B2Gold Reports Record Fourth Quarter and Full-Year Gold Production in 2017; New Fekola Mine Produces 111,450 Ounces in 2017 During Ramp-up, 123% Above Budget; 2018 Outlook Provides for Very Strong Production Growth with Forecast Gold Production of Between
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News Release
B2Gold Reports Record Fourth Quarter and Full-Year Gold Production in 2017;
New Fekola Mine Produces 111,450 Ounces in 2017 During Ramp-up, 123% Above Budget;
2018 Outlook Provides for Very Strong Production Growth with Forecast Gold Production of Between
910,000 and 950,000 Ounces
Vancouver, January 11, 2018 – 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 fourth
quarter and full-year 2017 in addition to its producti on and cash cost guidance for 2018. All dollar figures
are in United States dollars unless otherwise indicated.
2017 Full-Year Highlights
Record annual consolidated gold production, fo r the ninth consecutive year, of 630,565 ounces of
gold, (including 79,243 ounces of pre-commercia l production from Fekola), exceeding the upper end
of the revised guidance range (of 580,000 to 6 25,000 ounces) and surpassing the top end of the
original guidance range (of 545,000 to 595,000 ounces)
Annual consolidated gold revenue of $638.7 million (or an annual record of $739.5 million, including
$100.9 million of pre-commercial sales from Fekola)
Full-year consolidated cash operating costs per ounce ( see “Non-IFRS Measures” ) and all-in
sustaining costs (“AISC”) per ounce (see “Non-IFRS Measures” ) are expected to be at, or below, the
low end of their cost guidance ranges of be tween $610 and $650 per oun ce and between $940 and
$970 per ounce, respectively
Fekola Mine construction successfully completed in late September 2017, more than three months
ahead of the original schedule
Fekola Mine achieved commercial production on N ovember 30, 2017, one month ahead of the
revised schedule and four months ahead of the original schedule
Fekola Mine gold production was 111,450 oun ces in 2017 (including 79,243 ounces of pre-
commercial production), far surpassing the upper end of its original guidance range (of 45,000 to
55,000 ounces) due to its early start-up and strong ramp-up performance
With the planned first full year of production from the Fekola Mine, the outlook for 2018 provides for
dramatic production growth of approximately 300,000 ou nces versus 2017, as consolidated annual
gold production is expected to increase signi ficantly to between 910, 000 and 950,000 ounces with
cash operating costs and AISC of between $505 and $550 per ounce and between $780 and $830 per
ounce, respectively
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2017 Operating Results
For B2Gold, 2017 was an outstanding year of performan ce, with the achievement of another record year
of consolidated gold pro duction (for the ninth straight year), and the successful construction and
commissioning of its flagship Fekola Mine in s outhwest Mali which achieve d commercial production on
November 30, 2017, one month ahead of the revised schedule and four months ahead of the original
schedule. With the large, low-cost Fekola Mine now in production, B2Gold is well positioned in
achieving transformational growth in 2018. In 2018, with the planned first full year of production from
the Fekola Mine, consolidated gold production is forecast to be between 910,000 and 950,000 ounces (see
“2018 Production Outlook and Cost Guidance” sec tion). This represents an increase in annual
consolidated gold production of approximately 300,000 ounces for B2Gold in 2018 versus 2017.
For full-year 2017, B2Gold’s consolidated gold pr oduction was an annual record of 630,565 ounces
(including 79,243 ounces of pre-commercial produc tion from Fekola), exceeding the upper end of its
revised guidance range (of 580,000 to 625,000 ounces) and surpassing the top end of its original guidance
range (of 545,000 to 595,000 ounces) . Consolidated gold production for the year also increased by 15%
(or 80,142 ounces) over 2016. B2Gold ’s record performance in 2017 reflected the early start-up and
strong ramp-up performance of the new Fekola Mine and the continued, very strong operational
performances of both the Masbate Mine in the Philippines and Otjikoto Mine in Namibia. The Company
expects its full-year 2017 consolidated cash operatin g costs per ounce and AISC per ounce to be at, or
below, the low end of their cost guidance ra nges of between $610 and $650 per ounce and between $940
and $970 per ounce, respectively. B2Gold will release its 2017 year-end consolidated financial statements
before the North American markets open on March 15, 2018. Details of the consolidated cash operating
costs per ounce and AISC per ounce will also be released at that time.
In the fourth quarter of 2017, B2Gold’s consolid ated gold production was a quarterly record of 240,753
ounces (including 72,903 ounces of pre-commercia l production from Fekola), exceeding reforecast
production by 5% (or 10,473 oun ces) and significantly exceeding budget by 28% (or 52,141 ounces).
Consolidated gold production for the quarter also increased by 71% (or 100,1 02 ounces) over the same
quarter in 2016.
Mine-by-mine gold production in the fourth quarter and full-year 2017 was as follows:
Mine
Q4 2017
Gold
Production
(ounces)
Full-year 2017
Gold
Production
(ounces)
2017
Revised
Annual Production
Guidance
(ounces) (2)
2017
Original
Annual Production
Guidance
(ounces) (2)
Fekola 105,110 (1) 111,450 (1) 100,000 - 110,000 45,000 - 55,000
Masbate 53,419 202,468 180,000 - 185,000 175,000 - 185,000
Otjikoto 52,446 191,534 170,000 - 180,000 165,000 - 175,000
La Libertad 14,696 82,337 90,000 - 100,000 110,000 - 120,000
El Limon 15,082 42,776 40,000 - 50,000 50,000 - 60,000
B2Gold 240,753 (1) 630,565 (1) 580,000 - 625,000 545,000 - 595,000
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Consolidated
(1) Fekola’s fourth quarter and full-year 2017 gold production includes 72,903 ounces and 79,243 ounces, respectively, of
gold produced during its pre-commercial production period.
(2) All production results and guidance are presented on a 100% attributed basis.
On September 25, 2017, the Company announced that it had completed 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 the Fekola Mine w as achieved on October 7, 2017. On November 30,
2017, the Fekola Mine achieved commercial production, one month ahead of the revised schedule and
four months ahead of the original schedule. Throughput ran above nameplate capacity during the 30-day
test period (on average) with significantly better than expected plant availability, mill feed grades, and
recoveries. Gold production from the Fekola Mine in 2017 was 111,450 ounces (i ncluding 79,243 ounces
of pre-commercial production), far surpassing the upper end of its original guidance range (of 45,000 to
55,000 ounces) due to its early start-up and strong ramp-up performance. In the fourth quarter of 2017,
the Fekola Mine produced 105,110 ounces of gold (including 72,903 ounces of pre-commercial
production).
The Masbate Mine in the Philippines achieved anot her very strong year in 2017, producing 202,468
ounces of gold, the second-highest annual production ever for the mine (only slightly below its annual
production record of 206,224 ounces of gold, achieved in the prior year). Masbate’s 2017 gold production
exceeded the upper end of both its revised and orig inal production guidance ranges by 9% (or 17,468
ounces). The higher production was due to better than e xpected recoveries and grades, mainly driven by
significantly higher than budgeted oxide ore tonnage from the Colorado Pit. The Masbate Mine also
continued its outstanding safety performance, achie ving over two years (810 days) without a Lost-Time-
Injury at year-end. In the fourth quarter of 2017, the Masbate Mine produced 53,419 ounces of gold,
significantly above both budgeted and reforecast production by 24% (or 10,498 ounces).
In July 2017, the Masbate operations were presented with the Philippine Department of Environment and
Natural Resources’ prestigious Saringaya Award fo r its contribution to environmental protection,
conservation, and management in the regions surrounding the Masbate Mine
The Otjikoto Mine in Namibia had a record year in 2017, producing an annual record of 191,534 ounces
of gold which exceeded the upper end of its revised production guidance range by 6% (or 11,534 ounces)
and the top end of its original production guidance range by 9% (or 16,534 ounces). Gold production was
also 15% (or 25,249 ounces) higher versus 2016. Otjikoto’s outperformance in 2017 was mainly the result
of better than expected high-grade ore tonnage from the Wolfshag Phase 1 Pit and higher than expected
mill throughput. In the fourth quarter of 2017, the Otjikoto Mine produced 52,446 ounces of gold,
exceeding both budgeted and reforecast production by 10% (or 4,655 ounces).
In Nicaragua, for full-year 2017, gold production from La Libertad Mine and El Limon Mine was 82,337
ounces and 42,776 ounces, respectively, for a combined total of 125,113 ounces. This was slightly below
the low end of their combined revi sed guidance ranges. During 2017, gold production at La Libertad was
negatively impacted by permitting delays for new mining areas while El Limon’s production was affected
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by water pumping issues which had reduced high-grade ore flow from Santa Pancha Underground. In the
fourth quarter of 2017, mining operations at El Li mon returned to budgeted (normal) production rates
with the successful rehabilitation of the Santa Panc ha 1 dewatering well. At La Libertad Mine, the
Company has made significant progress in advancing its mine permits. In Sept ember 2017, La Libertad
Mine received the San Juan mining permit, and it is anticipated that the San Diego mining permit will
also be received shortly. Mining has already commenced in the San Juan Pit and is expected to commence
in the San Diego Pit upon receipt of its permit. For the Jabali Antenna Pit, the Company is expecting to
receive its permit in time to start production from the p it in the third quarter of 2018. In the fourth quarter
of 2017, gold production from La Libertad Mine and El Limon Mi ne was 14,696 ounces and 15,082
ounces, respectively.
Gold Revenue
For the full-year 2017, consolidated gold revenue was $638.7 million (or an annual record of $739.5
million, including $100.9 million of pre-commercial sales from Fekola) on sales of 510,966 ounces (or an
annual record of 590,209 ounces including 79,243 oun ces of pre-commercial sales from Fekola) at an
average price of $1,250 per ounce compared to $683.3 million on sales of 548,281 ounces at an average
price of $1,246 per ounce in 2016. The decrease in annual gold revenue (excl uding pre-commercial sales
from Fekola) was attributable to a 7% decrease in gold sales volume due to the timing of gold shipments.
Consolidated gold revenue in the fourth quarter of 2017 was $174.0 million (or a quarterly record of
$274.9 million including $100.9 million of pre-commercial sales from Fekola) on sales of 137,695 ounces
(or a quarterly record of 216,938 ounces including 79,243 ounces of pre-commercial sales from Fekola) at
an average price of $1,264 per ounce compared to $181.2 million on sales of 151,524 ounces at an
average price of $1,196 per ounce in the fourth quarter of 2016.
Consolidated gold revenue for the fourth quarter and year ended December 31, 2017, included $15
million and $60 million, respectively, relating to the delivery of gold into the Company's Prepaid Sales
contracts (deferred revenue) associated with the Co mpany's Prepaid Sales transactions entered into in
March 2016. Proceeds from the Prepaid Sales transacti ons, used to fund the Fekola Mine construction,
were originally received in March 2016 and are be ing recognized in revenue as the underlying Prepaid
Sales ounces are delivered into. During the fourth quarter and year ended December 31, 2017, 12,909
ounces and 51,633 ounces, respectively, were delivered under these contracts.
2018 Production Outlook and Cost Guidance
In 2018, with the planned first full year of production from the Fekola Mine, consolidated gold
production is forecast to be betw een 910,000 and 950,000 ounces. This represents an increase in annual
consolidated gold production of approximately 300,000 ounces for B2Gold in 2018 versus 2017. The
Fekola Mine is projected to be a large, low-cost produ cer that will also result in a significant reduction in
the Company’s forecast cash operating costs per ounce and AISC per ounce. The Company’s forecast
consolidated cash operating costs per ounce and AISC per ounce are both expected to decrease in 2018 by
approximately 15% compared to 2017 and be be tween $505 and $550 per oun ce and between $780 and
$830 per ounce, respectively.
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These increased production levels and low costs ar e expected to dramatically increase B2Gold’s
production, revenues, cash from operations and cash fl ow 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 approximately $1.2 billion, cash
flow from operations of approximately $0.5 billion and a significant increase in free cash flow (operating
cash flows less investing cash flows) (see “Non-IFRS Measures” ).
Mine-by-mine 2018 ranges for forecast gold production, cash operating costs per ounce and AISC per
ounce are as follows:
Mine 2018 Forecast
Gold Production
(ounces) (1)
2018 Forecast
Cash Operating
Costs
($ per ounce)
2018 Forecast
AISC
($ per ounce)
Fekola 400,000 - 410,000 $345 - $390 $575 - $625
Masbate 180,000 - 190,000 $675 - $720 $875 - $925
Otjikoto 160,000 - 170,000 $480 - $525 $700 - $750
La Libertad 115,000 - 120,000 $745 - $790 $1,050 - $1,100
El Limon 55,000 - 60,000 $700 - $750 $1,135 - $1,185
B2Gold Consolidated 910,000 - 950,000 $505 - $550 $780 - $830
(1) B2Gold’s production guidance is presented on a 100% attributed basis.
Fekola Mine, Mali
The Fekola Mine is expected to produce between 4 00,000 and 410,000 ounces of gold in 2018, the first
full year of production. Cash operating costs are expected to be between $345 and $390 per ounce and
AISC between $575 and $625 per ounce.
In 2018, the Fekola Mine is budgeted to process a total of 5.0 million tonnes of ore at an average grade of
2.69 grams per tonne (“g/t”) and process recovery of 92.7%.
Sustaining capital costs in 2018 at the Fekola Mine are budgeted to total $33.8 million, including $26.3
million for pre-stripping. Non-sustaining capital costs are budgeted to total $33.3 million, including $15
million for relocating the village of Fadougou.
Based on the new life of mine (“LoM”) plan ( see news release dated 9/25/2017 ), the Fekola Mine is
projected to produce approximately 400,000 ounces of gold annually for the first three years at cash
operating costs of $357 per ounce and AISC of $604 per ounce. For the first seven years, the Fekola Mine
is projected to produce approximately 374,000 ounces of gold annually with cash operating costs of $391
per ounce and AISC of $643 per ounce. Over the initial ten-year LoM, Fekola is projected to produce an
average of 345,000 ounces per annum at cash operati ng costs of $428 per ounce and AISC of $664 per
ounce.
Masbate Mine, the Philippines
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The Masbate Mine is expected to produce betw een 180,000 and 190,000 ounces of gold in 2018,
primarily from the higher grade Main Vein pit, at cash operating costs of between $675 and $720 per
ounce and AISC of between $875 and $925 per ounce.
In 2018, Masbate is budgeted to process a total of 6.8 million tonnes of ore at an average grade of 1.26 g/t
and process recovery of 65.9%. The increase in grade and decrease in recovery versus 2017 is due to the
change in ore source from the Colorado oxide ore (lower grade and higher recovery) to the Main Vein ore
(higher grade and lower recovery).
Sustaining capital costs in 2018 at the Masbate Mine are budgeted to total $16.6 million. Non-sustaining
capital costs are budgeted to total $32.5 million, incl uding $23 million for the expansion of the Masbate
processing plant.
A detailed capital cost estimate of $25.5 milli on was recently completed by Lycopodium for the
expansion of the Masbate processing plant to 8 milli on tonnes per year ($23 million in 2018 and $2.5
million in 2019). The expansion prim arily consists of adding a third ball mill and upgrading the existing
crushing circuit. No addition to the mining fleet is required as the additional feed will come from the
lower grade material that is currently in the mine plan and scheduled to be stockpiled. When the
expansion is on line (expected in early 2019), it is expected 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 project life.
Otjikoto Mine, Namibia
The Otjikoto Mine is expected to produce be tween 160,000 and 170,000 ounces of gold in 2018,
primarily from the Otjikoto Pit, at cash operating co sts of between $480 and $525 per ounce and AISC of
between $700 and $750 per ounce.
In 2018, Otjikoto is budgeted to process a total of 3.3 million tonnes of ore at an average grade of 1.59 g/t
and process recovery of 98%. The slight drop in gr ade versus 2017 is due to a negligible amount of
Wolfshag ore being mined in 2018 as phase 2 of the Wolfshag Pit is being developed. Ore production is
planned to resume from the Wolfshag Pit in 2019 whic h is expected to provide higher grade open-pit mill
feed in the future.
Sustaining capital costs in 2018 at the Otjikoto Mine are budgeted to total $16.6 million. Non-sustaining
capital costs are budgeted to total $28.5 million, incl uding $26.6 million for Wolfshag pre-stripping and
$1.7 million to complete phase one of the solar power project which is expected to decrease fuel oil
consumption and power costs starting in the second quarter of 2018.
La Libertad Mine, Nicaragua
La Libertad Mine is expected to produce betw een 115,000 and 120, 000 ounces of gold in 2018 at cash
operating costs of between $745 and $790 per ounce a nd AISC of between $1,050 and $1,100 per ounce.
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La Libertad’s production forecast assumes that pr oduction will start from the Jabali Antenna Pit in the
third quarter of 2018 (dependent upon the successful completion of resettlement activities and receipt of
the remaining mining permits).
In 2018, La Libertad is budgeted to process a total of 2.3 million tonnes of ore at an average grade of 1.76
g/t and process recovery of 94%. The significant incr ease in grade versus 2017 is due to mining the high-
grade Jabali Antenna, San Diego and San Juan pits , augmented by production from the Mojon and Jabali
West underground mines.
Sustaining capital costs for La Libertad are planned to total $28.5 million, mainly for pre-stripping and
underground development/infrastructure. Non-sustaining capital costs are budgeted to total $2 million.
El Limon Mine, Nicaragua
In 2018, El Limon is expected to produce betwee n 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.
El Limon Mine is budgeted to process 0.5 million tonnes of ore at an average grade of 3.96 g/t gold with
gold recoveries averaging 94%. Approximately 28% of the process ore is expected to be sourced from the
Mercedes Pit, with the remainder from underground operations at Santa Pancha. The mining permit for
the Mercedes Pit was recently received, and development of the pit has commenced.
The Company plans to undertake sustaining capital e xpenditures at El Limon totaling $15.3 million in
2018, of which $6.1 million relates to underground development at Sant a Pancha. Non-sustaining capital
costs are budgeted to total $2.8 million.
Historically and looking forward, El Limon operate s best when it combines both underground and open-
pit ore sources. With the Mercedes Pit mining pe rmit in place and development underway, Mercedes is
expected to supply good grade, open-pit ore for th e mill in 2018, combined with underground ore. The
result is expected to maximize mill throughput, increase gold production, and reduce operating costs.
The recent discovery of the El Limon Central Zone, with its potential to host a large, good-grade, open-
pittable deposit, could have a very significant l ong-term, positive impact on El Limon’s gold production,
operating costs and mine life and may support an expansion of El Limon’s milling and production
capacity. An initial El Limon Central Resource estimate is scheduled to be released in February 2018.
In addition, an initial study was completed in 2017 regarding the potential re-processing of the old tailings
at El Limon. Based on historic mill and drilling records, the tailings contain an estimated 9 million to 11
million tonnes with a potential gold grade of 0.80 g/t to 1.0 g/t. An ongoing drilling program is underway
as part of a feasibility study which will confirm re sources and grades, the optimum grind size, capital
costs and final project economics. Based on the initi al study completed in 2017, the Company believes
that the project has the potential to produce an aver age of approximately 20,000 to 25,000 ounces of gold
and 70,000 to 80,000 ounces of silver per year for appr oximately 9 to 11 years. The concept is to regrind
the old tailings to a much finer grind size, process them through a new CIP plant and place the tailings in
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a new lined tailings storage facility. The potential qua ntity and grade included in the initial study is
conceptual in nature and there has been insufficient exploration to date to define a mineral resource and it
is uncertain if further exploration will result in the target being delineated as a mineral resource.
2018 Exploration Guidance
B2Gold has a 2018 exploration budget of approximately $52.4 million. West Africa and Nicaragua will
be the primary areas of focus in 2018.
West African Exploration
2018 will see approximately $25.0 million being spent on exploration in Mali, Burkina Faso and Ghana.
Exploration on the licenses in Mali will see expend itures of $15.1 million, focusing on the Fekola North
Extension zone and sulphide targets below the Anaconda saprolite. The 2018 budget for Mali envisions
completing 20,000 metres of diamond drilling, 48, 000 metres of reverse circulation (“RC”) drilling,
22,000 metres of aircore drilling a nd 8,500 metres of auger drilling. 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 drilling, could extend significantly to the north. In addition,
drilling below the extensive saprolite resource at the Anaconda, Adder and Mamba zones has discovered
three, well mineralized bedrock (sulphide) zones, indicating the potential for large, Fekola-style
mineralized zones.
In Burkina Faso, the 2018 exploration budget is $9 .1 million for the Toega prospect and the Kiaka
Regional district that saw exploration success in 2017. Burkina Faso will see 14,500 metres of planned
diamond drilling, 29,000 metres of planned RC drilli ng and 28,000 metres of combined planned aircore
and auger drilling. An initial Resource estimate fo r Toega, based on the positive 2017 exploration results,
is scheduled to be released before the end of January 2018.
Nicaragua Exploration
El Limon’s exploration budget for 2018 is approxi mately $7.0 million for a total of 25,000 metres of
planned diamond drilling. The program largely consis ts of infill drilling of the recently-discovered
Central Zone.
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 between brownfields (near mine) drilling and drilling on
several regional targets.
Masbate Mine, the Philippines
The Masbate exploration budget for 2018 is approx imately $5.1 million including 12,000 metres of
diamond drilling. The drilling is divided into brownfields drilling to upgrade resources within the mine
licence and on regional targets.