B2Gold Reports Strong Q4 and Full Year 2023 Results; Achieved 2023 Total Gold Production and Consolidated Cost Guidance; Q1 2024 Dividend of US$0.04 per Share Declared
News Release B2Gold Reports Strong Q4 and Full Year 2023 Results; Achieved 2023 Total Gold Production and Consolidated Cost Guidance; Q1 2024 Dividend of US$0.04 per Share Declared
Vancouver, BC, February 21, 2024 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”) announces its operational and financial results for the fourth quarter and full year 2023. The Company previously released its gold production and gold revenue results for the fourth quarter and full year 2023. All dollar figures are in United States dollars unless otherwise indicated.
2023 Fourth Quarter and Full Year Highlights
- Total gold production of 288,665 ounces in Q4 2023: Total gold production in the fourth quarter of 2023 was 288,665 ounces, including 18,054 ounces of attributable production from Calibre Mining Corp. (“Calibre”). The Fekola, Masbate and Otjikoto mines all exceeded their expected production in the fourth quarter, with Otjikoto achieving record quarterly production of 81,111 ounces.
- Total consolidated cash operating costs of $633 per gold ounce produced in Q4 2023: Total consolidated cash operating costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $633 per gold ounce produced and consolidated cash operating costs from the Company’s three operating mines of $611 per gold ounce produced.
- Total consolidated all-in sustaining costs of $1,257 per gold ounce sold in Q4 2023: Total consolidated all-in sustaining costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $1,257 per gold ounce sold and consolidated all-in sustaining costs from the Company’s three operating mines of $1,264 per gold ounce sold.
- Achieved upper half of 2023 annual gold production guidance: Record annual total gold production of 1,061,060 ounces (including 68,717 attributable ounces from Calibre) for 2023, achieving the upper half of the annual guidance range of between 1,000,000 and 1,080,000 ounces, and marking the Company's eighth consecutive year of meeting or exceeding annual production guidance.
- Below 2023 total consolidated cash operating cost guidance and achieved low end of 2023 all-in sustaining cost guidance range: Total consolidated cash operating costs for 2023 of $654 per gold ounce produced, well below the annual guidance range of between $670 and $730 per gold ounce
primarily as a result of lower than expected fuel costs and a weaker Namibian dollar. Total consolidated all-in sustaining costs for 2023 of $1,201 per gold ounce sold, near the low end of the annual guidance range of between $1,195 and $1,255 per gold ounce.
- Attributable net loss of $0.09 per share in Q4 2023; Adjusted attributable net income of $0.07 per share in Q4 2023: Net loss attributable to the shareholders of the Company of $113 million ($0.09 per share); adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $91 million ($0.07 per share). For 2023, net income attributable to the shareholders of the Company of $10 million ($0.01 per share) and adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $347 million ($0.28 per share).
- Operating cash flow before working capital adjustments of $221 million in Q4 2023: Cash flow provided by operating activities before working capital adjustments was $221 million in the fourth quarter of 2023. Cash flow provided by operating activities before working capital adjustments was $834 million for the year ended December 31, 2023.
- Strong financial position and liquidity: At December 31, 2023, the Company had cash and cash equivalents of $307 million and working capital (defined as current assets less current liabilities) of $397 million.
- Construction at the Goose Project continues to progress on track, with the project remaining on schedule for first gold pour in the first quarter of 2025: Concrete and steel works in the mill area to date continue to progress ahead of schedule. Exterior cladding of the mill building and truck shop is complete, and cladding of the power house will start in the first quarter of 2024. Additionally, the ball mill will be set in place in the first quarter of 2024, approximately four months ahead of schedule. Following the successful completion of the 2023 sealift, construction of the 2024 winter ice road (“WIR”) is being finalized and scheduled to be fully operational by February 23, 2024, transporting all required materials from the Marine Laydown Area (“MLA”) to the Goose Project site by the end of April 2024.
- Preliminary Economic Assessment (“PEA”) underway on the Gramalote Project with completion expected by the end of the second quarter of 2024: In 2023, B2Gold entered into a purchase agreement with AngloGold Ashanti Limited (“AngloGold”) to acquire AngloGold's 50% interest in the Gramalote Project located in the Department of Antioquia, Colombia. B2Gold now owns 100% of the Gramalote Project. In 2023, the Company completed a detailed review of the Gramalote Project, including the facility size and location, power supply, mining and processing options, tailings design, resettlement, potential construction sequencing, and camp design to identify potential cost savings to develop a smaller scale project. A formal study commenced in the fourth quarter of 2023, with the goal of completing a PEA by the end of the second quarter of 2024.
- Subsequent to year-end 2023, announced positive exploration drilling results from the Antelope deposit at the Otjikoto Mine in Namibia: On January 31, 2024, the Company announced positive exploration drilling results from the Antelope deposit, located approximately 3 kilometers (“km”) south of the Otjikoto Phase 5 open pit. The Antelope deposit has the potential to be developed as an underground mining operation, which could complement the expected processing of low-grade stockpiles at the Otjikoto mill from 2026 through 2031.
- Subsequent to year-end 2023, received an upfront payment of $500 million, to further enhance financial flexibility and provide additional cash liquidity: In January 2024, B2Gold entered into a series of prepaid gold sales (the “Gold Prepay”) with a number of existing lenders to further enhance financial flexibility and provide additional cash liquidity at attractive terms as the Company continues to fund sustaining, development, and growth projects across the operating portfolio, and increase financial capacity for potential growth projects in Namibia and Colombia. The Company received an upfront payment of $500 million, based on gold forward curve prices averaging approximately $2,191 per ounce, in exchange for equal monthly deliveries of gold from July 2025 to June 2026 totaling 264,775 ounces, representing approximately 10% of expected annual gold production in each of 2025 and 2026 (subject to finalization of production guidance for 2025 and 2026). Gold deliveries can be from production from any of the Company's operating mines and the Gold Prepay can be settled prior to maturity through accelerated delivery of the remaining deliverable gold ounces.
- Q1 2024 dividend of $0.04 per share declared: On February 21, 2024, B2Gold's Board of Directors declared a cash dividend for the first quarter of 2024 of $0.04 per common share (or an expected $0.16 per share on an annualized basis), payable on March 20, 2024, to shareholders of record as of March 7, 2024.
- B2Gold consolidated gold production expected to increase to record levels in 2025: Based on current estimates, consolidated gold production is expected to be between 1,130,000 and 1,260,000 ounces in 2025, driven by a significant increase in gold production from the Fekola Complex, 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 will be undertake throughout 2024, a full year contribution of higher-grade ore from Fekola Regional, and commencement of mining the higher-grade Fekola underground (subject to receipt of necessary permits for Fekola Regional and Fekola underground). In addition, the Goose Project is expected to commence gold production in the first quarter of 2025 and contribute between 220,000 and 260,000 ounces of gold production in calendar year 2025.
Update on Off-Site Attack in Mali
On February 15, 2024, the Company reported three fatalities from an off-site armed attack in Mali. Traveling on the national highway under Malian gendarme escort, a bus transporting B2Gold employees from the Fekola Mine to Bamako was involved in an incident when it was attacked approximately 75 km west of Bamako. This tragic event was the result of an armed attack on the employee transport convoy, which included Malian gendarmerie vehicles in front and in the rear of the transport convoy. Unfortunately, as of February 21, 2024, B2Gold deeply regrets to report that a fourth employee has passed away as a result of injuries sustained in the attack. Three employees remain in intensive care and are being treated for their injuries in Bamako. All B2Gold employees traveling on the bus have now been accounted for. B2Gold wishes to express its deepest condolences to the families of the deceased employees and extends its best wishes for a full recovery to all those employees who were injured in the attack.
The attack occurred over 300 km northeast of the Fekola Mine site, along a transport route that has been the focus of increased security presence by the Malian armed forces. Mining and processing activities at the Fekola Mine were not impacted by this incident. The Company is actively engaged with the Malian government on a full investigation into the cause of the attack, and on further improvements to security along the national highway.
Fourth Quarter and Full Year 2023 Results
Three months ended Year ended December 31 December 31 2023 2022 2023 2022 2021
| Gold revenue ($ in thousands) | 511,974 | 592,468 | 1,934,272 | 1,732,590 | 1,762,264 |
| Net (loss) income ($ in thousands) | (117,396) | 176,468 | 41,588 | 286,723 | 460,825 |
| (Loss) earnings per share – basic (1) ($/share) | (0.09) | 0.15 | 0.01 | 0.24 | 0.40 |
| (Loss) earnings per share – diluted (1) ($/share) | (0.09) | 0.15 | 0.01 | 0.24 | 0.40 |
| Cash provided by operating activities ($ in thousands) | 205,443 | 270,491 | 714,453 | 595,798 | 724,113 |
| Total assets ($ in thousands) | 4,874,619 | 3,681,233 | 4,874,619 | 3,681,233 | 3,561,293 |
| Non-current liabilities ($ in thousands) | 651,173 | 335,828 | 651,173 | 335,828 | 369,097 |
| Average realized gold price ($/ounce) | 1,993 | 1,746 | 1,946 | 1,788 | 1,796 |
| Adjusted net income(1)(2) ($ in thousands) | 90,697 | 121,442 | 347,203 | 263,782 | 385,370 |
| Adjusted earnings per share (1)(2) - basic ($) | 0.07 | 0.11 | 0.28 | 0.25 | 0.37 |
| Consolidated operations results: | |||||
| Gold sold (ounces) | 256,921 | 339,355 | 994,060 | 969,155 | 981,401 |
| Gold produced (ounces) | 270,611 | 352,769 | 992,343 | 973,003 | 987,595 |
| Production costs ($ in thousands) | 164,406 | 159,559 | 616,197 | 626,526 | 493,389 |
| Cash operating costs(2) ($/gold ounce sold) | 640 | 470 | 620 | 646 | 503 |
| Cash operating costs(2) ($/gold ounce produced) | 611 | 440 | 631 | 637 | 511 |
| Total cash costs(2) ($/gold ounce sold) | 769 | 593 | 756 | 768 | 626 |
| All-in sustaining costs(2) ($/gold ounce sold) | 1,264 | 876 | 1,199 | 1,022 | 874 |
| Operations results including equity investment in Calibre: | |||||
| Gold sold (ounces) | 274,980 | 354,496 | 1,062,785 | 1,024,272 | 1,041,381 |
| Gold produced (ounces) | 288,665 | 367,870 | 1,061,060 | 1,027,874 | 1,047,414 |
| Production costs ($ in thousands) | 181,801 | 176,195 | 683,963 | 684,894 | 549,610 |
| Cash operating costs(2) ($/gold ounce sold) | 661 | 497 | 644 | 669 | 528 |
| Cash operating costs(2) ($/gold ounce produced) | 633 | 468 | 654 | 660 | 535 |
| Total cash costs(2) ($/gold ounce sold) | 786 | 618 | 776 | 788 | 648 |
All-in sustaining costs(2) ($/ounce gold sold) 1,257 892 1,201 1,033 888
(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 December 31, 2023, the Company had cash and cash equivalents of $307 million (December 31, 2022 - $652 million). Working capital at December 31, 2023 was $397 million (December 31, 2022 - $802 million). During the year ended December 31, 2023, the Company drew down $150 million on the Company's $700 million revolving credit facility (“RCF”) with $550 remaining available for future draw downs. Subsequent to December 31, 2023, the Company utilized a portion of the proceeds from the $500 million Gold Prepay completed in January 2024 to repay the $150 million balance drawn on the RCF, leaving the full amount of $700 million available for future draw downs.
First Quarter 2024 Dividend
On February 21, 2024, B2Gold's Board of Directors declared a cash dividend for the first quarter of 2024 (the “Q1 2024 Dividend”) of $0.04 per common share (or an expected $0.16 per share on an annualized basis), payable on March 20, 2024, to shareholders of record as of March 7, 2024.
In 2023, the Company implemented a Dividend Reinvestment Plan (“DRIP”). For the purposes of the Q1 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 Q1 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 February 29, 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.
As part of the long-term strategy to maximize shareholder value, B2Gold expects to declare future quarterly dividends at the same level. 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 Mine - Mali
Three months ended Year ended December 31 December 31 2023 2022 2023 2022
| Gold revenue ($ in thousands) | 255,509 | 415,121 | 1,143,781 | 1,067,482 |
| Gold sold (ounces) | 128,321 | 237,800 | 588,460 | 599,600 |
| Average realized gold price ($/ounce) | 1,991 | 1,746 | 1,944 | 1,780 |
| Tonnes of ore milled | 2,419,637 | 2,469,924 | 9,408,400 | 9,376,096 |
| Grade (grams/tonne) | 1.99 | 3.31 | 2.13 | 2.14 |
| Recovery (%) | 93.4 | 92.8 | 92.3 | 92.9 |
| Gold production (ounces) | 143,010 | 244,014 | 590,243 | 598,661 |
| Production costs ($ in thousands) | 82,921 | 85,053 | 333,215 | 326,529 |
| Cash operating costs(1) ($/gold ounce sold) | 646 | 358 | 566 | 545 |
| Cash operating costs(1) ($/gold ounce produced) | 605 | 348 | 572 | 537 |
| Total cash costs(1) ($/gold ounce sold) | 809 | 495 | 729 | 684 |
| All-in sustaining costs(1) ($/gold ounce sold) | 1,444 | 708 | 1,194 | 867 |
| Capital expenditures ($ in thousands) | 87,830 | 48,843 | 298,942 | 117,622 |
Exploration ($ in thousands) 2,022 1,366 3,728 15,214
(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) was a strong performer in 2023, producing 590,243 ounces of gold, near the mid-point of the annual guidance range of 580,000 to 610,000 ounces. For the year ended December 31, 2023, mill feed grade was 2.13 grams per tonne (“g/t”), mill throughput was a record 9.41 million tonnes, and gold recovery averaged 92.3%. In the fourth quarter of 2023, the Fekola Mine produced 143,010 ounces of gold. During the fourth quarter of 2023, the Fekola processing facilities continued to outperform expectations as a result of continued favourable ore fragmentation and continued optimization of the grinding circuit. For the fourth quarter of 2023, mill feed grade was 1.99 g/t, mill throughput was 2.42 million tonnes, and gold recovery averaged 93.4%. Mined ore tonnage and grade continue to reconcile well with the Fekola resource model.
For the year ended December 31, 2023, the Fekola Mine's cash operating costs (see “Non-IFRS Measures”) of $572 per gold ounce produced ($566 per gold ounce sold) were at the lower end of Fekola's guidance range of between $565 and $625 per gold ounce produced. Fekola’s cash operating costs for the fourth quarter of 2023 were $605 per gold ounce produced ($646 per gold ounce sold), slightly lower than expected due to higher than anticipated production in the fourth quarter.
All-in sustaining costs (see “Non-IFRS Measures”) for the Fekola Mine for the year ended December 31, 2023 were $1,194 per gold ounce sold, near the low end of the revised guidance range of between $1,175 and $1,235 per gold ounce sold, but higher than the original guidance range of between $1,085 and $1,145 per gold ounce sold. All-in sustaining costs for the Fekola Mine for the fourth quarter of 2023 were $1,444 per gold ounce sold.
Capital expenditures for the year ended December 31, 2023, totalled $299 million, primarily consisting of $80 million for deferred stripping, $84 million for mobile equipment purchases and rebuilds, $39 million for tailings storage facility expansion and equipment, $39 million for the development of the Fekola underground mine, $18 million for the expansion of the solar plant, $12 million for site general capital, $12 million for other mining sustaining capital, $10 million for process and power plant, and $5 million for Bantako road construction. Capital expenditures in the fourth quarter of 2023 totalled $88 million, primarily consisting of $24 million for deferred stripping, $18 million for mobile equipment purchases and rebuilds, $16 million for tailings storage facility expansion and equipment, $14 million for the development of the Fekola underground mine, $7 million for the expansion of the solar plant, $5 million site general capital, and $3 million for other mining sustaining capital.
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 Fekola Complex is expected to produce between 470,000 and 500,000 ounces of gold in 2024 at cash operating costs of between $835 and $895 per ounce and all-in sustaining costs of between $1,420 and $1,480 per ounce. The Fekola Complex's total 2024 gold production is anticipated to decrease relative to 2023, predominantly as a result of the delay in receiving an exploitation license for Fekola Regional from the Government of Mali, delaying the 80,000 to 100,000 ounces that were scheduled in the life of mine plan to be trucked to the Fekola mill and processed in 2024. The contribution of this gold production from Fekola Regional is now assumed to commence at the beginning of 2025. If an exploitation license is received in the first half of 2024, there is potential for 2024 Fekola Complex production to be supplemented with up to 18,000 ounces of higher-grade ore from Fekola Regional.
During the year ended December 31, 2023, the State of Mali introduced a new mining code (the “2023 Mining Code”). Receipt of an exploitation license for Fekola Regional remains outstanding pending finalization of an implementation decree for the new 2023 Mining Code by the State of Mali. B2Gold recently held meetings with representatives of the Government of Mali regarding the 2023 Mining Code. The Government of Mali assisted the Company in clarifying the application of the 2023 Mining Code to existing and future projects in Mali, and also expressed their desire for B2Gold to rapidly progress the development of Fekola Regional and committed to assisting the Company in such development.
The haul road from Bantako North to Fekola is complete and construction of the mining infrastructure (warehouse, workshop, fuel depot, and offices) will be completed in the first quarter of 2024. Mining operations will commence upon receipt of an exploitation license, with initial gold production approximately three months after commencement.
Fekola is expected to process 9.4 million tonnes of ore during 2024 at an average grade of 1.77 g/t gold with a process gold recovery of 90.9%. Gold production is expected to be evenly weighted between the first half of 2024 and the second half of 2024. In the second half of 2024, gold production is expected to be weighted approximately 40% to the third quarter and approximately 60% to the fourth quarter.
The expected increase in Fekola's all-in sustaining costs for 2024 relative to 2023 reflects the expected decrease in production at Fekola in 2024 due to the delay in receiving an exploitation license for Fekola Regional and higher sustaining capital expenditures. Capital expenditures in 2024 at Fekola are expected to total approximately $309 million, of which approximately $202 million is classified as sustaining capital expenditures and $107 million is classified as non-sustaining expenditures. Sustaining capital expenditures are anticipated to include $80 million for deferred stripping, $45 million for ongoing construction of the new tailings storage facility (expected to be completed in the second quarter of 2025), $39 million for new and replacement Fekola mining equipment, including capitalized rebuilds, and $19 million for the expansion of the Fekola solar plant (expected to be completed in the third quarter of 2024). Non-sustaining capital expenditures are anticipated to include $64 million for underground mine development and $43 million for mine development and infrastructure at Fekola Regional.
Masbate Mine – The Philippines
Three months ended Year ended December 31 December 31 2023 2022 2023 2022
| Gold revenue ($ in thousands) | 107,063 | 94,010 | 372,902 | 384,714 |
| Gold sold (ounces) | 53,500 | 53,865 | 190,800 | 214,015 |
| Average realized gold price ($/ounce) | 2,001 | 1,745 | 1,954 | 1,798 |
| Tonnes of ore milled | 2,077,503 | 2,043,931 | 8,302,075 | 7,929,094 |
| Grade (grams/tonne) | 0.90 | 1.08 | 0.97 | 1.11 |
| Recovery (%) | 77.0 | 68.3 | 74.5 | 74.9 |
| Gold production (ounces) | 46,490 | 48,687 | 193,502 | 212,728 |
| Production costs ($ in thousands) | 43,733 | 47,228 | 160,952 | 177,705 |
| Cash operating costs(1) ($/gold ounce sold) | 817 | 877 | 844 | 830 |
| Cash operating costs(1) ($/gold ounce produced) | 910 | 872 | 859 | 817 |
| Total cash costs(1) ($/gold ounce sold) | 933 | 984 | 966 | 937 |
| All-in sustaining costs(1) ($/gold ounce sold) | 1,118 | 1,187 | 1,143 | 1,104 |
| Capital expenditures ($ in thousands) | 9,195 | 9,620 | 30,142 | 39,528 |
Exploration ($ in thousands) 1,067 1,648 3,808 4,759
(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 operational performance in 2023, producing 193,502 ounces of gold, exceeding the upper end of its guidance range of 170,000 to 190,000 ounces. For the year ended December 31, 2023, mill feed grade was 0.97 g/t, mill throughput was a record 8.30 million tonnes, and gold recovery averaged 74.5%. Gold recoveries for 2023 of 74.5% were in-line with those of 2022. Average 2023 gold recoveries were as expected despite processing a higher percentage of sulphide and transitional ore than planned. Masbate's mill throughput was higher than anticipated in 2023 as a result of continued improvements to optimization of mill operations and blending of mill feed. Mined ore tonnage and grade continue to reconcile well with the Masbate resource model. In the fourth quarter of 2023, Masbate produced 46,490 ounces of gold. Lower ore gold grade during the quarter was offset by higher than expected mill throughput. Fourth quarter 2023 mill feed grade was 0.90 g/t, mill throughput was 2.08 million tonnes, and gold recovery averaged 77.0%.
The Masbate Mine’s cash operating costs (see “Non-IFRS Measures”) of $859 per gold ounce produced ($844 per gold ounce sold) for the year ended December 31, 2023 were at the low end of the revised guidance range of between $855 and $915 per gold ounce produced and significantly below the original guidance range of between $985 and $1,045 per gold ounce produced. As a result of lower than anticipated diesel and heavy fuel oil costs, Masbate experienced lower than expected mining and processing costs throughout 2023, which with the higher than anticipated gold production, contributed significantly to the lower than expected cash operating costs per gold ounce produced for Masbate for the year ended December 31, 2023. The Masbate Mine's cash operating costs for the fourth quarter of 2023 were $910 per gold ounce produced ($817 per gold ounce sold).
All-in sustaining costs (see “Non-IFRS Measures”) for the Masbate Mine were $1,143 per gold ounce sold for the year ended December 31, 2023, below the lower end of the revised guidance range of between $1,155 and $1,215 per gold ounce sold and well below the original guidance range of between $1,370 and $1,430 per gold ounce sold. All-in sustaining costs for the year ended December 31, 2023 were lower than anticipated as a result of higher than expected gold ounces sold, lower than expected cash operating costs as described above, and lower than anticipated sustaining capital expenditures. All-in sustaining costs for the Masbate Mine for the fourth quarter of 2023 were $1,118 per gold ounce sold.
Capital expenditures totalled $30 million in 2023, primarily consisting of mobile equipment rebuilds and purchases of $17 million, $3 million for the completion of a new powerhouse generator and other powerhouse engine rebuilds, $2 million in deferred stripping, $2 million for tailings storage facility projects, and $2 million for capitalized mill maintenance. Capital expenditures for the fourth quarter of 2023 totalled $9 million, primarily consisting of $5 million for mobile equipment rebuilds and purchases, $1 million for capitalized mill maintenance, $1 million for powerhouse rebuilds, and $1 million for the tailings storage facility.
The Masbate Mine is expected to produce between 170,000 and 190,000 ounces of gold in 2024 at cash operating costs of between $945 and $1,005 per ounce and all-in sustaining costs of between $1,300 and $1,360 per ounce. Gold production is scheduled to be relatively consistent throughout 2024. For 2024, Masbate is expected to process 7.9 million tonnes of ore at an average grade of 0.93 g/t with a process gold recovery of 76.0%. Mill feed will be a blend of mined fresh ore and low-grade ore stockpiles.
Capital expenditures for 2024 at Masbate are expected to total $49 million, of which approximately $33 million is classified as sustaining capital expenditures and $16 million is classified as non-sustaining capital expenditures. Sustaining capital expenditures are anticipated to include $16 million for mining and mobile equipment replacement and rebuilds, $6 million for deferred stripping, $6 million for process plant, and $3 million for tailings storage facility expansion. Non-sustaining capital expenditures are anticipated to include $16 million for land acquisition and mine development.
Otjikoto Mine - Namibia
Three months ended Year ended December 31 December 31 2023 2022 2023 2022
| Gold revenue ($ in thousands) | 149,402 | 83,337 | 417,589 | 280,394 |
| Gold sold (ounces) | 75,100 | 47,690 | 214,800 | 155,540 |
| Average realized gold price ($/ounce) | 1,989 | 1,747 | 1,944 | 1,803 |
| Tonnes of ore milled | 888,561 | 839,599 | 3,443,308 | 3,412,960 |
| Grade (grams/tonne) | 2.88 | 2.25 | 1.91 | 1.50 |
| Recovery (%) | 98.5 | 98.8 | 98.6 | 98.5 |
| Gold production (ounces) | 81,111 | 60,068 | 208,598 | 161,614 |
| Production costs ($ in thousands) | 37,752 | 27,278 | 122,030 | 122,292 |
| Cash operating costs(1) ($/gold ounce sold) | 503 | 572 | 568 | 786 |
| Cash operating costs(1) ($/gold ounce produced) | 451 | 465 | 585 | 769 |
| Total cash costs(1) ($/gold ounce sold) | 582 | 642 | 646 | 858 |
| All-in sustaining costs(1) ($/gold ounce sold) | 816 | 965 | 984 | 1,161 |
| Capital expenditures ($ in thousands) | 14,797 | 19,521 | 61,063 | 79,096 |
Exploration ($ in thousands) 1,410 1,201 3,863 3,476
(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, had a strong finish to 2023 and produced an annual record of 208,598 ounces of gold, at the upper end of the guidance range of 190,000 to 210,000 ounces, mainly due to improved processed grade as a result of higher-grade ore mined from the Wolfshag underground mine. For the year ended December 31, 2023, mill feed grade was 1.91 g/t, mill throughput was 3.44 million tonnes, and gold recovery averaged 98.6%. In the fourth quarter of 2023, the Otjikoto Mine produced a quarterly record of 81,111 ounces of gold. For the fourth quarter of 2023, mill feed grade was 2.88 g/t, mill throughput was 0.89 million tonnes, and gold recovery averaged 98.5%.
As of the beginning of 2023, the Probable Mineral Reserve estimate for the Wolfshag deposit included 203,000 ounces of gold in 1.1 million tonnes of ore at an average grade of 5.55 g/t gold. Open pit mining operations at the Otjikoto Mine are scheduled to ramp down throughout 2024 and conclude in 2025, while underground mining operations at Wolfshag are expected to continue through 2026. Processing operations will continue through 2031, when economically viable stockpiles are forecast to be exhausted.
On January 31, 2024, the Company announced positive exploration drilling results from the Antelope deposit at the Otjikoto Mine. The Antelope deposit, comprised of the Springbok Zone, the Oryx Zone, and a possible third structure, Impala, subject to further confirmatory drilling, is located approximately 3 km south of the Otjikoto Phase 5 open pit. The Antelope deposit has the potential to be developed as an underground mining operation, which could complement the expected processing of low-grade stockpiles at the Otjikoto mill from 2026 through 2031.
The Otjikoto Mine's cash operating costs (see “Non-IFRS Measures”) for the year ended December 31, 2023 were $585 per gold ounce produced ($568 per gold ounce sold), within its revised guidance range of between $545 and $605 per gold ounce produced and below its original guidance range between $590 and $650 per gold ounce produced. Cash operating costs per gold ounce produced for the year ended December 31, 2023 were lower than expectations as a result of higher than expected gold ounces produced and lower operating costs due to a weaker than anticipated Namibian dollar. For the fourth quarter of 2023, the Otjikoto Mine's cash operating costs were $451 per gold ounce produced ($503 per ounce gold sold).
All-in sustaining costs (see “Non-IFRS Measures”) for the Otjikoto Mine for the year ended December 31, 2023 were $984 per gold ounce sold, within its revised guidance range of between $950 and $1,010 per ounce sold and well below its original guidance range of between $1,080 and $1,140 per ounce sold. Allin sustaining costs for the year ended December 31, 2023 were below the low end of its original guidance range as a result of higher than anticipated gold ounces sold, lower than expected cash operating costs and lower than anticipated sustaining capital expenditures primarily related to deferred stripping and underground development. All-in sustaining costs for the Otjikoto Mine for the fourth quarter of 2023 were $816 per gold ounce sold.
Capital expenditures totalled $61 million in 2023, primarily consisting of $47 million for deferred stripping for the Otjikoto pit, $10 million for Wolfshag underground development, and $2 million in mobile equipment rebuilds. Capital expenditures for the fourth quarter of 2023 totalled $15 million, primarily consisting of $10 million for deferred stripping for the Otjikoto pit and $3 million for Wolfshag underground development.
The Otjikoto Mine is expected to produce between 180,000 and 200,000 ounces of gold in 2024 at cash operating costs of between $685 and $745 per ounce and all-in sustaining costs of between $960 and $1,020 per ounce. Gold production at Otjikoto is expected to be relatively consistent throughout 2024. For 2024, Otjikoto is expected to process a total of 3.4 million tonnes of ore at an average grade of 1.77 g/t with a process gold recovery of 98.0%. Processed ore will be sourced from the Otjikoto pit and the Wolfshag underground mine, supplemented by existing medium and high-grade ore stockpiles.
Capital expenditures in 2024 at Otjikoto are expected to total $33 million, of which approximately $32 million is classified as sustaining capital expenditures and $1 million is classified as non-sustaining capital expenditures. Sustaining capital expenditures are anticipated to include $32 million for deferred stripping and deferred underground development.
Goose Project Development
On April 19, 2023, the Company completed the acquisition of Sabina Gold & Silver Corp. (“Sabina”), resulting in the Company acquiring Sabina's 100% owned Back River Gold District located in Nunavut, Canada by issuing approximately 216 million common shares of B2Gold as consideration. The Back River Gold District consists of five mineral claims blocks along an 80 km belt.
B2Gold recognizes that respect and collaboration with the Kitikmeot Inuit Association (“KIA”) 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 socioeconomic benefits to the Kitikmeot Region. B2Gold looks forward to continuing to build on its strong collaboration with the KIA and Kitikmeot Communities.
Construction at the Goose Project continues to progress on track, with the project remaining on schedule to pour first gold in the first quarter of 2025. Concrete and steel works in the mill area to date are progressing ahead of schedule. Exterior cladding of the mill building and truck shop is complete and cladding of the power house will commence in the first quarter of 2024. Enclosure of these buildings has allowed for work to continue through the colder months and remain on schedule. Additionally, the ball mill will be set in place in the first quarter of 2024, approximately four months ahead of schedule, and the focus will switch to piping, electrical, and mechanical systems as materials begin to arrive via the WIR from the MLA. Crews for installation of piping, electrical, and mechanical systems have been mobilized and will work within the enclosed workshops and buildings as the site ramps up to peak 2024 construction season. Progress to date has considerably de-risked the Goose Project as the site ramps up to the peak 2024 construction season.
Following the successful completion of the 2023 sealift, construction of the 163 km WIR between the MLA and the Goose Project is being finalized. The WIR is scheduled to be fully operational by February 23, 2024, transporting all required materials from the MLA to the Goose Project site by the end of April 2024, keeping the Goose Project on schedule to pour first gold in the first quarter of 2025.
After completing a detailed review of the Goose Project design, materials, and construction schedule as part of the 2024 budgeting process, the Company has revised the total construction capital estimate from C$800 million to C$1,050 million. Most of the increase in the construction capital estimate relates to underestimated labour and site operating costs in the feasibility study, along with additional general inflationary impacts on construction materials, consumables, and transportation costs. In addition, a detailed review of the project design has identified deficiencies in project components including power generation and distribution, laboratory, piping, and controls and instrumentation, which are being corrected to deliver a reliable operation. In 2024, B2Gold expects to incur approximately C$280 million in construction capital costs. Future construction cost variance is expected to be minimal as over half of the construction capital costs to be incurred in 2024 are related to labour in order to bring the project close to commissioning by the end of the year, and all major components have been purchased or are under contract. In the fourth quarter