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B2Gold 3Q Income Declines On Lower Gold Sales

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B2Gold Corp. (TSX: BTO; NYSE: BTG; NSX: B2G) posted a smaller net profit in the third quarter as production and gold-sales revenue declined. Net income was $12.4 million, or a penny per share, down from net income of $35.7 million, or 4 cents, in the same quarter last year. Adjusted net income was $13.9 million, also a penny, compared to $48.6 million, or a nickel, in the prior-year quarter. “The decrease in adjusted net income was mainly attributable to lower gold sales revenue…and higher operating costs,” B2Gold says. Production was 135,628 ounces, including 6,340 ounces of pre-commercial output from Fekola. The company says consolidated production was down from the same period last year although it exceeded revised guidance by 17,372 ounces. The Otjikoto Mine achieved record quarterly production of 55,151 ounces. Consolidated gold revenue in the third quarter was $154.1 million on sales of 121,597 ounces at an average price of $1,267, compared to $193 million on sales of 145,029 ounces at an average $1,331 in the third quarter of 2016. The 20% decrease in revenue was mainly attributable to a 16% decrease in gold sales volume, due to lower production and the timing of gold shipments, and a 5% decrease in the average realized gold price, B2Gold says. For full-year 2017, B2Gold says it is on track to meet the upper end of its revised guidance range of 530,000 to 570,000 ounces and be at the lower end of its guidance ranges for cash operating costs of ($610 to $650) and all-in sustaining costs ($940 to $970). Meanwhile, B2Gold says the ramp-up to full production at Fekola is ahead of schedule, with the mine expected to achieve commercial output by the end of November. The company’s 2018 outlook calls for production growth of approximately 70%, with the planned first full year of mining from Fekola pushing consolidated output to between 925,000 and 975,000 ounces.

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