VANCOUVER, Aug. 6, 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 second quarter and first-half of 2019. All dollar figures are in United States dollars unless otherwise indicated.

On July 2, 2019, B2Gold and Calibre Mining Corp. ("Calibre") announced that they had entered into an agreement 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). The Company expects the sale to be completed early in the fourth quarter of 2019. Accordingly, the Company has classified its El Limon and La Libertad mines as discontinued operations for the three and six months ended June 30, 2019 and 2018 for financial reporting purposes.

2019 Second Quarter Highlights
•Record quarterly consolidated gold production of 246,020 ounces (including El Limon and La Libertad) well-above budget by 8% (17,194 ounces) and 2% (5,927 ounces) over the same period last year with solid performances from all the Company's operations
•Consolidated gold revenues from continuing operations of $267 million on sales of 203,700 ounces (5% or 9,591 ounces above budget); consolidated gold revenues of $310 million on sales of 236,282 ounces, including gold sales from El Limon and La Libertad
•Consolidated cash operating costs (see "Non-IFRS Measures") from continuing operations of $456 per ounce produced ($468 per ounce sold), below budget by $42 per ounce (8%); including El Limon and La Libertad, consolidated cash operating costs of $529 per ounce produced ($543 per ounce sold), below budget by $37 per ounce (7%)
•Consolidated all-in sustaining costs ("AISC") (see "Non-IFRS Measures") from continuing operations of $807 per ounce sold, well-below budget by $87 per ounce (10%); including El Limon and La Libertad, consolidated AISC of $914 per ounce sold, below budget by $37 per ounce (4%)
•Consolidated cash flow provided by operating activities of $93 million ($0.09 per share) (including $9 million from discontinued operations) compared to $86 million ($0.09 per share) (including $6 million from discontinued operations) in the prior-year quarter
•Net income from continuing operations of $45 million ($0.04 per share); net income of $41 million ($0.04 per share); adjusted net income (see "Non-IFRS Measures") of $52 million ($0.05 per share)
•New large-scale off-grid Fekola Solar Plant Project approved by the B2Gold Board, scheduled for completion in August 2020; expected to provide significant operating cost reductions (estimated to reduce Fekola's processing costs by approximately 7%)
•Otjikoto Mine continued its remarkable safety performance, extending the number of days without a lost-time-injury ("LTI") to 488 days (3.8 million man-hours) at the end of the second quarter of 2019
•On July 2, 2019, B2Gold and Calibre announced that they have agreed to join forces in Nicaragua and have entered into an agreement for B2Gold to restructure its interests in, and for Calibre to acquire, El Limon and La Libertad gold mines for aggregate consideration of $100 million


2019 First-Half Highlights
•Consolidated gold production of 476,879 ounces (including El Limon and La Libertad), 7% (29,898 ounces) above budget
•Consolidated gold revenues from continuing operations of $531 million on sales of 407,100 ounces (7% or 27,581 ounces above budget); consolidated gold revenues of $612 million on sales of 468,358 ounces, including gold sales from El Limon and La Libertad
•Consolidated cash operating costs from continuing operations of $455 per ounce produced ($462 per ounce sold), below budget by $43 per ounce (9%); including El Limon and La Libertad, consolidated cash operating costs of $538 per ounce produced ($544 per ounce sold), below budget by $31 per ounce (5%)
•Consolidated AISC from continuing operations of $775 per ounce sold, significantly below budget by $103 per ounce (12%); including El Limon and La Libertad, consolidated AISC of $882 per ounce sold, well-below budget by $83 per ounce (9%)
•Consolidated cash flow provided by operating activities of $179 million ($0.18 per share) (including $11 million from discontinued operations)
•Net income from continuing operations of $80 million ($0.07 per share); net income of $68 million ($0.06 per share); adjusted net income of $90 million ($0.09 per share)
•On March 26, 2019, the Company announced 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 assumed base rate of 6 Mtpa
•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; if the anticipated sale of the Company's Nicaraguan operations to Calibre is completed early in the fourth quarter of 2019, and the Company maintains a 31% interest in Calibre post transaction thereafter, as anticipated, the Company anticipates that it will still meet the low end of the Company's consolidated production guidance ranges for 2019


2019 Second Quarter and First-Half Operational Results

Including El Limon and La Libertad, consolidated gold production in the second quarter of 2019 was a quarterly record of 246,020 ounces, well-above budget by 8% (17,194 ounces) with solid performances from all the Company's operations. Gold production from the Company's Fekola, Masbate, Otjikoto and La Libertad mines all exceeded their targeted production, with El Limon's production in-line with budget. The Fekola Mine in Mali and the Masbate Mine in the Philippines continued their very strong operational performances, with both significantly above their budgeted production for the quarter. For the second quarter of 2019, the Fekola Mine produced 113,897 ounces of gold, exceeding budget by 10% (10,272 ounces), and the Masbate Mine produced 57,572 ounces of gold, exceeding budget by 7% (3,587 ounces). Compared to the prior-year quarter, gold production increased by 2% (5,927 ounces). Consolidated gold production from continuing operations totaled 208,890 ounces in the second quarter of 2019.

Consolidated cash operating costs from continuing operations in the quarter were $456 per ounce produced ($468 per ounce sold) (Q2 2018 - $410 per ounce produced), below budget by $42 per ounce (8%). The favourable budget variance was mainly attributable to higher-than-budgeted production. Compared to the prior-year quarter, consolidated cash operating costs were higher mainly due to the lower grade ore tonnage processed at Fekola (as a result of Fekola's significantly higher-than-budgeted mill throughput) and lower operating costs incurred by Fekola during the start-up phase in the second quarter of 2018. In addition, operating costs at the other locations were higher in the second quarter of 2019, as anticipated, due to higher fuel costs and labour cost increases. Including El Limon and La Libertad, consolidated cash operating costs for the quarter were $529 per ounce produced ($543 per ounce sold).

Consolidated AISC from continuing operations in the quarter were $807 per ounce sold (Q2 2018 - $654 per ounce sold), well-below budget by $87 per ounce (10%), primarily resulting from lower-than-budgeted cash operating costs noted above together with lower-than-planned sustaining capital expenditures. Compared to the prior year quarter, consolidated AISC were higher as a result of the increased cash operating costs noted above and the timing of Otjikoto's pre-stripping activities, weighted towards the first-half of the year. Including El Limon and La Libertad, consolidated AISC for the quarter were $914 per ounce sold.

Consolidated gold production from continuing operations totaled 409,432 ounces in the first-half of 2019. Including El Limon and La Libertad, consolidated gold production in the first-half of 2019 was 476,879 ounces, 7% (29,898 ounces) above budget and comparable with the first-half of 2018.

For the first-half of 2019, consolidated cash operating costs from continuing operations were $455 per ounce produced ($462 per ounce sold) (Q2 2018 - $403 per ounce produced), below budget by $43 per ounce (9%). Including El Limon and La Libertad mines, consolidated cash operating costs for the first-half of 2019 were $538 per ounce produced ($544 per ounce sold).

Year-to-date, consolidated AISC from continuing operations were $775 per ounce sold (YTD 2018 - $637 per ounce sold), significantly below budget by $103 per ounce (12%). Including El Limon and La Libertad mines, consolidated AISC for the first-half of 2019 were $882 per ounce sold. AISC were lower-than-budget as a result of higher gold ounces sold than budgeted and lower-than-budgeted sustaining capital expenditures resulting from a combination of timing differences and lower than expected pre-stripping costs of which $11 million is not expected to be incurred as previously budgeted.

Given the gold production outperformance in the first-half 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. With the gold production outperformance experienced in the first-half of 2019, the Company now expects that consolidated production will be less significantly weighted towards the second-half of the year. Consolidated cash costs are projected to remain low in 2019 with cash operating costs forecast to be between $520 and $560 per ounce and AISC forecast to be between $835 and $875 per ounce. If the anticipated sale of the Company's Nicaraguan operations to Calibre is completed early in the fourth quarter of 2019, and the Company maintains a 31% interest in Calibre post transaction thereafter, as anticipated, the Company expects that it will meet the low end of the Company's consolidated production guidance range for 2019. In addition, the Company anticipates that it will meet its 2019 consolidated cash cost and AISC guidance ranges.

B2Gold and Calibre Join Forces in Nicaragua

On July 2, 2019 (see news release dated 7/2/2019), B2Gold and Calibre announced that they had entered into an agreement for B2Gold to restructure its interests in, and for Calibre to acquire, El Limon and La Libertad gold mines, the Pavon gold project, and additional mineral concessions in Nicaragua (collectively, the "Nicaraguan Assets") held by B2Gold for aggregate consideration of $100 million, which will be paid with a combination of cash, common shares and a convertible debenture. Following the completion of the transaction, B2Gold will own an approximate 31% direct equity interest in Calibre. B2Gold's ongoing commitment to continuing involvement with the Nicaraguan operations will be secured by its significant equity interest in Calibre, its right to appoint one director to the Board of Calibre and its participation in an Advisory Board to the main Board of Calibre. The closing of this transaction will be subject to certain conditions including majority of minority shareholder approval, the closing of the concurrent private placement by Calibre (for gross proceeds of up to CDN$100 million) and other customary closing conditions. The Company expects the sale to be completed early in the fourth quarter of 2019.

2019 Second Quarter and First-Half Financial Results

Consolidated gold revenue from continuing operations for the second quarter of 2019 was $267 million on sales of 203,700 ounces at an average price of $1,312 per ounce compared to $242 million on sales of 188,029 ounces at an average price of $1,289 per ounce in the second quarter of 2018. The increase in gold revenue of $25 million (10%) was attributable to an 8% increase in the gold ounces sold and a 2% increase in the average realized gold price. Including gold sales from El Limon and La Libertad, consolidated gold revenue totaled $310 million in the quarter on sales of 236,282 ounces at an average realized price of $1,313 per ounce.

Cash flow provided by operating activities in the second quarter of 2019 totaled $93 million ($0.09 per share) (including $9 million from discontinued operations) compared to $86 million ($0.09 per share) (including $6 million from discontinued operations) in the prior-year quarter. The increase mainly reflects higher gold revenue, partially offset by higher income tax installment payments for Fekola.

Net income from continuing operations in the quarter was $45 million ($0.04 per share) compared to $28 million ($0.03 per share) in the same period last year. For the second quarter of 2019, the Company generated net income of $41 million ($0.04 per share) (including Nicaragua) compared to $21 million ($0.02 per share) in the second quarter of 2018. Adjusted net income for the second quarter of 2019 was $52 million ($0.05 per share) compared to $46 million ($0.05 per share) in the second quarter of 2018.

For the first-half of 2019, consolidated gold revenue from continuing operations was $531 million on sales of 407,100 ounces at an average price of $1,305 per ounce compared to $540 million on sales of 413,458 ounces at an average price of $1,307 per ounce in the first-half of 2018. The decrease in gold revenue was attributable to a 2% decrease in the gold ounces sold. Including gold sales from El Limon and La Libertad, consolidated gold revenue totaled $612 million in the first-half of 2019 on sales of 468,358 ounces at an average realized price of $1,307 per ounce.

Cash flow provided by operating activities in the first-half of 2019 totaled $179 million ($0.18 per share) (including $11 million from discontinued operations) compared to $233 million ($0.24 per share) (including $15 million from discontinued operations) in the first-half of 2018. The decrease mainly reflects higher income tax installment payments for Fekola, as well as lower gold revenue and higher production costs.

Net income from continuing operations in the first-half of 2019 was $80 million ($0.07 per share) compared to $94 million ($0.09 per share) in the same period last year. For the first-half of 2019, the Company generated net income of $68 million ($0.06 per share) (including Nicaragua) compared to $79 million ($0.08 per share) in the first-half of 2018. Adjusted net income for the first-half of 2019 was $90 million ($0.09 per share) compared to adjusted net income of $104 million ($0.11 per share) in the first-half of 2018.

Liquidity and Capital Resources

At June 30, 2019, the Company had cash and cash equivalents of $114 million ($124 million including $10 million of cash associated with discontinued operations) compared to cash and cash equivalents of $103 million at December 31, 2018. Working capital at June 30, 2019 was $192 million ($227 million including $35 million of working capital associated with discontinued operations) compared to $156 million at December 31, 2018.

During the six months ended June 30, 2019, the Company made repayments of $25 million on the revolving credit facility ("RCF"). At June 30, 2019, the Company had drawn $375 million under the $600 million RCF, leaving an undrawn and available balance under the existing facility of $225 million.

On May 10, 2019, the Company entered into a revised RCF agreement with 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 included increased flexibility for permitted borrowings and equipment financings, coupled with less onerous financial covenants and lower pricing. The revised RCF bears interest on a sliding scale of between LIBOR plus 2.125% to 2.75% based on the Company's consolidated net leverage ratio. Commitment fees for the undrawn portion of the facility are also on a similar sliding scale basis of between 0.48% and 0.62%. The term of the revised RCF is four years, maturing on May 9, 2023. 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
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