VANCOUVER, BC, November 2, 2021 /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 third quarter and first nine months of 2021. The Company previously released its gold production and gold revenue results for the third quarter and first nine months of 2021. All dollar figures are in United States dollars unless otherwise indicated.

2021 Third Quarter Highlights

Total gold production of 310,261 ounces (including 14,538 ounces of attributable production from Calibre Mining Corp. ("Calibre")), above budget by 7% (20,871 ounces), and consolidated gold production of 295,723 ounces from the Company's three operating mines, above budget by 7% (20,083 ounces)
Consolidated gold revenue of $511 million on sales of 286,650 ounces at an average realized gold price of $1,782 per ounce
Record quarterly gold production achieved by both the Fekola Mine of 165,557 ounces and Otjikoto Mine of 68,959 ounces
In September 2021, the Fekola Mine produced its 2 millionth ounce of gold, 4 years from the commencement of production
Increased Fekola's and Masbate's production guidance; for full-year 2021, the Fekola Mine is now forecast to produce between 560,000 to 570,000 ounces of gold (original guidance was between 530,000 to 560,000 ounces) and the Masbate Mine between 215,000 to 225,000 ounces of gold (original guidance was between 200,000 to 210,000 ounces)
Consolidated cash flow provided by operating activities from the Company's three operating mines of $320 million
Total cash operating costs (see "Non-IFRS Measures") (including estimated attributable results for Calibre) of $445 per ounce produced and consolidated cash operating costs from the Company's three operating mines of $418 per ounce produced, both approximately in-line with budget
Total all-in sustaining costs ("AISC") (see "Non-IFRS Measures") (including estimated attributable results for Calibre) of $795 per ounce sold and consolidated AISC from the Company's three operating mines of $777 per ounce sold, both approximately in-line with budget
Net income attributable to the shareholders of the Company of $123 million ($0.12 per share); adjusted net income (see "Non-IFRS Measures") attributable to the shareholders of the Company of $123 million ($0.12 per share)
On October 25, 2021, the Company entered into an agreement with West African Resources ("WAF") to sell its 81% interest in the Kiaka Project in Burkina Faso for a combination of cash, WAF shares and production royalties
2021 First Nine Months Highlights

Total gold production of 742,517 ounces (including 43,771 ounces of attributable production from Calibre), above budget by 7% (49,682 ounces), and consolidated gold production of 698,746 ounces from the Company's three operating mines, above budget by 7% (47,161 ounces)
Consolidated gold revenue of $1.2 billion on sales of 689,051 ounces at an average realized gold price of $1,794 per ounce
Consolidated cash flow provided by operating activities from the Company's three operating mines of $458 million
Total cash operating costs (see "Non-IFRS Measures") (including estimated attributable results for Calibre) of $556 per ounce produced and consolidated cash operating costs from the Company's three operating mines of $532 per ounce produced, both approximately in-line with budget
Total all-in sustaining costs ("AISC") (see "Non-IFRS Measures") (including estimated attributable results for Calibre) of $900 per ounce sold and consolidated AISC from the Company's three operating mines of $887 per ounce sold, both approximately in-line with budget
Net income attributable to the shareholders of the Company of $283 million ($0.27 per share); adjusted net income (see "Non-IFRS Measures") attributable to the shareholders of the Company of $272 million ($0.26 per share)
For full-year 2021, B2Gold has increased its total gold production guidance range to between 1,015,000 - 1,055,000 ounces (including 50,000 – 60,000 attributable ounces projected from Calibre) (original guidance was between 970,000 and 1,030,000 ounces)
For full-year 2021, the Company's total consolidated cash operating costs are expected to be within the guidance range of between $500 and $540 per ounce and total consolidated AISC are expected to be at the upper-end of the guidance range of between $870 and $910 per ounce
Based on current assumptions, including an average gold price of $1,800 per ounce, the Company now expects to generate cashflows from operating activities of approximately $650 million for the full-year 2021 (original guidance was $630 million) of which approximately $510 million is expected to be generated in the second half of 2021
Third Quarter and First Nine Months of 2021 Operational Results

Total gold production in the third quarter of 2021 was 310,261 ounces (including 14,538 ounces of attributable production from Calibre), above budget by 7% (20,871 ounces) and consolidated gold production from the Company's three operating mines was 295,723 ounces, above budget by 7% (20,083 ounces) with solid performances from the Company's three mines, with each mine exceeding its budgeted production for the third quarter of 2021 (see "Operations" section below). Both the Fekola and Otjikoto mines achieved record quarterly gold production in the third quarter of 2021. As planned, with increased throughput at the Fekola mill together with the completion of the significant waste stripping campaigns at both the Fekola and Otjikoto mines in the first half of 2021 (Phase 5 and Phase 6 of the Fekola Pit, and Phase 3 of the Wolfshag and Otjikoto pits), consolidated gold production in the third quarter of 2021 increased significantly by 19% (46,990 ounces) compared to the third quarter of 2020, as mining at Fekola reached the higher-grade zones of the Fekola Pit and mining at Otjikoto reached the higher-grade zone at the base of the Wolfshag Pit. Consolidated gold production also increased significantly by 50% (98,343 ounces) over the second quarter of 2021.

For the third quarter of 2021, total cash operating costs (including estimated attributable results for Calibre) were $445 per ounce produced ($482 per ounce sold) and consolidated cash operating costs from the Company's three operating mines were $418 per ounce produced ($456 per ounce sold), both approximately in-line with budget and comparable with the third quarter of 2020. In the third quarter of 2021, higher than budgeted gold production largely offset the impact of higher than budgeted realized fuel prices, processing costs and stronger local currencies, resulting in an overall cost per ounce which was approximately in-line with budget. Total AISC (including estimated attributable results for Calibre) for the third quarter of 2021 were $795 per ounce sold and consolidated AISC from the Company's three operating mines were $777 per ounce sold, both approximately in-line with budget (attributable to higher than budgeted gold ounces sold, higher than budgeted gains on settled fuel derivatives and lower than budgeted sustaining capital expenditures, largely offsetting higher than budgeted operating costs ) and comparable with the third quarter of 2020. The lower than budgeted sustaining capital expenditures were primarily the result of timing of expenditures and are expected to be incurred in the fourth quarter of 2021.

For the first nine months of 2021, total gold production was 742,517 ounces (including 43,771 ounces of attributable production from Calibre), above budget by 7% (49,682 ounces), and 4% (27,751 ounces) lower than the first nine months of 2020 due to the focus on waste stripping at Fekola and Otjikoto in the first half of 2021. Consolidated gold production from the Company's three operating mines was 698,746 ounces in the first nine months of 2021, above budget by 7% (47,161 ounces).

For the first nine months of 2021, total cash operating costs (including estimated attributable results for Calibre) were $556 per ounce produced ($568 per ounce sold) and consolidated cash operating costs from the Company's three operating mines were $532 per ounce produced ($544 per ounce sold), both approximately in-line with budget. As expected, the Company's consolidated cash operating costs were higher in the first nine months of 2021 compared to $388 per ounce produced ($391 per ounce sold) in the first nine months of 2020, mainly due to the planned lower gold production together with higher realized input costs in the first nine months of 2021 (resulting from higher period stripping activities, higher fuel and processing costs and higher import duties). Total AISC (including estimated attributable results for Calibre) for the first nine months of 2021 were $900 per ounce sold (first nine months of 2020 - $740 per ounce sold) and consolidated AISC from the Company's three operating mines were $887 per ounce sold (first nine months of 2020 - $726 per ounce sold), both approximately in-line with budget.

For full-year 2021, based on strong production performance in the first nine months of 2021, the Company has increased its total gold production guidance to between 1,015,000 - 1,055,000 ounces (including 50,000 – 60,000 attributable ounces projected from Calibre) (original guidance was between 970,000 and 1,030,000 ounces). For full-year 2021, the Company's total consolidated cash operating costs are expected to be within the Company's guidance range of between $500 and $540 per ounce and total consolidated AISC are expected to be at the upper-end of the Company's guidance range of between $870 and $910 per ounce. The Company is still forecasting to meet its total consolidated cost per ounce guidance ranges even in the current inflationary cost environment, reflecting how well the Company's operating mines and their management teams have performed and continue to perform in 2021.

Third Quarter and First Nine Months of 2021 Financial Results

For the third quarter of 2021, consolidated gold revenue was $511 million on sales of 286,650 ounces at an average realized gold price of $1,782 per ounce, compared to $487 million on sales of 253,200 ounces at an average realized gold price of $1,924 per ounce in the third quarter of 2020. The increase in gold revenue of 5% ($24 million) was 13% attributable to the increase in gold ounces sold (mainly due to the higher gold production and timing of gold shipments), partially offset by an 8% impact from the decrease in the average realized gold price.

Cash flow provided by operating activities was $320 million in the third quarter of 2021 compared to $300 million in the third quarter of 2020. The increase over the third quarter of 2020 was mainly due to higher inflows of value added tax receivables in the third quarter of 2021. Operating cashflows in the third quarter of 2021 benefitted from higher than budgeted gold production and sales volumes as well as from the timing of refunds for certain value added tax receivables and other working capital items. Based on current assumptions, including an average gold price of $1,800 per ounce for the fourth quarter of 2021, the Company is now forecasting to generate cashflows from operating activities of approximately $650 million (original guidance was $630 million) for the full-year 2021.

Net income for the third quarter of 2021 was $135 million compared to $277 million for the third quarter of 2020. Net income attributable to the shareholders of the Company was $123 million ($0.12 per share) compared to $263 million ($0.25 per share) for the third quarter of 2020. In the third quarter of 2020, the Company identified a higher sustained long-term gold price as an indicator of impairment reversal for the Masbate Mine resulting in a net impairment reversal of $122 million (pre-tax $174 million impairment reversal less $52 million deferred tax expense). Adjusted net income attributable to the shareholders of the Company (see "Non-IFRS Measures") was $123 million ($0.12 per share) for the third quarter of 2021 compared to adjusted net income of $161 million ($0.15 per share) for the third quarter of 2020.

For the first nine months of 2021, consolidated gold revenue was $1.2 billion on sales of 689,051 ounces at an average realized gold price of $1,794 per ounce compared to $1.3 billion on sales of 749,800 ounces at an average realized gold price of $1,746 per ounce in the first nine months of 2020. The decrease in gold revenue of 6% ($73 million) was mainly attributable to the decrease in gold ounces sold (mainly due to the lower gold production and timing of gold shipments).

Cash flow provided by operating activities was $458 million in the first nine months of 2021 compared to $754 million in the first nine months of 2020. The decrease was mainly due to lower revenues of $73 million, higher production costs of $81 million and higher working capital outflows in the first nine months of 2021, most significantly for value-added taxes and current income and other taxes payables. Current income tax payments in the first nine months of 2021 included approximately $140 million related to 2020 outstanding tax liability obligations (comprised mainly of Fekola outstanding 2020 tax liabilities of $75 million and Fekola 2020 priority dividend obligations of $46 million). Based on current assumptions, including an average gold price of $1,800 per ounce for 2021, the Company is forecasting to make total cash income tax payments in 2021 of approximately $380 million, including the $140 million related to 2020 outstanding tax liability obligations discussed above.

For the first nine months of 2021, net income was $308 million compared to $498 million for the first nine months of 2020. Net income attributable to the shareholders of the Company was $283 million ($0.27 per share) compared to $460 million ($0.44 per share) for the first nine months of 2020. Adjusted net income attributable to the shareholders of the Company was $272 million ($0.26 per share) for the first nine months of 2021 compared to adjusted net income of $368 million ($0.35 per share) for the first nine months of 2020.

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At September 30, 2021, the Company had cash and cash equivalents of $547 million (December 31, 2020 - $480 million) and working capital of $683 million (December 31, 2020 - $465 million). In addition, the Company's $600 million Revolving Credit Facility remains fully undrawn and available.

Due to the Company's strong net positive cash position, strong operating results and the current higher gold price environment, B2Gold's quarterly dividend rate is expected to be maintained at $0.04 per common share (or an annualized rate of $0.16 per common share), one of the highest dividend yields in the gold sector.

Based on current assumptions, including an average gold price of $1,800 per ounce for the fourth quarter of 2021, the Company is now forecasting to generate cashflows from operating activities of approximately $650 million (original guidance was $630 million) for the full-year 2021.

Operations

Mine-by-mine gold production in the third quarter and first nine months of 2021 (including the Company's estimated 33% share of Calibre's production) was as follows: see & read more on
https://www.b2gold.com/news/2021/b2gold-corp-reports-strong-q3-2021-results-higher-than-budgeted-gold-production-and-operating-cashflows-of-320-m-increases-annual-production-guidance-range-to-1015000-to-1055000-oz-and-maintains-cost-guidance