VANCOUVER, BC, November 2, 2021 /PRNewswire/ - B2Gold
Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the
"Company") is pleased to announce its operational and financial
results for the third quarter and first nine months of 2021. The
Company previously released its gold production and gold revenue
results for the third quarter and first nine months of 2021. All
dollar figures are in United
States dollars unless otherwise indicated.
2021 Third Quarter Highlights
- Total gold production of 310,261 ounces (including 14,538
ounces of attributable production from Calibre Mining Corp.
("Calibre")), above budget by 7% (20,871 ounces), and consolidated
gold production of 295,723 ounces from the Company's three
operating mines, above budget by 7% (20,083 ounces)
- Consolidated gold revenue of $511
million on sales of 286,650 ounces at an average realized
gold price of $1,782 per ounce
- Record quarterly gold production achieved by both the Fekola
Mine of 165,557 ounces and Otjikoto Mine of 68,959 ounces
- In September 2021, the Fekola
Mine produced its 2 millionth ounce of gold, 4 years from the
commencement of production
- Increased Fekola's and Masbate's production guidance; for
full-year 2021, the Fekola Mine is now forecast to produce between
560,000 to 570,000 ounces of gold (original guidance was between
530,000 to 560,000 ounces) and the Masbate Mine between 215,000 to
225,000 ounces of gold (original guidance was between 200,000 to
210,000 ounces)
- Consolidated cash flow provided by operating activities from
the Company's three operating mines of $320
million
- Total cash operating costs (see "Non-IFRS Measures")
(including estimated attributable results for Calibre) of
$445 per ounce produced and
consolidated cash operating costs from the Company's three
operating mines of $418 per ounce
produced, both approximately in-line with budget
- Total all-in sustaining costs ("AISC") (see "Non-IFRS
Measures") (including estimated attributable results for
Calibre) of $795 per ounce sold and
consolidated AISC from the Company's three operating mines of
$777 per ounce sold, both
approximately in-line with budget
- Net income attributable to the shareholders of the Company of
$123 million ($0.12 per share); adjusted net income (see
"Non-IFRS Measures") attributable to the shareholders of the
Company of $123 million ($0.12 per share)
- On October 25, 2021, the Company
entered into an agreement with West African Resources ("WAF") to
sell its 81% interest in the Kiaka Project in Burkina Faso for a combination of cash, WAF
shares and production royalties
2021 First Nine Months Highlights
- Total gold production of 742,517 ounces (including 43,771
ounces of attributable production from Calibre), above budget by 7%
(49,682 ounces), and consolidated gold production of 698,746 ounces
from the Company's three operating mines, above budget by 7%
(47,161 ounces)
- Consolidated gold revenue of $1.2
billion on sales of 689,051 ounces at an average realized
gold price of $1,794 per ounce
- Consolidated cash flow provided by operating activities from
the Company's three operating mines of $458
million
- Total cash operating costs (see "Non-IFRS Measures")
(including estimated attributable results for Calibre) of
$556 per ounce produced and
consolidated cash operating costs from the Company's three
operating mines of $532 per ounce
produced, both approximately in-line with budget
- Total all-in sustaining costs ("AISC") (see "Non-IFRS
Measures") (including estimated attributable results for
Calibre) of $900 per ounce sold and
consolidated AISC from the Company's three operating mines of
$887 per ounce sold, both
approximately in-line with budget
- Net income attributable to the shareholders of the Company of
$283 million ($0.27 per share); adjusted net income (see
"Non-IFRS Measures") attributable to the shareholders of the
Company of $272 million ($0.26 per share)
- For full-year 2021, B2Gold has increased its total gold
production guidance range to between 1,015,000 - 1,055,000 ounces
(including 50,000 – 60,000 attributable ounces projected from
Calibre) (original guidance was between 970,000 and 1,030,000
ounces)
- For full-year 2021, the Company's total consolidated cash
operating costs are expected to be within the guidance range of
between $500 and $540 per ounce and total consolidated AISC are
expected to be at the upper-end of the guidance range of between
$870 and $910 per ounce
- Based on current assumptions, including an average gold price
of $1,800 per ounce, the Company now
expects to generate cashflows from operating activities of
approximately $650 million for the
full-year 2021 (original guidance was $630
million) of which approximately $510
million is expected to be generated in the second half of
2021
Third Quarter and First Nine Months of 2021 Operational
Results
Total gold production in the third quarter of 2021 was 310,261
ounces (including 14,538 ounces of attributable production from
Calibre), above budget by 7% (20,871 ounces) and consolidated gold
production from the Company's three operating mines was 295,723
ounces, above budget by 7% (20,083 ounces) with solid performances
from the Company's three mines, with each mine exceeding its
budgeted production for the third quarter of 2021 (see "Operations"
section below). Both the Fekola and Otjikoto mines achieved record
quarterly gold production in the third quarter of 2021. As planned,
with increased throughput at the Fekola mill together with the
completion of the significant waste stripping campaigns at both the
Fekola and Otjikoto mines in the first half of 2021 (Phase 5 and
Phase 6 of the Fekola Pit, and Phase 3 of the Wolfshag and Otjikoto
pits), consolidated gold production in the third quarter of 2021
increased significantly by 19% (46,990 ounces) compared to the
third quarter of 2020, as mining at Fekola reached the higher-grade
zones of the Fekola Pit and mining at Otjikoto reached the
higher-grade zone at the base of the Wolfshag Pit. Consolidated
gold production also increased significantly by 50% (98,343 ounces)
over the second quarter of 2021.
For the third quarter of 2021, total cash operating costs
(including estimated attributable results for Calibre) were
$445 per ounce produced ($482 per ounce sold) and consolidated cash
operating costs from the Company's three operating mines were
$418 per ounce produced ($456 per ounce sold), both approximately in-line
with budget and comparable with the third quarter of 2020. In the
third quarter of 2021, higher than budgeted gold production largely
offset the impact of higher than budgeted realized fuel prices,
processing costs and stronger local currencies, resulting in an
overall cost per ounce which was approximately in-line with budget.
Total AISC (including estimated attributable results for Calibre)
for the third quarter of 2021 were $795 per ounce sold and consolidated AISC from
the Company's three operating mines were $777 per ounce sold, both approximately in-line
with budget (attributable to higher than budgeted gold ounces sold,
higher than budgeted gains on settled fuel derivatives and lower
than budgeted sustaining capital expenditures, largely offsetting
higher than budgeted operating costs ) and comparable with the
third quarter of 2020. The lower than budgeted sustaining capital
expenditures were primarily the result of timing of expenditures
and are expected to be incurred in the fourth quarter of 2021.
For the first nine months of 2021, total gold production was
742,517 ounces (including 43,771 ounces of attributable production
from Calibre), above budget by 7% (49,682 ounces), and 4% (27,751
ounces) lower than the first nine months of 2020 due to the focus
on waste stripping at Fekola and Otjikoto in the first half of
2021. Consolidated gold production from the Company's three
operating mines was 698,746 ounces in the first nine months of
2021, above budget by 7% (47,161 ounces).
For the first nine months of 2021, total cash operating costs
(including estimated attributable results for Calibre) were
$556 per ounce produced ($568 per ounce sold) and consolidated cash
operating costs from the Company's three operating mines were
$532 per ounce produced ($544 per ounce sold), both approximately in-line
with budget. As expected, the Company's consolidated cash operating
costs were higher in the first nine months of 2021 compared to
$388 per ounce produced ($391 per ounce sold) in the first nine months of
2020, mainly due to the planned lower gold production together with
higher realized input costs in the first nine months of 2021
(resulting from higher period stripping activities, higher fuel and
processing costs and higher import duties). Total AISC (including
estimated attributable results for Calibre) for the first nine
months of 2021 were $900 per ounce
sold (first nine months of 2020 - $740 per ounce sold) and consolidated AISC from
the Company's three operating mines were $887 per ounce sold (first nine months of 2020 -
$726 per ounce sold), both
approximately in-line with budget.
For full-year 2021, based on strong production performance in
the first nine months of 2021, the Company has increased its total
gold production guidance to between 1,015,000 - 1,055,000 ounces
(including 50,000 – 60,000 attributable ounces projected from
Calibre) (original guidance was between 970,000 and 1,030,000
ounces). For full-year 2021, the Company's total consolidated cash
operating costs are expected to be within the Company's guidance
range of between $500 and
$540 per ounce and total consolidated
AISC are expected to be at the upper-end of the Company's guidance
range of between $870 and
$910 per ounce. The Company is still
forecasting to meet its total consolidated cost per ounce guidance
ranges even in the current inflationary cost environment,
reflecting how well the Company's operating mines and their
management teams have performed and continue to perform in
2021.
Third Quarter and First Nine Months of 2021 Financial
Results
For the third quarter of 2021, consolidated gold revenue was
$511 million on sales of 286,650
ounces at an average realized gold price of $1,782 per ounce, compared to $487 million on sales of 253,200 ounces at an
average realized gold price of $1,924
per ounce in the third quarter of 2020. The increase in gold
revenue of 5% ($24 million) was 13%
attributable to the increase in gold ounces sold (mainly due to the
higher gold production and timing of gold shipments), partially
offset by an 8% impact from the decrease in the average realized
gold price.
Cash flow provided by operating activities was $320 million in the third quarter of 2021
compared to $300 million in the third
quarter of 2020. The increase over the third quarter of 2020 was
mainly due to higher inflows of value added tax receivables in the
third quarter of 2021. Operating cashflows in the third quarter of
2021 benefitted from higher than budgeted gold production and sales
volumes as well as from the timing of refunds for certain value
added tax receivables and other working capital items. Based on
current assumptions, including an average gold price of
$1,800 per ounce for the fourth
quarter of 2021, the Company is now forecasting to generate
cashflows from operating activities of approximately $650 million (original guidance was $630 million) for the full-year
2021.
Net income for the third quarter of 2021 was $135 million compared to $277 million for the third quarter of 2020. Net
income attributable to the shareholders of the Company was
$123 million ($0.12 per share) compared to $263 million ($0.25
per share) for the third quarter of 2020. In the third quarter of
2020, the Company identified a higher sustained long-term gold
price as an indicator of impairment reversal for the Masbate Mine
resulting in a net impairment reversal of $122 million (pre-tax $174
million impairment reversal less $52
million deferred tax expense). Adjusted net income
attributable to the shareholders of the Company (see "Non-IFRS
Measures") was $123 million
($0.12 per share) for the third
quarter of 2021 compared to adjusted net income of $161 million ($0.15
per share) for the third quarter of 2020.
For the first nine months of 2021, consolidated gold revenue was
$1.2 billion on sales of 689,051
ounces at an average realized gold price of $1,794 per ounce compared to $1.3 billion on sales of 749,800 ounces at an
average realized gold price of $1,746
per ounce in the first nine months of 2020. The decrease in gold
revenue of 6% ($73 million) was
mainly attributable to the decrease in gold ounces sold (mainly due
to the lower gold production and timing of gold
shipments).
Cash flow provided by operating activities was $458 million in the first nine months of 2021
compared to $754 million in the first
nine months of 2020. The decrease was mainly due to lower revenues
of $73 million, higher production
costs of $81 million and higher
working capital outflows in the first nine months of 2021, most
significantly for value-added taxes and current income and other
taxes payables. Current income tax payments in the first nine
months of 2021 included approximately $140
million related to 2020 outstanding tax liability
obligations (comprised mainly of Fekola outstanding 2020 tax
liabilities of $75 million and Fekola
2020 priority dividend obligations of $46
million). Based on current assumptions, including an average
gold price of $1,800 per ounce for
2021, the Company is forecasting to make total cash income tax
payments in 2021 of approximately $380
million, including the $140
million related to 2020 outstanding tax liability
obligations discussed above.
For the first nine months of 2021, net income was $308 million compared to $498 million for the first nine months of 2020.
Net income attributable to the shareholders of the Company was
$283 million ($0.27 per share) compared to $460 million ($0.44
per share) for the first nine months of 2020. Adjusted net income
attributable to the shareholders of the Company was $272 million ($0.26
per share) for the first nine months of 2021 compared to adjusted
net income of $368 million
($0.35 per share) for the first nine
months of 2020.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and
liquidity. At September 30, 2021, the
Company had cash and cash equivalents of $547 million (December 31,
2020 - $480 million) and
working capital of $683 million
(December 31, 2020 - $465 million). In addition, the Company's
$600 million Revolving Credit
Facility remains fully undrawn and available.
Due to the Company's strong net positive cash position, strong
operating results and the current higher gold price environment,
B2Gold's quarterly dividend rate is expected to be maintained at
$0.04 per common share (or an
annualized rate of $0.16 per common
share), one of the highest dividend yields in the gold sector.
Based on current assumptions, including an average gold price of
$1,800 per ounce for the fourth
quarter of 2021, the Company is now forecasting to generate
cashflows from operating activities of approximately $650 million (original guidance was $630 million) for the full-year 2021.
Operations
Mine-by-mine gold production in the third quarter and first nine
months of 2021 (including the Company's estimated 33% share of
Calibre's production) was as follows:
Mine
|
Q3
2021 Gold
Production (ounces)
|
First Nine
Months 2021 Gold Production (ounces)
|
Revised Full-Year 2021 Guidance Gold Production
(ounces)
|
Original Full-Year 2021 Guidance Gold Production
(ounces)
|
Fekola
|
165,557
|
404,256
|
560,000 -
570,000
|
530,000 -
560,000
|
Masbate
|
61,207
|
175,598
|
215,000 -
225,000
|
200,000 -
210,000
|
Otjikoto
|
68,959
|
118,892
|
190,000 -
200,000
|
190,000 -
200,000
|
B2Gold
Consolidated (1)
|
295,723
|
698,746
|
965,000 -
995,000
|
920,000 -
970,000
|
|
|
|
|
|
Equity
interest
in Calibre (2)
|
14,538
|
43,771
|
50,000 -
60,000
|
50,000 -
60,000
|
|
|
|
|
|
Total
|
310,261
|
742,517
|
1,015,000 -
1,055,000
|
970,000 -
1,030,000
|
(1)
|
"B2Gold
Consolidated" - gold production is presented on a 100% basis, as
B2Gold fully consolidates the results of its Fekola, Masbate and
Otjikoto mines in its consolidated financial statements (even
though it does not own 100% of these
operations).
|
(2)
|
"Equity interest
in Calibre" - represents the Company's approximate 33% indirect
share of the operations of Calibre's El Limon and La Libertad
mines. B2Gold applies the equity method of accounting for its 33%
ownership interest in Calibre.
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold produced basis) in the third quarter and first nine months of
2021 were as follows (presented on a 100% basis):
Mine
|
Q3
2021 Cash Operating
Costs ($ per ounce
produced)
|
First Nine
Months 2021 Cash Operating Costs ($ per ounce
produced)
|
Full-year
2021 Guidance Cash Operating Costs ($ per ounce
produced)
|
Fekola
|
$363
|
$478
|
$405 - $445
|
Masbate
|
$609
|
$611
|
$650 - $690
|
Otjikoto
|
$382
|
$597
|
$480 - $520
|
B2Gold
Consolidated
|
$418
|
$532
|
$480 -
$520
|
|
|
|
|
Equity interest
in Calibre (1)
|
$989
|
$949
|
$920 -
$1,020
|
|
|
|
|
Total
|
$445
|
$556
|
$500 -
$540
|
(1)
|
Calibre's 2021
forecast cash operating costs are assumed to be consistent
throughout 2021.
|
Mine-by-mine cash operating costs per ounce (on a per ounce of
gold sold basis) in the third quarter and first nine months of 2021
were as follows (presented on a 100% basis):
Mine
|
Q3
2021 Cash Operating
Costs ($ per ounce
sold)
|
First Nine Months
2021 Cash Operating
Costs ($ per ounce
sold)
|
Full-year
2021 Guidance Cash Operating Costs ($ per ounce sold)
|
Fekola
|
$424
|
$494
|
$405 - $445
|
Masbate
|
$546
|
$597
|
$650 - $690
|
Otjikoto
|
$443
|
$635
|
$480 - $520
|
B2Gold
Consolidated
|
$456
|
$544
|
$480 -
$520
|
|
|
|
|
Equity interest
in Calibre (1)
|
$991
|
$945
|
$920 -
$1,020
|
|
|
|
|
Total
|
$482
|
$568
|
$500 -
$540
|
(1)
|
Calibre's 2021
forecast cash operating costs are assumed to be consistent
throughout 2021.
|
Mine-by-mine AISC (on a per ounce of gold sold basis) in the
third quarter and first nine months of 2021 were as follows
(presented on a 100% basis):
Mine
|
Q3
2021 AISC ($
per ounce sold)
|
First Nine
Months 2021 AISC ($
per ounce sold)
|
Full-year
2021 Guidance AISC ($
per ounce sold)
|
Fekola
|
$716
|
$772
|
$745 - $785
|
Masbate
|
$751
|
$820
|
$955 - $995
|
Otjikoto
|
$781
|
$1,137
|
$830 - $870
|
B2Gold
Consolidated
|
$777
|
$887
|
$860 -
$900
|
|
|
|
|
Equity interest
in Calibre (1)
|
$1,151
|
$1,110
|
$1,040 -
$1,140
|
|
|
|
|
Total
|
$795
|
$900
|
$870 -
$910
|
(1)
|
Calibre's 2021
forecast AISC are assumed to be consistent throughout
2021.
|
Fekola Gold Mine – Mali
The Fekola Mine in Mali
continued its strong operational performance through the third
quarter of 2021, with record quarterly gold production of 165,557
ounces, 6% (9,557 ounces) above budget, and 9% (13,022 ounces)
higher compared to the third quarter of 2020. The increase was due
to higher mill throughput, partially offset by lower processed
grade, as Fekola's low-grade stockpiles were used to supplement the
additional unbudgeted mill feed required as a result of the higher
than budgeted processed tonnes. As planned, with the completion of
the waste stripping campaign relating to the development of Phases
5 and 6 of the Fekola Pit in the first half of 2021, Fekola's gold
production increased significantly by 46% (51,946 ounces) over the
second quarter of 2021, as mining reached the higher-grade zones in
Phase 5 of the Fekola Pit in the third quarter of 2021. In
September 2021, the Fekola Mine
produced its 2 millionth ounce of gold, 4 years from the
commencement of production.
For the third quarter of 2021, mill feed grade was 2.30 grams
per tonne ("g/t") compared to budget of 2.71 g/t and 3.22 g/t in
the third quarter of 2020; mill throughput was 2.36 million tonnes
compared to budget of 1.91 million tonnes and 1.56 million tonnes
in the third quarter of 2020; and gold recovery averaged 94.8%
compared to budget of 94.0% and 94.6% in the third quarter of 2020.
Fekola's processing facilities continued to outperform in the third
quarter of 2021 (following the successful completion of the Fekola
mill expansion in September 2020)
with record quarterly throughput of 2.36 million tonnes, 24% above
budget and 51% higher than the third quarter of 2020. The higher
than budgeted mill throughput was due to favourable ore
fragmentation and hardness, as well as optimization of the grinding
circuit. Based on the positive results noted to date through to the
third quarter of 2021, Fekola's annualized throughput rate is now
expected to average 8.3 million tonnes per annum ("Mtpa") for 2021
and average approximately 9.0 Mtpa (over the long-term), based on
an ore blend including fresh rock and weathered material
(saprolite).
After review of an Environmental and Social Impact Assessment by
the Malian authorities, the existing Medinandi (Fekola) permit has
been updated to include the Cardinal zone, located within 500
metres of the current Fekola resource pit (the initial Inferred
Mineral Resource estimate for Cardinal is 640,000 ounces of gold in
13.0 million tonnes of ore at 1.54 g/t gold). Exploration drilling
at Cardinal is ongoing and recent drill results have returned good
gold grades over significant widths below the current resource
which remains open at depth and along strike. Initial mining
operations at Cardinal have commenced and will continue to ramp up.
To September 30, 2021, 95,489 tonnes
at an average grade of 1.45 g/t have been mined at Cardinal. The
Company is in the process of updating the Fekola Mine Plan to
include production from Cardinal which has the potential to add an
average of approximately 60,000 ounces per year over the next 6 to
8 years (based on Cardinal's inferred resource only) to Fekola's
annual gold production. Grade control drilling at Cardinal is
ongoing to upgrade a portion of the Mineral Resource estimate to
the Indicated category for 2022 production budget purposes.
For the third quarter of 2021, Fekola's cash operating costs
were $363 per ounce produced
($424 per ounce sold) (Q3 2020 -
$333 per ounce produced),
approximately in-line with budget, as higher than budgeted gold
production largely offset the impact of higher than budgeted fuel
and processing costs, less capitalized waste stripping than
budgeted and higher than budgeted site general and camp costs
related to COVID-19 mitigation measures. Fekola's AISC for the
third quarter of 2021 were $716 per
ounce sold (Q3 2020 - $584 per ounce
sold), approximately in-line with budget, as higher than budgeted
gold ounces sold together with higher than budgeted realized gains
on fuel derivatives and lower than budgeted sustaining capital
expenditures (mainly due to lower than budgeted pre-stripping
costs) were largely offset by higher than budgeted operating costs
discussed above. The lower than budgeted sustaining capital
expenditures were primarily the result of timing of expenditures
and are expected to be incurred in the fourth quarter of
2021.
For the first nine months of 2021, the Fekola Mine produced
404,256 ounces of gold, above budget by 6% (21,256 ounces) for the
reasons outlined above. As expected, compared to the first nine
months of 2020, gold production was lower by 13% (59,714 ounces) as
a result of the higher planned waste stripping and lower mined ore
grades in the first half of 2021, as Phases 5 and 6 of the Fekola
Pit were developed.
For the first nine months of 2021, Fekola's cash operating costs
were $478 per ounce produced
($494 per gold ounce sold),
approximately in-line with budget. As expected, Fekola's cash
operating were higher than $294 per
ounce produced ($299 per ounce sold)
in the first nine months of 2020, mainly due to the planned lower
production together with higher fuel and processing costs. Fekola's
AISC for the first nine months of 2021 were $772 per ounce sold (first nine months of 2020 -
$556 per ounce sold), approximately
in-line with budget.
Capital expenditures in the third quarter of 2021 totaled
$28 million, primarily consisting of
$15 million for pre-stripping,
$5 million for mobile equipment
purchases and rebuilds, $3 million
for tailings storage facility expansion and equipment, $2 million for the development of Cardinal and
$1 million for the solar plant.
Capital expenditures in the first nine months of 2021 totaled
$54 million, primarily consisting of
$22 million for pre-stripping,
$9 million for the solar plant,
$7 million for mobile equipment
purchases and rebuilds, $4 million
for the development of Cardinal and $3
million for tailings storage facility expansion and
equipment. Due to the high processing throughput rates achieved
with a blend of fresh rock and saprolite ore, expansion of Fekola's
existing tailings storage facility is required one year ahead of
schedule and commenced in the third quarter of 2021. Design and
planning for a new tailings storage facility is also underway, with
construction commencing as early as in the fourth quarter of
2022.
Based on Fekola's strong year-to-date performance, the Company
has increased Fekola's annual production guidance range to between
560,000 to 570,000 ounces of gold (original guidance range was
between 530,000 to 560,000 ounces). Cash operating costs for the
year are expected to be at the upper end of Fekola's guidance range
of between $405 and $445 per ounce and AISC are also expected to be
at the upper end of Fekola's guidance range of between $745 and $785 per
ounce.
Menankoto Permit
As previously disclosed, the Company has formally commenced
arbitration proceedings against the Republic of Mali with respect to the renewal of the
Menankoto exploration permit (the "Menankoto Permit") which forms
part of the Anaconda Area and is
located 20 kilometers north of the Fekola Mine licence area.
Notwithstanding the commencement of arbitration proceedings, the
Company is committed to continuing its ongoing discussions with the
Malian Government to resolve the issue and remains optimistic that
the renewal dispute can be resolved over the course of the next few
months. Since the Company commenced its investment in Mali, B2Gold has always enjoyed a positive and
mutually beneficial relationship with the Government of
Mali. Most recently, B2Gold
partnered with the Government of Mali to assist the people of Mali facing challenges created by the COVID-19
pandemic, as well as its impact on the mining sector. B2Gold
continues to explore additional ways in which it might help the
Government and local communities to deal with the impact of the
pandemic. We believe that continued exploration success in
Mali has the potential to deliver
significant production upside in both the near term and over the
longer term.
The operations at the Fekola Mine, which is situated on a
separate mining licence 20 kilometres from the Menankoto Permit and
is now projected to produce 560,000 to 570,000 ounces of gold in
2021, continue normally and have not been impacted by the dispute
relating to the Menankoto Permit. In addition, the Fekola Mine has
not included the Mineral Resources from the Anaconda area (comprised of the Menankoto
Permit and the Bantako North permit) in the current Fekola life of
mine plan. The Bantako North permit area (wholly owned and which
permit was recently renewed for an additional 3-year term) contains
a significant portion of the Mamba deposit saprolite material and
remains open. Preliminary planning by the Company has demonstrated
that a pit situated on the Bantako North permit area could provide
saprolite material for at least 1.5 to 2 years to feed the Fekola
mill commencing in 2022 subject to obtaining all necessary permits
and completion of a final mine plan. This additional feed to the
Fekola mill would benefit all stakeholders, including the
State of Mali, B2Gold's 20%
partner at the Fekola Mine.
Masbate Gold Mine – the
Philippines
The Masbate Mine in the
Philippines also continued its strong operational
performance with third quarter of 2021 gold production of 61,207
ounces, well above budget by 16% (8,236 ounces), as grade and
recovery both exceeded budget, and 14% (7,600 ounces) higher
compared to the third quarter of 2020, due to higher grade.
For the third quarter of 2021, mill feed grade was 1.24 g/t
compared to budget of 1.12 g/t and 1.05 g/t in the third quarter of
2020; mill throughput was 1.84 million tonnes compared to budget of
2.05 million tonnes and 1.97 million tonnes in the third quarter of
2020; and gold recovery averaged 81.6% compared to budget of 71.9%
and 81.1% in the third quarter of 2020. In the third quarter of
2021, Masbate's mill recoveries continued to outperform the
recovery model and high-grade ore mined from both the Main Vein and
Montana pits produced higher
tonnage compared to the reserve model. In addition, high grade
zones of the Main Vein Pit, originally scheduled to be mined in the
fourth quarter of 2021, were mined and processed in the third
quarter of 2021, bringing gold production forward from the fourth
quarter of 2021. Masbate's mill throughput was below budget in
the third quarter of 2021 as the Company took the opportunity to
accelerate mill maintenance activities due to the positive
variances on mill feed grade and recoveries which benefited
Masbate's gold production in the third quarter.
For the third quarter of 2021, Masbate's cash operating costs
were $609 per ounce produced
($546 per ounce sold), below budget
by $35 per ounce produced (5%),
mainly due to higher than budgeted production, partially offset by
higher than budgeted fuel prices, and comparable with the third
quarter of 2020. Masbate's AISC for the third quarter of 2021 were
$751 per ounce sold, significantly
below budget by $198 per ounce sold
(21%), mainly due to higher than budgeted gold ounces sold, higher
than budgeted realized gains on fuel derivatives and lower than
budgeted sustaining capital expenditures. The lower than budgeted
sustaining capital expenditures were primarily the result of timing
of expenditures and are expected to be incurred either in the
fourth quarter of 2021 or in 2022. Compared to the third quarter of
2020, Masbate's AISC were also significantly lower by $321 per ounce sold (30%), mainly due to an
increase (of 41%) in gold ounces sold in the third quarter of 2021
(attributable to both higher production and timing of gold
sales).
For the first nine months of 2021, the Masbate Mine produced
175,598 ounces of gold, well above budget by 12% (19,478 ounces)
for the reasons outlined above, and 19% (28,465 ounces) higher than
the first nine months of 2020, mainly due to higher mined ore
grades as a result of mining through higher-grade zones of the Main
Vein and Montana pits in the first
nine months of 2021.
For the first nine months of 2021, Masbate's cash operating
costs were $611 per ounce produced
($597 per ounce sold), below both
budget by $66 per ounce produced
(10%) and the first nine months of 2020 by $35 per ounce produced (5%), mainly due to higher
production, partially offset by higher fuel prices. Masbate's AISC
for the first nine months of 2021 were $820 per ounce sold, significantly below both
budget by $162 per ounce sold (16%)
and the first nine months of 2020 by $192 per ounce sold (19%) for the reasons
outlined above.
Capital expenditures for the third quarter of 2021 totaled
$7 million, primarily consisting of
$2 million for tailings storage
facility projects, $1 million for
power plant maintenance, $1 million
for mobile equipment purchases and rebuilds, and $1 million for process plant equipment. Capital
expenditures in the first nine months of 2021 totaled $20 million, primarily consisting of $6 million for tailings storage facility
projects, $5 million for mobile
equipment purchases and rebuilds, $3
million for pre-stripping costs and $3 million for process plant equipment.
Based on Masbate's strong year-to-date performance, the Company
has increased Masbate's production guidance range to between
215,000 to 225,000 ounces of gold (original guidance range was
between 200,000 to 210,000 ounces). In the fourth quarter of 2021,
Masbate's gold production is expected to be approximately 45,000
ounces, reflecting the fact that a portion of its budgeted fourth
quarter production was rescheduled and mined in the third quarter
of 2021. Masbate's cash operating costs for the year are expected
to be within the guidance range of between $650 and $690 per
ounce and AISC are expected to be at or below the low end of
Masbate's guidance range of between $955 and $995 per
ounce.
Otjikoto Gold Mine – Namibia
The Otjikoto Mine in Namibia
also had a strong third quarter with record quarterly gold
production of 68,959 ounces of gold, above budget by 3% (2,290
ounces), mainly due to higher than budgeted throughput. As planned,
with the completion of the waste stripping campaigns at the
Wolfshag and Otjikoto pits in the first half of 2021, Otjikoto's
gold production increased significantly by 62% (26,368 ounces)
compared to the third quarter of 2020, as mining reached the
higher-grade zone at the base of the Wolfshag Pit in the third
quarter of 2021. Otjikoto's gold production also increased
significantly by 156% (42,068 ounces) over the second quarter of
2021.
For the third quarter of 2021, mill feed grade was 2.41 g/t
compared to budget of 2.46 g/t and 1.53 g/t in the third quarter of
2020; mill throughput was 0.90 million tonnes compared to budget of
0.86 million tonnes and 0.88 million tonnes in the third quarter of
2020; and gold recovery averaged 98.7% compared to budget of 98.3%
and 98.2% in the third quarter of 2020.
For the third quarter of 2021, Otjikoto's cash operating costs
were $382 per ounce produced
($443 per ounce sold) (Q3 2020 -
$435 per ounce produced),
approximately in-line with budget. Otjikoto's cash operating costs
per ounce were on budget in the third quarter of 2021 as the impact
of higher than budgeted fuel prices and a stronger Namibian dollar
were offset by higher than budgeted capitalized pre-stripping
costs. Otjikoto's AISC for the third quarter of 2021 were
$781 per ounce sold (Q3 2020 -
$917 per ounce sold), above budget by
$129 per ounce sold (20%), mainly due
to higher than budgeted sustaining capital expenditures (due to
higher than budgeted costs for pre-stripping and the timing of
equipment rebuilds) and lower than budgeted gold ounces sold (12%)
as a result of timing of gold sales.
For the first nine months of 2021, the Otjikoto Mine produced
118,892 ounces of gold, above budget by 6% (6,427 ounces), mainly
due to higher than budgeted throughput, and 7% (8,944 ounces) lower
than the first nine months of 2020 due to the focus on waste
stripping in the first half of 2021.
For the first nine months of 2021, Otjikoto's cash operating
costs were $597 per ounce produced
($635 per gold ounce sold),
approximately in-line with budget and, as expected, higher than the
first nine months of 2020 of $432 per
ounce produced ($419 per ounce sold),
mainly due to the lower planned production together with higher
fuel prices and a stronger Namibian dollar. Otjikoto's AISC for the
first nine months of 2021 were $1,137
per ounce sold (first nine months of 2020 - $841 per ounce sold), above budget by
$89 per ounce sold (8%), as a result
of higher than budgeted sustaining capital costs (due to higher
than budgeted costs for pre-stripping and the timing of equipment
rebuilds). The higher than budgeted pre-stripping costs of
$6 million for the first nine months
of 2021 are expected to be a permanent variance.
Capital expenditures for the third quarter of 2021 totaled
$19 million, primarily consisting of
$10 million for pre-stripping in the
Otjikoto Pit, $5 million for Wolfshag
underground project development, $3
million for mobile equipment rebuilds and replacements, and
$1 million for the national power
grid connection line. Capital expenditures for the first nine
months of 2021 totaled $59 million,
primarily consisting of $33 million
for pre-stripping in the Otjikoto and Wolfshag pits, $14 million for Wolfshag underground project
development, $7 million for mobile
equipment rebuilds and replacements and $3
million for the national power grid connection line.
Development of the Wolfshag underground mine continues to
progress with stope ore production expected to commence in early
2022. The initial underground Mineral Reserve estimate for the
down-plunge extension of the Wolfshag deposit included 210,000
ounces of gold in 1.2 million tonnes of ore at 5.57 g/t gold.
For full-year 2021, the Otjikoto Mine remains on track to
produce between 190,000 - 200,000 ounces of gold. Otjikoto's cash
operating costs are expected to be within the guidance range of
between $480 and $520 per ounce and AISC are expected to be at or
above the upper end of Otjikoto's guidance range of $830 to $870 per
ounce.
2021 Development
Gramalote Project (B2Gold – 50%/AngloGold Ashanti Limited – 50%)
- Colombia
The Gramalote Project, owned 50% B2Gold/50% AngloGold Ashanti
Limited ("AngloGold") is located in central Colombia, northeast of Medellin, in the Province of Antioquia.
Following a review of Gramalote's feasibility study work to
date, B2Gold believes that there is strong potential to improve the
economics of the project (economic highlights were previously
released on May 4, 2021 based on the
feasibility study work to date), which could be developed by
revisiting the original Gramalote Project design parameters
included in the existing mining permit (as applied in the Gramalote
Preliminary Economic Assessment in January
2020 and historical AngloGold studies) and further
optimizing project design. Review of the updated Gramalote Ridge
Mineral Resource also shows that further value can be created
through additional drilling of the Inferred portions of the Mineral
Resource area, both within and adjacent to the designed pit, with
at least 25,000 metres of drilling planned and progressing in 2021
and a mineral resource update expected in early 2022. In addition,
drilling is being carried out at the Trinidad deposit during the remainder of
2021.
The Gramalote Project team is advancing work on different
project optimization opportunities to potentially reduce capital
and operating costs, as well as improve operability and
sustainability of the Gramalote Project. Those activities include
road optimization and layout, pit design and phasing, blast design
optimization, river deviation changes, improved infrastructure
layout, and further optimization of plant design. As noted,
optimization efforts also include continuing exploration drilling
at the Gramalote deposit with additional drilling at the
Trinidad deposit, continuing to
implement the Resettlement Action Plan, advancing the purchase of
key properties required for project development, entering into a
development agreement with a power company to commence studies to
bring power to the Gramalote mill site, continuing the process of
formalization and removal of artisanal miners to outside of the
industrial area, and completing environmental and social studies
necessary to support the permit modifications that are identified
as part of the optimization process.
As the evaluation of the different optimization opportunities
advances, B2Gold is reviewing what changes in the design could
require minor and major permit amendments of the approved
Environmental and Social Impact Assessment (ESIA). The supporting
environmental and social studies continue to move forward as
planned. B2Gold expects that any minor or major permit amendments
required could potentially impact the development timeline and
delivery of the final feasibility study for the Gramalote Project
which is now expected in the second quarter of 2022. Completion of
the feasibility study is now scheduled for the second quarter of
2022 as a result of an increase in planned drilling and the impact
of ongoing COVID-19 restrictions. The revised 2021 budget of
$69 million represents an increase of
$17 million (Company's share
$8.5 million) over the initial
announced 2021 Gramalote Project budget of $52 million. If the final economics of the
feasibility study are positive and B2Gold and AngloGold make the
decision to develop Gramalote as an open-pit gold mine (decision
date expected mid-2022), B2Gold would utilize its proven internal
mine construction team to build the mine and mill facilities and
operate the mine on behalf of the Gramalote Project.
The Gramalote Project continues to benefit from strong federal
and local government support as well as continuing support from
local communities.
Summary and Outlook
The Company is pleased with its third quarter and first nine
months of 2021 gold production results. Based on a strong first
nine months of 2021, the Company has increased its total gold
production guidance to between 1,015,000 and 1,055,000 ounces
(including 50,000 to 60,000 attributable ounces projected from
Calibre) (original guidance was between 970,000 and 1,030,000
ounces). For full-year 2021, the Company's total consolidated cash
operating costs are expected to be within the guidance range of
between $500 and $540 per ounce and total consolidated AISC are
expected to be at the upper-end of the Company's guidance range of
between $870 and $910 per ounce. The Company is still forecasting
to meet its total consolidated cost per ounce guidance ranges even
in the current inflationary cost environment, reflecting how well
the Company's operating mines and their management teams have
performed and continue to perform in 2021.
Due to the Company's strong net positive cash position, strong
operating results and the current higher gold price environment,
B2Gold's quarterly dividend rate is expected to be maintained at
$0.04 per common share (or an
annualized rate of $0.16 per common
share), one of the highest dividend yields in the gold sector.
The Company also continues to advance its development projects
while at the same time reviewing its portfolio and divesting
non-core assets which it determines do not meet the Company's
investment criteria. Work continues on the Gramalote Project and
based on a review of the feasibility study work to date, B2Gold
believes that there is strong potential for a more robust project
and has recently agreed a revised 2021 budget with its 50% joint
venture partner, AngloGold, to advance the scope of planned
feasibility study work and for additional infill drilling of the
inferred portion of the Gramalote Mineral Resource and further
drilling of the Trinidad deposit.
Completion of the Gramalote feasibility study is now scheduled for
the second quarter of 2022 as a result of an increase in planned
drilling and the impact of ongoing COVID-19 restrictions. On
October 25, 2021, the Company entered
into an agreement with WAF to sell the Company's 81% interest in
the Kiaka Project in Burkina Faso
for a combination of cash, WAF shares and production royalties.
This allows the Company to both monetize its investment in Kiaka
to-date while at the same time benefit from the future development
of the project.
Following a very successful year for exploration in 2020, B2Gold
is conducting an aggressive exploration campaign in 2021 with a
budget of approximately $66 million
(excluding the Gramalote Project). Exploration is focused
predominantly in Mali, other
operating mine sites in Namibia
and the Philippines and grassroots
exploration programs around the world. Many years of target
generation and pursuing opportunities in prospective gold regions
have culminated in the Company allocating a record $25 million in 2021 to high quality targets for
its grassroots exploration programs, including several new regions.
This is evidenced by the recent positive exploration drill results
at the Company's joint venture in Finland. In Mali, and notwithstanding the commencement of
arbitration proceedings related to the renewal of the Menankoto
Permit, the Company is committed to continuing its ongoing
discussions with the Malian Government to resolve the issue and
remains optimistic that the renewal dispute can be resolved over
the course of the next few months. Since the Company commenced its
investment in Mali, B2Gold has
always enjoyed a positive and mutually beneficial relationship with
the Government of Mali.
The Company's ongoing strategy is to continue to maximize
profitable production from its mines, further advance its pipeline
of development and exploration projects, evaluate new exploration,
development and production opportunities and continue to pay an
industry leading dividend yield.
Third Quarter 2021 Financial Results – Conference
Call/Webcast Details
B2Gold executives will host a conference call to discuss the
results on Wednesday, November 3,
2021, at 10:00am
PDT/1:00pm EDT. You may access
the call by dialing the operator at +1 (778) 383-7413 (Vancouver), +1 (416) 764-8659 (Toronto) or +1 (888) 664-6392 (North American
toll free) prior to the scheduled start time or you may listen to
the call via webcast by clicking here. A playback version will be
available for two weeks after the call at +1 (416) 764-8677 (local
or international) or +1 (888) 390-0541 (North America toll free) (passcode 733464
#).
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.
On Behalf of B2GOLD CORP.
"Clive T. Johnson"
President and Chief
Executive
Officer
For more information on B2Gold, please visit the Company website
at www.b2gold.com or contact:
Ian
MacLean
|
Katie
Bromley
|
Vice President,
Investor
Relations
|
Manager, Investor
Relations & Public Relations
|
+1
604-681-8371
|
+1
604-681-8371
|
imaclean@b2gold.com
|
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE American LLC neither
approve nor disapprove the information contained in this news
release.
Production results and production guidance presented in this
news release reflect total production at the mines B2Gold operates
on a 100% project basis. Please see our Annual Information Form
dated March 30, 2021 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 $650 million in 2021, $510
million of which are expected to be generated in the second
half of 2021; remaining well positioned for continued strong
operational and financial performance for 2021; projected gold
production, cash operating costs and AISC on a consolidated and
mine by mine basis in 2021, including production being weighted
heavily to the second half of 2021; total consolidated gold
production of between 1,015,000 and 1,055,000 ounces in 2021; the
Fekola mill being expected to run at an annualized throughput rate
of 8.3 Mtpa for 2021 and average approximately 9.0 Mtpa (over the
long-term); settlement of the dispute relating to the
Menankoto Permit in the next couple of months; the potential for
the Bantako North permit area to provide saprolite material for at
least 1.5 to 2 years to feed the Fekola mill starting in 2022; the
potential for production from the Cardinal zone to add
approximately 60,000 ounces per year over the next 6 to 8 years to
the Company's production profile; the development of the
Wolfshag underground mine at Otjikoto, including the results of
such development and the costs and timing thereof; stope ore
production at the Wolfshag underground mine at Otjikoto commencing
in early 2022; the potential payment of future dividends, including
the timing and amount of any such dividends, and the expectation
that quarterly dividends will be maintained at the same level; and
B2Gold's attributable share 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.
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30
(Expressed in thousands of
United States dollars, except per
share amounts)
(Unaudited)
|
|
For the
three
months
ended
Sept. 30,
2021
|
|
For the
three
months
ended
Sept. 30,
2020
|
|
For the
nine
months
ended
Sept. 30,
2021
|
|
For the
nine
months
ended
Sept. 30,
2020
|
|
|
|
|
|
|
|
|
|
Gold
revenue
|
|
$
|
510,859
|
|
|
$
|
487,166
|
|
|
$
|
1,236,151
|
|
|
$
|
1,309,403
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Production costs
|
|
(130,770)
|
|
|
(104,892)
|
|
|
(374,695)
|
|
|
(293,435)
|
|
Depreciation and depletion
|
|
(111,768)
|
|
|
(77,090)
|
|
|
(256,304)
|
|
|
(223,284)
|
|
Royalties and
production taxes
|
|
(33,154)
|
|
|
(33,545)
|
|
|
(84,351)
|
|
|
(90,510)
|
|
Total cost of
sales
|
|
(275,692)
|
|
|
(215,527)
|
|
|
(715,350)
|
|
|
(607,229)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
235,167
|
|
|
271,639
|
|
|
520,801
|
|
|
702,174
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
(10,410)
|
|
|
(8,770)
|
|
|
(31,026)
|
|
|
(27,020)
|
|
Share-based
payments
|
|
(5,996)
|
|
|
(4,313)
|
|
|
(15,835)
|
|
|
(15,400)
|
|
Reversal of
impairment of long-lived assets
|
|
—
|
|
|
174,309
|
|
|
—
|
|
|
174,309
|
|
Write-down of mineral
property interests
|
|
—
|
|
|
(11,451)
|
|
|
—
|
|
|
(11,451)
|
|
Community
relations
|
|
(855)
|
|
|
(690)
|
|
|
(2,169)
|
|
|
(4,916)
|
|
Foreign exchange
losses
|
|
(2,718)
|
|
|
(3,669)
|
|
|
(3,758)
|
|
|
(8,002)
|
|
Share of net income
of associate
|
|
3,851
|
|
|
10,877
|
|
|
13,198
|
|
|
13,512
|
|
Other
|
|
(563)
|
|
|
(1,000)
|
|
|
(3,972)
|
|
|
(5,428)
|
|
Operating
income
|
|
218,476
|
|
|
426,932
|
|
|
477,239
|
|
|
817,778
|
|
|
|
|
|
|
|
|
|
|
Interest and
financing expense
|
|
(3,112)
|
|
|
(3,389)
|
|
|
(9,057)
|
|
|
(12,957)
|
|
Gains (losses) on
derivative instruments
|
|
5,484
|
|
|
(721)
|
|
|
23,024
|
|
|
(12,133)
|
|
Other
|
|
43
|
|
|
1,058
|
|
|
159
|
|
|
1,987
|
|
Income from
operations before taxes
|
|
220,891
|
|
|
423,880
|
|
|
491,365
|
|
|
794,675
|
|
|
|
|
|
|
|
|
|
|
Current income tax,
withholding and other taxes
|
|
(83,024)
|
|
|
(84,552)
|
|
|
(174,620)
|
|
|
(230,251)
|
|
Deferred income tax
expense
|
|
(2,996)
|
|
|
(62,289)
|
|
|
(9,060)
|
|
|
(66,416)
|
|
Net income for the
period
|
|
$
|
134,871
|
|
|
$
|
277,039
|
|
|
$
|
307,685
|
|
|
$
|
498,008
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Shareholders of the Company
|
|
$
|
123,110
|
|
|
$
|
262,868
|
|
|
$
|
283,122
|
|
|
$
|
459,601
|
|
Non-controlling interests
|
|
11,761
|
|
|
14,171
|
|
|
24,563
|
|
|
38,407
|
|
Net income for the
period
|
|
$
|
134,871
|
|
|
$
|
277,039
|
|
|
$
|
307,685
|
|
|
$
|
498,008
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
(attributable to
shareholders of the Company)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
|
$
|
0.25
|
|
|
$
|
0.27
|
|
|
$
|
0.44
|
|
Diluted
|
|
$
|
0.12
|
|
|
$
|
0.25
|
|
|
$
|
0.27
|
|
|
$
|
0.44
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
(in
thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
1,054,747
|
|
|
1,046,973
|
|
|
1,053,127
|
|
|
1,040,911
|
|
Diluted
|
|
1,060,687
|
|
|
1,063,818
|
|
|
1,061,756
|
|
|
1,055,609
|
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30
(Expressed in thousands of United
States dollars)
(Unaudited)
|
|
For the
three
months
ended
Sept. 30,
2021
|
|
For the
three
months
ended
Sept. 30,
2020
|
|
For the
nine
months
ended
Sept. 30,
2021
|
|
For the
nine
months
ended
Sept. 30,
2020
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
$
|
134,871
|
|
|
$
|
277,039
|
|
|
$
|
307,685
|
|
|
$
|
498,008
|
|
Mine restoration
provisions settled
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(208)
|
|
Non-cash charges,
net
|
|
122,258
|
|
|
(29,744)
|
|
|
265,304
|
|
|
149,323
|
|
Changes in non-cash
working capital
|
|
57,871
|
|
|
52,575
|
|
|
(113,107)
|
|
|
112,876
|
|
Changes in long-term
value added tax receivables
|
|
5,283
|
|
|
136
|
|
|
(2,061)
|
|
|
(6,044)
|
|
Cash provided by
operating activities
|
|
320,283
|
|
|
300,006
|
|
|
457,821
|
|
|
753,955
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Revolving credit
facility drawdowns
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250,000
|
|
Repayment of revolving
credit facility
|
|
—
|
|
|
(425,000)
|
|
|
—
|
|
|
(450,000)
|
|
Repayment of equipment
loan facilities
|
|
(7,236)
|
|
|
(5,266)
|
|
|
(21,806)
|
|
|
(20,999)
|
|
Interest and commitment
fees paid
|
|
(3,967)
|
|
|
(2,934)
|
|
|
(5,700)
|
|
|
(10,838)
|
|
Cash proceeds from
stock option exercises
|
|
1,943
|
|
|
15,670
|
|
|
3,777
|
|
|
43,135
|
|
Dividends
paid
|
|
(42,186)
|
|
|
(62,852)
|
|
|
(126,151)
|
|
|
(73,220)
|
|
Principal payments on
lease arrangements
|
|
(1,196)
|
|
|
(1,265)
|
|
|
(2,624)
|
|
|
(2,910)
|
|
Distributions to
non-controlling interests
|
|
(23,177)
|
|
|
—
|
|
|
(32,411)
|
|
|
—
|
|
Restricted cash
movement
|
|
293
|
|
|
(1,047)
|
|
|
792
|
|
|
1,231
|
|
Cash used by
financing activities
|
|
(75,526)
|
|
|
(482,694)
|
|
|
(184,123)
|
|
|
(263,601)
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Expenditures on mining
interests:
|
|
|
|
|
|
|
|
|
Fekola Mine
|
|
(27,961)
|
|
|
(29,186)
|
|
|
(54,078)
|
|
|
(155,659)
|
|
Masbate
Mine
|
|
(7,023)
|
|
|
(10,132)
|
|
|
(20,365)
|
|
|
(19,422)
|
|
Otjikoto
Mine
|
|
(19,371)
|
|
|
(19,044)
|
|
|
(59,337)
|
|
|
(41,696)
|
|
Gramalote
Project
|
|
(9,200)
|
|
|
(2,450)
|
|
|
(16,669)
|
|
|
(15,574)
|
|
Other exploration and
development
|
|
(13,944)
|
|
|
(11,274)
|
|
|
(39,368)
|
|
|
(32,521)
|
|
Purchase of common
shares of associate
|
|
—
|
|
|
—
|
|
|
(5,945)
|
|
|
—
|
|
Funding of reclamation
accounts
|
|
(1,071)
|
|
|
(8,697)
|
|
|
(4,570)
|
|
|
(8,697)
|
|
Non-refundable deposit
received on Toega Property
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,000
|
|
Other
|
|
2,071
|
|
|
(884)
|
|
|
(1,452)
|
|
|
561
|
|
Cash used by
investing activities
|
|
(76,499)
|
|
|
(81,667)
|
|
|
(201,784)
|
|
|
(264,008)
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
|
168,258
|
|
|
(264,355)
|
|
|
71,914
|
|
|
226,346
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(3,892)
|
|
|
2,146
|
|
|
(5,092)
|
|
|
(1,482)
|
|
Cash and cash
equivalents, beginning of period
|
|
382,141
|
|
|
627,669
|
|
|
479,685
|
|
|
140,596
|
|
Cash and cash
equivalents, end of period
|
|
$
|
546,507
|
|
|
$
|
365,460
|
|
|
$
|
546,507
|
|
|
$
|
365,460
|
|
|
|
|
|
|
|
|
|
|
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in
thousands of United States
dollars)
(Unaudited)
|
|
As at September
30,
2021
|
|
As at December
31,
2020
|
Assets
|
|
|
|
|
Current
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
546,507
|
|
|
$
|
479,685
|
|
Accounts receivable,
prepaids and other
|
|
36,356
|
|
|
21,306
|
|
Value-added and other
tax receivables
|
|
25,687
|
|
|
11,797
|
|
Inventories
|
|
269,795
|
|
|
238,055
|
|
Assets classified as
held for sale
|
|
97,188
|
|
|
11,855
|
|
|
|
975,533
|
|
|
762,698
|
|
|
|
|
|
|
Value-added tax
receivables
|
|
37,214
|
|
|
35,383
|
|
Mining
interests
|
|
|
|
|
Owned by subsidiaries
and joint operations
|
|
2,206,136
|
|
|
2,387,020
|
|
Investments in
associates
|
|
100,119
|
|
|
76,235
|
|
Other
assets
|
|
79,998
|
|
|
76,496
|
|
Deferred income
taxes
|
|
5,311
|
|
|
24,547
|
|
|
|
$
|
3,404,311
|
|
|
$
|
3,362,379
|
|
Liabilities
|
|
|
|
|
Current
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
87,623
|
|
|
$
|
89,062
|
|
Current income and
other taxes payable
|
|
77,585
|
|
|
154,709
|
|
Current portion of
long-term debt
|
|
28,779
|
|
|
34,111
|
|
Other current
liabilities
|
|
1,078
|
|
|
8,211
|
|
Liabilities associated
with assets held for sale
|
|
4,456
|
|
|
—
|
|
|
|
199,521
|
|
|
286,093
|
|
|
|
|
|
|
Long-term
debt
|
|
54,970
|
|
|
75,911
|
|
Mine restoration
provisions
|
|
94,818
|
|
|
104,282
|
|
Deferred income
taxes
|
|
206,851
|
|
|
220,903
|
|
Employee benefits
obligation
|
|
7,223
|
|
|
5,874
|
|
Other long-term
liabilities
|
|
6,950
|
|
|
8,726
|
|
|
|
570,333
|
|
|
701,789
|
|
Equity
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share
capital
|
|
|
|
|
Issued:
1,055,349,741 common shares (Dec 31, 2020 –
1,051,138,175)
|
|
2,418,515
|
|
|
2,407,734
|
|
Contributed
surplus
|
|
61,499
|
|
|
48,472
|
|
Accumulated other
comprehensive loss
|
|
(141,979)
|
|
|
(138,533)
|
|
Retained
earnings
|
|
412,050
|
|
|
254,343
|
|
|
|
2,750,085
|
|
|
2,572,016
|
|
Non-controlling
interests
|
|
83,893
|
|
|
88,574
|
|
|
|
2,833,978
|
|
|
2,660,590
|
|
|
|
$
|
3,404,311
|
|
|
$
|
3,362,379
|
|
|
|
|
|
|
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SOURCE B2Gold Corp.