B2Gold Reports Strong Q1 2022 Results; Total Gold Production of 209,365 oz, 5% Above Budget with Cash Operating Costs and All-In Sustaining Costs Below Budget
B2Gold Corp. reported strong operational and financial results for Q1 2022, achieving total gold production of 209,365 ounces, exceeding budget by 5%. Consolidated gold revenue reached $366 million, aided by an average realized price of $1,874 per ounce. Cash operating costs were $699 per ounce, 12% below budget, while AISC was $1,036 per ounce, 23% below budget. The company forecasts full-year gold production between 990,000 - 1,050,000 ounces. B2Gold also announced increased mineral resources in Mali and acquired the Bakolobi permit, boosting exploration potential.
- Q1 2022 gold production of 209,365 ounces, exceeding budget by 5%.
- Consolidated gold revenue of $366 million, driven by higher average realized gold price of $1,874 per ounce.
- Cash operating costs of $699 per ounce, 12% below budget.
- Total consolidated AISC of $1,036 per ounce, significantly below budget by 23%.
- Increased mineral resource estimates for the Anaconda area potentially adding 80,000 to 100,000 ounces per year.
- Acquisition of Bakolobi permit expected to enhance exploration activities.
- Net income attributable to shareholders decreased to $81 million ($0.08 per share) compared to $92 million ($0.09 per share) in Q1 2021.
- Cash flow provided by operating activities after changes in non-cash working capital fell to $107 million from $146 million in Q1 2021.
VANCOUVER, BC, May 3, 2022 /PRNewswire/ - B2Gold Corp. (TSX: BTO) (NYSE: BTG) (NSX: B2G) ("B2Gold" or the "Company") is pleased to announce its operational and financial results for the first quarter of 2022. The Company previously released its gold production and gold revenue results for the first quarter of 2022. All dollar figures are in United States dollars unless otherwise indicated.
2022 First Quarter Highlights
- Total gold production of 209,365 ounces (including 12,892 ounces of attributable production from Calibre Mining Corp. ("Calibre")),
5% (9,760 ounces) above budget, and consolidated gold production of 196,473 ounces from the Company's three operating mines,4% (8,431 ounces) above budget, with solid performances from all the Company's three mines, with each mine exceeding its budgeted production for the first quarter of 2022 - Consolidated gold revenue was
$366 million on sales of 195,100 ounces at an average realized price of$1,874 per ounce - Total consolidated cash operating costs (see "Non-IFRS Measures") of
$699 per ounce produced, well-below budget by$94 per ounce produced (12% ), and total consolidated all-in sustaining costs ("AISC") (see "Non-IFRS Measures") of$1,036 per ounce sold, significantly below budget by$318 per ounce sold (23% ) (including estimated attributable results for Calibre) - Cash flow provided by operating activities before changes in non-cash working capital was
$152 million ($0.14 per share) compared to$171 million ($0.16 per share) in the first quarter of 2021; cash flow provided by operating activities after changes in non-cash working capital was$107 million ($0.10 per share) compared to$146 million ($0.14 per share) in the first quarter of 2021 - Net income attributable to the shareholders of the Company of
$81 million ($0.08 per share); adjusted net income (see "Non-IFRS Measures") attributable to the shareholders of the Company of$65 million ($0.06 per share) - For 2022, B2Gold remains well positioned for continued strong operational and financial performance with total gold production guidance of between 990,000 - 1,050,000 ounces (including 40,000 - 50,000 attributable ounces projected from Calibre) with total consolidated cash operating costs forecast to be between
$620 -$660 per ounce and total consolidated AISC forecast to be between$1,010 -$1,050 per ounce - The Company announced an updated and significantly increased Mineral Resource estimate for the Anaconda area, comprised of the Menankoto permit and the Bantako North permit, located approximately 20 kilometres from the Fekola Mine; preliminary planning has demonstrated that a pit situated on the Anaconda area could provide saprolite (weathered) material to be trucked to and fed into the Fekola mill commencing as early as late 2022, subject to obtaining all necessary permits and completion of a final mine plan, with the potential to add an average of approximately 80,000 to 100,000 ounces per year to the Fekola mill's annual gold production
- In April 2022, the Company acquired the Bakolobi permit in Mali from a local Malian company; covers a 100 km2 area contiguous to both the Medinandi permit (Fekola Mine) and the Menankoto permit
- B2Gold's Namibian subsidiary was recognized by the Namibian Revenue Agency as the highest revenue contributor among "Overall Top Contributors" in calendar year 2021
2022 First Quarter Operational Results
Total gold production in the first quarter of 2022 was 209,365 ounces (including 12,892 ounces of attributable production from Calibre), above budget by
For the first quarter of 2022, total consolidated cash operating costs (including estimated attributable results for Calibre) were
For the first quarter of 2022, total consolidated AISC (including estimated attributable results for Calibre) were
For full-year 2022, the Company's total gold production is forecast to be between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre), with total consolidated cash operating costs forecast to be between
As previously disclosed, the Company's operations continue to be impacted by global cost inflation. However, despite these ongoing cost pressures, the draw downs of existing inventories, proactive management and the revised sequencing of some capital costs means that consolidated cash operating costs and AISC in the first quarter of 2022 were lower than budget. The Company will continue to closely monitor the levels of cost inflation over the remainder of 2022. B2Gold's projects and operations continue to target long-term cash flow and value at industry leading costs per ounce of gold produced.
2022 First Quarter Financial Results
For the first quarter of 2022, consolidated gold revenue was
For the first quarter of 2022, cash flow provided by operating activities before changes in non-cash working capital was
Based on current assumptions, the Company expects to generate consolidated cashflows from operating activities of approximately
Net income for the first quarter of 2022 was
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. At March 31, 2022, the Company had cash and cash equivalents of
On February 22, 2022, B2Gold's Board of Directors declared a cash dividend for the first quarter of 2022 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
Operations
Mine-by-mine gold production in the first quarter of 2022 (including the Company's estimated
Mine | Q1 2022 Gold Production (ounces) | First-Half 2022 Forecast Gold Production (ounces) | Second-Half 2022 Forecast Gold Production (ounces) | Full-year 2022 Forecast Gold Production (ounces) |
Fekola | 101,648 | 220,000 - 230,000 | 350,000 - 370,000 | 570,000 - 600,000 |
Masbate | 59,764 | 105,000 - 110,000 | 100,000 - 105,000 | 205,000 - 215,000 |
Otjikoto | 35,061 | 65,000 - 70,000 | 110,000 - 115,000 | 175,000 - 185,000 |
B2Gold | 196,473 | 390,000 –410,000 | 560,000 – 590,000 | 950,000 – 1,000,000 |
Equity interest in | 12,892 | 20,000 - 25,000 | 20,000 - 25,000 | 40,000 - 50,000 |
Total | 209,365 | 410,000 – 435,000 | 580,000 – 615,000 | 990,000 – 1,050,000 |
(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 first quarter of 2022 were as follows (presented on a
Mine | Q1 2022 Cash Operating Costs ($ per ounce produced) | First-Half 2022 Forecast Cash Operating Costs ($ per ounce produced) | Second-Half 2022 Forecast Cash Operating Costs ($ per ounce produced) | Full-year 2022 Forecast Cash Operating Costs ($ per ounce produced) |
Fekola | ||||
Masbate | ||||
Otjikoto | ||||
B2Gold | ||||
Equity interest in | ||||
Total |
(1) Calibre's 2022 forecast cash operating costs are assumed to be consistent throughout 2022. |
Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the first quarter of 2022 were as follows (presented on a
Mine | Q1 2022 Cash Operating Costs ($ per ounce sold) | First-Half 2022 Forecast Cash Operating Costs ($ per ounce sold) | Second-Half 2022 Forecast Cash Operating Costs ($ per ounce sold) | Full-year 2022 Forecast Cash Operating Costs ($ per ounce sold) |
Fekola | ||||
Masbate | ||||
Otjikoto | ||||
B2Gold Consolidated | ||||
Equity interest in | ||||
Total |
(1) Calibre's 2022 forecast cash operating costs are assumed to be consistent throughout 2022. |
Mine-by-mine AISC (on a per ounce of gold sold basis) in the first quarter of 2022 were as follows (presented on a
Mine | Q1 2022 Forecast AISC ($ per ounce sold) | First-Half 2022 Forecast AISC ($ per ounce sold) | Second-Half 2022 Forecast AISC ($ per ounce sold) | Full-year 2022 Forecast AISC ($ per ounce sold) |
Fekola | ||||
Masbate | ||||
Otjikoto | ||||
B2Gold Consolidated | ||||
Equity interest in | ||||
Total |
(1) Calibre's 2022 forecast AISC are assumed to be consistent throughout 2022. |
Fekola Gold Mine - Mali
The Fekola Mine in Mali had a successful start to the year with first quarter of 2022 gold production of 101,648 ounces, slightly above budget by
For the first quarter of 2022, mill feed grade was 1.54 grams per tonne ("g/t") compared to budget of 1.45 g/t and 1.99 g/t in the first quarter of 2021; mill throughput was 2.20 million tonnes compared to budget of 2.31 million tonnes and 2.07 million tonnes in the first quarter of 2021; and gold recovery averaged
For the first quarter of 2022, Fekola's cash operating costs were
Fekola's AISC for the first quarter of 2022 were
Capital expenditures for the first quarter of 2022 totaled
On February 2, 2022, the Company announced an updated Mineral Resource estimate for the Cardinal Zone, adjacent to the Fekola Mine. The updated resource included a significantly increased Mineral Resource estimate for Cardinal Zone as at December 31, 2021 with an initial Indicated Mineral Resource estimate of 8,000,000 tonnes at 1.67 g/t gold for 430,000 ounces of gold, and an updated Inferred Mineral Resource estimate of 19,000,000 tonnes at 1.21 g/t gold for 740,000 ounces of gold, constrained within a conceptual pit run at US
The low-cost Fekola Mine is expected to produce between 570,000 and 600,000 ounces of gold in 2022 at cash operating costs of between
Masbate Gold Mine – The Philippines
The Masbate Mine in the Philippines had a strong start to the year with first quarter of 2022 gold production of 59,764 ounces, above budget by
For the first quarter of 2022, mill feed grade was 1.19 g/t compared to budget of 1.09 g/t and 1.10 g/t in the first quarter of 2021; mill throughput was 2.01 million tonnes compared to budget of 1.93 million tonnes and 1.95 million tonnes in the first quarter of 2021; and gold recovery averaged
For the first quarter of 2022, Masbate's cash operating costs were
Masbate's AISC for the first quarter of 2022 were
Capital expenditures for the first quarter of 2022 totaled
The Masbate Mine is expected to produce between 205,000 and 215,000 ounces of gold in 2022, with cash operating costs of between
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia performed well during the first quarter of 2022, producing 35,061 ounces of gold,
For the first quarter of 2022, mill feed grade was 1.31 g/t compared to budget of 1.26 g/t and 0.82 g/t in the first quarter of 2021; mill throughput was 0.85 million tonnes compared to budget of 0.84 million tonnes and 0.89 million tonnes in the first quarter of 2021; and gold recovery averaged
For the first quarter of 2022, Otjikoto's cash operating costs were
Otjikoto's AISC for the first quarter of 2022 were
Capital expenditures for the first quarter of 2022 totaled
Development of the Wolfshag underground mine continues to progress with first development ore production expected to commence in the first half of 2022. The initial underground Mineral Reserve estimate for the down-plunge extension of the Wolfshag deposit includes 210,000 ounces of gold in 1.2 million tonnes of ore at 5.57 g/t gold.
The Otjikoto Mine is expected to produce between 175,000 and 185,000 ounces of gold in 2022, with cash operating costs of between
Development
Anaconda Area (comprised of the Menankoto and Bantako North permits) - Mali
On March 23, 2022, the Company announced an updated and significantly increased Mineral Resource estimate for the Anaconda area, comprised of the Menankoto permit and the Bantako North permit, located approximately 20 kilometres from the Fekola Mine. The updated and significantly increased Anaconda Mineral Resource estimate (as at January 11, 2022) constrained within a conceptual pit shell at a gold price of
In 2022, the Company has budgeted
Based on the updated Mineral Resource estimate and the 2022 exploration drilling results, the Company has commenced a Phase II scoping study to review the project economics of constructing a stand-alone mill near the Anaconda area. Subject to receipt of a positive Phase II scoping study, the Company expects that the saprolite material would continue to be trucked to and fed into the Fekola mill during the construction period for the Anaconda area stand-alone mill.
In 2022, the Company is drilling to infill and extend the saprolite resource area and to follow up on the sulphide mineralization at the Anaconda area, including the Mamba and Adder zones, and several other targets below the saprolite mineralization. The good grade and width combinations at the Anaconda area continue to provide a strong indication of the potential for Fekola-style south plunging bodies of sulphide mineralization, which remains open down plunge. Four drill rigs are currently drilling in the Anaconda area.
In April 2022, the Company acquired the Bakolobi permit in Mali from a local Malian company. The Bakolobi permit is located between the Menankoto permit, to the North, and the Fekola Mine's Medinandi permit, wrapping around the latter to its south-west end, covering an area of 100 km2. The acquisition of the Bakolobi permit results in the ownership by the Company of four contiguous exploration and/or exploitation permits covering 237 km2, extending from the northwestern end of the Bantako North permit and the North-East of the Menankoto permit, southwest of the Medinandi permit (Fekola Mine and Cardinal Zone) to the southeast end of the Bakolobi permit.
Gramalote Project (B2Gold –
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.
An updated, revised budget that has been prepared to carry the Gramalote Project to completion of the feasibility study is currently under review by B2Gold and AngloGold. The revised budget will fund ongoing the Gramalote Feasibility Study optimization, exploration, community support, continued advancement of key social commitments and compliance with regulatory and Environmental Impact Assessment requirements. A separate construction budget is expected to be developed subsequently upon a positive (optimized) Gramalote Feasibility Study and construction decision.
B2Gold expects that the results of final feasibility study will be available by the end of the second quarter of 2022 with the full feasibility study completed by the end of the third quarter of 2022. 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 now expected by the end of the third quarter of 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 first quarter of 2022 results as outlined in this news release, particularly given the challenges mining companies are facing around the world. Based on a strong operational and financial first quarter of 2022, the Company is on track to meet its annual gold production guidance for 2022 of between 990,000 - 1,050,000 ounces (including 40,000 - 50,000 attributable ounces projected from Calibre) with total consolidated cash operating costs of between
Following the receipt of the Menankoto permit in Mali, the Company is expanding the scope of its exploration activities on the Anaconda area (comprised of the Menankoto permit and the Bantako North permit) to build on the successful exploration programs already completed to date. The Company will continue to follow up on the sulphide mineralization at the Mamba, Adder and several other targets below the saprolite mineralization in 2022. In April 2022, the Company completed the acquisition of the Bakolobi permit from a local Malian company. The Bakolobi permit is located between the Menankoto permit, to the North, and the Fekola Mine's Medinandi permit, wrapping around the latter to its south-west end, covering an area of 100 km2. The acquisition of the Bakolobi permit results in the ownership by the Company of four contiguous exploration and/or exploitation permits covering 237 km2, extending from the northwestern end of the Bantako North permit and the North-East of the Menankoto permit, southwest of the Medinandi permit (Fekola Mine and Cardinal Zone) to the southeast end of the Bakolobi permit.
B2Gold's preliminary planning has demonstrated that a pit situated on the Anaconda area could provide saprolite material to be trucked to and fed into the Fekola mill commencing in late 2022, increasing the ore processed and annual gold production from the Fekola mill, subject to obtaining all necessary permits and completion of a final mine plan. Based on the updated Mineral Resource estimate and the 2022 exploration drilling results, the Company has commenced a Phase II scoping study to review the project economics of constructing a stand-alone mill near the Anaconda area. Subject to receipt of a positive Phase II scoping study, the Company expects that the saprolite material would continue to be trucked to and fed into the Fekola mill during the construction period for the Anaconda area stand-alone mill. The potential to truck material from the Anaconda Area in late 2022 is currently being developed and is not included in Fekola's 2022 production guidance or the current Fekola life of mine plan.
The Company also continues to advance its other development project, with work continuing on the Gramalote Project and the completion of the final Gramalote feasibility study. Results from the Gramalote feasibility study are expected to be available by the end of the second quarter of 2022 with the full feasibility study completed by the end of the third quarter of 2022. 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 now expected by the end of the third quarter of 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.
After a very successful year for exploration in 2021, B2Gold is conducting an aggressive exploration campaign in 2022 with a budget of approximately
The Company's ongoing strategy is to continue to maximize profitable production from its mines, further advance the Anaconda and Gramalote development projects, advance the Company's numerous brownfield and greenfield exploration projects, evaluate new exploration, development and production opportunities and continue to pay an industry leading dividend yield.
First Quarter 2022 Financial Results - Conference Call Details
B2Gold executives will host a conference call to discuss the results on Wednesday, May 4, 2022, at 10:00 am PST/1:00 pm EST. You may access the call by dialing the operator at +1 (778) 383-7413 / +1 (416) 764-8659 (Vancouver/Toronto) or toll free at +1 (888) 664-6392 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 toll free at +1 (888) 390-0541 (passcode 666652 #).
Qualified Persons
Bill Lytle, Senior Vice President and Chief Operating Officer, a qualified person under NI 43-101, has approved the scientific and technical information related to operations matters contained in this news release.
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: | |
Randall Chatwin | Katie Bromley |
Senior Vice President, Legal & | Manager, Investor Relations & |
Corporate Communications | Public Relations |
604-681-8371 | 604-681-8371 |
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 and Colombia and including risks related to changes in foreign laws and changing policies related to mining and local ownership requirements or resource nationalization generally, including in response to the COVID-19 outbreak; remote operations and the availability of adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory, political and country risks, including local instability or acts of terrorism and the effects thereof; the reliance upon contractors, third parties and joint venture partners; the lack of sole decision-making authority related to Filminera Resources Corporation, which owns the Masbate Project; challenges to title or surface rights; the dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; competition with other mining companies; community support for B2Gold's operations, including risks related to strikes and the halting of such operations from time to time; conflicts with small scale miners; failures of information systems or information security threats; the ability to maintain adequate internal controls over financial reporting as required by law, including Section 404 of the Sarbanes-Oxley Act; compliance with anti-corruption laws, and sanctions or other similar measures; social media and B2Gold's reputation; risks affecting Calibre having an impact on the value of the Company's investment in Calibre, and potential dilution of our equity interest in Calibre; as well as other factors identified and as described in more detail under the heading "Risk Factors" in B2Gold's most recent Annual Information Form, B2Gold's current Form 40-F Annual Report and B2Gold's other filings with Canadian securities regulators and the U.S. Securities and Exchange Commission (the "SEC"), which may be viewed at www.sedar.com and www.sec.gov, respectively (the "Websites"). The list is not exhaustive of the factors that may affect B2Gold's forward-looking statements.
B2Gold's forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time. These assumptions and factors include, but are not limited to, assumptions and factors related to B2Gold's ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; B2Gold's ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.
B2Gold's forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date hereof. B2Gold does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities B2Gold will derive therefrom. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.
Non-IFRS Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including "cash operating costs" and "all-in sustaining costs" (or "AISC"). Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and should be read in conjunction with B2Gold's consolidated financial statements. Readers should refer to B2Gold's Management Discussion and Analysis, available on the Websites, under the heading "Non-IFRS Measures" for a more detailed discussion of how B2Gold calculates certain of such measures and a reconciliation of certain measures to IFRS terms.
Cautionary Statement Regarding Mineral Reserve and Resource Estimates
The disclosure in this news release was prepared in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource and reserve information contained or referenced in this news release may not be comparable to similar information disclosed by public companies subject to the technical disclosure requirements of the SEC. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31
(Expressed in thousands of United States dollars, except per share amounts)
(Unaudited)
2022 | 2021 | |||
Gold revenue | $ 365,583 | $ 362,302 | ||
Cost of sales | ||||
Production costs | (122,960) | (111,632) | ||
Depreciation and depletion | (77,263) | (66,727) | ||
Royalties and production taxes | (25,690) | (26,526) | ||
Total cost of sales | (225,913) | (204,885) | ||
Gross profit | 139,670 | 157,417 | ||
General and administrative | (10,828) | (10,098) | ||
Share-based payments | (8,404) | (1,166) | ||
Community relations | (619) | (581) | ||
Foreign exchange (losses) gains | (2,456) | 3,494 | ||
Share of net income of associate | 2,772 | 5,066 | ||
Other | (2,032) | (3,956) | ||
Operating income | 118,103 | 150,176 | ||
Interest and financing expense | (2,583) | (2,896) | ||
Gains on derivative instruments | 19,299 | 8,049 | ||
Other income (expense) | 7,756 | (338) | ||
Income from operations before taxes | 142,575 | 154,991 | ||
Current income tax, withholding and other taxes | (47,654) | (41,126) | ||
Deferred income tax expense | (4,118) | (15,033) | ||
Net income for the period | $ 90,803 | $ 98,832 | ||
Attributable to: | ||||
Shareholders of the Company | $ 80,723 | $ 91,555 | ||
Non-controlling interests | 10,080 | 7,277 | ||
Net income for the period | $ 90,803 | $ 98,832 | ||
Earnings per share (attributable to shareholders of the Company) | ||||
Basic | $ 0.08 | $ 0.09 | ||
Diluted | $ 0.08 | $ 0.09 | ||
Weighted average number of common shares outstanding (in thousands) | ||||
Basic | 1,056,824 | 1,051,544 | ||
Diluted | 1,062,492 | 1,062,006 |
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31
(Expressed in thousands of United States dollars)
(Unaudited)
2022 | 2021 | |||
Operating activities | ||||
Net income for the period | $ 90,803 | $ 98,832 | ||
Non-cash charges, net | 72,960 | 75,199 | ||
Changes in non-cash working capital | (44,735) | (24,866) | ||
Changes in long-term value added tax receivables | (11,718) | (3,311) | ||
Cash provided by operating activities | 107,310 | 145,854 | ||
Financing activities | ||||
Revolving credit facility transaction costs | (2,401) | — | ||
Repayment of equipment loan facilities | (6,790) | (7,227) | ||
Interest and commitment fees paid | (1,228) | (911) | ||
Cash proceeds from stock option exercises | 4,031 | 752 | ||
Dividends paid | (42,234) | (42,072) | ||
Principal payments on lease arrangements | (1,219) | (735) | ||
Distributions to non-controlling interests | (1,022) | (2,000) | ||
Changes in restricted cash accounts | (162) | 111 | ||
Cash used by financing activities | (51,025) | (52,082) | ||
Investing activities | ||||
Expenditures on mining interests: | ||||
Fekola Mine | (28,228) | (17,396) | ||
Masbate Mine | (5,693) | (6,564) | ||
Otjikoto Mine | (16,131) | (18,875) | ||
Gramalote Property | (4,407) | (3,467) | ||
Other exploration and development | (13,466) | (10,171) | ||
Cash paid on exercise of mineral property option | (7,737) | — | ||
Funding of reclamation accounts | (2,181) | (1,321) | ||
Other | — | (1,533) | ||
Cash used by investing activities | (77,843) | (59,327) | ||
(Decrease) increase in cash and cash equivalents | (21,558) | 34,445 | ||
Effect of exchange rate changes on cash and cash equivalents | (2,681) | (1,562) | ||
Cash and cash equivalents, beginning of period | 672,999 | 479,685 | ||
Cash and cash equivalents, end of period | $ 648,760 | $ 512,568 | ||
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
(Unaudited)
As at March 31, | As at December 31, | |||
Assets | ||||
Current | ||||
Cash and cash equivalents | $ 648,760 | $ 672,999 | ||
Accounts receivable, prepaids and other | 47,719 | 32,112 | ||
Deferred consideration receivable | 42,598 | 41,559 | ||
Value-added and other tax receivables | 29,889 | 14,393 | ||
Inventories | 278,977 | 272,354 | ||
Assets classified as held for sale | 12,700 | 12,700 | ||
1,060,643 | 1,046,117 | |||
Long-term investments | 28,319 | 32,118 | ||
Value-added tax receivables | 71,698 | 63,165 | ||
Mining interests | ||||
Owned by subsidiaries and joint operations | 2,225,028 | 2,231,831 | ||
Investments in associates | 112,466 | 104,236 | ||
Other assets | 86,855 | 82,371 | ||
Deferred income taxes | — | 1,455 | ||
$ 3,585,009 | $ 3,561,293 | |||
Liabilities | ||||
Current | ||||
Accounts payable and accrued liabilities | $ 100,777 | $ 111,716 | ||
Current income and other taxes payable | 80,782 | 92,275 | ||
Current portion of long-term debt | 21,847 | 25,408 | ||
Current portion of mine restoration provisions | 734 | 734 | ||
Other current liabilities | 1,198 | 1,056 | ||
205,338 | 231,189 | |||
Long-term debt | 50,817 | 49,726 | ||
Mine restoration provisions | 105,648 | 116,547 | ||
Deferred income taxes | 190,550 | 187,887 | ||
Employee benefits obligation | 7,230 | 7,115 | ||
Other long-term liabilities | 9,783 | 7,822 | ||
569,366 | 600,286 | |||
Equity | ||||
Shareholders' equity | ||||
Share capital | 2,429,749 | 2,422,184 | ||
Contributed surplus | 70,649 | 67,028 | ||
Accumulated other comprehensive loss | (140,098) | (136,299) | ||
Retained earnings | 546,518 | 507,381 | ||
2,906,818 | 2,860,294 | |||
Non-controlling interests | 108,825 | 100,713 | ||
3,015,643 | 2,961,007 | |||
$ 3,585,009 | $ 3,561,293 | |||
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SOURCE B2Gold Corp.
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