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B2Gold 2Q Adjusted Profit Boosted by New Fekola Output

Kitco News

(Kitco News) - B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G), which bills itself as the newest senior gold producer after opening its Fekola Mine in Mali last year, late Tuesday reported a big jump in its second-quarter adjusted profit on sharply higher output.

B2Gold announced an adjusted net profit of $46 million, or a nickel per share, compared to $13 million, or a penny, in the prior-year quarter. With sharply higher sales after the opening of the new mine, plus a higher gold price, revenues increased 73% year-on-year to $285 million.

Net income was $21 million, or 2 cents per share, compared to $19 million, also 2 cents, in the second quarter of 2017.

B2Gold had already released its second-quarter production, listing record quarterly consolidated output of 240,093 ounces, an increase of 98%, or 118,645 ounces, from the same period last year and 7% above budget. The Fekola Mine exceeded expectations, producing 112,644 ounces of gold. This was 11%, or 11,225 ounces, above budget.

All-in sustaining costs were reported at $721 an ounce, which the company said was 17% below budget and 26% lower than the year-ago quarter.

Last month, B2Gold upwardly revised its 2018 output guidance to between 920,000 and 960,000 ounces from the original 910,000 to 950,000. This output would exceed B2Gold’s 2017 output by some 300,000 ounces. AISC are forecast at $780 to $830 per ounce. The Fekola mine is forecast to produce between 420,000 and 430,000 ounces for the year.

“2018 is expected to be another transformative, record-setting year of low-cost gold production for B2Gold as the newest senior gold producer,” the company said in its earnings release.

B2Gold, founded in 2007 as a junior-exploration company, has five mines in four countries – Nicaragua, the Philippines, Namibia and Mali.

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