B2Gold Corp. Announces Unaudited Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Production Guidance for the Year 2015
Aug 13 15
B2Gold Corp. announced unaudited consolidated earnings and production results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported gold revenue of $136,506,000 against $120,258,000 a year ago. Operating income was $2,782,000 against $4,131,000 a year ago. Loss before taxes was $23,439,000 against $5,396,000 a year ago. Net loss attributable to shareholders of the company was $21,185,000 or $0.02 basic and diluted per share against $11,547,000 or $0.02 basic and diluted per share a year ago. Cash provided by operating activities was $34,315,000 or $0.04 per share against $24,013,000 or $0.04 per share a year ago. The 14% increase in gold revenue was mainly attributable to an approximately 22% increase in gold sales volume, partially offset by an approximately 8% decline in the average realized gold price. The increase in cash flow from operating activities of $10.3 million is the result of higher sales volume in the second quarter of 2015, reflecting the continued strong performance of the Company's operating mines, including the first full quarter of commercial production at the Otjikoto Mine. The higher sales volume was partially offset by lower realized gold prices in the second quarter of 2015. Adjusted net loss was $1.4 million compared to an adjusted net income of $2.1 million in the second quarter of 2014. Adjusted net loss in the second quarter of 2015 primarily excluded a non-cash mark-to-market loss of $8.4 million relating to the overall change in fair value of the company's convertible senior subordinated notes, share-based payments of $3.6 million, unrealized losses on derivative instruments of $5.7 million and non-recurring non-cash interest and financing expenses of $5.5 million.
For the six months, the company reported gold revenue of $275,398,000 against $249,278,000 a year ago. Operating income was $8,413,000 against $29,271,000 a year ago. Loss before taxes was $17,861,000 against $20,793,000 a year ago. Net loss attributable to shareholders of the company was $14,923,000 or $0.02 basic and diluted per share against $35,552,000 or $0.05 basic and diluted per share a year ago. Cash provided by operating activities was $92,978,000 or $0.10 per share against $42,427,000 or $0.06 per share a year ago. Total capital expenditures was $25.9 million. The increase mainly reflects a positive working capital change of $38.2 million and a decrease in new long-term value added tax receivables of $4.3 million. Adjusted net income for the first-half of 2015 was $9.5 million or $0.01 per share compared to $19.3 million or $0.03
per share in the first-half of 2014. Adjusted net income in the first-half of 2015 primarily excluded a non-cash mark-to-market loss of $6.7 million relating to the overall change in fair value of the company's convertible senior subordinated notes, share-based payments of $9.1 million, unrealized losses on derivative instruments of $5.8 million, non-recurring non-cash interest and financing expenses of $5.5 million and the gain on sale of the Bellavista property of $2.2 million.
For the quarter, the company reported record quarterly consolidated gold production of 121,566 ounces, 42% greater than in the same period in 2014. The increased gold production was primarily attributable to the continued strong ramp-up in production at the new Otjikoto Mine, as well as increased production from both the Masbate and Limon Mines.
For the six months, the company reported record half-year consolidated gold production of 237,425 ounces (including 18,815 ounces of pre-commercial production from Otjikoto), an increase of 30% over the same period in 2014.
The company is on track to meet its 2015 annual guidance of 500,000 to 540,000 ounces of gold production at cash operating costs between $630 and $660 per ounce and all-in sustaining costs between $950 and $1,025 per ounce new $350 million corporate revolving credit facility finalized. 2015 consolidated gold production is anticipated to be weighted to the second-half of the year, due to a number of factors including the continued ramp-up of gold production at Otjikoto as well as higher budgeted grades at all operations in the latter half of the year.
B2Gold Corp. Commences Drilling on Atacama Copper Project
Jul 30 15
Arena Minerals Inc. provided an update on exploration activities on the Company's Atacama copper project. B2Gold Corp. has informed the Company that it has mobilized a diamond drill and commenced drilling on the Atacama copper project claims under option, being the Pampa Paciencia and Cerro Barco prospects (the "B2Gold JV Property"). B2Gold is focusing initially on the Pampa Paciencia target, to which the diamond drill has been mobilized. B2Gold has completed significant surface exploration on Pampa Paciencia, including large scale and detailed mapping, trenching and sampling. The surface program was successful in identifying a number of epithermal gold and silver bearing veins up to 2.8 km in strike length. Results from the trenching include intersections of 5m of 7.7g/t Au and 162.20 g/t Ag from trench 3, and 2.7m of 2.9g/t Au and 43.00 g/t Ag, including 0.6m of 5.58 g/t Au and 83.70 g/t Ag from trench 1 which is located approximately 600m SE of trench 3. The gold bearing veins are associated with adularia, chalcedony, sulfosalts, CuOx and crustiform-colloform textures typical of intermediate sulfidation gold-silver bearing systems that are found elsewhere in northern Chile. The geochemical signature of the gold bearing veins discovered to date at Paciencia exhibit a strong correlation of gold with Ag, Cu, Sb, Pb, Zn and lesser Ba, Mo, which is also common in other intermediate sulfidation Au-Ag systems. B2Gold has initiated a drill program designed to follow up on the favourable trench results. Ground work has begun on Cerro Barcoincluding mapping, sampling and additional geophysics. A large CSAMT geophysical survey was recently completed over the main part of the porphyry copper target, including the covered areas where ground magnetics carried out previously by Arena had identified a strong semi-circular anomaly. A total of 34 line km of survey was completed at 200m line spacing using a Zonge GDP-32 receiver and a Zonge GGT-30 transmitter. Initial interpretation of the field results indicate the presence of a conspicuous circular shaped structure roughly 1.2km ENE of the area containing anomalous copper values returned from previous mapping and surface sampling. Additional interpretation and final results from this survey are expected within the coming weeks but the initial interpretation is very encouraging and further work including further detailed mapping, sampling and drilling by B2 is expected to be carried out in the coming months on this exciting target. The Company will provide further updates on exploration activities being conducted by B2Gold once such results are made available to the Company.