B2Gold Reports Strong Q2 2021 Results with Continued Strong Total Gold Production of 211,612 oz, 5% Above Budget; On Track to Meet or Exceed the Upper End of its Annual Production Guidance Range of 970,000 to 1,030,000 oz
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News Release
B2Gold Reports Strong Q2 2021 Results with
Continued Strong Total Gold Production of 211,612 oz, 5% Above Budget;
On Track to Meet or Exceed the Upper End of its Annual Production Guidance Range
of 970,000 to 1,030,000 oz
Vancouver, BC, August 4, 2021 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G )
(“B2Gold” or the “Company”) is pleased to announce its operational and financial results for the second
quarter and first half of 2021. The Company previously released its gold production and gold revenue results
for the second quarter and first half of 2021. All dollar figures are in United States dollars unless otherwise
indicated.
2021 Second Quarter Highlights
• Total gold production of 211,612 ounces (including 14,232 ounces of attributable production from
Calibre Mining Corp. (“Calibre”) , well above budget by 5 % (10,269 ounces), and consolidated gold
production of 197,380 ounces from the Company’s three operating mines , well above budget by 5%
(9,787 ounces)
• Consolidated gold revenue of $363 million on sales of 200,071 ounces at an average price of $1,814
per ounce
• Fekola’s mill throughput `was a quarterly record of 2.29 million tonnes, 16% above budget and 47%
higher than the second quarter of 2020, f ollowing the successful completion of the Fekola mill
expansion in September 2020
• Total cash operating costs (see “Non-IFRS Measures”) (including estimated attributable results for
Calibre) of $664 per ounce produced and consolidated cash operating costs from the Company’s three
operating mines of $649 per ounce produced, both approximately in-line with budget
• Total all-in sustaining costs (“AISC”) (see “Non-IFRS Measures”) (including estimated attributable
results for Calibre) of $1,016 per ounce sold a nd consolidated AISC from the Company’s three
operating mines of $1,011 per ounce sold, both below budget by 3%
• Net income attributable to the shareholders of the Company of $68 million ($0.07 per share); adjusted
net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of $52 million
($0.05 per share)
• B2Gold maintains a strong financial position and liquidity with cash and cash equivalents of $382
million as at June 30, 2021, and its $600 million Revolving Credit Facility remains fully undrawn and
available
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2021 First Half Highlights
• Total gold production of 432,256 ounces (including 29,233 ounces of attributable production from
Calibre), well above budget by 7 % ( 28,811 ounces), and consolidated gold production of 403,023
ounces from the Company’s three operating mines, well above budget by 7% (27,078 ounces)
• Consolidated gold revenue of $725 million on sales of 402,401 ounces at an average price of $1,802
per ounce
• Total cash operating costs (including estimated attributable results for Calibre) of $636 per ounce
produced and consolidated cash operating costs from the Company’s three operating mines of $615 per
ounce produced, both below budget by 4%
• Total AISC (including estimated attributable results for Calibre) of $974 per ounce sold, below budget
by 8%, and consolidated AISC from the Company’s three operating mines of $965 per ounce sold,
below budget by 9%
• Net income attributable to the shareholders of the Company of $160 million ($0.15 per share); adjusted
net income attributable to the shareholders of the Company of $149 million ($0.14 per share)
• Construction of the Fekola solar plant now complete and 100% online; Fekola’s solar production to
date indicates that the plant will exceed initial power production estimates
• Selected as the recipient of five mining industry awards in the Philippines and Mali
• For full-year 2021, B2Gold remains well positioned for continued strong operational and financial
performance and is on track to meet or exceed the upper end of its total gold production forecast of
between 970,000 - 1,030,000 ounces (including 50,000 – 60,000 attributable ounces projected from
Calibre) with forecast total cash operating costs of betwee n $500 - $540 per ounce and total AISC of
between $870 - $910 per ounce
• Based on current assumptions, including a gold price of $1,800 per ounce, the Company expects to
generate cashflows from operating activities of approximately $630 million for the ful l-year 2021
(approximately $500 million of cashflows from operating activities are expected to be generated in the
second half of 2021)
Second Quarter and First Half of 2021 Operational Results
Total gold production in the second quarter of 20 21 was 211,612 ounces (including 14,232 ounces of
attributable production from Calibre), well above budget by 5% (10,269 ounces), and consolidated gold
production of 197,380 ounces from the Company’s three operating mines, well above budget by 5% (9,787
ounces).
The Fekola Mine in Mali continued its strong operational performance through the second quarter of 2021,
producing 113,611 ounces of gold, 3% (3,611 ounces) above budget, as the Fekola processing facilities
continued to outperform following the successful completion of the Fekola mill expansion in September
2020. In the second quarter of 2021, Fekola’s mill throughput was a quarterly record of 2.29 million tonnes,
16% above budget and 47% higher than the second quarter of 2020. The Masbate Mine in the Philippines
also continued its strong operational performance with second quarter of 2021 gold production of 56,878
ounces, well above budget by 8 % (4,390 ounces), as processed grade (8% above budget) and recoveries
(10% above budget) both exceeded budget which more than offset lower than budgeted throughput (8%
below budget). The Otjikoto Mine in Namibia performed well during the second quarter of 2021, producing
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26,891 ounces of gold, well above budget by 7% ( 1,786 ounces), mainly due to higher than budgeted
processed grade (5% above budget) as the grade of ore sourced from t he medium grade stockpile was
slightly higher than anticipated during the second quarter. As expected, compared to the second quarter of
2020, total gold production was lower by 12% (29,981 ounces) due to planned significant waste stripping
campaigns at both the Fekola and Otjikoto mines, which were largely completed in the first half of 2021
(for Phase 5 and Phase 6 of the Fekola Pit, and Phase 3 of the Wolfshag and Otjikoto pits). Gold production
is expected to significantly increase in the second half of 2021, when mining at Fekola reaches the higher-
grade zones of the Fek ola Pit and mining at Otjikoto reaches the higher -grade zone at the base of the
Wolfshag Pit.
For the second quarter of 2021, total cash operating costs (including estimated attributable results for
Calibre) were $664 per ounce produced ($675 per ounce sold) and consolidated cash operating costs from
the Company’s three operating mines were $649 per ounce produced ($661 per ounce sold). Consolidated
cash operating costs were approximately in-line with budget in the second quarter of 2021 , as a bove
budgeted gold production largely offset higher than budgeted realized fuel prices and processing costs. As
expected, consolidated cash operating costs were higher in the second quarter of 2021 compared to $385
per ounce produced ($377 per ounce sold) in the second quarter of 2020, mainly due to the planned lower
gold production and higher period stripping activities (described above). Total AISC (including estimated
attributable results for Calibre) for the second quarter of 2021 were $1,016 per ounce sold (Q2 2020 - $712
per ounce sold) and consolidated AISC from the Company’s three operating mines were $1,011 per ounce
sold (Q2 2020 - $714 per ounce sold). Consolidated AISC were $32 per ounce sold (3%) below budget in
the second quarter of 2021, reflecting higher than budgeted gold ounces sold, higher than budgeted gains
on settled fuel derivatives and lower than budgeted sustaining capital expenditures partially offset by higher
than budgeted royalties resulting from a higher average gold p rice realized than budgeted. The lower
sustaining capital expenditures were mainly a result of timing of expenditures and are expected to be
incurred later in 2021.
For the first half of 2021, total gold production was 432,256 ounces (including 29,233 ounces of attributable
production from Calibre), well above budget by 7% (28,811 ounces), and 15% (74,199 ounces) lower than
the first half of 2020 (for the same reasons outlined above) . Consolidated gold production from the
Company’s three operating mines was 403,023 ounces in the first half of 2021.
For the first half of 2021, total cash operating costs (including estimated attributable results for Calibre)
were $636 per ounce produced ($ 628 per ounce sold) (first half of 2020 - $390 per ounce produced and
$394 per ounce sold) and consolidated cash operating costs from the Company’s three operating mines
were $615 per ounce produced ($ 606 per ounce sold) (first half of 2020 - $376 per ounce produced and
$380 per ounce sold). Consolidated cash operating costs were $25 per ounce produced (4%) below budget
in the first half of 2021, mainly attributable to higher than budgeted gold production. Total AISC (including
estimated attributable results for Calibre) for the first half of 20 21 were $974 per ounce sold (first half of
2020 - $717 per ounce sold) and consolidated AISC from the Company’s three operating mines were $965
per ounce sold (first half of 2020 - $705 per ounce sold). Consolidated AISC were $95 per ounce sold (9%)
below budget in the first half of 2021 , reflecting higher than budgeted gold ounces sold, higher than
budgeted gains on settled fuel derivatives and lower than budgeted sustaining capital expenditures partially
offset by higher than budgeted royalties resulting from a higher average gold price realized than budgeted.
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The lower sustaining capital expenditures were mainly a result of timing of expenditures and are expected
to be incurred later in 2021.
For full -year 2021, the Comp any remains on track to meet or exceed the upper end of its total gold
production forecast range of between 970,000 - 1,030,000 ounces (including 50,000 - 60,000 attributable
ounces projected from Calibre) with total consolidated cash operating costs forecast to be between $500 -
$540 per ounce and total consolidated AISC forecast to be between $870 - $910 per ounce. The Company’s
2021 production guidance does not currently include the potential upside to increase Fekola’s gold
production in 2021 from the nearby Cardinal inferred resource area, where production is now expected to
commence in the third quarter of 2021 and the higher than budgeted processing capacity realized to date at
the expanded Fekola mill.
For full-year 2021, as budgeted, the Company’s consolidated gold production from its three operating mines
is expected to be significantly weighted to the second half of 2021 due to the planned higher waste stripping
campaigns at both the Fekola and Otjikoto mines which were largely completed in the first half of 2021 .
For the second half of 2021, consolidated gold production is expected to significantly increase over the first
half of 2021 to between 555,000 – 585,000 ounces when mining reaches the higher grade portion of Phase
5 of the Fekola Pit and Phase 3 of the Wolfshag Pit. Based mainly on the weighting of production and
timing of stripping , consolidated cash operating costs are expected to significantly improve to between
$380 - $420 per ounce and consolidated AISC to between $745 - $785 per ounce during the second half of
2021.
Second Quarter and First Half of 2021 Financial Results
For the second quarter of 2021, consolidated gold revenue was $363 million on sales of 200,071 ounces at
an average price of $1,814 per ounce, compared to $442 million on sales of 257,100 ounces at an average
price of $1,719 per ounce in the second quarter of 2020. The decrease in gold revenue of 18% ($79 million)
was 22% attributable to the decrea se in gold ounces sold (mainly due to the lower gold production and
timing of gold shipments), partially offset by a 4% impact from the increase in the average realized gold
price.
As expected, cash flow used by operating activities was $8 million in the second quarter of 2021 compared
to cash flow generated of $238 million in the second quarter of 2020. The decrease was in-line with budget
and was mainly due to lower revenues of $80 million, higher production costs of $35 million and higher
working capital outflows in the second quarter of 2021 for value-added and other tax receivables and current
income and other taxes payables. Current income tax payments in the second quarter of 2 021 included
approximately $140 million related to 2020 outstanding tax liability obligations (comprised mainly of
Fekola outstanding 2020 tax liabilities of $75 million and Fekola 2020 priority dividend obligations of $46
million). Based on current assumptions, including a gold price of $1,800 per ounce for 2021, the Company
is forecasting to make total cash income tax payments in 2021 of approximately $380 million (including
the $140 million related to 2020 outstanding tax liability obligations discussed above).
Net income for the second quarter of 2021 was $74 million compared to $138 million for the second quarter
of 2020. Net income attributable to the shareholders of the Company was $ 68 million ($0.07 per share)
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compared to $124 million ($0.12 per share) for the second quarter of 2020. Adjusted net income attributable
to the shareholders of the Company (see “Non -IFRS Measures”) was $ 52 million ($0.0 5 per share)
compared to adjusted net income of $112 million ($0.11 per share) for the second quarter of 2020.
For the first half of 2021, consolidated gold revenue was $725 million on sales of 4 02,401 ounces at an
average price of $1,802 per ounce compared to $822 million on sales of 496,600 ounces at an average price
of $1,656 per ounce in the first half of 2020. The decrease in gold revenue of 12% ($97 million) was 19%
attributable to the decrease in gold ounces sold (mainly due to the lower gold production and timing of gold
shipments), partially offset by a 7% impact from the increase in the average realized gold price.
Cash flow provided by operating activities was $138 million in the first half of 2021 compared to $454
million in the first half of 2020 . The decrease was mainly due to lower revenues of $97 million, higher
production costs of $55 million and higher working capital outflows in the first half of 2021 for value -
added and other tax receivables and current income and other taxes payables (including current income tax
payments in the first half of 2021 of approximately $140 million relating to 2020 outstanding tax liability
obligations).
For the first half of 2021, net income was $173 million compared to $221 million for the first half of 2020.
Net income attributable to the shareholders of the Company was $160 million ($0.15 per share) compared
to $ 197 million ($0. 19 per share) for the first half of 20 20. Adjusted net income attributable to the
shareholders of the Company was $149 million ($0.14 per share) compared to adjusted net income of $207
million ($0.20 per share) for the first half of 2020.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. At June 30, 2021, the Company had
cash and cash equivalents of $382 million (December 31, 2020 - $480 million) and working capital of $558
million (December 31, 2020 - $465 million). In addition, the Company’s $600 million Revolving Credit
Facility remains fully undrawn and available.
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 comm on share), one of the highest dividend yields in the gold
sector.
In 2021, the Company expects to generate cashflows from operating activities of approximately $630
million, based on current assumptions including an average gold price of $1,800 per ounce. Approximately
$500 million of this total is expected to be generated in the second half of 2021, when the Company starts
mining from the higher-grade areas of the Fekola Pit and mining at Otjikoto reaches the higher-grade zone
at the base of the Wolfshag Pit.
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Operations
Mine-by-mine gold production in the second quarter and first half of 2021 (including the Company’s
estimated 33% share of Calibre’s production) was as follows:
Mine
Q2 2021
Gold
Production
(ounces)
First-Half
2021
Gold
Production
(ounces)
First-Half
2021
Guidance
Gold
Production
(ounces)
Second-Half
2021
Guidance
Gold
Production
(ounces)
Full-year
2021
Guidance
Gold
Production
(ounces)
Fekola 113,611 238,699 220,000 -
230,000
310,000 -
330,000
530,000 -
560,000
Masbate 56,878 114,391 100,000 -
105,000
100,000 -
105,000
200,000 -
210,000
Otjikoto 26,891 49,933 45,000 -
50,000
145,000 -
150,000
190,000 -
200,000
B2Gold
Consolidated (1) 197,380 403,023 365,000 -
385,000
555,000 -
585,000
920,000 -
970,000
Equity interest
in Calibre (2) 14,232 29,233 25,000 -
30,000
25,000 -
30,000
50,000 -
60,000
Total 211,612 432,256 390,000 -
415,000
580,000 -
615,000
970,000 -
1,030,000
(1) “B2Gold Consolidated” - gold production is presented on a 100% basis, as B2Gold fully consolidates the results of its
Fekola, Masbate and Otjikoto mines in its consolidated financial statements (even though it does not own 100% of these
operations).
(2) “Equity interest in Calibre” - represents the Company’s approximate 33% indirect share of the operations of Calibre’s
El Limon and La Libertad mines. B2Gold applies the equity method of accounting for its 3 3% ownership interest in
Calibre.
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Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced basis) in the second quarter
and first half of 2021 were as follows (presented on a 100% basis):
Mine
Q2 2021
Cash
Operating
Costs
($ per ounce
produced)
First-Half
2021
Cash
Operating
Costs
($ per ounce
produced)
First-Half
2021
Guidance
Cash
Operating
Costs
($ per ounce
produced)
Second-Half
2021
Guidance
Cash
Operating
Costs
($ per ounce
produced)
Full-year
2021
Guidance
Cash
Operating
Costs
($ per ounce
produced)
Fekola $617 $557 $530 - $570 $315 - $355 $405 - $445
Masbate $616 $612 $670 - $710 $630 - $670 $650 - $690
Otjikoto $854 $893 $940 - $980 $330 - $370 $480 - $520
B2Gold
Consolidated $649 $615 $620 - $660 $380 - $420 $480 - $520
Equity interest
in Calibre (1) $864 $929 $920 - $1,020 $920 - $1,020 $920 - $1,020
Total $664 $636 $640 - $680 $400 - $440 $500 - $540
(1) Calibre’s 2021 forecast cash operating costs are assumed to be consistent throughout the second half of 2021.
Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the second quarter and
first half of 2021 were as follows (presented on a 100% basis):
Mine
Q2 2021
Cash
Operating
Costs
($ per ounce
sold)
First-Half
2021
Cash
Operating
Costs
($ per ounce
sold)
First-Half
2021
Guidance
Cash
Operating
Costs
($ per ounce
sold)
Second-Half
2021
Guidance
Cash
Operating
Costs
($ per ounce
sold)
Full-year
2021
Guidance
Cash
Operating
Costs
($ per ounce
sold)
Fekola $606 $541 $530 - $570 $315 - $355 $405 - $445
Masbate $673 $627 $670 - $710 $630 - $670 $650 - $690
Otjikoto $885 $853 $940 - $980 $330 - $370 $480 - $520
B2Gold
Consolidated $661 $606 $620 - $660 $380 - $420 $480 - $520
Equity interest
in Calibre (1) $861 $923 $920 - $1,020 $920 - $1,020 $920 - $1,020
Total $675 $628 $640 - $680 $400 - $440 $500 - $540
(1) Calibre’s 2021 forecast cash operating costs are assumed to be consistent throughout the second half of 2021.
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Mine-by-mine AISC (on a per ounce of gold sold basis) in the second quarter and first half of 2021 were
as follows (presented on a 100% basis):
Mine
Q2 2021
AISC
($ per ounce
sold)
First-Half
2021
AISC
($ per ounce
sold)
First-Half
2021
Guidance
AISC
($ per ounce
sold)
Second-Half
2021
Guidance
AISC
($ per ounce
sold)
Full-year
2021
Guidance
AISC
($ per ounce
sold)
Fekola $854 $811 $850 - $890 $670 - $710 $745 - $785
Masbate $899 $860 $980 - $1,020 $940 - $980 $955 - $995
Otjikoto $1,613 $1,542 $1,600 -
$1,640 $580 - $620 $830 - $870
B2Gold
Consolidated $1,011 $965 $1,040 -
$1,080 $745 - $785 $860 - $900
Equity interest
in Calibre (1) $1,082 $1,090 $1,040 -
$1,140
$1,040 -
$1,140
$1,040 -
$1,140
Total $1,016 $974 $1,040 -
$1,080 $760 - $800 $870 - $910
(1) Calibre’s 2021 forecast AISC are assumed to be consistent throughout the second half of 2021.
Fekola Gold Mine - Mali
The Fekola Mine in Mali continued its strong operational performance through the second quarter of 2021,
producing 113,611 ounces of gold, 3% (3,611 ounces) above budget, as the Fekola processing facilities
continued to outperform following the successful completion of the Fekola mill expansion in September
2020. In the second quarter of 2021, Fekola’s mill throughput was a quarterly record of 2.29 million tonnes,
16% above budget and 47% higher than the second quarter of 2020. The higher than budgeted mill
throughput was due to favourable ore fragmentation and hardness, as well as optimization of the grinding
circuit, partially offset by mill feed grade which was 10% below budget in the second quarter of 2021, as
Fekola’s low-grade stockpiles were used to provide additional unbudgeted mill feed required as a result of
the higher than budgeted processed tonnes. As expected, compared to the second quarter of 2020, gold
production was lower by 2 3% (33,813 ounces) as a result of the higher waste stripping and lower mined
ore grades in the second quarter of 2021 , as Phases 5 and 6 of the Fekola Pit were developed during the
first half of 2021.
For the second quarter of 2021, mill feed grade was 1.65 grams per tonne (“g/t”) compared to budget of
1.84 g/t and 3.11 g/t in the second quarter of 2020; mill throughput was 2.29 million tonnes compared to
budget of 1. 98 million tonnes and 1. 56 million tonnes in the second quarter of 20 20; and gold recovery
averaged 93.2% compared to budget of 94.0% and 94.8% in the second quarter of 2020. Mined ore tonnage
and grade continue to r econcile well with the Fekola resource model, and ore production is expected to
significantly increase in the second half of 2021 when mining reaches the higher-grade zones of the Fekola
Pit.