B2Gold Reports Q1 2024 Results; Cash Operating Costs and All-In Sustaining Costs Below 2024 Annual
News Release
| 2Gold Reports Q1 2024 Results; | Cash Operating Costs and All-In Sustaining Costs Below 2024 Annual | |
| Guidance Ranges; Update on Goose Project Following Successful Completion of 2024 Winter Ice Road | ||
| Campaign |
Vancouver, BC, May 7, 2024 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”) announces its operational and financial results for the first quarter of 2024. All dollar figures are in United States dollars unless otherwise indicated.
2024 First Quarter Highlights
- Total gold production of 225,716 ounces in Q1 2024, in-line with expectations: Total gold production in the first quarter of 2024 was 225,716 ounces, including 11,377 ounces of attributable production from Calibre Mining Corp. (“Calibre”). All three B2Gold operations were in-line with expectations and the Company is on track to meet its consolidated annual production guidance range.
| • Total consolidated cash operating costs of | $734 | per gold ounce produced in Q1 2024: Total | |||
| consolidated cash operating costs (see “Non-IFRS Measures”) (including estimated attributable | |||||
| results for Calibre) of | $734 | per gold ounce produced during the first quarter of 2024 with | |||
| consolidated cash operating costs from the Company’s three operating mines of $718 per gold | |||||
| ounce produced. |
| • Total consolidated all-in sustaining costs of $1,345 per gold ounce sold in Q1 2024: Total | |
| consolidated all-in sustaining costs (see “Non-IFRS Measures”) (including estimated attributable |
results for Calibre) of $1,345 per gold ounce sold with consolidated all-in sustaining costs from the Company’s three operating mines of $1,346 per gold ounce sold.
- Attributable net income of $0.03 per share; Adjusted attributable net income of $0.06 per share in Q1 2024: Net income attributable to the shareholders of the Company in the first quarter of 2024 of $40 million ($0.03 per share); adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $82 million ($0.06 per share).
| • Operating cash flow before working capital adjustments of $200 million in Q1 2024: Cash | |
| flow provided by operating activities before working capital adjustments and proceeds from | |
| prepaids financing was $200 million in the first quarter of 2024. |
| • Strong financial position and liquidity: At March 31, 2024, the Company had cash and cash | |
| equivalents of $568 million and working capital (defined as current assets less assets classified as | |
| held for sale and current liabilities) of $629 million. |
- Q2 2024 dividend of $0.04 per share declared: On May 7, 2024, B2Gold's Board of Directors declared a cash dividend for the second quarter of 2024 of $0.04 per common share (or an expected $0.16 per share on an annualized basis), payable on June 24, 2024, to shareholders of record as of June 11, 2024. As of March 31, 2024, the expected annual dividend rate represented an approximate 6.1% yield.
- Goose Project 2024 winter ice road campaign successfully completed: Subsequent to quarter end, B2Gold successfully completed the 2024 winter ice road (“WIR”) campaign. Construction of the 162 kilometer (“km”) WIR began in December 2023 and the 2024 WIR campaign commenced in the first quarter of 2024. The 2024 WIR campaign was successfully completed on April 30, 2024, delivering all necessary materials from the Marine Laydown Area (“MLA”) to complete the construction of the Goose Project. Materials trucked from the MLA to the Goose Project site during the 2024 WIR campaign exceeded 2,100 total loads and included 400 loads of diesel fuel.
- Goose Project mill construction remains on schedule: The mill construction remains on schedule with work ongoing on various facilities related to concrete, steel erection and building cladding. Additionally, installation of the ball mill continues to progress ahead of schedule with the installation of all shell sections, feed/discharge heads, trunnion, pinion and bearings having been completed.
- Development of the open pit and underground is slightly behind schedule at the Goose Project; first gold production now expected in Q2 2025: Development of the open pit and underground is slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and prioritization of critical path construction activities. The current schedule indicates that an additional three months of mining must be added to the schedule to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit. With the schedule change, the mill is now scheduled to produce first gold in the second quarter of 2025 with ramp up to full production in the third quarter of 2025 (one quarter later than previous estimates). As a result of the updated mining schedule, the Company now estimates that gold production in calendar year 2025 will be between 120,000 ounces and 150,000 ounces (previously estimated to be between 220,000 ounces and 260,000 ounces). The reduction in estimated gold production in 2025 is predominantly due to the deferral of an anticipated 100,000 ounces of quarterly gold production from the fourth quarter of 2025 into the first quarter of 2026. Importantly, the updated mining schedule does not impact the total number of gold ounces the Company expects to produce over the life of mine of the Goose Project. The updated production
profile has resulted in the Company now estimating that average annual gold production from 2026 to 2030 will increase to be in excess of 310,000 ounces per year (previously estimated at 300,000 ounces per year).
- Positive exploration results from the Antelope deposit at the Otjikoto Mine in Namibia indicate potential for possible underground development: On January 31, 2024, the Company announced positive exploration drilling results from the Antelope deposit, located approximately three km south of the Otjikoto 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.
- Fekola Complex technical report outlined the trucking of ore as the optimal option to maximize the value of Fekola Regional: The Fekola Complex technical report filed on March 14, 2024, outlined the trucking of ore from the Anaconda Area to be toll milled by the Fekola mill as the optimal option to maximize the value of Fekola Regional, and to extend the processing life of the Fekola mill. Trucking of selective higher-grade material from Fekola Regional to the Fekola mill will increase the ore processed and has the potential to generate approximately 80,000 to 100,000 ounces of initial gold production per year from Fekola Regional sources. Importantly, the haul road from Fekola Regional to the Fekola Mine is operational as construction of the haul roads and mining infrastructure (warehouse, workshop, fuel depot and offices) was completed on schedule in 2023.
- Updated Gramalote Preliminary Economic Assessment (“PEA”) on track for Q2 2024: B2Gold's in-house projects team is progressing work on various smaller scale project development plans for the Gramalote Project, with the goal of identifying a higher-return project than the previously contemplated joint venture development plan. B2Gold has 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. The results of the review allowed the Company to determine the optimal parameters and assumptions for a formal study, which commenced in the fourth quarter of 2023, with a PEA expected to be complete by the end of the second quarter of 2024.
- Received an upfront payment of $500 million, to further enhance financial flexibility and provide additional cash liquidity: In January 2024, B2Gold entered into a series of prepaid gold sales (the “Gold Prepay”) with a number of existing lenders to further enhance financial flexibility and provide additional cash liquidity at attractive terms as the Company continues to fund sustaining, development and growth projects across the operating portfolio, and increase financial capacity for potential growth projects in Namibia and Colombia.
First Quarter 2024 Results
Three months ended March 31, 2024 2023
| Gold revenue ($ in thousands) | 461,444 | 473,556 |
| Net income ($ in thousands) | 48,481 | 101,904 |
| Earnings per share – basic(1) ($/ share) | 0.03 | 0.08 |
| Earnings per share – diluted(1) ($/ share) | 0.03 | 0.08 |
| Cash provided by operating activities ($ thousands) | 710,727 | 203,823 |
| Average realized gold price ($/ ounce) | 2,069 | 1,901 |
| Adjusted net income(1)(2) ($ in thousands) | 81,503 | 105,862 |
| Adjusted earnings per share(1)(2) – basic ($) | 0.06 | 0.10 |
| Consolidated operations results: | ||
| Gold sold (ounces) | 222,978 | 249,150 |
| Gold produced (ounces) | 214,339 | 250,719 |
| Production costs ($ in thousands) | 156,745 | 127,604 |
| Cash operating costs(2) ($/ gold ounce sold) | 703 | 512 |
| Cash operating costs(2) ($/ gold ounce produced) | 718 | 576 |
| Total cash costs(2) ($/ gold ounce sold) | 838 | 653 |
| All-in sustaining costs(2) ($/ gold ounce sold) | 1,346 | 1,049 |
| Operations results including equity investment in Calibre: | ||
| Gold sold (ounces) | 234,355 | 265,292 |
| Gold produced (ounces) | 225,716 | 266,856 |
| Production costs ($ in thousands) | 168,650 | 143,369 |
| Cash operating costs(2) ($/ gold ounce sold) | 720 | 540 |
| Cash operating costs(2) ($/ gold ounce produced) | 734 | 600 |
| Total cash costs(2) ($/ gold ounce sold) | 851 | 678 |
| All-in sustaining costs(2) ($/ gold ounce sold) | 1,345 | 1,060 |
(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 March 31, 2024, the Company had cash and cash equivalents of $568 million (December 31, 2023 - $307 million) and working capital (defined as current assets less assets classified as held for sale and current liabilities) of $629 million (December 31, 2023 - $397 million). At March 31, 2024, the full amount of the Company's $700 million revolving credit facility was undrawn and available.
Second Quarter 2024 Dividend
On May 7, 2024, B2Gold’s Board of Directors declared a cash dividend for the second quarter of 2024 (the “Q2 2024 Dividend”) of $0.04 per common share (or an expected $0.16 per share on an annualized basis), payable on June 24, 2024, to shareholders of record as of June 11, 2024. As of March 31, 2024, the expected annual dividend rate represented an approximate 6.1% yield.
In 2023, the Company implemented a Dividend Reinvestment Plan (“DRIP”). For the purposes of the Q2 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 Q2 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 June 4, 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 March 31, 2024 2023
| Gold revenue ($ in thousands) | 256,318 | 314,225 |
| Gold sold (ounces) | 123,828 | 165,050 |
| Average realized gold price ($/ ounce) | 2,070 | 1,904 |
| Tonnes of ore milled | 2,462,863 | 2,271,891 |
| Grade (grams/ tonne) | 1.62 | 2.47 |
| Recovery (%) | 92.7 | 91.9 |
| Gold production (ounces) | 119,141 | 165,864 |
| Production costs ($ in thousands) | 85,105 | 77,661 |
| Cash operating costs(1) ($/ gold ounce sold) | 687 | 471 |
| Cash operating costs(1) ($/ gold ounce produced) | 698 | 483 |
| Total cash costs(1) ($/ gold ounce sold) | 852 | 632 |
| All-in sustaining costs(1) ($/ gold ounce sold) | 1,436 | 964 |
| Capital expenditures ($ in thousands) | 80,562 | 53,795 |
Exploration ($ in thousands) 1,302 1,706
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures
specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.
The Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) had a strong start to the year with gold production for the first quarter of 2024 of 119,141 ounces, in-line with expectations. For the first quarter of 2024, mill feed grade was 1.62 grams per tonne (“g/t”), mill throughput was 2.46 million tonnes, and gold recovery averaged 92.7%.
The Fekola Mine’s cash operating costs (see “Non-IFRS Measures”) for the first quarter of 2024 were $698 per gold ounce produced ($687 per gold ounce sold). Cash operating costs per gold ounce produced for the first quarter of 2024 were lower than expected as a result of lower fuel costs, higher mill throughput, higher gold recovery and lower mining costs due to lower than anticipated mined tonnage as a result of equipment availability.
All-in sustaining costs (see “Non-IFRS Measures”) for the first quarter of 2024 for the Fekola Mine were $1,436 per gold ounce sold. All-in sustaining costs were lower than expected as a result of lower than anticipated production costs per gold ounce sold, higher gold ounces sold and lower than expected sustaining capital expenditures, partially offset by higher gold royalties resulting from a higher than anticipated average realized gold price. The lower sustaining capital expenditures were mainly due to timing of expenditures and are expected to be incurred later in 2024.
Capital expenditures in the first quarter of 2024 totalled $81 million primarily consisting of $29 million for deferred stripping, $18 million for mobile equipment purchases and rebuilds, $13 million for the construction of a new tailings storage facility, $11 million for Fekola underground development, $3 million for solar plant expansion and $2 million for haul road construction.
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 $1,480 per ounce. The Fekola Complex's total 2024 gold production is anticipated to decrease relative to 2023 due to lower production as a result of the delay in receiving an exploitation license for Fekola Regional from the Government of Mali pending finalization of an implementation decree for the new 2023 Mining Code. No production is forecast from Fekola Regional in the Company's 2024 guidance with production now expected to commence at the beginning of 2025.
The Fekola Mine is expected to process 9.4 million tonnes of ore during 2024 at an average grade of 1.77 g/t gold with a process gold recovery of 90.9%. Gold production is expected to be evenly weighted between the first half of 2024 and the second half of 2024.
Masbate Mine – The Philippines
Three months ended March 31, 2024 2023
| Gold revenue ($ in thousands) | 98,967 | 56,992 |
| Gold sold (ounces) | 47,700 | 29,650 |
| Average realized gold price ($/ ounce) | 2,075 | 1,922 |
| Tonnes of ore milled | 2,169,462 | 2,069,042 |
| Grade (grams/ tonne) | 0.99 | 0.95 |
| Recovery (%) | 72.4 | 73.5 |
| Gold production (ounces) | 49,782 | 46,364 |
| Production costs ($ in thousands) | 42,771 | 24,993 |
| Cash operating costs(1) ($/ gold ounce sold) | 897 | 843 |
| Cash operating costs(1) ($/ gold ounce produced) | 835 | 883 |
| Total cash costs(1) ($/ gold ounce sold) | 1,010 | 992 |
| All-in sustaining costs(1) ($/ gold ounce sold) | 1,219 | 1,320 |
| Capital expenditures ($ in thousands) | 8,530 | 8,953 |
Exploration ($ in thousands) 821 959
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures
specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.
The Masbate Mine in the Philippines had a strong start to 2024 with first quarter gold production of 49,782 ounces, above expectations due to higher mill throughput. For the first quarter of 2024, mill feed grade was 0.99 g/t gold, mill throughput was 2.17 million tonnes, and gold recovery averaged 72.4%.
The Masbate Mine's cash operating costs (see “Non-IFRS Measures”) for the first quarter of 2024 were $835 per gold ounce produced ($897 per gold ounce sold). Cash operating costs per gold ounce produced for the first quarter of 2024 were lower than expected as a result of higher gold production and lower than anticipated mining and processing costs due to higher productivity and lower diesel and heavy fuel oil costs.
All-in sustaining costs (see “Non-IFRS Measures”) for the first quarter of 2024 were $1,219 per gold ounce sold. All-in sustaining costs for the first quarter of 2024 were lower than expected as a result of lower than anticipated production costs per gold ounce sold and lower than expected sustaining capital expenditures. The lower sustaining capital expenditures were mainly a result of timing of expenditures and are expected to be incurred later in 2024.
Capital expenditures in the first quarter of 2024 totalled $9 million, primarily consisting of $6 million for mobile equipment purchases and rebuilds and $1 million for deferred stripping.
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 $1,360 per ounce. Gold production is scheduled to be relatively consistent throughout 2024. For 2024, Masbate is expected to process 7.9 million tonnes of ore at an average grade of 0.93 g/t gold with a process gold recovery of 76.0%. Mill feed will be a blend of mined fresh ore and low-grade ore stockpiles.
Otjikoto Mine - Namibia
Three months ended March 31, 2024 2023
| Gold revenue ($ in thousands) | 106,159 | 102,339 |
| Gold sold (ounces) | 51,450 | 54,450 |
| Average realized gold price ($/ ounce) | 2,063 | 1,880 |
| Tonnes of ore milled | 826,477 | 823,952 |
| Grade (grams/ tonne) | 1.74 | 1.47 |
| Recovery (%) | 98.5 | 98.8 |
| Gold production (ounces) | 45,416 | 38,491 |
| Production costs ($ in thousands) | 28,869 | 24,950 |
| Cash operating costs(1) ($/ gold ounce sold) | 561 | 458 |
| Cash operating costs(1) ($/ gold ounce produced) | 642 | 605 |
| Total cash costs(1) ($/ gold ounce sold) | 644 | 533 |
| All-in sustaining costs(1) ($/ gold ounce sold) | 958 | 905 |
| Capital expenditures ($ in thousands) | 13,813 | 17,346 |
Exploration ($ in thousands) 1,789 494
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures
specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.
The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, performed well during the first quarter of 2024, producing 45,416 ounces of gold, above expectations as a result of higher than anticipated mill feed grade. For the first quarter of 2024, mill feed grade was 1.74 g/t, mill throughput was 0.83 million tonnes, and gold recovery averaged 98.5%.
Ore production from the Wolfshag underground mine for the first quarter of 2024 averaged over 1,500 tonnes per day at an average grade of 4.06 g/t gold. As of the beginning of 2024, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 100,000 ounces of gold in 0.6 million tonnes of ore at an average grade of 5.02 g/t gold. Open pit mining operations at the Otjikoto Mine will continue to ramp down in 2024 and conclude in 2025, while processing operations are expected to continue until economically viable stockpiles are exhausted in 2031. Underground operations are currently projected to continue until 2026 with potential to extend underground operations if the ongoing underground exploration program is successful in identifying more underground mineral deposits.
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 three km south of the Otjikoto 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.
Cash operating costs (see “Non-IFRS Measures”) for the first quarter of 2024 were $642 per gold ounce produced ($561 per ounce gold sold). Cash operating costs per gold ounce produced for the first quarter of 2024 were lower than expected as a result of higher production and a weaker Namibian dollar. Cash operating costs per gold ounce sold for the first quarter of 2024 were lower than the cash operating costs per ounce produced for the first quarter of 2024 as a result of the sale of lower cost inventory produced in the fourth quarter of 2023.
All-in sustaining costs (see “Non-IFRS Measures”) for the first quarter of 2024 were $958 per gold ounce sold. All-in sustaining costs for the first quarter of 2024 were lower than expected as a result of lower than anticipated cash operating costs, higher than anticipated gold ounces sold and lower than expected sustaining capital expenditures, partially offset by higher gold royalties resulting from a higher than expected average realized gold price. The lower sustaining capital expenditures were mainly a result of timing of expenditures and are expected to be incurred later in 2024.
Capital expenditures for the first quarter of 2024 totalled $14 million, consisting of $11 million for deferred stripping in the Otjikoto pit and $3 million for Wolfshag underground mine 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 gold 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.
Goose Project Development
The Back River Gold District consists of five mineral claims blocks along an 80 km belt. Construction is underway at the most advanced project in the district, the Goose Project, and has been de-risked with significant infrastructure currently in place.
B2Gold recognizes that respect and collaboration with the Kitikmeot Inuit Association (“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.
Following the successful completion of the 2023 sealift, construction of the 162 km WIR between the MLA and the Goose Project site began in December 2023. The 2024 WIR campaign completed on April 30, 2024, and B2Gold is pleased to report that the Company has successfully delivered all necessary materials required to complete construction of the Goose Project. Materials trucked from the MLA to the Goose Project site during the 2024 WIR campaign exceeded 2,100 total loads and included 400 loads of diesel fuel. Under B2Gold management, the 2,100 loads completed during the 2024 WIR campaign is approximately double the loads completed during the 2023 WIR campaign. Key materials delivered during the 2024 WIR campaign included all modular units necessary to expand the camp to 500 person capacity; all steel and rebar necessary to complete the mill and concrete work; approximately 19 million liters of fuel that will be used between May 2024 and March 2025; all cement necessary to complete the construction project; more than 4,500m3 of cement in one tonne bags; and all reagents necessary to commission and operate the mill starting in 2025.
Goose Project site laydown area – April 2024
Winter ice road – March 2024
As of the end of April 2024, all additional camp modules were on site and set in place. The camp will be expanded from 300 beds to 500 beds through six additional dorm wings and a small office complex wing. More than 120 new additional beds are currently ready to be occupied, with the full accommodation complex expansion expected to be complete by the end of May 2024.
Goose Project accommodation complex overview – April 2024
B2Gold is expanding the existing diesel storage tank farms at the MLA and at the Goose Project site from 25 million liter capacity to more than 80 million liters. This increase requires the addition of three more tanks at each site. All the steel required to complete the tank expansion is present at each site, and construction crews have commenced assembling the tank bases. These tanks will be complete by the end of August 2024 to receive the sealift shipment of fuel that will sustain the project through the end of construction and into production in 2025.
The mill construction remains on schedule (with certain items ahead of schedule) with work ongoing on various facilities related to concrete, steel erection and building cladding. Installation of the ball mill is progressing ahead of schedule with the installation of all shell sections, feed/discharge heads, trunnion, pinion and bearings having been completed.
The primary pond will provide contact water storage as well as store reclaimed water during the first year of processing operations. It is critical for the primary pond to receive water in 2024 for mill start-up and commissioning. The facility embankment includes a frozen core that requires a below grade cut-off trench to be constructed during the winter months. The cut-off trench was successfully completed in April 2024. Phase 2 of the embankment will be completed during summer 2024.
Development of the open pit and underground is slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and prioritization of critical path construction activities. The current schedule indicates that an additional three months of mining must be added to the schedule to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit. With the schedule change, the mill is now scheduled to produce first gold in the second quarter of 2025 with ramp up to full production in the third quarter of 2025 (one quarter later than previous estimates). This does not impact the other facets of the project and staffing tables have been adjusted to ensure that capital is conserved. With the updated schedule, the Company estimates that gold production in calendar year 2025 will be between 120,000 ounces and 150,000 ounces (previously estimated to be between 220,000 ounces and 260,000 ounces). The reduction in estimated gold production in 2025 is predominantly due to the deferral of an anticipated 100,000 ounces of quarterly gold production from the fourth quarter of 2025 into the first quarter of 2026. Importantly, the updated mining schedule does not impact the total number of gold ounces the Company expects to produce over the life of mine of the Goose Project. The updated production profile has resulted in the Company now estimating that average annual gold production from 2026 to 2030 will increase to be in excess of 310,000 ounces per year (previously estimated at 300,000 ounces per year).
After completing a detailed design review of the Goose Project, B2Gold announced in January 2024 a revised construction capital estimate to C$1,050 million. In addition, before first gold production the Company estimated it will spend an additional C$200 million on underground development, deferred stripping and sustaining capital, as well as an additional C$205 million for fuels, reagents, and other working capital items necessary to build up site inventory levels due to the seasonality of the project logistics. As of December 31, 2023, approximately C$683 million had been spent on construction and mine development activities and C$44 million for the build-up of supplies inventory. In the first quarter of 2024, the Company incurred $117 million (C$158 million) for the Goose Project on construction and mine development activities and $2 million (C$3 million) on supplies inventory. As at March 31, 2024, approximately C$841 million in cash expenditures had been spent on construction and mine development activities and C$47 million on supplies inventory. Given the activities completed through March 31, 2024, the incorporation of the new mining schedule, and the successful completion of the 2024 WIR campaign, the Company is in the process of completing a new review of the total cost to be incurred before first gold production. The updated total cost estimate is anticipated to be completed in June 2024. As a result of construction activities being on schedule (and in certain areas ahead of schedule), and the updated first gold