B2Gold Reports Q1 2023 Results; Cash Operating Costs and All-In Sustaining Costs Below 2023 Annual Guidance Ranges; Operating Cash Flow before Working Capital Adjustments of $223 million
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News Release
B2Gold Reports Q1 2023 Results; Cash Operating Costs and All-In Sustaining Costs Below 2023 Annual
Guidance Ranges; Operating Cash Flow before Working Capital Adjustments of $223 million
Vancouver, May 9, 2023 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold”
or the “Company”) announces its operational and financial results for the first quarter of 2023. All dollar
figures are in United States dollars unless otherwise indicated.
2023 First Quarter Highlights
• Total gold production of 266,856 ounces in Q1 2023, exceeding expectations to start 2023 :
Total gold production of 266,856 ounces, including 16,137 ounces of attributable production from
Calibre Mining Corp. ("Calibre" ). The Fekola Mine produced 165,864 ounces in the quarter,
benefitting from a favorable mine phasing sequence to start 2023 , with Phase 6 of the Fekola pit
providing high-grade ore to the process plant. All B2Gold operations are on track to meet or exceed
annual production guidance ranges. On April 27, 2023, Fekola produced its three millionth ounce
of gold, five years and seven months from construction completion.
• Total consolidated cash operating costs of $600 per gold produced in Q1 2023, well below the
annual guidance range (between $670 and $730 per ounce): Total consolidated cash operating
costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $600
per gold ounce produced during the quarter. Consolidated cash operating costs from the Company’s
three operating mines of $576 per gold ounce produced.
• Total consolidated all-in sustaining costs of $1,060 per gold ounce sold in Q1 2023, well below
the annual guidance range (between $1,195 and $1,255 per ounce ): Total consolidated all -in
sustaining costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre)
of $1,060 per gold ounce sold. Consolidated all -in sustaining costs from the Company’s three
operating mines of $1,049 per gold ounce sold, lower than expected as a result of lower cash
operating costs and the timing of sustaining capital expenditures that are expected to be incurred
later in 2023.
• Attributable net income of $0.08 per share; Adjusted attributable net income of $0.10 per
share in Q1 2023 : Net income attributable to the shareholders of the Company of $86.0 million
($0.08 per share); adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders
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of the Company of $106 million ($0.10 per share).
• Operating cash flow before working capital adjustments of $0.21 per share in Q1 2023: Cash
flow provided by operating activities before working capital adjustments (see “N on-IFRS
Measures”) was $223 million ($0.21 per share) in the first quarter of 2023.
• Robust financial position : At March 31, 2023, the Company had cash and cash equivalents of
$674 million and working capital (defined as current assets less current liabilities) of $804 million.
• Q1 2023 dividend of $0.04 per share declared : The Company remains in a strong net positive
cash position and paid a first quarter dividend of $0.04 per common share on March 17, 2023
(annualized rate of $0.16 per common share).
• Completed acquisition of Sabina Gold and Silver Corp. (“Sabina”): Subsequent to the quarter
end, the Company completed the acquisition of Sabina on April 19, 2023, resulting in the Company
acquiring Sabina’s 100% owned Back River Gold District located in Nuna vut, Canada by issuing
approximately 216 million B2Gold common shares as consideration.
• Subsequent to completion of the acquisition of Sabina, B2Gold completed its inaugural winter
ice road season and extinguished certain of Sabina’s construction financing obligations:
B2Gold completed its inaugural winter ice road season and received all critical materials that were
necessary to maintain the schedule for construction completion of the mill in the first quarter of
2025. As well, t he Company extinguished certain of Sabina's construction financing obligations
with payments totalling $111 million as follows: senior secured debt facility for a $2 million
payment, gold prepay facility for a $1 million payment, the entire gold metal off take agreement
for a $62 million payment, and one-third of the gold stream arrangement for a $46 million payment.
• Significant exploration program approved at the Back River Gold District for 2023: B2Gold
has approved a $20 million exploration budget for the balance of 2023 to complete approximately
25,000 meters (“m”) of drilling. Infill and greenfield drilling will be focused in proximity to
existing deposits at the Goose Project, as well as following up on regional targets identified at the
George, Boulder, Boot and Del projects.
• Preliminary Fekola Complex optimization study indicates significant opportunity to increase
gold production and resource utilization: The Company is progressing an engineering study of a
Fekola Regional stand -alone mill and oxide processing facilities (expected to be located on the
Anaconda Area). Construction of a stand-alone oxide mill would constitute Phase II of the Fekola
Regional Development Plan. The engineering study will be based on processing 4 million tonn es
per annum ( “Mtpa”) of saprolite and transitional (oxide) resources. From January 2022 through
March 31, 2023, the Company has completed approximately 120,000 m of drilling at the Anaconda
Area, which included infill drilling to upgrade a significant portion of the Inferred oxide resources
to the Indicated category, as well as extending both oxide and sulphide resources in the area. An
updated Anaconda Area Mineral Resource estimate is currently underway and scheduled to be
completed by the end of the sec ond quarter of 2023. Consequently, to allow for incorporation of
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this updated Mineral Resource estimate into the engineering study, results of the study are now
expected in the fourth quarter of 2023. The Company’s optimization study analysis indicates that
the combined Fekola Mine and Fekola Regional processing facilities could have the potential to
produce more than 800,000 ounces of gold per year from the Fekola Complex, subject to
delineation of additional mineral resources and development, completion of feasibility studies, and
the receipt of all necessary regulatory approvals and permits.
• Closed investment into Snowline Gold Corp. (“Snowline”), acquiring a 5.0% equity interest:
In March 2023, closed an equity investment into Snowline, giving B2Gold ownership of
approximately 5.0% of the issued and outstanding common shares of Snowline. Snowline is
advancing the Rogue project in the Yukon, Canada.
First Quarter 2023 Results
Three months ended
March 31,
2023 2022
Gold revenue ($ in thousands) 473,556 365,583
Net income ($ in thousands) 101,904 90,803
Earnings per share – basic(1) ($/ share) 0.08 0.08
Earnings per share – diluted(1) ($/ share) 0.08 0.08
Cash provided by operating activities ($ thousands) 203,823 107,310
Average realized gold price ($/ ounce) 1,901 1,874
Adjusted net income(1)(2) ($ in thousands) 105,862 65,096
Adjusted earnings per share(1)(2) – basic ($) 0.10 0.06
Excluding equity investment in Calibre:
Gold sold (ounces) 249,150 195,100
Gold produced (ounces) 250,719 196,473
Cash operating costs(2) ($/ gold ounce sold) 512 630
Cash operating costs(2) ($/ gold ounce produced) 576 676
Total cash costs(2) ($/ gold ounce sold) 653 762
All-in sustaining costs(2) ($/ gold ounce sold) 1,049 1,028
Including equity investment in Calibre:
Gold sold (ounces) 265,292 208,089
Gold produced (ounces) 266,856 209,365
Cash operating costs(2) ($/ gold ounce sold) 540 656
Cash operating costs(2) ($/ gold ounce produced) 600 699
Total cash costs(2) ($/ gold ounce sold) 678 784
All-in sustaining costs(2) ($/ gold ounce sold) 1,060 1,036
(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”.
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Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. At March 31, 2023, the Company
had cash and cash equivalents of $674 million (December 31, 2022 - $652 million) and working capital
(defined as current assets less current liabilities) of $804 million (December 31, 2022 - $802 million). At
March 31, 2023, the full amount of the Company's $600 million revolving credit facility was undrawn and
available.
First Quarter 2023 Dividend
On February 22, 2023, B2Gold’s Board of Directors (“Board”) declared a cash dividend for the first quarter
of 2023 of $0.04 per common share (or an expected $0.16 per share on an annualized basis), paid on March
17, 2023. The declaration and payment of future quarterly dividends remains at the discretion of the Board
and will depend on the Company's financial results, cash requirements, future prospects and other factors
deemed relevant by the Board.
Back River Gold District Update
On April 19, 2023, the Company completed the acquisition of Sabina, resulting in the Company acquiring
Sabina’s 100% owned Back River Gold District located in Nunavut, Canada by issuing approximately 216
million common shares of B2Gold as consideration. The Back River Gold District consists of five mineral
claims blocks along an 80 kilometer (“km”) belt. The most advanced project in the district, Goose, is fully
permitted, construction ready, and has been de-risked with significant infrastructure currently in place. The
Goose Project has an estimated two year construction period, which is expected to be completed in the first
quarter of 2025. B2Gold’s management team has strong northern construction expertise and the experience
to deliver the fully permitted Goose Project and the financial resources to develop the significant gold
resource endowment at the Back River Gold District into a large, long life mining complex. B2Gold
recognizes that respect and collaboration with the Kitikmeot Inuit Association 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 Indigenous input and concerns and brings long-term socio-economic benefits to the area.
Subsequent to completion of the acquisition of Sabina , B2Gold completed its inaugural winter ice road
season and received all critical materials that were necessary to maintain the schedule for construction
completion of the mill in the first quarter of 2025. During the season, upgrades to road alignment and sub-
base were completed to improve the winter ice road for future seasons . The transportation of materials
concluded with the receipt of all necessary supplies, allowing for the pouring of concrete for key facilities
and installation of structural steel to weather in the key facilities ahead of next seasons winter ice road
campaign. Additionally, preparations for the 2023 sea lift continue and to date all ordered materials have
arrived as scheduled. Currently, on-site activities are focused on building a new employee camp (Phase 1
of the new camp is scheduled for completion on July 1, 2023), extending the airstrip to support the increased
work force, primary pond construction to satisfy start -up water requirements, and continued development
of the open pit and underground areas.
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The Back River Gold District includes significant untapped exploration potential across the 80 km belt. To
accelerate pursuing this potential, B2Gold has approved a $20 million ex ploration budget for the balance
of 2023 to complete approximately 25,000 m of drilling. The $20 million budget is significantly higher than
historical annual exploration expenditures. Drilling will be focused in proximity to existing deposits at the
Goose Project, as well as following up on regional targets identified at the George, Boulder, Boot and Del
projects.
Subsequent to the completion of the acquisition of Sabina, B2Gold extinguished certain of Sabina’s
construction financing obligations. The original Gold Metal Offtake Agreement between Sabina and Orion
Mine Finance (“Orion”) allowed for the repurchase of 50% of the gold offtake in the event of a change of
control for $31 million. Under the terms of the agreement with Orion, B2Gold paid a total purchase price
of $62 million to retire the entire gold metal offtake obligation. In addition, B2Gold has paid $3 million to
retire the senior secured debt facility and gold prepay facility entered into between Orion and Sabina. After
completion of the repurchase transactions, Orion will no longer hold any security over the Goose Project
or the Back River Gold District. The original Stream Agreement between Sabina and Wheaton Precious
Metals (“Wheaton”) allowed for the repurchase of 33% of the gold st ream on the Goose Project for
consideration equal to an amount of cash that generates a 15% rate of return on the advanced portion of
gold stream. Under the terms of the agreement with Wheaton, B2Gold paid a total purchase price of $46
million to retire 33% of the existing gold stream.
A March 2021 Updated Feasibility Study on the Goose Project outlined a 15-year life of mine, producing
an average of 223,000 ounces of gold per year (average annual production of 287,000 ounces over first five
years) from 3.6 million ounces of Mineral Reserves averaging 5.97 g/t gold. The Company believes there
is potential to increase production in the first five years of the mine life to over 300,000 ounces of gold per
year through accelerated development of the underground mine at the Goose Project, subject to further mine
sequencing analysis.
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Operations
Fekola Mine - Mali
Three months ended
March 31,
2023 2022
Gold revenue ($ in thousands) 314,225 197,862
Gold sold (ounces) 165,050 105,400
Average realized gold price ($/ ounce) 1,904 1,877
Tonnes of ore milled 2,271,891 2,199,223
Grade (grams/ tonne) 2.47 1.54
Recovery (%) 91.9 93.3
Gold production (ounces) 165,864 101,648
Cash operating costs(1) ($/ gold ounce sold) 471 583
Cash operating costs(1) ($/ gold ounce produced) 483 624
Total cash costs(1) ($/ gold ounce sold) 632 739
All-in sustaining costs(1) ($/ gold ounce sold) 964 987
Capital expenditures ($ in thousands) 53,795 28,228
Exploration ($ in thousands) 1,706 6,394
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most direc tly 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 successful
start to the year with first quarter of 2023 gold production of 165,864 ounces. As expected, Fekola's gold
production was strong due to a favorable mine phasing sequence to start 2023, with Phase 6 of the Fekola
pit providing significant high-grade ore to the process plant. For the first quarter of 2023, mill feed grade
was 2.47 grams per tonne (“g/t”), mill throughput was 2.27 million tonnes, and gold recovery averaged
91.9%.
The Fekola Mine’s cash operating costs (refer to “Non-IFRS Measures”) for the first quarter of 2023 were
$483 per ounce produced ($471 per gold ounce sold). Cash operating costs per ounce produced for the first
quarter of 2023 were lower than expected as a result of lower mining costs, predominantly due to less tonnes
moved than anticipated during the quarter. Tonnes moved were less than expected during the quarter due to
tight working conditions in Phase 6 including reduced hauling capacity due to having one ramp available
(the issue has been fixed starting in April 2023) and lower than budgeted diesel costs. The mining tonnage
is expected to be caught up over the remainder of 2023.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the first quarter of 2023 for the Fekola Mine
were $964 per gold ounce sold. All-in sustaining costs for the first quarter of 2023 were lower than expected
as a result of lower cash operating costs described above and lower than expected sustaining c apital
expenditures. The lower sustaining capital expenditures are mainly a result of timing of expenditures and
expected to be incurred later in 2023.
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Capital expenditures in the first quarter of 2023 totalled $54 million primarily consisting of $26 million for
mobile equipment purchases and rebuilds, $15 million for pre -stripping, $2 million for haul road
construction, $2 million for Fekola underground development and $1 million for the tailings facility raise
project.
Subsequent to quarter end, Fekola produced its three millionth ounce of gold on April 27, 2023. This
milestone was accomplished five years and seven months from construction completion and three years
earlier than estimated in the Fekola feasibility study from June 2015. Fekola production has met or exceeded
production projections in each year of its operation.
The low-cost Fekola Complex in Mali is expected to produce between 580,000 and 610,000 ounces of gold
in 2023 at cash operating costs of between $565 and $625 per ounce and all-in sustaining costs of between
$1,085 and $1,145 per ounce. At the Fekola Mine, ore will continue to be mined from the Fekola and
Cardinal pits and for Fekola Regional operations, initial saprolite production (to be processed in the Fekola
Mill) is expected to commence from the Bantako North permit starting in the third quarter of 2023. Saprolite
production from the Bantako North permit is expected to generate approximately 18,000 ounces of gold
production in 2023 with Fekola Regional production levels continu ing to ramp -up through 2024. The
Fekola Mine is expected to process 9 million tonnes of ore during 2023 at an average grade of 2.20 g/t gold
with a process gold recovery of 93.4%. The expected increase in Fekola's all -in sustaining costs for 2023
reflects, predominantly, higher sustaining capital expenditures.
Masbate Mine – The Philippines
Three months ended
March 31,
2023 2022
Gold revenue ($ in thousands) 56,992 83,093
Gold sold (ounces) 29,650 44,300
Average realized gold price ($/ ounce) 1,922 1,876
Tonnes of ore milled 2,069,042 2,010,188
Grade (grams/ tonne) 0.95 1.19
Recovery (%) 73.5 78.0
Gold production (ounces) 46,364 59,764
Cash operating costs(1) ($/ gold ounce sold) 843 785
Cash operating costs(1) ($/ gold ounce produced) 883 710
Total cash costs(1) ($/ gold ounce sold) 992 917
All-in sustaining costs(1) ($/ gold ounce sold) 1,320 1,022
Capital expenditures ($ in thousands) 8,953 5,693
Exploration ($ in thousands) 959 1,037
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most direc tly comparable measures
specified, defined or determined under IFRS and presented in the Company’ s financial statements, refer to “Non-IFRS Measures”.
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The Masbate Mine in the Philippines had a strong start to the year with first quarter of 2023 gold production
of 46,364 ounces. For the first quarter of 2023, mill feed grade was 0.95 g/t gold, mill throughput was 2.07
million tonnes, and gold recovery averaged 73.5%.
The Masbate Mine's cash operating costs (refer to “Non-IFRS Measures”) for the first quarter of 2023 were
$883 per ounce produced ($843 per gold ounce sold). Cash operating costs per ounce produced for the first
quarter of 2023 were lower than expected as a result of higher than anticipated gold production and lower
than anticipated processing costs resulting from lower diesel and heavy fuel oil cost.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the first quarter of 2023 were $1,320 per ounce
sold. All-in sustaining costs for the first quarter of 2023 were lower than anticipated as a result of lower
than expected cash operating costs described above and lower than expected sustaining capital
expenditures. The lower than expected sustaining capital expenditures are mainly a result of timing of
expenditures and expected to be incurred later in 2023.
Capital expenditures in the first quarter of 2023 totalled $9 million, primarily consisting of $7 milli on for
mobile equipment purchases and rebuilds.
The Masbate Mine in the Philippines is expected to produce between 170,000 and 190,000 ounces of gold
in 2023 at cash operating costs of between $985 and $1,045 per ounce and all-in sustaining costs of between
$1,370 and $1,430 per ounce. For 2023, Masbate is expected to process 7.8 million tonnes of ore at an
average grade of 0.96 g/t gold with a process gold recovery of 74.5%. Gold production is scheduled to be
relatively consistent throughout 2023. Mill feed will be a blend of mined fresh ore sourced from the Main
Vein Pit and low-grade ore stockpiles. The anticipated increase in Masbate's all-in sustaining costs for 2023
reflects, predominantly, lower gold ounces sold.