B2Gold Reports Q3 2022 Results; Full-Year 2022 Total Consolidated Gold Production and Cost Guidance Remains Unchanged; Year-to-Date Operating Costs and All-In Sustaining Costs In Line with Budget despite Lower than Expected
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News Release
B2Gold Reports Q3 2022 Results;
Full-Year 2022 Total Consolidated Gold Production and Cost Guidance Remains Unchanged;
Year-to-Date Operating Costs and All-In Sustaining Costs In Line with Budget despite Lower than Expected
Gold Production
Vancouver, November 1, 2022 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) announces its operational and financial results for the third quarter of 2022.
The Company previously released its gold production and gold revenue results for the third quarter of 2022.
All dollar figures are in United States dollars unless otherwise indicated.
2022 Third Quarter and Y ear-to-Date Summary
• Total gold production of 227,016 ounces in Q3 2022, expected to increase significantly in Q4 2022:
Lower than expected production at the Fekola and Otjikoto mines in the third quarter of 2022 due to
temporary mining sequence changes (see “Operations” discussion). Strong production an ticipated in
the fourth quarter of 2022 at both operations. At Fekola, ore production from Fekola open-pit Phase 6
has commenced and is forecast to average between 3.4 to 3.5 grams per tonne ("g/t") gold . Over the
full fourth quarter of 2022, gold grade mined is anticipated to average over 3.0 g/t gold at Fekola. At
Otjikoto, gold production is anticipated to benefit as mining has reached a higher-grade zone in the
Otjikoto pit and with stope ore production from the Wolfshag Underground mine.
• Total consolidated cash operating costs of $824 per gold ounce sold in Q3 2022, expected to be
significantly lower in Q4 2022: Total consolidated cash operating costs (see “Non-IFRS Measures”)
(including estimated attributable results for Calibre Mining Corp. (“Calibre ”), which accounts for
approximately 5% of B2Gold’s total gold production in 2022 ) of $824 per gold ounce sold and
consolidated cash operating costs from the Company’s three operating mines of $810 per gold ounce
sold. Year-to-date total consolidated cash operating costs of $760 per gold ounce sold in line with
expectations after a strong first half of 2022.
• Total consolidated all-in sustaining costs of $1,169 per gold ounce sold in Q3 2022, expected to be
significantly lower in Q4 2022: Total consolidated all-in sustaining costs (see “Non-IFRS Measures”)
(including estimated attributable results for Calibre) of $1,169 per gold ounce sold and consolidated
all-in sustaining costs from the Company’s three operating mines of $1,154 per gold ounce sold. Year-
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to-date total consolidated all-in sustaining costs of $1,108 per gold ounce sold is slightly better than
expected after a strong first half of 2022. Total consolidated all -in sustaining costs are anticipated to
benefit in Q4 2022 from higher grade ore being processed at Fekola and Otjikoto.
• Maintain full-year 2022 total gold production and total consolidated cost guidance: Based on the
year-to-date cost performance and strong anticipated gold production in Q4 2022, the Company re -
affirms full year 2022 total gold production and total consolidated cost guidance. Total gold production
is expected to be between 990,000 and 1, 050,000 ounces (including 40,000 and 50,000 attributable
ounces projected from Calibre). Total consolidated cash operating costs are expected to be at the upper
end of the Company’s original guidance range of between $620 and $660 per gold ounce and total
consolidated all-in sustaining costs are expected to within the Company's original guidance range of
between $1,010 and $1,050 per gold ounce.
• Attributable net loss of $(0.02) per share; adjusted attributable net income of $0.03 per share in
Q3 2022: Net loss attributable to the shareholders of the Company of $(23) million ($(0.02) per share);
adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of
$32 million ($0.03 per share).
• Operating cash flow before working capital adjustments of $0.13 per share in Q3 2022: Cash flow
provided by operating activities before working capital adjustments was $139 million ($0.13 per share)
in the third quarter of 2022.
• Robust financial position : At September 30, 2022, the Company had cash and cash equivalents of
$549 million and working capital (defined as current assets less assets classified as held for sale and
current liabilities) of $725 million.
• Q3 2022 dividend of $0.04 per share declared : The Company remains in a strong n et positive cash
position and paid a third quarter dividend of $0.04 per common share (annualized rate of $0.16 per
common share), representing a 5.0% yield as of September 30, 2022.
• Completed acquisition of Oklo Resources Limited ( “Oklo”): The Company co mpleted the
acquisition of Oklo on September 20, 2022, providing B2Gold with an additional landholding of 1,405
km2 covering highly prospective greenstone belts in Mali, including Oklo’s flagship Dandoko project
(550 km2), located approximately 25 kilometres from each of the Fekola Mine and the Anaconda area.
• Fekola Complex study underway to deliver low capital intensity production growth: Commencing
a feasibility level engineering study of stand-alone mill and oxide processing facilities at the Anaconda
area. The study will be based on processing at least 4 million tonnes per annum (“Mtpa”) of saprolite
and transitional (oxide) resources, with an option to add fresh rock (sulphide) capabilities in the future.
Results of this study are expected in the second quarter of 2023. Conceptual analysis indicates that the
combined Fekola and Anaconda processing facilities could have the potential to produce more than
800,000 ounces of gold per year commencing as early as 2026.
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• Continued investment in near-mine exploration in Mali: The Company is drilling to infill and extend
the saprolite resource area and to follow up on the sulphide mineralization at the Anaconda area,
including the Mamba and Adder zones, and several other targets below the saprolite mineralization.
The good grade and width combinations at the Anaconda area continue to provide a strong indication
of the potential for Fekola-style south plunging bodies of sulphide mineralization, which remains open
down plunge. Seven drill rigs are currently drilling in the Anaconda area and one drill rig is currently
operating on Bakolobi. On the Mamba zone, drill results are particularly significant as they confirm the
continuity of high grade sulphide mineralization 110 metres below the limit of the updated Mineral
Resource pit boundaries. In the main Anaconda area Mineral Resource pit, drill results demonstrate the
potential to add sulphide Mineral Resources beneath the currently defined saprolite resources, where
the mineralization remains open at depth.
• B2Gold and joint venture partner AngloGold Ashanti Limited (“AngloGold”) intend to initiate a
joint sales process for Gramalote: B2Gold and partner AngloGold have completed a comprehensive
review of the alternatives relating to the Gramalote project and consider that the interests of all
stakeholders would be best served by finding a buyer for the project. The partners intend to commence
a joint sales process for the Gramalote project in the fourth quarter of 2022.
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Third Quarter and Y ear-to-Date 2022 Results
Three months ended Nine months ended
September 30, September 30,
2022 2021 2022 2021
Gold revenue ($ in thousands) 392,554 510,859 1,140,122 1,236,151
Net (loss) income ($ in thousands) (21,234) 134,871 110,255 307,685
(Loss) earnings per share – basic(1) ($/ share) (0.02) 0.12 0.09 0.27
(Loss) earnings per share – diluted(1) ($/ share) (0.02) 0.12 0.09 0.27
Cash provided by operating activities ($ thousands) 93,118 320,283 325,307 457,821
Average realized gold price ($/ ounce) 1,711 1,782 1,810 1,794
Adjusted net income(1)(2) ($ in thousands) 31,996 122,750 142,340 272,646
Adjusted earnings per share(1)(2) – basic ($) 0.03 0.12 0.13 0.26
Excluding equity investment in Calibre:
Gold sold (ounces) 229,400 286,650 629,800 689,051
Gold produced (ounces) 214,903 295,723 620,234 698,746
Cash operating costs(2) ($/ gold ounce sold) 810 456 741 544
Cash operating costs(2) ($/ gold ounce produced) 798 418 749 532
Total cash costs(2) ($/ gold ounce sold) 926 572 862 666
All-in sustaining costs(2) ($/ gold ounce sold) 1,154 777 1,100 887
Including equity investment in Calibre:
Gold sold (ounces) 241,558 301,153 669,776 732,986
Gold produced (ounces) 227,016 310,261 660,004 742,517
Cash operating costs(2) ($/ gold ounce sold) 824 482 760 568
Cash operating costs(2) ($/ gold ounce produced) 815 445 767 556
Total cash costs(2) ($/ gold ounce sold) 939 596 878 687
All-in sustaining costs(2) ($/ gold ounce sold) 1,169 795 1,108 900
(1) Attributable to the shareholders of the Company.
(2) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined
or determined under IFRS and presented in the Company’ s financial statements, refer to “Non-IFRS Measures”.
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Operations
Fekola Mine - Mali
Three months ended Nine months ended
September 30, September 30,
2022 2021 2022 2021
Gold revenue ($ in thousands) 230,023 288,306 652,361 712,302
Gold sold (ounces) 135,150 161,550 361,800 396,750
Average realized gold price ($/ ounce) 1,702 1,785 1,803 1,795
Tonnes of ore milled 2,285,423 2,361,042 6,906,172 6,730,332
Grade (grams/ tonne) 1.90 2.30 1.72 1.98
Recovery (%) 93.1 94.8 92.9 94.2
Gold production (ounces) 129,933 165,557 354,647 404,256
Cash operating costs(1) ($/ gold ounce sold) 694 424 667 494
Cash operating costs(1) ($/ gold ounce produced) 728 363 667 478
Total cash costs(1) ($/ gold ounce sold) 829 563 809 640
All-in sustaining costs(1) ($/ gold ounce sold) 978 716 971 772
Capital expenditures ($ in thousands) 20,353 27,961 68,779 54,078
Exploration ($ in thousands) 3,392 2,096 13,848 9,323
(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 Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) produced 129,933
ounces in the third quarter of 2022, lower than expected due to a challenging rainy season in West Mali
which temporarily delayed access to higher grade ore from Fekola open-pit Phase 6. In early October 2022,
mining commenced from the higher grade Fekola open-pit Phase 6 as the region exited its rainy season
(which typically runs from June to September). Ore production from Fekola open-pit Phase 6 is forecast to
average between 3.4 to 3.5 g/t gold. Over the full fourth quarter of 2022, gold grade mined is anticipated to
average over 3.0 g/t gold.
The Fekola Mine’s cash operating costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were
$728 per gold ounce produced ( $694 per gold ounce sold). Operating costs were higher than expected in
the third quarter of 2022 largely due to fuel and explosive prices and increases in mining equipment
maintenance costs.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 for the Fekola Mine
were $978 per gold ounce sold. All -in sustaining costs for the third quarter of 2022 were higher than
expected as a result of higher cash operating costs described above and lower gold ounces sold partially
offset by realized gains on the settlement of fuel derivatives.
Capital expenditures in the third quarter of 2022 totalled $20 million primarily consisting of $11 million
for mobile equipment purchases and rebuilds, $6 million for tailings storage facility expansio n and
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equipment, $2 million for process plant and other site maintenance and $1 million for the development of
the Cardinal zone.
On July 3, 2022, ECOWAS removed the economic, financial and diplomatic sanctions imposed on Mali in
January 2022. The sanctions were removed by ECOWAS after the interim Malian Government announced
a two-year transition to presidential elections and promulgated a new electoral law. Mali’s borders with its
neighbouring countries are now open to normal commercial traffic and ordinary supply routes are available.
Throughout the period of the sanctions, the Fekola Mine continued to operate normally and meet its
production targets while maintaining a good working relationship with the interim Government.
Based on an expected strong fourth quarter of 2022 performance, as the region exits its rainy season and
with higher grade production forecast from Fekola open -pit Phase 6, the Company re -affirms the Fekola
Mine’s annual production guidance range of between 570,000 to 600,000 ounces of gold. Cash operating
costs for the year are expected to be within Fekola's guidance range of between $510 and $550 per gold
ounce produced and all -in sustaining costs are also expected to be within Fekola's guidance range of
between $840 and $880 per gold ounce.
Masbate Mine – The Philippines
Three months ended Nine months ended
September 30, September 30,
2022 2021 2022 2021
Gold revenue ($ in thousands) 107,936 117,795 290,704 325,627
Gold sold (ounces) 62,600 66,300 160,150 181,641
Average realized gold price ($/ ounce) 1,724 1,777 1,815 1,793
Tonnes of ore milled 1,888,722 1,840,379 5,885,163 5,652,091
Grade (grams/ tonne) 1.10 1.24 1.12 1.17
Recovery (%) 74.7 81.6 77.1 82.5
Gold production (ounces) 49,902 61,207 164,041 175,598
Cash operating costs(1) ($/ gold ounce sold) 879 546 815 597
Cash operating costs(1) ($/ gold ounce produced) 867 609 801 611
Total cash costs(1) ($/ gold ounce sold) 977 643 922 698
All-in sustaining costs(1) ($/ gold ounce sold) 1,110 751 1,076 820
Capital expenditures ($ in thousands) 10,158 7,023 29,908 20,365
Exploration ($ in thousands) 696 1,446 3,111 3,871
(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 produced 49,902 ounces in the third quarter of 2022. Gold production
was 4% less than expected as the ratio of sulphide and transit ional ore to oxide ore was higher than
forecasted in the third quarter of 2022, which contributed to the lower throughput and gold recovery and
higher gold mill feed grade.
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The Masbate Mine's cash operating costs (refer to “Non-IFRS Measures”) for the thi rd quarter of 2022
were $867 per gold ounce produced ($879 per gold ounce sold). Cash operating costs per ounce produced
for the third quarter of 2022 were higher than expected as a result of slightly lower gold production and
higher mining and processing costs resulting from higher than expected diesel and heavy fuel oil cost.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were $1,110 per gold
ounce sold. All-in sustaining costs for the third quarter of 2022 were in line with expectations as a result of
offsetting factors. Slightly higher cash operating costs as described above and slightly higher capital
expenditures due to timing differences were offset by realized gains on the settlement of fuel derivatives
and higher gold ounces sold.
Capital expenditures in the third quarter of 2022 totalled $10 million, primarily consisting of $5 million for
mobile equipment purchases and rebuilds, $2 million for an additional powerhouse generator and $1 million
for tailings storage facility construction.
For the full year 2022 the Masbate Mine is expected to produce towards the lower end of increased guidance
of between 215,000 and 225,000 ounces of gold (original guidance range was between 205,000 and 215,000
ounces of gold). For full -year 2022, with the increases being experienced in fuel prices, Masbate's cash
operating costs are now expected to be at the lower end of Masbate's previously revised 2022 guidance
range of between $820 and $860 per gold ounce (original guidance range was between $740 and $780 per
gold ounce). The all -in sustaining cost guidance range remains unchanged and are expected to be at the
upper end of Masbate's guidance range of between $1,070 and $1,110 per gold ounce.
Otjikoto Mine - Namibia
Three months ended Nine months ended
September 30, September 30,
2022 2021 2022 2021
Gold revenue ($ in thousands) 54,595 104,758 197,057 198,222
Gold sold (ounces) 31,650 58,800 107,850 110,660
Average realized gold price ($/ ounce) 1,725 1,782 1,827 1,791
Tonnes of ore milled 877,249 901,216 2,573,360 2,656,367
Grade (grams/ tonne) 1.27 2.41 1.25 1.42
Recovery (%) 98.0 98.7 98.3 98.3
Gold production (ounces) 35,068 68,959 101,546 118,892
Cash operating costs(1) ($/ gold ounce sold) 1,165 443 881 635
Cash operating costs(1) ($/ gold ounce produced) 958 382 948 597
Total cash costs(1) ($/ gold ounce sold) 1,234 515 954 707
All-in sustaining costs(1) ($/ gold ounce sold) 1,625 781 1,247 1,137
Capital expenditures ($ in thousands) 20,292 19,371 59,575 59,337
Exploration ($ in thousands) 896 1,257 2,275 2,846
(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 Otjikoto Mine in Namibia, in which the Company holds a 90% interest, produced 35,068 ounces in the
third quarter of 2022, lower than expected due to delays in bringing the Wolfshag Underground mine into
production. Project delays were due to issues achieving development rates in prior periods, which have
been addressed through the appointment of a new underground development contractor in April 2022 .
Development rates in the Wolfshag Underground mine have improved and are in line with budget, with
access to initial development ore achieved in the third quarter of 2022 and stope ore production having
commenced in the fourth quarter of 2022. Mined ore tonnage and grade continue to reconcile well with
Otjikoto's resource model, with production anticipated to significantly increase in the fourth quarter of 2022
when mining reaches a higher -grade zone in the Otjikoto pit and with stope ore production from the
Wolfshag Underground mine.
Cash operating costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were $958 per gold
ounce produced ($1,165 per gold ounce sold). Cash operating costs per ounce produced for the third quarter
of 2022 were hig her than expected as a result of lower production due to delays in accessing Wolfshag
Underground production (which has commenced in the fourth quarter of 2022) and higher fuel costs
partially offset by a weaker than expected Namibian dollar.
All-in sustaining costs (refer to “Non-IFRS Measures”) for the third quarter of 2022 were $1,625 per gold
ounce sold. All-in sustaining costs for the third quarter of 2022 were higher than expected as a result of the
higher cash operating costs described above and lower gold ounces sold, partially offset by lower sustaining
capital expenditures and realized gains on the settlement of fuel derivatives. The lower sustaining capital
expenditures are mainly a result of delays in underground development resulting in undergr ound
development costs being classified as non-sustaining instead of sustaining as budgeted.
Capital expenditures for the third quarter of 2022 totalled $20 million, primarily consisting of $8 million
for Wolfshag underground mine development, $7 million for prestripping in the Otjikoto pit, $3 million for
mobile equipment purchases and rebuilds and $1 million to complete the national power grid connection
line.
The Otjikoto Mine is expected to produce towards the lower end of its previously revised guidance range
of between 165,000 and 175,000 ounces of gold in 2022 (original guidance range of 175,000 to 185,000
ounces). Overall and after factoring in the operati ng results for the first nine months of 2022, Otjikoto's
costs guidance ranges for full -year 2022 remain unchanged. For full -year 2022, cash operating costs are
expected to be within the Company's guidance range of between $740 and $780 per gold ounce and all-in
sustaining costs are expected to be within its guidance range of between $1,120 and $1,160 per gold ounce.
Fekola Complex Regional Development and Exploration
Development
Based on the updated Anaconda area Mineral Resource estimate and B2Gold's preliminary planning, the
Company has demonstrated that the Anaconda area (Bantako and Menankoto license areas) could provide