B2Gold Reports Q3 2022 Results; Full-Year 2022 Total Consolidated Gold Production and Cost Guidance Remains Unchanged; Year-to-Date Operating Costs and All-In Sustaining Costs In Line with Budget despite Lower than Expected Gold Production

2022-11-01

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VANCOUVER, BC , November 1, 2022 /CNW/ - B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the "Company") announces its operational and financial results for the third quarter of 2022. The Company previously released its gold production and gold revenue results for the third quarter of 2022. All dollar figures are in United States dollars unless otherwise indicated.

2022 Third Quarter and Year-to-Date Summary

Total gold production of 227,016 ounces in Q3 2022, expected to increase significantly in Q4 2022 : Lower than expected production at the Fekola and Otjikoto mines in the third quarter of 2022 due to temporary mining sequence changes (see "Operations" discussion). Strong production anticipated in the fourth quarter of 2022 at both operations. At Fekola, ore production from Fekola open-pit Phase 6 has commenced and is forecast to average between 3.4 to 3.5 grams per tonne ("g/t") gold. Over the full fourth quarter of 2022, gold grade mined is anticipated to average over 3.0 g/t gold at Fekola. At Otjikoto, gold production is anticipated to benefit as mining has reached a higher-grade zone in the Otjikoto pit and with stope ore production from the Wolfshag Underground mine.

Total consolidated cash operating costs of $824 per gold ounce sold in Q3 2022, expected to be significantly lower in Q4 2022 : Total consolidated cash operating costs _(see "Non-IFRS Measures") _(including estimated attributable results for Calibre Mining Corp. ("Calibre"), which accounts for approximately 5% of B2Gold's total gold production in 2022) of $824 per gold ounce sold and consolidated cash operating costs from the Company's three operating mines of $810 per gold ounce sold. Year-to-date total consolidated cash operating costs of $760 per gold ounce sold in line with expectations after a strong first half of 2022.

Total consolidated all-in sustaining costs of $1,169 per gold ounce sold in Q3 2022, expected to be significantly lower in Q4 2022 : Total consolidated all-in sustaining costs _(see "Non-IFRS Measures") _(including estimated attributable results for Calibre) of $1,169 per gold ounce sold and consolidated all-in sustaining costs from the Company's three operating mines of $1,154 per gold ounce sold. Year-to-date total consolidated all-in sustaining costs of $1,108 per gold ounce sold is slightly better than expected after a strong first half of 2022. Total consolidated all-in sustaining costs are anticipated to benefit in Q4 2022 from higher grade ore being processed at Fekola and Otjikoto.

Maintain full-year 2022 total gold production and total consolidated cost guidance : Based on the year-to-date cost performance and strong anticipated gold production in Q4 2022, the Company re-affirms full year 2022 total gold production and total consolidated cost guidance. Total gold production is expected to be between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre). Total consolidated cash operating costs are expected to be at the upper end of the Company's original guidance range of between $620 and $660 per gold ounce and total consolidated all-in sustaining costs are expected to within the Company's original guidance range of between $1,010 and $1,050 per gold ounce.

Attributable net loss of $(0.02) per share; adjusted attributable net income of $0.03 per share in Q3 2022 : Net loss attributable to the shareholders of the Company of $(23) million ( $(0.02) per share); adjusted net income _(see "Non-IFRS Measures") _attributable to the shareholders of the Company of $32 million ( $0.03 per share).

Operating cash flow before working capital adjustments of $0.13 per share in Q3 2022 : Cash flow provided by operating activities before working capital adjustments was $139 million ( $0.13 per share) in the third quarter of 2022.

Robust financial position : At September 30, 2022 , the Company had cash and cash equivalents of $549 million and working capital (defined as current assets less assets classified as held for sale and current liabilities) of $725 million .

Q3 2022 dividend of $0.04 per share declared : The Company remains in a strong net positive cash position and paid a third quarter dividend of $0.04 per common share (annualized rate of $0.16 per common share), representing a 5.0% yield as of September 30, 2022 .

Completed acquisition of Oklo Resources Limited ("Oklo") : The Company completed the acquisition of Oklo on September 20, 2022 , providing B2Gold with an additional landholding of 1,405 km 2 covering highly prospective greenstone belts in Mali , including Oklo's flagship Dandoko project (550 km 2 ), located approximately 25 kilometres from each of the Fekola Mine and the Anaconda area.

Fekola Complex study underway to deliver low capital intensity production growth : Commencing a feasibility level engineering study of stand-alone mill and oxide processing facilities at the Anaconda area. The study will be based on processing at least 4 million tonnes per annum ("Mtpa") of saprolite and transitional (oxide) resources, with an option to add fresh rock (sulphide) capabilities in the future. Results of this study are expected in the second quarter of 2023. Conceptual analysis indicates that the combined Fekola and Anaconda processing facilities could have the potential to produce more than 800,000 ounces of gold per year commencing as early as 2026.

Continued investment in near-mine exploration in Mali : The Company is drilling to infill and extend the saprolite resource area and to follow up on the sulphide mineralization at the Anaconda area, including the Mamba and Adder zones, and several other targets below the saprolite mineralization. The good grade and width combinations at the Anaconda area continue to provide a strong indication of the potential for Fekola-style south plunging bodies of sulphide mineralization, which remains open down plunge. Seven drill rigs are currently drilling in the Anaconda area and one drill rig is currently operating on Bakolobi. On the Mamba zone, drill results are particularly significant as they confirm the continuity of high grade sulphide mineralization 110 metres below the limit of the updated Mineral Resource pit boundaries. In the main Anaconda area Mineral Resource pit, drill results demonstrate the potential to add sulphide Mineral Resources beneath the currently defined saprolite resources, where the mineralization remains open at depth.

B2Gold and joint venture partner AngloGold Ashanti Limited ("AngloGold") intend to initiate a joint sales process for Gramalote : B2Gold and partner AngloGold have completed a comprehensive review of the alternatives relating to the Gramalote project and consider that the interests of all stakeholders would be best served by finding a buyer for the project. The partners intend to commence a joint sales process for the Gramalote project in the fourth quarter of 2022.

Third Quarter and Year-to-Date 2022 Results

| | Three months ended | Nine months ended | | | | | September 30, | September 30, | | | | | 2022 | 2021 | 2022 | 2021 | | | | | | | | Gold revenue ($ in thousands) | 392,554 | 510,859 | 1,140,122 | 1,236,151 | | Net (loss) income ($ in thousands) | (21,234) | 134,871 | 110,255 | 307,685 | | (Loss) earnings per share – basic _(1) _($/ share) | (0.02) | 0.12 | 0.09 | 0.27 | | (Loss) earnings per share – diluted _(1) _($/ share) | (0.02) | 0.12 | 0.09 | 0.27 | | Cash provided by operating activities ($ thousands) | 93,118 | 320,283 | 325,307 | 457,821 | | Average realized gold price ($/ ounce) | 1,711 | 1,782 | 1,810 | 1,794 | | Adjusted net income _(1)(2) _($ in thousands) | 31,996 | 122,750 | 142,340 | 272,646 | | Adjusted earnings per share _(1)(2) _– basic ($) | 0.03 | 0.12 | 0.13 | 0.26 | | Excluding equity investment in Calibre: | | | | | | Gold sold (ounces) | 229,400 | 286,650 | 629,800 | 689,051 | | Gold produced (ounces) | 214,903 | 295,723 | 620,234 | 698,746 | | Cash operating costs _(2) _($/ gold ounce sold) | 810 | 456 | 741 | 544 | | Cash operating costs _(2) _($/ gold ounce produced) | 798 | 418 | 749 | 532 | | Total cash costs _(2) _($/ gold ounce sold) | 926 | 572 | 862 | 666 | | All-in sustaining costs _(2) _($/ gold ounce sold) | 1,154 | 777 | 1,100 | 887 | | Including equity investment in Calibre: | | | | | | Gold sold (ounces) | 241,558 | 301,153 | 669,776 | 732,986 | | Gold produced (ounces) | 227,016 | 310,261 | 660,004 | 742,517 | | Cash operating costs _(2) _($/ gold ounce sold) | 824 | 482 | 760 | 568 | | Cash operating costs _(2) _($/ gold ounce produced) | 815 | 445 | 767 | 556 | | Total cash costs _(2) _($/ gold ounce sold) | 939 | 596 | 878 | 687 | | All-in sustaining costs _(2) _($/ gold ounce sold) | 1,169 | 795 | 1,108 | 900 |

| | | (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". |

Operations

Fekola Mine - Mali

| | Three months ended | Nine months ended | | | | | September 30, | September 30, | | | | | 2022 | 2021 | 2022 | 2021 | | | | | | | | Gold revenue ($ in thousands) | 230,023 | 288,306 | 652,361 | 712,302 | | Gold sold (ounces) | 135,150 | 161,550 | 361,800 | 396,750 | | Average realized gold price ($/ ounce) | 1,702 | 1,785 | 1,803 | 1,795 | | Tonnes of ore milled | 2,285,423 | 2,361,042 | 6,906,172 | 6,730,332 | | Grade (grams/ tonne) | 1.90 | 2.30 | 1.72 | 1.98 | | Recovery (%) | 93.1 | 94.8 | 92.9 | 94.2 | | Gold production (ounces) | 129,933 | 165,557 | 354,647 | 404,256 | | Cash operating costs _(1) _($/ gold ounce sold) | 694 | 424 | 667 | 494 | | Cash operating costs _(1) _($/ gold ounce produced) | 728 | 363 | 667 | 478 | | Total cash costs _(1) _($/ gold ounce sold) | 829 | 563 | 809 | 640 | | All-in sustaining costs _(1) _($/ gold ounce sold) | 978 | 716 | 971 | 772 | | Capital expenditures ($ in thousands) | 20,353 | 27,961 | 68,779 | 54,078 | | Exploration ($ in thousands) | 3,392 | 2,096 | 13,848 | 9,323 |

| | | (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 129,933 ounces in the third quarter of 2022, lower than expected due to a challenging rainy season in West Mali which temporarily delayed access to higher grade ore from Fekola open-pit Phase 6. In early October 2022 , mining commenced from the higher grade Fekola open-pit Phase 6 as the region exited its rainy season (which typically runs from June to September). Ore production from Fekola open-pit Phase 6 is forecast to average between 3.4 to 3.5 g/t gold. Over the full fourth quarter of 2022, gold grade mined is anticipated to average over 3.0 g/t gold.

The Fekola Mine's cash operating costs (refer to "Non-IFRS Measures" ) for the third quarter of 2022 were $728 per gold ounce produced ( $694 per gold ounce sold). Operating costs were higher than expected in the third quarter of 2022 largely due to fuel and explosive prices and increases in mining equipment maintenance costs.

All-in sustaining costs (refer to "Non-IFRS Measures" ) for the third quarter of 2022 for the Fekola Mine were $978 per gold ounce sold. All-in sustaining costs for the third quarter of 2022 were higher than expected as a result of higher cash operating costs described above and lower gold ounces sold partially offset by realized gains on the settlement of fuel derivatives.

Capital expenditures in the third quarter of 2022 totalled $20 million primarily consisting of $11 million for mobile equipment purchases and rebuilds, $6 million for tailings storage facility expansion and equipment, $2 million for process plant and other site maintenance and $1 million for the development of the Cardinal zone.

On July 3, 2022 , ECOWAS removed the economic, financial and diplomatic sanctions imposed on Mali in January 2022 . The sanctions were removed by ECOWAS after the interim Malian Government announced a two-year transition to presidential elections and promulgated a new electoral law. Mali's borders with its neighbouring countries are now open to normal commercial traffic and ordinary supply routes are available. Throughout the period of the sanctions, the Fekola Mine continued to operate normally and meet its production targets while maintaining a good working relationship with the interim Government.

Based on an expected strong fourth quarter of 2022 performance, as the region exits its rainy season and with higher grade production forecast from Fekola open-pit Phase 6, the Company re-affirms the Fekola Mine's annual production guidance range of between 570,000 to 600,000 ounces of gold. Cash operating costs for the year are expected to be within Fekola's guidance range of between $510 and $550 per gold ounce produced and all-in sustaining costs are also expected to be within Fekola's guidance range of between $840 and $880 per gold ounce.

Masbate Mine – The Philippines

| | Three months ended | Nine months ended | | | | | September 30, | September 30, | | | | | 2022 | 2021 | 2022 | 2021 | | | | | | | | Gold revenue ($ in thousands) | 107,936 | 117,795 | 290,704 | 325,627 | | Gold sold (ounces) | 62,600 | 66,300 | 160,150 | 181,641 | | Average realized gold price ($/ ounce) | 1,724 | 1,777 | 1,815 | 1,793 | | Tonnes of ore milled | 1,888,722 | 1,840,379 | 5,885,163 | 5,652,091 | | Grade (grams/ tonne) | 1.10 | 1.24 | 1.12 | 1.17 | | Recovery (%) | 74.7 | 81.6 | 77.1 | 82.5 | | Gold production (ounces) | 49,902 | 61,207 | 164,041 | 175,598 | | Cash operating costs _(1) _($/ gold ounce sold) | 879 | 546 | 815 | 597 | | Cash operating costs _(1) _($/ gold ounce produced) | 867 | 609 | 801 | 611 | | Total cash costs _(1) _($/ gold ounce sold) | 977 | 643 | 922 | 698 | | All-in sustaining costs _(1) _($/ gold ounce sold) | 1,110 | 751 | 1,076 | 820 | | Capital expenditures ($ in thousands) | 10,158 | 7,023 | 29,908 | 20,365 | | Exploration ($ in thousands) | 696 | 1,446 | 3,111 | 3,871 |

The Masbate Mine in the Philippines produced 49,902 ounces in the third quarter of 2022. Gold production was 4% less than expected as the ratio of sulphide and transitional ore to oxide ore was higher than forecasted in the third quarter of 2022, which contributed to the lower throughput and gold recovery and higher gold mill feed grade.

The Masbate Mine's cash operating costs (refer to "Non-IFRS Measures" ) for the third quarter of 2022 were $867 per gold ounce produced ( $879 per gold ounce sold). Cash operating costs per ounce produced for the third quarter of 2022 were higher than expected as a result of slightly lower gold production and higher mining and processing costs resulting from higher than expected diesel and heavy fuel oil cost.

All-in sustaining costs (refer to "Non-IFRS Measures" ) for the third quarter of 2022 were $1,110 per gold ounce sold. All-in sustaining costs for the third quarter of 2022 were in line with expectations as a result of offsetting factors. Slightly higher cash operating costs as described above and slightly higher capital expenditures due to timing differences were offset by realized gains on the settlement of fuel derivatives and higher gold ounces sold.

Capital expenditures in the third quarter of 2022 totalled $10 million , primarily consisting of $5 million for mobile equipment purchases and rebuilds, $2 million for an additional powerhouse generator and $1 million for tailings storage facility construction.

For the full year 2022 the Masbate Mine is expected to produce towards the lower end of increased guidance of between 215,000 and 225,000 ounces of gold (original guidance range was between 205,000 and 215,000 ounces of gold). For full-year 2022, with the increases being experienced in fuel prices, Masbate's cash operating costs are now expected to be at the lower end of Masbate's previously revised 2022 guidance range of between $820 and $860 per gold ounce (original guidance range was between $740 and $780 per gold ounce). The all-in sustaining cost guidance range remains unchanged and are expected to be at the upper end of Masbate's guidance range of between $1,070 and $1,110 per gold ounce.

Otjikoto Mine - Namibia

| | Three months ended | Nine months ended | | | | | September 30, | September 30, | | | | | 2022 | 2021 | 2022 | 2021 | | | | | | | | Gold revenue ($ in thousands) | 54,595 | 104,758 | 197,057 | 198,222 | | Gold sold (ounces) | 31,650 | 58,800 | 107,850 | 110,660 | | Average realized gold price ($/ ounce) | 1,725 | 1,782 | 1,827 | 1,791 | | Tonnes of ore milled | 877,249 | 901,216 | 2,573,360 | 2,656,367 | | Grade (grams/ tonne) | 1.27 | 2.41 | 1.25 | 1.42 | | Recovery (%) | 98.0 | 98.7 | 98.3 | 98.3 | | Gold production (ounces) | 35,068 | 68,959 | 101,546 | 118,892 | | Cash operating costs _(1) _($/ gold ounce sold) | 1,165 | 443 | 881 | 635 | | Cash operating costs _(1) _($/ gold ounce produced) | 958 | 382 | 948 | 597 | | Total cash costs _(1) _($/ gold ounce sold) | 1,234 | 515 | 954 | 707 | | All-in sustaining costs _(1) _($/ gold ounce sold) | 1,625 | 781 | 1,247 | 1,137 | | Capital expenditures ($ in thousands) | 20,292 | 19,371 | 59,575 | 59,337 | | Exploration ($ in thousands) | 896 | 1,257 | 2,275 | 2,846 |

The Otjikoto Mine in Namibia , in which the Company holds a 90% interest, produced 35,068 ounces in the third quarter of 2022, lower than expected due to delays in bringing the Wolfshag Underground mine into production. Project delays were due to issues achieving development rates in prior periods, which have been addressed through the appointment of a new underground development contractor in April 2022 . Development rates in the Wolfshag Underground mine have improved and are in line with budget, with access to initial development ore achieved in the third quarter of 2022 and stope ore production having commenced in the fourth quarter of 2022. Mined ore tonnage and grade continue to reconcile well with Otjikoto's resource model, with production anticipated to significantly increase in the fourth quarter of 2022 when mining reaches a higher-grade zone in the Otjikoto pit and with stope ore production from the Wolfshag Underground mine.

Cash operating costs (refer to "Non-IFRS Measures" ) for the third quarter of 2022 were $958 per gold ounce produced ( $1,165 per gold ounce sold). Cash operating costs per ounce produced for the third quarter of 2022 were higher than expected as a result of lower production due to delays in accessing Wolfshag Underground production (which has commenced in the fourth quarter of 2022) and higher fuel costs partially offset by a weaker than expected Namibian dollar.

All-in sustaining costs (refer to "Non-IFRS Measures" ) for the third quarter of 2022 were $1,625 per gold ounce sold. All-in sustaining costs for the third quarter of 2022 were higher than expected as a result of the higher cash operating costs described above and lower gold ounces sold, partially offset by lower sustaining capital expenditures and realized gains on the settlement of fuel derivatives. The lower sustaining capital expenditures are mainly a result of delays in underground development resulting in underground development costs being classified as non-sustaining instead of sustaining as budgeted.

B2Gold Reports Q3 2022 Results; Full-Year 2022 Total Consolidated Gold Production and Cost Guidance Remains Unchanged; Year-to-Date Operating Costs and All-In Sustaining Costs In Line with Budget despite Lower than Expected Gold Production

2022 Third Quarter and Year-to-Date Summary

Third Quarter and Year-to-Date 2022 Results

Operations

Earlier from DLP Resources Inc.