B2Gold Reports Q3 2024 Results; On Track to Meet Total 2024 Gold Production Revised Guidance; Year-To-Date Cash Operating Costs within Annual Guidance Range and Year-To-Date All-In Sustaining Costs Below Revised Annual Guidance Range

2024-11-06

TSX - Toronto Stock Exchange · Gold · Canada

VANCOUVER, British Columbia, Nov. 06, 2024 (GLOBE NEWSWIRE) -- B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”) announces its operational and financial results for the third quarter of 2024. All dollar figures are in United States dollars unless otherwise indicated.

2024 Third Quarter Highlights

Total gold production of 180,553 ounces : Total gold production in the third quarter of 2024 was 180,553 ounces. At the Fekola Mine, production was lower than expected due to the delayed timing of mining high-grade ore and by lower than anticipated equipment productivity and inclement weather throughout the quarter that reduced the mined volumes of high-grade ore. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability at Fekola, reducing tonnes mined in the first and second quarters of 2024, which affected the availability of higher-grade ore for the third quarter of 2024. Masbate and Otjikoto both continued to outperform expectations in the third quarter.

Total consolidated cash operating costs of $1,061 per gold ounce produced : Total consolidated cash operating costs _( _see “Non-IFRS Measures” ) were $1,061 per gold ounce produced during the third quarter of 2024. Total consolidated cash operating costs of $865 per gold ounce produced for the first nine months of 2024 are at the mid-point of the Company's annual guidance range.

Total consolidated all-in sustaining costs of $1,650 per gold ounce sold : Total consolidated all-in sustaining costs (see “Non-IFRS Measures” ) were $1,650 per gold ounce sold for the third quarter of 2024. Total consolidated all-in sustaining costs of $1,405 per gold ounce sold for the first nine months of 2024 are below the Company’s revised annual guidance range.

Attributable net loss of $0.48 per share; adjusted attributable net income of $0.02 per share : Net loss attributable to the shareholders of the Company in the third quarter of 2024 of $634 million ($0.48 per share), predominantly due to a non-cash impairment charge on the Goose Project as a result of the previously announced construction capital increases (see “Goose Project Development”). Adjusted net income (see “Non-IFRS Measures” ) attributable to the shareholders of the Company was $29 million ($0.02 per share). Adjusted net income attributable to the shareholders of the Company in the third quarter was negatively impacted by one-time tax audit accruals of $30 million related to the agreement between the Company and the State of Mali in connection with the ongoing operation and governance of the Fekola Complex.

Operating cash flow before working capital adjustments of $118 million : Cash flow provided by operating activities before working capital adjustments was $118 million in the third quarter of 2024.

Strong financial position and liquidity : At September 30, 2024, the Company had cash and cash equivalents of $431 million and working capital (defined as current assets less current liabilities) of $419 million.

Q4 2024 dividend of $0.04 per share declared : On November 6, 2024, B2Gold's Board of Directors declared a cash dividend for the fourth quarter of 2024 of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.

Goose Project construction and development remains on schedule for first gold pour in Q2 2025 : All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 cubic meters (“m 3 ”) of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road (“WIR”) campaign to the Marine Laydown Area (“MLA”) from global locations.

Memorandum of Understanding with the State of Mali relating to the Fekola Complex: On September 11, 2024, the Company announced that it had entered into a Memorandum of Understanding (the “MOU Agreement”) with the State of Mali (the “State”) in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine (owned 80% by B2Gold and 20% by the State of Mali) and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase for Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.

Third Quarter 2024 Results

| | Three months ended | Nine months ended | | | | | September 30, | September 30, | | | | | 2024 | 2023 | 2024 | 2023 | | | | | | | | Gold revenue ($ in thousands) | 448,229 | 477,888 | 1,402,242 | 1,422,298 | | Net (loss) income ($ in thousands) | (631,032 ) | (34,770) | (617,328 ) | 158,984 | | (Loss) earnings per share – basic _(1) _($/ share) | (0.48 ) | (0.03) | (0.47 ) | 0.10 | | (Loss) earnings per share – diluted _(1) _($/ share) | (0.48 ) | (0.03) | (0.47 ) | 0.10 | | Cash (used) provided by operating activities ($ thousands) | (16,099 ) | 110,204 | 757,060 | 509,010 | | Average realized gold price ($/ ounce) | 2,483 | 1,920 | 2,285 | 1,929 | | Adjusted net income _(1)(2) _($ in thousands) | 29,157 | 64,840 | 189,109 | 256,506 | | Adjusted earnings per share _(1)(2) _– basic ($) | 0.02 | 0.05 | 0.14 | 0.21 | | Consolidated operations results: | | | | | | Gold sold (ounces) | 180,525 | 248,889 | 613,731 | 737,139 | | Gold produced (ounces) | 180,553 | 225,052 | 599,133 | 721,732 | | Production costs ($ in thousands) | 192,408 | 171,425 | 500,452 | 451,791 | | Cash operating costs _(2) _($/ gold ounce sold) | 1,066 | 689 | 815 | 613 | | Cash operating costs _(2) _($/ gold ounce produced) | 1,061 | 741 | 852 | 638 | | Total cash costs _(2) _($/ gold ounce sold) | 1,248 | 827 | 972 | 752 | | All-in sustaining costs _(2) _($/ gold ounce sold) | 1,650 | 1,273 | 1,400 | 1,177 | | Operations results including equity investment in Calibre: | | | | | | Gold sold (ounces) | 180,525 | 266,616 | 633,375 | 787,805 | | Gold produced (ounces) | 180,553 | 242,838 | 618,777 | 772,395 | | Production costs ($ in thousands) | 192,408 | 188,216 | 525,578 | 502,162 | | Cash operating costs _(2) _($/ gold ounce sold) | 1,066 | 706 | 830 | 637 | | Cash operating costs _(2) _($/ gold ounce produced) | 1,061 | 755 | 865 | 661 | | Total cash costs _(2) _($/ gold ounce sold) | 1,248 | 840 | 984 | 772 | | All-in sustaining costs _(2) _($/ gold ounce sold) | 1,650 | 1,272 | 1,405 | 1,182 |

(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 September 30, 2024, the Company had cash and cash equivalents of $431 million (December 31, 2023 - $307 million) and working capital (defined as current assets less current liabilities) of $419 million (December 31, 2023 - $397 million). During the quarter ended September 30, 2024, the Company drew down $200 million on the Company's $700 million revolving credit facility, leaving $500 million remaining available for future draw downs.

Fourth Quarter 2024 Dividend

On November 6, 2024, B2Gold’s Board of Directors declared a cash dividend for the fourth quarter of 2024 (the “Q4 2024 Dividend”) of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.

In 2023, the Company implemented a Dividend Reinvestment Plan (“DRIP”). For the purposes of the Q4 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 Q4 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 December 5, 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 | Nine months ended | | | | | September 30, | September 30, | | | | | 2024 | 2023 | 2024 | 2023 | | | | | | | | Gold revenue ($ in thousands) | 194,988 | 292,375 | 721,898 | 888,272 | | Gold sold (ounces) | 78,889 | 152,239 | 318,005 | 460,139 | | Average realized gold price ($/ ounce) | 2,472 | 1,921 | 2,270 | 1,930 | | Tonnes of ore milled | 2,466,087 | 2,392,829 | 7,449,327 | 6,988,763 | | Grade (grams/ tonne) | 1.07 | 1.82 | 1.40 | 2.17 | | Recovery (%) | 92.7 | 92.1 | 92.7 | 91.9 | | Gold production (ounces) | 78,207 | 128,942 | 308,931 | 447,233 | | Production costs ($ in thousands) | 109,857 | 93,388 | 276,443 | 250,294 | | Cash operating costs _(1) _($/ gold ounce sold) | 1,393 | 613 | 869 | 544 | | Cash operating costs _(1) _($/ gold ounce produced) | 1,434 | 688 | 935 | 561 | | Total cash costs _(1) _($/ gold ounce sold) | 1,653 | 773 | 1,066 | 706 | | All-in sustaining costs _(1) _($/ gold ounce sold) | 2,287 | 1,261 | 1,583 | 1,125 | | Capital expenditures ($ in thousands) | 64,464 | 83,166 | 198,205 | 211,112 | | Exploration ($ in thousands) | 996 | — | 3,136 | 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 78,207 ounces of gold in the third quarter of 2024, below expectations due to the delayed timing of mining of high-grade ore resulting in less high-grade ore processed during the quarter. For the third quarter of 2024, mill feed grade was 1.07 grams per tonne (“g/t”), mill throughput was 2.47 million tonnes, and gold recovery averaged 92.7%. Lower than anticipated equipment productivity and inclement weather throughout the quarter impacted the mined volumes of high-grade ore during the third quarter of 2024. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability for the first nine months of 2024, reducing tonnes mined during the first and second quarters of 2024, which affected the availability of higher-grade ore of Phase 7 of the Fekola pit resulting in less high-grade ore processed during the third quarter of 2024. The damaged machine has been replaced and the new unit operated for the full third quarter of 2024. The reduction in mining rates experienced in the first nine months of 2024 is expected to continue to impact the availability of higher-grade ore from Phase 7 of the Fekola pit during the fourth quarter of 2024 resulting in an expected decrease in Fekola production as compared to initial production estimates. Mining and processing of these ounces is now expected in the first quarter of 2025. Despite short term variations, overall, ore volumes and grades continue to reconcile relatively well with modelled values.

The Fekola Mine’s cash operating costs (see “Non-IFRS Measures” ) for the third quarter of 2024 were $1,434 per gold ounce produced ($1,393 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were higher than expected as a result of lower than anticipated gold production during the third quarter, partially offset by lower fuel costs, higher mill throughput, higher gold recovery and lower mining costs due to lower than expected mined tonnage.

All-in sustaining costs (see “Non-IFRS Measures” ) for the third quarter of 2024 were $2,287 per gold ounce sold. All-in sustaining costs were higher than expected as a result of higher than anticipated production costs per gold ounce sold, lower than expected gold ounces sold, higher than anticipated sustaining capital expenditures due to the timing of expenditures and higher gold royalties resulting from a higher than anticipated average realized gold price.

Capital expenditures in the third quarter of 2024 totalled $64 million primarily consisting of $12 million for deferred stripping, $10 million for mobile equipment purchases and rebuilds, $7 million for the construction of a new tailings storage facility, $20 million for Fekola underground development and $11 million for solar plant expansion. All solar panels, inverters, transformers and the tracking system have been installed for the solar plant expansion and the solar field was energized on September 29, 2024. Commissioning has continued with final completion of the solar plant expansion expected by the end of November 2024.

As a result of the delay in accessing higher-grade ounces from Phase 7 of the Fekola pit, production from the Fekola Complex is expected to be towards the low end of Fekola's revised guidance range of between 420,000 and 450,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be towards the upper ends of their respective revised guidance ranges of between $870 and $930 per ounce and $1,510 and $1,570 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 kilometers (“km”) and fed into the Fekola mill at a rate of up to 1.5 million tonnes per annum.

On September 11, 2024, the Company announced the MOU Agreement with the State in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase of Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.

Masbate Mine – The Philippines

| | Three months ended | Nine months ended | | | | | September 30, | September 30, | | | | | 2024 | 2023 | 2024 | 2023 | | | | | | | | Gold revenue ($ in thousands) | 120,115 | 97,556 | 328,165 | 265,839 | | Gold sold (ounces) | 47,960 | 50,950 | 142,260 | 137,300 | | Average realized gold price ($/ ounce) | 2,504 | 1,915 | 2,307 | 1,936 | | Tonnes of ore milled | 2,197,112 | 2,155,170 | 6,409,631 | 6,224,572 | | Grade (grams/ tonne) | 0.98 | 1.01 | 0.97 | 0.99 | | Recovery (%) | 72.4 | 73.0 | 72.4 | 73.6 | | Gold production (ounces) | 50,215 | 51,170 | 144,512 | 147,012 | | Production costs ($ in thousands) | 42,697 | 44,056 | 123,070 | 117,219 | | Cash operating costs _(1) _($/ gold ounce sold) | 890 | 865 | 865 | 854 | | Cash operating costs _(1) _($/ gold ounce produced) | 811 | 834 | 839 | 844 | | Total cash costs _(1) _($/ gold ounce sold) | 1,039 | 993 | 1,002 | 979 | | All-in sustaining costs _(1) _($/ gold ounce sold) | 1,167 | 1,124 | 1,174 | 1,152 | | Capital expenditures ($ in thousands) | 5,192 | 5,896 | 20,229 | 20,947 | | Exploration ($ in thousands) | 1,290 | 774 | 3,039 | 2,741 |

The Masbate Mine in the Philippines continued its strong performance with third quarter of 2024 gold production of 50,215 ounces, above expectations due to higher mill throughput and higher than expected mill feed grade. For the third quarter of 2024, mill feed grade was 0.98 g/t, mill throughput was 2.20 million tonnes, and gold recovery averaged 72.4%, lower than expected. Lower gold recovery in the third quarter was a result of mining additional lower recovery high-grade sulphide ore during the third quarter. Actual gold recovery for the third quarter of 2024 remained in line with modeled recovery values for the ore mined.