B2Gold Reports Q2 2023 Results; Strong Q2 2023 Operating Results Position B2Gold to Achieve 2023 Annual Guidance; First Half of 2023 Cash Operating Costs and All-In Sustaining Costs Both Below 2023 Guidance Ranges
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News Release
B2Gold Reports Q2 2023 Results; Strong Q2 2023 Operating Results Position B2Gold to Achieve
2023 Annual Guidance; First Half of 2023 Cash Operating Costs and All-In Sustaining Costs Both
Below 2023 Guidance Ranges
Vancouver, BC, August 2, 2023 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) announces its operational and financial results for the sec ond quarter of
2023. All dollar figures are in United States dollars unless otherwise indicated.
2023 Second Quarter Highlights
• Total gold production of 262,701 ounces in Q2 2023, in-line with expectations for the quarter:
Total gold production of 262,701 ounces, including 16,740 ounces of attributable production from
Calibre Mining Corp. ( “Calibre”). The Fekola Mine produced 152,427 ounces in the quarter,
benefitting from a favorable mine phasing sequence in the second quarter , 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.
• Total consolidated cash operating costs of $ 667 per gold ounce sold in Q2 2023, below the
annual guidance range : Total consolidated cash operating costs (see “Non -IFRS Measures”)
(including estimated attributable results for Calibre) of $667 per gold ounce sold during the quarter.
Consolidated cash ope rating costs from the Company’s three operating mines of $639 per gold
ounce sold.
• Total consolidated all-in sustaining costs of $1,214 per gold ounce sold in Q2 2023, below the
midpoint of the annual guidance range : Total consolidated all -in sustaining costs (see “Non-
IFRS Measures”) (including estimated attributable results for Calibre) of $1,214 per gold ounce
sold. Consolidated all-in sustaining costs from the Company’s three operating mines of $1,210 per
gold ounce sold.
• Attributable net income of $0.06 per share; Adjusted attributable net income of $0.07 per
share in Q2 2023 : Net income attr ibutable to the shareholders of the Company of $80 million
($0.06 per share); adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders
of the Company of $86 million ($0.07 per share).
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• Operating cash flow before working capital adjust ments of $199 million in Q2 2023: Cash
flow provided by operating activities before working capital adjustments was $19 9 million in the
second quarter of 2023.
• Robust financial position: At June 30, 2023, the Company had cash and cash equivalents of $506
million and working capital (defined as current assets less current liabilities) of $570 million.
• Q2 2023 dividend of $0.04 per share declared : The Company remains in a strong net positive
cash position and paid a second quarter dividend of $0.04 per common share on June 27, 2023
(annualized rate of $0.16 per common share).
• Completed acquisition of Sabina Gold and Silver Corp. (“Sabina”); Goose Project
construction on-track for mill completion and first gold production in Q1 2025: In the second
quarter of 2023 the Company completed its inaugural winter ice road season, extinguished certain
of Sabina’s construction financing obligations and received all critical materials that were necessary
to maintain the schedule for con struction completion of the mill and first gold production at the
Goose Project in the first quarter of 2025. Currently, camp construction is partially complete,
generators are being installed, and construction workshops are being erected. The Company has
also decided to move to an owner-operated construction model versus a fixed priced EPC contract
for the construction of the process plant , which will reduce costs and result in a mill with higher
availability and lower sustaining capital requirements. Usin g B2Gold's owner-operated team also
allows for flexibility in construction and the ability to prioritize construction activities as needed.
• Updated and significantly increased Mineral Resource Estimate for the Anaconda Area
announced: On June 21, 2023, the Company announced an updated Mineral Resource estimate
that includes a significant increase in the laterite, saprolite and saprock (collectively “oxide”)
Mineral Resources, and an initial sulphide Indicated Mineral Resource estimate for the Anaconda
Area.
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Second Quarter 2023 Results
Three months ended Six months ended
June 30, June 30,
2023 2022 2023 2022
Gold revenue ($ in thousands) 470,854 381,985 944,410 747,568
Net income ($ in thousands) 91,850 40,686 193,754 131,489
Earnings per share – basic(1) ($/ share) 0.06 0.04 0.14 0.11
Earnings per share – diluted(1) ($/ share) 0.06 0.04 0.14 0.11
Cash provided by operating activities ($ thousands) 194,983 124,879 398,806 232,189
Average realized gold price ($/ ounce) 1,969 1,861 1,934 1,867
Adjusted net income(1)(2) ($ in thousands) 85,804 45,248 191,666 110,344
Adjusted earnings per share(1)(2) – basic ($) 0.07 0.04 0.16 0.10
Consolidated operations results:
Gold sold (ounces) 239,100 205,300 488,250 400,400
Gold produced (ounces) 245,961 208,858 496,680 405,331
Cash operating costs(2) ($/ gold ounce sold) 639 771 574 702
Cash operating costs(2) ($/ gold ounce produced) 607 766 591 722
Total cash costs(2) ($/ gold ounce sold) 777 888 714 826
All-in sustaining costs(2) ($/ gold ounce sold) 1,210 1,109 1,128 1,069
Operations results including equity investment in Calibre:
Gold sold (ounces) 255,897 220,129 521,189 428,218
Gold produced (ounces) 262,701 223,623 529,557 432,988
Cash operating costs(2) ($/ gold ounce sold) 667 786 602 723
Cash operating costs(2) ($/ gold ounce produced) 636 781 618 742
Total cash costs(2) ($/ gold ounce sold) 800 900 738 844
All-in sustaining costs(2) ($/ gold ounce sold) 1,214 1,111 1,135 1,074
(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 June 30, 2023, the Company had
cash and cash equivalents of $506 million (December 31, 2022 - $652 million) and working capital (defined
as current assets less current liabilities) of $570 million (December 31, 2022 - $802 million). At June 30,
2023, the full amount of the Company's $600 million revolving credit facility ( “RCF”) was undrawn and
available. In July 2023, the available and undrawn capacity of the RCF was increased to $700 million under
the accordion feature with the addition of the National Bank of Canada to the syndicate of lenders.
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Second Quarter 2023 Dividend
On June 5, 2023, B2Gold’s Board of Directors declared a cash dividend for the second quarter of 2023 of
$0.04 per common share (or an expected $0.16 per share on an annualized basis), paid on June 27, 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
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 in 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 with first gold production expected in the first
quarter of 2025. In addition, B2Gold obtained significant untapped exploration potential across the 80 km
belt. B2Gold’s management team has strong northern construction expertise and 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 coll aboration 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, in the second quarter of 2023, B2Gold completed
its inaugural winter ice road season, extinguished certain of Sabina’s construction financing obligations and
received all critical materials that were expected to be necessary to maintain the schedule for construction
completion of the mill at the Goose Project in the first quarter of 2025. Currently, camp construction is
partially complete, generators are being installed, and construction workshops are being erected. The
Company extinguished certain of Sabina's construction financing obligations with payments totaling $112
million as follows: senior secured debt facility for a $2 million payment, gold prepay facility for a $1 million
payment, the entire gold metal offtake agreement for a $63 million payment, and one -third of the gold
stream arrangement for a $46 million payment.
On June 23, 2023, the Company announced an initial capital expenditure estimate of C$800 million, which
was in line with B2Gold expectations since the Sabina acquisition announcement and reflects scope changes
to further optimize the Goose Project. B2Gold has updated the construction budget to de -risk the project
and construct a reliable and low oper ating cost mine. In addition, the Company has made the decision to
accelerate underground mining development to increase annual gold production over the first five years of
the mine plan, including the mining of the Umwelt crown pillar. The cost to accelerate underground mining
is estimated at an additional C$90 million for a total project capital expenditure of C$890 million
(approximately $676 million) with approximately C$550 million (approximately $418 million) expected to
be spent by B2Gold up to completion of construction in the first quarter of 2025.
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In the second quarter of 2023, a significant 2023 exploration program was approved for the Back River
Gold District. B2Gold has approved a $20 million exploration budget for the balance of 2023 to complete
approximately 25,000 meters (“m”) of drilling. Drilling will be focused in proximity to existing deposits at
the Goose Project, as well as following up on regional targets identified at the George, Boulder, Boot and
Del projects.
Operations
Fekola Mine - Mali
Three months ended Six months ended
June 30, June 30,
2023 2022 2023 2022
Gold revenue ($ in thousands) 281,672 224,476 595,897 422,338
Gold sold (ounces) 142,850 121,250 307,900 226,650
Average realized gold price ($/ ounce) 1,972 1,851 1,935 1,863
Tonnes of ore milled 2,324,043 2,421,526 4,595,934 4,620,749
Grade (grams/ tonne) 2.24 1.71 2.36 1.63
Recovery (%) 91.8 92.4 91.9 92.8
Gold production (ounces) 152,427 123,066 318,291 224,714
Cash operating costs(1) ($/ gold ounce sold) 555 711 510 652
Cash operating costs(1) ($/ gold ounce produced) 538 639 509 632
Total cash costs(1) ($/ gold ounce sold) 721 847 673 797
All-in sustaining costs(1) ($/ gold ounce sold) 1,165 949 1,057 967
Capital expenditures ($ in thousands) 74,151 20,198 127,946 48,426
Exploration ($ in thousands) — 4,062 1,706 10,456
(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
second quarter of 2023 with gold production of 152,427 ounces. Fekola's gold production was slightly lower
than expected due to a number of factors including lower than budgeted gold recovery, delayed delivery of
a key mine production excavator and lower than budgeted mine production from Phase 6 of the Fekola pit
as a result of blast hole drilling inefficiencies and congestion in working areas. The Company expects that
the gold production variance will be caught up in the fourth quarter of 2023 and that the Fekola Complex
is on track to meet its annual production guidance. For the second quarter of 2023, mill feed grade was 2.24
grams per tonne (“g/t”), mill throughput was 2.32 million tonnes, and gold recovery averaged 91.8%.
The Fekola Mine’s cash operating costs (refer to “Non-IFRS Measures”) for the second quarter of 2023
were $538 per ounce produced ( $555 per gold ounce sold ). Cash operating costs per ounce produced for
the second quarter of 2023 were slightly higher than expected resulting from lower than anticipated gold
production.
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All-in sustaining costs (refer to “Non-IFRS Measures”) for the second quarter of 2023 for the Fekola Mine
were $1,165 per gold ounce sold. All-in sustaining costs were higher than expected primarily due to higher
than anticipated sustaining capital expenditures as a result of timing of capital expenditures.
Capital expenditures in the second quarter of 2023 totaled $74 million primarily consisting of $21 million
for mobile equipment purchases and rebuilds, $21 million for prestripping, $12 million for Fekola
underground development, $6 million for the tailings facility raise project, $4 million for solar plant
expansion and $3 million for haul road construction.
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 $1,145 per ounce. At the Fekola Mine, ore will continue to be mined from the Fekola and
Cardinal pits. Receipt of an exploitation license for the Bantako North permit area remains outstanding
pending finalization of a proposed new 2023 Mining Code by the State of Mali. As a result, the Company
now expects Fekola Regional budgeted production of 18,000 ounces to be delayed into 2024. Due to
availability of additional ore sources in the Fekola Complex, production guidance of between 580,000 and
610,000 ounces for the Fekola Complex for 2023 remains unchanged.
Masbate Mine – The Philippines
Three months ended Six months ended
June 30, June 30,
2023 2022 2023 2022
Gold revenue ($ in thousands) 111,291 99,675 168,283 182,768
Gold sold (ounces) 56,700 53,250 86,350 97,550
Average realized gold price ($/ ounce) 1,963 1,872 1,949 1,874
Tonnes of ore milled 2,000,360 1,986,253 4,069,402 3,996,441
Grade (grams/ tonne) 1.03 1.09 0.99 1.14
Recovery (%) 74.3 78.4 73.9 78.2
Gold production (ounces) 49,478 54,375 95,842 114,139
Cash operating costs(1) ($/ gold ounce sold) 850 764 847 773
Cash operating costs(1) ($/ gold ounce produced) 817 840 849 772
Total cash costs(1) ($/ gold ounce sold) 960 860 971 886
All-in sustaining costs(1) ($/ gold ounce sold) 1,091 1,082 1,169 1,054
Capital expenditures ($ in thousands) 6,098 14,057 15,051 19,750
Exploration ($ in thousands) 1,008 1,378 1,967 2,415
(1) 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”.
The Masbate Mine in the Philippines had a strong second quarter of 2023 with gold production of 49,478
ounces, above expectations, as a result of higher than anticipated mill feed grade and mill throughput. For
the second quarter of 2023, mill feed grade was 1.03 g/t gold, mill throughput was 2.00 million tonnes, and
gold recovery averaged 74.3%.
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The Masbate Mine's cash operating costs (refer to “Non-IFRS Measures”) for the second quarter of 2023
were $817 per ounce produced ( $850 per gold ounce sold). Cash operating costs per ounce produced for
the second quarter of 2023 were lower than expected as a result of higher than expected gold production,
and lower than anticipated mining and processing costs resulting from lower than expected diesel and heavy
fuel oil ("HFO") costs.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the second quarter of 2023 were $1,091 per
ounce sold. All-in sustaining costs for the second quarter of 2023 were lower than anticipated as a result of
lower than expected cash operating costs and sustaining capital expenditures, and higher than expected gold
ounces sold. The lower than expec ted sustaining capital expenditures are mainly a result of timing of
expenditures and expected to be incurred later in 2023.
Capital expenditures in the second quarter of 2023 totaled $6 million, primarily consisting of $3 million 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 $1,430 per ounce. For 2023, Masbate is expected to process 7.8 million tonnes of ore at an
average grade of 0.96 g/t gold with a process gold recovery of 74.5%. Gold production is scheduled to be
relatively consistent throughout 2023. Mill feed will be a blend of mined fresh ore sourced from the Main
Vein Pit and low-grade ore stockpiles.
The Masbate Mine has benefited from lower fuel costs over the first half of 2023. The Company will
continue to monitor actual versus budget fuel prices in the third quarter of 2023 and if lower pricing
continues to be observed, it will consider whether any revision to the Masbate Mine's full -year cash
operating costs and all-in sustaining costs guidance is required at that time.
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Otjikoto Mine - Namibia
Three months ended Six months ended
June 30, June 30,
2023 2022 2023 2022
Gold revenue ($ in thousands) 77,891 57,834 180,230 142,462
Gold sold (ounces) 39,550 30,800 94,000 76,200
Average realized gold price ($/ ounce) 1,969 1,878 1,917 1,870
Tonnes of ore milled 875,055 850,889 1,699,007 1,696,111
Grade (grams/ tonne) 1.59 1.17 1.53 1.24
Recovery (%) 98.7 98.4 98.7 98.5
Gold production (ounces) 44,056 31,417 82,547 66,478
Cash operating costs(1) ($/ gold ounce sold) 641 1,018 535 763
Cash operating costs(1) ($/ gold ounce produced) 611 1,136 609 943
Total cash costs(1) ($/ gold ounce sold) 720 1,093 612 838
All-in sustaining costs(1) ($/ gold ounce sold) 1,187 1,403 1,024 1,090
Capital expenditures ($ in thousands) 15,630 23,152 32,976 39,283
Exploration ($ in thousands) 996 873 1,490 1,379
(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 Otjikoto Mine in Namibia, in which the Company holds a 90% interest, performed well during the
second quarter of 2023, producing 44,056 ounces of gold. As a result of t he timing of higher -grade ore
mining, Otjikoto’s annual gold production is expected to be 60% weighted to the second half of 2023, when
mining is scheduled to reach the higher -grade portions of Phase 4 of the Otjikoto pit coupled with higher
production from the Wolfshag underground mine. For the second quarter of 2023, mill feed grade was 1.59
g/t, mill throughput was 0.88 million tonnes, and gold recovery averaged 98.7%.
Production from the Wolfshag underground mine remained consistent during the second quarter of 2023,
averaging over 1,000 tonnes pe r day at an average grade of 4.31 g/t . As of the beginning of 2023, the
Probable Mineral Reserve estimate for the Wolfshag deposit includes 203,000 ounces of gold in 1.1 million
tonnes of ore at an average grade of 5.55 g/t gold.
Cash operating costs (refer to “Non-IFRS Measures”) for the second quarter of 2023 were $611 per gold
ounce produced ($641 per ounce gold sold). Cash operating costs per ounce produced for the second quarter
of 2023 were lower than expected as a result of higher production as described above, lower than budgeted
fuel costs and a weaker Namibian dollar.
All-in sustaining costs for the second quarter of 2023 were $1,187 per gold ounce sold. All-in sustaining
costs for the second quarter of 2023 were lower t han anticipated as a result of lower than expected cash
operating costs described above, and lower than expected sustaining capital expenditures primarily related
to the timing of underground development. The lower than expected sustaining capital expendit ures are
mainly a result of timing of expenditures and expected to be incurred later in 2023.