B2Gold Reports Record First Quarter Gold Production and Revenue in 2018; Quarterly Gold Production Increase of 81% to 240,000 Ounces and Revenues More than Double to $344 Million
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News Release
B2Gold Reports Record First Quarter Gold Production and Revenue in 2018;
Quarterly Gold Production Increase of 81% to 240,000 Ounces and
Revenues More than Double to $344 Million
Vancouver, April 11, 2018 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announ ce its gold production and gold revenue for the first
quarter of 2018. All dollar figures are in United States dollars unless otherwise indicated.
First Quarter 2018 Highlights
• Record quarterly consolidated gold production of 239,684 ounces, a significant increase of 81% (or
106,948 ounces) over the same period last year, an d 7% (or 16,252 ounces) ab ove budget, due to the
continued strong performances of the Fekola Mine in Mali, Masbate Mine in the Philippines and the
Otjikoto Mine in Namibia
• Record quarterly consolidated gold revenue of $344.3 million, a significant increase of 135% (or
$198.0 million) over the same period last year
• Fekola Mine continued to opera te above plan since achieving commercial production on November
30, 2017, producing 114,142 ounces of gold in the quarter, 11% (or 11,228 ounces) above budget
• B2Gold is well on target to achieve transformationa l growth in 2018 and meet its annual guidance of
between 910,000 and 950,000 ounces of gold production in 2018 at cash operating costs ( see “Non-
IFRS Measures” ) of between $505 and $550 per ounce and all-in sustaining costs (“AISC”) ( see
“Non-IFRS Measures”) of between $780 and $830 per ounce
Gold Production
With the large, low-cost Fekola Mine now in producti on, consolidated gold production in the first quarter
of 2018 was a quarterly record of 239,684 ounces, a significant increase of 81% (or 106,948 ounces) over
the same period last year, and 7% (or 16,252 ounces) above budget. In its first full quarter of operations
(after achieving commercial productio n on November 30, 2017, within only 60 days from start-up), the
new Fekola Mine continued to operate above plan, producing 114,142 ounces of gold in the first quarter
of 2018, 11% (or 11,228 ounces) above budget. The Masb ate Mine and Otjikoto Mine also had a solid
start to the year with both mines exceeding their targeted production levels for the quarter.
B2Gold is well on target to achieve transformational growth in 2018. For full-year 2018, with the planned
first full year of production from the Fekola Mine, cons olidated gold production is forecast to be between
910,000 and 950,000 ounces. This re presents an increase in annual consolidated gold production of
approximately 300,000 ounces in 2018 from 2017. The Company’s forecast consolidated cash operating
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costs are expected to remain low in 2018 and be between $505 and $550 per ounce, and AISC are
expected to decrease by approximately 6% from 2017 and be between $780 and $830 per ounce.
The Fekola Mine is the Company’s largest and lowest-cost producer. The resulting increase in production
levels combined with low costs are projected to dr amatically increase B2Gold’s production, revenues,
cash from operations and cash flow for many years, based on current assumptions (including a gold price
assumption of $1,300 per ounce). On average over the next three years, beginning in 2018, the Company
is projecting per annum gold sales revenues of approxi mately $1.2 billion, cash flow from operations of
approximately $0.5 billion and a significant increase in free cash flow (operating cash flows less investing
cash flows).
Gold Revenue
Consolidated gold revenue in the first quarter of 2018 was a quarterly record of $344.3 million on record
sales of 259,837 ounces at an average price of $1,325 per ounce compared to $146.3 million on sales of
119,937 ounces at an average price of $1,219 per oun ce in the first quarter of 2017. This significant
increase in revenue of 135% (or $198.0 million) was attributable to the new production from the Fekola
Mine, as well as a 9% increase in the average rea lized gold price and the timing of gold shipments
(including 27,450 ounces sold in the quarter which rela ted to Fekola’s December 31, 2017, finished gold
inventory).
Consolidated gold revenue for the first quarter of 2018 included $15 million relating to the delivery of
gold into the Company's Prepaid Sales contracts ( accounted for as deferred revenue). During the quarter,
12,908 ounces of gold were delivered under these contracts.
Operations
Mine-by-mine gold production in the first quarter of 2018 was as follows:
Mine Q1 2018
Gold Production
(ounces) (1)
2018
Annual Production Guidance
(ounces) (1)
Fekola 114,142 400,000 - 410,000
Masbate 53,147 180,000 - 190,000
Otjikoto 39,499 160,000 - 170,000
La Libertad 19,367 115,000 - 120,000
El Limon 13,529 55,000 - 60,000
B2Gold Consolidated 239,684 910,000 - 950,000
(1) B2Gold’s Q1 2018 production results and 2018 annual production guidance are presented on a 100% basis.
Fekola Gold Mine – Mali
In its first full quarter of operations (after achieving commercial production on November 30, 2017,
within only 60 days from start-up), the new Fekola Mine in Mali continued to demonstrate strong,
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sustained operational performance by running above pl an on mill feed grade, throughput and recoveries.
This resulted in the Fekola Mine producing 114,142 ounces of gold in th e first quarter of 2018, 11% (or
11,228 ounces) above budget. Mill feed grade, throughput and recoveri es were 2.84 grams per tonne
(“g/t”) (compared to budget of 2.76 g/t), 1,316,818 tonnes (compared to budget of 1,249,474 tonnes) and
94.8% (compared to budget of 92.7%), respectively. Throughout the quarter, the operation continued to
improve with many construction personnel making the transition to operations, together with training and
skills development in all departments. Currently, th ere are approximately 1,848 employees on site and, of
these, approximately 93% are Malian. The Fekol a Mine also continued its outstanding safety
performance, achieving 694 days without a Lost-Time-Injury by quarter-end.
Fekola’s very rapid and successful ramp-up has surpassed the Company’s expectations. On September 25,
2017, the Company announced that its in-house cons truction team had comple ted construction of the
Fekola mill on budget and commenced ore processing at the Fekola Mine, more than three months ahead
of the original schedule. The first gold pour at th e Fekola Mine was achieved on October 7, 2017. On
November 30, 2017, the Fekola Mine achieved commerc ial production, one month ahead of the revised
schedule and four months ahead of the original sch edule. Gold production from the Fekola Mine in 2017
was 111,450 ounces (including 79,243 ounces of pre- commercial production), more than doubling the
upper end of its original 2017 guidance range (of 55,0 00 ounces) due to its early start-up, high-quality
construction and faster than expected ramp-up.
For full-year 2018, the Fekola Mine is forecast to produce between 400,000 and 410,000 ounces of gold
at cash operating costs of between $345 and $390 per ounce and AISC between $575 and $625 per ounce.
Positive drill results from the Company’s 2017 exploration program at the Fekola area (see news release
dated 11/9/2017) indicated that the main Fekola deposit, with additional dr illing, could extend
significantly to the north. In addition, drilling belo w the extensive saprolite resource at the Anaconda
zones has discovered four, well-mineralized bedrock (s ulphide) zones, indicating the potential for large,
Fekola-style mineralized zones.
The Company’s 2018 exploration budget for Mali is approximately $15.1 million, focusing on the Fekola
North Extension zone and sulphide targets below th e Anaconda saprolite zones. The Company expects to
release the results from a series of additional drill ho les from its Mali exploration program before the end
of April 2018. In addition, the Company anticipat es releasing more drill results for the Fekola North
Extension zone and Anaconda zones around mid-year.
Masbate Gold Mine – Philippines
The Masbate Mine in the Philippines continued its str ong operational performance into the first quarter of
2018, producing 53,147 ounces of gold, 12% (o r 5,854 ounces) above budget and 1% (or 585 ounces)
higher compared to the prior-year quarter. The increa se was mainly due to higher than expected oxide ore
tonnage from Vein 5 of the Colorado Pit which positively impacted processing recoveries and throughput.
Oxide ore represented 78% of the processed tonnage fo r the quarter versus budget of 50%. The Masbate
Mine also continued its outstanding safety performance, achieving almost two and a half years (898 days)
without a Lost-Time-Injury by quarter-end.
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For the quarter, mill throughput was 1,792,579 tonn es (compared to budget of 1,706,064 tonnes and
1,704,001 tonnes in the first quarter of 2017) and go ld recoveries averaged 78.5% (compared to budget of
72.1% and 74.8% in the first quarter of 2017). Th e average grade processed was 1.17 g/t compared to
budget of 1.20 g/t and 1.28 g/t in the first quarter of 2017. As expected, grades were higher in the prior-
year quarter which was attributable to the high-grade ore from the Main Vein Stage 1 Pit which is no
longer in production as scheduled.
For full-year 2018, the Masbate Mine is expected to produce between 180,000 and 190,000 ounces of
gold at cash operating costs of between $675 and $7 20 per ounce and AISC of between $875 and $925
per ounce.
A detailed capital cost estimate of $25.5 million wa s recently completed by Lycopodium Ltd., working
with the Company's engineering team, for the expa nsion of the Masbate processing plant to 8 million
tonnes per year ($23 million in 2018 and $2.5 million in 2019). The expansion, which is being conducted
by B2Gold’s in-house team, primar ily consists of adding a third ball mill and upgrading the existing
crushing circuit. The ball mill is currently on site, with preliminary works pl anned to commence in the
second quarter of 2018. No addition to the mining fleet is required as the additional feed will come from
the lower-grade material that was in the original mine plan but was scheduled to be stockpiled. When the
expansion is online (expected in early 2019), it is projected to keep Masbate's annual gold production near
200,000 ounces per year during the mining phase, and is expected to keep gold production above 100,000
ounces per year when the low-grade stockpiles are processed at the end of the open-pit mine life.
The Company has a successful track record of adding reserves and resources at its operations (and thereby
extending mine life) through exploration. The Masbat e exploration budget for 2018 is approximately $5.1
million, including 12,000 metres of diamond drilling. Th e drilling is divided into brownfields drilling to
upgrade resources within the mine licence and on regional targets.
Otjikoto Gold Mine – Namibia
The Otjikoto Mine in Namibia also had a strong star t to the year (following a record year of gold
production in 2017) with fi rst quarter gold production of 39,499 ounces which was above budget by 6%
(or 2,174 ounces). Mill throughput, recoveries and pro cessed grade were all slightly above budget, as the
mine continues to incrementally optimize its opera tions. Compared to the prior-year quarter, gold
production was lower by 8% (or 3,275 ounces), as planne d, due to a negligible amount of Wolfshag ore
being mined in 2018 while Phase 2 of the Wolfshag P it is being developed. Or e production is planned to
resume again from the Wolfshag Pit in 2019 which is projected to provide higher grade open-pit mill
feed. The Otjikoto mill continued to operate well, processing 827,227 tonnes (Q1 2017 – 832,805 tonnes)
in the quarter at an average grade of 1.51 g/t (Q1 2017 – 1.62 g/t) with gold recoveries averaging 98.7%
(Q1 2017 – 98.6%).
For full-year 2018, the Otjikoto Mine is expected to produce between 160,000 and 170,000 ounces of
gold, primarily from the Otjikoto Pit, at cash operating costs of between $480 and $525 per ounce and
AISC of between $700 and $750 per ounce.
Geotechnical, hydrogeological and design studies for Wolfshag have been completed, based on an
updated resource model, resulting in a larger open pit than previously reported. Mining at Wolfshag
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commenced in late 2016 and Wolfshag ore provided a significant component of the Otjikoto mill feed in
2017. Updated Wolfshag mineral reserves and resour ces were reported in the Company's recent Annual
Information Form, dated March 23, 2018, with 37 2,000 ounces of Probable Mineral Reserves (4.29
million tonnes at an average grade of 2.70 g/t, on a 90% attributable basis) remaining in the Wolfshag
open pit, as at December 31, 2017. This updated reser ve, based on the larger Wolfshag open-pit design,
includes an additional 132,000 ounces of Probable Mine ral Reserves (1.42 million tonnes at an average
grade of 2.88 g/t, on a 90% attributable basis) wi thin Wolfshag Phase 4. In addition, the Wolfshag
mineral resource remains open down-plunge and may be exploitable in the future by underground mining.
The Company’s total exploration budget for Namibi a in 2018 is $5.1 million. Exploration in 2018 will
include 17,000 metres of diamond drilling and 4,000 metres of RAB drilling, split between the Otjikoto
Project and the Ondundu joint venture.
La Libertad Gold Mine – Nicaragua
La Libertad Mine in Nicaragua pr oduced 19,367 ounces of gold in the first quar ter of 2018, 10% (or
2,128 ounces) below budget and 32% (or 9,172 oun ces) lower than the first quarter of 2017. Gold
production at La Libertad has been affected by pe rmitting delays for new mining areas. However, mine
permits are now in place for all open pit and undergr ound operations with the exception of the Jabali
Antenna Pit. The San Diego mining permit was receive d in February 2018 a nd the pit is now fully
operational. Gold production at La Libertad was slightly above budget for the month of March, as the mill
benefitted from increased sources and volume of ope n-pit ore. Jabali Antenna Underground remains
under development with the planne d ventilation raise now complete. Access ramp development has
advanced approximately two months ahead of original schedule for 2018, as a result of an early start by
the underground mining contractor. The Company exp ects to begin processing ore from Jabali Antenna
Underground in July.
For full-year 2018, La Libertad Mine is expected to produce between 115,000 and 120,000 ounces of gold
at cash operating costs of between $745 and $790 per ounce and AISC of between $1,050 and $1,100 per
ounce. La Libertad’s production forecast assumes that production will start from the Jabali Antenna Pit in
the third quarter of 2018 (dependent upon the success ful completion of resettlement activities and receipt
of the remaining mining permits). Current plans at La Libertad include mini ng and processing into 2020,
with a combination of mineral reserves and mineral resources. The Company has a successful track record
of converting its mineral resources to reserves, and e xploration of additional mineral targets continues.
Mineral resources that are not mineral reserves do not yet have demonstrated economic viability.
La Libertad’s exploration budget fo r 2018 is approximately $4.8 million for a total of 9,000 metres of
planned diamond drilling. The program is split betwee n infill (near-mine) drilling and drilling on several
regional targets.
El Limon Gold Mine – Nicaragua
El Limon Mine in Nicaragua produced 13,529 ounces of gold in the first quarter of 2018, slightly below
budget (of 14,405 ounces) and 53% (or 4,668 ounces) highe r than the first quarter of 2017. During 2017,
El Limon’s production was affected by opera tional issues, including underground water pumping
breakdowns, which had delayed high -grade ore flow from Santa Panc ha Underground. Management
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changes were made at El Limon and mining operations returned to budgeted (normal) production rates in
the fourth quarter of 2017, with operational improve ments including the successful rehabilitation of the
Santa Pancha 1 dewatering well. The mining permit for the new Mercedes Pit was recently received in
December 2017, and the pit is now fully operational, accounting for over 30% of the mined ounces for the
quarter.
For full-year 2018, El Limon is expected to produ ce between 55,000 and 60,000 ounces of gold at cash
operating costs of between $700 and $750 per ounce and AISC of between $1,135 and $1,185 per ounce.
On February 23, 2018, the Company announced the ne wly-discovered El Limon Central zone. Historical
records had indicated that parts of the Central zone had been mined underg round in past decades.
However, the Company's recent exploration success at the Central zone demonstrated that underground
mining was much more limited than previously thou ght. As a result, on February 23, 2018, the Company
announced a positive initial open-pit Inferred Mineral R esource at El Limon Central zone of 5,130,000
tonnes at a grade of 4.92 g/t of gold containing 812,000 ounces of gold (100% basis) (see news release
dated 2/23/18). The Central zone, at its closest point, is approximately 150 metres from El Limon mill
facility, extending southeast and northwest, adjacent to existing plant and administrative infrastructure.
This large, good grade, resource has the potential to decrease El Limon's cash operating costs per ounce
and AISC per ounce, and significantly increase its mine life and potentially lead to mill expansion. The
Company is currently conducting additional metallurgi cal testing on El Limon Central ore samples and a
study to evaluate the potential to expand El Li mon throughput to significantly increase annual gold
production. The study results are expected by mid-2018.
El Limon central vein structure has been drill test ed along a 2.2-kilometre strike length so far, and
remains open to depth and along strike, and will be further drill tested during 2018. El Limon’s
exploration budget for 2018 is a pproximately $7.0 million for a total of 25,000 metres of planned
diamond drilling to further infill at the Central zone and to further explore the structure along strike where
it remains open.
Outlook
Looking forward, the Company will remain focu sed on continuing its impressive operational and
financial performance from existing mines, pursuin g expansion opportunities at existing operations and
continuing with aggressive explora tion and development programs to unlock the potential of its existing
portfolio of properties.
About B2Gold
Headquartered in Vancouver, Canada, B2Gold Corp. is the world’s new senior gold producer. Founded in
2007, today, B2Gold has five operating gold mines and numerous exploration and development projects
in various countries including Nicaragua, the Philippin es, Namibia, Mali, Burkina Faso, Colombia and
Finland.
Qualified Person
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Peter D. Montano, P.E., the Project Director of B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information rela ted to operations matters contained in this news
release.
Tom Garagan, Senior Vice President of Explorati on of B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information rega rding exploration matters contained in this news
release.
John Rajala, Vice President of Metallurgy of B2Go ld, a qualified person under NI 43-101, has approved
the scientific and technical information to El Limon development contained in this news release.
First Quarter 2018 Financial Results – Conference Call Details
B2Gold will release its first quarter 2018 results be fore the North American markets open on Thursday,
May 10, 2018.
B2Gold executives will host a confer ence call to discuss the results on Thursday, May 10, 2018,
at 10:00 am PDT / 1:00 pm EDT . You may access the call by dialing the operator at +1 647-788-4919
(local or international) or toll free at +1 877-291-4570 prior to the scheduled start time, or you may listen
to the call via webcast by clicking http://www.investorcalendar.com/event/27596. A playback version of
the call will be available for two weeks after the call at +1 416-621-4642 (local or international) or toll
free at +1 800-585-8367 (passcode 7166938).
ON BEHALF OF B2GOLD CORP.
“Clive T. Johnson”
President and Chief Executive Officer
For more information on B2Gold, please visit the Company website at www.b2gold.com or contact:
Ian MacLean Katie Bromley
Vice President, Investor Relations Manager, Investor Relations & Public Relations
604-681-8371 604-681-8371
[email protected] [email protected]
The Toronto Stock Exchange and the NYSE American LLC neither approve nor disapprove the info rmation contained in this
news release.
Production results and the Company’s guidance pr esented in this news re lease reflect the total production at the mines the
Company operates on a 100% basis.
This news release includes ce rtain “forward-looking information” and “forward -looking statements” (c ollectively “forward-
looking statements”) within the meaning of applicable Canadian and United States securities legisl ation, including projections,
guidance, forecasts, estimates and other statements regarding future financial and ope rational performance, events, production,
mine life, revenue, cash flows, costs, including projected cash operating costs and AISC and expected decrease of forecast
consolidated cash operating costs and AISC in 2018, capital exp enditures, budgets, ore grades, sources and types of ore,
stripping ratios, throughput, ore processing, cash flows and growth; production estimates and guidance, including the
Company’s projected increase of gold production to between 910,000 and 950,000 ounces in 2018, reflecting production growth
of approximately 300,000 ounces from 2017; pr oject-specific projections of gold production and costs; the increased production
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and low costs increasing the Company’s production revenues, cash from operations and cash flow for many years; and
statements regarding anticipated exploration, drilling, development, construction, production, permitting and other activities and
achievements of the Company, including but not limited to: expected gr ades and sources of ore to be processed in 2018; the
Fekola Mine being a low-cost producer and its anticipated re duction on the Company’s per ounce costs; further exploration
drilling at the Fekola Mine, sulphide targets below the Anacon da saprolite and the potential for extension of the main Fekola
deposit to the north and for large, Fekola-style mineralized zone s; the ratification by the Mali National Assembly of the Fekol a
Shareholders’ Agreement and the Share Purchase Agreement; th e resumption of ore production from the Wolfshag Pit at the
Otjikoto Mine in 2019 and the effects thereof; the potential explo itation of Wolfshag resources in the future by underground
mining; the expected start of gold production from the Jabali Antenna Pit in the third quarter of 2018, which is subject to, among
other things, the completion of resettlemen t activities and receipt of remaining mining permits in a timely fashion; current pl ans
at the La Libertad Mine including anticipated mining and proce ssing thereat; exploration and testing at El Limon Mine, the
potential to expand El Limon Mine’s throughput to significan tly increase annual gold production and reduce cash operating
costs and the results and timing of the Company’s study thereof; the potential of the newly discovered El Limon Central zone and
its effect on mining costs and mine life; the expansion of the Ma sbate Mine’s processing plant to 8 million tonnes per year, th e
timing thereof, and the resulting expected annual gold production at Masbate Mine of near 200,000 ounces per year during the
mining phase and above 100,000 ounces per year when low-grade sto ckpiles are processed; the Company remaining focused on
continuing its impressive operational and financial performance; and the Com pany continuing aggressive exploration and
development programs. Estimates of mineral resources and reserves are also fo rward-looking statements because they constitute
projections regarding the amount of minerals that may be encountered in the future and/or the anticipated economics of
production, should a production decision be made. All statements in this news release that addre ss events or developments that
we expect to occur in the future are forward-looking statemen ts. Forward-looking statements are statements that are not
historical facts and are generally, although not always, identified by words such as “expect”, “p lan”, “anticipate”, “project”,
“target”, “potential”, “schedul e”, “forecast”, “budget”, “estim ate”, “intend” or “believe” and similar expressions or their
negative connotations, or that events or conditions “will”, “would”, “may”, “could” , “should” or “might” occur. All such
forward-looking statements are based on the opinions and estimates of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond B2Gold’s
control, including risks associated with the volatility of metal prices and the Company’s common shares; risks and dangers
inherent in exploration, development and mi ning activities; uncertainty of reserve and resource estim ates; risk of not achievin g
production, cost or other estimates; risk that actual production, development plans and costs differ materially from the estima tes
in the Company’s feasibility studies; the ability to obtain and maintain any necessary permits, consents or authorizations
required for mining activities; uncertainty about the outcome of negotiations with the Government of Mali; risks related to
environmental regulations or hazards and compliance with complex regulations associated with mi ning activities; the ability to
replace mineral reserves and identify acqui sition opportunities; unknown liabilities of companies acquired by B2Gold; ability t o
successfully integrate new acquisitions; fluct uations in exchange rates; availability of financing; risks related to financing and
debt, including potential restrictions im posed on the Company’s operations as a re sult thereof and the ability to generate
sufficient cash flows; risks related to operations in foreign and developing countries and compliance with foreign laws, including
those associated with operations Mali, Namibia, the Phili ppine, Nicaragua and Burkina Faso and including risks related to
changes in foreign laws and changing policies related to mining and local ownership re quirements; risks re lated to remote
operations and the availability of adequate infrastructure, fluctua tions in price and availability of energy and other inputs
necessary for mining operations; shortages or cost increases in necessary equipmen t, supplies and labour; regulatory, political
and country risks including local instability or acts of terrorism and the eff ects thereof; risks related to reliance upon
contractors, third parties and joint venture partners; risks relate d to lack of sole decision-making authority related to Filmi nera
Resources Corporation, which owns the Masbate Project; challenges to title or surface rights; dependence on key personnel and
ability to attract and retain skilled personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather
conditions; litigation risk; competition with other mining companies; changes in tax laws; community support for the Company’s
operations including risks related to stri kes and the halting of such operations from time to time; risks related to conflict w ith
small scale miners; risks related to failures of information syst ems or information security threats; the final outcome of the audit
by the DENR in relation to the Masbate Project; ability to maintain adequate inte rnal control over financial reporting as
required by law, including Section 404 of th e Sarbanes-Oxley Act; risks related to comp liance with anti-corruption laws; as well
as other factors identified and as describe d in more detail under the heading “Risk Factors” in B2Gold’s most recent Annual
Information Form, the Company’s current Form 40-F Annual Report and B2Gold’s other fili ngs with Canadian securities
regulators and the U.S. Securities and Exchange Commission (the “SEC”), whic h may be viewed at www.sedar.com and
www.sec.gov, respectively (the “W ebsites”). The list is not exhaus tive of the factors that may affect the Company’s forward-
looking statements. There can be no assurance that such statements will prove to be accurate, and actual results, performance or
achievements could differ materially from those expressed in, or implied by, these forward-look ing statements. Accordingly, no