B2Gold Reports Record Third Quarter 2018 Gold Production; Quarterly Gold Production Increase of 78% to 242,000 oz as Gold Revenues Increase by 110% ($170 M) to $324 M Over the Same Period in 2017
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News Release
B2Gold Reports Record Third Quarter 2018 Gold Production;
Quarterly Gold Production Increase of 78% to 242,000 oz as
Gold Revenues Increase by 110% ($170 M) to $324 M Over the Same Period in 2017
Vancouver, October 11, 2018 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announc e its gold production and gold revenue for the third
quarter and first nine months of 2018. All dollar figures are in United States dollars unless otherwise
indicated.
2018 Third Quarter Highlights
• Record quarterly consolidated gold production of 242,040 ounces, a significant increase of 78%
(106,412 ounces) over the same period last year and in-line with budget, due to the continued strong
performances of the Fekola Mine in Mali, Masbate Mine in the Philippines and the Otjikoto Mine in
Namibia
• Consolidated gold revenue of $324 million, a signi ficant increase of 110% ($170 million) over the
same period last year
• Fekola Mine continued to operate above plan, producing 107,002 ounces of gold in the quarter
• Masbate Mine gold production of 57,542 ounces, the second highest quarterly production ever for the
mine
• Based on Masbate’s strong year-to-date performance, Masbate’s annual production guidance has been
revised higher to be between 200,000 to 210,000 ounces of gold (original guidance was between
180,000 to 190,000 ounces)
• Masbate Mine continued its remarkable safety performance, extending the number of days without a
Lost-Time-Injury to almost three years (1,083 days) by quarter-end
• Subsequent to the third quarter, the Company repaid in full its $259 million aggregate principal
amount of convertible senior subordinated notes which matured on October 1, 2018
• On October 5, 2018, subsequent to the third qua rter, the Company was granted the mine permit for
the Limon Central Pit in Nicaragua and is current ly finalizing a positive El Limon Mine expansion
study, expected to be released in the second-half of October 2018
• Based on extensive exploration drilling, the Compa ny is completing a new mineral resource for the
Fekola deposit, including a portion of the Fekola Nort h Extension, expected to be released in the
second-half of October 2018; and is also conduc ting engineering and other technical studies to
ascertain the potential for expanding the current Fe kola Mine, with initial results expected to be
released in the first quarter of 2019
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2018 First Nine Months Highlights
• Record consolidated year-to-date gold producti on of 721,817 ounces, 5% (31,888 ounces) above
original budget and 85% (332,005 ounces) higher than the first nine months of 2017
• Record consolidated year-to-date gold revenue of $953 million on record year-to-date sales of
749,102 ounces at an average price of $1,272 per ounce
• The 2018 Mali exploration budget has been in creased by $4 million (from $15 million to $19
million), based on good drill results to date, to acce lerate the current Fekola North Extension zone
drill program
• B2Gold is well on target to achieve transformational growth in 2018 and currently expects to meet the
upper end of its revised gold production guidan ce range of between 920,000 and 960,000 ounces
(original guidance was between 910,000 and 950,00 0 ounces) in 2018 at cash operating costs (see
“Non-IFRS Measures”) of between $505 and $550 pe r ounce and all-in sustaining costs (“AISC”)
(see “Non-IFRS Measures”) of between $780 and $830 per ounce
Gold Production
With the new large, low-cost Fekola Mine in Ma li now in full production (after achieving commercial
production on November 30, 2017), consolidated go ld production in the third quarter of 2018 was a
quarterly record of 242,040 ounces, a significant incr ease of 78% (106,412 ounces) over the same period
last year and in-line with budget. In its third fu ll-quarter of commercial operations, the new Fekola Mine
continued to operate above plan , producing 107,002 ounces of gold, 2% (1,583 ounces) above original
budget. In addition, the Masbate Mine in the Ph ilippines produced 57,542 ounces of gold, the second
highest quarterly production ever for the mine, which was 29% (12,845 ounces) above budget and 24%
(10,985 ounces) higher than the third quarter of 2017. Based on Masbate’s strong year-to-date
performance, the Company has revi sed Masbate’s annual 2018 production guidance range higher to be
between 200,000 to 210,000 ounces of gold (origina l guidance range was between 180,000 to 190,000
ounces). The Otjikoto Mine in Namibia also had a nother solid quarter and exceeded its targeted
production level. The strong operational performances by the Fekola, Masbate and Otjikoto mines offset
the production shortfalls relating to the Company’s La Libertad and El Limon mines in Nicaragua,
affected by the national political unrest. In light of La Libertad’s underperformance, for the full-year
2018, La Libertad Mine is now forecast to produ ce between 90,000 to 95,000 ounces of gold (original
guidance range was 115,000 to 120,000 ounces).
Consolidated gold production in the first nine mont hs of 2018 was a year-to-date record of 721,817
ounces, 5% (31,888 ounces) above original budget and 85% (332,005 oun ces) higher than the first nine
months of 2017.
As outlined above, B2Gold remains 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, consolidated gold
production is forecast to be at the upper end of th e Company’s guidance range of between 920,000 and
960,000 ounces. This represents an increase in annua l consolidated gold pro duction of approximately
300,000 ounces in 2018 from 2017. The Company’s forecast consolidated cash operating 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.
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With the Fekola Mine in production, the resulting in crease in gold production levels combined with low
costs have dramatically increased B2Gold’s pro duction, revenues, cash from operations and free cash
flows with ongoing benefits expected to continue for many years, based on current assumptions. If a gold
price assumption of $1,200 per ounce is used for the balance of 2018 and for 2019 and 2020, the
Company expects to average cash flow from operations of approximately $0.4 billion per annum over the
next three years.
Gold Revenue
Consolidated gold revenue in the third quarter of 2018 was $324 million on record quarterly sales of
268,527 ounces at an average price of $1,206 per ounce compared to $154 million on sales of 121,597
ounces at an average price of $1,267 per ounce in the third quarter of 2017. This significant increase in
revenue of 110% ($170 million) was ma inly attributable to the higher gold production and timing of gold
sales, relating to the sale of opening gold bullion and in-circuit inventories at the beginning of the quarter.
For the first nine months of 2018, consolidated gold revenue was a year-to-date record $953 million on
record year-to-date sales of 749,102 ounces at an average price of $1,272 per ounce compared to $465
million on sales of 373,271 ounces at an average price of $1,245 per ounce in the first nine months of
2017. This significant increase in revenue of 105% ( $488 million) was mainly attributable to the higher
gold production and timing of gold sales, relating to the sale of opening gold bullion and in-circuit
inventories at the beginning of the year.
Consolidated gold revenue in the three and nine months ended September 30, 2018 included $15 million
(Q3 2017 - $15 million) and $45 m illion (year-to-date 2017 - $45 million), respectively, related to the
delivery of gold into the Company’s Prepaid Sales contracts (accounted for as deferred revenue). During
the three and nine months ended September 30, 2018, 12,908 ounces (Q3 20 17 – 12,908 ounces) and
38,724 ounces (year-to-date 2017 - 38,724 ounces), respectively, were delivered under these contracts. At
September 30, 2018, the Company had total outstandi ng Prepaid Sales contracts of $45 million for the
delivery of 38,191 ounces with 12,909 ounces to be delivered during the remainder of 2018 and 25,282
ounces during 2019.
Operations
Mine-by-mine gold production in the third quarter and first nine months of 2018 was as follows:
Mine Q3 2018
Gold Production
(ounces) (1)
YTD 2018
Gold Production
(ounces) (1)
2018
Annual Production
Guidance
(ounces) (1)
Fekola 107,002 333,788 420,000 - 430,000
Masbate 57,542 164,943 200,000 - 210,000 (2)
Otjikoto 42,403 122,580 160,000 - 170,000
La Libertad 21,995 62,770 90,000 - 95,000 (3)
El Limon 13,098 37,736 50,000 - 55,000
B2Gold Consolidated 242,040 721,817 920,000 - 960,000
(1) B2Gold’s Q3 2018 and year-to-date 2018 production resu lts and 2018 annual production guidance are presented on a
100% basis.
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(2) Based on Masbate’s strong year-to-date performance, the Company has revise d Masbate’s annual production guidance
range higher to be between 200,000 to 210,000 ounces of gold (original guidance range was between 180,000 to
190,000 ounces).
(3) In light of the political unrest in Nicaragua, La Libertad is now forecast to produce between 90,000 to 95,000 ounces of
gold (original guidance was between 115,000 to 120,000 ounces) in 2018.
Fekola Gold Mine - Mali
The Fekola Mine in Mali continued to outperform budget in its third full-quarter of commercial
operations (after achieving commerc ial production on November 30, 2 017), running above plan on mill
throughput and recoveries. This resulted in the Feko la Mine producing 107,0 02 ounces of gold in the
third quarter of 2018, 2% (1,583 ounces) above or iginal budget. Mill throug hput and recoveries were
1,403,992 tonnes (compared to budget of 1,278,473 tonnes) and 94.7% (compared to budget of 92.7%),
respectively. The mill recoveries continue to remain above design predictions over a broad range of ore
types. It is expected that the recoveries will con tinue to be within the range of design (92.7%) and
observed (94.95%) recoveries. The average grade pr ocessed was 2.50 grams per tonne (“g/t”), below
budget of 2.77 g/t as the additional tonnage processed consisted of low-grade ore. The block model
continues to perform as expected compared to actual mined grade and tonnage.
Year-to-date, the Fekola Mine prod uced 333,788 ounces of gold, above original budget by 8% (24,036
ounces). To-date (since the commencement of ore pr ocessing began in September 2017 to September 30,
2018), gold production from the Fekola Mine totaled 445,238 ounces (including 79,243 ounces of pre-
commercial production).
For full-year 2018, Fekola’s gold production continues to outperform and is on track to be at or above its
revised production guidance range of between 420,000 to 430,000 ounces of gold (original guidance was
400,000 to 410,000 ounces), at ca sh operating costs of between $345 and $390 per ounce and AISC
between $575 and $625 per ounce.
As recently announced (see news release dated 6/28/ 2018), exploration drilling of the Fekola North
Extension has now extended gold mineralization over one kilometre north of the Fekola reserve pit
boundary. The drilling to date has i ndicated that the high-grade minera lized shoot in the Fekola reserve
deposit not only continues to be we ll-mineralized over one kilometre to the north, but the shoot has now
been intersected higher up, closer to surface than originally projected in the Fekola North Extension zone.
These results and previous drill results indicate that the potential exists, subject to further drilling, to
significantly increase open-pit resources and reserves, north of the current Fekola open-pit reserve. The
Fekola North Extension remains open to the north. Du e to the increasing size of the mineralized area,
B2Gold intends to release a new mineral resource for the Fekola deposit, including a portion of the Fekola
North Extension, in the second-half of October 2018.
In addition, based on the positive exploration results to date, the Company’s in-house technical team is
conducting engineering and other technical studies to ascertain the potential to expand the current Fekola
Mine and mill facilities, and increase tonnage thro ughput, thereby increasing annual gold production, if,
as expected, a larger open-pit resource is confirmed by the current exploration and in-fill drilling. These
studies include grinding studies for the milling circu it, a debottlenecking study, layouts to determine
space for additional infrastructure, and an assessment of the mining fleet capacity. Initial results of these
studies are projected to be available internally by year-end 2018, with disclosure expected in the first
quarter of 2019.
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Masbate Gold Mine - Philippines
The Masbate Mine in the Philippines also continued its very strong operational performance through the
third quarter of 2018, producing 57,542 ounces of gol d (the second highest quarterly production ever for
the mine), 29% (12,845 ounces) above budget and 24% (10,985 ounces) higher than the third quarter of
2017. Gold production was significantly higher than fo recast as mill throughput, recoveries and grade all
exceeded budget. This resulted mainly from higher than expected oxide ore tonnage and grade from the
Colorado Pit. Oxide ore represented 49% of the proc essed tonnage for the quarter versus budget of 29%.
The Colorado Pit was completely mined out on August 19 th (2 months earlier than budgeted, as mining
from the Colorado Pit had been accelerated to comp lete mining prior to the rainy season). However,
Masbate maintains an ore feed stockpile from the Colorado Pit that will be used to blend with the material
from the Main Vein and Montana South Pits through the end of 2018. The Masbate Mine also continued
its outstanding safety performance, achieving almost three years (1,083 days) without a Lost-Time-Injury
by quarter-end.
For the third quarter 2018, mill throughput and reco veries were 1,762,124 tonnes (compared to budget of
1,684,233 tonnes and 1,704,723 tonnes in the third qua rter of 2017) and 73.0% (compared to budget of
64.8% and 77.4% in the third quarter of 2017), resp ectively. The average grad e processed was 1.39 g/t
compared to budget of 1.28 g/t and 1.10 g/t in the third quarter of 2017.
Year-to-date, gold production at the Masbate Mine was 164,943 ounces of gold, significantly above
budget by 22% (29,639 ounces) and 11% (15,894 ounces) higher than the first nine months of 2017.
Based on Masbate’s strong year-to-date performance, the Company has revised Masbate’s production
guidance range higher to be between 200,000 to 210,0 00 ounces of gold (original guidance range was
between 180,000 to 190,000 ounces), at cash operating costs of between $675 and $720 per ounce and
AISC of between $875 and $925 per ounce.
Otjikoto Gold Mine - Namibia
The Otjikoto Mine in Namibia also delivered anot her quarter of solid production, producing 42,403
ounces of gold in the third quarter of 2018. This exceeded budget by 4% (1,568 ounces), mainly due to
higher-than-expected mill throughput (870,125 tonnes compared to budget of 831,781 tonnes and 873,516
tonnes in the third quarter of 2017). Mill recoveries also remained high and averaged 98.7%, exceeding
both budget of 98.0% and 98.5% in the third quarter of 2017. Compared to the prior-year quarter, gold
production was lower by 23% (12,748 ounces), as planned, due to a negligible amount of Wolfshag ore
being mined in 2018 while Phase 2 of the Wolfshag Pit is being developed. Higher grade ore production
is planned to resume from the Wolfshag Pit late in 2019. As a result, the aver age grade processed in the
quarter was 1.54 g/t, compared to budget of 1.52 g/t and 1.99 g/t in the third quarter of 2017.
Year-to-date, gold production at the Otjikoto Mi ne was 122,580 ounces of gold (year-to-date 2017 –
139,088 ounces), above budget by 3% (4,027 ounces).
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.
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La Libertad Gold Mine - Nicaragua
In the third quarter of 2018, La Libertad Mine in Nicaragua produced 21,995 ounces of gold, 39%
(14,207 ounces) below original budge t. As a result of the onset of national political unrest in Nicaragua,
development of the Jabali Antenna Underground proj ect was temporarily suspended. The underground
mine dewatering was completed in mid-August an d ramp development has recommenced. Production
from the underground operation is now anticipated to commence by mid-fourth quarter 2018. In addition,
the mine permit for the new Jabali Antenna Pit continues to be delayed. As a result, the planned mill feed
for the quarter of higher grade open-pit and undergr ound ore was replaced with lower-grade spent ore.
The resulting head grade for the quarter was 1.29 g/t ve rsus a budget of 2.07 g/t. The mill continued to
operate well with processing throughput at 559 ,616 tonnes (versus budget of 581,075 tonnes) and
recovery at 95.5% (versus budget of 94%).
Year-to-date, La Libertad Mine produced 62,770 ounces of gold, 24% (19,632 ounces) below original
budget. Prior to the recent disruption, gold produc tion and overall operations were improving at La
Libertad, as expected, and generally on budget through the end of May 2018.
In light of the underperformance discussed above, fo r the full-year 2018, La Libertad Mine is now
forecast to produce between 90,000 to 95,000 ounces of gold (origina l guidance range was 115,000 to
120,000 ounces at cash operating costs of between $745 and $790 per ounce and AISC of between $1,050
and $1,100 per ounce).
El Limon Gold Mine - Nicaragua
In the third quarter of 2018, El Limon Mine in Nicaragua produced 13,098 ounces of gold, 16% (2,461
ounces) below original budget. Gold production at El Li mon also continued to be affected by the national
political unrest, resulting in delays for the required pe rmits for explosives and other shipments. However,
by September, mining and processing production had returned to planned levels.
Year-to-date, El Limon Mine pr oduced 37,736 ounces of gold, 14% (6,182 ounces) below original
budget. In addition to the disrup tion discussed above, during the month of June, El Limon’s gold
production was impacted by illegal road blockades. The blockades were related to local employment
issues for the community and were resolved through dialogue with a newly developed community
stakeholder committee to ensure local concerns were addressed.
For full-year 2018, El Limon’s gold production is expected to meet its revised production guidance range
of between 50,000 to 55,000 o unces of gold (original guidance was 55,000 to 60,000 ounces at cash
operating costs of between $700 and $750 per ounce and AISC of between $1,135 and $1,185 per ounce).
On October 5, 2018, the Company was granted the mine permit for the Limon Central Pit. Infrastructure
development and pre-stripping operations at Limon Central will commence immediately.
On February 23, 2018, the Company announced a po sitive initial open-pit Inferred Mineral Resource at
the newly-discovered Central zone of 5,130,000 tonn es at a grade of 4.92 g/t of gold, containing 812,000
ounces of gold (100% basis) (see news release dated 2/ 23/2018). The Central zone, at its closest point, is
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approximately 150 metres from El Limon mill facilit y, extending southeast and northwest, adjacent to
existing plant and administrative infrastructure. Mining this large, good grade resource has the potential to
decrease El Limon’s cash operating costs per ounce a nd AISC per ounce, and significantly extend the
mine life. The Company is currently conducting engineering and metallurgical studies on the Central zone
to evaluate the potential to expand the mill throug hput, thereby increasing annual gold production. Initial
in-house results indicate a robust case for economi c expansion. The results from these studies are
expected to be released in the second-half of Octobe r 2018. Exploration drilling continues at the Central
zone which remains open to the north.
Outlook
Looking forward, the Company will remain focu sed on maximizing cash flows by continuing its
impressive operational and financial performance from existing mines. In addition, the Company will
continue paying down debt, pursuing expansion opport unities at existing operations and continuing with
aggressive exploration and development programs to unl ock the ultimate potential of its existing portfolio
of properties. The Company will also continue to pursue grass roots exploration targets through
acquisitions and joint ventures.
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 Persons
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.
Third Quarter and First Nine Months of 2018 Financial Results - Conference Call Details
B2Gold will release its third quarter and first nine months of 2018 results before the North American
markets open on Wednesday, November 7, 2018.
B2Gold executives will host a confer ence call to discuss the results on Wednesday, November 7, 2018,
at 10:00 am PST / 1:00 pm EST . You may access the call by dialing th e 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
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to the call via webcast by clicking http://www.investorcalendar.com/event/38074. 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 3855279).
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 information
contained in this news release.
Production results and production guidance presented in this news release reflect the total production at the mines
B2Gold operates on a 100% basis. Please see in conjunction our Annual Information Form, dated March 23, 2018,
our Management Discussion and Analysis dated August 7, 2018, and our news release dated August 14, 2018 for a
discussion of our ownership interest in the mines B2Gold operates.
This news release includes certain “forward-looking information” and “forward-looking statements” (collectively
“forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation,
including: projections; outlook; guidance; forecasts; estimates; and other statements regarding future or estimated
financial and operational performance events, gold produc tion and sales, revenues an d cash flows, capital and
operating costs, including projected cash operating cost s and AISC, and budgets; statements regarding future or
estimated mine life, metal price assumptions, ore grades a nd sources, stripping ratios, throughput, ore processing;
statements regarding anticipated exploration, drilling, de velopment, construction, permitting and other activities or
achievements of B2Gold; and including, without limitation: B2Gold expecting to meet the upper end of its revised
gold production guidance range for the full-year 2018; the ongoing benefits of the Fekola Mine production and the
resulting increase in gold production combined with low costs continuing for many years into the future, based on
current assumptions; an expected average cash flow from operations of approximately $0.4 billion per annum over
the next three years, if a gold price of $1,200 per ounce is used; the release of a new mineral resource for the
Fekola deposit and the timing thereof; a larger open-pit resource at the Fekola Mine being confirmed by the current
exploration and in-fill drilling; the availability and disclosure of initial re sults of engineering and other technical
studies to ascertain the potential to expand the current Fekola Mine and mill facilities, and the timing thereof; the
timing of the anticipated commencement of production at the Jabali Antenna Underground project; El Limon's gold
production being expected to meet its revised productio n guidance range for the full-year 2018; infrastructure
development and pre-stripping operations at Limon Central commencing immedi ately; the release of results from
engineering and metallurgical studies on the Central zone to evaluate the potential to expand the mill throughput
thereby increasing annual gold production, and the timing thereof; B2Gold remaining focused on maximizing cash
flow by continuing its impressive operational and financial performance from existing mines; B2Gold continuing
paying down debt, pursuing expansion opportunities at existing operations, and continuing aggressive exploration
and development programs to unlock the ultimate potential of its existing portfolio of properties; and B2Gold
continuing to pursue grass roots exploration targets through acquisitions and joint ventures. Estimates of mineral
resources and reserves are also forward-looking statem ents because they constitute projections regarding the