B2Gold Corp. Reports Strong Q3 2021 Results; Higher than Budgeted Gold Production and Operating Cashflows (of $320 M); Increases Annual Production Guidance Range to 1,015,000 to 1,055,000 oz and Maintains Cost Guidance
B2Gold Corp. (BTG) reported robust Q3 and YTD results for 2021, with total gold production reaching 310,261 ounces in Q3, exceeding budget by 7%. Consolidated gold revenue hit $511 million, driven by sales of 286,650 ounces at an average price of $1,782 per ounce. For the first nine months, production totaled 742,517 ounces and revenue $1.2 billion. Cash costs were consistent with budget, and production guidance for 2021 was raised to 1,015,000-1,055,000 ounces. B2Gold maintains a strong financial position with $547 million in cash and a $600 million credit facility available.
- Q3 gold production of 310,261 ounces, exceeding budget by 7%.
- Consolidated gold revenue of $511 million, benefiting from increased sales.
- Net income for Q3 was $123 million ($0.12 per share), stable compared to prior year.
- Increased production guidance for 2021 to 1,015,000-1,055,000 ounces.
- Strong financial position with $547 million in cash and a $600 million credit facility.
- Net income for Q3 decreased from $263 million in 2020 to $123 million in 2021.
- Overall cash flow from operations decreased from $754 million in the first nine months of 2020 to $458 million in 2021.
- Average realized gold price decline impacted revenue despite increased production.
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 by7% (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 by7% (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
For the third quarter of 2021, total cash operating costs (including estimated attributable results for Calibre) were
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
For the first nine months of 2021, total cash operating costs (including estimated attributable results for Calibre) were
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
Third Quarter and First Nine Months of 2021 Financial Results
For the third quarter of 2021, consolidated gold revenue was
Cash flow provided by operating activities was
Net income for the third quarter of 2021 was
For the first nine months of 2021, consolidated gold revenue was
Cash flow provided by operating activities was
For the first nine months of 2021, net income was
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
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
Based on current assumptions, including an average gold price of
Operations
Mine-by-mine gold production in the third quarter and first nine months of 2021 (including the Company's estimated
Mine | Q3 2021 | First Nine Months | Revised | Original |
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 | 295,723 | 698,746 | 965,000 - 995,000 | 920,000 - 970,000 |
Equity interest | 14,538 | 43,771 | 50,000 - 60,000 | 50,000 - 60,000 |
Total | 310,261 | 742,517 | 1,015,000 - | 970,000 - |
(1) | "B2Gold Consolidated" - gold production is presented on a |
(2) | "Equity interest in Calibre" - represents the Company's approximate |
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
Mine | Q3 2021 | First Nine Months | Full-year 2021 |
Fekola | |||
Masbate | |||
Otjikoto | |||
B2Gold Consolidated | |||
Equity interest in Calibre (1) | |||
Total |
(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
Mine | Q3 2021 | First Nine Months 2021 | Full-year 2021 |
Fekola | |||
Masbate | |||
Otjikoto | |||
B2Gold Consolidated | |||
Equity interest in Calibre (1) | |||
Total |
(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
Mine | Q3 2021 | First Nine Months | Full-year 2021 |
Fekola | |||
Masbate | |||
Otjikoto | |||
B2Gold Consolidated | |||
Equity interest in Calibre (1) | |||
Total |
(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,
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
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
For the first nine months of 2021, the Fekola Mine produced 404,256 ounces of gold, above budget by
For the first nine months of 2021, Fekola's cash operating costs were
Capital expenditures in the third quarter of 2021 totaled
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
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
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
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
For the third quarter of 2021, Masbate's cash operating costs were
For the first nine months of 2021, the Masbate Mine produced 175,598 ounces of gold, well above budget by
For the first nine months of 2021, Masbate's cash operating costs were
Capital expenditures for the third quarter of 2021 totaled
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
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
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
For the third quarter of 2021, Otjikoto's cash operating costs were
For the first nine months of 2021, the Otjikoto Mine produced 118,892 ounces of gold, above budget by
For the first nine months of 2021, Otjikoto's cash operating costs were
Capital expenditures for the third quarter of 2021 totaled
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
2021 Development
Gramalote Project (B2Gold –
The Gramalote Project, owned
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
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
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
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
Following a very successful year for exploration in 2020, B2Gold is conducting an aggressive exploration campaign in 2021 with a budget of approximately
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 |
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
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
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, | As at December 31, | |||||||
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.
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