B2Gold Reports Strong Q2 2022 Results with Cash Operating Costs and All-In Sustaining Costs Below Budget; Full-year 2022 Total Consolidated Gold Production and Cost Guidance Remains Unchanged
B2Gold Corp. reported its Q2 and H1 2022 results, achieving gold production of 223,623 ounces (slightly above budget) and consolidated revenue of $382 million at $1,861 per ounce. Costs were favorable, with cash operating costs at $781 per ounce, and all-in sustaining costs (AISC) of $1,111 per ounce, both below budget. The company announced a dividend of $0.04 per share, offering high yields in the sector. The acquisition of Oklo Resources is expected to enhance its position in Mali. The outlook for the full year remains strong with production guidance between 990,000 and 1,050,000 ounces.
- Achieved gold production of 223,623 ounces in Q2, slightly above budget by 1%.
- Consolidated revenue of $382 million, a 5% increase from Q2 2021; average gold price realized at $1,861 per ounce.
- Consolidated cash operating costs at $781 per ounce, 2% below budget.
- AISC of $1,111 per ounce, well below budget by 7%.
- Strong H1 2022 results with gold production of 432,988 ounces, exceeding budget by 3%.
- Net income for H1 2022 at $119 million ($0.11 per share), despite tax charges impacting Q2 results.
- Continues to maintain a solid cash position with $587 million in cash and equivalents.
- Dividend of $0.04 per share declared, representing one of the highest yields in the gold sector.
- Net income in Q2 declined to $38 million compared to $68 million in Q2 2021.
- Cash operating costs increased compared to H1 2021; pressures from higher fuel prices noted.
- Gramalote Project does not meet investment thresholds, leading to a review of alternatives.
- Production at the Otjikoto Mine was 6% below budget due to slower ramp-up in development.
VANCOUVER, BC, August. 3, 2022 /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 2022. The Company previously released its gold production and gold revenue results for the second quarter and first half of 2022. All dollar figures are in United States dollars unless otherwise indicated.
- Total gold production of 223,623 ounces (including 14,765 ounces of attributable production from Calibre Mining Corp. ("Calibre")), slightly above budget by
1% (2,154 ounces), and consolidated gold production of 208,858 ounces from the Company's three operating mines, in line with budget - Consolidated gold revenue of
$382 million on sales of 205,300 ounces at an average realized gold price of$1,861 per ounce - Fekola's mill throughput was a quarterly record of 2.42 million tonnes,
8% above budget and6% higher than the second quarter of 2021 - Total consolidated cash operating costs (see "Non-IFRS Measures") (including estimated attributable results for Calibre) of
$781 per ounce produced and consolidated cash operating costs from the Company's three operating mines of$766 per ounce produced, both2% below budget - Total consolidated all-in sustaining costs ("AISC") (see "Non-IFRS Measures") (including estimated attributable results for Calibre) of
$1,111 per ounce sold and consolidated AISC from the Company's three operating mines of$1,109 per ounce sold, both well below budget by7% - Net income attributable to the shareholders of the Company of
$38 million ($0.04 per share); adjusted net income (see "Non-IFRS Measures") attributable to the shareholders of the Company of$45 million ($0.04 per share) - On July 3, 2022, the Economic Community of West African States ("ECOWAS") removed the economic, financial and diplomatic sanctions imposed on Mali earlier in 2022 following the interim Malian Government's announcement of a two-year transition to presidential elections and the promulgation of a new electoral law. As a result, Mali's borders with its neighbours are now open to normal commercial traffic and ordinary supply routes are once again available
- The Company remains in a strong net positive cash position and paid a second quarter dividend of
$0.04 per common share (annualized rate of$0.16 per common share), representing one of the highest dividend yields in the gold sector - The Company recently announced the acquisition of Oklo Resources Limited ("Oklo"), which will provide B2Gold with an additional landholding of 1,405 km2 covering highly prospective greenstone belts in Mali, including Oklo's flagship Dandoko project (550 km2), located approximately 25 kilometres from each of the Fekola Mine and the Anaconda area. The transaction is expected to be completed in mid-September 2022
- B2Gold published its sixth annual Responsible Mining Report entitled "Raising the Bar", which details B2Gold's global economic contributions and its environmental, social, and governance management practices, together with the Company's performance against key indicators in 2021
- Total gold production of 432,988 ounces (including 27,657 ounces of attributable production from Calibre), above budget by
3% (11,914 ounces), and consolidated gold production of 405,331 ounces from the Company's three operating mines, above budget by2% (7,383 ounces) - Consolidated gold revenue of
$748 million on sales of 400,400 ounces at an average realized gold price of$1,867 per ounce - Total consolidated cash operating costs (including estimated attributable results for Calibre) of
$742 per ounce produced, well below budget by7% , and consolidated cash operating costs from the Company's three operating mines of$722 per ounce produced, well below budget by8% - Total consolidated AISC (including estimated attributable results for Calibre) of
$1,074 per ounce sold, significantly below budget by15% , and consolidated AISC from the Company's three operating mines of$1,069 per ounce sold, significantly below budget by16% - Net income attributable to the shareholders of the Company of
$119 million ($0.11 per share); adjusted net income attributable to the shareholders of the Company of$110 million ($0.10 per share) - For full-year 2022, B2Gold remains well positioned for continued strong operational and financial performance and remains on track to achieve its total consolidated gold production guidance of between 990,000 - 1,050,000 ounces (including 40,000 - 50,000 attributable ounces projected from Calibre). Overall and after factoring in the positive operating results in the first half of 2022, the Company's total consolidated costs guidance ranges for full-year 2022 remain unchanged with total consolidated cash operating costs forecast to be at the upper end of the Company's guidance range of between
$620 and$660 per ounce and total consolidated AISC forecast to be within the Company's guidance range of between$1,010 and$1,050 per ounce
Based on the preliminary results of the optimized feasibility study for the Gramalote gold project in Colombia (the "Gramalote Project"), a joint venture between B2Gold and AngloGold Ashanti Limited ("AngloGold"), both partners have determined that the project does not currently meet their investment thresholds for development of the project at this time. Therefore, in conjunction with finalizing the Gramalote Feasibility Study by the end of the third quarter of 2022, B2Gold and AngloGold have jointly made the decision to review the alternatives for the Gramalote Project over the coming months.
Total gold production in the second quarter of 2022 was 223,623 ounces (including 14,765 ounces of attributable production from Calibre), slightly above budget by
For the second quarter of 2022, total consolidated cash operating costs (including estimated attributable results for Calibre) were
For the second quarter of 2022, total consolidated AISC (including estimated attributable results for Calibre) were
For the first half of 2022, total gold production was 432,988 ounces (including 27,657 ounces of attributable production from Calibre), above budget by
For the first half of 2022, total consolidated cash operating costs (including estimated attributable results for Calibre) were
For the first half of 2022, total consolidated AISC (including estimated attributable results for Calibre) were
For full-year 2022, B2Gold remains well positioned for continued strong operational and financial performance and remains on track to achieve its total gold production guidance of between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre). Due to the timing of high-grade ore mining, consolidated gold production from the Company's three operating mines is expected to increase significantly in the second half of 2022 to between 560,000 and 590,000 ounces.
Consolidated cash operating costs for the first half of 2022 were below the first half guidance range of between
Overall and after factoring in the positive operating results in the first half of 2022, the Company's total consolidated costs guidance ranges for full-year 2022 remain unchanged. For full-year 2022, total consolidated cash operating costs are forecast to be at the upper end of the Company's guidance range of between
As previously disclosed, the Company's operations continue to be impacted by global cost inflation with fuel costs reflecting the most significant increases. 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 half of 2022 were lower than budget and for full-year 2022, the Company expects to be at the upper end of its original total consolidated cash operating cost guidance range and within its original total consolidated AISC guidance range. 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.
For the second quarter of 2022, consolidated gold revenue was
For the second quarter of 2022, cash flow provided by operating activities was
Based on current assumptions, including a realized gold price of
Net income for the second quarter of 2022 was
For the first half of 2022, consolidated gold revenue was
For the first half of 2022, cash flow provided by operating activities was
For the first half of 2022, net income was
B2Gold continues to maintain a strong financial position and liquidity. At June 30, 2022, the Company had cash and cash equivalents of
On June 8, 2022, B2Gold's Board of Directors declared a cash dividend for the second 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
Overall and after factoring in the positive operating results in the first half of 2022, the Company's total consolidated gold production and cost guidance ranges for full-year 2022 remain unchanged. Individual mine results have updated guidance as detailed in tables below.
Mine-by-mine gold production in the second quarter and first half of 2022 (including the Company's estimated
Mine | Q2 2022 Gold Production (ounces) | First-Half 2022 Gold Production (ounces) | Revised Full-year 2022 Forecast Gold Production (ounces) |
Fekola | 123,066 | 224,714 | 570,000 - 600,000 |
Masbate | 54,375 | 114,139 | 215,000 - 225,000 |
Otjikoto | 31,417 | 66,478 | 165,000 - 175,000 |
B2Gold Consolidated (1) | 208,858 | 405,331 | 950,000 – 1,000,000 |
Equity interest in Calibre (2) | 14,765 | 27,657 | 40,000 - 50,000 |
Total | 223,623 | 432,988 | 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 second quarter and first half of 2022 were as follows (presented on a
Mine | Q2 2022 Cash Operating Costs ($ per ounce | First-Half 2022 Cash Operating Costs ($ per ounce | Revised Full-year 2022 Cash Operating Costs ($ per ounce produced) |
Fekola | |||
Masbate | |||
Otjikoto | |||
B2Gold Consolidated | |||
Equity interest in Calibre (1) | |||
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 second quarter and first half of 2022 were as follows (presented on a
Mine | Q2 2022 Cash Operating Costs ($ per ounce sold) | First-Half 2022 Cash Operating Costs ($ per ounce sold) | Revised Full-year 2022 Cash Operating Costs ($ per ounce sold) |
Fekola | |||
Masbate | |||
Otjikoto | |||
B2Gold Consolidated | |||
Equity interest in Calibre (1) | |||
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 second quarter and first half of 2022 were as follows (presented on a
Mine | Q2 2022 AISC ($ per ounce sold) | First-Half 2022 AISC ($ per ounce sold) | Full-year 2022 AISC ($ per ounce sold) |
Fekola | |||
Masbate | |||
Otjikoto | |||
B2Gold Consolidated | |||
Equity interest in Calibre (1) | |||
Total |
(1) | Calibre's 2022 forecast AISC are assumed to be consistent throughout 2022. |
Fekola Gold Mine - Mali
The Fekola Mine in Mali continued its strong operational performance through the second quarter of 2022, producing 123,066 ounces of gold, in line with budget. In the second quarter of 2022, Fekola's processing facilities achieved record quarterly throughput of 2.42 million tonnes,
For the second quarter of 2022, mill feed grade was 1.71 grams per tonne ("g/t") compared to budget of 1.81 g/t and 1.65 g/t in the second quarter of 2021; mill throughput was 2.42 million tonnes compared to budget of 2.24 million tonnes and 2.29 million tonnes in the second quarter of 2021; and gold recovery averaged
For the second quarter of 2022, Fekola's cash operating costs were
Fekola's AISC for the second quarter of 2022 were
For the first half of 2022, the Fekola Mine produced 224,714 ounces of gold, slightly above budget (901 ounces) and, as expected, lower by
For the first half of 2022, Fekola's cash operating costs were
Fekola's AISC for the first half of 2022 were
Capital expenditures for the second quarter of 2022 totaled
The Company welcomes the recent announcement by ECOWAS of the removal on July 3, 2022 of the economic, financial and diplomatic sanctions imposed on Mali in January 2022. The sanctions were removed by ECOWAS after the interim Malian Government announced a two-year transition to presidential elections and promulgated a new electoral law. Mali's borders with its neighbouring countries have now re-opened to normal commercial traffic and ordinary supply routes are available. Throughout the period of the sanctions, the Fekola Mine continued to operate normally and meet its production targets while maintaining a good working relationship with the interim Government.
The low-cost Fekola Mine remains on track to produce between 570,000 and 600,000 ounces of gold in 2022. Fekola's gold production is expected to significantly increase from the first half of 2022 to between 350,000 and 370,000 ounces during the second half of 2022. Fekola's cash operating costs for the first half of 2022 were below its first half guidance range of between
Overall and after factoring in the positive operating results in the first half of 2022, Fekola's costs guidance ranges for full-year 2022 remain unchanged. For full-year 2022, Fekola's cash operating costs are expected to be within its guidance range of between
Masbate Gold Mine – The Philippines
The Masbate Mine in the Philippines continued its strong operational performance with second quarter of 2022 gold production of 54,375 ounces, above budget by
For the second quarter of 2022, mill feed grade was 1.09 g/t compared to budget of 1.13 g/t and 1.17 g/t in the second quarter of 2021; mill throughput was 1.99 million tonnes compared to budget of 1.88 million tonnes and 1.86 million tonnes in the second quarter of 2021; and gold recovery averaged
For the second quarter of 2022, Masbate's cash operating costs were
Masbate's AISC for the second quarter of 2022 were
For the first half of 2022, Masbate Mine's gold production of 114,139 ounces was well above budget by
For the first half of 2022, Masbate's cash operating costs were
Masbate's AISC for the first half of 2022 were
Capital expenditures in the second quarter of 2022 totaled
In light of the Masbate Mine's positive production performance to date in 2022, it is now expected to produce between 215,000 and 225,000 ounces of gold in 2022 (original guidance range was between 205,000 and 215,000 ounces of gold). Masbate's gold production is scheduled to be relatively consistent throughout 2022. Masbate's cash operating costs for the first half of 2022 were above its first half guidance range of between
Overall, for full-year 2022, with the increases being experienced in fuel prices, Masbate's cash operating costs are now expected to be in the range of between
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia produced 31,417 ounces of gold in the second quarter of 2022, 2,027 ounces (
For the second quarter of 2022, mill feed grade was 1.17 g/t compared to budget of 1.25 g/t and 0.99 g/t in the second quarter of 2021; mill throughput was 0.85 million tonnes compared to budget of 0.85 million tonnes and 0.86 million tonnes in the second quarter of 2021; and gold recovery averaged
For the second quarter of 2022, Otjikoto's cash operating costs were
Otjikoto's AISC for the second quarter of 2022 were
For the first half of 2022, the Otjikoto Mine produced 66,478 ounces of gold, in line with budget and
For the first half of 2022, Otjikoto's cash operating costs were
Otjikoto's AISC for the first half of 2022 were
Capital expenditures for the second quarter of 2022 totaled
The Otjikoto Mine is now expected to produce between 165,000 and 175,000 ounces of gold in 2022 (original guidance range of 175,000 to 185,000 ounces). For the second half of 2022, Otjikoto's gold production is expected to increase significantly to between 100,000 and 105,000 ounces. Otjikoto's cash operating costs for the first half of 2022 were below its first half guidance range of between
Overall and after factoring in the positive operating results in the first half of 2022, Otjikoto's costs guidance ranges for full-year 2022 remain unchanged. For full-year 2022, Otjikoto's cash operating costs are expected to be at the upper end of its annual guidance range of between
Anaconda Area (comprised of the Menankoto and Bantako North permits) and Bakolobi - Mali
Fekola North and Anaconda Exploration
On March 23, 2022, the Company announced additional positive exploration drilling results from Fekola North and the Anaconda area which is comprised of the Menankoto permit and the Bantako North permit located approximately 20 kilometres from the Fekola Mine. High grade results from the Fekola North target area such as drill hole FKD_641, which returned 4.28 g/t gold over 19.15 metres, from 529.0 metres, provides strong support for ongoing evaluation of underground development of the deepest portions of the Fekola Mine deposit. In the Anaconda area, drill hole MSD_212, which returned 8.09 g/t gold over 15.8 metres, from 431.1 metres, confirms the presence of high grade sulphide, approximately 100 metres below the limits of the current Mineral Resource pit boundary. The good grade and width combinations at the Anaconda area continue to provide a strong indication of the potential for Fekola-style plunging bodies of sulphide mineralization, which remain open at depth. Ongoing drilling by the Company on the Anaconda area to infill and extend the saprolite Mineral Resource area, and to follow up on the sulphide mineralization, including the Mamba and Adder zones, as well as several other targets below the saprolite mineralization, continues to generate positive drill results in both saprolite and sulphide domains and demonstrates strong potential to further increase the updated Anaconda area Mineral Resource estimate (see below).
On March 23, 2022, the Company announced an updated and significantly increased Mineral Resource estimate for the Anaconda area. 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 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.
B2Gold's acquisition of Oklo and its flagship Dandoko project, which is expected to be completed in mid-September 2022, will extend the footprint of B2Gold's exploration in Mali to over 1,700 km2 and add the Dandoko project's JORC 2012 compliant Measured and Indicated Mineral Resource estimate of 8.70 million tonnes at 1.88 g/t for 528,000 ounces of gold and an Inferred Mineral Resource estimate of 2.63 million tonnes at 1.67 g/t for 141,000 ounces of gold, to B2Gold's rapidly growing Mineral Resource inventory in the region. The Company believes there is strong potential to extend the mineralization at the Dandoko project.
Fekola Complex Regional Development
In 2022, the Company budgeted
Based on this 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.
Gramalote Project (B2Gold –
Based on the preliminary results of the optimized feasibility study for the Gramalote gold project in Colombia (the "Gramalote Project"), a joint venture between B2Gold and AngloGold, both partners have determined that the project does not currently meet their investment thresholds for development of the project at this time. Therefore, in conjunction with finalizing the Gramalote Feasibility Study by the end of the third quarter of 2022, B2Gold and AngloGold have jointly made the decision to review the alternatives for the Gramalote Project over the coming months.
Following a review of the Gramalote Project's optimized feasibility study work completed to date, which included revisiting the original Gramalote Project design parameters 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, together with a review of the additional drilling of Indicated and Inferred portions of the Mineral Resource area and updating capital and operating costs to reflect both optimized project development and expected capital and operating costs, the outcome was that the Gramalote Project does not meet the internal investment indicators that would support further project development at this time.
While the general characteristics of the Gramalote Project remain constant and the project benefits from a low strip ratio, low processing costs, and a favourable relationship with the local and regional stakeholders, key changes to the project economics were identified during the optimized feasibility study work which combine to preclude development of the project by the joint venture. On a global scale, cost inflation has resulted in estimated capital cost increases of approximately
The Gramalote Project continues to benefit from strong federal and local government support as well as continuing support from local communities. B2Gold and AngloGold intend to jointly complete a comprehensive review of the alternatives relating to the Gramalote Project and consider the interests of all stakeholders in making a decision on the future of the project.
The Company is pleased with its second quarter of 2022 results, particularly given the challenges mining companies are facing around the world. Based on a strong operational and financial first half of 2022, the Company is on track to meet its annual gold production guidance for 2022 of between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre). Consolidated cash operating costs and AISC were below budget for the first half of 2022. Cash operating costs and AISC guidance for each operation for the second half of 2022 have been revised to reflect the current increases in fuel pricing and expected timing of remaining sustaining capital expenditures for 2022. However, after factoring in the positive cost results in the first half of 2022, total consolidated costs guidance ranges for full-year 2022 remain unchanged. Total consolidated cash operating costs for full year 2022 are expected to be at the upper end of the Company's original guidance range 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. On April 21, 2022 the Company completed the acquisition of 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.
In 2022, the Company budgeted
After a very successful year for exploration in 2021, B2Gold is conducting an aggressive exploration campaign in 2022 with a revised budget of approximately
The Company's ongoing strategy is to continue to maximize profitable production from its mines, further advance its pipeline of remaining development and exploration projects, evaluate new exploration, development and production opportunities and continue to pay an industry leading dividend yield.
B2Gold executives will host a conference call to discuss the results on Thursday, August 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 652410 #).
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 | Cherry De Geer |
Senior Vice President, Legal & | Director, Corporate Communications |
Corporate Communications | 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.
For the three months ended June 30, 2022 | For the three months ended June 30, 2021 | For the six months ended June 30, 2022 | For the six months ended June 30, 2021 | |||||
Gold revenue | $ 381,985 | $ 362,990 | $ 747,568 | $ 725,292 | ||||
Cost of sales | ||||||||
Production costs | (158,303) | (132,293) | (281,263) | (243,925) | ||||
Depreciation and depletion | (81,874) | (77,809) | (159,137) | (144,536) | ||||
Royalties and production taxes | (23,901) | (24,671) | (49,591) | (51,197) | ||||
Total cost of sales | (264,078) | (234,773) | (489,991) | (439,658) | ||||
Gross profit | 117,907 | 128,217 | 257,577 | 285,634 | ||||
General and administrative | (12,549) | (10,518) | (23,377) | (20,616) | ||||
Share-based payments | (4,041) | (8,673) | (12,445) | (9,839) | ||||
Write-down of mineral property interests | (3,158) | — | (3,158) | (1,040) | ||||
Reversal of impairment of long-lived assets | 909 | — | 909 | — | ||||
Community relations | (453) | (733) | (1,072) | (1,314) | ||||
Foreign exchange losses | (6,001) | (4,534) | (8,457) | (1,040) | ||||
Share of net income of associate | 4,139 | 4,281 | 6,911 | 9,347 | ||||
Other income (expense) | 1,062 | 547 | (970) | (3,409) | ||||
Operating income | 97,815 | 108,587 | 215,918 | 257,723 | ||||
Interest and financing expense | (2,691) | (3,049) | (5,274) | (5,945) | ||||
Gains on derivative instruments | 7,749 | 9,491 | 27,048 | 17,540 | ||||
Other income | 2,932 | 454 | 10,688 | 1,156 | ||||
Income from operations before taxes | 105,805 | 115,483 | 248,380 | 270,474 | ||||
Current income tax, withholding and other taxes | (60,141) | (50,470) | (107,795) | (91,596) | ||||
Deferred income tax (expense) recovery | (4,978) | 8,969 | (9,096) | (6,064) | ||||
Net income for the period | $ 40,686 | $ 73,982 | $ 131,489 | $ 172,814 | ||||
Attributable to: | ||||||||
Shareholders of the Company | $ 37,804 | $ 68,457 | $ 118,527 | $ 160,012 | ||||
Non-controlling interests | 2,882 | 5,525 | 12,962 | 12,802 | ||||
Net income for the period | $ 40,686 | $ 73,982 | $ 131,489 | $ 172,814 | ||||
Earnings per share (attributable to shareholders of the Company) | ||||||||
Basic | $ 0.04 | $ 0.07 | $ 0.11 | $ 0.15 | ||||
Diluted | $ 0.04 | $ 0.06 | $ 0.11 | $ 0.15 | ||||
Weighted average number of common shares outstanding (in thousands) | ||||||||
Basic | 1,061,270 | 1,053,054 | 1,059,060 | 1,052,303 | ||||
Diluted | 1,068,276 | 1,063,900 | 1,065,891 | 1,063,542 |
For the three months ended June 30, 2022 | For the three months ended June 30, 2021 | For the six months ended June 30, 2022 | For the six months ended June 30, 2021 | |||||
Operating activities | ||||||||
Net income for the period | $ 40,686 | $ 73,982 | $ 131,489 | $ 172,814 | ||||
Non-cash charges, net | 98,385 | 67,847 | 171,345 | 143,046 | ||||
Changes in non-cash working capital | (8,736) | (146,112) | (53,471) | (170,978) | ||||
Changes in long-term value added tax receivables | (5,456) | (4,033) | (17,174) | (7,344) | ||||
Cash provided (used) by operating activities | 124,879 | (8,316) | 232,189 | 137,538 | ||||
Financing activities | ||||||||
Revolving credit facility transaction costs | — | — | (2,401) | — | ||||
Repayment of equipment loan facilities | (4,705) | (7,343) | (11,495) | (14,570) | ||||
Interest and commitment fees paid | (1,096) | (822) | (2,324) | (1,733) | ||||
Cash proceeds from stock option exercises | 8,600 | 1,082 | 12,631 | 1,834 | ||||
Dividends paid | (42,512) | (41,893) | (84,746) | (83,965) | ||||
Principal payments on lease arrangements | (2,448) | (693) | (3,667) | (1,428) | ||||
Distributions to non-controlling interests | (3,158) | (7,234) | (4,180) | (9,234) | ||||
Funding from non-controlling interests | 730 | — | 730 | — | ||||
Changes in restricted cash accounts | 162 | 388 | — | 499 | ||||
Cash used by financing activities | (44,427) | (56,515) | (95,452) | (108,597) | ||||
Investing activities | ||||||||
Expenditures on mining interests: | ||||||||
Fekola Mine | (20,198) | (8,721) | (48,426) | (26,117) | ||||
Masbate Mine | (14,057) | (6,778) | (19,750) | (13,342) | ||||
Otjikoto Mine | (23,152) | (21,091) | (39,283) | (39,966) | ||||
Gramalote Project | (4,130) | (4,002) | (8,537) | (7,469) | ||||
Anaconda Property, pre-development | (6,717) | — | (6,929) | — | ||||
Other exploration and development | (15,982) | (15,253) | (29,236) | (25,424) | ||||
Cash paid on acquisition of mineral property | (48,258) | — | (48,258) | — | ||||
Cash paid on exercise of mineral property option | — | — | (7,737) | — | ||||
Funding of reclamation accounts | (1,917) | (2,178) | (4,098) | (3,499) | ||||
Purchase of common shares of associate | — | (5,945) | — | (5,945) | ||||
Other | (358) | (1,990) | (358) | (3,523) | ||||
Cash used by investing activities | (134,769) | (65,958) | (212,612) | (125,285) | ||||
Decrease in cash and cash equivalents | (54,317) | (130,789) | (75,875) | (96,344) | ||||
Effect of exchange rate changes on cash and cash equivalents | (7,751) | 362 | (10,432) | (1,200) | ||||
Cash and cash equivalents, beginning of period | 648,760 | 512,568 | 672,999 | 479,685 | ||||
Cash and cash equivalents, end of period | $ 586,692 | $ 382,141 | $ 586,692 | $ 382,141 | ||||
As at June 30, | As at December 31, | |||
Assets | ||||
Current | ||||
Cash and cash equivalents | $ 586,692 | $ 672,999 | ||
Accounts receivable, prepaids and other | 55,378 | 32,112 | ||
Deferred consideration receivable | 43,649 | 41,559 | ||
Value-added and other tax receivables | 5,760 | 14,393 | ||
Inventories | 300,203 | 272,354 | ||
Assets classified as held for sale | 13,609 | 12,700 | ||
1,005,291 | 1,046,117 | |||
Long-term investments | 22,748 | 32,118 | ||
Value-added tax receivables | 80,601 | 63,165 | ||
Mining interests | ||||
Owned by subsidiaries and joint operations | 2,251,470 | 2,231,831 | ||
Investments in associates | 116,605 | 104,236 | ||
Other assets | 88,298 | 82,371 | ||
Deferred income taxes | — | 1,455 | ||
$ 3,565,013 | $ 3,561,293 | |||
Liabilities | ||||
Current | ||||
Accounts payable and accrued liabilities | $ 87,593 | $ 111,716 | ||
Current income and other taxes payable | 84,150 | 92,275 | ||
Current portion of long-term debt | 19,308 | 25,408 | ||
Current portion of mine restoration provisions | 734 | 734 | ||
Other current liabilities | 24,956 | 1,056 | ||
216,741 | 231,189 | |||
Long-term debt | 47,318 | 49,726 | ||
Mine restoration provisions | 93,035 | 116,547 | ||
Deferred income taxes | 195,528 | 187,887 | ||
Employee benefits obligation | 7,349 | 7,115 | ||
Other long-term liabilities | 7,569 | 7,822 | ||
567,540 | 600,286 | |||
Equity | ||||
Shareholders' equity | ||||
Share capital | 2,447,033 | 2,422,184 | ||
Contributed surplus | 68,749 | 67,028 | ||
Accumulated other comprehensive loss | (145,669) | (136,299) | ||
Retained earnings | 542,438 | 507,381 | ||
2,912,551 | 2,860,294 | |||
Non-controlling interests | 84,922 | 100,713 | ||
2,997,473 | 2,961,007 | |||
$ 3,565,013 | $ 3,561,293 | |||
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SOURCE B2Gold Corp.
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