B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) announces its operational and financial results for the third quarter of 2022. The Company previously released its gold production and gold revenue results for the third quarter of 2022. All dollar figures are in United States dollars unless otherwise indicated.

2022 Third Quarter and Year-to-Date Summary

• Total gold production of 227,016 ounces in Q3 2022, expected to increase significantly in Q4 2022: Lower than expected production at the Fekola and Otjikoto mines in the third quarter of 2022 due to temporary mining sequence changes (see “Operations” discussion). Strong production anticipated in the fourth quarter of 2022 at both operations. At Fekola, ore production from Fekola open-pit Phase 6 has commenced and is forecast to average between 3.4 to 3.5 grams per tonne  gold. Over the full fourth quarter of 2022, gold grade mined is anticipated to average over 3.0 g/t gold at Fekola. At Otjikoto, gold production is anticipated to benefit as mining has reached a higher-grade zone in the Otjikoto pit and with stope ore production from the Wolfshag Underground mine.
• Total consolidated cash operating costs of $824 per gold ounce sold in Q3 2022, expected to be significantly lower in Q4 2022: Total consolidated cash operating costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre Mining Corp.  which accounts for approximately 5% of B2Gold’s total gold production in 2022) of $824 per gold ounce sold and consolidated cash operating costs from the Company’s three operating mines of $810 per gold ounce sold. Year-to-date total consolidated cash operating costs of $760 per gold ounce sold in line with expectations after a strong first half of 2022.
• Total consolidated all-in sustaining costs of $1,169 per gold ounce sold in Q3 2022, expected to be significantly lower in Q4 2022: Total consolidated all-in sustaining costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $1,169 per gold ounce sold and consolidated all-in sustaining costs from the Company’s three operating mines of $1,154 per gold ounce sold. Year-to-date total consolidated all-in sustaining costs of $1,108 per gold ounce sold is slightly better than expected after a strong first half of 2022. Total consolidated all-in sustaining costs are anticipated to benefit in Q4 2022 from higher grade ore being processed at Fekola and Otjikoto.
• Maintain full-year 2022 total gold production and total consolidated cost guidance: Based on the year-to-date cost performance and strong anticipated gold production in Q4 2022, the Company re-affirms full year 2022 total gold production and total consolidated cost guidance. Total gold production is expected to be between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre). Total consolidated cash operating costs are expected to be at the upper end of the Company’s original guidance range of between $620 and $660 per gold ounce and total consolidated all-in sustaining costs are expected to within the Company’s original guidance range of between $1,010 and $1,050 per gold ounce.
• Attributable net loss of $(0.02) per share; adjusted attributable net income of $0.03 per share in Q3 2022: Net loss attributable to the shareholders of the Company of $(23) million ($(0.02) per share); adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $32 million ($0.03 per share).
• Operating cash flow before working capital adjustments of $0.13 per share in Q3 2022: Cash flow provided by operating activities before working capital adjustments was $139 million ($0.13 per share) in the third quarter of 2022.
• Robust financial position: At September 30, 2022, the Company had cash and cash equivalents of $549 million and working capital (defined as current assets less assets classified as held for sale and current liabilities) of $725 million.
• Q3 2022 dividend of $0.04 per share declared: The Company remains in a strong net positive cash position and paid a third quarter dividend of $0.04 per common share (annualized rate of $0.16 per common share), representing a 5.0% yield as of September 30, 2022.
• Completed acquisition of Oklo Resources Limited (“Oklo”): The Company completed the acquisition of Oklo on September 20, 2022, providing 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.
• Fekola Complex study underway to deliver low capital intensity production growth: Commencing a feasibility level engineering study of stand-alone mill and oxide processing facilities at the Anaconda area. The study will be based on processing at least 4 million tonnes per annum ( of saprolite and transitional (oxide) resources, with an option to add fresh rock (sulphide) capabilities in the future. Results of this study are expected in the second quarter of 2023. Conceptual analysis indicates that the combined Fekola and Anaconda processing facilities could have the potential to produce more than 800,000 ounces of gold per year commencing as early as 2026.
• Continued investment in near-mine exploration in Mali: The Company is drilling to infill and extend the saprolite resource area and to follow up on the sulphide mineralization at the Anaconda area, including the Mamba and Adder zones, and several other targets below the saprolite mineralization. The good grade and width combinations at the Anaconda area continue to provide a strong indication of the potential for Fekola-style south plunging bodies of sulphide mineralization, which remains open down plunge. Seven drill rigs are currently drilling in the Anaconda area and one drill rig is currently operating on Bakolobi. On the Mamba zone, drill results are particularly significant as they confirm the continuity of high grade sulphide mineralization 110 metres below the limit of the updated Mineral Resource pit boundaries. In the main Anaconda area Mineral Resource pit, drill results demonstrate the potential to add sulphide Mineral Resources beneath the currently defined saprolite resources, where the mineralization remains open at depth.
• B2Gold and joint venture partner AngloGold Ashanti Limited (“AngloGold”) intend to initiate a joint sales process for Gramalote: B2Gold and partner AngloGold have completed a comprehensive review of the alternatives relating to the Gramalote project and consider that the interests of all stakeholders would be best served by finding a buyer for the project. The partners intend to commence a joint sales process for the Gramalote project in the fourth quarter of 2022.

Third Quarter and Year-to-Date 2022 Results

Operations

Fekola Mine – Mali

The Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) produced 129,933 ounces in the third quarter of 2022, lower than expected due to a challenging rainy season in West Mali which temporarily delayed access to higher grade ore from Fekola open-pit Phase 6. In early October 2022, mining commenced from the higher grade Fekola open-pit Phase 6 as the region exited its rainy season (which typically runs from June to September). Ore production from Fekola open-pit Phase 6 is forecast to average between 3.4 to 3.5 g/t gold. Over the full fourth quarter of 2022, gold grade mined is anticipated to average over 3.0 g/t gold.

The Fekola Mine’s cash operating costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were $728 per gold ounce produced ($694 per gold ounce sold). Operating costs were higher than expected in the third quarter of 2022 largely due to fuel and explosive prices and increases in mining equipment maintenance costs.

All-in sustaining costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 for the Fekola Mine were $978 per gold ounce sold. All-in sustaining costs for the third quarter of 2022 were higher than expected as a result of higher cash operating costs described above and lower gold ounces sold partially offset by realized gains on the settlement of fuel derivatives.

Capital expenditures in the third quarter of 2022 totalled $20 million primarily consisting of $11 million for mobile equipment purchases and rebuilds, $6 million for tailings storage facility expansion and equipment, $2 million for process plant and other site maintenance and $1 million for the development of the Cardinal zone.

On July 3, 2022, ECOWAS removed 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 are now open 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.

Based on an expected strong fourth quarter of 2022 performance, as the region exits its rainy season and with higher grade production forecast from Fekola open-pit Phase 6, the Company re-affirms the Fekola Mine’s annual production guidance range of between 570,000 to 600,000 ounces of gold. Cash operating costs for the year are expected to be within Fekola’s guidance range of between $510 and $550 per gold ounce produced and all-in sustaining costs are also expected to be within Fekola’s guidance range of between $840 and $880 per gold ounce.

Masbate Mine – The Philippines

The Masbate Mine in the Philippines produced 49,902 ounces in the third quarter of 2022. Gold production was 4% less than expected as the ratio of sulphide and transitional ore to oxide ore was higher than forecasted in the third quarter of 2022, which contributed to the lower throughput and gold recovery and higher gold mill feed grade.

The Masbate Mine’s cash operating costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were $867 per gold ounce produced ($879 per gold ounce sold). Cash operating costs per ounce produced for the third quarter of 2022 were higher than expected as a result of slightly lower gold production and higher mining and processing costs resulting from higher than expected diesel and heavy fuel oil cost.

All-in sustaining costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were $1,110 per gold ounce sold. All-in sustaining costs for the third quarter of 2022 were in line with expectations as a result of offsetting factors. Slightly higher cash operating costs as described above and slightly higher capital expenditures due to timing differences were offset by realized gains on the settlement of fuel derivatives and higher gold ounces sold.

Capital expenditures in the third quarter of 2022 totalled $10 million, primarily consisting of $5 million for mobile equipment purchases and rebuilds, $2 million for an additional powerhouse generator and $1 million for tailings storage facility construction.

For the full year 2022 the Masbate Mine is expected to produce towards the lower end of increased guidance of between 215,000 and 225,000 ounces of gold (original guidance range was between 205,000 and 215,000 ounces of gold). For full-year 2022, with the increases being experienced in fuel prices, Masbate’s cash operating costs are now expected to be at the lower end of Masbate’s previously revised 2022 guidance range of between $820 and $860 per gold ounce (original guidance range was between $740 and $780 per gold ounce). The all-in sustaining cost guidance range remains unchanged and are expected to be at the upper end of Masbate’s guidance range of between $1,070 and $1,110 per gold ounce.

Otjikoto Mine – Namibia

The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, produced 35,068 ounces in the third quarter of 2022, lower than expected due to delays in bringing the Wolfshag Underground mine into production. Project delays were due to issues achieving development rates in prior periods, which have been addressed through the appointment of a new underground development contractor in April 2022. Development rates in the Wolfshag Underground mine have improved and are in line with budget, with access to initial development ore achieved in the third quarter of 2022 and stope ore production having commenced in the fourth quarter of 2022. Mined ore tonnage and grade continue to reconcile well with Otjikoto’s resource model, with production anticipated to significantly increase in the fourth quarter of 2022 when mining reaches a higher-grade zone in the Otjikoto pit and with stope ore production from the Wolfshag Underground mine.

Cash operating costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were $958 per gold ounce produced ($1,165 per gold ounce sold). Cash operating costs per ounce produced for the third quarter of 2022 were higher than expected as a result of lower production due to delays in accessing Wolfshag Underground production (which has commenced in the fourth quarter of 2022) and higher fuel costs partially offset by a weaker than expected Namibian dollar.

All-in sustaining costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were $1,625 per gold ounce sold. All-in sustaining costs for the third quarter of 2022 were higher than expected as a result of the higher cash operating costs described above and lower gold ounces sold, partially offset by lower sustaining capital expenditures and realized gains on the settlement of fuel derivatives. The lower sustaining capital expenditures are mainly a result of delays in underground development resulting in underground development costs being classified as non-sustaining instead of sustaining as budgeted.

Capital expenditures for the third quarter of 2022 totalled $20 million, primarily consisting of $8 million for Wolfshag underground mine development, $7 million for prestripping in the Otjikoto pit, $3 million for mobile equipment purchases and rebuilds and $1 million to complete the national power grid connection line.

The Otjikoto Mine is expected to produce towards the lower end of its previously revised guidance range of between 165,000 and 175,000 ounces of gold in 2022 (original guidance range of 175,000 to 185,000 ounces). Overall and after factoring in the operating results for the first nine months of 2022, Otjikoto’s costs guidance ranges for full-year 2022 remain unchanged. For full-year 2022, cash operating costs are expected to be within the Company’s guidance range of between $740 and $780 per gold ounce and all-in sustaining costs are expected to be within its guidance range of between $1,120 and $1,160 per gold ounce.

Fekola Complex Regional Development and Exploration

Development

Based on the updated Anaconda area Mineral Resource estimate and B2Gold’s preliminary planning, the Company has demonstrated that the Anaconda area (Bantako and Menankoto license areas) could provide selective higher grade saprolite material (average grade of 2.2 g/t gold) to be trucked approximately 20 kilometers and fed into the Fekola mill at a rate of up to 1.5 million tonnes per annum. Trucking of selective higher grade saprolite material to the Fekola mill will increase the ore processed and annual gold production from the Fekola mill, with the potential to add an average of approximately 80,000 to 100,000 ounces of gold per year to the Fekola mill’s annual production (Fekola Complex optimization Phase I).

In 2022, the Company budgeted $33 million for the development of saprolite mining at the Anaconda area including road construction, mine infrastructure, and mining equipment. The construction mobile equipment fleet is arriving, and the Company expects to break ground on roads and mining infrastructure construction in the fourth quarter of 2022. Engineering and procurement of the mine workshop and mobile equipment is on schedule for saprolite production from the Bantako license area as early as the second quarter of 2023 and from the Dandoko license area as early as the fourth quarter of 2023. Production from Bantako and Dandoko is contingent upon receipt of all necessary permits as well as optimizing long-term project value from the various oxide and sulphide material sources now available including Fekola Pit, Fekola Underground, Cardinal, Bantako, Menankoto, Dandoko, and Bakolobi.

Preliminary results of a Fekola Complex optimization study, coupled with 2022 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 has therefore commenced a feasibility level engineering study of stand-alone mill and oxide processing facilities at the Anaconda area (Fekola Complex optimization Phase II). The study will be based on processing at least 4 Mtpa of saprolite and transitional (oxide) resources, with an option to add fresh rock (sulphide) capabilities in the future. Results of this study are expected in the second quarter of 2023. Conceptual analysis indicates that the combined Fekola and Anaconda processing facilities could have the potential to produce more than 800,000 ounces of gold per year commencing as early as 2026, subject to completion of final feasibility studies, and the receipt of all necessary regulatory approvals and permits. Further expansion of the Mamba and Cobra sulphide zones (see September 15, 2022 press release) could sustain a production profile averaging over 800,000 ounces of gold per year over a 10-year period. Drilling is currently ongoing at the Mamba and Cobra sulphide zones.

Exploration

In 2022, B2Gold is conducting an approximately 161,000 m drill program on the Fekola Complex with a budget of approximately $35 million, including drill programs on the Fekola North deposit to further test the underground mineralization potential, and on the Anaconda area, including the Mamba, Adder, Anaconda, Cascabel, Viper, and Cobra zones.

At the Mamba Main Zone in the Anaconda area, positive exploration drilling results were received, including hole BND_108 with 5.89 grams per tonne gold over 28.70 meters from 455.45 m, hole BND_101 with 3.76 g/t gold over 32.08 m from 299.00 m, and hole BND_104 with 3.33 g/t gold over 14.30 m from 362.70 m, which collectively confirm and extend the continuity of the high grade sulphide mineralization of the sulphide shoot to over 700 m down plunge, providing a strong indication of the potential for Fekola-style bodies of sulphide mineralization, which remain open at depth.

At the Cobra Zone in the Anaconda area, strong initial drilling results were received, including hole MSD_227 with 2.02 g/t gold over 25.30 m from 201.70 m, and 6.75 g/t gold over 13.80 m from 244.40 m, confirming the potential for economic grade and width combinations in the sulphide mineralization. The Company believes that the Cobra Zone may extend onto the Bakolobi permit and are currently drilling this extension target.

Gramalote Project

The Gramalote Feasibility Study has been completed for the Gramalote gold project in Colombia  a joint venture between B2Gold and AngloGold, and both partners have determined that the project does not meet their investment thresholds for development of the project. The Gramalote Project continues to benefit from government support as well as continuing support from local communities. B2Gold and AngloGold have completed a comprehensive review of the alternatives relating to the Gramalote Project and consider that the interests of all stakeholders would be best served by finding a buyer for the Project. The partners intend to commence a joint sales process for the Gramalote Project in the fourth quarter of 2022.

Outlook

For the full-year 2022, total consolidated production and cost guidance remains unchanged. Lower than expected production at the Fekola and Otjikoto mines in the third quarter of 2022 were due to temporary mining sequence changes (see “Operations” discussion). Strong production is anticipated in the fourth quarter of 2022 at both operations. As a result, the Company re-affirms its total gold production guidance for 2022 of between 990,000 and 1,050,000 ounces of gold (including 40,000 and 50,000 attributable ounces projected from Calibre). Overall and after factoring in the operating results for the first nine months of 2022, the Company’s costs guidance ranges for full-year 2022 remain unchanged. The Company’s total consolidated cash operating costs are expected to be at the upper end of the original guidance range of between $620 and $660 per ounce and total consolidated all-in sustaining costs are expected to within the original guidance range of between $1,010 and $1,050 per ounce.

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, draw downs of existing inventories, proactive management and the revised sequencing of certain mining and capital costs, and gains realized from the Company’s fuel hedging program, the Company’s consolidated cash operating costs and all-in sustaining costs in the first nine months of 2022 were in line with budget. 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 all-in sustaining cost 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.

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.

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.

About B2Gold

B2Gold is a Vancouver-based international gold mining company with three operating gold mines and numerous development and exploration projects in various countries including Mali, the Philippines, Namibia, Colombia, Finland and Uzbekistan. Since its founding in 2007, B2Gold has created significant shareholder value by identifying and acquiring companies with assets that benefit from B2Gold’s best-in-class approach to exploration, mine building and operations. This includes the acquisition of Australian-based Papillon Resources that brought in what is now B2Gold’s flagship Fekola Gold Project in Mali in 2014, Australian-based CGA Mining with its Masbate Gold Mine in the Philippines in 2013, and Canadian-based Auryx Gold with its Otjikoto Gold Project in Namibia in 2011. Fekola is now a tier-one gold mine expected to produce between 570,000 and 600,000 ounces of gold in 2022, Masbate is expected to produce between 215,000 and 225,000 ounces in 2022, and Otjikoto is expected to produce between 165,000 and 175,000 ounces in 2022.