By:Staff writer
B2Gold filed its annual report for the year ended 31 December 2022 with the U.S. Securities and Exchange Commission on 16 March 2023.
The Vancouver-based gold producer has three operating mines: the Otjikoto Mine in Namibia, the Fekola Mine in Mali and the Masbate Mine in the Philippines.
Consolidated gold revenue for the year ended December 31, 2022 was $1.73 billion (N$32 billion) on sales of 969,155 ounces at an average realised gold price of $1,788 (N$33,000) per ounce, compared to $1.76 billion (N$32 billion) on sales of 981,401 ounces at an average realised gold price of $1,796 (N$33,147) per ounce in 2021. The slight decrease in gold revenue of 2% ($0.03 billion) was due to a 2% decrease in gold ounces sold.
B2Gold had another year of strong operational performance in 2022, with the achievement of B2Gold’s seventh consecutive year of meeting or exceeding annual production guidance.
Total gold production for 2022 was 1,027,874 ounces (including 54,871 ounces of attributable production from Calibre) (2021 – 1,047,414 ounces), above the midpoint of the guidance range (of between 990,000 and 1,050,000 ounces).
Consolidated gold production from the company’s three operating mines was 973,003 ounces (2021 – 987,595 ounces), near the midpoint of the guidance range (of between 950,000 – 1,000,000 ounces), with solid performances from each of the company’s three mines.
For the year ended December 31, 2022, consolidated cash operating costs were $637 (N$11,76 billion) per gold ounce produced ($646 per gold ounce sold), in-line with the budget and $126 (N$2,33 billion) per gold ounce produced (25%) higher than 2021.
Including estimated attributable results for Calibre, cash operating costs for the year ended December 31, 2022 were $660 per gold ounce produced ($669 per gold ounce sold) at the upper end of the company’s guidance range of $620 (N$11,4 billion) to $660 (N$12,2 billion) per ounce, $125 (N$2,31 billion) per gold ounce produced (23%) higher than 2021.
Cash operating costs per ounce produced for the year ended December 31, 2022 were at the upper end of the guidance range as a result higher fuel costs, partially offset by lower tonnes mined at Fekola, delays in incurring Wolfshag underground costs and a weaker Namibian dollar.
For the year ended December 31, 2022, mine sustaining capital expenditures were lower than budget by $6 million (N$111 million) mainly as a result of delays in accessing the Wolfshag underground at the Otjikoto Mine.
Non-sustaining mine capital expenditures for the year ended December 31, 2022 were $4 million (N$74 million) lower than budget. In addition, exploration costs were approximately $9 million (N$166) less than revised guidance.
The slight anticipated increase in the company’s consolidated cash operating costs per ounce for 2023 reflects higher expected prices for fuel, labour and other key consumables across all operations.
In addition, the increase in all-in sustaining costs per ounce is impacted by higher expected sustaining capital expenditures, including an estimated $181 million (N$3,34 billion) in capitalised stripping across the three producing mines.
Elevated capitalised stripping levels are due to the Fekola open pit Phase 7 pushback and activities related to accessing the high grade ore at the Otjikoto pit.
Total capitalised stripping expenditures are anticipated to moderate in 2024. The company’s consolidated gold production is expected to be relatively consistent throughout 2023 with the exception of the Otjikoto Mine, where it will be weighted 60% to the second half of the year as a result of the timing of mining high grade ore from the Otjikoto pit and an increase in ore tonnage from the Wolfshag underground mine starting mid-2023.
B2Gold continues to maintain a strong financial position and liquidity. At December 31, 2022, the company had cash and cash equivalents of $652 million compared to cash and cash equivalents of $673 million at December 31, 2021.
The Otjikoto Mine, in which the company holds a 90% interest, had a strong finish to 2022 and produced 161,614 ounces of gold, slightly below the revised guidance range of 165,000 to 175,000 ounces (original guidance range was 175,000 to 185,000 ounces) and 18% (35,959 ounces) lower compared to 2021, mainly due to delays in bringing the Wolfshag underground mine into production. Project delays were due to issues achieving development rates in prior periods, which were addressed through the appointment of a new underground development contractor in April 2022.
The total exploration budget for Namibia in 2023 is approximately $3million (N$ 55.4 million). Exploration in 2023 will include 16,320 metres of diamond and reverse circulation drilling and 3,400 metres of RAB drilling at the Otjikoto Mine. Much of the diamond drilling will target the southern extension of the Otjikoto structure, as well as several regional targets.