B2Gold Reports Strong Q3 2020 Results; Quarterly and Year-to-date Records for Gold Revenues and Operating Cash Flows; Cash Operating Costs and AISC Lower than Budget
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News Release
B2Gold Reports Strong Q3 2020 Results;
Quarterly and Year-to-date Records for Gold Revenues and Operating Cash Flows;
Cash Operating Costs and AISC Lower than Budget
Vancouver, November 3, 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 third
quarter and first nine months of 2020. The Company previously released its gold production and gold
revenue results for the third quarter and first nine months of 2020. All dollar figures are in United States
dollars unless otherwise indicated.
2020 Third Quarter Highlights
• Consolidated gold production of 248,733 ounces from the Company’s three operating mines , above
budget by 1% (2,929 ounces) and a significant increase of 17% (35,455 ounces) over the third quarter
of 2019 (excluding discontinued operations of El Limon and La Libertad)
• Total gold production of 263,813 ounces (including 15,080 ounces of attributable production from
Calibre Mining Corp. (“Calibre”))
• Record quarterly consolidated gold revenue of $487 million, a significant increase of $176 million
(57%) over the third quarter of 2019 (excluding discontinued operations)
• Record quarterly consolidated cash flow provided by operating activities from the Company’s three
operating mines of $301 million, a significant increase of $133 million (79%) over the third quarter of
2019
• Consolidated cash operating costs (see “Non -IFRS Measures”) of $411 per ounce produced, below
budget by $ 17 per ounce ( 4%), and consolidated all -in sustaining costs (“AISC”) (see “Non -IFRS
Measures”) of $766 per ounce sold, below budget by $31 per ounce ( 4%) (excluding estimated
attributable results for Calibre)
• Net income of $277 million (including a net impairment reversal for the Masbate Mine of $122 million);
net income attributable to the shareholders of the Company of $263 million ($0.25 per share); adjusted
net income (see “Non -IFRS Measures”) attributable to the shareholders of the Company of $ 161
million ($0.15 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 , extending the number of
days without a n LTI to 255 days for Fekola, 684 days for Masbate and 918 days for Otjikoto as at
September 30, 2020
• On August 5, 2020, the Company announced a 100% increase of its quarterly dividend to $0.04 per
share (or an expected $0.16 per share on an annualized basis), which was reflected in the third quarter
dividend paid on September 30, 2020
• On September 10, 2020, the Company announced the successful commissioning of the Fekola mill
expansion to 7.5 million tonnes per annum (“Mtpa”) (an increase of 1.5 Mtpa from an assumed base
rate of 6 Mtpa), ahead of the scheduled completion date of September 30, 2020; the Fekola mill has the
potential to run above the annualized throughput rate of 7.5 Mtpa and analysis is currently underway
to determine the optimum throughput rate
• B2Gold maintains a strong financial position and liquidity; during the third quarter of 2020, the
Company fully repaid the outstanding Revolving Credit Facility (“RCF”) balance of $425 million with
the full amount of the $600 million RCF now undrawn and available
2020 First Nine Months Highlights
• Record year-to-date consolidated gold production from the Company’s three operating mines of
738,939 ounces, well above budget by 4% (26,412 ounces) and a significant increase of 19% (116,229
ounces) over the first nine months of 2019 (excluding discontinued operations)
• Total gold production of 770,268 ounces (including 31,329 ounces of attributable production from
Calibre)
• Record year-to-date consolidated gold revenue of $ 1.3 billion, a significant increase of $ 467 million
(56%) over the first nine months of 2019 (excluding discontinued operations)
• Record year-to-date consolidated cash flow provided by operating activities of $755 million, a
significant increase of $408 million (118%) over the first nine months of 2019
• Consolidated cash operating costs of $388 per ounce produced, well below budget by $33 per ounce
(8%), and consolidated AISC of $726 per ounce sold, well below budget by $77 per ounce (10%)
(excluding estimated attributable results for Calibre)
• Net income of $498 million (including a net impairment reversal for the Masbate Mine of $122
million); net income attributable to the shareholders of the Company of $460 million ($0.44 per
share); adjusted net income attributable to the shareholders of the Company of $368 million ($0.35
per share)
• For full-year 2020, the Company forecasts total consolidated gold production to come in towards the
midpoint of its guidance range of between 1,000,000 and 1,055,000 ounces, wit h total consolidated
cash operating costs expected to be at or below the low end of its guidance range of between $415 and
$455 per ounce and total consolidated AISC to be at the lower end of its guidance range of between
$780 and $820 per ounce
• 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 continues to address the COVID-19 pandemic and minimize its potential impact at B2Gold's
operations. B2Gold places the safety and well -being of its workforce and all stakeholders as the highest
priority and continues to encourage input from all its stakeholders as the situation evolves . The Company
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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, contractors, suppliers and
surrounding communities where the Company works while continuing to operate. The Company is
continually updating these plan and response measures 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 safe operation of its mines.
2020 Third Quarter and First Nine Months Operational Results and Development
Consolidated gold production from the Company’s three operating mines in the third quarter of 2020 was
248,733 ounces, above budget by 1 % (2,929 ounces) and a significant increase of 1 7% (35,455 ounces)
over the third quarter of 2019 (excluding discontinued operations) with solid performances from all of the
Company’s operations. The significant increase in gold production over the third quarter of 2019 was driven
by the Fekola Mine in Mali, which continued its very strong operational performance with gold production
of 152,535 ounces, above budget by 2% (2,535 ounces), and 36% (40,214 ounces) higher compared to the
third quarter of 2019. Fekola’s significant increase in gold production over the third quarter of 2019 was
mainly due to the expansion of the Fekola mining fleet and optimiz ation 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 third quarter of 2020, producing
42,591 ounces of gold, 2% (985 ounces) above budget. The Masbate Mine in the Philippines continued to
perform well through the third quarter of 2020 despite a 6 -day mill shutdown following an earthquake on
August 18, 2020, producing 53,60 7 ounces of gold, substantially in-line with budget (of 54,198 ounces),
and 4% higher (2,061 ounces) compared to the third quarter of 2019. Including attributable ounces from
Calibre (15,080 ounces), the Company’s total gold production in the third quarter of 2020 was 263,813
ounces.
For the third quarter of 2020, consolidated cash operating costs were $411 per ounce produced ($414 per
ounce sold), below budget by $17 (4%) per ounce and well below the third quarter of 2019 by $32 (7%)
per ounce (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 $435 per ounce produced ($437 per ounce sold).
For the third quarter of 2020, consolidated AISC were $766 per ounce sold, below budget by $31 per ounce
(4%) and slightly above the third quarter of 2019 (1%) (excluding discontinued operations). The favourable
budget variance refl ected lower -than-budgeted cash operating costs , higher-than-budgeted gold ounces
sold, lower -than-budgeted general and administrative costs and lower -than-budgeted sustaining capital
expenditures ($13 million) , partially offset by higher -than-budgeted royalties (as a result of higher gold
prices). The Company expects total sustaining capital expenditures for full-year 2020 to be approximately
$11 million under budget. Including estimated attributable results for Calibre, the Company’s total AISC
for the third quarter of 2020 were $785 per ounce sold.
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Consolidated gold production for the first nine months of 2020 was a year -to-date record 738,939 ounces,
4% (26,412 ounces) above budget and 19% (116,229 ounces) higher than the first nine months of 2019
(excluding discontinued operations). Including attributable ounces from Calibre ( 31,329 ounces), the
Company’s total gold production in the first nine months of 2020 was 770,268 ounces.
For the first nine months of 2020, c onsolidated cash operating costs were $ 388 per ounce produced ($391
per ounce sold), well below budget by $33 (8%) per ounce and significantly lower than the first nine months
of 2019 by $63 (14%) per ounce (excluding discontinued operations) . Including estimated attributable
results for Calibre, the Company’s total cash operating costs were $405 per ounce produced ($409 per ounce
sold).
For the first nine months of 2020, c onsolidated AISC were $726 per ounce sold, well below both budget
by $77 (10%) per ounce and the first nine months of 2019 by $42 (5%) per ounce (excluding discontinued
operations). Including estimated attributable results for Calibre, the Company’s total AISC for the first nine
months of 2020 were $740 per ounce sold.
B2Gold remains well positioned for continued strong operational and financial performance in 2020. For
full-year 2020, the Company forecasts total consolidated gold production (including attributable ounces
from Calibre) to come in towards the midpoint of its production guidance range of between 1,000,000 and
1,055,000 ounces. Consolidated cash costs are expected to remain low in 2020, and the Company expects
to be at or below the low end of its guidance range for total consolidated cash operating costs of between
$415 and $455 per ounce and at the lower end of its guidance range for total consolidated AISC of between
$780 and $820 per ounce.
The Company’s expansion and development projects also progressed well through the third quarter of 2020:
• At Fekola, on September 10, 2020, the Company announced the successful commissioning of the
Fekola mill expansion to 7.5 Mtpa (an increase of 1.5 Mtpa from an assumed base rate of 6 Mtpa),
approximately one month ahead of the scheduled completion date of September 30, 2020. The
Fekola mill has the potential to run above the annualized throughput rate of 7.5 Mtpa and analysis
is currently underway to d etermine the optimum throughput rate. Remobilization of the Fekola
solar plant construction group began in mid-September 2020 (following a temporary suspension of
construction activities in April 2020 due to COVID-19) and will continue to ramp up as camp space
becomes available. The target date for completion of the solar plant is the end of the first quarter
of 2021 but has the potential to be delayed by several months as COVID restrictions are limiting
the available workforce and site support.
• At Otjikoto, development of the Wolfshag underground mine continues to progress on schedule. In
the third quarter of 2020, the mining contractor was mobilized, and development of the portal and
primary underground ramp has now commenced. S tope ore production is expected to commence
in early 2022, in-line with original estimates.
• At the Gramalote P roject, feasibility work continued as planned from the recommencement of
drilling on May 11, 2020, with infill resource drilling completed on August 21, 2020. During the
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third quarter of 2020, work continued to advance for infrastructure design, process plant design, pit
design and social initiatives. Resource modelling is anticipated to be completed in November 2020
at which time the final phase of the Gramalote Feasibili ty Study work will proceed based upon
updated resources. The Gramalote Feasibility Study is expected to be completed in the first quarter
of 2021.
2020 Third Quarter and First Nine Months Financial Results
Consolidated gold revenue in the third quarter of 2020 was a quarterly record of $ 487 million from the
Company’s three operating mines on sales of 2 53,200 ounces at an average price of $1, 924 per ounce,
compared to $311 million on sales of 208,900 ounces at an average price of $1, 488 per ounce in the third
quarter of 2019 (excluding discontinued operations). Compared to the third quarter of 2019, consolidated
gold revenue increased significantly by 57% ($ 176 million), of which 36% related to the increase in the
average realized gold price and 2 1% to the increase in gold ounces sold (mainly due to the higher gold
production).
For the third quarter of 2020, cash flow provided by operating activities was a quarterly record of $301
million compared to $ 168 million in the third quarter of 2019. This significant increase of $133 million
(79%) reflected the significant increase in gold revenue, as a result of higher realized gold prices and sales.
For the third quarter of 2020, net income was $277 million compared to $66 million for the third quarter of
2019. In the third quarter of 2020, the Company identified a higher sustained long-term gold price as an
indicator of impairment reversal for the Masbate Mine resulting in a net impairment reversal of $122 million
(pre-tax $174 million impairment reversal less $52 million deferred tax expense) . Net income attributable
to the shareholders of the Company was $263 million ($0.25 per share) compared to $56 million ($0.05 per
share) for the third quarter of 2019. Adjusted net income attributable to shareholders of the Company was
$161 million ($0.15 per share) compared to $85 million ($0.08 per share) in the third quarter of 2019.
Consolidated gold revenue for the first nine months of 2020 was a year-to-date record of $1.3 billion on
sales of 749,800 ounces at an average price of $1, 746 per ounce, compared to $842 million on sales of
616,000 ounces at an average price of $1,3 67 per ounce in the first nine months of 2019 (excluding
discontinued operations). Compared to the first nine months of 2019, consolidated gold revenue increased
significantly by 56% ($467 million), of which 34% related to the increase in the average realized gold price
and 22% to the increase in gold ounces sold.
For the first nine months of 2020, cash flow provided by operating activities was a year -to-date record of
$755 million, a significant increase of $408 million (118%) compared to the first nine months of 2019, as
a result of higher realized gold prices and sales.
For the first nine months of 2020, net income was $498 million compared to $133 million for the first nine
months of 2019. Net income attributable to the shareholders of the Company was $460 million ($0.44 per
share) compared to $116 million ($0.11 per share) for the first nine months of 2019. Adjusted net income
attributable to the shareholders of the Company was $368 million ($0.35 per share) compared to adjusted
net income of $154 million ($0.15 per share) for the first nine months of 2019.
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Liquidity and Capital Resources
B2Gold maintains a strong financial position and liquidity. During the third quarter of 2020, the Company
fully repaid the outstanding RCF balance of $425 million with the full amount of the $600 million RCF
now undrawn and available. In addition, at September 30, 2020, the Company had cash and cash equivalents
of $365 million (December 31, 2019 - $141 million) and working capital of $356 million (December 31,
2019 - $242 million).
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 was increased in the third quarter of 2020 by 100% to
$0.04 per common share (or an annual ized rate of $0.16 per common share), which was reflected in the
third quarter dividend paid on September 30, 2020.
Based on current assumptions, including an average gold price of $1,900 per ounce for the balance of 2020,
the Company expects to generate cashf lows from operating activities of more than $900 million in 2020.
The Company’s ongoing strategy is to continue to maximize profitable production from its mines, grow its
mineral reserves, utilize cash flow to continue the dividend payment, further advance its pipeline of
development and exploration projects and evaluate growth opportunities.
Operations
Mine-by-mine gold production in the third quarter and first nine months of 2020 (including the Company’s
approximate 34% share of Calibre’s production) was as follows:
Mine Q3 2020
Gold Production
(ounces)
First Nine Months 2020
Gold Production
(ounces)
2020
Annual Guidance
Gold Production
(ounces)
Fekola 152,535 463,970 590,000 - 620,000
Masbate 53,607 147,133 200,000 - 210,000
Otjikoto 42,591 127,836 165,000 - 175,000
B2Gold
Consolidated (1) 248,733 738,939 955,000 – 1,005,000
Equity interest in
Calibre (2) 15,080 31,329 45,000 - 50,000 (3)
Total 263,813 770,268 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” - 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 ownership interest
in Calibre.
(3) On June 24, 2020, Calibre provided its revised 2020 production guidance following the temporary suspension of its
Nicaraguan operations due to COVID -19. The Company’s attributable gold production from Calibre is now estimated
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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).
Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced basis) in the third quarter
and first nine months of 2020 were as follows (presented on a 100% basis):
Mine Q3 2020
Cash Operating Costs
($ per ounce produced)
First Nine Months
2020
Cash Operating Costs
($ per ounce produced)
2020
Annual Guidance
Cash Operating Costs
($ per ounce)
Fekola $333 $294 $285 - $325
Masbate $615 $646 $665 - $705
Otjikoto $435 $432 $480 - $520
B2Gold Consolidated $411 $388 $395 - $440
Equity interest in
Calibre $831 $819 $720 - $760
Total $435 $405 $415 - $455
Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the third quarter and
first nine months of 2020 were as follows (presented on a 100% basis):
Mine Q3 2020
Cash Operating Costs
($ per ounce sold)
First Nine Months
2020
Cash Operating Costs
($ per ounce sold)
2020
Annual Guidance
Cash Operating Costs
($ per ounce)
Fekola $341 $299 $285 - $325
Masbate $655 $684 $665 - $705
Otjikoto $423 $419 $480 - $520
B2Gold Consolidated $414 $391 $395 - $440
Equity interest in
Calibre $817 $822 $720 - $760
Total $437 $409 $415 - $455
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Mine-by-mine AISC (on a per ounce of gold sold basis) in the third quarter and first nine months of 2020
were as follows (presented on a 100% basis):
Mine Q3 2020
AISC
($ per ounce sold)
First Nine Months
2020
AISC
($ per ounce sold)
2020
Annual Guidance
AISC
($ per ounce)
Fekola $584 $556 $555 - $595
Masbate $1,072 $1,012 $965 - $1,005
Otjikoto $917 $841 $1,010 - $1,050
B2Gold Consolidated $766 $726 $765 - $805
Equity interest in
Calibre $1,090 $1,090 $1,020 - $1,060
Total $785 $740 $780 - $820
Fekola Gold Mine - Mali
The Fekola Mine in Mali continued its very strong operational performance in the third quarter of 2020
with gold production of 152,535 ounces, above budget by 2% ( 2,535 ounces), as processed grade and
recovery both exceeded budget and which more than offset lower-than-budgeted throughput in the quarter
due to additional downtime for planned mill expansion tie-ins and a full SAG mill reline. Compared to the
third quarter of 2019, gold production was significantly higher by 36% ( 40,214 ounces). Fekola’s
significant increase in gold production over the third 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. As at
September 30, 2020, the Fekola Mine achieved 255 days without an LTI.
For the third quarter of 2020, mill feed grade was 3.22 grams per tonne (“g/t”) compared to budget of 2.93
g/t and 2.16 g/t in the third quarter of 2019; mill throughput was 1.56 million tonnes compared to budget
of 1.70 million tonnes and 1. 70 million tonnes in the third quarter of 2019; and gold recovery ave raged
94.6% compared to budget of 94.0% and 94.1% in the third quarter of 2019.
For the third quarter of 2020, Fekola’s cash operating costs were $333 per ounce produced ($341 per gold
ounce sold), slightly above budget (1%). Compared to the third quarter of 2019, Fekola’s cash operating
costs were lower by $50 per ounce produced (13%), mainly as a result of higher gold production. Fekola’s
AISC for the third quarter of 2020 were $584 per ounce sold, below budget by $20 per ounce ( 3%) and
well below the third quarter of 2019 by $58 per ounce (9%).
For the first nine months of 2020, the Fekola Mine produced 463,970 ounces of gold, well above budget by
5% (22,970 ounces) and significantly higher than the first nine months of 2019 by 38% (127,403 ounces).
Through effective mine planning and a successful stockpiling strategy , Fekola was able to exceed its gold
production budget during the construction of its mill expansion in 2020.
For the first nine months of 2020, Fekola’s cash operating costs were $294 per ounce produced ($299 per
gold ounce sold), below budget by $11 per ounce (4%) and significantly lower than the first nine months