B2Gold Reports Record 2019 Annual Gold Production of 980,219 Ounces and 2020 Budget Guidance Including Forecast Gold Production of 1,000,000 to 1,055,000 Ounces
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News Release
B2Gold Reports Record 2019 Annual Gold Production of 980,219 Ounces and
2020 Budget Guidance Including Forecast Gold Production of 1,000,000 to 1,055,000 Ounces
Vancouver, January 15, 2020 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announce its consolid ated gold production and gold revenues
for the fourth quarter and full-year 2019, in addition to its p roduction and budget guidance for 2020. All
dollar figures are in United States dollars unless otherwise indicated.
2019 Gold Production and Revenue Highlights
Fourth quarter consolidated gol d production of 2 34,416 ounces ( including 6,010 ounces from
discontinued operations) (1) or 245,140 ounces (including 10,724 ounces relating to B2Gold’s
attributable share of ounces from Calibre)(2)
Fourth quarter consolidated gold revenues from continuing opera tions of $314 million on sales of
211,800 ounces; consolidated gold revenues (see “Non-IFRS Measures”) of $324 million on sales of
218,437 ounces, including gold sales from the discontinued operations
Record annual consolidated gold production of 969,495 ounces (i ncluding 118,379 ounces from
discontinued operations) or 980,219 ounces (including 10,724 ounces relating to B2Gold’s attributable
share of ounces from Calibre), which exceeded the upper end of the Company’s guidance range (of
between 935,000 and 975,000 ounces), and marks the eleventh consecutive year that B2Gold achieved
record annual consolidated gold production
Annual gold production from the Fekola Mine, Masbate Mine and Otjikoto Mine all exceeded the upper
end of their 2019 production guidance ranges
Annual consolidated gold revenu es from continuing operations of $1,156 million on sales of 827,800
ounces; annual consolidated gold revenues (see “Non-IFRS Measures”) of $1,318 million on sales of
943,465 ounces, including gold sales from discontinued operations
Consolidated cash costs (see “Non-IFRS Measures”) are projected to remain low for 2019 with cash
operating costs forecast to be at or below the lower end of the Company's $520 and $560 per ounce
guidance range and all-in sustaining costs (“AISC”) (see “Non-IFRS Measures”) t o b e w i t h i n t h e
Company’s $835 and $875 per ounce guidance range
In December 2019, the Fekola Mine exceeded one million ounces o f gold production (since the
commencement of ore processing began in September 2017), achieving this milestone a full year ahead
of the original production schedule (2015 Technical Report)
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B2Gold is also pleased to announce the appointment of Ms. Liane Kelly to its Board of Directors
effective January 1, 2020
2020 Budget Highlights
For 2020, B2Gold remains well positioned for continued strong operational and financial performance
with production guidance of between 1,000,000 and 1,055,000 oun ces of gold (including attributable
ounces of between 45,000 and 50,000 from Calibre) with forecast cash operating costs of between $415
and $455 per ounce and AISC of between $780 and $820 per ounce
The Fekola Mine expansion project to increase Fekola’s processi ng throughput by 1.5 million tonnes
per annum (“Mtpa”) to 7.5 Mtpa from an assumed base rate of 6 Mtpa is scheduled to be completed by
the end of the third quarter of 2020
New large-scale off-grid Fekola solar plant project is schedule d for completion in August 2020;
expected to provide significant operating cost reductions (estimated to reduce Fekola’s processing costs
by approximately 7%)
B2Gold plans to complete a final feasibility study for the join t venture Gramalote Gold Project in
Colombia by December 31, 2020
Following a very successful year for exploration in 2019, B2Gold is planning another year of aggressive
exploration in 2020 with a budget of approximately $51 million
Based on current assumptions, including a gold price of $1,500 per ounce, the Company expects to
generate cashflows from operating activities of approximately $ 700 million in 2020 and to repay the
remaining outstanding balance of its revolving credit facility (“RCF”) of $200 million during the year
(1) On October 15, 2019, B2Gold and Calibre Mining Corp. (“Calibre”) completed the transaction for B2Gold to
restructure its interests in, and for Calibre to acquire, the El Limon and La Libertad mines. Accordingly, for the period
to October 15, 2019, for financial reporting purposes, the Company has classified the El Limon and La Libertad mines’
production and results as discontinued operations.
(2) Commencing from October 15, 2019, B2Gold applies the equity method of accounting for its ownership interest in
Calibre (approximately 34%) and reports its attributable share of Calibre production ounces as part of its total
production results.
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2019 Gold Production
Mine-by-mine gold production (ounces) in the fourth quarter and full-year 2019 was as follows:
Mine Q4 2019
Gold
Production
(ounces)
Full-year 2019
Gold
Production
(ounces)
Revised
Annual Guidance
Gold Production
(ounces)
Original
Annual Guidance
Gold Production
(ounces)
Fekola 119,243 455,810 445,000 - 455,000 420,000 - 430,000
Masbate 50,741 217,340 200,000 - 210,000 200,000 - 210,000
Otjikoto 58,422 177,966 165,000 - 175,000 165,000 - 175,000
From
Continuing
Operations
228,406 851,116 810,000 - 840,000 785,000 - 815,000
La Libertad 2,914 71,091 73,000 - 77,700 95,000 - 100,000
El Limon 3,096 47,288 41,800 - 46,100 55,000 - 60,000
From
Discontinued
Operations (1)
6,010 118,379 114,800 - 123,800 150,000 - 160,000
B2Gold
Consolidated (2) 234,416 969,495 924,800 - 963,800 935,000 - 975,000
Equity interest
in Calibre (3) 10,724 10,724 10,200 - 11,200 -
Total 245,140 980,219 935,000 - 975,000 935,000 - 975,000
(1) “Discontinued Operations” includes El Limon’s and La Libertad’s gold production for the period from January 1, 2019
to the date of their sale on October 15, 2019.
(2) “B2Gold consolidated” production and guidance are presented on a 100% basis.
(3) “Equity interest in Calibre” represents the Company’s (approximate 34%) indirect share of production from Calibre’s
El Limon and La Libertad mines for th e stub period from October 15, 2019 to December 31, 2019. B2Gold applies the
equity method of accounting for its 34% ownership interest in Calibre.
Consolidated cash costs are projected to remain low for 2019 with cash operating costs forecast to be at or
below the lower end of the Company's $520 and $560 per ounce guidance range and AISC to be within the
Company's $835 and $875 per ounce guidance range. B2Gold will r elease its 2019 year-end consolidated
financial statements after the North American markets close on February 27, 2020. Details of the
consolidated cash operating costs per ounce and AISC per ounce will be included.
2020 Production Outlook and Cost Guidance
In 2020, B2Gold remains well positioned for continued strong operational and financial performance with
consolidated gold production forecast to be in the range of bet ween 955,000 and 1,005,000 ounces.
Including the Company’s 34% share of attributable ounces projec ted from Calibre’s El Limon and La
Libertad mines (of between 45,000 and 50,000 ounces), the Compa ny’s total gold production is expected
to be between 1,000,000 and 1,0 55,000 ounces in 2020. Gold prod uction in 2020 is anticipated to be
marginally weighted towards the second-half of the year (52%).
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With higher gold production forecast for 2020, continued cost c ontrols and the sale of the Company’s
higher-cost Nicaraguan mines completed, the Company’s consolidated cash operating costs per ounce and
AISC per ounce are both projected to further decrease in 2020 ( compared to 2019 guidance). The
Company’s consolidated cash operating costs are forecast to decrease significantly in 2020 and be between
$415 and $455 per ounce (including forecast cash operating costs from B2Gold’s attributable 34% share of
Calibre production), approximately 19% lower than the Company’s 2019 guidance range (of between $520
and $560 per ounce). The Company’s consolidated AISC are foreca st to be between $780 and $820 per
ounce (including forecast AISC from B2Gold’s attributable 34% s hare of Calibre production),
approximately 6% lower than the Company’s 2019 guidance range (of between $835 to $875 per ounce).
Mine-by-mine 2020 ranges (including the Company’s 34% share of Calibre’s El Limon and La Libertad
mines) for forecast gold production, cash operating costs per ounce and AISC per ounce are as follows:
Mine
2020 Forecast
Gold Production
(ounces)
2020 Forecast
Cash Operating Costs
($ per ounce)
2020 Forecast
AISC
($ per ounce)
Fekola 590,000 - 620,000 $285 - $325 $555 - $595
Masbate 200,000 - 210,000 $665 - $705 $965 - $1,005
Otjikoto 165,000 - 175,000 $480 - $520 $1,010 - $1,050
B2Gold Consolidated (1) 955,000 – 1,005,000 $395 - $440 $765 - $805
Equity interest in Calibre (2) 45,000 - 50,000 $720 - $760 $1,020 - $1,060
Total 1,000,000 – 1,055,000 $415 - $455 $780 - $820
(1) “B2Gold consolidated” forecasts are all 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” forecasts re present the Company’s 34% indirect shar e of the operations of Calibre’s El
Limon and La Libertad mines. B2Gold applies the equity method of accounting for its 34% ownership interest in Calibre.
Fekola Gold Mine - Mali
The low-cost Fekola Mine is forecast to produce between 590,000 and 620,000 ounces of gold in 2020, a
significant increase of 33% (approximately 150,000 ounces) over 2019. Gold production is forecast to be
marginally weighted to the second half of the year (52%) and be relatively consistent throughout the year,
even though the expansion of the Fekola processing plant is not scheduled to be completed until the end of
the third quarter of 2020. The consistent production throughout the year is mainly due to the expansion of
the Fekola mining fleet and optimization of the mining sequence early in the year which will provide access
to higher grade portions of the deposit earlier on in the seque nce. When the mill expansion comes into
service, lower grade ore is expected to be processed (rather th an being stockpiled) during the second half
of the year.
With the significant increase in gold production forecast for 2020 (as well as the planned impact of the new
Fekola solar plant once construction is completed), Fekola’s ca sh operating costs are forecast to
significantly decline and be between $285 and $325 per ounce (approximately 22% below its 2019 guidance
range of between $370 and $410 per ounce). Fekola’s AISC are al so forecast to decline and be between
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$555 and $595 per ounce (approximately 11% below its 2019 guida nce range of between $625 and $665
per ounce).
In 2020, the Fekola Mine is budgeted to process a total of 6.84 million tonnes of ore at an average grade of
2.91 grams per tonne (“g/t”) and process gold recovery of 93.8%.
Sustaining capital costs in 2020 at the Fekola Mine are budgeted to total $77 million, including $46 million
for pre-stripping (relating to Phases 5 and 6 of the Fekola Pit ), $12 million for mobile equipment rebuilds
and $8 million for a tailings f acility expansion. The tailings facility expansion is a double raise and will
provide tailings storage capacity through 2022. Non-sustaining capital costs total $105 million, including
$51 million to expand the mining fleet (of which $40 million is expected to be funded by equipment loans),
$25 million to expand the processing facilities, and $21 million to construct a solar power plant.
The Fekola Mine expansion project to increase Fekola’s processing throughput by 1.5 million Mtpa to 7.5
Mtpa from an assumed base rate of 6 Mtpa is scheduled to be com pleted by the end of the third quarter of
2020. The processing upgrade will focus on increased ball mill power, with upgrades to other components
including a new cyclone classification system, pebble crushers, and additional leach capacity to support the
higher throughput and increase of operability. The mining rate at Fekola will also be increased, along with
additional mining equipment to accelerate the supply of higher- grade ore to the expanded processing
facilities. Construction of the processing expansion commenced in October 2019 and is expected to be
completed by the end of the third quarter of 2020. Mining fleet expansion equipment has started to arrive
on site ahead of schedule, with one excavator and two haul trucks expected to enter service in January 2020.
The Fekola solar plant engineering and construction progressed well in the second half of 2019 and remains
within budget and on schedule for completion in the third quart er of 2020. The Fekola solar plant will be
one of the largest off-grid hybrid solar/Heavy Fuel Oil (“HFO”) plants in the world with a 30 Megawatt
(“MW”) solar component combined with 64 MW of HFO and diesel ge nerating capacity. The solar plant
will also have a 15.4 MW hour battery component with up to 17.3 MW of discharge power. The project
has a four-year payback and is estimated to reduce processing c osts by over 7%. HFO consumption is
estimated to be reduced by approximately 13.1 million litres pe r year, eliminating approximately 39,000
tonnes per year of carbon dioxide emissions.
Further details of the Fekola pit design, production schedule, and costs will be included in B2Gold’s Annual
Information Form to be filed by March 30, 2020, and in a Technical Report to be filed concurrently.
Masbate Gold Mine - the Philippines
In 2020, the Masbate Mine is expected to produce between 200,00 0 and 210,000 ounces of gold. Gold
production is scheduled to be weighted towards the second half of the year (54%), as mined grade from the
new Montana Pit is expected to be higher in the second half of the year. Masbate’s cash operating costs are
forecast to be between $665 to $705 per ounce, approximately 6% higher than its 2019 guidance (of between
$625 to $665 per ounce). Masbate’s AISC are forecast to be betw een $965 to $1,005 per ounce,
approximately 12% higher than its 2019 guidance (of between $86 0 to $900 per ounce), reflecting higher
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budgeted costs for processing, mobile equipment rebuilds and ex ploration (see “2020 Exploration
Guidance” section).
In 2020, Masbate is budgeted to process a total of 8.2 million tonnes of ore at an average grade of 1.01 g/t
and process gold recovery of 76.3%. Mill feed is budgeted to consist primarily of fresh ore (86%), sourced
from the Main Vein Pit (Stages 4, 5 and 7) (78%) and from the Montana Stage 1 Pit (22%).
Sustaining capital costs in 2020 at the Masbate Mine are budgeted to total $28 million, including $10 million
for pre-stripping, $9 million for mobile fleet rebuilds and rep lacements, and $3 million for power plant
rebuilds. Non-sustaining capital costs are budgeted to total $5 million.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine is forecast to produce between 165,000 and 17 5,000 ounces of gold in 2020, from the
Otjikoto and Wolfshag Pits. Gold production is scheduled to be consistent throughout the year, as high-
grade ore from the Wolfshag Pit is blended with medium-grade or e from the Otjikoto Pit. Otjikoto’s cash
operating costs are forecast to be between $480 and $520 per ou nce, a reduction of approximately 7%
compared to its 2019 guidance range (of between $520 and $560 p er ounce). Otjikoto’s AISC are forecast
to be between $1,010 to $1,050 per ounce, approximately 11% hig her than its 2019 guidance range (of
between $905 and $945 per ounce), mainly due to higher budgeted pre-stripping sustaining capital costs
(relating to Phase 3 of the Otjikoto Pit and Phase 3 of the Wolfshag Pit).
In 2020, Otjikoto is budgeted to process a total of 3.4 million tonnes of ore at an average grade of 1.55 g/t
and process gold recovery of 98%. The Wolfshag Pit will be the primary ore source (accounting for 65%
of the high-grade and medium-grade ounces due to higher grades).
Sustaining capital costs in 2020 at the Otjikoto Mine are budgeted to total $70 million, including $57 million
for pre-stripping and $11 million for mobile equipment rebuilds and equipment purchases. Non-sustaining
capital costs total $25 million, including $18 million for initial development of the Wolfshag Underground
project and $7 million for a connection to the national power grid.
In December 2019, the B2Gold Board of Directors approved the de velopment of the Wolfshag
Underground Mine. This project will bring forward production of high-grade ore from the Wolfshag
orebody and reduce production costs. The mine development will also provide access for down-plunge and
parallel exploration and has been designed to support future ex pansions. Project spending is currently
estimated to total $57 million (of which $18 million is budgete d to be incurred in 2020) from completion
of the internal study to production of stope ore. Portal development is expected to begin in the third quarter
of 2020 with initial stope ore p roduction in the first quarter of 2022. Further details will be included in
B2Gold’s Annual Information Form to be filed by March 30, 2020.
2020 Gramalote Joint Venture Budget
Based on an amended and restated shareholders agreement with An glogold Ashanti (“AngloGold”), on
January 1, 2020 B2Gold became the operator of the joint venture Gramalote Gold Project in Colombia.
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Under the terms of the agreement, B2Gold will sole fund the fir st $13.9 million of expenditures on the
Gramalote Project (the “Sole Fund Amount”), following which B2Gold will hold a 50% ownership interest
in the joint venture (B2Gold currently holds a 48.3% interest). Both joint venture partners will continue to
have equal representation on the joint venture management commi ttee. Following the expenditure of the
Sole Fund Amount, each joint venture partner will fund its share of expenditures pro rata.
The 2020 budget for the project is $37.4 million and under the terms of the agreement B2Gold will fund
$25.7 million (including the Sole Fund Amount). The budget will fund 42,500 metres of infill drilling and
7,645 metres of geotechnical drilling for site infrastructure. The purpose of the infill drilling is to confirm
and upgrade the Inferred Mineral Resources to Indicated status and is expected to be completed by the end
of May 2020. The budget will also fund additional feasibility work including an updated Mineral Resource
estimate, detailed mine planning, additional environmental stud ies, metallurgical test work, engineering
and detailed economic analysis.
B2Gold plans to announce the results of a Preliminary Economic Assessment for the Gramalote Project
within the week of January 20, 2020 and to complete a final feasibility study by December 31, 2020. With
prior testing programs that have been completed and the high le vel of engineering performed in 2017 for
an internal pre-feasibility study, the engineering work remaining to get to final feasibility is not extensive.
The Environmental Impact Study and Project Implementation Plans for the Gramalote Project have been
fully approved by the National Authority of Environmental Licen ses of Colombia. Due to the desired
modifications to the processing plant and infrastructure locati ons, a Modified Environment Impact Study
and a Modified Project Implementation plan were submitted and are currently in the final approval process.
If the final economics of the feasibility study are positive and the joint venture makes the decision to develop
Gramalote as an open-pit gold mine, B2Gold would utilize its pr oven internal mine construction team to
build the mine and mill facilities.
2020 Exploration Guidance
Following a very successful year for exploration in 2019 (the C ompany intends to announce an updated
Fekola Mineral Resource Statement later this week), B2Gold is p lanning another year of aggressive
exploration in 2020 with a budget of approximately $33 million (excludes drilling included in the Gramalote
joint venture budget). Exploration will once again focus predominantly in West Africa, as well as the other
operating mine sites in Namibia and the Philippines. The Compan y has also allocated an additional $18
million for its grassroots exploration programs for a total exploration budget of $51 million for 2020.
Mali Exploration
In 2020, approximately $18 million is budgeted to be spent on exploration in Mali. The Company plans to
focus on expanding the main Fekola deposit to the north and test several near mine potential open pit targets
such as Fekola South, Cardinal, FNZ and Kingfisher structures with an allocation of approximately 20,000
metres of drilling. In January 2020, drilling recommenced in Mali.
In 2020, the Company has also budgeted approximately 41,000 metres of diamond drilling and RC drilling
on several zones in the Anaconda Area, located approximately 20 kilometres from Fekola. Exploration will
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focus on increasing the known saprolite resources at the Adder and Mamba zones and further testing the
underlying sulphide mineralization at the Mamba zone. At Adder, drilling has extended the strike extent of
mineralization up to 1 kilometre north of the known resource area. At Mamba, recent drilling has extended
the high-grade mineralized saprolite zone by approximately 600 metres, resulting in more than 1 kilometre
of known strike length, and has led to the discovery of a continuous bedrock sulphide zone down plunge of
the Mamba zone’s saprolite mineralization. This Fekola-style, s outh-plunging body of sulphide
mineralization remains open down plunge and will be the subject of extensive drilling in 2020.
Masbate Gold Mine - the Philippines
The Masbate exploration budget for 2020 is approximately $8 mil lion, including approximately 25,000
metres of diamond and RC drilling. The 2020 exploration program will focus on drill testing the most
prospective inferred mineral resources below existing design pi ts to determine if existing open pits can be
expanded. Several grassroot greenfield targets that have seen v ariable exploration and drilling will be
further tested with mapping, trenching and drilling as well.
Namibia Exploration
The total exploration budget f or Namibia in 2020 is $4 million. Exploration in 2020 will include 19,500
metres of diamond drilling and 3,300 metres of RAB drilling spl it between the Otjikoto Project and the
Ondundu joint venture, located approximately 200 kilometres sou thwest of Otjikoto. The majority of the
diamond drilling will be allocated towards testing the Wolfshag zone and near Wolfshag open pit and
underground targets.
Grassroots Exploration
B2Gold has allocated $18 million dollars on several exploration ventures around the world in jurisdictions
and geologic environments that B2Gold believes warrant a commitment of exploration expertise and dollars
to determine if the projects have resource potential.
Liquidity and Capital Resources
Based on current assumptions, including a gold price of $1,500 per ounce, the Company expects to generate
cashflows from operating activities of approximately $700 million in 2020.
At December 31, 2019, the Company had total long-term debt of approximately $260 million outstanding,
composed of $200 million drawn under the RCF with the balance o f $60 million relating to equipment
loans. The Company expects to repay the remaining $200 million of the outstanding RCF balance in 2020,
leaving the Company the full amount of the facility of $600 million as undrawn and available by the end of
the year. During fiscal 2020, the Company expects to draw down an additional $40 million of funding under
its mining fleet loans related to the Fekola expansion fleet and repay approximately $29 million of principal
under its existing mining fleet loans over the course of the year.