Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) (together with its affiliates, " Newmont " or the " Company ") announced today that Newcrest Canada Holdings Inc. (the " Vendor "), a wholly-owned subsidiary of Newmont, sold all 14,674,056 common shares of Azucar Minerals Ltd. (" Azucar ") held by the Vendor to Almadex Minerals Ltd. (" Almadex ") and certain directors and officers of Azucar (collectively with Almadex, the " Purchasers "), for an aggregate purchase price of $220,110.84, being $0.015 per share (the " Transaction "). The Transaction was completed pursuant to a share purchase agreement among the Vendor and the Purchasers dated as of October 21, 2024 (the " Share Purchase Agreement ").
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Significant Exploration Target for Golden Ridge, NE Tasmania
Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to announce a maiden JORC compliant Exploration Target for the Trafalgar, Brilliant and Link Zone prospects at its 100%-owned Golden Ridge Project in North-east Tasmania.
Highlights
- Maiden Exploration Target estimated for the Trafalgar, Brilliant and Link Zone prospects at FG1’s 100%-owned Golden Ridge Project
- The estimated range of potential mineralisation for the Exploration Target* is:
- 3.5 to 5.4 million tonnes grading at 3.0g/t Au to 4.0g/t Au for 449,000oz to 520,000oz of contained gold
*The size and grade of the Exploration Target is conceptual in nature and therefore is an approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code.
- 3.5 to 5.4 million tonnes grading at 3.0g/t Au to 4.0g/t Au for 449,000oz to 520,000oz of contained gold
- Exploration Target is open in all directions and represents less than 30% of the known strike of the 9km gold anomaly that defines the gold mineralised system at Golden Ridge
- Diamond drilling underway at Link Zone testing extensions of known gold-vein mineralisation along strike and down-dip of the historic Golden Ridge Adit
- Further drilling planned to expand the Exploration Target and convert to a Mineral Resource
- To hear our Managing Director Neil Marston discuss this Exploration Target announcement and to further engage with the Flynn Gold team head to: https://investorhub.flynngold.com.au/link/WrAB1P
The combined Exploration Target range is listed in Table 1:
Table 1 – Combined Exploration Target for Trafalgar, Brilliant and Link Zone
Flynn Gold’s Managing Director and CEO, Neil Marston states: “Following several successful drill campaigns testing the gold mineralisation at Golden Ridge, we are pleased to report an initial JORC-compliant Exploration Target for the Trafalgar, Brilliant and Link Zone prospects.
“The Exploration Target is open in all directions and encompasses less than 30% of the known gold anomalism at Golden Ridge which highlights the substantial future growth potential of this exciting project.
“This is a significant step toward our next goal of defining a maiden JORC Mineral Resource for the project. There is potential to significantly increase the tonnage and grade at Golden Ridge with in-fill and expansion drilling, which will be a major focus for the Company during 2025.”
Exploration Target
The Golden Ridge Project is located within EL17/2018 in North-east Tasmania (see Figure 7).
Flynn has calculated JORC compliant Exploration Targets for the Trafalgar, Brilliant and Link Zone prospects at Golden Ridge dated 8th November 2024. Table 2 below provides a summary of the Exploration Targets for each prospect:
Table 2 - Exploration Targets for Trafalgar, Brilliant and Link Zone prospects at the Golden Ridge project.
The combined Exploration Target only encompasses areas where Flynn has drill-tested vein mineralisation at locations shown in Figure 1 and does not include areas of anomalous soil geochemistry, which the Company considers to be highly prospective for gold mineralisation and intends to drill-test in the future.
The drill-tested Trafalgar, Brilliant and Link Zone prospects define a significant zone of gold mineralisation extending over a strike length of approximately 3km, which is contained within a broader 9km zone of gold anomalism that trends along the contact between the Golden Ridge granodiorite and the Mathinna supergroup metasediments (Figures 1 - 3).
Potential gold vein extensions at Trafalgar and Brilliant ,defined by anomalous gold-in-soil geochemistry along strike of and surrounding the Exploration Target veins, were not included in the Exploration Target calculation.
Work is currently in progress to in-fill these areas with soil sampling and trenching prior to exploration drill-testing.
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This article includes content from Flynn Gold, 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.
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Flynn Gold
Investor Insights
Flynn Gold’s large, high-grade gold footprint in Tasmania provides a compelling investor proposition that leverages a continuing gold bull market.
Overview
Flynn Gold (ASX:FG1) is an Australian mineral exploration company with a portfolio of projects in Tasmania and Western Australia.
Tasmania is home to several world-renowned deposits and is rich in diverse mineral resources and operating mines. The region has established mining districts, excellent infrastructure such as rail and ports, and a skilled workforce, with a stable political and regulatory environment. These features are a big positive for the company’s projects in this region.
The company has nine 100 percent owned tenements in Northeast Tasmania which are highly prospective for gold and tin/tungsten with three major projects — Golden Ridge, Portland and Warrentinna. In Northwest Tasmania, it has the Henty zinc-lead-silver and the Firetower gold and critical minerals projects.
Flynn Gold’s exploration at its Golden Ridge project has focused on an 9-kilometre-long granodiorite-metasediment contact zone with diamond drilling programs completed at the Brilliant and Trafalgar prospects, with multiple high-grade gold vein intersections.
Apart from Tasmania, the company is building a strategic lithium and gold portfolio in Western Australia, targeting hard-rock lithium pegmatites and intrusive related gold deposits in the Pilbara region and Yilgarn Craton. Its five lithium-gold projects in Western Australia are strategically located in districts hosting large gold and lithium deposits or in regions that are relatively under-explored for lithium. Of these, three lithium-gold projects are in the Yilgarn region: Forrestania, Lake Johnston and Koolyanobbing. The remaining two are in the Pilbara region: Mt Dove and Yarrie.
Company Highlights
- Flynn Gold is an Australian mineral exploration company with a portfolio of gold and battery metals projects in Tasmania and Western Australia.
- In Tasmania, the company holds 12 tenements spread across 1,403 sq km, including three main projects in Northeast Tasmania — Golden Ridge, Warrentinna and Portland — that are prospective for gold and tin. Moreover, it has two projects in Northwest Tasmania: the Henty zinc-lead-silver project and the Firetower gold-cobalt-tungsten-copper project.
- Flynn Gold is focused on advancing exploration and drilling at three high-grade gold projects in Tasmania - Golden Ridge, Warrentinna and Firetower.
- In Western Australia, Flynn holds 20 tenements across 1,200 sq km, including lithium-gold projects in the Pilbara and Yilgarn regions. The Yilgarn region has three lithium-gold projects: Forrestania; Lake Johnston and Koolyanobbing. The Pilbara hosts two gold-lithium projects: Mt Dove and Yarrie.
- The company’s senior leadership team has a proven track record in the mining sector to capitalize on the high resource potential of its projects.
Key Projects
Northeast Tasmania
The company is focused on three high-grade gold projects in Tasmania — Golden Ridge, Warrentinna and Firetower. The under-explored Northeast Tasmania region is interpreted to be part of the Western Lachlan Orogen, a geological extension of the rich Victorian Goldfields which boast of historical gold production of over 80 million ounces (Moz). The company’s landholding across nine 100 percent owned tenements in the region has provided it with significant potential for gold and tin discoveries.
Golden Ridge Project
Targeted for intrusive related gold system (IRGS) style mineralization, the Golden Ridge project is located 75 kilometres east of Launceston in Northeast Tasmania. Previous gold exploration at the Golden Ridge Project has been very limited with shallow historical workings located over an 9-kilometre-long granodiorite-metasediment contact zone. Flynn Gold’s exploration has focused on the Brilliant and Trafalgar prospects, with diamond drilling programs completed at both locations between June 2021 and August 2023. In addition, a limited reconnaissance RC drilling program in late 2022 to test for gold mineralisation at the Link Zone confirmed the presence of shallow gold mineralisation between the Brilliant and Trafalgar prospects, highlighting the significant gold potential of the granodiorite-metasediment contact zone.
Drilling at Trafalgar consisted of 14 holes for 5,218.3 metres with multiple vein intersections grading >100 grams per ton (g/t) gold reported. The best intersections recorded in drilling at Trafalgar were 16.8 g/t gold over 12.3 metres (from 108.7 to 121 metres), including 0.7m at 152.5 g/t gold and 23.7 g/t gold over 4 metres (from 23 to 27 metres), including a high-grade zone of 0.5 metre at 169.8 g/t gold.
Soil sampling at the Golden Ridge project has been progressively undertaken since an initial sampling trial using the UltraFine+ technique was initiated in May 2022. The results of this soil sampling have highlighted the known prospect areas, as well as several new target areas at Grenadier and Big Penny, with gold anomalism not associated with historical workings.
Phase 3 drilling has commenced at the Trafalgar high-grade gold prospect confirming the continuity of multiple sub-parallel high-grade gold veins.
New high-grade gold discoveries have also been made at the Link Zone and Trafalgar North prospects.
At the Link Zone, mapping and vein sampling within the historic Golden Ridge adit has identified a significant new zone of high-grade gold mineralisation with underground grab sampling of mineralised veins in the adit recorded high-grade gold assays including 64.4 g/t gold, 37.6 g/t gold and 15.9 g/t gold.
At Trafalgar North, a high-grade gold vein zone has been discovered in trenching 250 m north of the historic Trafalgar mine with 17 out of 36 grab rock chip samples assayed over 10 g/t gold, including 99.4 g/t gold, 76.6 g/t gold and 67.1 g/t gold. Drilling at Trafalgar North commenced in July 2024.
Warrentinna Project
The Warrentinna project was acquired in 2023 from Greatland Gold plc (LSE:GGP). The project is located in northeast Tasmania and covers an area of approximately 37 sq km immediately adjacent to Flynn’s existing Lyndhurst Project. The tenement encompasses two historic goldfields, Forester and Warrentinna. Both fields produced high-grade gold deposits in the late 1800s and early 1900s. The Warrentinna goldfield is defined by numerous historic workings and largely untested prospects over a strike length of 6 kilometres.
Initial drilling by Flynn in September/October 2023 at Warrentinna consisted of two diamond drill holes, designed to test the continuity and extension of orogenic style gold mineralisation identified in historical drilling. The holes are also designed to provide stratigraphic and structural information critical to advancing understanding of the project.
Portland Project
The Portland gold project comprises three adjacent tenements: Portland, Telegraph and Cameron Tin. The project falls within the region mined historically from 1870 to 1917 and has similarities to Victorian geology with high-grade “Fosterville-style” gold mineralization confirmed. Geochemical surveys and costean sampling programs at Portland confirmed the presence of anomalous gold zones. Drilling at the Grand Flaneur prospect in 2022 and the Popes prospect in 2023 have both confirmed the presence of gold mineralization.
Northwest Tasmania
The company has two projects in the Northwest Tasmania region: the Firetower project and the Henty zinc project.
Firetower Project
The project was acquired in 2023 from Greatland Gold plc (LSE:GGP). The project spans more than 62 sq kms and represents an advanced gold plus battery metals project, which includes three notable prospects: Firetower, Firetower East and Firetower West. The Firetower project lies in the highly mineralized Mt Read volcanic sequence which hosts major polymetallic base metals and gold deposits such as Hellyer and Rosebery, copper-gold deposits such as Mt Lyell (3 million tons contained copper, 3.1 Moz contained gold), and the Henty gold mine (1.64 Moz gold @ 12.5 g/t gold).
Resampling of the historic core at Firetower has confirmed the significant potential for gold and critical minerals - cobalt, tungsten and copper. The results have made it clear this project represents an exciting polymetallic opportunity. The company completed a diamond drilling program in late 2023 to target both the gold and polymetallic minerals potential.
The drilling program was successful in testing for depth extensions of the main mineralised zone with the results demonstrating the continuity of polymetallic mineralisation and highlighting the significant potential for high-grade mineralisation to continue at depth and along strike.
Henty Zinc Project
The project is a 130 sq. km land holding under two 100 percent owned exploration licences and provides the company with a dominant position in a rich base metals field with proximity to an existing zinc/lead concentrate producer (MMG’s Rosebery mine).
The Henty Project has a significant pipeline of exploration targets with the Mariposa and Grieves Siding prospects ready for resource drilling
Western Australia
Flynn holds five gold-lithium projects in the resources-rich state of Western Australia, strategically located near large gold and lithium deposits or in regions that are relatively under-explored for lithium.
The five projects include: Mt. Dove and Yarrie in the Pilbara region; and Koolyanobbing, Forrestania and Lake Johnston in the Yilgarn.
Mt Dove Project
Located 70 kilometres south of Port Hedland in the Pilbara region, Mt Dove comprises four granted licences and one tenement application covering 190 sq. kms. The project is located near the large Hemi gold deposit (De Grey Mining, ASX:DEG) and the large lithium mines at Pilgangoora and Wodgina. The company has completed two soil sampling programs at Mt Dove, which have identified lithium and gold anomalies. The follow-up exploration, which is likely to include aircore drilling, intends to test lithium and gold anomalies identified during the soil sampling program completed in 2022 and 2023.
Yarrie Project
The Yarrie Project comprises two tenements and one application covering 385 sq. kms. Very limited historical exploration has been undertaken for lithium, gold and copper on the project. The project is highly prospective for iron ore, being close to historic mining operations and existing rail infrastructure.
Forrestania Project
The Forrestania project consists of one exploration licence and five exploration licence applications over a 320 sq km area. It is located near the Mt Holland lithium deposit (Wesfarmers (ASX:WES)/ SQM (NYSE:SQM) JV) and the high-grade nickel deposit at Flying Fox (IGO Limited (ASX:IGO)).
Results from the company’s auger soil sampling program, completed on E77/2915, outlined four high-priority lithium anomalies of up to 4,200 metres in length and 500 metres in width.Lake Johnston Project
Lake Johnston consists of three exploration licences over a 110 sq. km area, and is located near the recent Burmeister and Jaegermeister lithium discoveries of TG Metals (ASX:TG6)) and the Medcalf, Mount Gordon, Lake Percy and Mt Day Lithium projects.Koolyanobbing Project
Koolyanobbing comprises one exploration licence and two applications targeting gold and lithium mineralization over an 82 sq. km. area in the Marda-Diemals greenstone belt.
Parker Dome Project
In addition to the above-mentioned projects, Flynn has secured an option agreement to purchase two exploration licences at the Parker Dome project in Western Australia, which is considered highly prospective for lithium. The Parker Dome project covers 42 sq. kms. and is situated 50 kilometres north of the world-class Mount Holland lithium project in Western Australia.
Results from soil sampling have identified multiple, large-scale, high-priority lithium anomalies. The licences are fully permitted allowing for an immediate commencement of drilling.
Management Team
Clive Duncan – Non-executive Chair
Clive Duncan has over four decades of experience at big box hardware chain Bunnings, including as chief operating officer and company director. He has rich experience in corporate and business development, including mergers and acquisitions, business integrations, corporate government, strategy development and marketing. He has completed post-graduate studies at Harvard University and London Business School and is a member of the Australian Institute of Company Directors. He is a long-term significant shareholder of Flynn Gold’s predecessor companies.
Neil Marston – Chief Executive Officer and Managing Director
Neil Marston was appointed managing director in May 2023 and has been the company CEO since August 2022. He has more than 30 years of experience in the mining and minerals exploration sector and is a proven ASX-listed company leader, with a strong governance and corporate finance background. Previously, he held several senior roles including managing director at Bryah Resources (ASX:BYH) and Horseshoe Metals (ASX:HOR).
Sam Garrett – Technical Director
Sam Garrett has more than 30 years of exploration management, project assessment and operational experience with multinational and junior mining and exploration companies, including Phelps Dodge and Cyprus Gold. He has a background in copper and gold exploration with strong exposure to iron ore, base metals and specialist commodities. He is associated with discoveries at Mt Elliott (copper), Havieron (copper-gold), and Tujuh Bukit (gold). Moreover, he co-founded Flynn Gold and its predecessor Pacific Trends Resources.
John Forwood – Non-executive Director
John Forwood is a director and chief investment officer of Lowell Resources Funds Management (LRFM). He is qualified as a lawyer and geologist and has more than 20 years of resources financing experience, including with ASX-listed Lowell Resources Trust (ASX:LRT), as a director of RMB Resources, and as manager of Telluride Investment Trust.
Drilling Underway at Link Zone, Golden Ridge, NE Tasmania
Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to announce the recommencement of drilling activities at the Company’s 100%-owned Golden Ridge Project located in North-east Tasmania.
Highlights
- First ever diamond drilling commenced at the Link Zone gold prospect within the Golden Ridge Project in NE Tasmania, where the Company is targeting large-scale IRGS type gold mineralisation
- Two diamond drill holes planned, totalling 400m, testing for extensions to high-grade gold veins sampled in the historical Golden Ridge Adit between the Brilliant and Trafalgar prospects
- Previously reported underground sampling in the adit recorded high- grade gold assays including 64.4g/t Au, 37.6g/t Au and 15.9g/t Au
- Flynn Gold to receive up to $70,000 under the Tasmanian Government’s Exploration Drilling Grant Initiative (EDGI) to co-fund this drilling program
- For further information or to post questions go to the Flynn Gold Investor Hub at https://investorhub.flynngold.com.au/link/lyazve
This new drilling program will test beneath the historical Golden Ridge Adit, where recent underground sampling of veins recorded results of up to 64.4g/t gold1. The adit is located in the Link Zone prospect area, situated between the Brilliant and Trafalgar prospects at Golden Ridge.
Flynn Gold Managing Director and CEO, Neil Marston commented:
“We are delighted to have commenced our latest drilling program at the Golden Ridge Project in north-east Tasmania.
“This drilling program, which is co-funded under the State Government’s Exploration Drilling Grant Initiative, will see Flynn Gold drilling at the Link Zone beneath the historic Golden Ridge adit, where sampling of mineralised veins earlier this year yielded grades of up to 64 g/t gold.
“This diamond drill program is the first to test this adit, which lies between the historic Brilliant and Trafalgar mines – where we have successfully focused our drilling to date.”
Golden Ridge – Project Background
The Company’s flagship Golden Ridge Project is situated within EL17/2018 in North-east Tasmania (see Figure 1).
Figure 1 – Location of Flynn Gold tenements in NE Tasmania.
Exploration by the Company at Golden Ridge has identified extensive intrusive-related type gold mineralisation (IRGS) extending over a 9km-long zone along the southern contact margin of the Golden Ridge Granodiorite and enclosing meta-sediments (see Figure 2).
The Company’s ongoing work at Golden Ridge is continuing to identify and test multiple exploration targets, confirming the potential for a large-scale gold discovery.
Click here for the full ASX Release
This article includes content from Flynn Gold, 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.
September 2024 Quarterly Activities Report and Appendix 5B
Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to report on its activities for the quarter ending 30 September 2024.
Highlights
Exploration – Golden Ridge Project, NE Tasmania
- Multiple gold-bearing quartz veins successfully intercepted in diamond drilling at the new Trafalgar North vein zone discovery. Two drill holes completed at Trafalgar North, with best mineralised intercepts including:
TFDD019
- 4.8m @ 4.0g/t Au from 165.6m; including:
- 0.4m @ 17.9g/t Au from 166.9m, and
- 0.4m @ 24.0g/t Au from 170.0m
- 0.3m @ 25.1g/t Au from 440.5m
TFDD020
- 3.05m @ 4.9g/t Au from 53.1m including
- 0.35m @ 40.0g/t Au
- 2.7m @ 4.1g/t Au from 115.4m, including
- 0.35m @ 26.6g/t Au
- Gold mineralisation at Trafalgar North confirmed from surface to over 150m depth and open in all directions
- New in-situ gold vein system discovered during surface sampling and trenching programs at the Grenadier Prospect
- Flynn Gold to receive up to $140,000 to co-fund drilling under the Tasmanian Government’s Exploration Drilling Grant Initiative (EDGI)
Exploration – Other Projects, NE Tasmania
- New Exploration Licence Application submitted over 40km2 of highly prospective exploration tenure surrounding the historic Beaconsfield Gold Mine
- Exploration landholding in NE Tasmania reduced by 457km2 (30%) to approximately 1,020km2, reducing holding costs significantly
Corporate
- The Company’s cash position at 30 September 2024 was $1.83 million
- An At-The-Market Subscription Agreement signed with Dolphin Corporate Investments, providing Flynn with up to $2,000,000 of standby equity capital over the next three years
JOIN FLYNN GOLD’S INTERACTIVE INVESTOR HUB
to receive announcements and updates and to interact with the Company by asking questions or making comments which our team will respond to where possible
- For further information or to post questions go to the Flynn Gold Investor Hub at https://investorhub.flynngold.com.au/link/qy1Aly
Flynn is an Australian mineral exploration company with a portfolio of 100% owned exploration projects in Tasmania and Western Australia (see Figure 1).
The Company has eight 100% owned tenements in north-east Tasmania which are highly prospective for gold as well as tin/tungsten. The Company also holds the Henty zinc-lead-silver project on Tasmania’s mineral-rich west coast and the Firetower gold and battery metals project located in north-western Tasmania.
Flynn has also established a portfolio of gold-lithium exploration assets in the Pilbara and Yilgarn regions of Western Australia. In addition, Flynn holds a binding Option Agreement to acquire two exploration licences at Parker Dome (Forrestania), Western Australia.
Click here for the full ASX Release
This article includes content from Flynn Gold, 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.
New Gold Vein System Discovery at Grenadier Prospect, Golden Ridge, NE Tasmania
Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to announce the discovery of significant gold mineralised quartz veining at the new Grenadier Prospect at the Company’s flagship Golden Ridge Project, located in north-east Tasmania (see Figure 1).
- New in-situ gold vein system discovered during recent surface sampling and trenching programs at the Grenadier Prospect, within the Golden Ridge Project in NE Tasmania
- The gold vein system was discovered by Flynn’s exploration team following up gold-in-soil anomalies with 29 surface float and in-situ rock chip samples returning assay grades including 16.0g/t Au, 13.2g/t Au, 12.0g/t Au and 10.2g/t Au
- Assays from channel sampling of three initial trenches has confirmed in- situ quartz-sulphide veining, with significant mineralised intercepts including:
- 1.3m @ 6.6g/t Au, including 0.4m @ 17.7g/t Au (Trench 3)
- 1.0m @ 2.2g/t Au (Trench 2)
- 6.4m @ 1.3g/t Au, including 2.0m @ 3.0g/t Au (Trench 1)
- Trenching has exposed the vein hosted mineralisation over a 50 metres strike length (open) with follow-up trenching underway testing for strike extensions and parallel vein zones
- Significantly, there is no evidence of historical workings in the area
- These latest results continue to emphasise the increasing scale of the intrusive-related gold system at Golden Ridge, which has been delineated over a total length exceeding 9km
- For further information or to post questions to management, go to the Flynn Gold Investor Hub at:https://investorhub.flynngold.com.au/link/oPBqVr
Managing Director and CEO Neil Marston, commenting on the results, said:
“We are very pleased to report the discovery of gold mineralisation in quartz veins in trenches at our Grenadier prospect, which forms part of our Golden Ridge Project in north-east Tasmania.
“The trenches were excavated to test gold-in-soil anomalies delineated as part of our on-going regional soil sampling campaign. The gold mineralisation at Grenadier is coincident with the granodiorite-metasediment contact zone, which is the same contact that hosts the extensive Brilliant and Trafalgar vein systems located along strike to the east.
“These results continue to demonstrate the increasing scale of the intrusive-related gold system at Golden Ridge, as well as highlighting the effectiveness of soil sampling as a first- pass exploration tool for identifying gold mineralisation in this environment.
“Soil sampling coverage of the Golden Ridge Granodiorite and its contact zones is continuing to expand. Our aim is to generate further gold anomalies to target with follow-up trenching, sampling and drilling as we continue to define the broader extents of this large, high-grade gold system.”
Click here for the full ASX Release
This article includes content from Flynn Gold, 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.
Drilling Confirms New High-Grade Gold Zone at Golden Ridge, NE Tasmania
Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to report that high-grade gold mineralisation has been intersected in the first drilling program completed at the Trafalgar North vein zone which is situated within the Company’s 100% owned Golden Ridge Project located in Northeast Tasmania (Figure 1).
Highlights
- Multiple gold-bearing quartz veins successfully intercepted in diamond drilling at the new Trafalgar North vein zone discovery1
- Assay results have been received for two drill holes, TFDD019 and TFDD020, drilled at Trafalgar North.
- Best mineralised intercepts include:
- TFDD020
- 3.05m @ 4.9g/t Au from 53.1m including
- 0.35m @ 40.0g/t Au
- 2.7m @ 4.1g/t Au from 115.4m, including
- 0.35m @ 26.6g/t Au
- 3.05m @ 4.9g/t Au from 53.1m including
- TFDD019
- 4.8m @ 4.0g/t Au from 165.6m; including:
- 0.4m @ 17.9g/t Au from 166.9m, and
- 0.4m @ 24.0g/t Au from 170.0m
- 0.3m @ 25.1g/t Au from 440.5m
- 4.8m @ 4.0g/t Au from 165.6m; including:
- TFDD020
- Trafalgar North gold mineralisation confirmed to extend from surface to exceeding 150m depth and is open in all directions
- Gold mineralised veins now confirmed over a 500m wide zone along the granodiorite-hornfels contact at Trafalgar
- For further information or to post questions go to the Flynn Gold Investor Hub at https://investorhub.flynngold.com.au/link/lya02P
Flynn Gold Managing Director & CEO Neil Marston said:
“These are excellent early results from our on-going exploration at our flagship Golden Ridge project in NE Tasmania.
“Drilling has successfully intersected high-grade gold veins beneath the recently discovered trenching area at Trafalgar North and has confirmed our interpretation that this zone is continuous at depth and potentially is a parallel zone to the Trafalgar prospect mineralisation.
This new vein zone increases the mineralised footprint at Trafalgar from 300m to 500m width across the granodiorite/sedimentary contact and reinforces our view that this project has the potential to host large-scale gold mineralisation.”
Figure 1 - Location of Flynn Gold tenements in NE Tasmania.
Trafalgar Prospect – Phase 3 Drilling
Phase 3 drilling commenced at the Trafalgar prospect in mid-April 2024. The initially planned 1,500m diamond drill program comprised infill and extension drilling targeting down-dip and along-strike extensions to previously drilled high-grade gold intercepts.
During June 2024, a new zone of gold-mineralisation, approximately 250m north of the historic Trafalgar mine was discovered in surface trenches2. This new area at Trafalgar North had the potential to significantly increase the mineralised footprint of the Trafalgar prospect and therefore became the focus of drilling later in the campaign.
Figure 2 - Trafalgar Prospect Drill Hole Location Plan
Two diamond holes for 623m (TFDD019 and TFDD020) have been completed, testing beneath and along strike of mineralisation discovered in the trenches (see Figure 2).
Click here for the full ASX Release
This article includes content from Flynn Gold, 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.
Flynn Secures Strategic Addition to its Gold Portfolio in NE Tasmania with EL Application at Beaconsfield
Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to advise that it has submitted an Exploration Licence Application (EL13/2024) strategically located surrounding the historical Beaconsfield Gold Mine, located approximately 35km north- west of Launceston in North-East Tasmania (see Figure 1).
Highlights
- New FG1 Exploration Licence Application (EL13/2024) submitted over 40km2 of highly prospective exploration tenure surrounding the Beaconsfield Gold Mine lease in NE Tasmania
- Beaconsfield is the largest gold mine in NE Tasmania with historical production of 3.79Mt @ 14.5g/t Au for 1.77Moz Au1
- EL13/2024 covers brownfields targets with several known gold occurrences outside of the Mining Lease offering excellent discovery potential using modern exploration techniques
- Securing EL13/2024 aligns with Flynn’s strategy of targeting orogenic gold in NE Tasmania which is recognised as an extension of the prolific Victorian gold belts
- Once EL13/2024 is granted, data compilation and reconnaissance exploration programs will commence to identify priority targets
- Concurrently, Flynn has reduced by 30% (457km2) its existing land-holdings in NE Tasmania as its exploration activities focus on higher priority areas based on recent results
- For further information or to post questions go to the Flynn Gold Investor Hub at https://investorhub.flynngold.com.au/link/8r6A0e
The 40km2 Exploration Licence Application surrounds the privately held Mining Lease over the high-grade Beaconsfield Gold Mine and covers a prospective 12km corridor along the Cabbage Tree thrust block that contains numerous historic gold workings and prospects.
Flynn Gold Managing Director & CEO Neil Marston said:
“This is an important strategic addition to our extensive portfolio of high-quality gold exploration tenure in North-East Tasmania. The new Exploration Licence Application encompasses highly prospective ground covering the strike extensions to the Beaconsfield Gold Mine host sequence. This was the largest gold mine in North-East Tasmania with historical production of about 1.8 million ounces of gold when underground mining operations ceased at Beaconsfield in 2012.
“The acquisition complements our strategic focus on exploring for high-grade gold in North-East Tasmania, a recognized extension of the prolific Victorian goldfields.
“While the Mining Lease is excluded from our application, we believe there is significant potential for fresh gold discoveries to be made within the licence application area. Once the Exploration Licence is granted, we’ll compile and evaluate the historical information to generate targets before commencing field activities.”
Figure 1 - Location of Flynn Gold tenements in NE Tasmania.
About the Beaconsfield-Salisbury Goldfield
Alluvial gold was first discovered in the Beaconsfield-Salisbury area in 1869 and, in 1877, the cap of the Tasmania Reef (now known as the Beaconsfield Gold Mine) was discovered outcropping on Cabbage Tree Hill.
Gold production commenced almost immediately, and the mine operated continuously until 1914. The mine was reopened in more recent times, operating between 1999 and 2012, with the gold processing plant still largely intact within the Mining Lease. The historical production of 3.785Mt @ 14.51g/t Au (1,774koz Au) makes Beaconsfield the largest gold mine in NE Tasmania.
Figure 2 – Beaconsfield Tenement Location Map
The Tasmania Reef at the Beaconsfield Gold Mine is a Devonian aged structurally- controlled orogenic gold style quartz reef similar in type to gold deposits hosted in the Victorian orogenic belts. The reef is hosted by sediments located in the Cabbage Tree thrust block which is bound by the underlying and overlying Cabbage Tree and Cobblestone Creek Thrusts respectively (see Figure 2).
Concurrent with the early development of the Beaconsfield Gold Mine, several other small-scale mining and prospecting activities were undertaken throughout the wider goldfield, many of which are within Flynn’s licence application area, with upwards of 70 historical small-scale mines and prospects recorded over a 10km strike length. Most of these prospects are located within the same geological host rocks as the Beaconsfield deposit. Previous exploration outside of the Beaconsfield Gold Mine area was limited and many targets within Flynn’s Exploration Licence area remain poorly tested using modern techniques.
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This article includes content from Flynn Gold, 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.
Fed Cuts Rate in Post-Election Meeting, Gold and Silver Gain
Hot on the heels of Donald Trump’s victory in the US presidential election was an important meeting of the US Federal Reserve’s Federal Open Markets Committee (FOMC) on November 6 and 7.
At the meeting, the committee decided to lower the benchmark rate by 25 basis points to 4.5 to 4.75 percent. This marks the second cut by the FOMC, which made an outsized 50 point cut at its last meeting in September.
The rate cuts have come as inflation has cooled towards the 2 percent target set by the Fed when it first began raising interest rates in February 2022. While the personal consumption expenditure index for September had fallen to an overall 2.1 percent increase year-over-year, the committee was still concerned about some stickiness, as the PCE less food and energy prices was up 2.7 percent.
A key factor influencing the Federal Reserve's decision is the current state of the jobs market, which has stabilized significantly. Labor market conditions are now less constrained than they were before the pandemic in 2019, reducing its contribution to inflationary pressures. As a result, the central bank has been able to shift its focus within its dual mandate of promoting maximum employment and maintaining stable prices.
In his statement following the decision, Federal Reserve Chairman Jerome Powell suggested that while he thinks the economy and policy are in a very good position, there is still some uncertainty. He said the data would inform future rate decisions, and the FOMC would react appropriately.
“We know that reducing policy restraint too quickly could hinder progress on inflation. At the same time, reducing policy restraint too slowly could unduly weaken economic activity and employment,” Powell said. “We are not on any preset course. We will continue to make our decisions meeting by meeting.”
The election results bore little influence over the decision at the November meeting. When asked how election results may affect future rate decisions, Chairman Powell suggested there would be no influence in the short term.
“We don’t know what the timing and substance of any policy changes will be,” he said. “We therefore don’t know what the effects on the economy would be, specifically whether and to what extent those policies would matter for the achievement of our goal variables of maximum employment and stable prices.”
While commenting on the longer-term implications of a Trump presidency, Powell was neutral in his remarks, saying any government could implement policies that could have economic effects that would matter over time. Powell said the Fed would take those factors into account in future modelling.
When asked if he was concerned that Trump’s incoming administration would ask him to step down as Chairman of the Federal Reserve, Powell answered “no.” He also said he would not step down before his term ends in 2026. Even though the President is responsible for appointing the Chairman of the central bank, terms are fixed at four years and cannot be overridden.
Market reaction to the rate cut decision boosted gold, which climbed by 1.84 percent since markets opened to US$2,707.93 by 3:30 PM EST, while silver surged 3.12 percent to US$32.12.
Equity markets saw slight gains as of that time, with the S&P 500 (INDEXSP:INX) gaining 0.84 percent to 5,978.81, the Nasdaq 100 (INDEXNASDAQ:NDX) adding 1.66 percent to 21,123.64 and the Dow Jones Industrial Average (INDEXDJX:.DJI) increasing 0.15 percent to reach 43,793.06.
How Trump's policy promises could affect inflation
While Powell did not address Trump's proposed policies in his statement, if president elect Donald Trump does enact some of the policies he promised frequently in his campaign, it may increase deficit spending and cause further inflation, which could influence future interest rate decisions.
For example, his proposed changes would see tariffs applied broadly to goods entering the United States, which will make everyday goods more costly for Americans. This is because tariffs are paid by importers in the US when they purchase goods from overseas, and the cost increases are passed along to the consumers.
Likewise, sweeping border reform with the promise to deport 20 million undocumented migrants would cost US$88 billion a year to enforce. The impact would be felt by business owners who are already struggling to fill job openings, especially in the agricultural sector. This will likely lead to higher costs at the grocery store or reduced availability of produce.
Additionally, the loss of undocumented workers would see US$100 billion per year in lost tax revenue, requiring the government to increase deficits to pay for government programs.
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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Newmont Files Early Warning Report
Pursuant to the Transaction, the Vendor sold 14,674,056 common shares of Azucar (" Azucar Shares "), representing approximately 19.9% of the issued and outstanding Azucar Shares as of the date of the Share Purchase Agreement. Accordingly, the disposition of the Vendor's Azucar Shares represents a decrease in Newmont's ownership from approximately 19.9% to 0% of the issued and outstanding Azucar Shares.
The Vendor's Azucar Shares were sold in reliance on the "private agreement exemption" in Section 4.2 of National Instrument 62-104 Take-Over Bids and Issuer Bids (" NI 62-104 "). In particular, the purchase of the Azucar Shares was made from not more than 5 persons in the aggregate, the bid was not made generally to security holders of the class of securities that was the subject of the bid, and the value of the consideration paid by the Purchasers for the Azucar Shares, including brokerage fees and commissions, was not greater than 115% of the market price of the Azucar Shares at the date of the bid as determined in accordance with section 1.11 of NI 62-104.
This press release is issued pursuant to the early warning provisions of Canadian securities legislation. To obtain a copy of the Early Warning Report filed by Newmont under National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues , please contact Neil Backhouse at +1 (303) 837-5002 or investor.relations@newmont.com . A copy of the Early Warning Report to be filed by Almadex in connection with the transactions described above will be available on the Almadex's SEDAR+ profile at www.sedarplus.ca .
Newmont's address is 6900 E Layton Avenue, Suite 700, Denver, CO 80237.
About Newmont
Newmont is the world's leading gold company and a producer of copper, zinc, lead, and silver. The Company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.
At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont's sustainability strategy and initiatives, go to www.newmont.com .
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Investor Contact – Global
Neil Backhouse
investor.relations@newmont.com
Media Contact – Global
Jennifer Pakradooni
globalcommunications@newmont.com
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Wheaton Precious Metals Announces Third Quarter 2024 Results and Record Quarterly Operating Cash Flow
Designated News Release
THIRD QUARTER FINANCIAL RESULTS
"Wheaton achieved record cash flow from operations in the third quarter of 2024, underscoring the effectiveness of our business model in leveraging rising commodity prices, with our cash operating margins increasing by over 30% relative to the third quarter of 2023. Our portfolio of operating assets delivered solid production levels, continuing to support our annual production guidance range for 2024 of 550,000 to 620,000 gold equivalent ounces," said Randy Smallwood, President and CEO of Wheaton Precious Metals. "Shortly following the quarter, Wheaton announced two accretive, precious metals streaming agreements, including a new stream on Montage's Koné Project and an amendment to the existing stream on Rio2's Fenix Project. Together, these transactions further diversify our strategic partnerships and the geography of our portfolio. Once ramped-up, the Koné Project is forecast to contribute meaningful near-term production, reinforcing Wheaton's already prominent position as a leader in the sector's growth landscape."
Solid Financial Results and Strong Balance Sheet
- Third quarter of 2024: $308 million in revenue, $254 million in operating cash flow, $155 million in net earnings and $153 million in adjusted net earnings 1 , and declared a quarterly dividend 1 of $0.155 per common share.
- Balance Sheet: cash balance of $694 million , no debt, and an undrawn $2 billion revolving credit facility as at September 30, 2024 after making total upfront cash payments of $30 million relative to mineral stream and royalty interests in the quarter.
High Quality Asset Base
- Streaming and royalty agreements on 18 operating mines and 28 development projects 5 , including the addition of the Koné project announced subsequent to the quarter.
- 93% of attributable production from assets in the lowest half of their respective cost curves 2,4 .
- Attributable gold equivalent production 3 ("GEOs") of 144,200 ounces in the third quarter of 2024 and 448,400 for the first nine months of 2024, with quarterly production consistent with the comparable period of the prior year, as lower production from Salobo and Constancia was largely offset by higher production from Peñasquito.
- Average annual forecast production guidance for 2024 of 550,000 to 620,000 GEOs 3 maintained, with forecasted sector-leading growth to over 800,000 GEOs 3 by 2028, and average annual forecast attributable production growing to over 850,000 GEOs 3 in years 2029 to 2033.
- Further de-risked forecast growth profile as construction activities advanced at the Blackwater, Goose, Platreef, and Mineral Park projects, all of which are expected to be producing within the next 12 months.
- Subsequent to the quarter, the Company announced two accretive precious metals streaming agreements:
- On October 23, 2024 , the Company entered into a precious metals purchase agreement ("PMPA") with Montage Gold Corp. in respect to the Koné Gold Project located in Côte d'Ivoire.
- On October 21, 2024 , the Company amended the Fenix PMPA, increasing the amount of attributable gold it is entitled to under the contract.
Leadership in Sustainability
- Top Rankings: One of the top-rated companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS.
- Launch of inaugural Future of Mining Challenge, which will award US$1 million to a winning venture to advance their technology aimed at minimizing environmental impacts, improving efficiencies, and contributing to climate solutions, while ensuring key resources are responsibly available for future generations.
Operational Overview
(all figures in US dollars unless otherwise noted) | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | |||||||||||
Units produced | |||||||||||||||||
Gold ounces | 87,199 | 105,027 | (17.0) % | 262,698 | 261,226 | 0.6 % | |||||||||||
Silver ounces | 4,554 | 3,397 | 34.1 % | 15,083 | 12,985 | 16.2 % | |||||||||||
Palladium ounces | 4,034 | 4,006 | 0.7 % | 12,835 | 11,591 | 10.7 % | |||||||||||
Cobalt pounds | 397 | 183 | 117.6 % | 896 | 458 | 95.5 % | |||||||||||
Gold equivalent ounces 3 | 144,164 | 147,278 | (2.1) % | 448,388 | 419,330 | 6.9 % | |||||||||||
Units sold | |||||||||||||||||
Gold ounces | 75,694 | 74,426 | 1.7 % | 245,039 | 212,325 | 15.4 % | |||||||||||
Silver ounces | 3,875 | 2,965 | 30.7 % | 11,765 | 11,151 | 5.5 % | |||||||||||
Palladium ounces | 3,761 | 4,242 | (11.3) % | 12,836 | 10,580 | 21.3 % | |||||||||||
Cobalt pounds | 88 | 198 | (55.6) % | 485 | 786 | (38.3) % | |||||||||||
Gold equivalent ounces 3 | 122,715 | 111,935 | 9.6 % | 389,907 | 350,961 | 11.1 % | |||||||||||
Change in PBND and Inventory | |||||||||||||||||
Gold equivalent ounces 3 | 9,267 | 21,869 | 12.602 | 17,989 | 20,020 | 2,031 | |||||||||||
Revenue | $ | 308,253 | $ | 223,137 | 38.1 % | $ | 904,123 | $ | 702,573 | 28.7 % | |||||||
Net earnings | $ | 154,635 | $ | 116,371 | 32.9 % | $ | 440,993 | $ | 369,209 | 19.4 % | |||||||
Per share | $ | 0.341 | $ | 0.257 | 32.7 % | $ | 0.973 | $ | 0.815 | 19.4 % | |||||||
Adjusted net earnings 1 | $ | 152,803 | $ | 121,467 | 25.8 % | $ | 441,201 | $ | 368,481 | 19.7 % | |||||||
Per share 1 | $ | 0.337 | $ | 0.268 | 25.7 % | $ | 0.973 | $ | 0.814 | 19.5 % | |||||||
Operating cash flows | $ | 254,337 | $ | 171,103 | 48.6 % | $ | 708,110 | $ | 508,584 | 39.2 % | |||||||
Per share 1 | $ | 0.561 | $ | 0.378 | 48.4 % | $ | 1.562 | $ | 1.123 | 39.1 % |
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts. |
Financial Review
Revenues
Revenue in the third quarter of 2024 was $308 million (61% gold, 37% silver, 1% palladium and 1% cobalt), with the $85 million increase relative to the prior period quarter being primarily due to a 26% increase in the average realized gold equivalent³ price; and a 10% increase in the number of GEOs³ sold.
Revenue was $904 million in the nine months ended September 30, 2024 , representing a $202 million increase from the comparable period of the previous year due primarily to a 16% increase in the average realized gold equivalent³ price; and an 11% increase in the number of GEOs³ sold.
Cash Costs and Margin
Average cash costs¹ in the third quarter of 2024 were $437 per GEO³ as compared to $445 in the third quarter of 2023. This resulted in a cash operating margin¹ of $2,075 per GEO³ sold, an increase of 34% as compared with the third quarter of 2023, a result of the higher realized price per ounce coupled with the lower average cash costs due to changes in the sales mix.
Average cash costs¹ for the nine months ended September 30, 2024 were $434 per GEO³ as compared to $457 in the comparable period of the previous year. This resulted in a cash operating margin¹ of $1,885 per GEO³ sold, a 22% increase from comparable period of the previous year.
Cash Flow from Operations
Operating cash flow in the third quarter of 2024 amounted to $254 million , with the $83 million increase due primarily to the higher gross margin.
Operating cash flows for the nine months ended September 30, 2024 amounted to $708 million , with the $200 million increase from the comparable period of the previous year being due primarily to the higher gross margin.
Balance Sheet (at September 30, 2024 )
- Approximately $694 million of cash on hand
- During the third quarter of 2024, the Company made total upfront cash payments of $30 million relative to the mineral stream and royalty interests consisting of:
- $25 million relative to the Mineral Park PMPA; and
- $5 million relative to the DeLamar Royalty.
- With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility, the Company believes it is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.
Global Minimum Tax
The Company is within the scope of global minimum tax ("GMT") under the OECD Pillar Two model rules ("Pillar Two"), under which large multinational entities are subject to a 15% GMT. On June 20, 2024 , Canada's Global Minimum Tax Act ("GMTA"), received royal assent. The GMTA enacts the OECD Pillar Two model rules where in scope companies are subject to a 15% GMT for fiscal years commencing on or after December 31, 2023 . With the enactment of the GMTA on June 20, 2024 , the income of the Company's subsidiaries which operate in jurisdictions with a statutory tax rate of 0% are subject to the GMTA. For the three months ended September 30, 2024 an amount of $28 million current tax expense associated with GMT was recorded (nine months - $78 million ). GMT accrued to December 31, 2024 , is payable on or before June 30, 2026 (18 months following year-end).
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2024, Salobo produced 62,700 ounces of attributable gold, a decrease of approximately 9% relative to the third quarter of 2023, primarily due to lower grades, partially offset by higher throughput. On July 25, 2024 , Vale S.A. ("Vale") reported that the Salobo III processing plant operations resumed in July, after being halted for 31 days due to a fire on a conveyor belt. Vale confirmed that 2024 copper production guidance of 320-355 kt has been maintained.
Antamina : In the third quarter of 2024, Antamina produced 0.9 million ounces of attributable silver, an increase of approximately 3% relative to the third quarter of 2023 primarily due to higher recoveries, partially offset by lower throughput.
Peñasquito : In the third quarter of 2024, Peñasquito produced 1.8 million ounces of attributable silver, with Peñasquito producing no ounces in the third quarter of 2023 as a result of a labour strike which lasted from June 7 to October 13, 2023 .
Constancia : In the third quarter of 2024, Constancia produced 0.6 million ounces of attributable silver and 10,400 ounces of attributable gold, a decrease of approximately 7% and 45%, respectively, relative to the third quarter of 2023. The decrease in silver production was primarily due to lower recoveries. The decrease in gold production was primarily the result of lower gold grades due largely to the planned stripping activity in the Pampacancha pit, which commenced in the second quarter, and continued throughout the third quarter. On August 13, 2024 , Hudbay Minerals Inc. ("Hudbay") reported that the stripping program for the next mining phase at Pampacancha was underway and expected to lead to significantly higher copper and gold grades in the fourth quarter of 2024.
Sudbury : In the third quarter of 2024, Vale's Sudbury mines produced 4,300 ounces of attributable gold, an increase of approximately 11% relative to the third quarter of 2023, due to higher throughput.
Stillwater : In the third quarter of 2024, the Stillwater mines produced 2,200 ounces of attributable gold and 4,000 ounces of attributable palladium, a decrease of approximately 8% for gold relative to the third quarter of 2023, due primarily to lower recoveries, while palladium production was virtually unchanged. On September 12, 2024 , Sibanye Stillwater ("Sibanye") announced that as a result of low palladium prices it was placing the Stillwater West operations into care and maintenance, while Stillwater East and East Boulder operations continue to operate. Sibanye reports that Stillwater West could return to production as prices permit. Based on Sibanye's Q3 MD&A, the Company's management estimates that with the Stillwater West operations in care and maintenance, 2025 production relative to the Stillwater PMPA will be approximately 40% to 45% lower than historical levels.
Voisey's Bay: In the third quarter of 2024, the Voisey's Bay mine produced 397,000 pounds of attributable cobalt, an increase of approximately 118% relative to the third quarter of 2023, as the transitional period between the depletion of the Ovoid open-pit and ramp-up to full production of the Voisey's Bay underground mine nears completion. Vale reported that physical completion of the Voisey's Bay underground mine extension was 99% at the end of the third quarter, with all surface construction completed and the commissioning of the Reid Brook power plant remaining. In the Eastern Deeps Mine, the Bulk Material Handling system achieved mechanical completion in early October and Vale indicated that the focus is now on commissioning, with handover to Operations within 2024. Demobilization efforts are ongoing, with Surface contractors already fully demobilized.
Other Silver: In the third quarter of 2024, total Other Silver attributable production was 1.2 million ounces, a decrease of approximately 34% relative to the third quarter of 2023. The decrease from the comparable period of the prior year is primarily due to the temporary suspension of attributable ore mined at Aljustrel commencing September 24, 2023 .
Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton's consolidated MD&A in the 'Results of Operations and Operational Review' section.
Recent Development Asset Updates
Blackwater Project: On November 6, 2024 , Artemis Gold Inc., ("Artemis") announced that overall construction was over 95% complete as of September 30, 2024 and first gold pour is targeted for late Q4 2024. Construction of the tailings storage facility is ready to allow for the commencement of commissioning of the plant. Artemis reported that the initial mining fleet has been commissioned and pre-stripping of the mine, as well as the construction of haul roads are well advanced.
Platreef Project: On October 30, 2024 , Ivanhoe Mines ("Ivanhoe") reported that construction of the Phase 1 concentrator was completed on schedule early in the third quarter. First ore is scheduled for the second half of 2025, while underground development prioritizes development to accelerate Phase 2. Ivanhoe also states that work continues on the updated feasibility study to accelerate the startup of Phase 2, as well as the preliminary economic assessment of the previously announced Phase 3 expansion to 10 Mtpa processing capacity. Both studies are now expected to be published in Q1 2025.
Goose Project: On November 6 2024, B2Gold Corp. ("B2Gold") announced that all planned construction year to date in 2024 has been completed. Project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025, followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024 , with ten ships and one barge having unloaded 123,000 cubic meters of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road campaign.
Marmato Mine: On July 16, 2024 , Aris Mining Corporation ("Aris") reported that the Lower Mine project is on track for first gold pour by the end of 2025, followed by an approximate six-month ramp-up period. On October 7, 2024 , Aris provided an update that the Marmato Lower Mine expansion is progressing on schedule, with the site access road and portal face now complete and the contractor preparing to initiate work on the twin declines. Both the SAG and ball mill fabrication are progressing on schedule for completion before the end of 2024.
Curipamba Project: On July 31, 2024 , Silvercorp Metals Inc. ("Silvercorp") completed the previously announced acquisition of all of the issued and outstanding common shares of Adventus Mining Corporation. Under the terms of the Curipamba PMPA, within 30 days of a change of control, Silvercorp had a one-time option to repurchase 33% of the gold and silver stream which expired unexercised.
Marathon Project : On July 31, 2024 , Generation Mining Limited ("Gen Mining") reported that the federal government has approved amendments to Schedule 2 of the Metal and Diamond Mining Effluent Regulations ("Schedule 2") which will allow for the construction of specific water management structures and operation of key infrastructure for the Marathon Project. On August 7, 2024 , Gen Mining announced a key milestone with the receipt of the Fisheries Act Authorization for the Marathon project. Gen Mining also states that receipt of the few remaining provincial and federal approvals and permits required for construction is expected in the coming months. Following which, the Marathon project will have all of the key government permits and approvals required for construction.
Santo Domingo : On July 31, 2024 , Capstone Copper Corp. ("Capstone") published the results of an updated feasibility study for the Santo Domingo project, outlining an optimized mine plan, updated capital and operating cost estimates, and a 19-year mine life supported by higher mineral reserve estimates. The report indicates that total gold production is expected to average 35,000 ounces per year for the first seven years of production, an increase from the 30,000 ounces per year estimate outlined in the 2020 feasibility study, and 22,000 ounces per year for the life of mine, up from 17,000 ounces per year. Capstone has reported that with construction completed at the Mantoverde project, a deposit situated 35 kilometers northeast of the Santo Domingo project, Capstone plans to advance several value enhancement initiatives within the Mantoverde-Santo Domingo district that are not yet included in the 2024 feasibility study. The first of these initiatives is a newly announced two-year, $25 million exploration program at Mantoverde, aimed at supporting the two future processing centers between Mantoverde and Santo Domingo .
Curraghinalt Project: On May 3, 2024 , the Planning Appeals Commission & Water Appeals Commission (the "Commission") in Northern Ireland concluded that the water abstraction and impoundment licenses ("Water Licenses") relative to the Curraghinalt Project have been rescinded and that license applications would need to be resubmitted, and subsequent public inquiry referrals held. Dalradian has re-submitted two new applications for the abstraction licenses and those licenses were received by the Commission on September 5, 2024 . The Commission has set new dates to resume the public inquiry process beginning January 13 , 2025.
Fenix Project: On October 2, 2024 , Rio2 Limited ("Rio2") announced that its Chilean subsidiary has received the principal Sectorial Permits it requires to begin construction at the Fenix project. These Sectorial Permits represent the last governmental authorization required to enable the start of the construction phase and subsequent operation of the Fenix mine.
Copper World Project: On August 29, 2024 , Hudbay announced that it has received an Aquifer Protection Permit for the Copper World project from the Arizona Department of Environmental Quality. The issuance of this permit is a key milestone in the advancement of Copper World. The last key state-level permit is the Air Quality Permit which is progressing as planned.
Corporate Development
Koné Gold Project
On October 23, 2024 , the Company entered into a PMPA (the "Koné Gold PMPA") with Montage Gold Corp. ("Montage") in respect of its 90% owned Koné Gold Project located in Côte d'Ivoire. Under the terms of the agreement, Wheaton will purchase 19.5% of the payable gold production until 400,000 ounces of gold have been delivered (subject to adjustment if there are delays in deliveries relative to an agreed schedule), 10.8% of the gold production until the delivery of a further 130,000 ounces and 5.4% gold production thereafter for the life of mine. Under the terms of the Koné Gold PMPA, the Company is committed to pay Montage total upfront cash payments of $625 million , payable in four equal installment payments during construction, subject to certain conditions, including that all permits have been obtained.
In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 20% of the spot gold price. For the first five years after the PMPA is signed, there will be a price adjustment mechanism in place if the spot price of gold is less than $2,100 per ounce or greater than $2,700 per ounce.
The Company has also provided Montage with a secured debt facility of up to $75 million (the "Facility").
Amendment to the Fenix PMPA
On November 15, 2021 , the Company acquired a gold stream in respect of gold production from the Fenix Project (the "Fenix PMPA"). Under the terms of the Fenix PMPA, the Company was to acquire an amount of gold equal to 6% of the gold production until 90,000 ounces have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces and 3.5% gold production thereafter for the life of mine.
On October 21, 2024 , the Company amended the Fenix PMPA. Under the terms of the amended agreement, the Company is entitled to purchase an additional 16% of payable gold production (22% in total, subject to adjustment if there are delays in deliveries relative to an agreed schedule). Once Rio2 delivers the incremental 95,000 ounces (as adjusted), the stream reverts to the percentages and thresholds under the original Fenix PMPA (as described above). Rio2 has a one-time option to terminate the requirement to deliver the additional gold production from the end of 2027 until the end of 2029 by delivering 95,000 ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces which would have been delivered under the original Fenix PMPA. Finally, the Company has also agreed to adjust the production payment for all gold ounces delivered to 20% of the spot gold price. In exchange for the amendment, the Company is committed to pay additional upfront cash consideration of $100 million , payable in two equal installments, subject to various customary conditions being satisfied.
Wheaton will also provide a $20 million contingent secured debt facility in the form of a standby loan facility. Lastly, Wheaton has committed to participate in a private placement of Rio2 common shares for Cdn$5 million at a price per share equal to, and concurrent with, a public offering by Rio2.
Sustainability
Future of Mining Challenge
On September 16, 2024 , Wheaton announced the launch of the inaugural Future of Mining Challenge, which will award US$1 million to a winning venture to advance their technology. The Future of Mining Challenge invites cleantech ventures from around the world to submit and propose industry solutions. This year's challenge focuses on identifying eligible technologies with the potential to reduce greenhouse gas emissions across mining operations. In alignment with Wheaton's business model, the solutions should be applicable to base and/or precious metal mining. They should also be scalable globally, with the aim of future implementation at operating mines. The challenge is being supported by Foresight Canada. Submissions for challenge applications opened in September 2024 , and the winner will be announced in March 2025 at the PDAC Convention in Toronto , the world's largest mining conference. More information can be found at www.futureofmining.ca .
Community Investment Program
- Wheaton's Partner Community Investment Program continues to support initiatives with the Vale Foundation, Vale Canada, Glencore via Antamina, Hudbay Minerals, First Majestic Silver and Sibanye-Stillwater to support the communities influenced by the mines and provide vital services and programs including educational resources, health and dental programs, poverty reduction initiatives, entrepreneurial opportunities, and various social and environmental programs.
- In August 2024 , the BC Cancer Foundation's Tour de Cure presented by Wheaton raised C$7.3 million to advance groundbreaking cancer research and care enhancements in British Columbia .
2024 and Long-Term Production Outlook
Wheaton's estimated attributable production in 2024 is forecast to be 325,000 to 370,000 ounces of gold, 18.5 to 20.5 million ounces of silver, and 12,000 to 15,000 GEOs 3 of other metals, resulting in annual production of approximately 550,000 to 620,000 GEOs 3 , unchanged from previous guidance 2,3 .
Annual production is forecast to increase by approximately 40% to over 800,000 GEOs 3 by 2028, with average annual production forecast to grow to over 850,000 GEO 3 in years 2029 to 2033, also unchanged from previous guidance 6 . The transactions announced in 2024, including the new stream associated with the Koné Project and the amendment related to the Fenix Project, have not been incorporated into the long-term guidance.
The Company will provide updated longer-term guidance in normal course in the first quarter of 2025, which will incorporate the impact of recent developments and the acquisitions announced in 2024. 2,3
About Wheaton Precious Metals Corp.
Wheaton is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable value through streaming for all of its stakeholders.
In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and Financial Statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries.
Webcast and Conference Call Details
A conference call will be held on Friday, November 8, 2024 , starting at 11:00 am ET ( 8:00 am PT ) to discuss these results. To participate in the live call, please use one of the following methods:
RapidConnect URL: Click here
Live webcast: Click here
Dial toll free: 1-888-510-2154 or 1-437-900-0527
Conference Call ID: 48142
The accompanying slideshow will also be available in PDF format on the 'Presentations' page of the Wheaton Precious Metals website before the conference call. The conference call will be recorded and available until November 15, 2024 at 11:59 pm ET . The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-289-819-1450
Dial from outside Canada or the US: 1-888-660-6345
Pass code: 48142
Archived webcast: Click here
This earnings release should be read in conjunction with Wheaton Precious Metals' MD&A and Financial Statements, which are available on the Company's website at www.wheatonpm.com and have been posted on SEDAR+ at www.sedarplus.ca .
Mr. Wes Carson , P.Eng., Vice President, Mining Operations, Neil Burns , P.Geo., Vice President, Technical Services for Wheaton Precious Metals and Ryan Ulansky , P.Eng., Vice President, Engineering, are a "qualified person" as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release (specifically Mr. Carson has reviewed production figures, Mr. Burns has reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral reserve estimates).
Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx .
Condensed Interim Consolidated Statements of Earnings
Three Months Ended | Nine Months Ended | |||||||||||
(US dollars and shares in thousands, except per share amounts - unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||
Sales | $ | 308,253 | $ | 223,137 | $ | 904,123 | $ | 702,573 | ||||
Cost of sales | ||||||||||||
Cost of sales, excluding depletion | $ | 55,310 | $ | 49,808 | $ | 170,872 | $ | 160,413 | ||||
Depletion | 55,530 | 46,435 | 178,071 | 145,908 | ||||||||
Total cost of sales | $ | 110,840 | $ | 96,243 | $ | 348,943 | $ | 306,321 | ||||
Gross margin | $ | 197,413 | $ | 126,894 | $ | 555,180 | $ | 396,252 | ||||
General and administrative expenses | 9,488 | 8,606 | 30,193 | 28,922 | ||||||||
Share based compensation | 9,628 | 4,336 | 17,150 | 16,217 | ||||||||
Donations and community investments | 2,352 | 1,736 | 4,626 | 5,054 | ||||||||
Earnings from operations | $ | 175,945 | $ | 112,216 | $ | 503,211 | $ | 346,059 | ||||
Gain on disposal of mineral stream interests | - | - | - | 5,027 | ||||||||
Other income (expense) | 7,605 | 10,707 | 19,922 | 26,961 | ||||||||
Earnings before finance costs and income taxes | $ | 183,550 | $ | 122,923 | $ | 523,133 | $ | 378,047 | ||||
Finance costs | 1,404 | 1,407 | 4,144 | 4,138 | ||||||||
Earnings before income taxes | $ | 182,146 | $ | 121,516 | $ | 518,989 | $ | 373,909 | ||||
Income tax expense | 27,511 | 5,145 | 77,996 | 4,700 | ||||||||
Net earnings | $ | 154,635 | $ | 116,371 | $ | 440,993 | $ | 369,209 | ||||
Basic earnings per share | $ | 0.341 | $ | 0.257 | $ | 0.973 | $ | 0.815 | ||||
Diluted earnings per share | $ | 0.340 | $ | 0.257 | $ | 0.971 | $ | 0.814 | ||||
Weighted average number of shares outstanding | ||||||||||||
Basic | 453,641 | 452,975 | 453,389 | 452,748 | ||||||||
Diluted | 454,302 | 453,538 | 454,037 | 453,419 |
Condensed Interim Consolidated Balance Sheets
As at | As at | |||
(US dollars in thousands - unaudited) | 2024 | 2023 | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 694,085 | $ | 546,527 |
Accounts receivable | 10,435 | 10,078 | ||
Cobalt inventory | - | 1,372 | ||
Income taxes receivable | 1,392 | 5,935 | ||
Other | 3,938 | 3,499 | ||
Total current assets | $ | 709,850 | $ | 567,411 |
Non-current assets | ||||
Mineral stream interests | $ | 6,456,123 | $ | 6,122,441 |
Early deposit mineral stream interests | 47,094 | 47,093 | ||
Mineral royalty interests | 40,429 | 13,454 | ||
Long-term equity investments | 103,068 | 246,678 | ||
Property, plant and equipment | 7,535 | 7,638 | ||
Other | 22,080 | 26,470 | ||
Total non-current assets | $ | 6,676,329 | $ | 6,463,774 |
Total assets | $ | 7,386,179 | $ | 7,031,185 |
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | $ | 14,766 | $ | 13,458 |
Current portion of performance share units | 12,522 | 12,013 | ||
Current portion of lease liabilities | 324 | 604 | ||
Total current liabilities | $ | 27,612 | $ | 26,075 |
Non-current liabilities | ||||
Performance share units | $ | 9,301 | $ | 9,113 |
Lease liabilities | 5,340 | 5,625 | ||
Global minimum tax | 78,361 | - | ||
Deferred income taxes | 264 | 232 | ||
Pension liability | 5,287 | 4,624 | ||
Total non-current liabilities | $ | 98,553 | $ | 19,594 |
Total liabilities | $ | 126,165 | $ | 45,669 |
Shareholders' equity | ||||
Issued capital | $ | 3,797,558 | $ | 3,777,323 |
Reserves | (44,489) | (40,091) | ||
Retained earnings | 3,506,945 | 3,248,284 | ||
Total shareholders' equity | $ | 7,260,014 | $ | 6,985,516 |
Total liabilities and shareholders' equity | $ | 7,386,179 | $ | 7,031,185 |
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended | Nine Months Ended | ||||||||
(US dollars in thousands - unaudited) | 2024 | 2023 | 2024 | 2023 | |||||
Operating activities | |||||||||
Net earnings | $ | 154,635 | $ | 116,371 | $ | 440,993 | $ | 369,209 | |
Adjustments for | |||||||||
Depreciation and depletion | 55,887 | 46,784 | 179,111 | 147,031 | |||||
Gain on disposal of mineral stream interest | - | - | - | (5,027) | |||||
Interest expense | 71 | 78 | 216 | 131 | |||||
Equity settled stock based compensation | 1,725 | 1,732 | 4,978 | 5,133 | |||||
Performance share units - expense | 7,903 | 2,604 | 12,172 | 11,084 | |||||
Performance share units - paid | - | - | (11,129) | (16,675) | |||||
Pension expense | 336 | 329 | 794 | 787 | |||||
Pension paid | - | - | (43) | (116) | |||||
Income tax (recovery) expense | 27,511 | 5,145 | 77,996 | 4,700 | |||||
(Gain) loss on fair value adjustment of share purchase warrants held | (523) | 143 | (903) | 248 | |||||
Investment income recognized in net earnings | (7,249) | (10,537) | (18,564) | (26,564) | |||||
Other | 2,246 | 163 | 2,646 | 662 | |||||
Change in non-cash working capital | 2,837 | (489) | 1,329 | (876) | |||||
Cash generated from operations before income taxes and interest | $ | 245,379 | $ | 162,323 | $ | 689,596 | $ | 489,727 | |
Income taxes paid | 2,925 | (912) | 2,734 | (5,244) | |||||
Interest paid | (71) | (79) | (219) | (112) | |||||
Interest received | 6,104 | 9,771 | 15,999 | 24,213 | |||||
Cash generated from operating activities | $ | 254,337 | $ | 171,103 | $ | 708,110 | $ | 508,584 | |
Financing activities | |||||||||
Credit facility extension fees | $ | (11) | $ | (13) | $ | (936) | $ | (859) | |
Share purchase options exercised | 847 | 93 | 13,011 | 10,603 | |||||
Lease payments | (149) | (169) | (444) | (548) | |||||
Dividends paid | (69,984) | (66,994) | (209,108) | (198,085) | |||||
Cash used for financing activities | $ | (69,297) | $ | (67,083) | $ | (197,477) | $ | (188,889) | |
Investing activities | |||||||||
Mineral stream interests | $ | (25,876) | $ | (90,710) | $ | (512,383) | $ | (210,944) | |
Early deposit mineral stream interests | - | (250) | - | (1,000) | |||||
Mineral royalty interest | (4,956) | (3,602) | (26,981) | (3,602) | |||||
Net proceeds on disposal of mineral stream interests | - | - | - | 46,400 | |||||
Acquisition of long-term investments | (728) | (5,006) | (1,479) | (13,181) | |||||
Proceeds on disposal of long-term investments | - | - | 177,088 | 202 | |||||
Dividends received | 482 | 700 | 1,663 | 1,617 | |||||
Other | (155) | (35) | (944) | (1,804) | |||||
Cash used for investing activities | $ | (31,233) | $ | (98,903) | $ | (363,036) | $ | (182,312) | |
Effect of exchange rate changes on cash and cash equivalents | $ | 61 | $ | (35) | $ | (39) | $ | 447 | |
Increase in cash and cash equivalents | $ | 153,868 | $ | 5,082 | $ | 147,558 | $ | 137,830 | |
Cash and cash equivalents, beginning of period | 540,217 | 828,837 | 546,527 | 696,089 | |||||
Cash and cash equivalents, end of period | $ | 694,085 | $ | 833,919 | $ | 694,085 | $ | 833,919 |
Summary of Units Produced
Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | |
Gold ounces produced ² | ||||||||
Salobo | 62,689 | 63,225 | 61,622 | 71,778 | 69,045 | 54,804 | 43,677 | 37,939 |
Sudbury 3 | 4,287 | 4,477 | 5,618 | 5,823 | 3,857 | 5,818 | 6,203 | 5,270 |
Constancia | 10,446 | 6,086 | 13,897 | 22,292 | 19,003 | 7,444 | 6,905 | 10,496 |
San Dimas 4 | 6,882 | 7,089 | 7,542 | 10,024 | 9,995 | 11,166 | 10,754 | 10,037 |
Stillwater 5 | 2,247 | 2,099 | 2,637 | 2,341 | 2,454 | 2,017 | 1,960 | 2,185 |
Other | ||||||||
Marmato | 648 | 584 | 623 | 668 | 673 | 639 | 457 | 533 |
Minto 6 | - | - | - | - | - | 1,292 | 3,063 | 2,567 |
Total Other | 648 | 584 | 623 | 668 | 673 | 1,931 | 3,520 | 3,100 |
Total gold ounces produced | 87,199 | 83,560 | 91,939 | 112,926 | 105,027 | 83,180 | 73,019 | 69,027 |
Silver ounces produced 2 | ||||||||
Peñasquito 7 | 1,785 | 2,263 | 2,643 | 1,036 | - | 1,744 | 2,076 | 1,761 |
Antamina | 925 | 992 | 806 | 1,030 | 894 | 984 | 872 | 1,067 |
Constancia | 648 | 451 | 640 | 836 | 697 | 420 | 552 | 655 |
Other | ||||||||
Los Filos | 42 | 27 | 48 | 26 | 32 | 41 | 45 | 14 |
Zinkgruvan | 537 | 699 | 641 | 510 | 785 | 374 | 632 | 664 |
Neves-Corvo | 425 | 432 | 524 | 573 | 486 | 407 | 436 | 369 |
Aljustrel 8 | - | - | - | - | 327 | 279 | 343 | 313 |
Cozamin | 185 | 177 | 173 | 185 | 165 | 184 | 141 | 157 |
Marmato | 7 | 6 | 7 | 10 | 11 | 7 | 8 | 9 |
Yauliyacu 9 | - | - | - | - | - | - | - | 261 |
Minto 6 | - | - | - | - | - | 14 | 29 | 33 |
Total Other | 1,196 | 1,341 | 1,393 | 1,304 | 1,806 | 1,306 | 1,634 | 1,820 |
Total silver ounces produced | 4,554 | 5,047 | 5,482 | 4,206 | 3,397 | 4,454 | 5,134 | 5,303 |
Palladium ounces produced ² | ||||||||
Stillwater 5 | 4,034 | 4,338 | 4,463 | 4,209 | 4,006 | 3,880 | 3,705 | 3,869 |
Cobalt pounds produced ² | ||||||||
Voisey's Bay | 397 | 259 | 240 | 215 | 183 | 152 | 124 | 128 |
GEOs produced 10 | 144,164 | 145,449 | 158,775 | 164,796 | 147,278 | 137,323 | 134,730 | 132,780 |
Average payable rate 2 | ||||||||
Gold | 95.1 % | 95.0 % | 94.7 % | 95.1 % | 95.4 % | 95.1 % | 95.1 % | 94.9 % |
Silver | 83.9 % | 84.3 % | 84.5 % | 83.0 % | 78.4 % | 83.7 % | 83.1 % | 84.2 % |
Palladium | 98.4 % | 97.3 % | 97.8 % | 98.0 % | 94.1 % | 94.1 % | 96.3 % | 93.9 % |
Cobalt | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % |
GEO 10 | 91.1 % | 90.7 % | 90.7 % | 91.6 % | 90.9 % | 90.9 % | 89.8 % | 89.9 % |
1) | All figures in thousands except gold and palladium ounces produced. |
2) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures and payable rates are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures and payable rates may be updated in future periods as additional information is received. |
3) | Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. |
4) | Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. For reference, attributable silver production from prior periods is as follows: Q3 2024 - 262,000 ounces; Q2 2024 - 285,000 ounces; Q1 2024 - 291,000 ounces; Q4 2023 - 378,000 ounces; Q3 2023 - 387,000 ounces; Q2 2023 - 423,000 ounces; Q1 2023 - 401,000 ounces; Q4 2022 - 348,000 ounces. |
5) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
6) | On May 13, 2023, Minto Metals Corp. announced the suspension of operations at the Minto mine. |
7) | There was a temporary suspension of operations at Peñasquito due to a labour strike which ran from June 7, 2023 to October 13, 2023. |
8) | On September 12, 2023, it was announced that the production of the zinc and lead concentrates at the Aljustrel mine will be halted from September 24, 2023 until the second quarter of 2025. |
9) | On December 14, 2022 the Company terminated the Yauliyacu PMPA in exchange for a cash payment of $132 million. |
10) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024. |
Summary of Units Sold
Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | |
Gold ounces sold | ||||||||
Salobo | 58,101 | 54,962 | 56,841 | 76,656 | 44,444 | 46,030 | 35,966 | 41,029 |
Sudbury 2 | 2,495 | 5,679 | 4,129 | 5,011 | 4,836 | 4,775 | 4,368 | 4,988 |
Constancia | 5,186 | 6,640 | 20,123 | 19,925 | 12,399 | 9,619 | 6,579 | 6,013 |
San Dimas | 7,022 | 6,801 | 7,933 | 10,472 | 9,695 | 11,354 | 10,651 | 10,943 |
Stillwater 3 | 1,635 | 2,628 | 2,355 | 2,314 | 1,985 | 2,195 | 2,094 | 1,783 |
Other | ||||||||
Marmato | 550 | 616 | 638 | 633 | 792 | 467 | 480 | 473 |
777 | - | - | - | - | 275 | 153 | 126 | 785 |
Minto | - | - | - | - | - | 701 | 2,341 | 2,982 |
Santo Domingo 4 | 447 | - | - | - | - | - | - | - |
Curipamba 4 | 258 | - | - | - | - | - | - | - |
Total Other | 1,255 | 616 | 638 | 633 | 1,067 | 1,321 | 2,947 | 4,240 |
Total gold ounces sold | 75,694 | 77,326 | 92,019 | 115,011 | 74,426 | 75,294 | 62,605 | 68,996 |
Silver ounces sold | ||||||||
Peñasquito | 1,667 | 1,482 | 1,839 | 442 | 453 | 1,913 | 1,483 | 2,066 |
Antamina | 989 | 917 | 762 | 1,091 | 794 | 963 | 814 | 1,114 |
Constancia | 366 | 422 | 726 | 665 | 435 | 674 | 366 | 403 |
Other | ||||||||
Los Filos | 26 | 24 | 44 | 24 | 30 | 37 | 34 | 16 |
Zinkgruvan | 488 | 597 | 297 | 449 | 714 | 370 | 520 | 547 |
Neves-Corvo | 185 | 216 | 243 | 268 | 245 | 132 | 171 | 80 |
Aljustrel | - | - | 1 | 86 | 142 | 182 | 205 | 156 |
Cozamin | 148 | 158 | 147 | 141 | 139 | 150 | 119 | 150 |
Marmato | 6 | 7 | 8 | 9 | 11 | 7 | 7 | 7 |
Yauliyacu | - | - | - | - | - | - | - | 337 |
Minto | - | - | - | - | - | 7 | 29 | 23 |
Keno Hill | - | - | - | - | - | - | 1 | 1 |
777 | - | - | - | - | 2 | 2 | - | 35 |
Total Other | 853 | 1,002 | 740 | 977 | 1,283 | 887 | 1,086 | 1,352 |
Total silver ounces sold | 3,875 | 3,823 | 4,067 | 3,175 | 2,965 | 4,437 | 3,749 | 4,935 |
Palladium ounces sold | ||||||||
Stillwater 3 | 3,761 | 4,301 | 4,774 | 3,339 | 4,242 | 3,392 | 2,946 | 3,396 |
Cobalt pounds sold | ||||||||
Voisey's Bay | 88 | 88 | 309 | 288 | 198 | 265 | 323 | 187 |
GEOs sold 5 | 122,715 | 124,009 | 143,184 | 155,059 | 111,935 | 129,734 | 109,293 | 128,662 |
Cumulative payable units PBND 6 | ||||||||
Gold ounces | 96,158 | 88,205 | 86,114 | 91,092 | 98,715 | 72,916 | 77,377 | 70,562 |
Silver ounces | 2,748 | 2,801 | 2,368 | 1,802 | 1,486 | 1,790 | 2,531 | 2,013 |
Palladium ounces | 6,186 | 6,018 | 6,198 | 6,666 | 5,607 | 6,122 | 5,751 | 5,098 |
Cobalt pounds | 796 | 513 | 360 | 356 | 377 | 251 | 285 | 258 |
GEO 5 | 136,027 | 126,761 | 118,785 | 117,465 | 121,058 | 98,186 | 111,217 | 97,936 |
Inventory on hand | ||||||||
Cobalt pounds | - | - | - | 88 | 155 | 310 | 398 | 633 |
1) | All figures in thousands except gold and palladium ounces sold. |
2) | Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. |
3) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
4) | The ounces sold under Santo Domingo and Curipamba relate to ounces received due to the delay ounce provision as per the respective PMPA. Please see the Company's MD&A for more information. |
5) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024. |
6) | Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered ("PBND") are based on management estimates. These figures may be updated in future periods as additional information is received. |
Results of Operations
The operating results of the Company's reportable operating segments are summarized in the tables and commentary below.
Three Months Ended September 30, 2024 | ||||||||||||||||
Units Produced² | Units | Average | Average | Average | Sales | Net | Cash Flow | Total | ||||||||
Gold | ||||||||||||||||
Salobo | 62,689 | 58,101 | $ | 2,490 | $ | 425 | $ | 378 | $ | 144,656 | $ | 98,016 | $ | 122,916 | $ | 2,616,346 |
Sudbury 5 | 4,287 | 2,495 | 2,519 | 400 | 1,326 | 6,286 | 1,979 | 4,798 | 246,918 | |||||||
Constancia | 10,446 | 5,186 | 2,490 | 422 | 323 | 12,912 | 9,048 | 10,722 | 70,095 | |||||||
San Dimas | 6,882 | 7,022 | 2,490 | 637 | 290 | 17,482 | 10,975 | 13,010 | 138,507 | |||||||
Stillwater | 2,247 | 1,635 | 2,490 | 438 | 421 | 4,071 | 2,667 | 3,355 | 208,474 | |||||||
Other 6 | 648 | 1,255 | 2,481 | 192 | 1,584 | 3,114 | 886 | 2,874 | 901,880 | |||||||
87,199 | 75,694 | $ | 2,491 | $ | 440 | $ | 418 | $ | 188,521 | $ | 123,571 | $ | 157,675 | $ | 4,182,220 | |
Silver | ||||||||||||||||
Peñasquito | 1,785 | 1,667 | $ | 29.58 | $ | 4.50 | $ | 4.86 | $ | 49,329 | $ | 33,725 | $ | 41,825 | $ | 253,461 |
Antamina | 925 | 989 | 29.58 | 6.06 | 8.46 | 29,257 | 14,893 | 23,260 | 498,029 | |||||||
Constancia | 648 | 366 | 29.58 | 6.23 | 6.10 | 10,822 | 6,310 | 8,543 | 170,242 | |||||||
Other 7 | 1,196 | 853 | 30.17 | 4.34 | 4.83 | 25,741 | 17,912 | 22,594 | 645,485 | |||||||
4,554 | 3,875 | $ | 29.71 | $ | 5.03 | $ | 5.89 | $ | 115,149 | $ | 72,840 | $ | 96,222 | $ | 1,567,217 | |
Palladium | ||||||||||||||||
Stillwater | 4,034 | 3,761 | $ | 969 | $ | 173 | $ | 429 | $ | 3,644 | $ | 1,380 | $ | 2,994 | $ | 215,082 |
Platreef | - | - | n.a. | n.a. | n.a. | - | - | - | 78,820 | |||||||
4,034 | 3,761 | $ | 969 | $ | 173 | $ | 429 | $ | 3,644 | $ | 1,380 | $ | 2,994 | $ | 293,902 | |
Platinum | ||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 9,451 |
Platreef | - | - | n.a. | n.a. | n.a. | - | - | - | 57,588 | |||||||
- | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 67,039 | |
Cobalt | ||||||||||||||||
Voisey's Bay | 397 | 88 | $ | 10.65 | $ | 2.15 | $ | 12.78 | $ | 939 | $ | (378) | $ | 321 | $ | 345,745 |
Operating results | $ | 308,253 | $ | 197,413 | $ | 257,212 | $ | 6,456,123 | ||||||||
Other | ||||||||||||||||
General and administrative | $ | (9,488) | $ | (6,215) | ||||||||||||
Share based compensation | (9,628) | - | ||||||||||||||
Donations and community investments | (2,352) | (2,198) | ||||||||||||||
Finance costs | (1,404) | (1,051) | ||||||||||||||
Other | 7,605 | 3,664 | ||||||||||||||
Income tax | (27,511) | 2,925 | ||||||||||||||
Total other | $ | (42,778) | $ | (2,875) | $ | 930,056 | ||||||||||
$ | 154,635 | $ | 254,337 | $ | 7,386,179 |
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | Includes the non-cash per ounce cost of sale associated with delay ounces. Please see the Company's MD&A for more information. |
5) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests. |
6) | Other gold interests comprised of the operating Marmato gold interest as well as the non-operating Minto, Copper World, Santo Domingo, Fenix, Blackwater, Curipamba, Marathon, Goose, Cangrejos, Platreef, Curraghinalt and Kudz Ze Kayah gold interests. Other includes ounces sold that were received under the delay ounce provisions of each of the Santo Domingo and Curipamba PMPAs. Please see the Company's MD&A for more information. |
7) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the non-operating Stratoni, Aljustrel, Minto, Pascua-Lama, Copper World, Navidad, Blackwater, Curipamba, Mineral Park and Kudz Ze Kayah silver interests. |
Three Months Ended September 30, 2023 | ||||||||||||||||
Units Produced² | Units | Average | Average | Average | Sales | Net | Cash Flow | Total | ||||||||
Gold | ||||||||||||||||
Salobo | 69,045 | 44,444 | $ | 1,944 | $ | 420 | $ | 330 | $ | 86,395 | $ | 53,026 | $ | 67,710 | $ | 2,341,485 |
Sudbury 4 | 3,857 | 4,836 | 1,950 | 400 | 1,204 | 9,428 | 1,669 | 7,494 | 268,224 | |||||||
Constancia | 19,003 | 12,399 | 1,944 | 419 | 316 | 24,102 | 14,991 | 18,906 | 86,555 | |||||||
San Dimas | 9,995 | 9,695 | 1,944 | 631 | 260 | 18,846 | 10,216 | 12,732 | 147,638 | |||||||
Stillwater | 2,454 | 1,985 | 1,944 | 349 | 510 | 3,859 | 2,154 | 3,167 | 212,650 | |||||||
Other 5 | 673 | 1,067 | 1,945 | 368 | 391 | 2,077 | 1,266 | 1,684 | 557,035 | |||||||
105,027 | 74,426 | $ | 1,944 | $ | 444 | $ | 381 | $ | 144,707 | $ | 83,322 | $ | 111,693 | $ | 3,613,587 | |
Silver | ||||||||||||||||
Peñasquito | - | 453 | $ | 23.82 | $ | 4.43 | $ | 4.06 | $ | 10,804 | $ | 6,952 | $ | 8,795 | $ | 278,028 |
Antamina | 894 | 794 | 23.82 | 4.81 | 7.06 | 18,915 | 9,496 | 15,097 | 527,227 | |||||||
Constancia | 697 | 435 | 23.82 | 6.18 | 6.24 | 10,360 | 4,958 | 7,674 | 183,736 | |||||||
Other 6 | 1,806 | 1,283 | 23.62 | 5.15 | 2.64 | 30,293 | 20,301 | 19,439 | 549,641 | |||||||
3,397 | 2,965 | $ | 23.73 | $ | 5.10 | $ | 4.57 | $ | 70,372 | $ | 41,707 | $ | 51,005 | $ | 1,538,632 | |
Palladium | ||||||||||||||||
Stillwater | 4,006 | 4,242 | $ | 1,251 | $ | 223 | $ | 459 | $ | 5,307 | $ | 2,416 | $ | 4,361 | $ | 222,154 |
Platinum | ||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 9,450 |
Cobalt | ||||||||||||||||
Voisey's Bay | 183 | 198 | $ | 13.87 | $ | 3.66 ⁷ | $ | 12.98 | $ | 2,751 | $ | (551) | $ | 4,235 | $ | 353,631 |
Operating results | $ | 223,137 | $ | 126,894 | $ | 171,294 | $ | 5,737,454 | ||||||||
Other | ||||||||||||||||
General and administrative | $ | (8,606) | $ | (6,321) | ||||||||||||
Share based compensation | (4,336) | - | ||||||||||||||
Donations and community investments | (1,736) | (1,750) | ||||||||||||||
Finance costs | (1,407) | (1,078) | ||||||||||||||
Other | 10,707 | 9,870 | ||||||||||||||
Income tax | (5,145) | (912) | ||||||||||||||
Total other | $ | (10,523) | $ | (191) | $ | 1,144,061 | ||||||||||
$ | 116,371 | $ | 171,103 | $ | 6,881,515 |
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
5) | Other gold interests are comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World, Santo Domingo, Fenix, Blackwater, Marathon, Curipamba, Goose and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. |
6) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests, the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025. |
7) | Cash cost per pound of cobalt sold during the third quarter of 2023 was net of a previously recorded inventory write-down of $0.1 million, resulting in a decrease of $0.51 per pound of cobalt sold. |
Comparative Results of Operations on a GEO Basis
Q3 2024 | Q3 2023 | Change | Change | ||||||||
GEO Production 1, 2 | 144,164 | 147,278 | (3,114) | (2.1) % | |||||||
GEO Sales 2 | 122,715 | 111,935 | 10,780 | 9.6 % | |||||||
Average price per GEO sold 2 | $ | 2,512 | $ | 1,993 | $ | 519 | 26.0 % | ||||
Revenue | $ | 308,253 | $ | 223,137 | $ | 85,116 | 38.1 % | ||||
Cost of sales, excluding depletion | $ | 55,310 | $ | 49,808 | $ | (5,502) | (11.0) % | ||||
Depletion | 55,530 | 46,435 | (9,095) | (19.6) % | |||||||
Cost of Sales | $ | 110,840 | $ | 96,243 | $ | (14,597) | (15.2) % | ||||
Gross Margin | $ | 197,413 | $ | 126,894 | $ | 70,519 | 55.6 % | ||||
General and administrative expenses | 9,488 | 8,606 | (882) | (10.2) % | |||||||
Share based compensation | 9,628 | 4,336 | (5,292) | (122.0) % | |||||||
Donations and community investments | 2,352 | 1,736 | (616) | (35.5) % | |||||||
Earnings from Operations | $ | 175,945 | $ | 112,216 | $ | 63,729 | 56.8 % | ||||
Other income (expense) | 7,605 | 10,707 | (3,102) | (29.0) % | |||||||
Earnings before finance costs and income taxes | $ | 183,550 | $ | 122,923 | $ | 60,627 | 49.3 % | ||||
Finance costs | 1,404 | 1,407 | 3 | 0.2 % | |||||||
Earnings before income taxes | $ | 182,146 | $ | 121,516 | $ | 60,630 | 49.9 % | ||||
Income tax expense | 27,511 | 5,145 | (22,366) | (434.7) % | |||||||
Net earnings | $ | 154,635 | $ | 116,371 | $ | 38,264 | 32.9 % |
1) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
2) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024. |
Nine Months Ended September 30, 2024 | ||||||||||||||||
Units Produced² | Units | Average | Average | Average | Sales | Net | Cash Flow | Total | ||||||||
Gold | ||||||||||||||||
Salobo | 187,536 | 169,904 | $ | 2,307 | $ | 425 | $ | 383 | $ | 391,973 | $ | 254,758 | $ | 322,761 | $ | 2,616,346 |
Sudbury 5 | 14,382 | 12,303 | 2,286 | 400 | 1,265 | 28,130 | 7,642 | 22,718 | 246,918 | |||||||
Constancia | 30,429 | 31,949 | 2,200 | 421 | 318 | 70,275 | 46,663 | 56,833 | 70,095 | |||||||
San Dimas | 21,513 | 21,756 | 2,296 | 634 | 286 | 49,950 | 29,941 | 36,156 | 138,507 | |||||||
Stillwater | 6,983 | 6,618 | 2,288 | 405 | 453 | 15,144 | 9,469 | 12,464 | 208,474 | |||||||
Other 6 | 1,855 | 2,509 | 2,347 | 293 | 1,056 | 5,888 | 2,504 | 5,153 | 901,880 | |||||||
262,698 | 245,039 | $ | 2,291 | $ | 440 | $ | 419 | $ | 561,360 | $ | 350,977 | $ | 456,085 | $ | 4,182,220 | |
Silver | ||||||||||||||||
Peñasquito | 6,691 | 4,988 | $ | 27.18 | $ | 4.50 | $ | 4.57 | $ | 135,578 | $ | 90,361 | $ | 113,132 | $ | 253,461 |
Antamina | 2,723 | 2,668 | 27.63 | 5.56 | 8.06 | 73,710 | 37,377 | 58,878 | 498,029 | |||||||
Constancia | 1,739 | 1,514 | 26.55 | 6.21 | 6.17 | 40,180 | 21,444 | 30,785 | 170,242 | |||||||
Other 7 | 3,930 | 2,595 | 28.37 | 4.29 | 4.51 | 73,630 | 50,785 | 60,026 | 645,485 | |||||||
15,083 | 11,765 | $ | 27.46 | $ | 4.91 | $ | 5.55 | $ | 323,098 | $ | 199,967 | $ | 262,821 | $ | 1,567,217 | |
Palladium | ||||||||||||||||
Stillwater | 12,835 | 12,836 | $ | 976 | $ | 177 | $ | 435 | $ | 12,531 | $ | 4,674 | $ | 10,259 | $ | 215,082 |
Platreef | - | - | n.a. | n.a. | n.a. | - | - | - | 78,820 | |||||||
12,835 | 12,836 | $ | 976 | $ | 177 | $ | 435 | $ | 12,531 | $ | 4,674 | $ | 10,259 | $ | 293,902 | |
Platinum | ||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 9,451 |
Platreef | - | - | n.a. | n.a. | n.a. | - | - | - | 57,588 | |||||||
- | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 67,039 | |
Cobalt | ||||||||||||||||
Voisey's Bay | 896 | 485 | $ | 14.71 | $ | 2.84 | $ | 12.77 | $ | 7,134 | $ | (438) | $ | 9,407 | $ | 345,745 |
Operating results | $ | 904,123 | $ | 555,180 | $ | 738,572 | $ | 6,456,123 | ||||||||
Other | ||||||||||||||||
General and administrative | $ | (30,193) | $ | (31,134) | ||||||||||||
Share based compensation | (17,150) | (11,129) | ||||||||||||||
Donations and community investments | (4,626) | (4,185) | ||||||||||||||
Finance costs | (4,144) | (3,234) | ||||||||||||||
Other | 19,922 | 16,486 | ||||||||||||||
Income tax | (77,996) | 2,734 | ||||||||||||||
Total other | $ | (114,187) | $ | (30,462) | $ | 930,056 | ||||||||||
$ | 440,993 | $ | 708,110 | $ | 7,386,179 |
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | Includes the non-cash per ounce cost of sale associated with delay ounces. Please see the Company's MD&A for more information. |
5) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests. |
6) | Other gold interests comprised of the operating Marmato gold interest as well as the non-operating Minto, Copper World, Santo Domingo, Fenix, Blackwater, Curipamba, Marathon, Goose, Cangrejos, Platreef, Curraghinalt and Kudz Ze Kayah gold interests. Other includes ounces sold that were received under the delay ounce provisions of each of the Santo Domingo and Curipamba PMPAs. Please see the Company's MD&A for more information. |
7) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the non-operating Stratoni, Aljustrel, Minto, Pascua-Lama, Copper World, Navidad, Blackwater, Curipamba, Mineral Park and Kudz Ze Kayah silver interests. |
Nine Months Ended September 30, 2023 | ||||||||||||||||||
Units Produced² | Units | Average | Average | Average | Sales | Gain on Disposal 4 | Net | Cash Flow | Total | |||||||||
Gold | ||||||||||||||||||
Salobo | 167,526 | 126,440 | $ | 1,947 | $ | 420 | $ | 330 | $ | 246,219 | $ | - | $ | 151,287 | $ | 193,063 | $ | 2,341,485 |
Sudbury 5 | 15,878 | 13,979 | 1,953 | 400 | 1,087 | 27,295 | - | 6,512 | 21,420 | 268,224 | ||||||||
Constancia | 33,352 | 28,597 | 1,948 | 417 | 316 | 55,718 | - | 34,751 | 43,779 | 86,555 | ||||||||
San Dimas | 31,915 | 31,700 | 1,945 | 628 | 260 | 61,657 | - | 33,535 | 41,762 | 147,638 | ||||||||
Stillwater | 6,431 | 6,274 | 1,945 | 347 | 510 | 12,201 | - | 6,824 | 10,026 | 212,650 | ||||||||
Other 6 | 6,124 | 5,335 | 1,935 | 1,119 | 172 | 10,324 | - | 3,439 | 4,090 | 557,035 | ||||||||
261,226 | 212,325 | $ | 1,947 | $ | 465 | $ | 369 | $ | 413,414 | $ | - | $ | 236,348 | $ | 314,140 | $ | 3,613,587 | |
Silver | ||||||||||||||||||
Peñasquito | 3,820 | 3,849 | $ | 23.63 | $ | 4.43 | $ | 4.06 | $ | 90,967 | $ | - | $ | 58,268 | $ | 73,915 | $ | 278,028 |
Antamina | 2,750 | 2,571 | 23.65 | 4.69 | 7.06 | 60,812 | - | 30,625 | 48,765 | 527,227 | ||||||||
Constancia | 1,669 | 1,475 | 23.75 | 6.15 | 6.24 | 35,034 | - | 16,750 | 25,962 | 183,736 | ||||||||
Other 7 | 4,746 | 3,256 | 23.44 | 5.58 | 2.82 | 76,316 | 5,027 | 53,966 | 55,364 | 549,641 | ||||||||
12,985 | 11,151 | $ | 23.60 | $ | 5.05 | $ | 4.68 | $ | 263,129 | $ | 5,027 | $ | 159,609 | $ | 204,006 | $ | 1,538,632 | |
Palladium | ||||||||||||||||||
Stillwater | 11,591 | 10,580 | $ | 1,410 | $ | 255 | $ | 440 | $ | 14,922 | $ | - | $ | 7,565 | $ | 12,223 | $ | 222,154 |
Platinum | ||||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | - | $ | 9,450 |
Cobalt | ||||||||||||||||||
Voisey's Bay | 458 | 786 | $ | 14.13 | $ | 3.36 ⁸ | $ | 13.63 | $ | 11,108 | $ | - | $ | (2,243) | $ | 13,056 | $ | 353,631 |
Operating results | $ | 702,573 | $ | 5,027 | $ | 401,279 | $ | 543,425 | $ | 5,737,454 | ||||||||
Other | ||||||||||||||||||
General and administrative | $ | (28,922) | $ | (29,702) | ||||||||||||||
Share based compensation | (16,217) | (16,675) | ||||||||||||||||
Donations and community investments | (5,054) | (4,896) | ||||||||||||||||
Finance costs | (4,138) | (3,147) | ||||||||||||||||
Other | 26,961 | 24,823 | ||||||||||||||||
Income tax | (4,700) | (5,244) | ||||||||||||||||
Total other | $ | (32,070) | $ | (34,841) | $ | 1,144,061 | ||||||||||||
$ | 369,209 | $ | 508,584 | $ | 6,881,515 |
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | The gain on disposal of Other silver interests relates to the gain on the buyback of 33% of the Goose PMPA. |
5) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
6) | Other gold interests are comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World, Santo Domingo, Fenix, Blackwater, Marathon, Curipamba, Goose and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. |
7) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025. |
8) | Cash cost per pound of cobalt sold during the nine months ended September 30, 2023 was net of a previously recorded inventory write-down of $1.6 million, resulting in a decrease of $2.05 per pound of cobalt sold. |
Comparative Results of Operations on a GEO Basis
YTD 2024 | YTD 2023 | Change | Change | ||||||||
GEO Production 1, 2 | 448,388 | 419,330 | 29,058 | 6.9 % | |||||||
GEO Sales 2 | 389,907 | 350,961 | 38,946 | 11.1 % | |||||||
Average price per GEO sold 2 | $ | 2,319 | $ | 2,002 | $ | 317 | 15.8 % | ||||
Revenue | $ | 904,123 | $ | 702,573 | $ | 201,550 | 28.7 % | ||||
Cost of sales, excluding depletion | $ | 170,872 | $ | 160,413 | $ | (10,459) | (6.5) % | ||||
Depletion | 178,071 | 145,908 | (32,163) | (22.0) % | |||||||
Cost of Sales | $ | 348,943 | $ | 306,321 | $ | (42,622) | (13.9) % | ||||
Gross Margin | $ | 555,180 | $ | 396,252 | $ | 158,928 | 40.1 % | ||||
General and administrative expenses | 30,193 | 28,922 | (1,271) | (4.4) % | |||||||
Share based compensation | 17,150 | 16,217 | (933) | (5.8) % | |||||||
Donations and community investments | 4,626 | 5,054 | 428 | 8.5 % | |||||||
Earnings from Operations | $ | 503,211 | $ | 346,059 | $ | 157,152 | 45.4 % | ||||
Gain on disposal of mineral stream interests | - | 5,027 | (5,027) | (100.0) % | |||||||
Other income (expense) | 19,922 | 26,961 | (7,039) | (26.1) % | |||||||
Earnings before finance costs and income taxes | $ | 523,133 | $ | 378,047 | $ | 145,086 | 38.4 % | ||||
Finance costs | 4,144 | 4,138 | (6) | (0.1) % | |||||||
Earnings before income taxes | $ | 518,989 | $ | 373,909 | $ | 145,080 | 38.8 % | ||||
Income tax expense | 77,996 | 4,700 | (73,296) | (1,559.5) % | |||||||
Net earnings | $ | 440,993 | $ | 369,209 | $ | 71,784 | 19.4 % |
1) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
2) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024. |
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash costs of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis; and (iv) cash operating margin.
i. | Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges (reversals) (if any), non-cash fair value (gains) losses and other one-time (income) expenses as well as the reversal of non-cash income tax expense (recovery) which is offset by income tax expense (recovery) recognized in the Statements of Shareholders' Equity and OCI, respectively. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance. |
The following table provides a reconciliation of adjusted net earnings and adjusted net earnings per share (basic and diluted). | |
Three Months Ended | Nine Months Ended | |||||||||||
(in thousands, except for per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
Net earnings | $ | 154,635 | $ | 116,371 | $ | 440,993 | $ | 369,209 | ||||
Add back (deduct): | ||||||||||||
Gain on disposal of Mineral Stream Interest | - | - | - | (5,027) | ||||||||
(Gain) loss on fair value adjustment of share purchase warrants held | (523) | 143 | (903) | 248 | ||||||||
Deferred income tax (expense) recovery recognized in the Statement of OCI | (1,134) | 5,115 | 1,632 | 7,205 | ||||||||
Income tax recovery related to prior year disposal of Mineral Stream Interest | - | - | - | (2,672) | ||||||||
Other | (175) | (162) | (521) | (482) | ||||||||
Adjusted net earnings | $ | 152,803 | $ | 121,467 | $ | 441,201 | $ | 368,481 | ||||
Divided by: | ||||||||||||
Basic weighted average number of shares outstanding | 453,641 | 452,975 | 453,389 | 452,748 | ||||||||
Diluted weighted average number of shares outstanding | 454,302 | 453,538 | 454,037 | 453,419 | ||||||||
Equals: | ||||||||||||
Adjusted earnings per share - basic | $ | 0.337 | $ | 0.268 | $ | 0.973 | $ | 0.814 | ||||
Adjusted earnings per share - diluted | $ | 0.336 | $ | 0.268 | $ | 0.972 | $ | 0.813 |
ii. | Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis. |
The following table provides a reconciliation of operating cash flow per share (basic and diluted). | |
Three Months Ended | Nine Months Ended | |||||||||||
(in thousands, except for per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
Cash generated by operating activities | $ | 254,337 | $ | 171,103 | $ | 708,110 | $ | 508,584 | ||||
Divided by: | ||||||||||||
Basic weighted average number of shares outstanding | 453,641 | 452,975 | 453,389 | 452,748 | ||||||||
Diluted weighted average number of shares outstanding | 454,302 | 453,538 | 454,037 | 453,419 | ||||||||
Equals: | ||||||||||||
Operating cash flow per share - basic | $ | 0.561 | $ | 0.378 | $ | 1.562 | $ | 1.123 | ||||
Operating cash flow per share - diluted | $ | 0.560 | $ | 0.377 | $ | 1.560 | $ | 1.122 |
iii. | Average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis is calculated by dividing the total cost of sales, less depletion and cost of sales related to delay ounces, by the ounces or pounds sold. In the precious metal mining industry, this is a common performance measure but does not have any standardized meaning prescribed by IFRS. In addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance and ability to generate cash flow. | |
The following table provides a calculation of average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis. | ||
Three Months Ended | Nine Months Ended | |||||||||||
(in thousands, except for gold and palladium ounces sold and per unit amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
Cost of sales | $ | 110,840 | $ | 96,243 | $ | 348,943 | $ | 306,321 | ||||
Less: depletion | (55,530) | (46,435) | (178,071) | (145,908) | ||||||||
Less: cost of sales related to delay ounces 1 | (1,698) | - | (1,698) | - | ||||||||
Cash cost of sales | $ | 53,612 | $ | 49,808 | $ | 169,174 | $ | 160,413 | ||||
Cash cost of sales is comprised of: | ||||||||||||
Total cash cost of gold sold | $ | 33,287 | $ | 33,014 | $ | 107,715 | $ | 98,724 | ||||
Total cash cost of silver sold | 19,485 | 15,121 | 57,811 | 56,351 | ||||||||
Total cash cost of palladium sold | 650 | 946 | 2,272 | 2,699 | ||||||||
Total cash cost of cobalt sold 2 | 190 | 727 | 1,376 | 2,639 | ||||||||
Total cash cost of sales | $ | 53,612 | $ | 49,808 | $ | 169,174 | $ | 160,413 | ||||
Divided by: | ||||||||||||
Total gold ounces sold | 75,694 | 74,426 | 245,039 | 212,325 | ||||||||
Total silver ounces sold | 3,875 | 2,965 | 11,765 | 11,151 | ||||||||
Total palladium ounces sold | 3,761 | 4,242 | 12,836 | 10,580 | ||||||||
Total cobalt pounds sold | 88 | 198 | 485 | 786 | ||||||||
Equals: | ||||||||||||
Average cash cost of gold (per ounce) | $ | 440 | $ | 444 | $ | 440 | $ | 465 | ||||
Average cash cost of silver (per ounce) | $ | 5.03 | $ | 5.10 | $ | 4.91 | $ | 5.05 | ||||
Average cash cost of palladium (per ounce) | $ | 173 | $ | 223 | $ | 177 | $ | 255 | ||||
Average cash cost of cobalt (per pound) | $ | 2.15 | $ | 3.66 | $ | 2.84 | $ | 3.36 |
1) | The cost of sales related to delay ounces is a non-cash expense. Please see the Company's MD&A for more information. |
2) | Cash cost per pound of cobalt sold during the third quarter of 2023 was net of a previously recorded inventory write-down of $0.1 million (nine months - $1.6 million), resulting in a decrease of $0.51 per pound of cobalt sold (nine months - $2.05 per pound of cobalt sold). |
iv. | Cash operating margin is calculated by adding back depletion and the cost of sales related to delay ounces to the gross margin. Cash operating margin on a per ounce or per pound basis is calculated by dividing the cash operating margin by the number of ounces or pounds sold during the period. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis as well as to evaluate the Company's ability to generate cash flow. |
The following table provides a reconciliation of cash operating margin. | |
Three Months Ended | Nine Months Ended | |||||||||||
(in thousands, except for gold and palladium ounces sold and per unit amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
Gross margin | $ | 197,413 | $ | 126,894 | $ | 555,180 | $ | 396,252 | ||||
Add back: depletion | 55,530 | 46,435 | 178,071 | 145,908 | ||||||||
Add back: cost of sales related to delay ounces 1 | 1,698 | - | 1,698 | - | ||||||||
Cash operating margin | $ | 254,641 | $ | 173,329 | $ | 734,949 | $ | 542,160 | ||||
Cash operating margin is comprised of: | ||||||||||||
Total cash operating margin of gold sold | $ | 155,234 | $ | 111,693 | $ | 453,645 | $ | 314,690 | ||||
Total cash operating margin of silver sold | 95,664 | 55,251 | 265,287 | 206,778 | ||||||||
Total cash operating margin of palladium sold | 2,994 | 4,361 | 10,259 | 12,223 | ||||||||
Total cash operating margin of cobalt sold | 749 | 2,024 | 5,758 | 8,469 | ||||||||
Total cash operating margin | $ | 254,641 | $ | 173,329 | $ | 734,949 | $ | 542,160 | ||||
Divided by: | ||||||||||||
Total gold ounces sold | 75,694 | 74,426 | 245,039 | 212,325 | ||||||||
Total silver ounces sold | 3,875 | 2,965 | 11,765 | 11,151 | ||||||||
Total palladium ounces sold | 3,761 | 4,242 | 12,836 | 10,580 | ||||||||
Total cobalt pounds sold | 88 | 198 | 485 | 786 | ||||||||
Equals: | ||||||||||||
Cash operating margin per gold ounce sold | $ | 2,051 | $ | 1,500 | $ | 1,851 | $ | 1,482 | ||||
Cash operating margin per silver ounce sold | $ | 24.68 | $ | 18.63 | $ | 22.55 | $ | 18.55 | ||||
Cash operating margin per palladium ounce sold | $ | 796 | $ | 1,028 | $ | 799 | $ | 1,155 | ||||
Cash operating margin per cobalt pound sold | $ | 8.50 | $ | 10.21 | $ | 11.87 | $ | 10.77 |
1) The cost of sales related to delay ounces is a non-cash expense. Please see the Company's MD&A for more information. |
These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently. The presentation of these non-IFRS measures 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. For more detailed information, please refer to Wheaton's MD&A available on the Company's website at www.wheatonpm.com and posted on SEDAR+ at www.sedarplus.ca .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation concerning the business, operations and financial performance of Wheaton and, in some instances, the business, mining operations and performance of Wheaton's PMPA counterparties. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to:
- payment by the Company of $625 million to Montage and the satisfaction of each party's obligations in accordance with the Koné Gold PMPA;
- the receipt by the Company of gold production in respect of the Koné Gold Project;
- the advance by the Company, and the repayment by Montage, of up to $75 million to Montage in connection with the Facility;
- payment by the Company of $125 million to Rio2 and the satisfaction of each party's obligations in accordance with the Fenix PMPA (as amended);
- the receipt by the Company of gold production in respect of the Fenix Gold Project;
- the advance by the Company, and the repayment by Rio2, of up to $20 million to Rio2 in connection with the Rio2 standby loan facility;
- the future price of commodities;
- the estimation of future production from the mineral stream interests and mineral royalty interests currently owned by the Company (the "Mining Operations") (including in the estimation of production, mill throughput, grades, recoveries and exploration potential);
- the estimation of mineral reserves and mineral resources (including the estimation of reserve conversion rates and the realization of such estimations);
- the commencement, timing and achievement of construction, expansion or improvement projects by Wheaton's PMPA counterparties at Mining Operations;
- the payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party's obligations in accordance with PMPAs and the receipt by the Company of precious metals and cobalt production or other payments in respect of the applicable Mining Operations under PMPAs;
- the ability of Wheaton's PMPA counterparties to comply with the terms of a PMPA (including as a result of the business, mining operations and performance of Wheaton's PMPA counterparties) and the potential impacts of such on Wheaton;
- future payments by the Company in accordance with PMPAs, including any acceleration of payments;
- the costs of future production;
- the estimation of produced but not yet delivered ounces;
- the future sales of Common Shares under, the amount of net proceeds from, and the use of the net proceeds from, the at-the-market equity program;
- continued listing of the Common Shares on the LSE, NYSE and TSX;
- any statements as to future dividends;
- the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs;
- projected increases to Wheaton's production and cash flow profile;
- projected changes to Wheaton's production mix;
- the ability of Wheaton's PMPA counterparties to comply with the terms of any other obligations under agreements with the Company;
- the ability to sell precious metals and cobalt production;
- confidence in the Company's business structure;
- the Company's assessment of taxes payable, including taxes payable under the GMT, and the impact of the CRA Settlement, and the Company's ability to pay its taxes;
- possible CRA domestic audits for taxation years subsequent to 2016 and international audits;
- the Company's assessment of the impact of any tax reassessments;
- the Company's intention to file future tax returns in a manner consistent with the CRA Settlement;
- the Company's climate change and environmental commitments; and
- assessments of the impact and resolution of various legal and tax matters, including but not limited to audits.
Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to:
- risks relating to the satisfaction of each party's obligations in accordance with the terms of the Koné Gold PMPA;
- risks relating to the satisfaction of each party's obligations in accordance with the terms of the Facility;
- risks relating to the satisfaction of each party's obligations in accordance with the terms of the Fenix PMPA;
- risks relating to the satisfaction of each party's obligations in accordance with the terms of the Rio2 standby loan facility;
- risks associated with fluctuations in the price of commodities (including Wheaton's ability to sell its precious metals or cobalt production at acceptable prices or at all);
- risks related to the Mining Operations (including fluctuations in the price of the primary or other commodities mined at such operations, regulatory, political and other risks of the jurisdictions in which the Mining Operations are located, actual results of mining, risks associated with exploration, development, operating, expansion and improvement at the Mining Operations, environmental and economic risks of the Mining Operations, and changes in project parameters as Mining Operations plans continue to be refined);
- absence of control over the Mining Operations and having to rely on the accuracy of the public disclosure and other information Wheaton receives from the owners and operators of the Mining Operations as the basis for its analyses, forecasts and assessments relating to its own business;
- risks related to the uncertainty in the accuracy of mineral reserve and mineral resource estimation;
- risks related to the satisfaction of each party's obligations in accordance with the terms of the Company's PMPAs, including the ability of the companies with which the Company has PMPAs to perform their obligations under those PMPAs in the event of a material adverse effect on the results of operations, financial condition, cash flows or business of such companies, any acceleration of payments, estimated throughput and exploration potential;
- risks relating to production estimates from Mining Operations, including anticipated timing of the commencement of production by certain Mining Operations;
- Wheaton's interpretation of, or compliance with, or application of, tax laws and regulations or accounting policies and rules, being found to be incorrect or the tax impact to the Company's business operations being materially different than currently contemplated, , or the ability of the Company to pay such taxes as and when due;
- any challenge or reassessment by the CRA of the Company's tax filings being successful and the potential negative impact to the Company's previous and future tax filings;
- risks in assessing the impact of the CRA Settlement (including whether there will be any material change in the Company's facts or change in law or jurisprudence);
- risks related to any potential amendments to Canada's transfer pricing rules under the Income Tax Act ( Canada ) that may result from the Department of Finance's consultation paper released June 6, 2023 ;
- risks relating to Wheaton's interpretation of, compliance with, or application of the GMT, including Canada's GMTA and the legislation enacted in Luxembourg , that applies to the income of the Company's subsidiaries for fiscal years beginning on or after December 31, 2023 ;
- counterparty credit and liquidity risks;
- mine operator and counterparty concentration risks;
- indebtedness and guarantees risks;
- hedging risk;
- competition in the streaming industry risk;
- risks relating to security over underlying assets;
- risks relating to third-party PMPAs;
- risks relating to revenue from royalty interests;
- risks related to Wheaton's acquisition strategy;
- risks relating to third-party rights under PMPAs;
- risks relating to future financings and security issuances;
- risks relating to unknown defects and impairments;
- risks related to governmental regulations;
- risks related to international operations of Wheaton and the Mining Operations;
- risks relating to exploration, development, operating, expansions and improvements at the Mining Operations;
- risks related to environmental regulations;
- the ability of Wheaton and the Mining Operations to obtain and maintain necessary licenses, permits, approvals and rulings;
- the ability of Wheaton and the Mining Operations to comply with applicable laws, regulations and permitting requirements;
- lack of suitable supplies, infrastructure and employees to support the Mining Operations;
- risks related to underinsured Mining Operations;
- inability to replace and expand mineral reserves, including anticipated timing of the commencement of production by certain Mining Operations (including increases in production, estimated grades and recoveries);
- uncertainties related to title and indigenous rights with respect to the mineral properties of the Mining Operations;
- the ability of Wheaton and the Mining Operations to obtain adequate financing;
- the ability of the Mining Operations to complete permitting, construction, development and expansion;
- challenges related to global financial conditions;
- risks associated with environmental, social and governance matters;
- risks related to fluctuations in commodity prices of metals produced from the Mining Operations other than precious metals or cobalt;
- risks related to claims and legal proceedings against Wheaton or the Mining Operations;
- risks related to the market price of the Common Shares of Wheaton;
- the ability of Wheaton and the Mining Operations to retain key management employees or procure the services of skilled and experienced personnel;
- risks related to interest rates;
- risks related to the declaration, timing and payment of dividends;
- risks related to access to confidential information regarding Mining Operations;
- risks associated with multiple listings of the Common Shares on the LSE, NYSE and TSX;
- risks associated with a possible suspension of trading of Common Shares;
- risks associated with the sale of Common Shares under the at-the-market equity program, including the amount of any net proceeds from such offering of Common Shares and the use of any such proceeds;
- equity price risks related to Wheaton's holding of long‑term investments in other companies;
- risks relating to activist shareholders;
- risks relating to reputational damage;
- risks relating to expression of views by industry analysts;
- risks related to the impacts of climate change and the transition to a low-carbon economy;
- risks associated with the ability to achieve climate change and environmental commitments at Wheaton and at the Mining Operations;
- risks related to ensuring the security and safety of information systems, including cyber security risks;
- risks relating to generative artificial intelligence;
- risks relating to compliance with anti-corruption and anti-bribery laws;
- risks relating to corporate governance and public disclosure compliance;
- risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic or pandemic;
- risks related to the adequacy of internal control over financial reporting; and
- other risks discussed in the section entitled "Description of the Business – Risk Factors" in Wheaton's Annual Information Form available on SEDAR+ at www.sedarplus.ca and Wheaton's Form 40-F for the year ended December 31, 2022 on file with the U.S. Securities and Exchange Commission on EDGAR (the "Disclosure").
Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation):
- the payment of $625 million to Montage and the satisfaction of each party's obligations in accordance with the terms of the Koné Gold PMPA;
- the advance by the Company of up to $75 million to Montage in connection with the Facility and the receipt by the Company of all amounts owing under the Facility, including, but not limited to, interest;
- the payment of $125 million to Rio2 and the satisfaction of each party's obligations in accordance with the terms of the Fenix PMPA;
- the advance by the Company of up to $20 million to Rio2 in connection with the Rio2 standby loan facility and the receipt by WPMI of all amounts owing under the Rio2 standby loan facility, including, but not limited to, interest;
- that there will be no material adverse change in the market price of commodities;
- that the Mining Operations will continue to operate and the mining projects will be completed in accordance with public statements and achieve their stated production estimates;
- that the mineral reserves and mineral resource estimates from Mining Operations (including reserve conversion rates) are accurate;
- that public disclosure and other information Wheaton receives from the owners and operators of the Mining Operations is accurate and complete;
- that the production estimates from Mining Operations are accurate;
- that each party will satisfy their obligations in accordance with the PMPAs;
- that Wheaton will continue to be able to fund or obtain funding for outstanding commitments;
- that Wheaton will be able to source and obtain accretive PMPAs;
- that the terms and conditions of a PMPA are sufficient to recover liabilities owed to the Company;
- that Wheaton has fully considered the value and impact of any third-party interests in PMPAs;
- that expectations regarding the resolution of legal and tax matters will be achieved (including CRA audits involving the Company);
- that Wheaton has properly considered the application of Canadian tax laws to its structure and operations and that Wheaton will be able to pay taxes when due;
- that Wheaton has filed its tax returns and paid applicable taxes in compliance with Canadian tax laws;
- that Wheaton's application of the CRA Settlement is accurate (including the Company's assessment that there has been no material change in the Company's facts or change in law or jurisprudence);
- that Wheaton's assessment of the tax exposure and impact on the Company and its subsidiaries of the implementation of a 15% global minimum tax is accurate;
- that any sale of Common Shares under the at-the-market equity program will not have a significant impact on the market price of the Common Shares and that the net proceeds of sales of Common Shares, if any, will be used as anticipated;
- that the trading of the Common Shares will not be adversely affected by the differences in liquidity, settlement and clearing systems as a result of multiple listings of the Common Shares on the LSE, the TSX and the NYSE;
- that the trading of the Company's Common Shares will not be suspended;
- the estimate of the recoverable amount for any PMPA with an indicator of impairment;
- that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic or pandemic; and
- such other assumptions and factors as set out in the Disclosure.
There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Wheaton. Readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein are for the purpose of providing readers with information to assist them in understanding Wheaton's expected financial and operational performance and may not be appropriate for other purposes. Any forward-looking statement speaks only as of the date on which it is made, reflects Wheaton's management's current beliefs based on current information and will not be updated except in accordance with applicable securities laws. Although Wheaton has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward‑looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended.
Cautionary Language Regarding Reserves and Resources
For further information on Mineral Reserves and Mineral Resources and on Wheaton more generally, readers should refer to Wheaton's Annual Information Form for the year ended December 31, 2023 , which was filed on March 28, 2024 and other continuous disclosure documents filed by Wheaton since January 1, 2024 , available on SEDAR+ at www.sedarplus.ca . Wheaton's Mineral Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: The information contained herein has been prepared in accordance with the requirements of the securities laws in effect in Canada , which differ from the requirements of United States securities laws. The Company reports information regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources in accordance with Canadian reporting requirements which are governed by, and utilize definitions required by, Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). These definitions differ from the definitions adopted by the United States Securities and Exchange Commission ("SEC") under the United States Securities Act of 1933, as amended (the "Securities Act") which are applicable to U.S. companies. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted by the SEC. Accordingly, information contained herein that describes Wheaton's mineral deposits may not be comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. United States investors are urged to consider closely the disclosure in Wheaton's Form 40-F, a copy of which may be obtained from Wheaton or from https://www.sec.gov/edgar.shtml .
End Notes
________________________ |
1 Please refer to disclosure on non-IFRS measures in this press release. Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter. Details of the dividend can be found in the Wheaton's news release dated November 7, 2024, titled "Wheaton Precious Metals Declares Quarterly Dividend." |
2 Statements made in this section contain forward-looking information with respect to forecast production, production growth, funding outstanding commitments, continuing to acquire accretive mineral stream interests and the commencement, timing and achievement of construction, expansion or improvement projects and readers are cautioned that actual outcomes may vary. Please see "Cautionary Note Regarding Forward-Looking Statements" for material risks, assumptions and important disclosure associated with this information. |
3 Gold equivalent forecast production for 2024 and the longer-term outlook are based on the following commodity price assumptions: $2,000 per ounce gold, $23 per ounce silver, $1,000 per ounce palladium, $950 per ounce of platinum and $13.00 per pound cobalt. |
4 Source: Company reports & S and P Capital IQ estimates of 2024 byproduct cost curves for gold, zinc/lead, copper, PGM, nickel & silver mines. Portfolio mine life based on recoverable reserves and resources as of Dec 31, 2023 and 2023 actual mill throughput and is weighted by individual reserve and resource category. |
5 Total streaming and royalty agreements relate to precious metals purchase agreements for the purchase of precious metals and cobalt relating to 18 mining assets which are currently operating, 24 which are at various stages of development and 4 of which have been placed in care and maintenance or have been closed. |
6 Further details for long-term guidance can be found in the Wheaton news release dated March 14, 2024, titled "Wheaton Precious Metals Announces Solid 2023 Annual Results and Transition to Progressive Dividend Policy". Additionally, neither of the transactions announced in 2024 have been factored into long-term guidance including the new stream relative to the Koné Project, and the stream amendment relative to the Fenix Project. |
View original content: https://www.prnewswire.com/news-releases/wheaton-precious-metals-announces-third-quarter-2024-results-and-record-quarterly-operating-cash-flow-302299373.html
SOURCE Wheaton Precious Metals Corp.
View original content: http://www.newswire.ca/en/releases/archive/November2024/07/c3337.html
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Barrick Declares Q3 Dividend and Buys Back Additional Shares
All amounts expressed in US dollars
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today announced the declaration of a dividend of $0.10 per share for the third quarter of 2024. The dividend is consistent with the Company's Performance Dividend Policy announced at the start of 2022.
The Q3 2024 dividend will be paid on December 16, 2024 to shareholders of record at the close of business on November 29, 2024.
Barrick also repurchased an additional 4.725 million shares during the third quarter under the $1 billion share buyback program that was announced in February 2024, bringing the total repurchases during the year to 7.675 million shares.
"The continued strength of our balance sheet, bolstered by record high gold prices and our world class gold and copper asset base, allow us to distribute a robust quarterly dividend while maintaining ample liquidity to invest in the growth of our business and to repurchase additional stock at a compelling valuation," said senior executive vice-president and chief financial officer Graham Shuttleworth.
Enquiries:
President and CEO
Mark Bristow
+1 647 205 7694
+44 788 071 1386
Senior EVP and CFO
Graham Shuttleworth
+1 647 262 2095
+44 779 771 1338
Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "will", "perform", "maintain", "growth" and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to Barrick's operating and financial performance, liquidity available to invest in growth projects, and the potential for Barrick to deliver enhanced dividends to shareholders under its Performance Dividend Policy.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in jurisdictions in which the Company or its affiliates do or may carry on business in the future; fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; assumptions relating to the trading price of the Company's common shares; changes in mineral production performance, exploitation, and exploration successes; disruption of supply routes which may cause delays in construction and mining activities at Barrick's more remote properties; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the impact of inflation; fluctuations in the currency markets; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; damage to the Company's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company's handling of environmental matters or dealings with community groups, whether true or not; the possibility that future exploration results will not be consistent with the Company's expectations; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; risks associated with illegal and artisanal mining; risks associated with new diseases, epidemics and pandemics; litigation and legal and administrative proceedings; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; business opportunities that may be presented to, or pursued by, the Company; risks associated with working with partners in jointly controlled assets; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; risks related to the failure of internal controls; risks related to the impairment of the Company's goodwill and assets; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development, and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick's ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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High Grade Rock Chip Assays Confirm New Gold Discoveries at Leinster South
Metal Hawk Limited (ASX: MHK, “Metal Hawk” or the “Company”) is pleased to provide an exploration update relating to its 100% owned Leinster South Project, located 30km south of Leinster, in the world-class Agnew-Lawlers region of the eastern goldfields in Western Australia.
- Gold assays up to 62 g/t Au returned from first batch of rock chip samples at the Thylacine Prospect, located 1.5km ESE from Siberian Tiger.
- Several rock chip samples at Thylacine return high-grade gold from multiple sub-parallel quartz veins over a broad area, including:
- 24DR611: 62.3 g/t Au
- 24DR617: 30.4 g/t Au
- 24DR627: 27.0 g/t Au
- 24DR633: 20.2 g/t Au
- 24DR715: 27.3g/t Au
- 24DR613: 12.1 g/t Au
- 24DR627: 10.5 g/t Au
- 24DR616: 9.6 g/t Au
- 24DR602: 8.0 g/t Au
- Follow-up sampling at Tysons prospect returns high-grade gold in numerous samples of quartz veining, including:
- 24DR537: 84.0 g/t Au
- 24DR535: 21.5 g/t Au
- 24DR564: 10.9 g/t Au
- 24DR536: 6.2 g/t Au
- No historical drilling at Siberian Tiger, Thylacine or Tysons.
- Plans for drilling advanced with heritage survey scheduled for early 2025.
- Field mapping continues to discover new zones of outcropping gold mineralisation, including the new untested Bengal Tiger prospect.
Following the discovery of gold at Siberian Tiger only three months ago (see ASX announcement 5 August 2024), Metal Hawk’s field activities at Leinster South continue to encounter more significant outcropping high grade gold mineralisation at new prospects. As well as expanding the mineralised footprint of Siberian Tiger, the latest round of assay results successfully followed up the recent high grade rock chip result (22 g/t Au) at Tysons prospect, with several additional sites of quartz vein hosted gold mineralisation recorded (up to 84g/t Au) along the north-south trending granite-greenstone contact. Additionally, spectacular new gold assay results (up to 62 g/t Au) have confirmed the Thylacine prospect, located 1.5km to the ESE of Siberian Tiger, as another high-grade vein system at Leinster South.
Metal Hawk’s Managing Director Will Belbin commented:“In addition to the high-grade gold rock chips at Siberian Tiger, these outstanding new assay results from Thylacine and Tysons suggest that we are on the verge of multiple significant gold discoveries at Leinster South. It is incredible that there has not been any previous gold exploration, sampling or drilling at any these prospects. This is a huge opportunity for Metal Hawk and I believe there is potential for a new high-grade gold camp at Leinster South.”
Figure 1. Leinster South project; main prospects, rock chip results, magnetics (TMI)
THYLACINE
The Thylacine prospect is located approximately 1.5km ESE of Siberian Tiger on the parallel northern ESE trending greenstone belt. Initial rock chip samples from Thylacine have returned several high grade gold assays in multiple sub-parallel NW trending quartz veins. A total of 12 mineralised quartz veins have been mapped and broadly sampled, with seven samples grading greater than 10 g/t Au. The average grade of the 38 available quartz vein sample assays is 7 g/t Au. Additionally, ten rock chip assay results are pending that cover the northwestern two veins at the prospect. The mineralisation at Thylacine is very similar to Siberian Tiger, with abundant iron oxides often forming sheets or banding (stripes) and local zones of brecciation. High grade results from initial sampling at Thylacine are shown on Figure 2 below (for a full list of results see Table 1).
Figure 2. Thylacine Prospect – rock chip results over magnetics. Pending assays shown as white dots.
Figure 3. Thylacine rock chip sample 24DR611 grading 62.3 g/t Au
Figure 4. Thylacine prospect quartz vein outcrop, looking SE (parallel to the typical 1500 strike of veins)
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B2Gold Reports Q3 2024 Results; On Track to Meet Total 2024 Gold Production Revised Guidance; Year-To-Date Cash Operating Costs within Annual Guidance Range and Year-To-Date All-In Sustaining Costs Below Revised Annual Guidance Range
B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) ("B2Gold" or the "Company") announces its operational and financial results for the third quarter of 2024. All dollar figures are in United States dollars unless otherwise indicated.
2024 Third Quarter Highlights
- Total gold production of 180,553 ounces : Total gold production in the third quarter of 2024 was 180,553 ounces. At the Fekola Mine, production was lower than expected due to the delayed timing of mining high-grade ore and by lower than anticipated equipment productivity and inclement weather throughout the quarter that reduced the mined volumes of high-grade ore. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability at Fekola, reducing tonnes mined in the first and second quarters of 2024, which affected the availability of higher-grade ore for the third quarter of 2024. Masbate and Otjikoto both continued to outperform expectations in the third quarter.
- Total consolidated cash operating costs of $1,061 per gold ounce produced : Total consolidated cash operating costs ( see "Non-IFRS Measures" ) were $1,061 per gold ounce produced during the third quarter of 2024. Total consolidated cash operating costs of $865 per gold ounce produced for the first nine months of 2024 are at the mid-point of the Company's annual guidance range.
- Total consolidated all-in sustaining costs of $1,650 per gold ounce sold : Total consolidated all-in sustaining costs (see "Non-IFRS Measures" ) were $1,650 per gold ounce sold for the third quarter of 2024. Total consolidated all-in sustaining costs of $1,405 per gold ounce sold for the first nine months of 2024 are below the Company's revised annual guidance range.
- Attributable net loss of $0.48 per share; adjusted attributable net income of $0.02 per share : Net loss attributable to the shareholders of the Company in the third quarter of 2024 of $634 million ($0.48 per share), predominantly due to a non-cash impairment charge on the Goose Project as a result of the previously announced construction capital increases (see "Goose Project Development"). Adjusted net income (see "Non-IFRS Measures" ) attributable to the shareholders of the Company was $29 million ($0.02 per share). Adjusted net income attributable to the shareholders of the Company in the third quarter was negatively impacted by one-time tax audit accruals of $30 million related to the agreement between the Company and the State of Mali in connection with the ongoing operation and governance of the Fekola Complex.
- Operating cash flow before working capital adjustments of $118 million : Cash flow provided by operating activities before working capital adjustments was $118 million in the third quarter of 2024.
- Strong financial position and liquidity : At September 30, 2024, the Company had cash and cash equivalents of $431 million and working capital (defined as current assets less current liabilities) of $419 million.
- Q4 2024 dividend of $0.04 per share declared : On November 6, 2024, B2Gold's Board of Directors declared a cash dividend for the fourth quarter of 2024 of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.
- Goose Project construction and development remains on schedule for first gold pour in Q2 2025 : All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 cubic meters ("m 3 ") of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road ("WIR") campaign to the Marine Laydown Area ("MLA") from global locations.
- Memorandum of Understanding with the State of Mali relating to the Fekola Complex: On September 11, 2024, the Company announced that it had entered into a Memorandum of Understanding (the "MOU Agreement") with the State of Mali (the "State") in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine (owned 80% by B2Gold and 20% by the State of Mali) and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase for Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.
Third Quarter 2024 Results
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue ($ in thousands) | 448,229 | 477,888 | 1,402,242 | 1,422,298 |
Net (loss) income ($ in thousands) | (631,032 ) | (34,770) | (617,328 ) | 158,984 |
(Loss) earnings per share – basic (1) ($/ share) | (0.48 ) | (0.03) | (0.47 ) | 0.10 |
(Loss) earnings per share – diluted (1) ($/ share) | (0.48 ) | (0.03) | (0.47 ) | 0.10 |
Cash (used) provided by operating activities ($ thousands) | (16,099 ) | 110,204 | 757,060 | 509,010 |
Average realized gold price ($/ ounce) | 2,483 | 1,920 | 2,285 | 1,929 |
Adjusted net income (1)(2) ($ in thousands) | 29,157 | 64,840 | 189,109 | 256,506 |
Adjusted earnings per share (1)(2) – basic ($) | 0.02 | 0.05 | 0.14 | 0.21 |
Consolidated operations results: | ||||
Gold sold (ounces) | 180,525 | 248,889 | 613,731 | 737,139 |
Gold produced (ounces) | 180,553 | 225,052 | 599,133 | 721,732 |
Production costs ($ in thousands) | 192,408 | 171,425 | 500,452 | 451,791 |
Cash operating costs (2) ($/ gold ounce sold) | 1,066 | 689 | 815 | 613 |
Cash operating costs (2) ($/ gold ounce produced) | 1,061 | 741 | 852 | 638 |
Total cash costs (2) ($/ gold ounce sold) | 1,248 | 827 | 972 | 752 |
All-in sustaining costs (2) ($/ gold ounce sold) | 1,650 | 1,273 | 1,400 | 1,177 |
Operations results including equity investment in Calibre: | ||||
Gold sold (ounces) | 180,525 | 266,616 | 633,375 | 787,805 |
Gold produced (ounces) | 180,553 | 242,838 | 618,777 | 772,395 |
Production costs ($ in thousands) | 192,408 | 188,216 | 525,578 | 502,162 |
Cash operating costs (2) ($/ gold ounce sold) | 1,066 | 706 | 830 | 637 |
Cash operating costs (2) ($/ gold ounce produced) | 1,061 | 755 | 865 | 661 |
Total cash costs (2) ($/ gold ounce sold) | 1,248 | 840 | 984 | 772 |
All-in sustaining costs (2) ($/ gold ounce sold) | 1,650 | 1,272 | 1,405 | 1,182 |
(1) Attributable to the shareholders of the Company.
(2) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company's financial statements, refer to "Non-IFRS Measures".
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. At September 30, 2024, the Company had cash and cash equivalents of $431 million (December 31, 2023 - $307 million) and working capital (defined as current assets less current liabilities) of $419 million (December 31, 2023 - $397 million). During the quarter ended September 30, 2024, the Company drew down $200 million on the Company's $700 million revolving credit facility, leaving $500 million remaining available for future draw downs.
Fourth Quarter 2024 Dividend
On November 6, 2024, B2Gold's Board of Directors declared a cash dividend for the fourth quarter of 2024 (the "Q4 2024 Dividend") of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.
In 2023, the Company implemented a Dividend Reinvestment Plan ("DRIP"). For the purposes of the Q4 2024 Dividend, the Company is pleased to announce that a discount of 3% will be applied to calculate the Average Market Price (as defined in the DRIP) of its common shares issued from treasury. However, the Company may, from time to time, in its discretion, change or eliminate any applicable discount, which would be publicly announced, all in accordance with the terms and conditions of the DRIP. Participation in the DRIP is optional. In order to participate in the DRIP in time for the Q4 2024 Dividend, registered shareholders must deliver a properly completed enrollment form to Computershare Trust Company of Canada by no later than 4:00 p.m. (Toronto time) on December 5, 2024. Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution, or other intermediary through which they hold common shares well in advance of the above date for instructions on how to enroll in the DRIP.
This dividend is designated as an "eligible dividend" for the purposes of the Income Tax Act (Canada). Dividends paid by B2Gold to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes.
The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with B2Gold's constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.
For more information regarding the DRIP and enrollment in the DRIP, please refer to the Company's website at https://www.b2gold.com/investors/stock_info/ .
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
The Company has filed a registration statement relating to the DRIP with the U.S. Securities and Exchange Commission that may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at http://www.sec.gov/EDGAR or by contacting the Company using the contact information at the end of this news release.
Operations
Fekola Complex - Mali
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue ($ in thousands) | 194,988 | 292,375 | 721,898 | 888,272 |
Gold sold (ounces) | 78,889 | 152,239 | 318,005 | 460,139 |
Average realized gold price ($/ ounce) | 2,472 | 1,921 | 2,270 | 1,930 |
Tonnes of ore milled | 2,466,087 | 2,392,829 | 7,449,327 | 6,988,763 |
Grade (grams/ tonne) | 1.07 | 1.82 | 1.40 | 2.17 |
Recovery (%) | 92.7 | 92.1 | 92.7 | 91.9 |
Gold production (ounces) | 78,207 | 128,942 | 308,931 | 447,233 |
Production costs ($ in thousands) | 109,857 | 93,388 | 276,443 | 250,294 |
Cash operating costs (1) ($/ gold ounce sold) | 1,393 | 613 | 869 | 544 |
Cash operating costs (1) ($/ gold ounce produced) | 1,434 | 688 | 935 | 561 |
Total cash costs (1) ($/ gold ounce sold) | 1,653 | 773 | 1,066 | 706 |
All-in sustaining costs (1) ($/ gold ounce sold) | 2,287 | 1,261 | 1,583 | 1,125 |
Capital expenditures ($ in thousands) | 64,464 | 83,166 | 198,205 | 211,112 |
Exploration ($ in thousands) | 996 | — | 3,136 | 1,706 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company's financial statements, refer to "Non-IFRS Measures".
The Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) produced 78,207 ounces of gold in the third quarter of 2024, below expectations due to the delayed timing of mining of high-grade ore resulting in less high-grade ore processed during the quarter. For the third quarter of 2024, mill feed grade was 1.07 grams per tonne ("g/t"), mill throughput was 2.47 million tonnes, and gold recovery averaged 92.7%. Lower than anticipated equipment productivity and inclement weather throughout the quarter impacted the mined volumes of high-grade ore during the third quarter of 2024. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability for the first nine months of 2024, reducing tonnes mined during the first and second quarters of 2024, which affected the availability of higher-grade ore of Phase 7 of the Fekola pit resulting in less high-grade ore processed during the third quarter of 2024. The damaged machine has been replaced and the new unit operated for the full third quarter of 2024. The reduction in mining rates experienced in the first nine months of 2024 is expected to continue to impact the availability of higher-grade ore from Phase 7 of the Fekola pit during the fourth quarter of 2024 resulting in an expected decrease in Fekola production as compared to initial production estimates. Mining and processing of these ounces is now expected in the first quarter of 2025. Despite short term variations, overall, ore volumes and grades continue to reconcile relatively well with modelled values.
The Fekola Mine's cash operating costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $1,434 per gold ounce produced ($1,393 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were higher than expected as a result of lower than anticipated gold production during the third quarter, partially offset by lower fuel costs, higher mill throughput, higher gold recovery and lower mining costs due to lower than expected mined tonnage.
All-in sustaining costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $2,287 per gold ounce sold. All-in sustaining costs were higher than expected as a result of higher than anticipated production costs per gold ounce sold, lower than expected gold ounces sold, higher than anticipated sustaining capital expenditures due to the timing of expenditures and higher gold royalties resulting from a higher than anticipated average realized gold price.
Capital expenditures in the third quarter of 2024 totalled $64 million primarily consisting of $12 million for deferred stripping, $10 million for mobile equipment purchases and rebuilds, $7 million for the construction of a new tailings storage facility, $20 million for Fekola underground development and $11 million for solar plant expansion. All solar panels, inverters, transformers and the tracking system have been installed for the solar plant expansion and the solar field was energized on September 29, 2024. Commissioning has continued with final completion of the solar plant expansion expected by the end of November 2024.
As a result of the delay in accessing higher-grade ounces from Phase 7 of the Fekola pit, production from the Fekola Complex is expected to be towards the low end of Fekola's revised guidance range of between 420,000 and 450,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be towards the upper ends of their respective revised guidance ranges of between $870 and $930 per ounce and $1,510 and $1,570 per ounce.
Fekola Regional Development
The Fekola Complex is comprised of the Fekola Mine (Medinandi permit hosting the Fekola and Cardinal pits and Fekola underground) and Fekola Regional (Anaconda Area (Bantako, Menankoto, and Bakolobi permits) and the Dandoko permit).
The development of Fekola Regional is expected to demonstrate positive economics through the enhancement of the overall production profile and the extension of mine life of the Fekola Complex. Based on B2Gold's preliminary planning, Fekola Regional could provide selective higher-grade saprolite material (average annual grade of up to 2.2 g/t gold) to be trucked approximately 20 kilometers ("km") and fed into the Fekola mill at a rate of up to 1.5 million tonnes per annum.
On September 11, 2024, the Company announced the MOU Agreement with the State in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase of Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.
Masbate Mine – The Philippines
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue ($ in thousands) | 120,115 | 97,556 | 328,165 | 265,839 |
Gold sold (ounces) | 47,960 | 50,950 | 142,260 | 137,300 |
Average realized gold price ($/ ounce) | 2,504 | 1,915 | 2,307 | 1,936 |
Tonnes of ore milled | 2,197,112 | 2,155,170 | 6,409,631 | 6,224,572 |
Grade (grams/ tonne) | 0.98 | 1.01 | 0.97 | 0.99 |
Recovery (%) | 72.4 | 73.0 | 72.4 | 73.6 |
Gold production (ounces) | 50,215 | 51,170 | 144,512 | 147,012 |
Production costs ($ in thousands) | 42,697 | 44,056 | 123,070 | 117,219 |
Cash operating costs (1) ($/ gold ounce sold) | 890 | 865 | 865 | 854 |
Cash operating costs (1) ($/ gold ounce produced) | 811 | 834 | 839 | 844 |
Total cash costs (1) ($/ gold ounce sold) | 1,039 | 993 | 1,002 | 979 |
All-in sustaining costs (1) ($/ gold ounce sold) | 1,167 | 1,124 | 1,174 | 1,152 |
Capital expenditures ($ in thousands) | 5,192 | 5,896 | 20,229 | 20,947 |
Exploration ($ in thousands) | 1,290 | 774 | 3,039 | 2,741 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company's financial statements, refer to "Non-IFRS Measures".
The Masbate Mine in the Philippines continued its strong performance with third quarter of 2024 gold production of 50,215 ounces, above expectations due to higher mill throughput and higher than expected mill feed grade. For the third quarter of 2024, mill feed grade was 0.98 g/t, mill throughput was 2.20 million tonnes, and gold recovery averaged 72.4%, lower than expected. Lower gold recovery in the third quarter was a result of mining additional lower recovery high-grade sulphide ore during the third quarter. Actual gold recovery for the third quarter of 2024 remained in line with modeled recovery values for the ore mined.
The Masbate Mine's cash operating costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $811 per gold ounce produced ($890 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were significantly lower than expected as a result of higher gold production, lower than anticipated mining and processing costs, higher mill productivity and lower fuel costs.
All-in sustaining costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $1,167 per ounce sold. All-in sustaining costs for the third quarter of 2024 were significantly lower than expected as a result of lower than anticipated production costs per gold ounce sold, higher than expected gold ounces sold and lower than expected sustaining capital expenditures.
Capital expenditures in the third quarter of 2024 totalled $5 million, primarily consisting of $2 million for mobile equipment purchases and rebuilds and $1 million for expansion of the existing tailings storage facility.
The Masbate Mine is expected to produce between 175,000 and 195,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be at or below the low end of their respective revised guidance ranges of between $910 and $970 per ounce and $1,260 and $1,320 per ounce.
Otjikoto Mine - Namibia
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue ($ in thousands) | 133,126 | 87,957 | 352,179 | 268,187 |
Gold sold (ounces) | 53,676 | 45,700 | 153,466 | 139,700 |
Average realized gold price ($/ ounce) | 2,480 | 1,925 | 2,295 | 1,920 |
Tonnes of ore milled | 872,722 | 855,740 | 2,549,847 | 2,554,747 |
Grade (grams/ tonne) | 1.88 | 1.66 | 1.80 | 1.57 |
Recovery (%) | 98.8 | 98.4 | 98.6 | 98.6 |
Gold production (ounces) | 52,131 | 44,940 | 145,690 | 127,487 |
Production costs ($ in thousands) | 39,854 | 33,981 | 100,939 | 84,278 |
Cash operating costs (1) ($/ gold ounce sold) | 742 | 744 | 658 | 603 |
Cash operating costs (1) ($/ gold ounce produced) | 740 | 785 | 687 | 671 |
Total cash costs (1) ($/ gold ounce sold) | 841 | 820 | 749 | 680 |
All-in sustaining costs (1) ($/ gold ounce sold) | 896 | 1,178 | 963 | 1,074 |
Capital expenditures ($ in thousands) | 609 | 13,290 | 26,128 | 46,266 |
Exploration ($ in thousands) | 1,888 | 963 | 5,191 | 2,453 |
(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company's financial statements, refer to "Non-IFRS Measures".
The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, continued to outperform during the third quarter of 2024, producing 52,131 ounces of gold, above expectations as a result of higher than anticipated mill feed grade and higher than expected mill throughput. For the third quarter of 2024, mill feed grade was 1.88 g/t, mill throughput was 0.87 million tonnes, and gold recovery averaged 98.8%. Ore production from the Wolfshag underground mine for the third quarter of 2024 averaged over 1,800 tonnes per day at an average grade of 3.64 g/t gold.
The Otjikoto Mine's cash operating costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $740 per gold ounce produced ($742 per ounce gold sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were lower than anticipated due to higher than expected gold production in the third quarter of 2024.
All-in sustaining costs (see "Non-IFRS Measures" ) for the third quarter of 2024 were $896 per gold ounce sold. All-in sustaining costs for the third quarter of 2024 were lower than expected as a result of lower than expected cash operating costs and higher gold ounces sold, partially offset by higher gold royalties due to a higher than anticipated average realized gold price.
Capital expenditures for the third quarter of 2024 totalled $1 million for Wolfshag underground mine development.
The Otjikoto Mine is expected to produce between 185,000 and 205,000 ounces of gold in 2024 at cash operating costs of between $685 and $745 per ounce and all-in sustaining costs at or below the lower end of its guidance range of between $960 and $1,020 per ounce.
Goose Project Development
The Back River Gold District consists of five mineral claims blocks along an 80 km belt. Construction is underway at the most advanced project in the district, the Goose Project, and has been de-risked with significant infrastructure currently in place.
B2Gold recognizes that respect and collaboration with the Kitikmeot Inuit Association ("KIA") is central to the license to operate in the Back River Gold District and will continue to prioritize developing the project in a manner that recognizes Inuit priorities, addresses concerns, and brings long-term socio-economic benefits to the Kitikmeot Region. B2Gold looks forward to continuing to build on its strong collaboration with the KIA and Kitikmeot Communities.
As announced in May 2024, development of the open pit and underground was slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and the prioritization of critical path construction activities. An additional three months of mining was added to the schedule to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit. With the schedule change, the mill is expected to start wet commissioning in the second quarter of 2025 with ramp up to full production in the third quarter of 2025. The Company continues to estimate that gold production in calendar year 2025 will be between 120,000 ounces and 150,000 ounces. The updated production profile has resulted in the Company now estimating that average annual gold production for the six year period from 2026 to 2031 will increase to be in excess of 310,000 ounces per year. The Company remains on track to complete an updated Goose Project life of mine plan by the end of the first quarter of 2025.
B2Gold successfully completed the 2024 WIR campaign in the second quarter of 2024 and delivered all necessary materials from the MLA to complete the construction of the Goose Project. All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 m 3 of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 WIR campaign to the MLA from global locations. Sealift offloading performance significantly increased throughout the 2024 sealift due to a newly constructed barge ramp. Current activities at the MLA now include continued maintenance and preparation of the WIR construction and haulage fleet and staging all materials for shipment on the 2025 WIR to the Goose Project site.
Development of the open pit and underground remain the Company's primary focus to ensure that adequate material is available for mill startup and that the Echo pit is available for tailings placement. Mining of the Echo pit is meeting production targets and is anticipated to be ready to receive tailings when the mill starts. The underground mine remains on schedule for commencement of production by the end of the second quarter of 2025.
In the third quarter and first nine months of 2024, the Company incurred cash expenditures of $121 million (C$165 million) and $366 million (C$498 million), respectively, for the Goose Project on construction and mine development activities and $110 million (C$150 million) and $155 million (C$211 million), respectively, on supplies inventory.
As announced on September 12, 2024, the total Goose Project construction, mine development, and sustaining capital cash expenditures estimate (the "Total Goose Project Construction and Mine Development Cost") before first gold production estimate is C$1,540 million, a C$290 million (or 23%) increase from the previous estimate from January 2024. Approximately 52% (or C$150 million) of the increase can be attributed to the one quarter delay in first gold production previously disclosed, combined with the acceleration of capital items that were previously anticipated to occur after first gold production. The acceleration of certain capital items is expected to make the Goose Project a more reliable and de-risked operation upon mill startup. The accelerated capital items include accelerated purchases of mining equipment versus the previous estimate to ensure continued growth in mining rates through 2025, the building of an accommodation complex at the MLA which will reduce ongoing annual costs associated with running the WIR, the construction of critical infrastructure at the Goose Project site, inclusive of warehousing, maintenance, mine dry facility, camp facility expansion, and the design acceleration of a reverse osmosis plant to optimize water management and lower ongoing operating costs. Approximately 24% (or C$70 million) of the increase in the Total Goose Project Construction and Mine Development Cost can be attributed to the increased cost of the logistics of shipping materials to the Goose Project site.
As a result of the previously announced increases to the Total Goose Project Construction and Mine Development Cost before first gold production estimate, the Company incurred a non-cash impairment of $661 million on the Goose Project carrying value in the third quarter of 2024.
Gramalote Project Development
On June 18, 2024, the Company announced the results of a positive Preliminary Economic Assessment(" PEA") on its 100% owned Gramalote Project located in the Department of Antioquia, Colombia. The PEA outlines a significant production profile with average annual gold production of 185,000 ounces over a 12.5 year project life with a low-cost structure and favorable metallurgical characteristics. Additionally, the PEA outlines strong project economics with an after-tax NPV 5% of $778 million and an after-tax internal rate of return of 20.6%, with a project payback on pre-production capital of 3.1 years.
The estimated pre-production capital cost for the project is $807 million (including approximately $93 million for mining equipment and $63 million for contingency). A robust amount of historical drilling and engineering studies have been completed on the Gramalote Project, which significantly de-risks future project development. Based on the positive results from the PEA, B2Gold believes that the Gramalote Project has the potential to become a medium-scale, low-cost open pit gold mine.
B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025 and a $10 million budget has been approved by the Board. Due to the work completed for previous studies, the work remaining to finalize a feasibility study for the updated medium-scale project is not expected to be extensive. The main work programs for the feasibility study include geotechnical and environmental site investigations for the processing plant and waste dump footprints, as well as capital and operating cost estimates.
The Gramalote Project will continue to advance resettlement programs, establish coexistence programs for small miners, work on health, safety and environmental projects and continue to work with the government and local communities on social programs.
Due to the desired modifications to the processing plant and infrastructure locations, a Modified Environment Impact Study is required. B2Gold has commenced work on the modifications to the Environment Impact Study and expect it to be completed and submitted shortly following the completion of the feasibility study. If the final economics of the feasibility study are positive and B2Gold makes the decision to develop the Gramalote Project as an open pit gold mine, B2Gold would utilize its proven internal mine construction team to build the mine and mill facilities.
Outlook
Total gold production for 2024 is forecast to be towards the low end of the Company's guidance range of between 800,000 and 870,000 ounces, including 20,000 ounces of attributable production from Calibre Mining Corp ("Calibre").
Gold production in 2025 is expected to increase significantly relative to 2024 as a result of the scheduled mining and processing of higher-grade ore from the Fekola and Cardinal pits made accessible by the meaningful stripping campaign that has been undertaken throughout 2024, the expected full year of contribution from Fekola Regional, which is anticipated to contribute between 80,000 and 100,000 ounces of additional production, and commencement of mining the higher-grade Fekola underground (subject to receipt of necessary permits for Fekola Regional and Fekola underground).
Upon completion of construction activities at the Goose Project, the mine is expected to commence gold production in the second quarter of 2025 and contribute between 120,000 and 150,000 ounces of gold in calendar year 2025. Over the first six full calendar years of operation from 2026 to 2031, the average annual gold production for the Goose Project is estimated to be in excess of 310,000 ounces of gold per year.
The positive PEA results on the Company's 100% owned Gramalote Project, located in the Department of Antioquia, Colombia, outlines a significant production profile with average annual gold production of 234,000 ounces per year for the first five years of production, and strong project economics over a 12.5 year project life. As a result, B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025 and a $10 million budget has been approved by the Board.
Following the release of an initial Inferred Mineral Resource Estimate for the Springbok Zone, the southernmost shoot of the recently discovered Antelope deposit, located approximately three km south of the Otjikoto Phase 5 open pit at the Otjikoto Mine in Namibia, in the second quarter of 2024, the Company has commenced a PEA which is expected to be completed in the first half of 2025. Subject to receipt of a positive PEA and permit, mining of the Springbok Zone, coupled with the exploration potential of the greater Antelope deposit, could begin to contribute to gold production at Otjikoto in 2026. The Antelope deposit has the potential to supplement the processing of low-grade stockpiles at the Otjikoto Mine through 2031, with the goal of increasing gold production levels to over 100,000 ounces per year from 2026 through 2031.
The Company's ongoing strategy is to continue to maximize profitable production from its existing mines, maintain a strong financial position, realize the significant potential increase in gold production from the Company's existing development projects, continue exploration programs across the Company's robust land packages, evaluate new exploration, development and production opportunities and continue to return capital to shareholders.
Third Quarter 2024 Financial Results - Conference Call Details
B2Gold executives will host a conference call to discuss the results on Thursday, November 7, 2024, at 8:00 am PT / 11:00 am ET.
Participants may register for the conference call here: registration link . Upon registering, participants will receive a calendar invitation by email with dial in details and a unique PIN. This will allow participants to bypass the operator queue and connect directly to the conference. Registration will remain open until the end of the conference call. Participants may also dial in using the numbers below:
- Toll-free in U.S. and Canada: +1 (844) 763-8274
- All other callers: +1 (647) 484-8814
The conference call will be available for playback for two weeks by dialing toll-free in the U.S. and Canada: +1 (855) 669-9658, replay access code 4078435. All other callers: +1 (412) 317-0088, replay access code 4078435.
About B2Gold
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland. B2Gold forecasts total consolidated gold production of between 800,000 and 870,000 ounces in 2024.
Qualified Persons
Bill Lytle, Senior Vice President and Chief Operating Officer, a qualified person under NI 43-101, has approved the scientific and technical information related to operations matters contained in this news release.
Andrew Brown, P. Geo., Vice President, Exploration, a qualified person under NI 43-101, has approved the scientific and technical information related to exploration and mineral resource matters contained in this news release.
ON BEHALF OF B2GOLD CORP.
"Clive T. Johnson"
President and Chief Executive Officer
Source: B2Gold Corp.
The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in this news release.
Production results and production guidance presented in this news release reflect total production at the mines B2Gold operates on a 100% project basis. Please see our Annual Information Form dated March 14, 2024 for a discussion of our ownership interest in the mines B2Gold operates.
This news release includes certain "forward-looking information" and "forward-looking statements" (collectively forward-looking statements") within the meaning of applicable Canadian and United States securities legislation, including: projections; outlook; guidance; forecasts; estimates; and other statements regarding future or estimated financial and operational performance, gold production and sales, revenues and cash flows, and capital costs (sustaining and non-sustaining) and operating costs, including projected cash operating costs and AISC, and budgets on a consolidated and mine by mine basis; future or estimated mine life, metal price assumptions, ore grades or sources, gold recovery rates, stripping ratios, throughput, ore processing; statements regarding anticipated exploration, drilling, development, construction, permitting and other activities or achievements of B2Gold; and including, without limitation: remaining well positioned for continued strong operational and financial performance in 2024; projected gold production, cash operating costs and AISC on a consolidated and mine by mine basis in 2024; total consolidated gold production of between 800,000 and 870,000 ounces (including 20,000 attributable ounces from Calibre) in 2024, with cash operating costs of between $835 and $895 per ounce and AISC of between $1,420 and $1,480 per ounce; B2Gold's continued prioritization of developing the Goose Project in a manner that recognizes Indigenous input and concerns and brings long-term socio-economic benefits to the area; the Goose Project capital cost being approximately C$1,190 million and the net cost of open pit and underground development, deferred stripping, and sustaining capital expenditures to be incurred prior to first gold production being approximately C$350 million and the cost for reagents and other working capital items being C$330 million; the Goose Project producing approximately 310,000 ounces of gold per year for the first six years; the potential for first gold production in the second quarter of 2025 from the Goose Project and the estimates of such production; trucking of selective higher-grade saprolite material from the Anaconda Area to the Fekola mill having the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources; the receipt of the exploitation permit for Fekola Regional and Fekola Regional production expected to commence at the beginning of 2025; the receipt of a permit for Fekola underground and Fekola underground commencing operation in mid-2025; the potential for the Antelope deposit to be developed as an underground operation and contribute gold during the low-grade stockpile processing in 2026 through 2031; the results and estimates in the Gramalote PEA, including the project life, average annual gold production, processing rate, capital cost, net present value, after-tax net cash flow, after-tax internal rate of return and payback; the timing and results of a feasibility study on the Gramalote Project; and the potential to develop the Gramalote Project as an open pit gold mine. All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as "expect", "plan", "anticipate", "project", "target", "potential", "schedule", "forecast", "budget", "estimate", "intend" or "believe" and similar expressions or their negative connotations, or that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond B2Gold's control, including risks associated with or related to: the volatility of metal prices and B2Gold's common shares; changes in tax laws; the dangers inherent in exploration, development and mining activities; the uncertainty of reserve and resource estimates; not achieving production, cost or other estimates; actual production, development plans and costs differing materially from the estimates in B2Gold's feasibility and other studies; the ability to obtain and maintain any necessary permits, consents or authorizations required for mining activities; environmental regulations or hazards and compliance with complex regulations associated with mining activities; climate change and climate change regulations; the ability to replace mineral reserves and identify acquisition opportunities; the unknown liabilities of companies acquired by B2Gold; the ability to successfully integrate new acquisitions; fluctuations in exchange rates; the availability of financing; financing and debt activities, including potential restrictions imposed on B2Gold's operations as a result thereof and the ability to generate sufficient cash flows; operations in foreign and developing countries and the compliance with foreign laws, including those associated with operations in Mali, Namibia, the Philippines and Colombia and including risks related to changes in foreign laws and changing policies related to mining and local ownership requirements or resource nationalization generally; remote operations and the availability of adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory, political and country risks, including local instability or acts of terrorism and the effects thereof; the reliance upon contractors, third parties and joint venture partners; the lack of sole decision-making authority related to Filminera Resources Corporation, which owns the Masbate Project; challenges to title or surface rights; the dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; competition with other mining companies; community support for B2Gold's operations, including risks related to strikes and the halting of such operations from time to time; conflicts with small scale miners; failures of information systems or information security threats; the ability to maintain adequate internal controls over financial reporting as required by law, including Section 404 of the Sarbanes-Oxley Act; compliance with anti-corruption laws, and sanctions or other similar measures; social media and B2Gold's reputation; risks affecting Calibre having an impact on the value of the Company's investment in Calibre, and potential dilution of our equity interest in Calibre; as well as other factors identified and as described in more detail under the heading "Risk Factors" in B2Gold's most recent Annual Information Form, B2Gold's current Form 40-F Annual Report and B2Gold's other filings with Canadian securities regulators and the U.S. Securities and Exchange Commission (the "SEC"), which may be viewed at www.sedar.com and www.sec.gov, respectively (the "Websites"). The list is not exhaustive of the factors that may affect B2Gold's forward-looking statements.
B2Gold's forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time. These assumptions and factors include, but are not limited to, assumptions and factors related to B2Gold's ability to carry on current and future operations, including: development and exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; B2Gold's ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.
B2Gold's forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date hereof. B2Gold does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities B2Gold will derive therefrom. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.
Non-IFRS Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including "cash operating costs" and "all-in sustaining costs" (or "AISC"). Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and should be read in conjunction with B2Gold's consolidated financial statements. Readers should refer to B2Gold's Management Discussion and Analysis, available on the Websites, under the heading "Non-IFRS Measures" for a more detailed discussion of how B2Gold calculates certain of such measures and a reconciliation of certain measures to IFRS terms.
Cautionary Statement Regarding Mineral Reserve and Resource Estimates
The disclosure in this news release was prepared in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource and reserve information contained or referenced in this news release may not be comparable to similar information disclosed by public companies subject to the technical disclosure requirements of the SEC. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 (Expressed in thousands of United States dollars, except per share amounts) (Unaudited) | ||||||||||||||||
For the three months ended Sept. 30, 2024 | For the three months ended Sept. 30, 2023 | For the nine months ended Sept. 30, 2024 | For the nine months ended Sept. 30, 2023 | |||||||||||||
Gold revenue | $ | 448,229 | $ | 477,888 | $ | 1,402,242 | $ | 1,422,298 | ||||||||
Cost of sales | ||||||||||||||||
Production costs | (192,408 | ) | (171,425 | ) | (500,452 | ) | (451,791 | ) | ||||||||
Depreciation and depletion | (88,051 | ) | (101,568 | ) | (273,505 | ) | (293,388 | ) | ||||||||
Royalties and production taxes | (32,929 | ) | (34,389 | ) | (96,045 | ) | (102,661 | ) | ||||||||
Total cost of sales | (313,388 | ) | (307,382 | ) | (870,002 | ) | (847,840 | ) | ||||||||
Gross profit | 134,841 | 170,506 | 532,240 | 574,458 | ||||||||||||
General and administrative | (13,283 | ) | (13,064 | ) | (40,389 | ) | (41,170 | ) | ||||||||
Share-based payments | (5,069 | ) | (4,289 | ) | (14,815 | ) | (15,734 | ) | ||||||||
Impairment of long-lived assets | (661,160 | ) | (111,597 | ) | (876,376 | ) | (116,482 | ) | ||||||||
Gain on sale of mining interests | 7,453 | — | 56,115 | — | ||||||||||||
Gain on sale of shares in associate | — | — | 16,822 | — | ||||||||||||
Non-recoverable input taxes | (3,353 | ) | (1,191 | ) | (10,352 | ) | (4,237 | ) | ||||||||
Share of net (loss) income of associates | (98 | ) | 5,561 | 4,581 | 17,549 | |||||||||||
Foreign exchange gains (losses) | 5,893 | (11,739 | ) | (7,842 | ) | (14,588 | ) | |||||||||
Community relations | (855 | ) | (1,158 | ) | (1,786 | ) | (3,883 | ) | ||||||||
Write-down of mining interests | — | (565 | ) | (636 | ) | (17,022 | ) | |||||||||
Restructuring charges | — | (5,071 | ) | — | (12,151 | ) | ||||||||||
Other (expense) income | (26,550 | ) | 130 | (34,304 | ) | (4,159 | ) | |||||||||
Operating (loss) income | (562,181 | ) | 27,523 | (376,742 | ) | 362,581 | ||||||||||
Interest and financing expense | (6,966 | ) | (3,190 | ) | (24,002 | ) | (9,032 | ) | ||||||||
Interest income | 4,011 | 3,887 | 17,137 | 15,741 | ||||||||||||
Change in fair value of gold stream | (1,957 | ) | 7,600 | (21,196 | ) | 6,500 | ||||||||||
Losses on dilution on associate | — | — | (8,984 | ) | — | |||||||||||
(Losses) gains on derivative instruments | (6,378 | ) | 5,667 | (5,674 | ) | 6,092 | ||||||||||
Other income (expense) | 1,777 | (951 | ) | 1,932 | (5,069 | ) | ||||||||||
(Loss) income from operations before taxes | (571,694 | ) | 40,536 | (417,529 | ) | 376,813 | ||||||||||
Current income tax, withholding and other taxes | (74,804 | ) | (68,210 | ) | (233,085 | ) | (216,155 | ) | ||||||||
Deferred income tax recovery (expense) | 15,466 | (7,096 | ) | 33,286 | (1,674 | ) | ||||||||||
Net (loss) income for the period | $ | (631,032 | ) | $ | (34,770 | ) | $ | (617,328 | ) | $ | 158,984 | |||||
Attributable to: | ||||||||||||||||
Shareholders of the Company | $ | (633,757 | ) | $ | (43,070 | ) | $ | (618,010 | ) | $ | 123,321 | |||||
Non-controlling interests | 2,725 | 8,300 | 682 | 35,663 | ||||||||||||
Net (loss) income for the period | $ | (631,032 | ) | $ | (34,770 | ) | $ | (617,328 | ) | $ | 158,984 | |||||
(Loss) earnings per share (attributable to shareholders of the Company) | ||||||||||||||||
Basic | $ | (0.48 | ) | $ | (0.03 | ) | $ | (0.47 | ) | $ | 0.10 | |||||
Diluted | $ | (0.48 | ) | $ | (0.03 | ) | $ | (0.47 | ) | $ | 0.10 | |||||
Weighted average number of common shares outstanding (in thousands) | ||||||||||||||||
Basic | 1,310,994 | 1,297,175 | 1,307,134 | 1,208,942 | ||||||||||||
Diluted | 1,310,994 | 1,297,175 | 1,307,134 | 1,213,349 |
B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 (Expressed in thousands of United States dollars) (Unaudited) | ||||||||||||||||
For the three months ended Sept. 30, 2024 | For the three months ended Sept. 30, 2023 | For the nine months ended Sept. 30, 2024 | For the nine months ended Sept. 30, 2023 | |||||||||||||
Operating activities | ||||||||||||||||
Net (loss) income for the period | $ | (631,032 | ) | $ | (34,770 | ) | $ | (617,328 | ) | $ | 158,984 | |||||
Mine restoration provisions settled | (527 | ) | (344 | ) | (1,468 | ) | (923 | ) | ||||||||
Non-cash charges, net | 749,620 | 228,448 | 1,134,534 | 462,088 | ||||||||||||
Proceeds from prepaid sales | — | — | 500,023 | — | ||||||||||||
Changes in non-cash working capital | 3,576 | (28,339 | ) | (54,148 | ) | (7,061 | ) | |||||||||
Changes in long-term inventory | (101,769 | ) | (32,296 | ) | (117,465 | ) | (36,995 | ) | ||||||||
Changes in long-term value added tax receivables | (35,967 | ) | (22,495 | ) | (87,088 | ) | (67,083 | ) | ||||||||
Cash (used) provided by operating activities | (16,099 | ) | 110,204 | 757,060 | 509,010 | |||||||||||
Financing activities | ||||||||||||||||
Drawdown of revolving credit facility | 200,000 | — | 200,000 | — | ||||||||||||
Repayment of revolving credit facility | — | — | (150,000 | ) | — | |||||||||||
Extinguishment of gold stream and construction financing obligations | — | — | — | (111,819 | ) | |||||||||||
Repayment of equipment loan facilities | (2,980 | ) | (3,448 | ) | (8,886 | ) | (9,913 | ) | ||||||||
Interest and commitment fees paid | (1,075 | ) | (1,343 | ) | (5,744 | ) | (3,463 | ) | ||||||||
Cash proceeds from stock option exercises | 569 | 6,486 | 3,014 | 12,394 | ||||||||||||
Dividends paid | (46,112 | ) | (45,378 | ) | (137,970 | ) | (140,084 | ) | ||||||||
Principal payments on lease arrangements | (2,797 | ) | (1,135 | ) | (5,385 | ) | (4,624 | ) | ||||||||
Distributions to non-controlling interests | (5,412 | ) | (13,601 | ) | (12,700 | ) | (17,881 | ) | ||||||||
Other | (512 | ) | (862 | ) | 450 | 725 | ||||||||||
Cash provided (used) by financing activities | 141,681 | (59,281 | ) | (117,221 | ) | (274,665 | ) | |||||||||
Investing activities | ||||||||||||||||
Expenditures on mining interests: | ||||||||||||||||
Fekola Mine | (64,464 | ) | (83,166 | ) | (198,205 | ) | (211,112 | ) | ||||||||
Masbate Mine | (5,192 | ) | (5,896 | ) | (20,229 | ) | (20,947 | ) | ||||||||
Otjikoto Mine | (609 | ) | (13,290 | ) | (26,128 | ) | (46,266 | ) | ||||||||
Goose Project | (120,974 | ) | (88,082 | ) | (366,129 | ) | (156,694 | ) | ||||||||
Fekola Regional Properties | (3,992 | ) | (16,535 | ) | (13,417 | ) | (46,345 | ) | ||||||||
Gramalote Project | (3,357 | ) | (854 | ) | (10,227 | ) | (2,568 | ) | ||||||||
Other exploration | (18,752 | ) | (17,770 | ) | (39,164 | ) | (58,313 | ) | ||||||||
Cash proceeds on sale of investment in associate | — | — | 100,302 | — | ||||||||||||
Cash proceeds on sale of long-term investment | 58,627 | — | 77,288 | — | ||||||||||||
Purchase of shares in associates | (9,089 | ) | — | (9,089 | ) | — | ||||||||||
Cash proceeds from sale of mining interests | 7,500 | — | 7,500 | — | ||||||||||||
Purchase of long-term investments | (664 | ) | (879 | ) | (6,916 | ) | (32,759 | ) | ||||||||
Funding of reclamation accounts | (2,290 | ) | (2,189 | ) | (4,995 | ) | (4,829 | ) | ||||||||
Cash acquired on acquisition of Sabina Gold & Silver Corp. | — | — | — | 38,083 | ||||||||||||
Transaction costs paid on acquisition of Sabina Gold & Silver Corp. | — | — | — | (6,672 | ) | |||||||||||
Other | (89 | ) | (6,286 | ) | (1,925 | ) | (9,498 | ) | ||||||||
Cash used by investing activities | (163,345 | ) | (234,947 | ) | (511,334 | ) | (557,920 | ) | ||||||||
(Decrease) increase in cash and cash equivalents | (37,763 | ) | (184,024 | ) | 128,505 | (323,575 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,036 | (12,614 | ) | (4,287 | ) | (18,802 | ) | |||||||||
Cash and cash equivalents, beginning of period | 466,840 | 506,207 | 306,895 | 651,946 | ||||||||||||
Cash and cash equivalents, end of period | $ | 431,113 | $ | 309,569 | $ | 431,113 | $ | 309,569 |
B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (Expressed in thousands of United States dollars) (Unaudited) | ||||||||
As at September 30, 2024 | As at December 31, 2023 | |||||||
Assets | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 431,113 | $ | 306,895 | ||||
Accounts receivable, prepaids and other | 54,097 | 27,491 | ||||||
Value-added and other tax receivables | 58,157 | 29,848 | ||||||
Inventories | 378,121 | 346,495 | ||||||
921,488 | 710,729 | |||||||
Long-term investments | 89,045 | 86,007 | ||||||
Value-added tax receivables | 282,803 | 199,671 | ||||||
Mining interests | 3,096,562 | 3,563,490 | ||||||
Investment in associates | 93,368 | 134,092 | ||||||
Long-term inventories | 213,195 | 100,068 | ||||||
Other assets | 69,285 | 63,635 | ||||||
Deferred income taxes | 22,991 | 16,927 | ||||||
$ | 4,788,737 | $ | 4,874,619 | |||||
Liabilities | ||||||||
Current | ||||||||
Accounts payable and accrued liabilities | $ | 174,563 | $ | 167,117 | ||||
Current income and other taxes payable | 156,981 | 120,679 | ||||||
Current portion of prepaid gold sales | 134,779 | — | ||||||
Current portion of long-term debt | 17,288 | 16,256 | ||||||
Current portion of gold stream obligation | 3,400 | — | ||||||
Current portion of mine restoration provisions | 1,713 | 3,050 | ||||||
Other current liabilities | 13,613 | 6,369 | ||||||
502,337 | 313,471 | |||||||
Long-term debt | 221,890 | 175,869 | ||||||
Gold stream obligation | 157,396 | 139,600 | ||||||
Prepaid gold sales | 393,138 | — | ||||||
Mine restoration provisions | 116,485 | 104,607 | ||||||
Deferred income taxes | 161,889 | 188,106 | ||||||
Employee benefits obligation | 20,129 | 19,171 | ||||||
Other long-term liabilities | 26,393 | 23,820 | ||||||
1,599,657 | 964,644 | |||||||
Equity | ||||||||
Shareholders' equity | ||||||||
Share capital | 3,492,261 | 3,454,811 | ||||||
Contributed surplus | 83,844 | 84,970 | ||||||
Accumulated other comprehensive loss | (96,208 | ) | (125,256 | ) | ||||
Retained (deficit) earnings | (442,705 | ) | 395,854 | |||||
3,037,192 | 3,810,379 | |||||||
Non-controlling interests | 151,888 | 99,596 | ||||||
3,189,080 | 3,909,975 | |||||||
$ | 4,788,737 | $ | 4,874,619 | |||||
NON-IFRS MEASURES
Cash operating costs per gold ounce sold and total cash costs per gold ounce sold
‘‘Cash operating costs per gold ounce'' and "total cash costs per gold ounce" are common financial performance measures in the gold mining industry but, as non-IFRS measures, they do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance and ability to generate cash flow. Accordingly, these measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures, along with sales, are considered to be a key indicator of the Company's ability to generate earnings and cash flow from its mining operations.
Cash cost figures are calculated on a sales basis in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. Other companies may calculate these measures differently. Cash operating costs and total cash costs per gold ounce sold are derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, royalties and production taxes, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce sold and total cash costs per gold ounce sold to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):
For the three months ended September 30, 2024 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 109,857 | 42,697 | 39,854 | 192,408 | — | 192,408 |
Royalties and production taxes | 20,511 | 7,120 | 5,298 | 32,929 | — | 32,929 |
Total cash costs | 130,368 | 49,817 | 45,152 | 225,337 | — | 225,337 |
Gold sold (ounces) | 78,889 | 47,960 | 53,676 | 180,525 | — | 180,525 |
Cash operating costs per ounce ($/ gold ounce sold) | 1,393 | 890 | 742 | 1,066 | — | 1,066 |
Total cash costs per ounce ($/ gold ounce sold) | 1,653 | 1,039 | 841 | 1,248 | — | 1,248 |
For the three months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 93,388 | 44,056 | 33,981 | 171,425 | 16,791 | 188,216 |
Royalties and production taxes | 24,333 | 6,556 | 3,500 | 34,389 | 1,303 | 35,692 |
Total cash costs | 117,721 | 50,612 | 37,481 | 205,814 | 18,094 | 223,908 |
Gold sold (ounces) | 152,239 | 50,950 | 45,700 | 248,889 | 17,727 | 266,616 |
Cash operating costs per ounce ($/ gold ounce sold) | 613 | 865 | 744 | 689 | 947 | 706 |
Total cash costs per ounce ($/ gold ounce sold) | 773 | 993 | 820 | 827 | 1,021 | 840 |
For the nine months ended September 30, 2024 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 276,443 | 123,070 | 100,939 | 500,452 | 25,126 | 525,578 |
Royalties and production taxes | 62,561 | 19,420 | 14,064 | 96,045 | 1,565 | 97,610 |
Total cash costs | 339,004 | 142,490 | 115,003 | 596,497 | 26,691 | 623,188 |
Gold sold (ounces) | 318,005 | 142,260 | 153,466 | 613,731 | 19,644 | 633,375 |
Cash operating costs per ounce ($/ gold ounce sold) | 869 | 865 | 658 | 815 | 1,279 | 830 |
Total cash costs per ounce ($/ gold ounce sold) | 1,066 | 1,002 | 749 | 972 | 1,359 | 984 |
For the nine months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 250,294 | 117,219 | 84,278 | 451,791 | 50,371 | 502,162 |
Royalties and production taxes | 74,685 | 17,254 | 10,722 | 102,661 | 3,635 | 106,296 |
Total cash costs | 324,979 | 134,473 | 95,000 | 554,452 | 54,006 | 608,458 |
Gold sold (ounces) | 460,139 | 137,300 | 139,700 | 737,139 | 50,666 | 787,805 |
Cash operating costs per ounce ($/ gold ounce sold) | 544 | 854 | 603 | 613 | 994 | 637 |
Total cash costs per ounce ($/ gold ounce sold) | 706 | 979 | 680 | 752 | 1,066 | 772 |
Cash operating costs per gold ounce produced
In addition to cash operating costs on a per gold ounce sold basis, the Company also presents cash operating costs on a per gold ounce produced basis. Cash operating costs per gold ounce produced is derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce produced to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):
For the three months ended September 30, 2024 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Production costs | 109,857 | 42,697 | 39,854 | 192,408 | — | 192,408 | ||||
Inventory sales adjustment | 2,330 | (1,955 | ) | (1,294 | ) | (919 | ) | — | (919 | ) |
Cash operating costs | 112,187 | 40,742 | 38,560 | 191,489 | — | 191,489 | ||||
Gold produced (ounces) | 78,207 | 50,215 | 52,131 | 180,553 | — | 180,553 | ||||
Cash operating costs per ounce ($/ gold ounce produced) | 1,434 | 811 | 740 | 1,061 | — | 1,061 |
For the three months ended September 30, 2023 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Production costs | 93,388 | 44,056 | 33,981 | 171,425 | 16,791 | 188,216 | ||||
Inventory sales adjustment | (4,673 | ) | (1,388 | ) | 1,294 | (4,767 | ) | — | (4,767 | ) |
Cash operating costs | 88,715 | 42,668 | 35,275 | 166,658 | 16,791 | 183,449 | ||||
Gold produced (ounces) | 128,942 | 51,170 | 44,940 | 225,052 | 17,786 | 242,838 | ||||
Cash operating costs per ounce ($/ gold ounce produced) | 688 | 834 | 785 | 741 | 944 | 755 |
For the nine months ended September 30, 2024 | ||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||
$ | $ | $ | $ | $ | $ | |||
Production costs | 276,443 | 123,070 | 100,939 | 500,452 | 25,126 | 525,578 | ||
Inventory sales adjustment | 12,505 | (1,767 | ) | (854 | ) | 9,884 | — | 9,884 |
Cash operating costs | 288,948 | 121,303 | 100,085 | 510,336 | 25,126 | 535,462 | ||
Gold produced (ounces) | 308,931 | 144,512 | 145,690 | 599,133 | 19,644 | 618,777 | ||
Cash operating costs per ounce ($/ gold ounce produced) | 935 | 839 | 687 | 852 | 1,279 | 865 |
For the nine months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Production costs | 250,294 | 117,219 | 84,278 | 451,791 | 50,371 | 502,162 |
Inventory sales adjustment | 543 | 6,792 | 1,232 | 8,567 | — | 8,567 |
Cash operating costs | 250,837 | 124,011 | 85,510 | 460,358 | 50,371 | 510,729 |
Gold produced (ounces) | 447,233 | 147,012 | 127,487 | 721,732 | 50,663 | 772,395 |
Cash operating costs per ounce ($/ gold ounce produced) | 561 | 844 | 671 | 638 | 994 | 661 |
All-in sustaining costs per gold ounce
In June 2013, the World Gold Council, a non-regulatory association of the world's leading gold mining companies established to promote the use of gold to industry, consumers and investors, provided guidance for the calculation of the measure "all-in sustaining costs per gold ounce", but as a non-IFRS measure, it does not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The original World Gold Council standard became effective January 1, 2014 with further updates announced on November 16, 2018 which were effective starting January 1, 2019.
Management believes that the all-in sustaining costs per gold ounce measure provides additional insight into the costs of producing gold by capturing all of the expenditures required for the discovery, development and sustaining of gold production and allows the Company to assess its ability to support capital expenditures to sustain future production from the generation of operating cash flows. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. The Company has applied the principles of the World Gold Council recommendations and has reported all-in sustaining costs on a sales basis. Other companies may calculate these measures differently.
B2Gold defines all-in sustaining costs per ounce as the sum of cash operating costs, royalties and production taxes, capital expenditures and exploration costs that are sustaining in nature, sustaining lease expenditures, corporate general and administrative costs, share-based payment expenses related to restricted share units/deferred share units/performance share units/restricted phantom units ("RSUs/DSUs/PSUs/RPUs"), community relations expenditures, reclamation liability accretion and realized (gains) losses on fuel derivative contracts, all divided by the total gold ounces sold to arrive at a per ounce figure.
The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended September 30, 2024 (dollars in thousands):
For the three months ended September 30, 2024 | |||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | $ | |
Production costs | 109,857 | 42,697 | 39,854 | — | 192,408 | — | 192,408 |
Royalties and production taxes | 20,511 | 7,120 | 5,298 | — | 32,929 | — | 32,929 |
Corporate administration | 2,736 | 537 | 806 | 9,204 | 13,283 | — | 13,283 |
Share-based payments – RSUs/DSUs/PSUs/RPUs (1) | 28 | — | — | 3,622 | 3,650 | — | 3,650 |
Community relations | 168 | 109 | 578 | — | 855 | — | 855 |
Reclamation liability accretion | 479 | 321 | 245 | — | 1,045 | — | 1,045 |
Realized losses on derivative contracts | 55 | 32 | 21 | — | 108 | — | 108 |
Sustaining lease expenditures | 82 | 312 | 234 | 502 | 1,130 | — | 1,130 |
Sustaining capital expenditures (2) | 45,533 | 4,644 | 575 | — | 50,752 | — | 50,752 |
Sustaining mine exploration (2) | 996 | 203 | 485 | — | 1,684 | — | 1,684 |
Total all-in sustaining costs | 180,445 | 55,975 | 48,096 | 13,328 | 297,844 | — | 297,844 |
Gold sold (ounces) | 78,889 | 47,960 | 53,676 | — | 180,525 | — | 180,525 |
All-in sustaining cost per ounce ($/ gold ounce sold) | 2,287 | 1,167 | 896 | — | 1,650 | — | 1,650 |
( 1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2024 (dollars in thousands):
For the three months ended September 30, 2024 | |||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | ||||||
Operating mine capital expenditures | 64,464 | 5,192 | 609 | 70,265 | — | 70,265 | |||||
Fekola underground | (20,252 | ) | — | — | (20,252 | ) | — | (20,252 | ) | ||
Road construction | 1,321 | — | — | 1,321 | — | 1,321 | |||||
Land acquisitions | — | (528 | ) | — | (528 | ) | — | (528 | ) | ||
Other | — | (20 | ) | (34 | ) | (54 | ) | — | (54 | ) | |
Sustaining capital expenditures | 45,533 | 4,644 | 575 | 50,752 | — | 50,752 | |||||
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2024 (dollars in thousands):
For the three months ended September 30, 2024 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine exploration | 996 | 1,290 | 1,888 | 4,174 | — | 4,174 | ||||
Regional exploration | — | (1,087 | ) | (1,403 | ) | (2,490 | ) | — | (2,490 | ) |
Sustaining mine exploration | 996 | 203 | 485 | 1,684 | — | 1,684 | ||||
The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended September 30, 2023 (dollars in thousands):
For the three months ended September 30, 2023 | ||||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | $ | ||||||
Production costs | 93,388 | 44,056 | 33,981 | — | 171,425 | 16,791 | 188,216 | |||||
Royalties and production taxes | 24,333 | 6,556 | 3,500 | — | 34,389 | 1,303 | 35,692 | |||||
Corporate administration | 2,077 | 623 | 1,269 | 8,961 | 12,930 | 658 | 13,588 | |||||
Share-based payments – RSUs/DSUs/PSUs/RPUs (1) | 9 | — | — | 4,325 | 4,334 | — | 4,334 | |||||
Community relations | 642 | 24 | 492 | — | 1,158 | — | 1,158 | |||||
Reclamation liability accretion | 381 | 290 | 286 | — | 957 | — | 957 | |||||
Realized gains on derivative contracts | (1,317 | ) | (972 | ) | (232 | ) | — | (2,521 | ) | — | (2,521 | ) |
Sustaining lease expenditures | 72 | 302 | 274 | 487 | 1,135 | — | 1,135 | |||||
Sustaining capital expenditures (2) | 72,454 | 5,617 | 13,290 | — | 91,361 | 3,388 | 94,749 | |||||
Sustaining mine exploration (2) | — | 774 | 963 | — | 1,737 | 19 | 1,756 | |||||
Total all-in sustaining costs | 192,039 | 57,270 | 53,823 | 13,773 | 316,905 | 22,159 | 339,064 | |||||
Gold sold (ounces) | 152,239 | 50,950 | 45,700 | — | 248,889 | 17,727 | 266,616 | |||||
All-in sustaining cost per ounce ($/ gold ounce sold) | 1,261 | 1,124 | 1,178 | — | 1,273 | 1,250 | 1,272 |
(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2023 (dollars in thousands):
For the three months ended September 30, 2023 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine capital expenditures | 83,166 | 5,896 | 13,290 | 102,352 | 3,388 | 105,740 | ||||
Road construction | (216 | ) | — | — | (216 | ) | — | (216 | ) | |
Fekola underground | (10,496 | ) | — | — | (10,496 | ) | — | (10,496 | ) | |
Other | — | (279 | ) | — | (279 | ) | — | (279 | ) | |
Sustaining capital expenditures | 72,454 | 5,617 | 13,290 | 91,361 | 3,388 | 94,749 | ||||
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2023 (dollars in thousands):
For the three months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Operating mine exploration | — | 774 | 963 | 1,737 | 19 | 1,756 |
Regional exploration | — | — | — | — | — | — |
Sustaining mine exploration | — | 774 | 963 | 1,737 | 19 | 1,756 |
The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the nine months ended September 30, 2024 (dollars in thousands):
For the nine months ended September 30, 2024 | ||||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | $ | ||||||
Production costs | 276,443 | 123,070 | 100,939 | — | 500,452 | 25,126 | 525,578 | |||||
Royalties and production taxes | 62,561 | 19,420 | 14,064 | — | 96,045 | 1,565 | 97,610 | |||||
Corporate administration | 8,011 | 1,599 | 3,692 | 27,087 | 40,389 | 1,463 | 41,852 | |||||
Share-based payments – RSUs/DSUs/PSUs/RPUs (1) | 95 | — | — | 12,618 | 12,713 | — | 12,713 | |||||
Community relations | 419 | 139 | 1,228 | — | 1,786 | — | 1,786 | |||||
Reclamation liability accretion | 1,372 | 935 | 735 | — | 3,042 | — | 3,042 | |||||
Realized gains on derivative contracts | (365 | ) | (220 | ) | (10 | ) | — | (595 | ) | — | (595 | ) |
Sustaining lease expenditures | 249 | 939 | 1,024 | 1,506 | 3,718 | — | 3,718 | |||||
Sustaining capital expenditures (2) | 151,468 | 19,321 | 25,078 | — | 195,867 | 2,392 | 198,259 | |||||
Sustaining mine exploration (2) | 3,136 | 1,801 | 1,111 | — | 6,048 | — | 6,048 | |||||
Total all-in sustaining costs | 503,389 | 167,004 | 147,861 | 41,211 | 859,465 | 30,546 | 890,011 | |||||
Gold sold (ounces) | 318,005 | 142,260 | 153,466 | — | 613,731 | 19,644 | 633,375 | |||||
All-in sustaining cost per ounce ($/ gold ounce sold) | 1,583 | 1,174 | 963 | — | 1,400 | 1,555 | 1,405 |
(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (dollars in thousands):
For the nine months ended September 30, 2024 | |||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | ||||||
Operating mine capital expenditures | 198,205 | 20,229 | 26,128 | 244,562 | 2,392 | 246,954 | |||||
Fekola underground | (46,128 | ) | — | — | (46,128 | ) | — | (46,128 | ) | ||
Road construction | (609 | ) | — | — | (609 | ) | — | (609 | ) | ||
Land acquisitions | — | (648 | ) | — | (648 | ) | — | (648 | ) | ||
Other | — | (260 | ) | (1,050 | ) | (1,310 | ) | — | (1,310 | ) | |
Sustaining capital expenditures | 151,468 | 19,321 | 25,078 | 195,867 | 2,392 | 198,259 | |||||
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (dollars in thousands):
For the nine months ended September 30, 2024 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine exploration | 3,136 | 3,039 | 5,191 | 11,366 | — | 11,366 | ||||
Regional exploration | — | (1,238 | ) | (4,080 | ) | (5,318 | ) | — | (5,318 | ) |
Sustaining mine exploration | 3,136 | 1,801 | 1,111 | 6,048 | — | 6,048 | ||||
The tables below show a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the nine months ended September 30, 2023 (dollars in thousands):
For the nine months ended September 30, 2023 | ||||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Corporate | Total | Calibre equity investment | Grand Total | ||||||
$ | $ | $ | $ | $ | $ | $ | ||||||
Production costs | 250,294 | 117,219 | 84,278 | — | 451,791 | 50,371 | 502,162 | |||||
Royalties and production taxes | 74,685 | 17,254 | 10,722 | — | 102,661 | 3,635 | 106,296 | |||||
Corporate administration | 7,441 | 1,762 | 4,149 | 27,818 | 41,170 | 1,981 | 43,151 | |||||
Share-based payments – RSUs/DSUs/PSUs/RPUs (1) | 9 | — | — | 12,482 | 12,491 | — | 12,491 | |||||
Community relations | 2,686 | 123 | 1,074 | — | 3,883 | — | 3,883 | |||||
Reclamation liability accretion | 1,119 | 859 | 857 | — | 2,835 | — | 2,835 | |||||
Realized gains on derivative contracts | (2,776 | ) | (2,786 | ) | (929 | ) | — | (6,491 | ) | — | (6,491 | ) |
Sustaining lease expenditures | 1,117 | 912 | 1,194 | 1,401 | 4,624 | — | 4,624 | |||||
Sustaining capital expenditures (2) | 181,262 | 20,145 | 46,266 | — | 247,673 | 7,327 | 255,000 | |||||
Sustaining mine exploration (2) | 1,706 | 2,741 | 2,453 | — | 6,900 | 19 | 6,919 | |||||
Total all-in sustaining costs | 517,543 | 158,229 | 150,064 | 41,701 | 867,537 | 63,333 | 930,870 | |||||
Gold sold (ounces) | 460,139 | 137,300 | 139,700 | — | 737,139 | 50,666 | 787,805 | |||||
All-in sustaining cost per ounce ($/ gold ounce sold) | 1,125 | 1,152 | 1,074 | — | 1,177 | 1,250 | 1,182 |
(1) Included as a component of Share-based payments on the Statement of operations.
(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below
The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2023 (dollars in thousands):
For the nine months ended September 30, 2023 | ||||||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |||||
$ | $ | $ | $ | $ | $ | |||||
Operating mine capital expenditures | 211,112 | 20,947 | 46,266 | 278,325 | 7,327 | 285,652 | ||||
Road construction | (5,283 | ) | — | — | (5,283 | ) | — | (5,283 | ) | |
Fekola underground | (24,567 | ) | — | — | (24,567 | ) | — | (24,567 | ) | |
Other | — | (802 | ) | — | (802 | ) | — | (802 | ) | |
Sustaining capital expenditures | 181,262 | 20,145 | 46,266 | 247,673 | 7,327 | 255,000 | ||||
The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2023 (dollars in thousands):
For the nine months ended September 30, 2023 | ||||||
Fekola Mine | Masbate Mine | Otjikoto Mine | Total | Calibre equity investment | Grand Total | |
$ | $ | $ | $ | $ | $ | |
Operating mine exploration | 1,706 | 2,741 | 2,453 | 6,900 | 19 | 6,919 |
Regional exploration | — | — | — | — | — | — |
Sustaining mine exploration | 1,706 | 2,741 | 2,453 | 6,900 | 19 | 6,919 |
Adjusted net income and adjusted earnings per share - basic
Adjusted net income and adjusted earnings per share – basic are non-IFRS measures that do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines adjusted net income as net income attributable to shareholders of the Company adjusted for non-recurring items and also significant recurring non-cash items. The Company defines adjusted earnings per share – basic as adjusted net income divided by the basic weighted number of common shares outstanding.
Management believes that the presentation of adjusted net income and adjusted earnings per share - basic is appropriate to provide additional information to investors regarding items that we do not expect to continue at the same level in the future or that management does not believe to be a reflection of the Company's ongoing operating performance. Management further believes that its presentation of these non-IFRS financial measures provide information that is useful to investors because they are important indicators of the strength of our operations and the performance of our core business. Accordingly, it is intended to provide additional information and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.
A reconciliation of net (loss) income to adjusted net income as extracted from the unaudited condensed interim consolidated financial statements is set out in the table below:
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
$ | $ | $ | $ | |
(000's) | (000's) | (000's) | (000's) | |
Net (loss) income attributable to shareholders of the Company for the period: | (633,757 ) | (43,070) | (618,010 ) | 123,321 |
Adjustments for non-recurring and significant recurring non-cash items: | ||||
Impairment of long-lived assets | 661,160 | 111,597 | 858,301 | 116,482 |
Write-down of mining interests | — | 565 | 636 | 16,984 |
Gain on sale of shares in associate | — | — | (16,822 ) | — |
Gain on sale of mining interests | (7,453 ) | — | (56,115 ) | — |
Regulatory dispute settlement | 15,089 | — | 15,089 | — |
Unrealized losses (gains) on derivative instruments | 6,270 | (3,146) | 6,269 | 399 |
Office lease termination costs | — | — | — | 1,946 |
Loan receivable provision | — | — | — | 2,085 |
Change in fair value of gold stream | 1,957 | (7,600) | 21,196 | (6,500) |
Loss on dilution of associate | — | — | 8,984 | — |
Deferred income tax (recovery) expense | (14,109 ) | 6,494 | (30,419 ) | 1,789 |
Adjusted net income attributable to shareholders of the Company for the period | 29,157 | 64,840 | 189,109 | 256,506 |
Basic weighted average number of common shares outstanding (in thousands) | 1,310,994 | 1,297,175 | 1,307,134 | 1,208,942 |
Adjusted net earnings attributable to shareholders of the Company per share–basic ($/share) | 0.02 | 0.05 | 0.14 | 0.21 |
For more information on B2Gold please visit the Company website at www.b2gold.com or contact: Michael McDonald VP, Investor Relations & Corporate Development +1 604-681-8371 investor@b2gold.com Cherry DeGeer Director, Corporate Communications +1 604-681-8371 investor@b2gold.com
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