B2Gold Reports Q2 2024 Results and Updated 2024 Guidance

2024-08-08

TSX - Toronto Stock Exchange · Gold · Canada

VANCOUVER, British Columbia, Aug. 08, 2024 (GLOBE NEWSWIRE) -- B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”) announces its operational and financial results for the second quarter of 2024. All dollar figures are in United States dollars unless otherwise indicated.

2024 Second Quarter Highlights

Total gold production of 212,508 ounces : Total gold production in the second quarter of 2024 was 212,508 ounces, including 8,267 ounces of attributable production from Calibre Mining Corp. (“Calibre”). Production at the Fekola Mine in the second quarter of 2024 was below expectations as a result of damage to an excavator and the delay in receiving replacement equipment which impacted equipment availability for the second quarter of 2024, reducing tonnes mined. These equipment availability issues are being addressed and mining rates are expected to improve by the end of the third quarter of 2024.

Total consolidated cash operating costs of $839 per gold ounce produced, at the low end of the annual guidance range : Total consolidated cash operating costs _( _see “Non-IFRS Measures” ) (including estimated attributable results for Calibre) of $839 per gold ounce produced during the second quarter of 2024 with consolidated cash operating costs from the Company’s three operating mines of $808 per gold ounce produced.

Total consolidated all-in sustaining costs of $1,267 per gold ounce sold, below the annual guidance range : Total consolidated all-in sustaining costs (see “Non-IFRS Measures” ) (including estimated attributable results for Calibre) of $1,267 per gold ounce sold for the second quarter of 2024 with consolidated all-in sustaining costs from the Company’s three operating mines of $1,244 per gold ounce sold.

Total gold production for 2024 now expected to be between 800,000 and 870,000 ounces (including 20,000 ounces of attributable production from Calibre): Total gold production for 2024 is expected to be impacted by the delay in mining higher-grade ore from Phase 7 of the Fekola pit due to equipment availability issues, resulting in an expected decrease of approximately 50,000 ounces in Fekola production for full year 2024. Mining and processing of these ounces is now expected in the first half of 2025. Lower anticipated Fekola production is partially offset by increased gold production guidance at Masbate and Otjikoto, by 10,000 ounces combined. In addition, following the sale of a portion of the Company's equity interest in Calibre in June 2024, the Company will stop reporting its share of attributable Calibre production going forward. In 2024, B2Gold now expects total gold production to be between 800,000 and 870,000 ounces (including 20,000 ounces of attributable production from Calibre). The previous 2024 total gold production range of between 860,000 and 940,000 ounces included 40,000 to 50,000 ounces of attributable production from Calibre.

Total consolidated all-in sustaining costs (including attributable results for Calibre) for 2024 now expected to be between $1,420 and $1,480 per ounce: Total consolidated all-in sustaining costs (including attributable results for Calibre) for 2024 are now forecast to be between $1,420 and $1,480 per ounce (original guidance range of between $1,360 and $1,420 per ounce).

Attributable net loss of $0.02 per share; adjusted attributable net income of $0.06 per share : Net loss attributable to the shareholders of the Company in the second quarter of 2024 of $24 million ($0.02 per share), primarily the result of a non-cash impairment of the Fekola Complex; adjusted net income (see “Non-IFRS Measures” ) attributable to the shareholders of the Company of $78 million ($0.06 per share).

Operating cash flow before working capital adjustments of $192 million : Cash flow provided by operating activities before working capital adjustments was $192 million in the second quarter of 2024.

Strong financial position and liquidity : At June 30, 2024, the Company had cash and cash equivalents of $467 million and working capital (defined as current assets less assets classified as held for sale and current liabilities) of $600 million.

Q3 2024 dividend of $0.04 per share declared : On August 8, 2024, B2Gold's Board of Directors declared a cash dividend for the third quarter of 2024 of $0.04 per common share (or an expected $0.16 per share on an annualized basis), payable on September 23, 2024, to shareholders of record as of September 10, 2024.

All planned construction for the first half of 2024 necessary to produce gold at the Goose Project by the end of Q2 2025 now complete and project development remains on schedule: B2Gold successfully completed the 2024 Winter Ice Road (“WIR”) campaign in the second quarter of 2024 and has delivered all necessary items from the Marine Laydown Area (“MLA”) to complete the construction of the Goose Project in the second quarter of 2025. The key construction items completed in the second quarter included the construction of three additional fuel storage tanks at the MLA to increase fuel storage capacity to more than 80 million liters of fuel, which are anticipated to begin to receive fuel in August 2024; the construction of three additional fuel storage tanks at the Goose Project site to increase fuel storage capacity to more than 80 million liters of fuel, of which two of the three tanks have been completed with the third tank expected to be completed in the third quarter of 2024; and the purchase of materials necessary to complete construction and the staging of those materials for shipment to the MLA during the 2024 sealift.

Positive Preliminary Economic Assessment (“PEA” ) results for the Gramalote Project; feasibility work has commenced: On June 18, 2024, the Company released the results of a positive PEA on its 100% owned Gramalote Project located in the Department of Antioquia, Colombia. Highlights of the PEA include a significant production profile with average annual gold production of 185,000 ounces over a 12.5 year project life and strong project economics with an after-tax net present value discounted at 5% (“NPV 5% ”) of $778 million and an after-tax internal rate of return (“IRR”) of 20.6%. B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025.

Initial Inferred Mineral Resource Estimate announced for the Springbok Zone of the Antelope deposit at the Otjikoto Mine: On June 20, 2024, the Company released an initial Inferred Mineral Resource Estimate for the Springbok Zone, the southernmost shoot of the recently discovered Antelope deposit, located approximately three kilometers (“km”) south of the Otjikoto Phase 5 open pit at the Otjikoto Mine in Namibia. The Company determined that the initial Inferred Mineral Resource Estimate was sufficient to initiate a PEA on development of the deposit by underground mining methods, similar to the Wolfshag deposit. Subject to the receipt of a positive PEA and permit, mining of the Springbok Zone, coupled with the exploration potential of the greater Antelope deposit, could begin to contribute to gold production at Otjikoto in 2026.

Partnered with Sandbox Royalties Corp. (“Sandbox”) to create Versamet Royalties Corporation (“Versamet”); B2Gold expected to receive $90 million equity interest in Versamet: On June 5, 2024, B2Gold entered into a purchase and sale agreement to sell a portfolio of 10 precious and base metals royalties to Sandbox, a private returns-focused metals royalty company, for consideration of 153.2 million common shares at a price of C$0.80 per share, representing an equity ownership interest in Versamet of 33.0% valued at approximately $90 million.

Second Quarter 2024 Results

| | Three months ended | Six months ended | | | | | | June 30, | June 30, | | | | | | 2024 | | 2023 | 2024 | 2023 | | | | | | | | | Gold revenue ($ in thousands) | 492,569 | | 470,854 | 954,013 | 944,410 | | Net (loss) income ($ in thousands) | (34,777 ) | | 91,850 | 13,704 | 193,754 | | (Loss) earnings per share – basic _(1) _($/ share) | (0.02 ) | | 0.06 | 0.01 | 0.14 | | (Loss) earnings per share – diluted _(1) _($/ share) | (0.02 ) | | 0.06 | 0.01 | 0.14 | | Cash provided by operating activities ($ thousands) | 62,432 | | 194,983 | 773,159 | 398,806 | | Average realized gold price ($/ ounce) | 2,343 | | 1,969 | 2,202 | 1,934 | | Adjusted net income _(1)(2) _($ in thousands) | 78,449 | | 85,804 | 159,952 | 191,666 | | Adjusted earnings per share _(1)(2) _– basic ($) | 0.06 | | 0.07 | 0.12 | 0.16 | | Consolidated operations results: | | | | | | | Gold sold (ounces) | 210,228 | | 239,100 | 433,206 | 488,250 | | Gold produced (ounces) | 204,241 | | 245,961 | 418,580 | 496,680 | | Production costs ($ in thousands) | 151,299 | | 152,762 | 308,044 | 280,366 | | Cash operating costs _(2) _($/ gold ounce sold) | 720 | | 639 | 711 | 574 | | Cash operating costs _(2) _($/ gold ounce produced) | 808 | | 607 | 762 | 591 | | Total cash costs _(2) _($/ gold ounce sold) | 877 | | 777 | 857 | 714 | | All-in sustaining costs _(2) _($/ gold ounce sold) | 1,244 | | 1,210 | 1,296 | 1,128 | | Operations results including equity investment in Calibre: | | | | | | | Gold sold (ounces) | 218,495 | | 255,897 | 452,850 | 521,189 | | Gold produced (ounces) | 212,508 | | 262,701 | 438,224 | 529,557 | | Production costs ($ in thousands) | 164,520 | | 170,577 | 333,170 | 313,946 | | Cash operating costs _(2) _($/ gold ounce sold) | 753 | | 667 | 736 | 602 | | Cash operating costs _(2) _($/ gold ounce produced) | 839 | | 636 | 785 | 618 | | Total cash costs _(2) _($/ gold ounce sold) | 908 | | 800 | 879 | 738 | | All-in sustaining costs _(2) _($/ gold ounce sold) | 1,267 | | 1,214 | 1,308 | 1,135 |

(1) Attributable to the shareholders of the Company. (2) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At June 30, 2024, the Company had cash and cash equivalents of $467 million (December 31, 2023 - $307 million) and working capital (defined as current assets less assets classified as held for sale and current liabilities) of $600 million (December 31, 2023 - $397 million). At June 30, 2024, the full amount of the Company's $700 million revolving credit facility was undrawn and available.

Third Quarter 2024 Dividend

On August 8, 2024, B2Gold’s Board of Directors (the “Board”) declared a cash dividend for the third quarter of 2024 (the “Q3 2024 Dividend”) of $0.04 per common share (or an expected $0.16 per share on an annualized basis), payable on September 23, 2024, to shareholders of record as of September 10, 2024.

In 2023, the Company implemented a Dividend Reinvestment Plan (“DRIP”). For the purposes of the Q3 2024 Dividend, the Company is pleased to announce that a discount of 3% will be applied to calculate the Average Market Price (as defined in the DRIP) of its common shares issued from treasury. However, the Company may, from time to time, in its discretion, change or eliminate any applicable discount, which would be publicly announced, all in accordance with the terms and conditions of the DRIP. Participation in the DRIP is optional. In order to participate in the DRIP in time for the Q3 2024 Dividend, registered shareholders must deliver a properly completed enrollment form to Computershare Trust Company of Canada by no later than 4:00 p.m. (Toronto time) on September 16, 2024. Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution, or other intermediary through which they hold common shares well in advance of the above date for instructions on how to enroll in the DRIP.

This dividend is designated as an "eligible dividend" for the purposes of the _Income Tax Act _(Canada). Dividends paid 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 B2Gold'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.

For more information regarding the DRIP and enrollment in the DRIP, please refer to the Company's website at https://www.b2gold.com/investors/stock_info/ .

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

The Company has filed a registration statement relating to the DRIP with the U.S. Securities and Exchange Commission that may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at http://www.sec.gov/EDGAR or by contacting the Company using the contact information at the end of this news release.

Operations

Fekola Complex - Mali

| | Three months ended | Six months ended | | | | | June 30, | June 30, | | | | | 2024 | 2023 | 2024 | 2023 | | | | | | | | Gold revenue ($ in thousands) | 270,592 | 281,672 | 526,910 | 595,897 | | Gold sold (ounces) | 115,288 | 142,850 | 239,116 | 307,900 | | Average realized gold price ($/ ounce) | 2,347 | 1,972 | 2,204 | 1,935 | | Tonnes of ore milled | 2,520,377 | 2,324,043 | 4,983,240 | 4,595,934 | | Grade (grams/ tonne) | 1.51 | 2.24 | 1.57 | 2.36 | | Recovery (%) | 92.8 | 91.8 | 92.7 | 91.9 | | Gold production (ounces) | 111,583 | 152,427 | 230,724 | 318,291 | | Production costs ($ in thousands) | 81,481 | 79,245 | 166,586 | 156,906 | | Cash operating costs _(1) _($/ gold ounce sold) | 707 | 555 | 697 | 510 | | Cash operating costs _(1) _($/ gold ounce produced) | 839 | 538 | 766 | 509 | | Total cash costs _(1) _($/ gold ounce sold) | 895 | 721 | 873 | 673 | | All-in sustaining costs _(1) _($/ gold ounce sold) | 1,258 | 1,165 | 1,351 | 1,057 | | Capital expenditures ($ in thousands) | 53,179 | 74,151 | 133,741 | 127,946 | | Exploration ($ in thousands) | 838 | — | 2,140 | 1,706 |

(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.

The Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) produced 111,583 ounces of gold in the second quarter of 2024, slightly below expectations due to the delayed timing of mining of high-grade ore as compared to expectations, resulting in less high-grade ore processed during the second quarter of 2024. For the second quarter of 2024, mill feed grade was 1.51 grams per tonne (“g/t”), mill throughput was 2.52 million tonnes, and gold recovery averaged 92.8%. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability for the second quarter of 2024, reducing tonnes mined. These equipment availability issues are being addressed through the delivery of a new excavator, and mining rates are expected to improve by the end of the third quarter of 2024. The reduction in mining rate capacity experienced in 2024 is anticipated to impact the availability of higher-grade ore from Phase 7 of the Fekola pit during the second half of 2024 resulting in an expected decrease of approximately 50,000 ounces in Fekola production for full year 2024. Mining and processing of these ounces is now expected in the first half of 2025. Ore volumes and grades continue to reconcile well with modeled values.

The Fekola Mine’s cash operating costs (see “Non-IFRS Measures” ) for the second quarter of 2024 were $839 per gold ounce produced ($707 per gold ounce sold). Cash operating costs per gold ounce produced for the second quarter of 2024 were lower than expected as a result of lower fuel costs, higher mill throughput, higher gold recovery and lower mining costs as a result of lower than anticipated mined tonnage due to equipment availability.

All-in sustaining costs (see “Non-IFRS Measures” ) for the second quarter of 2024 were $1,258 per gold ounce sold. All-in sustaining costs were lower than expected as a result of lower than anticipated production costs per gold ounce sold and lower than expected sustaining capital expenditures partially offset by higher gold royalties resulting from a higher than anticipated average realized gold price. The lower sustaining capital expenditures were mainly due to timing of expenditures and are expected to be incurred later in 2024.

Capital expenditures in the second quarter of 2024 totalled $53 million primarily consisting of $13 million for deferred stripping, $9 million for mobile equipment purchases and rebuilds, $9 million for the construction of a new tailings storage facility, $15 million for Fekola underground development, $4 million for solar plant expansion and $2 million for power generation.

As a result of the delay in accessing higher-grade ounces from Phase 7 of the Fekola pit, the Fekola Mine is now expected to produce between 420,000 and 450,000 ounces of gold in 2024 (original guidance of between 470,000 and 500,000 ounces) at cash operating costs of between $870 and $930 per ounce (original guidance of between $835 and $895 per ounce) and all-in sustaining costs of between $1,510 and $1,570 per ounce (original guidance of between $1,420 and $1,480 per ounce).

Fekola Regional Development

The Fekola Complex is comprised of the Fekola Mine (Medinandi permit hosting the Fekola and Cardinal pits and Fekola underground) and Fekola Regional (Anaconda Area (Bantako, Menankoto, and Bakolobi permits) and the Dandoko permit).

The development of Fekola Regional is expected to demonstrate positive economics through the enhancement of the overall production profile and the extension of mine life of the Fekola Complex. Based on B2Gold's preliminary planning, Fekola Regional could provide selective higher-grade saprolite material (average annual grade of up to 2.2 g/t gold) to be trucked approximately 20 km and fed into the Fekola mill at a rate of up to 1.5 million tonnes per annum (“Mtpa”). Trucking of selective higher grade saprolite material from the Anaconda Area to the Fekola mill will increase the ore processed and has the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources.

Receipt of a mining permit for the Fekola Regional licenses remains outstanding. The Company expects to apply for such a permit in the third quarter of 2024 following the finalization of the implementation decree for the new 2023 Mining Code by the State of Mali in July 2024. Throughout the first half of 2024, B2Gold has continued to hold meetings with the representatives of the Government of Mali regarding the 2023 Mining Code and the parties are close to finalizing an agreement that will cover the future operation of the Fekola Complex. The Government of Mali has expressed their desire for B2Gold to rapidly progress the development of Fekola Regional and committed to assisting the Company in such development. Importantly, the haul road from Fekola Regional to the Fekola Mine is operational as construction of the haul roads and mining infrastructure (warehouse, workshop, fuel depot and offices) was completed on schedule in 2023.