B2Gold Reports Continued Very Strong Second Quarter & First-Half 2018 Gold Production; Second Quarter Gold Production Doubles to 240,000 ounces; Gold Revenues Increase by $121 Million to $285 Million
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News Release
B2Gold Reports Continued Very Strong Second Quarter & First-Half 2018 Gold Production;
Second Quarter Gold Production Doubles to 240,000 ounces;
Gold Revenues Increase by $121 Million to $285 Million
Vancouver, July 11, 2018 – 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 second
quarter and first-half of 2018. All dollar figures are in United States dollars unless otherwise indicated.
2018 Second Quarter Highlights
• Record quarterly consolidated gold production of 240,093 ounces, a significant increase of 98% (or
118,645 ounces) over the same period last year and 7% (or 16,308 ounces) above budget, due to the
continued strong performances of the Fekola Mine in Mali, Masbate Mine in the Philippines and the
Otjikoto Mine in Namibia
• Consolidated gold revenue of $285 million, a significant increase of 73% (or $121 million) over the
same period last year
• Fekola Mine continued to operate above plan, producing 112,644 ounces of gold in the quarter, 11%
(or 11,225 ounces) above budget
• Based on Fekola’s strong year-to-date performance, Fekola’s annual production guidance has been
revised higher to be between 420,000 to 430,000 ounces of gold (original guidance was between
400,000 to 410,000 ounces)
• Masbate Mine continued its remarkable safety performance, extending the number of days without a
Lost-Time-Injury to 989 days at the end of the second quarter of 2018
• The 2018 Mali exploration budget has been increased by $4 million (from $15 million to $19
million), based on good drill results to date, to accelerate the current Fekola North Extension zone
drill program
2018 First-Half Highlights
• Record consolidated first-half gold production of 479,777 ounces, 7% (or 32,560 ounces) above
budget and 89% (or 225,593 ounces) higher than the first-half of 2017
• Record consolidated first-half gold revenue of $629 million on record sales of 480,575 ounces at an
average price of $1,309 per ounce
• B2Gold is well on target to achieve transformational growth in 2018 and has revised its annual gold
production guidance higher to between 920,000 and 960,000 ounces (original guidance was between
910,000 and 950,000 ounces) in 2018 at cash operating costs (see “Non-IFRS Measures”) of between
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$505 and $550 per ounce and all-in sustaining costs (“AISC”) (see “Non-IFRS Measures”) of
between $780 and $830 per ounce
Gold Production
With the new large, low-cost Fekola Mine now in full production (after achieving commercial production
on November 30, 2017), consolidated gold producti on in the second quarter of 2018 was a quarterly
record of 240,093 ounces, a significant increase of 98% (or 118,645 ounces) over the same period last
year and 7% (or 16,308 ounces) above budget. In its second full-quarter of commercial operations, the
new Fekola Mine continued to operate above plan , producing 112,644 ounces of gold in the second
quarter of 2018, 11% (or 11,225 ounces) above budget. Based on Fekola’s strong year-to-date
performance, the Company has re vised Fekola’s annual 2018 production guidance range higher to be
between 420,000 to 430,000 ounces of gold (origina l guidance range was between 400,000 to 410,000
ounces). The Masbate Mine and Otjikoto Mine also ha d another solid quarter with both mines exceeding
their targeted production levels for the quarter.
Consolidated gold production in the first-half of 2018 was 479,777 ounces, 7% (or 32,560 ounces) above
budget and 89% (or 225,593 ounces) higher than the first-half of 2017.
B2Gold remains well on target to ach ieve transformational growth in 2018. For full-year 2018, with the
planned first full-year of production from the Fekola Mi ne, consolidated gold production is forecast to be
between 920,000 and 960,000 ounces (revised higher fro m the original guidance range of between
910,000 and 950,000 ounces). Th is represents an increase in annual consolidated gold production of
approximately 300,000 ounces in 2018 from 2017. The Company’s forecast consolidated cash operating
costs are expected to remain low in 2018 and be between $505 and $550 per ounce and AISC are
expected to decrease by approximately 6% from 2017 and be between $780 and $830 per ounce.
With the Fekola Mine in production, the resulting incr ease in production levels combined with low costs
are projected to dramatically increase B2Gold’s production, revenues, cash from operations and cash flow
for many years, based on current assumptions (including a gold price assumption of $1,300 per ounce).
On average over the next three years, beginning in 2018, the Company is projecting per annum gold sales
revenues of approximately $1.2 billion, cash flow fr om operations of approxi mately $0.5 billion and a
significant increase in free cash flow (operating cash flows less investing cash flows).
Gold Revenue
Consolidated gold revenue in the second quarter of 2018 was $285 million on sales of 220,738 ounces at
an average price of $1,290 per ounce compared to $164 million on sales of 131,737 ounces at an average
price of $1,247 per ounce in the second quarter of 2017 . This significant increase in revenue of 73% (or
$121 million) was attributable to the new production from the Fekola Mine and a 3% increase in the
average realized gold price, partially offset by lo wer sales volumes due to the timing of gold shipments
from the Otjikoto and Masbate mines.
For the first-half of 2018, consolidated gold revenue was a record $629 million on record sales of 480,575
ounces at an average price of $1,309 per ounce compared to $311 million on sales of 251,674 ounces at
an average price of $1,234 per ounce in the first-half of 2017. This significant increase in revenue of
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103% (or $318 million) was attributable to the ne w production from the Fekola Mine, a 7% increase in
the average realized gold price and the positive imp act from the timing of gold shipments (including
27,450 ounces sold in the first quarter which relate d to Fekola’s December 31, 2017 finished gold
inventory).
Consolidated gold revenue in the three and six mont hs ended June 30, 2018 included $15 million and $30
million, respectively, related to the delivery of gold into the Company’s Prepaid Sales contracts
(accounted for as deferred revenue). During the thr ee and six months ended June 30, 2018, 12,908 ounces
and 25,816 ounces, respectively, were delivered under these contracts.
Operations
Mine-by-mine gold production in the second quarter and first-half of 2018 was as follows:
Mine Q2 2018
Gold Production
(ounces) (1)
First-Half 2018
Gold Production
(ounces)
2018
Annual Production
Guidance
(ounces) (1)
Fekola 112,644 226,786 420,000 - 430,000 (2)
Masbate 54,254 107,401 180,000 - 190,000
Otjikoto 40,678 80,177 160,000 - 170,000
La Libertad 21,408 40,775 110,000 - 115,000 (3)
El Limon 11,109 24,638 50,000 - 55,000 (3)
B2Gold Consolidated 240,093 479,777 920,000 - 960,000
(1) B2Gold’s Q2 2018 and first-half 2018 production results and 2018 annual production guidance are presented on a
100% basis.
(2) Based on Fekola’s strong year-to-date performance, the Company has revised Fekola’s production guidance range
higher to be between 420,000 to 430,000 ounces of gold (original guidance range was between 400,000 to 410,00
ounces).
(3) Based on the restricted production in Nicaragua for the month of June, La Libertad is now forecast to produce between
110,000 and 115,000 ounces of gold (original guidance was between 115,000 to 120,000 ounces) and El Limon is now
forecast to produce between 50,000 and 55,000 ounces of gold (original guidance was between 55,000 to 60,000
ounces) in 2018.
Fekola Gold Mine - Mali
In its second full-quarter of commercial operations (after achieving commercial production on November
30, 2017), the new Fekola Mine in Ma li continued to outperform budget, running above plan on mill feed
grade, throughput and recoveries. This resulted in the Fekola Mine producing 112,644 ounces of gold in
the second quarter of 2018, 11% (or 11,225 ounces) above budget. Mill feed grade, throughput and
recoveries were 2.77 grams per tonne (“g/t”) (compared to budget of 2.75 g/t), 1,330,038 tonnes
(compared to budget of 1,235,573 tonnes) and 95.3% (compared to budget of 92.7%), respectively. The
mining fleet has also performed well throughout the first- half of the year with total mined tonnage nearly
20% above budget. This added mining production allows for flexibilit y in developing the Fekola open-pit
phases and managing stockpiles. Current ore stockpiles, including both high and low-grade ore, contain
approximately 3.9 million tonnes averaging 2.0 g/t of gold. The low-grade ore stockpile is currently
scheduled to be processed near the end of the mine life. The Fekola Mine also continued its outstanding
safety performance, achieving 785 days without a Lost-Time-Injury by the end of the second quarter.
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For the first-half of 2018, the Fekola Mine produced 226,786 ounces of gold, above budget by 11% (or
22,453 ounces). To date (since the commencement of ore processing began in September 2017 to June 30,
2018), gold production from the Fekola Mine totaled 338,236 ounces (including 79,243 ounces of pre-
commercial production).
Based on Fekola’s strong year-to-date performan ce, the Company has revised Fekola’s production
guidance range higher to be between 420,000 to 430,0 00 ounces of gold (original guidance range was
between 400,000 to 410,000 ounces), at cash operating costs of between $345 and $390 per ounce and
AISC between $575 and $625 per ounce.
As recently announced (see news release dated 6/28/2018) , the 2018 Mali exploration budget has been
increased by $4 million (from $15 million to $19 million) to accelerate the current Fekola North
Extension zone drill program, which is extending and infilling mineral resources to the north of the main
Fekola deposit. The Company is increasing the number of diamond drills from the current five rigs to
eight rigs, as well as one reverse circulation rig an d one aircore rig. Exploration drilling of the Fekola
North Extension has now extended gol d mineralization over one kilometre north of the Fekola reserve pit
boundary. The drilling to date has i ndicated that the high-grade minera lized shoot in the Fekola reserve
deposit not only continues to be well mineralized over one kilometre to the north, but the shoot has now
been intersected higher up, closer to surface than originally projected in the Fekola North Extension zone.
These results and previous drill results indicate that the potential exists, subject to further drilling, to
significantly increase open-pit resources and reserves, north of the current Fekola open-pit reserve. The
Fekola North Extension remains open to the north. Du e to the increasing size of the mineralized area,
B2Gold now intends to release a new mineral resour ce for the Fekola deposit including a portion of the
Fekola North Extension early in the fourth quarter of 2018.
In addition, based on the positive exploration results to date, the Company’s in-house technical team is
conducting engineering and other technical studies to ascertain the potential to expand the current Fekola
Mine and mill facilities, and increase tonnage thro ughput, thereby increasing annual gold production, if,
as expected, a larger open-pit resource is confirmed by the current exploration and in-fill drilling. Results
of these studies are projected to be available by year-end 2018.
Masbate Gold Mine - Philippines
The Masbate Mine in the Philippines continued its strong operational performance through the second
quarter of 2018, producin g 54,254 ounces of gold, 25% (or 10,940 ounces) a bove budget and 9% (or
4,324 ounces) higher compared to the prior-year quarter. Gold production was significantly above budget
largely due to mining unexpected ore tonnage from back filled areas in the lower levels of the Colorado
Pit (that had historically been mined using underg round methods and not included in the Masbate open-
pit mine plan). This backfilled material is distinct from the in-situ ore, having higher than budgeted grade
and recoveries. The Masbate Mine also continue d its remarkable safety performance, extending the
number of days without a Lost-Time-Injury to 989 days at the end of the second quarter of 2018.
For the quarter, mill throughput was 1,686,716 tonn es (compared to budget of 1,664,828 tonnes and
1,824,714 tonnes in the second quarter of 2017) and gold recoveries averaged 77.3% (compared to budget
of 70.0% and 75.9% in the second quarter of 2017). Th e average grade processed was 1.29 g/t compared
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to budget of 1.16 g/t and 1.12 g/t in the second quarter of 2017. Oxide ore represented 59% of the
processed tonnage for the quarter versus a budget of 58%.
Year to date, gold production at the Masbate Mi ne was 107,401 ounces of gold, significantly above
budget by 19% (or 16,794 ounces) and 5% (or 4,909 ounces) higher than the first-half of 2017. The above
budgeted production was mainly due to the combinati on of higher than expected oxide ore tonnage (from
Vein 5 of the Colorado Pit) in the first quarter fo llowed by unexpected b ackfilled ore (from the lower
levels of the Colorado Pit), having higher grade and better recovery than the in-situ ore, in the second
quarter. Oxide ore represented 69% of the processed t onnage in the first-half of the year versus a budget
of 54%.
Based on Masbate’s strong year-to-date performan ce, the Company now expects full-year Masbate
production to be at or above the top end of its original annual production guidance range of between
180,000 and 190,000 ounces of gold (at cash operating costs of between $675 and $720 per ounce and
AISC of between $875 and $925 per ounce).
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia built on its strong firs t quarter performance with a similarly successful
second quarter, producing 40,678 ounces of gold, approximately in-line with budget and comparable with
the first quarter of 2017. The average grade processed in the quarter was 1.49 g/t, compared to budget of
1.56 g/t and 1.50 g/t in the second quarter of 20 17. Mill throughput for the quarter was 860,474 tonnes
compared to budget of 822,740 tonnes and 867,170 tonn es in the second quarter of 2017. Mill recoveries
remained high and averaged 98.7%, exceeding budget of 98.0% and 98.6% in the second quarter of 2017.
The grand opening for Otjikoto’s new Solar Plant was held on May 29, 2018, and is now providing
approximately 13% of the electric ity consumed onsite (a saving equi valent to the consumption of
approximately 700,000 litres of fuel from the date the plant came online in the second quarter).
For the first-half of 2018, the Otjikoto Mine produ ced 80,177 ounces of gold, above budget by 3% (or
2,459 ounces) and 4% (or 3, 760 ounces) lower than the first-half of 2017. In 2018, nearly all of the
processed ore will be sourced from the Otjikoto Pit. Development of the second phase of the Wolfshag Pit
continues, from which higher-grade ore production is expected in 2019.
For full-year 2018, the Otjikoto Mine is expected to produce between 160,000 and 170,000 ounces of
gold, primarily from the Otjikoto Pit, at cash operating costs of between $480 and $525 per ounce and
AISC of between $700 and $750 per ounce.
La Libertad Gold Mine - Nicaragua
In the second quarter of 2018, La Libertad Mine in Nicaragua produced 21,408 ounces of gold, 13% (or
3,297 ounces) below budget. Gold production and over all operations were improving, as expected, and
generally on budget through the end of May 2018 but roadblocks related to the current national political
unrest restricted the supply of key consumables (fuel and lime) during the month of June. During this
time the higher grade open-pit ore was replaced w ith lower-grade spent ore to reduce lime and fuel
consumption. The resulting head grade for the quarter was 1.25 g/t versus a budget of 1.45 g/t. The mill
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continues to operate well, with processing throughput at 564,143 tonnes and recovery at 95.1%, both
slightly better than budget.
Year-to-date, La Libertad Mine produced 40,775 ounces of gold, 12% (or 5,425 ounces) below budget.
Based on the Company’s original guidance, La Libertad Mine was projected to produce between 115,000
and 120,000 ounces in 2018 (representing 13% of B2 Gold’s projected 2018 consolidated gold
production), at cash operating costs of between $745 and $790 per ounce and AISC of between $1,050
and $1,100 per ounce. However, based on the restricted production for the month of June, La Libertad is
now projecting to produce between 110,000 and 115,000 ounces in 2018.
El Limon Gold Mine - Nicaragua
In the second quarter of 2018, El Limon Mine in Nicaragua produced 11,109 ounces of gold, 20% (or
2,845 ounces) below budget. Gold production was impacted by illega l road blockades during the month
of June. The blockades were related to local empl oyment issues for the community which have now been
resolved. In April and May 2018, prior to the recen t disruption, production from El Limon had continued
to improve, as expected, tracking at or better than budget. The budgeted improvements in April and May
2018 were as a result of measures put in place to impr ove maintenance and water management, as well as
the mining of the Mercedes open pit for the quarter.
Year-to-date, El Limon Mine produced 24,638 ounces of gold, 13% (or 3,721 ounces) below budget.
Based on the Company’s original guidance, El Limon Mine was projected to produce between 55,000 and
60,000 ounces of gold in 2018 (representing 6% of B2Gold’s projected 2018 consolidated gold
production), at cash operating costs of between $700 and $750 per ounce and AISC of between $1,135
and $1,185 per ounce. However, due to the illegal blockades in June 2018, El Limon is now forecasting
2018 annual production of between 50,000 and 55,000 ounces.
As a Canadian company, B2Gold believes in, a nd promotes, constructive dialogue for a peaceful
resolution of the current political situation in Nicar agua. The Company’s focus is to support its 3,000
direct and indirect employees, and their families, who have confirmed their desire to continue to work and
maintain stability within their communities as much as possible.
B2Gold has been operating in Nicaragua since 2009 a nd, as a responsible mining company, continues to
add value to the local communities and environmen t by generating sustainable socio-economic and
environmental benefits.
On February 23, 2018, the Company announced a po sitive initial open-pit Inferred Mineral Resource at
the newly-discovered Central zone of 5,130,000 tonn es at a grade of 4.92 g/t of gold, containing 812,000
ounces of gold (100% basis) (see news release dated 2/23/2018) . The Central zone, at its closest point, is
approximately 150 metres from El Limon mill facilit y, extending southeast and northwest, adjacent to
existing plant and administrative infrastructure. Mining this large, good grade resource has the potential to
decrease El Limon’s cash operating costs per ounce a nd AISC per ounce, and significantly extend the
mine life. The Company is currently conducting engineering and metallurgical studies on the Central zone
to evaluate the potential to expand the mill throug hput, thereby increasing annual gold production. Initial
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inhouse results indicate a robust case for economic expansion. The results from these studies are expected
to be released in the third quarter of 2018.
Outlook
Looking forward, the Company will remain focu sed on continuing its impressive operational and
financial performance from existing mines, payi ng down debt, pursuing expansion opportunities at
existing operations and continuing w ith aggressive exploration and deve lopment programs to unlock the
potential of its existing portfolio of properties.
About B2Gold
Headquartered in Vancouver, Canada, B2Gold Corp. is the world's new senior gold producer. Founded in
2007, today, B2Gold has five operating gold mines and numerous exploration and development projects
in various countries including Nicaragua, the Philippin es, Namibia, Mali, Burkina Faso, Colombia and
Finland.
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 rela ted to operations matters contained in this news
release.
Tom Garagan, Senior Vice President of Explorati on of B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information rega rding exploration matters contained in this news
release.
John Rajala, Vice President of Metallurgy of B2Go ld, a qualified person under NI 43-101, has approved
the scientific and technical information to El Limon development contained in this news release.
Second Quarter and First-Half 2018 Financial Results - Conference Call Details
B2Gold will release its second quarter and first-half 2018 results before the North American markets open
on Wednesday, August 8, 2018.
B2Gold executives will host a confer ence call to discuss the results on Wednesday, August 8, 2018,
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 http://www.investorcalendar.com/event/34218. A playback version of
the call 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 3098363).
ON BEHALF OF B2GOLD CORP.
“Clive T. Johnson”
President and Chief Executive Officer
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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
604-681-8371 604-681-8371
[email protected] [email protected]
The Toronto Stock Exchange and the NYSE American LLC neither approve nor disapprove the information
contained in this news release.
Production results and B2Gold’s guidance presented in this news release reflect the total production at the mines
B2Gold operates on a 100% basis. Please see our Annual Information Form, dated March 23, 2018 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 States securities legislation,
including projections, guidance, forecasts, estimates and other statements regarding future financial and
operational performance, events, growth, production, mi ne life, revenues and cash flows, including B2Gold’s
projected per annum gold sales revenues of approximately $1.2 billion, cash flow from operations of approximately
$0.5 billion and a significant increase in free cash flow over the next three years beginning in 2018, costs, including
projected cash operating costs and AISC and expected decrease of forecast consolidated cash operating costs and
AISC in 2018, capital expenditures, budgets, ore grades, s ources and types of ore, stripping ratios, throughput, ore
processing, production estimates and guidance, including B2Gold’s projected increase of gold production to
between 920,000 and 960,000 ounces in 2018 and such reflecting a production growth of approximately 300,000
ounces in 2018 from 2017; project-specific projections of gold production and costs; the increased production and
low costs from the Fekola Mine increa sing B2Gold’s production revenues, cash from operations and cash flow for
many years; and statements regardin g anticipated exploration, drilling, d evelopment, construction, production,
permitting and other activities and achievements of B2Gold, including but not limited to: expected grades and
sources of ore to be processed in 2018; the approximate amount and grade of ore stockpiles at the Fekola Mine and
the timing of processing such ore; the potential to signific antly increase open-pit resources and reserves, north of
the current Fekola open-pit reserve; the release of a new mineral resource for the Fekola deposit, the timing thereof
and such including a portion of the Fekola North Extension; the potential to expand the current Fekola Mine and
mill facilities and increase tonnage throughput, thereby increasing annual gold production and the results and
timing of B2Gold’s study thereof; a larger open-pit resource at the Fekola Mine being confirmed by the current
exploration and in-fill drilling; the Otjikoto new Solar Plant providing approximately 13% of the electricity
consumed on site; the potential to decrease El Limon’s cash operating costs per ounce and AISC per ounce, and to
significantly extend mine life by mining the Central zone; the Central zone and the potential to expand the mill
throughput thereby increase annual gold production, the results and timing of B2Gold’s study thereof and that
initial results of such studies indicate a robust case for economic expansion; B2Gold remaining focused on
continuing its impressive operational and financial performance from existing mines, paying down debt and
pursuing expansion opportunities at existing operations; and B2Gold continuing aggressive exploration and
development programs. Estimates of mi neral resources and reserves are also forward-looking statements because
they constitute projections regarding the amount of minerals that may be encountered in the future and/or the
anticipated economics of production, should a production decision be made. All statements in this news release that
address events or developments that we expect to occur in the future ar e 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”, “forecast”, “budget”,
“estimate”, “intend” or “believe” an d similar expressions or their negati ve connotations, or that events or