130,000 oz of Gold / year - Q4 2009

Exploration & production. Properties in Nicaragua, Colombia, Panama & Russia

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Message: B2Gold Reports Strong Q2Results.

B2GOLD REPORTS STRONG Q2 2021 RESULTS WITH CONTINUED STRONG TOTAL GOLD PRODUCTION OF 211,612 OZ, 5% ABOVE BUDGET; ON TRACK TO MEET OR EXCEED THE UPPER END OF ITS ANNUAL PRODUCTION GUIDANCE RANGE OF 970,000 TO 1,030,000 OZ

B2Gold Corp. has released its operational and financial results for the second quarter and first half of 2021. The company previously released its gold production and gold revenue results for the second quarter and first half of 2021. All dollar figures are in U.S. dollars unless otherwise indicated.

2021 Second Quarter Highlights

 

  • Total gold production of 211,612 ounces (including 14,232 ounces of attributable production from Calibre Mining Corp. ("Calibre"), well above budget by 5% (10,269 ounces), and consolidated gold production of 197,380 ounces from the Company's three operating mines, well above budget by 5% (9,787 ounces) 
  • Consolidated gold revenue of $363 million on sales of 200,071 ounces at an average price of $1,814 per ounce 
  • Fekola's mill throughput `was a quarterly record of 2.29 million tonnes, 16% above budget and 47% higher than the second quarter of 2020, following the successful completion of the Fekola mill expansion in September 2020
  • Total cash operating costs (see "Non-IFRS Measures") (including estimated attributable results for Calibre) of $664 per ounce produced and consolidated cash operating costs from the Company's three operating mines of $649 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 $1,016 per ounce sold and consolidated AISC from the Company's three operating mines of $1,011 per ounce sold, both below budget by 3% 
  • Net income attributable to the shareholders of the Company of $68 million ($0.07 per share); adjusted net income (see "Non-IFRS Measures") attributable to the shareholders of the Company of $52 million ($0.05 per share) 
  • B2Gold maintains a strong financial position and liquidity with cash and cash equivalents of $382 million as at June 30, 2021, and its $600 million Revolving Credit Facility remains fully undrawn and available

 

2021 First Half Highlights

 

  • Total gold production of 432,256 ounces (including 29,233 ounces of attributable production from Calibre), well above budget by 7% (28,811 ounces), and consolidated gold production of 403,023 ounces from the Company's three operating mines, well above budget by 7% (27,078 ounces) 
  • Consolidated gold revenue of $725 million on sales of 402,401 ounces at an average price of $1,802 per ounce 
  • Total cash operating costs (including estimated attributable results for Calibre) of $636 per ounce produced and consolidated cash operating costs from the Company's three operating mines of $615 per ounce produced, both below budget by 4% 
  • Total AISC (including estimated attributable results for Calibre) of $974 per ounce sold, below budget by 8%, and consolidated AISC from the Company's three operating mines of $965 per ounce sold, below budget by 9%
  • Net income attributable to the shareholders of the Company of $160 million ($0.15 per share); adjusted net income attributable to the shareholders of the Company of $149 million ($0.14 per share) 
  • Construction of the Fekola solar plant now complete and 100% online; Fekola's solar production to date indicates that the plant will exceed initial power production estimates 
  • Selected as the recipient of five mining industry awards in the Philippines and Mali
  • For full-year 2021, B2Gold remains well positioned for continued strong operational and financial performance and is on track to meet or exceed the upper end of its total gold production forecast of between 970,000 - 1,030,000 ounces (including 50,000 {⊡ –} 60,000 attributable ounces projected from Calibre) with forecast total cash operating costs of between $500 - $540 per ounce and total AISC of between $870 - $910 per ounce 
  • Based on current assumptions, including a gold price of $1,800 per ounce, the Company expects to generate cashflows from operating activities of approximately $630 million for the full-year 2021 (approximately $500 million of cashflows from operating activities are expected to be generated in the second half of 2021)

 

Second Quarter and First Half of 2021 Operational Results 

Total gold production in the second quarter of 2021 was 211,612 ounces (including 14,232 ounces of attributable production from Calibre), well above budget by 5% (10,269 ounces), and consolidated gold production of 197,380 ounces from the Company's three operating mines, well above budget by 5% (9,787 ounces). 

The Fekola Mine in Mali continued its strong operational performance through the second quarter of 2021, producing 113,611 ounces of gold, 3% (3,611 ounces) above budget, as the Fekola processing facilities continued to outperform following the successful completion of the Fekola mill expansion in September 2020. In the second quarter of 2021, Fekola's mill throughput was a quarterly record of 2.29 million tonnes, 16% above budget and 47% higher than the second quarter of 2020. The Masbate Mine in the Philippines also continued its strong operational performance with second quarter of 2021 gold production of 56,878 ounces, well above budget by 8% (4,390 ounces), as processed grade (8% above budget) and recoveries (10% above budget) both exceeded budget which more than offset lower than budgeted throughput (8% below budget). The Otjikoto Mine in Namibia performed well during the second quarter of 2021, producing 26,891 ounces of gold, well above budget by 7% (1,786 ounces), mainly due to higher than budgeted processed grade (5% above budget) as the grade of ore sourced from the medium grade stockpile was slightly higher than anticipated during the second quarter. As expected, compared to the second quarter of 2020, total gold production was lower by 12% (29,981 ounces) due to planned significant waste stripping campaigns at both the Fekola and Otjikoto mines, which were largely completed in the first half of 2021 (for Phase 5 and Phase 6 of the Fekola Pit, and Phase 3 of the Wolfshag and Otjikoto pits). Gold production is expected to significantly increase in the second half of 2021, when mining at Fekola reaches the higher-grade zones of the Fekola Pit and mining at Otjikoto reaches the higher-grade zone at the base of the Wolfshag Pit.

For the second quarter of 2021, total cash operating costs (including estimated attributable results for Calibre) were $664 per ounce produced ($675 per ounce sold) and consolidated cash operating costs from the Company's three operating mines were $649 per ounce produced ($661 per ounce sold). Consolidated cash operating costs were approximately in-line with budget in the second quarter of 2021, as above budgeted gold production largely offset higher than budgeted realized fuel prices and processing costs. As expected, consolidated cash operating costs were higher in the second quarter of 2021 compared to $385 per ounce produced ($377 per ounce sold) in the second quarter of 2020, mainly due to the planned lower gold production and higher period stripping activities (described above). Total AISC (including estimated attributable results for Calibre) for the second quarter of 2021 were $1,016 per ounce sold (Q2 2020 - $712 per ounce sold) and consolidated AISC from the Company's three operating mines were $1,011 per ounce sold (Q2 2020 - $714 per ounce sold). Consolidated AISC were $32 per ounce sold (3%) below budget in the second quarter of 2021, reflecting higher than budgeted gold ounces sold, higher than budgeted gains on settled fuel derivatives and lower than budgeted sustaining capital expenditures partially offset by higher than budgeted royalties resulting from a higher average gold price realized than budgeted. The lower sustaining capital expenditures were mainly a result of timing of expenditures and are expected to be incurred later in 2021.

For the first half of 2021, total gold production was 432,256 ounces (including 29,233 ounces of attributable production from Calibre), well above budget by 7% (28,811 ounces), and 15% (74,199 ounces) lower than the first half of 2020 (for the same reasons outlined above). Consolidated gold production from the Company's three operating mines was 403,023 ounces in the first half of 2021. 

For the first half of 2021, total cash operating costs (including estimated attributable results for Calibre) were $636 per ounce produced ($628 per ounce sold) (first half of 2020 - $390 per ounce produced and $394 per ounce sold) and consolidated cash operating costs from the Company's three operating mines were $615 per ounce produced ($606 per ounce sold) (first half of 2020 - $376 per ounce produced and $380 per ounce sold). Consolidated cash operating costs were $25 per ounce produced (4%) below budget in the first half of 2021, mainly attributable to higher than budgeted gold production. Total AISC (including estimated attributable results for Calibre) for the first half of 2021 were $974 per ounce sold (first half of 2020 - $717 per ounce sold) and consolidated AISC from the Company's three operating mines were $965 per ounce sold (first half of 2020 - $705 per ounce sold). Consolidated AISC were $95 per ounce sold (9%) below budget in the first half of 2021, reflecting higher than budgeted gold ounces sold, higher than budgeted gains on settled fuel derivatives and lower than budgeted sustaining capital expenditures partially offset by higher than budgeted royalties resulting from a higher average gold price realized than budgeted. The lower sustaining capital expenditures were mainly a result of timing of expenditures and are expected to be incurred later in 2021.

For full-year 2021, the Company remains on track to meet or exceed the upper end of its total gold production forecast range of between 970,000 - 1,030,000 ounces (including 50,000 - 60,000 attributable ounces projected from Calibre) with total consolidated cash operating costs forecast to be between $500 - $540 per ounce and total consolidated AISC forecast to be between $870 - $910 per ounce. The Company's 2021 production guidance does not currently include the potential upside to increase Fekola's gold production in 2021 from the nearby Cardinal inferred resource area, where production is now expected to commence in the third quarter of 2021 and the higher than budgeted processing capacity realized to date at the expanded Fekola mill. 

For full-year 2021, as budgeted, the Company's consolidated gold production from its three operating mines is expected to be significantly weighted to the second half of 2021 due to the planned higher waste stripping campaigns at both the Fekola and Otjikoto mines which were largely completed in the first half of 2021. For the second half of 2021, consolidated gold production is expected to significantly increase over the first half of 2021 to between 555,000 {䑳 –} 585,000 ounces when mining reaches the higher grade portion of Phase 5 of the Fekola Pit and Phase 3 of the Wolfshag Pit. Based mainly on the weighting of production and timing of stripping, consolidated cash operating costs are expected to significantly improve to between $380 - $420 per ounce and consolidated AISC to between $745 - $785 per ounce during the second half of 2021. 

Second Quarter and First Half of 2021 Financial Results 

For the second quarter of 2021, consolidated gold revenue was $363 million on sales of 200,071 ounces at an average price of $1,814 per ounce, compared to $442 million on sales of 257,100 ounces at an average price of $1,719 per ounce in the second quarter of 2020. The decrease in gold revenue of 18% ($79 million) was 22% attributable to the decrease in gold ounces sold (mainly due to the lower gold production and timing of gold shipments), partially offset by a 4% impact from the increase in the average realized gold price. 

As expected, cash flow used by operating activities was $8 million in the second quarter of 2021 compared to cash flow generated of $238 million in the second quarter of 2020. The decrease was in-line with budget and was mainly due to lower revenues of $80 million, higher production costs of $35 million and higher working capital outflows in the second quarter of 2021 for value-added and other tax receivables and current income and other taxes payables. Current income tax payments in the second quarter 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 a 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).

Net income for the second quarter of 2021 was $74 million compared to $138 million for the second quarter of 2020. Net income attributable to the shareholders of the Company was $68 million ($0.07 per share) compared to $124 million ($0.12 per share) for the second quarter of 2020. Adjusted net income attributable to the shareholders of the Company (see "Non-IFRS Measures") was $52 million ($0.05 per share) compared to adjusted net income of $112 million ($0.11 per share) for the second quarter of 2020. 

For the first half of 2021, consolidated gold revenue was $725 million on sales of 402,401 ounces at an average price of $1,802 per ounce compared to $822 million on sales of 496,600 ounces at an average price of $1,656 per ounce in the first half of 2020. The decrease in gold revenue of 12% ($97 million) was 19% attributable to the decrease in gold ounces sold (mainly due to the lower gold production and timing of gold shipments), partially offset by a 7% impact from the increase in the average realized gold price. 

Cash flow provided by operating activities was $138 million in the first half of 2021 compared to $454 million in the first half of 2020. The decrease was mainly due to lower revenues of $97 million, higher production costs of $55 million and higher working capital outflows in the first half of 2021 for value-added and other tax receivables and current income and other taxes payables (including current income tax payments in the first half of 2021 of approximately $140 million relating to 2020 outstanding tax liability obligations). 

For the first half of 2021, net income was $173 million compared to $221 million for the first half of 2020. Net income attributable to the shareholders of the Company was $160 million ($0.15 per share) compared to $197 million ($0.19 per share) for the first half of 2020. Adjusted net income attributable to the shareholders of the Company was $149 million ($0.14 per share) compared to adjusted net income of $207 million ($0.20 per share) for the first half of 2020. 

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At June 30, 2021, the Company had cash and cash equivalents of $382 million (December 31, 2020 - $480 million) and working capital of $558 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. 

In 2021, the Company expects to generate cashflows from operating activities of approximately $630 million, based on current assumptions including an average gold price of $1,800 per ounce. Approximately $500 million of this total is expected to be generated in the second half of 2021, when the Company starts mining from the higher-grade areas of the Fekola Pit and mining at Otjikoto reaches the higher-grade zone at the base of the Wolfshag Pit. 

Summary and Outlook

The Company is pleased with its second quarter and first half of 2021 production results. Based on a strong first half of 2021 and above budget gold production, the Company remains on track to meet or exceed the upper end of its total gold production forecast range for 2021 of between 970,000 and 1,030,000 ounces (including 50,000 and 60,000 attributable ounces projected from Calibre) with total consolidated cash operating costs of between $500 and $540 per ounce and total consolidated all-in sustaining costs of between $870 and $910 per ounce.

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 pipeline of development projects. 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 (subject to final Joint Venture committee approval) with its 50% joint venture partner, AngloGold, to advance the scope of planned feasibility study work. This includes revisiting the original Gramalote Project design parameters included in the existing mining permit, further optimizing project design and additional drilling of the inferred portion of the Gramalote Mineral Resource and further drilling of the Monjas West and Trinidad zones. Completion of the Gramalote feasibility study has been pushed out from the first quarter to the second quarter of 2022 as a result of an increase in planned drilling and the impact of ongoing COVID-19 restrictions. The Company continues to look at optimization opportunities for the Kiaka Project in Burkina Faso. The Company now expects that this work will be completed by the end of the third quarter of 2021. The Company remains committed to finding the best means of maximizing the value of the Kiaka Project for its shareholders. 

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. 

Notwithstanding the commencement of arbitration proceedings in Mali with respect to the renewal of the Menankoto Exploration Permit, the Company is committed to continuing its ongoing discussions with the Malian Government to resolve the issue. 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 license 20 kilometres from the Menankoto Permit and projected to produce 530,000 to 560,000 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 in good standing) 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. 

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 acquisition opportunities and continue to return capital to our shareholders with a substantial dividend.

Second Quarter 2021 Financial Results - Conference Call Details

B2Gold executives will host a conference call to discuss the results on Thursday, August 5, 2021, at 10:00 am PDT/1:00 pm 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 (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 (toll free) (passcode 215816 #).

Qualified Persons 

Bill Lytle, Senior Vice President of Operations, a qualified person under NI 43-101, has approved the the scientific and technical information related to operations matters 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.

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    For the six months ended
                                                  June 30, 2021June 30, 2020  June 30, 2021June 30, 2020

Gold revenue                                              362,990      441,939        725,292      822,237

Cost of sales
Production costs                                        (132,293)     (96,987)      (243,925)    (188,543)
Depreciation and depletion                               (77,809)     (75,582)      (144,536)    (146,194)
Royalties and production taxes                           (24,671)     (31,234)       (51,197)     (56,965)
Total cost of sales                                     (234,773)    (203,803)      (439,658)    (391,702)

Gross profit                                              128,217      238,136        285,634      430,535

General and administrative                               (10,518)      (8,062)       (20,616)     (18,250)
Share-based payments                                      (8,673)      (7,440)        (9,839)     (11,087)
Community relations                                         (733)        (492)        (1,314)      (4,226)
Foreign exchange losses                                   (4,534)      (3,101)        (1,040)      (4,333)
Share of net income (loss) of associate                     4,281      (3,765)          9,347        2,635
Other                                                         547      (3,855)        (3,409)      (4,428)
Operating income                                          108,587      211,421        258,763      390,846

Interest and financing expense                            (3,049)      (5,051)        (5,945)      (9,568)
Gains (losses) on derivative instruments                    9,491        3,430         17,540     (11,412)
Other                                                         454        1,108            116          929
Income from operations before taxes                       115,483      210,908        270,474      370,795

Current income tax, withholding and other taxes          (50,470)     (82,229)       (91,596)    (145,699)
Deferred income tax recovery (expense)                      8,969        9,282        (6,064)      (4,127)
Net income for the period                                  73,982      137,961        172,814      220,969

Attributable to:
Shareholders of the Company                                68,457      124,446        160,012      196,733
Non-controlling interests                                   5,525       13,515         12,802       24,236
Net income for the period                                  73,982      137,961        172,814      220,969

Earnings per share
(attributable to shareholders of the Company)
Basic                                                        0.07         0.12           0.15         0.19
Diluted                                                      0.06         0.12           0.15         0.19

 

We seek Safe Harbor.

 

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