B2Gold Corp. Reports Record Quarterly Total Gold Production of 262,632 Oz and Record Quarterly Gold Revenue of $380 M from its Mines for the First Quarter of 2020; Remains on Track to Meet Annual Guidance of 1,000,000 to 1,055,000 Oz of Total Gold Production
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News Release
B2Gold Corp. Reports Record Quarterly Total Gold Production of 262,632 Oz and
Record Quarterly Gold Revenue of $380 M from its Mines for the First Quarter of 2020;
Remains on Track to Meet Annual Guidance of 1,000,000 to 1,055,000 Oz of Total Gold Production
Vancouver, April 8, 2020 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announce its gold production and gold revenue for the first
quarter of 2020. All dollar figures are in United States dollars unless otherwise indicated.
The Company is continuing to focus on its COVID-19 response measures and to date has not experienced
any incidents of the COVID-19 virus at its sites or corporate offices. B2Gold places the safety and wellbeing
of its workforce as the highest priority and continues to encourage input from all its stakeholders as the
situation continues to evolve, including cooperation from all levels of government in Mali, Namibia, the
Philippines and Colombia.
2020 First Quarter Highlights
• Consolidated gold production of 250,63 2 ounces, well-above budget by 7% ( 16,156 ounces) and a
significant increase of 25% (50,0 90 ounces) over the first quarter of 2019 (excluding discontinued
operations) with solid performances from all the Company’s operations (all exceeding their targeted
production for the quarter)
• Record quarterly t otal gold production of 262,63 2 ounces (including 12,000 ounces of estimated
attributable gold production from Calibre)(1)
• Record quarterly consolidated gold revenue from its three operating mines of $380 million, a significant
increase of 44% ($116 million) over the same period last year (excluding discontinued operations)
• Fekola Mine achieved record quarterly production of 164,01 1 ounces, well -above budget by 9%
(14,011 ounces) and significantly higher by 49% (53,662 ounces) over the first quarter of 2019
• Otjikoto Mine continued its remarkable safety performance, extending the number of days without a
Lost-Time-Injury to 733 days (approximately 2 years or over 6 million man-hours) at the end of the
first quarter of 2020
• The Company started the year with approximately $140 million in cash and cash equivalents and has
continued to add to its consolidated cash position during the quarter; the Company’s cash position as
at March 31, 2020 will be reported on May 5, 2020
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• On April 8, 2020, the Company completed the draw-down of an additional $250 million on its revolving
credit facility (“RCF”), bringing the total amount drawn to $425 million (total available facility $600
million); this draw-down is purely precautionary in nature. Based on current assumptions, the Company
still expects to have the option to repay the entire drawn RCF balance during the year and finish 2020
in a strong net positive cash position
• B2Gold remains well positioned for continued strong operational and financial performance . Total
consolidated production guidance remains at between 1,000,000 and 1,055,000 ounces of gold ;
consolidated cash operating costs are forecast to be between $415 and $455 per ounce (see “Non-IFRS
Measures”) and consolidated all-in sustaining costs (“AISC”) (see “Non-IFRS Measures”) are forecast
to be between $780 and $820 per ounce.
• Based on current assumptions, including a gold price of $1,500 per ounce for the balance of 2020, the
Company expects to generate cashflows from operating activities of more than $700 million in 2020
• Based on the Company’s current life of mine plans, from the five-year period from 2020 to 2024, annual
consolidated gold production is forecast to aver age 950,000 ounces with AISC averaging $825 per
ounce
• In addition to sharing best practices and helping with COVID-19 risk mitigation, the Company is also
committed to providing financial assistance to both the local communities and to local and national
authorities in the countries in which it operates
(1) B2Gold applies the equity method of accounting for its approximate 34% ownership interest in Calibre
Mining Corp. (“Calibre”) and reports its attributable share of Calibre production ounces as part of its total
production results.
Gold Production
Consolidated gold production in the first quarter of 20 20 was 250,632 ounces, well-above budget by 7%
(16,156 ounces) and a significant increase of 25% (50,090 ounces) over the first quarter of 2019 (excluding
discontinued operations of El Limon and La Libertad which were sold on October 15, 2019 ) with solid
performances from all the Company’s operations which all exceed ed their targeted production for the
quarter. The significant increase in gold production over the first quarter of 2019 was driven by the Fekola
Mine in Mali which had a very strong start to the year with record first quarter gold production of 164,011
ounces, well-above budget by 9% (14,011 ounces) and 49% (53,662 ounces) higher compared to the first
quarter of 2019. Fekola’s significant increase in gold production over the first quarter of 2019 was mainly
due to expansion of the Fekola mining fleet and optimization of the pit designs and mine plan for 2020,
which have provided access to higher grade portions of the Fekola deposit earlier than anticipated in
previous mine plans.
Including attributable ounces from Calibre (estimated to be 12,000 ounces in the first quarter of 2020), the
Company’s total gold production in the first quarter of 2020 was a quarterly record of 262,632 ounces.
Based on current assumptions for 2020, B2Gold remains well positioned for continued strong operational
and financial performance. At the end of the first quarter of 2020, Calibre announced the temporary
suspension of its Nicaraguan operations due to COVID -19, creating uncertainty as to what portion of the
remaining forecasted production ounces from Calibre would be realized in 2020. However, given that the
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Company’s three operating mines are already 16,156 ounces ahead of budget at the end of the first quarter
of 2020, the Company has determined that its overall consolidated production and financial guidance should
be maintained. Therefore, total consolidated production guidance remains at between 1,000,000 and
1,055,000 ounces of gold; consolidated cash operating costs are forecast to be between $415 and $455 per
ounce and consolidated AISC are forecast to be between $780 and $820 per ounce.
The Company is continuing to implement enhanced comprehensive COVID -19 response measures
including the movement of people and goods, hygiene and cleanliness, social distancing and rem ote
working, isolation procedures at B2Gold sites in the event of higher risk personnel, working with
surrounding communities and contingency plans for potential disruptions including increases of supplies.
The Company is continually updating the plan and response measures based on the safety and wellbeing of
its workforce, the severity of the pandemic in areas where it operates, global response measures,
government restrictions and extensive community consultation. The Company is working closely with
national and local authorities and will be monitoring each site’s situation closely while ensuring the safe
operation of its mines.
In addition to sharing best practices and helping with risk mitigation, the Company is also committed to
providing financial ass istance to both the local communities and to local and national authorities in the
countries in which it operates. In Mali, B2Gold has earmarked $500,000 towards the COVID-19 response,
including funds needed for medical supplies. In the Philippines, B2Gold is working with the local
communities around the mine site, the local mayor and the governor of the region to assist families with
basic food and medical requirements, and is anticipating to use a portion of the 2020 budgeted $2.9 million
Social Development and Management Programs (“SDMP”) to assist with the COVID-19 response (subject
to standard approvals). In Namibia, B2Gold has earmarked $300,000 towards the COVID -19 response,
with a focus on hygiene, sanitation and food security within the urban townships.
Gold Revenue
Consolidated gold revenue in the first quarter of 2020 was a quarterly record of $380 million from its three
operating mines on sales of 239,500 ounces at an average price of $1,588 per ounce compared to $ 264
million on sales of 203,400 ounces at an average price of $1, 298 per ounce in the first quarter of 201 9
(excluding discontinued operations of El Limon and La Libertad which were sold on October 15, 2019) .
Compared to the first quarter of 2019, the significant increase in consolidated gold revenue of 44% ($116
million) was mainly attributable to a 22% increase in the average realized gold price and an 18% increase
in gold ounces sold. Despite the disruptions caused by the COVID-19 virus since March 2020, the Company
continues to successfully ship its gold bullion inventory to refineries.
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Operations
Mine-by-mine gold production in the first quarter of 2020 (including the Company’s estimated 34% share
of Calibre’s production) was as follows:
Mine
Q1 2020
Gold Production
(ounces)
2020 Forecast
Annual Gold Production
(ounces)
Fekola 164,011 590,000 - 620,000
Masbate 44,872 200,000 - 210,000
Otjikoto 41,749 165,000 - 175,000
B2Gold Consolidated (1) 250,632 955,000 – 1,005,000
Equity interest in Calibre (2)
(estimated) 12,000 45,000 - 50,000 (3)
Total 262,632 1,000,000 – 1,055,000 (3)
(1) “B2Gold Consolidated” - gold production is presented on a 100% basis, as B2Gold fully consolidates the
results of its Fekola, Masbate and Otjikoto mines in its consolidated financial statements (even though it does
not own 100% of these operations).
(2) “Equity interest in Calibre” - gold production in the first quarter of 2020 represents the Company’s
approximate 34% indirect share of the operations of Calibre’s El Limon and La Libertad mines. B2Gold
applies the equity method of accounting for its 34% ownership interest in Calibre.
(3) At the end of the first quarter of 2020, Calibre announced the temporary suspension of its Nicaraguan
operations due to COVID-19, however, given that the Company’s three operating mines are 16,156 ounces
ahead of budget at the end of the first quarter, the Company has determined that its overall guidance should
be maintained.
Fekola Gold Mine - Mali
The Fekola Mine in Mali had a very strong start to the year with record first quarter gold production of
164,011 ounces, well-above budget by 9% (14,01 1 ounces). This was mainly attributable to higher than
budget mined grade from Phase 4 of the Fekola Pit. Compared to the first quarter of 2019, gold production
was significantly higher by 49% (53,662 ounces), mainly due to expansion of the Fekola mining fleet and
optimization of the pit designs and mine plan, which have provided access to higher grade portions of the
Fekola deposit earlier than anticipated in previous mine plans.
For the first quarter of 2020, mill throughput was 1.75 million tonnes, exceeding budget by 2.5% and
comparable to the first quarter of 2019 (despite planned interruptions related to the ongoing mill expansion
project). The average grade processed was 3.11 grams per tonne (“g/t”), 7% higher than budget of 2.91 g/t
and 47% higher than the 2.11 g/t processed in the first quarter of 2019 (due to a decision to temporarily
mine higher grade areas in Phase 4 of the Fekola deposit earlier than anticipated in the 2020 mine plan in
order to supplement ore stockpiles ). Gold recoveries in the first quarter of 2020 averaged 94.0% ,
comparable to budget and the first quarter of 2019.
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Based on current assumptions, for full-year 2020, the low-cost Fekola Mine is expected to produce between
590,000 and 620,000 ounces of gold at cash operating costs of between $285 and $325 per ounce and AISC
of between $555 and $595 per ounce.
Fekola Mine Expansion
The Fekola Mine expansion project has progressed well in the first quarter of 2020 and is scheduled to be
completed by the end of the third quarter of 2020. Mining fleet expansion equipment started to arrive on
site ahead of schedule in January 2020 and ha s been commissioned in the first quarter of 2020. All mill
expansion materials have been ordered and have begun arriving at site. Installation of steel has commenced,
and a double tailings dam lift expansion is underway and is scheduled to be completed in the second quarter
of 2020.
Fekola Solar Plant
The Fekola solar plant engineering and construction has progressed well in the first quarter of
2020. However, due to issues related to COVID -19, the Company has made the decision to temporarily
suspend construction activities on the solar plant. Suspending the solar plant installation is not expected to
impact Fekola’s production guidance for 2020 and will increase availability at the Fekola camp to assist
mining operations in isolating more of the critical workforce on site and mitigate COVID-19 related travel
and quarantine restrictions. The Company expects the solar plant construction will be completed within six
months of the restart.
Masbate Gold Mine – the Philippines
The Masbate Mine in the Philippines continued to perform well through the first quarter of 2020, producing
44,872 ounces of gold, slightly above budget by 2% (782 ounces) , as higher -than-budgeted processed
grade/recovery more than offset lower-than-budgeted throughput (due to unbudgeted downtime for a SAG
mill inspection and reline, maintenance activities and a five day temporary suspension of mining activities
due to fuel shortage ). Ore grade, oxide ore tonnage and total ore tonnage mined from the Main Vei n Pit
were all better than modelled, resulting in higher -than-budgeted grade/recovery. Compared to the first
quarter of 2019, gold production was lower by 22% (12,609 ounces), as planned, mainly due to lower
budgeted grade.
For the first quarter of 2020, mill throughput was 1.87 million tonnes (compared to budget of 2.07 million
tonnes and 1.83 million tonnes in the first quarter of 2019). The average grade processed was 0.90 g/t
(compared to budget of 0.86 g/t and 1.32 g/t i n the first quarter of 2019) and gold recoveries averaged
83.2% (compared to budget of 76.8% and 73.6% in the first quarter of 2019). Oxide ore represented 23%
of the processed tonnage for the quarter (versus budget of 6% and 31% in the first quarter of 20 19). Ore
was mined from both the Main Vein and Montana pits in the quarter, with positive variances experienced
in Main Vein from unbudgeted ore backfill encountered in historic surface and underground mine workings.
Masbate’s gold production is scheduled to be weighted towards the second half of 2020 (54%), as higher-
grade ore from the new Montana Pit is forecast to be processed during the second half of the year. On March
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30, 2020, the Company announced that the Masbate Mine had temporarily switched to mining only in the
Montana Pit, using an estimated 50% of the mining fleet to comply with temporary quarantine measures
mandated by the Government of the Philippines. Since the announcement, the onsite workforce has
increased, and the Company is now operating in both the Montana and Main Vein pits. The Company has
determined that operating under this current temporary scenario for up to the next three months (including
drawing on stockpiles as needed) will not impact Masbate’s production forecast for the second quarter of
2020 nor its 2020 annual production guidance.
For full-year 2020, the Masbate Mine is expected to produce between 200,000 and 210,000 ounces of gold
in total from the Main Vein and Montana Pits, at cash operating costs of between $665 and $705 per ounce
and AISC of between $965 and $1,005 per ounce.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia also had a solid first quarter, producing 41,749 ounces of gold, 3% (1,363
ounces) above budget , as processed tonnes, grade, and recovery were all slightly better than budget.
Compared to the first quarter of 2019, gold production was significantly higher by 28% (9,037 ounces), due
to higher grade ore from the Wolfshag Pit (ore production from the pit resumed in the second half of 2019
following pre-stripping). The Otjikoto Mine continued its remarkable safety performance, extending the
number of days without a Lost -Time-Injury to 733 days (approximately 2 years or over 6 million man-
hours) as at March 31, 2020.
During the first quarter of 2020, the Otjikoto Mine processed 0.86 million tonnes ( compared to budget of
0.85 million tonnes and 0.80 million tonnes in the first quarter of 2019) at an average grade of 1.54 g/t
(compared to budget of 1.51 g/t and 1.29 g/t in the first quarter of 2019) and average gold recoveries of
98.4% (compared to budget of 98.0% and 98.6% in the first quarter of 2019).
The Namibian government has communicate d that it continues to support safe mining but has directed
mines to reduce staffing to minimal levels. The Company has accordingly implemented temporary
measures at the Otjikoto Mine to reduce employees active on site to the minimum levels required to
continue with mining and milling operations. In the short term, the Company has flexibility to access higher
grade areas in the Otjikoto Phase 2 and Wolfshag Phase 2 pits earlier than anticipated in the budgeted 2020
mining sequence. Therefore, t he Company is forecasting that operating under the reduced temporary
manpower scenario for up to the next three months (including drawing on existing stockpiles as needed)
will not impact Otjikoto’s production forecast for the second quarter of 2020 nor its 2020 annual production
guidance.
Based on current assumptions, for full-year 2020, the Otjikoto Mine is forecast to produce between 165,000
and 175,000 ounces of gold, from the Otjikoto and Wolfshag Pits, at cash operating costs of between $480
and $520 per ounce and AISC of between $1,010 and $1,050 per ounce.
Liquidity and Capital Resources
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B2Gold continues to maintain a strong financial position and liquidity. The Company started the year with
approximately $140 million in cash and cash equivalents and has continued to add to its consolidated cash
position during the first quarter of 2020. The Company continues to monitor the ongoing global impact of
the COVID-19 pandemic and has sought to increase its overall cash liquidity by retaining a significant
portion of cash generated from operations within cash and cash equivalents. Final reconciled cash balances
will be reported when the Company announces its first quarter of 2020 financial results on May 5, 2020.
During the first quarter of 2020, the Company paid dividends of approximately $10 million and repaid $25
million on its RCF, leaving an RCF outstanding balance of $175 million as at March 31, 2020.
As a precautionary measure and given the current uncertainty resulting from the COVID-19 pandemic, on
April 8, 2020, the Company completed the draw down of a further $250 million on its $600 million RCF,
resulting in a total revised draw n down balance of $425 million and available undrawn capacity of $175
million. The Company currently has no plans to utilize these funds for operating purposes given its strong
financial position or for acquisitions. The $250 million was drawn to provide additional liquidity flexibility
and assurance until the ultimate timing and outcome of the COVID-19 pandemic can be reasonably
determined. In addition, the Company continues to monitor a wide range of outcomes on its financial
position, including reviewing discretionary capital expenditures. At the present time, the Company has no
pending scheduled debt repayment other than normal scheduled repayments on its Caterpillar equipment
loan facilities nor any significant capital commitments.
Based on current assumptions, including the continued strong operating performance at each of the
Company’s mines and no other unforeseen work stoppages due to COVID-19, the Company still expects
to have the option to repay the entire drawn balance of $425 million under its RCF over the course of the
2020 fiscal year and finish 2020 in a strong net positive cash position.
About B2Gold Corp.
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in
2007, today , B2Gold has operating gold mines in Mali, Namibia and the Philippines and numerous
exploration and development projects in various countries including Mali and Colombia. B2Gold continues
to forecast consolidated gold production of between 1,000,000 and 1,055,000 ounces in 2020.
Qualified Persons
Bill Lytle, Senior Vice President of Operations, a qualified person under NI 43 -101, has approved the
scientific and technical information related to operations matters contained in this news release.
First Quarter 2020 Financial Results – Conference Call and Webcast Details
B2Gold will release its first quarter 2020 financial results after the North American markets close on
Tuesday, May 5, 2020.
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B2Gold executives will host a conference call to discuss the First Quarter 2020 Earnings on Wednesday,
May 6, 2020, at 10:00 am PDT/1:00 pm EDT. You may access the call by dialing the operator at +1 (647)
788-4919 (local or international) or toll free at +1 (877) 291 -4570 prior to the scheduled start time or you
may listen to the call via webcast by clicking: https://www.webcaster4.com/Webcast/Page/1493/34084. A
playback version will be available for two weeks after the call at +1 (416) 621-4642 (local or international)
or toll free at +1 (800) 585-8367 (passcode 9543136).
ON BEHALF OF B2GOLD CORP.
“Clive T. Johnson”
President and Chief Executive Officer
For more information on B2Gold please visit the Company website at www.b2gold.com or contact:
Ian MacLean Katie Bromley
Vice President, Investor Relations Manager, Investor Relations & Public Relations
+ 1 604-681-8371 +1 604-681-8371
[email protected] [email protected]
The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in
this news release.
Production results and production guidance presented in this news release reflect total production at the mines
B2Gold operates on a 100% project basis. Please see our Annual Information Form dated March 20, 2020 for a
discussion of our ownership interest in the mines B2Gold operates.
This news release includes certain “forward -looking information” and “forward -looking statements” (collectively
forward-looking statements”) within the meaning of applicable Canadian and United State s securities legislation,
including: projections; outlook; guidance; forecasts; estimates; and other statements regarding future or estimated
financial and operational performance, gold production and sales, revenues and cash flows, and capital costs
(sustaining and non-sustaining) and operating costs, including projected cash operating costs and AISC, and budgets
on a consolidated and mine by mine basis; the impact of the COVID-19 pandemic on B2Gold’s operations, including
any restrictions or suspensions w ith respect to our operations and the effect of any such restrictions or suspensions
on our financial and operational results; the ability of the Company to successfully maintain our operations if they
are temporarily suspended, and to restart or ramp -up these operations efficiently and economically, the impact of
COVID-19 on the Company’s workforce, suppliers and other essential resources and what effect those impacts, if they
occur, would have on our business, our planned capital and exploration expendit ures; future or estimated mine life,
metal price assumptions, ore grades or sources, gold recovery rates, stripping ratios, throughput, ore processing;
statements regarding anticipated exploration, drilling, development, construction, permitting and other activities or
achievements of B2Gold; and including, without limitation: B2Gold generating operating cashflows of approximately
$700 million in 2020; the anticipated repayment of the outstanding RCF balance in 2020 and the availability of the
facility; remaining well positioned for continued strong operational and financial performance for the remainder of
2020; projected gold production, cash operating costs and AISC on a consolidated and mine by mine basis in 2020,
including total consolidated gold production of between 1,000,000 and 1,055,000 ounces in 2020 with cash operating
costs of between $415 and $455 per ounce and AISC of between $780 and $820 per ounce; annual consolidated gold
production forecast to average 950,000 ounces between 2020 and 2024 w ith AISC averaging $825 per ounce; the
completion of the expansion at Fekola and the timing and results thereof; and B2Gold’s attributable share at El Limon