B2Gold Reports Strong Q4 and Full-Year 2021 Results, Record Annual Total Gold Production of 1,047,414 Oz Within 2021 Cost Guidance and Generating Strong 2021 Operating Cashflows of $724 M
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News Release
B2Gold Reports Strong Q4 and Full-Year 2021 Results,
Record Annual Total Gold Production of 1,047,414 Oz Within 2021 Cost Guidance and
Generating Strong 2021 Operating Cashflows of $724 M
Vancouver, BC, February 22, 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 fourth
quarter and full-year ending December 31, 2021. The Company previously released its gold production and
gold revenue results for the fourth quarter and full -year 2021, in addition to its production and budget
guidance for 202 2. In 2022, the Company is fore casting total gold production of between 990,000 -
1,050,000 ounces. All dollar figures are in United States dollars unless otherwise indicated.
2021 Full-Year Highlights
• Record annual total gold production of 1,047,414 ounces (including 59,819 ounces of attributable
production from Calibre Mining Corp. (“Calibre”)), marking the thirteenth consecutive year of record
annual total gold production
• Consolidated 2021 gold production from the Company’s three operating mines of 987,595 ounces, near
the top end of its revised guidance range (of between 965,000 – 995,000 ounces) and exceeding the
upper end of its original guidance range (of between 920,000 – 970,000 ounces)
• Annual consolidated gold revenues of $1.76 billion on sales of 981,401 ounces at an average realized
gold price of $1,796 per ounce
• Record annual gold production achieved by both the Masbate Mine of 222,227 ounces and Otjikoto
Mine of 197,573 ounces
• Total cash operating costs (see “Non-IFRS Measures”) (including estimated attributable results for
Calibre) of $535 per ounce produced, within the Company’s guidance range (of between $500 - $540
per ounce), and total all-in sustaining costs (“AISC”) (see “Non-IFRS Measures”) (including estimated
attributable results for Calibre) of $888 per ounce sold, within the Company’s guidance range (of
between $870 - $910 per ounce)
• Consolidated cashflows provided by operating activities from the Company’s three operating mines of
$724 million, significantly exceeding the Company’s last forecast of $650 million as a result of
additional unbudgeted gold shipments and sales of approximately $25 million, lower cash tax payments
of $40 million and the timing of other working capital outflows
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• Net income attributable to the shareholders of the Company of $420 million ($0.40 per share); adjusted
net income (see “Non -IFRS Measures”) attributable to the shareholders of the Company of $384
million ($0.36 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 forecast cash operating costs of
between $620 - $660 per ounce and total consolidated AISC of between $1,010 - $1,050 per ounce
• Based on current assumpti ons, including a gold price of $1,800 per ounce, the Company expects to
generate consolidated cashflows from operating activities of approximately $625 million in 2022,
expected to be significantly weighted to the second half of 2022
• An updated mineral resource estimate is expected to be completed for the Anaconda Area (comprised
of the Menankoto Permit and the Bantako North Permit) in the first quarter of 2022 ; p reliminary
planning by the Company has demonstrated that a pit situated on the Anaconda Area could provide
saprolite material to be trucked to and fed into the Fekola mill commencing in late 2022, subject to
obtaining all necessary permits and completion of a final mine plan
• On February 2, 2022 the Company announced that B2Gold’s Malian subsidia ry had received the new
Menankoto permit, issued by the Government of Mali
2021 Fourth Quarter Highlights
• Total gold production of 304,897 ounces (including 16,048 ounces of attributable production from
Calibre) and consolidated gold production of 288,849 ounces from the Company’s three operating
mines
• Consolidated gold revenues of $526 million on sales of 29 2,350 ounces at an average realized gold
price of $1,800 per ounce
• Record quarterly gold production achieved by the Otjikoto Mine of 78,681 ounces
• Consolidated cashflows provided by operating activities from the Company’s three operating mines of
$266 million
• Total cash operating costs (including estimated attributable results for Calibre) of $4 84 per ounce
produced and total AISC (including estimated attributable results for Calibre) of $860 per ounce sold
• Net income attributable to the shareholders of the Company of $137 million ($0.13 per share); adjusted
net income attributable to the shareholders of the Company of $113 million ($0.11 per share)
• On November 30, 2021, the Company completed the sale of its Kiaka and Toega projects in Burkina
Faso to West African Resources (“WAF”) for a combination of cash, WAF shares and production
royalties
2021 Full-Year and Fourth Quarter Operational Results
Despite the continuing challenges of the COVID -19 pandemic, B2Gold had another remarkable year of
strong operational performance in 2021, with the achievement of B2Gold’s thirteenth consecutive year of
record annual total gold production. The Company’s total gold production for 2021 was an annual record
of 1,047,414 ounces (including 59,819 ounces of attributable production from Calibre) (2020 – 1,040,737
ounces), near the upper end of its revised guidance range (of between 1,015,000 – 1,055,000 ounces) and
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exceeding the upper en d of its original guidance range (of between 970,000 – 1,030,000 ounces).
Consolidated gold production from the Company’s three operating mines was 987,595 ounces (2020 -
995,258 ounces), near the top end of the revised guidance range (of between 965,000 – 995,000 ounces)
and exceeding the upper end of the original guidance range (of between 9 20,000 – 970,000 ounces), with
solid performances from each of the Company’s three mines (see “Operations” section below), including
both the Masbate and Otjikoto mines achiev ing record annual gold production in 2021. In addition, t he
Fekola Mine achieved another strong year in 2021, producing 567,795 ounces of gold, near the upper end
of its revised guidance range (of between 560,000 - 570,000 ounces) and exceeding the upper end of its
original guidance range (of between 530,000 - 560,000 ounces).
For the fourth quarter of 2021, the Company’s total gold production was 304,897 ounces (including 16,048
ounces of attributable production from Calibre) and consolidated gold production from the Company’s
three operating mines was 288,849 ounces, both in-line with budget and 13% higher than the fourth quarter
of 2020 resulting from higher gold production from the Fekola and Otjikoto mines, partially offset by lower
gold production from the Masbate Mine.
For full-year 2021, t otal cash operating costs (including estimated attributable results for Calibre) were
$535 per ounce produced ($528 per ounce sold), within the Company’s guidance range (of between $500 -
$540 per ounce) and $112 per ounce (26%) higher than 2020 , and consolidated cash operating costs from
the Company’s three operating mines were $511 per ounce produced ($503 per ounce sold) , within the
Company’s guidance range (of between $ 480 - $520 per ounce) and $105 per ounce (26%) higher than
2020. Cash operating costs per ounce produced were in-line with budget for 2021, as a result of offsetting
factors, as the impact of the strong operating results from all of the Company ’s operations with abov e
budget gold production was offset by inflation driven higher fuel costs, stronger local currencies and higher
than budgeted processing of lower grade material at the Fekola Mine as low-grade stockpiles were used to
provide additional unbudgeted mill feed required as a result of higher than budgeted processed tonnes.
Compared to 2020, cash operating costs were higher due to higher input costs in 2021 resulting from higher
pre-stripping activities, inflation driven higher fuel costs and higher import duties.
For the fourth quarter of 2021, total cash operating costs (including estimated attributable results for
Calibre) were $484 per ounce produced ($433 per ounce sold), $79 per ounce (20%) higher than budget
and in-line with the fourth quarter of 2020, and consolidated cash operating costs from the Company’s three
operating mines were $460 per ounce produced ($406 per ounce sold), $82 per ounce (22%) higher than
budget and in-line with the fourth quarter of 2020. Consolidated cash operating costs for the fourth quarter
of 2021 were higher than budget resulting from inflation pressures including higher fuel, reagents and
consumables costs and stronger local currencies.
For full-year 2021, total AISC (including estimated attributable results for Calibre) were $888 per ounce
sold, within the Company’s guidance range (of between $870 - $910 per ounce) and $100 per ounce (13%)
higher than 2020, and consolidated AISC from the Company’s three operating mines were $874 per ounce
sold, within the Company’s guidance range (of between $860 - $900 per ounce) and $100 per ounce (13%)
higher than 2020. The consolidated AISC were in-line with budget for 2021, reflecting higher than budgeted
gold ounces sold, higher than budgeted gains on settled fuel der ivatives, partially offset by higher than
budgeted sustaining capital expenditures ($10 million).
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For the fourth quarter of 2021, total AISC (including estimated attributable results for Calibre) were $860
per ounce sold, $82 per ounce ( 11%) higher than budget and $ 66 per ounce ( 7%) lower than the fourth
quarter of 2020, and consolidated AISC from the Company’s three operating mines were $844 per ounce
sold, $81 per ounce ( 11%) higher than budget and $ 73 per ounce ( 8%) lower than the fourth quarter of
2020. The higher than budgeted AISC for the fourth quarter of 2021 reflect the higher than budgeted cash
operating costs and higher than budgeted sustaining capital expenditures, partially offset by higher than
budgeted gold ounces sold and gains on settled fuel derivatives. Higher than budgeted sustaining capital
expenditures in the fourth quarter of 2021 reflected expenditures which were delayed from earlier quarters
of 2021.
For 2022, B2Gold remains well positioned for continued strong operational and financial performance. The
Company’s total gold production is forecast to be between 990,000 - 1,050,000 ounces (including 40,000 -
50,000 attributable ounces projected from Calibre) in 2022, 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. The Company’s consolidated gold production from its three operating mines is forecast
to be between 950,000 - 1,000,000 ounces in 2022, with consolidated cash operating costs forecast to be
between $600 - $640 per ounce and consolidated AISC forecast to be between $1,000 - $1,040 per ounce.
While the Company’s 2022 production guidance does include estimated production from Cardinal, it does
not include the potential upside to increase Fekola’s gold production in 202 2 from trucking material from
the Anaconda area (comprised of the Menankoto Permit and the Bantako North Permit) (see “Operations”
section below for additional discussion ). 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 gol d production is forecast to be between 390,000 -
410,000 ounces, which is expected to increase significantly to between 560,000 - 590,000 ounces during
the second half of 2022. Based mainly on the weighting of production and timing of stripping, consolidated
cash operating costs are expected to be between $760 - $800 per ounce in the first half of 2022, before
significantly improving to between $490 - $530 per ounce during the second half of 2022. In addition,
consolidated AISC are expected to be between $1 ,250 - $1,290 per ounce in the first half of 2022 before
significantly improving to between $820 - $860 per ounce during the second half of 2022.
Operating and capital costs across all of the Company’s operations are forecast to increase in 2022, with
significant impacts from global cost inflation. Consolidated cash operating costs per ounce produced are
forecast to increase by approximately $120 per ounce, or 24% compared to 2021. Of this increase, $71 per
ounce (or 59%), is due to inflation including fue l cost, mechanical components and labor cost increases,
coupled with a stronger foreign exchange rate for the Namibian dollar. The remaining $49 per ounce (41%)
of the increase in consolidated cash operating costs is driven by operational related factors i ncluding the
continued ramp up to full production of the higher strip ratio Cardinal zone at the Fekola Mine,
commencement of operations from the Wolfshag underground mine in the second half of 2022 and deeper
open pits at the Fekola and Otjikoto mines. These impacts are partially offset by higher budgeted gold ounce
production than 2021, led by the Fekola Mine. Consolidated AISC are budgeted to increase by
approximately $150 per ounce, or 18%. Approximately 50% of this increase is due to the inflationary
increases in cash operating costs noted above. The remaining increase is driven by the non -inflationary
factors noted above as well as higher sustaining capital costs to support larger mining fleets and fleet
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maintenance as the open pits continue to grow and new sustaining capital projects including planned tailings
storage facility raises at the Fekola and Masbate mines. The higher sustaining capital is offset partially by
higher budgeted consolidated production, led by the Fekola Mine, and net lower capita lized pre-stripping
costs.
Notwithstanding the ongoing sanctions on Mali announced by the Economic Community of West African
States (“ECOWAS”) on January 9, 2022, including closure of borders with Mali, the Fekola Mine continues
to operate unimpeded and the Company expects to meet its 2022 production guidance for Fekola. The
Fekola Mine appears well-positioned for any potential supply disruptions that might be caused by the border
closures. Fuel supplies are not affected by the sanctions and continue passing through the border with
Senegal and the Company continues to monitor alternative routings to bring in other critical supplies, if
necessary. Gold sales from the Fekola Mine have continued and are expe cted to continue on an ordinary
course basis.
2021 Full-Year and Fourth Quarter Financial Results
For full-year 2021, consolidated gold revenue was $1.76 billion on sales of 981,401 ounces at an average
realized gold price of $1, 796 per ounce, compared to $ 1.79 billion on sales of 1,006,455 ounces at an
average realized gold price of $1,777 per ounce in 2020. The slight decrease in gold revenue of 1% ($0.03
billion) was due to a 2% decrease in gold ounces sold , partially offset by a 1% increase in the average
realized gold price.
For the fourth quarter of 2021, consolidated gold revenue was $526 million on sales of 292,350 ounces at
an average realized gold price of $1,800 per ounce, compared to $480 million on sales of 256,655 ounces
at an average realized gold price of $1,868 per ounce in the fourth quarter of 2020. The increase in gold
revenue of 10% ($46 million) was due to a 14% increase in gold ounces sold (mainly due to the higher gold
production), partially offset by a 4% decrease in the average realized gold price.
For full -year 2021, consolidated cashflows from operating activities was $724 million , significantly
exceeding the Company’s last forecast of $650 million as a result of additional unbudgeted gold shipments
and sales of approximately $25 million, lower cash tax payments of $ 40 million as noted below and the
timing of other working capital outflows. Current income tax payments for 2021 totaled approximately
$340 million (including $ 18 million which was settled by value -added tax offsets) and 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). Current income tax payments for 2021 were approximately $40 million lower than the original
budgeted guidance of $380 million mainly due to $10 million lower than budgeted tax obligations at
Otjikoto and a rollover amount of $20 million for Fekola tax installments which had been budgeted for the
fourth quarter of 2021 but which is now expected to be paid by the second quarter of 2022. Compared to
2020, consolidated cashflows provided by operating activities was $227 million lower, reflecting lower
gold revenues of $27 million, higher production costs of $86 million and higher non-cash working capital
outflows for 2021, most significantly for cu rrent income and other taxes payables and value-added tax
receivables.
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Based on current assumptions, including a gold price of $1,800 per ounce, the Company expects to generate
consolidated cashflows from operating activities of approximately $625 million in 2022, expected to be
significantly weighted to the second half of 20 22. In addition, the Company is forecasting to make total
cash income tax payments in 2022 of approximately $290 million, including $ 71 million related to the
outstanding 2021 current income tax and priority dividend obligations which are included in current income
and other taxes payable at December 31, 2021.
For the fourth quarter of 2021, consolidated cashflows provided by operating activities was $ 266 million
compared to $197 million in the fourth quarter of 2020. The increase over the fourth quarter of 2020 was
mainly due to higher sales volumes (as a result of higher production).
For full -year 2021, net income was $ 461 million compared to $ 672 million for 2020. Net income
attributable to the sh areholders of the Company was $ 420 million ($0.40 per share) compared to $ 628
million ($0.60 per share) for 2020. In the third quarter of 2020, the Company identified a higher sustained
long-term gold price as an indicator of impairment reversal for the Ma sbate Mine resulting in a net
impairment reversal of $122 million (pre -tax $174 million impairment reversal less $52 million deferred
tax expense). Adjusted net income attributable to the shareholders of the Company (see “Non -IFRS
Measures”) was $384 million ($0.36 per share) for 2021 compared to adjusted net income of $515 million
($0.49 per share) for 2020.
Net income for the fourth quarter of 2021 was $153 million compared to $174 million for the fourth quarter
of 2020. Net income attributable to the shareholders of the Company was $137 million ($0.13 per share)
compared to $168 million ($0.16 per share) for the fourth quarter of 2020. Adjusted net income attributable
to the shareholders of the Company was $1 13 million ($0.11 per share) for the fourth quarter of 2021
compared to adjusted net income of $147 million ($0.14 per share) for the fourth quarter of 2020.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. At December 31, 2021, the
Company had cash and cash equivalents of $673 million (December 31, 2020 - $480 million) and working
capital of $ 802 million (December 31, 2020 - $465 million). In addition, the Company’s $600 million
Revolving Credit Facility (“RCF”) 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 a nnualized rate of $0.16 per common share), one of the highest dividend yields in the gold
sector.
On December 16, 2021, the Company entered into a revised RCF agreement with its existing syndicate of
banks. The maximum available for drawdown under the facility remains at $600 million with an accordion
feature, available on the receipt of additional binding commitments, for a further $200 million. The RCF
bears interest on a sliding scale of between LIBOR plus 2.00% to 2.50% based on the Company’s
consolidated net leverage ratio. Commitment fees for the undrawn portion of the facility are also on a sliding
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scale basis of between 0.45% and 0.563%. The term of the RCF is four years, maturing on December 16,
2025.
First Quarter 2022 Dividend
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), payable on March 17,
2022 to shareholders of record as of March 9, 2022.
As part of the long-term strategy to maximize shareholder value, B2Gold expects to declare future quarterly
dividends at the same level. This dividend is designated as an “eligible dividend” for the purposes of the
Income Tax Act (Canada). Dividends p aid by B2Gold to shareholders outside Canada (non-resident
investors) will be subject to Canadian non-resident withholding taxes.
The declaration and payment of future dividends and the amount of any such dividends will be subject to
the determination of the Board, in its sole and absolute discretion, taking into account, among other things,
economic conditions, business performance, financial condition, growth plans, expected capital
requirements, compliance with the B2Golds's constating documents, all applicable laws, including the rules
and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends,
including any agreements entered into with lenders to the Company, and any other factors that the
Board deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at
the intended rate or at all in the future.
Operations
Mine-by-mine gold production in the fourth quarter and full-year 2021 (including the Company’s estimated
33% share of Calibre’s production) was as follows:
Mine
Q4 2021
Gold
Production
(ounces)
Full-Year 2021
Gold
Production
(ounces)
Revised
Full-Year
2021 Guidance
Gold Production
(ounces)
Original
Full-Year
2021 Guidance
Gold Production
(ounces)
Fekola 163,539 567,795 560,000 - 570,000 530,000 - 560,000
Masbate 46,629 222,227 215,000 - 225,000 200,000 - 210,000
Otjikoto 78,681 197,573 190,000 - 200,000 190,000 - 200,000
B2Gold
Consolidated (1) 288,849 987,595 965,000 - 995,000 920,000 - 970,000
Equity interest
in Calibre (2) 16,048 59,819 50,000 - 60,000 50,000 - 60,000
Total 304,897 1,047,414 1,015,000 - 1,055,000 970,000 - 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).
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(2) “Equity interest in Calibre” – For 2021, represents the Company’s approximate 33% indirect share of the operations of
Calibre’s El Limon and La Libertad mines in Nicaragua. On January 12, 2022, the Company’s ownership interest in
Calibre was diluted to 25%, as a result of Calibre’s acquisition of Fiore Gold Ltd. B2Gold applies the equity method of
accounting for its ownership interest in Calibre.
Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced basis) in the fourth quarter
and full-year 2021 were as follows (presented on a 100% basis):
Mine
Q4 2021
Cash Operating Costs
($ per ounce
produced)
Full-Year 2021
Cash Operating Costs
($ per ounce
produced)
Full-Year 2021
Guidance
Cash Operating Costs
($ per ounce
produced)
Fekola $379 $449 $405 - $445
Masbate $952 $682 $650 - $690
Otjikoto $338 $493 $480 - $520
B2Gold Consolidated $460 $511 $480 - $520
Equity interest in Calibre (1) $915 $940 $920 - $1,020
Total $484 $535 $500 - $540
Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the fourth quarter and
full-year 2021 were as follows (presented on a 100% basis):
Mine
Q4 2021
Cash Operating Costs
($ per ounce sold)
Full-Year 2021
Cash Operating Costs
($ per ounce sold)
Full-Year 2021
Guidance
Cash Operating Costs
($ per ounce sold)
Fekola $314 $439 $405 - $445
Masbate $939 $660 $650 - $690
Otjikoto $334 $511 $480 - $520
B2Gold Consolidated $406 $503 $480 - $520
Equity interest in Calibre (1) $915 $937 $920 - $1,020
Total $433 $528 $500 - $540