B2Gold Adjusted Profit Triples With Added Output From Fekola
(Kitco News) - B2Gold Corp. (TSX: BTO, NYSE American: BTG, NSX: B2G), which bills itself as the newest senior gold producer, late Tuesday reported a sharply higher adjusted profit in the third quarter as output soared from a year ago after the opening of the Fekola Mine in Mali in 2017.
The company generated adjusted net income of $45 million, or a nickel per share, compared to $14 million, or a penny, a year ago. Net income came in at $16 million, or a penny per share, compared to $12 million, also a penny, in the third quarter of 2017.
With the Fekola Mine in its first full-year of production, consolidated gold output was a quarterly record 242,040 ounces, which was an increase of 78%, or 106,412 ounces, over the same period last year. Fekola produced 107,002 ounces of gold.
In addition, the Masbate Mine in the Philippines produced 57,542 ounces, its second-highest quarterly output ever. This was 24%, or 10,985 ounces, higher than the third quarter of 2017.
With the higher gold volume, company-wide revenue rose 110% from a year ago to $324 million.
B2Gold said it “remains well on target to achieve transformational growth in 2018.” Full-year 2018 production is forecast to be at the upper end of the company's guidance range of between 920,000 and 960,000 ounces. This would be an increase in annual gold production of approximately 300,000 ounces from 2017.
The company said it also expects guidance of all-in sustaining costs of between $780 and $830 per ounce.
“With the Fekola Mine in production, the resulting increase in gold production levels combined with low costs have dramatically increased B2Gold's production, revenues, cash from operations and free cash flows with ongoing benefits expected to continue for many years, based on current assumptions,” the company said in its earnings statement. “If a gold price assumption of $1,200 per ounce is used for the balance of 2018, the company expects to generate cash flow from operations of approximately $450 million for the year.”