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B2Gold announces net income of $41 million in Q2, says will seek alternatives for Gramalote project

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(Kitco News) - B2Gold (TSX: BTO) announced today that its total gold production in Q2 2022 was 223,623 ounces, 1% above budget and 6% higher compared to Q2 2021, mainly due to record quarterly mill throughput achieved at the Fekola mine in Q2 2022.

For the second quarter of 2022, consolidated gold revenue was $382 million on sales of 205,300 ounces at an average realized gold price of $1,861 per ounce, compared to $363 million on sales of 200,071 ounces at an average realized gold price of $1,814 per ounce in the second quarter of 2021.

The company said that the increase in gold revenue of 5% ($19 million) was attributable to a 2.5% increase in the average realized gold price and a 2.5% increase in gold ounces sold.  

Net income for the second quarter of 2022 was $41 million compared to $74 million for the second quarter of 2021. Net income attributable to the shareholders of the company was $38 million ($0.04 per share) compared to $68 million ($0.07 per share) for the second quarter of 2021.

Adjusted net income attributable to the shareholders of the company was $45 million ($0.04 per share) compared to adjusted net income of $52 million ($0.05 per share) for the second quarter of 2021.

The company said that for full-year 2022, it remains well positioned for continued strong operational and financial performance and remains on track to achieve its total gold production guidance of between 990,000 and 1,050,000 ounces (including 40,000 and 50,000 attributable ounces projected from Calibre).

B2Gold also noted that total consolidated costs guidance ranges for full-year 2022 remain unchanged. Total consolidated cash operating costs for full year 2022 are expected to be at the upper end of the company's original guidance range of between $620 and $660 per ounce and within its total consolidated AISC guidance range of between $1,010 and $1,050 per ounce.


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The company pointed out it is pleased with its second quarter of 2022 results, particularly given the challenges mining companies are facing around the world.

Importantly, B2Gold also announced that - based on the preliminary results of the optimized feasibility study for the Gramalote gold project in Colombia (a joint venture between B2Gold and AngloGold Ashanti) - both partners have determined that the project does not currently meet their investment thresholds for development of the project at this time.

Therefore, in conjunction with finalizing the Gramalote Feasibility Study by the end of the third quarter of 2022, B2Gold and AngloGold have jointly made the decision to review the alternatives for the Gramalote project over the coming months.

B2Gold is a senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines and numerous exploration and development projects in Mali, Colombia, Finland, Uzbekistan, and other countries.

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