B2Gold Reports Strong Q1 2022 Results; Total Gold Production of 209,365 oz, 5% Above Budget with Cash Operating Costs and All-In Sustaining Costs Below Budget
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News Release
B2Gold Reports Strong Q1 2022 Results;
Total Gold Production of 209,365 oz, 5% Above Budget with
Cash Operating Costs and All-In Sustaining Costs Below Budget
Vancouver, May 3, 2022 – 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 2022.
The Company previously released its gold production and gold revenue results for the first quarter of 2022.
All dollar figures are in United States dollars unless otherwise indicated.
2022 First Quarter Highlights
• Total gold production of 209,365 ounces (including 12,892 ounces of attributable production from
Calibre Mining Corp. (“Calibre”)), 5% (9,760 ounces) above budget, and consolidated gold production
of 196,473 ounces from the Company’s three operating mines, 4% (8,431 ounces) above budget, with
solid performances from all the Company’s three mines, with each mine exceeding its budgeted
production for the first quarter of 2022
• Consolidated gold revenue was $366 million on sales of 195,100 ounces at an average realized price of
$1,874 per ounce
• Total consolidated cash operating costs (see “Non-IFRS Measures”) of $699 per ounce produced, well-
below budget by $94 per ounce produced (12%), and total consolidated all-in sustaining costs (“AISC”)
(see “Non-IFRS Measures”) of $1,036 per ounce sold, significantly below budget by $318 per ounce
sold (23%) (including estimated attributable results for Calibre)
• Cash flow provided by operating activities before changes in non -cash working capital was $152
million ($0.14 per share) compared to $171 million ($0.16 per share) in the first quarter of 2021; cash
flow provided by operating activities after changes in non-cash working capital was $107 million ($0.10
per share) compared to $146 million ($0.14 per share) in the first quarter of 2021
• Net income attributable to the shareholders of the Company of $81 million ($0.08 per share); adjusted
net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $65 million
($0.06 per share)
• For 2022, B2Gold remains well positioned for continued strong operational and financial performance
with total gold production guidance of between 990,000 - 1,050,000 ounces (including 40,000 - 50,000
attributable ounces projected from Calibre) with total consolidated cash operating costs forecast to be
between $620 - $660 per ounce and total consolidated AISC forecast to be between $1,010 - $1,050
per ounce
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• The Company announced an updated and significantly increased Mineral Resource estimate for
the Anaconda area, comprised of the Menankoto permit and the Bantako North permit, located
approximately 20 kilometres from the Fekola Mine; preliminary planning has demonstrated that a pit
situated on the Anaconda area could provide saprolite (weathered) material to be trucked to and fed
into the Fekola mill commencing as early as late 2022, subject to obtaining all necessary permits and
completion of a final mine plan , with the potentia l to add an average of approximately 80,000 to
100,000 ounces per year to the Fekola mill’s annual gold production
• In April 2022, the Company acquired the Bakolobi permit in Mali from a local Malian company; covers
a 100 km2 area contiguous to both the Medinandi permit (Fekola Mine) and the Menankoto permit
• B2Gold’s Namibian subsidiary was recognized by the Namibia n Revenue Agency as the highest
revenue contributor among “Overall Top Contributors” in calendar year 2021
2022 First Quarter Operational Results
Total gold production in the first quarter of 202 2 was 209,365 ounces (including 12,892 ounces of
attributable production from Calibre), above budget by 5% ( 9,760 ounces), and consolidated gold
production from the Company’s three operating mines was 196,473 ounces, above budget by 4% (8,431
ounces), with solid performances from the Company’s three mines, with each mine exceeding its budgeted
production for the first quarter of 2022 (see “Operations” section below). Due to the timing of higher-grade
ore mining, consolidated gold production from the Company’s three operating mines is expected to be
significantly weighted to the second half of 2022. As expected, compared to the first quarter of 2021, total
consolidated gold production was lower by 5% ( 11,279 ounces), due to the planned significant waste
stripping campaign and lower mined ore tonnage at the Fekola Mine in the first quarter of 2022, as Phase
6 of the Fekola Pit continues to be developed in the first half of 2022.
For the first quarter of 2022, total consolidated cash operating costs (including estimated attributable results
for Calibre) were $699 per ounce produced ($656 per ounce sold), well-below budget by $94 per ounce
produced (12%), and consolidated cash operating costs from the Company’s three operating mines were
$676 per ounce produced ($630 per ounce sold), well-below budget by $103 per ounce produced (13%).
These favourable budget variances were attributable to higher than budgeted gold production, lower than
budgeted stripping costs and lower than budgeted realized fuel prices at the Fekola Mine , which were
partially offset by higher than budgeted fuel prices at the Masbate and Otjikoto mines. As expected, total
consolidated cash operating costs were higher in the first quarter of 202 2 compared to $ 609 per ounce
produced ($582 per ounce sold) in the first quarter of 202 1, and consolidated cash operating costs were
higher in the first quarter of 2022 compared to $581 per ounce produced ($552 per ounce sold) in the first
quarter of 2021, mainly as a result of the planned lower gold production and higher costs for fuel and other
consumables.
For the first quarter of 2022, total consolidated AISC (including estimated attributable results for Calibre)
were $1,036 per ounce sold (Q1 2021 - $932 per ounce sold), significantly below budget by $318 per ounce
sold (23%), and consolidated AISC from the Company’s three operating mines were $1,028 per ounce sold
(Q1 2021 - $919 per ounce sold), significantly below budget by $339 per ounce (25%). These favourable
budget variances were attributable to lower than budgeted cash operating costs, higher than budgeted gold
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ounces sold and lower than budgeted sustaining capital expenditures ($33 million), which is expected to be
incurred later in 2022.
For full-year 2022, the Company's total gold production is forecast to be between 990,000 and 1,050,000
ounces (including 40,000 and 50,000 attributable ounces projected from Calibre), with total consolidated
cash operating costs forecast to be between $620 and $660 per ounce and total consolidated AISC forecast
to be between $1,010 and $1,050 per ounce. Notwithstanding the ongoing sanctions on Mali announced by
the Economic Community of West African States (“ECOWAS”) on January 9, 2022, including closure of
a number of the borders with Mali, the Fekola Mine continues to operate at full capacity and the Company
expects to meet its 2022 production guidance for the Fekola Mine. Due to the timing of high -grade ore
mining, consolidated gold production from the Company’s three operating mines is expected to be
significantly weighted to the second half of 2022; for the first half of 2022, consolidated gold production is
forecast to be between 390,000 and 410,000 ounces, which is expected to increase significantly to between
560,000 and 590,000 ounces during the second half of 2022. Based mainly on the weighting of production
and timing of stripping, consolidated guidance ranges for cash operating costs are expected to be between
$760 and $800 per ounce in the first half of 2022, before significantly improving to between $490 and $530
per ounce during the second half of 2022. In addition, consolidated guidance ranges for AISC are expected
to be between $1,250 and $1,290 per ounce in the first half of 2022 before significantly improving to
between $820 and $860 per ounce during the second half of 2022.
As previously disclosed, the Company’s operations continue to be impacted by global cost inflation .
However, despite these ongoing cost pressures, the draw downs of existing inventories, proactive
management and the revised sequencing of some capital costs means that consolidated cash operating costs
and AISC in the first quarter of 2022 were lower than budget. The Company will continue to closely monitor
the levels of cost inflation over the remainder of 2022. B2Gold’s projects and operations continue to target
long-term cash flow and value at industry leading costs per ounce of gold produced.
2022 First Quarter Financial Results
For the first quarter of 2022, consolidated gold revenue was $366 million on sales of 195,100 ounces at an
average realized gold price of $1,874 per ounce, compared to $362 million on sales of 202,330 ounces at
an average realized gold price of $1,791 per ounce in the first quarter of 2021. The slight increase in gold
revenue of 1% ($4 million) was 5% attributable to the increase in the average realized gold price, offset by
a 4% impact from the decrease in gold ounces sold (mainly due to the lower gold production).
For the first quarter of 2022, cash flow provided by operating activities before changes in non-cash working
capital was $152 million ($0.14 per share) compared to $171 million ($0.16 per share) in the first quarter
of 2021; cash flow provided by operating activities after changes in non -cash working capital was $107
million ($0.10 per share) compared to $146 million ($0.14 per share) in the first quarter of 2021. Cash flow
provided by operating activities after changes in non -cash working capital decreased by $39 million
compared to the first quarter of 2021, mainly due to higher production costs of $11 million and higher non-
cash working capital outflows in the first quarter of 2022, most significantly for current income taxes and
the timing of value-added tax receivables (“VAT”). Cash income tax payments in the first quarter of 2022
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totaled $59 million ( Q1 2021 - $21 m illion), including approximately $15 million related to 2021
outstanding tax liability obligations.
Based on current assumptions, the Company expects to generate consolidated cashflows from operating
activities of approximately $625 million for full-year 2022, expected to be significantly weighted to the
second half of 2022. The benefit of higher gold prices realized in the first quarter of 2022 is expected to be
offset by the impacts of cost inflation and delays in the recovery of VAT receivables. In addition, based on
current assumptions, the Company is forecasting to make total cash income and withholding tax payments
(including priority dividend payments) for full-year 2022 of approximately $290 million.
Net income for the first quarter of 2022 was $91 million compared to $ 99 million for the first quarter of
2021. N et income attributable to the shareholders of the Company was $81 million ($0.0 8 per share)
compared to $92 million ($0.09 per share) for the first quarter of 2021. Adjusted net income attributable to
the shareholders of the Company (see “Non-IFRS Measures”) was $65 million ($0.06 per share) compared
to adjusted net income of $97 million ($0.09 per share) for the first quarter of 2021.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. At March 31, 2022, the Company
had cash and cash equivalents of $ 649 million (December 31, 202 1 - $673 million) and working capital
(defined as current assets less assets classified as held for sale and current liabilities) of $843 million
(December 31, 2021 - $802 million). In addition, the Company’s $600 million Revolving Credit Facility
(“RCF”) remains fully undrawn and available.
On February 22, 2022, B2Gold’s Board of Directors declared a cash dividend for the first quarter of 2022
of $0.04 per common share (or an expected $0.16 per share on an annualized basis), paid on March 17,
2022 to shareholders of record as of March 9, 2022.
Due to the Company’s strong net positive cash position, strong operating results and the current higher gold
price environment, B2Gold’s quarterly dividend rate is expected to be maintained at $0.04 per common
share (or an annualized rate of $0.16 per common share), one of the highest dividend yields i n the gold
sector. The declaration and payment of future quarterly dividends remains at the discretion of the Board
and will depend on the Company's financial results, cash requirements, future prospects and other factors
deemed relevant by the Board.
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Operations
Mine-by-mine gold production in the first quarter of 202 2 (including the Company’s estimated 25%
attributable share of Calibre’s production) was as follows:
Mine
Q1 2022
Gold Production
(ounces)
First-Half 2022
Forecast
Gold Production
(ounces)
Second-Half 2022
Forecast
Gold Production
(ounces)
Full-year 2022
Forecast
Gold Production
(ounces)
Fekola 101,648 220,000 - 230,000 350,000 - 370,000 570,000 - 600,000
Masbate 59,764 105,000 - 110,000 100,000 - 105,000 205,000 - 215,000
Otjikoto 35,061 65,000 - 70,000 110,000 - 115,000 175,000 - 185,000
B2Gold
Consolidated (1) 196,473 390,000 –410,000 560,000 – 590,000 950,000 – 1,000,000
Equity interest in
Calibre (2) 12,892 20,000 - 25,000 20,000 - 25,000 40,000 - 50,000
Total 209,365 410,000 – 435,000 580,000 – 615,000 990,000 – 1,050,000
(1) “B2Gold Consolidated” - gold production is presented on a 100% basis, as B2Gold fully consolidates the results of its
Fekola, Masbate and Otjikoto mines in its consolidated financial statements (even though it does not own 100% of these
operations).
(2) “Equity interest in Calibre” - represents the Company’s approximate 25% indirect share of Calibre’s operations.
B2Gold applies the equity method of accounting for its 25% ownership interest in Calibre.
Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced basis) in the first quarter of
2022 were as follows (presented on a 100% basis):
Mine
Q1 2022
Cash Operating
Costs
($ per ounce
produced)
First-Half 2022
Forecast
Cash Operating
Costs
($ per ounce
produced)
Second-Half 2022
Forecast
Cash Operating
Costs
($ per ounce
produced)
Full-year 2022
Forecast
Cash Operating
Costs
($ per ounce
produced)
Fekola $624 $720 - $760 $380 - $420 $510 - $550
Masbate $710 $730 - $770 $760 - $800 $740 - $780
Otjikoto $770 $960 - $1,000 $620 - $660 $740 - $780
B2Gold
Consolidated $676 $760 - $800 $490 - $530 $600 - $640
Equity interest in
Calibre (1) $1,054 $970 - $1,070 $970 - $1,070 $970 - $1,070
Total $699 $780 - $820 $510 - $550 $620 - $660
(1) Calibre’s 2022 forecast cash operating costs are assumed to be consistent throughout 2022.
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Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the first quarter of 2022
were as follows (presented on a 100% basis):
Mine
Q1 2022
Cash Operating
Costs
($ per ounce sold)
First-Half 2022
Forecast
Cash Operating
Costs
($ per ounce sold)
Second-Half 2022
Forecast
Cash Operating
Costs
($ per ounce sold)
Full-year 2022
Forecast
Cash Operating
Costs
($ per ounce sold)
Fekola $583 $720 - $760 $380 - $420 $510 - $550
Masbate $785 $730 - $770 $760 - $800 $740 - $780
Otjikoto $590 $960 - $1,000 $620 - $660 $740 - $780
B2Gold
Consolidated $630 $760 - $800 $490 - $530 $600 - $640
Equity interest in
Calibre (1) $1,047 $970 - $1,070 $970 - $1,070 $970 - $1,070
Total $656 $780 - $820 $510 - $550 $620 - $660
(1) Calibre’s 2022 forecast cash operating costs are assumed to be consistent throughout 2022.
Mine-by-mine AISC (on a per ounce of gold sold basis) in the first quarter of 202 2 were as follows
(presented on a 100% basis):
Mine
Q1 2022
Forecast
AISC
($ per ounce sold)
First-Half 2022
Forecast
AISC
($ per ounce sold)
Second-Half 2022
Forecast
AISC
($ per ounce sold)
Full-year 2022
Forecast
AISC
($ per ounce sold)
Fekola $987 $1,140 - $1,180 $660 - $700 $840 - $880
Masbate $1,022 $1,120 - $1,160 $1,020 - $1,060 $1,070 - $1,110
Otjikoto $878 $1,460 - $1,500 $930 - $970 $1,120 - $1,160
B2Gold
Consolidated $1,028 $1,250 - $1,290 $820 - $860 $1,000 - $1,040
Equity interest in
Calibre (1) $1,155 $1,100 - $1,200 $1,100 - $1,200 $1,100 - $1,200
Total $1,036 $1,240 - $1,280 $830 - $870 $1,010 - $1,050
(1) Calibre’s 2022 forecast AISC are assumed to be consistent throughout 2022.
Fekola Gold Mine - Mali
The Fekola Mine in Mali had a successful start to the year with first quarter of 2022 gold production of
101,648 ounces, slightly above budget by 1% (917 ounces), as higher than budgeted processed grade (6%)
offset lower than budgeted processed tonnes (5%) based on a reduction in saprolite processed . As a
precautionary measure to hedge against potential supply chain problems arising from ECOWAS sanctions,
the Fekola Mine proactively prioritized the processing of high -grade fresh ore t o reduce reagent
consumption and ensure that sufficient reagents remained available to process higher -grade ore to meet
budgeted gold production (which resulted in lower than budgeted throughput for the first quarter of 2022).
Although the sanctions continue, the situation has normalized as regular imports of reagents were received
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by Fekola in February and March 2022 . As a result, saprolite ore was reintroduced back into the Fekola
mill feed blend at the end of February 2022, and the processing of saprolite ore resumed as planned and is
ongoing. Fekola’s gold production is expected to be significantly weighted to the second half of 2022 when
mining reaches the hi gher-grade portion of Phase 6 of the Fekola Pit and Cardinal operations are at full
capacity. As expected, compared to the first quarter of 2021, Fekola’s gold production was lower by 19%
(23,440 ounces), due to planned significant waste stripping and lower mined ore tonnage, as Phase 6 of the
Fekola Pit continues to be developed in the first half of 2022.
For the first quarter of 2022, mill feed grade was 1.54 grams per tonne (“g/t”) compared to budget of 1.45
g/t and 1.99 g/t in the first quarter of 2021; mill throughput was 2.20 million tonnes compared to budget of
2.31 million tonnes and 2.07 million tonnes in the first quarter of 2021; and gold recovery averaged 93.3%
compared to budget of 9 3.5% and 9 4.4% in the first quarter of 20 21. For the first quarter of 2022, as
described above, processed grade was above budget while processed tonnes were below budget mainly due
to the brief temporary suspension of processing saprolite ore, offset by the processing of higher-grade ore,
in January and February 2022. Processed grade was lower compared to the first quarter of 2021 due to the
planned significant waste stripping campaign in the first quarter of 2022.
For the first quarter of 2022, Fekola’s cash operating costs were $624 per ounce produced ($583 per ounce
sold), significantly below budget by $ 157 per ounce produced ( 20%), mainly as a result of lower than
budgeted mining, processing and site general cost s. These favourable cost variances were mainly
attributable to lower than budgeted fuel prices realized in the first quarter of 2022 (as fuel prices are set in
advance by the State and therefore subject to timing delays between market fuel price increases and those
experienced at the Fekola Mine) and below budgeted volumes of fuel and other consumables utilized due
to lower overall tonnes mined and processed compared to budget. Mined tonnes were lower than b udget
due to a temporary change in mine sequencing to accommodate the temporary change in saprolite
processing as discussed above. Over 20% of the power generated in first quarter of 2022 was solar, resulting
in over 3.5 million litres of fuel savings and a reduction of over 11,000 tonnes of carbon emissions in the
first quarter of 2022. As expected, Fekola’s cash operating costs were higher in the first quarter of 202 2
compared to $503 per ounce produced ($479 per ounce sold) in the first quarter of 2021, mainly as a result
of the planned lower gold production, higher fuel and other consumable costs and increased mining costs
from operating deeper in the Fekola Pit.
Fekola’s AISC for the first quarter of 202 2 were $987 per ounce sold (Q1 202 1 - $770 per ounce sold),
significantly below budget by $342 per ounce sold (26%), mainly attributable to the lower than budgeted
cash operating costs, higher than budgeted gold ounces sold and lower sustaining capital expenditures ($14
million, mainly due to the timing of pre-stripping). The lower than budgeted sustaining capital expenditures
were primarily a result of timing of pre-stripping and are expected to be incurred later in 2022.
Capital expenditures for the first quarter of 2022 totaled $28 million , primarily consisting of $14 million
for pre-stripping, $6 million for mobile equipment for the Cardinal Zone, $4 million for mobile equipment
purchases and rebuilds for Fekola and $4 million for the tailings storage facility dam raise.
On February 2, 2022 , the Company announced an updated Mineral Resource estimate for the Cardinal
Zone, adjacent to the Fekola Mine . The updated resource included a significantly increased Mineral
Resource estimate for Cardinal Zone as at December 31, 2021 with an initial Indicated Mineral Resource
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estimate of 8,000,000 tonnes at 1.67 g/t gold for 430,000 ounces of gold, and an updated Inferred Mineral
Resource estimate of 19,000,000 tonnes at 1.21 g/t gold for 740,000 ounces of gold, constrained wi thin a
conceptual pit run at US$1,800 per ounce gold. Approximately 50,000 ounces has been budgeted to be
produced from the Cardinal Zone in 2022 and included in Fekola's 2022 production guidance. Based on
engineering studies completed to date, the Cardina l Zone has the potential to add an average of
approximately 60,000 ounces per year over the next 6 to 8 years to Fekola's annual gold production.
The low-cost Fekola Mine is expected to produce between 570,000 and 600,000 ounces of gold in 2022 at
cash operating costs of between $510 and $550 per ounce and AISC of between $840 and $880 per ounce.
For the first half of 2022, Fekola’s gold production is expected to be between 220,000 and 230,000 ounces,
which is expected to increase significantly to between 350,000 and 370,000 ounces during the second half
of 2022. Based mainly on the weighting of production and timing of pre-stripping, Fekola’s cash operating
costs are expected to be between $720 and $760 per ounce in the first half of 2022, before significantly
improving to between $380 and $420 per ounce during the second half of 2022. In addition, Fekola’s AISC
are expected to be between $1,140 and $1,180 per ounce in the first half of 2022, before significantly
improving to between $660 and $700 per ounce during the second half of 2022.
Masbate Gold Mine – The Philippines
The Masbate Mine in the Philippines had a strong start to the year with first quarter of 2022 gold production
of 59,764 ounces, above budget by 11% (5,711 ounces) and 4% (2,251 ounces) higher compared to the first
quarter of 2021, mainly due to higher processed grade.
For the first quarter of 2022, mill feed grade was 1.19 g/t compared to budget of 1.09 g/t and 1.10 g/t in the
first quarter of 2021; mill throughput was 2.01 million tonnes compared to budget of 1.93 million tonnes
and 1.95 million tonnes in the first quarter of 2021; and gold recovery averaged 78.0% compared to budget
of 79.7% and 83.6% in the first quarter of 2021. Processed grade was above budget in the first quarter of
2022 due to mining additional (unbudgeted) higher-grade areas identified within the planned mining areas.
In addition, mine haulage optimizations related to the expansion of the tailings facility resulted in shorter
than planned hauls of waste and increased mining rates and contributed to the above budgeted mined high-
grade ore tonnage in the first quarter of 2022. Compared to the first quarter of 2021, gold recoveries were
lower as a result of processing a higher proportion of fresh rock ore in the first quarter of 2022.
For the first quarter of 2022, Masbate’s cash operating costs were $710 per ounce produced ($785 per ounce
sold), well-below budget by $ 51 per ounce produced ( 7%), mainly the result of higher gold production
partially offset by higher than budgeted diesel and HFO costs. As expected, Masbate’s cash operating costs
were higher in the first quarter of 2022 compared to $608 per ounce produced ($578 per ounce sold) in the
first quarter of 2021, mainly as a result of higher fuel and other consumable costs.
Masbate’s AISC for the first quarter of 2022 were $1,022 per ounce sold (Q1 2021 - $818 per ounce sold),
significantly b elow budget by $ 212 per ounce sold (1 7%), mainly as a result of lower than budgeted
sustaining capital expenditures ($14 million) partially offset by lower than budgeted gold sales. The lower
than budgeted sustaining capital expenditures were primarily a result of timing of expenditures and are
expected to be incurred later in 2022.