Avino Silver & Gold Mines Ltd. press release

B2Gold Reports Strong Q1 2022 Results; Total Gold Production of 209,365 oz, 5% Above Budget with Cash Operating Costs and All-In Sustaining Costs Below Budget

2022-05-03

TSX - Toronto Stock Exchange · Silver · Gold · Copper · Canada

Canada NewsWire

VANCOUVER, BC , May 3, 2022 /CNW/ - B2Gold Corp. (TSX: BTO) (NYSE: BTG) (NSX: B2G) ("B2Gold" or the "Company") is pleased to announce its operational and financial results for the first quarter of 2022. The Company previously released its gold production and gold revenue results for the first quarter of 2022. All dollar figures are in United States dollars unless otherwise indicated.

2022 First Quarter Highlights

Total gold production of 209,365 ounces (including 12,892 ounces of attributable production from Calibre Mining Corp. ("Calibre")), 5% (9,760 ounces) above budget, and consolidated gold production of 196,473 ounces from the Company's three operating mines, 4% (8,431 ounces) above budget, with solid performances from all the Company's three mines, with each mine exceeding its budgeted production for the first quarter of 2022 Consolidated gold revenue was $366 million on sales of 195,100 ounces at an average realized price of $1,874 per ounce Total consolidated cash operating costs _(see "Non-IFRS Measures") _of $699 per ounce produced, well-below budget by $94 per ounce produced (12%), and total consolidated all-in sustaining costs ("AISC") _(see "Non-IFRS Measures") _of $1,036 per ounce sold, significantly below budget by $318 per ounce sold (23%) (including estimated attributable results for Calibre) Cash flow provided by operating activities before changes in non-cash working capital was $152 million ( $0.14 per share) compared to $171 million ( $0.16 per share) in the first quarter of 2021; cash flow provided by operating activities after changes in non-cash working capital was $107 million ( $0.10 per share) compared to $146 million ( $0.14 per share) in the first quarter of 2021 Net income attributable to the shareholders of the Company of $81 million ( $0.08 per share); adjusted net income _(see "Non-IFRS Measures") _attributable to the shareholders of the Company of $65 million ( $0.06 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 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 announced an updated and significantly increased Mineral Resource estimate for the Anaconda area, comprised of the Menankoto permit and the Bantako North permit, located approximately 20 kilometres from the Fekola Mine; preliminary planning has demonstrated that a pit situated on the Anaconda area could provide saprolite (weathered) material to be trucked to and fed into the Fekola mill commencing as early as late 2022, subject to obtaining all necessary permits and completion of a final mine plan, with the potential to add an average of approximately 80,000 to 100,000 ounces per year to the Fekola mill's annual gold production In April 2022 , the Company acquired the Bakolobi permit in Mali from a local Malian company; covers a 100 km 2 area contiguous to both the Medinandi permit (Fekola Mine) and the Menankoto permit B2Gold's Namibian subsidiary was recognized by the Namibian Revenue Agency as the highest revenue contributor among "Overall Top Contributors" in calendar year 2021

2022 First Quarter Operational Results

Total gold production in the first quarter of 2022 was 209,365 ounces (including 12,892 ounces of attributable production from Calibre), above budget by 5% (9,760 ounces), and consolidated gold production from the Company's three operating mines was 196,473 ounces, above budget by 4% (8,431 ounces), with solid performances from the Company's three mines, with each mine exceeding its budgeted production for the first quarter of 2022 (see "Operations" section below). Due to the timing of higher-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. As expected, compared to the first quarter of 2021, total consolidated gold production was lower by 5% (11,279 ounces), due to the planned significant waste stripping campaign and lower mined ore tonnage at the Fekola Mine in the first quarter of 2022, as Phase 6 of the Fekola Pit continues to be developed in the first half of 2022.

For the first quarter of 2022, total consolidated cash operating costs (including estimated attributable results for Calibre) were $699 per ounce produced ( $656 per ounce sold), well-below budget by $94 per ounce produced (12%), and consolidated cash operating costs from the Company's three operating mines were $676 per ounce produced ( $630 per ounce sold), well-below budget by $103 per ounce produced (13%). These favourable budget variances were attributable to higher than budgeted gold production, lower than budgeted stripping costs and lower than budgeted realized fuel prices at the Fekola Mine, which were partially offset by higher than budgeted fuel prices at the Masbate and Otjikoto mines. As expected, total consolidated cash operating costs were higher in the first quarter of 2022 compared to $609 per ounce produced ( $582 per ounce sold) in the first quarter of 2021, and consolidated cash operating costs were higher in the first quarter of 2022 compared to $581 per ounce produced ( $552 per ounce sold) in the first quarter of 2021, mainly as a result of the planned lower gold production and higher costs for fuel and other consumables.

For the first quarter of 2022, total consolidated AISC (including estimated attributable results for Calibre) were $1,036 per ounce sold (Q1 2021 - $932 per ounce sold), significantly below budget by $318 per ounce sold (23%), and consolidated AISC from the Company's three operating mines were $1,028 per ounce sold (Q1 2021 - $919 per ounce sold), significantly below budget by $339 per ounce (25%). These favourable budget variances were attributable to lower than budgeted cash operating costs, higher than budgeted gold ounces sold and lower than budgeted sustaining capital expenditures ( $33 million ), which is expected to be incurred later in 2022.

For full-year 2022, the Company's total gold production is forecast to be between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre), with total consolidated cash operating costs forecast to be between $620 and $660 per ounce and total consolidated AISC forecast to be between $1,010 and $1,050 per ounce. Notwithstanding the ongoing sanctions on Mali announced by the Economic Community of West African States ("ECOWAS") on January 9, 2022 , including closure of a number of the borders with Mali , the Fekola Mine continues to operate at full capacity and the Company expects to meet its 2022 production guidance for the Fekola Mine. 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 gold production is forecast to be between 390,000 and 410,000 ounces, which is expected to increase significantly to between 560,000 and 590,000 ounces during the second half of 2022. Based mainly on the weighting of production and timing of stripping, consolidated guidance ranges for cash operating costs are expected to be between $760 and $800 per ounce in the first half of 2022, before significantly improving to between $490 and $530 per ounce during the second half of 2022. In addition, consolidated guidance ranges for AISC are expected to be between $1,250 and $1,290 per ounce in the first half of 2022 before significantly improving to between $820 and $860 per ounce during the second half of 2022.

As previously disclosed, the Company's operations continue to be impacted by global cost inflation. However, despite these ongoing cost pressures, the draw downs of existing inventories, proactive management and the revised sequencing of some capital costs means that consolidated cash operating costs and AISC in the first quarter of 2022 were lower than budget. The Company will continue to closely monitor the levels of cost inflation over the remainder of 2022. B2Gold's projects and operations continue to target long-term cash flow and value at industry leading costs per ounce of gold produced.

2022 First Quarter Financial Results

For the first quarter of 2022, consolidated gold revenue was $366 million on sales of 195,100 ounces at an average realized gold price of $1,874 per ounce, compared to $362 million on sales of 202,330 ounces at an average realized gold price of $1,791 per ounce in the first quarter of 2021. The slight increase in gold revenue of 1% ( $4 million ) was 5% attributable to the increase in the average realized gold price, offset by a 4% impact from the decrease in gold ounces sold (mainly due to the lower gold production).

For the first quarter of 2022, cash flow provided by operating activities before changes in non-cash working capital was $152 million ( $0.14 per share) compared to $171 million ( $0.16 per share) in the first quarter of 2021; cash flow provided by operating activities after changes in non-cash working capital was $107 million ( $0.10 per share) compared to $146 million ( $0.14 per share) in the first quarter of 2021. Cash flow provided by operating activities after changes in non-cash working capital decreased by $39 million compared to the first quarter of 2021, mainly due to higher production costs of $11 million and higher non-cash working capital outflows in the first quarter of 2022, most significantly for current income taxes and the timing of value-added tax receivables ("VAT"). Cash income tax payments in the first quarter of 2022 totaled $59 million (Q1 2021 - $21 million ), including approximately $15 million related to 2021 outstanding tax liability obligations.

Based on current assumptions, the Company expects to generate consolidated cashflows from operating activities of approximately $625 million for full-year 2022, expected to be significantly weighted to the second half of 2022. The benefit of higher gold prices realized in the first quarter of 2022 is expected to be offset by the impacts of cost inflation and delays in the recovery of VAT receivables. In addition, based on current assumptions, the Company is forecasting to make total cash income and withholding tax payments (including priority dividend payments) for full-year 2022 of approximately $290 million .

Net income for the first quarter of 2022 was $91 million compared to $99 million for the first quarter of 2021. Net income attributable to the shareholders of the Company was $81 million ( $0.08 per share) compared to $92 million ( $0.09 per share) for the first quarter of 2021. Adjusted net income attributable to the shareholders of the Company _(see "Non-IFRS Measures") _was $65 million ( $0.06 per share) compared to adjusted net income of $97 million ( $0.09 per share) for the first quarter of 2021.

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At March 31, 2022 , the Company had cash and cash equivalents of $649 million ( December 31, 2021 - $673 million ) and working capital (defined as current assets less assets classified as held for sale and current liabilities) of $843 million ( December 31, 2021 - $802 million ). In addition, the Company's $600 million Revolving Credit Facility ("RCF") remains fully undrawn and available.

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), paid on March 17, 2022 to shareholders of record as of March 9, 2022 .

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 common share), one of the highest dividend yields in the gold sector. The declaration and payment of future quarterly dividends remains at the discretion of the Board and will depend on the Company's financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

Operations

Mine-by-mine gold production in the first quarter of 2022 (including the Company's estimated 25% attributable share of Calibre's production) was as follows:

| Mine | Q1 2022

Gold Production

(ounces) | First-Half 2022

Forecast

Gold Production

(ounces) | Second-Half 2022 Forecast

Gold Production

(ounces) | Full-year 2022 Forecast

Gold Production

(ounces) | | Fekola | 101,648 | 220,000 - 230,000 | 350,000 - 370,000 | 570,000 - 600,000 | | Masbate | 59,764 | 105,000 - 110,000 | 100,000 - 105,000 | 205,000 - 215,000 | | Otjikoto | 35,061 | 65,000 - 70,000 | 110,000 - 115,000 | 175,000 - 185,000 | | _B2Gold Consolidated (1) _ | 196,473 | 390,000 –410,000 | 560,000 – 590,000 | 950,000 – 1,000,000 | | | | | | | | _Equity interest in Calibre (2) _ | 12,892 | 20,000 - 25,000 | 20,000 - 25,000 | 40,000 - 50,000 | | | | | | | | Total | 209,365 | 410,000 – 435,000 | 580,000 – 615,000 | 990,000 – 1,050,000 |

| (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 25% indirect share of Calibre's operations. B2Gold applies the equity method of accounting for its 25% ownership interest in Calibre. |

Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced basis) in the first quarter of 2022 were as follows (presented on a 100% basis):

| Mine | Q1 2022

Cash Operating Costs

($ per ounce produced) | First-Half 2022

Forecast

Cash Operating Costs

($ per ounce produced) | Second-Half 2022

Forecast

Cash Operating Costs

($ per ounce produced) | Full-year 2022 Forecast

Cash Operating Costs

($ per ounce produced) | | Fekola | $624 | $720 - $760 | $380 - $420 | $510 - $550 | | Masbate | $710 | $730 - $770 | $760 - $800 | $740 - $780 | | Otjikoto | $770 | $960 - $1,000 | $620 - $660 | $740 - $780 | | _B2Gold Consolidated _ | $676 | $760 - $800 | $490 - $530 | $600 - $640 | | | | | | | | _Equity interest in Calibre (1) _ | $1,054 | $970 - $1,070 | $970 - $1,070 | $970 - $1,070 | | | | | | | | Total | $699 | $780 - $820 | $510 - $550 | $620 - $660 |

| (1) Calibre's 2022 forecast cash operating costs are assumed to be consistent throughout 2022. |

Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the first quarter of 2022 were as follows (presented on a 100% basis):

| Mine | Q1 2022

Cash Operating Costs

($ per ounce sold) | First-Half 2022

Forecast

Cash Operating Costs

($ per ounce sold) | Second-Half 2022

Forecast

Cash Operating Costs

($ per ounce sold) | Full-year 2022 Forecast

Cash Operating Costs

($ per ounce sold) | | Fekola | $583 | $720 - $760 | $380 - $420 | $510 - $550 | | Masbate | $785 | $730 - $770 | $760 - $800 | $740 - $780 | | Otjikoto | $590 | $960 - $1,000 | $620 - $660 | $740 - $780 | | B2Gold Consolidated | $630 | $760 - $800 | $490 - $530 | $600 - $640 | | | | | | | | _Equity interest in Calibre (1) _ | $1,047 | $970 - $1,070 | $970 - $1,070 | $970 - $1,070 | | | | | | | | Total | $656 | $780 - $820 | $510 - $550 | $620 - $660 |

| (1) Calibre's 2022 forecast cash operating costs are assumed to be consistent throughout 2022. |

Mine-by-mine AISC (on a per ounce of gold sold basis) in the first quarter of 2022 were as follows (presented on a 100% basis):

| Mine | Q1 2022

Forecast

AISC

($ per ounce sold) | First-Half 2022

Forecast

AISC

($ per ounce sold) | Second-Half 2022

Forecast

AISC

($ per ounce sold) | Full-year 2022 Forecast

AISC

($ per ounce sold) | | Fekola | $987 | $1,140 - $1,180 | $660 - $700 | $840 - $880 | | Masbate | $1,022 | $1,120 - $1,160 | $1,020 - $1,060 | $1,070 - $1,110 | | Otjikoto | $878 | $1,460 - $1,500 | $930 - $970 | $1,120 - $1,160 | | B2Gold Consolidated | $1,028 | $1,250 - $1,290 | $820 - $860 | $1,000 - $1,040 | | | | | | | | _Equity interest in Calibre (1) _ | $1,155 | $1,100 - $1,200 | $1,100 - $1,200 | $1,100 - $1,200 | | | | | | | | Total | $1,036 | $1,240 - $1,280 | $830 - $870 | $1,010 - $1,050 |

| (1) Calibre's 2022 forecast AISC are assumed to be consistent throughout 2022. |

Fekola Gold Mine - Mali

The Fekola Mine in Mali had a successful start to the year with first quarter of 2022 gold production of 101,648 ounces, slightly above budget by 1% (917 ounces), as higher than budgeted processed grade (6%) offset lower than budgeted processed tonnes (5%) based on a reduction in saprolite processed. As a precautionary measure to hedge against potential supply chain problems arising from ECOWAS sanctions, the Fekola Mine proactively prioritized the processing of high-grade fresh ore to reduce reagent consumption and ensure that sufficient reagents remained available to process higher-grade ore to meet budgeted gold production (which resulted in lower than budgeted throughput for the first quarter of 2022). Although the sanctions continue, the situation has normalized as regular imports of reagents were received by Fekola in February and March 2022 . As a result, saprolite ore was reintroduced back into the Fekola mill feed blend at the end of February 2022 , and the processing of saprolite ore resumed as planned and is ongoing. Fekola's gold production is expected to be significantly weighted to the second half of 2022 when mining reaches the higher-grade portion of Phase 6 of the Fekola Pit and Cardinal operations are at full capacity. As expected, compared to the first quarter of 2021, Fekola's gold production was lower by 19% (23,440 ounces), due to planned significant waste stripping and lower mined ore tonnage, as Phase 6 of the Fekola Pit continues to be developed in the first half of 2022.

For the first quarter of 2022, mill feed grade was 1.54 grams per tonne ("g/t") compared to budget of 1.45 g/t and 1.99 g/t in the first quarter of 2021; mill throughput was 2.20 million tonnes compared to budget of 2.31 million tonnes and 2.07 million tonnes in the first quarter of 2021; and gold recovery averaged 93.3% compared to budget of 93.5% and 94.4% in the first quarter of 2021. For the first quarter of 2022, as described above, processed grade was above budget while processed tonnes were below budget mainly due to the brief temporary suspension of processing saprolite ore, offset by the processing of higher-grade ore, in January and February 2022 . Processed grade was lower compared to the first quarter of 2021 due to the planned significant waste stripping campaign in the first quarter of 2022.

For the first quarter of 2022, Fekola's cash operating costs were $624 per ounce produced ( $583 per ounce sold), significantly below budget by $157 per ounce produced (20%), mainly as a result of lower than budgeted mining, processing and site general costs. These favourable cost variances were mainly attributable to lower than budgeted fuel prices realized in the first quarter of 2022 (as fuel prices are set in advance by the State and therefore subject to timing delays between market fuel price increases and those experienced at the Fekola Mine) and below budgeted volumes of fuel and other consumables utilized due to lower overall tonnes mined and processed compared to budget. Mined tonnes were lower than budget due to a temporary change in mine sequencing to accommodate the temporary change in saprolite processing as discussed above. Over 20% of the power generated in first quarter of 2022 was solar, resulting in over 3.5 million litres of fuel savings and a reduction of over 11,000 tonnes of carbon emissions in the first quarter of 2022. As expected, Fekola's cash operating costs were higher in the first quarter of 2022 compared to $503 per ounce produced ( $479 per ounce sold) in the first quarter of 2021, mainly as a result of the planned lower gold production, higher fuel and other consumable costs and increased mining costs from operating deeper in the Fekola Pit.