B2Gold Reports Strong Third Quarter 2017 Gold Production; Completes Mine Construction and First Gold Pour at Fekola More Than Three Months Ahead of Schedule
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News Release
B2Gold Reports Strong Third Quarter 2017 Gold Production;
Completes Mine Construction and First Gold Pour at Fekola
More Than Three Months Ahead of Schedule
Vancouver, October 13, 2017 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announc e its gold production and gold revenue for the third
quarter and first nine months of 2017. All dollar figures are in United States dollars unless otherwise
indicated.
2017 Third Quarter Highlights
Consolidated gold production of 135,628 ounces, including 6,340 ounces of pre-commercial
production from the Fekola Mine, exceeding (original) budget by 2% (or 2,254 ounces) and reforecast
production by 15% (or 17,372 ounces)
Consolidated gold revenue of $154.1 million on sales of 121,597 ounces at an average price of $1,267
per ounce
Otjikoto Mine achieved record quarterly production of 55,151 ounces
Fekola Mine construction completed and processing of ore commenced more than three months ahead
of schedule in September 2017
First gold pour at the Fekola Mine achieved on October 7, 2017
In July 2017, the Masbate operations were presented with the Philippine Department of Environment
and Natural Resources’ (“DENR”) prestigious Saringaya Award for its contribution to environmental
protection, conservation and management in the regions surrounding the Masbate Mine
In July 2017, the Company secured a $500 million upsized corporate revolving credit facility,
representing a $75 million increase from the existing facility
For full-year 2017, the Company is on track to meet the high end of its revised annual consolidated
production guidance range of between 530,000 and 570,000 ounces of gold
2018 outlook provides for dramatic production growth of over 70%, with the planned first full-year of
production from the Fekola Mine, consolidated annual gold production is expected to increase
significantly to between 925,000 and 975,000 ounces with cash operating costs (see “Non-IFRS
Measures”) and all-in sustaining costs (“AISC”) (see “Non-IFRS Measures”) expected to decrease
and be approximately $525 per ounce and $800 per ounce, respectively
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Gold Production
Consolidated gold production in the third quarter of 2017 was 135,628 ounces, in cluding 6,340 ounces of
pre-commercial production from the newly-constructed Fe kola Mine in Mali (attributable to the increase
in its gold in-circuit inventory in September), exceeding (original) budget by 2% (or 2,254 ounces) and
reforecast production by 15% (or 17,372 ounces). The better than budgeted and reforecast consolidated
gold production reflects the continued very strong oper ational performances of both the Masbate Mine in
the Philippines and Otjikoto Mine in Namibia as well as the successful early start-up of the Fekola Mine
in September (see “Operations” section below). Commissioning of the Fekola mill is now ongoing and is
anticipated to ramp-up quickly to commercial producti on by the end of the fourth quarter of 2017. The
Fekola Mine achieved its first gold pour on Octobe r 7, 2017, approximately three months ahead of
schedule.
Consolidated gold production in the first nine m onths of 2017 was 389,812 ounces (YTD 2016 – 409,772
ounces), 3% (or 11,820 ounces) better than (original) budget and 5% (or 17,372 ounces) better than
reforecast production. The Company is on track to m eet the high end of its revised annual consolidated
production guidance range of between 530,000 and 570,000 ounces of gold (original guidance was
545,000 to 595,000 ounces), at cash operating costs of between $610 to $650 per ounce and AISC of
between $940 and $970 per ounce.
Looking forward to 2018, with the planned first fu ll-year of production from the Fekola Mine (based on
current assumptions and updates to the Company’s long- term mine plans), the Company is projecting its
consolidated gold production to increase signifi cantly and to be between 925,000 and 975,000 ounces.
Based on current assumptions, this represents an in crease in annual gold production of over 70% for
B2Gold in 2018. The Fekola Mine is projected to be a large low-cost producer that will result in a
significant reduction in the Company’s forecast cash operating costs per ounce and AISC per ounce. The
Company’s forecast consolidated cash operating costs per ounce and AISC per ounce are expected to
decrease in 2018 (compared to 2017) and be approximately $525 per ounce and $800 per ounce,
respectively.
Gold Revenue
Consolidated gold revenue in the third quarter of 2017 was $154.1 million on sales of 121,597 ounces at
an average price of $1,267 per ounce compared to $193 million on sales of 145,029 ounces at an average
price of $1,331 per ounce in the third quarter of 2016. The 20% (or $38.9 million) decrease in revenue
was mainly attributable to a 16% decrease in gold sales volume, due to the timing of gold shipments and
lower production, and a 5% decrease in the average realized gold price.
Consolidated gold revenue for the first nine m onths of 2017 was $464.7 million on sales of 373,271
ounces at an average price of $1,245 per ounce compar ed to $502.1 million on sales of 396,757 ounces at
an average price of $1,266 per ounce in the first nine months of 2016.
Consolidated gold revenue in the three and nine m onths ended September 30, 2017, included $15 million
and $45 million, respectively, relating to the delivery of gold into the Company’s Prepaid Sales contracts
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(deferred revenue) associated with the Company’s Prepaid Sales transactions entered into in March 2016.
Proceeds from the Prepaid Sales transa ctions, used to fund the Fekola Mine construction, were originally
received in March 2016 and are being recognized in re venue as the underlying Prepaid Sales ounces are
delivered into. During the three and nine months ended September 30, 2 017, 12,908 o unces and 38,724
ounces, respectively, were delivered under these contracts.
Operations
Mine-by-mine gold production in the third quarter and first nine months of 2017 was as follows:
Mine
Q3 2017
Gold
Production
(ounces)
YTD 2017
Gold
Production
(ounces)
2017
Revised
Annual
Production
Guidance
(ounces)
2017
Original
Annual
Production
Guidance
(ounces)
Masbate 46,557 149,049 180,000 – 185,000 175,000 – 185,000
Otjikoto 55,151 139,088 170,000 – 180,000 165,000 – 175,000
La Libertad 16,487 67,641 90,000 – 100,000 110,000 – 120,000
El Limon 11,093 27,694 40,000 – 50,000 50,000 – 60,000
Subtotal 129,288 383, 472 480,000 – 515,000 500,000 – 540,000
Fekola (pre-
commercial) 6,340 6,340 50,000 – 55,000 45,000 – 55,000
B2Gold
Consolidated
135,628 389,812 530,000 – 570,000 545,000 – 595,000
Masbate Gold Mine – Philippines
The Masbate Mine in the Philippines continued to exceed expectations, producing 46,557 ounces of gold
in the third quarter of 2017, 20% (or 7,799 o unces) above both (original) budget and reforecast
production, and comparable with the prior-year qua rter. Gold production exceeded budget and reforecast
production due to better than expected throughput and recoveries mainly driven by significantly higher
than budgeted oxide ore from the Colorado Pit. As mining advances in the Colorado Pit, the trend of more
oxide ore than modelled has continued. The Ma sbate Mine has continued its outstanding safety
performance, achieving two years without a “Lost-Time-Injury” on October 12, 2017.
Mill throughput in the quarter was 1,704,723 tonn es compared to budget of 1,619,060 tonnes and
1,604,176 tonnes in the third quarter of 2016. Mill recoveries averaged 77.4% which was better than
budget of 68.9% and 77.2% in the third quarter of 2016. The average grade processed was 1.10 g/t
compared to budget of 1.08 g/t and 1.20 g/t in the third quarter of 2016. As expected, grades were higher
in the prior-year quarter attributable to the high-g rade ore from the Main Vein Stage 1 Pit, which is no
longer active.
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Year-to-date, gold production at Masbate w as 149,049 ounces (YTD 2016 – 157,591 ounces),
significantly above (original) budget by 12% (or 16, 043 ounces) and 6% (or 7,799 ounces) more than
reforecast production.
For full-year 2017, Masbate’s gold production is on track to meet or exceed the high end of its revised
production guidance range of between 180,000 to 185,0 00 ounces of gold (original guidance was 175,000
to 185,000 ounces), at cash operating costs of between $595 to $635 per ounce and AISC of between
$935 and $975 per ounce.
In September 2017, a new Philippine Environment Secr etary of the DENR (Roy Cimatu) was confirmed.
His appointment has received a positive response from the Philippine mining industry.
The Masbate operations were recently presented with the DENR’s Saringaya Award for its contribution to
environmental protection, conservation and manageme nt in the regions surrounding the Masbate Mine.
The Saringaya Award is considered the DENR’s most prestigious regional environmental award.
Otjikoto Gold Mine – Namibia
The Otjikoto Mine in Namibia produced a quarterly r ecord 55,151 ounces of gold in the third quarter of
2017, 14% (or 6,793 ounces) above bot h (original) budget and reforecast production, and 16% (or 7,587
ounces) higher than the third quarter of 2016. As mi ning advances into the consolidated rock in the
Wolfshag Phase 1 Pit, the amount of high-grade or e tonnage mined from Wolfshag continues to be
significantly higher than modelled. Analysis of the Wo lfshag model is ongoing to determine whether this
positive variance in the amount of high-grade ore to nnage continues throughout the entire Wolfshag
orebody.
The average gold grade processed in the quarter was 1. 99 g/t compared to budget of 1.85 g/t and 1.66 g/t
in the third quarter of 2016. Grade exceeded budget due to the higher amount of high-grade ore being
sourced from Wolfshag which increased the overall av erage mill feed grade at Otjikoto. Mill throughput
for the quarter was 873,516 tonnes compared to budget of 832,784 tonnes and 910,036 tonnes in the third
quarter of 2016. Mill recoveries remained high and av eraged 98.5%, slightly above both budget and the
prior-year quarter.
During the first nine months of 2017, the Otjikoto Mine produced a year-to-date record 139,088 ounces of
gold, 16% (or 19,148 ounces) above (original) budget and 5% (or 6,793 ounces) more than reforecast
production, and 16% (or 19,649 ounces) higher compared to the same period last year.
For full-year 2017, Otjikoto’s gold production is on tr ack to meet or exceed the high end of its revised
production guidance range of between 170,000 to 180,0 00 ounces of gold (original guidance was 165,000
to 175,000 ounces), at cash operating costs of between $480 to $520 per ounce and AISC of between
$725 and $765 per ounce.
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Geotechnical, hydrogeological and design studies for Wolfshag have been completed. These studies,
coupled with an updated resource model, indicate that a larger open pit, which is the Company’s preferred
option, is economically similar to the underground op tion. In addition, the Wolfshag resource remains
open down-plunge which may be exploitable in the future by underground mining.
La Libertad Gold Mine – Nicaragua
La Libertad Mine in Nicaragua produced 16,487 oun ces of gold in the third quarter of 2017 (Q3 2016 –
37,261 ounces), approximately in-line with revised gui dance (but lower than originally budgeted as gold
production at La Libertad was negatively impacted by permitting delays for new mining areas).
As previously released, the Company has changed its planned sequencing for bringing the Jabali Antenna
Pit into the mine plan (originally forecast to enter production in the third quarter of 2017). With strong
support from the Nicaraguan government, the Company is now focused on bringing the San Juan and San
Diego open pits into production in the second half of 2017 ahead of the Jabali Antenna Pit. In September
2017, the San Juan mining permit was received and it is anticipated that the San Diego mining permit will
also be received shortly (following public consu ltation expected in the second half of October 2017).
Mining has already commenced in th e San Juan Pit and is expected to commence in the San Diego Pit
upon receipt of its permit. The Company has also made significant progress in resettlement and permitting
activities at the high-grade Jabali Antenna Pit, and is expecting to receive its permit in time to start
production from the pit in early 2018.
Year-to-date, gold production at La Libert ad was 67,641 ounces (YTD 2016 – 97,266 ounces),
approximately in-line with reforecast but 18,679 ounces lower than (original) budget.
The Company anticipates that gold production will increas e in the fourth quarter of 2017 at La Libertad
with the San Juan and San Diego pits coming into production. For full-year 2017, La Libertad’s
production is expected to be at the lower end of its revised production guidance range of between 90,000
to 100,000 ounces of gold (original guidance was 110,000 to 120,000 ounces), at cash operating costs of
between $795 to $835 per ounce and AISC of between $1,075 and $1,115 per ounce.
El Limon Gold Mine – Nicaragua
El Limon Mine in Nicaragua produced 11,093 ounc es of gold in the third quarter of 2017 (Q3 2016 –
14,185 ounces), in-line with revised guidance and a significant improvement compared to 7,740 ounces
produced in the second quarter of 2017. Throughout th e year, El Limon’s production had been negatively
affected by water pumping issues which had re duced high-grade ore flow from Santa Pancha
Underground. However, with the su ccessful rehabilitation of the Santa Pancha 1 dewatering well at the
beginning of the third quarter, mine output and production grade are now improving.
During the quarter, four Environmental Impact Asse ssments (“EIA”) were presented to the Nicaraguan
government for approval relating to both open pit an d underground mining projects: Mercedes – Aparejo,
Veta Nueva, Santa Emilia South and Mercedes South. The EIA for the Mercedes South Pit has been
approved and the permit process is now advancing to the public consultation phase. Development of this
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pit is anticipated to commence in th e fourth quarter of 2017 and is expect ed to provide an open-pit source
to complement underground operations for the duration of 2018.
Year-to-date, gold production at El Limon was 27,694 ounces (YTD 2016 – 35,476 ounces).
For full-year 2017, El Limon’s gold production is expected to meet its revised production guidance range
of between 40,000 to 50,000 ounces of gold (origi nal guidance was 50,000 to 60,000 ounces), at cash
operating costs of between $815 to $855 per ounce a nd AISC of between $1,415 and $1,455 per ounce.
The Company anticipates gold production from Santa Panc ha 1 to continue to increase and El Limon’s
cash operating costs to decrease in the fourth quarter of 2017.
Fekola Gold Mine – Mali
The Company recently announced that the first gold pour at the Fekola Mine had occurred on October 7,
2017, approximately three months ahead of schedule (see news release dated 10/11/2017).
Commissioning of the mill is ongoing and commercial production is expected by the end of 2017. For
2017, the Company is projecting gold production fr om Fekola of between 50,000 and 55,000 ounces.
2018 is scheduled to be the first full year of gold pr oduction, yielding 400,000 to 410,000 ounces for the
year. Based on current assumptions, this represents an increase in annual gold production of over 70% for
B2Gold in 2018.
B2Gold previously announced on September 25, 2017, that the construction of the mill at Fekola was
completed and the Company had commenced running or e through the system three months ahead of the
original schedule and on budget. Additionally, the Company announced a new Life of Mine (“LoM”) plan
showing increased production and lower cash operating co sts and AISC compared with the original (4
Million tonnes per Annum (“MTPA”)) Optimized Feasibility Study for Fekola’s 5 MTPA mill.
Based on the new LoM plan, the Fekola Mine is pr ojected to produce approximately 400,000 ounces of
gold annually for the first three years at cash opera ting costs of $357 per ounce and AISC of $604 per
ounce. For the first seven years, Fekola is projected to produce approximately 374,000 ounces of gold
annually with cash operating costs of $391 per ounce and AISC of $643 per ounce. Over the initial ten-
year LoM, Fekola is projected to produce an average of 345,000 ounces per annum at cash operating costs
of $428 per ounce and AISC of $664 per ounce.
Exploration and Development Updates
Ongoing Fekola Exploration
Based on exploration to date, B2Gold’s exploration team believes there is significant potential to increase
the mine life of Fekola through further exploratio n drilling. The $15 million 2017 exploration drill
program is ongoing at the Fekola property and regional area. The drilling is focused on testing the
potential extension of Fekola to the north, the minera lization below the Kiwi zone (north of Fekola) and
the mineralized bedrock zones beneath the Anaconda saprolite resource.
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Infill drilling continues to focus on the resources outlined immediately below the Fekola reserve
boundary, immediately to the north of the boundary and the near-surface portion of the Kiwi zone. The
resources identified to date could add up to 900,0 00 ounces to reserves with further infill drilling.
Exploration and infill drilling results are expected to be released in November 2017.
Ongoing El Limon Exploration and Development
In 2017, El Limon’s exploration budget was increase d to $7 million to include 28,600 metres of drilling
(over 157 holes) with a focus on El Limon Vein system . The system comprises of the Pozo Bono, Limon
Sur, Limon Central, Limon North and Tigra-Chaparral zones, most of which were previously partially
mined by both open pit and underground methods. Drilli ng to date has identified a new large good grade
near-surface zone that the Company believes could be exploitable by open-pit mining. This has the
potential to significantly extend the current mine life at El Limon and may support an expansion of El
Limon’s milling and production capacity. In Nove mber 2017, the Company expects to announce the
results of its 2017 drill campaign along with an inferred resource for El Limon Vein system.
In 2017, an initial study was completed regarding th e potential re-processing of the old tailings at El
Limon. Based on survey and historic records, the tailings contain approximately 11 million tonnes with an
estimated gold grade of 0.95 g/t gold and 3.0 g/t s ilver. An ongoing drilling program is underway as part
of a Feasibility Study which will confirm resources and grades, the optimum grind size, capital costs and
final project economics. Based on the initial study co mpleted in 2017, the Company believes that the
project has the potential to produce an average of approximately 23,000 ounces of gold and 76,000
ounces of silver per year for approximately 11 years. Initial study economics indicate a
cash operating cost of approximately $500 per ounce of gold. The concept is to regrind the old tailings to
a much finer grind size, process them through a ne w CIP plant and place the tailings in a new lined
tailings storage facility.
About B2Gold
Headquartered in Vancouver, Canada, B2Gold Corp . is one of the fastest-growing intermediate gold
producers in the world. Founded in 2007, today, B2Gold has five operating mines and numerous
exploration and development projects in various coun tries including Finland, Nicaragua, the Philippines,
Namibia, Mali, Burkina Faso and Colombia.
Based on current assumptions and updates to B2Gold’s current year guidance and long-term mine plans,
the Company is projecting consolidated gold pr oduction in 2017 of between 530,000 and 570,000 ounces
(including estimated pre-commercial production fro m the Fekola Mine of between 50,000 and 55,000
ounces); and in 2018, significantly increasing to be tween 925,000 and 975,000 ounces, with the inclusion
of the anticipated first full-year of commercial production at Fekola.
Qualified Persons
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Peter D. Montano, P.E., the Project Director of B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information rela ted to operations matters contained in this news
release.
Tom Garagan, Senior Vice President of Explorati on of B2Gold, a qualified person under NI 43-101, has
approved the exploration information contained in this news release.
John Rajala, Vice President of Metallurgy of B2Go ld, a qualified person under NI 43-101, has approved
El Limon development information contained in this news release.
Third Quarter 2017 Financial Results – Conference Call Details
B2Gold Corp. will release its third quarter 2017 financial results before the North American markets open
on Wednesday, November 8, 2017.
B2Gold executives will host a confer ence call to discuss the results on Wednesday, November 8, 2017 ,
at 10:00 am PST / 1:00 pm EST . You may access the call by dialing the operator at +1 (647) 788-4919
(local or international) or toll free at +1 (877) 291-4570 prior to the scheduled start time or you may listen
to the call via webcast by clicking http://www.investorcalendar.com/event/21171. A playback version of
the call will be available for one week after the call at +1 416-621-4642 (local or international) or toll free
at +1 800-585-8367 (passcode 1308311).
ON BEHALF OF B2GOLD CORP.
“Clive T. Johnson”
President and Chief Executive Officer
For more information on B2Gold please visit the Company website at www.b2gold.com or contact:
Ian MacLean Katie Bromley
Vice President, Investor Relations Manager, Investor Relations & Public Relations
604-681-8371 604-681-8371
[email protected] [email protected]
The Toronto Stock Exchange and the NYSE American LLC neither approve nor disapprove the information
contained in this news release.
This news release includes certain “forward-looking information” and “forward-looking statements” (collectively
“forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation,
including projections, estimates and other statements regarding future financial and operational performance,
events, production, mine life, revenue, costs, including projected cash operating cost s and AISC and expected
decrease of forecast consolidated cash operating costs and AISC in 2018, capital expenditures, investments,
budgets, ore grades, sources and types of ore, stripping ratios, throughput, cash flows and growth; production
estimates and guidance, including the Company’s projected gold production of between 530,000 to 570,000 ounces
in 2017, projected increase of gold production to between 925,000 and 975,000 ounces in 2018 and project-specific