2024 First Quarter Highlights
- Total gold production of 225,716 ounces in Q1 2024, in-line with expectations: Total gold production in the first quarter of 2024 was 225,716 ounces, including 11,377 ounces of attributable production from Calibre Mining Corp. (“Calibre”). All three
B2Gold operations were in-line with expectations and the Company is on track to meet its consolidated annual production guidance range.
- Total consolidated cash operating costs of
$734 per gold ounce produced in Q1 2024: Total consolidated cash operating costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of$734 per gold ounce produced during the first quarter of 2024 with consolidated cash operating costs from the Company’s three operating mines of$718 per gold ounce produced.
- Total consolidated all-in sustaining costs of
$1,345 per gold ounce sold in Q1 2024: Total consolidated all-in sustaining costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of$1,345 per gold ounce sold with consolidated all-in sustaining costs from the Company’s three operating mines of$1,346 per gold ounce sold.
- Attributable net income of
$0.03 per share; Adjusted attributable net income of$0.06 per share in Q1 2024: Net income attributable to the shareholders of the Company in the first quarter of 2024 of$40 million ($0.03 per share); adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company of$82 million ($0.06 per share).
- Operating cash flow before working capital adjustments of
$200 million in Q1 2024: Cash flow provided by operating activities before working capital adjustments and proceeds from prepaids financing was$200 million in the first quarter of 2024.
- Strong financial position and liquidity: At
March 31, 2024 , the Company had cash and cash equivalents of$568 million and working capital (defined as current assets less assets classified as held for sale and current liabilities) of$629 million .
- Q2 2024 dividend of
$0.04 per share declared: OnMay 7, 2024 ,B2Gold's Board of Directors declared a cash dividend for the second quarter of 2024 of$0.04 per common share (or an expected$0.16 per share on an annualized basis), payable onJune 24, 2024 , to shareholders of record as ofJune 11, 2024 . As ofMarch 31, 2024 , the expected annual dividend rate represented an approximate 6.1% yield.
Goose Project 2024 winter ice road campaign successfully completed: Subsequent to quarter end,B2Gold successfully completed the 2024 winter ice road (“WIR”) campaign. Construction of the 162 kilometer (“km”) WIR began inDecember 2023 and the 2024 WIR campaign commenced in the first quarter of 2024. The 2024 WIR campaign was successfully completed onApril 30, 2024 , delivering all necessary materials from the Marine Laydown Area (“MLA”) to complete the construction of theGoose Project . Materials trucked from the MLA to theGoose Project site during the 2024 WIR campaign exceeded 2,100 total loads and included 400 loads of diesel fuel.
Goose Project mill construction remains on schedule: The mill construction remains on schedule with work ongoing on various facilities related to concrete, steel erection and building cladding. Additionally, installation of the ball mill continues to progress ahead of schedule with the installation of all shell sections, feed/discharge heads, trunnion, pinion and bearings having been completed.
- Development of the open pit and underground is slightly behind schedule at the
Goose Project ; first gold production now expected in Q2 2025: Development of the open pit and underground is slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and prioritization of critical path construction activities. The current schedule indicates that an additional three months of mining must be added to the schedule to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit. With the schedule change, the mill is now scheduled to produce first gold in the second quarter of 2025 with ramp up to full production in the third quarter of 2025 (one quarter later than previous estimates). As a result of the updated mining schedule, the Company now estimates that gold production in calendar year 2025 will be between 120,000 ounces and 150,000 ounces (previously estimated to be between 220,000 ounces and 260,000 ounces). The reduction in estimated gold production in 2025 is predominantly due to the deferral of an anticipated 100,000 ounces of quarterly gold production from the fourth quarter of 2025 into the first quarter of 2026. Importantly, the updated mining schedule does not impact the total number of gold ounces the Company expects to produce over the life of mine of theGoose Project . The updated production profile has resulted in the Company now estimating that average annual gold production from 2026 to 2030 will increase to be in excess of 310,000 ounces per year (previously estimated at 300,000 ounces per year).
- Positive exploration results from the Antelope deposit at the
Otjikoto Mine inNamibia indicate potential for possible underground development: OnJanuary 31, 2024 , the Company announced positive exploration drilling results from the Antelope deposit, located approximately three km south of the Otjikoto open pit. The Antelope deposit has the potential to be developed as an underground mining operation, which could complement the expected processing of low-grade stockpiles at the Otjikoto mill from 2026 through 2031.
Fekola Complex technical report outlined the trucking of ore as the optimal option to maximize the value ofFekola Regional :The Fekola Complex technical report filed onMarch 14, 2024 , outlined the trucking of ore from theAnaconda Area to be toll milled by theFekola mill as the optimal option to maximize the value ofFekola Regional , and to extend the processing life of theFekola mill. Trucking of selective higher-grade material fromFekola Regional to theFekola mill will increase the ore processed and has the potential to generate approximately 80,000 to 100,000 ounces of initial gold production per year fromFekola Regional sources. Importantly, the haul road fromFekola Regional to theFekola Mine is operational as construction of the haul roads and mining infrastructure (warehouse, workshop, fuel depot and offices) was completed on schedule in 2023.
- Updated Gramalote Preliminary Economic Assessment (“PEA”) on track for Q2 2024:
B2Gold's in-house projects team is progressing work on various smaller scale project development plans for theGramalote Project , with the goal of identifying a higher-return project than the previously contemplated joint venture development plan.B2Gold has completed a detailed review of theGramalote Project , including the facility size and location, power supply, mining and processing options, tailings design, resettlement, potential construction sequencing and camp design to identify potential cost savings to develop a smaller scale project. The results of the review allowed the Company to determine the optimal parameters and assumptions for a formal study, which commenced in the fourth quarter of 2023, with a PEA expected to be complete by the end of the second quarter of 2024.
- Received an upfront payment of
$500 million , to further enhance financial flexibility and provide additional cash liquidity: InJanuary 2024 ,B2Gold entered into a series of prepaid gold sales (the “Gold Prepay”) with a number of existing lenders to further enhance financial flexibility and provide additional cash liquidity at attractive terms as the Company continues to fund sustaining, development and growth projects across the operating portfolio, and increase financial capacity for potential growth projects inNamibia andColombia .
First Quarter 2024 Results
Three months ended | ||
2024 | 2023 | |
Gold revenue ($ in thousands) | 461,444 | 473,556 |
Net income ($ in thousands) | 48,481 | 101,904 |
Earnings per share – basic(1) ($/ share) | 0.03 | 0.08 |
Earnings per share – diluted(1) ($/ share) | 0.03 | 0.08 |
Cash provided by operating activities ($ thousands) | 710,727 | 203,823 |
Average realized gold price ($/ ounce) | 2,069 | 1,901 |
Adjusted net income(1)(2) ($ in thousands) | 81,503 | 105,862 |
Adjusted earnings per share(1)(2) – basic ($) | 0.06 | 0.10 |
Consolidated operations results: | ||
Gold sold (ounces) | 222,978 | 249,150 |
Gold produced (ounces) | 214,339 | 250,719 |
Production costs ($ in thousands) | 156,745 | 127,604 |
Cash operating costs(2) ($/ gold ounce sold) | 703 | 512 |
Cash operating costs(2) ($/ gold ounce produced) | 718 | 576 |
Total cash costs(2) ($/ gold ounce sold) | 838 | 653 |
All-in sustaining costs(2) ($/ gold ounce sold) | 1,346 | 1,049 |
Operations results including equity investment in Calibre: | ||
Gold sold (ounces) | 234,355 | 265,292 |
Gold produced (ounces) | 225,716 | 266,856 |
Production costs ($ in thousands) | 168,650 | 143,369 |
Cash operating costs(2) ($/ gold ounce sold) | 720 | 540 |
Cash operating costs(2) ($/ gold ounce produced) | 734 | 600 |
Total cash costs(2) ($/ gold ounce sold) | 851 | 678 |
All-in sustaining costs(2) ($/ gold ounce sold) | 1,345 | 1,060 |
(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
Second Quarter 2024 Dividend
On
In 2023, the Company implemented a Dividend Reinvestment Plan (“DRIP”). For the purposes of the Q2 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 Q2 2024 Dividend, registered shareholders must deliver a properly completed enrollment form to
As part of the long-term strategy to maximize shareholder value,
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
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
Operations
Three months ended | ||
2024 | 2023 | |
Gold revenue ($ in thousands) | 256,318 | 314,225 |
Gold sold (ounces) | 123,828 | 165,050 |
Average realized gold price ($/ ounce) | 2,070 | 1,904 |
Tonnes of ore milled | 2,462,863 | 2,271,891 |
Grade (grams/ tonne) | 1.62 | 2.47 |
Recovery (%) | 92.7 | 91.9 |
Gold production (ounces) | 119,141 | 165,864 |
Production costs ($ in thousands) | 85,105 | 77,661 |
Cash operating costs(1) ($/ gold ounce sold) | 687 | 471 |
Cash operating costs(1) ($/ gold ounce produced) | 698 | 483 |
Total cash costs(1) ($/ gold ounce sold) | 852 | 632 |
All-in sustaining costs(1) ($/ gold ounce sold) | 1,436 | 964 |
Capital expenditures ($ in thousands) | 80,562 | 53,795 |
Exploration ($ in thousands) | 1,302 | 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’s cash operating costs (see “Non-IFRS Measures”) for the first quarter of 2024 were
All-in sustaining costs (see “Non-IFRS Measures”) for the first quarter of 2024 for the
Capital expenditures in the first quarter of 2024 totalled
Three months ended | ||
2024 | 2023 | |
Gold revenue ($ in thousands) | 98,967 | 56,992 |
Gold sold (ounces) | 47,700 | 29,650 |
Average realized gold price ($/ ounce) | 2,075 | 1,922 |
Tonnes of ore milled | 2,169,462 | 2,069,042 |
Grade (grams/ tonne) | 0.99 | 0.95 |
Recovery (%) | 72.4 | 73.5 |
Gold production (ounces) | 49,782 | 46,364 |
Production costs ($ in thousands) | 42,771 | 24,993 |
Cash operating costs(1) ($/ gold ounce sold) | 897 | 843 |
Cash operating costs(1) ($/ gold ounce produced) | 835 | 883 |
Total cash costs(1) ($/ gold ounce sold) | 1,010 | 992 |
All-in sustaining costs(1) ($/ gold ounce sold) | 1,219 | 1,320 |
Capital expenditures ($ in thousands) | 8,530 | 8,953 |
Exploration ($ in thousands) | 821 | 959 |
(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”.
All-in sustaining costs (see “Non-IFRS Measures”) for the first quarter of 2024 were
Capital expenditures in the first quarter of 2024 totalled
Three months ended | ||
2024 | 2023 | |
Gold revenue ($ in thousands) | 106,159 | 102,339 |
Gold sold (ounces) | 51,450 | 54,450 |
Average realized gold price ($/ ounce) | 2,063 | 1,880 |
Tonnes of ore milled | 826,477 | 823,952 |
Grade (grams/ tonne) | 1.74 | 1.47 |
Recovery (%) | 98.5 | 98.8 |
Gold production (ounces) | 45,416 | 38,491 |
Production costs ($ in thousands) | 28,869 | 24,950 |
Cash operating costs(1) ($/ gold ounce sold) | 561 | 458 |
Cash operating costs(1) ($/ gold ounce produced) | 642 | 605 |
Total cash costs(1) ($/ gold ounce sold) | 644 | 533 |
All-in sustaining costs(1) ($/ gold ounce sold) | 958 | 905 |
Capital expenditures ($ in thousands) | 13,813 | 17,346 |
Exploration ($ in thousands) | 1,789 | 494 |
(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”.
Ore production from the Wolfshag underground mine for the first quarter of 2024 averaged over 1,500 tonnes per day at an average grade of 4.06 g/t gold. As of the beginning of 2024, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 100,000 ounces of gold in 0.6 million tonnes of ore at an average grade of 5.02 g/t gold. Open pit mining operations at the
On
Cash operating costs (see “Non-IFRS Measures”) for the first quarter of 2024 were
All-in sustaining costs (see “Non-IFRS Measures”) for the first quarter of 2024 were
Capital expenditures for the first quarter of 2024 totalled
Following the successful completion of the 2023 sealift, construction of the 162 km WIR between the MLA and the
Winter ice road –
As of the end of
The mill construction remains on schedule (with certain items ahead of schedule) with work ongoing on various facilities related to concrete, steel erection and building cladding. Installation of the ball mill is progressing ahead of schedule with the installation of all shell sections, feed/discharge heads, trunnion, pinion and bearings having been completed.
The primary pond will provide contact water storage as well as store reclaimed water during the first year of processing operations. It is critical for the primary pond to receive water in 2024 for mill start-up and commissioning. The facility embankment includes a frozen core that requires a below grade cut-off trench to be constructed during the winter months. The cut-off trench was successfully completed in
Development of the open pit and underground is slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and prioritization of critical path construction activities. The current schedule indicates that an additional three months of mining must be added to the schedule to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit. With the schedule change, the mill is now scheduled to produce first gold in the second quarter of 2025 with ramp up to full production in the third quarter of 2025 (one quarter later than previous estimates). This does not impact the other facets of the project and staffing tables have been adjusted to ensure that capital is conserved. With the updated schedule, the Company estimates that gold production in calendar year 2025 will be between 120,000 ounces and 150,000 ounces (previously estimated to be between 220,000 ounces and 260,000 ounces). The reduction in estimated gold production in 2025 is predominantly due to the deferral of an anticipated 100,000 ounces of quarterly gold production from the fourth quarter of 2025 into the first quarter of 2026. Importantly, the updated mining schedule does not impact the total number of gold ounces the Company expects to produce over the life of mine of the
After completing a detailed design review of the
Based on
Outlook
Based on the positive first quarter of 2024 operating and financial results,
The Company has completed a detailed review of the
The Company's ongoing strategy is to continue to maximize profitable production from its mines, further advance its pipeline of remaining development and exploration projects, evaluate new exploration, development and production opportunities and continue to pay an industry leading dividend yield.
First Quarter 2024 Financial Results - Conference Call Details
Participants may register for the conference call here: registration link. Upon registering, participants will receive a calendar invitation by email with dial in details and a unique PIN. This will allow participants to bypass the operator queue and connect directly to the conference. Registration will remain open until the end of the conference call. Participants may also dial in using the numbers below:
- Toll-free in
U.S. andCanada : +1 (844) 763-8274 - All other callers: +1 (647) 484-8814
The conference call will be available for playback for two weeks by dialing toll-free in the
About
Qualified Persons
ON BEHALF OF B2GOLD CORP.
“Clive T. Johnson”
President and Chief Executive Officer
Production results and production guidance presented in this news release reflect total production at the mines
This news release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian and
Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond
Non-IFRS Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including "cash operating costs" and "all-in sustaining costs" (or "AISC"). Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and should be read in conjunction with
Cautionary Statement Regarding Mineral Reserve and Resource Estimates
The disclosure in this news release was prepared in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
(Expressed in thousands of
(Unaudited)
2024 | 2023 | ||||||
Gold revenue | $ | 461,444 | $ | 473,556 | |||
Cost of sales | |||||||
Production costs | (156,745 | ) | (127,604 | ) | |||
Depreciation and depletion | (90,446 | ) | (97,158 | ) | |||
Royalties and production taxes | (30,027 | ) | (35,161 | ) | |||
Total cost of sales | (277,218 | ) | (259,923 | ) | |||
Gross profit | 184,226 | 213,633 | |||||
General and administrative | (14,138 | ) | (14,185 | ) | |||
Share-based payments | (4,954 | ) | (6,854 | ) | |||
Non-recoverable input taxes | (4,304 | ) | (1,907 | ) | |||
Share of net income of associates | 2,097 | 4,979 | |||||
Foreign exchange losses | (2,379 | ) | (596 | ) | |||
Community relations | (489 | ) | (1,003 | ) | |||
Write-down of mining interests | — | (16,457 | ) | ||||
Other expense | (5,432 | ) | (1,691 | ) | |||
Operating income | 154,627 | 175,919 | |||||
Interest and financing expense | (9,571 | ) | (2,926 | ) | |||
Interest income | 5,455 | 5,819 | |||||
Change in fair value of gold stream | (10,852 | ) | — | ||||
Dilution loss on associate | (9,982 | ) | — | ||||
Gains (losses) on derivative instruments | 275 | (357 | ) | ||||
Other income (expense) | 143 | (1,600 | ) | ||||
Income from operations before taxes | 130,095 | 176,855 | |||||
Current income tax, withholding and other taxes | (61,584 | ) | (76,740 | ) | |||
Deferred income tax (expense) recovery | (20,030 | ) | 1,789 | ||||
Net income for the period | $ | 48,481 | $ | 101,904 | |||
Attributable to: | |||||||
Shareholders of the Company | $ | 39,751 | $ | 85,973 | |||
Non-controlling interests | 8,730 | 15,931 | |||||
Net income for the period | $ | 48,481 | $ | 101,904 | |||
Earnings per share (attributable to shareholders of the Company) | |||||||
Basic | $ | 0.03 | $ | 0.08 | |||
Diluted | $ | 0.03 | $ | 0.08 | |||
Weighted average number of common shares outstanding (in thousands) | |||||||
Basic | 1,303,191 | 1,075,402 | |||||
Diluted | 1,307,674 | 1,081,084 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED
(Expressed in thousands of
(Unaudited)
2024 | 2023 | ||||||
Operating activities | |||||||
Net income for the period | $ | 48,481 | $ | 101,904 | |||
Mine restoration provisions settled | (291 | ) | — | ||||
Non-cash charges, net | 151,322 | 121,532 | |||||
Proceeds from prepaid sales | 500,023 | — | |||||
Changes in non-cash working capital | 21,985 | 6,226 | |||||
Changes in long-term supplies inventory | 4,152 | — | |||||
Changes in long-term value added tax receivables | (14,945 | ) | (25,839 | ) | |||
Cash provided by operating activities | 710,727 | 203,823 | |||||
Financing activities | |||||||
Repayment of revolving credit facility | (150,000 | ) | — | ||||
Repayment of equipment loan facilities | (2,387 | ) | (3,578 | ) | |||
Interest and commitment fees paid | (3,579 | ) | (1,002 | ) | |||
Cash proceeds from stock option exercises | 1,088 | 2,444 | |||||
Dividends paid | (45,989 | ) | (42,976 | ) | |||
Principal payments on lease arrangements | (1,448 | ) | (1,443 | ) | |||
Distributions to non-controlling interests | (4,580 | ) | (2,082 | ) | |||
Other | 271 | 817 | |||||
Cash used by financing activities | (206,624 | ) | (47,820 | ) | |||
Investing activities | |||||||
Expenditures on mining interests: | |||||||
(80,562 | ) | (53,795 | ) | ||||
(8,530 | ) | (8,953 | ) | ||||
(13,813 | ) | (17,346 | ) | ||||
(117,451 | ) | — | |||||
(4,501 | ) | (14,775 | ) | ||||
(3,310 | ) | (510 | ) | ||||
Other exploration | (8,840 | ) | (15,991 | ) | |||
Loan to associate | (1,496 | ) | — | ||||
Funding of reclamation accounts | (1,029 | ) | (1,289 | ) | |||
Purchase of long-term investment | — | (15,116 | ) | ||||
Cash paid for purchase of non-controlling interest | — | (6,704 | ) | ||||
Deferred consideration received | — | 3,850 | |||||
Other | (45 | ) | (459 | ) | |||
Cash used by investing activities | (239,577 | ) | (131,088 | ) | |||
Increase in cash and cash equivalents | 264,526 | 24,915 | |||||
Effect of exchange rate changes on cash and cash equivalents | (3,607 | ) | (3,121 | ) | |||
Cash and cash equivalents, beginning of period | 306,895 | 651,946 | |||||
Cash and cash equivalents, end of period | $ | 567,814 | $ | 673,740 |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of
(Unaudited)
As at 2024 | As at 2023 | ||||||
Assets | |||||||
Current | |||||||
Cash and cash equivalents | $ | 567,814 | $ | 306,895 | |||
Accounts receivable, prepaids and other | 26,087 | 27,491 | |||||
Value-added and other tax receivables | 29,046 | 29,848 | |||||
Inventories | 339,351 | 346,495 | |||||
Assets classified as held for sale | 34,347 | — | |||||
996,645 | 710,729 | ||||||
Long-term investments | 101,497 | 86,007 | |||||
Value-added tax receivables | 216,663 | 199,671 | |||||
Mining interests | 3,682,923 | 3,563,490 | |||||
Investment in associates | 126,207 | 134,092 | |||||
Long-term stockpile | 58,941 | 56,497 | |||||
Long-term supplies inventory | 33,259 | 43,571 | |||||
Other assets | 71,865 | 63,635 | |||||
Deferred income taxes | 8,272 | 16,927 | |||||
$ | 5,296,272 | $ | 4,874,619 | ||||
Liabilities | |||||||
Current | |||||||
Accounts payable and accrued liabilities | $ | 175,892 | $ | 167,117 | |||
Current income and other taxes payable | 132,418 | 120,679 | |||||
Current portion of long-term debt | 16,414 | 16,256 | |||||
Current portion of mine restoration provisions | 2,759 | 3,050 | |||||
Other current liabilities | 6,157 | 6,369 | |||||
333,640 | 313,471 | ||||||
Long-term debt | 28,804 | 175,869 | |||||
Gold stream obligation | 150,452 | 139,600 | |||||
Prepaid gold sales | 507,640 | — | |||||
Mine restoration provisions | 101,570 | 104,607 | |||||
Deferred income taxes | 200,004 | 188,106 | |||||
Employee benefits obligation | 19,916 | 19,171 | |||||
Other long-term liabilities | 24,390 | 23,820 | |||||
1,366,416 | 964,644 | ||||||
Equity | |||||||
Shareholders’ equity | |||||||
Share capital | 3,463,392 | 3,454,811 | |||||
Contributed surplus | 88,745 | 84,970 | |||||
Accumulated other comprehensive loss | (110,285 | ) | (125,256 | ) | |||
Retained earnings | 384,539 | 395,854 | |||||
3,826,391 | 3,810,379 | ||||||
Non-controlling interests | 103,465 | 99,596 | |||||
3,929,856 | 3,909,975 | ||||||
$ | 5,296,272 | $ | 4,874,619 | ||||
NON-IFRS MEASURES
Cash operating costs per gold ounce sold and total cash costs per gold ounce sold
‘‘Cash operating costs per gold ounce’’ and “total cash costs per gold ounce” are common financial performance measures in the gold mining industry but, as non-IFRS measures, they do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance and ability to generate cash flow. Accordingly, these measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures, along with sales, are considered to be a key indicator of the Company’s ability to generate earnings and cash flow from its mining operations.
Cash cost figures are calculated on a sales basis in accordance with a standard developed by
For the three months ended | ||||||
Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 85,105 | 42,771 | 28,869 | 156,745 | 11,905 | 168,650 |
Royalties and production taxes | 20,395 | 5,390 | 4,242 | 30,027 | 854 | 30,881 |
Total cash costs | 105,500 | 48,161 | 33,111 | 186,772 | 12,759 | 199,531 |
Gold sold (ounces) | 123,828 | 47,700 | 51,450 | 222,978 | 11,377 | 234,355 |
Cash operating costs per ounce ($/ gold ounce sold) | 687 | 897 | 561 | 703 | 1,046 | 720 |
Total cash costs per ounce ($/ gold ounce sold) | 852 | 1,010 | 644 | 838 | 1,121 | 851 |
For the three months ended | ||||||
Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 77,661 | 24,993 | 24,950 | 127,604 | 15,765 | 143,369 |
Royalties and production taxes | 26,666 | 4,413 | 4,082 | 35,161 | 1,254 | 36,415 |
Total cash costs | 104,327 | 29,406 | 29,032 | 162,765 | 17,019 | 179,784 |
Gold sold (ounces) | 165,050 | 29,650 | 54,450 | 249,150 | 16,142 | 265,292 |
Cash operating costs per ounce ($/ gold ounce sold) | 471 | 843 | 458 | 512 | 977 | 540 |
Total cash costs per ounce ($/ gold ounce sold) | 632 | 992 | 533 | 653 | 1,054 | 678 |
Cash operating costs per gold ounce produced
In addition to cash operating costs on a per gold ounce sold basis, the Company also presents cash operating costs on a per gold ounce produced basis. Cash operating costs per gold ounce produced is derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce produced to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):
For the three months ended | ||||||||||
Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Production costs | 85,105 | 42,771 | 28,869 | 156,745 | 11,905 | 168,650 | ||||
Inventory sales adjustment | (1,922 | ) | (1,224 | ) | 272 | (2,874 | ) | — | (2,874 | ) |
Cash operating costs | 83,183 | 41,547 | 29,141 | 153,871 | 11,905 | 165,776 | ||||
Gold produced (ounces) | 119,141 | 49,782 | 45,416 | 214,339 | 11,377 | 225,716 | ||||
Cash operating costs per ounce ($/ gold ounce produced) | 698 | 835 | 642 | 718 | 1,046 | 734 |
For the three months ended | |||||||
Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | ||
$ | $ | $ | $ | $ | $ | ||
Production costs | 77,661 | 24,993 | 24,950 | 127,604 | 15,765 | 143,369 | |
Inventory sales adjustment | 2,518 | 15,937 | (1,649 | ) | 16,806 | — | 16,806 |
Cash operating costs | 80,179 | 40,930 | 23,301 | 144,410 | 15,765 | 160,175 | |
Gold produced (ounces) | 165,864 | 46,364 | 38,491 | 250,719 | 16,137 | 266,856 | |
Cash operating costs per ounce ($/ gold ounce produced) | 483 | 883 | 605 | 576 | 977 | 600 |
All-in sustaining costs per gold ounce
In
Management believes that the all-in sustaining costs per gold ounce measure provides additional insight into the costs of producing gold by capturing all of the expenditures required for the discovery, development and sustaining of gold production and allows the Company to assess its ability to support capital expenditures to sustain future production from the generation of operating cash flows. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. The Company has applied the principles of the
The tables below show a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended
For the three months ended | ||||||||||||
Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | $ | ||||||
Production costs | 85,105 | 42,771 | 28,869 | — | 156,745 | 11,905 | 168,650 | |||||
Royalties and production taxes | 20,395 | 5,390 | 4,242 | — | 30,027 | 854 | 30,881 | |||||
Corporate administration | 2,727 | 514 | 1,480 | 9,417 | 14,138 | 561 | 14,699 | |||||
Share-based payments – RSUs/DSUs/PSUs/RPUs(1) | 33 | — | — | 4,973 | 5,006 | — | 5,006 | |||||
Community relations | 145 | 13 | 331 | — | 489 | — | 489 | |||||
Reclamation liability accretion | 435 | 301 | 238 | — | 974 | — | 974 | |||||
Realized gains on derivative contracts | (218 | ) | (144 | ) | (31 | ) | — | (393 | ) | — | (393 | ) |
Sustaining lease expenditures | 84 | 318 | 554 | 492 | 1,448 | — | 1,448 | |||||
Sustaining capital expenditures(2) | 67,870 | 8,249 | 12,898 | — | 89,017 | 1,755 | 90,772 | |||||
Sustaining mine exploration(2) | 1,302 | 734 | 702 | — | 2,738 | — | 2,738 | |||||
Total all-in sustaining costs | 177,878 | 58,146 | 49,283 | 14,882 | 300,189 | 15,075 | 315,264 | |||||
Gold sold (ounces) | 123,828 | 47,700 | 51,450 | — | 222,978 | 11,377 | 234,355 | |||||
All-in sustaining cost per ounce ($/ gold ounce sold) | 1,436 | 1,219 | 958 | — | 1,346 | 1,325 | 1,345 |
(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended
For the three months ended | |||||||||||
Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | ||||||
Operating mine capital expenditures | 80,562 | 8,530 | 13,813 | 102,905 | 1,755 | 104,660 | |||||
(11,104 | ) | — | — | (11,104 | ) | — | (11,104 | ) | |||
Road construction | (1,588 | ) | — | — | (1,588 | ) | — | (1,588 | ) | ||
Land acquisition | — | (71 | ) | — | (71 | ) | — | (71 | ) | ||
Other | — | (210 | ) | (915 | ) | (1,125 | ) | — | (1,125 | ) | |
Sustaining capital expenditures | 67,870 | 8,249 | 12,898 | 89,017 | 1,755 | 90,772 |
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended
For the three months ended | ||||||||||
Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine exploration | 1,302 | 821 | 1,789 | 3,912 | — | 3,912 | ||||
Regional exploration | — | (87 | ) | (1,087 | ) | (1,174 | ) | — | (1,174 | ) |
Sustaining mine exploration | 1,302 | 734 | 702 | 2,738 | — | 2,738 |
The tables below show a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended
For the three months ended | ||||||||||||
Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | $ | ||||||
Production costs | 77,661 | 24,993 | 24,950 | — | 127,604 | 15,765 | 143,369 | |||||
Royalties and production taxes | 26,666 | 4,413 | 4,082 | — | 35,161 | 1,254 | 36,415 | |||||
Corporate administration | 2,961 | 499 | 1,704 | 9,021 | 14,185 | 749 | 14,934 | |||||
Share-based payments – RSUs/DSUs/PSUs/RPUs(1) | — | — | — | 4,319 | 4,319 | — | 4,319 | |||||
Community relations | 674 | 58 | 271 | — | 1,003 | — | 1,003 | |||||
Reclamation liability accretion | 381 | 291 | 294 | — | 966 | — | 966 | |||||
Realized gains on derivative contracts | (771 | ) | (1,172 | ) | (488 | ) | — | (2,431 | ) | — | (2,431 | ) |
Sustaining lease expenditures | 64 | 307 | 623 | 449 | 1,443 | — | 1,443 | |||||
Sustaining capital expenditures(2) | 49,776 | 8,776 | 17,346 | — | 75,898 | 2,006 | 77,904 | |||||
Sustaining mine exploration(2) | 1,706 | 959 | 494 | — | 3,159 | — | 3,159 | |||||
Total all-in sustaining costs | 159,118 | 39,124 | 49,276 | 13,789 | 261,307 | 19,774 | 281,081 | |||||
Gold sold (ounces) | 165,050 | 29,650 | 54,450 | — | 249,150 | 16,142 | 265,292 | |||||
All-in sustaining cost per ounce ($/ gold ounce sold) | 964 | 1,320 | 905 | — | 1,049 | 1,225 | 1,060 |
(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended
For the three months ended | ||||||||||
Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine capital expenditures | 53,795 | 8,953 | 17,346 | 80,094 | 2,006 | 82,100 | ||||
Road construction | (2,410 | ) | — | — | (2,410 | ) | — | (2,410 | ) | |
(1,609 | ) | — | — | (1,609 | ) | — | (1,609 | ) | ||
Other | — | (177 | ) | — | (177 | ) | — | (177 | ) | |
Sustaining capital expenditures | 49,776 | 8,776 | 17,346 | 75,898 | 2,006 | 77,904 |
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended
For the three months ended | ||||||
Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Operating mine exploration | 1,706 | 959 | 494 | 3,159 | — | 3,159 |
Regional exploration | — | — | — | — | — | — |
Sustaining mine exploration | 1,706 | 959 | 494 | 3,159 | — | 3,159 |
Adjusted net income and adjusted earnings per share - basic
Adjusted net income and adjusted earnings per share – basic are non-IFRS measures that do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines adjusted net income as net income attributable to shareholders of the Company adjusted for non-recurring items and also significant recurring non-cash items. The Company defines adjusted earnings per share – basic as adjusted net income divided by the basic weighted number of common shares outstanding.
Management believes that the presentation of adjusted net income and adjusted earnings per share - basic is appropriate to provide additional information to investors regarding items that we do not expect to continue at the same level in the future or that management does not believe to be a reflection of the Company's ongoing operating performance. Management further believes that its presentation of these non-IFRS financial measures provide information that is useful to investors because they are important indicators of the strength of our operations and the performance of our core business. Accordingly, it is intended to provide additional information and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.
A reconciliation of net income to adjusted net income as extracted from the unaudited condensed interim consolidated financial statements is set out in the table below:
Three months ended | |||
2024 | 2023 | ||
$ | $ | ||
(000’s) | (000’s) | ||
Net income attributable to shareholders of the Company for the period: | 39,751 | 85,973 | |
Adjustments for non-recurring and significant recurring non-cash items: | |||
Write-down of mining interests | — | 16,419 | |
Unrealized losses on derivative instruments | 118 | 2,788 | |
Office lease termination costs | — | 1,946 | |
Change in fair value of gold stream | 10,852 | — | |
Dilution loss on investment in associate | 9,982 | — | |
Deferred income tax expense (recovery) | 20,800 | (1,264 | ) |
Adjusted net income attributable to shareholders of the Company for the period | 81,503 | 105,862 | |
Basic weighted average number of common shares outstanding (in thousands) | 1,303,191 | 1,075,402 | |
Adjusted net earnings attributable to shareholders of the Company per share–basic ($/share) | 0.06 | 0.10 |
Photos accompanying this announcement are available at
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For more information onB2Gold please visit the Company website at www.b2gold.com or contact:Michael McDonald VP, Investor Relations & Corporate Development +1 604-681-8371 investor@b2gold.comCherry De Geer Director, Corporate Communications +1 604-681-8371 investor@b2gold.com
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