquisition to December 31, 2023, $57 million of
consumables inventory costs were incurred, including long-term
consumables of $44 million.
Fekola Complex Development
Based on B2Gold's preliminary planning, the
Anaconda Area could provide selective higher-grade saprolite
material (average annual grade of up to 2.2 g/t gold) to be trucked
approximately 20 km and fed into the Fekola mill at a rate of up to
1.5 million tonnes per annum. Trucking of selective higher-grade
saprolite material from the Anaconda Area to the Fekola mill will
increase the ore processed and has the potential to generate
approximately 80,000 to 100,000 ounces of gold production per year
from Fekola Regional sources. Receipt of a mining permit for the
Fekola Regional licenses remains outstanding pending finalization
of an implementation decree for the new 2023 Mining Code by the
State of Mali. The Company does not currently forecast any
production from Fekola Regional in the Company's 2024 guidance,
with production now expected to commence at the beginning of 2025.
If an exploitation license for Fekola Regional is received in the
first half of 2024, there is potential for 2024 Fekola Complex
production to be supplemented with up to 18,000 ounces of
higher-grade ore from Fekola Regional. In addition, if the Company
is successful in discovering additional sulphide ore across the
Fekola Complex, the trucking of oxide ore from Fekola Regional to
the Fekola mill may potentially be extended. B2Gold recently held
meetings with the representatives of the Government of Mali
regarding the 2023 Mining Code. The Government of Mali assisted the
Company in clarifying the application of the 2023 Mining Code to
existing and future projects in Mali, and also expressed their
desire for B2Gold to rapidly progress the development of Fekola
Regional and committed to assisting the Company in such
development.
For the fourth quarter of 2023 and the year
ended December 31, 2023, the Company invested $10 million and $56
million respectively, in the development of Fekola Regional
(Anaconda Area) saprolite mining including road construction, mine
infrastructure, and mining equipment. For 2023, the Company had
budgeted a total of $63 million for Fekola Regional
development.
Gramalote Project
Development
B2Gold's in-house projects team has commenced
work on various smaller scale project development plans for the
Gramalote Project, with the goal of identifying a higher-return
project than the previously contemplated joint venture development
plan. Based on the results of the 2022 Gramalote feasibility study,
the contemplated larger scale project did not meet the combined
investment return thresholds for development by both B2Gold and
AngloGold. In 2023, B2Gold completed a detailed review of the
Gramalote Project, including the facility size and location, power
supply, mining and processing options, tailings design,
resettlement, potential construction sequencing, and camp design to
identify potential cost savings to develop a smaller scale project.
The results of the review allowed the Company to determine the
optimal parameters and assumptions for a formal study, which
commenced in the fourth quarter of 2023, with the goal of
completing a PEA by the end of the second quarter of 2024.
Exploration
B2Gold executed another year of aggressive
exploration in 2023 incurring $78 million (including $2 million of
target generation costs included in other operating expenses in the
Consolidated Statement of Operations) compared to a revised budget
of approximately $84 million (original budget of $64 million).
Exploration in 2023 was focused predominantly in Mali, other
operating mine sites in Namibia and the Philippines, both infill
and generative exploration at the Back River Gold District, as well
as a continued focus on grassroots targets around the world.
B2Gold is planning another year of extensive
exploration in 2024 with a budget of approximately $63 million. A
significant focus will be exploration at the Back River Gold
District, with the goal of enhancing and growing the significant
resource base at the Goose Project and surrounding regional
targets. In Namibia, the exploration program at the Otjikoto Mine
will be the largest program since 2012, with 39,000 meters of
drilling planned to define and expand the recently discovered
Antelope deposit. In Mali, the exploration program will be a more
strategic search for near-mine, near-surface sources of additional
sulphide-related gold mineralization. In the Philippines, the
exploration program at Masbate will focus on converting inferred
mineral resource areas and expanding the existing open pits. Early
stage exploration programs will continue in Finland, the
Philippines, and Cote d'Ivoire in 2024. Finally, the search for new
joint ventures and strategic investment opportunities will
continue, building on existing equity investments in Snowline Gold
Corp. and Matador Mining Ltd.
Outlook
Total gold production in 2024 is anticipated to
be between 860,000 and 940,000 ounces, including 40,000 to 50,000
ounces of attributable production from Calibre. Production is
expected to be relatively consistent throughout 2024, with third
quarter production expected to be slightly lower and fourth quarter
production expected to be slightly higher. The expected decrease in
gold production relative to 2023 is predominantly due to lower
production at the Fekola Complex as a result of the delay in
receiving an exploitation license for Fekola Regional from the
Government of Mali, delaying the 80,000 to 100,000 ounces that were
scheduled in the life of mine plan to be trucked to the Fekola mill
and processed in 2024. The contribution of this gold production
from Fekola Regional is now assumed to commence at the beginning of
2025. The Company's total consolidated cash operating costs for the
year (including estimated attributable results for Calibre) are
forecast to be between $835 and $895 per gold ounce produced and
total consolidated all-in sustaining costs (including estimate
attributable results for Calibre) are forecast to be between $1,360
and $1,420 per gold ounce sold. The anticipated increase in the
Company's consolidated cash operating costs per ounce for 2024
reflects the processing of lower-grade ore at Fekola in 2024. The
total consolidated all-in sustaining costs per ounce for 2024
reflect the final full year of spending on both the new Fekola
tailings storage facility and the Fekola solar plant expansion, in
addition to the ongoing substantial capitalized stripping campaign
planned at Fekola for 2024.
B2Gold consolidated gold production is expected
to increase to record levels in 2025. Based on current estimates,
consolidated gold production in 2025 is expected to be between
1,130,000 and 1,260,000 ounces, driven by a significant increase in
gold production from the Fekola Complex, relative to 2024, as a
result of the scheduled mining and processing of higher-grade ore
from the Fekola and Cardinal pits made accessible by the meaningful
stripping campaign that will be undertaken throughout 2024, a full
year contribution of higher-grade ore from Fekola Regional, and
commencement of mining from the higher-grade Fekola underground
(subject to receipt of necessary permits for Fekola Regional and
Fekola underground). In addition, the Goose Project is expected to
commence gold production in the first quarter of 2025 and
contribute between 220,000 and 260,000 ounces of gold production in
calendar year 2025. The Company still expects gold production from
the Goose Project to be approximately 300,000 ounces per year over
the first five years of operation. As a result of the expected
completion of several capital projects in 2024 and early 2025, the
Company also expects that there will be a significant decrease in
both sustaining and growth capital expenditures in 2025.
Construction of the Goose Project is progressing
on track, with the project remaining on schedule for first gold
pour in the first quarter of 2025. Construction continues ahead of
schedule within the mill and processing buildings, along with
preparatory work for peak construction activities in the second and
third quarters of 2024. Mine development is well underway at the
Echo Pit and Umwelt Underground mine to generate high-grade
stockpiles prior to mill commissioning. Following the successful
completion of the 2023 sealift, construction of the WIR is being
finalized and scheduled to be fully operational by February 23,
2024, transporting all required materials from the MLA to the Goose
Project site by the end of April 2024.
Results of the Fekola Complex technical report
outlining the trucking of ore from the Anaconda Area will be
released in the first quarter of 2024. Results indicate that the
trucking of both oxide and sulphide ore from Fekola Regional to be
toll milled by the Fekola mill is the optimal option to maximize
the value of Fekola Regional, and to extend the processing life of
the Fekola mill.
The Company has completed a detailed review of
the Gramalote Project, including the facility size and location,
power supply, mining and processing options, tailings design,
resettlement, potential construction sequencing, and camp design to
identify potential cost savings to develop a smaller scale project.
A formal study commenced in the fourth quarter of 2023, with the
goal of completing a PEA by the end of the second quarter of
2024.
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.
Fourth Quarter and Full Year 2023
Financial Results - Conference Call Details
B2Gold executives will host a conference call to
discuss the results on Thursday, February 22, 2024, at 8:00 am PT /
11:00 am ET.
Participants may register for the conference
call here: registration link. Upon registering, participants will
receive a calendar invitation by email with dial in details and a
unique PIN. This will allow participants to bypass the operator
queue and connect directly to the conference. Registration will
remain open until the end of the conference call. Registration will
remain open until the end of the conference call. Participants may
also dial in using the numbers below:
- Toll-free in U.S. and Canada: +1 (800) 319-4610
- All other callers: +1 (604) 638-5340
The conference call will be available to
playback for two weeks by dialing toll-free in the U.S. and Canada:
+1 (800) 319-6413, replay access code 0672. All other callers: +1
(604) 638-9010, replay access code 0672.
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, a mine under construction in northern Canada and
numerous development and exploration projects in various countries
including Mali, Colombia and Finland. B2Gold forecasts total
consolidated gold production of between 860,000 and 940,000 ounces
in 2024.
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.
Andrew Brown, 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, which 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: projected gold production, cash
operating costs and AISC on a consolidated and mine by mine basis
in 2024; total consolidated gold production of between 860,000 and
940,000 ounces in 2024, with cash operating costs of between $835
and $895 per ounce and AISC of between $1,360 and $1,420 per ounce;
the Company’s gold production to be relatively consistent
throughout 2024; consolidated gold production of between 1,130,000
and 1,260,000 ounces in 2025, including a significant increase in
the gold production at the Fekola Complex, with expected lower
consolidated AISC; B2Gold’s continued prioritization of developing
the Goose Project in a manner that recognizes Indigenous input and
concerns and brings long-term socio-economic benefits to the area;
the Goose Project capital cost being approximately C$1,050 million,
and the net cost of open pit and underground development, deferred
stripping, and sustaining capital expenditures to be incurred prior
to first gold production being approximately C$200 million; the
construction capital cost to complete the Goose Project being
approximately C$335 million; the WIR at the Goose Project being
operational by February 23, 2024; the potential for first gold
production in the first quarter of 2025 from the Goose Project; the
Company’s total capitalized stripping expenditures moderating in
2024; the potential for Fekola Regional to provide saprolite
material to feed the Fekola mill within three months after receipt
of an exploitation license; the timing and results of a study for
the Fekola Complex optimization study; the significant increase in
gold production in 2025 from the Fekola Complex as a result of the
scheduled ore from Fekola Regional and commencement of mining at
Fekola underground; the impact of the 2023 Mali Mining Code; the
potential to extend Wolfshag underground mine past 2026; the
potential for the Antelope deposit to be developed as an
underground operation and contribute gold during the low-grade
stockpile processing in 2026 through 2031; the timing and results
of a PEA for the Gramalote Project; 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.
| |
| B2GOLD
CORP.CONSOLIDATED STATEMENTS OF
OPERATIONS(Expressed in thousands of United States
dollars, except per share amounts)(Unaudited) |
|
|
| |
| |
|
For the threemonths
endedDec. 31, 2023 |
|
|
For the threemonths endedDec. 31, 2022 |
|
|
For the twelvemonths
endedDec. 31, 2023 |
|
|
For the twelvemonths endedDec. 31, 2022 |
|
| |
|
|
|
|
|
|
|
|
|
Gold revenue |
|
$ |
511,974 |
|
|
$ |
592,468 |
|
|
$ |
1,934,272 |
|
|
$ |
1,732,590 |
|
| |
|
|
|
|
|
|
|
|
| Cost of
sales |
|
|
|
|
|
|
|
|
|
Production costs |
|
|
(164,406 |
) |
|
|
(159,559 |
) |
|
|
(616,197 |
) |
|
|
(626,526 |
) |
|
Depreciation and depletion |
|
|
(108,983 |
) |
|
|
(130,508 |
) |
|
|
(402,371 |
) |
|
|
(383,852 |
) |
|
Royalties and production taxes |
|
|
(33,042 |
) |
|
|
(41,733 |
) |
|
|
(135,703 |
) |
|
|
(117,968 |
) |
| Total cost of
sales |
|
|
(306,431 |
) |
|
|
(331,800 |
) |
|
|
(1,154,271 |
) |
|
|
(1,128,346 |
) |
| |
|
|
|
|
|
|
|
|
| Gross
profit |
|
|
205,543 |
|
|
|
260,668 |
|
|
|
780,001 |
|
|
|
604,244 |
|
| |
|
|
|
|
|
|
|
|
| General and
administrative |
|
|
(21,194 |
) |
|
|
(20,718 |
) |
|
|
(62,364 |
) |
|
|
(54,479 |
) |
| Share-based payments |
|
|
(5,187 |
) |
|
|
(6,590 |
) |
|
|
(20,921 |
) |
|
|
(24,843 |
) |
| (Impairment) reversal of
impairment of long-lived assets |
|
|
(205,666 |
) |
|
|
— |
|
|
|
(322,148 |
) |
|
|
909 |
|
| Write-down of mining
interests |
|
|
(2,883 |
) |
|
|
(5,281 |
) |
|
|
(19,905 |
) |
|
|
(12,366 |
) |
| Foreign exchange (losses)
gains |
|
|
(1,432 |
) |
|
|
6,385 |
|
|
|
(16,020 |
) |
|
|
(10,054 |
) |
| Share of net income of
associates |
|
|
2,322 |
|
|
|
1,192 |
|
|
|
19,871 |
|
|
|
10,183 |
|
| Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
(12,151 |
) |
|
|
— |
|
| Community relations |
|
|
(1,322 |
) |
|
|
(793 |
) |
|
|
(5,205 |
) |
|
|
(2,738 |
) |
| Loss on sale on sale of mining
interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,804 |
) |
| Other expense |
|
|
(5,365 |
) |
|
|
(2,909 |
) |
|
|
(13,761 |
) |
|
|
(5,655 |
) |
| Operating (loss)
income |
|
|
(35,184 |
) |
|
|
231,954 |
|
|
|
327,397 |
|
|
|
502,397 |
|
| |
|
|
|
|
|
|
|
|
| Interest and financing
expense |
|
|
(4,893 |
) |
|
|
(2,859 |
) |
|
|
(13,925 |
) |
|
|
(10,842 |
) |
| Interest income |
|
|
2,778 |
|
|
|
4,168 |
|
|
|
18,519 |
|
|
|
11,964 |
|
| Change in fair value of gold
stream |
|
|
(18,800 |
) |
|
|
— |
|
|
|
(12,300 |
) |
|
|
— |
|
| (Losses) gains on derivative
instruments |
|
|
(1,393 |
) |
|
|
672 |
|
|
|
4,699 |
|
|
|
18,969 |
|
| Other income (expense) |
|
|
1,012 |
|
|
|
1,616 |
|
|
|
(4,057 |
) |
|
|
8,129 |
|
| (Loss) income from
operations before taxes |
|
|
(56,480 |
) |
|
|
235,551 |
|
|
|
320,333 |
|
|
|
530,617 |
|
| |
|
|
|
|
|
|
|
|
| Current income tax,
withholding and other taxes |
|
|
(73,926 |
) |
|
|
(107,496 |
) |
|
|
(290,081 |
) |
|
|
(247,811 |
) |
| Deferred income tax
recovery |
|
|
13,010 |
|
|
|
48,413 |
|
|
|
11,336 |
|
|
|
3,917 |
|
| Net (loss) income for
the period |
|
$ |
(117,396 |
) |
|
$ |
176,468 |
|
|
$ |
41,588 |
|
|
$ |
286,723 |
|
| |
|
|
|
|
|
|
|
|
| Attributable
to: |
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
$ |
(113,224 |
) |
|
$ |
157,756 |
|
|
$ |
10,097 |
|
|
$ |
252,873 |
|
|
Non-controlling interests |
|
|
(4,172 |
) |
|
|
18,712 |
|
|
|
31,491 |
|
|
|
33,850 |
|
| Net (loss) income for
the period |
|
$ |
(117,396 |
) |
|
$ |
176,468 |
|
|
$ |
41,588 |
|
|
$ |
286,723 |
|
| |
|
|
|
|
|
|
|
|
| (Loss) earnings per
share(attributable to shareholders of the Company) |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.09 |
) |
|
$ |
0.15 |
|
|
$ |
0.01 |
|
|
$ |
0.24 |
|
|
Diluted |
|
$ |
(0.09 |
) |
|
$ |
0.15 |
|
|
$ |
0.01 |
|
|
$ |
0.24 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average
number of common
shares outstanding(in
thousands) |
|
|
|
|
|
|
|
|
|
Basic |
|
|
1,300,791 |
|
|
|
1,074,448 |
|
|
|
1,232,092 |
|
|
|
1,064,259 |
|
|
Diluted |
|
|
1,300,791 |
|
|
|
1,080,704 |
|
|
|
1,237,404 |
|
|
|
1,071,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| B2GOLD
CORP.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Expressed in thousands of United States
dollars)(Unaudited) |
|
|
| |
| |
|
For the threemonths
endedDec. 31, 2023 |
|
|
For the threemonths endedDec. 31, 2022 |
|
|
For the twelvemonths
endedDec. 31, 2023 |
|
|
For the twelvemonths endedDec. 31, 2022 |
|
| Operating
activities |
|
|
|
|
|
|
|
|
|
Net (loss) income for the period |
|
$ |
(117,396 |
) |
|
$ |
176,468 |
|
|
$ |
41,588 |
|
|
$ |
286,723 |
|
|
Mine restoration provisions settled |
|
|
(1,374 |
) |
|
|
(793 |
) |
|
|
(2,297 |
) |
|
|
(793 |
) |
|
Non-cash charges, net |
|
|
339,461 |
|
|
|
94,244 |
|
|
|
794,961 |
|
|
|
425,944 |
|
|
Changes in non-cash working capital |
|
|
523 |
|
|
|
39,229 |
|
|
|
(6,538 |
) |
|
|
(48,604 |
) |
|
Changes in long-term supplies inventory |
|
|
11,870 |
|
|
|
— |
|
|
|
(18,537 |
) |
|
|
— |
|
|
Changes in long-term value added tax receivables |
|
|
(27,641 |
) |
|
|
(38,657 |
) |
|
|
(94,724 |
) |
|
|
(67,472 |
) |
|
Cash provided by operating activities |
|
|
205,443 |
|
|
|
270,491 |
|
|
|
714,453 |
|
|
|
595,798 |
|
| |
|
|
|
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
|
|
|
|
Extinguishment of gold stream and construction financing
obligations |
|
|
— |
|
|
|
— |
|
|
|
(111,819 |
) |
|
|
— |
|
|
Revolving credit facility draw downs |
|
|
150,000 |
|
|
|
— |
|
|
|
150,000 |
|
|
|
— |
|
|
Revolving credit facility transaction costs |
|
|
— |
|
|
|
— |
|
|
|
(3,296 |
) |
|
|
(2,401 |
) |
|
Repayment of equipment loan facilities |
|
|
(3,388 |
) |
|
|
(7,428 |
) |
|
|
(13,301 |
) |
|
|
(19,802 |
) |
|
Interest and commitment fees paid |
|
|
(1,119 |
) |
|
|
(1,407 |
) |
|
|
(4,582 |
) |
|
|
(4,456 |
) |
|
Cash proceeds from stock option exercises |
|
|
460 |
|
|
|
1,310 |
|
|
|
12,854 |
|
|
|
14,276 |
|
|
Dividends paid |
|
|
(46,640 |
) |
|
|
(42,940 |
) |
|
|
(186,724 |
) |
|
|
(170,635 |
) |
|
Principal payments on lease arrangements |
|
|
(1,565 |
) |
|
|
(1,217 |
) |
|
|
(6,189 |
) |
|
|
(6,616 |
) |
|
Distributions to non-controlling interests |
|
|
(16,435 |
) |
|
|
(2,503 |
) |
|
|
(34,316 |
) |
|
|
(30,331 |
) |
|
Other |
|
|
842 |
|
|
|
6,162 |
|
|
|
4,863 |
|
|
|
8,680 |
|
|
Cash used by financing activities |
|
|
82,155 |
|
|
|
(48,023 |
) |
|
|
(192,510 |
) |
|
|
(211,285 |
) |
| |
|
|
|
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
|
|
|
|
Expenditures on mining interests: |
|
|
|
|
|
|
|
|
|
Fekola Mine |
|
|
(87,830 |
) |
|
|
(48,843 |
) |
|
|
(298,942 |
) |
|
|
(117,622 |
) |
|
Masbate Mine |
|
|
(9,195 |
) |
|
|
(9,620 |
) |
|
|
(30,142 |
) |
|
|
(39,528 |
) |
|
Otjikoto Mine |
|
|
(14,797 |
) |
|
|
(19,521 |
) |
|
|
(61,063 |
) |
|
|
(79,096 |
) |
|
Goose Project |
|
|
(125,644 |
) |
|
|
— |
|
|
|
(282,338 |
) |
|
|
— |
|
|
Fekola Regional Property, pre-development |
|
|
(9,630 |
) |
|
|
(14,226 |
) |
|
|
(55,975 |
) |
|
|
(26,309 |
) |
|
Gramalote Project |
|
|
(3,812 |
) |
|
|
(3,077 |
) |
|
|
(6,380 |
) |
|
|
(15,887 |
) |
|
Other exploration |
|
|
(17,692 |
) |
|
|
(18,124 |
) |
|
|
(76,005 |
) |
|
|
(63,629 |
) |
|
Cash acquired on acquisition of Sabina Gold & Silver Corp. |
|
|
— |
|
|
|
— |
|
|
|
38,083 |
|
|
|
— |
|
|
Transaction costs paid on acquisition of Sabina Gold & Silver
Corp. |
|
|
— |
|
|
|
— |
|
|
|
(6,672 |
) |
|
|
— |
|
|
Purchase of long-term investment |
|
|
(523 |
) |
|
|
— |
|
|
|
(33,282 |
) |
|
|
— |
|
|
Cash paid for acquisition of Gramalote Property interest |
|
|
(20,393 |
) |
|
|
— |
|
|
|
(20,393 |
) |
|
|
— |
|
|
Funding of reclamation accounts |
|
|
(1,712 |
) |
|
|
(1,694 |
) |
|
|
(6,541 |
) |
|
|
(6,746 |
) |
|
Cash paid for purchase of non-controlling interest |
|
|
— |
|
|
|
(3,336 |
) |
|
|
(6,704 |
) |
|
|
(3,336 |
) |
|
Deferred consideration received |
|
|
— |
|
|
|
— |
|
|
|
3,850 |
|
|
|
45,000 |
|
|
Loan to associate |
|
|
— |
|
|
|
— |
|
|
|
(2,458 |
) |
|
|
(5,000 |
) |
|
Cash paid for acquisition of Bakolobi Property |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(48,258 |
) |
|
Cash paid for acquisition of Oklo Resources Limited |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,130 |
) |
|
Cash acquired on acquisition of Oklo Resources Limited |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,415 |
|
|
Cash paid on exercise of mineral property option |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,737 |
) |
|
Other |
|
|
3,809 |
|
|
|
(2,187 |
) |
|
|
(377 |
) |
|
|
(919 |
) |
|
Cash used by investing activities |
|
|
(287,419 |
) |
|
|
(120,628 |
) |
|
|
(845,339 |
) |
|
|
(388,782 |
) |
| |
|
|
|
|
|
|
|
|
| Increase (decrease) in
cash and cash equivalents |
|
|
179 |
|
|
|
101,840 |
|
|
|
(323,396 |
) |
|
|
(4,269 |
) |
| |
|
|
|
|
|
|
|
|
| Effect of exchange rate
changes on cash and cash equivalents |
|
|
(2,853 |
) |
|
|
650 |
|
|
|
(21,655 |
) |
|
|
(16,784 |
) |
| Cash and cash
equivalents, beginning of period |
|
|
309,569 |
|
|
|
549,456 |
|
|
|
651,946 |
|
|
|
672,999 |
|
| Cash and cash
equivalents, end of period |
|
$ |
306,895 |
|
|
$ |
651,946 |
|
|
$ |
306,895 |
|
|
$ |
651,946 |
|
| |
|
|
|
|
|
|
|
|
| B2GOLD
CORP.CONSOLIDATED BALANCE
SHEETS(Expressed in thousands of United States
dollars) |
| |
| |
| |
|
As at December 31,2023 |
|
|
As at December 31,2022 |
|
| Assets |
|
|
|
|
| Current |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
306,895 |
|
|
$ |
651,946 |
|
|
Accounts receivable, prepaids and other |
|
|
27,491 |
|
|
|
28,811 |
|
|
Deferred consideration receivable |
|
|
— |
|
|
|
3,850 |
|
|
Value-added and other tax receivables |
|
|
29,848 |
|
|
|
18,533 |
|
|
Inventories |
|
|
346,495 |
|
|
|
332,031 |
|
| |
|
|
710,729 |
|
|
|
1,035,171 |
|
| |
|
|
|
|
| Long-term
investments |
|
|
86,007 |
|
|
|
31,865 |
|
| Value-added tax
receivables |
|
|
199,671 |
|
|
|
121,323 |
|
| Mining
interests |
|
|
3,563,490 |
|
|
|
2,274,730 |
|
| Investments in
associates |
|
|
134,092 |
|
|
|
120,049 |
|
| Long-term
stockpile |
|
|
56,497 |
|
|
|
48,882 |
|
| Long-term supplies
inventory |
|
|
43,571 |
|
|
|
— |
|
| Other
assets |
|
|
63,635 |
|
|
|
49,213 |
|
| Deferred income
taxes |
|
|
16,927 |
|
|
|
— |
|
| |
|
$ |
4,874,619 |
|
|
$ |
3,681,233 |
|
| Liabilities |
|
|
|
|
| Current |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
167,117 |
|
|
$ |
114,791 |
|
|
Current income and other taxes payable |
|
|
120,679 |
|
|
|
95,623 |
|
|
Current portion of long-term debt |
|
|
16,256 |
|
|
|
15,519 |
|
|
Current portion of mine restoration provisions |
|
|
3,050 |
|
|
|
5,545 |
|
|
Other current liabilities |
|
|
6,369 |
|
|
|
2,138 |
|
| |
|
|
313,471 |
|
|
|
233,616 |
|
| |
|
|
|
|
| Long-term
debt |
|
|
175,869 |
|
|
|
41,709 |
|
| Gold stream
obligation |
|
|
139,600 |
|
|
|
— |
|
| Mine restoration
provisions |
|
|
104,607 |
|
|
|
95,568 |
|
| Deferred income
taxes |
|
|
188,106 |
|
|
|
182,515 |
|
| Employee benefits
obligation |
|
|
19,171 |
|
|
|
8,121 |
|
| Other long-term
liabilities |
|
|
23,820 |
|
|
|
7,915 |
|
| |
|
|
964,644 |
|
|
|
569,444 |
|
| Equity |
|
|
|
|
| Shareholders’
equity |
|
|
|
|
|
Share capital |
|
|
3,454,811 |
|
|
|
2,487,624 |
|
|
Contributed surplus |
|
|
84,970 |
|
|
|
78,232 |
|
|
Accumulated other comprehensive loss |
|
|
(125,256 |
) |
|
|
(145,869 |
) |
|
Retained earnings |
|
|
395,854 |
|
|
|
588,139 |
|
| |
|
|
3,810,379 |
|
|
|
3,008,126 |
|
| Non-controlling
interests |
|
|
99,596 |
|
|
|
103,663 |
|
| |
|
|
3,909,975 |
|
|
|
3,111,789 |
|
| |
|
$ |
4,874,619 |
|
|
$ |
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 annual
consolidated financial statements on a consolidated and a
mine-by-mine basis (dollars in thousands):
| |
For the three months ended December 31, 2023 |
|
|
FekolaMine |
MasbateMine |
OtjikotoMine |
Total |
Calibre equity investment |
GrandTotal |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
82,921 |
43,733 |
37,752 |
164,406 |
17,395 |
181,801 |
| Royalties and production
taxes |
20,891 |
6,185 |
5,966 |
33,042 |
1,418 |
34,460 |
| |
|
|
|
|
|
|
| Total cash costs |
103,812 |
49,918 |
43,718 |
197,448 |
18,813 |
216,261 |
| |
|
|
|
|
|
|
| Gold sold (ounces) |
128,321 |
53,500 |
75,100 |
256,921 |
18,059 |
274,980 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/gold ounce sold) |
646 |
817 |
503 |
640 |
963 |
661 |
| |
|
|
|
|
|
|
| Total cash costs per ounce
($/gold ounce sold) |
809 |
933 |
582 |
769 |
1,042 |
786 |
| |
For the three months ended December 31, 2022 |
|
|
FekolaMine |
MasbateMine |
OtjikotoMine |
Total |
Calibre equity investment |
GrandTotal |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
85,053 |
47,228 |
27,278 |
159,559 |
16,636 |
176,195 |
| Royalties and production
taxes |
32,660 |
5,757 |
3,316 |
41,733 |
1,137 |
42,870 |
| |
|
|
|
|
|
|
| Total cash costs |
117,713 |
52,985 |
30,594 |
201,292 |
17,773 |
219,065 |
| |
|
|
|
|
|
|
| Gold sold (ounces) |
237,800 |
53,865 |
47,690 |
339,355 |
15,141 |
354,496 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/gold ounce sold) |
358 |
877 |
572 |
470 |
1,099 |
497 |
| |
|
|
|
|
|
|
| Total cash costs per ounce
($/gold ounce sold) |
495 |
984 |
642 |
593 |
1,174 |
618 |
| |
For the year ended December 31, 2023 |
|
|
FekolaMine |
MasbateMine |
OtjikotoMine |
Total |
Calibre equity investment |
GrandTotal |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
333,215 |
160,952 |
122,030 |
616,197 |
67,766 |
683,963 |
| Royalties and production
taxes |
95,576 |
23,439 |
16,688 |
135,703 |
5,053 |
140,756 |
| |
|
|
|
|
|
|
| Total cash costs |
428,791 |
184,391 |
138,718 |
751,900 |
72,819 |
824,719 |
| |
|
|
|
|
|
|
| Gold sold (ounces) |
588,460 |
190,800 |
214,800 |
994,060 |
68,725 |
1,062,785 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/gold ounce sold) |
566 |
844 |
568 |
620 |
986 |
644 |
| |
|
|
|
|
|
|
| Total cash costs per ounce
($/gold ounce sold) |
729 |
966 |
646 |
756 |
1,060 |
776 |
| |
For the year ended December 31, 2022 |
|
|
FekolaMine |
MasbateMine |
OtjikotoMine |
Total |
Calibre equity investment |
GrandTotal |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
326,529 |
177,705 |
122,292 |
626,526 |
58,368 |
684,894 |
| Royalties and production
taxes |
83,893 |
22,887 |
11,188 |
117,968 |
4,163 |
122,131 |
| |
|
|
|
|
|
|
| Total cash costs |
410,422 |
200,592 |
133,480 |
744,494 |
62,531 |
807,025 |
| |
|
|
|
|
|
|
| Gold sold (ounces) |
599,600 |
214,015 |
155,540 |
969,155 |
55,117 |
1,024,272 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/gold ounce sold) |
545 |
830 |
786 |
646 |
1,059 |
669 |
| |
|
|
|
|
|
|
| Total cash costs per ounce
($/gold ounce sold) |
684 |
937 |
858 |
768 |
1,135 |
788 |
| |
|
|
|
|
|
|
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 annual consolidated
financial statements on a consolidated and a mine-by-mine basis
(dollars in thousands):
| |
For the three months ended December 31, 2023 |
| |
FekolaMine |
MasbateMine |
|
OtjikotoMine |
|
Total |
Calibre equity investment |
GrandTotal |
| |
$ |
$ |
|
$ |
|
$ |
$ |
$ |
| |
|
|
|
|
|
|
|
Production costs |
82,921 |
43,733 |
|
37,752 |
|
164,406 |
17,395 |
181,801 |
| Inventory sales
adjustment |
3,618 |
(1,430 |
) |
(1,160 |
) |
1,028 |
— |
1,028 |
| |
|
|
|
|
|
|
| Cash operating costs |
86,539 |
42,303 |
|
36,592 |
|
165,434 |
17,395 |
182,829 |
| |
|
|
|
|
|
|
| Gold produced (ounces) |
143,010 |
46,490 |
|
81,111 |
|
270,611 |
18,054 |
288,665 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/gold ounce produced) |
605 |
910 |
|
451 |
|
611 |
963 |
633 |
| |
For the three months ended December 31, 2022 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
Total |
|
Calibre equityinvestment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Production costs |
85,053 |
|
47,228 |
|
27,278 |
159,559 |
|
16,636 |
176,195 |
|
| Inventory sales
adjustment |
(82 |
) |
(4,781 |
) |
662 |
(4,201 |
) |
— |
(4,201 |
) |
| |
|
|
|
|
|
|
| Cash operating costs |
84,971 |
|
42,447 |
|
27,940 |
155,358 |
|
16,636 |
171,994 |
|
| |
|
|
|
|
|
|
| Gold produced (ounces) |
244,014 |
|
48,687 |
|
60,068 |
352,769 |
|
15,101 |
367,870 |
|
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/gold ounce produced) |
348 |
|
872 |
|
465 |
440 |
|
1,102 |
468 |
|
| |
For the year ended December 31, 2023 |
|
|
FekolaMine |
MasbateMine |
OtjikotoMine |
Total |
Calibre equityinvestment |
GrandTotal |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Production costs |
333,215 |
160,952 |
122,030 |
616,197 |
67,766 |
683,963 |
| Inventory sales
adjustment |
4,161 |
5,362 |
72 |
9,595 |
— |
9,595 |
| |
|
|
|
|
|
|
| Cash operating costs |
337,376 |
166,314 |
122,102 |
625,792 |
67,766 |
693,558 |
| |
|
|
|
|
|
|
| Gold produced (ounces) |
590,243 |
193,502 |
208,598 |
992,343 |
68,717 |
1,061,060 |
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/gold ounce produced) |
572 |
859 |
585 |
631 |
986 |
654 |
| |
For the year ended December 31, 2022 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Production costs |
326,529 |
|
177,705 |
|
122,292 |
626,526 |
|
58,368 |
684,894 |
|
| Inventory sales
adjustment |
(4,959 |
) |
(3,895 |
) |
1,938 |
(6,916 |
) |
— |
(6,916 |
) |
| |
|
|
|
|
|
|
| Cash operating costs |
321,570 |
|
173,810 |
|
124,230 |
619,610 |
|
58,368 |
677,978 |
|
| |
|
|
|
|
|
|
| Gold produced (ounces) |
598,661 |
|
212,728 |
|
161,614 |
973,003 |
|
54,871 |
1,027,874 |
|
| |
|
|
|
|
|
|
| Cash operating costs per ounce
($/ gold ounce produced) |
537 |
|
817 |
|
769 |
637 |
|
1,064 |
660 |
|
| |
|
|
|
|
|
|
|
|
|
|
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 table below shows a reconciliation of all-in
sustaining costs per ounce to production costs as extracted from
the annual consolidated financial statements on a consolidated and
a mine-by-mine basis (dollars in thousands):
| |
For the three months ended December 31, 2023 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
|
Corporate |
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
|
| Production costs |
82,921 |
|
43,733 |
|
37,752 |
|
— |
164,406 |
|
17,395 |
181,801 |
|
| Royalties and production
taxes |
20,891 |
|
6,185 |
|
5,966 |
|
— |
33,042 |
|
1,418 |
34,460 |
|
| Corporate administration |
4,760 |
|
1,159 |
|
1,190 |
|
14,032 |
21,141 |
|
813 |
21,954 |
|
| Share-based payments –
RSUs/DSUs/PSUs/RPUs(1) |
34 |
|
— |
|
— |
|
3,706 |
3,740 |
|
— |
3,740 |
|
| Community relations |
1,087 |
|
40 |
|
195 |
|
— |
1,322 |
|
— |
1,322 |
|
| Reclamation liability
accretion |
433 |
|
322 |
|
324 |
|
— |
1,079 |
|
— |
1,079 |
|
| Realized gains on fuel derivative
contracts |
(1,393 |
) |
(1,038 |
) |
(277 |
) |
— |
(2,708 |
) |
— |
(2,708 |
) |
| Sustaining lease
expenditures |
818 |
|
306 |
|
(49 |
) |
490 |
1,565 |
|
— |
1,565 |
|
| Sustaining capital
expenditures(2) |
73,764 |
|
8,049 |
|
14,797 |
|
— |
96,610 |
|
1,191 |
97,801 |
|
| Sustaining mine
exploration(2) |
2,022 |
|
1,067 |
|
1,410 |
|
— |
4,499 |
|
38 |
4,537 |
|
| |
|
|
|
|
|
|
|
| Total all-in sustaining
costs |
185,337 |
|
59,823 |
|
61,308 |
|
18,228 |
324,696 |
|
20,855 |
345,551 |
|
| |
|
|
|
|
|
|
|
| Gold sold (ounces) |
128,321 |
|
53,500 |
|
75,100 |
|
— |
256,921 |
|
18,059 |
274,980 |
|
| |
|
|
|
|
|
|
|
| All-in sustaining cost per
ounce ($/gold ounce sold) |
1,444 |
|
1,118 |
|
816 |
|
— |
1,264 |
|
1,155 |
1,257 |
|
(1) Included as a component of Share-based
payments on the Consolidated 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 annual consolidated financial
statements on a consolidated and a mine-by-mine basis (dollars in
thousands):
| |
For the three months ended December 31, 2023 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
Total |
|
Calibre equityinvestment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine capital
expenditures |
87,830 |
|
9,195 |
|
14,797 |
111,822 |
|
1,191 |
113,013 |
|
| Road construction |
(52 |
) |
— |
|
— |
(52 |
) |
— |
(52 |
) |
| Fekola underground |
(14,014 |
) |
— |
|
— |
(14,014 |
) |
— |
(14,014 |
) |
| Other |
— |
|
(948 |
) |
— |
(948 |
) |
— |
(948 |
) |
| Land acquisitions |
— |
|
(198 |
) |
— |
(198 |
) |
— |
(198 |
) |
| |
|
|
|
|
|
|
| Sustaining capital
expenditures |
73,764 |
|
8,049 |
|
14,797 |
96,610 |
|
1,191 |
97,801 |
|
| |
|
|
|
|
|
|
|
|
|
|
The table below shows a reconciliation of
sustaining mine exploration to operating mine exploration as
extracted from the annual consolidated financial statements on a
consolidated and a mine-by-mine basis (dollars in thousands):
| |
For the three months ended December 31, 2023 |
|
|
FekolaMine |
MasbateMine |
OtjikotoMine |
Total |
Calibre equity investment |
GrandTotal |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Operating mine
exploration |
2,022 |
1,067 |
1,410 |
4,499 |
38 |
4,537 |
| Regional exploration |
— |
— |
— |
— |
— |
— |
| |
|
|
|
|
|
|
| Sustaining mine
exploration |
2,022 |
1,067 |
1,410 |
4,499 |
38 |
4,537 |
| |
|
|
|
|
|
|
The tables below show a reconciliation of all-in
sustaining costs per ounce to production costs as extracted from
the annual consolidated financial statements on a consolidated and
a mine-by-mine basis (dollars in thousands):
| |
For the three months ended December 31, 2022 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
|
Corporate |
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
|
| Production costs |
85,053 |
|
47,228 |
|
27,278 |
|
— |
159,559 |
|
16,636 |
176,195 |
|
| Royalties and production
taxes |
32,660 |
|
5,757 |
|
3,316 |
|
— |
41,733 |
|
1,137 |
42,870 |
|
| Corporate administration |
3,955 |
|
1,201 |
|
1,290 |
|
14,272 |
20,718 |
|
768 |
21,486 |
|
| Share-based payments –
RSUs/DSUs/PSUs/RPUs(1) |
— |
|
— |
|
— |
|
4,157 |
4,157 |
|
— |
4,157 |
|
| Community relations |
564 |
|
81 |
|
148 |
|
— |
793 |
|
— |
793 |
|
| Reclamation liability
accretion |
300 |
|
286 |
|
216 |
|
— |
802 |
|
— |
802 |
|
| Realized gains on fuel derivative
contracts |
(1,189 |
) |
(1,910 |
) |
(745 |
) |
— |
(3,844 |
) |
— |
(3,844 |
) |
| Sustaining lease
expenditures |
348 |
|
295 |
|
129 |
|
445 |
1,217 |
|
— |
1,217 |
|
| Sustaining capital
expenditures(2) |
45,790 |
|
9,378 |
|
13,480 |
|
— |
68,648 |
|
204 |
68,852 |
|
| Sustaining mine
exploration(2) |
985 |
|
1,648 |
|
922 |
|
— |
3,555 |
|
— |
3,555 |
|
| |
|
|
|
|
|
|
|
| Total all-in sustaining
costs |
168,466 |
|
63,964 |
|
46,034 |
|
18,874 |
297,338 |
|
18,745 |
316,083 |
|
| |
|
|
|
|
|
|
|
| Gold sold (ounces) |
237,800 |
|
53,865 |
|
47,690 |
|
— |
339,355 |
|
15,141 |
354,496 |
|
| |
|
|
|
|
|
|
|
| All-in sustaining cost per
ounce ($/gold ounce sold) |
708 |
|
1,187 |
|
965 |
|
— |
876 |
|
1,238 |
892 |
|
(1) Included as a component of Share-based payments on the
Consolidated 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 annual consolidated financial
statements on a consolidated and a mine-by-mine basis (dollars in
thousands):
| |
For the three months ended December 31, 2022 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
|
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine capital
expenditures |
48,843 |
|
9,620 |
|
19,521 |
|
77,984 |
|
204 |
78,188 |
|
| Cardinal mobile equipment |
(947 |
) |
— |
|
— |
|
(947 |
) |
— |
(947 |
) |
| Tailings facility life-of-mine
study |
(887 |
) |
— |
|
— |
|
(887 |
) |
— |
(887 |
) |
| Fekola underground study |
(740 |
) |
— |
|
— |
|
(740 |
) |
— |
(740 |
) |
| Other |
(479 |
) |
— |
|
(87 |
) |
(566 |
) |
— |
(566 |
) |
| Land acquisitions |
— |
|
(242 |
) |
— |
|
(242 |
) |
— |
(242 |
) |
| Underground development |
— |
|
— |
|
(5,466 |
) |
(5,466 |
) |
— |
(5,466 |
) |
| National power grid
connection |
— |
|
— |
|
(488 |
) |
(488 |
) |
— |
(488 |
) |
| |
|
|
|
|
|
|
| Sustaining capital
expenditures |
45,790 |
|
9,378 |
|
13,480 |
|
68,648 |
|
204 |
68,852 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
The table below shows a reconciliation of
sustaining mine exploration to operating mine exploration as
extracted from the annual consolidated financial statements on a
consolidated and a mine-by-mine basis (dollars in thousands):
| |
For the three months ended December 31, 2022 |
|
|
FekolaMine |
|
MasbateMine |
OtjikotoMine |
|
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
$ |
|
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine
exploration |
1,366 |
|
1,648 |
1,201 |
|
4,215 |
|
— |
4,215 |
|
| Regional exploration |
(381 |
) |
— |
(279 |
) |
(660 |
) |
— |
(660 |
) |
| |
|
|
|
|
|
|
| Sustaining mine
exploration |
985 |
|
1,648 |
922 |
|
3,555 |
|
— |
3,555 |
|
| |
|
|
|
|
|
|
|
|
|
|
The tables below show a reconciliation of all-in
sustaining costs per ounce to production costs as extracted from
the annual consolidated financial statements on a consolidated and
a mine-by-mine basis (dollars in thousands):
| |
For the year ended December 31, 2023 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
|
Corporate |
Total |
|
Calibreequityinvestment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
|
| Production costs |
333,215 |
|
160,952 |
|
122,030 |
|
— |
616,197 |
|
67,766 |
683,963 |
|
| Royalties and production
taxes |
95,576 |
|
23,439 |
|
16,688 |
|
— |
135,703 |
|
5,053 |
140,756 |
|
| Corporate administration |
12,201 |
|
2,921 |
|
5,339 |
|
41,850 |
62,311 |
|
2,794 |
65,105 |
|
| Share-based payments –
RSUs/DSUs/PSUs/RPUs(1) |
43 |
|
— |
|
— |
|
16,188 |
16,231 |
|
— |
16,231 |
|
| Community relations |
3,773 |
|
163 |
|
1,269 |
|
— |
5,205 |
|
— |
5,205 |
|
| Reclamation liability
accretion |
1,552 |
|
1,181 |
|
1,181 |
|
— |
3,914 |
|
— |
3,914 |
|
| Realized gains on fuel derivative
contracts |
(4,169 |
) |
(3,824 |
) |
(1,206 |
) |
— |
(9,199 |
) |
— |
(9,199 |
) |
| Sustaining lease
expenditures |
1,935 |
|
1,218 |
|
1,145 |
|
1,891 |
6,189 |
|
— |
6,189 |
|
| Sustaining capital
expenditures(2) |
255,026 |
|
28,194 |
|
61,063 |
|
— |
344,283 |
|
8,518 |
352,801 |
|
| Sustaining mine
exploration(2) |
3,728 |
|
3,808 |
|
3,863 |
|
— |
11,399 |
|
57 |
11,456 |
|
| |
|
|
|
|
|
|
|
| Total all-in sustaining
costs |
702,880 |
|
218,052 |
|
211,372 |
|
59,929 |
1,192,233 |
|
84,188 |
1,276,421 |
|
| |
|
|
|
|
|
|
|
| Gold sold (ounces) |
588,460 |
|
190,800 |
|
214,800 |
|
— |
994,060 |
|
68,725 |
1,062,785 |
|
| |
|
|
|
|
|
|
|
| All-in sustaining cost per
ounce ($/gold ounce sold) |
1,194 |
|
1,143 |
|
984 |
|
— |
1,199 |
|
1,225 |
1,201 |
|
(1) Included as a component of Share-based payments on the
Consolidated 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 annual consolidated financial statements on a consolidated
and a mine-by-mine basis (dollars in thousands):
| |
For the year ended December 31, 2023 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine capital
expenditures |
298,942 |
|
30,142 |
|
61,063 |
390,147 |
|
8,518 |
398,665 |
|
| Road construction |
(5,335 |
) |
— |
|
— |
(5,335 |
) |
— |
(5,335 |
) |
| Fekola underground |
(38,581 |
) |
— |
|
— |
(38,581 |
) |
— |
(38,581 |
) |
| Land acquisitions |
— |
|
(198 |
) |
— |
(198 |
) |
— |
(198 |
) |
| Other |
— |
|
(1,750 |
) |
— |
(1,750 |
) |
— |
(1,750 |
) |
| |
|
|
|
|
|
|
| Sustaining capital
expenditures |
255,026 |
|
28,194 |
|
61,063 |
344,283 |
|
8,518 |
352,801 |
|
| |
|
|
|
|
|
|
|
|
|
|
The table below shows a reconciliation of
sustaining mine exploration to operating mine exploration as
extracted from the annual consolidated financial statements
(dollars in thousands):
| |
For the year ended December 31, 2023 |
|
|
FekolaMine |
MasbateMine |
OtjikotoMine |
Total |
Calibre equity investment |
GrandTotal |
| |
$ |
$ |
$ |
$ |
$ |
$ |
| |
|
|
|
|
|
|
| Operating mine
exploration |
3,728 |
3,808 |
3,863 |
11,399 |
57 |
11,456 |
| Regional exploration |
— |
— |
— |
— |
— |
— |
| |
|
|
|
|
|
|
| Sustaining mine
exploration |
3,728 |
3,808 |
3,863 |
11,399 |
57 |
11,456 |
| |
|
|
|
|
|
|
The tables below show a reconciliation of all-in
sustaining costs per ounce to production costs as extracted from
the annual consolidated financial statements on a consolidated and
a mine-by-mine basis (dollars in thousands):
| |
For the year ended December 31, 2022 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
|
Corporate |
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
|
$ |
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
|
| Production costs |
326,529 |
|
177,705 |
|
122,292 |
|
— |
626,526 |
|
58,368 |
684,894 |
|
| Royalties and production
taxes |
83,893 |
|
22,887 |
|
11,188 |
|
— |
117,968 |
|
4,163 |
122,131 |
|
| Corporate administration |
10,093 |
|
3,019 |
|
5,380 |
|
35,987 |
54,479 |
|
3,101 |
57,580 |
|
| Share-based payments –
RSUs/DSUs/PSUs/RPUs(1) |
— |
|
— |
|
— |
|
15,314 |
15,314 |
|
— |
15,314 |
|
| Community relations |
1,311 |
|
272 |
|
1,155 |
|
— |
2,738 |
|
— |
2,738 |
|
| Reclamation liability
accretion |
942 |
|
940 |
|
688 |
|
— |
2,570 |
|
— |
2,570 |
|
| Realized gains on fuel derivative
contracts |
(11,097 |
) |
(12,766 |
) |
(5,549 |
) |
— |
(29,412 |
) |
— |
(29,412 |
) |
| Sustaining lease
expenditures |
871 |
|
1,230 |
|
2,307 |
|
2,208 |
6,616 |
|
— |
6,616 |
|
| Sustaining capital
expenditures(2) |
100,479 |
|
38,265 |
|
40,572 |
|
— |
179,316 |
|
2,603 |
181,919 |
|
| Sustaining mine
exploration(2) |
6,805 |
|
4,759 |
|
2,522 |
|
— |
14,086 |
|
— |
14,086 |
|
| |
|
|
|
|
|
|
|
| Total all-in sustaining
costs |
519,826 |
|
236,311 |
|
180,555 |
|
53,509 |
990,201 |
|
68,235 |
1,058,436 |
|
| |
|
|
|
|
|
|
|
| Gold sold (ounces) |
599,600 |
|
214,015 |
|
155,540 |
|
— |
969,155 |
|
55,117 |
1,024,272 |
|
| |
|
|
|
|
|
|
|
| All-in sustaining cost per
ounce ($/gold ounce sold) |
867 |
|
1,104 |
|
1,161 |
|
— |
1,022 |
|
1,238 |
1,033 |
|
(1) Included as a component of Share-based payments on the
Consolidated 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 annual consolidated financial
statements (dollars in thousands):
| |
For the year ended December 31, 2022 |
|
|
FekolaMine |
|
MasbateMine |
|
OtjikotoMine |
|
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine capital
expenditures |
117,622 |
|
39,528 |
|
79,096 |
|
236,246 |
|
2,603 |
238,849 |
|
| Cardinal mobile equipment |
(9,849 |
) |
— |
|
— |
|
(9,849 |
) |
— |
(9,849 |
) |
| Tailings facility life-of-mine
study |
(5,216 |
) |
— |
|
— |
|
(5,216 |
) |
— |
(5,216 |
) |
| Fekola underground study |
(1,378 |
) |
— |
|
— |
|
(1,378 |
) |
— |
(1,378 |
) |
| Land acquisitions |
— |
|
(1,229 |
) |
— |
|
(1,229 |
) |
— |
(1,229 |
) |
| Other |
(700 |
) |
(34 |
) |
(449 |
) |
(1,183 |
) |
— |
(1,183 |
) |
| Underground development |
— |
|
— |
|
(32,783 |
) |
(32,783 |
) |
— |
(32,783 |
) |
| National power grid
connection |
— |
|
— |
|
(5,292 |
) |
(5,292 |
) |
— |
(5,292 |
) |
| |
|
|
|
|
|
|
| Sustaining capital
expenditures |
100,479 |
|
38,265 |
|
40,572 |
|
179,316 |
|
2,603 |
181,919 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
The table below shows a reconciliation of
sustaining mine exploration to operating mine exploration as
extracted from the annual consolidated financial statements
(dollars in thousands):
| |
For the year ended December 31, 2022 |
|
|
FekolaMine |
|
MasbateMine |
OtjikotoMine |
|
Total |
|
Calibre equity investment |
GrandTotal |
|
| |
$ |
|
$ |
$ |
|
$ |
|
$ |
$ |
|
| |
|
|
|
|
|
|
| Operating mine
exploration |
15,214 |
|
4,759 |
3,476 |
|
23,449 |
|
— |
23,449 |
|
| Regional exploration |
(8,409 |
) |
— |
(954 |
) |
(9,363 |
) |
— |
(9,363 |
) |
| |
|
|
|
|
|
|
| Sustaining mine
exploration |
6,805 |
|
4,759 |
2,522 |
|
14,086 |
|
— |
14,086 |
|
| |
|
|
|
|
|
|
|
|
|
|
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 (loss) income to
adjusted net income as extracted from the annual consolidated
financial statements is set out in the table below:
|
|
Three months ended |
Year ended |
| |
December 31, |
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
| |
$ |
$ |
$ |
$ |
| |
(000’s) |
(000’s) |
(000’s) |
(000’s) |
| |
|
|
|
|
| Net (loss) income attributable to
shareholders of the Company for the period: |
(113,224 |
) |
157,756 |
|
10,097 |
|
252,873 |
|
| Adjustments for non-recurring
items and significant recurring non-cash items: |
|
|
|
|
|
Impairment (reversal) of long-lived assets |
187,964 |
|
— |
|
304,446 |
|
(909 |
) |
|
Write-down of mining interests |
2,921 |
|
4,905 |
|
19,905 |
|
11,778 |
|
|
Loss on sale of mining interest |
— |
|
— |
|
— |
|
2,804 |
|
|
Unrealized loss on derivative instruments |
4,101 |
|
3,171 |
|
4,500 |
|
10,442 |
|
|
Office lease termination costs |
— |
|
— |
|
1,946 |
|
— |
|
|
Loan receivable provision |
— |
|
— |
|
2,085 |
|
— |
|
|
Change in fair value of gold stream |
18,800 |
|
— |
|
12,300 |
|
— |
|
|
Dilution gain on investment in Calibre |
943 |
|
(172 |
) |
943 |
|
(5,630 |
) |
|
Non-cash interest income on deferred consideration receivable |
— |
|
— |
|
— |
|
(2,806 |
) |
|
Deferred income tax recovery |
(10,808 |
) |
(44,218 |
) |
(9,019 |
) |
(4,770 |
) |
| |
|
|
|
|
| Adjusted net income
attributable to shareholders of the Company for the
period |
90,697 |
|
121,442 |
|
347,203 |
|
263,782 |
|
| |
|
|
|
|
| Basic weighted average number of
common shares outstanding (in thousands) |
1,300,791 |
|
1,074,448 |
|
1,232,092 |
|
1,064,259 |
|
| |
|
|
|
|
| Adjusted net earnings
attributable to shareholders of the Company per share–basic
($/share) |
0.07 |
|
0.11 |
|
0.28 |
|
0.25 |
|
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
B2Gold (AMEX:BTG)
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From Mar 2024 to Apr 2024
B2Gold (AMEX:BTG)
Historical Stock Chart
From Apr 2023 to Apr 2024
