Vancouver’s B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) significantly exceeded its gold production expectations last quarter and had operating and sustaining costs below its annual guidance range as well.
The company announced its financial results for the quarter ending March 31 on Wednesday and generated approximately US$108 million more from gold sales than it did in the first quarter of 2022, a 29.5 per cent increase.
B2Gold had approximately US$473.5M in gold revenue earnings before interest, taxes, depreciation and amortization (EBITDA) and generated a gross profit of about US$213.6 million, a 53 per cent increase from Q1, 2022.
The company produced 266,856 ounces, 16,137 of which are attributable to production from Calibre Mining (TSX: CXB) (OTCQX: CXBMF), another Vancouver gold producer with international operations that B2Gold has a 25 per cent interest in. Calibre’s shares are currently worth $1.66 on the Toronto Stock Exchange.
B2Gold had cash operating costs of US$600 per ounce and all-in sustaining costs of US$1,060 per ounce of gold sold in Q1. As of March 31, B2Gold had cash and cash equivalents worth US$674 million and working capital valued at US$804 million.
Q1 results. Table via B2Gold
Read more: Calibre Mining reports record revenue and gold sales for Q1 2023
Read more: Calibre Mining to purchase 50% of production royalty in Eastern Borosi, Nicaragua
Fekola is B2Gold’s top producing asset
B2Gold’s primary gold producing asset is the Fekola Mine in Mali, a site that accounted for 165,864 ounces last quarter which has generated over three million ounces during its life span. The company is currently completing an engineering study there which has indicated that Fekola may be capable of producing up to 800,000 ounces per year.
In 2023, Fekola is expected to produce between 580,000-610,000 ounces. B2Gold also produced 46,364 ounces at its Masbate Mine in the Philippines and 38,491 ounces from its Otjikoto Mine in Namibia which is currently undergoing a phased closure due to depleted resources.
During Q1, the company’s total capital expenditures amounted to US$54 million. This figure predominantly comprises US$26 million allocated for the acquisition and refurbishment of mobile equipment, US$15 million designated for pre-stripping activities, US$2 million allocated for the construction of haul roads, US$2 million for the Fekola mine’s underground development and US$1 million for the tailings facility raise project.
B2Gold’s international exploration budget for 2023 is valued at approximately US$84 million.
In April, B2Gold finalized its acquisition of Sabina Gold & Silver Corp. (TSX: SBB) (OTC: SGSVF), thereby acquiring Nunavut’s Back River Gold District where the company has budgeted US$20 million for exploration this year.
B2Gold also acquired a five per cent interest in the Yukon Territory-based mining company Snowline Gold Corp. (CSE: SGD) (OTCQB: SNWGF) in March.
B2Gold’s shares rose by 2.15 per cent Wednesday to $5.70 on the Toronto Stock Exchange.
rowan@mugglehead.com
