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B2Gold more than doubles revenue

Vancouver-based gold major B2Gold (TSX:BTO) has reported record production for the September quarter, helping to more than double revenues.
B2Gold more than doubles revenue B2Gold more than doubles revenue B2Gold more than doubles revenue B2Gold more than doubles revenue B2Gold more than doubles revenue

B2Gold's strong September-quarter production was underpinned by the Fekola mine, Mali

Staff Reporter

The miner said consolidated gold output was 78% higher year-over-year at 242,040 ounces. The performance was driven by the Fekola mine, in Mali, which had now ramped up to full production, the Masbate mine in the Philippines and Otjikoto, in Namibia.

The strong performance underpinned 110% year-on-year growth in the company's consolidated revenue to $324 million.

B2Gold said the Fekola mine continued to outperform the mine plan, producing 107,002oz in the period.

Masbate also put in an exceptional performance, producing 57,542oz - the mine's second-best quarter ever. The mine's strong year-to-date performance prompted B2Gold to lift its guidance to between 200,000-210,000oz, from 180,000-190,000oz previously.

Underperforming was the La Libertad mine, in Nicaragua, which produced 21,995oz of gold - 39% below budget as national political unrest in the country marred operations. B2Gold said the unrest had prompted it to suspend development of the Jabali Antenna underground project.

However, underground mine dewatering was completed in mid-August and ramp development had now restarted. Production from the underground operation was now expected to begin by November.

The El Limon mine, also in Nicaragua, produced 16% fewer ounces than expected at 13,098oz.

After the quarter-end, the company was granted a mine permit for the Limon Central Pit, and it was currently finalising an El Limon mine expansion study, expected to be released later this month.

B2Gold also expected to complete a new resource estimate on Fekola later this month, which would incorporate a portion of the Fekola North Extension. The company said it was examining the potential for expanding the current Fekola operation, with initial results expected to be released in the first quarter of 2019.

B2Gold said it was on target to achieve its objective of "transformational growth" this year, and it expected to meet the upper end of its revised gold guidance range of between 920,000-960,000oz, at cash operating costs of between $505-$550/oz and all-in sustaining costs of between $780-$830.

The company's equity closed in the black Thursday, gaining 5.66% to C$3.36. This gave the miner a market value of about $3.32 billion.