B2Gold Reports Strong Q1 2020 Results and Quarterly Records for Total Gold Production, Gold Revenue, Operating Cash Flows and Cash Operating Costs; Increases Quarterly Dividend to $0.02 per share
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News Release
B2Gold Reports Strong Q1 2020 Results and Quarterly Records for Total Gold Production, Gold Revenue,
Operating Cash Flows and Cash Operating Costs; Increases Quarterly Dividend to $0.02 per share
Vancouver, May 5, 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 first quarter of 2020.
The Company previously released its gold production and gold revenue results for the first quarter of 2020.
All dollar figures are in United States dollars unless otherwise indicated.
The Company is also pleased to announce that it has increased its quarterly dividend by 100% to $0.02 per
share, or an expected $0.08 per share annually, which will become effective upon approval and declaration
of the second quarter dividend in June 2020. The declaration and payment of future quarterly dividends
remains at the discretion of the Board of Directors and will depend on the Company's financial results, cash
requirements, future prospects and other factors deemed relevant by the Board.
The Company has been monitoring the COVID -19 pandemic and the potent ial impact at B2Gold's
operations since mid -February 2020. B2Gold places the safety and well -being of its workforce as the
highest priority and continues to encourage input from all its stakeholders as the situation continues to
evolve. The Company continues to monitor public and employee sentiment to ensure that stakeholders are
in alignment with the continued operations at its mines.
2020 First Quarter Highlights
• Consolidated gold production of 250,632 ounces, well-above budget by 7% ( 16,156 ounces) and a
significant increase of 25% (50,090 ounces) over the first quarter of 2019 (excluding discontinued
operations) with solid performances from all the Company’s operations (all exceeding their targeted
production for the quarter)
• Record quarter ly total gold production of 264,862 ounces (including 1 4,230 ounces of attributable
reported gold production from Calibre; previously estimated as 12,000 ounces in the Company’s press
release dated April 8, 2020) (1)
• Record quarterly consolidated gold revenue from the Company’s three operating mines of $380 million,
a significant increase of 44% ($116 million) over the same period last year (excluding discontinued
operations)
• Record quarterly consolidated cash flow provided by operating activities from the Company’s three
operating mines of $216 million, an increase of $130 million or 151% over the first quarter of 2019
• Record quarterly low consolidated cash operating costs (see “Non -IFRS Measures”) from the
Company’s three operating mines of $367 per ounce produced ($382 per ounce sold); consolidated all-
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in sustaining costs (“AISC”) (see “Non-IFRS Measures”) from its three operating mines of $695 per
ounce sold
• Net income attributable to the shareholders of the Company of $72 million ($0.07 per share); adjusted
net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $99 million
($0.10 per share)
• Fekola Mine achieved record quarterly gold production of 164,01 1 ounces and record low quarterly
cash operating costs of $251 per ounce produced
• Otjikoto and Masbate Mines continued their remarkable safety performance, extending the number of
days without a Lost -Time-Injury to 733 days (approximately 2 years or over 6 millio n man-hours) at
the end of the first quarter of 2020 for Otjikoto and more than 500 days at Masbate (almost 9 million
man-hours).
• B2Gold remains well positioned for continued strong operational and financial performance. Total
consolidated production gui dance remains at between 1,000,000 and 1,055,000 ounces of gold;
consolidated cash operating costs are forecast to be between $415 and $455 per ounce and consolidated
AISC are forecast to be between $780 and $820 per ounce
• Based on current assumptions, including a gold price of $1,500 per ounce for the balance of 2020, the
Company expects to generate cashflows from operating activities of approximately $700 million in
2020 and if a $1,700 per ounce gold price is assumed, more than $800 million for 2020
• Based on the Company’s current life of mine plans, from the five-year period from 2020 to 2024, annual
consolidated gold production is forecast to average 950,000 ounces with AISC averaging $825 per
ounce
• In addition to sharing best practices and helping with COVID-19 risk mitigation, the Company is also
committed to providing financial assistance to both the local communities and to local and national
authorities in the countries in which it operates
(1) B2Gold applies the e quity method of accounting for its approximate 34% ownership interest in Calibre Mining Corp.
(“Calibre”) and reports its attributable share of Calibre production ounces as part of its total production results.
2020 First Quarter Operational Results
Consolidated gold production in the first quarter of 20 20 was 250,632 ounces, well-above budget by 7 %
(16,156 ounces) and a significant increase of 25% (50,090 ounces) over the first quarter of 2019 (excluding
discontinued operations of El Limon and La Libertad) with solid performances from all the Company’s
operations, each of which exceeded its targeted production for the fir st quarter. The significant increase in
gold production over the first quarter of 2019 was driven by the Fekola Mine in Mali which had a very
strong start to the year with record quarterly gold production of 164,011 ounces, well-above budget by 9%
(14,011 ounces) and 49% (53,662 ounces) higher compared to the first quarter of 2019. Fekola’s significant
increase in gold production over the first quarter of 2019 was mainly due to expansion of the Fekola mining
fleet and optimization of the pit designs and min e plan for 2020, which have provided access to higher
grade portions of the Fekola deposit earlier than anticipated in previous mine plans.
Including attributable reported ounces from Calibre (14,230 ounces in the first quarter of 2020; previously
estimated as 12,000 ounces in the Company’s press release dated April 8, 2020), the Company’s total gold
production in the first quarter of 2020 was a quarterly record of 264,862 ounces.
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Consolidated cash operating costs in the first quarter of 2020 were a quarterly record low of $367 per ounce
produced ($382 per ounce sold), well-below budget by $53 per ounce produced (13%) and the first quarter
of 2019 by $87 per ounce produced (19%) (excluding discontinued operations ). The favourable budget
variance and prior period variance was attributable to the strong operating results from all of the Company's
operations with above budget gold production and lower than budgeted total cash operating costs at all
sites. During the first quarter of 2020, Fekola achieved quarterly record low cash operating costs of $251
per ounce produced ($286 per ounce sold) which was $40 per ounce produced (14%) below Fekola’s budget
and significantly lower compared to Fekola’s prior -year quarter by $132 per ounce produced (34%). In
addition, both Masbate’s and Otjikoto’s cash operating costs were also well-below their budgets.
Including estimated attributable results for Calibre, consolidated cash operating costs for the first quarter
of 2020 were $389 per ounce produced ($405 per ounce sold).
Consolidated AISC for the first quarter of 2020 were $695 per ounce sold, well-below budget by $110 per
ounce (14%) and the first quarter of 2019 by $48 per ounce (6%) (excluding discontinued operations). The
favourable b udget variance reflects lower-than-budgeted cash operating costs and lower -than-budgeted
sustaining capital and exploration expenditures (mainly due to timing and expected to be incurred later in
2020).
Including estimated attributable results for Calibre, AISC for the first quarter of 2020 were $721 per ounce
sold compared to budget of $822 per ounce sold and $848 per ounce sold for the first quarter of 2019.
Based on current assumptions for 2020, B2Gold remains well positioned for continued stron g operational
and financial performance . At the end of the first quarter of 2020, Calibre announced the temporary
suspension of its Nicaraguan operations due to COVID -19, creating uncertainty as to what portion of the
remaining forecasted production ounces from Calibre would be realized in 2020. H owever, given that the
Company’s three operating mines are already 16,156 ounces ahead of budget at the end of the first quarter
of 2020, the Company has determined that its overall consolidated production and financial guidance should
be maintained . Therefore, total consolidated production guidance remains at between 1,000,000 and
1,055,000 ounces of gold; consolidated cash operating costs are forecast to be between $415 and $455 per
ounce and consolidated AISC are forecast to be between $780 and $820 per ounce.
The Company has implemented several measures and introduced additional precautionary steps to manage
and respond to the risks associated with the COVID -19 virus to ensure the safety of B2Gold's employees,
contractors, suppliers and surrounding communities where the Company works while continuing to operate.
These measures include the movement of people and goods, hygiene and cleanliness, social distancing and
remote working, isolation procedures at B2Gold sites in the event of higher risk personnel, working with
surrounding communities and contingency plans for potential disruptions including increases of supplies.
The Company is continually updating the plan and response measures based on the safety and we ll-being
of its workforce, the severity of the pandemic in areas where it operates, global response measures,
government restrictions and extensive community consultation. The Company is working closely with
national and local authorities and will be monit oring each site's situation closely while ensuring the safe
operation of its mines.
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In addition to sharing best practices and helping with risk mitigation, the Company is also committed to
providing financial assistance to both the local communities and to local and national authorities in the
countries in which it operates . B2Gold is helping to ensure food security and is providing support for
medical equipment and health services to local communities around its mining operations. In Metro
Vancouver, B2Gold is contributing CDN$500,000 to support three local community organizations. In Mali,
B2Gold has committed $500,000 including funds for much needed medical supplies; in the Philippines,
B2Gold has committed $415,000 to assist families with food and basi c medical requirements; and in
Namibia, B2Gold has committed $321,000, with a focus on hygiene, sanitation and food security within
urban townships.
2020 First Quarter Financial Results
Consolidated gold revenue in the first quarter of 2020 was a quarterly record of $380 million from the
Company’s three operating mines on sales of 239,500 ounces at an average price of $1,588 per ounce
compared to $264 million on sales of 203,400 ounces at an average price of $1,298 per ounce in the first
quarter of 2019 (excluding discontinued operations). Compared to the first quarter of 2019, the significant
increase in consolidated gold revenue of 44% ($116 million) was mainly attributable to a 22% incr ease in
the average realized gold price and an 18% increase in gold ounces sold. Despite the disruptions caused by
the COVID-19 pandemic since March 2020 , the Company continues to successfully ship its gold bullion
inventory to refineries.
Cash flow provided by operating activities in the first quarter of 2020 was a quarterly record of $216 million
from the Company’s three operating mines compared to $86 million in the first quarter of 2019 . This
significant increase of $130 million (151%) reflected the significant increase in gold revenue, as a result of
higher realized gold prices and sales (as discussed above).
Net income for the first quarter of 2020 was $83 million compared to $27 million for the first quarter of
2019. For the first quarter of 2020, the Company generated net income attributable to the shareholders of
the Company of $72 million ($0.07 per share) compared to $22 million ($0.02 per share) in the first quarter
of 2019. Adjusted net income attributable to shareholders of the Company (see “Non-IFRS Measures”) for
the first quarter of 2020 was $99 million ($0.10 per share) compared to $32 million ($0.0 3 per share) in
first quarter of 2019.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. As at March 31, 2020, the Company
had cash and cash equivalents of $208 million compared to cash and cash equivalents of $141 million at
December 31, 2019. Working capital as at March 31, 2020 was $265 million compared to $242 million at
December 31, 2019.
The Company has a revolving credit facility (“RCF”) with a syndicate of international banks for an
aggregate amount of $600 million. The RCF also allows for an accordion feature whereby upon receipt of
additional binding commitments, the facility may be increased to $800 million any time prior to the maturity
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date of May 9, 2023. During the first quarter of 2020, the Company repaid $25 million on its RCF, leaving
an RCF outstanding balance of $175 million as at March 31, 2020.
The Company continues to monitor the ongoing global impact of the COVID-19 pandemic and has sought
to increase its overall cash liquidity by retaining a significant portion of cash generated from operations
within cash and cash equivalents. As a precautionary measure and given the current uncertainty resulting
from the COVID-19 pandemic, on April 8, 2020, the Company completed the draw down of a further $250
million on its $600 million RCF, resulting in a total revised drawn down balance of $425 million and
available undrawn capacity of $175 million. The Company currently has no plans to utilize these funds for
operating purposes, given its strong financial position or for acquisitions. The $250 million was draw n to
provide additional liquidity flexibility and assurance until the ultimate timing and outcome of the COVID-
19 pandemic can be reasonably determined. At the present time, the Company has no pending scheduled
debt repayment other than normal scheduled repayments on its Caterpillar equipment loan facilities.
Based on current assumptions, including the continued strong operating performance at each of the
Company's mines and no other unforeseen work stoppages due to COVID-19, the Company still expects to
have the option to repay the entire drawn balance of $425 million under its RCF over the course of the 2020
fiscal year and finish 2020 in a strong net positive cash position. The Company’s ongoing strategy is to
continue to maximize profitable production from its mines, reduce debt, expand the Fekola Mine throughput
and annual production, further advance its pipeline of development and exploration projects and evaluate
exploration opportunities.
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Operations
Mine-by-mine gold production in the first quarter of 2020 (including the Company’s 34% share of Calibre’s
production) was as follows:
Mine
Q1 2020
Gold Production
(ounces)
2020 Forecast
Annual Gold Production
(ounces)
Fekola 164,011 590,000 - 620,000
Masbate 44,872 200,000 - 210,000
Otjikoto 41,749 165,000 - 175,000
B2Gold Consolidated (1) 250,632 955,000 – 1,005,000
Equity interest in Calibre (2) 14,230 45,000 - 50,000 (3)
Total 264,862 1,000,000 – 1,055,000 (3)
(1) “B2Gold Consolidated” - gold production is presented on a 100% basis, as B2Gold fully consolidates the results of its
Fekola, Masbate and Otjikoto mines in its consolidated financial statements (even though it does not own 100% of these
operations).
(2) “Equity interest in Calibre” - gold production in the first quarter of 2020 represents the Company’s approximate 34%
indirect share of the operations of Calibre’s El Limon and La Libertad mines. B2Gold applies the equity method of
accounting for its approximate 34% ownership interest in Calibre.
(3) At the end of the first quarter of 2020, Calibre announced the temporary suspension of its Nicaraguan operations due to
COVID-19, however, given that the Company’s three operating mines are 16,156 ounces ahead of budget at the end of
the first quarter, the Company has determined that its overall guidance should be maintained.
Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced and sold basis) in the first
quarter of 2020 were as follows (presented on a 100% basis):
Mine Q1 2020
Cash Operating Costs
($ per ounce produced)
Q1 2020
Cash Operating Costs
($ per ounce sold)
2020 Annual Guidance
Cash Operating Costs
($ per ounce)
Fekola $251 $286 $285 - $325
Masbate $722 $661 $665 - $705
Otjikoto $441 $416 $480 - $520
B2Gold Consolidated $367 $382 $395 - $440
Equity interest in
Calibre $779 $779 $720 - $760
Total $389 $405 $415 - $455
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Mine-by-mine AISC (on a per ounce of gold sold basis) in the first quarter of 2020 were as follows
(presented on a 100% basis):
Mine Q1 2020
AISC
($ per ounce sold)
2020 Annual Guidance
AISC
($ per ounce sold)
Fekola $519 $555 - $595
Masbate $908 $965 - $1,005
Otjikoto $850 $1,010 - $1,050
B2Gold Consolidated $695 $765 - $805
Equity interest in Calibre $1,157 $1,020 - $1,060
Total $721 $780 - $820
Fekola Gold Mine - Mali
The Fekola Mine in Mali had a very strong start to the year with record first quarter gold production of
164,011 ounces, well-above budget by 9% (14,01 1 ounces). This was mainly attributable to higher than
budget mined grade from Phase 4 of the Fekola Pit. Compared to the first quarter of 2019, gold production
was significantly higher by 49% (53,662 ounces), mainly due to expansion of the Fekola mining fleet and
optimization of the pit designs and mine plan, which have provided access to higher grade portion s of the
Fekola deposit earlier than anticipated in previous mine plans.
For the first quarter of 2020, mill throughput was 1.75 million tonnes, exceeding budget by 2.5% and
comparable to the first quarter of 2019 (despite planned interruptions related to the ongoing mill expansion
project). The average grade processed was 3.11 grams per tonne (“g/t”), 7% higher than budget of 2.91 g/t
and 47% higher than the 2.11 g/t processed in the first quarter of 2019 (due to a decision to temporarily
mine higher grade areas in Phase 4 of the Fekola deposit earlier than anticipated in the 2020 mine plan in
order to supplement ore stockpiles and ensure the ore is accessed prior to the rainy season). Gold recoveries
in the first quarter of 2020 averaged 93.8%, comparable to budget and the first quarter of 2019.
Fekola’s cash operating costs for the first quarter of 2020 were a quarterly record low of $251 per ounce
produced ($286 per ounce sold), well-below budget by $40 per ounce produced (14%) and significantly
lower than the prior-year quarter by $132 per ounce produced (34%). This was mainly due to higher gold
production. Fekola’s per ounce cash operating costs were well -below budget for the first quarter, despite
incurring above budgeted fuel prices. B udgeted fuel prices at Fekola were based on October 2019 actual
prices, which then increased in the fourth quarter of 2019. Fuel prices at Fekola have started to trend down
again in the first quarter of 2020. However, fuel prices in Mali are set by the Government one month in
advance and contain a fixed price component for cross -border freight and clearance costs. In addition,
Fekola typically has one to two months of inventory on hand at any point in time, which is drawn down
and included in cash operating costs as that inventory is utilized. Therefore, reported HFO and diesel costs
only partially mirror changes in underlying crude pr ices and usually with an approximately three -month
time lag.
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Fekola’s AISC for the first quarter of 2020 were $519 per ounce sold, well below budget by $59 per ounce
(10%) and the prior-year quarter by $95 per ounce (15%). The lower-than-budgeted AISC reflects the lower
cash operating costs and lower-than-budgeted sustaining capital and exploration expenditures ($11 million),
partially offset by higher royalties (resulting from higher gold prices). The lower sustaining capital and
exploration expenditures were mainly due to timing ( except for approximately $3 million of expected
overall savings on the tailings storage facility project).
Capital expenditures in the first quarter of 2020 totaled $74 million primarily consisting of $30 million for
the mining fleet expansion, $16 million for the processing plant expansion, $11 million for the solar plant
and $5 million for pre-stripping.
Based on current assumptions, for full-year 2020, the low-cost Fekola Mine is expected to produce between
590,000 and 620,000 ounces of gold at cash operating costs of between $285 and $325 per ounce and AISC
of between $555 and $595 per ounce.
Fekola Mine Expansion
The Fekola Mine expansion project has progressed well in the first quarter of 2020 and is scheduled to be
completed by the end of the third quarter of 2020. Mining fleet expansion equipment started to arrive on
site ahead of schedule in January 2020 and these pieces were commissioned in the first quarter of 2020.
The next round of mining fleet expansion equipment continues to arrive on site and is in the process of
being commissioned. All mill expansion materials have been ordered and the majority of supplies are on
site. Installation of steel and tanks have commenced and more than 50% of the necessary expansion tie-ins
have been completed, and a double tailings dam lift is more than 90% done and is expected to be completed
ahead of schedule and under budget in the second quarter of 2020.
Fekola Solar Plant
The Fekola solar plant engineering and construction has progressed well in the first quarter of 2020.
However, due to issues related to COVID-19, the Company has made the decision to temporarily suspend
construction activities on the solar plant. Suspending the solar plant installation is not expected to impact
Fekola’s production guidance for 2020 and will increase availability at the Fekola camp to assist mining
operations in isolating more of the critical wor kforce on site and mitigate COVID -19 related travel and
quarantine restrictions. The Company expects the solar plant construction will still be completed within six
months of the restart of solar construction activities.
Masbate Gold Mine – the Philippines
The Masbate Mine in the Philippines continued to perform well through the first quarter of 2020, producing
44,872 ounces of gold, slightly above budget by 2% (782 ounces), as higher -than-budgeted processed
grade/recovery more than offset lower-than-budgeted throughput (due to unbudgeted downtime for a SAG
mill inspection and reline, maintenance activities and a five day temporary suspension of mining activities
due to fuel shortage). Mining activities in the Montana Pit were scheduled to start at the beginning of 2020
but did not commence until early February 2020. Consequently, lower waste stripping activity was