Emergent Metals Corporation press release

B2Gold Corp. Reports Strong Q3 2021 Results; Higher than Budgeted Gold Production and Operating Cashflows (of $320 M); Increases Annual Production Guidance Range to 1,015,000 to 1,055,000 oz and Maintains Cost Guidance

2021-11-02

TSXV - TSX Venture Exchange · Gold · Silver · Copper · Molybdenum · Zinc · Graphite · Canada

Canada NewsWire

VANCOUVER, BC, November 2, 2021 /CNW/ - B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the "Company") is pleased to announce its operational and financial results for the third quarter and first nine months of 2021. The Company previously released its gold production and gold revenue results for the third quarter and first nine months of 2021. All dollar figures are in United States dollars unless otherwise indicated.

2021 Third Quarter Highlights

Total gold production of 310,261 ounces (including 14,538 ounces of attributable production from Calibre Mining Corp. ("Calibre")), above budget by 7% (20,871 ounces), and consolidated gold production of 295,723 ounces from the Company's three operating mines, above budget by 7% (20,083 ounces) Consolidated gold revenue of $511 million on sales of 286,650 ounces at an average realized gold price of $1,782 per ounce Record quarterly gold production achieved by both the Fekola Mine of 165,557 ounces and Otjikoto Mine of 68,959 ounces In September 2021 , the Fekola Mine produced its 2 millionth ounce of gold, 4 years from the commencement of production Increased Fekola's and Masbate's production guidance; for full-year 2021, the Fekola Mine is now forecast to produce between 560,000 to 570,000 ounces of gold (original guidance was between 530,000 to 560,000 ounces) and the Masbate Mine between 215,000 to 225,000 ounces of gold (original guidance was between 200,000 to 210,000 ounces) Consolidated cash flow provided by operating activities from the Company's three operating mines of $320 million Total cash operating costs _(see "Non-IFRS Measures") _(including estimated attributable results for Calibre) of $445 per ounce produced and consolidated cash operating costs from the Company's three operating mines of $418 per ounce produced, both approximately in-line with budget Total all-in sustaining costs ("AISC") _(see "Non-IFRS Measures") _(including estimated attributable results for Calibre) of $795 per ounce sold and consolidated AISC from the Company's three operating mines of $777 per ounce sold, both approximately in-line with budget Net income attributable to the shareholders of the Company of $123 million ( $0.12 per share); adjusted net income _(see "Non-IFRS Measures") _attributable to the shareholders of the Company of $123 million ( $0.12 per share) On October 25, 2021 , the Company entered into an agreement with West African Resources ("WAF") to sell its 81% interest in the Kiaka Project in Burkina Faso for a combination of cash, WAF shares and production royalties

2021 First Nine Months Highlights

Total gold production of 742,517 ounces (including 43,771 ounces of attributable production from Calibre), above budget by 7% (49,682 ounces), and consolidated gold production of 698,746 ounces from the Company's three operating mines, above budget by 7% (47,161 ounces) Consolidated gold revenue of $1.2 billion on sales of 689,051 ounces at an average realized gold price of $1,794 per ounce Consolidated cash flow provided by operating activities from the Company's three operating mines of $458 million Total cash operating costs _(see "Non-IFRS Measures") _(including estimated attributable results for Calibre) of $556 per ounce produced and consolidated cash operating costs from the Company's three operating mines of $532 per ounce produced, both approximately in-line with budget Total all-in sustaining costs ("AISC") _(see "Non-IFRS Measures") _(including estimated attributable results for Calibre) of $900 per ounce sold and consolidated AISC from the Company's three operating mines of $887 per ounce sold, both approximately in-line with budget Net income attributable to the shareholders of the Company of $283 million ( $0.27 per share); adjusted net income _(see "Non-IFRS Measures") _attributable to the shareholders of the Company of $272 million ( $0.26 per share) For full-year 2021, B2Gold has increased its total gold production guidance range to between 1,015,000 - 1,055,000 ounces (including 50,000 – 60,000 attributable ounces projected from Calibre) (original guidance was between 970,000 and 1,030,000 ounces) For full-year 2021, the Company's total consolidated cash operating costs are expected to be within the guidance range of between $500 and $540 per ounce and total consolidated AISC are expected to be at the upper-end of the guidance range of between $870 and $910 per ounce Based on current assumptions, including an average gold price of $1,800 per ounce, the Company now expects to generate cashflows from operating activities of approximately $650 million for the full-year 2021 (original guidance was $630 million ) of which approximately $510 million is expected to be generated in the second half of 2021

Third Quarter and First Nine Months of 2021 Operational Results

Total gold production in the third quarter of 2021 was 310,261 ounces (including 14,538 ounces of attributable production from Calibre), above budget by 7% (20,871 ounces) and consolidated gold production from the Company's three operating mines was 295,723 ounces, above budget by 7% (20,083 ounces) with solid performances from the Company's three mines, with each mine exceeding its budgeted production for the third quarter of 2021 (see "Operations" section below). Both the Fekola and Otjikoto mines achieved record quarterly gold production in the third quarter of 2021. As planned, with increased throughput at the Fekola mill together with the completion of the significant waste stripping campaigns at both the Fekola and Otjikoto mines in the first half of 2021 (Phase 5 and Phase 6 of the Fekola Pit, and Phase 3 of the Wolfshag and Otjikoto pits), consolidated gold production in the third quarter of 2021 increased significantly by 19% (46,990 ounces) compared to the third quarter of 2020, as mining at Fekola reached the higher-grade zones of the Fekola Pit and mining at Otjikoto reached the higher-grade zone at the base of the Wolfshag Pit. Consolidated gold production also increased significantly by 50% (98,343 ounces) over the second quarter of 2021.

For the third quarter of 2021, total cash operating costs (including estimated attributable results for Calibre) were $445 per ounce produced ( $482 per ounce sold) and consolidated cash operating costs from the Company's three operating mines were $418 per ounce produced ( $456 per ounce sold), both approximately in-line with budget and comparable with the third quarter of 2020. In the third quarter of 2021, higher than budgeted gold production largely offset the impact of higher than budgeted realized fuel prices, processing costs and stronger local currencies, resulting in an overall cost per ounce which was approximately in-line with budget. Total AISC (including estimated attributable results for Calibre) for the third quarter of 2021 were $795 per ounce sold and consolidated AISC from the Company's three operating mines were $777 per ounce sold, both approximately in-line with budget (attributable to higher than budgeted gold ounces sold, higher than budgeted gains on settled fuel derivatives and lower than budgeted sustaining capital expenditures, largely offsetting higher than budgeted operating costs ) and comparable with the third quarter of 2020. The lower than budgeted sustaining capital expenditures were primarily the result of timing of expenditures and are expected to be incurred in the fourth quarter of 2021.

For the first nine months of 2021, total gold production was 742,517 ounces (including 43,771 ounces of attributable production from Calibre), above budget by 7% (49,682 ounces), and 4% (27,751 ounces) lower than the first nine months of 2020 due to the focus on waste stripping at Fekola and Otjikoto in the first half of 2021. Consolidated gold production from the Company's three operating mines was 698,746 ounces in the first nine months of 2021, above budget by 7% (47,161 ounces).

For the first nine months of 2021, total cash operating costs (including estimated attributable results for Calibre) were $556 per ounce produced ( $568 per ounce sold) and consolidated cash operating costs from the Company's three operating mines were $532 per ounce produced ( $544 per ounce sold), both approximately in-line with budget. As expected, the Company's consolidated cash operating costs were higher in the first nine months of 2021 compared to $388 per ounce produced ( $391 per ounce sold) in the first nine months of 2020, mainly due to the planned lower gold production together with higher realized input costs in the first nine months of 2021 (resulting from higher period stripping activities, higher fuel and processing costs and higher import duties). Total AISC (including estimated attributable results for Calibre) for the first nine months of 2021 were $900 per ounce sold (first nine months of 2020 - $740 per ounce sold) and consolidated AISC from the Company's three operating mines were $887 per ounce sold (first nine months of 2020 - $726 per ounce sold), both approximately in-line with budget.

For full-year 2021, based on strong production performance in the first nine months of 2021, the Company has increased its total gold production guidance to between 1,015,000 - 1,055,000 ounces (including 50,000 – 60,000 attributable ounces projected from Calibre) (original guidance was between 970,000 and 1,030,000 ounces). For full-year 2021, the Company's total consolidated cash operating costs are expected to be within the Company's guidance range of between $500 and $540 per ounce and total consolidated AISC are expected to be at the upper-end of the Company's guidance range of between $870 and $910 per ounce. The Company is still forecasting to meet its total consolidated cost per ounce guidance ranges even in the current inflationary cost environment, reflecting how well the Company's operating mines and their management teams have performed and continue to perform in 2021.

Third Quarter and First Nine Months of 2021 Financial Results

For the third quarter of 2021, consolidated gold revenue was $511 million on sales of 286,650 ounces at an average realized gold price of $1,782 per ounce, compared to $487 million on sales of 253,200 ounces at an average realized gold price of $1,924 per ounce in the third quarter of 2020. The increase in gold revenue of 5% ( $24 million ) was 13% attributable to the increase in gold ounces sold (mainly due to the higher gold production and timing of gold shipments), partially offset by an 8% impact from the decrease in the average realized gold price.

Cash flow provided by operating activities was $320 million in the third quarter of 2021 compared to $300 million in the third quarter of 2020. The increase over the third quarter of 2020 was mainly due to higher inflows of value added tax receivables in the third quarter of 2021. Operating cashflows in the third quarter of 2021 benefitted from higher than budgeted gold production and sales volumes as well as from the timing of refunds for certain value added tax receivables and other working capital items. Based on current assumptions, including an average gold price of $1,800 per ounce for the fourth quarter of 2021, the Company is now forecasting to generate cashflows from operating activities of approximately $650 million (original guidance was $630 million ) for the full-year 2021.

Net income for the third quarter of 2021 was $135 million compared to $277 million for the third quarter of 2020. Net income attributable to the shareholders of the Company was $123 million ( $0.12 per share) compared to $263 million ( $0.25 per share) for the third quarter of 2020. In the third quarter of 2020, the Company identified a higher sustained long-term gold price as an indicator of impairment reversal for the Masbate Mine resulting in a net impairment reversal of $122 million (pre-tax $174 million impairment reversal less $52 million deferred tax expense). Adjusted net income attributable to the shareholders of the Company _(see "Non-IFRS Measures") _was $123 million ( $0.12 per share) for the third quarter of 2021 compared to adjusted net income of $161 million ( $0.15 per share) for the third quarter of 2020.

For the first nine months of 2021, consolidated gold revenue was $1.2 billion on sales of 689,051 ounces at an average realized gold price of $1,794 per ounce compared to $1.3 billion on sales of 749,800 ounces at an average realized gold price of $1,746 per ounce in the first nine months of 2020. The decrease in gold revenue of 6% ( $73 million ) was mainly attributable to the decrease in gold ounces sold (mainly due to the lower gold production and timing of gold shipments).

Cash flow provided by operating activities was $458 million in the first nine months of 2021 compared to $754 million in the first nine months of 2020. The decrease was mainly due to lower revenues of $73 million , higher production costs of $81 million and higher working capital outflows in the first nine months of 2021, most significantly for value-added taxes and current income and other taxes payables. Current income tax payments in the first nine months of 2021 included approximately $140 million related to 2020 outstanding tax liability obligations (comprised mainly of Fekola outstanding 2020 tax liabilities of $75 million and Fekola 2020 priority dividend obligations of $46 million ). Based on current assumptions, including an average gold price of $1,800 per ounce for 2021, the Company is forecasting to make total cash income tax payments in 2021 of approximately $380 million , including the $140 million related to 2020 outstanding tax liability obligations discussed above.

For the first nine months of 2021, net income was $308 million compared to $498 million for the first nine months of 2020. Net income attributable to the shareholders of the Company was $283 million ( $0.27 per share) compared to $460 million ( $0.44 per share) for the first nine months of 2020. Adjusted net income attributable to the shareholders of the Company was $272 million ( $0.26 per share) for the first nine months of 2021 compared to adjusted net income of $368 million ( $0.35 per share) for the first nine months of 2020.

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At September 30, 2021 , the Company had cash and cash equivalents of $547 million ( December 31, 2020 - $480 million ) and working capital of $683 million ( December 31, 2020 - $465 million ). In addition, the Company's $600 million Revolving Credit Facility remains fully undrawn and available.

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.

Based on current assumptions, including an average gold price of $1,800 per ounce for the fourth quarter of 2021, the Company is now forecasting to generate cashflows from operating activities of approximately $650 million (original guidance was $630 million ) for the full-year 2021.

Operations

Mine-by-mine gold production in the third quarter and first nine months of 2021 (including the Company's estimated 33% share of Calibre's production) was as follows:

| Mine | Q3 2021 Gold Production (ounces) | First Nine Months 2021 Gold Production (ounces) | Revised Full-Year 2021 Guidance Gold Production (ounces) | Original Full-Year 2021 Guidance Gold Production (ounces) | | Fekola | 165,557 | 404,256 | 560,000 - 570,000 | 530,000 - 560,000 | | Masbate | 61,207 | 175,598 | 215,000 - 225,000 | 200,000 - 210,000 | | Otjikoto | 68,959 | 118,892 | 190,000 - 200,000 | 190,000 - 200,000 | | _B2Gold Consolidated (1) _ | 295,723 | 698,746 | 965,000 - 995,000 | 920,000 - 970,000 | | | | | | | | _Equity interest in Calibre (2) _ | 14,538 | 43,771 | 50,000 - 60,000 | 50,000 - 60,000 | | | | | | | | Total | 310,261 | 742,517 | 1,015,000 - 1,055,000 | 970,000 - 1,030,000 |

| (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 33% indirect share of the operations of Calibre's El Limon and La Libertad mines. B2Gold applies the equity method of accounting for its 33% ownership interest in Calibre. |

Mine-by-mine cash operating costs per ounce (on a per ounce of gold produced basis) in the third quarter and first nine months of 2021 were as follows (presented on a 100% basis):

| Mine | Q3 2021 Cash Operating Costs ($ per ounce produced) | First Nine Months 2021 Cash Operating Costs ($ per ounce produced) | Full-year 2021 Guidance Cash Operating Costs ($ per ounce produced) | | Fekola | $363 | $478 | $405 - $445 | | Masbate | $609 | $611 | $650 - $690 | | Otjikoto | $382 | $597 | $480 - $520 | | B2Gold Consolidated | $418 | $532 | $480 - $520 | | | | | | | Equity interest in Calibre (1) | $989 | $949 | $920 - $1,020 | | | | | | | Total | $445 | $556 | $500 - $540 |

| (1) | Calibre's 2021 forecast cash operating costs are assumed to be consistent throughout 2021. |

Mine-by-mine cash operating costs per ounce (on a per ounce of gold sold basis) in the third quarter and first nine months of 2021 were as follows (presented on a 100% basis):

| Mine | Q3 2021 Cash Operating Costs ($ per ounce sold) | First Nine Months 2021 Cash Operating Costs ($ per ounce sold) | Full-year 2021 Guidance Cash Operating Costs ($ per ounce sold) | | Fekola | $424 | $494 | $405 - $445 | | Masbate | $546 | $597 | $650 - $690 | | Otjikoto | $443 | $635 | $480 - $520 | | B2Gold Consolidated | $456 | $544 | $480 - $520 | | | | | | | Equity interest in Calibre (1) | $991 | $945 | $920 - $1,020 | | | | | | | Total | $482 | $568 | $500 - $540 |

| (1) | Calibre's 2021 forecast cash operating costs are assumed to be consistent throughout 2021. |

Mine-by-mine AISC (on a per ounce of gold sold basis) in the third quarter and first nine months of 2021 were as follows (presented on a 100% basis):

| Mine | Q3 2021 AISC ($ per ounce sold) | First Nine Months 2021 AISC ($ per ounce sold) | Full-year 2021 Guidance AISC ($ per ounce sold) | | Fekola | $716 | $772 | $745 - $785 | | Masbate | $751 | $820 | $955 - $995 | | Otjikoto | $781 | $1,137 | $830 - $870 | | B2Gold Consolidated | $777 | $887 | $860 - $900 | | | | | | | Equity interest in Calibre (1) | $1,151 | $1,110 | $1,040 - $1,140 | | | | | | | Total | $795 | $900 | $870 - $910 |

| (1) | Calibre's 2021 forecast AISC are assumed to be consistent throughout 2021. |

Fekola Gold Mine – Mali

The Fekola Mine in Mali continued its strong operational performance through the third quarter of 2021, with record quarterly gold production of 165,557 ounces, 6% (9,557 ounces) above budget, and 9% (13,022 ounces) higher compared to the third quarter of 2020. The increase was due to higher mill throughput, partially offset by lower processed grade, as Fekola's low-grade stockpiles were used to supplement the additional unbudgeted mill feed required as a result of the higher than budgeted processed tonnes. As planned, with the completion of the waste stripping campaign relating to the development of Phases 5 and 6 of the Fekola Pit in the first half of 2021, Fekola's gold production increased significantly by 46% (51,946 ounces) over the second quarter of 2021, as mining reached the higher-grade zones in Phase 5 of the Fekola Pit in the third quarter of 2021. In September 2021 , the Fekola Mine produced its 2 millionth ounce of gold, 4 years from the commencement of production.

For the third quarter of 2021, mill feed grade was 2.30 grams per tonne ("g/t") compared to budget of 2.71 g/t and 3.22 g/t in the third quarter of 2020; mill throughput was 2.36 million tonnes compared to budget of 1.91 million tonnes and 1.56 million tonnes in the third quarter of 2020; and gold recovery averaged 94.8% compared to budget of 94.0% and 94.6% in the third quarter of 2020. Fekola's processing facilities continued to outperform in the third quarter of 2021 (following the successful completion of the Fekola mill expansion in September 2020 ) with record quarterly throughput of 2.36 million tonnes, 24% above budget and 51% higher than the third quarter of 2020. The higher than budgeted mill throughput was due to favourable ore fragmentation and hardness, as well as optimization of the grinding circuit. Based on the positive results noted to date through to the third quarter of 2021, Fekola's annualized throughput rate is now expected to average 8.3 million tonnes per annum ("Mtpa") for 2021 and average approximately 9.0 Mtpa (over the long-term), based on an ore blend including fresh rock and weathered material (saprolite).