BTO.TO · 2024-05-07 12:00:00

B2Gold Reports Q1 2024 Results; Cash Operating Costs and All-In Sustaining Costs Below 2024 Annual

Financials

News Release

Guidance Ranges; Update on Goose Project Following Successful Completion of 2024 Winter Ice Road

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Vancouver, BC, May 7, 2024 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)

(“B2Gold” or the “Company”) announces its operational and financial results for the first quarter of 2024.

All dollar figures are in United States dollars unless otherwise indicated.

2024 First Quarter Highlights

• Total gold production of 225,716 ounces in Q1 2024, in -line with expectations : Total gold

production in the first quarter of 2024 was 225,716 ounces, including 11,377 ounces of attributable

production from Calibre Mining Corp. (“Calibre”). All three B2Gold operations were in-line with

expectations and the Company is on track to meet its consolidated annual production guidance

range.

• Total consolidated cash operating costs of $734 per gold ounce produced in Q1 2024 : Total

consolidated cash operating costs (see “Non-IFRS Measures”) (including estimated attributable

results for Calibre) of $734 per gold ounce produced during the first quarter of 2024 with

consolidated cash operating costs from the Company’s three operating mines of $718 per gold

ounce produced.

• Total consolidated all -in sustaining costs of $1,345 per gold ounce sold in Q1 2024 : Total

consolidated all-in sustaining costs (see “Non-IFRS Measures”) (including estimated attributable

results for Calibre) of $1,345 per gold ounce sold with consolidated all-in sustaining costs from the

Company’s three operating mines of $1,346 per gold ounce sold.

• Attributable net income of $0.03 per share; Adjusted attributable net income of $0.06 per

share in Q1 2024: Net income attributable to the shareholders of the Company in the first quarter

of 2024 of $40 million ($0.03 per share); adjusted net income (see “Non-IFRS Measures” )

attributable to the shareholders of the Company of $82 million ($0.06 per share).

• Operating cash flow before working capital adjustments of $200 million in Q1 2024 : Cash

flow provided by operating activities before working capital adjustments and proceeds from

prepaids financing was $200 million in the first quarter of 2024.

• Strong financial position and liquidity : At March 31, 2024, the Company had cash and cash

equivalents of $568 million and working capital (defined as current assets less assets classified as

held for sale and current liabilities) of $629 million.

• Q2 2024 dividend of $0.04 per share declared : On May 7, 2024, B2Gold's Board of Directors

declared a cash dividend for the second quarter of 2024 of $0.04 per common share (or an expected

$0.16 per share on an annualized basis), payable on June 24, 2024, to shareholders of record as of

June 11, 2024. As of March 31, 2024, the expected annual dividend rate represented an approximate

6.1% yield.

• Goose Project 2024 winter ice road campaign successfully completed: Subsequent to quarter

end, B2Gold successfully completed the 2024 winter ice road (“WIR”) campaign. Construction of

the 162 kilometer (“km”) WIR began in December 2023 and the 2024 WIR campaign commenced

in the first quarter of 2024. The 2024 WIR campaign was successfully completed on April 30, 2024,

delivering all necessary materials from the Marine Laydown Area (“MLA”) to complete the

construction of the Goose Project. Materials trucked from the MLA to the Goose Project site during

the 2024 WIR campaign exceeded 2,100 total loads and included 400 loads of diesel fuel.

• Goose Project mill construction remains on schedule: The mill construction remains on schedule

with work ongoing on various facilities related to concrete, steel erection and building cladding.

Additionally, installation of the ball mill continues to progress ahead of schedule with the

installation of all sh ell sections, feed/discharge heads, trunnion, pinion and bearings having been

completed.

• Development of the open pit and underground is slightly behind schedule at the Goose

Project; first gold production now expected in Q2 2025: Development of the open pit and

underground is slightly behind schedule due to equipment availability (commissioning and

availability of the open pit equipment), adverse weather conditions and prioritization of critical

path construction activities. The cu rrent schedule indicates that an additional three months of

mining must be added to the schedule to ensure that the Umwelt open pit, underground

development, and crown pillar activities align and that there is sufficient tailings storage capacity

in the Echo open pit. With the schedule change, the mill is now scheduled to produce first gold in

the second quarter of 2025 with ramp up to full production in the third quarter of 2025 (one quarter

later than previous estimates). As a result of the updat ed mining schedule , the Company now

estimates that gold production in calendar year 2025 will be between 120,000 ounces and 150,000

ounces (previously estimated to be between 220,000 ounces and 260,000 ounces ). The reduction

in estimated gold production in 2025 is predominantly due to the deferral of an anticipated 100,000

ounces of quarterly gold production from the fourth quarter of 2025 into the first quarter of 2026.

Importantly, the updated mining schedule does not impact the total number of gold ounces the

Company expects to produce over the life of mine of the Goose Project. The updated production

profile has resulted in the Company now estimating that average annual gold production from 2026

to 2030 will increase to be in excess of 310,000 ounces per year (previously estimated at 300,000

ounces per year).

• Positive exploration results from the Antelope deposit at the Otjikoto Mine in Namibia

indicate potential for possible underground development: On January 31, 2024, the Company

announced positive exploration drilling results from the Antelope deposit, located approximately

three km south of the Otjikoto open pit. The Antelope deposit has the potential to be developed as

an underground mining operation, which could complement the expected processing of low-grade

stockpiles at the Otjikoto mill from 2026 through 2031.

• Fekola Complex technical report outlined the trucking of ore as the optimal option to

maximize the value of Fekola Regional: The Fekola Complex technical report filed on March 14,

2024, outlined the trucking of ore from the Anaconda Area to be toll milled by the Fekola mill as

the optimal option to maximize the value of Fekola Regional, and to extend the processing life of

the Fekola mill. Trucking of selective higher -grade material from Fekola Regional to the Fekola

mill will increase the ore processed and has the potential to generate approximately 80,000 to

100,000 ounces of initial gold production per year from Fekola Regional sources. Importantly, the

haul road from Fekola Regional to the Fekola Mine is operational as construction of the haul roads

and mining infrastructure (warehouse, workshop, fuel depot and offices) was completed on

schedule in 2023.

• Updated Gramalote Preliminary Economic Assessment (“PEA”) on track for Q2 2024:

B2Gold's in-house projects team is progressing work on various smaller scale project development

plans for the Gramalote Project, with the goal of identifying a higher -return project than the

previously contemplated joint venture development plan. B2Gold has completed a detailed review

of the Gramalote Project, including the facility size and location, power supply, mining and

processing options, tailings design, resettlement, p otential construction sequencing and camp

design to identify potential cost savings to develop a smaller scale project. The results of the review

allowed the Company to determine the optimal parameters and assumptions for a formal study,

which commenced in the fourth quarter of 2023, with a PEA expected to be complete by the end of

the second quarter of 2024.

• Received an upfront payment of $500 million, to further enhance financial flexibility and

provide additional cash liquidity: In January 2024, B2Gold entered into a series of prepaid gold

sales (the “Gold Prepay”) with a number of existing lenders to further enhance financial flexibility

and provide additional cash liquidity at attractive terms as the Company continues to fund

sustaining, development and growth projects across the operating portfolio, and increase financial

capacity for potential growth projects in Namibia and Colombia.

First Quarter 2024 Results

Three months ended

March 31,

2024 2023

Gold revenue ($ in thousands) 461,444 473,556

Net income ($ in thousands) 48,481 101,904

Earnings per share – basic(1) ($/ share) 0.03 0.08

Earnings per share – diluted(1) ($/ share) 0.03 0.08

Cash provided by operating activities ($ thousands) 710,727 203,823

Average realized gold price ($/ ounce) 2,069 1,901

Adjusted net income(1)(2) ($ in thousands) 81,503 105,862

Adjusted earnings per share(1)(2) – basic ($) 0.06 0.10

Consolidated operations results:

Gold sold (ounces) 222,978 249,150

Gold produced (ounces) 214,339 250,719

Production costs ($ in thousands) 156,745 127,604

Cash operating costs(2) ($/ gold ounce sold) 703 512

Cash operating costs(2) ($/ gold ounce produced) 718 576

Total cash costs(2) ($/ gold ounce sold) 838 653

All-in sustaining costs(2) ($/ gold ounce sold) 1,346 1,049

Operations results including equity investment in Calibre:

Gold sold (ounces) 234,355 265,292

Gold produced (ounces) 225,716 266,856

Production costs ($ in thousands) 168,650 143,369

Cash operating costs(2) ($/ gold ounce sold) 720 540

Cash operating costs(2) ($/ gold ounce produced) 734 600

Total cash costs(2) ($/ gold ounce sold) 851 678

All-in sustaining costs(2) ($/ gold ounce sold) 1,345 1,060

(1) Attributable to the shareholders of the Company.

(2) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures

specified, defined or determined under IFRS and presented in the Company’ s financial statements, refer to “Non-IFRS Measures”.

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At March 31, 2024, the Company

had cash and cash equivalents of $568 million (December 31, 2023 - $307 million) and working capital

(defined as current assets less assets classified as held for sale and current liabilities) of $629 million

(December 31, 2023 - $397 million). At March 31, 2024, the full amount of the Company's $700 million

revolving credit facility was undrawn and available.

Second Quarter 2024 Dividend

On May 7, 2024, B2Gold’s Board of Directors declared a cash dividend for the second quarter of 2024 (the

“Q2 2024 Dividend”) of $0.04 per common share (or an expected $0.16 per share on an annualized basis),

payable on June 24, 2024, to shareholders of record as of June 11, 2024. As of March 31, 2024, the expected

annual dividend rate represented an approximate 6.1% yield.

In 2023, the Company implemented a Dividend Reinvestment Plan (“DRIP”). For the purposes of the Q2

2024 Dividend, the Company is pleased to announce that a discount of 3% will be applied to calculate the

Average Market Price (as defined in the DRIP) of its common shares issued from treasury. However, the

Company may, from time to time, in its discretion, change or eliminate any applicable discount, which

would be publicly announced, all in accordance with the terms and conditions of the DRIP. Participation in

the DRIP is optional. In order to participate in the DRIP in time for the Q2 2024 Dividend, registered

shareholders must deliver a properly completed enrollment form to Computershare Trust Company of

Canada by no later than 4:00 p.m. (Toronto time) on J une 4, 2024. Beneficial shareholders who wish to

participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial

institution, or other intermediary through which they hold common shares well in advance of the abov e

date for instructions on how to enroll in the DRIP.

As part of the long-term strategy to maximize shareholder value, B2Gold expects to declare future quarterly

dividends at the same level. This dividend is designated as an "eligible dividend" for the purposes of the

Income Tax Act (Canada). Dividends paid by B2Gold to shareholders outside Canada (non -resident

investors) will be subject to Canadian non-resident withholding taxes.

The declaration and payment of future dividends and the amount of any such dividends will be subject to

the determination of the Board, in its sole and absolute discretion, taking into account, among other things,

economic conditions, business performance, financial condition, growth plans, expected capital

requirements, compliance with B2Gold's constating documents, all applicable laws, including the rules and

policies of any applicable stock exchange, as well as any contractual restrictions on such divide nds,

including any agreements entered into with lenders to the Company, and any other factors that the Board

deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the

intended rate or at all in the future.

For more information regarding the DRIP and enrollment in the DRIP, please refer to the Company's

website at https://www.b2gold.com/investors/stock_info/.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any

jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such

offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws

of any such province, state or jurisdiction.

The Company has filed a registration statement relating to the DRIP with the U.S. Securities and Exchange

Commission that may be obtained under the Company's profile on the U.S. Securities and Exchange

Commission's website at http://www.sec.gov/EDGAR or by contacting the Company using the contact

information at the end of this news release.

Operations

Fekola Mine - Mali

Three months ended

March 31,

2024 2023

Gold revenue ($ in thousands) 256,318 314,225

Gold sold (ounces) 123,828 165,050

Average realized gold price ($/ ounce) 2,070 1,904

Tonnes of ore milled 2,462,863 2,271,891

Grade (grams/ tonne) 1.62 2.47

Recovery (%) 92.7 91.9

Gold production (ounces) 119,141 165,864

Production costs ($ in thousands) 85,105 77,661

Cash operating costs(1) ($/ gold ounce sold) 687 471

Cash operating costs(1) ($/ gold ounce produced) 698 483

Total cash costs(1) ($/ gold ounce sold) 852 632

All-in sustaining costs(1) ($/ gold ounce sold) 1,436 964

Capital expenditures ($ in thousands) 80,562 53,795

Exploration ($ in thousands) 1,302 1,706

(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most 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 strong start to

the year with gold production for the first quarter of 2024 of 119,141 ounces, in-line with expectations. For

the first quarter of 2024, mill feed grade was 1.62 grams per tonne (“g/t”), mill throughput was 2.46 million

tonnes, and gold recovery averaged 92.7%.

The Fekola Mine’s cash operating costs (see “Non-IFRS Measures”) for the first quarter of 2024 were $698

per gold ounce produced ($687 per gold ounce sold). Cash operating costs per gold ounce produced for the

first quarter of 2024 were lower than expected as a result of lower fuel costs, higher mill throughput, higher

gold recovery and lower mining costs due to lower than anticipated mined tonnage as a result of equipment

availability.

All-in sustaining costs (see “Non-IFRS Measures”) for the first quarter of 2024 for the Fekola Mine were

$1,436 per gold ounce sold. All -in sustaining costs were lower than expected as a result of lower than

anticipated production costs per gold ounce sold, higher gold ounces sold and lower than expected

sustaining capital expenditures , partially offset by higher gold royalties resulting from a higher than

anticipated average realized gold price. The lower sustaining capital expenditures were mainly due to timing

of expenditures and are expected to be incurred later in 2024.

Capital expenditures in the first quarter of 2024 totalled $81 million primarily consisting of $29 million for

deferred stripping, $1 8 million for mobile equipment purchases and rebuilds, $13 million for the

construction of a new tailings storage facility, $11 million for Fekola underground development, $3 million

for solar plant expansion and $2 million for haul road construction.

The Fekola Complex is comprised of the Fekola Mine (Medinandi permit hosting the Fekola and Cardinal

pits and Fekola underground) and Fekola Regional (Anaconda Area (Bantako, Menankoto, and Bakolobi

permits) and the Dandoko permit). The Fekola Complex is e xpected to produce between 470,000 and

500,000 ounces of gold in 2024 at cash operating costs of between $835 and $895 per ounce and all -in

sustaining costs of between $1,420 and $1,480 per ounce. The Fekola Complex's total 2024 gold production

is anticipated to decrease relative to 2023 due to lower production as a result of the delay in receiving an

exploitation license for Fekola Regional from the Government of Mali pending finalization of an

implementation decree for the new 2023 Mining Code. No production is forecast from Fekola Regional in

the Company's 2024 guidance with production now expected to commence at the beginning of 2025.

The Fekola Mine is expected to process 9.4 million tonnes of ore during 2024 at an average grade of 1.77

g/t gold with a process gold recovery of 90.9%. Gold production is expected to be evenly weighted between

the first half of 2024 and the second half of 2024.

Masbate Mine – The Philippines

Three months ended

March 31,

2024 2023

Gold revenue ($ in thousands) 98,967 56,992

Gold sold (ounces) 47,700 29,650

Average realized gold price ($/ ounce) 2,075 1,922

Tonnes of ore milled 2,169,462 2,069,042

Grade (grams/ tonne) 0.99 0.95

Recovery (%) 72.4 73.5

Gold production (ounces) 49,782 46,364

Production costs ($ in thousands) 42,771 24,993

Cash operating costs(1) ($/ gold ounce sold) 897 843

Cash operating costs(1) ($/ gold ounce produced) 835 883

Total cash costs(1) ($/ gold ounce sold) 1,010 992

All-in sustaining costs(1) ($/ gold ounce sold) 1,219 1,320

Capital expenditures ($ in thousands) 8,530 8,953

Exploration ($ in thousands) 821 959

(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most direc tly comparable measures

specified, defined or determined under IFRS and presented in the Company’ s financial statements, refer to “Non-IFRS Measures”.

The Masbate Mine in the Philippines had a strong start to 2024 with first quarter gold production of 49,782

ounces, above expectations due to higher mill throughput. For the first quarter of 2024, mill feed grade was

0.99 g/t gold, mill throughput was 2.17 million tonnes, and gold recovery averaged 72.4%.

The Masbate Mine's cash operating costs (see “Non-IFRS Measures”) for the first quarter of 2024 were

$835 per gold ounce produced ($897 per gold ounce sold). Cash operating costs per gold ounce produced

for the first quarter of 2024 were lower than expected as a result of higher gold production and lower than

anticipated mining and processing costs due to higher productivity and lower diesel and heavy fuel oil costs.

All-in sustaining costs (see “Non-IFRS Measures”) for the first quarter of 2024 were $1,219 per gold ounce

sold. All-in sustaining costs for the first quarter of 2024 were lower than expected as a result of lower than

anticipated production costs per gold ounce sold and lower than expected sustaining capital expenditures.

The lower sustaining capital expenditures were mainly a result of timing of expenditures and are expected

to be incurred later in 2024.

Capital expenditures in the first quarter of 2024 totalled $9 million, primarily consisting of $6 million for

mobile equipment purchases and rebuilds and $1 million for deferred stripping.

The Masbate Mine is expected to produce between 170,000 and 190,000 ounces of gold in 2024 at cash

operating costs of between $945 and $1,005 per ounce and all -in sustaining costs of between $1,300 and

$1,360 per ounce. Gold production is scheduled to be r elatively consistent throughout 2024. For 2024,

Masbate is expected to process 7.9 million tonnes of ore at an average grade of 0.93 g/t gold with a process

gold recovery of 76.0%. Mill feed will be a blend of mined fresh ore and low-grade ore stockpiles.

Otjikoto Mine - Namibia

Three months ended

March 31,

2024 2023

Gold revenue ($ in thousands) 106,159 102,339

Gold sold (ounces) 51,450 54,450

Average realized gold price ($/ ounce) 2,063 1,880

Tonnes of ore milled 826,477 823,952

Grade (grams/ tonne) 1.74 1.47

Recovery (%) 98.5 98.8

Gold production (ounces) 45,416 38,491

Production costs ($ in thousands) 28,869 24,950

Cash operating costs(1) ($/ gold ounce sold) 561 458

Cash operating costs(1) ($/ gold ounce produced) 642 605

Total cash costs(1) ($/ gold ounce sold) 644 533

All-in sustaining costs(1) ($/ gold ounce sold) 958 905

Capital expenditures ($ in thousands) 13,813 17,346

Exploration ($ in thousands) 1,789 494

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