B2Gold Reports Record Fourth Quarter and 2012 Financial Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/13 -- B2Gold Corp. (TSX: BTO)(OTCQX: BGLPF)(NAMIBIAN: B2G) ("B2Gold" or the "Company") reports its results from its operations for the fourth quarter and year ended December 31, 2012. All dollar figures are in United States dollars unless otherwise indicated. Highlights from the fourth quarter and year end include:
2012 Fourth Quarter Results
-- Adjusted net earnings(1) of $17.6 million ($0.05 per share)
-- Cash flow from operations of $31.1 million ($0.08 per share)
-- Record gold revenue of $70.8 million
-- Record gold sales of 41,627 ounces
-- Record gold production of 44,324 ounces
-- Consolidated operating cash cost of $604 per ounce of gold
-- Cash and cash equivalents to $67.9 million at year end
-- Received mining permit for Otjikoto Project
2012 Twelve Month Results
-- Adjusted net earnings(1) of $79.6 million ($0.21 per share)
-- Record cash flow from operations of $114.4 million ($0.30 per share)
-- Record gold revenue of $259.1 million
-- Record gold sales of 155,008 ounces
-- Record gold production of 157,885 ounces
-- Consolidated operating cash cost of $587 per ounce of gold
-- Full year gold production and operating cash cost per ounce within
guidance
Financial Results
B2Gold reported adjusted net earnings(1) for the quarter of $17.6 million ($0.05 per share) compared to $23.3 million ($0.07 per share) in the same period of 2011. Adjusted net income in the fourth quarter of 2012 was calculated by excluding non-cash share-based compensation expense of $2.9 million, the write-off of a mineral property option and exploration costs of $1.5 million, CGA Mining Limited ("CGA") acquisition costs of $1.1 million, non-cash deferred income tax expense of $0.6 million, and foreign exchange losses of $0.6 million. The decrease in adjusted net income was mainly the result of higher Nicaraguan income taxes payable as La Libertad open pit mine ("La Libertad Mine") is now fully taxable having used all of its previously available tax loss carry forwards.
(1) Adjusted earnings is a non GAAP measure and consists of net earnings,
adjusted to exclude deferred income taxes, stock based compensation,
write off of mineral property option and exploration costs, CGA
acquisition costs and foreign exchange gain/losses.
Cash flow from operating activities for the fourth quarter of 2012 was $31.1 million ($0.08 per share), compared to $35.4 million ($0.10 per share) in the fourth quarter of 2011. Cash flow from operations in the quarter was the second highest in the Company's history (on an after tax basis), but was lower than in the fourth quarter of 2011, as a result of Nicaraguan income taxes payable. Current tax expense was $4.1 million higher in the fourth quarter of 2012, as the Company had used most of its non-capital loss carry forwards, relating to the Libertad Mine, in the fourth quarter of 2011 to significantly reduce its 2011 Nicaraguan taxable income.
With continued strong operating performance and strength in gold prices, the Company remained in a strong financial position with $67.9 million in cash as at December 31, 2012.
Adjusted net earnings(1) in 2012 was $79.6 million ($0.21 per share) compared to $80.5 million ($0.24 per share) in the same period of 2011. Adjusted net income was calculated by excluding non-cash share-based compensation expense of $16.6 million, non-cash deferred income tax expense of $7.5 million, write-off of mineral property option costs of $1.5 million, CGA acquisition costs of $1.6 million, and foreign exchange losses of $0.5 million. The decrease in adjusted net income was mainly due to $11.6 million in current tax expense, as described above.
For 2012, the Company generated (GAAP) net income of $51.9 million ($0.13 per share) compared to $56.3 million ($0.17 per share) in 2011.
Cash flow from operating activities before non-cash working capital changes increased to $114.4 million ($0.30 per share) in 2012 from $108.9 million ($0.32 per share) in the previous year. The increase reflects the Company's strong operating performance from both the Libertad and Limon Mines and strength in gold prices, partially offset by higher Nicaraguan income taxes payable.
Gold Revenue
Gold revenue for the fourth quarter of 2012 was a record $70.8 million on sales of 41,627 ounces at an average price of $1,700 per ounce compared to $66.9 million on sales of 39,557 ounces at an average price of $1,691 per ounce in the 2011 fourth quarter.
In the fourth quarter, La Libertad Mine accounted for $50.6 million of gold revenue from the sale of 29,727 ounces while $20.2 million was contributed by the Limon Mine from the sale of 11,900 ounces.
Gold revenue for 2012 was a record $259.1 million on sales of 155,008 ounces at an average price of $1,671 per ounce compared to $225.4 million on sales of 144,013 ounces at an average price of $1,565 per ounce in 2011. La Libertad Mine accounted for $179.6 million of gold revenue from the sale of 107,398 ounces while $79.5 million was contributed by the Limon Mine from the sale of 47,610 ounces.
Liquidity and Capital Resources
The Company ended the year with cash and cash equivalents of $67.9 million compared to cash and cash equivalents of $73.2 million at the end of the third quarter of 2012 and $102.3 million at December 31, 2011. Working capital at the end of the year was $92.1 million compared to working capital of $106.9 million at the end of September 30, 2012 and $119.2 million at December 31, 2011.
Operations
The Company's consolidated gold production during the fourth quarter of 2012 was a record 44,324 ounces of gold at an operating cash cost of $604 per ounce compared to 38,808 ounces produced over the same period last year at an operating cash cost of $542 per ounce.
The Company's consolidated gold production during 2012 was 157,885 ounces, another annual record and within the Company's 2012 guidance, at an operating cash cost of $587 per ounce, compared to 144,604 ounces produced over the same period last year at an operating cash cost of $527 per ounce.
The Company is projecting another record year for gold production in 2013, with consolidated production from La Libertad and Limon Mines in Nicaragua estimated to total approximately 185,000 to 195,000 ounces of gold at a cash operating cost of approximately $605 to $635 per ounce. With the completion of the B2Gold/CGA Transaction, the Company is projecting consolidated gold production in 2013 of approximately 385,000 ounces from the Libertad, Limon and Masbate mines.
Gold production is projected to increase in 2013 and 2014 due to the processing of higher grade ore from the Jabali deposit through the Libertad mill. The Company is projecting gold production to increase to approximately 385,000 ounces in 2013 and approximately 400,000 ounces in 2014. With the first full year of gold production from the Otjikoto project in Namibia scheduled for 2015, and increased production projected from the Libertad Mine, the Company is projecting 2015 gold production of 550,000 ounces, based on current assumptions. With the potential development of the Gramalote project (B2Gold 49%/AngloGold Ashanti Limited 51%) in Colombia, gold production could increase to over 700,000 ounces in 2017.
La Libertad Mine, Nicaragua (B2Gold 100%)
La Libertad Mine continued its excellent performance in the fourth quarter of 2012, producing a new quarterly record of 30,113 ounces of gold at an operating cash cost of $589 per ounce and a total cash cost of $626 per ounce from 512,603 tonnes of ore milled at an average grade of 1.94 grams per tonne ("g/t") gold. This compares to the budget of 28,763 ounces at an operating cash cost of $564 per ounce.
Gold production in the fourth quarter was higher than budget mainly due to higher throughput tonnage and higher gold recoveries of 94.1% compared to budget of 90.4%. Gold recovery continues to outperform budget as the Company optimizes its plant processes. Ore during the quarter was sourced from the Crimea and Mojon pits (no spent ore was processed in the quarter). The Santa Maria Pit is in development and will start to produce ore in the first quarter of 2013. Mill throughput averaged 5,572 tonnes of ore per day for the quarter.
Per ounce operating cash costs for La Libertad Mine in the fourth quarter were slightly higher than budget mainly due to increases in the cost of labour, fuel, mining contractor and mill reagents, partially offset by higher than budgeted gold production.
During 2012, La Libertad Mine generated gold revenue of $179.6 million from the sale of 107,398 ounces at an average price of $1,672 per ounce, compared to $154.8 million from the sale of 98,797 ounces at an average price of $1,566 per ounce in the same period of 2011. Total gold production was 108,935 ounces at an operating cash cost of $529 per ounce and total cash cost of $564 per ounce from 2,041,415 tonnes of ore milled at an average grade of 1.80 g/t gold. This compares to the budget of 103,493 ounces at an operating cash cost of $557 per ounce. Gold production for the year was higher than budget as a result of higher gold grades (1.80 g/t gold versus budget of 1.77 g/t gold) and higher gold recoveries (92.5% compared to budget of 90.4%). Operating expenses were marginally higher than budget, however, due to increased gold production operating costs per ounce were lower than budget.
The Libertad Mine is projected to produce approximately 131,000 to 137,000 ounces of gold in 2013 at an operating cash cost of approximately $560 to $590 per ounce. Gold production for the first half of 2013 is estimated to total approximately 56,000 to 59,000 ounces of gold at a cash operating cost of approximately $620 to $650 per ounce and for the second half of 2013 approximately 75,000 to 78,000 ounces of gold at a cash operating cost of approximately $515 to $545 per ounce.
Limon Mine, Nicaragua (B2Gold 95%)
The Limon open pit and underground Mine (the "Limon Mine") also had an outstanding quarter, achieving its highest quarterly output since B2Gold completed its business combination with Central Sun Mining Inc. in March 2009. The Limon Mine produced 14,211 ounces of gold during the fourth quarter of 2012 at an operating cash cost of $635 per ounce and a total cash cost of $723 per ounce from 107,034 tonnes of ore milled at an average grade of 4.53 g/t gold at a processed gold recovery of 91.4%. This compared to budget of 15,628 ounces of gold at an operating cash cost of $612 per ounce. Grade from surface operations was less than forecast as more development was required in the Veta Nueva Pit, and as a consequence production was less than budgeted.
During 2012 the Limon Mine recorded its most successful year in the past nine years, producing 48,950 ounces of gold, within 2012 guidance.
For the year of 2012, the Limon Mine generated gold revenue of $79.5 million from the sale of 47,610 ounces at an average price of $1,670 per ounce. The operating cash cost per ounce was $715 compared to budget of $701 per ounce.
The Limon Mine is projected to produce approximately 54,000 to 58,000 ounces of gold in 2013 at an operating cash cost of approximately $715 to $745 per ounce. Gold production for the first half of 2013 is estimated to total approximately 26,000 to 28,000 ounces of gold at a cash operating cost of approximately $710 to $740 per ounce and for the second half of 2013 approximately 28,000 to 30,000 ounces of gold at a cash operating cost of approximately $720 to $750 per ounce.
Masbate Mine, Philippines
B2Gold and CGA have recently announced the successful completion of the scheme of arrangement ("Merger") by which B2Gold has acquired all of the issued ordinary shares of CGA and as such CGA is now a wholly-owned subsidiary of B2Gold (see news release dated January 31, 2013). The merger has received strong endorsement from both B2Gold and CGA shareholders. Management believes the acquisition is accretive to the B2Gold shareholders.
The primary asset acquired was the Masbate gold mine (the "Masbate Mine") located in the Philippines. The Masbate Mine, based on CGA's guidance, is projected to produce approximately 200,000 ounces of gold annually over the current mine life of 15 years with the potential to extend beyond current projections given the significant large reserves and exploration upside. B2Gold is well positioned to operate and progress further development at the Masbate Mine given its strong funding capacity and a management team with significant exploration, mine development and operating experience.
B2Gold plans to release its own guidance on the Masbate Mine near mid-year of 2013 once it has had additional time to review the mine plan and costs, and the reserve estimate.
Development Projects
Otjikoto Property, Namibia
(B2Gold 90% / EVI Gold 8%)
The Company recently announced robust results from the Feasibility Study and the commencement of construction at the Otjikoto gold project in Namibia, located 300 kilometres north of Namibia's capital city of Windhoek (see news release dated January 10, 2013).
Construction is scheduled for completion in the fourth quarter of 2014 when mill production is expected to begin and the first gold production from the Otjikoto gold project is scheduled. The current mine plan is based on probable mineral reserves of 29.4 million tonnes at a grade of 1.42 g/t gold containing 1.341 million ounces of gold at a stripping ratio of 5.59:1 to be mined over an initial 12 year period.
The current average annual production for the first five years is estimated to be approximately 141,000 ounces of gold per year at an average operating cash cost of $524 per ounce and for the life of mine approximately 112,000 ounces of gold per year at an average operating cash cost of $689 per ounce.
The Otjikoto gold project has excellent exploration potential. Recent exploration drilling has discovered a new high grade zone called Wolfshag near the current planned Otjikoto open pit (see news release dated December 11, 2012). An $8 million exploration drilling program is underway carrying out step out and infill drilling on the Wolfshag zone and initial drilling of parallel targets.
These positive drill results to date from the Wolfshag zone indicate the potential to outline additional resources that could lead to the expansion of production at the Otjikoto gold project.
Gramalote Property, Colombia
(B2Gold 49% / AngloGold Ashanti Limited ("AngloGold") 51%)
The Company and joint venture partner AngloGold are in the process of completing a prefeasibility study on the Gramalote property, located 80 kilometres northeast of Medellin in Central Colombia. Additional test work and engineering associated with identified potential opportunities are being carried out. A supplemental budget of $26.1 million (100%) was approved covering the period from December 2012 through February 2013 and included trade-off studies to conform the optimum size of the project, additional land acquisitions, exploration and development drilling and community and social programs. Each partner has funded its share of expenditures pro-rata.
Based on positive exploration results, exploration and development drilling will continue through July 2013 to better define the mineral resource and assure that the optimum plant size is determined. Work programs and engineering associated with the completion of the Environmental Impact Assessment ("EIA") will also be completed during this period so that the EIA can be submitted to government authorities in May 2013. As a result of this additional work, the final prefeasibility results will be complete in the third quarter of 2013. This will allow sufficient time for the inclusion of new information, an updated mineral resource estimate and potential modifications to the prefeasibility study. The final feasibility study is scheduled to be completed by the fourth quarter of 2014. The Company is currently in discussions with AngloGold to agree on work programs and budget from March 2013 through August 2013, when a decision will be made on advancing the project to final feasibility.
The Company believes the Gramalote project has the potential to become a large scale open pit gold mine (subject to completion of a Feasibility Study, permitting and financing).
Outlook
As outlined above 2012 was a successful and transformative year for B2Gold. The Company set another record for annual gold production from La Libertad and Limon mines in Nicaragua. The Company's strong operating and financial performance at the mines, robust gold prices and minimal debt, combined to leave B2Gold in a strong cash position at year end.
Looking forward B2Gold's objective is to continue its strong operating performance and financial results, optimize production at the Limon, La Libertad and Masbate mines and advance its development and exploration projects. In addition, the Company will continue its demonstrated commitment to mining responsibly, focusing on safety, environmental protection and social programs at the projects and in the communities in which the Company works.
The merger with CGA Mining, completed January 31, 2013, immediately adds up to 200,000 ounces of gold production annually, based on their interest in the Masbate Mine in the Philippines(i). B2Gold is now projecting approximately 385,000 ounces of gold production in 2013 from the three mines. With the mining of higher grade ore at La Libertad Mine from the Santa Maria and Jabali pits, and the successful development of the Otjikoto mine in Namibia, currently in construction and scheduled to commence production in the fourth quarter of 2014, the Company is projecting annual production in 2015 of approximately 550,000 ounces of gold.
Based on current assumptions and the potential development of the Gramalote Project (51% AngloGold Ashanti as manager / 49% B2Gold) the Company's gold production has the potential to reach over 700,000 ounces annually in 2017.
Growth Strategy
Since 2009 B2Gold has completed three acquisitions for assets in Nicaragua, Namibia and the Philippines. Management believes each of these acquisitions was accretive to its shareholders and has excellent expansion and exploration potential. B2Gold benefits from a proven experienced exploration team that has been very successful in discovering gold deposits and adding significant new reserves at existing mines.
Over the last two years B2Gold shares have been one of the best performers in the gold sector. Management believes this is due to the Company's consistent strong operating and financial performance and dramatic growth to date, and in the near term, from existing projects. While all gold producers are leveraged to the gold price, B2Gold's strategy is to remain strongly leveraged to accretive production growth as well.
Unfortunately, the gold sector as a whole has struggled in the markets, despite high gold prices, due to many examples of poor operating performance and lack of credible returns on investments in gold projects.
Management believes that there will be significant acquisition opportunities in this environment for companies with proven technical teams and strong financial performance. While the Company's near term focus is on optimizing production at the mines and developing its existing projects, the Company will continue to review acquisition opportunities. Our discipline toward acquisitions will continue to be focusing on projects that are accretive to our shareholders based on the existing asset. The Company will not pursue acquisitions that require the hope of exploration success or higher gold prices to be justified or accretive.
In an uncertain time for worldwide financial markets, the Company's priorities are: to continue its strong operating and financial performance, maintain a solid cash position, and focus on developing its growth projects, funding them largely from cash from operations and keeping debt at manageable levels.
We are looking forward to another profitable and successful year in 2013.
(i) Based on CGA's public disclosure.
Conference Call Details
B2Gold will host a conference call and webcast to discuss fourth quarter results on Thursday, March 28, 2013 at 10:00 am PST / 1:00 pm EST. You may access the call by dialing the operator at 416-340-8527 or toll free 877-440-9795 prior to the scheduled start time. A playback version of the call will be available for one week after the call by dialing 905-694-9451 or toll free 800-408-3053 (pass code: 2560484). The webcast of the call can be accessed from B2Gold's web site at www.b2gold.com.
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
REVIEW OF FINANCIAL RESULTS
Selected Annual & Quarterly Financial and Operating Results:
Three months ended Years ended
December 31 December 31
(unaudited) (unaudited)
2012 2011 2012 2011 2010
---------------------------------------------
Gold revenue ($ in thousands) 70,783 66,894 259,051 225,352 127,521
Gold sold (ounces) 41,627 39,557 155,008 144,013 101,105
Average realized gold price
($/ounce) 1,700 1,691 1,671 1,565 1,261
Gold produced (ounces) 44,324 38,808 157,885 144,604 108,688
Cash operating costs ($/ounce
gold) 604 542 587 527 591
Total cash costs ($/ounce gold) 657 632 640 612 657
Adjusted net income (1)(2) ($
in thousands) 17,642 23,339 79,598 80,521 16,068
Adjusted earnings (loss) per
share - basic ($) 0.05 0.07 0.21 0.24 0.05
Adjusted earnings (loss) per
share - diluted ($) 0.04 0.07 0.20 0.23 0.05
Net income (loss) ($ in
thousands) (2) 10,948 20,837 51,907 56,300 20,031
Earnings (loss) per share -
basic ($/share) 0.03 0.06 0.13 0.17 0.07
Earnings (loss) per share -
diluted ($/share) 0.03 0.06 0.13 0.16 0.06
Cash flows from operating
activities ($ in thousands) -
before changes in non-cash
working capital 31,124 35,361 114,399 108,930 36,823
Total assets ($ in thousands) 676,465 563,041 676,465 563,041 334,654
Long-term financial liabilities
($ in thousands) - - - - -
(1) Adjusted net income is a non-GAAP measure which excludes foreign
exchange gains (losses), CGA acquisition costs, the write-off of mining
interests and non-cash items consisting of deferred income tax expense
and share-based payments expense. In addition, the 2010 comparatives
exclude non-cash derivative losses on Canadian dollar denominated
common share purchase warrants issued as part of the March 2009 Central
Sun acquisition which are considered derivative instruments under IFRS,
and the gain on sale of the Company's interest in the Kupol East and
West licenses.
(2) Attributable to the shareholders of the Company.
LIBERTAD MINE - NICARAGUA
Three months ended Years ended
December 31 December 31
(unaudited) (unaudited)
2012 2011 2012 2011
--------------------------------------------
Gold revenue ($ in thousands) 50,549 47,055 179,558 154,758
Gold sold (ounces) 29,727 27,786 107,398 98,797
Average realized gold price
($/ounce) 1,700 1,693 1,672 1,566
Tonnes of ore milled 512,603 500,726 2,041,415 1,992,264
Grade (grams/tonne) 1.94 1.77 1.80 1.72
Recovery (%) 94.1 92.0 92.5 91.0
Gold production (ounces) 30,113 26,158 108,935 99,567
Cash operating costs ($/ounce
gold) 589 479 529 460
Total cash costs ($/ounce gold)
(3) 626 567 564 541
Cash flows from Libertad Mine
operations (4) 34,577 31,487 120,569 101,911
Capital expenditures ($ in
thousands) 6,696 5,065 29,586 28,098
Capital expenditures ($ in
thousands) - Jabali development 4,146 3,358 12,693 7,834
Exploration ($ in thousands) -
including Jabali exploration 1,219 3,210 6,712 10,747
(3) In the second quarter of 2012, the Company began recording its ad-
valorem taxes as tax credits. Ad-valorem taxes paid in the first
quarter of 2012 of $1.3 million were reclassified from royalty and
production tax expense on the consolidated statement of operations to
income tax credits (reducing estimated current taxes payable on the
consolidated balance sheet).
(4) Cash flows from Libertad Mine operations is a non-GAAP measure
calculated based on gold revenue less total cash operating costs.
LIMON MINE - NICARAGUA
Three months ended Years ended
December 31 December 31
(unaudited) (unaudited)
2012 2011 2012 2011
--------------------------------------
Gold revenue ($ in thousands) 20,234 19,839 79,493 70,594
Gold sold (ounces) 11,900 11,771 47,610 45,216
Average realized gold price ($/ ounce) 1,700 1,685 1,670 1,561
Tonnes of ore milled 107,034 100,888 397,438 380,777
Grade (grams/ tonne) 4.53 4.32 4.22 4.10
Recovery (%) 91.4 91.0 91.1 90.0
Gold production (ounces) 14,211 12,650 48,950 45,037
Cash operating costs ($/ ounce) 635 672 715 678
Total cash costs ($/ ounce) 723 765 811 769
Cash flows from Limon Mine operations
(5) 11,335 10,774 40,475 35,984
Capital expenditures ($ in thousands) 4,570 4,865 21,461 20,784
Exploration ($ in thousands) 1,161 696 4,645 3,299
(5) Cash flows from Limon Mine operations is a non-GAAP measure calculated
based on gold revenue less total cash operating costs.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars, except shares and per share amounts)
For the For the For the For the
three three twelve twelve
months months months months
ended ended ended ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2012 2011 2012 2011
-------------------------- -------------------------
-------------------------- -------------------------
Gold revenue $ 70,783 $ 66,894 $ 259,051 $ 225,352
-------------------------- -------------------------
Cost of sales
Production costs (22,506) (21,151) (89,504) (75,229)
Depreciation and
depletion (10,751) (7,926) (33,060) (26,175)
Royalties and
production taxes (2,366) (3,483) (8,503) (12,229)
Other (962) - (962) (692)
-------------------------- -------------------------
Total cost of sales (36,585) (32,560) (132,029) (114,325)
-------------------------- -------------------------
Gross profit 34,198 34,334 127,022 111,027
General and
administrative (4,518) (4,019) (17,610) (16,635)
Share-based payments (2,881) (945) (16,635) (6,190)
Accretion of mine
restoration provisions (442) (381) (1,776) (1,267)
CGA acquisition costs (1,059) - (1,556) -
Write-off of mineral
property options (1,512) - (1,512) -
Foreign exchange losses (627) 751 (479) (114)
Other (527) (1,343) (3,317) (1,127)
-------------------------- -------------------------
Operating income 22,632 28,397 84,137 85,694
Community relations (3,610) (2,283) (6,839) (4,042)
Interest and financing
costs (63) (68) (193) (611)
Other (270) 119 165 (532)
-------------------------- -------------------------
Income before
withholding and other
taxes 18,689 26,165 77,270 80,509
Current income tax,
withholding and other
taxes (7,126) (3,020) (17,853) (6,292)
Deferred income tax
expense (615) (2,308) (7,510) (17,917)
-------------------------- -------------------------
Net income for the
period $ 10,948 $ 20,837 $ 51,907 $ 56,300
-------------------------- -------------------------
-------------------------- -------------------------
Earnings per share
Basic $ 0.03 $ 0.06 $ 0.13 $ 0.17
Diluted $ 0.03 $ 0.06 $ 0.13 $ 0.16
Weighted average number
of common shares
outstanding (in
thousands)
Basic 389,724 345,050 384,733 338,541
Diluted 397,421 351,937 391,940 344,812
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of United States dollars)
For the For the For the For the
three three twelve twelve
months months months months
ended ended ended ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2012 2011 2012 2011
--------------------- ---------------------
--------------------- ---------------------
Operating activities
Net income for the period $ 10,948 $ 20,837 $ 51,907 $ 56,300
Mine restoration provisions
settled (256) (253) (3,486) (1,049)
Non-cash charges (credits)
Depreciation and depletion 10,751 7,926 33,060 26,175
Share based payments 2,881 945 16,635 6,190
Deferred income tax expense 615 2,308 7,510 17,917
Loss on disposal of equipment 2,900 - 2,900 -
Increase in employee benefits
obligation 641 398 1,500 1,241
Accretion of mine restoration
provisions 442 381 1,776 1,267
Write-off of mineral property
options 1,512 - 1,512 -
Other 690 2,819 1,085 889
--------------------- ---------------------
Cash provided by operating
activities before changes in
non-cash working capital 31,124 35,361 114,399 108,930
Changes in non-cash working
capital 2,994 (1,335) (9,322) (6,583)
--------------------- ---------------------
Cash provided by operating
activities after changes in
non-cash working capital 34,118 34,026 105,077 102,347
--------------------- ---------------------
Financing activities
Common shares issued for cash 1,226 701 8,617 7,943
Interest & commitment fees (63) (66) (192) (301)
Repayment of related party
loans - - (10) (21)
--------------------- ---------------------
Cash provided by financing
activities 1,163 635 8,415 7,621
--------------------- ---------------------
Investing activities
Libertad Mine, development &
sustaining capital (6,696) (5,065) (29,586) (28,098)
Libertad Mine, Jabali
development (4,146) (3,358) (12,693) (7,834)
Limon Mine, development &
sustaining capital (4,570) (4,865) (21,461) (20,784)
Purchase of long-term
investment - - (5,068) -
Libertad, exploration (1,219) (3,210) (6,712) (10,747)
Limon, exploration (1,161) (696) (4,645) (3,299)
Gramalote, exploration and
development (11,985) (4,610) (30,872) (14,890)
Otjikoto, exploration and
development (5,450) - (20,424) -
Calibre, exploration (1,698) (461) (5,376) (1,340)
Mocoa, exploration (748) (223) (3,607) (426)
Cebollati, exploration (1,475) (532) (3,091) (4,185)
Trebol & Pavon, exploration (406) (951) (2,552) (2,865)
Auryx Gold Arrangement, net
cash acquired - 17,821 - 17,821
Other (935) 209 (1,748) (1,041)
--------------------- ---------------------
Cash used by financing
activities (40,489) (5,941) (147,835) (77,688)
--------------------- ---------------------
Increase (decrease) in cash and
cash equivalents (5,208) 28,720 (34,343) 32,280
Cash and cash equivalents,
beginning of period 73,157 73,572 102,292 70,012
--------------------- ---------------------
Cash and cash equivalents, end
of period $ 67,949 $ 102,292 $ 67,949 $ 102,292
--------------------- ---------------------
--------------------- ---------------------
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
As at As at
December 31, December 31,
2012 2011
-----------------------------------
-----------------------------------
Assets
Current
Cash and cash equivalents $ 67,949 $ 102,292
Accounts receivable and prepaids 7,695 6,372
Value-added and other tax receivables 18,737 14,149
Inventories 41,608 26,695
-----------------------------------
135,989 149,508
Mining interests 534,724 412,537
Investment (carried at quoted market
value) 3,661 -
Other assets 2,091 996
-----------------------------------
$ 676,465 $ 563,041
-----------------------------------
-----------------------------------
Liabilities
Current
Accounts payable and accrued
liabilities $ 24,366 $ 22,249
Current taxes payable 13,797 6,254
Current portion of employee benefits
obligation 1,501 442
Current portion of mine restoration
provisions 4,217 1,376
-----------------------------------
43,881 30,321
Mine restoration provisions 27,659 26,731
Deferred income taxes 34,148 26,638
Employee benefits obligation 4,458 4,017
-----------------------------------
110,146 87,707
-----------------------------------
Equity
Shareholders' equity
Share capital
Issued: 393,307,942 common shares (Dec
31, 2011 - 382,494,656) 468,550 435,048
Contributed surplus 35,383 22,712
Accumulated other comprehensive income (6,793) -
Retained earnings 62,807 13,631
-----------------------------------
559,947 471,391
Non-controlling interests 6,372 3,943
-----------------------------------
566,319 475,334
-----------------------------------
$ 676,465 $ 563,041
-----------------------------------
-----------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31
(Expressed in thousands of United States dollars)
2012
-------------------------------------------------------------
-------------------------------------------------------------
Accumulated
other Non-
Contri- compre- control-
Share buted Retained hensive ling Total
capital surplus earnings loss interests equity
Balance at
December 31,
2011 $ 435,048 $ 22,712 $ 13,631 $ - $ 3,943 $ 475,334
January 1, 2012
to December 31,
2012:
Net income for
the year - - 51,907 - - 51,907
Cumulative
translation
adjustment - - - (5,386) (302) (5,688)
Funding of
non-
controlling
interests - - (2,731) 2,731 -
Unrealized
loss on
investment - - - (1,407) - (1,407)
Shares issued
for cash:
Exercise of
stock options 5,150 - - - - 5,150
Exercise of
warrants 3,458 - - - - 3,458
Incentive
Plan 9 - - - - 9
Shares issued
for Trebol &
Pavon 16,814 - - - - 16,814
Shares issued
on vesting of
RSU 2,902 (2,902) - - - -
Share based
payments -
expensed - 16,635 - - - 16,635
Share based
payments -
capitalized to
mining
interests - 4,107 - - - 4,107
Transfer to
share capital
the fair value
assigned to
stock options
& warrants
exercised from
contributed
surplus 5,169 (5,169) - - - -
-------------------------------------------------------------
Balance at
December 31,
2012 $ 468,550 $ 35,383 $ 62,807 $ (6,793) $ 6,372 $ 566,319
-------------------------------------------------------------
-------------------------------------------------------------
2011
-------------------------------------------------------------
-------------------------------------------------------------
Accumu-
lated
other Non-
Contri- compre- control-
Share buted Retained hensive ling Total
capital surplus earnings loss interests equity
-------------------------------------------------------------
-------------------------------------------------------------
Balance at
December 31,
2010 $ 312,829 $ 19,971 $(42,669) $ - $ - $ 290,131
January 1, 2011
to December 31,
2011:
Net income for
the year - - 56,300 - - 56,300
Shares issued
for Auryx Gold 107,435 - - - - 107,435
Shares issued
for cash:
Exercise of
stock options 5,908 - - - - 5,908
Exercise of
warrants 2,014 - - - - 2,014
Incentive
Plan 21 - - - - 21
Shares issued
for finders
fee 150 - - - - 150
Share based
payments -
expensed - 6,190 - - - 6,190
Share based
payments -
capitalized to
mining
interests - 481 - - - 481
Stock options
& warrants
issued on
Auryx Gold
acquisition - 4,943 - - - 4,943
Non-
controlling
interest
acquired on
Auryx Gold
acquisition - - - - 3,943 3,943
Income tax on
expired
warrants - (2,182) - - - (2,182)
Transfer to
share capital
the fair value
assigned to
stock options
& warrants
exercised from
contributed
surplus 6,691 (6,691) - - - -
-------------------------------------------------------------
Balance at
December 31,
2011 $ 435,048 $ 22,712 $ 13,631 $ - $ 3,943 $ 475,334
-------------------------------------------------------------
-------------------------------------------------------------
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contacts:
B2Gold Corp.
Ian MacLean
Vice President, Investor Relations
604-681-8371
B2Gold Corp.
Kerry Suffolk
Manager, Investor Relations
604-681-8371
www.b2gold.com
