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. announced robust operational and financial results for Q2 and H1 2021, exceeding production budgets with total gold production of 211,612 ounces in Q2 and 432,256 ounces in H1. Consolidated gold revenues were $363 million and $725 million, respectively, driven by higher average gold prices of $1,814 and $1,802 per ounce. Net income for Q2 was $68 million ($0.07 per share), and for H1, it was $160 million ($0.15 per share). The Fekola, Masbate, and Otjikoto mines all outperformed expectations. The company forecasts continued strong performance, projecting 970,000 to 1,030,000 ounces for the full year.
- Total Q2 gold production of 211,612 ounces, 5% above budget.
- Consolidated gold revenue of $363 million in Q2, benefiting from $1,814 per ounce price.
- Net income of $68 million in Q2, with adjusted net income of $52 million.
- Cash and equivalents of $382 million as of June 30, 2021.
- Fekola solar plant completed, expected to reduce carbon emissions by 39,000 tonnes/year.
- Net income decreased by 45% from Q2 2020 ($124 million).
- Operating cash flow was negative $8 million in Q2, down from $238 million in Q2 2020.
- Gold production in H1 2021 was 15% lower than H1 2020 due to waste stripping campaigns.
VANCOUVER, BC, August 4, 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 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 United States 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 by5% (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 and47% 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 by3% - 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 by7% (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 by4% - Total AISC (including estimated attributable results for Calibre) of
$974 per ounce sold, below budget by8% , and consolidated AISC from the Company's three operating mines of$965 per ounce sold, below budget by9% - 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
The Fekola Mine in Mali continued its strong operational performance through the second quarter of 2021, producing 113,611 ounces of gold,
For the second quarter of 2021, total cash operating costs (including estimated attributable results for Calibre) were
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
For the first half of 2021, total cash operating costs (including estimated attributable results for Calibre) were
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
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 – 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
Second Quarter and First Half of 2021 Financial Results
For the second quarter of 2021, consolidated gold revenue was
As expected, cash flow used by operating activities was
Net income for the second quarter of 2021 was
For the first half of 2021, consolidated gold revenue was
Cash flow provided by operating activities was
For the first half of 2021, net income was
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
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
In 2021, the Company expects to generate cashflows from operating activities of approximately
Operations
Mine-by-mine gold production in the second quarter and first half of 2021 (including the Company's estimated
Mine | Q2 2021 | First-Half | First-Half | Second-Half | Full-year |
Fekola | 113,611 | 238,699 | 220,000 - | 310,000 - | 530,000 - |
Masbate | 56,878 | 114,391 | 100,000 - | 100,000 - | 200,000 - |
Otjikoto | 26,891 | 49,933 | 45,000 - | 145,000 - | 190,000 - |
B2Gold | 197,380 | 403,023 | 365,000 - | 555,000 - | 920,000 - |
Equity interest | 14,232 | 29,233 | 25,000 - | 25,000 - | 50,000 - |
Total | 211,612 | 432,256 | 390,000 - | 580,000 - | 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 second quarter and first half of 2021 were as follows (presented on a
Mine | Q2 2021 | First-Half | First-Half | Second-Half | Full-year |
Fekola | |||||
Masbate | |||||
Otjikoto | |||||
B2Gold | |||||
Equity interest | |||||
Total |
(1) | Calibre's 2021 forecast cash operating costs are assumed to be consistent throughout the second half of 2021. |
Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the second quarter and first half of 2021 were as follows (presented on a
Mine | Q2 2021 | First-Half | First-Half | Second-Half | Full-year |
Fekola | |||||
Masbate | |||||
Otjikoto | |||||
B2Gold | |||||
Equity interest | |||||
Total |
(1) | Calibre's 2021 forecast cash operating costs are assumed to be consistent throughout the second half of 2021. |
Mine-by-mine AISC (on a per ounce of gold sold basis) in the second quarter and first half of 2021 were as follows (presented on a
Mine | Q2 2021 | First-Half | First-Half | Second-Half | Full-year |
Fekola | |||||
Masbate | |||||
Otjikoto | |||||
B2Gold | |||||
Equity interest | |||||
Total |
(1) | Calibre's 2021 forecast AISC are assumed to be consistent throughout the second half of 2021. |
Fekola Gold Mine - Mali
The Fekola Mine in Mali continued its strong operational performance through the second quarter of 2021, producing 113,611 ounces of gold,
For the second quarter of 2021, mill feed grade was 1.65 grams per tonne ("g/t") compared to budget of 1.84 g/t and 3.11 g/t in the second quarter of 2020; mill throughput was 2.29 million tonnes compared to budget of 1.98 million tonnes and 1.56 million tonnes in the second quarter of 2020; and gold recovery averaged
The Fekola mill has the potential to sustain an annualized throughput rate which is higher than the original assumed mill expansion throughput rate of 7.5 million tonnes per annum ("Mtpa"). Mill processing trials conducted in the fourth quarter of 2020 demonstrated the potential to optimize the grind-throughput capacity of the expanded facility and increase hard-rock throughput and support the addition of saprolite ore tonnage in excess of the hard-rock capacity. Based on the positive results noted to date through to the second quarter of 2021, Fekola's annualized throughput rate is now expected to average 8.3 Mtpa for 2021 and average approximately 8.5 Mtpa (over the long-term), based on an ore blend including fresh rock and saprolite. For 2021 budgeting purposes, the Company assumed a throughput rate of 7.75 Mtpa.
Production planning for the nearby Cardinal inferred resource area, located within 500 metres of the current Fekola resource pit, is currently underway (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). Grade control drilling at Cardinal was completed in the second quarter of 2021, and a 10,000-tonne bulk sample was mined and processed. Results indicate that the Cardinal material can be processed at Fekola. An Environmental and Social Impact Assessment has been completed and submitted to the Malian authorities. The Company is in the process of updating the Fekola Mine Plan to include production from Cardinal which is expected to commence in the third quarter of 2021.
For the second quarter of 2021, Fekola's cash operating costs were
For the first half of 2021, the Fekola Mine produced 238,699 ounces of gold, well above budget by
For the first half of 2021, Fekola's cash operating costs were
Capital expenditures in the second quarter of 2021 totaled
For full-year 2021, the Fekola Mine remains on track to meet or exceed the upper end of its forecast production range of between 530,000 - 560,000 ounces of gold at cash operating costs of between
As a result of the planned higher waste stripping completed and lower mined ore grades realized in the first half of 2021 (as Phase 5 and 6 of the Fekola Pit were being developed), production is expected to be significantly weighted to the second half of 2021 (when mining reaches the higher grade portion of Phase 5 of the Fekola Pit). For the second half of 2021, Fekola's gold production is expected to increase significantly to between 310,000 – 330,000 ounces and cash operating costs are expected to significantly improve to between
Fekola Solar Plant
Following the temporary suspension of the solar plant construction activities in April 2020 due to COVID-19 restrictions, and a fire in the solar storage yard in January 2021, construction of the Fekola solar plant is now complete. A small crew will remain on site until mid-August 2021 to ensure that all final commissioning tasks and warranty issues are properly executed. With the solar plant now
Menankoto Permit and Bantako North Permit
The Company, through its Malian subsidiary Menankoto SARL ("Menankoto"), is currently involved in a dispute with the Malian Government related to renewal of the Menankoto exploration permit (the "Menankoto Permit") which forms part of the Anaconda Area and is located 20 km north of the Fekola Mine licence area. The Company strongly believes that Menankoto is entitled to a one-year renewal of the Menankoto Permit under applicable law. After ongoing discussions with the Malian Government were not ultimately successful in resolving the situation, on June 24, 2021 the Company announced that it had formally commenced arbitration proceedings against the Republic of Mali. The arbitration has been commenced pursuant to the arbitration clause set out in the Menankoto mining convention (the "Convention") governed by the 2012 Malian Mining Code ("2012 Mining Code"), on the basis that the Republic of Mali breached its obligations under the Convention and under the 2012 Mining Code. Based on the terms of the Convention, the arbitration will be conducted by the International Centre for Settlement of Investment Disputes in Paris, France. In addition to pursuing arbitration under the Convention, the Company may pursue, as required, all other available legal remedies.
Notwithstanding the commencement of arbitration proceedings, 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 deal with the impact of the pandemic.
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
The Company has conducted extensive exploration on the Menankoto deposit part of the Anaconda Area over the past seven years, with a considerable investment to date of approximately
Masbate Gold Mine - the Philippines
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
For the second quarter of 2021, mill feed grade was 1.17 g/t compared to budget of 1.08 g/t and 0.94 g/t in the second quarter of 2020; mill throughput was 1.86 million tonnes compared to budget of 2.02 million tonnes and 1.99 million tonnes in the second quarter of 2020; and gold recovery averaged
For the second quarter of 2021, Masbate's cash operating costs were
For the first half of 2021, the Masbate Mine produced 114,391 ounces of gold, well above budget by
For the first half of 2021, Masbate's cash operating costs were
Capital expenditures in the second quarter of 2021 totaled
For full-year 2021, the Masbate Mine remains on track to produce between 200,000 - 210,000 ounces of gold at cash operating costs of between
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia performed well during the second quarter of 2021, producing 26,891 ounces of gold, well above budget by
For the second quarter of 2021, mill feed grade was 0.99 g/t compared to budget of 0.94 g/t and 1.58 g/t in the second quarter of 2020; mill throughput was 0.86 million tonnes compared to budget of 0.85 million tonnes and 0.87 million tonnes in the second quarter of 2020; and gold recovery averaged
For the second quarter of 2021, Otjikoto's cash operating costs were
For the first half of 2021, the Otjikoto Mine produced 49,933 ounces of gold, well above budget by
For the first half of 2021, Otjikoto's cash operating costs were
Capital expenditures for the second quarter of 2021 totaled
Development of the Wolfshag underground mine continues to progress on schedule. Development of the primary underground ramp commenced and continued through the first half of 2021 following the completion of the development of the portal in the fourth quarter of 2020, with stope ore production expected to commence in early 2022, in-line with original estimates. The initial underground Mineral Reserve estimate for the down-plunge extension of the Wolfshag orebody included 210,000 ounces of gold in 1.2 million tonnes of ore at 5.57 g/t gold.
For full-year 2021, the Otjikoto Mine remains on track to produce between 190,000 - 200,000 ounces of gold, as high-grade ore is scheduled to be sourced from Phase 3 of the Wolfshag Pit in the second half of 2021. Otjikoto's cash operating costs are forecast to be between
Approximately
On average, Otjikoto's higher 2021 gold production level of between 190,000 – 200,000 ounces is expected to continue through to 2024, with production from Wolfshag underground expected to commence in early 2022 to supplement ore from the Otjikoto Pit as well as existing medium and low-grade stockpiles for approximately three years based on current estimates.
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 in the Trinidad deposit and drilling is planned in the Monjas West zone later in 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 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 and the Trinidad deposit and Monjas West zone, 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 any potential 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 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. B2Gold and AngloGold recently agreed to a revised 2021 feasibility study budget (subject to final Joint Venture committee approval) of
The Gramalote Project continues advancing the resettlement programs, the coexistence and formalization programs for artisanal miners, the removal of miners to outside of the industrial area, continues to work with government and local communities on social programs, advances the purchase of key properties required for project development and is closing a development agreement with a power company to commence studies to bring power to the Gramalote mill site. The Gramalote Project continues to benefit from strong federal and local government support as well as continuing support from local communities.
Kiaka Development Project - Burkina Faso
The Company continues to review optimization opportunities for the Kiaka Project in Burkina Faso. Several areas which have the potential to reduce capital costs are being evaluated, including a simplified recovery process, alternative methods of tailing disposal, mine fleet alternatives, reduction in project infrastructure and the use of more local contractors. The Company anticipates 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. The 2021 budget for the Kiaka Project is
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
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 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
Following a very successful year for exploration in 2020, B2Gold is conducting an aggressive exploration campaign in 2021 with a budget of approximately
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
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.
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 |
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 SIX MONTHS ENDED JUNE 30
(Expressed in thousands of United States dollars, except per share amounts)
(Unaudited)
For the three | For the three | For the six | For the six | ||||||
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 | |
Weighted average number of common shares outstanding (in thousands) | |||||||||
Basic | 1,053,054 | 1,040,661 | 1,052,303 | 1,037,847 | |||||
Diluted | 1,063,900 | 1,058,388 | 1,063,542 | 1,053,696 | |||||
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30
(Expressed in thousands of United States dollars)
(Unaudited)
For the three months ended June 30, 2021 | For the three months ended June 30, 2020 | For the six months ended June 30, 2021 | For the six months ended June 30, 2020 | ||||||
Operating activities | |||||||||
Net income for the period | $ | 73,982 | $ | 137,961 | $ | 172,814 | $ | 220,969 | |
Mine restoration provisions settled | — | (19) | — | (208) | |||||
Non-cash charges, net | 67,847 | 74,891 | 143,046 | 179,420 | |||||
Changes in non-cash working capital | (146,112) | 28,558 | (170,978) | 60,301 | |||||
Changes in long-term value added tax receivables | (4,033) | (3,302) | (7,344) | (6,180) | |||||
Cash (used) provided by operating activities | (8,316) | 238,089 | 137,538 | 454,302 | |||||
Financing activities | |||||||||
Revolving credit facility drawdowns | — | 250,000 | — | 250,000 | |||||
Repayment of revolving credit facility | — | — | — | (25,000) | |||||
Repayment of equipment loan facilities | (7,343) | (4,937) | (14,570) | (15,733) | |||||
Interest and commitment fees paid | (822) | (4,128) | (1,733) | (7,904) | |||||
Cash proceeds from stock option exercises | 1,082 | 11,121 | 1,834 | 27,465 | |||||
Dividends paid | (41,893) | — | (83,965) | (10,368) | |||||
Principal payments on lease arrangements | (693) | (816) | (1,428) | (1,645) | |||||
Distributions to non-controlling interests | (7,234) | — | (9,234) | — | |||||
Restricted cash movement | 388 | 174 | 499 | 2,278 | |||||
Cash (used) provided by financing activities | (56,515) | 251,414 | (108,597) | 219,093 | |||||
Investing activities | |||||||||
Expenditures on mining interests: | |||||||||
Fekola Mine | (8,721) | (52,340) | (26,117) | (126,473) | |||||
Masbate Mine | (6,778) | (4,529) | (13,342) | (9,290) | |||||
Otjikoto Mine | (21,091) | (10,920) | (39,966) | (22,652) | |||||
Gramalote Project | (4,002) | (446) | (7,469) | (13,124) | |||||
Other exploration and development | (15,253) | (11,883) | (25,424) | (21,247) | |||||
Purchase of common shares of associate | (5,945) | — | (5,945) | — | |||||
Funding of reclamation accounts | (2,178) | — | (3,499) | — | |||||
Non-refundable deposit received on Toega Property | — | 9,000 | — | 9,000 | |||||
Other | (1,990) | 1,109 | (3,523) | 1,092 | |||||
Cash used by investing activities | (65,958) | (70,009) | (125,285) | (182,694) | |||||
(Decrease) increase in cash and cash equivalents | (130,789) | 419,494 | (96,344) | 490,701 | |||||
Effect of exchange rate changes on cash and cash equivalents | 362 | 236 | (1,200) | (3,628) | |||||
Cash and cash equivalents, beginning of period | 512,568 | 207,939 | 479,685 | 140,596 | |||||
Cash and cash equivalents, end of period | $ | 382,141 | $ | 627,669 | $ | 382,141 | $ | 627,669 | |
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
(Unaudited)
As at June 30, | As at December 31, | |||
Assets | ||||
Current | ||||
Cash and cash equivalents | $ | 382,141 | $ | 479,685 |
Accounts receivable, prepaids and other | 43,439 | 21,306 | ||
Value-added and other tax receivables | 35,593 | 11,797 | ||
Inventories | 269,668 | 238,055 | ||
Assets classified as held for sale | 11,855 | 11,855 | ||
742,696 | 762,698 | |||
Value-added tax receivables | 38,489 | 35,383 | ||
Mining interests | ||||
Owned by subsidiaries and joint operations | 2,326,024 | 2,387,020 | ||
Investments in associates | 96,268 | 76,235 | ||
Other assets | 82,639 | 76,496 | ||
Deferred income taxes | 10,135 | 24,547 | ||
$ | 3,296,251 | $ | 3,362,379 | |
Liabilities | ||||
Current | ||||
Accounts payable and accrued liabilities | $ | 74,934 | $ | 89,062 |
Current income and other taxes payable | 45,048 | 154,709 | ||
Current portion of long-term debt | 31,632 | 34,111 | ||
Other current liabilities | 21,451 | 8,211 | ||
173,065 | 286,093 | |||
Long-term debt | 61,892 | 75,911 | ||
Mine restoration provisions | 95,802 | 104,282 | ||
Deferred income taxes | 212,555 | 220,903 | ||
Employee benefits obligation | 7,184 | 5,874 | ||
Other long-term liabilities | 7,183 | 8,726 | ||
557,681 | 701,789 | |||
Equity | ||||
Shareholders' equity | ||||
Share capital | ||||
Issued: 1,054,090,730 common shares (Dec 31, 2020 – 1,051,138,175) | 2,414,988 | 2,407,734 | ||
Contributed surplus | 56,286 | 48,472 | ||
Accumulated other comprehensive loss | (139,172) | (138,533) | ||
Retained earnings | 330,513 | 254,343 | ||
2,662,615 | 2,572,016 | |||
Non-controlling interests | 75,955 | 88,574 | ||
2,738,570 | 2,660,590 | |||
$ | 3,296,251 | $ | 3,362,379 | |
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SOURCE B2Gold Corp.
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