VANCOUVER, August 5, 2020
/CNW/ - B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX:
B2G) ("B2Gold" or the "Company") is pleased to announce strong
operational and financial results for the second quarter and first
half of 2020 and the doubling of the Company's quarterly dividend
to $0.04 per share. The Company
previously released its gold production and gold revenue results
for the second quarter and first half of 2020. All dollar figures
are in United States dollars
unless otherwise indicated.
2020 Second Quarter Highlights
- Consolidated gold production of 239,574 ounces from the
Company's three operating mines, above budget by 3% (7,327 ounces)
and a significant increase of 15% (30,684 ounces) over the second
quarter of 2019 (excluding discontinued operations of El Limon and
La Libertad)
- Total gold production of 241,593 ounces (including 2,019 ounces
of attributable production from Calibre Mining Corp.
("Calibre"))
- Record quarterly consolidated gold revenue of $442 million, a significant increase of
$175 million (65%) over the second
quarter of 2019 (excluding discontinued operations)
- Record quarterly consolidated cash flow provided by operating
activities from the Company's three operating mines of $238 million, a significant increase of
$145 million (156%) over the second
quarter of 2019
- Consolidated cash operating costs (see "Non-IFRS
Measures") of $385 per ounce
produced, well below budget by $30
per ounce (7%), and consolidated all-in sustaining costs ("AISC")
(see "Non-IFRS Measures") of $714 per ounce sold, well-below budget by
$93 per ounce (12%)
- Net income attributable to the shareholders of the Company of
$124 million ($0.12 per share); adjusted net income (see
"Non-IFRS Measures") attributable to the shareholders of the
Company of $119 million ($0.11 per share)
- The Fekola Mine continues to operate unimpeded and no
operational days have been lost due to the recent political
developments and demonstrations in Mali
- No Lost-Time-Injury ("LTI") incidents at the Company's
operating mines during the second quarter; the Otjikoto and Masbate
Mines continued their remarkable safety performance extending the
number of days without an LTI to 826 days for Otjikoto and 592 days
for Masbate as at June 30, 2020
- B2Gold remains well positioned for continued strong operational
and financial performance. Total consolidated production guidance
remains at between 1,000,000 and 1,055,000 ounces of gold; total
consolidated cash operating costs are forecast to be between
$415 and $455 per ounce and total consolidated AISC are
forecast to be between $780 and
$820 per ounce.
2020 First Half Highlights
- Record half-year consolidated gold production from the
Company's three operating mines of 490,206 ounces, well above
budget by 5% (23,483 ounces) and a significant increase of 20%
(80,774 ounces) over the first half of 2019 (excluding discontinued
operations); with solid performances from all the Company's
operations (all exceeding their budgeted production for the first
half of 2020)
- Total gold production of 506,455 ounces (including 16,249
ounces of attributable production from Calibre)
- Record half-year consolidated gold revenue of $822 million, a significant increase of
$291 million (55%) over the first
half of 2019 (excluding discontinued operations)
- Record half-year consolidated cash flow provided by operating
activities of $454 million, a
significant increase of $275 million
(154%) over the first half of 2019
- Consolidated cash operating costs of $376 per ounce produced, well below budget by
$42 per ounce (10%), and consolidated
AISC of $705 per ounce sold, well
below budget by $101 per ounce
(13%)
- Net income attributable to the shareholders of the Company of
$197 million ($0.19 per share); adjusted net income
attributable to the shareholders of the Company of $218 million ($0.21
per share)
- B2Gold maintains a strong financial position and liquidity; the
Company was in a net cash position of $157
million as at June 30, 2020,
with its cash and cash equivalents of $628
million exceeding its debt balances of $471 million
- Based on current assumptions, including a gold price of
$1,900 per ounce for the balance of
2020, the Company expects to generate cashflows from operating
activities of more than $900 million
in 2020
The Company is also pleased to announce that in light of the
current higher gold price environment, the Company's strong
operational performance and the fact that the Company has now
reached a net positive cash position, the B2Gold Board has decided
to increase the quarterly dividend to $0.04 per share (or an expected $0.16 per share on an annual basis), which will
become effective upon approval and declaration of the third quarter
dividend. This represents a further 100% increase from the second
quarter of 2020 dividend and four times higher than the initial
quarterly dividend of $0.01 per share
declared in the fourth quarter of 2019. The declaration and payment
of future quarterly dividends remains at the discretion of the
B2Gold Board and will depend on the Company's financial results,
cash requirements, future prospects and other factors deemed
relevant by the B2Gold Board.
The Company has been monitoring the COVID-19 pandemic and the
potential impact at B2Gold's operations since mid-February 2020. B2Gold places the safety and
well-being of its workforce as the highest priority and continues
to encourage input from all its stakeholders as the situation
continues to evolve. The Company has implemented several measures
and introduced additional precautionary steps to manage and respond
to the risks associated with COVID-19 to ensure the safety of
B2Gold's employees, contractors, suppliers and surrounding
communities where the Company works while continuing to operate.
The Company is continually updating the plan and response measures
based on the safety and well-being of its workforce, the severity
of the pandemic in areas where it operates, global response
measures, government restrictions and extensive community
consultation. The Company is working closely with national and
local authorities and continues to closely monitor each site's
situation, including public and employee sentiment to ensure that
stakeholders are in alignment with continued operation, while
ensuring the safe operation of its mines.
2020 Second Quarter and First Half Operational Results and
Development
Consolidated gold production in the second quarter of
2020 was 239,574 ounces, above budget by 3% (7,327
ounces) and a significant increase of 15% (30,684 ounces)
over the second quarter of 2019 (excluding discontinued
operations) with solid performances from all the Company's
operations. The significant increase in gold production over the
second quarter of 2019 was driven by the Fekola Mine in
Mali which continued its very
strong operational performance with gold production of 147,424
ounces, well above budget by 5% (6,424 ounces), and 29% (33,527
ounces) higher compared to the second quarter of 2019. Fekola's
significant increase in gold production over the second quarter of
2019 was mainly due to the expansion of the Fekola mining fleet and
optimization of the pit designs and mine plan for 2020, which have
provided access to higher grade portions of the Fekola deposit
earlier than anticipated in previous mine plans. The Otjikoto Mine
in Namibia also had a solid second
quarter, producing 43,496 ounces of gold, 3% (1,342 ounces) above
budget, and 16% (6,075 ounces) higher compared to the second
quarter of 2019. The Masbate Mine in the
Philippines continued to perform well through the second
quarter of 2020, despite being temporarily limited by a reduced
workforce due to COVID-19 restrictions, producing 48,654 ounces of
gold, approximately in-line with budget. Including attributable
ounces from Calibre (2,019 ounces), the Company's total gold
production in the second quarter of 2020 was 241,593 ounces.
For the second quarter of 2020, consolidated cash operating
costs were $385 per ounce produced
($377 per ounce sold), well below
budget by $30 (7%) per ounce produced
and significantly less than the second quarter of 2019 by
$71 (16%) per ounce produced
(excluding discontinued operations), reflecting the strong
operating results from all of the Company's operations. Including
estimated attributable results for Calibre, the Company's total
cash operating costs were $390 per ounce produced
($383 per ounce sold).
For the second quarter of 2020, consolidated AISC were
$714 per ounce sold, well below both budget by $93 per
ounce (12%) and the second quarter of 2019 by $93 per ounce
(12%) (excluding discontinued operations). The favourable
budget variance reflected lower-than-budgeted cash operating
costs and general and administrative costs,
lower-than-budgeted sustaining capital and exploration
expenditures and higher-than-budgeted gold ounces sold. The
lower-than-budgeted sustaining capital and exploration expenditures
was mainly due to the timing of expenditures and are expected to be
incurred later in 2020, with the exception of approximately
$8 million relating to the Fekola
tailings storage facility project and Otjikoto pre-stripping, which
are not expected to be incurred in 2020. Including estimated
attributable results for Calibre, the Company's total AISC for the
second quarter of 2020 were $712 per ounce sold.
Consolidated gold production for the first half of 2020 was a
half-year record of 490,206 ounces, 5% (23,483 ounces) above budget
and 20% (80,774 ounces) higher than the first half of 2019
(excluding discontinued operations). Including attributable ounces
from Calibre (16,249 ounces), the Company's total gold production
in the first half of 2020 was 506,455 ounces.
For the first half of 2020, consolidated cash operating costs
were $376 per ounce produced
($380 per ounce sold), well below
budget by $42 (10%) per ounce
produced and significantly less than the first half of 2019 by
$79 (17%) per ounce produced
(excluding discontinued operations). Including estimated
attributable results for Calibre, the Company's total cash
operating costs were $390 per ounce produced ($394 per
ounce sold).
For the first half of 2020, consolidated AISC were $705 per ounce sold, well below both budget by
$101 (13%) per ounce sold and the
first half of 2019 by $70 (9%) per
ounce sold (excluding discontinued operations). Including estimated
attributable results for Calibre, the Company's total AISC for the
first half of 2020 were $717 per ounce sold.
Based on current assumptions for 2020, B2Gold remains well
positioned for continued strong operational and financial
performance. On June 24, 2020,
Calibre provided revised reduced 2020 production guidance following
the temporary suspension of its Nicaraguan operations due to
COVID-19. The Company's attributable gold production from Calibre
is now estimated to be between 37,000 and 42,000 ounces for 2020
(or 8,000 ounces lower than the original estimate of between 45,000
and 50,000 ounces of gold). However, given that the Company's three
operating mines were 23,483 ounces ahead of budget at the end of
the first half of 2020, the Company continues to maintain its
overall total consolidated production and financial guidance.
Therefore, total consolidated production guidance remains at
between 1,000,000 and 1,055,000 ounces of gold; total consolidated
cash operating costs are forecast to be between $415 and $455 per
ounce and total consolidated AISC are forecast to be between
$780 and $820 per ounce.
The Company's expansion and development projects also progressed
well through the second quarter of 2020:
- At Fekola, the mine expansion project remains on schedule to be
completed by the end of the third quarter of 2020. Mining fleet
expansion equipment (including excavators, trucks, and drill rigs)
continued to arrive on site and be commissioned throughout the
second quarter. The mill expansion continues to be on schedule and
was approximately 75% complete by the end of June 2020. The mill expansion commissioning team
arrived on site in late July and the mill expansion is expected to
be fully commissioned by the end of the third quarter 2020.
- At Otjikoto, engineering of the Wolfshag underground mine
continued and an underground mining contractor bid process was held
in the second quarter of 2020 for the development of the
underground workings up to the production stopes. Development of
the portal and primary ramp is expected to commence in the fourth
quarter of 2020 and stope ore production is expected to commence in
early 2022, in-line with original estimates. However due to
COVID-19 related delays, approximately $4
million of the related capital costs are now expected to be
incurred in 2021 rather than in the current year.
- At the Gramalote project, operations restarted on May 4, 2020 (following a temporary shutdown due
to COVID-19) for Environmental Impact Assessment related field
activities, with exploration drilling recommencing on May 11, 2020. During the shutdown, other aspects
of the Feasibility Study such as mine engineering review,
metallurgical investigations and process plant design development
continued to advance. Ongoing exploration work continues with a
focus on infill drilling of the Inferred Mineral Resource which is
expected to be completed in August
2020. As previously announced, the Company now expects to
complete the Feasibility Study in the first quarter of 2021.
2020 Second Quarter and First Half Financial Results
Consolidated gold revenue in the second quarter of 2020 was a
quarterly record of $442 million from
the Company's three operating mines on sales of 257,100 ounces at
an average price of $1,719 per ounce
compared to $267 million on sales of
203,700 ounces at an average price of $1,312 per ounce in the second quarter of 2019
(excluding discontinued operations). Compared to the second quarter
of 2019, the significant increase in consolidated gold revenue of
65% ($175 million) was mainly
attributable to a 31% increase in the average realized gold price
and a 26% increase in gold ounces sold (due to the higher gold
production and timing of gold sales).
For the second quarter of 2020, cash flow provided by operating
activities was a quarterly record of $238
million compared to $93
million in the second quarter of 2019. This significant
increase of $145 million (156%)
reflected the significant increase in gold revenue, as a result of
higher realized gold prices and sales.
For the second quarter of 2020, net income was $138 million compared to $41 million for the second quarter of 2019. Net
income attributable to the shareholders of the Company was
$124 million ($0.12 per share) compared to $38 million ($0.04
per share) for the second quarter of 2019. Adjusted net income
attributable to shareholders of the Company (see "Non-IFRS
Measures") was $119 million
($0.11 per share) compared to
$49 million ($0.05 per share) for the second quarter of
2019.
Consolidated gold revenue for the first half of 2020 was a
half-year record of $822 million on
sales of 496,600 ounces at an average price of $1,656 per ounce compared to $531 million on sales of 407,100 ounces at an
average price of $1,305 per ounce in
the first half of 2019 (excluding discontinued operations). The
significant increase in consolidated gold revenue of $291 million (55%) was mainly attributable to a
27% increase in the average realized gold price and a 22% increase
in gold ounces sold.
For the first half of 2020, cash flow provided by operating
activities was a half-year record of $454
million, a significant increase of $275 million (154%) compared to the first half of
2019, as a result of higher realized gold prices and sales.
For the first half of 2020, net income was $221 million compared to $68 million for the first half of 2019. Net
income attributable to the shareholders of the Company was
$197 million ($0.19 per share) compared to $60 million ($0.06
per share) for the first half of 2019. Adjusted net income
attributable to the shareholders of the Company was $218 million ($0.21
per share) compared to adjusted net income of $80 million ($0.08
per share) for the first half of 2019.
Liquidity and Capital Resources
B2Gold maintains a strong financial position and liquidity. The
Company was in a net cash position of $157
million as at June 30, 2020,
with its cash and cash equivalents of $628
million (December 31, 2019 -
$141 million) exceeding its debt
balances of $471 million. Working
capital as at June 30, 2020 was $656
million compared to $242
million at December 31,
2019.
The Company has a revolving credit facility ("RCF") with a
syndicate of international banks for an aggregate amount of
$600 million. The RCF also allows for
an accordion feature whereby upon receipt of additional binding
commitments, the facility may be increased to $800 million any time prior to the maturity date
of May 9, 2023. As at June 30,
2020, the Company had drawn $425
million under the $600 million
RCF.
On April 8, 2020, as a
precautionary measure and given the current uncertainty resulting
from the COVID-19 pandemic, the Company completed the drawdown of a
further $250 million on its
$600 million RCF, resulting in a
total revised drawn down balance of $425
million and available undrawn capacity of $175 million. The $250
million drawn in April 2020
was to provide additional liquidity flexibility and assurance until
the ultimate timing and outcome of the COVID-19 pandemic could be
reasonably determined. Based on current assumptions, including the
continued strong operating performance at each of the Company's
mines and no significant unforeseen work stoppages having been
incurred due to COVID-19, the Company now intends to repay the
entire drawn balance of $425 million
under its RCF by the end of the third quarter of 2020 and finish
2020 in a strong cash position.
Operations
Mine-by-mine gold production in the second quarter of 2020
(including the Company's estimated 34% share of Calibre's
production) was as follows:
Mine
|
Q2
2020 Gold
Production (ounces)
|
First Half
2020 Gold
Production (ounces)
|
2020 Annual Guidance Gold Production
(ounces)
|
Fekola
|
147,424
|
311,435
|
590,000 -
620,000
|
Masbate
|
48,654
|
93,526
|
200,000 -
210,000
|
Otjikoto
|
43,496
|
85,245
|
165,000 -
175,000
|
|
|
|
|
B2Gold
Consolidated (1)
|
239,574
|
490,206
|
955,000 –
1,005,000
|
|
|
|
|
Equity interest
in
Calibre (2)
|
2,019
|
16,249
|
45,000 - 50,000
(3)
|
|
|
|
|
Total
|
241,593
|
506,455
|
1,000,000 –
1,055,000 (3)
|
|
|
(1)
|
"B2Gold
Consolidated" - gold production is presented on a 100% basis, as
B2Gold fully consolidates the results of its Fekola, Masbate and
Otjikoto mines in its consolidated financial statements (even
though it does not own 100% of these
operations).
|
(2)
|
"Equity interest
in Calibre" - represents the Company's approximate 34% indirect
share of the operations of Calibre's El Limon and La Libertad mines
in Nicaragua. B2Gold applies the equity method of accounting for
its 34% ownership interest in Calibre.
|
(3)
|
Based on current
assumptions for 2020, B2Gold remains well positioned for continued
strong operational and financial performance. On June 24, 2020,
Calibre provided its revised 2020 production guidance following the
temporary suspension of its Nicaraguan operations due to COVID-19.
The Company's attributable gold production from Calibre is now
estimated to be between 37,000 and 42,000 ounces for 2020 (or 8,000
ounces lower than the original estimate of between 45,000 and
50,000 ounces of gold). However, given that the Company's three
operating mines are already 23,483 ounces ahead of budget at the
end of the first half of 2020, the Company has determined that its
overall consolidated production and financial guidance should be
maintained.
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold produced basis) in the second quarter and first half of
2020 were as follows (presented on a 100% basis):
Mine
|
Q2
2020 Cash Operating
Costs ($ per ounce
produced)
|
First Half
2020 Cash Operating
Costs ($ per ounce
produced)
|
2020 Annual Guidance Cash Operating Costs ($ per ounce)
|
Fekola
|
$300
|
$274
|
$285 -
$325
|
Masbate
|
$610
|
$664
|
$665 -
$705
|
Otjikoto
|
$421
|
$431
|
$480 -
$520
|
B2Gold
Consolidated
|
$385
|
$376
|
$395 -
$440
|
|
|
|
|
Equity interest
in
Calibre
|
$1,005
|
$807
|
$720 -
$760
|
|
|
|
|
Total
|
$390
|
$390
|
$415 -
$455
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold sold basis) in the second quarter and first half of 2020 were
as follows (presented on a 100% basis):
Mine
|
Q2
2020 Cash Operating
Costs ($ per ounce
sold)
|
First Half
2020 Cash Operating
Costs ($ per ounce
sold)
|
2020 Annual Guidance Cash Operating Costs ($ per ounce)
|
Fekola
|
$271
|
$278
|
$285 -
$325
|
Masbate
|
$740
|
$699
|
$665 -
$705
|
Otjikoto
|
$418
|
$417
|
$480 -
$520
|
B2Gold
Consolidated
|
$377
|
$380
|
$395 -
$440
|
|
|
|
|
Equity interest
in
Calibre
|
$1,251
|
$827
|
$720 -
$760
|
|
|
|
|
Total
|
$383
|
$394
|
$415 -
$455
|
Mine-by-mine AISC (on a per ounce of gold sold basis) in the
second quarter and first half of 2020 were as follows (presented on
a 100% basis):
Mine
|
Q2
2020 AISC ($ per ounce sold)
|
First Half
2020 AISC ($ per ounce sold)
|
2020 Annual Guidance AISC ($ per ounce)
|
Fekola
|
$562
|
$542
|
$555 -
$595
|
Masbate
|
$1,060
|
$981
|
$965 -
$1,005
|
Otjikoto
|
$757
|
$801
|
$1,010 -
$1,050
|
B2Gold
Consolidated
|
$714
|
$705
|
$765 -
$805
|
|
|
|
|
Equity interest
in
Calibre
|
$502
|
$1,090
|
$1,020 -
$1,060
|
|
|
|
|
Total
|
$712
|
$717
|
$780 -
$820
|
Fekola Gold Mine - Mali
The Fekola Mine in Mali
continued its very strong operational performance with second
quarter of 2020 gold production of 147,424 ounces, well above
budget by 5% (6,424 ounces), with processed throughput and recovery
better than budget and head grade in-line with budget. Compared to
the second quarter of 2019, gold production was significantly
higher by 29% (33,527 ounces), mainly due to the expansion of the
Fekola mining fleet and optimization of the pit designs and mine
plan, which have provided access to higher grade portions of the
Fekola deposit earlier than anticipated in previous mine plans. As
at June 30, 2020, the Fekola Mine
achieved 163 days without an LTI.
For the second quarter of 2020, mill feed grade was 3.11 grams
per tonne ("g/t") compared to budget of 3.10 g/t and 2.07 g/t in
the second quarter of 2019; mill throughput was 1.56 million tonnes
compared to budget of 1.52 million tonnes and 1.8 million tonnes in
the second quarter of 2019 (lower in 2020 as a result of planned
interruptions related to the ongoing mill expansion project); and
gold recovery averaged 94.8% compared to budget of 93.0% and 94.4%
in the second quarter of 2019.
For the second quarter of 2020, Fekola's cash operating costs
were $300 per ounce produced
($271 per gold ounce sold),
approximately in-line with budget. This resulted from
higher-than-budgeted gold production together with total cash
operating costs overall on-budget, partially offsetting
$4.4 million of unbudgeted COVID-19
related production costs ($30 per
ounce produced) incurred during the second quarter. The average
diesel price for the second quarter of 2020 was 5% below budget,
while the average HFO price was in-line with budget. Compared to
the second quarter of 2019, Fekola's cash operating costs were
lower by $67 per ounce produced
(18%), mainly as a result of higher gold production. Fekola's AISC
for the second quarter of 2020 were $562 per ounce sold, well below budget by
$27 per ounce sold (5%) and the
second quarter of 2019 by $63 per
ounce sold (10%).
For the first half of 2020, the Fekola Mine produced 311,435
ounces of gold, well above budget by 7% (20,435 ounces) and
significantly higher than the first half of 2019 by 39% (87,189
ounces).
For the first half of 2020, Fekola's cash operating costs were
$274 per ounce produced ($278 per gold ounce sold), well below budget by
$18 per ounce produced (6%) and
significantly lower than the first half of 2019 by $101 per ounce produced (27%). Fekola's AISC were
$542 per ounce sold, well below both
budget by $41 per ounce sold (7%) and
the first half of 2019 by $77 per
ounce sold (12%). Fekola's AISC include lower-than-budgeted
sustaining capital and exploration expenditures, mainly as a result
of timing of expenditures which are expected to be incurred later
in 2020, except for approximately $4
million of expected overall savings versus budget on the
tailings storage facility project.
Capital expenditures in the second quarter of 2020 totaled
$52 million primarily consisting of
$13 million for the mining fleet
expansion, $13 million for the
processing plant expansion, $7
million for the solar plant and $13
million for pre-stripping. Capital expenditures in the first
half of 2020 totaled $126 million
primarily consisting of $43 million
for the mining fleet expansion, $29
million for the processing plant expansion, $18 million for the solar plant and $18 million for pre-stripping
For full-year 2020, the low-cost Fekola Mine is expected to
produce between 590,000 and 620,000 ounces of gold at cash
operating costs of between $285 and
$325 per ounce and AISC of between
$555 and $595 per ounce.
The recent political unrest in Mali has not had a material impact on B2Gold's
operations. The Fekola Mine continues to operate as normal and the
Company is maintaining both quarterly budgeted production and
annual production guidance. B2Gold will continue to monitor the
situation to ensure that its mining operations continue normally,
providing important economic benefits both to the communities
around the mine and to the Malian regional and national
governments. B2Gold has enjoyed a positive relationship with the
Government of Mali from the
beginning of its investment in the country, including recently,
partnering with the government to assist the people of Mali in facing the challenges created by the
COVID-19 pandemic and its impact on the mining sector. As one of
the largest Canadian investors in Mali, B2Gold has enjoyed the strong support of
the Government of Mali
for its in-country investment.
Fekola Mine Expansion
The Fekola Mine expansion project has progressed well through
the second quarter of 2020 and is scheduled to be completed by the
end of the third quarter of 2020. Mining fleet expansion equipment
(including excavators, trucks, and drill rigs) continued to arrive
on site and be commissioned throughout the second quarter. The mill
expansion continues to be on schedule and was approximately 75%
complete by the end of June 2020,
including assembly of major components including cyclone clusters,
leach and CIP tanks, and completion of a double lift on the
tailings storage facility. The mill expansion commissioning team
arrived on site in late July and the mill expansion is expected to
be fully commissioned by the end of the third quarter 2020.
Fekola Solar Plant
The Fekola solar plant engineering and construction progressed
well through the first quarter of 2020. In April 2020, due to issues related to COVID-19,
the Company made the decision to temporarily suspend construction
activities on the solar plant. Suspending the solar plant
installation is not expected to impact Fekola's production guidance
for 2020 and has increased availability at the Fekola camp to
assist mining operations in isolating more of the critical
workforce on site and mitigate COVID-19 related travel and
quarantine restrictions. The Company expects the solar plant
construction will be completed within six months of the restart and
is anticipating that the solar plant construction group will be
mobilized at the end of September
2020.
Masbate Gold Mine – the
Philippines
The Masbate Mine in the
Philippines also continued to perform well through the
second quarter of 2020, despite being limited by a reduced
workforce due to COVID-19 restrictions, producing 48,654 ounces of
gold, approximately in-line with budget. Compared to the second
quarter of 2019, gold production was lower by 15% (8,918 ounces),
as planned, mainly due to lower than budgeted grade. The Masbate
Mine continued its remarkable safety performance, extending the
number of days without an LTI to 592 days as at June 30, 2020.
During the second quarter of 2020, processing was generally
in-line with budget. Mill feed grade was 0.94 g/t (compared to
budget of 0.99 g/t and 1.22 g/t in the second quarter of 2019),
throughput was 1.99 million tonnes (compared to budget of 2.0
million tonnes and 2.1 million tonnes in the second quarter of
2019) and average gold recoveries were 81.0% (compared to budget of
77.4% and 70.2% in the second quarter of 2019). Mill feed grade was
lower than budget primarily due to the impact of previous near
surface artisanal mining activity at the newly developed Montana
Pit. This variance is not expected to continue as mining moves into
the deeper, harder ore areas at Montana. Average gold recoveries were above
budget due to mining more oxide ore than budgeted.
Masbate's second quarter of 2020 cash operating costs were
$610 per ounce produced ($740 per ounce sold), well-below budget by
$91 per ounce produced (13%). The
favourable budget variance was attributable to lower-than-budgeted
mining and processing costs, as fuel prices, tonnes mined, and
waste stripping were all below budget for the second quarter.
Compared to the second quarter of 2019, cash operating costs were
higher by $40 per ounce produced
(7%), as expected, due to lower production. Masbate's AISC for the
quarter were $1,060 per ounce sold
(second quarter of 2019 - $749 per
ounce sold), approximately in-line with budget.
For the first half of 2020, the Masbate Mine produced 93,526
ounces of gold, slightly above budget (by 343 ounces) and 19%
(21,527 ounces) lower than the first half of 2019. The on-budget
production was achieved despite COVID-19-related constraints,
including a five-day mining shutdown in the first quarter of 2020
and working with a reduced workforce through the second
quarter.
Masbate's cash costs were well below budget in the first half of
2020, with cash operating costs of $664 per ounce produced ($699 per ounce sold), below budget by
$76 per ounce produced (10%) (first
half of 2019 - $538 per ounce
produced), and AISC of $981 per ounce
sold, below budget by $144 per ounce
sold (13%) (first half of 2019 - $746
per ounce sold).
Capital expenditures for the second quarter of 2020 totaled
$5 million, including $2 million for mobile equipment purchases and
rebuilds, $1 million for processing
replacements and $1 million for
tailings storage facility projects. Capital expenditures in the
first half of 2020 totaled $9
million, including processing equipment replacement costs of
$2 million, mobile equipment
acquisition costs and rebuilds of $3
million, pre-stripping costs of $1
million and $2 million for
tailings storage facility projects.
For full-year 2020, the Masbate Mine is expected to produce
between 200,000 and 210,000 ounces of gold from the Main Vein and
Montana Pits, at cash operating costs of between $665 and $705 per
ounce and AISC of between $965 and
$1,005 per ounce. Masbate's gold
production is scheduled to be weighted towards the second half of
2020 (54%), as higher-grade ore from the new Montana Pit is
forecast to be processed during the second half of the year.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia
also had a solid second quarter of 2020, producing 43,496 ounces of
gold, 3% (1,342 ounces) above budget, as processed tonnes and
recoveries were slightly better than budget. Compared to the second
quarter of 2019, gold production was significantly higher by 16%
(6,075 ounces), due to higher grade ore from the Wolfshag Pit (ore
production from the pit resumed in the second half of 2019
following pre-stripping). The Otjikoto Mine continued its
remarkable safety performance, extending the number of days without
an LTI to 826 days as at June 30,
2020.
During the second quarter of 2020, the Otjikoto Mine processed
0.87 million tonnes (compared to budget of 0.85 million tonnes and
0.87 million tonnes in the second quarter of 2019) at an average
grade of 1.58 g/t (compared to budget of 1.58 g/t and 1.36 g/t in
the second quarter of 2019) and average gold recoveries of 98.6%
(compared to budget of 98.0% and 98.5% in the second quarter of
2019).
For the second quarter of 2020, Otjikoto's cash operating costs
were $421 per ounce produced
($418 per ounce sold), well-below
budget by $64 per ounce produced
(13%) and significantly lower than the second quarter of 2019 by
$133 per ounce produced (24%). This
resulted mainly from higher gold production, lower fuel prices and
a weaker Namibian dollar in the second quarter (compared to both
budget and the second quarter of 2019). Otjikoto's AISC for the
second quarter of 2020 were $757 per
ounce sold, significantly below both budget by $267 per ounce sold (26%) and the second quarter
of 2019 by $417 per ounce sold (36%).
The favourable budget variance reflected lower-than-budgeted cash
operating costs, higher-than-budgeted gold ounces sold and
lower-than-budgeted sustaining capital expenditures (of
$8 million, consisting of
$4 million in cost savings and
$4 million expected to be incurred
later in 2020).
For the first half of 2020, the Otjikoto Mine produced 85,245
ounces of gold, above budget by 3% (2,705 ounces) and 22% (15,112
ounces) higher than the first half of 2019.
For the first half of 2020, Otjikoto's cash operating costs were
$431 per ounce produced ($417 per ounce sold), well below budget by
$64 per ounce produced (13%) and
significantly lower than the first half of 2019 by $145 per ounce produced (25%). Otjikoto's AISC
were $801 per ounce sold,
significantly below both budget by $184 per ounce sold (19%) and the first half of
2019 by $196 per ounce sold (20%).
Capital expenditures in the second quarter of 2020 totaled
$11 million, including $8 million for pre-stripping (in the Otjikoto
Phase 3 and Wolfshag Phase 3 pits) and $2
million for mobile equipment rebuilds and replacements.
Capital expenditures in the first half of 2020 totaled $23 million, including $18
million for pre-stripping and $3
million for mobile equipment rebuilds and replacements.
In December 2019, the B2Gold Board
approved the development of the Wolfshag underground mine (the
initial underground Mineral Reserve estimate for the down-plunge
extension of the Wolfshag orebody included 210,000 ounces of gold
in 1.2 million tonnes of ore at 5.57 g/t gold). During the first
half of 2020, engineering of the underground mine continued and in
the second quarter of 2020 an underground mining contractor was
appointed for the development of the underground workings up to the
production stopes. Development of the portal and primary ramp is
expected to commence in the fourth quarter of 2020 and stope ore
production is expected to commence in early 2022, in-line with
original estimates. However due to COVID-19 related delays,
approximately $4 million of the
related capital costs are now expected to be incurred in 2021
rather than in the current year.
For full-year 2020, the Otjikoto Mine is forecast to produce
between 165,000 and 175,000 ounces of gold, from the Otjikoto and
Wolfshag Pits, at cash operating costs of between $480 and $520 per
ounce and AISC of between $1,010 and
$1,050 per ounce.
Development
Gramalote Project - Colombia
Following amendments to the Gramalote Project Shareholders
Agreement in December 2019, B2Gold
was appointed as manager of the project as of January 1, 2020. In the first half of 2020, the
Company sole-funded $12.5 million of
expenditures on the Gramalote Project, which resulted in the
Company's interest being increased to 50% (AngloGold Ashanti
Limited - 50%). The additional sole-funded amount of $1.4 million was completed in July 2020 resulting in the Company having met its
total sole-funding obligation of $13.9
million under the amended shareholder agreement. Each of
B2Gold and AngloGold Ashanti Limited will now fund its share of
expenditures pro rata.
On March 30, 2020, B2Gold had
announced at the Gramalote Project in Colombia a temporary shutdown due to COVID-19.
Project operations restarted on May 4,
2020 for Environmental Impact Assessment related field
activities, with exploration drilling recommencing on May 11, 2020. The project became fully
operational within a week, with appropriate preventive practices,
monitoring, and COVID-19 testing and tracing protocols in place.
During the shutdown, other aspects of the Feasibility Study such as
mine engineering review, metallurgical investigations and process
plant design development continued to advance.
Ongoing exploration work continues with a focus on infill
drilling of the Inferred Mineral Resource area, which is expected
to be completed in August 2020. As
previously announced, the Company now expects to complete the
Feasibility Study in the first quarter of 2021.
The Colombian government in Antioquia continues to closely
manage levels of business activities and public movement with a
view to gradually reopening the economy while ensuring adequacy of
medical facilities including public testing, contact tracing and
intensive care units.
Summary and Outlook
Based on current assumptions for 2020, B2Gold remains well
positioned for continued strong operational and financial
performance. Total consolidated production guidance remains at
between 1,000,000 and 1,055,000 ounces of gold; total consolidated
cash operating costs are forecast to be between $415 and $455 per
ounce and total consolidated all-in sustaining costs are forecast
to be between $780 and $820 per ounce. The Company remains on guidance
even though Calibre (approximately 34% owned by B2Gold) provided
revised reduced 2020 production guidance following the temporary
suspension of its Nicaraguan operations due to COVID-19. The
Company is on schedule to realize a significant increase in gold
production from the Fekola Mine in 2020 (approximately 600,000
ounces) based on the addition of a larger mining fleet, the
optimization of the mining sequence and the mill expansion.
B2Gold's construction team is on schedule to complete the Fekola
mill expansion in the third quarter of 2020, which along with the
larger mining fleet will significantly increase mill throughput,
yielding projected annual production averaging 550,000 ounces of
gold over the next five years based on current assumptions.
In the second quarter of 2020, the Company reached a strategic
milestone. The Company was in a net cash position of $157 million as at June
30, 2020, with its cash and cash equivalents of $628 million exceeding its debt balances of
$471 million. Based on current
assumptions, including the continued strong operating performance
at each of the Company's mines and no significant unforeseen work
stoppages having been incurred due to COVID-19, the Company now
intends to repay the entire drawn balance of $425 million under its RCF by the end of the
third quarter of 2020 and finish 2020 in a strong cash position.
Due to the Company's strong net positive cash position, strong
operating results and the current higher gold price environment,
the quarterly dividend rate was again increased by 100% to
$0.04 per common share (or an annual
rate of $0.16 per common share),
which will become effective upon approval and declaration of the
third quarter dividend.
Despite some of the challenges that the current COVID-19
pandemic has created in each of the locations where the Company
operates or is headquartered, the Company continues to operate
virtually unimpeded. The Company is very of proud of its employees'
dedication and resilience in these challenging times and believes
it is in part due to the executive team's and mine employees' years
of experience in all aspects of international mining, and B2Gold's
culture of fairness, respect and transparency. That resilience is
reflected in the Company's results from the first half of 2020.
In conjunction with this success, we are also very mindful of
the communities where we operate and continue to assist local and
national governments in their efforts to respond to the COVID-19
crisis. During the second quarter of 2020, the Company donated a
total of $3 million of COVID-19
relief to assist the communities in which it operates, including
contributions in Mali,
Namibia, the Philippines, Burkina Faso, Colombia and Canada. B2Gold would like
to thank all levels of government in the countries for working with
the Company in mutually trusting relationships during these
challenging times.
In addition, to managing its operations through these current
challenging times, B2Gold will also look forward through the
balance of 2020 and beyond and remain committed to continuing to
execute on its strategic objectives. The Company's ongoing strategy
is to continue to maximize profitable production from its mines,
reduce debt, expand the Fekola Mine throughput and annual
production, further advance its pipeline of development and
exploration projects, evaluate opportunities and continue to pay a
dividend. In connection with advancing its pipeline of development
projects, the Company still expects to have a feasibility study for
the Gramalote Project completed by the end of the first quarter of
2021. In addition, the Company is evaluating the best course of
action to advance the Kiaka Project, due to improved economics
resulting from lower fuel prices, different power options and a
higher gold price. The Company is currently updating its model and
is considering its options to advance the project, including, but
not limited to, bringing on a strategic partner to develop the
project.
Qualified Persons
Bill Lytle, Senior Vice President
of Operations, a qualified person under NI 43-101, has approved the
scientific and technical information related to operations matters
contained in this news release.
Second Quarter and First Half 2020 Financial Results -
Conference Call Details
B2Gold will release its second quarter and first half 2020
financial results after the North American markets close on
Wednesday, August 5, 2020.
B2Gold executives will host a conference call to discuss the
results on Thursday, August 6, 2020,
at 10:00 am PDT/1:00 pm EDT. You may access the call by dialing
the operator at +1 (647) 788-4919 (local or international) or toll
free at +1 (877) 291-4570 prior to the scheduled start time or you
may listen to the call via webcast by
clicking: https://www.webcaster4.com/Webcast/Page/1493/35606. A
playback version will be available for two weeks after the call at
+1 (416) 621-4642 (local or international) or toll free at +1 (800)
585-8367 (passcode 5346877).
On Behalf of B2GOLD CORP.
"Clive T. Johnson"
President and Chief
Executive
Officer
For more information on B2Gold please visit the Company website
at www.b2gold.com or contact:
Ian MacLean
Vice President, Investor Relations
+1 604-681-8371
imaclean@b2gold.com
|
|
Katie Bromley
Manager, Investor Relations & Public
Relations
+1 604-681-8371
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE American LLC neither
approve nor disapprove the information contained in this news
release.
Production results and production guidance presented in this
news release reflect total production at the mines B2Gold operates
on a 100% project basis. Please see our Annual Information Form
dated March 20, 2020 for a discussion
of our ownership interest in the mines B2Gold operates.
This news release includes certain "forward-looking
information" and "forward-looking statements" (collectively
forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation, including: projections; outlook; guidance;
forecasts; estimates; and other statements regarding future or
estimated financial and operational performance, gold production
and sales, revenues and cash flows, and capital costs (sustaining
and non-sustaining) and operating costs, including projected cash
operating costs and AISC, and budgets on a consolidated and
mine by mine basis; the impact of the COVID-19 pandemic on B2Gold's
operations, including any restrictions or suspensions with respect
to our operations and the effect of any such restrictions or
suspensions on our financial and operational results; the ability
of the Company to successfully maintain our operations if they are
temporarily suspended, and to restart or ramp-up these
operations efficiently and economically, the impact of COVID-19 on
the Company's workforce, suppliers and other essential resources
and what effect those impacts, if they occur, would have on our
business, our planned capital and exploration expenditures;
future or estimated mine life, metal price assumptions, ore grades
or sources, gold recovery rates, stripping ratios, throughput, ore
processing; statements regarding anticipated exploration, drilling,
development, construction, permitting and other activities or
achievements of B2Gold; and including, without limitation: B2Gold
generating operating cashflows of approximately $900 million in 2020; remaining well positioned
for continued strong operational and financial performance for the
remainder of 2020; projected gold production, cash operating costs
and AISC on a consolidated and mine by mine basis in 2020,
including total consolidated gold production of between 1,000,000
and 1,055,000 ounces in 2020 with cash operating costs of between
$415 and $455 per ounce and AISC of between $780 and $820 per
ounce; the completion of the expansion at Fekola and the timing and
results thereof; the Fekola expansion being expected to
increase gold production to an average of 550,000 ounces per year
during the five-year period 2020-2024; the anticipated cost, timing
and results for the addition of a solar plant to the Fekola Mine,
including the timing to complete following restart of construction;
the development of the Wolfshag underground mine at Otjikoto,
including the results of such development and the costs and timing
thereof; the completion of the Gramalote Feasibility Study by the
first quarter of 2021 and the results therein; the potential
payment of future dividends, including the timing and amount of any
such dividends, and the expectation that quarterly dividends will
be maintained at the same level; the anticipated repayment of all
or a portion of the outstanding RCF balance in 2020 and the
availability of the facility; and B2Gold's attributable share at El
Limon and La Libertad. All statements in this news release that
address events or developments that we expect to occur in the
future are forward-looking statements. Forward-looking statements
are statements that are not historical facts and are generally,
although not always, identified by words such as "expect", "plan",
"anticipate", "project", "target", "potential", "schedule",
"forecast", "budget", "estimate", "intend" or "believe" and similar
expressions or their negative connotations, or that events or
conditions "will", "would", "may", "could", "should" or "might"
occur. All such forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made.
Forward-looking statements necessarily involve assumptions,
risks and uncertainties, certain of which are beyond B2Gold's
control, including risks associated with or related to: the
duration and extent of the COVID-19 pandemic, the effectiveness of
preventative measures and contingency plans put in place by the
Company to respond to the COVID-19 pandemic, including, but not
limited to, social distancing, a non-essential travel ban, business
continuity plans, and efforts to mitigate supply chain disruptions;
escalation of travel restrictions on people or products and
reductions in the ability of the Company to transport and refine
doré; the volatility of metal prices and B2Gold's common shares;
changes in tax laws; the dangers inherent in exploration,
development and mining activities; the uncertainty of reserve and
resource estimates; not achieving production, cost or other
estimates; actual production, development plans and costs differing
materially from the estimates in B2Gold's feasibility and other
studies; the ability to obtain and maintain any necessary permits,
consents or authorizations required for mining activities;
environmental regulations or hazards and compliance with complex
regulations associated with mining activities; climate change and
climate change regulations; the ability to replace mineral reserves
and identify acquisition opportunities; the unknown liabilities of
companies acquired by B2Gold; the ability to successfully integrate
new acquisitions; fluctuations in exchange rates; the availability
of financing; financing and debt activities, including potential
restrictions imposed on B2Gold's operations as a result thereof and
the ability to generate sufficient cash flows; operations in
foreign and developing countries and the compliance with foreign
laws, including those associated with operations in Mali, Namibia, the
Philippines, Colombia and
Burkina Faso and including risks
related to changes in foreign laws and changing policies related to
mining and local ownership requirements or resource nationalization
generally, including in response to the COVID-19 outbreak; remote
operations and the availability of adequate infrastructure;
fluctuations in price and availability of energy and other inputs
necessary for mining operations; shortages or cost increases in
necessary equipment, supplies and labour; regulatory, political and
country risks, including local instability or acts of terrorism and
the effects thereof; the reliance upon contractors, third parties
and joint venture partners; the lack of sole decision-making
authority related to Filminera Resources Corporation, which owns
the Masbate Project; challenges to title or surface rights; the
dependence on key personnel and the ability to attract and retain
skilled personnel; the risk of an uninsurable or uninsured loss;
adverse climate and weather conditions; litigation risk;
competition with other mining companies; community support for
B2Gold's operations, including risks related to strikes and the
halting of such operations from time to time; conflicts with small
scale miners; failures of information systems or information
security threats; the ability to maintain adequate internal
controls over financial reporting as required by law, including
Section 404 of the Sarbanes-Oxley Act; compliance with
anti-corruption laws, and sanctions or other similar measures;
social media and B2Gold's reputation; risks affecting Calibre
having an impact on the value of the Company's investment in
Calibre, and potential dilution of our equity interest in Calibre;
as well as other factors identified and as described in more detail
under the heading "Risk Factors" in B2Gold's most recent Annual
Information Form, B2Gold's current Form 40-F Annual Report and
B2Gold's other filings with Canadian securities regulators and the
U.S. Securities and Exchange Commission (the "SEC"), which may be
viewed at www.sedar.com and www.sec.gov, respectively (the
"Websites"). The list is not exhaustive of the factors that may
affect B2Gold's forward-looking statements
B2Gold's forward-looking statements are based on the
applicable assumptions and factors management considers reasonable
as of the date hereof, based on the information available to
management at such time. These assumptions and factors include, but
are not limited to, assumptions and factors related to B2Gold's
ability to carry on current and future operations, including: the
duration and effects of COVID-19 on our operations and
workforce; development and exploration activities; the timing,
extent, duration and economic viability of such operations,
including any mineral resources or reserves identified thereby; the
accuracy and reliability of estimates, projections, forecasts,
studies and assessments; B2Gold's ability to meet or achieve
estimates, projections and forecasts; the availability and cost of
inputs; the price and market for outputs, including gold; foreign
exchange rates; taxation levels; the timely receipt of necessary
approvals or permits; the ability to meet current and future
obligations; the ability to obtain timely financing on reasonable
terms when required; the current and future social, economic and
political conditions; and other assumptions and factors generally
associated with the mining industry.
B2Gold's forward-looking statements are based on the opinions
and estimates of management and reflect their current expectations
regarding future events and operating performance and speak only as
of the date hereof. B2Gold does not assume any obligation to update
forward-looking statements if circumstances or management's
beliefs, expectations or opinions should change other than as
required by applicable law. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results, performance or achievements could differ materially from
those expressed in, or implied by, these forward-looking
statements. Accordingly, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what benefits or liabilities B2Gold
will derive therefrom. For the reasons set forth above, undue
reliance should not be placed on forward-looking
statements.
Non-IFRS Measures
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including "cash operating costs" and "all-in sustaining costs" (or
"AISC"). Non-IFRS measures do not have any standardized meaning
prescribed under IFRS, and therefore they may not be comparable to
similar measures employed by other companies. The data presented is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS and should be read in
conjunction with B2Gold's consolidated financial statements.
Readers should refer to B2Gold's Management Discussion and
Analysis, available on the Websites, under the heading "Non-IFRS
Measures" for a more detailed discussion of how B2Gold calculates
certain of such measures and a reconciliation of certain measures
to IFRS terms.
Cautionary Note to United States Investors
The disclosure in this news release was prepared in
accordance with Canadian National Instrument 43-101 ("NI 43-101"),
which differs significantly from the current requirements of the
SEC set out in Industry Guide 7. Accordingly, such disclosure may
not be comparable to similar information made public by companies
that report in accordance with Industry Guide 7. In particular,
this news release may refer to "mineral resources," "indicated
mineral resources" or "inferred mineral resources". While these
categories of mineralization are recognized and required by
Canadian securities laws, they are not recognized by Industry Guide
7 and have not historically been permitted to be disclosed in SEC
filings by U.S. companies subject to Industry Guide 7. U.S.
investors are cautioned not to assume that any part of a "mineral
resource," "indicated mineral resource" or "inferred mineral
resource" will ever be converted into a "reserve." In addition,
this news release uses the terms "reserves" and "mineral reserves"
which are reported by the Company under Canadian standards and may
not qualify as reserves under Industry Guide 7. Under Industry
Guide 7, mineralization may not be classified as a "reserve" unless
the mineralization can be economically and legally extracted or
produced at the time the "reserve" determination is made.
Accordingly, information contained or referenced in this news
release containing descriptions of the Company's mineral deposits
may not be compatible to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of
Industry Guide 7. "Inferred mineral resources" have a great amount
of uncertainty as to their existence and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Disclosure of "contained ounces" in a
resource is permitted disclosure under Canadian reporting
standards; however, Industry Guide 7 normally only permits issuers
to report mineralization that does not constitute "reserves" by
Industry Guide 7 standards as in-place tonnage and grade without
reference to unit measures. Further, while NI 43-101 permits
companies to disclose economic projections contained in preliminary
economic assessments and pre-feasibility studies, which are not
based on "reserves", U.S. companies subject to Industry Guide 7
have not generally been permitted to disclose economic projections
for a mineral property in their SEC filings prior to the
establishment of "reserves." Historical results or feasibility
models presented herein are not guarantees or expectations of
future performance.
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE
30
(Expressed in thousands of United
States dollars, except per share amounts)
(Unaudited)
|
|
For the
three
months ended
June 30, 2020
|
|
For the
three
months ended
June 30, 2019
|
|
For the
six
months ended
June 30, 2020
|
|
For the
six
months ended
June 30, 2019
|
Gold
revenue
|
|
$
|
441,939
|
|
$
|
267,213
|
|
$
|
822,237
|
|
$
|
531,195
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Production
costs
|
|
(96,987)
|
|
(95,313)
|
|
(188,543)
|
|
(188,150)
|
Depreciation and
depletion
|
|
(75,582)
|
|
(56,981)
|
|
(146,194)
|
|
(117,612)
|
Royalties and
production taxes
|
|
(31,234)
|
|
(17,552)
|
|
(56,965)
|
|
(35,506)
|
Total cost of
sales
|
|
(203,803)
|
|
(169,846)
|
|
(391,702)
|
|
(341,268)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
238,136
|
|
97,367
|
|
430,535
|
|
189,927
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
(8,062)
|
|
(11,662)
|
|
(18,250)
|
|
(26,448)
|
Share-based
payments
|
|
(7,440)
|
|
(6,054)
|
|
(11,087)
|
|
(10,036)
|
Community
relations
|
|
(492)
|
|
(465)
|
|
(4,226)
|
|
(1,143)
|
Foreign exchange
(losses) gains
|
|
(3,101)
|
|
(76)
|
|
(4,333)
|
|
1,250
|
Share of (loss)
income of associate
|
|
(3,765)
|
|
—
|
|
2,635
|
|
—
|
Write-down of mineral
property interests
|
|
—
|
|
(1,352)
|
|
—
|
|
(1,352)
|
Other
|
|
(3,855)
|
|
814
|
|
(4,428)
|
|
517
|
Operating
income
|
|
211,421
|
|
78,572
|
|
390,846
|
|
152,715
|
|
|
|
|
|
|
|
|
|
Interest and
financing expense
|
|
(5,051)
|
|
(7,078)
|
|
(9,568)
|
|
(14,517)
|
Gains (losses) on
derivative instruments
|
|
3,430
|
|
(2,914)
|
|
(11,412)
|
|
3,332
|
Other
|
|
1,108
|
|
(437)
|
|
929
|
|
(503)
|
Income from
continuing operations before taxes
|
|
210,908
|
|
68,143
|
|
370,795
|
|
141,027
|
|
|
|
|
|
|
|
|
|
Current income tax,
withholding and other taxes
|
|
(82,229)
|
|
(24,123)
|
|
(145,699)
|
|
(49,692)
|
Deferred income tax
recovery (expense)
|
|
9,282
|
|
971
|
|
(4,127)
|
|
(11,099)
|
Net income from
continuing operations
|
|
137,961
|
|
44,991
|
|
220,969
|
|
80,236
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations attributable to shareholders of the
Company
|
|
—
|
|
(3,669)
|
|
—
|
|
(12,391)
|
Net income for the
period
|
|
$
|
137,961
|
|
$
|
41,322
|
|
$
|
220,969
|
|
$
|
67,845
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
$
|
124,446
|
|
$
|
37,904
|
|
$
|
196,733
|
|
$
|
60,199
|
Non-controlling
interests
|
|
13,515
|
|
3,418
|
|
24,236
|
|
7,646
|
Net income for the
period
|
|
$
|
137,961
|
|
$
|
41,322
|
|
$
|
220,969
|
|
$
|
67,845
|
|
|
|
|
|
|
|
|
|
Earnings per share
from continuing operations
(attributable to
shareholders of the Company)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
$
|
0.04
|
|
$
|
0.19
|
|
$
|
0.07
|
Diluted
|
|
$
|
0.12
|
|
$
|
0.04
|
|
$
|
0.19
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
Earnings per
share
(attributable to
shareholders of the Company)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
$
|
0.04
|
|
$
|
0.19
|
|
$
|
0.06
|
Diluted
|
|
$
|
0.12
|
|
$
|
0.04
|
|
$
|
0.19
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
(in
thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
1,040,661
|
|
1,008,345
|
|
1,037,847
|
|
1,004,897
|
Diluted
|
|
1,058,388
|
|
1,016,322
|
|
1,053,696
|
|
1,014,725
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND SIX MONTHS ENDED JUNE
30
(Expressed in thousands of United
States dollars)
(Unaudited)
|
|
For the
three
months ended
June 30, 2020
|
|
For the
three
months ended
June 30, 2019
|
|
For the
six
months ended
June 30, 2020
|
|
For the
six
months ended
June 30, 2019
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income from
continuing operations for the period
|
|
$
|
137,961
|
|
$
|
44,991
|
|
$
|
220,969
|
|
$
|
80,236
|
Mine restoration
provisions settled
|
|
(19)
|
|
—
|
|
(208)
|
|
(124)
|
Non-cash charges,
net
|
|
74,891
|
|
62,267
|
|
179,420
|
|
119,290
|
Changes in non-cash
working capital
|
|
28,558
|
|
(25,632)
|
|
60,301
|
|
(30,739)
|
Changes in long-term
value added tax receivables
|
|
(3,302)
|
|
1,756
|
|
(6,180)
|
|
(83)
|
Cash provided by
operating activities of continuing operations
|
|
238,089
|
|
83,382
|
|
454,302
|
|
168,580
|
Cash provided by
operating activities of discontinued operations
|
|
—
|
|
9,434
|
|
—
|
|
10,654
|
Cash provided by
operating activities
|
|
238,089
|
|
92,816
|
|
454,302
|
|
179,234
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Revolving credit
facility, drawdowns net of transaction costs
|
|
250,000
|
|
(5,574)
|
|
250,000
|
|
(5,574)
|
Repayment of
revolving credit facility
|
|
—
|
|
(25,000)
|
|
(25,000)
|
|
(25,000)
|
Equipment loan
facilities, drawdowns net of transaction costs
|
|
—
|
|
3,463
|
|
—
|
|
3,463
|
Repayment of
equipment loan facilities
|
|
(4,937)
|
|
(10,067)
|
|
(15,733)
|
|
(12,379)
|
Interest and
commitment fees paid
|
|
(4,128)
|
|
(6,499)
|
|
(7,904)
|
|
(12,269)
|
Common shares issued
for cash on exercise of stock options
|
|
11,121
|
|
7,005
|
|
27,465
|
|
28,170
|
Dividends
paid
|
|
—
|
|
—
|
|
(10,368)
|
|
—
|
Principal payments on
lease arrangements
|
|
(816)
|
|
(744)
|
|
(1,645)
|
|
(1,501)
|
Restricted cash
movement
|
|
174
|
|
(398)
|
|
2,278
|
|
(1,254)
|
Cash provided
(used) by financing activities of continuing
operations
|
|
251,414
|
|
(37,814)
|
|
219,093
|
|
(26,344)
|
Cash used by
financing activities of discontinued operations
|
|
—
|
|
(99)
|
|
—
|
|
(282)
|
Cash provided
(used) by financing activities
|
|
251,414
|
|
(37,913)
|
|
219,093
|
|
(26,626)
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Expenditures on
mining interests:
|
|
|
|
|
|
|
|
|
Fekola Mine
|
|
(52,340)
|
|
(12,829)
|
|
(126,473)
|
|
(34,113)
|
Masbate
Mine
|
|
(4,529)
|
|
(7,520)
|
|
(9,290)
|
|
(15,964)
|
Otjikoto
Mine
|
|
(10,920)
|
|
(17,221)
|
|
(22,652)
|
|
(24,503)
|
Gramalote
Project
|
|
(446)
|
|
(614)
|
|
(13,124)
|
|
(1,802)
|
Other exploration and
development
|
|
(11,883)
|
|
(12,563)
|
|
(21,247)
|
|
(19,184)
|
Non-refundable
deposit received on Toega Property
|
|
9,000
|
|
—
|
|
9,000
|
|
—
|
Other
|
|
1,109
|
|
553
|
|
1,092
|
|
402
|
Cash used by
investing activities of continuing operations
|
|
(70,009)
|
|
(50,194)
|
|
(182,694)
|
|
(95,164)
|
Cash used by
investing activities of discontinued operations
|
|
—
|
|
(23,164)
|
|
—
|
|
(36,691)
|
Cash used by
investing activities
|
|
(70,009)
|
|
(73,358)
|
|
(182,694)
|
|
(131,855)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
|
419,494
|
|
(18,455)
|
|
490,701
|
|
20,753
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
236
|
|
638
|
|
(3,628)
|
|
261
|
Cash and cash
equivalents, beginning of period
|
|
207,939
|
|
141,583
|
|
140,596
|
|
102,752
|
Less cash
associated with discontinued operations, end of
period
|
|
—
|
|
(10,245)
|
|
—
|
|
(10,245)
|
Cash and cash
equivalents, end of period
|
|
$
|
627,669
|
|
$
|
113,521
|
|
$
|
627,669
|
|
$
|
113,521
|
|
|
|
|
|
|
|
|
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United
States dollars)
(Unaudited)
|
|
As at June
30,
2020
|
|
As at December
31,
2019
|
Assets
|
|
|
|
|
Current
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
627,669
|
|
$
|
140,596
|
Accounts receivable,
prepaids and other
|
|
37,541
|
|
37,890
|
Value-added and other
tax receivables
|
|
11,752
|
|
11,070
|
Inventories
|
|
244,963
|
|
217,923
|
Assets classified as
held for sale
|
|
11,855
|
|
22,021
|
|
|
933,780
|
|
429,500
|
|
|
|
|
|
Value-added tax
receivables
|
|
35,503
|
|
25,153
|
Mining
interests
|
|
|
|
|
Owned by subsidiaries
and joint operations
|
|
2,170,394
|
|
2,046,731
|
Investments in joint
ventures and associates
|
|
56,106
|
|
130,736
|
Other
assets
|
|
47,272
|
|
49,615
|
Deferred income
taxes
|
|
3,248
|
|
1,336
|
|
|
$
|
3,246,303
|
|
$
|
2,683,071
|
Liabilities
|
|
|
|
|
Current
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
78,374
|
|
$
|
83,370
|
Current income and
other taxes payable
|
|
135,909
|
|
53,396
|
Dividend
payable
|
|
20,850
|
|
—
|
Current portion of
long-term debt
|
|
22,342
|
|
26,030
|
Current portion of
derivative instruments at fair value
|
|
5,935
|
|
1,909
|
Other current
liabilities
|
|
2,756
|
|
357
|
|
|
266,166
|
|
165,062
|
|
|
|
|
|
Long-term
debt
|
|
448,750
|
|
235,821
|
Mine restoration
provisions
|
|
89,512
|
|
75,419
|
Deferred income
taxes
|
|
151,630
|
|
145,590
|
Employee benefits
obligation
|
|
5,252
|
|
4,736
|
Other long-term
liabilities
|
|
7,805
|
|
4,791
|
|
|
969,115
|
|
631,419
|
Equity
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share
capital
|
|
|
|
|
Issued: 1,043,204,042 common shares
(Dec 31, 2019 – 1,030,399,987)
|
|
2,380,922
|
|
2,339,874
|
Contributed
surplus
|
|
50,611
|
|
56,685
|
Accumulated other
comprehensive loss
|
|
(144,546)
|
|
(145,071)
|
Deficit
|
|
(93,858)
|
|
(261,245)
|
|
|
2,193,129
|
|
1,990,243
|
Non-controlling
interests
|
|
84,059
|
|
61,409
|
|
|
2,277,188
|
|
2,051,652
|
|
|
$
|
3,246,303
|
|
$
|
2,683,071
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/b2gold-reports-strong-q2-2020-results-and-doubling-quarterly-dividend-to-0-04-per-share-quarterly-records-for-gold-revenue-and-operating-cash-flows-cash-operating-costs-and-aisc-less-than-budget-301107184.html
SOURCE B2Gold Corp.