Canada’s multinational gold producer B2Gold Corp. (TSX: BTO) completed its Nunavut mining operation’s ice road campaign last month and says first gold production there will be slightly delayed until Q2 next year.
The company provided an update on its various operations this week. B2Gold also released its operating and financial results for the quarter ending Mar. 31.
In addition to completing the Goose project’s ice road, B2Gold delivered all the materials needed to complete remaining work involved with setting up the operation. Construction of the project’s mill remains on schedule while development of the open-pit and underground mine has been slightly pushed back due to multiple factors.
Between 2026 and 2030 the company expects to produce 310,000 gold ounces per annum from Goose.
“We’re excited about it, great project, great relations with the Nunavut government and the Inuit people,” chief executive Clive Johnson said in a recent interview.
For the company’s major Fekola mining complex in Mali, B2Gold says the most notable recent development was construction of haul roads and mining infrastructure. This included a warehouse, workshop, fuel depot and offices, which were completed on schedule last year.
Gold production at Fekola, which accounts for about half of the company’s total, dropped by over 28 per cent year-over-year in Q1 to 119,141 ounces.
At B2Gold’s operations in Namibia, recent assays this year on core samples taken from the Antelope deposit near the Otjikoto project have indicated potential for a new underground mine.
At Colombia’s development-stage Gramalote operation, the gold producer says a preliminary economic assessment will be completed by the end of this quarter.
On BNN Bloomberg today, Clive Johnson, B2Gold President and CEO, addresses the media misrepresentation of challenges faced by the company in Mali, and also discusses construction progress at Goose. Watch the interview here: https://t.co/GGrVDtc3uE pic.twitter.com/qgMNwrSdUN
— B2Gold Corp. (@B2GoldCorp) May 8, 2024
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B2Gold gets C$684 million upfront payment
The company sealed a series of prepaid gold sales deals in January valued at well over half a billion. Funds will be used for the aforementioned operations and general corporate expenses.
B2Gold produced about 41,000 fewer gold ounces in Q1 this year than the first quarter of 2023 at 225,716 ounces. Furthermore, the miner sold 11.7 per cent less gold year-over-year last quarter at 265,292 ounces.
The company’s joint venture partner, Calibre Mining Corp (TSX: CXB), contributed 11,377 ounces to B2Gold’s total in Q1.
Production costs last quarter rose by 17.6 per cent year-over-year to C$230.7 million. Meanwhile, gold revenue decreased by around C$16.4 million from the first quarter of last year to C$631.2 million.
Gross profit for Q1 dropped by 13.7 per cent in comparison to last year at approximately C$252 million. Moreover, net income slid by over 52 per cent year-over-year during the 3-month period to C$66.3 million.
B2Gold’s cash and cash equivalents balance declined by over C$136 million from last year during the period to C$776.7 million.
Not all negative on the balance sheet
On a more positive note, the company’s cash sum provided by operating activities grew by about 250 per cent year-over-year to C$972.2 million. The gold producer’s long-term debt also dropped immensely from Q4 last year by over C$200 million.
Overall, many of B2Gold’s operating and financial results from last quarter were significantly inferior to the first quarter of 2023 while others improved substantially. The sequential drop in long-term debt is significant too.
The company’s share price has declined by over 33 per cent in the past year.
Calibre Mining is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
