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

2022 Second Quarter Highlights

• Total gold production of 223,623 ounces (including 14,765 ounces of attributable production from Calibre Mining Corp.) slightly above budget by 1% (2,154 ounces), and consolidated gold production of 208,858 ounces from the Company’s three operating mines, in line with budget
• Consolidated gold revenue of $382 million on sales of 205,300 ounces at an average realized gold price of $1,861 per ounce
• Fekola’s mill throughput was a quarterly record of 2.42 million tonnes, 8% above budget and 6% higher than the second quarter of 2021
• Total consolidated cash operating costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $781 per ounce produced and consolidated cash operating costs from the Company’s three operating mines of $766 per ounce produced, both 2% below budget
• Total consolidated all-in sustaining costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $1,111 per ounce sold and consolidated AISC from the Company’s three operating mines of $1,109 per ounce sold, both well below budget by 7%
• Net income attributable to the shareholders of the Company of $38 million ($0.04 per share); adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $45 million ($0.04 per share)
• On July 3, 2022, the Economic Community of West African States removed the economic, financial and diplomatic sanctions imposed on Mali earlier in 2022 following the interim Malian Government’s announcement of a two-year transition to presidential elections and the promulgation of a new electoral law. As a result, Mali’s borders with its neighbours are now open to normal commercial traffic and ordinary supply routes are once again available
• The Company remains in a strong net positive cash position and paid a second quarter dividend of $0.04 per common share (annualized rate of $0.16 per common share), representing one of the highest dividend yields in the gold sector
• The Company recently announced the acquisition of Oklo Resources Limited, which will provide B2Gold with an additional landholding of 1,405 km² covering highly prospective greenstone belts in Mali, including Oklo’s flagship Dandoko project (550 km²), located approximately 25 kilometres from each of the Fekola Mine and the Anaconda area. The transaction is expected to be completed in mid-September 2022
• B2Gold published its sixth annual Responsible Mining Report entitled “Raising the Bar”, which details B2Gold’s global economic contributions and its environmental, social, and governance management practices, together with the Company’s performance against key indicators in 2021

2022 First Half Highlights

• Total gold production of 432,988 ounces (including 27,657 ounces of attributable production from Calibre), above budget by 3% (11,914 ounces), and consolidated gold production of 405,331 ounces from the Company’s three operating mines, above budget by 2% (7,383 ounces)
• Consolidated gold revenue of $748 million on sales of 400,400 ounces at an average realized gold price of $1,867 per ounce
• Total consolidated cash operating costs (including estimated attributable results for Calibre) of $742 per ounce produced, well below budget by 7%, and consolidated cash operating costs from the Company’s three operating mines of $722 per ounce produced, well below budget by 8%
• Total consolidated AISC (including estimated attributable results for Calibre) of $1,074 per ounce sold, significantly below budget by 15%, and consolidated AISC from the Company’s three operating mines of $1,069 per ounce sold, significantly below budget by 16%
• Net income attributable to the shareholders of the Company of $119 million ($0.11 per share); adjusted net income attributable to the shareholders of the Company of $110 million ($0.10 per share)
• For full-year 2022, B2Gold remains well positioned for continued strong operational and financial performance and remains on track to achieve its total consolidated gold production guidance of between 990,000 – 1,050,000 ounces (including 40,000 – 50,000 attributable ounces projected from Calibre). Overall and after factoring in the positive operating results in the first half of 2022, the Company’s total consolidated costs guidance ranges for full-year 2022 remain unchanged with total consolidated cash operating costs forecast to be at the upper end of the Company’s guidance range of between $620 and $660 per ounce and total consolidated AISC forecast to be within the Company’s guidance range of between $1,010 and $1,050 per ounce

Gramalote Project Update

Based on the preliminary results of the optimized feasibility study for the Gramalote gold project in Colombia, a joint venture between B2Gold and AngloGold Ashanti Limited, both partners have determined that the project does not currently meet their investment thresholds for development of the project at this time. Therefore, in conjunction with finalizing the Gramalote Feasibility Study by the end of the third quarter of 2022, B2Gold and AngloGold have jointly made the decision to review the alternatives for the Gramalote Project over the coming months.

Second Quarter and First Half of 2022 Operational Results

Total gold production in the second quarter of 2022 was 223,623 ounces (including 14,765 ounces of attributable production from Calibre), slightly above budget by 1% (2,154 ounces), and consolidated gold production from the Company’s three operating mines was 208,858 ounces, in line with budget (see “Operations” section below). Total consolidated gold production in the second quarter of 2022 was higher by 6% (12,011 ounces) compared to the second quarter of 2021, mainly due to record quarterly mill throughput achieved at the Fekola Mine in the second quarter of 2022. In addition, processed grade was higher at the Otjikoto Mine in the second quarter of 2022, due to significant waste stripping operations at both the Wolfshag and Otjikoto pits in the first half of 2021. Consolidated gold production from the Company’s three operating mines is expected to be significantly weighted to the second half of 2022 primarily due to the timing of higher-grade ore mining.

For the second quarter of 2022, total consolidated cash operating costs (including estimated attributable results for Calibre) were $781 per ounce produced ($786 per ounce sold), slightly below budget by $14 per ounce produced (2%), and consolidated cash operating costs from the Company’s three operating mines were $766 per ounce produced ($771 per ounce sold), slightly below budget by $17 per ounce produced (2%). Cash operating costs per ounce produced for the second quarter of 2022 were in line with budget as higher than budgeted realized fuel prices were offset by lower than budgeted mined tonnage. As expected, total consolidated cash operating costs were higher in the second quarter of 2022 compared to $664 per ounce produced ($675 per ounce sold) in the second quarter of 2021, and consolidated cash operating costs were higher in the second quarter of 2022 compared to $649 per ounce produced ($661 per ounce sold) in the second quarter of 2021, mainly as a result of higher costs for fuel and other consumables.

For the second quarter of 2022, total consolidated AISC (including estimated attributable results for Calibre) were $1,111 per ounce sold (Q2 2021 – $1,016 per ounce sold), well below budget by $78 per ounce sold (7%), and consolidated AISC from the Company’s three operating mines were $1,109 per ounce sold (Q2 2021 – $1,011 per ounce sold), well below budget by $82 per ounce (7%). These favourable budget variances were attributable to lower than budgeted cash operating costs, higher than budgeted realized gains on the settlement of fuel derivatives and lower than budgeted sustaining capital expenditures, partially offset by lower than budgeted gold ounces sold.

For the first half of 2022, total gold production was 432,988 ounces (including 27,657 ounces of attributable production from Calibre), above budget by 3% (11,914 ounces), and comparable with the first half of 2021. Consolidated gold production from the Company’s three operating mines was 405,331 ounces in the first half of 2022, above budget by 2% (7,383 ounces) and 1% (2,308 ounces) higher compared to the second half of 2021.

For the first half of 2022, total consolidated cash operating costs (including estimated attributable results for Calibre) were $742 per ounce produced ($723 per ounce sold), well below budget by $52 per ounce produced (7%) and consolidated cash operating costs from the Company’s three operating mines were $722 per ounce produced ($702 per ounce sold), well below budget by $59 per ounce produced (8%). These favourable budget variances were attributable to higher than budgeted production and lower than budgeted mined tonnage partially offset by higher than budgeted realized fuel prices. As expected, total consolidated cash operating costs were higher in the first half of 2022 compared to $636 per ounce produced ($628 per ounce sold) in the first half of 2021, and consolidated cash operating costs were higher in the first half of 2022 compared to $615 per ounce produced ($606 per ounce sold) in the first half of 2021, mainly as a result of higher costs for fuel and other consumables.

For the first half of 2022, total consolidated AISC (including estimated attributable results for Calibre) were $1,074 per ounce sold (first half 2021 – $974 per ounce sold), significantly below budget by $193 per ounce sold (15%), and consolidated AISC from the Company’s three operating mines were $1,069 per ounce sold (first half 2021 – $965 per ounce sold), significantly below budget by $205 per ounce sold (16%). These favourable budget variances were attributable to lower than budgeted cash operating costs, higher than budgeted realized gains on the settlement of fuel derivatives and lower sustaining capital expenditures. The lower sustaining capital expenditures are mainly a result of timing of expenditures and are expected to be incurred later in 2022.

For full-year 2022, B2Gold remains well positioned for continued strong operational and financial performance and remains on track to achieve its total gold production guidance of between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre). Due to the timing of high-grade ore mining, consolidated gold production from the Company’s three operating mines is expected to increase significantly in the second half of 2022 to between 560,000 and 590,000 ounces.

Consolidated cash operating costs for the first half of 2022 were below the first half guidance range of between $760 and $800 per ounce. Based mainly on the weighting of production and timing of stripping, consolidated cash operating costs are still expected to significantly improve compared to the first half of 2022. After factoring in current fuel price increases at all sites, consolidated cash operating costs for the second half of 2022 are now expected to be between $550 and $590 per ounce (original second half guidance was between $490 to $530 per ounce). In addition, consolidated AISC for the first half of 2022 were significantly below the guidance range of between $1,250 and $1,290 per ounce. After factoring in current fuel price increases at all sites and the timing of remaining capital expenditures, consolidated AISC for the second half of 2022 are now expected to be between $960 and $1,000 per ounce (original second half guidance range was between $820 to $860 per ounce).

Overall and after factoring in the positive operating results in the first half of 2022, the Company’s total consolidated costs guidance ranges for full-year 2022 remain unchanged. For full-year 2022, total consolidated cash operating costs are forecast to be at the upper end of the Company’s guidance range of between $620 and $660 per ounce and total consolidated AISC are forecast to be within the Company’s original guidance range of between $1,010 and $1,050 per ounce.

As previously disclosed, the Company’s operations continue to be impacted by global cost inflation with fuel costs reflecting the most significant increases. However, despite these ongoing cost pressures, the draw downs of existing inventories, proactive management and the revised sequencing of some capital costs means that consolidated cash operating costs and AISC in the first half of 2022 were lower than budget and for full-year 2022, the Company expects to be at the upper end of its original total consolidated cash operating cost guidance range and within its original total consolidated AISC guidance range. The Company will continue to closely monitor the levels of cost inflation over the remainder of 2022. B2Gold’s projects and operations continue to target long-term cash flow and value at industry leading costs per ounce of gold produced.

Second Quarter and First Half of 2022 Financial Results

For the second quarter of 2022, consolidated gold revenue was $382 million on sales of 205,300 ounces at an average realized gold price of $1,861 per ounce, compared to $363 million on sales of 200,071 ounces at an average realized gold price of $1,814 per ounce in the second quarter of 2021. The increase in gold revenue of 5% ($19 million) was attributable to a 2.5% increase in the average realized gold price and a 2.5% increase in gold ounces sold.

For the second quarter of 2022, cash flow provided by operating activities was $125 million compared to cash flow used by operating activities of $8 million in the second quarter of 2021. The significant increase of $133 million was mainly due to lower working capital outflows in the second quarter of 2022 (most significantly for current income taxes with cash taxes paid in the second quarter of 2022 being $138 million lower than the second quarter of 2021), higher gold revenues of $19 million, higher realized gains on fuel contracts of $9 million, partially offset by higher production costs of $26 million. Cash income and withholding tax payments in the second quarter of 2022 totaled $39 million (Q2 2021 – $177 million). In the second quarter of 2021, income tax payments were significantly higher as a result of tax installments to settle the final 2020 tax liability of $138 million (including payment of the final 2020 priority dividend of $47 million due to the State of Mali) after a record earnings year in 2020.

Based on current assumptions, including a realized gold price of $1,700 per ounce in the second half of 2022, the Company now expects to generate consolidated cashflows from operating activities of approximately $575 million for full-year 2022 (previous guidance at Q1 2022 was $625 million assuming an $1,800 per ounce gold price for full-year 2022), expected to be significantly weighted to the second half of 2022. The benefit of higher gold prices realized in the first half of 2022 is expected to be offset by the impacts of lower gold prices in the second half of 2022 as well as cost inflation and delays in the recovery of value-added tax receivables. In addition, based on current assumptions, the Company is forecasting to make total cash income and withholding tax payments (including priority dividend payments) for full-year 2022 of approximately $280 million.

Net income for the second quarter of 2022 was $41 million compared to $74 million for the second quarter of 2021. Net income attributable to the shareholders of the Company was $38 million ($0.04 per share) compared to $68 million ($0.07 per share) for the second quarter of 2021. Tax charges in the second quarter of 2022 included $22 million in withholding tax for a higher than anticipated intercompany dividend declared at the Fekola Mine and a $5 million deferred income tax charge driven by changes in foreign exchange rates. Adjusted net income attributable to the shareholders of the Company (see “Non-IFRS Measures”) was $45 million ($0.04 per share) compared to adjusted net income of $52 million ($0.05 per share) for the second quarter of 2021.

For the first half of 2022, consolidated gold revenue was $748 million on sales of 400,400 ounces at an average price of $1,867 per ounce compared to $725 million on sales of 402,401 ounces at an average price of $1,802 per ounce in the first half of 2021. The increase in gold revenue of 3% ($23 million) was attributable to a 4% increase in the average realized gold price, partially offset by a 1% decrease in gold ounces sold.

For the first half of 2022, cash flow provided by operating activities was $232 million compared to $138 million in the first half of 2021. The significant increase of $95 million was mainly due to lower working capital outflows in the first half of 2022 (most significantly for current income taxes with cash taxes paid in the first half of 2022 being $100 million lower than the first half of 2021), higher gold revenues of $22 million, higher realized gains on fuel contracts of $13 million, partially offset by higher production costs of $37 million. Cash income and withholding tax payments in the first half of 2022 totaled $98 million (first half of 2021 – $198 million), including approximately $27 million related to 2021 outstanding tax liability obligations. Based on current assumptions, including an average gold price of $1,700 per ounce for the balance of 2022, the Company is forecasting to make total cash income and withholding tax payments in 2022 of approximately $280 million.

For the first half of 2022, net income was $131 million compared to $173 million for the first half of 2021. Net income attributable to the shareholders of the Company was $119 million ($0.11 per share) compared to $160 million ($0.15 per share) for the first half of 2021. Tax charges in the second half of 2022 included $24 million in withholding tax (on intercompany dividends/management fees) and a $9 million deferred income tax charge driven by changes in foreign exchange rates. Adjusted net income attributable to the shareholders of the Company was $110 million ($0.10 per share) compared to adjusted net income of $150 million ($0.14 per share) for the first half of 2021.

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At June 30, 2022, the Company had cash and cash equivalents of $587 million (December 31, 2021 – $673 million) and working capital (defined as current assets less assets classified as held for sale and current liabilities) of $775 million (December 31, 2021 – $802 million). In addition, the Company’s $600 million Revolving Credit Facility remains fully undrawn and available.

On June 8, 2022, B2Gold’s Board of Directors declared a cash dividend for the second quarter of 2022 of $0.04 per common share (or an expected $0.16 per share on an annualized basis), paid on June 29, 2022 to shareholders of record as of June 20, 2022.

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

Operations

Overall and after factoring in the positive operating results in the first half of 2022, the Company’s total consolidated gold production and cost guidance ranges for full-year 2022 remain unchanged. Individual mine results have updated guidance as detailed in tables below.

Mine-by-mine gold production in the second quarter and first half of 2022 (including the Company’s estimated 25% attributable share of Calibre’s production) was as follows:

Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced basis) in the second quarter and first half of 2022 were as follows (presented on a 100% basis):

Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the second quarter and first half of 2022 were as follows (presented on a 100% basis):

Mine-by-mine AISC (on a per ounce of gold sold basis) in the second quarter and first half of 2022 were as follows (presented on a 100% basis):

Fekola Gold Mine – Mali

The Fekola Mine in Mali continued its strong operational performance through the second quarter of 2022, producing 123,066 ounces of gold, in line with budget. In the second quarter of 2022, Fekola’s processing facilities achieved record quarterly throughput of 2.42 million tonnes, 8% above budget and 6% higher than the second quarter of 2021, due to favourable ore characteristics and continuous optimization of the grinding circuit. The higher than budgeted mill throughput in the second quarter of 2022 was mainly offset by lower than budgeted mill feed grade (6%), as Fekola’s low-grade stockpiles were used to provide additional unbudgeted mill feed required as a result of the higher than budgeted processed tonnes. Gold production in the second quarter of 2022 was higher by 8% (9,455 ounces) compared to the second quarter of 2021, mainly due to higher mill throughput. Fekola’s gold production is expected to be significantly weighted to the second half of 2022 when mining reaches the higher-grade portion of Phase 6 of the Fekola Pit.

For the second quarter of 2022, mill feed grade was 1.71 grams per tonne (“g/t”) compared to budget of 1.81 g/t and 1.65 g/t in the second quarter of 2021; mill throughput was 2.42 million tonnes compared to budget of 2.24 million tonnes and 2.29 million tonnes in the second quarter of 2021; and gold recovery averaged 92.4% compared to budget of 94.4% and 93.2% in the second quarter of 2021. In the second quarter of 2022, as noted above, the higher than budgeted mill throughput (8%) was mainly offset by lower than budgeted mill feed grade (6%), as Fekola’s low-grade stockpiles were used to provide additional unbudgeted mill feed required as a result of the higher than budgeted processed tonnes. In addition, in the second quarter of 2022, low availability of lime led to reduced gold recoveries, however, all reagents are now available without constraint and operations continue normally.

For the second quarter of 2022, Fekola’s cash operating costs were $639 per ounce produced ($711 per ounce sold), well below budget by $64 per ounce produced (9%), mainly as a result of lower than budgeted total mining, processing and site general costs, and $22 per ounce produced (4%) higher compared to the second quarter of 2021, mainly due to higher fuel and consumables costs and increased mining costs from operating deeper in the Fekola Pit. In the second quarter of 2022, Fekola’s total mining costs were below budget due to lower overall tonnes mined compared to budget, partially offset by higher than budgeted fuel prices. Mined tonnes were lower than budgeted due to a temporary change in mine sequencing resulting from the availability of supplies due to the ECOWAS sanctions in the second quarter of 2022, all of which have now been removed as of July 3, 2022.

Fekola’s AISC for the second quarter of 2022 were $949 per ounce sold (Q2 2021 – $854 per ounce sold), well below budget by $76 per ounce sold (7%), mainly due to lower than budgeted sustaining capital expenditures and higher than budgeted realized gains on the settlement of fuel derivatives.

For the first half of 2022, the Fekola Mine produced 224,714 ounces of gold, slightly above budget (901 ounces) and, as expected, lower by 6% (13,985 ounces) compared to the first half of 2021 mainly due to planned significant waste stripping and lower mined ore tonnage as Phase 6 of the Fekola Pit was developed in the first half of 2022.

For the first half of 2022, Fekola’s cash operating costs were $632 per ounce produced ($652 per gold ounce sold), well below budget by $106 per ounce produced (14%), mainly due to lower overall tonnes mined compared to budget (as outlined above) and lower than budgeted fuel prices realized in the first quarter of 2022 (fuel prices are set in advance by the State and therefore subject to timing delays between market fuel price increases and those experienced at the Fekola Mine). Fekola’s fuel prices were significantly lower than budgeted in the first quarter of 2022 but following the reset of State fuel pricing in the second quarter of 2022, fuel prices were higher than budget in the second quarter of 2022. In total, overall, for the first half of 2022, Fekola’s fuel prices were lower than budgeted. As expected, compared to the first half of 2021, Fekola’s cash operating costs per ounce produced were higher by $75 per ounce produced (13%), mainly due to the higher fuel and consumables costs and increased mining costs from operating deeper in the Fekola Pit.

Fekola’s AISC for the first half of 2022 were $967 per ounce sold (first half 2021 – $811 per ounce sold), well below budget by $195 per ounce sold (17%), mainly attributable to lower than budgeted cash operating costs (as outlined above) and lower than budgeted sustaining capital expenditures (relating to pre-stripping costs and site capital projects), together with higher than budgeted realized gains on the settlement of fuel derivatives. The lower than budgeted sustaining capital expenditures are mainly due to timing of expenditures and expected to be incurred later in 2022.

Capital expenditures for the second quarter of 2022 totaled $20 million, primarily consisting of $10 million for mobile equipment purchases and rebuilds and $6 million for the tailings storage facility expansion and studies. Capital expenditures for the first half of 2022 totaled $48 million, primarily consisting of $19 million for mobile equipment purchases and rebuilds, $14 million for pre-stripping and $10 million for the tailings storage facility expansion and studies.

The Company welcomes the recent announcement by ECOWAS of the removal on July 3, 2022 of the economic, financial and diplomatic sanctions imposed on Mali in January 2022. The sanctions were removed by ECOWAS after the interim Malian Government announced a two-year transition to presidential elections and promulgated a new electoral law. Mali’s borders with its neighbouring countries have now re-opened to normal commercial traffic and ordinary supply routes are available. Throughout the period of the sanctions, the Fekola Mine continued to operate normally and meet its production targets while maintaining a good working relationship with the interim Government.

The low-cost Fekola Mine remains on track to produce between 570,000 and 600,000 ounces of gold in 2022. Fekola’s gold production is expected to significantly increase from the first half of 2022 to between 350,000 and 370,000 ounces during the second half of 2022. Fekola’s cash operating costs for the first half of 2022 were below its first half guidance range of between $720 and $760 per ounce and, due to the weighting of Fekola production, are expected to still significantly decrease in the second half of 2022. For the second half of 2022, after factoring in current fuel price increases at Fekola, Fekola’s cash operating costs are now expected to be between $430 to $470 per ounce (original second half guidance was between $380 to $420 per ounce). Fekola’s AISC for the first half of 2022 were below its first half guidance range of between $1,140 and $1,180 per ounce and are expected to significantly decrease in the second half of 2022. For the second half of 2022, after factoring in current fuel price increases at Fekola and the expected timing of remaining sustaining capital expenditures, Fekola’s AISC are now expected to be between $790 and $830 per ounce (original second half guidance was between $660 and $700 per ounce).

Overall and after factoring in the positive operating results in the first half of 2022, Fekola’s costs guidance ranges for full-year 2022 remain unchanged. For full-year 2022, Fekola’s cash operating costs are expected to be within its guidance range of between $510 and $550 per ounce and Fekola’s AISC are expected to be at the upper end of its guidance range of between $840 and $880 per ounce.

Masbate Gold Mine – The Philippines

The Masbate Mine in the Philippines continued its strong operational performance with second quarter of 2022 gold production of 54,375 ounces, above budget by 2% (995 ounces), as processed tonnage (6% above budget) more than offset lower than budgeted processed grade (4%). Gold production in the second quarter of 2022 was lower by 4% (2,503 ounces) compared to the second quarter of 2021 due to higher grade and recoveries in the second quarter of 2021.

For the second quarter of 2022, mill feed grade was 1.09 g/t compared to budget of 1.13 g/t and 1.17 g/t in the second quarter of 2021; mill throughput was 1.99 million tonnes compared to budget of 1.88 million tonnes and 1.86 million tonnes in the second quarter of 2021; and gold recovery averaged 78.4% compared to budget of 78.2% and 81.5% in the second quarter of 2021. In the second quarter of 2022, higher than budgeted mill throughput (6%) resulted from the continuous optimization of the grinding circuit whereas the lower than budgeted processed grade (4%) resulted from lower than budgeted mined grades at the bottom of the Montana Pit, where mining was completed at the end of July 2022. Processed grade was higher in the second quarter of 2021 (compared to the second quarter of 2022) due to mining of higher-grade zones of the Main Vein and Montana pits in the second quarter of 2021. Gold recoveries for processed ore were also higher in the second quarter of 2021 (compared to the second quarter of 2022) as mill recoveries outperformed Masbate’s modelled mine plan recoveries in the second quarter of 2021.

For the second quarter of 2022, Masbate’s cash operating costs were $840 per ounce produced ($764 per ounce sold), above budget by $108 per ounce produced (15%), mainly due to higher than budgeted diesel and heavy fuel oil (“HFO”) costs, and higher compared to $616 per ounce produced ($673 per ounce sold) in the second quarter of 2021, mainly due to higher fuel and consumable costs. Masbate’s cash operating costs per ounce sold for the second quarter of 2022 were higher than budget by $32 per ounce (4%), but the impact of higher second quarter of 2022 fuel costs was partially offset by lower cost inventory produced in the first quarter of 2022 being sold in the second quarter of 2022.

Masbate’s AISC for the second quarter of 2022 were $1,082 per ounce sold (Q2 2021 – $899 per ounce sold), in line with budget as higher than budgeted realized gains on the settlement of fuel derivatives offset higher than budgeted cash operating costs (as described above) and higher than budgeted capital expenditures due to timing differences.

For the first half of 2022, Masbate Mine’s gold production of 114,139 ounces was well above budget by 6% (6,706 ounces) as a result of higher than budgeted mill throughput, and comparable to the first half of 2021.

For the first half of 2022, Masbate’s cash operating costs were $772 per ounce produced ($773 per ounce sold), slightly above budget by $25 per ounce produced (3%), as higher than budgeted diesel and HFO costs were largely offset by higher than budgeted gold production. As expected, Masbate’s cash operating costs were higher in the first half of 2022 compared to $612 per ounce produced ($627 per ounce sold) in the first half of 2021, mainly as a result of higher fuel and consumable costs.

Masbate’s AISC for the first half of 2022 were $1,054 per ounce sold (first half of 2021 – $860 per ounce sold), below budget by $90 per ounce sold (8%), mainly attributable to lower than budgeted capital expenditures and higher than budgeted realized gains on the settlement of fuel derivatives which were partially offset by slightly higher than budgeted cash operating costs and lower than budgeted gold ounces sold. The lower than budgeted sustaining capital expenditures were primarily a result of timing of expenditures and expected to be incurred later in 2022.

Capital expenditures in the second quarter of 2022 totaled $14 million, primarily consisting of $9 million for mobile equipment purchases and rebuilds, $2 million for an additional powerhouse generator and $2 million for tailings storage facility projects. Capital expenditures in the first half of 2022 totaled $20 million, primarily consisting of $10 million for mobile equipment purchases and rebuilds, $3 million for an additional powerhouse generator and $2 million for tailings storage facility projects.

In light of the Masbate Mine’s positive production performance to date in 2022, it is now expected to produce between 215,000 and 225,000 ounces of gold in 2022 (original guidance range was between 205,000 and 215,000 ounces of gold). Masbate’s gold production is scheduled to be relatively consistent throughout 2022. Masbate’s cash operating costs for the first half of 2022 were above its first half guidance range of between $730 and $770 per ounce. After factoring in current fuel price increases at Masbate, Masbate’s cash operating costs for the second half of 2022 are now expected to be between $890 to $930 per ounce (original second half guidance range was between $760 to $800 per ounce). Masbate’s AISC for the first half of 2022 were below its first half guidance range of between $1,120 and $1,160 per ounce. After factoring in current fuel price increases at Masbate and the expected timing of remaining sustaining capital expenditures, Masbate’s AISC are now expected to be between $1,140 and $1,180 per ounce for the second half of 2022 (original second half guidance range was between $1,020 and $1,060 per ounce).

Overall, for full-year 2022, with the increases being experienced in fuel prices, Masbate’s cash operating costs are now expected to be in the range of between $820 and $860 per ounce (original guidance range was between $740 and $780 per ounce). Masbate’s AISC annual guidance range remains unchanged, with Masbate’s AISC expected to be at the upper end of its guidance range of between $1,070 and $1,110 per ounce for full-year 2022.

Otjikoto Gold Mine – Namibia

The Otjikoto Mine in Namibia produced 31,417 ounces of gold in the second quarter of 2022, 2,027 ounces (6%) below budget. The lower than budgeted gold production in the second quarter of 2022 was due to a slower than planned ramp-up in development of the Wolfshag Underground mine, resulting in lower than budgeted mined grade. The Company recently appointed a new underground mining contractor and development rates in the Wolfshag Underground mine have recovered, with development ore now expected in the third quarter of 2022 and stope ore production commencing in the fourth quarter of 2022. As a result of this change in ore production timing, the 2022 annual production guidance range for Otjikoto has been revised to between 165,000 and 175,000 ounces of gold. As expected, gold production in the second quarter of 2022 was higher by 17% (4,526 ounces) compared to the second quarter of 2021 due to significant waste stripping operations at both the Wolfshag and Otjikoto pits in the first half of 2021.

For the second quarter of 2022, mill feed grade was 1.17 g/t compared to budget of 1.25 g/t and 0.99 g/t in the second quarter of 2021; mill throughput was 0.85 million tonnes compared to budget of 0.85 million tonnes and 0.86 million tonnes in the second quarter of 2021; and gold recovery averaged 98.4% compared to budget of 98.0% and 97.8% in the second quarter of 2021. As noted above, processed grade in the second quarter of 2022 was lower than budgeted due to delays in the development of the Wolfshag Underground mine and higher compared to the second quarter of 2021 due to significant waste stripping at both the Wolfshag and Otjikoto pits in the first half of 2021.

For the second quarter of 2022, Otjikoto’s cash operating costs were $1,136 per ounce produced ($1,018 per ounce sold), slightly below budget by $24 per ounce produced (2%), mainly due to the benefits of a weaker than budgeted Namibian dollar and delay in incurring Wolfshag Underground mining operating costs, partially offset by higher than budgeted fuel prices. Otjikoto’s cash operating costs in the second quarter of 2022 were higher compared to $854 per ounce produced ($885 per ounce sold) in the second quarter of 2021, mainly as a result of higher fuel costs in 2022.

Otjikoto’s AISC for the second quarter of 2022 were $1,403 per ounce sold (Q2 2021 – $1,613 per ounce sold), significantly below budget by $214 per ounce sold (13%), mainly due to slightly lower than budgeted cash operating costs, lower than budgeted sustaining capital expenditures and higher than budgeted realized gains on the settlement of fuel derivatives, partially offset by lower than budgeted gold ounces sold. The lower sustaining capital expenditures are mainly a result of timing of expenditures and expected to be incurred later in 2022.

For the first half of 2022, the Otjikoto Mine produced 66,478 ounces of gold, in line with budget and 33% (16,545 ounces) higher than the first half of 2021.

For the first half of 2022, Otjikoto’s cash operating costs were $943 per ounce produced ($763 per gold ounce sold), below budget by $40 per ounce produced (4%) (for the reasons described above) and higher by $50 per ounce produced (6%) compared to the first half of 2021, mainly due to higher fuel costs in the first half of 2022. Otjikoto’s cash operating costs per ounce sold for the first half of 2022 were significantly below budget by $220 per ounce sold (22%), mainly due to the sale of lower cost inventory produced in 2021.

Otjikoto’s AISC for the first half of 2022 were $1,090 per ounce sold (first half 2021 – $1,542 per ounce sold), significantly below budget by $386 per ounce sold (26%) for the reasons described above.

Capital expenditures for the second quarter of 2022 totaled $23 million, primarily consisting of $13 million for Wolfshag Underground mine development, $5 million for pre-stripping in the Otjikoto Pit, $3 million for mobile equipment purchases and rebuilds and $2 million for the national power grid connection line. Capital expenditures for the first half of 2022 totaled $39 million, primarily consisting of $19 million for Wolfshag Underground mine development, $11 million for pre-stripping in the Otjikoto Pit, $5 million for mobile equipment purchases and rebuilds and $4 million for the national power grid connection line.

The Otjikoto Mine is now expected to produce between 165,000 and 175,000 ounces of gold in 2022 (original guidance range of 175,000 to 185,000 ounces). For the second half of 2022, Otjikoto’s gold production is expected to increase significantly to between 100,000 and 105,000 ounces. Otjikoto’s cash operating costs for the first half of 2022 were below its first half guidance range of between $960 and $1,000 per ounce and, due to the weighting of Otjikoto production, are still expected to significantly decrease in the second half of 2022. After factoring in current fuel price increases at Otjikoto, Otjikoto’s cash operating costs for the second half of 2022 are now expected to be between $640 to $680 per ounce (original second half guidance range was between $620 to $660 per ounce). Otjikoto’s AISC for the first half of 2022 were significantly below its first half guidance range of between $1,460 and $1,500 per ounce. After factoring in current fuel price increases at Otjikoto and the expected timing of remaining sustaining capital expenditures, Otjikoto’s AISC for the second half of 2022 are now expected to be between $1,110 and $1,150 per ounce (original second half guidance range was between $930 and $970 per ounce).

Overall and after factoring in the positive operating results in the first half of 2022, Otjikoto’s costs guidance ranges for full-year 2022 remain unchanged. For full-year 2022, Otjikoto’s cash operating costs are expected to be at the upper end of its annual guidance range of between $740 and $780 per ounce and Otjikoto’s AISC are expected to be within its guidance range of between $1,120 and $1,160 per ounce.

Development

Anaconda Area (comprised of the Menankoto and Bantako North permits) and Bakolobi – Mali

Fekola North and Anaconda Exploration 

On March 23, 2022, the Company announced additional positive exploration drilling results from Fekola North and the Anaconda area which is comprised of the Menankoto permit and the Bantako North permit located approximately 20 kilometres from the Fekola Mine. High grade results from the Fekola North target area such as drill hole FKD_641, which returned 4.28 g/t gold over 19.15 metres, from 529.0 metres, provides strong support for ongoing evaluation of underground development of the deepest portions of the Fekola Mine deposit. In the Anaconda area, drill hole MSD_212, which returned 8.09 g/t gold over 15.8 metres, from 431.1 metres, confirms the presence of high grade sulphide, approximately 100 metres below the limits of the current Mineral Resource pit boundary. The good grade and width combinations at the Anaconda area continue to provide a strong indication of the potential for Fekola-style plunging bodies of sulphide mineralization, which remain open at depth. Ongoing drilling by the Company on the Anaconda area to infill and extend the saprolite Mineral Resource area, and to follow up on the sulphide mineralization, including the Mamba and Adder zones, as well as several other targets below the saprolite mineralization, continues to generate positive drill results in both saprolite and sulphide domains and demonstrates strong potential to further increase the updated Anaconda area Mineral Resource estimate (see below).

On March 23, 2022, the Company announced an updated and significantly increased Mineral Resource estimate for the Anaconda area. The updated and significantly increased Anaconda Mineral Resource estimate (as at January 11, 2022) constrained within a conceptual pit shell at a gold price of $1,800 per ounce included an initial Indicated Mineral Resource estimate of 32,400,000 tonnes at 1.08 g/t gold for a total 1,130,000 ounces of gold, and Inferred Mineral Resource estimate of 63,700,000 tonnes at 1.12 g/t gold for 2,280,000 ounces of gold. The Mineral Resource estimate included first time reporting of 1,130,000 ounces of Indicated Mineral Resources and an increase of 1,510,000 ounces (196% increase) of Inferred Mineral Resources since the initial Inferred Mineral Resource estimate in 2017 (21,590,000 tonnes at 1.11 g/t gold, for 767,000 ounces).

In April 2022, the Company acquired the Bakolobi permit in Mali from a local Malian company. The Bakolobi permit is located between the Menankoto permit, to the North, and the Fekola Mine’s Medinandi permit, wrapping around the latter to its south-west end, covering an area of 100 km². The acquisition of the Bakolobi permit results in the ownership by the Company of four contiguous exploration and/or exploitation permits covering 237 km², extending from the northwestern end of the Bantako North permit and the North-East of the Menankoto permit, southwest of the Medinandi permit (Fekola Mine and Cardinal Zone) to the southeast end of the Bakolobi permit.

B2Gold’s acquisition of Oklo and its flagship Dandoko project, which is expected to be completed in mid-September 2022, will extend the footprint of B2Gold’s exploration in Mali to over 1,700 km² and add the Dandoko project’s JORC 2012 compliant Measured and Indicated Mineral Resource estimate of 8.70 million tonnes at 1.88 g/t for 528,000 ounces of gold and an Inferred Mineral Resource estimate of 2.63 million tonnes at 1.67 g/t for 141,000 ounces of gold, to B2Gold’s rapidly growing Mineral Resource inventory in the region. The Company believes there is strong potential to extend the mineralization at the Dandoko project.

Fekola Complex Regional Development 

In 2022, the Company budgeted $33 million for development of infrastructure for Phase I saprolite mining at the Anaconda area, including road construction. Based on the updated Mineral Resource estimate and B2Gold’s preliminary planning, the Company has demonstrated that a pit situated on the Anaconda area could provide selective higher grade saprolite material (average grade of 2.2 g/t) to be trucked to and fed into the Fekola mill at a rate of 1.5 million tonnes per annum. With the anticipated closing of the acquisition of Oklo and its flagship Dandoko project in mid-September 2022, the Company is currently evaluating its options for the timing and sourcing of material on a regional basis from all deposits within the Fekola Complex area (including Fekola, Cardinal, Dandoko, Bakalobi and the Anaconda Area). This updated evaluation is expected to be completed by the end of 2022, with first saprolite production now anticipated in the second quarter of 2023. Subject to obtaining all necessary permits and completion of a final development plan, the Company intends to commence its planned Phase 1 infrastructure development in the fourth quarter of 2022. Trucking of selective higher grade saprolite material to the Fekola mill would 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 per year to the Fekola mill’s annual gold production.

Based on this updated Mineral Resource estimate and the 2022 exploration drilling results, the Company has commenced a Phase II scoping study to review the project economics of constructing a stand-alone mill near the Anaconda area. Subject to receipt of a positive Phase II scoping study, the Company expects that the saprolite material would continue to be trucked to and fed into the Fekola mill during the construction period for the Anaconda area stand-alone mill.

Gramalote Project (B2Gold – 50%/AngloGold – 50%) – Colombia

Based on the preliminary results of the optimized feasibility study for the Gramalote gold project in Colombia (the “Gramalote Project”), a joint venture between B2Gold and AngloGold, both partners have determined that the project does not currently meet their investment thresholds for development of the project at this time. Therefore, in conjunction with finalizing the Gramalote Feasibility Study by the end of the third quarter of 2022, B2Gold and AngloGold have jointly made the decision to review the alternatives for the Gramalote Project over the coming months.

Following a review of the Gramalote Project’s optimized feasibility study work completed to date, which included revisiting the original Gramalote Project design parameters in the existing mining permit (as applied in the Gramalote Preliminary Economic Assessment in January 2020 and historical AngloGold studies) and further optimizing project design, together with a review of the additional drilling of Indicated and Inferred portions of the Mineral Resource area and updating capital and operating costs to reflect both optimized project development and expected capital and operating costs, the outcome was that the Gramalote Project does not meet the internal investment indicators that would support further project development at this time.

While the general characteristics of the Gramalote Project remain constant and the project benefits from a low strip ratio, low processing costs, and a favourable relationship with the local and regional stakeholders, key changes to the project economics were identified during the optimized feasibility study work which combine to preclude development of the project by the joint venture. On a global scale, cost inflation has resulted in estimated capital cost increases of approximately 12%, coupled with uncertain long-term operating costs. More detailed resource modelling indicates that the grade-tonnage characteristics of the ore body resulted in lower than expected processing head grade and annual ounce production, specifically within the first five years of production including the payback period. These changes result in lower than expected project net present value and internal rate of return, below the investment threshold of each joint venture partner.

The Gramalote Project continues to benefit from strong federal and local government support as well as continuing support from local communities. B2Gold and AngloGold intend to jointly complete a comprehensive review of the alternatives relating to the Gramalote Project and consider the interests of all stakeholders in making a decision on the future of the project.

Summary and Outlook

The Company is pleased with its second quarter of 2022 results, particularly given the challenges mining companies are facing around the world. Based on a strong operational and financial first half of 2022, the Company is on track to meet its annual gold production guidance for 2022 of between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre). Consolidated cash operating costs and AISC were below budget for the first half of 2022. Cash operating costs and AISC guidance for each operation for the second half of 2022 have been revised to reflect the current increases in fuel pricing and expected timing of remaining sustaining capital expenditures for 2022.  However, after factoring in the positive cost results in the first half of 2022, total consolidated costs guidance ranges for full-year 2022 remain unchanged. Total consolidated cash operating costs for full year 2022 are expected to be at the upper end of the Company’s original guidance range of between $620 and $660 per ounce and within its total consolidated AISC guidance range of between $1,010 and $1,050 per ounce.

Following the receipt of the Menankoto permit in Mali, the Company is expanding the scope of its exploration activities on the Anaconda area (comprised of the Menankoto permit and the Bantako North permit) to build on the successful exploration programs already completed to date. The Company will continue to follow up on the sulphide mineralization at the Mamba, Adder and several other targets below the saprolite mineralization in 2022. On April 21, 2022 the Company completed the acquisition of the Bakolobi permit in Mali from a local Malian company. The Bakolobi permit is located between the Menankoto permit, to the North, and the Fekola Mine’s Medinandi permit, wrapping around the latter to its south-west end, covering an area of 100 km². The acquisition of the Bakolobi permit results in the ownership by the Company of four contiguous exploration and/or exploitation permits covering 237 km².

In 2022, the Company budgeted $33 million for development of infrastructure for Phase I saprolite mining at the Anaconda area, including road construction. Based on the updated Mineral Resource estimate and B2Gold’s preliminary planning, the Company has demonstrated that a pit situated on the Anaconda area could provide selective higher grade saprolite material (average grade of 2.2 g/t) to be trucked to and fed into the Fekola mill at a rate of 1.5 million tonnes per annum. With the anticipated closing of the acquisition of Oklo and its flagship Dandoko project in mid-September 2022, the Company is currently evaluating its options for the timing and sourcing of material on a regional basis from all deposits within the Fekola Complex area (including Fekola, Cardinal, Dandoko, Bakalobi and the Anaconda Area). This updated evaluation is expected to be completed by the end of 2022, with first saprolite production now anticipated in the second quarter of 2023. Subject to obtaining all necessary permits and completion of a final development plan, the Company intends to commence its planned Phase 1 infrastructure development in the fourth quarter of 2022. Trucking of selective higher grade saprolite material to the Fekola mill would 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 per year to the Fekola mill’s annual gold production.

After a very successful year for exploration in 2021, B2Gold is conducting an aggressive exploration campaign in 2022 with a revised budget of approximately $75 million (excluding the Gramalote Project). Exploration will focus predominantly in Mali, other operating mine sites in Namibia and the Philippines, and continued focus on grassroots targets around the world. Many years of target generation and pursuing opportunities in prospective gold regions has culminated in the Company allocating a record $29 million for its grassroots exploration programs, including several new regions. Included in the grassroots exploration program is $8 million allocated to Finland for the Central Lapland Joint Venture with Aurion Resources Ltd. Most significantly, the westward extension of Rupert Resources’ Ikarri discovery trends directly onto the Joint Venture ground. This trend (named the Helmi trend on the joint venture ground) coincides with B2Gold’s base-of-till drilling and the same interpreted structure as defined by airborne geophysics. Diamond drilling in 2021 has confirmed the presence of mineralization on this structure and is being successfully followed up with 11,600 metres planned in 2022.

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.