B2Gold Reports Quarterly Gold Production of 263,813 Oz and Record Quarterly Revenue of $487 M for Q3 2020; On Track to Meet Annual Production Guidance of 1,000,000 to 1,055,000 Oz
News Release
B2Gold Reports Quarterly Gold Production of 263,813 Oz and
Record Quarterly Revenue of $487 M for Q3 2020;
On Track to Meet Annual Production Guidance of 1,000,000 to 1,055,000 Oz
Vancouver, BC, October 15, 2020 – 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 third
quarter and first nine months of 2020. All dollar figures are in United States dollars unless otherwise
indicated.
2020 Third Quarter Highlights
• Consolidated gold production of 248,733 ounces from the Company’s three operating mines , above
budget by 1% (2,929 ounces) and a significant increase of 17% (35,455 ounces) over the third quarter
of 2019 (excluding discontinued operations of El Limon and La Libertad)
• Total gold production of 263,813 ounces (including 15,080 ounces of attributable production from
Calibre Mining Corp. (“Calibre”))
• Record quarterly consolidated gold revenue of $487 million, a significant increase of $17 6 million
(57%) over the third quarter of 2019 (excluding discontinued operations)
• The Fekola Mine continues to operate unimpeded and no operational days have been lost due to the
recent political developments and demonstrations in Mali
• No Lost-Time-Injury (“LTI”) incidents at the Company’s operating mines , extending the number of
days without a n LTI to 255 days for Fekola, 684 days for Masbate and 918 days for Otjikoto as at
September 30, 2020
• On August 5, 2020, the Company announced a 100% increase of its quarterly dividend to $0.04 per
share (or an expected $0.16 per share on an annual basis) , which was reflected in the third quarter
dividend payment
• On September 10, 2020, the Company announce d the successful commissioning of the Fekola mill
expansion to 7.5 million tonnes per annum (“Mtpa”) (an increase of 1.5 Mtpa from an assumed base
rate of 6 Mtpa), ahead of the scheduled completion date of September 30, 2020; the Fekola mill has the
potential to run above the annualized throughput rate of 7.5 Mtpa and analysis is currently underway
to determine the optimum throughput rate
• B2Gold maintains a strong financial position and liquidity; the Company is now debt -free (other than
mining equipment loans and leases totaling approximately $50 million as at September 30, 2020) after
fully repaying the outstanding Revolving Credit Facility (“RCF”) balance of $425 million during the
third quarter of 2020 with the full amount of the $600 million RCF now undrawn and available
2020 First Nine Months Highlights
• Record year-to-date consolidated gold production from the Company’s three operating mines of
738,939 ounces, well above budget by 4% (26,412 ounces) and a significant increase of 19% (116,229
ounces) over the first nine months of 2019 (excluding discontinued operations)
• Total gold production of 770,268 ounces (including 31,329 ounces of attributable production from
Calibre)
• Record year-to-date consolidated gold revenue of $1.309 billion, a significant increase of $467 million
(56%) over the first nine months of 2019 (excluding discontinued operations)
• For full-year 2020, the Company forecasts total consolidated gold production to come in towards the
midpoint of its guidance range of between 1,000,000 and 1,055,000 ounces, with total consolidated
cash operating costs (see “Non-IFRS Measures”) expected to be at or below the low end of its guidance
range of between $415 and $455 per ounce and total consolidated all-in sustaining costs (“AISC”) (see
“Non-IFRS Measures”) to be at the lower end of its guidance range of between $780 and $820 per
ounce
• Based on current assumptions, including a gold price of $1, 900 per ounce for the balance of 2020, the
Company expects to generate cashflows from operating activities of more than $900 million in 2020
The Company continues to address the COVID-19 pandemic and minimize its potential impact at B2Gold's
operations. B2Gold places the safety and well -being of its workforce and all stakeholders as the highest
priority and continues to encourage input from all its stakeholders as the situation evolve s. The Company
has implemented several measures and introduced additional precautionary steps to manage and respond to
the risks associated with COVID-19 to ensure the safety of B2Gold's employees, contractors, suppliers and
surrounding communities where the Company works while continuing to operate. The Company is
continually updating these plan and response measures based on the safety and well-being of its workforce,
the severity of the pandemic in areas where it operates, global response measures, government restrictions
and extensive community consultation. The Company is working closely with national and local authorities
and continues to closely monitor each site's situation, including public and employee sentiment to ensure
that stakeholders are in alignment with continued safe operation of its mines.
Gold Production and Development
Consolidated gold production from the Company’s three operating mines in the third quarter of 2020 was
248,733 ounces, above budget by 1 % (2,929 ounces) and a significant increase of 1 7% (35,455 ounces)
over the third quarter of 2019 (excluding discontinued operations) with solid performances from all of the
Company’s operations. The significant increase in gold production over the third quarter of 2019 was driven
by the Fekola Mine in Mali, which continued its very strong operational performance with gold production
of 152,535 ounces, above budget by 2% (2,535 ounces), and 36% (40,214 ounces) higher compared to the
third quarter of 2019. Fekola’s significant increase in gold production over the third quarter of 2019 was
mainly due to the expansion of the Fekola mining fleet and optimization of the pit designs and mine plan
for 2020, which have provided access to higher grade portions of the Fekola deposit earlier than anticipated
in previous mine plans. The Otjikoto Mine in Namibia also had a solid third quarter of 2020, producing
42,591 ounces of gold, 2% (985 ounces) above budget. The Masbate Mine in the Philippines continued to
perform well through the third quarter of 2020 despite a 6 -day mill shutdown following an earthquake on
August 18, 2020, producing 53,60 7 ounces of gold, substantially in-line with budget (of 54,198 ounces),
and 4% higher (2,061 ounces) compared to the third quarter of 2019. Including attributable ounces from
Calibre (15,080 ounces), the Company’s total gold production in the third quarter of 2020 was 263,813
ounces.
Consolidated gold production for the first nine months of 2020 was a year -to-date record 738,939 ounces,
4% (26,412 ounces) above budget and 19% (116,229 ounces) higher than the first nine months of 2019
(excluding discontinued operations). Including attributable ounces from Calibre ( 31,329 ounces), the
Company’s total gold production in the first nine months of 2020 was 770,268 ounces.
B2Gold remains well positioned for continued strong operational and financial performance in 2020. For
full-year 2020, the Company forecasts total consolidated gold production (including attributable ounces
from Calibre) to come in towards the midpoint of its production guidance range of between 1,000,000 and
1,055,000 ounces . The Company is currently reviewing the expected cash operating costs and AISC
guidance (B2Gold will release its third quarter and first nine months of 2020 financial results after the North
American markets close on Tuesday, November 3, 20 20). However, consolidated cash costs are expected
to remain low in 20 20, and the Company expects to be at or below the low end of its guidance range for
total consolidated cash operating costs of between $415 and $455 per ounce and at the lower end of its
guidance range for total consolidated AISC of between $780 and $820 per ounce.
The Company’s expansion and development projects also progressed well through the third quarter of 2020:
• At Fekola, on September 10, 2020, the Company announced the successful commissioning of the
Fekola mill expansion to 7.5 Mtpa (an increase of 1.5 Mtpa from an assumed base rate of 6 Mtpa),
approximately one month ahead of the scheduled completion date of Septembe r 30, 2020. The
Fekola mill has the potential to run above the annualized throughput rate of 7.5 Mtpa and analysis
is currently underway to determine the optimum throughput rate. Remobilization of the Fekola
solar plant construction group began in mid-September 2020 (following a temporary suspension of
construction activities in April 2020 due to COVID-19) and will continue to ramp up as camp space
becomes available. The Company expects that the solar plant construction will now be completed
by the end of the first quarter of 2021.
• At Otjikoto, development of the Wolfshag underground mine continues to progress on schedule. In
the third quarter of 2020, the mining contractor was mobilized, and underground development of
the portal and primary ramp has now commenced. S tope ore production is expected to commence
in early 2022, in-line with original estimates.
• At the Gramalote P roject, feasibility work continued as planned from the recommencement of
drilling on May 11, 2020, with infill exploration drilling completed on August 21, 2020. During
the third quarter of 2020, work continued to advance for infrastructure design, process plant design,
pit design and social initiatives. Resource modelling is anticipated to be completed in November
2020 at which time the final phase of the Gramalote Feasibility Study work will proceed based
upon updated resources. The Gramalote Feasibility Study is expected to be completed in the first
quarter of 2021.
Gold Revenue
Consolidated gold revenue in the third quarter of 2020 was a quarterly record of $ 487 million from the
Company’s three operating mines on sales of 2 53,200 ounces at an average price of $1, 924 per ounce,
compared to $311 million on sales of 208,900 ounces at an average price of $1, 488 per ounce in the third
quarter of 2019 (excluding discontinued operations). Compared to the third quarter of 2019, consolidated
gold revenue increased significantly by 57% ($ 176 million), of which 36% related to the increase in the
average realized gold price and 2 1% to the increase in gold ounces sold (mainly due to the higher gold
production).
Consolidated gold revenue for the first nine months of 2020 was a year-to-date record of $1.309 billion on
sales of 749,800 ounces at an average price of $1, 746 per ounce, compared to $842 million on sales of
616,000 ounces at an average price of $1,3 67 per ounce in the first nine months of 2019 (excluding
discontinued operations). Compared to the first nine months of 2019, consolidated gold revenue increased
significantly by 56% ($467 million), of which 34% related to the increase in the average realized gold price
and 22% to the increase in gold ounces sold.
Operations
Mine-by-mine gold production in the third quarter and first nine months of 2020 (including the Company’s
approximate 34% share of Calibre’s production) was as follows:
Mine Q3 2020
Gold Production
(ounces)
First Nine Months 2020
Gold Production
(ounces)
2020
Annual Guidance
Gold Production
(ounces)
Fekola 152,535 463,970 590,000 - 620,000
Masbate 53,607 147,133 200,000 - 210,000
Otjikoto 42,591 127,836 165,000 - 175,000
B2Gold
Consolidated (1) 248,733 738,939 955,000 – 1,005,000
Equity interest in
Calibre (2) 15,080 31,329 45,000 - 50,000 (3)
Total 263,813 770,268 1,000,000 – 1,055,000 (3)
(1) “B2Gold Consolidated” - gold production is presented on a 100% basis, as B2Gold fully consolidates the results of its
Fekola, Masbate and Otjikoto mines in its consolidated financial statements (even though it does not own 100% of these
operations).
(2) “Equity interest in Calibre” - represents the Company’s approximate 34% indirect share of the operations of Calibre’s
El Limon and La Libertad mines in Nicaragua. B2Gold applies the equity method of accounting for its ownership interest
in Calibre.
(3) On June 24, 2020, Calibre provided its revised 2020 production guidance following the temporary suspension of its
Nicaraguan operations due to COVID -19. The Company’s attributable gold production from Calibre is now estimated
to be between 37,000 and 42,000 ounces for 2020 (or 8,000 ounces lower than the original estimate of between 45,000
and 50,000 ounces of gold).
Fekola Gold Mine - Mali
The Fekola Mine in Mali continued its very strong operational performance in the third quarter of 2020
with gold pr oduction of 152,535 ounces, above budget by 2% ( 2,535 ounces), as processed grade and
recovery both exceeded budget and which more than offset lower-than-budgeted throughput in the quarter
due to additional downtime for mill expansion tie -ins and a full SAG mill reline. Compared to the third
quarter of 2019, gold production was significantly higher by 36 % (40,214 ounces). Fekola’s significant
increase in gold production over the third quarter of 2019 was mainly due to the expansion of the Fekola
mining fleet and optimization of the pit designs and mine plan for 2020, which have provided access to
higher grade portions of the Fekola deposit earlier than anticipated in previous mine plans. As at September
30, 2020, the Fekola Mine achieved 255 days without an LTI.
For the third quarter of 2020, mill feed grade was 3.22 grams per tonne (“g/t”) compared to budget of 2.93
g/t and 2.16 g/t in the third quarter of 2019; mill throughput was 1.56 million tonnes compared to budget
of 1.70 million tonnes and 1. 70 million tonnes in the third quarter of 2019; and gold recovery averaged
94.6% compared to budget of 94.0% and 94.1% in the third quarter of 2019.
For the first nine months of 2020, the Fekola Mine produced 463,970 ounces of gold, well above budget by
5% (22,970 ounces) and significantly higher than the first nine months of 2019 by 38% (127,403 ounces).
Through effective mine planning and a successful stockpiling strategy , Fekola was able to exceed its gold
production goals during the construction of its mill expansion in 2020.
The Fekola Mine continues to operate unimpeded and no operational days have been lost due to the recent
political developments in Mali or to the COVID-19 pandemic. With the establishment of a new interim
government in September 2020, expected to lead Mali through to new presidential and legislative elections
within 18 months , the Economic Community of West African States ( “ECOWAS”) has now lifted its
sanctions on Mali , including air, border and financial restrictions. B2Gold will continue to work with
regional and national governments to ensure that its mining operations continue normally, providing
important economic benefits to all stakeholders, including our employees, governments and the
communities around the mine.
For full-year 2020, the Fekola Mine is expected to meet or exceed the upper end of its production guidance
range of between 590,000 and 620,000 ounces of gold, at cash operating costs of between $285 and $325
per ounce and AISC of between $555 and $595 per ounce.
Fekola Mine Expansion
On September 10, 2020, the Company announced the successful commissioning of the Fekola mill
expansion to 7.5 Mtpa (an increase of 1.5 Mtpa from an assumed base rate of 6 Mtpa), ahead of the
scheduled completion date of September 30, 2020. The Fekola mill has the potential to run above the
annualized throughput rate of 7.5 Mtpa and analysis is currently underway to determine the optimum
throughput rate (using ore blends comparable to those planned for 2021 and future production).
Commissioning included comp letion of all major construction activities associated with the Fekola mill
expansion, as well as successful execution of a process performance test to compare with design
expectations. Four days after start -up, a 5-day mill performance test was conducted from August 26 to
August 30, 2020. The results of the performance test exceeded design in throughput, gold recovery, grind
and availability over the 5-day day period. In addition, substantially all of the Fekola mine fleet expansion
equipment planned for 2020 (including excavators, trucks, and drill rigs) have now arrived on site and are
operational, with the overall mine expansion now materially complete.
Fekola Solar Plant
Remobilization of the solar plant construction group began in mid-September 2020 (following a temporary
suspension of construction activities in April 2020 due to COVID-19) and will continue to ramp up as camp
space becomes available. The Company expects that the solar plant construction will now be completed by
the end of the first quarter of 2021. The existing HFO and diesel power plant have an installed capacity of
64 megawatts while Fekola’s expanded mill facilities require only approximately 40 megawatts for
continuous operations. The solar plant is therefore not a necessary component of the mill expansion project
but is expected to reduce Fekola’s operating costs and emissions by decreasing power plant fuel
consumption and maintenance costs.
Masbate Gold Mine – the Philippines
The Masbate Mine in the Philippines also continued to perform well through the third quarter of 2020,
producing 53,607 ounces of gold, substantially in-line with budget (of 54,198 ounces) , and 4% higher
(2,061 ounces) compared to the third quarter of 2019. Following a magnitude 6.6 earthquake approximately
90 kilometres from the mine site on August 18, 2020 , Masbate’s mining and processing operations were
temporarily suspended for five and six days, respectively , for inspections mandated by the Philippines
Mines and Geo -sciences Bureau . Planned maintenance was performed ahead of schedule during the
shutdown period, and normal operations continued after the inspections determined that there was no
damage to the mine from the earthquake. The Company worked with local communities to provide medical,
food, and other support to the impacted areas. The Masbate Mine continued its remarkable safety
performance, extending the number of days without an LTI to 684 days as at September 30, 2020.
For the third quarter of 2020, mill feed grade was 1.0 5 g/t compared to budget of 1.05 g/t and 1.09 g/t in
the third quarter of 2019; mill throughput was 1.97 million tonnes compared to budget of 2.1 million tonnes
and 2.0 million tonnes in the third quarter of 2019; and gold recovery averaged 81.1% compared to budget
of 76.4% and 72.4% in the third quarter of 2019. Average gold recoveries were above budget due to mining
more oxide ore than budgeted.
For the first nine months of 2020, the Masbate Mine produced 147,133 ounces of gold, in-line with budget
(of 147,381 ounces) and 12% (19,466 ounces) lower compared to the first nine months of 2019 (as planned,
mainly due to lower head grade). The on-budget production was achieved despite a 6-day mandated mill
shutdown following an earthquake on August 18, 2020 (for inspections which confirmed that there was no
damage to the mine from the earthquake) and COVID-19-related constraints (including a five-day mining
shutdown in the first quarter of 2020 and working with a reduced workforce through the second quarter of
2020).
For full-year 2020, the Masbate Mine is expected to produce between 200,000 and 210,000 ounces of gold
from the Main Vein and Montana Pits, at cash operating costs of between $665 and $705 per ounce and
AISC of between $965 and $1,005 per ounce.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia also had a solid third quarter of 2020, producing 42,591 ounces of gold, 2%
(985 ounces) above budget , as processed tonnes and recover ies were both slightly better than budget .
Compared to the third quarter of 2019, gold production, as planned, was lower by 14% (6,820 ounces), due
to fewer high-grade ore tonnes being mined from the Wolfshag Phase 2 Pit (than compared to the third
quarter of 2019). Ore production from the Wolfshag Phase 2 Pit had resumed in the second half of 2019
following pre-stripping. The Otjikoto Mine continued its remarkable safety performance, extending the
number of days without an LTI to 918 days as at September 30, 2020.
For the third quarter of 2020, mill feed grade was 1.53 g/t compared to budget of 1.54 g/t and 1.84 g/t in
the third quarter of 2019; mill throughput was 0.8 8 million tonnes compared to budget of 0.86 million
tonnes and 0.84 million tonnes in the third quarter of 2019; and gold recovery averaged 98.2 % compared
to budget of 98.0% and 98.8% in the third quarter of 2019.
For the first nine months of 2020, the Otjikoto Mine produced 127,836 ounces of gold, above budget by
3% (3,690 ounces) and 7% (8,292 ounces) higher than the first nine months of 2019.
Development of the Wolfshag underground mine (the initial underground Mineral Reserve estimate for the
down-plunge extension of the Wolfshag orebody included 210,000 ounces of gold in 1.2 million tonnes of
ore at 5.57 g/t gold) continues to progress on schedule. Engineering of the underground mine continued and
an underground mining contractor was appointed for the development of the underground workings up to
the production stopes. In the third quarter of 2020, the mining contractor was mobilized, and underground
development of the portal and primary ramp has now commenced. S tope ore production is expected to
commence in early 2022, in-line with original estimates.
Exploration at Otjikoto continues to focus on drilling down plunge on the Wolfshag and Otjikoto deposits
which remain open at depth as well as testing stratigraphy east of Wolfshag for new mineralized horizons.
For full-year 2020, the Otjikoto Mine is forecast to produce between 165,000 and 175,000 ounces of gold,
from the Otjikoto and Wolfshag Pits, at cash operating costs of between $480 and $520 per ounce and AISC
of between $1,010 and $1,050 per ounce.
Development
Gramalote Project (B2Gold – 50%/AngloGold Ashanti Limited – 50%) - Colombia
B2Gold commenced its role as manager of the Gramalote Project on January 1, 2020.
Feasibility work at the Gramalote Project continued as planned from the recommencement of drilling on
May 11, 2020, with infill exploration drilling completed on August 21, 2020. During the third quarter of
2020, work continued to advance for infrastructure design, process plant design, pit design and social
initiatives. Resource modelling is anticipated to be complete d in November 2020 at which ti me the final
phase of the Gramalote Feasibility Study work will proceed based upon updated resources. The Gramalote
Feasibility Study is expected to be completed in the first quarter of 2021.
Through the third quarter of 2020, COVID-19 management on-site was successful in allowing the project
to continue with advancements in drilling and social initiatives including ongoing work with resettlement
and small miner initiatives. COVID-19 c ontrol work included pretests, operational protocols, aggressive
contact tracing and close work with local health authorities. While COVID-19 caseloads remain relatively
high in Colombia, in Antioquia commercial activity and personal movement have substantially normalized.
Liquidity and Capital Resources
B2Gold maintains a strong financial position and liquidity. The Company is now debt -free (other than
mining equipment loans and leases totaling approximately $50 million as at September 30, 2020) after fully
repaying the outstanding RCF balance of $425 million during the third quarter of 2020 with the full amount
of the $600 million RCF now undrawn and available.
Based on current assumptions, including a gold price of $1,900 per ounce for the balance of 2020, the
Company expects to generate cashflows from operating activities of more than $900 million in 2020. The
Company’s ongoing strategy is to continue to maximize profitable production from its mines, grow its
mineral reserves, utilize cash flow to continue the dividend payment, further advance its pipeline of
development and exploration projects and evaluate growth opportunities.
About B2Gold Corp.
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in
2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines and numerous
exploration and development projects in various countries including Mali , Colombia and Burkina Faso.
B2Gold continues to forecast total consolidated gold production of between 1,000,000 and 1,055,000
ounces in 2020.
Qualified Persons
Bill Lytle, Senior Vice President of Operations, a qualified person under NI 43-101, has approved the
scientific and technical information related to operations matters contained in this news release.
Third Quarter and First Nine Months of 2020 Financial Results - Conference Call Details
B2Gold will release its third quarter and first nine months of 2020 financial results after the North American
markets close on Tuesday, November 3, 2020.