B2Gold Reports Strong Q2 2020 Results and Doubling Quarterly Dividend to $0.04 per Share; Quarterly Records for Gold Revenue and Operating Cash Flows; Cash Operating Costs and AISC Less than Budget
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News Release
B2Gold Reports Strong Q2 2020 Results and Doubling Quarterly Dividend to $0.04 per Share;
Quarterly Records for Gold Revenue and Operating Cash Flows;
Cash Operating Costs and AISC Less than Budget
Vancouver, August 5 , 2020 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G )
(“B2Gold” or the “Company”) is pleased to announce strong operational and financial results for the second
quarter and first half of 2020 and the doubling of the Company’s quarterly dividend to $0.04 per share. The
Company previously released its gold production and gold revenue results for the second quarter and first
half of 2020. All dollar figures are in United States dollars unless otherwise indicated.
2020 Second Quarter Highlights
• Consolidated gold production of 239,574 ounces from the Company’s three operating mines , above
budget by 3% (7,327 ounces) and a significant increase of 15% (30,684 ounces) over the second quarter
of 2019 (excluding discontinued operations of El Limon and La Libertad)
• Total gold production of 241,593 ounces (including 2,019 ounces of attributable production from
Calibre Mining Corp. (“Calibre”))
• Record quarterly consolidated gold revenue of $442 mill ion, a significant increase of $175 million
(65%) over the second quarter of 2019 (excluding discontinued operations)
• Record quarterly consolidated cash flow provided by operating activities from the Company’s three
operating mines of $238 million, a significant increase of $145 million (156%) over the second quarter
of 2019
• Consolidated cash operating costs (see “Non-IFRS Measures”) of $385 per ounce produced, well
below budget by $30 per ounce (7%), and consolidated all-in sustaining costs (“AISC”) (see “Non-
IFRS Measures”) of $714 per ounce sold, well-below budget by $93 per ounce (12%)
• Net income attributable to the shareholders of the Company of $124 million ($0.12 per share); adjusted
net income (see “Non -IFRS Measures”) attributable to the shareholders of the Company of $ 119
million ($0.11 per share)
• The Fekola Mine continues to operate unimpeded and no operational days have been lost due to the
recent political developments and demonstrations in Mali
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• No Lost-Time-Injury (“LTI”) incidents at the Company’s operating mines during the second quarter;
the Otjikoto and Masbate Mines continued their remarkable safety performance extending the number
of days without an LTI to 826 days for Otjikoto and 592 days for Masbate as at June 30, 2020
• B2Gold remains well positioned for continued strong operational and financial performance. Total
consolidated production guidance remains at between 1,000,000 and 1,055,000 ounces of gold; total
consolidated cash operating c osts are forecast to be between $415 and $455 per ounce and total
consolidated AISC are forecast to be between $780 and $820 per ounce.
2020 First Half Highlights
• Record half-year consolidated gold production from the Company’s three operating mines of 490,206
ounces, well above budget by 5% (23,483 ounces) and a significant increase of 20% (80,774 ounces)
over the first half of 2019 (excluding discontinued operatio ns); with solid performances from all the
Company’s operations (all exceeding their budgeted production for the first half of 2020)
• Total gold production of 506,455 ounces (including 16,249 ounces of attributable production from
Calibre)
• Record half-year consolidated gold revenue of $ 822 million, a significant increase of $ 291 million
(55%) over the first half of 2019 (excluding discontinued operations)
• Record half-year consolidated cash flow provided by operating activities of $454 million, a significant
increase of $275 million (154%) over the first half of 2019
• Consolidated cash operating costs of $376 per ounce produced, well below budget by $42 per ounce
(10%), and consolidated AISC of $705 per ounce sold, well below budget by $101 per ounce (13%)
• Net income attributable to the shareholders of the Company of $197 million ($0.19 per share); adjusted
net income attributable to the shareholders of the Company of $218 million ($0.21 per share)
• B2Gold maintains a strong financial position and liquidity; the Company was in a net cash position of
$157 million as at June 30, 2020, with its cash and cash equivalents of $628 million exceeding its debt
balances of $471 million
• Based on current assumptions, including a gold price of $1,900 per ounce for the balance of 2020, the
Company expects to generate cashflows from operating activities of more than $900 million in 2020
The Company is also pleased to a nnounce that in light of the current higher gold price environment, the
Company's strong operational performance and the fact that the Company has now reached a net positive
cash position, the B2Gold Board has decided to increase the quarterly dividend to $0.04 per share (or an
expected $0.16 per share on an annual basis), which will become effective upon approval and declaration
of the third quarter dividend. This represents a further 100% increase from the second quarter of 2020
dividend and four times higher than the initial quarterly dividend of $0.01 per share declared in the fourth
quarter of 2019. The declaration and payment of future quarterly dividends remains at the discretion of the
B2Gold Board and will depend on the Company's financial results, cash requirements, future prospects and
other factors deemed relevant by the B2Gold Board.
The Company has been monitoring the COVID -19 pandemic and the potential 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 has implemented several measures and introduced additional precautionary steps to
manage and respond to the risks associated with COVID -19 to ensure the safety of B2Gold's employees,
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contractors, suppliers and surrounding communities where the Company works while continuing to operate.
The Company is continually updating the plan and response measur es based on the safety and well -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 continues to closely monitor each site's situation, including public and
employee sentiment to ensure that stakeholders are in alignment with continued operation, while ensuring
the safe operation of its mines.
2020 Second Quarter and First Half Operational Results and Development
Consolidated gold production in the second quarter of 20 20 was 239,574 ounces, above budget by 3 %
(7,327 ounces) and a significant increase of 15% ( 30,684 ounces) over the second quarter of 2019
(excluding discontinued operations ) with solid performances from all the Company’s operations. The
significant increase in gold production over the second quarter of 2019 was driven by the Fekola Mine in
Mali which continued its very strong operational performance with gold production of 147,424 ounces,
well above budget by 5% (6,424 ounces), and 29% (33,527 ounces) higher compared to the second quarter
of 2019. Fekola’s significant increase in gold production over t he second quarter of 2019 was mainly due
to the expansion of the Fekola mining fleet and optimization of the pit designs and mine plan for 2020,
which have provided access to higher grade portions of the Fekola deposit earlier than anticipated in
previous mine plans. The Otjikoto Mine in Namibia also had a solid second quarter, producing 43,496
ounces of gold, 3% (1,342 ounces) above budget, and 16% (6,075 ounces) higher compared to the second
quarter of 2019. The Masbate Mine in the Philippines continued to perform well through the second quarter
of 2020, despite being temporarily limited by a reduced workforce due to COVID-19 restrictions, producing
48,654 ounces of gold, approximately in -line with budget. Including attributable ounces from Calibre
(2,019 ounces), the Company’s total gold production in the second quarter of 2020 was 241,593 ounces.
For the second quarter of 2020, consolidated cash operating costs were $385 per ounce produced ($377 per
ounce sold), well below budget by $30 (7%) per ounce p roduced and significantly less than the second
quarter of 2019 by $71 (16%) per ounce produced (excluding discontinued operations), reflecting the strong
operating results from all of the Company's operations. Including estimated attributable results for Calibre,
the Company’s total cash operating costs were $390 per ounce produced ($383 per ounce sold).
For the second quarter of 2020, consolidated AISC were $714 per ounce sold, well below both budget by
$93 per ounce (1 2%) and the second quarter of 2019 by $93 per ounce ( 12%) (excluding discontinued
operations). The favourable budget variance reflected lower-than-budgeted cash operating costs and general
and administrative costs, lower-than-budgeted sustaining capital and exploration expenditures and higher-
than-budgeted gold ounces sold. The lower-than-budgeted sustaining capital and exploration expenditures
was mainly due to the timing of expenditures and are expected to be incur red later in 2020, with the
exception of approximately $8 million relating to the Fekola tailings storage facility project and Otjikoto
pre-stripping, which are not expected to be incurred in 2020 . Including estimated attributable results for
Calibre, the Company’s total AISC for the second quarter of 2020 were $712 per ounce sold.
Consolidated gold production for the first half of 2020 was a half -year record of 490,206 ounces, 5%
(23,483 ounces) above budget and 20% (80,774 ounces) higher than the f irst half of 2019 (excluding
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discontinued operations). Including attributable ounces from Calibre (16,249 ounces), the Company’s total
gold production in the first half of 2020 was 506,455 ounces.
For the first half of 2020, consolidated cash operating costs were $376 per ounce produced ($380 per ounce
sold), well below budget by $42 (10%) per ounce produced and significantly less than the first half of 2019
by $79 (17%) per ounce produced (excluding discontinued operations) . Including estimated attributable
results for Calibre, the Company’s total cash operating costs were $390 per ounce produced ($394 per ounce
sold).
For the first half of 2020, c onsolidated AISC were $705 per ounce sold, well below both budget by $101
(13%) per ounce sold and the first half of 2019 by $70 (9%) per ounce sold (excluding discontinued
operations). Including estimated attributable results for Calibre, the Company’s total AISC for the first half
of 2020 were $717 per ounce sold.
Based on current assumptions for 2020, B2Gold remains well positioned for continued strong operational
and financial performance. On June 24, 2020, Calibre provided revised reduced 2020 production guidance
following the temporary suspension of its Nicaragu an operations due to COVID -19. The Company’s
attributable gold production from Calibre is now estimated to be between 37,000 and 42,000 ounces for
2020 (or 8,000 ounces lower than the original estimate of between 45,000 and 50,000 ounces of gold).
However, given that the Company’s three operating mines were 23,483 ounces ahead of budget at the end
of the first half of 2020, the Company continues to maintain its overall total consolidated production and
financial guidance. Therefore, total consolidated production guidance remains at between 1,000,000 and
1,055,000 ounces of gold; total consolidated cash operating costs are forecast to be between $415 and $455
per ounce and total consolidated AISC are forecast to be between $780 and $820 per ounce.
The Company’s expansion and development projects also progressed well through the second quarter of
2020:
- At Fekola, the mine expansion project remains on schedule to be completed by the end of the third
quarter of 2020. Mining fleet expansio n equipment (including excavators, trucks, and drill rigs)
continued to arrive on site and be commissioned throughout the second quarter. The mill expansion
continues to be on schedule and was approximately 75% complete by the end of June 2020. The
mill expansion commissioning team arrived on site in late July and the mill expansion is expected
to be fully commissioned by the end of the third quarter 2020.
- At Otjikoto, engineering of the Wolfshag underground mine continued and an underground mining
contractor bid process was held in the second quarter of 2020 for the development of the
underground workings up to the production stopes. Development of the portal and primary ramp is
expected to commence in the fourth quarter of 2020 and stope ore production i s expected to
commence in early 2022, in-line with original estimates. However due to COVID-19 related delays,
approximately $4 million of the related capital costs are now expected to be incurred in 2021 rather
than in the current year.
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- At the Gramalote project, operations restarted on May 4, 2020 (following a temporary shutdown
due to COVID-19) for Environmental Impact Assessment related field activities, with exploration
drilling recommencing on May 11, 2020. During the shutdown, other aspects of the Feasibility
Study such as mine engineering review, metallurgical investigations and process plant design
development continued to advance. Ongoing exploration work continues with a focus on infill
drilling of the Inferred Mineral Resource which is expected to be completed in August 2020. As
previously announced, the Company now expects to complete the Feasibility Study in the first
quarter of 2021.
2020 Second Quarter and First Half Financial Results
Consolidated gold revenue in the second quarter of 2020 was a quarterly record of $ 442 million from the
Company’s three operating mines on sales of 2 57,100 ounces at an average price of $1, 719 per ounce
compared to $267 million on sales of 203,700 ounces at an average price of $1,312 per ounce in the second
quarter of 2019 (excluding discontinued operations ). Compared to the second quarter of 20 19, the
significant increase in consolidated gold revenue of 65% ($175 million) was mainly attributable to a 31%
increase in the average realized gold price and a 26% increase in gold ounces sold (due to the higher gold
production and timing of gold sales).
For the second quarter of 2020, cash flow provided by operating activities was a quarterly record of $238
million compared to $ 93 million in the second quarter of 2019. This significant increase of $145 million
(156%) reflected the significant increase in gold revenue, as a result of higher realized gold prices and sales.
For the second quarter of 2020, net income was $138 million compared to $41 million for the second quarter
of 2019. Net income attributable to the shareholders of the Company was $124 million ($0.12 per share)
compared to $38 million ($0.04 per share) for the second quarter of 2019. Adjusted net income attributable
to shareholders of the Company (see “Non-IFRS Measures”) was $119 million ($0.11 per share) compared
to $49 million ($0.05 per share) for the second quarter of 2019.
Consolidated gold revenue for the first half of 2020 was a half-year record of $822 million on sales of
496,600 ounces at an average price of $1, 656 per ounce compared to $5 31 million on sales of 4 07,100
ounces at an average price of $1,305 per ounce in the first half of 2019 (excluding discontinued operations).
The significant increase in consolidated gold revenue of $291 million (55%) was mainly attributable to a
27% increase in the average realized gold price and a 22% increase in gold ounces sold.
For the first half of 2020, cash flow provided by operating activities was a half-year record of $454 million,
a significant increase of $275 million (154%) compared to the first half of 2019, as a result of higher realized
gold prices and sales.
For the first half of 2020, net income was $221 million compared to $68 million for the first half of 2019.
Net income attributable to the shareholders of the Company was $197 million ($0.19 per share) compared
to $60 million ($0.06 per share) for the first half of 2019. Adjusted net income attributable to the
shareholders of the Company was $218 million ($0.21 per share) compared to adjusted net income of $80
million ($0.08 per share) for the first half of 2019.
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Liquidity and Capital Resources
B2Gold maintains a strong financial pos ition and liquidity . The Company was in a net cash position of
$157 million as at June 30, 2020, with its cash and cash equivalents of $628 million (December 31, 2019 -
$141 million) exceeding its debt balances of $471 million. Working capital as at June 30, 2020 was $656
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
date of May 9, 2023. As at June 30, 2020, the Company had drawn $425 million under the $600 million
RCF.
On April 8, 2020, as a precautionary measure and given the current uncertainty resulting from the COVID-
19 pandemic, the Company completed the drawdown 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 $250 million drawn in April 2020 was to provide additional liquidity flexibility and assurance
until the ultimate timing and outcome of the COVID-19 pandemic could be reasonably determined. Based
on current assumptions, including the continued strong operating performance at each of the Company's
mines and no significant unforeseen work stoppages having been incurred due to COVID-19, the Company
now intends to repay the entire drawn balance of $425 million under its RCF by the end of the third quarter
of 2020 and finish 2020 in a strong cash position.
Operations
Mine-by-mine gold production in the second quarter of 2020 (including the Company’s estimated 34%
share of Calibre’s production) was as follows:
Mine Q2 2020
Gold Production
(ounces)
First Half 2020
Gold Production
(ounces)
2020
Annual Guidance
Gold Production
(ounces)
Fekola 147,424 311,435 590,000 - 620,000
Masbate 48,654 93,526 200,000 - 210,000
Otjikoto 43,496 85,245 165,000 - 175,000
B2Gold
Consolidated (1) 239,574 490,206 955,000 – 1,005,000
Equity interest in
Calibre (2) 2,019 16,249 45,000 - 50,000 (3)
Total 241,593 506,455 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).
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(2) “Equity interest in Calibre” - represents the Company’s approximate 34% indirect share of the operations of Calibre’s
El Limon and La Libertad mines in Nicaragua. B2Gold applies the equity method of accounting for its 34% ownership
interest in Calibre.
(3) Based on current assumptions for 2020, B2Gold remains well positioned for continued strong operational and financial
performance. On June 24, 2020, Calibre provided its revised 2020 production guidance following the temporary
suspension of its Nicaraguan o perations due to COVID -19. The Company’s attributable gold production from Calibre
is now estimated to be between 37,000 and 42,000 ounces for 2020 (or 8,000 ounces lower than the original estimate of
between 45,000 and 50,000 ounces of gold). However, giv en that the Company’s three operating mines are already
23,483 ounces ahead of budget at the end of the first half of 2020, the Company has determined that its overall
consolidated production and financial guidance should be maintained.
Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced basis) in the second quarter
and first half of 2020 were as follows (presented on a 100% basis):
Mine Q2 2020
Cash Operating Costs
($ per ounce produced)
First Half 2020
Cash Operating Costs
($ per ounce produced)
2020
Annual Guidance
Cash Operating Costs
($ per ounce)
Fekola $300 $274 $285 - $325
Masbate $610 $664 $665 - $705
Otjikoto $421 $431 $480 - $520
B2Gold Consolidated $385 $376 $395 - $440
Equity interest in
Calibre $1,005 $807 $720 - $760
Total $390 $390 $415 - $455
Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the second quarter and
first half of 2020 were as follows (presented on a 100% basis):
Mine Q2 2020
Cash Operating Costs
($ per ounce sold)
First Half 2020
Cash Operating Costs
($ per ounce sold)
2020
Annual Guidance
Cash Operating Costs
($ per ounce)
Fekola $271 $278 $285 - $325
Masbate $740 $699 $665 - $705
Otjikoto $418 $417 $480 - $520
B2Gold Consolidated $377 $380 $395 - $440
Equity interest in
Calibre $1,251 $827 $720 - $760
Total $383 $394 $415 - $455
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Mine-by-mine AISC (on a per ounce of gold sold basis) in the second quarter and first half of 2020 were
as follows (presented on a 100% basis):
Mine Q2 2020
AISC
($ per ounce sold)
First Half 2020
AISC
($ per ounce sold)
2020
Annual Guidance
AISC
($ per ounce)
Fekola $562 $542 $555 - $595
Masbate $1,060 $981 $965 - $1,005
Otjikoto $757 $801 $1,010 - $1,050
B2Gold Consolidated $714 $705 $765 - $805
Equity interest in
Calibre $502 $1,090 $1,020 - $1,060
Total $712 $717 $780 - $820
Fekola Gold Mine - Mali
The Fekola Mine in Mali continued its very strong operational performance with second quarter of 2020
gold production of 147,424 ounces, well above budget by 5 % (6,424 ounces), with processed throughput
and recovery better than bud get and head grade in -line with budget. Compared to the second quarter of
2019, gold production was significantly higher by 29% (33,527 ounces), mainly due to the expansion of
the Fekola mining fleet and optimization of the pit designs and mine plan, which have provided access to
higher grade portions of the Fekola deposit earlier than anticipated in previous mine plans. As at June 30,
2020, the Fekola Mine achieved 163 days without an LTI.
For the second quarter of 2020, mill feed grade was 3.11 grams per tonne (“g/t”) compared to budget of
3.10 g/t and 2.07 g/t in the second quarter of 2019; mill throughput was 1.56 million tonnes compared to
budget of 1.52 million tonnes and 1.8 million tonnes in the second quarter of 2019 (lower in 2020 as a result
of planned interruptions related to the ongoing mill expansion project); and gold recovery averaged 94.8%
compared to budget of 93.0% and 94.4% in the second quarter of 2019.
For the second qu arter of 2020, Fekola’s cash operating costs were $300 per ounce produced ($271 per
gold ounce sold), approximately in-line with budget . This resulted from higher-than-budgeted gold
production together with total cash operating costs overall on-budget, partially offsetting $4.4 million of
unbudgeted COVID-19 related production costs ($30 per ounce produced) incurred during the second
quarter. The average diesel price for the second quarter of 2020 was 5% below budget, while the average
HFO price was in-line with budget. Compared to the second quarter of 2019, Fekola’s cash operating costs
were lower by $67 per ounce produced (18%), mainly as a result of higher gold production. Fekola’s AISC
for the second quarter of 2020 were $562 per ounce sold, well below budget by $27 per ounce sold (5%)
and the second quarter of 2019 by $63 per ounce sold (10%).
For the first half of 20 20, the Fekola Mine produced 311,435 ounces of gold, well above budget by 7%
(20,435 ounces) and significantly higher than the first half of 2019 by 39% (87,189 ounces).