VANCOUVER, May 7, 2019 /CNW/ - B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) ("B2Gold" or the "Company") is pleased to announce its operational and financial results for the first quarter of 2019. The Company previously released its gold production and gold revenue for the first quarter of 2019 (see news release dated 04/17/19). All dollar figures are in United States dollars unless otherwise indicated.

2019 First Quarter Highlights

•Consolidated gold production of 230,859 ounces, 6% (12,704 ounces) above budget
•Consolidated gold revenue of $302 million on sales of 232,076 ounces (6% or 13,564 ounces above budget)
•Consolidated cash operating costs (see "Non-IFRS Measures") of $545 per ounce sold, below budget by $27 per ounce (5%)
•Consolidated all-in sustaining costs ("AISC") (see "Non-IFRS Measures") of $848 per ounce sold, significantly below budget by $133 per ounce (14%)
•Consolidated cash flows from operating activities of $86 million ($0.09 per share); for full-year 2019, if a gold price assumption of $1,300 per ounce is used, the Company expects to generate cash flows from operations of approximately $400 million for the year
•Strong cash position of $142 million at quarter-end
•On March 26, 2019, the Company announced very positive results from the Expansion Study Preliminary Economic Assessment ("PEA") for the Fekola Mine, including significant estimated increases in average annual gold production to over 550,000 ounces per year during the five-year period 2020-2024, and is proceeding with an expansion project to increase Fekola's processing throughput by 1.5 million tonnes per annum ("Mtpa") to 7.5 Mtpa from the current base rate of 6 Mtpa; the Company will issue an updated Fekola Expansion Technical Report pursuant to the requirements of NI 43-101 by May 10, 2019
•In May 2019, the Company received commitments from its existing syndicate of banks plus one new lender, to upsize the revolving credit facility ("RCF") capacity from $500 million to $600 million and to increase the accordion feature from $100 million to $200 million; the upsized RCF is expected to close by mid-May 2019
•For full-year 2019, B2Gold remains well positioned for continued strong operational and financial performance with consolidated gold production forecast to be in the range of between 935,000 and 975,000 ounces with cash operating costs forecast to be between $520 and $560 per ounce sold and AISC forecast to be between $835 and $875 per ounce sold


2019 First Quarter Operational Results

Consolidated gold production in the first quarter of 2019 was 230,859 ounces, 6% (12,704 ounces) above budget. Gold production from the Company's Fekola, Masbate, Otjikoto and El Limon mines all exceeded their targeted production. The Fekola Mine in Mali and the Masbate Mine in the Philippines continued their very strong operational performances, with both well-above their budgeted production for the quarter. For the first quarter of 2019, the Fekola Mine produced 110,349 ounces of gold, well-above budget by 6% (6,724 ounces), and the Masbate Mine produced 57,481 ounces of gold, significantly above budget by 15% (7,490 ounces). Compared to the prior-year quarter, gold production was marginally lower by 8,825 ounces.

Consolidated cash operating costs in the quarter were $545 per ounce sold, below budget by $27 per ounce (5%). The favourable budget variance (on a per ounce of gold sold basis) was mainly attributable to Masbate's above-budget gold production and significantly lower-than-budgeted mining costs (see "Operations" section below). Also contributing to the favourable budget variance were Otjikoto's sales of lower cost gold ounces from its opening inventory and higher ore tonnage than budgeted from its Otjikoto and Wolfshag pits. Compared to the prior-year quarter, consolidated cash operating costs (on a per ounce of gold sold basis) were $74 per ounce higher (16%), primarily due to the lower grade stockpile material processed during the first quarter of 2019 at Fekola (as a result of Fekola's significantly higher-than-budgeted mill throughput) as well as to lower gold sales (the comparative quarter benefitted from additional sales of 20,153 lower cost ounces generated from the net drawdown of opening January 1, 2018 gold inventories, built-up in late 2017 in part as a result of Fekola ramping up to full steady state production).

Consolidated AISC in the first quarter were $848 per ounce sold (Q1 2018 – $719 per ounce sold), significantly below budget by $133 per ounce (14%), reflecting the lower per ounce cash operating costs noted above and lower than planned capital expenditures which were $24 million lower than budget (this reflects mainly timing differences as the majority of the capital underspend is expected to be incurred later in 2019).

Given the gold production outperformance in the first quarter of 2019, B2Gold remains well positioned for continued strong operational and financial performance with consolidated gold production for full-year 2019 forecast to be in the range of between 935,000 and 975,000 ounces. For the first-half of 2019, consolidated gold production is forecast to be between 436,000 and 456,000 ounces of gold before significantly increasing to between 499,000 and 519,000 ounces in the second-half of 2019. Consolidated cash costs are projected to remain low in 2019 with cash operating costs forecast to be between $520 and $560 per ounce sold and AISC forecast to be between $835 and $875 per ounce sold. As previously released, consolidated gold production for full-year 2019 is expected to be weighted towards the second-half of 2019, due to the planned development of open pits in the first-half of the year and subsequent ore production from those pits in the second-half.

2019 First Quarter Financial Results

Consolidated gold revenue in the first quarter of 2019 was $302 million on sales of 232,076 ounces at an average price of $1,300 per ounce compared to $344 million on sales of 259,837 ounces at an average price of $1,325 per ounce in the first quarter of 2018. Gold sales of 232,076 ounces in the first quarter of 2019 were 6% (13,564 ounces) above budget. Compared to the prior-year quarter, the decrease in revenue related mainly to the timing of gold shipments (as the prior-year quarter benefitted from additional sales of 20,153 ounces generated from the net drawdown of opening January 1, 2018 gold inventories, built-up in late 2017 in part as a result of Fekola ramping up to full steady state production).

Cash flow provided by operating activities was $86 million ($0.09 per share) in the first quarter of 2019 compared to $147 million ($0.15 per share) in the first quarter of 2018. The decrease mainly reflects lower gold revenue as the comparative quarter benefitted from the sale of its opening gold inventories. For full-year 2019, if a gold price assumption of $1,300 per ounce is used, the Company expects to generate cash flows from operations of approximately $400 million for the year.

For the first quarter of 2019, the Company generated net income of $27 million ($0.02 per share) compared to net income of $57 million ($0.06 per share) in the first quarter of 2018. Adjusted net income (see "Non-IFRS Measures") for the first quarter of 2019 was $38 million ($0.04 per share) compared to adjusted net income of $57 million ($0.06 per share) in the first quarter of 2018.

Liquidity and Capital Resources

At March 31, 2019, the Company had cash and cash equivalents of $142 million compared to cash and cash equivalents of $103 million at December 31, 2018. Working capital at March 31, 2019 was $206 million compared to $156 million at December 31, 2018.

At March 31, 2019, the Company had drawn $400 million under the $500 million RCF, leaving an undrawn and available balance under the existing facility of $100 million. In May 2019, the Company received commitments from its existing syndicate of banks plus one new lender, to upsize its RCF capacity from $500 million to $600 million and to increase the accordion feature from $100 million to $200 million. In addition, as a reflection of B2Gold's financial strength, the upsized RCF is expected to include increased flexibility for permitted borrowings and equipment financings, coupled with less onerous financial covenants and lower pricing. The upsized RCF is expected to close by mid-May 2019 and will be for a term of four years to mid-2023. Final closing of the facility and the availability of funds under it remains subject to completion of customary closing conditions. The upsized RCF, coupled with strong operating cash flows from the Company's existing mine operations, is expected to provide the Company with continued financial flexibility to advance existing assets and pursue exploration opportunities.

The Company's current strategy is to continue to reduce debt, expand the Fekola Mine throughput and annual production, further advance its pipeline of development and exploration projects and evaluate exploration opportunities.

Operations

Mine-by-mine gold production and gold sales in the first quarter 2019 were as follows (presented on a 100% basis):

Mine
Q1 2019 Gold Production (ounces)
Q1 2019 Gold Sold (ounces) 2019 Annual Guidance Gold Production (ounces)
Fekola 110,349 115,800 420,000 - 430,000
Masbate 57,481 50,400 200,000 - 210,000
Otjikoto 32,712 37,200 165,000 - 175,000
La Libertad 18,086 17,272 95,000 - 100,000
El Limon 12,231 11,404 55,000 - 60,000
B2Gold Consolidated 230,859 232,076 935,000 - 975,000

Mine-by-mine cash operating costs and AISC per ounce (on a per ounce of gold sold basis) in the first quarter of 2019 were as follows (based on the total production at the mines B2Gold operates):
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