Off The Wire
B2Gold reports record quarterly output, revenue
(Kitco News) - B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) late Wednesday reported record gold production and revenue for the first quarter and said the company was on pace to meet full-year 2020 guidance.
The producer listed quarterly gold production of 262,632 ounces. This included some 12,000 ounces from its share of Calibre Mining Corp. in Nicaragua, where operations were temporarily suspended near the end of the first quarter due to COVID-19.
“The significant increase in gold production over the first quarter of 2019 was driven by the Fekola Mine in Mali, which had a very strong start to the year with record first-quarter gold production of 164,011 ounces, well-above budget by 9% (14,011 ounces) and 49% (53,662 ounces) higher compared to the first quarter of 2019,” B2Gold said. “Fekola's significant increase...was mainly due to expansion of the Fekola mining fleet and optimization of the pit designs and mine plan for 2020, which have provided access to higher-grade portions of the Fekola deposit earlier than anticipated in previous mine plans.”
First-quarter revenue was a quarterly record of $380 million from B2Gold’s three operating mines. The company listed sales of 239,500 ounces at an average price of $1,588 per ounce. Revenue in the same period a year ago was $264 million on sales of 203,400 ounces at an average price of $1,298 per ounce (excluding the discontinued operations of El Limon and La Libertad, which were sold in October).
B2Gold said consolidated production guidance remains at between 1 million and 1.055 million ounces of gold this year with cash operating costs of between $415 and $455 an ounce. Based on current life-of-mine plans, for 2020-2024 period, annual production is forecast to average 950,000 ounces with all-in sustaining costs averaging $825 an ounce.
Based on a $1,500 gold price, B2Gold said it expects to generate cash flow from operating activities of more than $700 million in 2020.
“The company is continuing to focus on its COVID-19 response measures and to date has not experienced any incidents of the COVID-19 virus at its sites or corporate offices,” B2Gold said.