B2Gold Corp. [BTO-TSX; BTG-NYSE MKT; B2G-NAMIBIAN] announced record gold production and revenue for the second quarter and first half of 2016. All dollar figures are in United States dollars unless otherwise indicated.
2016 Second Quarter Highlights:
- Record quarterly consolidated gold production of 135,242 ounces, 4% (or 5,697 ounces) above budget and 11% (or 13,676 ounces) greater than the same period in 2015.
- Record gold revenue of $164.8 million on record sales of 130,829 ounces at an average price of $1,260 per ounce, an increase in revenue of 21% over the same period in 2015.
- Masbate Mine gold production of 57,188 ounces, 27% (or 12,159 ounces) above budget.
- Company on track to meet its 2016 annual guidance of 510,000 to 550,000 ounces of gold production at cash operating costs of between $560 to $595 per ounce and all-in sustaining costs of between $895 to $925 per ounce.
- Construction of the Fekola mine is progressing well, on schedule and on budget, to commence production in late 2017.
- Additional positive exploration drill results reported for the Fekola and Kiaka projects.
- Received 2015 Award for Social Responsibility in Nicaragua.
2016 First Half Highlights
- Record half-year consolidated gold production of 263,086 ounces, 6% (or 14,663 ounces) above budget and 11% (or 25,661 ounces) over the same period in 2015.
- Record consolidated half-year gold revenue of $309.1 million on record sales of 251,728 ounces at an average price of $1,228 per ounce.
- Masbate Mine gold production of 109,915 ounces, 21% (or 19,403 ounces) above budget.
- Completed a series of prepaid gold sales transactions totaling $120 million.
- Signed commitment letter to enter into a Euro equivalent $80.9 million Equipment.
- Facility with Caterpillar Financial SARL for the Fekola Project.
Consolidated gold production in the second quarter of 2016 was another quarterly record of 135,242 ounces, 4% (or 5,697 ounces) above budget and 11% (or 13,676 ounces) higher than the second quarter of 2015. The increase in gold production was attributable to the continued strong operational performance of the Masbate Mine in the Philippines. Gold production at the Otjikoto Mine was in-line with expectations despite the previously reported pit slope failure on the Phase 1 pit access ramp on April 26, 2016. A new ramp was successfully constructed and mining of the Phase 1 pit resumed in mid-June.
Consolidated gold production for the first half of 2016 was a half-year record of 263,086 ounces, 6% (or 14,663 ounces) above budget and 11% (or 25,661 ounces, including 18,815 ounces of pre-commercial production from the Otjikoto Mine) higher than the same period in 2015.
B2Gold is projecting another record year for gold production in 2016. Consolidated gold production in 2016 is expected to be in the range of 510,000 to 550,000 ounces. Gold production for the year is scheduled to be weighted to the second half of the year, mainly due to higher forecast grades at the Otjikoto, Libertad and Limon mines. Consolidated cash operating costs in 2016 are expected to be in the range of $560 to $595 per ounce, compared to $616 per ounce in 2015. The Company’s consolidated all-in sustaining costs are also expected to be lower and be in the range of $895 to $925 per ounce, compared to $947 per ounce in 2015.
Consolidated gold revenue in the second quarter of 2016 was a quarterly record of $164.8 million on record sales of 130,829 ounces at an average price of $1,260 per ounce compared to $136.5 million on sales of 114,423 ounces at an average price of $1,193 per ounce in the second quarter of 2015. The 21% increase in gold revenue was mainly attributable to a 14% increase in gold sales volume and a 6% increase in the average realized gold price.
Consolidated gold revenue for the first half of 2016 was a half-year record of $309.1 million on record sales of 251,728 ounces at an average price of $1,228 per ounce compared to $275.4 million (or $298.5 million including $23.1 million of pre-commercial sales from the Otjikoto Mine) on sales of 229,222 ounces (or 247,688 ounces including 18,466 ounces of pre-commercial sales from the Otjikoto Mine) at an average price of $1,201 per ounce in the first half of 2015.
Mine-by-mine gold production in the second quarter and first half of 2016 was as follows:
|Mine||Q2 2016||First-Half 2016||2016 Guidance|
|Masbate||57,188||109,915||175,000 – 185,000|
|Otjikoto||36,172||71,875||160,000 – 170,000|
|La Libertad||30,807||60,005||125,000 – 135,000|
|El Limon||11,075||21,291||50,000 – 60,000|
|B2Gold Consolidated||135,242||263,086||510,000 – 550,000|
Headquartered in Vancouver, Canada, B2Gold Corp. is one of the fastest growing intermediate gold producers in the world. Since its inception in 2007, B2Gold has evolved into an international gold mining company, with four operating mines, one mine under construction and numerous exploration projects across four continents in various countries, including Nicaragua, the Philippines, Namibia, Mali and Burkina Faso.
Construction of B2Gold’s Fekola Mine in southwest Mali is on schedule and on budget, and is projected to commence production at the end of 2017. As a result, B2Gold is well positioned to maintain its low-cost structure and growth profile, with production increasing to approximately 800,000 to 850,000 ounces of gold annually by 2018, with declining production costs.
For operational and development details, refer to company website.