B2Gold Corp. Reports Unaudited Consolidated Earnings and Production Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Production Guidance for the First Half and Full Year of 2015; Announces Impairment of Goodwill and Other Long-Lived Assets
Mar 13 15
B2Gold Corp. reported unaudited consolidated earnings and production results for the fourth quarter and full year ended December 31, 2014. For the quarter, gold revenue was USD 122,422,000 compared to USD 138,054,000 a year ago. Operating loss was USD 473,162,000 compared to operating income of USD 18,547,000 a year ago. Loss before taxes USD 461,021,000 compared to income before taxes of USD 26,186,000 a year ago. Net loss attributable to shareholders of the company for the period was USD 355,625,000 or USD 0.39 per basic and diluted share compared to net income of USD 26,220,000 or USD 0.02 per diluted share a year ago. Cash provided by operating activities was USD 38,564,000 compared to USD 38,352,000 a year ago. It's very similar to last year, and that's really a function of the lower gold prices in the period that loss some cash flow there. But it was offset by some positive working capital changes. Otjikoto, mine construction amounted to USD 17,282,000 compared to USD 22,694,000 a year ago. Otjikoto, prestripping amounted to USD 1,054,000 compared to USD 2,625,000 a year ago. Otjikoto, expansion amounted to USD 404,000. Gramalote, prefeasibility and exploration amounted to USD 2,972,000 compared to USD 3,898,000 a year ago. Libertad Mine, Jabali development amounted to USD 2,252,000 compared to USD 3,211,000 a year ago. Other exploration and development amounted to USD 15,880,000 compared to USD 5,907,000 a year ago. The reported loss in the quarter was mainly due to the recognition of a non-cash impairment charge relating to Masbate. Adjusted loss was USD 8.4 million or USD 0.01 per share compared to adjusted net income of USD 0.6 million or USD 0.00 per share in the same period of 2013. CapEx for the final quarter was USD 4.4 million, which was pre-stripped and Jabali development.
For the year, gold revenue was USD 486,624,000 compared to USD 544,272,000 a year ago. Operating loss was USD 741,298,000 compared to operating income of USD 116,198,000 a year ago. Loss before taxes USD 751,450,000 compared to income before taxes of USD 87,105,000 a year ago. Net loss attributable to shareholders of the company for the period was USD 665,273,000 or USD 0.90 per basic and diluted share compared to net income of USD 67,303,000 or USD 0.07 per diluted share a year ago. Cash provided by operating activities was USD 113,700,000 compared to USD 147,827,000 a year ago. Otjikoto, mine construction amounted to USD 136,069,000 compared to USD 83,469,000 a year ago. Otjikoto, mobile mine equipment amounted to USD 7,391,000 compared to USD 46,539,000 a year ago. Otjikoto, prestripping amounted to USD 10,293,000 compared to USD 6,697,000 a year ago. Otjikoto, expansion amounted to USD 1,518,000. Gramalote, prefeasibility and exploration amounted to USD 14,015,000 compared to USD 47,979,000 a year ago. Libertad Mine, Jabali development amounted to USD 6,130,000 compared to USD 14,514,000 a year ago. Other exploration and development amounted to USD 40,670,000 compared to USD 28,222,000 a year ago. Adjusted net income was USD 6.7 million or USD 0.01 per share compared to USD 59 million or USD 0.09 per share a year ago. The decrease in adjusted net income was mainly due to the decline in the average realized gold price, decreasing to USD 1,260 per ounce in 2014 from USD 1,429 per ounce in 2013. CapEx totaled USD 28.4 million.
The company recorded quarterly consolidated gold production of 111,804 ounces (or 118,963 ounces including 7,159 ounces of pre-commercial production from Otjikoto in December) and gold production at the Masbate Mine of 62,972 ounces.
The company recorded annual consolidated gold production was 384,003 ounces (or 391,162 ounces including 7,159 ounces of pre-commercial production from Otjikoto in December). Annual gold production at La Libertad Mine was 149,763 ounces.
For the first half of 2015, gold production is expected to be in the range of 225,000 to 245,000 ounces which will be lower than the gold production in the second half of the year of 275,000 to 295,000 ounces, due to a number of factors including the continued ramp-up of gold production at Otjikoto.
The company is projecting another year for gold production in 2015. Company-wide production in 2015 from the newly constructed Otjikoto Mine, together with the Masbate, La Libertad and Limon Mines is expected to be in the range of 500,000 to 540,000 ounces of gold (including pre-commercial production from Otjikoto), an increase of approximately 35% over 2014 production. For 2015, the company plans to process approximately 6.5 million tonnes of material, at an average accretive of 1.13 grams per tonne should produce between 170,000 and 180,000 ounces of gold at a cash operating cost of USD 740 to USD 775 per ounce.
The company reported impairment of goodwill and other long-lived assets of USD 435,981,000 for the fourth quarter ended December 31, 2014.
B2gold Corp. Provides Operating Update of Its Otjikoto Gold Mine, Namibia; Provides Production Guidance for 2015
Mar 10 15
B2Gold Corp. announced the company's new Otjikoto Gold Mine in Namibia achieved commercial production, ahead of schedule, on February 28, 2015. The ramp up of production continues well ahead of budget. The open pit Otjikoto Gold Mine poured first gold on December 11, 2014, one week ahead of schedule. In January 2015, the project continued its strong ramp up to commercial production ahead of schedule and produced 8,587 ounces against a budget of 8,267 ounces. Better than budgeted performance was attributed to additional mill availability (89.6% versus budget of 70%) and better than anticipated throughput (34% above budget). February 2015 also saw gold production ahead of budget (10,228 ounces produced versus 8,863 ounces budgeted). This was a product of better grade than January at 1.57 grams per tonne (versus budget of 1.71), better mill recoveries at 97.82% (versus budget of 96.17%), and better mill availability at 91.7% for the month (versus budget of 82%). Based on the performance of the mill, and the fact that the Company met commercial production criteria of 30 consecutive days of mill throughput of 65% of faceplate capacity by February 28, 2015, the Otjikoto Gold Project is declaring commercial production as of that date. Operating cash costs for the month of January were $612 per ounce versus a budget of $705 ounce.
For 2015, Otjikoto is expected to produce between 140,000 to 150,000 ounces of gold at a cash operating cost of approximately $500-$525 per ounce and all in sustaining costs of approximately $700 per ounce. The company expects annual gold production to increase to approximately 200,000 ounces in 2016 and 2017. Expansion of the Otjikoto mill from 2.5 million tonnes per year to 3.0 million tonnes per year continues on schedule with the installation of the first additional leach tank to be completed during the first quarter of 2015. Major additional work that must be completed includes installation of a second leach tank, construction of a pebble crusher and associated piping and pumping components. It is anticipated that this work will be completed by August 31, 2015. This will support additional throughput initially from the Otjikoto Mine and subsequently from the fully permitted Wolfshag deposit that is located immediately adjacent to the main, Otjikoto deposit. The project continued the excellent health and safety record with no lost time accidents for the months of January and February 2015.