B2Gold Reports Strong Fourth Quarter and Full-Year 2019 Results and Record 2019 Annual Gold Production of 980,219 Oz; Declares Dividend for First Quarter 2020
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News Release
B2Gold Reports Strong Fourth Quarter and Full-Year 2019 Results and
Record 2019 Annual Gold Production of 980,219 Oz;
Declares Dividend for First Quarter 2020
Vancouver, February 27, 2020 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announce its operational and financial results for the fourth
quarter and full-year ending December 31, 2019. The Company previously released its gold production and
gold revenue results for the fourth quarter and full -year 2019 , in addition to its production and budget
guidance for 2020 (see news release dated 1/1 5/2020). In 2020, the Company is forecasting total gold
production of between 1,000,000 and 1,055,000 ounces. All dollar figures are in United States dollars unless
otherwise indicated.
2019 Fourth Quarter Highlights
• Consolidated gold production of 234,416 ounces (including 6,010 ounces from discontinued
operations)(1) and total gold production of 245,140 ounces (including 10,724 attributable ounces from
Calibre)(2)
• Consolidated gold revenues from continuing operations of $314 million (an increase of $83 million or
36% over the fourth quarter of 2018) on sales of 211,800 ounces; adjusted consolidated gold revenues
(see “Non-IFRS Measures”) of $324 million on sales of 218,437 ounces, including gold sales from the
discontinued operations
• Consolidated cash operating costs (see “Non-IFRS Measures”) of $467 per ounce produced ($479 per
ounce sold); consolidated all-in sustaining costs (“AISC”) (see “Non -IFRS Measures”) of $882 per
ounce sold
• Consolidated cash flow provided by operating activities of $145 million (including $2 million from
discontinued operations), an increase of $71 million or 96% over the fourth quarter of 2018
• Net income attributable to the shareholders of the Company of $177 million ($0.17 per share); adjusted
net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $69 million
($0.07 per share)
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• In December 2019, the Fekola M ine exceeded one million ounces of gold production (since the
commencement of ore processing in September 2017), achieving this milestone a full year ahead of the
original production schedule
• On January 21, 2020, B2Gold announced positive results from the updated preliminary economic
assessment (“Gramalote PEA”) for the Gramalote Ridge deposit at the joint venture Gramalote Project
in Colombia and plans to complete a final feasibility study by December 31, 2020
• On February 27, 2020, B2Gold’s Board of Directors declared a quarterly cash dividend of $0.01 per
common share, payable on March 23, 2020 to shareholders of record as of March 9, 2020
2019 Full-Year Highlights
• Record annual consolidated gold production of 969,495 ounces (including 118,379 ounces from
discontinued operations) or 980,219 ounces (including 10,724 attributable 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 respective 2019 production guidance range
• Consolidated gold revenues from continuing operations of $1,156 million (an increase of $105 million
or 10% over 2018) on sales of 827,800 ounces; adjusted 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 operating costs of $512 per ounce produced ($519 per ounce sold), beating guidance
(of between $520 and $560 per ounce); consolidated AISC of $862 per ounce sold, near the mid-point
of the guidance range (of between $835 and $875 per ounce)
• Consolidated cash flow provided by operating activities of $492 million (including $43 million from
discontinued operations)
• Net income attributable to the shareholders of the Company of $293 million ($0.29 per share); adjusted
net income attributable to the shareholders of the Company of $238 million ($0.23 per share)
• On March 26, 2019, the Company announced positive results from the Expansion Study Preliminary
Economic Assessment for the Fekola Mine (“Fekola PEA”), including significant estimated increases
in average annual gold production to over 550,000 ounces per year during the five -year period 2020-
2024, and is proceeding with an expansion project to increase Fekola’s processing throughput by 1.5
million tonnes per annum (“Mtpa”) to 7.5 Mtpa , scheduled to be completed by the end of the third
quarter of 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
• 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 ounces 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
• 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 in 2020
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• Based on current operating plans, over a five-year outlook from 2020 to 2024, annual consolidated gold
production is forecast to average 950,000 ounces with AISC averaging $825 per ounce
(1) On October 15, 2019, B2Gold and Calibre Mining Corp. (“Calibre”) completed the transaction where B2Gold
restructured its interests in, and Calibre acquired, the El Limon and La Libertad mines. Accordingly, for the period
from January 1, 2019 to October 14, 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 i nterest in
Calibre (approximately 34%) and reports its attributable share of Calibre production ounces as part of its total
production results.
2019 Full-Year and Fourth Quarter Operational Results
For B2Gold, 2019 was another solid year of operational performance, with the achievement of B2Gold’s
eleventh consecutive year of record annual consolidated gold production. For full-year 2019, B2Gold’s
consolidated gold production was an annual record 969,495 ounces (including 118,379 ounces from
discontinued operations). Including attributable ounces from Calibre (10,724 ounces for the stub period
October 15, 2019 to December 31, 2019), consolidated gold production was 980,219 ounces, exceeding the
upper end of the Company’s guidance range (of between 935,000 and 975,000 ounces) . The Fekola Mine
in Mali continued to outperform expectations in 2019 and exceeded the upper limit of its increased
production guidance range (of between 445,000 and 455,000 ounces ) with gold production of 455,810
ounces. The Masbate Mine in the Philippines delivered another very strong year in 2019, producing an
annual record 217,340 ounces of gold, also exceeding the upper limit of its guidance range (of between
200,000 and 210,000 ounces). In addition, the Otjikoto Mine in Namibia had another solid year in 2019,
producing 177,966 ounces of gold, also exceeding the upper limit of its guidance range (of between 165,000
and 175,000 ounces).
In the fourth quarter of 2019, B2Gold’s consolidated gold production was 234,416 ounces (including 6,010
ounces from discontinued operations). Including attributable ounces from Calibre (10,724 ounces for the
stub period October 15, 2019 to December 31, 2019), the Company’s total gold production for the fourth
quarter of 2019 was 245,140 ounces. Gold production from the Company's continuing operations exceeded
budget in the fourth quarter of 2019 by approximately 13,000 ounces, mainly due to the continued higher
throughput at Fekola and high-grade ore production from the Wolfshag Pit at Otjikoto.
The Company’s full -year 2019 consolidated cash operating costs (including discontinued operations and
the Company's attributable share of Calibre's results) were $512 per ounce produced ($519 per ounce sold),
beating guidance (of between $520 and $560 per ounce) . C onsolidated AISC (including discontinued
operations and the Company's attributable share of Calibre's results) were $862 per ounce sold, near the
mid-point of the guidance range (of between $835 and $875 per ounce).
In the fourth quarter of 2019, consolidated cash operating costs (including discontinued operations and the
Company's attributable share of Calibre's results) were $467 per ounce produced ($479 per ounce sold), in-
line with or slightly lower than plan, and consolidated AISC were $882 per ounce sold. AISC for the fourth
quarter of 2019 included timing differences related to the catch up of budgeted sustaining capital at Fekola
and pre-stripping costs for Wolfshag Phase 3 at Otjikoto, both of which were delayed from earlier quarters
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in 2019. AISC for the fourth quarter of 2019, also included higher than budgeted royalties and production
taxes (approximately $4 million) due to higher than budgeted realized gold prices and production.
Looking forward to 2020, B2Gold remains well positioned for continued strong operational and financial
performance with consolidated gold production forecast to be in the range of between 955,000 and
1,005,000 ounces. Including the Company’s share (34%) of attributable ounces projected from Calibre’s El
Limon and La Libertad mines (of between 45,000 and 50,000 ounces), the Company’s total gold production
is expected to be between 1,000,000 and 1,055,000 ounces in 2020.
With higher gold production forecast for 2020, continued cost controls 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. The Company’s consolidated cash operating
costs (including the Company's attributable share of Calibre's results) are forecast to significantly decrease
in 2020 (by approximately 15 % compared to 2019) and be between $415 and $455 per ounce. The
Company’s consolidated AISC (including the Company's attributable share of Calibre's results) are forecast
to be between $780 and $820 per ounce, approximately 7% lower than in 2019.
Based on current operating plans, over a five -year outlook from 2020 to 2024, annual consolidated gold
production is forecast to average 950,000 ounces with AISC averaging $825 per ounce.
2019 Full-Year and Fourth Quarter Financial Results
For full-year 2019, consolidated gold revenue from continuing operations was $1,156 million on sales of
827,800 ounces at an average price of $1,3 96 per ounce compared to $1,051 million on sales of 833,696
ounces at an average price of $1,2 61 per ounce in 2018. The $105 million (10%) increase in gold revenue
was mainly attributable to a 10% increase in the average realized gold price. Including El Limon and La
Libertad (discontinued operations), consolidated gold revenue was an annual record of $ 1,318 million on
sales of 943,465 ounces at an average realized price of $1,397 per ounce.
For the fourth quarter of 2019, consolidated gold revenue from continuing operations was $314 million on
sales of 211,800 ounces at an average price of $1, 481 per ounce compared to $ 231 million on sales of
188,029 ounces at an average price of $1,2 28 per ounce in the fourth quarter of 2018. The significant
increase in gold revenue of $ 83 million (36%) was mainly attributable to a 21 % increase in the average
realized gold price and 13% increase in gold ounces sold. Including El Limon and La Libertad (discontinued
operations), consolidated gold revenue was $324 million on sales of 218,437 ounces at an average realized
price of $1,482 per ounce.
For full-year 2019, consolidated cash flow provided by operating activities from continuing operations was
$449 million compared to $426 million in 2018. Cash flow provided by operating activities (including $43
million from discontinued operations) was $492 million in 2019 compared to $451 million in 2018. At
December 31, 2019, the Company had approximately 25,000 ounces of gold sitting at refineries waiting for
final processing. Due to the timing of final shipments for the Fekola and Masbate Mines in late December
2019, these ounces were not available for sale until January 2020, when they were sold at an average
realized price of $1,568 per ounce for total proceeds of approximately $39 million. In addition, in the fourth
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quarter of 2019, the Company elected to make a voluntary installment prepayment of Fekola income taxes
of $12.5 million. This prepayment will reduce the final installment amount payable in the second quarter
of 2020 for Fekola's 2019 income taxes by a corresponding amount of $12.5 million. If the Company had
not elected to make this voluntary prepayment of income taxes, cash flow provided by operating activities
for 2019 would have totalled $505 million. Total cash income tax payments for 2019, including the final
Fekola 2018 taxes due, the Fekola 2018 priority dividend and 2019 corporate tax installments, were $119
million. Based on current assumptions, t he Company expects to make cash income tax payments in 2020
of approximately $115 million.
Cash flow provided by operating activities from continuing operations was $143 million in the four th
quarter of 2019 compared to $71 million in the prior-year quarter, significantly increasing by $72 million
(101%), reflecting the significant increase in gold revenue ( as a result of higher realized gold prices and
sales, as discussed above). Cash flow provided by operating activities (including discontinued operations)
was $145 million in the fourth quarter of 2019 compared to $74 million in the fourth quarter of 2018.
For full-year 2019, the Company generated net income of $316 million compared to $45 million in 2018.
Net income attributable to the shareholders of the Company was $293 million ($0.2 9 per share) in 2019
compared to $29 million ($0.03 per share) in 2018. Adjusted net income attributable to the shareholders of
the Company was $238 million ($0.23 per share) in 2019 compared to adjusted net income of $141 million
($0.14 per share) in 2018.
Net income for the fourth quarter of 2019 was $182 million compare d to a net loss of $50 million for the
fourth quarter of 2018. Net income in the fourth quarter of 2019 included a $70 million impairment reversal
(net of deferred income taxes) for the Masbate Mine and a $40 million gain recorded on the sale of the
Nicaraguan operations to Calibre. For the fourth quarter of 2019, the Company generated net income
attributable to the shareholders of the Company of $177 million ($0.17 per share) compared to a net loss
attributable to the shareholders of the Company of $59 mil lion (net loss of $0.06 per share) in the fourth
quarter of 2018. Adjusted net income attributable to shareholders of the Company in the fourth quarter of
2019 was $69 million ($0.07 per share) compared to $3 million ($0.00 per share) in the fourth quarter of
2018.
Liquidity and Capital Resources
With higher gold production and gold prices forecast for 2020, together with lower forecast unit operating
costs, th e Company expects cash from operating activities to significantly increase in 2020. 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 cash and cash equivalents of $141 million compared to cash and
cash equivalents of $103 million at December 31, 2018. Working capital at December 31, 2019 was $242
million compared to $156 million at Decemb er 31, 2018. During 2019, the Company repaid $200 million
of the outstanding balance on its RCF. At December 31, 2019, the Company had drawn a total of $200
million under the $600 million RCF, leaving an undrawn and available balance under the RCF of $400
million.
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At December 31, 2019, the Company had total long-term debt of approximately $260 million outstanding,
comprised of $200 million drawn under the RCF with the balance of $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
2020. During 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.
The Company’s ongoing strategy is to continue to maximize profitabl e production from its mines, reduce
debt, expand the Fekola Mine throughput and annual production, further advance its pipeline of
development and exploration projects , evaluate exploration opportunities and to continue paying a
dividend.
Quarterly Dividend
On February 27, 2020, B2Gold’s Board of Directors declared a quarterly cash dividend of $0.01 per
common share, payable on March 23, 2020 to shareholders of record as of March 9, 2020. This dividend is
designated as an “eligible dividend” for the purposes of the Income Tax Act (Canada). Dividends paid by
B2Gold to shareholders outside Canada (non-resident investors) will be subject to Canadian non -resident
withholding taxes.
As part of the Company’s long-term strategy to maximize shareholder value, B2Gold expect s to declare
future dividends quarterly at the same level (which on an annualized basis would amount to $0.04 per
common share). The declaration and payment of future dividends and the amount of any such dividends
will be subject to the determination of the Board of Directors, in its sole and absolute discretion, taking into
account, among other things, economic conditions, business performance, financial condition, growth
plans, expected capital requirements, compliance with the Company’s constating documents, all applicable
laws, including the rules and policies of any applicable stock exchange, as well as any contractual
restrictions on such dividends, including any agreements entered into with lenders to the Company, and any
other factors that the Board of Directors deems appropriate at the relevant time. There can be no assurance
that any dividends will be paid at the intended rate or at all in the future.
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Operations
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 the stub period from October 15, 2019 to December 31, 2019. B2Gold applies the
equity method of accounting for its 34% ownership interest in Calibre.
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Mine-by-mine cash operating costs (on a per ounce of gold produced basis), in the fourth quarter and full -
year 2019 were as follows (presented on a 100% basis):
Mine Q4 2019
Cash Operating Costs
($ per ounce produced)
Full-year 2019
Cash Operating Costs
($ per ounce produced)
2019 Annual Guidance
Cash Operating Costs
($ per ounce)
Fekola $366 $375 $370 - $410
Masbate $694 $594 $625 - $665
Otjikoto $379 $461 $520 - $560
From Continuing
Operations $442 $449 $465- $505
La Libertad $1,037 $1,055 $840 - $880
El Limon $513 $768 $720 - $760
From Discontinued
Operations $767 $940 $795 - $835
B2Gold Consolidated $451 $509 $520 - $560
Equity interest in
Calibre $821 $821 $795 - $835
Total $467 $512 $520 - $560
Mine-by-mine cash operating costs (on a per ounce of gold sold basis) in the fourth quarter and full-year
2019 were as follows (presented on a 100% basis):
Mine Q4 2019
Cash Operating Costs
($ per ounce sold)
Full-year 2019
Cash Operating Costs
($ per ounce sold)
2019 Annual Guidance
Cash Operating Costs
($ per ounce)
Fekola $386 $380 $370 - $410
Masbate $667 $589 $625 - $665
Otjikoto $392 $468 $520 - $560
From Continuing
Operations $451 $452 $465- $505
La Libertad $783 $1,058 $840 - $880
El Limon $697 $815 $720 - $760
From Discontinued
Operations $755 $963 $795 - $835
B2Gold Consolidated $460 $515 $520 - $560
Equity interest in
Calibre $810 $810 $795 - $835
Total $479 $519 $520 - $560