(TheNewswire)
Vancouver, British Columbia, Canada – JZR Gold Inc. (the “Company” or “JZR”) (TSX-V: JZR) has been advised by ECO Mining Oil & Gaz Drilling and Exploration (EIRELI) (“ECO”), the operator of the Vila Nova gold project (the “Vila Nova Property”) located in the State of Amapa, Brazil, that it has received all required permits from the Agencia Nacional de Mineracao, Brazil’s national mining agency, and the relevant environmental agencies in Brazil, to allow ECO to commence preparation work on the Vila Nova Property. The Company has worked with ECO to commission the manufacture and assembly of an 800 tonne-per-day bulk sampling gravimetric mill, which is ready to commence operation on the Vila Nova Property. ECO has advised the Company that it will start up the plant to commence processing material from the Vila Nova Property within weeks.- AustraliaNorth AmericaWorld
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JZR Gold Closes Non-Brokered Private Placement Offering of Units
JZR Gold Inc. (the “ Company ” or “ JZR ”) ( TSX-V: JZR ) is pleased to announce that it has completed its previously announced non-brokered private placement (the “ Offering ”) of units (each, a “ Unit ”) at a price of $0.15 per Unit. Pursuant to the Offering, which was announced on September 27, 2024, the Company has issued 6,494,167 Units for aggregate gross proceeds of $974,125. The Company also wishes to announce that, due to investor interest, the Offering was increased from $750,000 to $975,000. Each Unit consists of one common share in the capital of the Company (each, a “ Share ”) and one common share purchase warrant (each, a “ Warrant ”). Each Warrant is exercisable into one additional Share (each, a “ Warrant Share ”) at a price of $0.20 per Warrant Share for a period of three (3) years from the date of issuance.
The Company paid cash finder’s fees of $16,749 and issued 111,660 non-transferable warrants (the “ Finder’s Warrants ”) to certain registered persons who acted as finders in connection with the Offering. Other than being non-transferable, the Finder’s Warrants have the same terms as the Warrants.
The Units, Shares, Warrants, Warrants Shares, Finder’s Warrants and any Shares issuable upon due exercise of the Finder’s Warrants are collectively referred to as the “Securities”. The Securities are subject to a hold period of four months and one day from the date of issuance.
The Company intends to use the net proceeds of the Offering to: (i) fund operations of the fully constructed 800 tonne-per-day gravimetric mill, as well as future exploration work on the Vila Nova Gold project located in Amapa State, Brazil (the “ Vila Nova Project ”), (ii) to pay certain liabilities owed to arm’s length parties and (iii) for general working capital purposes. The Company may fund operations on the Vila Nova Gold project by advancing funds, by way of one or more loans to ECO Mining Oil & Gas Drilling and Exploration (EIRELI) (“ ECO ”), as operator of the Vila Nova Project. The Company possesses a 50% net profit interest from all net profit generated from the Vila Nova Project.
One insider of the Company subscribed for a total of 270,000 Units under the Offering, which is a “related party transaction” within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“ MI 61-101 ”). The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of any related party participation in the Offering, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25% of the Company’s market capitalization.
None of the Securities sold in connection with the Offering have been or will be registered under the United States Securities Act of 1933 , as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
For further information, please contact:
Robert Klenk
Chief Executive Officer
rob@jazzresources.ca
Forward-Looking Statements
This news release contains forward-looking statements, which includes any information about activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward-looking statements in this news release include statements with respect to the details of the Offering, including the anticipated use of the net proceeds. Forward- looking information reflects the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mineral exploration industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks related to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with the specifications or expectations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action and unanticipated events related to health, safety and environmental matters); risks related to adverse weather conditions; geopolitical risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company’s continuous disclosure documents filed with the Canadian securities regulators. The forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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JZR Gold
Overview
Artisanal and small-scale mining (ASM) in Brazil is an important part of the country’s economy and culture. Dating as far back as the 17th century, the ASM sector provides livelihood for more than 450,000 traditional ASM miners and their communities.
A significant portion of the ASM sector in Brazil is gold mining, and one exploration company poised to benefit from artisanal gold stockpiles in the country is JZR Gold (TSXV: JZR.V). The company has completed the assembly of a bulk sampling facility at its Vila Nova Gold project and is now advancing toward near-term cash flow.Vila Nova Gold is the company’s flagship project located in the state of Amapá in Brazil. JZR Gold acquired the Vila Nova Gold project in January 2021 and all of Coltan Gold Minerals’ interest in and to a joint venture royalty agreement between Eco Mining Oil & Gaz Drilling and Exploration EIRELI and Coltan Gold Minerals.
In June 2021, JZR Gold reported significant gold results from sampling waste dumps and tailings at the Vila Nova Gold project. The geological report concluded the project contains gold estimates as high as 9 million tonnes with grades averaging 2.7 g/t. The total estimated gold content on the Vila Nova Gold project is a valuable 700,000 ounces in the 111.7-hectare area that was sampled. This flagship asset has significant upside potential based on tailings expansion and ongoing hard rock drilling.In Canada, JZR Gold also owns interests in the Teddy Glacier property and the Spider mine in British Columbia.
The company is in a strong position to produce profitable gold in the future. In April 2022, through contractor Brastorno Tecnologia em Equipamentos Para Mineracao, JZR Gold completed the assembly of its Gravimetric plant, a bulk sampling facility at the Vila Nova Gold project. The company has since commenced the operation of the 800-tonne-per-day bulk sampling gravimetric mill. The company is fully permitted to bulk sample up to 600,000 tonnes per year in Brazil.
JZR entered into a joint venture royalty agreement (JVRA) with ECO Mining Oil & Gaz Drilling and Exploration (EIRELI) (ECO) on July 6, 2020, for its Vila Nova gold project. JZR has satisfied all its responsibilities under the JVRA and has acquired a 50 percent net profit interest from all net profit generated from the project. ECO is entitled to 85 percent of the total sale value of all gold derived from the tailings piles, dams, pond basins and waste reservoir on the property.
JZR Gold values transparency and adherence to local laws and has ensured that all work conducted on the Vila Nova Gold project is conducted with sensitivity to the environment and within ESG parameters.
Company Highlights
- Its flagship Vila Nova Gold project is located in the state of Amapá in Brazil. The company also owns interests in the Teddy Glacier property and the Spider mine in the province of British Columbia in Canada.
- The Vila Nova Gold project contains gold estimates as high as 9 million tonnes with grades averaging 2.7 grams per ton (g/t). The total estimated gold content on the Vila Nova Gold project is a valuable 756,000 ounces in the 111.7-hectare area that was sampled.
- JZR Gold is led by an experienced management team including the co-founder of HealthTech Connex Inc.
- JZR Gold commenced the operation of the 800-tonne-per-day bulk sampling gravimetric mill located at the Vila Nova Gold Project, creating near-term cash flow for the company.JZR has satisfied all its obligations under its joint venture royalty agreement with ECO and has acquired a 50 percent net profit interest in the Vila Nova Gold Project.
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JZR Gold Provides Update on Vila Nova Gold Project
For further information, please contact:
Robert Klenk
Chief Executive Officer
E: rob@jazzresources.ca
T: 604.329.9092
Forward-Looking Statements
This news release contains forward-looking statements, which includes any information about activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward-looking statements in this news release include statements with respect to commencement of preparation work on the Vila Nova Project and the expected operation of the gravimetric mill on the Vila Nova property. Forward-looking information reflects the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mineral exploration industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks related to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with the specifications or expectations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action and unanticipated events related to health, safety and environmental matters); risks related to adverse weather conditions; geopolitical risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with the Canadian securities regulators. The forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
None of the securities of JZR have been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities law, and may not be offered or sold in the United States or to, or for the account or benefit of, persons in the United States or "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act) absent registration or an exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
JZR Gold Announces Private Placement Offering Of Units To Raise Up To $750,000
(TheNewswire)
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION,
DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART,
IN OR INTO THE UNITED STATES.
Vancouver, British Columbia, Canada September 27, 2024 TheNewswire JZR Gold Inc. (the " Company " or " JZR ") ( TSX-V: JZR ) is pleased to announce that it intends to undertake a non-brokered private placement offering (the " Offering ") of up to 5,000,000 units (each, a " Unit ") at a price of $0.15 per Unit, to raise aggregate gross proceeds of up to $750,000. Each Unit will be comprised of one common share (each, a " Share ") and one share purchase warrant (each, a " Warrant "). Each Warrant will entitle the holder to acquire one additional common share (each, a " Warrant Share ") in the capital of the Company at an exercise price of $0.20 per Warrant Share for a period of thirty-six (36) months after the closing of the Offering.
The Units will be offered pursuant to available prospectus exemptions set out under applicable securities laws and instruments, including National Instrument 45-106 – Prospectus Exemptions. The Offering will also be made available to existing shareholders of the Company who, as of the close of business on September 24, 2024, held common shares (and who continue to hold such common shares as of the closing date), pursuant to the existing shareholder exemption set out in BC Instrument 45-534 Exemption From Prospectus Requirement for Certain Trades to Existing Security Holders (the " Existing Securityholder Exemption ") . The Existing Securityholder Exemption limits a shareholder to a maximum investment of CAD$15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. If the Company receives subscriptions from investors relying on the Existing Shareholder Exemption which exceeds the maximum amount of the Offering, the Company intends to adjust the subscriptions received on a pro-rata basis.
Certain Insiders (as such term is defined under the policies of the TSX Venture Exchange (the " Exchange ")) of the Company may participate in the Offering. Any participation of Insiders in the Offering will constitute a "related party transaction" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (" MI 61-101 "). The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under subsections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Offering by Insiders will not exceed 25% of the fair market value of the Company's market capitalization.
The Offering may close in one or more tranches, as subscriptions are received. The Securities will be subject to a hold period of four months and one day from the date of issuance. Closing of the Offering, which is expected to occur on or about October 4, 2024, will be subject to satisfaction of certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including approval by the Exchange.
The Company intends to use the net proceeds from the Offering to prepare and commence operation of the gravimetric processing mill that was constructed on the Vila Nova gold project located in the state of Amapa, Brazil, and for general working capital purposes.
For further information, please contact:
Robert Klenk
Chief Executive Officer
rob@jazzresources.ca
Forward-Looking Statements
This news release contains forward-looking statements, which includes any information about activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward-looking statements in this news release include statements with respect to the details of the Offering, including the anticipated use of the net proceeds. Forward-looking information reflects the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mineral exploration industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks related to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with the specifications or expectations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action and unanticipated events related to health, safety and environmental matters); risks related to adverse weather conditions; geopolitical risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with the Canadian securities regulators. The forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
None of the securities of JZR have been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities law, and may not be offered or sold in the United States or to, or for the account or benefit of, persons in the United States or "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act) absent registration or an exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
JZR Gold Announces Closing Of Non-Brokered Private Placement Offering Of Convertible Debentures
(TheNewswire)
Vancouver, British Columbia, Canada September 10, 2024 TheNewswire JZR Gold Inc. (the " Company " or " JZR ") ( TSX-V: JZR ) is pleased to announce that further to news releases dated June 21, 2024, July 22, 2024, and August 16, 2024, that it has closed the second and final tranche of the previously announced non-brokered private placement offering (the " Offering ") of unsecured convertible debentures (the " Debentures "). The Company requested and received acceptance from the TSX Venture Exchange (the " Exchange ") to increase the Offering to up to CAD$2 million. The principal sum of Debentures issued in the second tranche totals $480,000, for total gross proceeds from the Offering of $1,980,000.
The Debentures will mature on the date that is one (1) year from the date of issuance (the " Maturity Date ") and shall bear simple interest at a rate of 10% per annum, payable on the Maturity Date. The principal sum of the Debentures, or any portion thereof, and any interest may be converted into units (the " Units ") of the Company at a conversion price of $0.20 per Unit. Each Unit shall be comprised of one common share (a " Conversion Share ") and one share purchase warrant (a " Warrant "). Each Warrant shall entitle the holder to acquire one additional common share (a " Warrant Share ") in the capital of the Company at a price of $0.25 per share for a period of twenty-four (24) months from the date that the Warrants are issued.
The Debentures, Units, Conversion Shares, Warrants and Warrant Shars are collectively referred to herein as the " Securities ". In connection with the second tranche of the Offering, the Company paid cash finder's fees of $14,700 and issued 73,500 non-transferable broker warrants being 6% of the gross proceeds raised from persons introduced by the finder. The broker warrants have an exercise price of $0.20 with an expiry date of three (3) years from the date of issuance. Other than the exercise price and expiry date, the Finders' Warrants shall otherwise be on the same terms as the Warrants.
All Debentures issued pursuant to the Offering, including any securities into which they may be exercised or converted, are subject to a statutory hold period of four months and one day from the date of issuance thereof. The Offering is subject to final acceptance by the Exchange.
The Company intends to use the net proceeds of the Offering to: (i) fund operations of the fully constructed 800 tonne-per-day gravimetric mill, as well as future exploration work on the Vila Nova Gold project located in Amapa State, Brazil (the " Vila Nova Project "), (ii) to pay certain liabilities owed to arm's length parties and (iii) for general working capital purposes. The Company may fund operations on the Vila Nova Gold project by advancing fu nds, by way of one or more loans, to ECO Mining Oil & Gaz Drilling and Exploration (EIRELI) (" ECO "), as operator of the Vila Nova Project. The Company possesses a 50% net profit interest from all net profit generated from the Vila Nova Project.
For further information, please contact:
Robert Klenk
Chief Executive Officer
E: rob@jazzresources.ca
T: 604.329.9092
Forward-Looking Statements
This news release contains forward-looking statements, which includes any information about activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward-looking statements in this news release include statements with respect to respect to the details of the Offering, including the proposed size, timing and the anticipated use of net proceeds, the receipt of regulatory approval for the Offering, the potential loan of funds to ECO and the expected operation of the gravimetric mill on the Vila Nova property. Forward-looking information reflects the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mineral exploration industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks related to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with the specifications or expectations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action and unanticipated events related to health, safety and environmental matters); risks related to adverse weather conditions; geopolitical risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with the Canadian securities regulators. The forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
None of the securities of JZR have been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities law, and may not be offered or sold in the United States or to, or for the account or benefit of, persons in the United States or "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act) absent registration or an exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
JZR Gold Extends Deadline to Close Non-Brokered Private Placement Offering of Convertible Debentures
(TheNewswire)
August 16, 2024 TheNewswire Vancouver, British Columbia, Canada JZR Gold Inc. (the " Company " or " JZR ") ( TSX-V: JZR ) announces that it has requested and has received acceptance from the TSX Venture Exchange (the " Exchange ") to extend the deadline to complete its previously announced non-brokered private placement offering (the " Offering ") of unsecured convertible debentures (the " Debentures ") to raise gross proceeds of up to $1,500,000, which was subsequently increased to $1,700,000. On July 22, 2024, the Company announced that it had closed a first tranche of the Offering and issued Debentures in the aggregate principal amount of $1,500,000. The Offering was announced on June 21, 2024, and the initial deadline to complete the Offering was August 5, 2024. Pursuant to the extension granted by the Exchange, the deadline to close the Offering is September 5, 2024.
The Debentures will mature on the date that is one (1) year from the date of issuance (the " Maturity Date ") and shall bear simple interest at a rate of 10% per annum, payable on the Maturity Date. The principal sum of the Debentures, or any portion thereof, and any interest may be converted into units (the " Units ") of the Company at a conversion price of $0.20 per Unit. Each Unit shall be comprised of one common share (a " Conversion Share ") and one share purchase warrant (a " Warrant "). Each Warrant shall entitle the holder to acquire one additional common share (a " Warrant Share ") in the capital of the Company at a price of $0.25 per share for a period of twenty-four (24) months from the date that the Warrants are issued.
The Debentures, Units, Conversion Shares, Warrants and Warrant Shars are collectively referred to herein as the " Securities ". No finder's fees were paid in connection with the closing of the first tranche of the Offering.
All Debentures issued pursuant to the Offering, including any securities into which they may be exercised or converted, are subject to a statutory hold period of four months and one day from the date of issuance thereof. The Offering is subject to final acceptance by the Exchange.
The Company intends to use the net proceeds of the Offering to: (i) fund operations of the fully constructed 800 tonne-per-day gravimetric mill, as well as future exploration work on the Vila Nova Gold project located in Amapa State, Brazil (the " Vila Nova Project "), (ii) to pay certain liabilities owed to arm's length parties and (iii) for general working capital purposes. The Company may fund operations on the Vila Nova Gold project by advancing fu nds, by way of one or more loans, to ECO Mining Oil & Gaz Drilling and Exploration (EIRELI) (" ECO "), as operator of the Vila Nova Project. Net proceeds will also be used for general working capital purposes. The Company possesses a 50% net profit interest from all net profit generated from the Vila Nova Project.
For further information, please contact:
Robert Klenk
Chief Executive Officer
E: rob@jazzresources.ca
T: 604.329.9092
Forward-Looking Statements
This news release contains forward-looking statements, which includes any information about activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward-looking statements in this news release include statements with respect to respect to the details of the Offering, including the proposed size, timing and the anticipated use of net proceeds, the receipt of regulatory approval for the Offering, the potential loan of funds to ECO and the expected operation of the gravimetric mill on the Vila Nova property. Forward-looking information reflects the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mineral exploration industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks related to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with the specifications or expectations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action and unanticipated events related to health, safety and environmental matters); risks related to adverse weather conditions; geopolitical risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with the Canadian securities regulators. The forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
None of the securities of JZR have been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities law, and may not be offered or sold in the United States or to, or for the account or benefit of, persons in the United States or "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act) absent registration or an exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
JZR Gold Announces Private Placement Offering of Units to Raise Up to $1,000,000
(TheNewswire)
JZR Gold Inc. (TSXV:JZR) (OTC:JZRIF) (the " Company " or " JZR ") is pleased to announce that it intends to undertake a non-brokered private placement offering (the " Offering ") of up to 5,000,000 units (each, a " Unit ") at a price of $0.20 per Unit, to raise aggregate gross proceeds of up to $1,000,000. Each Unit will be comprised of one common share (each, a " Share ") and one share purchase warrant (each, a " Warrant "). Each Warrant will entitle the holder to acquire one additional common share (each, a " Warrant Share ") in the capital of the Company at an exercise price of $0.30 per Warrant Share for a period of nine (9) months after the closing of the Offering
The Units will be offered pursuant to available prospectus exemptions set out under applicable securities laws and instruments, including National Instrument 45-106 – Prospectus Exemptions. The Offering will also be made available to existing shareholders of the Company who, as of the close of business on December 15, 2023, held common shares (and who continue to hold such common shares as of the closing date), pursuant to the existing shareholder exemption set out in BC Instrument 45-534 Exemption From Prospectus Requirement for Certain Trades to Existing Security Holders (the " Existing Securityholder Exemption ") . The Existing Securityholder Exemption limits a shareholder to a maximum investment of CAD$15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. If the Company receives subscriptions from investors relying on the Existing Shareholder Exemption which exceeds the maximum amount of the Offering, the Company intends to adjust the subscriptions received on a pro-rata basis.
Certain Insiders (as such term is defined under the policies of the TSX Venture Exchange (the " Exchange ")) of the Company may participate in the Offering. Any participation of Insiders in the Offering will constitute a "related party transaction" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (" MI 61-101 "). The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under subsections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Offering by Insiders will not exceed 25% of the fair market value of the Company's market capitalization.
The Offering may close in one or more tranches, as subscriptions are received. The Securities will be subject to a hold period of four months and one day from the date of issuance. Closing of the Offering, which is expected to occur on or about December 22, 2023, will be subject to satisfaction of certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including approval by the Exchange.
The Company intends to use the net proceeds from the Offering to prepare and commence operation of the gravimetric processing mill that was constructed on the Vila Nova gold project located in the state of Amapa, Brazil, and for general working capital purposes.
The Company is also pleased to announce the results of its 2023 Annual and Special General Meeting (" AGM ") of shareholders held on Friday, December 8th, 2023. Shareholders approved all the resolutions detailed in the management information circular of the Company (the " Circular "), namely:
Fixing the number of directors at three (3)
Electing all of management's nominees to the Board of Directors of the Company.
Appointing Baker Tilly WM LLP, Chartered Professional Accountants, as auditor of the Company for the ensuing year and authorizing the directors to determine the auditor's compensation.
Approving the adoption of new Articles for the Company
Approving the inclusion of certain Advance Notice Provisions in the Articles
Approving and reconfirming the Equity Incentive Plan for the Company.
A total o f 11,040,818 c ommon shares of the Company were voted at the AGM, representing approximately 25.94% of the issued and outstanding common shares of the Company.
For further information, please contact:
Robert Klenk
Chief Executive Officer
rob@jazzresources.ca
Forward-Looking Information
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information in this press release includes all statements that are not historical facts, including, without limitation, statements with respect to the details of the Offering, including the proposed size, timing and the expected use of proceeds and the receipt of regulatory approval for the Offering. Forward-looking information reflects the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These factors include, but are not limited to: the Company may not complete the Offering; the Offering may not be approved by the TSX Venture Exchange; risks associated with the business of the Company; business and economic conditions in the mineral exploration industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks related to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with the specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action and unanticipated events related to health, safety and environmental matters); risks related to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with the Canadian securities regulators. The forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
None of the securities of JZR have been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities law, and may not be offered or sold in the United States or to, or for the account or benefit of, persons in the United States or "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act) absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Copyright (c) 2023 TheNewswire - All rights reserved.
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High Grade Rock Chip Assays Confirm New Gold Discoveries at Leinster South
Metal Hawk Limited (ASX: MHK, “Metal Hawk” or the “Company”) is pleased to provide an exploration update relating to its 100% owned Leinster South Project, located 30km south of Leinster, in the world-class Agnew-Lawlers region of the eastern goldfields in Western Australia.
- Gold assays up to 62 g/t Au returned from first batch of rock chip samples at the Thylacine Prospect, located 1.5km ESE from Siberian Tiger.
- Several rock chip samples at Thylacine return high-grade gold from multiple sub-parallel quartz veins over a broad area, including:
- 24DR611: 62.3 g/t Au
- 24DR617: 30.4 g/t Au
- 24DR627: 27.0 g/t Au
- 24DR633: 20.2 g/t Au
- 24DR715: 27.3g/t Au
- 24DR613: 12.1 g/t Au
- 24DR627: 10.5 g/t Au
- 24DR616: 9.6 g/t Au
- 24DR602: 8.0 g/t Au
- Follow-up sampling at Tysons prospect returns high-grade gold in numerous samples of quartz veining, including:
- 24DR537: 84.0 g/t Au
- 24DR535: 21.5 g/t Au
- 24DR564: 10.9 g/t Au
- 24DR536: 6.2 g/t Au
- No historical drilling at Siberian Tiger, Thylacine or Tysons.
- Plans for drilling advanced with heritage survey scheduled for early 2025.
- Field mapping continues to discover new zones of outcropping gold mineralisation, including the new untested Bengal Tiger prospect.
Following the discovery of gold at Siberian Tiger only three months ago (see ASX announcement 5 August 2024), Metal Hawk’s field activities at Leinster South continue to encounter more significant outcropping high grade gold mineralisation at new prospects. As well as expanding the mineralised footprint of Siberian Tiger, the latest round of assay results successfully followed up the recent high grade rock chip result (22 g/t Au) at Tysons prospect, with several additional sites of quartz vein hosted gold mineralisation recorded (up to 84g/t Au) along the north-south trending granite-greenstone contact. Additionally, spectacular new gold assay results (up to 62 g/t Au) have confirmed the Thylacine prospect, located 1.5km to the ESE of Siberian Tiger, as another high-grade vein system at Leinster South.
Metal Hawk’s Managing Director Will Belbin commented:“In addition to the high-grade gold rock chips at Siberian Tiger, these outstanding new assay results from Thylacine and Tysons suggest that we are on the verge of multiple significant gold discoveries at Leinster South. It is incredible that there has not been any previous gold exploration, sampling or drilling at any these prospects. This is a huge opportunity for Metal Hawk and I believe there is potential for a new high-grade gold camp at Leinster South.”
Figure 1. Leinster South project; main prospects, rock chip results, magnetics (TMI)
THYLACINE
The Thylacine prospect is located approximately 1.5km ESE of Siberian Tiger on the parallel northern ESE trending greenstone belt. Initial rock chip samples from Thylacine have returned several high grade gold assays in multiple sub-parallel NW trending quartz veins. A total of 12 mineralised quartz veins have been mapped and broadly sampled, with seven samples grading greater than 10 g/t Au. The average grade of the 38 available quartz vein sample assays is 7 g/t Au. Additionally, ten rock chip assay results are pending that cover the northwestern two veins at the prospect. The mineralisation at Thylacine is very similar to Siberian Tiger, with abundant iron oxides often forming sheets or banding (stripes) and local zones of brecciation. High grade results from initial sampling at Thylacine are shown on Figure 2 below (for a full list of results see Table 1).
Figure 2. Thylacine Prospect – rock chip results over magnetics. Pending assays shown as white dots.
Figure 3. Thylacine rock chip sample 24DR611 grading 62.3 g/t Au
Figure 4. Thylacine prospect quartz vein outcrop, looking SE (parallel to the typical 1500 strike of veins)
Click here for the full ASX Release
This article includes content from Metal Hawk Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
B2Gold Reports Q3 2024 Results; On Track to Meet Total 2024 Gold Production Revised Guidance; Year-To-Date Cash Operating Costs within Annual Guidance Range and Year-To-Date All-In Sustaining Costs Below Revised Annual Guidance Range
B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) ("B2Gold" or the "Company") announces its operational and financial results for the third quarter of 2024. All dollar figures are in United States dollars unless otherwise indicated.
2024 Third Quarter Highlights
- Total gold production of 180,553 ounces : Total gold production in the third quarter of 2024 was 180,553 ounces. At the Fekola Mine, production was lower than expected due to the delayed timing of mining high-grade ore and by lower than anticipated equipment productivity and inclement weather throughout the quarter that reduced the mined volumes of high-grade ore. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability at Fekola, reducing tonnes mined in the first and second quarters of 2024, which affected the availability of higher-grade ore for the third quarter of 2024. Masbate and Otjikoto both continued to outperform expectations in the third quarter.
- Total consolidated cash operating costs of $1,061 per gold ounce produced : Total consolidated cash operating costs ( see "Non-IFRS Measures" ) were $1,061 per gold ounce produced during the third quarter of 2024. Total consolidated cash operating costs of $865 per gold ounce produced for the first nine months of 2024 are at the mid-point of the Company's annual guidance range.
- Total consolidated all-in sustaining costs of $1,650 per gold ounce sold : Total consolidated all-in sustaining costs (see "Non-IFRS Measures" ) were $1,650 per gold ounce sold for the third quarter of 2024. Total consolidated all-in sustaining costs of $1,405 per gold ounce sold for the first nine months of 2024 are below the Company's revised annual guidance range.
- Attributable net loss of $0.48 per share; adjusted attributable net income of $0.02 per share : Net loss attributable to the shareholders of the Company in the third quarter of 2024 of $634 million ($0.48 per share), predominantly due to a non-cash impairment charge on the Goose Project as a result of the previously announced construction capital increases (see "Goose Project Development"). Adjusted net income (see "Non-IFRS Measures" ) attributable to the shareholders of the Company was $29 million ($0.02 per share). Adjusted net income attributable to the shareholders of the Company in the third quarter was negatively impacted by one-time tax audit accruals of $30 million related to the agreement between the Company and the State of Mali in connection with the ongoing operation and governance of the Fekola Complex.
- Operating cash flow before working capital adjustments of $118 million : Cash flow provided by operating activities before working capital adjustments was $118 million in the third quarter of 2024.
- Strong financial position and liquidity : At September 30, 2024, the Company had cash and cash equivalents of $431 million and working capital (defined as current assets less current liabilities) of $419 million.
- Q4 2024 dividend of $0.04 per share declared : On November 6, 2024, B2Gold's Board of Directors declared a cash dividend for the fourth quarter of 2024 of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.
- Goose Project construction and development remains on schedule for first gold pour in Q2 2025 : All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 cubic meters ("m 3 ") of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road ("WIR") campaign to the Marine Laydown Area ("MLA") from global locations.
- Memorandum of Understanding with the State of Mali relating to the Fekola Complex: On September 11, 2024, the Company announced that it had entered into a Memorandum of Understanding (the "MOU Agreement") with the State of Mali (the "State") in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine (owned 80% by B2Gold and 20% by the State of Mali) and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase for Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.
Third Quarter 2024 Results
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue ($ in thousands) | 448,229 | 477,888 | 1,402,242 | 1,422,298 |
Net (loss) income ($ in thousands) | (631,032 ) | (34,770) | (617,328 ) | 158,984 |
(Loss) earnings per share – basic (1) ($/ share) | (0.48 ) | (0.03) | (0.47 ) | 0.10 |
(Loss) earnings per share – diluted (1) ($/ share) | (0.48 ) | (0.03) | (0.47 ) | 0.10 |
Cash (used) provided by operating activities ($ thousands) | (16,099 ) | 110,204 | 757,060 | 509,010 |
Average realized gold price ($/ ounce) | 2,483 | 1,920 | 2,285 | 1,929 |
Adjusted net income (1)(2) ($ in thousands) | 29,157 | 64,840 | 189,109 | 256,506 |
Adjusted earnings per share (1)(2) – basic ($) | 0.02 | 0.05 | 0.14 | 0.21 |
Consolidated operations results: | ||||
Gold sold (ounces) | 180,525 | 248,889 | 613,731 | 737,139 |
Gold produced (ounces) | 180,553 | 225,052 | 599,133 | 721,732 |
Production costs ($ in thousands) | 192,408 | 171,425 | 500,452 | 451,791 |
Cash operating costs (2) ($/ gold ounce sold) | 1,066 | 689 | 815 | 613 |
Cash operating costs (2) ($/ gold ounce produced) | 1,061 | 741 | 852 | 638 |
Total cash costs (2) ($/ gold ounce sold) | 1,248 | 827 | 972 | 752 |
All-in sustaining costs (2) ($/ gold ounce sold) | 1,650 | 1,273 | 1,400 | 1,177 |
Operations results including equity investment in Calibre: | ||||
Gold sold (ounces) | 180,525 | 266,616 | 633,375 | 787,805 |
Gold produced (ounces) | 180,553 | 242,838 | 618,777 | 772,395 |
Production costs ($ in thousands) | 192,408 | 188,216 | 525,578 | 502,162 |
Cash operating costs (2) ($/ gold ounce sold) | 1,066 | 706 | 830 | 637 |
Cash operating costs (2) ($/ gold ounce produced) | 1,061 | 755 | 865 | 661 |
Total cash costs (2) ($/ gold ounce sold) | 1,248 | 840 | 984 | 772 |
All-in sustaining costs (2) ($/ gold ounce sold) | 1,650 | 1,272 | 1,405 | 1,182 |
(1) Attributable to the shareholders of the Company.
(2) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company's financial statements, refer to "Non-IFRS Measures".
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. At September 30, 2024, the Company had cash and cash equivalents of $431 million (December 31, 2023 - $307 million) and working capital (defined as current assets less current liabilities) of $419 million (December 31, 2023 - $397 million). During the quarter ended September 30, 2024, the Company drew down $200 million on the Company's $700 million revolving credit facility, leaving $500 million remaining available for future draw downs.
Fourth Quarter 2024 Dividend
On November 6, 2024, B2Gold's Board of Directors declared a cash dividend for the fourth quarter of 2024 (the "Q4 2024 Dividend") of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.
In 2023, the Company implemented a Dividend Reinvestment Plan ("DRIP"). For the purposes of the Q4 2024 Dividend, the Company is pleased to announce that a discount of 3% will be applied to calculate the Average Market Price (as defined in the DRIP) of its common shares issued from treasury. However, the Company may, from time to time, in its discretion, change or eliminate any applicable discount, which would be publicly announced, all in accordance with the terms and conditions of the DRIP. Participation in the DRIP is optional. In order to participate in the DRIP in time for the Q4 2024 Dividend, registered shareholders must deliver a properly completed enrollment form to Computershare Trust Company of Canada by no later than 4:00 p.m. (Toronto time) on December 5, 2024. Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution, or other intermediary through which they hold common shares well in advance of the above date for instructions on how to enroll in the DRIP.
This dividend is designated as an "eligible dividend" for the purposes of the Income Tax Act (Canada). Dividends paid by B2Gold to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes.
The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with B2Gold's constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.
For more information regarding the DRIP and enrollment in the DRIP, please refer to the Company's website at https://www.b2gold.com/investors/stock_info/ .
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
The Company has filed a registration statement relating to the DRIP with the U.S. Securities and Exchange Commission that may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at http://www.sec.gov/EDGAR or by contacting the Company using the contact information at the end of this news release.
Operations
Fekola Complex - Mali
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue ($ in thousands) | 194,988 | 292,375 | 721,898 | 888,272 |
Gold sold (ounces) | 78,889 | 152,239 | 318,005 | 460,139 |
Average realized gold price ($/ ounce) | 2,472 | 1,921 | 2,270 | 1,930 |
Tonnes of ore milled | 2,466,087 | 2,392,829 | 7,449,327 | 6,988,763 |
Grade (grams/ tonne) | 1.07 | 1.82 | 1.40 | 2.17 |
Recovery (%) | 92.7 | 92.1 | 92.7 | 91.9 |
Gold production (ounces) | 78,207 | 128,942 | 308,931 | 447,233 |
Production costs ($ in thousands) | 109,857 | 93,388 | 276,443 | 250,294 |
Cash operating costs (1) ($/ gold ounce sold) | 1,393 | 613 | 869 | 544 |
Cash operating costs (1) ($/ gold ounce produced) | 1,434 | 688 | 935 | 561 |
Total cash costs (1) ($/ gold ounce sold) | 1,653 | 773 | 1,066 | 706 |
All-in sustaining costs (1) ($/ gold ounce sold) | 2,287 | 1,261 | 1,583 | 1,125 |
Capital expenditures ($ in thousands) | 64,464 | 83,166 | 198,205 | 211,112 |
Exploration ($ in thousands) | 996 | — | 3,136 | 1,706 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company's financial statements, refer to "Non-IFRS Measures".
The Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) produced 78,207 ounces of gold in the third quarter of 2024, below expectations due to the delayed timing of mining of high-grade ore resulting in less high-grade ore processed during the quarter. For the third quarter of 2024, mill feed grade was 1.07 grams per tonne ("g/t"), mill throughput was 2.47 million tonnes, and gold recovery averaged 92.7%. Lower than anticipated equipment productivity and inclement weather throughout the quarter impacted the mined volumes of high-grade ore during the third quarter of 2024. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability for the first nine months of 2024, reducing tonnes mined during the first and second quarters of 2024, which affected the availability of higher-grade ore of Phase 7 of the Fekola pit resulting in less high-grade ore processed during the third quarter of 2024. The damaged machine has been replaced and the new unit operated for the full third quarter of 2024. The reduction in mining rates experienced in the first nine months of 2024 is expected to continue to impact the availability of higher-grade ore from Phase 7 of the Fekola pit during the fourth quarter of 2024 resulting in an expected decrease in Fekola production as compared to initial production estimates. Mining and processing of these ounces is now expected in the first quarter of 2025. Despite short term variations, overall, ore volumes and grades continue to reconcile relatively well with modelled values.
The Fekola Mine's cash operating costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $1,434 per gold ounce produced ($1,393 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were higher than expected as a result of lower than anticipated gold production during the third quarter, partially offset by lower fuel costs, higher mill throughput, higher gold recovery and lower mining costs due to lower than expected mined tonnage.
All-in sustaining costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $2,287 per gold ounce sold. All-in sustaining costs were higher than expected as a result of higher than anticipated production costs per gold ounce sold, lower than expected gold ounces sold, higher than anticipated sustaining capital expenditures due to the timing of expenditures and higher gold royalties resulting from a higher than anticipated average realized gold price.
Capital expenditures in the third quarter of 2024 totalled $64 million primarily consisting of $12 million for deferred stripping, $10 million for mobile equipment purchases and rebuilds, $7 million for the construction of a new tailings storage facility, $20 million for Fekola underground development and $11 million for solar plant expansion. All solar panels, inverters, transformers and the tracking system have been installed for the solar plant expansion and the solar field was energized on September 29, 2024. Commissioning has continued with final completion of the solar plant expansion expected by the end of November 2024.
As a result of the delay in accessing higher-grade ounces from Phase 7 of the Fekola pit, production from the Fekola Complex is expected to be towards the low end of Fekola's revised guidance range of between 420,000 and 450,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be towards the upper ends of their respective revised guidance ranges of between $870 and $930 per ounce and $1,510 and $1,570 per ounce.
Fekola Regional Development
The Fekola Complex is comprised of the Fekola Mine (Medinandi permit hosting the Fekola and Cardinal pits and Fekola underground) and Fekola Regional (Anaconda Area (Bantako, Menankoto, and Bakolobi permits) and the Dandoko permit).
The development of Fekola Regional is expected to demonstrate positive economics through the enhancement of the overall production profile and the extension of mine life of the Fekola Complex. Based on B2Gold's preliminary planning, Fekola Regional could provide selective higher-grade saprolite material (average annual grade of up to 2.2 g/t gold) to be trucked approximately 20 kilometers ("km") and fed into the Fekola mill at a rate of up to 1.5 million tonnes per annum.
On September 11, 2024, the Company announced the MOU Agreement with the State in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase of Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.
Masbate Mine – The Philippines
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue ($ in thousands) | 120,115 | 97,556 | 328,165 | 265,839 |
Gold sold (ounces) | 47,960 | 50,950 | 142,260 | 137,300 |
Average realized gold price ($/ ounce) | 2,504 | 1,915 | 2,307 | 1,936 |
Tonnes of ore milled | 2,197,112 | 2,155,170 | 6,409,631 | 6,224,572 |
Grade (grams/ tonne) | 0.98 | 1.01 | 0.97 | 0.99 |
Recovery (%) | 72.4 | 73.0 | 72.4 | 73.6 |
Gold production (ounces) | 50,215 | 51,170 | 144,512 | 147,012 |
Production costs ($ in thousands) | 42,697 | 44,056 | 123,070 | 117,219 |
Cash operating costs (1) ($/ gold ounce sold) | 890 | 865 | 865 | 854 |
Cash operating costs (1) ($/ gold ounce produced) | 811 | 834 | 839 | 844 |
Total cash costs (1) ($/ gold ounce sold) | 1,039 | 993 | 1,002 | 979 |
All-in sustaining costs (1) ($/ gold ounce sold) | 1,167 | 1,124 | 1,174 | 1,152 |
Capital expenditures ($ in thousands) | 5,192 | 5,896 | 20,229 | 20,947 |
Exploration ($ in thousands) | 1,290 | 774 | 3,039 | 2,741 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company's financial statements, refer to "Non-IFRS Measures".
The Masbate Mine in the Philippines continued its strong performance with third quarter of 2024 gold production of 50,215 ounces, above expectations due to higher mill throughput and higher than expected mill feed grade. For the third quarter of 2024, mill feed grade was 0.98 g/t, mill throughput was 2.20 million tonnes, and gold recovery averaged 72.4%, lower than expected. Lower gold recovery in the third quarter was a result of mining additional lower recovery high-grade sulphide ore during the third quarter. Actual gold recovery for the third quarter of 2024 remained in line with modeled recovery values for the ore mined.
The Masbate Mine's cash operating costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $811 per gold ounce produced ($890 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were significantly lower than expected as a result of higher gold production, lower than anticipated mining and processing costs, higher mill productivity and lower fuel costs.
All-in sustaining costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $1,167 per ounce sold. All-in sustaining costs for the third quarter of 2024 were significantly lower than expected as a result of lower than anticipated production costs per gold ounce sold, higher than expected gold ounces sold and lower than expected sustaining capital expenditures.
Capital expenditures in the third quarter of 2024 totalled $5 million, primarily consisting of $2 million for mobile equipment purchases and rebuilds and $1 million for expansion of the existing tailings storage facility.
The Masbate Mine is expected to produce between 175,000 and 195,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be at or below the low end of their respective revised guidance ranges of between $910 and $970 per ounce and $1,260 and $1,320 per ounce.
Otjikoto Mine - Namibia
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue ($ in thousands) | 133,126 | 87,957 | 352,179 | 268,187 |
Gold sold (ounces) | 53,676 | 45,700 | 153,466 | 139,700 |
Average realized gold price ($/ ounce) | 2,480 | 1,925 | 2,295 | 1,920 |
Tonnes of ore milled | 872,722 | 855,740 | 2,549,847 | 2,554,747 |
Grade (grams/ tonne) | 1.88 | 1.66 | 1.80 | 1.57 |
Recovery (%) | 98.8 | 98.4 | 98.6 | 98.6 |
Gold production (ounces) | 52,131 | 44,940 | 145,690 | 127,487 |
Production costs ($ in thousands) | 39,854 | 33,981 | 100,939 | 84,278 |
Cash operating costs (1) ($/ gold ounce sold) | 742 | 744 | 658 | 603 |
Cash operating costs (1) ($/ gold ounce produced) | 740 | 785 | 687 | 671 |
Total cash costs (1) ($/ gold ounce sold) | 841 | 820 | 749 | 680 |
All-in sustaining costs (1) ($/ gold ounce sold) | 896 | 1,178 | 963 | 1,074 |
Capital expenditures ($ in thousands) | 609 | 13,290 | 26,128 | 46,266 |
Exploration ($ in thousands) | 1,888 | 963 | 5,191 | 2,453 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company's financial statements, refer to "Non-IFRS Measures".
The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, continued to outperform during the third quarter of 2024, producing 52,131 ounces of gold, above expectations as a result of higher than anticipated mill feed grade and higher than expected mill throughput. For the third quarter of 2024, mill feed grade was 1.88 g/t, mill throughput was 0.87 million tonnes, and gold recovery averaged 98.8%. Ore production from the Wolfshag underground mine for the third quarter of 2024 averaged over 1,800 tonnes per day at an average grade of 3.64 g/t gold.
The Otjikoto Mine's cash operating costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $740 per gold ounce produced ($742 per ounce gold sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were lower than anticipated due to higher than expected gold production in the third quarter of 2024.
All-in sustaining costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $896 per gold ounce sold. All-in sustaining costs for the third quarter of 2024 were lower than expected as a result of lower than expected cash operating costs and higher gold ounces sold, partially offset by higher gold royalties due to a higher than anticipated average realized gold price.
Capital expenditures for the third quarter of 2024 totalled $1 million for Wolfshag underground mine development.
The Otjikoto Mine is expected to produce between 185,000 and 205,000 ounces of gold in 2024 at cash operating costs of between $685 and $745 per ounce and all-in sustaining costs at or below the lower end of its guidance range of between $960 and $1,020 per ounce.
Goose Project Development
The Back River Gold District consists of five mineral claims blocks along an 80 km belt. Construction is underway at the most advanced project in the district, the Goose Project, and has been de-risked with significant infrastructure currently in place.
B2Gold recognizes that respect and collaboration with the Kitikmeot Inuit Association ("KIA") is central to the license to operate in the Back River Gold District and will continue to prioritize developing the project in a manner that recognizes Inuit priorities, addresses concerns, and brings long-term socio-economic benefits to the Kitikmeot Region. B2Gold looks forward to continuing to build on its strong collaboration with the KIA and Kitikmeot Communities.
As announced in May 2024, development of the open pit and underground was slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and the prioritization of critical path construction activities. An additional three months of mining was added to the schedule to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit. With the schedule change, the mill is expected to start wet commissioning in the second quarter of 2025 with ramp up to full production in the third quarter of 2025. The Company continues to estimate that gold production in calendar year 2025 will be between 120,000 ounces and 150,000 ounces. The updated production profile has resulted in the Company now estimating that average annual gold production for the six year period from 2026 to 2031 will increase to be in excess of 310,000 ounces per year. The Company remains on track to complete an updated Goose Project life of mine plan by the end of the first quarter of 2025.
B2Gold successfully completed the 2024 WIR campaign in the second quarter of 2024 and delivered all necessary materials from the MLA to complete the construction of the Goose Project. All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 m 3 of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 WIR campaign to the MLA from global locations. Sealift offloading performance significantly increased throughout the 2024 sealift due to a newly constructed barge ramp. Current activities at the MLA now include continued maintenance and preparation of the WIR construction and haulage fleet and staging all materials for shipment on the 2025 WIR to the Goose Project site.
Development of the open pit and underground remain the Company's primary focus to ensure that adequate material is available for mill startup and that the Echo pit is available for tailings placement. Mining of the Echo pit is meeting production targets and is anticipated to be ready to receive tailings when the mill starts. The underground mine remains on schedule for commencement of production by the end of the second quarter of 2025.
In the third quarter and first nine months of 2024, the Company incurred cash expenditures of $121 million (C$165 million) and $366 million (C$498 million), respectively, for the Goose Project on construction and mine development activities and $110 million (C$150 million) and $155 million (C$211 million), respectively, on supplies inventory.
As announced on September 12, 2024, the total Goose Project construction, mine development, and sustaining capital cash expenditures estimate (the "Total Goose Project Construction and Mine Development Cost") before first gold production estimate is C$1,540 million, a C$290 million (or 23%) increase from the previous estimate from January 2024. Approximately 52% (or C$150 million) of the increase can be attributed to the one quarter delay in first gold production previously disclosed, combined with the acceleration of capital items that were previously anticipated to occur after first gold production. The acceleration of certain capital items is expected to make the Goose Project a more reliable and de-risked operation upon mill startup. The accelerated capital items include accelerated purchases of mining equipment versus the previous estimate to ensure continued growth in mining rates through 2025, the building of an accommodation complex at the MLA which will reduce ongoing annual costs associated with running the WIR, the construction of critical infrastructure at the Goose Project site, inclusive of warehousing, maintenance, mine dry facility, camp facility expansion, and the design acceleration of a reverse osmosis plant to optimize water management and lower ongoing operating costs. Approximately 24% (or C$70 million) of the increase in the Total Goose Project Construction and Mine Development Cost can be attributed to the increased cost of the logistics of shipping materials to the Goose Project site.
As a result of the previously announced increases to the Total Goose Project Construction and Mine Development Cost before first gold production estimate, the Company incurred a non-cash impairment of $661 million on the Goose Project carrying value in the third quarter of 2024.
Gramalote Project Development
On June 18, 2024, the Company announced the results of a positive Preliminary Economic Assessment(" PEA") on its 100% owned Gramalote Project located in the Department of Antioquia, Colombia. The PEA outlines a significant production profile with average annual gold production of 185,000 ounces over a 12.5 year project life with a low-cost structure and favorable metallurgical characteristics. Additionally, the PEA outlines strong project economics with an after-tax NPV 5% of $778 million and an after-tax internal rate of return of 20.6%, with a project payback on pre-production capital of 3.1 years.
The estimated pre-production capital cost for the project is $807 million (including approximately $93 million for mining equipment and $63 million for contingency). A robust amount of historical drilling and engineering studies have been completed on the Gramalote Project, which significantly de-risks future project development. Based on the positive results from the PEA, B2Gold believes that the Gramalote Project has the potential to become a medium-scale, low-cost open pit gold mine.
B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025 and a $10 million budget has been approved by the Board. Due to the work completed for previous studies, the work remaining to finalize a feasibility study for the updated medium-scale project is not expected to be extensive. The main work programs for the feasibility study include geotechnical and environmental site investigations for the processing plant and waste dump footprints, as well as capital and operating cost estimates.
The Gramalote Project will continue to advance resettlement programs, establish coexistence programs for small miners, work on health, safety and environmental projects and continue to work with the government and local communities on social programs.
Due to the desired modifications to the processing plant and infrastructure locations, a Modified Environment Impact Study is required. B2Gold has commenced work on the modifications to the Environment Impact Study and expect it to be completed and submitted shortly following the completion of the feasibility study. If the final economics of the feasibility study are positive and B2Gold makes the decision to develop the Gramalote Project as an open pit gold mine, B2Gold would utilize its proven internal mine construction team to build the mine and mill facilities.
Outlook
Total gold production for 2024 is forecast to be towards the low end of the Company's guidance range of between 800,000 and 870,000 ounces, including 20,000 ounces of attributable production from Calibre Mining Corp ("Calibre").
Gold production in 2025 is expected to increase significantly relative to 2024 as a result of the scheduled mining and processing of higher-grade ore from the Fekola and Cardinal pits made accessible by the meaningful stripping campaign that has been undertaken throughout 2024, the expected full year of contribution from Fekola Regional, which is anticipated to contribute between 80,000 and 100,000 ounces of additional production, and commencement of mining the higher-grade Fekola underground (subject to receipt of necessary permits for Fekola Regional and Fekola underground).
Upon completion of construction activities at the Goose Project, the mine is expected to commence gold production in the second quarter of 2025 and contribute between 120,000 and 150,000 ounces of gold in calendar year 2025. Over the first six full calendar years of operation from 2026 to 2031, the average annual gold production for the Goose Project is estimated to be in excess of 310,000 ounces of gold per year.
The positive PEA results on the Company's 100% owned Gramalote Project, located in the Department of Antioquia, Colombia, outlines a significant production profile with average annual gold production of 234,000 ounces per year for the first five years of production, and strong project economics over a 12.5 year project life. As a result, B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025 and a $10 million budget has been approved by the Board.
Following the release of an initial Inferred Mineral Resource Estimate for the Springbok Zone, the southernmost shoot of the recently discovered Antelope deposit, located approximately three km south of the Otjikoto Phase 5 open pit at the Otjikoto Mine in Namibia, in the second quarter of 2024, the Company has commenced a PEA which is expected to be completed in the first half of 2025. Subject to receipt of a positive PEA and permit, mining of the Springbok Zone, coupled with the exploration potential of the greater Antelope deposit, could begin to contribute to gold production at Otjikoto in 2026. The Antelope deposit has the potential to supplement the processing of low-grade stockpiles at the Otjikoto Mine through 2031, with the goal of increasing gold production levels to over 100,000 ounces per year from 2026 through 2031.
The Company's ongoing strategy is to continue to maximize profitable production from its existing mines, maintain a strong financial position, realize the significant potential increase in gold production from the Company's existing development projects, continue exploration programs across the Company's robust land packages, evaluate new exploration, development and production opportunities and continue to return capital to shareholders.
Third Quarter 2024 Financial Results - Conference Call Details
B2Gold executives will host a conference call to discuss the results on Thursday, November 7, 2024, at 8:00 am PT / 11:00 am ET.
Participants may register for the conference call here: registration link . Upon registering, participants will receive a calendar invitation by email with dial in details and a unique PIN. This will allow participants to bypass the operator queue and connect directly to the conference. Registration will remain open until the end of the conference call. Participants may also dial in using the numbers below:
- Toll-free in U.S. and Canada: +1 (844) 763-8274
- All other callers: +1 (647) 484-8814
The conference call will be available for playback for two weeks by dialing toll-free in the U.S. and Canada: +1 (855) 669-9658, replay access code 4078435. All other callers: +1 (412) 317-0088, replay access code 4078435.
About B2Gold
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland. B2Gold forecasts total consolidated gold production of between 800,000 and 870,000 ounces in 2024.
Qualified Persons
Bill Lytle, Senior Vice President and Chief Operating Officer, a qualified person under NI 43-101, has approved the scientific and technical information related to operations matters contained in this news release.
Andrew Brown, P. Geo., Vice President, Exploration, a qualified person under NI 43-101, has approved the scientific and technical information related to exploration and mineral resource matters contained in this news release.
ON BEHALF OF B2GOLD CORP.
"Clive T. Johnson"
President and Chief Executive Officer
Source: B2Gold Corp.
The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in this news release.
Production results and production guidance presented in this news release reflect total production at the mines B2Gold operates on a 100% project basis. Please see our Annual Information Form dated March 14, 2024 for a discussion of our ownership interest in the mines B2Gold operates.
This news release includes certain "forward-looking information" and "forward-looking statements" (collectively forward-looking statements") within the meaning of applicable Canadian and United States securities legislation, including: projections; outlook; guidance; forecasts; estimates; and other statements regarding future or estimated financial and operational performance, gold production and sales, revenues and cash flows, and capital costs (sustaining and non-sustaining) and operating costs, including projected cash operating costs and AISC, and budgets on a consolidated and mine by mine basis; future or estimated mine life, metal price assumptions, ore grades or sources, gold recovery rates, stripping ratios, throughput, ore processing; statements regarding anticipated exploration, drilling, development, construction, permitting and other activities or achievements of B2Gold; and including, without limitation: remaining well positioned for continued strong operational and financial performance in 2024; projected gold production, cash operating costs and AISC on a consolidated and mine by mine basis in 2024; total consolidated gold production of between 800,000 and 870,000 ounces (including 20,000 attributable ounces from Calibre) in 2024, with cash operating costs of between $835 and $895 per ounce and AISC of between $1,420 and $1,480 per ounce; B2Gold's continued prioritization of developing the Goose Project in a manner that recognizes Indigenous input and concerns and brings long-term socio-economic benefits to the area; the Goose Project capital cost being approximately C$1,190 million and the net cost of open pit and underground development, deferred stripping, and sustaining capital expenditures to be incurred prior to first gold production being approximately C$350 million and the cost for reagents and other working capital items being C$330 million; the Goose Project producing approximately 310,000 ounces of gold per year for the first six years; the potential for first gold production in the second quarter of 2025 from the Goose Project and the estimates of such production; trucking of selective higher-grade saprolite material from the Anaconda Area to the Fekola mill having the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources; the receipt of the exploitation permit for Fekola Regional and Fekola Regional production expected to commence at the beginning of 2025; the receipt of a permit for Fekola underground and Fekola underground commencing operation in mid-2025; the potential for the Antelope deposit to be developed as an underground operation and contribute gold during the low-grade stockpile processing in 2026 through 2031; the results and estimates in the Gramalote PEA, including the project life, average annual gold production, processing rate, capital cost, net present value, after-tax net cash flow, after-tax internal rate of return and payback; the timing and results of a feasibility study on the Gramalote Project; and the potential to develop the Gramalote Project as an open pit gold mine. All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as "expect", "plan", "anticipate", "project", "target", "potential", "schedule", "forecast", "budget", "estimate", "intend" or "believe" and similar expressions or their negative connotations, or that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond B2Gold's control, including risks associated with or related to: the volatility of metal prices and B2Gold's common shares; changes in tax laws; the dangers inherent in exploration, development and mining activities; the uncertainty of reserve and resource estimates; not achieving production, cost or other estimates; actual production, development plans and costs differing materially from the estimates in B2Gold's feasibility and other studies; the ability to obtain and maintain any necessary permits, consents or authorizations required for mining activities; environmental regulations or hazards and compliance with complex regulations associated with mining activities; climate change and climate change regulations; the ability to replace mineral reserves and identify acquisition opportunities; the unknown liabilities of companies acquired by B2Gold; the ability to successfully integrate new acquisitions; fluctuations in exchange rates; the availability of financing; financing and debt activities, including potential restrictions imposed on B2Gold's operations as a result thereof and the ability to generate sufficient cash flows; operations in foreign and developing countries and the compliance with foreign laws, including those associated with operations in Mali, Namibia, the Philippines and Colombia and including risks related to changes in foreign laws and changing policies related to mining and local ownership requirements or resource nationalization generally; remote operations and the availability of adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory, political and country risks, including local instability or acts of terrorism and the effects thereof; the reliance upon contractors, third parties and joint venture partners; the lack of sole decision-making authority related to Filminera Resources Corporation, which owns the Masbate Project; challenges to title or surface rights; the dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; competition with other mining companies; community support for B2Gold's operations, including risks related to strikes and the halting of such operations from time to time; conflicts with small scale miners; failures of information systems or information security threats; the ability to maintain adequate internal controls over financial reporting as required by law, including Section 404 of the Sarbanes-Oxley Act; compliance with anti-corruption laws, and sanctions or other similar measures; social media and B2Gold's reputation; risks affecting Calibre having an impact on the value of the Company's investment in Calibre, and potential dilution of our equity interest in Calibre; as well as other factors identified and as described in more detail under the heading "Risk Factors" in B2Gold's most recent Annual Information Form, B2Gold's current Form 40-F Annual Report and B2Gold's other filings with Canadian securities regulators and the U.S. Securities and Exchange Commission (the "SEC"), which may be viewed at www.sedar.com and www.sec.gov, respectively (the "Websites"). The list is not exhaustive of the factors that may affect B2Gold's forward-looking statements.
B2Gold's forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time. These assumptions and factors include, but are not limited to, assumptions and factors related to B2Gold's ability to carry on current and future operations, including: development and exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; B2Gold's ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.
B2Gold's forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date hereof. B2Gold does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities B2Gold will derive therefrom. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.
Non-IFRS Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including "cash operating costs" and "all-in sustaining costs" (or "AISC"). Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and should be read in conjunction with B2Gold's consolidated financial statements. Readers should refer to B2Gold's Management Discussion and Analysis, available on the Websites, under the heading "Non-IFRS Measures" for a more detailed discussion of how B2Gold calculates certain of such measures and a reconciliation of certain measures to IFRS terms.
Cautionary Statement Regarding Mineral Reserve and Resource Estimates
The disclosure in this news release was prepared in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource and reserve information contained or referenced in this news release may not be comparable to similar information disclosed by public companies subject to the technical disclosure requirements of the SEC. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 (Expressed in thousands of United States dollars, except per share amounts) (Unaudited) | ||||||||||||||||
For the three months ended Sept. 30, 2024 | For the three months ended Sept. 30, 2023 | For the nine months ended Sept. 30, 2024 | For the nine months ended Sept. 30, 2023 | |||||||||||||
Gold revenue | $ | 448,229 | $ | 477,888 | $ | 1,402,242 | $ | 1,422,298 | ||||||||
Cost of sales | ||||||||||||||||
Production costs | (192,408 | ) | (171,425 | ) | (500,452 | ) | (451,791 | ) | ||||||||
Depreciation and depletion | (88,051 | ) | (101,568 | ) | (273,505 | ) | (293,388 | ) | ||||||||
Royalties and production taxes | (32,929 | ) | (34,389 | ) | (96,045 | ) | (102,661 | ) | ||||||||
Total cost of sales | (313,388 | ) | (307,382 | ) | (870,002 | ) | (847,840 | ) | ||||||||
Gross profit | 134,841 | 170,506 | 532,240 | 574,458 | ||||||||||||
General and administrative | (13,283 | ) | (13,064 | ) | (40,389 | ) | (41,170 | ) | ||||||||
Share-based payments | (5,069 | ) | (4,289 | ) | (14,815 | ) | (15,734 | ) | ||||||||
Impairment of long-lived assets | (661,160 | ) | (111,597 | ) | (876,376 | ) | (116,482 | ) | ||||||||
Gain on sale of mining interests | 7,453 | — | 56,115 | — | ||||||||||||
Gain on sale of shares in associate | — | — | 16,822 | — | ||||||||||||
Non-recoverable input taxes | (3,353 | ) | (1,191 | ) | (10,352 | ) | (4,237 | ) | ||||||||
Share of net (loss) income of associates | (98 | ) | 5,561 | 4,581 | 17,549 | |||||||||||
Foreign exchange gains (losses) | 5,893 | (11,739 | ) | (7,842 | ) | (14,588 | ) | |||||||||
Community relations | (855 | ) | (1,158 | ) | (1,786 | ) | (3,883 | ) | ||||||||
Write-down of mining interests | — | (565 | ) | (636 | ) | (17,022 | ) | |||||||||
Restructuring charges | — | (5,071 | ) | — | (12,151 | ) | ||||||||||
Other (expense) income | (26,550 | ) | 130 | (34,304 | ) | (4,159 | ) | |||||||||
Operating (loss) income | (562,181 | ) | 27,523 | (376,742 | ) | 362,581 | ||||||||||
Interest and financing expense | (6,966 | ) | (3,190 | ) | (24,002 | ) | (9,032 | ) | ||||||||
Interest income | 4,011 | 3,887 | 17,137 | 15,741 | ||||||||||||
Change in fair value of gold stream | (1,957 | ) | 7,600 | (21,196 | ) | 6,500 | ||||||||||
Losses on dilution on associate | — | — | (8,984 | ) | — | |||||||||||
(Losses) gains on derivative instruments | (6,378 | ) | 5,667 | (5,674 | ) | 6,092 | ||||||||||
Other income (expense) | 1,777 | (951 | ) | 1,932 | (5,069 | ) | ||||||||||
(Loss) income from operations before taxes | (571,694 | ) | 40,536 | (417,529 | ) | 376,813 | ||||||||||
Current income tax, withholding and other taxes | (74,804 | ) | (68,210 | ) | (233,085 | ) | (216,155 | ) | ||||||||
Deferred income tax recovery (expense) | 15,466 | (7,096 | ) | 33,286 | (1,674 | ) | ||||||||||
Net (loss) income for the period | $ | (631,032 | ) | $ | (34,770 | ) | $ | (617,328 | ) | $ | 158,984 | |||||
Attributable to: | ||||||||||||||||
Shareholders of the Company | $ | (633,757 | ) | $ | (43,070 | ) | $ | (618,010 | ) | $ | 123,321 | |||||
Non-controlling interests | 2,725 | 8,300 | 682 | 35,663 | ||||||||||||
Net (loss) income for the period | $ | (631,032 | ) | $ | (34,770 | ) | $ | (617,328 | ) | $ | 158,984 | |||||
(Loss) earnings per share (attributable to shareholders of the Company) | ||||||||||||||||
Basic | $ | (0.48 | ) | $ | (0.03 | ) | $ | (0.47 | ) | $ | 0.10 | |||||
Diluted | $ | (0.48 | ) | $ | (0.03 | ) | $ | (0.47 | ) | $ | 0.10 | |||||
Weighted average number of common shares outstanding (in thousands) | ||||||||||||||||
Basic | 1,310,994 | 1,297,175 | 1,307,134 | 1,208,942 | ||||||||||||
Diluted | 1,310,994 | 1,297,175 | 1,307,134 | 1,213,349 |
B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 (Expressed in thousands of United States dollars) (Unaudited) | ||||||||||||||||
For the three months ended Sept. 30, 2024 | For the three months ended Sept. 30, 2023 | For the nine months ended Sept. 30, 2024 | For the nine months ended Sept. 30, 2023 | |||||||||||||
Operating activities | ||||||||||||||||
Net (loss) income for the period | $ | (631,032 | ) | $ | (34,770 | ) | $ | (617,328 | ) | $ | 158,984 | |||||
Mine restoration provisions settled | (527 | ) | (344 | ) | (1,468 | ) | (923 | ) | ||||||||
Non-cash charges, net | 749,620 | 228,448 | 1,134,534 | 462,088 | ||||||||||||
Proceeds from prepaid sales | — | — | 500,023 | — | ||||||||||||
Changes in non-cash working capital | 3,576 | (28,339 | ) | (54,148 | ) | (7,061 | ) | |||||||||
Changes in long-term inventory | (101,769 | ) | (32,296 | ) | (117,465 | ) | (36,995 | ) | ||||||||
Changes in long-term value added tax receivables | (35,967 | ) | (22,495 | ) | (87,088 | ) | (67,083 | ) | ||||||||
Cash (used) provided by operating activities | (16,099 | ) | 110,204 | 757,060 | 509,010 | |||||||||||
Financing activities | ||||||||||||||||
Drawdown of revolving credit facility | 200,000 | — | 200,000 | — | ||||||||||||
Repayment of revolving credit facility | — | — | (150,000 | ) | — | |||||||||||
Extinguishment of gold stream and construction financing obligations | — | — | — | (111,819 | ) | |||||||||||
Repayment of equipment loan facilities | (2,980 | ) | (3,448 | ) | (8,886 | ) | (9,913 | ) | ||||||||
Interest and commitment fees paid | (1,075 | ) | (1,343 | ) | (5,744 | ) | (3,463 | ) | ||||||||
Cash proceeds from stock option exercises | 569 | 6,486 | 3,014 | 12,394 | ||||||||||||
Dividends paid | (46,112 | ) | (45,378 | ) | (137,970 | ) | (140,084 | ) | ||||||||
Principal payments on lease arrangements | (2,797 | ) | (1,135 | ) | (5,385 | ) | (4,624 | ) | ||||||||
Distributions to non-controlling interests | (5,412 | ) | (13,601 | ) | (12,700 | ) | (17,881 | ) | ||||||||
Other | (512 | ) | (862 | ) | 450 | 725 | ||||||||||
Cash provided (used) by financing activities | 141,681 | (59,281 | ) | (117,221 | ) | (274,665 | ) | |||||||||
Investing activities | ||||||||||||||||
Expenditures on mining interests: | ||||||||||||||||
Fekola Mine | (64,464 | ) | (83,166 | ) | (198,205 | ) | (211,112 | ) | ||||||||
Masbate Mine | (5,192 | ) | (5,896 | ) | (20,229 | ) | (20,947 | ) | ||||||||
Otjikoto Mine | (609 | ) | (13,290 | ) | (26,128 | ) | (46,266 | ) | ||||||||
Goose Project | (120,974 | ) | (88,082 | ) | (366,129 | ) | (156,694 | ) | ||||||||
Fekola Regional Properties | (3,992 | ) | (16,535 | ) | (13,417 | ) | (46,345 | ) | ||||||||
Gramalote Project | (3,357 | ) | (854 | ) | (10,227 | ) | (2,568 | ) | ||||||||
Other exploration | (18,752 | ) | (17,770 | ) | (39,164 | ) | (58,313 | ) | ||||||||
Cash proceeds on sale of investment in associate | — | — | 100,302 | — | ||||||||||||
Cash proceeds on sale of long-term investment | 58,627 | — | 77,288 | — | ||||||||||||
Purchase of shares in associates | (9,089 | ) | — | (9,089 | ) | — | ||||||||||
Cash proceeds from sale of mining interests | 7,500 | — | 7,500 | — | ||||||||||||
Purchase of long-term investments | (664 | ) | (879 | ) | (6,916 | ) | (32,759 | ) | ||||||||
Funding of reclamation accounts | (2,290 | ) | (2,189 | ) | (4,995 | ) | (4,829 | ) | ||||||||
Cash acquired on acquisition of Sabina Gold & Silver Corp. | — | — | — | 38,083 | ||||||||||||
Transaction costs paid on acquisition of Sabina Gold & Silver Corp. | — | — | — | (6,672 | ) | |||||||||||
Other | (89 | ) | (6,286 | ) | (1,925 | ) | (9,498 | ) | ||||||||
Cash used by investing activities | (163,345 | ) | (234,947 | ) | (511,334 | ) | (557,920 | ) | ||||||||
(Decrease) increase in cash and cash equivalents | (37,763 | ) | (184,024 | ) | 128,505 | (323,575 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,036 | (12,614 | ) | (4,287 | ) | (18,802 | ) | |||||||||
Cash and cash equivalents, beginning of period | 466,840 | 506,207 | 306,895 | 651,946 | ||||||||||||
Cash and cash equivalents, end of period | $ | 431,113 | $ | 309,569 | $ | 431,113 | $ | 309,569 |
B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (Expressed in thousands of United States dollars) (Unaudited) | ||||||||
As at September 30, 2024 | As at December 31, 2023 | |||||||
Assets | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 431,113 | $ | 306,895 | ||||
Accounts receivable, prepaids and other | 54,097 | 27,491 | ||||||
Value-added and other tax receivables | 58,157 | 29,848 | ||||||
Inventories | 378,121 | 346,495 | ||||||
921,488 | 710,729 | |||||||
Long-term investments | 89,045 | 86,007 | ||||||
Value-added tax receivables | 282,803 | 199,671 | ||||||
Mining interests | 3,096,562 | 3,563,490 | ||||||
Investment in associates | 93,368 | 134,092 | ||||||
Long-term inventories | 213,195 | 100,068 | ||||||
Other assets | 69,285 | 63,635 | ||||||
Deferred income taxes | 22,991 | 16,927 | ||||||
$ | 4,788,737 | $ | 4,874,619 | |||||
Liabilities | ||||||||
Current | ||||||||
Accounts payable and accrued liabilities | $ | 174,563 | $ | 167,117 | ||||
Current income and other taxes payable | 156,981 | 120,679 | ||||||
Current portion of prepaid gold sales | 134,779 | — | ||||||
Current portion of long-term debt | 17,288 | 16,256 | ||||||
Current portion of gold stream obligation | 3,400 | — | ||||||
Current portion of mine restoration provisions | 1,713 | 3,050 | ||||||
Other current liabilities | 13,613 | 6,369 | ||||||
502,337 | 313,471 | |||||||
Long-term debt | 221,890 | 175,869 | ||||||
Gold stream obligation | 157,396 | 139,600 | ||||||
Prepaid gold sales | 393,138 | — | ||||||
Mine restoration provisions | 116,485 | 104,607 | ||||||
Deferred income taxes | 161,889 | 188,106 | ||||||
Employee benefits obligation | 20,129 | 19,171 | ||||||
Other long-term liabilities | 26,393 | 23,820 | ||||||
1,599,657 | 964,644 | |||||||
Equity | ||||||||
Shareholders' equity | ||||||||
Share capital | 3,492,261 | 3,454,811 | ||||||
Contributed surplus | 83,844 | 84,970 | ||||||
Accumulated other comprehensive loss | (96,208 | ) | (125,256 | ) | ||||
Retained (deficit) earnings | (442,705 | ) | 395,854 | |||||
3,037,192 | 3,810,379 | |||||||
Non-controlling interests | 151,888 | 99,596 | ||||||
3,189,080 | 3,909,975 | |||||||
$ | 4,788,737 | $ | 4,874,619 | |||||
NON-IFRS MEASURES
Cash operating costs per gold ounce sold and total cash costs per gold ounce sold
‘‘Cash operating costs per gold ounce'' and "total cash costs per gold ounce" are common financial performance measures in the gold mining industry but, as non-IFRS measures, they do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance and ability to generate cash flow. Accordingly, these measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures, along with sales, are considered to be a key indicator of the Company's ability to generate earnings and cash flow from its mining operations.
Cash cost figures are calculated on a sales basis in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. Other companies may calculate these measures differently. Cash operating costs and total cash costs per gold ounce sold are derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, royalties and production taxes, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce sold and total cash costs per gold ounce sold to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):
For the three months ended September 30, 2024 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 109,857 | 42,697 | 39,854 | 192,408 | — | 192,408 |
Royalties and production taxes | 20,511 | 7,120 | 5,298 | 32,929 | — | 32,929 |
Total cash costs | 130,368 | 49,817 | 45,152 | 225,337 | — | 225,337 |
Gold sold (ounces) | 78,889 | 47,960 | 53,676 | 180,525 | — | 180,525 |
Cash operating costs per ounce ($/ gold ounce sold) | 1,393 | 890 | 742 | 1,066 | — | 1,066 |
Total cash costs per ounce ($/ gold ounce sold) | 1,653 | 1,039 | 841 | 1,248 | — | 1,248 |
For the three months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 93,388 | 44,056 | 33,981 | 171,425 | 16,791 | 188,216 |
Royalties and production taxes | 24,333 | 6,556 | 3,500 | 34,389 | 1,303 | 35,692 |
Total cash costs | 117,721 | 50,612 | 37,481 | 205,814 | 18,094 | 223,908 |
Gold sold (ounces) | 152,239 | 50,950 | 45,700 | 248,889 | 17,727 | 266,616 |
Cash operating costs per ounce ($/ gold ounce sold) | 613 | 865 | 744 | 689 | 947 | 706 |
Total cash costs per ounce ($/ gold ounce sold) | 773 | 993 | 820 | 827 | 1,021 | 840 |
For the nine months ended September 30, 2024 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 276,443 | 123,070 | 100,939 | 500,452 | 25,126 | 525,578 |
Royalties and production taxes | 62,561 | 19,420 | 14,064 | 96,045 | 1,565 | 97,610 |
Total cash costs | 339,004 | 142,490 | 115,003 | 596,497 | 26,691 | 623,188 |
Gold sold (ounces) | 318,005 | 142,260 | 153,466 | 613,731 | 19,644 | 633,375 |
Cash operating costs per ounce ($/ gold ounce sold) | 869 | 865 | 658 | 815 | 1,279 | 830 |
Total cash costs per ounce ($/ gold ounce sold) | 1,066 | 1,002 | 749 | 972 | 1,359 | 984 |
For the nine months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 250,294 | 117,219 | 84,278 | 451,791 | 50,371 | 502,162 |
Royalties and production taxes | 74,685 | 17,254 | 10,722 | 102,661 | 3,635 | 106,296 |
Total cash costs | 324,979 | 134,473 | 95,000 | 554,452 | 54,006 | 608,458 |
Gold sold (ounces) | 460,139 | 137,300 | 139,700 | 737,139 | 50,666 | 787,805 |
Cash operating costs per ounce ($/ gold ounce sold) | 544 | 854 | 603 | 613 | 994 | 637 |
Total cash costs per ounce ($/ gold ounce sold) | 706 | 979 | 680 | 752 | 1,066 | 772 |
Cash operating costs per gold ounce produced
In addition to cash operating costs on a per gold ounce sold basis, the Company also presents cash operating costs on a per gold ounce produced basis. Cash operating costs per gold ounce produced is derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce produced to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):
For the three months ended September 30, 2024 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Production costs | 109,857 | 42,697 | 39,854 | 192,408 | — | 192,408 | ||||
Inventory sales adjustment | 2,330 | (1,955 | ) | (1,294 | ) | (919 | ) | — | (919 | ) |
Cash operating costs | 112,187 | 40,742 | 38,560 | 191,489 | — | 191,489 | ||||
Gold produced (ounces) | 78,207 | 50,215 | 52,131 | 180,553 | — | 180,553 | ||||
Cash operating costs per ounce ($/ gold ounce produced) | 1,434 | 811 | 740 | 1,061 | — | 1,061 |
For the three months ended September 30, 2023 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Production costs | 93,388 | 44,056 | 33,981 | 171,425 | 16,791 | 188,216 | ||||
Inventory sales adjustment | (4,673 | ) | (1,388 | ) | 1,294 | (4,767 | ) | — | (4,767 | ) |
Cash operating costs | 88,715 | 42,668 | 35,275 | 166,658 | 16,791 | 183,449 | ||||
Gold produced (ounces) | 128,942 | 51,170 | 44,940 | 225,052 | 17,786 | 242,838 | ||||
Cash operating costs per ounce ($/ gold ounce produced) | 688 | 834 | 785 | 741 | 944 | 755 |
For the nine months ended September 30, 2024 | ||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||
$ | $ | $ | $ | $ | $ | |||
Production costs | 276,443 | 123,070 | 100,939 | 500,452 | 25,126 | 525,578 | ||
Inventory sales adjustment | 12,505 | (1,767 | ) | (854 | ) | 9,884 | — | 9,884 |
Cash operating costs | 288,948 | 121,303 | 100,085 | 510,336 | 25,126 | 535,462 | ||
Gold produced (ounces) | 308,931 | 144,512 | 145,690 | 599,133 | 19,644 | 618,777 | ||
Cash operating costs per ounce ($/ gold ounce produced) | 935 | 839 | 687 | 852 | 1,279 | 865 |
For the nine months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 250,294 | 117,219 | 84,278 | 451,791 | 50,371 | 502,162 |
Inventory sales adjustment | 543 | 6,792 | 1,232 | 8,567 | — | 8,567 |
Cash operating costs | 250,837 | 124,011 | 85,510 | 460,358 | 50,371 | 510,729 |
Gold produced (ounces) | 447,233 | 147,012 | 127,487 | 721,732 | 50,663 | 772,395 |
Cash operating costs per ounce ($/ gold ounce produced) | 561 | 844 | 671 | 638 | 994 | 661 |
All-in sustaining costs per gold ounce
In June 2013, the World Gold Council, a non-regulatory association of the world's leading gold mining companies established to promote the use of gold to industry, consumers and investors, provided guidance for the calculation of the measure "all-in sustaining costs per gold ounce", but as a non-IFRS measure, it does not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The original World Gold Council standard became effective January 1, 2014 with further updates announced on November 16, 2018 which were effective starting January 1, 2019.
Management believes that the all-in sustaining costs per gold ounce measure provides additional insight into the costs of producing gold by capturing all of the expenditures required for the discovery, development and sustaining of gold production and allows the Company to assess its ability to support capital expenditures to sustain future production from the generation of operating cash flows. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. The Company has applied the principles of the World Gold Council recommendations and has reported all-in sustaining costs on a sales basis. Other companies may calculate these measures differently.
B2Gold defines all-in sustaining costs per ounce as the sum of cash operating costs, royalties and production taxes, capital expenditures and exploration costs that are sustaining in nature, sustaining lease expenditures, corporate general and administrative costs, share-based payment expenses related to restricted share units/deferred share units/performance share units/restricted phantom units ("RSUs/DSUs/PSUs/RPUs"), community relations expenditures, reclamation liability accretion and realized (gains) losses on fuel derivative contracts, all divided by the total gold ounces sold to arrive at a per ounce figure.
The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended September 30, 2024 (dollars in thousands):
For the three months ended September 30, 2024 | |||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | $ | |
Production costs | 109,857 | 42,697 | 39,854 | — | 192,408 | — | 192,408 |
Royalties and production taxes | 20,511 | 7,120 | 5,298 | — | 32,929 | — | 32,929 |
Corporate administration | 2,736 | 537 | 806 | 9,204 | 13,283 | — | 13,283 |
Share-based payments – RSUs/DSUs/PSUs/RPUs (1) | 28 | — | — | 3,622 | 3,650 | — | 3,650 |
Community relations | 168 | 109 | 578 | — | 855 | — | 855 |
Reclamation liability accretion | 479 | 321 | 245 | — | 1,045 | — | 1,045 |
Realized losses on derivative contracts | 55 | 32 | 21 | — | 108 | — | 108 |
Sustaining lease expenditures | 82 | 312 | 234 | 502 | 1,130 | — | 1,130 |
Sustaining capital expenditures (2) | 45,533 | 4,644 | 575 | — | 50,752 | — | 50,752 |
Sustaining mine exploration (2) | 996 | 203 | 485 | — | 1,684 | — | 1,684 |
Total all-in sustaining costs | 180,445 | 55,975 | 48,096 | 13,328 | 297,844 | — | 297,844 |
Gold sold (ounces) | 78,889 | 47,960 | 53,676 | — | 180,525 | — | 180,525 |
All-in sustaining cost per ounce ($/ gold ounce sold) | 2,287 | 1,167 | 896 | — | 1,650 | — | 1,650 |
( 1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2024 (dollars in thousands):
For the three months ended September 30, 2024 | |||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | ||||||
Operating mine capital expenditures | 64,464 | 5,192 | 609 | 70,265 | — | 70,265 | |||||
Fekola underground | (20,252 | ) | — | — | (20,252 | ) | — | (20,252 | ) | ||
Road construction | 1,321 | — | — | 1,321 | — | 1,321 | |||||
Land acquisitions | — | (528 | ) | — | (528 | ) | — | (528 | ) | ||
Other | — | (20 | ) | (34 | ) | (54 | ) | — | (54 | ) | |
Sustaining capital expenditures | 45,533 | 4,644 | 575 | 50,752 | — | 50,752 | |||||
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2024 (dollars in thousands):
For the three months ended September 30, 2024 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine exploration | 996 | 1,290 | 1,888 | 4,174 | — | 4,174 | ||||
Regional exploration | — | (1,087 | ) | (1,403 | ) | (2,490 | ) | — | (2,490 | ) |
Sustaining mine exploration | 996 | 203 | 485 | 1,684 | — | 1,684 | ||||
The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended September 30, 2023 (dollars in thousands):
For the three months ended September 30, 2023 | ||||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | $ | ||||||
Production costs | 93,388 | 44,056 | 33,981 | — | 171,425 | 16,791 | 188,216 | |||||
Royalties and production taxes | 24,333 | 6,556 | 3,500 | — | 34,389 | 1,303 | 35,692 | |||||
Corporate administration | 2,077 | 623 | 1,269 | 8,961 | 12,930 | 658 | 13,588 | |||||
Share-based payments – RSUs/DSUs/PSUs/RPUs (1) | 9 | — | — | 4,325 | 4,334 | — | 4,334 | |||||
Community relations | 642 | 24 | 492 | — | 1,158 | — | 1,158 | |||||
Reclamation liability accretion | 381 | 290 | 286 | — | 957 | — | 957 | |||||
Realized gains on derivative contracts | (1,317 | ) | (972 | ) | (232 | ) | — | (2,521 | ) | — | (2,521 | ) |
Sustaining lease expenditures | 72 | 302 | 274 | 487 | 1,135 | — | 1,135 | |||||
Sustaining capital expenditures (2) | 72,454 | 5,617 | 13,290 | — | 91,361 | 3,388 | 94,749 | |||||
Sustaining mine exploration (2) | — | 774 | 963 | — | 1,737 | 19 | 1,756 | |||||
Total all-in sustaining costs | 192,039 | 57,270 | 53,823 | 13,773 | 316,905 | 22,159 | 339,064 | |||||
Gold sold (ounces) | 152,239 | 50,950 | 45,700 | — | 248,889 | 17,727 | 266,616 | |||||
All-in sustaining cost per ounce ($/ gold ounce sold) | 1,261 | 1,124 | 1,178 | — | 1,273 | 1,250 | 1,272 |
(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2023 (dollars in thousands):
For the three months ended September 30, 2023 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine capital expenditures | 83,166 | 5,896 | 13,290 | 102,352 | 3,388 | 105,740 | ||||
Road construction | (216 | ) | — | — | (216 | ) | — | (216 | ) | |
Fekola underground | (10,496 | ) | — | — | (10,496 | ) | — | (10,496 | ) | |
Other | — | (279 | ) | — | (279 | ) | — | (279 | ) | |
Sustaining capital expenditures | 72,454 | 5,617 | 13,290 | 91,361 | 3,388 | 94,749 | ||||
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2023 (dollars in thousands):
For the three months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Operating mine exploration | — | 774 | 963 | 1,737 | 19 | 1,756 |
Regional exploration | — | — | — | — | — | — |
Sustaining mine exploration | — | 774 | 963 | 1,737 | 19 | 1,756 |
The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the nine months ended September 30, 2024 (dollars in thousands):
For the nine months ended September 30, 2024 | ||||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | $ | ||||||
Production costs | 276,443 | 123,070 | 100,939 | — | 500,452 | 25,126 | 525,578 | |||||
Royalties and production taxes | 62,561 | 19,420 | 14,064 | — | 96,045 | 1,565 | 97,610 | |||||
Corporate administration | 8,011 | 1,599 | 3,692 | 27,087 | 40,389 | 1,463 | 41,852 | |||||
Share-based payments – RSUs/DSUs/PSUs/RPUs (1) | 95 | — | — | 12,618 | 12,713 | — | 12,713 | |||||
Community relations | 419 | 139 | 1,228 | — | 1,786 | — | 1,786 | |||||
Reclamation liability accretion | 1,372 | 935 | 735 | — | 3,042 | — | 3,042 | |||||
Realized gains on derivative contracts | (365 | ) | (220 | ) | (10 | ) | — | (595 | ) | — | (595 | ) |
Sustaining lease expenditures | 249 | 939 | 1,024 | 1,506 | 3,718 | — | 3,718 | |||||
Sustaining capital expenditures (2) | 151,468 | 19,321 | 25,078 | — | 195,867 | 2,392 | 198,259 | |||||
Sustaining mine exploration (2) | 3,136 | 1,801 | 1,111 | — | 6,048 | — | 6,048 | |||||
Total all-in sustaining costs | 503,389 | 167,004 | 147,861 | 41,211 | 859,465 | 30,546 | 890,011 | |||||
Gold sold (ounces) | 318,005 | 142,260 | 153,466 | — | 613,731 | 19,644 | 633,375 | |||||
All-in sustaining cost per ounce ($/ gold ounce sold) | 1,583 | 1,174 | 963 | — | 1,400 | 1,555 | 1,405 |
(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (dollars in thousands):
For the nine months ended September 30, 2024 | |||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | ||||||
Operating mine capital expenditures | 198,205 | 20,229 | 26,128 | 244,562 | 2,392 | 246,954 | |||||
Fekola underground | (46,128 | ) | — | — | (46,128 | ) | — | (46,128 | ) | ||
Road construction | (609 | ) | — | — | (609 | ) | — | (609 | ) | ||
Land acquisitions | — | (648 | ) | — | (648 | ) | — | (648 | ) | ||
Other | — | (260 | ) | (1,050 | ) | (1,310 | ) | — | (1,310 | ) | |
Sustaining capital expenditures | 151,468 | 19,321 | 25,078 | 195,867 | 2,392 | 198,259 | |||||
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (dollars in thousands):
For the nine months ended September 30, 2024 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine exploration | 3,136 | 3,039 | 5,191 | 11,366 | — | 11,366 | ||||
Regional exploration | — | (1,238 | ) | (4,080 | ) | (5,318 | ) | — | (5,318 | ) |
Sustaining mine exploration | 3,136 | 1,801 | 1,111 | 6,048 | — | 6,048 | ||||
The tables below show a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the nine months ended September 30, 2023 (dollars in thousands):
For the nine months ended September 30, 2023 | ||||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | $ | ||||||
Production costs | 250,294 | 117,219 | 84,278 | — | 451,791 | 50,371 | 502,162 | |||||
Royalties and production taxes | 74,685 | 17,254 | 10,722 | — | 102,661 | 3,635 | 106,296 | |||||
Corporate administration | 7,441 | 1,762 | 4,149 | 27,818 | 41,170 | 1,981 | 43,151 | |||||
Share-based payments – RSUs/DSUs/PSUs/RPUs (1) | 9 | — | — | 12,482 | 12,491 | — | 12,491 | |||||
Community relations | 2,686 | 123 | 1,074 | — | 3,883 | — | 3,883 | |||||
Reclamation liability accretion | 1,119 | 859 | 857 | — | 2,835 | — | 2,835 | |||||
Realized gains on derivative contracts | (2,776 | ) | (2,786 | ) | (929 | ) | — | (6,491 | ) | — | (6,491 | ) |
Sustaining lease expenditures | 1,117 | 912 | 1,194 | 1,401 | 4,624 | — | 4,624 | |||||
Sustaining capital expenditures (2) | 181,262 | 20,145 | 46,266 | — | 247,673 | 7,327 | 255,000 | |||||
Sustaining mine exploration (2) | 1,706 | 2,741 | 2,453 | — | 6,900 | 19 | 6,919 | |||||
Total all-in sustaining costs | 517,543 | 158,229 | 150,064 | 41,701 | 867,537 | 63,333 | 930,870 | |||||
Gold sold (ounces) | 460,139 | 137,300 | 139,700 | — | 737,139 | 50,666 | 787,805 | |||||
All-in sustaining cost per ounce ($/ gold ounce sold) | 1,125 | 1,152 | 1,074 | — | 1,177 | 1,250 | 1,182 |
(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2023 (dollars in thousands):
For the nine months ended September 30, 2023 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine capital expenditures | 211,112 | 20,947 | 46,266 | 278,325 | 7,327 | 285,652 | ||||
Road construction | (5,283 | ) | — | — | (5,283 | ) | — | (5,283 | ) | |
Fekola underground | (24,567 | ) | — | — | (24,567 | ) | — | (24,567 | ) | |
Other | — | (802 | ) | — | (802 | ) | — | (802 | ) | |
Sustaining capital expenditures | 181,262 | 20,145 | 46,266 | 247,673 | 7,327 | 255,000 | ||||
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2023 (dollars in thousands):
For the nine months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Operating mine exploration | 1,706 | 2,741 | 2,453 | 6,900 | 19 | 6,919 |
Regional exploration | — | — | — | — | — | — |
Sustaining mine exploration | 1,706 | 2,741 | 2,453 | 6,900 | 19 | 6,919 |
Adjusted net income and adjusted earnings per share - basic
Adjusted net income and adjusted earnings per share – basic are non-IFRS measures that do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines adjusted net income as net income attributable to shareholders of the Company adjusted for non-recurring items and also significant recurring non-cash items. The Company defines adjusted earnings per share – basic as adjusted net income divided by the basic weighted number of common shares outstanding.
Management believes that the presentation of adjusted net income and adjusted earnings per share - basic is appropriate to provide additional information to investors regarding items that we do not expect to continue at the same level in the future or that management does not believe to be a reflection of the Company's ongoing operating performance. Management further believes that its presentation of these non-IFRS financial measures provide information that is useful to investors because they are important indicators of the strength of our operations and the performance of our core business. Accordingly, it is intended to provide additional information and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.
A reconciliation of net (loss) income to adjusted net income as extracted from the unaudited condensed interim consolidated financial statements is set out in the table below:
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
$ | $ | $ | $ | |
(000's) | (000's) | (000's) | (000's) | |
Net (loss) income attributable to shareholders of the Company for the period: | (633,757 ) | (43,070) | (618,010 ) | 123,321 |
Adjustments for non-recurring and significant recurring non-cash items: | ||||
Impairment of long-lived assets | 661,160 | 111,597 | 858,301 | 116,482 |
Write-down of mining interests | — | 565 | 636 | 16,984 |
Gain on sale of shares in associate | — | — | (16,822 ) | — |
Gain on sale of mining interests | (7,453 ) | — | (56,115 ) | — |
Regulatory dispute settlement | 15,089 | — | 15,089 | — |
Unrealized losses (gains) on derivative instruments | 6,270 | (3,146) | 6,269 | 399 |
Office lease termination costs | — | — | — | 1,946 |
Loan receivable provision | — | — | — | 2,085 |
Change in fair value of gold stream | 1,957 | (7,600) | 21,196 | (6,500) |
Loss on dilution of associate | — | — | 8,984 | — |
Deferred income tax (recovery) expense | (14,109 ) | 6,494 | (30,419 ) | 1,789 |
Adjusted net income attributable to shareholders of the Company for the period | 29,157 | 64,840 | 189,109 | 256,506 |
Basic weighted average number of common shares outstanding (in thousands) | 1,310,994 | 1,297,175 | 1,307,134 | 1,208,942 |
Adjusted net earnings attributable to shareholders of the Company per share–basic ($/share) | 0.02 | 0.05 | 0.14 | 0.21 |
For more information on B2Gold please visit the Company website at www.b2gold.com or contact: Michael McDonald VP, Investor Relations & Corporate Development +1 604-681-8371 investor@b2gold.com Cherry DeGeer Director, Corporate Communications +1 604-681-8371 investor@b2gold.com
News Provided by GlobeNewswire via QuoteMedia
Franco-Nevada Reports Q3 2024 Results
Initial Contributions from Tocantinzinho Stream
(in U.S. dollars unless otherwise noted)
"Record gold prices generated higher revenues, Adjusted EBITDA and earnings in Q3 compared to Q2 2024," stated Paul Brink CEO. "GEO sales were stable compared to Q2 although lower compared to Q3 2023 without the contribution from Cobre Panama. The quarter benefitted from contributions from the newly commissioned Tocantinzinho mine in Brazil and increased contributions from royalties from the recently completed Greenstone mine and the newly acquired Yanacocha royalty. Candelaria reported an increase in copper and gold production for the quarter. While Candelaria's copper output is on track, Lundin Mining has revised its 2024 gold production guidance lower to reflect revised gold grades for the period. In addition, revenue from our Diversified assets translated into lower GEOs reflecting record gold prices. We have adjusted our 2024 guidance as a result. Franco-Nevada continues to benefit from higher gold prices with limited exposure to cost inflation. The company remains debt-free with substantial available capital and has a strong pipeline of potential precious metal streams and royalties."
Financial Summary
- $275.7 million in revenue, -11% compared to Q3 2023, or +14% when excluding the impact of Cobre Panama remaining on preservation and safe management during the quarter
- 110,110 GEOs sold in the quarter, -32% compared to Q3 2023, which partly reflects:
- 22% due to the impact of Cobre Panama, and
- 3% due to record gold prices, reducing the conversion of non-gold revenue into GEOs
- $213.6 million in operating cash flow, -9% compared to Q3 2023
- $152.7 million in net income or $0.79 /share, -13% compared to Q3 2023
- $236.2 million in Adjusted EBITDA or $1.23 /share, -7% compared to Q3 2023, or +16% excluding Cobre Panama
- $153.9 million in Adjusted Net Income or $0.80 /share, -12% compared to Q3 2023, or +12% excluding Cobre Panama
- Quarterly dividend of $0.36 /share effective Q1 2024, an annual increase of 5.88%
- Strong financial position with no debt and $2.3 billion in available capital as at September 30, 2024
Sector-Leading ESG
- Rated #1 precious metals company and #1 gold company by Sustainalytics, AA by MSCI and Prime by ISS ESG
- Committed to the World Gold Council's Responsible Gold Mining Principles
- Partnering with our operators on community and ESG initiatives
- 40% diverse representation at the Board and top leadership levels as a group
Diverse, Long-Life Portfolio
- Most diverse royalty and streaming portfolio by asset, operator and country
- Attractive mix of long-life streams and high optionality royalties
- Long-life mineral resources and mineral reserves
Growth and Optionality
- Mine expansions and new mines driving 5-year growth profile
- Long-term optionality in gold, copper and nickel and exposure to some of the world's great mineral endowments
- Strong pipeline of precious metal and diversified opportunities
Quarterly revenue and GEOs sold by commodity | |||||||||||
Q3 2024 | Q3 2023 | ||||||||||
GEOs Sold | Revenue | GEOs Sold | Revenue | ||||||||
# | (in millions) | # | (in millions) | ||||||||
PRECIOUS METALS | |||||||||||
Gold (excluding Cobre Panama) | 71,100 | $ | 177.6 | 72,939 | $ | 140.4 | |||||
Silver (excluding Cobre Panama) | 11,111 | 28.5 | 12,261 | 23.4 | |||||||
PGM | 2,166 | 5.6 | 5,170 | 9.7 | |||||||
84,377 | $ | 211.7 | 90,370 | $ | 173.5 | ||||||
DIVERSIFIED | |||||||||||
Iron ore | 5,528 | $ | 12.1 | 6,619 | $ | 12.8 | |||||
Other mining assets | 1,068 | 2.7 | 1,677 | 3.2 | |||||||
Oil | 14,366 | 32.5 | 20,926 | 38.2 | |||||||
Gas | 2,576 | 8.4 | 4,098 | 9.9 | |||||||
NGL | 2,195 | 5.5 | 2,191 | 4.6 | |||||||
25,733 | $ | 61.2 | 35,511 | $ | 68.7 | ||||||
Royalty, stream and working interests (excluding Cobre | 110,110 | $ | 272.9 | 125,881 | $ | 242.2 | |||||
Interest revenue and other interest income | — | $ | 2.8 | — | $ | — | |||||
Revenue and GEOs (excluding Cobre Panama) | 110,110 | $ | 275.7 | 125,881 | $ | 242.2 | |||||
Cobre Panama | — | $ | — | 34,967 | $ | 67.3 | |||||
Total revenue and GEOs | 110,110 | $ | 275.7 | 160,848 | $ | 309.5 |
Year-to-date revenue and GEOs sold by commodity | |||||||||||
YTD 2024 | YTD 2023 | ||||||||||
GEOs Sold | Revenue | GEOs Sold | Revenue | ||||||||
# | (in millions) | # | (in millions) | ||||||||
PRECIOUS METALS | |||||||||||
Gold (excluding Cobre Panama) | 215,635 | $ | 495.3 | 215,146 | $ | 415.8 | |||||
Silver (excluding Cobre Panama) | 34,796 | 81.5 | 37,231 | 71.9 | |||||||
PGM | 9,284 | 21.8 | 15,951 | 31.0 | |||||||
259,715 | $ | 598.6 | 268,328 | $ | 518.7 | ||||||
DIVERSIFIED | |||||||||||
Iron ore | 17,984 | $ | 38.9 | 18,801 | $ | 36.0 | |||||
Other mining assets | 3,223 | 7.4 | 5,435 | 10.3 | |||||||
Oil | 44,713 | 94.6 | 54,847 | 102.2 | |||||||
Gas | 11,450 | 31.5 | 19,800 | 41.0 | |||||||
NGL | 6,156 | 15.0 | 7,203 | 14.0 | |||||||
83,526 | $ | 187.4 | 106,086 | $ | 203.5 | ||||||
Royalty, stream and working interests (excluding Cobre Panama) | 343,241 | $ | 786.0 | 374,414 | $ | 722.2 | |||||
Interest revenue and other interest income | — | $ | 6.5 | — | $ | — | |||||
Revenue and GEOs (excluding Cobre Panama) | 343,241 | $ | 792.5 | 374,414 | $ | 722.2 | |||||
Cobre Panama | 30 | $ | 0.1 | 100,280 | $ | 193.5 | |||||
Total revenue and GEOs | 343,271 | $ | 792.6 | 474,694 | $ | 915.7 |
In Q3 2024, we recognized $275.7 million in revenue, down 10.9% from Q3 2023 (up 13.8% excluding Cobre Panama). Revenue in the 2023 period included contributions from Cobre Panama, which remained on preservation and safe management during the current period. During the quarter, we benefited from record gold prices, offset by lower contributions from Candelaria and our Energy assets. Precious Metal revenue accounted for 76.8% of our revenue (64.5% gold, 10.3% silver, 2.0% PGM). Revenue was sourced 81.2% from the Americas (38.3% South America , 8.1% Central America & Mexico , 17.0% U.S. and 17.8% Canada ).
Guidance
We benefited from record gold prices in the first nine months of 2024, with revenue exceeding our initial expectations. Our full-year revenue for 2024 is expected to be between $1,050 million and $1,150 million . However, lower than expected gold production at Candelaria and slower ramp-ups at our newly contributing mines have resulted in fewer Precious Metal GEOs than originally anticipated. In addition, record gold prices in the current year have impacted the conversion of our non-gold revenue into GEOs. As a result, we are revising our GEO sales guidance as follows:
2024 Original Guidance 1 | 2024 Revised Guidance 2 | ||||||
Total GEOs | 480,000 to 540,000 | 445,000 to 465,000 | |||||
Precious Metal GEO sales | 360,000 to 400,000 | 340,000 to 360,000 |
|
Environmental, Social and Governance ("ESG") Updates
We continue to rank highly with leading ESG rating agencies. During the quarter, we expanded the Franco-Nevada Diversity Scholarship program by awarding four new diversity scholarships to mining engineering students at University of Toronto, Université du Québec, and École Polytechnique. Franco-Nevada is now providing scholarships to 13 students. We also renewed our funding support for the Enseña Perú education initiative in Peru .
Portfolio Additions
- Acquisition of Royalty on Yanacocha Operations: As previously announced, on August 13, 2024 , we indirectly acquired from Compañía de Minas Buenaventura ("Buenaventura") and its subsidiary, an existing 1.8% NSR on all minerals covering Newmont's Yanacocha mine and adjacent mineral properties, including Conga, located in Peru . Consideration for the Yanacocha royalty consisted of $210 million paid in cash on closing, plus a contingent payment of $15 million payable in Franco-Nevada common shares payable upon the Conga project achieving commercial production. The acquisition of the Yanacocha royalty was effective July 1, 2024 .
- Acquisition of Gold Stream on Cascabel Copper-Gold Project: As previously announced, on July 15, 2024 , our wholly owned subsidiary, Franco-Nevada ( Barbados ) Corporation ("FNB") acquired a gold stream from SolGold with reference to production from the Cascabel project located in Ecuador . FNB partnered with Osisko Gold Royalties' subsidiary, Osisko Bermuda Limited ("Osisko"), to participate in the financing package on a 70%/30% basis. FNB will provide a total of $525 million and Osisko a total of $225 million for a total combined funding of $750 million , consisting of $100 million in pre-construction funding and $650 million towards construction once the project is fully funded and further derisked. During the quarter, FNB funded $23.4 million upon closing of the agreement.
- Term Loan with EMX Royalty Corporation: As previously announced, on August 9, 2024 , we funded a term loan to EMX Royalty Corporation of $35 million . Interest is payable monthly at a rate equal to the 3-Month Term Secured Overnight Financing Rate plus an applicable margin based on EMX's net debt to adjusted EBITDA ratio.
- G Mining Ventures Private Placement and Warrants: As previously announced, on July 12, 2024 , we completed a private placement of $25 million with G Mining Ventures at a price of C$2.279 per share (equivalent to C$9.116 per share following the merger between G Mining Ventures and Reunion Gold on July 15, 2024 ). La Mancha Investments S.à r.l. completed a concurrent $25 million private placement resulting in total proceeds to G Mining of $50 million . The placement was related to G Mining Ventures' business combination with Reunion Gold and advancement of the Oko West gold development project in Guyana . Franco-Nevada also holds share purchase warrants which allow the Company to acquire 2,875,000 common shares of G Mining Ventures at a price of C$7.60 for a total cost of C$21.9 million . Franco-Nevada expects to exercise such warrants prior to the accelerated expiry date of December 4, 2024 .
- Option to Acquire Royalty with Brazil Potash Corp.: Subsequent to quarter-end, on November 1, 2024 , we acquired an option from Brazil Potash for $1.0 million to purchase a 4.0% gross revenue royalty on potash produced from Brazil Potash's Autazes project in Brazil .
Q3 2024 Portfolio Updates
Precious Metal assets: GEOs sold from our Precious Metal assets were 84,377, down 32.7% from 125,337 GEOs in Q3 2023, or down 6.6% from 90,370 GEOs when excluding Cobre Panama. Lower contributions from Candelaria and Antapaccay were partly offset by higher GEOs from Subika, and contributions from the recently constructed Tocantinzinho and Greenstone mines and the newly acquired Yanacocha royalty.
South America :
- Candelaria (gold and silver stream) – GEOs delivered and sold in Q3 2024 were lower than those sold in Q3 2023. In Q2 2024, mining rates were impacted by the interface of the open pit and historic underground mining stopes, requiring more stockpiled ore to be processed which reduced grades and recoveries. While production in the quarter increased due to access to higher grade ore and improved runtime in the SAG mills, Lundin Mining has revised its 2024 annual gold production guidance for Candelaria down to between 92,000 and 102,000 gold ounces (from 100,000 to 110,000 gold ounces previously) due to revised gold grades and expected recoveries for the period. Lundin Mining expects to achieve its original copper production guidance for Candelaria for 2024.
- Antapaccay (gold and silver stream) – GEOs delivered and sold were lower in Q3 2024 compared to Q3 2023. Mine scheduling was adjusted in part due to a geotechnical event which occurred in Q2 2024 and temporarily limited pit access. Deliveries improved in Q3 2024, and we expect deliveries to be between 50,000 to 60,000 GEOs as originally guided for 2024.
- Antamina (22.5% silver stream) – GEOs delivered and sold were relatively consistent in Q3 2024 compared to Q3 2023. While throughput and copper production increased compared to the prior year period, silver grades were lower, as expected based on the life of mine plan.
- Tocantinzinho (gold stream) – In September 2024 , G Mining Ventures announced its Tocantinzinho mine achieved commercial production. The mine is planned to ramp up production through H2 2024, targeting nameplate throughput by Q1 2025. Tocantinzinho is expected to average annual gold production of 174,700 ounces over a 10.5-year mine life and 196,200 ounces for the first five full years. Franco-Nevada received initial deliveries of 1,108 GEOs in Q3 2024.
- Yanacocha (1.8% royalty) – Newmont reported higher leach pad production in Q3 2024 as a result of injection leaching. Newmont's production guidance for 2024 for the Yanacocha mine was approximately 290,000 ounces and the mine produced 260,000 gold ounces year-to-date as of the end of September 2024 . Franco-Nevada recognized 1,156 GEOs in revenue in Q3 2024.
- Cascabel (gold stream and 1% royalty) – SolGold continues to report progress on the development of the project, including the receipt in August 2024 of the underground exploration and geotechnical drilling permits.
- Salares Norte (1 - 2% royalties) – Gold Fields reported that following the first gold pour at Salares Norte in March 2024 , the plant was temporarily shut down and ramp-up suspended due to severe winter weather conditions. Gold Field's most recent guidance indicated an estimated gold equivalent production for the mine of between 40,000 and 50,000 ounces for 2024 (220,000 and 240,000 ounces initially).
Central America & Mexico :
- Cobre Panama (gold and silver stream) – Production at Cobre Panama has been halted since November 2023 with mining activities currently on preservation and safe management. During the quarter, President Mulino made public statements to the effect that his government intends to address the Cobre Panama mine in early 2025. An integrated audit of Cobre Panama is also expected to be conducted with international experts to establish a factual basis to aid in decision making for the future of the mine. As disclosed in Q2, 2024, Franco-Nevada filed a request for arbitration to the International Centre for Settlement of Investment Disputes on June 27, 2024 . While we continue to pursue these legal remedies, we strongly prefer and hope for a resolution with the State of Panama providing the best outcome for the Panamanian people and all parties involved.
- Guadalupe-Palmarejo (50% gold stream) – GEOs sold from Guadalupe-Palmarejo in Q3 2024 decreased relative to Q3 2023 due to lower grades.
U.S.:
- Stillwater (5% royalty) – GEOs from our Stillwater royalty decreased in Q3 2024 compared to Q3 2023. Sibanye-Stillwater announced in September 2024 a further restructuring of its US PGM operations as a result of current PGM prices. Sibanye-Stillwater is now guiding to production of 265,000 PGM ounces starting in 2025. Production guidance for 2024 remains unchanged and is expected to be between 440,000 to 460,000 PGM ounces.
- Goldstrike (2-4% royalties & 2.4-6% NPI) – GEOs from our Goldstrike royalties decreased in Q3 2024 compared to Q3 2023 due to less open pit stockpile tons from royalty ground being processed through the Goldstrike processing facilities, resulting in lower payments for our royalties.
- South Arturo (4-9% royalty) – GEOs from South Arturo increased in Q3 2024 compared to Q3 2023 as royalty payments from the restart of open pit mining are beginning to be received. South Arturo is part of Nevada Gold Mines' Carlin operations.
Canada :
- Detour Lake (2% royalty) – In June 2024 , Agnico Eagle released the results of a technical study reflecting the potential for a concurrent underground operation at Detour Lake that would increase annual production to approximately one million ounces for 14 years starting in 2030. Agnico Eagle expects to commence a two-kilometre exploration ramp in Q1 2025, which will be used collect a bulk sample and to facilitate infill and expansion drilling of the current underground mineral resource.
- Macassa ( Kirkland Lake ) (1.5-5.5% royalty & 20% NPI) – GEOs from Macassa were higher in Q3 2024 than in Q3 2023, reflecting productivity gains since the completion of #4 Shaft and the new ventilation infrastructure in 2023.Agnico Eagle is continuing to focus on asset optimization and is working on further improving mill throughput.
- Magino (3% royalty) and Island Gold (0.62% royalty) – Alamos completed the acquisition of the Magino mine in July 2024 . The transaction is expected to result in substantial synergies through shared infrastructure between the adjacent Magino and Island Gold mines. Alamos has noted potential longer-term upside through a single optimized milling complex at Magino with an expansion to between 15,000 and 20,000 tonnes per day.
- Greenstone (3% royalty) – The mine achieved its inaugural gold pour in May 2024 . While the operation has experienced some commissioning issues, it continues to progress toward design capacity, ramping up both mining rates and plant throughput. Equinox Gold has revised its 2024 production estimate to between 110,000 and 130,000 gold ounces (from 175,000 to 205,000 gold ounces previously).
- Canadian Malartic (1.5% royalty) – Agnico Eagle reported that ramp development, shaft sinking activities and surface construction progressed on schedule in Q3 2024. Exploration drilling continued to return positive results in the eastern and upper extensions of the East Gouldie deposit, demonstrating the potential to add significant mineral resources along extensions of the main East Gouldie deposit.
- Valentine Gold (3% royalty) – Calibre Mining reported that construction at the project was 81% complete as of the end of September 2024 and remains on track for completion of construction in Q2 2025. Production is expected to average 195,000 gold ounces per year over an initial mine life of 12 years.
Rest of World:
- MWS (25% stream) – GEOs delivered and sold from our MWS stream were higher than in Q3 2023 reflecting an increase in tonnes processed and higher recoveries. Subsequent to quarter-end, following the delivery of 1,587 gold ounces in Q4 2024, our MWS stream reached its cumulative cap of 312,500 gold ounces.
- Subika (Ahafo) (2% royalty) – GEOs from our Subika (Ahafo) royalty were higher than in Q3 2023. Gold production at the mine increased 60% due to higher mill throughput and higher ore grade milled.
Diversified assets: Our Diversified assets, primarily comprising our Iron Ore and Energy interests, generated $61.2 million in revenue, down 10.9% from $68.7 million in Q3 2023. When converted to GEOs, our Diversified assets contributed 25,733 GEOs, down 27.5% from 35,511 GEOs in Q3 2023, of which 21.9% was due to changes in gold prices used in the conversion of non-gold revenue into GEOs.
Iron Ore:
- Vale Royalty (iron ore royalty) – Revenue from our Vale royalty increased slightly compared to Q3 2023. Production from the Northern System benefited from strong production at S11D, partly offset by lower estimated iron ore prices and higher shipping cost deductions. Higher production from the Southeastern System was driven by enhanced performance at the Itabira plant and higher output at Brucutu. We expect royalty payments from the Southeastern System to commence approximately mid-2025.
- LIORC – LIORC declared a cash dividend of C$0.70 per common share in the current period, compared to C$0.95 in Q3 2023. Production from Iron Ore Company of Canada was 11% lower than Q3 2023 due to an 11-day site-wide shutdown following forest fires in mid-July 2024 .
- Caserones (0.517% effective NSR) – GEOs from our interest in Caserones were lower in Q3 2024 than in Q3 2023 in part due to our lower effective NSR interest in the current period. In January 2024 , EMX exercised an option to acquire 0.0531% of our NSR, such that we now own a 0.517% effective NSR, compared to 0.5701% in Q3 2023.
Energy:
- U.S. (various royalty rates) – Revenue from our U.S. Energy interests was relatively consistent with Q3 2023. We benefited from an increase in production due to new wells at our Permian interests and new contributions from our new Haynesville interests, which mostly offset the impact of lower realized prices and reduced drilling activity.
- Canada (various royalty rates) – Revenue from our Canadian Energy interests was lower than in Q3 2023. Higher production at Weyburn was more than offset by lower realized prices.
Dividend Declaration
Franco-Nevada is pleased to announce that its Board of Directors has declared a quarterly dividend of US$0.36 per share. The dividend will be paid on December 19, 2024 , to shareholders of record on December 5, 2024 (the "Record Date"). The dividend has been declared in U.S. dollars and the Canadian dollar equivalent will be determined based on the daily average rate posted by the Bank of Canada on the Record Date. Under Canadian tax legislation, Canadian resident individuals who receive "eligible dividends" are entitled to an enhanced gross-up and dividend tax credit on such dividends.
The Company has a Dividend Reinvestment Plan (the "DRIP") which allows shareholders of Franco-Nevada to reinvest dividends to purchase additional common shares at the Average Market Price, as defined in the DRIP, subject to a discount from the Average Market Price in the case of treasury acquisitions. The Company will issue additional common shares through treasury at a 1% discount to the Average Market Price. The Company may, from time to time, in its discretion, change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced. Participation in the DRIP is optional. The DRIP and enrollment forms are available on the Company's website at www.franco-nevada.com . Canadian and U.S. registered shareholders may also enroll in the DRIP online through the plan agent's self-service web portal at www.investorcentre.com/franco-nevada . Canadian and U.S. beneficial shareholders should contact their financial intermediary to arrange enrollment. Non-Canadian and non-U.S. shareholders may potentially participate in the DRIP, subject to the satisfaction of certain conditions. Non-Canadian and non-U.S. shareholders should contact the Company to determine whether they satisfy the necessary conditions to participate in the DRIP.
This press release is not an offer to sell or a solicitation of an offer for securities. A registration statement relating to the DRIP has been filed with the U.S. Securities and Exchange Commission and may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at www.sec.gov .
Shareholder Information
The complete unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis can be found on our website at www.franco-nevada.com, on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov .
We will host a conference call to review our Q3 2024 results. Interested investors are invited to participate as follows:
Conference Call and Webcast: | November 7 th 8:00 am ET |
Dial‑in Numbers: | Toll‑Free: 1-888-510-2154 International: 437-900-0527 |
Conference Call URL (This allows participants to join the | |
Webcast: | |
Replay (available until November 14 th ): | Toll‑Free: 1-888-660-6345 International: 289-819-1450 Pass code: 19672# |
Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges.
Forward- Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding Franco-Nevada's growth, results of operations, estimated future revenues, performance guidance, carrying value of assets, future dividends and requirements for additional capital, mineral resources and mineral reserves estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, the performance and plans of third party operators, audits being conducted by the Canada Revenue Agency ("CRA"), the expected exposure for current and future tax assessments and available remedies, and statements with respect to the future status and any potential restart of the Cobre Panama mine and related arbitration proceedings. In addition, statements relating to mineral resources and mineral reserves, GEOs or mine lives are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such mineral resources and mineral reserves, GEOs or mine lives will be realized. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "potential for", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have "passive foreign investment company" ("PFIC") status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the mineral resources and mineral reserves contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of future pandemics; and the integration of acquired assets. The forward-looking statements contained herein are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company's ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to (i) the outcome of the ongoing audit by the CRA or the Company's exposure as a result thereof, or (ii) the future status and any potential restart of the Cobre Panama mine or the outcome of any related arbitration proceedings. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein .
For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada's most recent Annual Information Form as well as Franco-Nevada's most recent Management's Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov . The forward-looking statements herein are made as of the date hereof only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
ENDNOTES:
- GEOs: Gold equivalent ounces ("GEOs") include Franco-Nevada's attributable share of production from our Mining and Energy assets after applicable recovery and payability factors. GEOs are estimated on a gross basis for NSRs and, in the case of stream ounces, before the payment of the per ounce contractual price paid by the Company. For NPI royalties, GEOs are calculated taking into account the NPI economics. Silver, platinum, palladium, iron ore, oil, gas and other commodities are converted to GEOs by dividing associated revenue, which includes settlement adjustments, by the relevant gold price. The price used in the computation of GEOs varies depending on the royalty or stream agreement of each particular asset, which may make reference to the market price realized by the operator, or the average price for the month, quarter, or year in which the commodity was produced or sold. For Q3 2024, the average commodity prices were as follows: $2,477 /oz gold (Q3 2023 - $1,929 ), $29.42 /oz silver (Q3 2023 - $23.57 ), $963 /oz platinum (Q3 2023 - $931 ) and $970 /oz palladium (Q3 2023 - $1,251 ), $100 /t Fe 62% CFR China (Q3 2023 - $113 ), $75.09 /bbl WTI oil (Q3 2023 - $82.26 ) and $2.24 /mcf Henry Hub natural gas (Q3 2023 - $2.66 ). For YTD 2024 prices, the average commodity prices were as follows: $2,296 /oz gold (YTD 2023 - $1,932 ), $27.21 /oz silver (YTD 2023 - $23.44 ), $951 /oz platinum (YTD 2023 - $985 ) and $973 /oz palladium (YTD 2023 - $1,422 ), $112 /t Fe 62% CFR China (YTD 2023 - $116 ), $77.54 /bbl WTI oil (YTD 2023 - $77.39 ) and $2.22 /mcf Henry Hub natural gas (YTD 2023 - $2.58 ).
- NON-GAAP FINANCIAL MEASURES: Adjusted Net Income and Adjusted Net Income per share, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA per share, and Adjusted EBITDA Margin are non-GAAP financial measures with no standardized meaning under International Financial Reporting Standards ("IFRS Accounting Standards") and might not be comparable to similar financial measures disclosed by other issuers. For a quantitative reconciliation of each non-GAAP financial measure to the most directly comparable financial measure under IFRS Accounting Standards, refer to the following tables. Further information relating to these non-GAAP financial measures is incorporated by reference from the "Non-GAAP Financial Measures" section of Franco-Nevada's MD&A for the three and nine months ended September 30, 2024 dated November 6, 2024 filed with the Canadian securities regulatory authorities on SEDAR+ available at www.sedarplus.com and with the U.S. Securities and Exchange Commission available on EDGAR at www.sec.gov .
- Adjusted Net Income and Adjusted Net Income per share are non-GAAP financial measures, which exclude the following from net income and earnings per share ("EPS"): impairment losses and reversal related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests and investments; impairment losses and expected credit losses related to investments, loans receivable and other financial instruments, changes in fair value of investments, loans receivable and other financial instruments, foreign exchange gains/losses and other income/expenses; unusual non-recurring items; and the impact of income taxes on these items.
- Adjusted Net Income Margin is a non-GAAP financial measure which is defined by the Company as Adjusted Net Income divided by revenue.
- Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP financial measures, which exclude the following from net income and EPS: income tax expense/recovery; finance expenses and finance income; depletion and depreciation; impairment charges and reversals related to royalty, stream and working interests and investments; gains/losses on disposals of royalty, stream and working interests and investments; impairment losses and expected credit losses related to investments, loans receivable and other financial instruments, changes in fair value of investment, loans receivable and other financial instruments, foreign exchange gains/losses and other income/expenses; and unusual non-recurring items.
- Adjusted EBITDA Margin is a non-GAAP financial measure which is defined by the Company as Adjusted EBITDA divided by revenue.
Reconciliation of Non-GAAP Financial Measures:
For the three months ended | For the nine months ended | |||||||
September 30, | September 30, | |||||||
(expressed in millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||
Net income | $ | 152.7 | $ | 175.1 | $ | 376.7 | $ | 516.1 |
Gain on disposal of royalty interests | — | — | (0.3) | (3.7) | ||||
Foreign exchange loss (gain) and other expenses (income) | 1.3 | 1.8 | 12.7 | (2.1) | ||||
Tax effect of adjustments | (0.4) | (1.8) | (2.4) | (0.1) | ||||
Other tax related adjustments | ||||||||
Deferred tax expense related to the remeasurement of deferred tax | — | — | 49.1 | — | ||||
Change in unrecognized deductible temporary differences | 0.3 | — | (1.1) | — | ||||
Adjusted Net Income | $ | 153.9 | $ | 175.1 | $ | 434.7 | $ | 510.2 |
Basic weighted average shares outstanding | 192.3 | 192.1 | 192.3 | 192.0 | ||||
Adjusted Net Income per share | $ | 0.80 | $ | 0.91 | $ | 2.26 | $ | 2.66 |
For the three months ended | For the nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
(expressed in millions, except Adjusted Net Income Margin) | 2024 | 2023 | 2024 | 2023 | ||||||||
Adjusted Net Income | $ | 153.9 | $ | 175.1 | $ | 434.7 | $ | 510.2 | ||||
Revenue | 275.7 | 309.5 | 792.6 | 915.7 | ||||||||
Adjusted Net Income Margin | 55.8 | % | 56.6 | % | 54.8 | % | 55.7 | % |
For the three months ended | For the nine months ended | |||||||
September 30, | September 30, | |||||||
(expressed in millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||
Net income | $ | 152.7 | $ | 175.1 | $ | 376.7 | $ | 516.1 |
Income tax expense | 42.2 | 24.9 | 165.0 | 79.5 | ||||
Finance expenses | 0.7 | 0.7 | 1.9 | 2.1 | ||||
Finance income | (14.9) | (15.5) | (47.1) | (36.0) | ||||
Depletion and depreciation | 54.2 | 68.1 | 165.3 | 204.2 | ||||
Gain on disposal of royalty interests | — | — | (0.3) | (3.7) | ||||
Foreign exchange loss (gain) and other expenses (income) | 1.3 | 1.8 | 12.7 | (2.1) | ||||
Adjusted EBITDA | $ | 236.2 | $ | 255.1 | $ | 674.2 | $ | 760.1 |
Basic weighted average shares outstanding | 192.3 | 192.1 | 192.3 | 192.0 | ||||
Adjusted EBITDA per share | $ | 1.23 | $ | 1.33 | $ | 3.51 | $ | 3.96 |
For the three months ended | For the nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
(expressed in millions, except Adjusted EBITDA Margin) | 2024 | 2023 | 2024 | 2023 | ||||||||
Adjusted EBITDA | $ | 236.2 | $ | 255.1 | $ | 674.2 | $ | 760.1 | ||||
Revenue | 275.7 | 309.5 | 792.6 | 915.7 | ||||||||
Adjusted EBITDA Margin | 85.7 | % | 82.4 | % | 85.1 | % | 83.0 | % |
FRANCO-NEVADA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of U.S. dollars)
At September 30, | At December 31, | |||
2024 | 2023 | |||
ASSETS | ||||
Cash and Cash equivalents | $ | 1,317.3 | $ | 1,421.9 |
Receivables | 133.9 | 111.0 | ||
Gold bullion, prepaid expenses and other current assets | 99.8 | 82.4 | ||
Current assets | $ | 1,551.0 | $ | 1,615.3 |
Royalty, stream and working interests, net | $ | 4,230.6 | $ | 4,027.1 |
Investments | 323.3 | 254.5 | ||
Loans receivable | 110.5 | 24.8 | ||
Deferred income tax assets | 30.7 | 37.0 | ||
Other assets | 53.5 | 35.4 | ||
Total assets | $ | 6,299.6 | $ | 5,994.1 |
LIABILITIES | ||||
Accounts payable and accrued liabilities | $ | 26.2 | $ | 30.9 |
Current income tax liabilities | 40.1 | 8.3 | ||
Current liabilities | $ | 66.3 | $ | 39.2 |
Deferred income tax liabilities | $ | 242.0 | $ | 180.1 |
Other liabilities | 4.5 | 5.7 | ||
Total liabilities | $ | 312.8 | $ | 225.0 |
SHAREHOLDERS' EQUITY | ||||
Share capital | $ | 5,762.1 | $ | 5,728.2 |
Contributed surplus | 21.9 | 20.6 | ||
Retained earnings | 380.3 | 212.3 | ||
Accumulated other comprehensive loss | (177.5) | (192.0) | ||
Total shareholders' equity | $ | 5,986.8 | $ | 5,769.1 |
Total liabilities and shareholders' equity | $ | 6,299.6 | $ | 5,994.1 |
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q3 2024 Quarterly Report available on our website
FRANCO-NEVADA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(in millions of U.S. dollars and shares, except per share amounts)
For the three months ended | For the nine months ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenue | ||||||||
Revenue from royalty, streams and working interests | $ | 272.9 | $ | 309.5 | $ | 786.1 | $ | 915.7 |
Interest revenue | 2.8 | — | 5.9 | — | ||||
Other interest income | — | — | 0.6 | — | ||||
Total revenue | $ | 275.7 | $ | 309.5 | $ | 792.6 | $ | 915.7 |
Costs of sales | ||||||||
Costs of sales | $ | 31.9 | $ | 48.9 | $ | 94.6 | $ | 134.2 |
Depletion and depreciation | 54.2 | 68.1 | 165.3 | 204.2 | ||||
Total costs of sales | $ | 86.1 | $ | 117.0 | $ | 259.9 | $ | 338.4 |
Gross profit | $ | 189.6 | $ | 192.5 | $ | 532.7 | $ | 577.3 |
Other operating expenses (income) | ||||||||
General and administrative expenses | $ | 7.8 | $ | 5.0 | $ | 21.9 | $ | 17.4 |
Share-based compensation expenses | 2.4 | 0.7 | 7.0 | 6.3 | ||||
Gain on disposal of royalty interests | — | — | (0.3) | (3.7) | ||||
Gain on sale of gold bullion | (2.6) | (0.2) | (5.1) | (2.3) | ||||
Total other operating expenses | $ | 7.6 | $ | 5.5 | $ | 23.5 | $ | 17.7 |
Operating income | $ | 182.0 | $ | 187.0 | $ | 509.2 | $ | 559.6 |
Foreign exchange (loss) gain and other (expenses) income | $ | (1.3) | $ | (1.8) | $ | (12.7) | $ | 2.1 |
Income before finance items and income taxes | $ | 180.7 | $ | 185.2 | $ | 496.5 | $ | 561.7 |
Finance items | ||||||||
Finance income | $ | 14.9 | $ | 15.5 | $ | 47.1 | $ | 36.0 |
Finance expenses | (0.7) | (0.7) | (1.9) | (2.1) | ||||
Net income before income taxes | $ | 194.9 | $ | 200.0 | $ | 541.7 | $ | 595.6 |
Income tax expense | 42.2 | 24.9 | 165.0 | 79.5 | ||||
Net income | $ | 152.7 | $ | 175.1 | $ | 376.7 | $ | 516.1 |
Other comprehensive income (loss), net of taxes | ||||||||
Items that may be reclassified subsequently to profit and loss: | ||||||||
Currency translation adjustment | $ | 24.1 | $ | (31.7) | $ | (27.4) | $ | (1.8) |
Items that will not be reclassified subsequently to profit and loss: | ||||||||
Gain on changes in the fair value of equity investments | ||||||||
at fair value through other comprehensive income ("FVTOCI"), | ||||||||
net of income tax | 24.3 | 3.5 | 41.5 | 4.5 | ||||
Other comprehensive income (loss), net of taxes | $ | 48.4 | $ | (28.2) | $ | 14.1 | $ | 2.7 |
Comprehensive income | $ | 201.1 | $ | 146.9 | $ | 390.8 | $ | 518.8 |
Earnings per share | ||||||||
Basic | $ | 0.79 | $ | 0.91 | $ | 1.96 | $ | 2.69 |
Diluted | $ | 0.79 | $ | 0.91 | $ | 1.96 | $ | 2.68 |
Weighted average number of shares outstanding | ||||||||
Basic | 192.3 | 192.1 | 192.3 | 192.0 | ||||
Diluted | 192.5 | 192.4 | 192.5 | 192.3 | ||||
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q3 2024 Quarterly Report available on our website
FRANCO-NEVADA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)
For the three months ended | For the nine months ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Cash flows from operating activities | ||||||||
Net income | $ | 152.7 | $ | 175.1 | $ | 376.7 | $ | 516.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depletion and depreciation | 54.2 | 68.1 | 165.3 | 204.2 | ||||
Share-based compensation expenses | 1.3 | 1.5 | 4.2 | 4.7 | ||||
Gain on disposal of royalty interests | — | — | (0.3) | (3.7) | ||||
Unrealized foreign exchange loss | 0.1 | 1.8 | 7.9 | (1.7) | ||||
Deferred income tax expense | 7.7 | 1.5 | 64.0 | 16.6 | ||||
Other non-cash items | (1.7) | (0.2) | (5.7) | (2.2) | ||||
Acquisition of gold bullion | (20.0) | (15.9) | (52.4) | (41.1) | ||||
Proceeds from sale of gold bullion | 12.7 | 1.9 | 29.3 | 20.5 | ||||
Changes in other assets | — | 13.9 | (17.4) | 13.9 | ||||
Operating cash flows before changes in non-cash working capital | $ | 207.0 | $ | 247.7 | $ | 571.6 | $ | 727.3 |
Changes in non-cash working capital: | ||||||||
(Increase) decrease in receivables | $ | (12.8) | $ | 9.6 | $ | (22.7) | $ | 0.9 |
Decrease (increase) in prepaid expenses and other | 8.2 | (6.5) | 10.7 | (10.5) | ||||
(Decrease) increase in current liabilities | 11.2 | (14.8) | 26.9 | (10.0) | ||||
Net cash provided by operating activities | $ | 213.6 | $ | 236.0 | $ | 586.5 | $ | 707.7 |
Cash flows used in investing activities | ||||||||
Acquisition of royalty, stream and working interests | $ | (238.6) | $ | (165.0) | $ | (401.7) | $ | (435.8) |
Advances of loans receivable | (34.7) | — | (118.2) | — | ||||
Acquisition of investments | (27.9) | (8.4) | (38.9) | (8.9) | ||||
Proceeds from repayment of loan receivable | 10.0 | — | 28.9 | — | ||||
Proceeds from sale of investments | 12.9 | 0.1 | 14.0 | 2.0 | ||||
Proceeds from disposal of royalty interests | — | — | 11.2 | 7.0 | ||||
Acquisition of energy well equipment | (0.7) | (0.4) | (1.4) | (1.2) | ||||
Acquisition of property and equipment | — | — | (0.1) | — | ||||
Net cash used in investing activities | $ | (279.0) | $ | (173.7) | $ | (506.2) | $ | (436.9) |
Cash flows used in financing activities | ||||||||
Payment of dividends | $ | (61.1) | $ | (56.8) | $ | (180.3) | $ | (173.2) |
Proceeds from exercise of stock options | — | — | 2.7 | 2.9 | ||||
Revolving credit facility amendment costs | — | — | (0.8) | — | ||||
Net cash used in financing activities | $ | (61.1) | $ | (56.8) | $ | (178.4) | $ | (170.3) |
Effect of exchange rate changes on cash and cash equivalents | $ | 4.8 | $ | (3.5) | $ | (6.5) | $ | 0.1 |
Net change in cash and cash equivalents | $ | (121.7) | $ | 2.0 | $ | (104.6) | $ | 100.6 |
Cash and cash equivalents at beginning of period | $ | 1,439.0 | $ | 1,295.1 | $ | 1,421.9 | $ | 1,196.5 |
Cash and cash equivalents at end of period | $ | 1,317.3 | $ | 1,297.1 | $ | 1,317.3 | $ | 1,297.1 |
Supplemental cash flow information: | ||||||||
Income taxes paid | $ | 14.1 | $ | 16.1 | $ | 56.6 | $ | 67.0 |
Dividend income received | $ | 5.1 | $ | 3.1 | $ | 9.3 | $ | 8.7 |
Cash paid for interest expense and loan standby fees | $ | 0.5 | $ | 0.6 | $ | 1.5 | $ | 1.8 |
The unaudited condensed consolidated interim financial statements and accompanying notes can be found in our Q3 2024 Quarterly Report available on our website
View original content: https://www.prnewswire.com/news-releases/franco-nevada-reports-q3-2024-results-302298101.html
SOURCE Franco-Nevada Corporation
View original content: http://www.newswire.ca/en/releases/archive/November2024/06/c8862.html
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Trump Win Fuels Surge in US Dollar, Gold and Silver Prices Fall
What was expected to be a highly contested election between former US President Donald Trump and Vice President Kamala Harris was anything but, with the outcome being called early on Wednesday (November 6).
The results will have wide-reaching implications for the US and global economy as Trump ran on a platform of lowering taxes, raising tariffs and sweeping immigration reforms that could see millions of people deported.
His win comes ahead of the latest Federal Open Market Committee meeting, which is scheduled to wrap up on Thursday (November 7). The central bank is widely expected to cut interest rates by 25 basis points.
The Fed has been locked in a battle against inflation and only began lowering rates in September, when it made a cut of 50 basis points. Economists have expressed concerns that inflation will worsen under Trump.
Bond yields rose in reaction to the president-elect's victory, with the benchmark 10 Year Treasury rising 4.43 percent on Wednesday to reach its highest level since July. Sentiment pushed yields higher under the expectation that Trump's economic policy plans will require the federal government to take on increasing amounts of debt.
Before the election, it was widely expected that a Trump victory would fuel momentum in the US dollar, and that prediction came true in the immediate aftermath, with the US Dollar Index surging more than 1.5 percent to 105.18 as early results began to come in on election day. It remained in the 105 point range throughout Wednesday.
The post-election boost failed to carry over into precious metals markets, with gold retracting between 1 and 2 percent. The metal lost 2.8 percent on Wednesday, falling below US$2,700 per ounce for the first time since October 17.
Silver also saw a significant pullback, dropping 4.3 percent to US$31.23 per ounce by 3:30 p.m. EST.
Base metals fared no better, with copper shedding 4.7 percent on Wednesday to trade at US$4.28 per pound on the COMEX. For its part, the more broad S&P GSCI (INDEXSP:SPGSCI), which acts as a benchmark for commodities performance, recovered from steep declines in morning trading and was down just under 1 percent at 541.25.
Global equity markets surged in the immediate aftermath of Trump's victory, but finished mixed, with the UK’s FTSE 100 (INDEXFTSE:FTSE) gaining 1.55 percent in early trading there before retracing to finish the day at 8,166.68. The German DAX (INDEXDAXP:GDAXI) saw similar gains in early trading before falling back to close 1.13 percent lower at 19,039.31. Meanwhile, Tokyo’s Nikkei 225 (INDEXNIKKEI225:N225) rose 2.61 percent to close at 39,480.45.
US markets all saw substantial gains in Wednesday trading, with the S&P 500 (INDEXSP:INX) jumping 2.43 percent to 5,923.58, the Nasdaq-100 (INDEXNASDAQ:NDX) up 2.58 percent to 20,750.1 and the Dow Jones Industrial Average (INDEXDJX:.DJI) increasing 3.47 percent to a new record high of 43,685.92.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Will Trump Bring Back the Gold Standard? (Updated 2024)
The gold standard hasn’t been used in the US since the 1970s, but when Donald Trump was president from 2017 to 2021 there was some speculation that he could bring it back.
Rumors that the gold standard could be reinstated during Trump’s presidency centered largely on positive comments he made about the idea. Notably, he suggested that it would be “wonderful” to bring back the gold standard, and a number of his advisors were of the same mind — Judy Shelton, John Allison and others supported the concept.
Now that Trump has won the 2024 US presidential election, some are again wondering if he will return the country to the gold standard after he takes office in January 2025. Speaking on his War Room podcast in December 2023, Steve Bannon, Trump's former chief strategist, said he believes the president elect could ditch the US Federal Reserve and bring back the gold standard in his second term in office.
More recently, the Heritage Foundation included a whole chapter on the US Federal Reserve written by a former member of Trump's 2016 transition team in its Project 2025 (a proposed blueprint for Trump's second term), and suggested a return to the gold standard. While President Trump has publicly disavowed Project 2025, its creators say he is privately supportive of the initiative.
Read on to learn what the gold standard is, why it ended, what President Trump has said about bringing back the gold standard — and what could happen if a gold-backed currency ever comes into play again.
What is the gold standard?
What is the gold standard and how does it work? Put simply, the gold standard is a monetary system in which the value of a country’s currency is directly linked to the yellow metal. Countries using the gold standard set a fixed price at which to buy and sell gold to determine the value of the nation’s currency.
For example, if the US went back to the gold standard and set the price of gold at US$500 per ounce, the value of the dollar would be 1/500th of an ounce of gold. This would offer reliable price stability.
Under the gold standard, transactions no longer have to be done with heavy gold bullion or gold coins. The gold standard also increases the trust needed for successful global trade — the idea is that paper currency has value that is tied to something real. The goal is to prevent inflation as well as deflation, and to help promote a stable monetary environment.
When was the gold standard introduced?
The gold standard was first introduced in Germany in 1871, and by 1900 most developed nations, including the US, were using it. The system remained popular for decades, with governments worldwide working together to make it successful, but when World War I broke out it became difficult to maintain. Changing political alliances, higher debt and other factors led to a widespread lack of confidence in the gold standard.
What countries are on the gold standard today?
Currently, no countries use the gold standard. Decades ago, governments abandoned the gold standard in favor of fiat monetary systems. However, countries around the world do still hold gold reserves in their central banks. The Federal Reserve is the central bank of the US, and as of November 2024 its gold reserves came to 8,133.46 metric tons of the yellow metal.
Why was the gold standard abandoned?
The demise of the gold standard began as World War II was ending. At this time, the leading western powers met to develop the Bretton Woods agreement, which became the framework for the global currency markets until 1971.
The Bretton Woods agreement was born at the UN Monetary and Financial Conference, held in Bretton Woods, New Hampshire, in July 1944. Currencies were pegged to the price of gold, and the US dollar was seen as a reserve currency linked to the price of gold. This meant all national currencies were valued in relation to the US dollar since it had become the dominant reserve currency. Despite efforts from governments at the time, the Bretton Woods agreement led to overvaluation of the US dollar, which caused concerns over exchange rates and their ties to the price of gold.
By 1971, US President Richard Nixon had called for a temporary suspension of the dollar’s convertibility. Countries were then free to choose any exchange agreement, except the price of gold. In 1973, foreign governments let currencies float; this put an end to Bretton Woods, and the gold standard was ousted.
What is the US dollar backed by?
Since the 1970s, most countries have run on a system of fiat money, which is government-issued money that is not backed by a commodity. The US dollar is fiat money, which means it is backed by the government, but not by any physical asset.
The value of money is set by supply and demand for paper money, as well as supply and demand for other goods and services in the economy. The prices for those goods and services, including gold and silver, can fluctuate based on market conditions.
What has Trump said about the gold standard?
While it’s perhaps not common knowledge, Trump has long been a fan of gold.
In fact, as Sean Williams of the Motley Fool has pointed out, Trump has been interested in gold since at least the 1970s, when private ownership of gold bullion became legal again. He reportedly invested in gold aggressively at that time, buying the precious metal at about US$185 and selling it between US$780 and US$790.
Since then, Trump has specifically praised the gold standard. In an oft-quoted 2015 GQ interview that covers topics from marijuana to man buns, Trump said, “Bringing back the gold standard would be very hard to do, but boy, would it be wonderful. We’d have a standard on which to base our money.”
In a separate interview that year, he said, “We used to have a very, very solid country because it was based on a gold standard.”
According to Politico’s Danny Vinik, “(Trump has) surrounded himself with a number of advisors who hold extreme, even fringe ideas about monetary policy. … At least six … have spoken favorably about the gold standard.” Shelton and Allison, mentioned above, are not alone. Others include Ben Carson and David Malpass. The last two, Rebekah and Robert Mercer, eventually distanced themselves from Trump, but had a strong influence before that.
Emphasizing how unusual President Trump’s support for the international gold standard is, Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics, told the news outlet, “(It) seems like nothing that’s happened since the Great Depression.” Gagnon, who has also worked for the Fed, added, “You have to go back to Herbert Hoover.”
Back in 2017, Politico also quoted libertarian Ron Paul, another gold standard supporter, as saying, “We’re in a better position than we’ve ever been in my lifetime as far as talking about serious changes to the monetary system and talking about gold.”
Would it be feasible for the US to return to the gold standard?
Trump’s first term as president passed without a return to the gold standard, and the consensus seems to be that it’s highly unlikely that this event will come to pass — even with him at the helm once again. Even many ardent supporters of the system recognize that going back to it could create trouble.
As per the Motley Fool’s Williams, economists largely agree that moving to a lower-key version of the gold standard in 1933 was “a big reason why the US emerged from the Great Depression,” and a return would be a mistake.
But if President Trump or a future president did decide to go through with it, what would it take? According to Kimberly Amadeo at the Balance, due to trade, money supply and the global economy, the rest of the world would need to go back to the gold standard as well. Why? Because otherwise the countries that use the US dollar could stand with their hands out asking for their dollars to be exchanged for gold — including debtors like China and Japan, to which the US owes a large chunk of its multitrillion-dollar national debt.
Is there enough gold to return to the gold standard?
The fact that the US doesn’t have enough gold in its reserves to pay back all its debt poses a huge roadblock to returning to the gold standard. The country would have to exponentially replenish its gold reserves in advance of any return to the gold standard.
"The United States holds around 261.5 million troy ounces of gold, valued at approximately $489 billion. The total US money supply exceeds $20 trillion, necessitating about 272,430 metric tons of gold at current market prices," explained Ron Dewitt, Director of Business Development at the Gold Information Network, in a June 2024 LinkedIn post. "The supply remains insufficient, even including global gold stocks, which total around 212,582 metric tons."
In addition, it's understood that returning to the gold standard would require the price of gold to be set much higher than it is currently. What would the price of gold need to be worth if the US returned to the gold standard? Financial analyst and investment banker Jim Rickards has calculated the gold price would need to jump up to at least US$27,000 an ounce.
That means the US dollar would be severely devalued, causing inflation, and since global trade uses the US dollar as a reserve currency, it would grind to a halt. Conversely, returning to the gold standard at a low gold price would cause deflation.
What would silver be worth if the US returned to the gold standard? It's not a guarantee that silver would follow in gold's footsteps if a gold standard was re-established due to its many industrial and technological applications. While silver has a long history as a precious metal and played an important role as currency for much of human history, its value today is intrinsically linked to that demand as well.
What would happen if the US returned to the gold standard?
Returning to the gold standard would have a huge impact on all levels of the US economy and make it impossible for the Fed to offer fiscal stimulus. After all, if the US had to have enough gold reserves to exchange for dollars on an as-needed basis, the Fed’s ability to print paper currency would be incredibly limited.
Supporters believe that could be the perfect way to get the US out of debt, but it could also cause problems during times of economic crisis. It’s important to remember that because 70 percent of the US economy is based on consumer spending, if inflation rose due to the gold price rising, then a lot of consumers would cut spending. That would then affect the stock market as well, which could very well lead to a recession or worse without the ability of the government to soften that blow via money supply.
"Transitioning to a gold standard during an economic crisis would severely limit monetary policy options and could lead to economic instability," Dewitt warned.
For that reason, a return to the gold standard would also expose the US economy to the yellow metal’s sometimes dramatic fluctuations — while some think that gold would offer greater price stability, it’s no secret that it’s been volatile in the past. Looking back past the metal’s recent stability, it dropped quite steeply from 2011 to 2016.
Moreover, speaking to Congress on this issue in 2019, Fed Chair Jerome Powell warned against a return to the gold standard.
“You’ve assigned us the job of two direct, real economy objectives: maximum employment, stable prices. If you assigned us (to) stabilize the dollar price of gold, monetary policy could do that, but the other things would fluctuate, and we wouldn’t care,” Powell said. “There have been plenty of times in fairly recent history where the price of gold has sent a signal that would be quite negative for either of those goals.”
As can be seen, returning to the gold standard would be a complex ordeal with pros and cons. The likelihood of the US bringing back the gold standard is slim, but no doubt the question will continue to be up for debate under future presidents.
This is an updated version of an article first published by the Investing News Network in 2017.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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