B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) announces its operational and financial results for the second quarter of 2023. All dollar figures are in United States dollars unless otherwise indicated.

2023 Second Quarter Highlights

• Total gold production of 262,701 ounces in Q2 2023, in-line with expectations for the quarter: Total gold production of 262,701 ounces, including 16,740 ounces of attributable production from Calibre Mining Corp. The Fekola Mine produced 152,427 ounces in the quarter, benefitting from a favorable mine phasing sequence in the second quarter, with Phase 6 of the Fekola pit providing high-grade ore to the process plant. All B2Gold operations are on track to meet or exceed annual production guidance ranges.
• Total consolidated cash operating costs of $667 per gold ounce sold in Q2 2023, below the annual guidance range: Total consolidated cash operating costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $667 per gold ounce sold during the quarter. Consolidated cash operating costs from the Company’s three operating mines of $639 per gold ounce sold.
• Total consolidated all-in sustaining costs of $1,214 per gold ounce sold in Q2 2023, below the midpoint of the annual guidance range: Total consolidated all-in sustaining costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $1,214 per gold ounce sold. Consolidated all-in sustaining costs from the Company’s three operating mines of $1,210 per gold ounce sold.
• Attributable net income of $0.06 per share; Adjusted attributable net income of $0.07 per share in Q2 2023: Net income attributable to the shareholders of the Company of $80 million ($0.06 per share); adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $86 million ($0.07 per share).
• Operating cash flow before working capital adjustments of $199 million in Q2 2023: Cash flow provided by operating activities before working capital adjustments was $199 million in the second quarter of 2023.
• Robust financial position: At June 30, 2023, the Company had cash and cash equivalents of $506 million and working capital (defined as current assets less current liabilities) of $570 million.
• Q2 2023 dividend of $0.04 per share declared: The Company remains in a strong net positive cash position and paid a second quarter dividend of $0.04 per common share on June 27, 2023 (annualized rate of $0.16 per common share).
• Completed acquisition of Sabina Gold and Silver Corp. (“Sabina”); Goose Project construction on-track for mill completion and first gold production in Q1 2025: In the second quarter of 2023 the Company completed its inaugural winter ice road season, extinguished certain of Sabina’s construction financing obligations and received all critical materials that were necessary to maintain the schedule for construction completion of the mill and first gold production at the Goose Project in the first quarter of 2025. Currently, camp construction is partially complete, generators are being installed, and construction workshops are being erected. The Company has also decided to move to an owner-operated construction model versus a fixed priced EPC contract for the construction of the process plant, which will reduce costs and result in a mill with higher availability and lower sustaining capital requirements. Using B2Gold’s owner-operated team also allows for flexibility in construction and the ability to prioritize construction activities as needed.
• Updated and significantly increased Mineral Resource Estimate for the Anaconda Area announced: On June 21, 2023, the Company announced an updated Mineral Resource estimate that includes a significant increase in the laterite, saprolite and saprock (collectively “oxide”) Mineral Resources, and an initial sulphide Indicated Mineral Resource estimate for the Anaconda Area.

Second Quarter 2023 Results

^{(1) Attributable to the shareholders of the Company.
(2) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.}

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At June 30, 2023, the Company had cash and cash equivalents of $506 million (December 31, 2022 – $652 million) and working capital (defined as current assets less current liabilities) of $570 million (December 31, 2022 – $802 million). At June 30, 2023, the full amount of the Company’s $600 million revolving credit facility was undrawn and available. In July 2023, the available and undrawn capacity of the RCF was increased to $700 million under the accordion feature with the addition of the National Bank of Canada to the syndicate of lenders.

Second Quarter 2023 Dividend

On June 5, 2023, B2Gold’s Board of Directors declared a cash dividend for the second quarter of 2023 of $0.04 per common share (or an expected $0.16 per share on an annualized basis), paid on June 27, 2023. The declaration and payment of future quarterly dividends remains at the discretion of the Board and will depend on the Company’s financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

Back River Gold District

On April 19, 2023, the Company completed the acquisition of Sabina, resulting in the Company acquiring Sabina’s 100% owned Back River Gold District located in Nunavut, Canada by issuing approximately 216 million common shares in B2Gold as consideration. The Back River Gold District consists of five mineral claims blocks along an 80 kilometer (“km”) belt. The most advanced project in the district, Goose, is fully permitted, construction ready, and has been de-risked with significant infrastructure currently in place. The Goose Project has an estimated two year construction period with first gold production expected in the first quarter of 2025. In addition, B2Gold obtained significant untapped exploration potential across the 80 km belt. B2Gold’s management team has strong northern construction expertise and experience to deliver the fully permitted Goose Project, and the financial resources to develop the significant gold resource endowment at the Back River Gold District into a large, long life mining complex. B2Gold recognizes that respect and collaboration with the Kitikmeot Inuit Association is central to the license to operate in the Back River Gold District and will continue to prioritize developing the project in a manner that recognizes Indigenous input and concerns and brings long-term socio-economic benefits to the area.

Subsequent to completion of the acquisition of Sabina, in the second quarter of 2023, B2Gold completed its inaugural winter ice road season, extinguished certain of Sabina’s construction financing obligations and received all critical materials that were expected to be necessary to maintain the schedule for construction completion of the mill and first gold production at the Goose Project in the first quarter of 2025. Currently, camp construction is partially complete, generators are being installed, and construction workshops are being erected. The Company extinguished certain of Sabina’s construction financing obligations with payments totaling $112 million as follows: senior secured debt facility for a $2 million payment, gold prepay facility for a $1 million payment, the entire gold metal offtake agreement for a $63 million payment, and one-third of the gold stream arrangement for a $46 million payment.

On June 23, 2023, the Company announced an initial capital expenditure estimate of C$800 million, which was in line with B2Gold expectations since the Sabina acquisition announcement and reflects scope changes to further optimize the Goose Project. B2Gold has updated the construction budget to de-risk the project and construct a reliable and low operating cost mine. In addition, the Company has made the decision to accelerate underground mining development to increase annual gold production over the first five years of the mine plan, including the mining of the Umwelt crown pillar. The cost to accelerate underground mining is estimated at an additional C$90 million for a total project capital expenditure of C$890 million (approximately $676 million) with approximately C$550 million (approximately $418 million) expected to be spent by B2Gold up to completion of construction in the first quarter of 2025.

In the second quarter of 2023, a significant 2023 exploration program was approved for the Back River Gold District. B2Gold has approved a $20 million exploration budget for the balance of 2023 to complete approximately 25,000 meters (“m”) of drilling. Drilling will be focused in proximity to existing deposits at the Goose Project, as well as following up on regional targets identified at the George, Boulder, Boot and Del projects.

Operations

Fekola Mine – Mali

^{(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.}

The Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) had a successful second quarter of 2023 with gold production of 152,427 ounces. Fekola’s gold production was slightly lower than expected due to a number of factors including lower than budgeted gold recovery, delayed delivery of a key mine production excavator and lower than budgeted mine production from Phase 6 of the Fekola pit as a result of blast hole drilling inefficiencies and congestion in working areas. The Company expects that the gold production variance will be caught up in the fourth quarter of 2023 and that the Fekola Complex is on track to meet its annual production guidance. For the second quarter of 2023, mill feed grade was 2.24 grams per tonne, mill throughput was 2.32 million tonnes, and gold recovery averaged 91.8%.

The Fekola Mine’s cash operating costs (refer to “Non-IFRS Measures”) for the second quarter of 2023 were $538 per ounce produced ($555 per gold ounce sold). Cash operating costs per ounce produced for the second quarter of 2023 were slightly higher than expected resulting from lower than anticipated gold production.

All-in sustaining costs (refer to “Non-IFRS Measures”) for the second quarter of 2023 for the Fekola Mine were $1,165 per gold ounce sold. All-in sustaining costs were higher than expected primarily due to higher than anticipated sustaining capital expenditures as a result of timing of capital expenditures.

Capital expenditures in the second quarter of 2023 totaled $74 million primarily consisting of $21 million for mobile equipment purchases and rebuilds, $21 million for prestripping, $12 million for Fekola underground development, $6 million for the tailings facility raise project, $4 million for solar plant expansion and $3 million for haul road construction.

The low-cost Fekola Complex in Mali is expected to produce between 580,000 and 610,000 ounces of gold in 2023 at cash operating costs of between $565 and $625 per ounce and all-in sustaining costs of between $1,085 and $1,145 per ounce. At the Fekola Mine, ore will continue to be mined from the Fekola and Cardinal pits. Receipt of an exploitation license for the Bantako North permit area remains outstanding pending finalization of a proposed new 2023 Mining Code by the State of Mali. As a result, the Company now expects Fekola Regional budgeted production of 18,000 ounces to be delayed into 2024. Due to availability of additional ore sources in the Fekola Complex, production guidance of between 580,000 and 610,000 ounces for the Fekola Complex for 2023 remains unchanged.

Masbate Mine – The Philippines

^{(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.}

The Masbate Mine in the Philippines had a strong second quarter of 2023 with gold production of 49,478 ounces, above expectations, as a result of higher than anticipated mill feed grade and mill throughput. For the second quarter of 2023, mill feed grade was 1.03 g/t gold, mill throughput was 2.00 million tonnes, and gold recovery averaged 74.3%.

The Masbate Mine’s cash operating costs (refer to “Non-IFRS Measures”) for the second quarter of 2023 were $817 per ounce produced ($850 per gold ounce sold). Cash operating costs per ounce produced for the second quarter of 2023 were lower than expected as a result of higher than expected gold production, and lower than anticipated mining and processing costs resulting from lower than expected diesel and heavy fuel oil (“HFO”) costs.

All-in sustaining costs (refer to “Non-IFRS Measures”) for the second quarter of 2023 were $1,091 per ounce sold. All-in sustaining costs for the second quarter of 2023 were lower than anticipated as a result of lower than expected cash operating costs and sustaining capital expenditures, and higher than expected gold ounces sold. The lower than expected sustaining capital expenditures are mainly a result of timing of expenditures and expected to be incurred later in 2023.

Capital expenditures in the second quarter of 2023 totaled $6 million, primarily consisting of $3 million for mobile equipment purchases and rebuilds.

The Masbate Mine in the Philippines is expected to produce between 170,000 and 190,000 ounces of gold in 2023 at cash operating costs of between $985 and $1,045 per ounce and all-in sustaining costs of between $1,370 and $1,430 per ounce. For 2023, Masbate is expected to process 7.8 million tonnes of ore at an average grade of 0.96 g/t gold with a process gold recovery of 74.5%. Gold production is scheduled to be relatively consistent throughout 2023. Mill feed will be a blend of mined fresh ore sourced from the Main Vein Pit and low-grade ore stockpiles.

The Masbate Mine has benefited from lower fuel costs over the first half of 2023. The Company will continue to monitor actual versus budget fuel prices in the third quarter of 2023 and if lower pricing continues to be observed, it will consider whether any revision to the Masbate Mine’s full-year cash operating costs and all-in sustaining costs guidance is required at that time.

Otjikoto Mine – Namibia

^{(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.}

The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, performed well during the second quarter of 2023, producing 44,056 ounces of gold. As a result of the timing of higher-grade ore mining, Otjikoto’s annual gold production is expected to be 60% weighted to the second half of 2023, when mining is scheduled to reach the higher-grade portions of Phase 4 of the Otjikoto pit coupled with higher production from the Wolfshag underground mine. For the second quarter of 2023, mill feed grade was 1.59 g/t, mill throughput was 0.88 million tonnes, and gold recovery averaged 98.7%.

Production from the Wolfshag underground mine remained consistent during the second quarter of 2023, averaging over 1,000 tonnes per day at an average grade of 4.31 g/t. As of the beginning of 2023, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 203,000 ounces of gold in 1.1 million tonnes of ore at an average grade of 5.55 g/t gold.

Cash operating costs (refer to “Non-IFRS Measures”) for the second quarter of 2023 were $611 per gold ounce produced ($641 per ounce gold sold). Cash operating costs per ounce produced for the second quarter of 2023 were lower than expected as a result of higher production as described above, lower than budgeted fuel costs and a weaker Namibian dollar.

All-in sustaining costs for the second quarter of 2023 were $1,187 per gold ounce sold. All-in sustaining costs for the second quarter of 2023 were lower than anticipated as a result of lower than expected cash operating costs described above, and lower than expected sustaining capital expenditures primarily related to the timing of underground development. The lower than expected sustaining capital expenditures are mainly a result of timing of expenditures and expected to be incurred later in 2023.

Capital expenditures for the second quarter of 2023 totaled $16 million, consisting of $13 million for pre-stripping in the Otjikoto pit and $2 million for Wolfshag underground mine development.

The Otjikoto Mine in Namibia is expected to produce between 190,000 and 210,000 ounces of gold in 2023 at cash operating costs of between $590 and $650 per ounce and all-in sustaining costs of between $1,080 and $1,140 per ounce. For 2023, Otjikoto is expected to process a total of 3.4 million tonnes of ore at an average grade of 1.87 g/t gold with a process gold recovery of 98.0%. Otjikoto’s gold production is still expected to be weighted 60% towards the second half of 2023 due to the timing of high grade ore mining from the Otjikoto pit and increased ore volumes from the Wolfshag underground mine.

The Otjikoto Mine has benefited from lower fuel costs and a weaker Namibian dollar over the first half of 2023. The Company will continue to monitor the Namibian dollar and actual versus budget fuel prices in the third quarter of 2023 and if lower pricing continues to be observed, it will consider whether any revision to the Otjikoto Mine’s full-year cash operating costs and all-in sustaining costs guidance is required at that time.

Fekola Complex Regional Development and Exploration

Development

The Fekola Complex is comprised of the Fekola Mine (Medinandi permit hosting the Fekola and Cardinal zones) and Fekola Regional (Anaconda Area (Bantako, Menankoto, and Bakolobi permits), and the Dandoko permit).

In the second quarter of 2023 and the first half of 2023, the Company invested $15 million and $30 million, respectively, in the development of Fekola Regional (Anaconda Area) saprolite mining including road construction, mine infrastructure, and mining equipment. For 2023, the Company has budgeted a total of $63 million for Fekola Regional development. The construction mobile equipment fleet is now in operation, the haul road from Bantako North to Fekola is operational and construction of the haul roads and mining infrastructure (warehouse, workshop, fuel depot, and offices) is on schedule; however, as discussed above (see Operations-Fekola Mine, Mali), receipt of an exploitation license for the Bantako North permit area remains outstanding.

Preliminary results of a Fekola Complex optimization study, coupled with 2022 and 2023 exploration drilling results, indicate that there is a significant opportunity to increase gold production and resource utilization with the addition of oxide processing capacity. The Company is progressing an engineering study of a Fekola Regional stand-alone mill and oxide processing facilities, which are expected to be located on the Anaconda Area. Construction of a stand-alone oxide mill would constitute Phase II of the Fekola Regional Development Plan. The engineering study will be based on processing 4 Mtpa of saprolite and transitional (oxide) resources.

On June 21, 2023, the Company announced an updated Mineral Resource estimate for the Anaconda Area, located approximately 20 km from the Fekola Mine in Mali. The June 2023 Mineral Resource estimate included a significantly increased Mineral Resource estimate for the Anaconda Area, comprised of the Menankoto permit, the Bantako North permit and the Bakolobi permit. The updated Mineral Resource estimate includes a significant increase in the oxide Mineral Resources, and an initial sulphide Indicated Mineral Resource estimate. The June 2023 Mineral Resource estimate includes Indicated Mineral Resource estimate of 57,000,000 tonnes at 1.11 g/t gold for 2,030,000 ounces of gold, and Inferred Mineral Resource estimate of 46,600,000 tonnes at 1.33 g/t gold for 2,000,000 ounces of gold, constrained within a conceptual pit run at US$1,800 per ounce gold.

To allow for incorporation of this updated Mineral Resource estimate into the engineering study, results of the Fekola Complex optimization study are expected in the fourth quarter of 2023. In addition, Fekola Complex optimization work continues to maximize project value from all the various oxide and sulphide material sources including the Fekola Pit, Fekola Underground, Cardinal Pit, and the Bantako North, Menankoto, Bakolobi and Dandoko permits.

Exploration

B2Gold is executing another year of extensive exploration in 2023 with an increased budget of approximately $84 million (original budget of $64 million). A significant focus will be in proximity to its operating mines in Mali, Namibia and the Philippines, as well as $20 million of spending on both infill and generative exploration at the recently acquired Back River Gold District. Ongoing exploration will continue to advance B2Gold’s early stage projects in Finland and Cote d’Ivoire. Target generation and pursuing new opportunities in prospective gold regions in Africa, Canada, South America, the Philippines and Central Asia continue. This generative initiative could include equity placements and new joint ventures with junior companies, similar to B2Gold’s 2023 investments in Snowline and its Rogue project in the Yukon, Canada, and its 2022 investment in Matador Mining Ltd. and its Cape Ray Gold project in Newfoundland, Canada.

Outlook

B2Gold expects to continue its strong operational performance in 2023 with total gold production forecast to be between 1,000,000 and 1,080,000 ounces (including 60,000 to 70,000 attributable ounces from Calibre). The Company’s total consolidated cash operating costs for the year (including estimated attributable results for Calibre) are forecast to be between $670 and $730 per ounce and total consolidated all-in sustaining (including estimated attributable results for Calibre) are forecast to be between $1,195 and $1,255 per ounce.

Due to the Company’s strong net positive cash position and available liquidity, strong operating results and cash flows, B2Gold’s quarterly dividend rate is expected to be maintained at $0.04 per common share (or an annualized rate of $0.16 per common share), which represents one of the highest dividend yields in the gold sector.

After a very successful year for exploration in 2022, B2Gold is conducting an aggressive exploration campaign in 2023 with a budget of approximately $84 million with the vast majority allocated to growth exploration expenditures to support the next phase of organic growth across the portfolio.

The closing of the acquisition of Sabina and the Goose Project adds a high grade, fully permitted, construction stage gold project in Nunavut, Canada to the Company’s portfolio and enhances its operational and geographic diversification by combining B2Gold’s stable production base with a high grade, advanced development asset in a Tier-1 mining jurisdiction. The Goose Project has an estimated two-year construction period with first gold production expected in the first quarter of 2025. In addition, B2Gold has acquired access to significant untapped exploration potential across an 80 km belt.

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.

About B2Gold

B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines and numerous exploration and development projects in various countries including Canada, Mali, Colombia, Finland and Uzbekistan. B2Gold forecasts total consolidated gold production of between 1,000,000 and 1,080,000 ounces in 2023.

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.

Brian Scott, P. Geo., Vice President, Geology & Technical Services, a qualified person under NI 43-101, has approved the scientific and technical information related to exploration and mineral resource matters contained in this news release.

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)

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)

B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
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