Brightstar Resources Limited (ASX: BTR) (Brightstar) is pleased to announce that open pit mining activities have safely and successfully concluded at the Selkirk Mining JV located near Menzies, conducted by Brightstar’s joint venture partner, BML Ventures Pty Ltd (BML Ventures).
HIGHLIGHTS
Haulage activities are ongoing with over 35,000 tonnes of ore already hauled and stockpiled to the surface Run-of-Mine (ROM) Pad at Genesis Minerals’ Gwalia processing plant located immediately south of Leonora, WA. Proactive communications with the Genesis Minerals site team will see toll-treatment commence on the 1st of March, 2024 and conclude at the depletion of the Selkirk ore stockpile onsite at Gwalia resulting in Brightstar’s inaugural gold pours during March 2024.
Minesite rehabilitation has already commenced with the Selkirk waste rock dump (WRD) being shaped and contoured ahead of topsoil and seed placement in line with industry best practices, with demobilisation of BML’s mining fleet to occur progressively in conjunction with rehabilitation activities.
Brightstar’s Managing Director, Alex Rovira, commented“We are delighted to announce that we are soon to join the ranks of Australian gold producers through the toll-treatment of our Selkirk JV ore through the Gwalia processing plant in March 2024.
Our Joint Venture with BML Ventures has been conducted in a safe, productive and professional manner with gold revenues to be split on a 50/50 basis after project cost reconciliations. The JV budget utilised a conservative gold price of A$2,850 per ounce, compared to the current spot price of +A$3,100 per ounce which will provide financial upside to the joint venture.
We continue to advance the Link Zone deposits at Menzies as a potential additional small scale mining campaign at Menzies that can be executed contemporaneously with the exploration and development workstreams. Open pit optimisations are currently ongoing in parallel with relevant permitting and approval processes for potential expedited development.
We look forward to sharing news of Brightstar’s inaugural gold pour in March and further activities related to our Pre-Feasibility Study as they occur, including an RC program to commence at Menzies in the near future”.
Figure 1 – Selkirk Pit (looking NW) upon completion
Figure 2 - Last ore load being dumped on Selkirk ROM
This ASX announcement has been approved by the Managing Director on behalf of the board of Brightstar.
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This article includes content from Brightstar Resources, 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.
A gold-focused emerging gold producer with a clear pathway to production growth, Brightstar Resources presents a compelling investment case driven by its mining and development hubs strategy and a district-scale resource opportunity.
The price of gold stays strong. In April 2024, the yellow metal’s price passed US$2,400 per ounce for the first time. The reason is multifaceted. The world teeters on the brink of a severe recession while some markets attribute the increase to safe haven rush. Amidst ballooning interest rates, bank failures and falling bond yields, demand for gold continues to rise. At this precise moment, gold is simultaneously an excellent portfolio diversifier and a compelling hedge against ongoing inflation — particularly if one invests in the right company.
Brightstar Resources (ASX:BTR) aims to be that company. An emerging mining and development company, Brightstar occupies a strategic land position of roughly 1,200 square kilometers in the Sandstone Greenstone Belt, 300 square kilometers in the Laverton Tectonic Belt and 80 square kilometers of the Menzies Shear Zone.
The company also owns an existing processing facility that can potentially provide tremendous shareholder value in a low-capital cost restart scenario.
That plant, once fully refurbished and operational, could prove a key differentiator for the company, enabling fast gold production at a low capital cost. This is especially noteworthy given that many other gold companies trading on the ASX are largely focused on greenfield exploration and development. Even once those companies discover a promising resource, mining and processing facilities would still need to be built, undertakings which can incur significant upfront capital costs and take several years.
Brightstar's Laverton gold assets are all centered on a 100 percent-owned 300-square-kilometer tenure in the Laverton Tectonic Zone and all within 70 kilometers of the Laverton Processing Plant. Additionally, all resources within this zone are open along strike and at depth. Only minor drilling programs have been conducted in recent years, paving the way for significant exploration upside with the potential for further regional and greenfields discoveries.
Brightstar also owns 100 percent of the Menzies Gold Project, a contiguous land package of granted mining leases over a strike length of roughly 20 kilometers along the Menzies Shear Zone and adjacent to the Goldfields Highway.
In 2023 and 2024, the company announced a mineral resource upgrade to the Cork Tree Well deposit (Laverton gold project) and also delivered two maiden mineral resource estimates at the Link Zone and Aspacia deposits (Menzies gold project). This has grown the total group MRE by approximately 150 koz gold through organic exploration.
The company has also acquired 100 percent of the shares and options of Linden Gold Alliance, a gold producer, developer and explorer with existing mineral resources of 350 koz @ 2.1 g/t gold near Brightstar in the Laverton district. Brightstar’s MRE has reached 1.1 Moz gold across the Menzies and Laverton projects, with an additional 0.35 Moz gold in resources added after the successful acquisition of Linden Gold Alliance.
In August 2024, Brightstar entered into a scheme implementation deed to acquire 100 percent of Alto Metals (ASX:AME), which owns the Sandstone gold project located in East Murchison. The project has a current mineral resource of 1.05 Moz of gold at 1.5 g/t.
Brightstar also completed the acquisition of the gold rights at the Montague East gold project (MEGP) from Gateway Mining Limited (ASX:GML). The project is located 70 km from the Sandstone gold project. The acquisition adds a further 9.6 Mt @ 1.6 g/t gold for 0.5 Moz gold to Brightstar’s JORC Mineral Resource Estimate, giving the company a total mineral endowment of 38.3 Mt @ 1.6 g/t gold for 2.0 Moz gold.
The acquisition of the MGEP from Gateway Mining and 100 percent of Alto’s shares creates a third district-scale resource base for the company called the Sandstone Hub. Upon consolidation of the Laverton, Menzies and Sandstone hubs, Brightstar’s mineral resources would reach 3 Moz at 1.5g/t gold.
Subsequent to the deal with Alto Metals, Brightstar entered into a $4 million drill-for-equity agreement with Topdrill to aggressively advance the consolidated Sandstone gold project. The deal strengthens Brightstar's financial capacity to fulfill its multi-hub exploration and development strategy, which includes the Menzies, Laverton and Sandstone hubs.
Brightstar’s Laverton hub is comprised of the Cork Tree Well, Beta and Alpha project areas with the addition of the Second Fortune gold mine and the Jasper Hills projects.
The Menzies Hub comprises a tenement holding of a contiguous land package of granted mining leases over a strike length of more than 20 km. The majority of deposits hosted along the Menzies Shear Zone are located adjacent to Goldfields Highway in Menzies (130km north of Kalgoorlie).
The consolidated Sandstone project is over 100 km from existing third-party milling operations in the Murchison. This third processing hub boasts Alto’s Sandstone project with a mineral resource of 1.05 Moz at 1.4 g/t gold and Gateway’s Montague gold project with a mineral resource of 0.5 Moz @ 1.6 g/t gold.
Brightstar aims to fast-track the development timetable through:
Situated close to Brightstar's existing mineral assets at Laverton, the Brightstar Processing Plant provides the company with a considerable operational head start over its peers.
Gold doré bars (BTR005 – BTR016) poured on 9 March 2024
Alex Rovira is a qualified geologist and an experienced investment banker having focused on the metals and mining sector since 2013. Rovira has experience in ASX equity capital markets activities, including capital raisings, IPOs and merger and acquisitions.
Richard Crookes has over 35 years’ experience in the resources and investments industries. He is a geologist by training having previously worked as the chief geologist and mining manager of Ernest Henry Mining in Australia.
Crookes is managing partner of Lionhead Resources, a critical minerals investment fund and formerly an investment director at EMR Capital. Prior to that he was an executive director in Macquarie Bank’s Metals Energy Capital (MEC) division where he managed all aspects of the bank’s principal investments in mining and metals companies.
Andrew Rich is a degree qualified mining engineer from the WA School of Mines and has obtained a WA First Class Mine Managers Certificate. Rich has a strong background in underground gold mining with experience predominantly in the development of underground mines at Ramelius Resources (ASX:RMS) and Westgold Resources (ASX:WGX).
Ashley Fraser is an accomplished mining professional with over 30 years experience across gold and bulk commodities. Fraser was a founder of Orionstone (which merged with Emeco in a $660-million consolidation) and is a founder/owner of Blue Cap Mining and Blue Cap Equities.
Jonathan Downes has over 30 years’ experience in the minerals industry and has worked in various geological and corporate capacities. Experienced with gold and base metals, he has been intimately involved with the exploration process through to production. Downes is currently the managing director of Kaiser Reef, a high grade gold producer, and non-executive director of Cazaly Resources.
Dean Vallve holds technical qualifications in geology & mining engineering from the WA School of Mines, an MBA, and a WA First Class Mine Managers Certificate. Vallve was previously in senior mining and study roles at ASX listed mid-cap resources companies Hot Chili (ASX:HCH) and Calidus Resources (ASX:CAI).
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)
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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 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
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:
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
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
Sector-Leading ESG
Diverse, Long-Life Portfolio
Growth and Optionality
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
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 :
Central America & Mexico :
U.S.:
Canada :
Rest of World:
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:
Energy:
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:
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
News Provided by Canada Newswire via QuoteMedia
HIGHLIGHTS
As outlined in RMX’s ASX announcement of 30 October 2024, the rock and soil sampling program was designed to test ten target zones defined using available geological and geophysical data for the Flicka Lake tenement. Zones sampled included the Flicka Zone, previously identified and sampled by Troon Ventures in the early 2000s.
High gold grades for the Flicka Zone confirmed by rock chip sample results
The gold values returned for the 91 rock chip samples are shown on Figure 1 and Figure 2 and listed on Table 1. The best results were obtained from Vein #2 and Vein #3 of the Flicka Zone, with peak values of:
The RMX rock chip results are consistent with historical rock chip and channel sampling results reported by Troon Ventures for the Flicka Zone (Figure 2) that range up to 16.88ppm (16.88 g/t Au) for Vein #1, 12.96ppm (12.96 g/t Au) for Vein #2 and 20.067ppm (20.067 g/t Au) for Vein #3 (refer to RMX ASX Announcement 30 October 2024).
The gold results to date from the Flicka Zone veins are comparable to the recorded grade of the Golden Patricia Mine (refer to Figure 4), a steeply dipping narrow quartz vein system averaging only 40cm in width that is located approximately 25km NE of the Flicka Lake project area. Between 1987 and 1997, Golden Patricia produced 0.62Moz of gold from 1.22Mt of ore averaging 14.4ppm (14.4 g/t Au)1.
An additional pyritic vein sample, located ~800m WSW of the Flicka Zone along the strike of and striking approximately parallel to the main Flicka Zone shear (Figure 1) returned a value of 0.514ppm (0.514 g/t Au), which highlights the potential for the high-grade mineralisation sampled at the Flicka Zone to persist along the shear system.
Figure 1: RMX rock chip gold results for the Flicka Lake project. Values of > 0.5ppm (0.5 g/t Au) outside of the Flicka Zone are shown. For detail of sampling at the Flicka Zone refer to Figure 2. The white dashed lines are faults and shear zones mapped by Troon Ventures in 2003. Note the relationship between the Flicka Lake and Fry Lake #9 gold mineral occurrences and the NNE- trending shear zones. Fry Lake #9 lies outside of the RMX mineral claims area.
Figure 2: RMX rock chip and Troon Ventures historical rock chip and channel gold results for the Flicka Zone. Values of > 1ppm (1 g/t Au) are shown. The location of three mineralised quartz veins as mapped by Troon Ventures are also shown. Note that the mapped location of these veins and of some historical samples may have a GPS error of up to 10m – most significantly, the 9.35ppm (9.35 g/t Au) RMX sample is interpreted to be from Vein #3.
Figure 3: Photo of the mineralised sample 1292094 from Vein #2 at the Flicka Zone, which assayed at 19.4ppm (19.4 g/t Au)
Next steps
Following receipt of soil geochemistry and full base metal rock chip sample results, expected during November, RMX will evaluate the full dataset to prioritise targets within the Flicka Lake claims for further surface sampling, where justified and drill testing during the 2025 Canadian field season.
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