B2Gold Corp. Reports Strong First Quarter 2017 Gold Production Results; Fekola Project Mine Construction Remains on Target for an October 2017 Production Start
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News Release
B2Gold Corp. Reports Strong First Quarter 2017 Gold Production Results;
Fekola Project Mine Construction Remains on Target for an October 2017 Production Start
Vancouver, April 19, 2017 – B2Gold Corp. (TSX: BTO, NYSE MKT: BTG, NSX: B2G) (“B2Gold” or
the “Company”) is pleased to announce its gold production and gold revenue for the first quarter of 2017.
All dollar figures are in United States dollars unless otherwise indicated.
2017 First Quarter Highlights
• Consolidated gold production of 132,736 ounces, 6% (or 7,955 ounces) above budget and 4% (or
4,892 ounces) higher than the same period in 2016
• Consolidated gold revenue of $146.3 million on sales of 119,937 ounces at an average price of $1,219
per ounce
• Company is on track to meet its 2017 annual guidance of between 545,000 to 595,000 ounces of gold
production
• Fekola Project mine construction remains 3 months ahead of schedule for an anticipated October 1,
2017 production start and remains on budget
• On March 29, 2017, received the 2016 Award for “Friend of the Environment” and the 2016 Award
for “Exporter of the Year” in Nicaragua
Gold Production
Consolidated gold production in the first quarter of 2017 was 132,736 oun ces, 6% (or 7,955 ounces)
above budget and 4% (or 4, 892 ounces) higher than the first quart er of 2016. Gold production from the
Company’s Masbate, Otjikoto and La Libertad mines all exceeded expectations. The Otjikoto Mine had a
very strong start to the year with first quarter gold production of 42,774 ounces, significantly above
budget by 20% (or 7,082 ounces) and also 20% (or 7,07 1 ounces) greater than the first quarter of 2016.
The Masbate Mine also continued its very stro ng operational performance producing 52,562 ounces of
gold, 5% (or 2,569 ounces) above budget and comparable with the prior-year quarter.
For full-year 2017, B2Gold is projecting another y ear of growth with consolidated gold production
expected to be in the range of between 545,000 a nd 595,000 ounces (including estimated pre-commercial
production from Fekola of between 45,000 and 55, 000 ounces). Based on Fekola’s current mine
construction progress, the Fekola Project remains 3 m onths ahead of schedule and is planning for an
October 1, 2017 production start. Gold production in 2017 is anticipated to be weighted towards the
second half of the year (57%) due to the anticipated start-up of Fekola on October 1, 2017 combined with
lower expected average strip ratios in the second-half.
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For full-year 2017 (including the Fekola pre-commerc ial production period), consolidated cash operating
costs (see “Non-IFRS Measures”) are expected to be between $610 and $650 per ounce and all-in-
sustaining costs (“AISC”) (see “Non-IFRS Measures”) are expected to be between $940 and $970 per
ounce. In comparison to 2016, 2017 forecast sustaining capital expenditures are anomalously high as a
result of Masbate’s planned mining fleet replacement and expansion and as a result of anticipated higher
average strip ratios at Otjikoto (which are expected to be lower in 2018 and 2019). Consolidated cash
operating costs per ounce and AISC per ounce are exp ected to be lower in the second-half of 2017
compared to the first-half, reflecting higher expected gold production, lower expected average strip ratios,
and lower capital expenditures in the second-half.
Looking forward to 2018, with the planned first full- year of production from the Fekola Project (based on
current assumptions and updates to the Company’s long- term mine plans), the Company is projecting its
consolidated gold production to increase signifi cantly and to be between 900,000 and 950,000 ounces.
The Fekola Project is expected to be a large lo w-cost producer and should enable the Company to
significantly reduce its forecast longer term cash operating costs per ounce and AISC per ounce. The
Company’s forecast consolidated cash operating costs per ounce and AISC per ounce are expected to
decrease in 2018 (compared to 2017) and be comparab le to the Company’s 2016 revised cost guidance
ranges (of $500 to $535 per ounce for cash operating costs and $780 to $810 per ounce for AISC).
Gold Revenue
Consolidated gold revenue in the first quarter of 2017 was $146.3 million on sales of 119,937 ounces at
an average price of $1,219 per ounce compared to $144.3 million on sales of 120,899 ounces at an
average price of $1,193 per ounce in the first quart er of 2016. The 1% increase in gold revenue was
mainly attributable to a 2% increase in the average realized gold price, partially offset by a 1% decrease
in gold sales volume. The decrease in gold sales volume was due to the timing of gold shipments.
Consolidated gold revenue in the first quarter of 2017 included $15 million related to the amortization of
the “Prepaid Sales Liability” (deferred revenue) associated with the Company’s Prepaid Sales transactions
entered into in March 2016. During the quarter, 12,908 ounces of gold were delivered under these
contracts.
Operations
Mine-by-mine gold production in the first quarter of 2017 was as follows:
Mine
Q1 2017
Quarterly
Gold Production
(ounces)
2017
Annual
Production Guidance
(ounces)
Masbate 52,562 175,000 – 185,000
Otjikoto 42,774 165,000 – 175,000
La Libertad 28,539 110,000 – 120,000
Limon 8,861 50,000 – 60,000
Subtotal 132,736 500,000 – 540,000
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Fekola (pre-commercial) - 45,000 – 55,000
B2Gold Consolidated 132,736 545,000 – 595,000
Masbate Gold Mine - Philippines
The Masbate Mine in the Philippines continued its ve ry strong operational performance into the first
quarter of 2017 producing 52,562 ounces of gold, 5% (or 2,569 ounces) above budget and comparable
with the prior-year quarter. Gold production improved against budget mainly due to higher-than-expected
throughput and recoveries mainly driven by highe r-than-budgeted oxide ore from the Colorado Pit. As
mining advances in the Colorado Pit, the trend of mo re oxide ore than modelled has continued. As a
result, oxide feed material accounted for 42% of the to tal milled tonnes in the quarter compared to budget
of 20% (with the remaining amount consisting of tr ansitional to sulfide material). The higher mill
recoveries in the quarter also reflected the ongoing benefits from the recent CIL circuit upgrade, tracking
slightly ahead of expectations. The Masbate Mine also continued its strong safety performance, extending
the number of days without a “Lost-Time-Injury” to 535 days at the end of the first quarter of 2017.
Mill throughput in the quarter was 1,704,001 tonn es compared to budget of 1,645,473 tonnes and
1,785,891 tonnes in the first quarter of 2016. Mill throughput exceeded budget as a result of the softer ore
conditions (due to the higher-tha n-budgeted oxide blend) and a re duction in planned downtime. In
February, a planned plant maintenance shutdown was co mpleted more quickly than anticipated (in 8 days
instead of the estimated 10 days). Mill throughput w as lower compared with the prior-year quarter as a
result of the February maintenance shutdown. Mill recoveries averaged 74.8% which was better than
budget of 73.3% and 72.9% in the first quarter of 2 016. The improved recoveries in the quarter reflect
both the higher-than-budgeted oxide blend and the bene fit of the process improvements as part of the
Masbate plant upgrade which came on line on June 29, 2016. The average grade processed was 1.28 g/t,
comparable to budget and slightly higher compared to 1.26 g/t in the first quarter of 2016.
For full-year 2017, the Masbate Mine is forecast to produce between 175,000 to 185,000 ounces of gold
at cash operating costs of between $690 to $730 per ounce and AISC of between $1,020 and $1,050 per
ounce. Masbate’s forecast 2017 AISC includes the planned mine fleet replacement and expansion costs.
Since the new fleet will commence utilization in 2017, all of the related equipment purchase costs have
been included in Masbate’s 2017 forecast AISC (even though the equipment will benefit Masbate
operations in future years as well). Masbate’s mi ne equipment purchases are planned to significantly
decrease in 2018.
As previously reported by the Company on September 27, 2016, October 18, 2016 and in its MD&A for
the year ended December 31, 2016, the Philippine Department of Environment and Natural Resources
(the “DENR”) announced the preliminary results of mini ng audits carried out by the DENR in respect of
all metallic mines in the Philippines and issued the Ma sbate Mine audit report which contains the detailed
findings from the audit and directed the Company to provide explanations and comments in response to
the audit findings as described in its previous disclosures. The Company provided a comprehensive
response to the findings and recommendations in th e audit, which the Company believes addresses the
issues raised. As reported by the Company on Februa ry 2, 2017, the DENR has announced further results
of its mining audit and the Masbate Mine was not am ong the mines announced to be suspended or closed.
To date the Company has not received any updated formal written response from the DENR confirming
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the results of the audit in respect of Masbate and as such, the final outcome of the audit has not been
determined. The Company believes that it continues to be in compliance with Philippine’s laws and
regulations. The Company continues to work closel y with the DENR to maintain compliance with
regulations and continues to promote improved quality of life in the communities where it operates. The
Company will continue to provide updates of its progress with the DENR. Operations remain
uninterrupted at the mine and the projections and guidance for the Masbate Mine and the Company on a
consolidated basis are provided on this basis.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia also had a very strong start to the year with first quarter gold production of
42,774 ounces, significantly above budget by 20% (o r 7,082 ounces) and also 20% (or 7,071 ounces)
greater than the first quarter of 2016. The increase over both budget and the prior-year quarter was mainly
due to better-than-expected grade and ore tonnage fr om the new Wolfshag Phase 1 Pit and increased high
grade ore tonnage from the bottom of the Otjikot o Phase 1 Pit, accompanied by smaller gains from
improved plant performance.
The average grade processed in the quarter was 1.62 g/t, compared to budget of 1.39 g/t and 1.37 g/t in
the first quarter of 2016. To date there has been a positive reconciliation in te rms of both grade and ore
tonnage from the oxide portion of the Wolfshag Phase 1 Pit versus the resource model. As a result,
processed ore from Wolfshag was approximately 230,000 tonnes at a grade of 1.90 g/t versus a budget of
84,000 tonnes at a grade of 1.41 g/t. In addition, high grade ore from the bottom of the Otjikoto Phase 1
Pit (carried over from the fourth quarter of 2016 and into the first quarter of 2017, both from stockpiles
and pit production) also exceeded expectations. Processed high grade ore from the Otjikoto Phase 1 Pit
was approximately 380,000 tonnes at a grade of 1.90 g/t versus a budget of 355,000 tonnes at a grade of
1.70 g/t. The Otjikoto Phase 1 Pit was completed by mid-January. Mill throughput for the quarter was
832,805 tonnes compared to a budget of 814,680 tonnes and 822,602 tonnes in the first quarter of 2016.
Mill recoveries remained high and averaged 98.6%, ex ceeding the budget of 98.0% and 98.5% in the first
quarter of 2016.
Life-of-mine production plans for the Otjikoto Mine , incorporating preliminary projections for the
Wolfshag open pit and underground mines, have been completed for various options and will be further
refined as the detailed geotechnical, hydrogeological, a nd design studies are completed, expected at the
end of the third quarter of 2017. Ongoing studies are leading the Company to re-evaluate the open pit and
underground interface.
For full-year 2017, the Otjikoto Mine is forecast to produce between 165,000 and 175,000 ounces of gold
at cash operating costs of between $510 and $550 pe r ounce. Forecast gold production at Otjikoto is
expected to be weighted towards the second-half of the year as Wolfshag Phase 1 and Otjikoto Phase 2
pits reach higher grade and lower st rip ratio benches. Otjikoto’s forecast 2017 AISC are expected to be
between $855 and $885 per ounce, refl ecting higher projected strip ratios at the new Otjikoto Phase 2 and
Wolfshag Phase 1 pits. The average strip ratios at Otjikoto are expected to be lower in 2018 and 2019.
La Libertad Gold Mine - Nicaragua
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Gold production at La Libertad Mine in Nicaragua was 28,539 ounces in the first quarter of 2017, slightly
above budget (by 550 ounces) and comparable with th e prior-year quarter. Mill throughput, recoveries
and processed grade were all slightly above budget . The mill continued to operate well, processing
561,152 tonnes (Q1 2016 – 576,487 tonnes) in the quarter at an average grade of 1.67 g/t (Q1 2016 – 1.66
g/t) with gold recoveries averaging 94.5% (Q1 2016 - 94.7%). The Jabali Central open pit continues to be
the primary source of ore for La Libertad, as Mojon Underground continues to ramp up.
Resettlement and permitting activities continue at th e high grade Jabali Antenna Pit. However, the
Company has recently changed its planned sequencing for bringing the Jabali Antenna Pit into the mine
plan (originally forecast to enter the production stream in the third quarter of 2017). Given the delays in
resettlement at Jabali Antenna (which have been ou t of the Company’s control), the Company is now
focused on bringing the San Juan Pit into production earlier than planned and ahead of Jabali Antenna. An
internal study was recently completed that deemed San Juan to be a viable open pit operation. As a result,
mine plans for San Juan have been reconfigured fo r open pit mining, allowing it to advance to production
as early as the third quarter of 2017 (subject to the r eceipt of mine permits). Development and related
permitting activities also continue for other areas. Road access at a small pit, El Salto, located west of
Mojon, is currently under construction. Jabali Ante nna underground development is also underway with
the portal established and the ramp work now advanci ng. Permitting for the western area of this mine is
now in process.
On March 29, 2017, the Company was presented with 2 awards from the Association of Producers and
Exporters of Nicaragua with respect to its La Libertad operations. The Company received the 2016 Award
for “Friend of the Environment”, related to environmental stewards hip in water management, and the
2016 Award for “Exporter of the Year”, for being the largest single exporting company in Nicaragua.
For full-year 2017, La Libertad Mine is forecast to produce between 110,000 and 120,000 ounces of gold
at cash operating costs of between $625 and $665 per ounce and AISC of between $785 and $815 per
ounce.
El Limon Gold Mine - Nicaragua
El Limon Mine in Nicaragua continued to underperform in the first quarter with gold production of 8,861
ounces, 2,246 ounces below budget and 1, 355 ounces lower than the same quarter last year. The primary
cause of the shortfall was lower pr ocessed grade which was 2.41 g/t versus a budget of 2.99 g/t and 2.92
g/t in the first quarter of 2016. Limon’s production c ontinued to be negatively affected by mine fleet
availability limitations and water control issues wh ich reduced high grade ore flow from Santa Pancha
Underground. As a result, mill feed was supplemented with smaller volumes of lower grade ore recovered
from surface stockpiles and purchased (small miner) high grade ore. To improve overall mine
performance, additional mining equipment has been purchased and delivered, and the mine development
contractor has accelerated operations. For Santa Pa ncha 1 Mine, the deep well is being reamed and
relined, and is expected to be operational in May. The auxiliary dewatering system has been improved but
the deep well is essential in order to develop the higher grade stopes. Tonnage milled for the quarter was
122,856 tonnes compared to budget of 123,701 tonnes and 116,481 tonnes in the first quarter of 2016.
Mill recoveries averaged 92.9% compared to budget of 93.5% and 93.6% in the first quarter of 2016.
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Surface development for the Mercedes Pit is advanc ing, and the Environmental Impact Assessment
(“EIA”) is ready for submission. The EIA for Veta Nueva, the next underground mine, is also ready for
submission. An underground contractor has been selected and surface preparations started.
For full-year 2017, El Limon is expected to produ ce between 50,000 and 60,000 ounces of gold at cash
operating costs of between $655 and $695 per ounce a nd AISC between $1,065 and $1,095 per ounce. As
a result of the operational improvements being impl emented (as discussed above), the Company believes
that El Limon Mine remains on track to meet its full-year 2017 production guidance.
Development
Fekola Development Project - Mali
The Fekola Project mine construction remains approxima tely 3 months ahead of schedule and on target
for an October 1, 2017 production start. The Fekola Project remains on budget and is expected to be a
large low-cost producer and should enable the Comp any to significantly reduce its longer term cash
operating costs per ounce and AISC per ounce.
In the first quarter of 2017, the B2Gold constructio n team continued to develop the Fekola Project in
Mali. At the end of the first quarter, the project wa s approximately 75% complete with civil earthworks
construction and process plant construction approximately 91% and 54% complete, respectively.
Development of the open pit continued to progress ahead of schedule, with a total of 2.6 million tonnes of
waste and 200,000 tonnes of ore mined during the quar ter. The first phase of the mining fleet, including
six CAT 777E haul trucks and two CAT 6020B excavators, is in opera tion. Through the quarter average
daily mining rates have increased from 25,000 tonnes to 42,000 tonnes. The second grade control drilling
campaign commenced in the third week of March 2017.
Installation of the ball and SAG mills at the process plant commenced in February 2017, following arrival
and preparation of the components in January 2017. C oncrete progress and structural steel erection at the
mill is approximately 99% and 94% co mplete, respectively. Concrete work and platework at the primary
crusher and stockpile feed conveyor has been complete d while approximately 80% of the structural steel
at the primary crusher has been erected. Installati on of pipe supports, pipework, mechanical equipment
and electrical cables continued site wide. Instrument ation installation at the leach and CIP tanks, leach
thickener and tailings thickener also commenced during the quarter.
Construction and lining of the s ite ponds with high density polyeth ylene (“HDPE”) geomembrane has
been completed. Underground utility installation in cluding fresh water, sewage lines, and fire water
continued throughout the plant site. Erection of the various buildings around site also commenced, with a
completion rate of approximately 35% at the end of the quarter.
Earthworks construction of the phase 1 tailings stor age facility (“TSF”) embankment has been completed
and HDPE lining of the facility is 100% complete. Th e network of under-drains in the basin of the TSF,
which aids in consolidation of the tailings and extending the life of the facility, has also been completed.
The first of the three decant structures, designed to return water back to th e process plant, has been
finished along with the decan t access road above the HDPE liner. The TSF and the site water
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management structures are approximately 98% and 93% complete, respectively. Construction of the run
of mine (ROM) pad continued through the quarter with over 1,700,000 m 3 of material placed to date and
750,000 m3 of material placed in the quarter.
The manpower on site saw an increase through the firs t quarter with an average of 1,050 employees and
contractors.
About B2Gold
Headquartered in Vancouver, Canada, B2Gold Corp . is one of the fastest-growing intermediate gold
producers in the world. Founded in 2007, today, B2Gold has four operating mines, one mine under
construction and numerous e xploration projects in various countries, including Finland, Nicaragua, the
Philippines, Namibia, Mali and Burkina Faso. Constr uction of B2Gold’s Fekola mine in southwest Mali
is approximately 3 months ahead of schedule and on budget, and is projected to commence production on
October 1, 2017. As a result, B2Gold is well positione d to maintain its low-cost structure and growth
profile.
Based on current assumptions and updates to B2Gold’s current year guidance and long-term mine plans,
the Company is projecting consolidated gold pr oduction in 2017 of between 545,000 and 595,000 ounces
(including estimated pre-commercial production from Fekola of between 45, 000 and 55,000 ounces); and
in 2018 significantly increasing to between 900,000 a nd 950,000 ounces, with the inclusion of the
anticipated first full-year of commercial production at the Fekola mine.
Qualified Person
Peter D. Montano, P.E., the Project Director of B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information contained in this news release.
First Quarter 2017 Financial Results - Conference Call Details
B2Gold Corp. will release its first quarter 2017 resu lts before the North American markets open on
Thursday, May 4, 2017.
B2Gold executives will host a conference call to di scuss the results on Thursday, May 4, 2017, at 10:00
am PDT / 1:00 pm EDT. You may access the call by dialing the operator at +1 416-406-0743 or toll free
at +1 800-806-5484 prior to the scheduled start time (passcode: 6214960#) or you may listen to the call
via webcast by clicking: http://www.investorcalendar.com/IC/CEPage.asp?ID=175781. A playback
version of the call will be available for one week afte r the call at +1 905-694-94 51 or toll free at +1 800-
408-3053 (passcode: 8848107#).
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:
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Ian MacLean Katie Bromley
Vice President, Investor Relations Manage r, Investor Relations & Public Relations
604-681-8371 604-681-8371
[email protected] [email protected]
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
This news release includes certain “forward-looking information” and “forward-looking statements” (collectively
“forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation,
including projections, estimates and other statements regarding future financial and operational performance,
events, production, mine life, revenue, co sts, capital expenditure s, investments, budgets, ore grades, sources and
types of ore, stripping ratios, throughput, cash flows and growth; production estimates and guidance, including the
Company’s projected gold production of between 545,000 to 595,000 ounces in 2017 and production being
weighted towards the second half of 2017 and projected gold production of between 900,000 and 950,000 ounces in
2018; and statements regarding anticipated explora tion, development, constructio n, production, permitting and
other activities and achievements of the Company, including: expected grades and sources of ore to be processed in
2017; the development and production from the Fekola Project by October 2017 and the Fekola Project being
ahead of schedule and on budget; the Fekola Mine being a low cost mine and its anticipated effect on the
Company’s gold production and per ounce costs; completion of geotechnical, hydrogeological and design studies
for the Wolfshag zone in 2017 and the expected re-evaluation of the open pit and underground interface; the
projections included in existing technical reports, economic assessments and feasibility studies; the results of the
ongoing study to assess the economic viability of an open pit operation at San Juan being expected in mid-2017, and
other anticipated or potential new technical reports and studies, including the potential findings and conclusions
thereof; the resolution of the audit by the DENR in relation to the Masbate Mine and the final outcome thereof;
expected replacement and expansion of the Masbate Mine fleet and the expected decrease in equipment purchases at
Masbate in 2018; the completion of permitting and resettlement activities in respect of the Jabali Antenna Pit;
production from the Jabali Antenna Pit in the third quarter of 2017; expectations regarding operations at La
Libertad and the potential to extend operations beyond the current mine plan; Veta Nueva being the next
underground mine of the Company; well work at El Limon Mine; and activities to advance new areas of or near El
Limon Mine. All statements in this news release that address even ts or developments that we expect to occur in the
future are forward-looking statements. Forward-looking statements are statements that are not historical facts and
are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”,
“target”, “potential”, “schedule”, “f orecast”, “budget”, “estimate”, “i ntend” or “believe” and similar
expressions or their negative connota tions, or that events or conditions “will”, “would”, “may”, “could”,
“should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made. Forward-looking statements necessarily involve assumptions,
risks and uncertainties, certain of which are beyond B2Gold’s control, including risks associated with the volatility
of metal prices and our common shares; risks and dangers inherent in exploration, development and mining
activities; uncertainty of reserve and resource estimates; ri sk of not achieving production, cost or other estimates;
risk that actual prod uction, development plans and co sts differ materially from th e estimates in our feasibility
studies; risks related to hedging activities and ore purchase commitments; the ability to obtain and maintain any
necessary permits, consents or authorizations required for mining activities; uncerta inty about the outcome of
negotiations with the Government of Mali; risks related to environmental regulations or hazards and compliance
with complex regulations associated with mining activities; the ability to replace mineral reserves and identify
acquisition opportunities; unknown liabiliti es of companies acquired by B2Go ld; ability to succe ssfully integrate
new acquisitions; fluctuations in exchange rates; availability of financing; risks relating to financing and debt; risks
related to operations in foreign countries and compliance w ith foreign laws; risks related to remote operations and
the availability adequate infrastructure, fluctuations in pr ice and availability of energy and other inputs necessary
for mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory,