B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or
the “Company”) is pleased to announce its gold production and gold
revenue for the fourth quarter and full year 2023, its gold
production and cost guidance for 2024, preliminary 2025 production
outlook, and a gold prepayment arrangement. All dollar figures are
in United States dollars unless otherwise indicated. Canadian
dollars are converted to United States dollars at an exchange rate
of 1.35 to 1.
2023 Highlights
- Strong quarterly total gold
production in Q4 2023: Higher than anticipated total gold
production in the fourth quarter of 2023 of 288,665 ounces,
including 18,054 ounces of attributable production from Calibre
Mining Corp. (“Calibre”).
- Achieved upper half of 2023
annual gold production guidance: Total gold production for
2023 was 1,061,060 ounces (including 68,717 ounces of attributable
production from Calibre), achieving the upper half of 2023 guidance
and marking the Company’s eighth consecutive year of meeting or
exceeding annual production guidance.
- Strong quarterly gold
revenue to finish 2023: Consolidated gold revenue in the
fourth quarter of 2023 of $512 million on sales of 256,921 ounces
at an average realized gold price of $1,993 per gold ounce. For the
full year 2023, consolidated gold revenue was $1,934 million on
sales of 994,060 ounces at an average realized gold price of $1,946
per gold ounce.
- Re-affirm full year 2023
total consolidated cost guidance: Total consolidated cash
operating costs (see “Non-IFRS Measures”) for the year (including
attributable results for Calibre) are still expected to be slightly
below the guidance range of $670 and $730 per ounce and total
consolidated all-in sustaining costs (“AISC”) (see “Non-IFRS
Measures”) for the year (including attributable results for
Calibre) are still forecast to be at the low end of the guidance
range of between $1,195 and $1,255 per ounce.
- Achieved significant safety
milestone of 5 years without a Lost Time Injury at
Masbate: On November 17, 2023, the Masbate Mine, located
in the Philippines, achieved a major safety milestone, exceeding 32
million hours, 1,826 days, worked without a Lost Time Injury.
B2Gold has a longstanding commitment to continuous safety
improvement at all of its sites, and its goal of sending everyone
home safe at each of its operations and projects.
2024 Guidance and 2025 Preliminary
Outlook Highlights
- Total gold production is
anticipated to be 860,000 to 940,000 ounces in 2024: Total
gold production guidance for 2024 of 860,000 to 940,000 ounces,
including 40,000 to 50,000 ounces of attributable production from
Calibre. The expected decrease in gold production relative to 2023
is predominantly due to lower production at the Fekola Complex as a
result of the delay in receiving an exploitation license for Fekola
Regional from the Government of Mali, delaying the 80,000 to
100,000 ounces that were scheduled in the life of mine plan to be
trucked to the Fekola mill and processed in 2024. The contribution
of this gold production from Fekola Regional is now assumed to
start at the beginning of 2025.
- Total consolidated cash
operating costs and all-in sustaining costs reflect a transition
year at the Company in 2024: Total consolidated cash
operating cost guidance of $835 to $895 per gold ounce, higher than
the 2023 guidance range due to the processing of lower-grade ore at
Fekola in 2024. Total AISC guidance of $1,360 to $1,420 per gold
ounce, reflecting the final full year of spending on both the new
Fekola Tailings Storage Facility (“TSF”) and the Fekola solar plant
expansion, in addition to the ongoing substantial capitalized
stripping campaign planned at Fekola for 2024.
- B2Gold consolidated gold
production expected to increase to record levels in 2025:
Based on current estimates, consolidated gold production in 2025 is
expected to be between 1,130,000 and 1,260,000 ounces, driven by a
significant increase in gold production from the Fekola Complex,
relative to 2024, as a result of the scheduled mining and
processing of higher-grade ore from the Fekola and Cardinal pits
made accessible by the meaningful stripping campaign that will be
undertaken throughout 2024, a full year contribution of
higher-grade ore from Fekola Regional, and commencement of mining
the higher-grade Fekola underground (subject to receipt of
necessary permits for Fekola Regional and Fekola underground). In
addition, the Goose Project is expected to commence gold production
in the first quarter of 2025 and contribute between 220,000 and
260,000 ounces of gold production in calendar year 2025. As a
result of the expected completion of several capital projects in
2024 and early 2025, it is expected that there will be a
significant decrease in both sustaining and growth capital
expenditures in 2025 as well.
- Construction at the Goose
Project is progressing on track, with the project remaining on
schedule for first gold pour in the first quarter of 2025:
Construction continues ahead of schedule within the mill and
processing buildings, along with preparatory work for peak
construction activities in the second and third quarter of 2024.
Mine development is well underway at the Echo Pit and Umwelt
Underground mine to generate high-grade stockpiles prior to mill
commissioning. Following the successful completion of the 2023 sea
lift, the construction of the Winter Ice Road (“WIR”) is well
underway and expected to be completed on schedule and fully
operational as of the second full week of February 2024,
transporting all required materials from the Marine Laydown Area
(“MLA”) to the Goose Project site by the end of April 2024.
- Goose Project construction
capital estimate revised to C$1,050 million: After
completing a detailed review of the Goose Project design,
materials, and construction schedule as part of the 2024 budgeting
process, the Company is revising the total construction capital
estimate from C$800 million to C$1,050 million. Most of the
increase in the construction capital estimate relates to
underestimated labour and site operating costs in the feasibility
study, along with additional general inflationary impacts on
construction materials, consumables and transportation costs. In
addition, a detailed review of the project design has identified
deficiencies in project components including power generation and
distribution, laboratory, piping, and controls and instrumentation,
which are being corrected to deliver a reliable operation. As of
December 31, 2023, approximately C$715 million total cash has been
spent on the Goose Project (by B2Gold and Sabina Gold & Silver
Corp. (“Sabina”)). Future construction capital cost variance is
expected to be minimal as over half of the construction capital
costs to be incurred in 2024 are related to labour in order to
bring the project close to commissioning by the end of the year,
and all major components have been purchased or are under
contract.
- Results of the Fekola
Complex optimization study outlining the trucking of ore from the
Anaconda Area (comprised of the Bantako, Menankoto and Bakolobi
permits) to be released in the first quarter of 2024:
Initial results of a Fekola Complex optimization study indicate
that the trucking of both oxide and sulphide ore from the Anaconda
Area to the Fekola mill is the optimal option to maximize the value
of Fekola Regional, and to extend the processing life of the Fekola
mill. The study is expected to be released in the first quarter of
2024.
- Preliminary economic
assessment (“PEA”) on the Gramalote Project expected by the end of
the second quarter of 2024: The Company completed a
detailed review of the Gramalote 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. A formal study commenced in the fourth
quarter of 2023, with the goal of completing a PEA by the end of
the second quarter of 2024.
- Continued focus on
exploration investment across B2Gold’s highly prospective land
packages: $63 million allocated to exploration in 2024 to
support organic growth by advancing the Company’s pipeline of
development, brownfield and greenfield exploration projects, with a
considerable portion allocated to continue the significant
exploration campaign at the Back River Gold District.
Gold Prepay Highlights
- Upfront payment of $500
million, used to fund sustaining, development and growth projects
across the operating portfolio, and increase financial capacity for
potential growth projects in Namibia and Colombia: On
January 23, 2024, B2Gold completed a gold prepayment for $500
million, based on gold forward curve prices averaging approximately
$2,191 per ounce, in exchange for equal monthly deliveries of gold
from July 2025 to June 2026 totaling 264,775 ounces, representing
approximately 10% of expected annual gold production in each of
2025 and 2026 (subject to finalization of production guidance for
2025 and 2026). The gold forward sale and prepay arrangement (the
“Gold Prepay”) was executed by existing revolving credit facility
participants Bank of Montreal, Canadian Imperial Bank of Commerce,
ING Capital Markets LLC, and National Bank of Canada.
Fourth Quarter and Full Year 2023 Gold
Production
Mine-by-mine production in the fourth quarter
and full year 2023 was as follows:
|
|
Gold Production (ounces) |
|
Mine |
Q4 2023 |
FY 2023 |
FY 2023 Guidance |
|
Fekola Complex |
143,010 |
590,243 |
580,000 - 610,000 |
|
Masbate |
46,490 |
193,502 |
170,000 - 190,000 |
|
Otjikoto |
81,111 |
208,598 |
190,000 - 210,000 |
|
B2Gold Consolidated (1) |
270,611 |
992,343 |
940,000 – 1,010,000 |
|
Equity interest in Calibre (2) |
18,054 |
68,717 |
60,000 - 70,000 |
|
Total |
288,665 |
1,061,060 |
1,000,000 – 1,080,000 |
(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 approximately 24% indirect share of Calibre’s operations
throughout 2023. B2Gold applies the equity method of accounting for
its 24% ownership interest in Calibre throughout 2023.
Fekola Mine – Mali
|
|
Q4 2023 |
|
Tonnes of ore milled (Mt) |
2.42 |
|
Grade (grams/tonne) |
1.99 |
|
Recovery (%) |
93.4 |
|
Gold production (ounces) |
143,010 |
|
Gold sold (ounces) |
128,321 |
The Fekola Mine in Mali (owned 80% by the
Company and 20% by the State of Mali) produced 143,010 ounces in
the fourth quarter, higher than anticipated largely due to
processing additional higher-grade ore from Fekola Phase 6 and
Cardinal pits. The Fekola processing facilities continued to
outperform expectations with 2.42 million tonnes processed during
the fourth quarter. Mined ore tonnage and grade continue to
reconcile well with the Fekola resource model.
For the full year 2023, the Fekola Mine produced
590,243 ounces of gold, near the mid-point of the annual guidance
range of 580,000 to 610,000 ounces.
Masbate Mine – The Philippines
|
|
Q4 2023 |
|
Tonnes of ore milled (Mt) |
2.08 |
|
Grade (grams/tonne) |
0.90 |
|
Recovery (%) |
77.0 |
|
Gold production (ounces) |
46,490 |
|
Gold sold (ounces) |
53,500 |
The Masbate Mine in the Philippines continued
its strong performance in the fourth quarter of 2023, producing
46,490 ounces of gold, in line with expectations, as a result of
slightly higher than anticipated mill throughput and gold
recoveries, offset by slightly lower than expected ore grade
processed.
For the full year 2023, the Masbate Mine
produced 193,502 ounces of gold, exceeding the upper end of its
guidance range of 170,000 to 190,000 ounces.
Otjikoto Mine – Namibia
|
|
Q4 2023 |
|
Tonnes of ore milled (Mt) |
0.89 |
|
Grade (grams/tonne) |
2.88 |
|
Recovery (%) |
98.5 |
|
Gold production (ounces) |
81,111 |
|
Gold sold (ounces) |
75,100 |
The Otjikoto Mine in Namibia, in which the
Company holds a 90% interest, produced 81,111 ounces of gold in the
fourth quarter of 2023, a quarterly record, with production from
the Wolfshag underground mine remaining consistent through the
quarter.
For the full year 2023, the Otjikoto Mine
produced 208,598 ounces of gold, near the upper end of its guidance
range of 190,000 to 210,000 ounces.
Fourth Quarter and Full Year 2023 Gold
Revenue
For the fourth quarter of 2023, consolidated
gold revenue was $512 million on sales of 256,921 ounces at an
average realized gold price of $1,993 per ounce. For the full year
2023, consolidated gold revenue was $1,934 million on sales of
994,060 ounces at an average realized gold price of $1,946 per
ounce.
2024 Production and Cost
Guidance
|
Guidance (100% Basis) |
FekolaComplex
(1) |
Masbate |
Otjikoto |
Calibre (2) |
Back River |
Other |
Total (3) |
|
Gold Production (koz) |
470 - 500 |
170 - 190 |
180 - 200 |
40 - 50 |
- |
- |
860 - 940 |
|
Cash Operating Costs ($/oz
produced) |
835 – 895 |
945 – 1,005 |
685 – 745 |
1,000 – 1,100 |
- |
- |
835 - 895 |
|
Sustaining Capital Expenditures ($M) |
122 |
27 |
- |
- |
17 |
- |
166 |
|
Capitalized Stripping / Capitalized Development ($M) |
80 |
6 |
32 |
- |
- |
- |
118 |
|
Sustaining Mine Exploration Expenditures ($M) |
1 |
2 |
- |
- |
- |
- |
3 |
|
General & Administrative ($M) |
10 |
7 |
4 |
- |
- |
49 |
70 |
|
All-In Sustaining Costs ($/oz sold) |
1,420 – 1,480 |
1,300 – 1,360 |
960 – 1,020 |
1,275 – 1,375 |
- |
- |
1,360 – 1,420 |
|
Growth / Construction Capital Expenditures ($M) |
107 |
16 |
1 |
- |
207 |
13 |
344 |
|
Non Capitalized Stripping / Underground Development ($M) |
- |
- |
- |
- |
109 |
- |
109 |
|
Growth Exploration Expenditures ($M) |
9 |
1 |
9 |
- |
28 |
13 |
60 |
|
Total Growth / Non-Sustaining Capital Expenditures
($M) |
116 |
17 |
10 |
- |
344 |
26 |
513 |
(1) The Fekola Complex is comprised of the
Fekola Mine (Medinandi permit hosting the Fekola and Cardinal pits
and the Fekola underground) and Fekola Regional (Anaconda Area
(Bantako, Menankoto and Bakolobi permits) and the Dandoko
permit).(2) “Equity interest in Calibre” represents the Company’s
expected 15% indirect share of Calibre’s operations effective
January 24, 2024. B2Gold applies the equity method of accounting
for its expected 15% ownership interest in Calibre effective
January 24, 2024.(3) Totals may not add due to rounding.
In 2024, B2Gold expects total gold production to
be between 860,000 and 940,000 ounces (including 40,000 to 50,000
attributable ounces from Calibre).
The Company’s total consolidated cash operating
costs for the year (including estimated attributable results for
Calibre) are forecast to be between $835 and $895 per ounce and
total consolidated AISC (including estimated attributable results
for Calibre) are forecast to be between $1,360 and $1,420 per
ounce.
The Company’s consolidated gold production is
expected to be relatively consistent throughout 2024, with third
quarter production expected to be slightly lower, and fourth
quarter production expected to be slightly higher.
Fekola Complex – Mali
The Fekola Complex in Mali includes both the
Fekola Mine and Fekola Regional. The Fekola Complex’s total 2024
gold production is anticipated to decrease relative to 2023,
predominantly due to lower production at the Fekola Complex as a
result of the delay in receiving an exploitation license for Fekola
Regional, delaying the 80,000 to 100,000 ounces that were scheduled
in the life of mine plan to be trucked to the Fekola mill and
processed in 2024. The contribution of this gold production from
Fekola Regional is now assumed to start at the beginning of
2025.
At the Fekola Mine, ore will continue to be
mined from the Fekola and Cardinal pits. Receipt of an exploitation
license for Fekola Regional remains outstanding pending
finalization of an implementation decree for the new 2023 Mining
Code by the State of Mali. As a result, no production is forecast
from Fekola Regional in 2024. The new 2023 Mining Code is not
expected to impact the matters that have been stabilized for the
Fekola Mine operations under the existing Fekola mining convention
entered into under the 2012 Mining Code, and the impact of a new
2023 Mining Code on the Fekola Regional licenses is being clarified
by the Company. B2Gold recently held meetings with the
representatives of the Government of Mali regarding the 2023 Mining
Code. The Government of Mali assisted the Company in clarifying the
application of the 2023 Mining Code to existing and future projects
in Mali, and also expressed their desire for B2Gold to rapidly
progress the development of Fekola Regional and committed to
assisting the Company in such development.
The haul road from Fekola Regional (Bantako
North) to the Fekola Mine is operational and construction of the
haul roads and mining infrastructure (warehouse, workshop, fuel
depot and offices) was completed on schedule in the fourth quarter
of 2023. Mining operations will commence upon receipt of an
exploitation license, with gold production approximately three
months after commencement. If an exploitation license for Fekola
Regional is received in the first half of 2024, there is potential
for 2024 Fekola Complex production to be supplemented with up to
18,000 ounces of higher-grade ore from Fekola Regional.
In 2025, the Company expects a significant
increase in gold production at the Fekola Complex as a result of
the scheduled mining and processing of higher-grade ore from the
Fekola and Cardinal pits, full year contribution of higher-grade
ore from Fekola Regional and commencement of mining the
higher-grade Fekola underground (subject to receipt of necessary
permits).
Fekola is expected to process 9.4 million tonnes
of ore during 2024 at an average grade of 1.77 grams per tonne
(“g/t”) gold with a process gold recovery of 90.9%. Gold production
is expected to be evenly weighted between the first half of 2024
and the second half of 2024. In the second half of 2024, gold
production is weighted approximately 40% to the third quarter and
approximately 60% to the fourth quarter.
The expected increase in Fekola’s AISC for 2024
relative to 2023 reflects, predominantly, the expected decrease in
production at Fekola in 2024 due to the delay in receiving an
exploitation license for Fekola Regional, delaying the 80,000 to
100,000 ounces that were scheduled in the life of mine plan to be
trucked to the Fekola mill and processed in 2024, and higher
sustaining capital expenditures. Capital expenditures in 2024 at
Fekola are expected to total approximately $309 million, of which
approximately $202 million is classified as sustaining capital
expenditures and $107 million is classified as growth capital
expenditures. Sustaining capital expenditures are anticipated to
include:
- $80 million for capitalized
stripping;
- $45 million for construction of a
new TSF to be completed in the second quarter of 2025;
- Construction is currently on
schedule;
- $39 million for new and replacement
Fekola mining equipment, including capitalized rebuilds; and
- $19 million for the expansion of
the Fekola solar plant to be completed in the third quarter of
2024;
- Construction is currently on
schedule.
Growth capital expenditures are anticipated to
include:
- $64 million for underground mine
development;
- Fekola underground ore production
anticipated to commence in the first half of 2025, ahead of the
previously announced schedule; and
- $43 million for mine development
and infrastructure at Fekola Regional.
As a result of the expected completion of
several capital projects in 2024 and early 2025, it is expected
that there will be a significant decrease in both sustaining and
growth capital expenditures in 2025, resulting in lower AISC.
Masbate Mine – The Philippines
Gold production at Masbate is expected to be
relatively consistent throughout 2024. Masbate is expected to
process 7.9 million tonnes of ore at an average grade of 0.93 g/t
gold with a process gold recovery of 76.0%. Mill feed will be a
blend of mined fresh ore from the Main Vein pit and low-grade ore
stockpiles.
Capital expenditures for 2024 at Masbate are
expected to total $49 million, of which approximately $33 million
is classified as sustaining capital expenditures and $16 million is
classified as growth capital expenditures. Sustaining capital
expenditures are anticipated to include:
- $16 million for new and replacement
Masbate mining equipment, including capitalized rebuilds;
- $6 million for capitalized
stripping;
- $6 million for process plant;
and
- $3 million for TSF expansion.
Growth capital expenditures are anticipated to
include $16 million for land acquisition and relocation costs for
new open pits.
Otjikoto Mine – Namibia
Gold production at Otjikoto is expected to be
relatively consistent throughout 2024. Otjikoto is expected to
process a total of 3.4 million tonnes of ore at an average grade of
1.77 g/t gold with a process gold recovery of 98.0%. Processed ore
will be sourced from the Otjikoto pit and the Wolfshag underground
mine, supplemented by existing medium and high-grade ore
stockpiles. Open pit mining operations are scheduled to ramp down
throughout 2024 and conclude in 2025, while underground mining
operations at Wolfshag will continue through 2026. Exploration
results received to date indicate the potential to extend
underground production at Wolfshag past 2026, supplementing the
processing operations which will continue until 2031 when
economically viable stockpiles are forecast to be exhausted.
In addition, the Company recently received
positive exploration drilling results from a new area, located
approximately 3 kilometers (“km”) south of the Otjikoto Mine Phase
5 open pit, referred to as the Antelope deposit, which the Company
will be providing a more detailed update on in a separate news
release in the near-term.
Capital expenditures in 2024 at Otjikoto are
expected to total $33 million, of which approximately $32 million
is classified as sustaining capital expenditures and $1 million is
classified as growth capital expenditures. Sustaining capital
expenditures are anticipated to include $32 million for capitalized
stripping and deferred underground development.
Goose Project – Canada
B2Gold recognizes that respect and collaboration
with the Kitikmeot Inuit Association (“KIA”) is central to the
license to operate in the Back River Gold District and will
continue to prioritize developing the project in a manner that
recognizes Inuit priorities, addresses concerns and brings
long-term socio-economic benefits to the Kitikmeot Region. B2Gold
looks forward to continuing to build on its strong collaboration
with the KIA and Kitikmeot Communities. Additionally, B2Gold
congratulates Nunavut Tunngavik Inc. and the Governments of Nunavut
and Canada for reaching a landmark Nunavut Land and Resources
Devolution Agreement. The signing of this agreement is an
incredible milestone for Nunavummiut and all Canadians. With this
agreement, Nunavummiut now have a greater role in the management of
lands and resources across their vast territory. This will
strengthen decision making and enhance socio-economic
opportunities. B2Gold looks forward to advancing its relationships
with Nunavummiut to continue to contribute to Nunavut’s growing
resource economy.
Construction at the Goose Project continues to
progress on track, with the project remaining on schedule to pour
gold in the first quarter of 2025. Concrete and steel works in the
mill area to date are progressing ahead of schedule. Exterior
cladding of the mill building and truck shop is complete, and
cladding of the power house will start in the first quarter of
2024, allowing for work to continue through the colder months and
remain on schedule. Additionally, the ball mill will be set in
place in the first quarter of 2024, approximately four months ahead
of schedule, and the focus will shift to piping and mechanical
systems as materials begin to arrive via the WIR road from the
MLA.
The 163 km WIR between the MLA and the Goose
Project is scheduled to operate between early February and the end
of April 2024. The 2024 WIR construction team mobilized to the MLA
and Goose Project sites in December 2023 and construction of the
2024 WIR is well underway and expected to be completed on schedule
and fully operational as of the second full week of February
2024.
As of December 31, 2023, approximately C$715
million total cash has been spent on the Goose Project (by B2Gold
and Sabina). After completing a detailed review of the Goose
Project design, materials, and construction schedule as part of the
2024 budgeting process, the Company is revising the total
construction capital estimate from C$800 million to C$1,050
million. Most of the increase in the construction capital estimate
relates to underestimated labour and site operating costs in the
feasibility study, along with additional general inflationary
impacts on construction materials, consumables, and transportation
costs. In addition, a detailed review of the project design has
identified deficiencies in project components including power
generation and distribution, laboratory, piping, and controls and
instrumentation, which are being corrected to deliver a reliable
operation. In 2024, B2Gold expects to incur approximately C$280
million in construction capital costs. Future construction capital
cost variance is expected to be minimal as over half of the
construction capital costs to be incurred in 2024 are related to
labour in order to bring the project close to commissioning by the
end of the year, and all major components have been purchased or
are under contract.
In addition, the net cost of open pit and
underground development, deferred stripping, and sustaining capital
expenditures to be incurred prior to first gold production is
estimated at approximately C$200 million (including approximately
C$125 million of direct mining costs related to open pit and
underground development). The cost of these initiatives is
primarily related to optimization changes in the underground mine
plan as a result of switching the underground mining method to
long-hole stoping and prioritizing ore from the Umwelt crown pillar
area ahead of the zones below. It is anticipated that the increase
in underground development costs will be offset during operations
through lower sustainable operating costs than could be achieved
with the cut-and-fill underground mining method. Additionally,
B2Gold has elected to advance open pit mining of the Echo Pit,
which is underway and will produce construction fill, stockpile ore
and provide tailings storage capacity. Open pit mining of the
Umwelt Pit is expected to commence in the first quarter of 2024 and
will produce much of the commissioning ore as well as future
tailings storage. In 2024, B2Gold expects to incur approximately
C$170 million in open pit and underground development, deferred
stripping, and sustaining capital expenditures.
In 2024, the Company will undertake a buildup of
working capital over the Goose Project construction period up to
the first quarter of 2025 in order to materially de-risk the
execution of the production ramp-up phase and initial years of
operation by including 2025 and certain 2026 consumables and
sustaining capital equipment on the 2024 sealift. Areas of focus
for working capital include: accelerated purchase and additional
storage of diesel fuel to manage the requirements for operations in
2025 and part of 2026; critical inventory of consumables and spares
for mining and processing to avoid the requirement for air
transport; and development of open pit and underground ore
stockpiles to provide a consistent and uninterrupted feed to the
process plant. It is estimated that approximately C$205 million of
fuel, reagents, and other working capital items will be purchased
in 2024 to build up site inventory levels, which will substantially
de-risk the project from operational and supply chain
disruptions.
Gramalote Project – Colombia
B2Gold's in-house projects team has commenced
work on various smaller scale project development plans for the
Gramalote Project, with the goal of identifying a higher-return
project than the previously contemplated joint venture development
plan. Based on the results of the 2022 Gramalote feasibility study,
the contemplated larger scale project did not meet the combined
investment return thresholds for development by both B2Gold and
AngloGold Ashanti Limited. B2Gold has commenced a detailed review
of the Gramalote 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 the goal of
completing an initial assessment by the end of the second quarter
of 2024.
Capital expenditures in 2024 at Gramalote are
expected to be relatively stable throughout the year, totaling $13
million related to project study costs and ongoing care and
maintenance.
Exploration
B2Gold is planning another year of extensive
exploration in 2024 with a budget of approximately $63 million. A
significant focus will be exploration at the Back River Gold
District, with the goal of enhancing and growing the significant
resource base at the Goose Project and surrounding regional
targets. In Namibia, the exploration program at the Otjikoto Mine
will be the largest program since 2012. In Mali, the exploration
program will be a more strategic search for near-mine, near-surface
sources of additional sulphide-related gold mineralization. In the
Philippines, the exploration program at Masbate will focus on
converting inferred mineral resource areas and expanding the
existing open pits. Early stage exploration programs will continue
in Finland, the Philippines and Cote d’Ivoire in 2024. Finally, the
search for new joint ventures and strategic investment
opportunities will continue, building on existing equity
investments in Snowline Gold Corp. and Matador Mining Ltd.
Canada Exploration
A total of $28 million is budgeted for
exploration at the Back River Gold District in 2024. A total of
25,000 meters (“m”) of drilling will target extensions of the Llama
and Umwelt deposits, the largest and highest grade resources at the
Goose Project. In addition to drilling, deep-imaging geophysical
methods are planned in order to improve the Company’s ability to
target new underground resources in areas such as Nuvuyak, Goose
Neck and Kogoyak. Regional exploration including geophysics,
mapping, and potentially, limited drilling will be undertaken on
the George, Boot, Boulder and Del projects.
Mali Exploration
A total of $10 million is budgeted for
exploration in Mali in 2024 with an ongoing focus on discovery of
additional high-grade, sulphide mineralization across the Fekola
Complex to supplement feed to the Fekola mill. A total of 20,000 m
of diamond and reverse circulation drilling is planned for Mali in
2024.
Namibia Exploration
A total of $9 million is budgeted for
exploration at Otjikoto in 2024, the largest program since the
definition of the Wolfshag discovery in 2012. The focus of the
exploration program will be drilling the recently discovered
Antelope deposit, located approximately 3 km south of Phase 5 of
the Otjikoto open pit, with a total of 39,000 m of drilling
planned.
The Philippines Exploration
The total budget for the Philippines in 2024 is
approximately $6 million, of which the Masbate exploration budget
is $4 million, including approximately 7,000 m of drilling. The
2024 exploration program will continue to focus on converting
inferred mineral resource areas below existing design pits, to
support expanding the existing open pits. Several grassroots
greenfield targets will be further tested as well.
An additional $2 million will be allocated to
targeting new regional projects in highly prospective areas in the
Philippines, leveraging off B2Gold’s presence and operational
experience in the country. A total of 4,000 m is allocated to
testing new projects.
Grassroots Exploration
B2Gold has allocated approximately $13 million
(including $2 million for the grassroots projects in the
Philippines) in 2024 for its grassroots exploration programs,
including Finland and Cote d’Ivoire.
In Finland, the Company has allocated $4 million
to fund its 70% contribution to the Central Lapland Joint Venture
with Aurion Resources Ltd. A total of 9,700 m of diamond drilling
will test targets defined during an extensive prospectivity
analysis completed in 2023.
A budget of approximately $3 million has been
allocated by the Company for ongoing exploration in Cote d’Ivoire.
A total of 17,000 m of diamond, reverse circulation and
reconnaissance auger drilling is planned in 2024.
In addition to the defined programs noted above,
the Company has allocated approximately $4 million for the
generation and evaluation of new greenfields targets.
Preliminary 2025 Production
Outlook
The preliminary 2025 outlook is based on a
number of assumptions and estimates as of December 31, 2023,
including among other things, assumptions about receipt of required
permits. Outlook involves estimates of known and unknown risks,
uncertainties and other factors, which may cause the actual results
to be materially different.
|
Preliminary 2025 Production Outlook (100%
Basis) |
FekolaComplex
(1) |
Masbate |
Otjikoto |
Goose |
Total |
|
Gold Production (koz) |
560 - 610 |
170 - 190 |
180 - 200 |
220 - 260 |
1,130 – 1,260 |
(1) The Fekola Complex is comprised of the
Fekola Mine (Medinandi permit hosting the Fekola and Cardinal pits
and the Fekola underground) and Fekola Regional (Anaconda Area
(Bantako, Menankoto and Bakolobi permits) and the Dandoko
permit).
In 2025, the Company expects a significant
increase in gold production at the Fekola Complex, relative to
2024, as a result of the scheduled mining and processing of
higher-grade ore from the Fekola and Cardinal pits, full year
contribution of higher-grade ore from Fekola Regional and
commencement of mining the higher-grade Fekola underground (subject
to receipt of necessary permits). For the full year 2025, the
Fekola Complex is estimated to produce between 560,000 and 610,000
ounces of gold.
At Masbate, gold production is expected to be
between 170,000 and 190,000 ounces in 2025, similar to 2024. Ore is
expected to be mined from the Main Vein, Blue Quartz, and Old Lady
open pits. Mill throughput, gold grade processed, and gold
recoveries are all expected to be similar to 2024 levels.
At Otjikoto, gold production is expected to be
between 180,000 and 200,000 ounces in 2025, similar to 2024. Ore is
expected to be mined from Phase 5 of the Otjikoto open pit and from
the Wolfshag underground mine. Mill throughput, gold grade
processed, and gold recoveries are all expected to be similar to
2024 levels.
First gold production at the Goose Project is
anticipated in the first quarter of 2025. From first gold
production, the Company expects to be operating at full nameplate
capacity of 4,000 tonnes per day by the end of the second quarter
of 2025, with expected gold production for calendar year 2025 of
between 220,000 and 260,000 ounces. The Company still expects gold
production to be approximately 300,000 ounces per year over the
first five years of operation. An updated Goose Project life of
mine plan will be finalized in the first quarter of 2024.
Gold Prepay Arrangement
To further enhance the financial flexibility of
the Company 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 in Namibia and
Colombia, B2Gold has entered into a Gold Prepay with a number of
its existing lenders. The Company will receive an upfront payment
of $500 million, based on gold forward curve prices averaging
approximately $2,191 per ounce, in exchange for equal monthly
deliveries of gold from July 2025 to June 2026 totaling 264,775
ounces, representing approximately 10% of expected annual gold
production in each of 2025 and 2026 (subject to finalization of
production guidance for 2025 and 2026). Gold deliveries can be from
production from any of the Company’s operating mines and the Gold
Prepay can be settled prior to maturity through accelerated
delivery of the remaining deliverable gold ounces.
The Gold Prepay was executed by Bank of
Montreal, Canadian Imperial Bank of Commerce, ING Capital Markets
LLC, and National Bank of Canada.
Conference Call
B2Gold executives will host a conference call to
discuss the Company’s fourth quarter and full year 2023 production
results and 2024 guidance on Wednesday, January 24, 2024, at 6:00
am PT / 9:00 am ET. Participants may dial in using the numbers
below:
- Toll-free in U.S. and Canada: +1
(800) 319-4610
- All other callers: +1 (604)
638-5340
Participants may also elect to pre-register for
the conference call: 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.
The conference call will be available for
playback for two weeks by dialing toll-free in the U.S. and Canada:
+1 (800) 319-6413, replay access code 0643. All other callers: +1
(604) 638-9010, replay access code 0643.
About B2Gold
B2Gold is a low-cost international senior gold
producer headquartered in Vancouver, Canada. Founded in 2007,
today, B2Gold has operating gold mines in Mali, Namibia and the
Philippines, a mine under construction in northern Canada and
numerous development and exploration projects in various countries
including Mali, Colombia and Finland. B2Gold forecasts total
consolidated gold production of between 860,000 and 940,000 ounces
in 2024.
Qualified Persons
Bill Lytle, Senior Vice President and Chief
Operating Officer, a qualified person under NI 43-101, has approved
the scientific and technical information related to operations
matters contained in this news release.
Andrew Brown, P.Geo., Vice President,
Exploration, a qualified person under NI 43-101, has approved the
scientific and technical information related to exploration and
mineral resource matters contained in this news release.
ON BEHALF OF B2GOLD CORP.
“Clive T.
Johnson”President and Chief Executive
Officer
The Toronto Stock Exchange and NYSE American LLC
neither approve nor disapprove the information contained in this
news release.
Production results and production guidance
presented in this news release reflect total production at the
mines B2Gold operates on a 100% project basis. Please see our
Annual Information Form dated March 16, 2023 for a discussion of
our ownership interest in the mines B2Gold operates.
This news release includes certain
"forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of
applicable Canadian and United States securities legislation,
including: projections; outlook; guidance; forecasts; estimates;
and other statements regarding future or estimated financial and
operational performance, gold production and sales, revenues and
cash flows, and capital costs (sustaining and non-sustaining) and
operating costs, including projected cash operating costs and AISC,
and budgets on a consolidated and mine by mine basis, which if they
occur, would have on our business, our planned capital and
exploration expenditures; future or estimated mine life, metal
price assumptions, ore grades or sources, gold recovery rates,
stripping ratios, throughput, ore processing; statements regarding
anticipated exploration, drilling, development, construction,
permitting and other activities or achievements of B2Gold; and
including, without limitation: projected gold production, cash
operating costs and AISC on a consolidated and mine by mine basis
in 2024; total consolidated cash operating costs for 2023 being
between $670 and $730 per ounce and at AISC of between $1,195 and
$1,255 per ounce; total consolidated gold production of between
860,000 and 940,000 ounces in 2024, with cash operating costs of
between $835 and $895 per ounce and AISC of between $1,360 and
$1,420 per ounce; the Company’s gold production to be relatively
consistent throughout 2024; consolidated gold production of between
1,130,000 and 1,260,000 ounces in 2025, including a significant
increase in the gold production at the Fekola Complex, with
expected lower consolidated AISC; B2Gold’s continued prioritization
of developing the Goose Project in a manner that recognizes
Indigenous input and concerns and brings long-term socio-economic
benefits to the area; the Goose Project capital cost being
approximately C$1,050 million, and the net cost of open pit and
underground development, deferred stripping, and sustaining capital
expenditures to be incurred prior to first gold production being
approximately C$200 million; the construction capital cost to
complete the Goose Project being approximately C$335 million; the
WIR at the Goose Project being operational by the second full week
of February 2024; the potential for first gold production in the
first quarter of 2025 from the Goose Project; the Company’s total
capitalized stripping expenditures moderating in 2024; the
potential for Fekola Regional to provide saprolite material to feed
the Fekola mill within three months after receipt of an
exploitation license; the timing and results of a study for the
Fekola Complex optimization study; the significant increase in gold
production in 2025 from the Fekola Complex as a result of the
scheduled ore from Fekola Regional and commencement of mining at
Fekola underground; the impact of the 2023 Mali Mining Code; the
potential to extend Wolfshag underground mine past 2026; the timing
and results of a PEA for the Gramalote Project; and B2Gold’s
attributable share of Calibre’s production. All statements in this
news release that address events or developments that we expect to
occur in the future are forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
generally, although not always, identified by words such as
"expect", "plan", "anticipate", "project", "target", "potential",
"schedule", "forecast", "budget", "estimate", "intend" or "believe"
and similar expressions or their negative connotations, or that
events or conditions "will", "would", "may", "could", "should" or
"might" occur. All such forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made.
Forward-looking statements necessarily involve
assumptions, risks and uncertainties, certain of which are beyond
B2Gold's control, including risks associated with or related to:
the volatility of metal prices and B2Gold's common shares; changes
in tax laws; the dangers inherent in exploration, development and
mining activities; the uncertainty of reserve and resource
estimates; not achieving production, cost or other estimates;
actual production, development plans and costs differing materially
from the estimates in B2Gold's feasibility and other studies; the
ability to obtain and maintain any necessary permits, consents or
authorizations required for mining activities; environmental
regulations or hazards and compliance with complex regulations
associated with mining activities; climate change and climate
change regulations; the ability to replace mineral reserves and
identify acquisition opportunities; the unknown liabilities of
companies acquired by B2Gold; the ability to successfully integrate
new acquisitions; fluctuations in exchange rates; the availability
of financing; financing and debt activities, including potential
restrictions imposed on B2Gold's operations as a result thereof and
the ability to generate sufficient cash flows; operations in
foreign and developing countries and the compliance with foreign
laws, including those associated with operations in Mali, Namibia,
the Philippines and Colombia and including risks related to changes
in foreign laws and changing policies related to mining and local
ownership requirements or resource nationalization generally;
remote operations and the availability of adequate infrastructure;
fluctuations in price and availability of energy and other inputs
necessary for mining operations; shortages or cost increases in
necessary equipment, supplies and labour; regulatory, political and
country risks, including local instability or acts of terrorism and
the effects thereof; the reliance upon contractors, third parties
and joint venture partners; the lack of sole decision-making
authority related to Filminera Resources Corporation, which owns
the Masbate Project; challenges to title or surface rights; the
dependence on key personnel and the ability to attract and retain
skilled personnel; the risk of an uninsurable or uninsured loss;
adverse climate and weather conditions; litigation risk;
competition with other mining companies; community support for
B2Gold's operations, including risks related to strikes and the
halting of such operations from time to time; conflicts with small
scale miners; failures of information systems or information
security threats; the ability to maintain adequate internal
controls over financial reporting as required by law, including
Section 404 of the Sarbanes-Oxley Act; compliance with
anti-corruption laws, and sanctions or other similar measures;
social media and B2Gold's reputation; risks affecting Calibre
having an impact on the value of the Company's investment in
Calibre, and potential dilution of our equity interest in Calibre;
as well as other factors identified and as described in more detail
under the heading "Risk Factors" in B2Gold's most recent Annual
Information Form, B2Gold's current Form 40-F Annual Report and
B2Gold's other filings with Canadian securities regulators and the
U.S. Securities and Exchange Commission (the "SEC"), which may be
viewed at www.sedar.com and www.sec.gov, respectively (the
"Websites"). The list is not exhaustive of the factors that may
affect B2Gold's forward-looking statements.
B2Gold's forward-looking statements are based on
the applicable assumptions and factors management considers
reasonable as of the date hereof, based on the information
available to management at such time. These assumptions and factors
include, but are not limited to, assumptions and factors related to
B2Gold's ability to carry on current and future operations,
including: development and exploration activities; the timing,
extent, duration and economic viability of such operations,
including any mineral resources or reserves identified thereby; the
accuracy and reliability of estimates, projections, forecasts,
studies and assessments; B2Gold's ability to meet or achieve
estimates, projections and forecasts; the availability and cost of
inputs; the price and market for outputs, including gold; foreign
exchange rates; taxation levels; the timely receipt of necessary
approvals or permits; the ability to meet current and future
obligations; the ability to obtain timely financing on reasonable
terms when required; the current and future social, economic and
political conditions; and other assumptions and factors generally
associated with the mining industry.
B2Gold's forward-looking statements are based on
the opinions and estimates of management and reflect their current
expectations regarding future events and operating performance and
speak only as of the date hereof. B2Gold does not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable law. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results, performance or achievements could differ materially from
those expressed in, or implied by, these forward-looking
statements. Accordingly, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what benefits or liabilities B2Gold
will derive therefrom. For the reasons set forth above, undue
reliance should not be placed on forward-looking statements.
Cautionary Statement Regarding Mineral Reserve
and Resource EstimatesThe disclosure in this news release was
prepared in accordance with Canadian National Instrument 43-101,
which differs significantly from the requirements of the United
States Securities and Exchange Commission ("SEC"), and resource and
reserve information contained or referenced in this news release
may not be comparable to similar information disclosed by public
companies subject to the technical disclosure requirements of the
SEC. Historical results or feasibility models presented herein are
not guarantees or expectations of future performance.
For more information on B2Gold please visit the Company website at www.b2gold.com or contact:
Michael McDonald
VP, Investor Relations & Corporate Development
+1 604-681-8371
investor@b2gold.com
Cherry De Geer
Director, Corporate Communications
+1 604-681-8371
investor@b2gold.com
B2Gold (AMEX:BTG)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
B2Gold (AMEX:BTG)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024
