B2Gold has announced its consolidated gold production and revenues for Q4 and full-year 2019, in addition to its production and budget guidance for 2020.
In 2020, B2Gold remains well positioned for continued strong operational and financial performance with consolidated gold production forecast to be in the range of between 955,000 and 1,005,000 ounces.
2019 gold production and revenue highlights
- Q4 consolidated gold production of 234,416 oz or 245,140 oz
- Q4 consolidated gold revenues from continuing operations of $314 million on sales of 211,800 oz; consolidated gold revenues of $324 million on sales of 218,437 oz, including gold sales from the discontinued operations
- Record annual consolidated gold production of 969,495 oz or 980,219 oz, which exceeded the upper end of the company's guidance range, and marks the eleventh consecutive year that B2Gold achieved record annual consolidated gold production
- Annual gold production from the Fekola Mine, Masbate Mine and Otjikoto Mine all exceeded the upper end of their 2019 production guidance ranges
- Annual consolidated gold revenues from continuing operations of $1,156 million on sales of 827,800 oz; annual consolidated gold revenues of $1,318 million on sales of 943,465 oz, including gold sales from discontinued operations
- Consolidated cash costs are projected to remain low for 2019 with cash operating costs forecast to be at or below the lower end of the Company's $520 and $560 per ounce guidance range and AISC to be within the Company's $835 and $875 per oz guidance range
- In December 2019, the Fekola Mine exceeded one million ounces of gold production, achieving this milestone a full year ahead of the original production schedule
- B2Gold has also announced the appointment of Liane Kelly to its Board of Directors effective January 1, 2020
2020 budget highlights
For 2020, B2Gold remains well positioned for continued strong operational and financial performance with production guidance of between 1,000,000 and 1,055,000 oz of gold with forecast cash operating costs of between $415 and $455 per oz and AISC of between $780 and $820 per oz.
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The Fekola Mine expansion project to increase Fekola's processing throughput by 1.5 Mtpa to 7.5 Mtpa from an assumed base rate of 6 Mtpa is scheduled to be completed by the end of the third quarter of 2020
New large-scale off-grid Fekola solar plant project is scheduled for completion in August 2020; expected to provide significant operating cost reductions
B2Gold plans to complete a final feasibility study for the JV Gramalote Gold Project in Colombia by December 31, 2020
Following a very successful year for exploration in 2019, B2Gold is planning another year of aggressive exploration in 2020 with a budget of approximately $51 million
Based on current assumptions, including a gold price of $1,500 per oz, the Company expects to generate cashflows from operating activities of approximately $700 million in 2020 and to repay the remaining outstanding balance of its RCF of $200 million during the year
Consolidated cash costs are projected to remain low for 2019 with cash operating costs forecast to be at or below the lower end of the Company's $520 and $560 per oz guidance range and AISC to be within the Company's $835 and $875 per oz guidance range.
2020 production outlook and cost guidance
In 2020, B2Gold remains well positioned for continued strong operational and financial performance with consolidated gold production forecast to be in the range of between 955,000 and 1,005,000 oz.
Including the Company's 34% share of attributable ounces projected from Calibre's El Limon and La Libertad mines, the Company's total gold production is expected to be between 1,000,000 and 1,055,000 oz in 2020.
Production in 2020 is anticipated to be marginally weighted towards the second half of the year (52%).
With higher production forecast for 2020, continued cost controls and the sale of the Company's higher-cost Nicaraguan mines completed, the Company's consolidated cash operating costs per ounce and AISC per ounce are both projected to further decrease in 2020.
The Company's consolidated cash operating costs are forecast to decrease significantly in 2020 and be between $415 and $455 per oz, approximately 19% lower than the Company's 2019 guidance range.
The Company's consolidated AISC are forecast to be between $780 and $820 per ounce, approximately 6% lower than the Company's 2019 guidance range.