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Nov 6, 2019 5:13 AM ET

B2Gold Corp. Announces Strong Third Quarter and Year-to-Date 2019 Results and Declares its First Quarterly Dividend


iCrowd Newswire - Nov 6, 2019

VANCOUVER 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 2019. All dollar figures are in United States dollars unless otherwise indicated. B2Gold is also pleased to announce that, as part of the Company’s long-term strategy to maximize shareholder value, the board of directors of the Company (the “Board of Directors”) declared B2Gold’s first dividend of $0.01 per common share, and expects to declare future dividends quarterly at the same level, which on an annualized basis would amount to $0.04 per common share (see “B2Gold Declares First Dividend” section below).

On October 15, 2019, B2Gold and Calibre Mining Corp. (“Calibre”) completed the transaction for B2Gold to restructure its interests in, and for Calibre to acquire, El Limon and La Libertad mines (see “B2Gold and Calibre Join Forces in Nicaragua” section below). Accordingly, the Company has classified its El Limon and La Libertad mines as discontinued operations for the three and nine months ended September 30, 2019 and 2018 for financial reporting purposes.

2019 Third Quarter Highlights

2019 First Nine Months Highlights

2019 Third Quarter and First Nine Months Operational Results    

Consolidated gold production from continuing operations totaled 213,278 ounces in the third quarter of 2019, above budget by 4% (8,788 ounces) and the prior-year quarter by 3% (6,331 ounces). Including El Limon and La Libertad, consolidated gold production in the third quarter of 2019 was a quarterly record of 258,200 ounces, well-above budget by 7% (15,807 ounces) and 7% (16,160 ounces) higher compared to the prior-year quarter, with solid performances from all of the Company’s operations. Gold production from each of the Company’s mines exceeded their targeted production for the quarter. In addition, based on Fekola’s strong year-to-date performance, the Company has revised Fekola’s production guidance range higher to be between 445,000 to 455,000 ounces of gold (original guidance range was between 420,000 to 430,000 ounces).

Consolidated cash operating costs from continuing operations in the third quarter of 2019 were $443 per ounce produced ($433 per ounce sold), well-below budget by $47 per ounce (10%) and comparable with the third quarter of 2018. The favourable budget variance was mainly attributable to higher-than-budgeted production. Including El Limon and La Libertad, consolidated cash operating costs were $507 per ounce produced ($507 per ounce sold), below budget by $36 per ounce (7%) and comparable with the prior-year quarter.

Consolidated AISC from continuing operations in the third quarter of 2019 were $755 per ounce sold (Q3 2018 – $644 per ounce sold), below budget by $10 per ounce (1%). Including El Limon and La Libertad, consolidated AISC were $807 per ounce sold (Q3 2018 – $717 per ounce sold), in-line with budget.

Year-to-date, consolidated gold production from continuing operations totaled 622,710 ounces, well-above budget by 7% (39,181 ounces). Including El Limon and La Libertad, consolidated gold production was a year-to-date record of 735,079 ounces, well-above budget by 7% (45,705 ounces) and 2% (13,262 ounces) higher compared to the first nine months of 2018.

Year-to-date, consolidated cash operating costs from continuing operations were $451 per ounce produced ($452 per ounce sold) (first nine months of 2018 – $416 per ounce produced), well-below budget by $45 per ounce (9%). Including El Limon and La Libertad mines, consolidated cash operating costs were $527 per ounce produced ($531 per ounce sold), below budget by $33 per ounce (6%).

Year-to-date, consolidated AISC from continuing operations were $768 per ounce sold (year-to-date 2018 – $640 per ounce sold), well-below budget by $70 per ounce (8%). Including El Limon and La Libertad mines, consolidated AISC were $855 per ounce sold, below budget by $54 per ounce (6%).

B2Gold remains well positioned for continued strong operational and financial performance in 2019. For full-year 2019, the Company forecasts consolidated gold production to come in towards the midpoint of its previously stated guidance range of between 935,000 and 975,000 ounces. The gold production outperformance experienced in the first nine months of 2019 together with the uplift in guidance for Fekola are anticipated to more than offset the Company’s reduced share of production from El Limon and La Libertad following their sale to Calibre on October 15, 2019. Consolidated cash costs are projected to remain low in 2019 with cash operating costs forecast to be at or below the lower end of the Company’s $520 and $560 per ounce guidance range and AISC to be within the Company’s $835 and $875 per ounce guidance range.

B2Gold and Calibre Join Forces in Nicaragua

On October 15, 2019, B2Gold completed the sale of El Limon and La Libertad gold mines, the Pavon gold project and additional mineral concessions in Nicaragua (collectively, the “Nicaragua Assets”) to Calibre for aggregate consideration of $100 million (consisting of a combination of cash, common shares and a convertible debenture) (the “Calibre Transaction”), plus an additional payment for net working capital acquired under the share purchase agreement for the Calibre Transaction. As a result of closing the Calibre Transaction, B2Gold now holds approximately 30% of the total issued and outstanding Calibre common shares.

2019 Third Quarter and First Nine Months Financial Results

Consolidated gold revenue from continuing operations for the third quarter of 2019 was $311 million on sales of 208,900 ounces at an average price of $1,488 per ounce compared to $280 million on sales of 232,209 ounces at an average price of $1,206 per ounce in the third quarter of 2018. The increase in gold revenue of $31 million (11%) was attributable to a 23% increase in the average realized gold price partially offset by a 10% decrease in the gold ounces sold (due to the timing of gold sales). Including El Limon and La Libertad, consolidated gold revenue was $382 million on sales of 256,670 ounces at an average realized price of $1,489 per ounce.

Cash flow provided by operating activities from continuing operations was $138 million in the third quarter of 2019 compared to $137 million in the prior-year quarter. Cash flow provided by operating activities (including discontinued operations) was $168 million in the third quarter of 2019 compared to $143 million in the third quarter of 2018, an increase of $25 million.

For the third quarter of 2019, net income attributable to the shareholders of the Company was $56 million ($0.05 per share) compared to $11 million ($0.01 per share) in the prior-year quarter. Adjusted net income attributable to the shareholders of the Company was $89 million ($0.09 per share) compared to $38 million ($0.04 per share) in the third quarter of 2018.

Year-to-date, consolidated gold revenue from continuing operations was $842 million on sales of 616,000 ounces at an average price of $1,367 per ounce compared to $821 million on sales of 645,667 ounces at an average price of $1,271 per ounce in the first nine months of 2018. The $21 million (3%) increase in gold revenue was attributable to an 8% increase in the average realized gold price partially offset by a 5% decrease in the gold ounces sold (due to the timing of gold sales). Including El Limon and La Libertad, consolidated gold revenue was $994 million on sales of 725,028 ounces at an average realized price of $1,371 per ounce.

Cash flow provided by operating activities from continuing operations was $306 million in the first nine months of 2019 compared to $355 million in same period last year. Cash flow provided by operating activities (including discontinued operations) was $347 million in the first nine months of 2019 compared to $377 million in the first nine months of 2018. The decrease mainly reflects higher income tax installment payments, partially offset by higher revenues.

For the first nine months of 2019, net income attributable to the shareholders of the Company was $116 million ($0.11 per share) compared to $88 million ($0.09 per share) in the same period last year. Adjusted net income attributable to the shareholders of the Company was $169 million ($0.17 per share) compared to $138 million ($0.14 per share) in the first nine months of 2018.

B2Gold Declares First Dividend

B2Gold is also pleased to announce that, as part of the Company’s long-term strategy to maximize shareholder value, on November 5, 2019, the Board of Directors of the Company declared B2Gold’s first quarterly dividend of $0.01 per common share, which will be paid on December 13, 2019, to shareholders of record as at the close of business on November 29, 2019. 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.  

Following the payment of this dividend, the Board of Directors expects to declare future dividends quarterly at the same level, in the amount of $0.01 per common share, and has determined that this anticipated level of quarterly dividend is appropriate based on the Company’s current financial performance, liquidity and outlook. Subject to authorization by the Board of Directors and compliance with all applicable laws, the record date for future dividends is anticipated to be set as of the last business day of March, June, September and December in each year and the payment date in each case is anticipated to be approximately two weeks from such record date. The exact record date and other details of future dividends, if any, will be announced by the Company separately at such time any dividend is declared and authorized by the Board of Directors.

The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board of Directors, 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 the Company’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 of Directors 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. 

Liquidity and Capital Resources

At September 30, 2019, the Company had cash and cash equivalents of $146 million (excluding $19 million of cash associated with discontinued operations) compared to cash and cash equivalents of $103 million at December 31, 2018. Working capital at September 30, 2019 (excluding $34 million of working capital related to assets and liabilities classified as held for sale) was $236 million compared to $156 million at December 31, 2018 (December 31, 2018 balance sheet presentation remains unchanged).

During the nine months ended September 30, 2019, the Company repaid $100 million of the outstanding balance on its RCF. At September 30, 2019, the Company had drawn $300 million under the $600 million RCF, leaving an undrawn and available balance under the existing facility of $300 million. The Company expects to repay a further $100 million of the outstanding RCF balance in the fourth quarter of 2019, which will leave an estimated drawn balance on the RCF of $200 million at December 31, 2019, and an estimated available balance of $400 million. Total debt outstanding at December 31, 2019, including equipment loans and leases, is forecast to be approximately $260 million, a reduction in the year of $220 million from opening total debt of approximately $480 million.

The Company’s ongoing strategy is to continue to maximize profitable production from its mines, reduce debt, expand the Fekola Mine throughput and annual production, further advance its pipeline of development and exploration projects and evaluate exploration opportunities.

Contact Information:

Ian MacLean
Katie Bromley
Vice President, Investor Relations
Manager, Investor Relations & Public Relations
604-681-8371
604-681-8371
[email protected]
[email protected]








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