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B2Gold Reports Q3 2024 Results; On Track to Meet Total 2024 Gold Production Revised Guidance; Year-To-Date Cash Operating Costs within Annual Guidance Range and Year-To-Date All-In Sustaining Costs Below Revised Annual Guidance Range

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B2Gold Reports Q3 2024 Results; On Track to Meet Total 2024 Gold Production Revised Guidance; Year-To-Date Cash Operating Costs within Annual Guidance Range and Year-To-Date All-In Sustaining Costs Below Revised Annual Guidance Range

B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) announces its operational and financial results for the third quarter of 2024. All dollar figures are in United States dollars unless otherwise indicated.

2024 Third Quarter Highlights

  • Total gold production of 180,553 ounces: Total gold production in the third quarter of 2024 was 180,553 ounces. At the Fekola Mine, production was lower than expected due to the delayed timing of mining high-grade ore and by lower than anticipated equipment productivity and inclement weather throughout the quarter that reduced the mined volumes of high-grade ore. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability at Fekola, reducing tonnes mined in the first and second quarters of 2024, which affected the availability of higher-grade ore for the third quarter of 2024. Masbate and Otjikoto both continued to outperform expectations in the third quarter.
  • Total consolidated cash operating costs of $1,061 per gold ounce produced: Total consolidated cash operating costs (see “Non-IFRS Measures”) were $1,061 per gold ounce produced during the third quarter of 2024. Total consolidated cash operating costs of $865 per gold ounce produced for the first nine months of 2024 are at the mid-point of the Company’s annual guidance range.
  • Total consolidated all-in sustaining costs of $1,650 per gold ounce sold: Total consolidated all-in sustaining costs (see “Non-IFRS Measures”) were $1,650 per gold ounce sold for the third quarter of 2024. Total consolidated all-in sustaining costs of $1,405 per gold ounce sold for the first nine months of 2024 are below the Company’s revised annual guidance range.
  • Attributable net loss of $0.48 per share; adjusted attributable net income of $0.02 per share: Net loss attributable to the shareholders of the Company in the third quarter of 2024 of $634 million ($0.48 per share), predominantly due to a non-cash impairment charge on the Goose Project as a result of the previously announced construction capital increases (see “Goose Project Development”). Adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company was $29 million ($0.02 per share). Adjusted net income attributable to the shareholders of the Company in the third quarter was negatively impacted by one-time tax audit accruals of $30 million related to the agreement between the Company and the State of Mali in connection with the ongoing operation and governance of the Fekola Complex.
  • Operating cash flow before working capital adjustments of $118 million: Cash flow provided by operating activities before working capital adjustments was $118 million in the third quarter of 2024.
  • Strong financial position and liquidity: At September 30, 2024, the Company had cash and cash equivalents of $431 million and working capital (defined as current assets less current liabilities) of $419 million.
  • Q4 2024 dividend of $0.04 per share declared: On November 6, 2024, B2Gold’s Board of Directors declared a cash dividend for the fourth quarter of 2024 of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.
  • Goose Project construction and development remains on schedule for first gold pour in Q2 2025: All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 cubic meters of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road campaign to the Marine Laydown Area from global locations.
  • Memorandum of Understanding with the State of Mali relating to the Fekola Complex: On September 11, 2024, the Company announced that it had entered into a Memorandum of Understanding with the State of Mali in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine (owned 80% by B2Gold and 20% by the State of Mali) and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase for Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.

 

Third Quarter 2024 Results 

Three months ended Nine months ended
September 30, September 30,
2024 2023 2024 2023
Gold revenue ($ in thousands) 448,229 477,888 1,402,242 1,422,298
Net (loss) income ($ in thousands) (631,032) (34,770) (617,328) 158,984
(Loss) earnings per share – basic(1) ($/ share) (0.48) (0.03) (0.47) 0.10
(Loss) earnings per share – diluted(1) ($/ share) (0.48) (0.03) (0.47) 0.10
Cash (used) provided by operating activities ($ thousands) (16,099) 110,204 757,060 509,010
Average realized gold price ($/ ounce) 2,483 1,920 2,285 1,929
Adjusted net income(1)(2) ($ in thousands) 29,157 64,840 189,109 256,506
Adjusted earnings per share(1)(2) – basic ($) 0.02 0.05 0.14 0.21
Consolidated operations results:
Gold sold (ounces) 180,525 248,889 613,731 737,139
Gold produced (ounces) 180,553 225,052 599,133 721,732
Production costs ($ in thousands) 192,408 171,425 500,452 451,791
Cash operating costs(2) ($/ gold ounce sold) 1,066 689 815 613
Cash operating costs(2) ($/ gold ounce produced) 1,061 741 852 638
Total cash costs(2) ($/ gold ounce sold) 1,248 827 972 752
All-in sustaining costs(2) ($/ gold ounce sold) 1,650 1,273 1,400 1,177
Operations results including equity investment in Calibre:
Gold sold (ounces) 180,525 266,616 633,375 787,805
Gold produced (ounces) 180,553 242,838 618,777 772,395
Production costs ($ in thousands) 192,408 188,216 525,578 502,162
Cash operating costs(2) ($/ gold ounce sold) 1,066 706 830 637
Cash operating costs(2) ($/ gold ounce produced) 1,061 755 865 661
Total cash costs(2) ($/ gold ounce sold) 1,248 840 984 772
All-in sustaining costs(2) ($/ gold ounce sold) 1,650 1,272 1,405 1,182

(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 September 30, 2024, the Company had cash and cash equivalents of $431 million (December 31, 2023 – $307 million) and working capital (defined as current assets less current liabilities) of $419 million (December 31, 2023 – $397 million). During the quarter ended September 30, 2024, the Company drew down $200 million on the Company’s $700 million revolving credit facility, leaving $500 million remaining available for future draw downs.

 

Fourth Quarter 2024 Dividend

On November 6, 2024, B2Gold’s Board of Directors declared a cash dividend for the fourth quarter of 2024 of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.

In 2023, the Company implemented a Dividend Reinvestment Plan. For the purposes of the Q4 2024 Dividend, the Company is pleased to announce that a discount of 3% will be applied to calculate the Average Market Price (as defined in the DRIP) of its common shares issued from treasury. However, the Company may, from time to time, in its discretion, change or eliminate any applicable discount, which would be publicly announced, all in accordance with the terms and conditions of the DRIP. Participation in the DRIP is optional. In order to participate in the DRIP in time for the Q4 2024 Dividend, registered shareholders must deliver a properly completed enrollment form to Computershare Trust Company of Canada by no later than 4:00 p.m. (Toronto time) on December 5, 2024. Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution, or other intermediary through which they hold common shares well in advance of the above date for instructions on how to enroll in the DRIP.

This dividend is designated as an “eligible dividend” for the purposes of the Income Tax Act (Canada). Dividends paid by B2Gold to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes.

The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with B2Gold’s constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.

For more information regarding the DRIP and enrollment in the DRIP, please refer to the Company’s website at https://www.b2gold.com/investors/stock_info/.

 

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

The Company has filed a registration statement relating to the DRIP with the U.S. Securities and Exchange Commission that may be obtained under the Company’s profile on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov/EDGAR or by contacting the Company using the contact information at the end of this news release.

 

Operations

Fekola Complex – Mali

Three months ended Nine months ended
September 30, September 30,
2024 2023 2024 2023
Gold revenue ($ in thousands) 194,988 292,375 721,898 888,272
Gold sold (ounces) 78,889 152,239 318,005 460,139
Average realized gold price ($/ ounce) 2,472 1,921 2,270 1,930
Tonnes of ore milled 2,466,087 2,392,829 7,449,327 6,988,763
Grade (grams/ tonne) 1.07 1.82 1.40 2.17
Recovery (%) 92.7 92.1 92.7 91.9
Gold production (ounces) 78,207 128,942 308,931 447,233
Production costs ($ in thousands) 109,857 93,388 276,443 250,294
Cash operating costs(1) ($/ gold ounce sold) 1,393 613 869 544
Cash operating costs(1) ($/ gold ounce produced) 1,434 688 935 561
Total cash costs(1) ($/ gold ounce sold) 1,653 773 1,066 706
All-in sustaining costs(1) ($/ gold ounce sold) 2,287 1,261 1,583 1,125
Capital expenditures ($ in thousands) 64,464 83,166 198,205 211,112
Exploration ($ in thousands) 996 3,136 1,706

(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) produced 78,207 ounces of gold in the third quarter of 2024, below expectations due to the delayed timing of mining of high-grade ore resulting in less high-grade ore processed during the quarter. For the third quarter of 2024, mill feed grade was 1.07 grams per tonne, mill throughput was 2.47 million tonnes, and gold recovery averaged 92.7%. Lower than anticipated equipment productivity and inclement weather throughout the quarter impacted the mined volumes of high-grade ore during the third quarter of 2024. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability for the first nine months of 2024, reducing tonnes mined during the first and second quarters of 2024, which affected the availability of higher-grade ore of Phase 7 of the Fekola pit resulting in less high-grade ore processed during the third quarter of 2024. The damaged machine has been replaced and the new unit operated for the full third quarter of 2024. The reduction in mining rates experienced in the first nine months of 2024 is expected to continue to impact the availability of higher-grade ore from Phase 7 of the Fekola pit during the fourth quarter of 2024 resulting in an expected decrease in Fekola production as compared to initial production estimates. Mining and processing of these ounces is now expected in the first quarter of 2025. Despite short term variations, overall, ore volumes and grades continue to reconcile relatively well with modelled values.

The Fekola Mine’s cash operating costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $1,434 per gold ounce produced ($1,393 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were higher than expected as a result of lower than anticipated gold production during the third quarter, partially offset by lower fuel costs, higher mill throughput, higher gold recovery and lower mining costs due to lower than expected mined tonnage.

All-in sustaining costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $2,287 per gold ounce sold. All-in sustaining costs were higher than expected as a result of higher than anticipated production costs per gold ounce sold, lower than expected gold ounces sold, higher than anticipated sustaining capital expenditures due to the timing of expenditures and higher gold royalties resulting from a higher than anticipated average realized gold price.

Capital expenditures in the third quarter of 2024 totalled $64 million primarily consisting of $12 million for deferred stripping, $10 million for mobile equipment purchases and rebuilds, $7 million for the construction of a new tailings storage facility, $20 million for Fekola underground development and $11 million for solar plant expansion. All solar panels, inverters, transformers and the tracking system have been installed for the solar plant expansion and the solar field was energized on September 29, 2024. Commissioning has continued with final completion of the solar plant expansion expected by the end of November 2024.

As a result of the delay in accessing higher-grade ounces from Phase 7 of the Fekola pit, production from the Fekola Complex is expected to be towards the low end of Fekola’s revised guidance range of between 420,000 and 450,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be towards the upper ends of their respective revised guidance ranges of between $870 and $930 per ounce and $1,510 and $1,570 per ounce.

 

Fekola Regional Development

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

The development of Fekola Regional is expected to demonstrate positive economics through the enhancement of the overall production profile and the extension of mine life of the Fekola Complex. Based on B2Gold’s preliminary planning, Fekola Regional could provide selective higher-grade saprolite material (average annual grade of up to 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.

On September 11, 2024, the Company announced the MOU Agreement with the State in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase of Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.

Masbate Mine – The Philippines

Three months ended Nine months ended
September 30, September 30,
2024 2023 2024 2023
Gold revenue ($ in thousands) 120,115 97,556 328,165 265,839
Gold sold (ounces) 47,960 50,950 142,260 137,300
Average realized gold price ($/ ounce) 2,504 1,915 2,307 1,936
Tonnes of ore milled 2,197,112 2,155,170 6,409,631 6,224,572
Grade (grams/ tonne) 0.98 1.01 0.97 0.99
Recovery (%) 72.4 73.0 72.4 73.6
Gold production (ounces) 50,215 51,170 144,512 147,012
Production costs ($ in thousands) 42,697 44,056 123,070 117,219
Cash operating costs(1) ($/ gold ounce sold) 890 865 865 854
Cash operating costs(1) ($/ gold ounce produced) 811 834 839 844
Total cash costs(1) ($/ gold ounce sold) 1,039 993 1,002 979
All-in sustaining costs(1) ($/ gold ounce sold) 1,167 1,124 1,174 1,152
Capital expenditures ($ in thousands) 5,192 5,896 20,229 20,947
Exploration ($ in thousands) 1,290 774 3,039 2,741

(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 continued its strong performance with third quarter of 2024 gold production of 50,215 ounces, above expectations due to higher mill throughput and higher than expected mill feed grade. For the third quarter of 2024, mill feed grade was 0.98 g/t, mill throughput was 2.20 million tonnes, and gold recovery averaged 72.4%, lower than expected. Lower gold recovery in the third quarter was a result of mining additional lower recovery high-grade sulphide ore during the third quarter. Actual gold recovery for the third quarter of 2024 remained in line with modeled recovery values for the ore mined.

The Masbate Mine’s cash operating costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $811 per gold ounce produced ($890 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were significantly lower than expected as a result of higher gold production, lower than anticipated mining and processing costs, higher mill productivity and lower fuel costs.

All-in sustaining costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $1,167 per ounce sold. All-in sustaining costs for the third quarter of 2024 were significantly lower than expected as a result of lower than anticipated production costs per gold ounce sold, higher than expected gold ounces sold and lower than expected sustaining capital expenditures.

Capital expenditures in the third quarter of 2024 totalled $5 million, primarily consisting of $2 million for mobile equipment purchases and rebuilds and $1 million for expansion of the existing tailings storage facility.

The Masbate Mine is expected to produce between 175,000 and 195,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be at or below the low end of their respective revised guidance ranges of between $910 and $970 per ounce and $1,260 and $1,320 per ounce.

Otjikoto Mine – Namibia

Three months ended Nine months ended
September 30, September 30,
2024 2023 2024 2023
Gold revenue ($ in thousands) 133,126 87,957 352,179 268,187
Gold sold (ounces) 53,676 45,700 153,466 139,700
Average realized gold price ($/ ounce) 2,480 1,925 2,295 1,920
Tonnes of ore milled 872,722 855,740 2,549,847 2,554,747
Grade (grams/ tonne) 1.88 1.66 1.80 1.57
Recovery (%) 98.8 98.4 98.6 98.6
Gold production (ounces) 52,131 44,940 145,690 127,487
Production costs ($ in thousands) 39,854 33,981 100,939 84,278
Cash operating costs(1) ($/ gold ounce sold) 742 744 658 603
Cash operating costs(1) ($/ gold ounce produced) 740 785 687 671
Total cash costs(1) ($/ gold ounce sold) 841 820 749 680
All-in sustaining costs(1) ($/ gold ounce sold) 896 1,178 963 1,074
Capital expenditures ($ in thousands) 609 13,290 26,128 46,266
Exploration ($ in thousands) 1,888 963 5,191 2,453

(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, continued to outperform during the third quarter of 2024, producing 52,131 ounces of gold, above expectations as a result of higher than anticipated mill feed grade and higher than expected mill throughput. For the third quarter of 2024, mill feed grade was 1.88 g/t, mill throughput was 0.87 million tonnes, and gold recovery averaged 98.8%. Ore production from the Wolfshag underground mine for the third quarter of 2024 averaged over 1,800 tonnes per day at an average grade of 3.64 g/t gold.

The Otjikoto Mine’s cash operating costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $740 per gold ounce produced ($742 per ounce gold sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were lower than anticipated due to higher than expected gold production in the third quarter of 2024.

All-in sustaining costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $896 per gold ounce sold. All-in sustaining costs for the third quarter of 2024 were lower than expected as a result of lower than expected cash operating costs and higher gold ounces sold, partially offset by higher gold royalties due to a higher than anticipated average realized gold price.

Capital expenditures for the third quarter of 2024 totalled $1 million for Wolfshag underground mine development.

The Otjikoto Mine is expected to produce between 185,000 and 205,000 ounces of gold in 2024 at cash operating costs of between $685 and $745 per ounce and all-in sustaining costs at or below the lower end of its guidance range of between $960 and $1,020 per ounce.

 

Goose Project Development 

The Back River Gold District consists of five mineral claims blocks along an 80 km belt. Construction is underway at the most advanced project in the district, the Goose Project, and has been de-risked with significant infrastructure currently in place.

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 Inuit priorities, addresses concerns, and brings long-term socio-economic benefits to the Kitikmeot Region. B2Gold looks forward to continuing to build on its strong collaboration with the KIA and Kitikmeot Communities.

As announced in May 2024, development of the open pit and underground was slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and the prioritization of critical path construction activities. An additional three months of mining was added to the schedule to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit. With the schedule change, the mill is expected to start wet commissioning in the second quarter of 2025 with ramp up to full production in the third quarter of 2025. The Company continues to estimate that gold production in calendar year 2025 will be between 120,000 ounces and 150,000 ounces. The updated production profile has resulted in the Company now estimating that average annual gold production for the six year period from 2026 to 2031 will increase to be in excess of 310,000 ounces per year. The Company remains on track to complete an updated Goose Project life of mine plan by the end of the first quarter of 2025.

B2Gold successfully completed the 2024 WIR campaign in the second quarter of 2024 and delivered all necessary materials from the MLA to complete the construction of the Goose Project. All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 m3 of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 WIR campaign to the MLA from global locations. Sealift offloading performance significantly increased throughout the 2024 sealift due to a newly constructed barge ramp. Current activities at the MLA now include continued maintenance and preparation of the WIR construction and haulage fleet and staging all materials for shipment on the 2025 WIR to the Goose Project site.

Development of the open pit and underground remain the Company’s primary focus to ensure that adequate material is available for mill startup and that the Echo pit is available for tailings placement. Mining of the Echo pit is meeting production targets and is anticipated to be ready to receive tailings when the mill starts. The underground mine remains on schedule for commencement of production by the end of the second quarter of 2025.

In the third quarter and first nine months of 2024, the Company incurred cash expenditures of $121 million (C$165 million) and $366 million (C$498 million), respectively, for the Goose Project on construction and mine development activities and $110 million (C$150 million) and $155 million (C$211 million), respectively, on supplies inventory.

As announced on September 12, 2024, the total Goose Project construction, mine development, and sustaining capital cash expenditures estimate (the “Total Goose Project Construction and Mine Development Cost”) before first gold production estimate is C$1,540 million, a C$290 million (or 23%) increase from the previous estimate from January 2024. Approximately 52% (or C$150 million) of the increase can be attributed to the one quarter delay in first gold production previously disclosed, combined with the acceleration of capital items that were previously anticipated to occur after first gold production. The acceleration of certain capital items is expected to make the Goose Project a more reliable and de-risked operation upon mill startup. The accelerated capital items include accelerated purchases of mining equipment versus the previous estimate to ensure continued growth in mining rates through 2025, the building of an accommodation complex at the MLA which will reduce ongoing annual costs associated with running the WIR, the construction of critical infrastructure at the Goose Project site, inclusive of warehousing, maintenance, mine dry facility, camp facility expansion, and the design acceleration of a reverse osmosis plant to optimize water management and lower ongoing operating costs. Approximately 24% (or C$70 million) of the increase in the Total Goose Project Construction and Mine Development Cost can be attributed to the increased cost of the logistics of shipping materials to the Goose Project site.

As a result of the previously announced increases to the Total Goose Project Construction and Mine Development Cost before first gold production estimate, the Company incurred a non-cash impairment of $661 million on the Goose Project carrying value in the third quarter of 2024.

 

Gramalote Project Development

On June 18, 2024, the Company announced the results of a positive Preliminary Economic Assessment on its 100% owned Gramalote Project located in the Department of Antioquia, Colombia. The PEA outlines a significant production profile with average annual gold production of 185,000 ounces over a 12.5 year project life with a low-cost structure and favorable metallurgical characteristics. Additionally, the PEA outlines strong project economics with an after-tax NPV5% of $778 million and an after-tax internal rate of return of 20.6%, with a project payback on pre-production capital of 3.1 years.

The estimated pre-production capital cost for the project is $807 million (including approximately $93 million for mining equipment and $63 million for contingency). A robust amount of historical drilling and engineering studies have been completed on the Gramalote Project, which significantly de-risks future project development. Based on the positive results from the PEA, B2Gold believes that the Gramalote Project has the potential to become a medium-scale, low-cost open pit gold mine.

B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025 and a $10 million budget has been approved by the Board. Due to the work completed for previous studies, the work remaining to finalize a feasibility study for the updated medium-scale project is not expected to be extensive. The main work programs for the feasibility study include geotechnical and environmental site investigations for the processing plant and waste dump footprints, as well as capital and operating cost estimates.

The Gramalote Project will continue to advance resettlement programs, establish coexistence programs for small miners, work on health, safety and environmental projects and continue to work with the government and local communities on social programs.

Due to the desired modifications to the processing plant and infrastructure locations, a Modified Environment Impact Study is required. B2Gold has commenced work on the modifications to the Environment Impact Study and expect it to be completed and submitted shortly following the completion of the feasibility study. If the final economics of the feasibility study are positive and B2Gold makes the decision to develop the Gramalote Project as an open pit gold mine, B2Gold would utilize its proven internal mine construction team to build the mine and mill facilities.

Outlook

Total gold production for 2024 is forecast to be towards the low end of the Company’s guidance range of between 800,000 and 870,000 ounces, including 20,000 ounces of attributable production from Calibre Mining Corp.

Gold production in 2025 is expected to increase significantly relative to 2024 as a result of the scheduled mining and processing of higher-grade ore from the Fekola and Cardinal pits made accessible by the meaningful stripping campaign that has been undertaken throughout 2024, the expected full year of contribution from Fekola Regional, which is anticipated to contribute between 80,000 and 100,000 ounces of additional production, and commencement of mining the higher-grade Fekola underground (subject to receipt of necessary permits for Fekola Regional and Fekola underground).

Upon completion of construction activities at the Goose Project, the mine is expected to commence gold production in the second quarter of 2025 and contribute between 120,000 and 150,000 ounces of gold in calendar year 2025. Over the first six full calendar years of operation from 2026 to 2031, the average annual gold production for the Goose Project is estimated to be in excess of 310,000 ounces of gold per year.

The positive PEA results on the Company’s 100% owned Gramalote Project, located in the Department of Antioquia, Colombia, outlines a significant production profile with average annual gold production of 234,000 ounces per year for the first five years of production, and strong project economics over a 12.5 year project life. As a result, B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025 and a $10 million budget has been approved by the Board.

Following the release of an initial Inferred Mineral Resource Estimate for the Springbok Zone, the southernmost shoot of the recently discovered Antelope deposit, located approximately three km south of the Otjikoto Phase 5 open pit at the Otjikoto Mine in Namibia, in the second quarter of 2024, the Company has commenced a PEA which is expected to be completed in the first half of 2025. Subject to receipt of a positive PEA and permit, mining of the Springbok Zone, coupled with the exploration potential of the greater Antelope deposit, could begin to contribute to gold production at Otjikoto in 2026. The Antelope deposit has the potential to supplement the processing of low-grade stockpiles at the Otjikoto Mine through 2031, with the goal of increasing gold production levels to over 100,000 ounces per year from 2026 through 2031.

The Company’s ongoing strategy is to continue to maximize profitable production from its existing mines, maintain a strong financial position, realize the significant potential increase in gold production from the Company’s existing development projects, continue exploration programs across the Company’s robust land packages, evaluate new exploration, development and production opportunities and continue to return capital to shareholders.

 

Third Quarter 2024 Financial Results – Conference Call Details

B2Gold executives will host a conference call to discuss the results on Thursday, November 7, 2024, at 8:00 am PT / 11:00 am ET.

Participants may register for the conference call here: registration link. Upon registering, participants will receive a calendar invitation by email with dial in details and a unique PIN.

This will allow participants to bypass the operator queue and connect directly to the conference. Registration will remain open until the end of the conference call. Participants may also dial in using the numbers below:

  • Toll-free in U.S. and Canada: +1 (844) 763-8274
  • All other callers: +1 (647) 484-8814

The conference call will be available for playback for two weeks by dialing toll-free in the U.S. and Canada: +1 (855) 669-9658, replay access code 4078435. All other callers: +1 (412) 317-0088, replay access code 4078435.

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, including “cash operating costs” and “all-in sustaining costs”. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and should be read in conjunction with B2Gold’s consolidated financial statements. Readers should refer to B2Gold’s Management Discussion and Analysis, available on the Websites, under the heading “Non-IFRS Measures” for a more detailed discussion of how B2Gold calculates certain of such measures and a reconciliation of certain measures to IFRS terms.

B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30
(Expressed in thousands of United States dollars, except per share amounts)
(Unaudited)
For the three
months ended
Sept. 30, 2024
For the three
months ended
Sept. 30, 2023
For the nine
months ended
Sept. 30, 2024
For the nine
months ended
Sept. 30, 2023
Gold revenue $ 448,229 $ 477,888 $ 1,402,242 $ 1,422,298
Cost of sales
Production costs (192,408 ) (171,425 ) (500,452 ) (451,791 )
Depreciation and depletion (88,051 ) (101,568 ) (273,505 ) (293,388 )
Royalties and production taxes (32,929 ) (34,389 ) (96,045 ) (102,661 )
Total cost of sales (313,388 ) (307,382 ) (870,002 ) (847,840 )
Gross profit 134,841 170,506 532,240 574,458
General and administrative (13,283 ) (13,064 ) (40,389 ) (41,170 )
Share-based payments (5,069 ) (4,289 ) (14,815 ) (15,734 )
Impairment of long-lived assets (661,160 ) (111,597 ) (876,376 ) (116,482 )
Gain on sale of mining interests 7,453 56,115
Gain on sale of shares in associate 16,822
Non-recoverable input taxes (3,353 ) (1,191 ) (10,352 ) (4,237 )
Share of net (loss) income of associates (98 ) 5,561 4,581 17,549
Foreign exchange gains (losses) 5,893 (11,739 ) (7,842 ) (14,588 )
Community relations (855 ) (1,158 ) (1,786 ) (3,883 )
Write-down of mining interests (565 ) (636 ) (17,022 )
Restructuring charges (5,071 ) (12,151 )
Other (expense) income (26,550 ) 130 (34,304 ) (4,159 )
Operating (loss) income (562,181 ) 27,523 (376,742 ) 362,581
Interest and financing expense (6,966 ) (3,190 ) (24,002 ) (9,032 )
Interest income 4,011 3,887 17,137 15,741
Change in fair value of gold stream (1,957 ) 7,600 (21,196 ) 6,500
Losses on dilution on associate (8,984 )
(Losses) gains on derivative instruments (6,378 ) 5,667 (5,674 ) 6,092
Other income (expense) 1,777 (951 ) 1,932 (5,069 )
(Loss) income from operations before taxes (571,694 ) 40,536 (417,529 ) 376,813
Current income tax, withholding and other taxes (74,804 ) (68,210 ) (233,085 ) (216,155 )
Deferred income tax recovery (expense) 15,466 (7,096 ) 33,286 (1,674 )
Net (loss) income for the period $ (631,032 ) $ (34,770 ) $ (617,328 ) $ 158,984
Attributable to:
Shareholders of the Company $ (633,757 ) $ (43,070 ) $ (618,010 ) $ 123,321
Non-controlling interests 2,725 8,300 682 35,663
Net (loss) income for the period $ (631,032 ) $ (34,770 ) $ (617,328 ) $ 158,984
(Loss) earnings per share (attributable to shareholders of the Company)
Basic $ (0.48 ) $ (0.03 ) $ (0.47 ) $ 0.10
Diluted $ (0.48 ) $ (0.03 ) $ (0.47 ) $ 0.10
Weighted average number of common shares outstanding 
(in thousands)
Basic 1,310,994 1,297,175 1,307,134 1,208,942
Diluted 1,310,994 1,297,175 1,307,134 1,213,349
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30
(Expressed in thousands of United States dollars)
(Unaudited)
For the three
months ended
Sept. 30, 2024
For the three
months ended
Sept. 30, 2023
For the nine
months ended
Sept. 30, 2024
For the nine
months ended
Sept. 30, 2023
Operating activities
Net (loss) income for the period $ (631,032 ) $ (34,770 ) $ (617,328 ) $ 158,984
Mine restoration provisions settled (527 ) (344 ) (1,468 ) (923 )
Non-cash charges, net 749,620 228,448 1,134,534 462,088
Proceeds from prepaid sales 500,023
Changes in non-cash working capital 3,576 (28,339 ) (54,148 ) (7,061 )
Changes in long-term inventory (101,769 ) (32,296 ) (117,465 ) (36,995 )
Changes in long-term value added tax receivables (35,967 ) (22,495 ) (87,088 ) (67,083 )
Cash (used) provided by operating activities (16,099 ) 110,204 757,060 509,010
Financing activities
Drawdown of revolving credit facility 200,000 200,000
Repayment of revolving credit facility (150,000 )
Extinguishment of gold stream and construction financing obligations (111,819 )
Repayment of equipment loan facilities (2,980 ) (3,448 ) (8,886 ) (9,913 )
Interest and commitment fees paid (1,075 ) (1,343 ) (5,744 ) (3,463 )
Cash proceeds from stock option exercises 569 6,486 3,014 12,394
Dividends paid (46,112 ) (45,378 ) (137,970 ) (140,084 )
Principal payments on lease arrangements (2,797 ) (1,135 ) (5,385 ) (4,624 )
Distributions to non-controlling interests (5,412 ) (13,601 ) (12,700 ) (17,881 )
Other (512 ) (862 ) 450 725
Cash provided (used) by financing activities 141,681 (59,281 ) (117,221 ) (274,665 )
Investing activities
Expenditures on mining interests:
Fekola Mine (64,464 ) (83,166 ) (198,205 ) (211,112 )
Masbate Mine (5,192 ) (5,896 ) (20,229 ) (20,947 )
Otjikoto Mine (609 ) (13,290 ) (26,128 ) (46,266 )
Goose Project (120,974 ) (88,082 ) (366,129 ) (156,694 )
Fekola Regional Properties (3,992 ) (16,535 ) (13,417 ) (46,345 )
Gramalote Project (3,357 ) (854 ) (10,227 ) (2,568 )
Other exploration (18,752 ) (17,770 ) (39,164 ) (58,313 )
Cash proceeds on sale of investment in associate 100,302
Cash proceeds on sale of long-term investment 58,627 77,288
Purchase of shares in associates (9,089 ) (9,089 )
Cash proceeds from sale of mining interests 7,500 7,500
Purchase of long-term investments (664 ) (879 ) (6,916 ) (32,759 )
Funding of reclamation accounts (2,290 ) (2,189 ) (4,995 ) (4,829 )
Cash acquired on acquisition of Sabina Gold & Silver Corp. 38,083
Transaction costs paid on acquisition of Sabina Gold & Silver Corp. (6,672 )
Other (89 ) (6,286 ) (1,925 ) (9,498 )
Cash used by investing activities (163,345 ) (234,947 ) (511,334 ) (557,920 )
(Decrease) increase in cash and cash equivalents (37,763 ) (184,024 ) 128,505 (323,575 )
Effect of exchange rate changes on cash and cash equivalents 2,036 (12,614 ) (4,287 ) (18,802 )
Cash and cash equivalents, beginning of period 466,840 506,207 306,895 651,946
Cash and cash equivalents, end of period $ 431,113 $ 309,569 $ 431,113 $ 309,569
B2GOLD CORP.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
(Unaudited)
As at September 30,
2024
As at December 31,
2023
Assets
Current
Cash and cash equivalents $ 431,113 $ 306,895
Accounts receivable, prepaids and other 54,097 27,491
Value-added and other tax receivables 58,157 29,848
Inventories 378,121 346,495
921,488 710,729
Long-term investments 89,045 86,007
Value-added tax receivables 282,803 199,671
Mining interests 3,096,562 3,563,490
Investment in associates 93,368 134,092
Long-term inventories 213,195 100,068
Other assets 69,285 63,635
Deferred income taxes 22,991 16,927
$ 4,788,737 $ 4,874,619
Liabilities
Current
Accounts payable and accrued liabilities $ 174,563 $ 167,117
Current income and other taxes payable 156,981 120,679
Current portion of prepaid gold sales 134,779
Current portion of long-term debt 17,288 16,256
Current portion of gold stream obligation 3,400
Current portion of mine restoration provisions 1,713 3,050
Other current liabilities 13,613 6,369
502,337 313,471
Long-term debt 221,890 175,869
Gold stream obligation 157,396 139,600
Prepaid gold sales 393,138
Mine restoration provisions 116,485 104,607
Deferred income taxes 161,889 188,106
Employee benefits obligation 20,129 19,171
Other long-term liabilities 26,393 23,820
1,599,657 964,644
Equity
Shareholders’ equity
Share capital 3,492,261 3,454,811
Contributed surplus 83,844 84,970
Accumulated other comprehensive loss (96,208 ) (125,256 )
Retained (deficit) earnings (442,705 ) 395,854
3,037,192 3,810,379
Non-controlling interests 151,888 99,596
3,189,080 3,909,975
$ 4,788,737 $ 4,874,619

 

NON-IFRS MEASURES

Cash operating costs per gold ounce sold and total cash costs per gold ounce sold

‘‘Cash operating costs per gold ounce’’ and “total cash costs per gold ounce” are common financial performance measures in the gold mining industry but, as non-IFRS measures, they do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance and ability to generate cash flow. Accordingly, these measures are 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. The measures, along with sales, are considered to be a key indicator of the Company’s ability to generate earnings and cash flow from its mining operations.

Cash cost figures are calculated on a sales basis in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. Other companies may calculate these measures differently. Cash operating costs and total cash costs per gold ounce sold are derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, royalties and production taxes, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce sold and total cash costs per gold ounce sold to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):

For the three months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Production costs 109,857 42,697 39,854 192,408 192,408
Royalties and production taxes 20,511 7,120 5,298 32,929 32,929
Total cash costs 130,368 49,817 45,152 225,337 225,337
Gold sold (ounces) 78,889 47,960 53,676 180,525 180,525
Cash operating costs per ounce ($/ gold ounce sold) 1,393 890 742 1,066 1,066
Total cash costs per ounce ($/ gold ounce sold) 1,653 1,039 841 1,248 1,248
For the three months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Production costs 93,388 44,056 33,981 171,425 16,791 188,216
Royalties and production taxes 24,333 6,556 3,500 34,389 1,303 35,692
Total cash costs 117,721 50,612 37,481 205,814 18,094 223,908
Gold sold (ounces) 152,239 50,950 45,700 248,889 17,727 266,616
Cash operating costs per ounce ($/ gold ounce sold) 613 865 744 689 947 706
Total cash costs per ounce ($/ gold ounce sold) 773 993 820 827 1,021 840
For the nine months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Production costs 276,443 123,070 100,939 500,452 25,126 525,578
Royalties and production taxes 62,561 19,420 14,064 96,045 1,565 97,610
Total cash costs 339,004 142,490 115,003 596,497 26,691 623,188
Gold sold (ounces) 318,005 142,260 153,466 613,731 19,644 633,375
Cash operating costs per ounce ($/ gold ounce sold) 869 865 658 815 1,279 830
Total cash costs per ounce ($/ gold ounce sold) 1,066 1,002 749 972 1,359 984
For the nine months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Production costs 250,294 117,219 84,278 451,791 50,371 502,162
Royalties and production taxes 74,685 17,254 10,722 102,661 3,635 106,296
Total cash costs 324,979 134,473 95,000 554,452 54,006 608,458
Gold sold (ounces) 460,139 137,300 139,700 737,139 50,666 787,805
Cash operating costs per ounce ($/ gold ounce sold) 544 854 603 613 994 637
Total cash costs per ounce ($/ gold ounce sold) 706 979 680 752 1,066 772

 

Cash operating costs per gold ounce produced 

In addition to cash operating costs on a per gold ounce sold basis, the Company also presents cash operating costs on a per gold ounce produced basis. Cash operating costs per gold ounce produced is derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce produced to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):

For the three months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Production costs 109,857 42,697 39,854 192,408 192,408
Inventory sales adjustment 2,330 (1,955 ) (1,294 ) (919 ) (919 )
Cash operating costs 112,187 40,742 38,560 191,489 191,489
Gold produced (ounces) 78,207 50,215 52,131 180,553 180,553
Cash operating costs per ounce ($/ gold ounce produced) 1,434 811 740 1,061 1,061
For the three months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Production costs 93,388 44,056 33,981 171,425 16,791 188,216
Inventory sales adjustment (4,673 ) (1,388 ) 1,294 (4,767 ) (4,767 )
Cash operating costs 88,715 42,668 35,275 166,658 16,791 183,449
Gold produced (ounces) 128,942 51,170 44,940 225,052 17,786 242,838
Cash operating costs per ounce ($/ gold ounce produced) 688 834 785 741 944 755
For the nine months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Production costs 276,443 123,070 100,939 500,452 25,126 525,578
Inventory sales adjustment 12,505 (1,767 ) (854 ) 9,884 9,884
Cash operating costs 288,948 121,303 100,085 510,336 25,126 535,462
Gold produced (ounces) 308,931 144,512 145,690 599,133 19,644 618,777
Cash operating costs per ounce ($/ gold ounce produced) 935 839 687 852 1,279 865
For the nine months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Production costs 250,294 117,219 84,278 451,791 50,371 502,162
Inventory sales adjustment 543 6,792 1,232 8,567 8,567
Cash operating costs 250,837 124,011 85,510 460,358 50,371 510,729
Gold produced (ounces) 447,233 147,012 127,487 721,732 50,663 772,395
Cash operating costs per ounce ($/ gold ounce produced) 561 844 671 638 994 661

 

All-in sustaining costs per gold ounce

In June 2013, the World Gold Council, a non-regulatory association of the world’s leading gold mining companies established to promote the use of gold to industry, consumers and investors, provided guidance for the calculation of the measure “all-in sustaining costs per gold ounce”, but as a non-IFRS measure, it does not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The original World Gold Council standard became effective January 1, 2014 with further updates announced on November 16, 2018 which were effective starting January 1, 2019.

Management believes that the all-in sustaining costs per gold ounce measure provides additional insight into the costs of producing gold by capturing all of the expenditures required for the discovery, development and sustaining of gold production and allows the Company to assess its ability to support capital expenditures to sustain future production from the generation of operating cash flows. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it 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. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. The Company has applied the principles of the World Gold Council recommendations and has reported all-in sustaining costs on a sales basis. Other companies may calculate these measures differently.

B2Gold defines all-in sustaining costs per ounce as the sum of cash operating costs, royalties and production taxes, capital expenditures and exploration costs that are sustaining in nature, sustaining lease expenditures, corporate general and administrative costs, share-based payment expenses related to restricted share units/deferred share units/performance share units/restricted phantom units (“RSUs/DSUs/PSUs/RPUs”), community relations expenditures, reclamation liability accretion and realized (gains) losses on fuel derivative contracts, all divided by the total gold ounces sold to arrive at a per ounce figure.

The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended September 30, 2024 (dollars in thousands):

For the three months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Corporate Total Calibre equity investment Grand
Total
$ $ $ $ $ $ $
Production costs 109,857 42,697 39,854 192,408 192,408
Royalties and production taxes 20,511 7,120 5,298 32,929 32,929
Corporate administration 2,736 537 806 9,204 13,283 13,283
Share-based payments – RSUs/DSUs/PSUs/RPUs(1) 28 3,622 3,650 3,650
Community relations 168 109 578 855 855
Reclamation liability accretion 479 321 245 1,045 1,045
Realized losses on derivative contracts 55 32 21 108 108
Sustaining lease expenditures 82 312 234 502 1,130 1,130
Sustaining capital expenditures(2) 45,533 4,644 575 50,752 50,752
Sustaining mine exploration(2) 996 203 485 1,684 1,684
Total all-in sustaining costs 180,445 55,975 48,096 13,328 297,844 297,844
Gold sold (ounces) 78,889 47,960 53,676 180,525 180,525
All-in sustaining cost per ounce ($/ gold ounce sold) 2,287 1,167 896 1,650 1,650

(1) Included as a component of Share-based payments on the Statement of operations. 
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.

The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2024 (dollars in thousands):

For the three months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Operating mine capital expenditures 64,464 5,192 609 70,265 70,265
Fekola underground (20,252 ) (20,252 ) (20,252 )
Road construction 1,321 1,321 1,321
Land acquisitions (528 ) (528 ) (528 )
Other (20 ) (34 ) (54 ) (54 )
Sustaining capital expenditures 45,533 4,644 575 50,752 50,752

The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2024 (dollars in thousands):

For the three months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total  Calibre equity investment Grand
Total
$ $ $ $ $ $
Operating mine exploration 996 1,290 1,888 4,174 4,174
Regional exploration (1,087 ) (1,403 ) (2,490 ) (2,490 )
Sustaining mine exploration 996 203 485 1,684 1,684

The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended September 30, 2023 (dollars in thousands):

For the three months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Corporate Total Calibre equity investment Grand
Total
$ $ $ $ $ $ $
Production costs 93,388 44,056 33,981 171,425 16,791 188,216
Royalties and production taxes 24,333 6,556 3,500 34,389 1,303 35,692
Corporate administration 2,077 623 1,269 8,961 12,930 658 13,588
Share-based payments – RSUs/DSUs/PSUs/RPUs(1) 9 4,325 4,334 4,334
Community relations 642 24 492 1,158 1,158
Reclamation liability accretion 381 290 286 957 957
Realized gains on derivative contracts (1,317 ) (972 ) (232 ) (2,521 ) (2,521 )
Sustaining lease expenditures 72 302 274 487 1,135 1,135
Sustaining capital expenditures(2) 72,454 5,617 13,290 91,361 3,388 94,749
Sustaining mine exploration(2) 774 963 1,737 19 1,756
Total all-in sustaining costs 192,039 57,270 53,823 13,773 316,905 22,159 339,064
Gold sold (ounces) 152,239 50,950 45,700 248,889 17,727 266,616
All-in sustaining cost per ounce ($/ gold ounce sold) 1,261 1,124 1,178 1,273 1,250 1,272

(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.

The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2023 (dollars in thousands):

For the three months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total  Calibre equity investment Grand
Total
$ $ $ $ $ $
Operating mine capital expenditures 83,166 5,896 13,290 102,352 3,388 105,740
Road construction (216 ) (216 ) (216 )
Fekola underground (10,496 ) (10,496 ) (10,496 )
Other (279 ) (279 ) (279 )
Sustaining capital expenditures 72,454 5,617 13,290 91,361 3,388 94,749

The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2023 (dollars in thousands):

For the three months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Operating mine exploration 774 963 1,737 19 1,756
Regional exploration
Sustaining mine exploration 774 963 1,737 19 1,756

The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the nine months ended September 30, 2024 (dollars in thousands):

For the nine months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Corporate Total Calibre equity investment Grand
Total
$ $ $ $ $ $ $
Production costs 276,443 123,070 100,939 500,452 25,126 525,578
Royalties and production taxes 62,561 19,420 14,064 96,045 1,565 97,610
Corporate administration 8,011 1,599 3,692 27,087 40,389 1,463 41,852
Share-based payments – RSUs/DSUs/PSUs/RPUs(1) 95 12,618 12,713 12,713
Community relations 419 139 1,228 1,786 1,786
Reclamation liability accretion 1,372 935 735 3,042 3,042
Realized gains on derivative contracts (365 ) (220 ) (10 ) (595 ) (595 )
Sustaining lease expenditures 249 939 1,024 1,506 3,718 3,718
Sustaining capital expenditures(2) 151,468 19,321 25,078 195,867 2,392 198,259
Sustaining mine exploration(2) 3,136 1,801 1,111 6,048 6,048
Total all-in sustaining costs 503,389 167,004 147,861 41,211 859,465 30,546 890,011
Gold sold (ounces) 318,005 142,260 153,466 613,731 19,644 633,375
All-in sustaining cost per ounce ($/ gold ounce sold) 1,583 1,174 963 1,400 1,555 1,405

(1) Included as a component of Share-based payments on the Statement of operations. 
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.

The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (dollars in thousands):

For the nine months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Operating mine capital expenditures 198,205 20,229 26,128 244,562 2,392 246,954
Fekola underground (46,128 ) (46,128 ) (46,128 )
Road construction (609 ) (609 ) (609 )
Land acquisitions (648 ) (648 ) (648 )
Other (260 ) (1,050 ) (1,310 ) (1,310 )
Sustaining capital expenditures 151,468 19,321 25,078 195,867 2,392 198,259

The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (dollars in thousands):

For the nine months ended September 30, 2024
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total  Calibre equity investment Grand
Total
$ $ $ $ $ $
Operating mine exploration 3,136 3,039 5,191 11,366 11,366
Regional exploration (1,238 ) (4,080 ) (5,318 ) (5,318 )
Sustaining mine exploration 3,136 1,801 1,111 6,048 6,048

The tables below show a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the nine months ended September 30, 2023 (dollars in thousands):

For the nine months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Corporate Total Calibre equity investment Grand
Total
$ $ $ $ $ $ $
Production costs 250,294 117,219 84,278 451,791 50,371 502,162
Royalties and production taxes 74,685 17,254 10,722 102,661 3,635 106,296
Corporate administration 7,441 1,762 4,149 27,818 41,170 1,981 43,151
Share-based payments – RSUs/DSUs/PSUs/RPUs(1) 9 12,482 12,491 12,491
Community relations 2,686 123 1,074 3,883 3,883
Reclamation liability accretion 1,119 859 857 2,835 2,835
Realized gains on derivative contracts (2,776 ) (2,786 ) (929 ) (6,491 ) (6,491 )
Sustaining lease expenditures 1,117 912 1,194 1,401 4,624 4,624
Sustaining capital expenditures(2) 181,262 20,145 46,266 247,673 7,327 255,000
Sustaining mine exploration(2) 1,706 2,741 2,453 6,900 19 6,919
Total all-in sustaining costs 517,543 158,229 150,064 41,701 867,537 63,333 930,870
Gold sold (ounces) 460,139 137,300 139,700 737,139 50,666 787,805
All-in sustaining cost per ounce ($/ gold ounce sold) 1,125 1,152 1,074 1,177 1,250 1,182

(1) Included as a component of Share-based payments on the Statement of operations. 
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below

The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2023 (dollars in thousands):

For the nine months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total  Calibre equity investment Grand
Total
$ $ $ $ $ $
Operating mine capital expenditures 211,112 20,947 46,266 278,325 7,327 285,652
Road construction (5,283 ) (5,283 ) (5,283 )
Fekola underground (24,567 ) (24,567 ) (24,567 )
Other (802 ) (802 ) (802 )
Sustaining capital expenditures 181,262 20,145 46,266 247,673 7,327 255,000

The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2023 (dollars in thousands):

For the nine months ended September 30, 2023
Fekola
Mine
Masbate
Mine
Otjikoto
Mine
Total Calibre equity investment Grand
Total
$ $ $ $ $ $
Operating mine exploration 1,706 2,741 2,453 6,900 19 6,919
Regional exploration
Sustaining mine exploration 1,706 2,741 2,453 6,900 19 6,919

 

Adjusted net income and adjusted earnings per share – basic 

Adjusted net income and adjusted earnings per share – basic are non-IFRS measures that do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines adjusted net income as net income attributable to shareholders of the Company adjusted for non-recurring items and also significant recurring non-cash items. The Company defines adjusted earnings per share – basic as adjusted net income divided by the basic weighted number of common shares outstanding.

Management believes that the presentation of adjusted net income and adjusted earnings per share – basic is appropriate to provide additional information to investors regarding items that we do not expect to continue at the same level in the future or that management does not believe to be a reflection of the Company’s ongoing operating performance. Management further believes that its presentation of these non-IFRS financial measures provide information that is useful to investors because they are important indicators of the strength of our operations and the performance of our core business. Accordingly, it is intended to provide additional information and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.

A reconciliation of net (loss) income to adjusted net income as extracted from the unaudited condensed interim consolidated financial statements is set out in the table below:

Three months ended Nine months ended
September 30, September 30,
2024 2023 2024 2023
$ $ $ $
(000’s) (000’s) (000’s) (000’s)
Net (loss) income attributable to shareholders of the Company for the period: (633,757) (43,070) (618,010) 123,321
Adjustments for non-recurring and significant recurring non-cash items:
Impairment of long-lived assets 661,160 111,597 858,301 116,482
Write-down of mining interests 565 636 16,984
Gain on sale of shares in associate (16,822)
Gain on sale of mining interests (7,453) (56,115)
Regulatory dispute settlement 15,089 15,089
Unrealized losses (gains) on derivative instruments 6,270 (3,146) 6,269 399
Office lease termination costs 1,946
Loan receivable provision 2,085
Change in fair value of gold stream 1,957 (7,600) 21,196 (6,500)
Loss on dilution of associate 8,984
Deferred income tax (recovery) expense (14,109) 6,494 (30,419) 1,789
Adjusted net income attributable to shareholders of the Company for the period 29,157 64,840 189,109 256,506
Basic weighted average number of common shares outstanding (in thousands) 1,310,994 1,297,175 1,307,134 1,208,942
Adjusted net earnings attributable to shareholders of the Company per share–basic ($/share) 0.02 0.05 0.14 0.21

 

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, the Goose Project under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland. B2Gold forecasts total consolidated gold production of between 800,000 and 870,000 ounces in 2024.

Posted November 7, 2024

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