B2Gold Reports 2013 Fourth Quarter and Year-End Results - And Mining Operations

B2Gold Corp. (TSX: BTO ) (NYSE Amex : BTG ) ( NAMIBIAN : B2G ) (" B2Gold " or the " Company") announces its results for the fourth quarter and year ended December 31, 2013 All amounts are . U.S. dollarsunless otherwise Highlights of the fourth quarter and year end . :


2013 Highlights for the fourth quarter

• Gold revenue of $ 138.1 million , an increase of $ 67.3 million for the fourth quarter of 2012
• Sales of 106,185 ounces of gold Record
• Quarterly gold production record of 105,577 ounces , an increase of 138% compared to the fourth quarter of 2012
• Consolidated operating cash flow of $ 638 per ounce of gold costs , 8 % below the budget
• Cash flows from operating activities before changes in non-cash working capital of $ 35.7 million ($ 0.05 per share) , an increase of $ 4.6 million compared to the fourth quarter 2012
• Cash and cash equivalents of $ 252.7 million at the end of the year
• Net income of $ 26.2 million ($ 0.04 per share)
• Adjusted net income of $ 3.7 million ($ 0.01 per share)
• 2013 Highlights of the full year
• Recipes gold record $ 544.3 million , an increase of $ 285.2 million in 2012
• Sales of 380,895 ounces of gold Record
• A record attributable gold production of 366,313 ounces , an increase of 132% compared to 2012
• The 373,400 oz gold production, including non-attributable pre- acquisition produce 7087 ounces of mine Masbate , in 2013 the direction of the Company
• Record cash flow from operating activities before changes in non-cash working capital of $ 144.3 million ($ 0.23 per share) , an increase of $ 30 million over 2012
• Consolidated operating cash costs $ 681 per ounce of gold, at the lower end of guidance
• Net income of $ 67.3 million ($ 0.11 per share)
• Adjusted net income of $ 63.8 million ($ 0.10 per share)
• Outstanding safety record in 2013 at all three mining operations
• Construction at the Otjikoto mine in Namibia on schedule and budget
• Acquisitions of CGA Mining Limited and Volta Resources Inc. in 2013
• Announced the initial resource area Wolfshag (Namibia) of 703,000 ounces of gold at an average grade of 3.2 grams per tonne , which may lead to future expansion of production and / or an increase in life mine Otjikoto 

Published convertible total principal amount of $ 258,750,000 , August 23 Senior Subordinated Notes , 2013

Financial results for the fourth quarter

Consolidated gold in the fourth quarter of 2013 production was a record 105,577 ounces , an increase of 138 % compared to the same period in 2012. Gold mine production Masbate (acquired January 16, 2013 ) in the Philippines represented 106 % of the increase , and the gold production of the Company La Libertad and Limon Mines in Nicaragua increased by 32 % compared to the fourth quarter of 2012.


Gold revenue for the fourth quarter of 2013 was $ 138.1 million on the sale of 106,185 ounces at an average price of $ 1,300 per ounce compared to $ 70.8 million on sales of 41,627 ounces at an average price of 1700 per ounce in the fourth quarter of 2012. The significant 95% increase in revenues ( despite a 24% decrease in the average realized gold price ) was driven by the production of the Masbate Gold Mine Company and the increased production of Nicaraguan operations.


Consolidated operating cash flow for the fourth quarter of 2013 were $ 638 cost of gold which compares the budget to $ 686 per ounce and $ 604 per ounce in the same quarter last year ounce. While supporting cash costs for the quarter also came in below budget of $ 986 per ounce of gold . Gold production from three mines of the Company has exceeded each of the production budget of the mine during the fourth quarter of 2013 , and every three mines reached by lower than expected operating cash costs of one ounce .
Cash flows from operating activities before changes in non-cash working capital items was $ 35.7 million ($ 0.05 per share ) in the fourth quarter of 2013 compared to $ 31.1 million ($ 0.08 per share) for the corresponding quarter last year , an increase of 15%. Cash flow in the quarter was the second highest in the history of the company , despite a 29% decrease in the average realized gold price (on a cash basis , excluding non- revenue - deferred cash ) . The increase is primarily due to the recent acquisition of the Masbate mine and increase in production of gold mines Libertad and Limon.


Adjusted net income for the quarter was $ 3.7 million ($ 0.01 per share) compared to $ 18 million ($ 0.05 per share) for the same period of 2012. Adjusted net income was lower in the quarter due primarily to a significant decrease in the average realized gold price and costs and amortization per ounce of gold sold operating slightly higher. General and administrative expenses also increased by $ 3.4 million for the quarter and realized losses on derivatives and interest expense increased by $ 1.5 million and $ 1, respectively .


For the fourth quarter of 2013 , the Company generated (GAAP) net income of $ 26.2 million ($ 0.04 per share) compared to $ 10.9 million ($ 0.03 per share ) for the period corresponding to 2012. Included in net income gain of $ 14.2 million for the current quarter relative to the overall change in fair value of senior subordinated convertible notes of the Company issued 23 August 2013 . The convertible notes are measured at fair value at each financial reporting period end .
Financial results for the full year


The consolidated attributable gold production for 2013 was a record 366,313 ounces . Including non- producing pre- acquisition due 7087 oz Masbate (from January 1 , 2013 to January 15, 2013 ) , consolidated gold production was 373,400 ounces in 2013 , which compares favorably with the range of estimates the Company 360 000 to 380,000 oz.


For the full year 2013, consolidated gold revenue reached a record $ 544.3 million compared to $ 259.1 million for the same period in 2012. The significant increase of 110 % in revenues was driven by the production of Masbate gold mine newly acquired from the Company and the increased production of its activities in Nicaragua.


The consolidated cash operating costs were $ 681 per ounce and was at the lower end of the guidance range of $ 675 to the Company at $ 690 per ounce of gold in 2013. While supporting cash costs for the year were $ 1.064 per ounce , slightly less than budgeted .


Adjusted net income in 2013 was $ 63.8 million ($ 0.10 per share ) compared to $ 79.7 million ($ 0.21 per share ) in 2012. Adjusted net income was primarily due to a significant decrease in the average realized gold price , partially offset by higher gold sales volumes . General and administrative expenses also increased by $ 14.3 million in the year, reflecting the additional costs related to the acquisition of CGA Mining Limited , premiums and changes in the number of employees.

Realized losses on derivatives and interest expense increased by $ 4.6 million and $ 2.8 , respectively. In addition , the burden of tax on current income increased $ 5 million in the year 2012 mainly due to higher gold production in Nicaragua. The benefit of the Masbate mine are currently in a tax-free period until 30 June 2015 . The tax-free period may be extended for two additional years if certain conditions are met.

For 2013 , the Company generated (GAAP) net income of $ 67.3 million ($ 0.11 per share ) compared to $ 51.9 million ($ 0.13 per share ) in 2012.


The Company plans another record year for gold production in 2014. Company-wide in 2014 of Masbate , La Libertad and Limon Mines production is expected to be around 395 000 to 420,000 ounces of gold , an increase of about 8% to 15 % compared to 2013 production due . All-in holding cash costs are expected to be in a range of $ 1,025 to $ 1,125 per ounce of gold . The production forecast for 2014 does not include the estimated production from the development project in Namibia Otjikoto revenues from the sale of pre- commercial production will be credited to mineral development costs of the property before the commercial production of gold. Consolidated operating cash costs are expected to be approximately $ 667 to $ 695 per ounce ( similar to the 2013 range ) . With the first full year of Gold Gold Otjikoto mine in Namibia in 2015 production, the Company plans 2015 gold production of 555,000 ounces , based on current assumptions .


Liquidity and Capital Resources

At December 31, 2013 , the Company remained in a strong financial position with cash of $ 252.7 million. The total cash available at December 31, 2013 was approximately $ 383 million , consisting of cash of $ 252.7 million , $ 100 million levy for ease of senior credit of the Company and 30 million dollars available through leasing equipment Cat Financial. In addition, the Company recently received approval from lenders to increase the facility by $ 50 million to $ 200 , subject to updating security documents to reflect the increased amount of the facility.
operations

Masbate Gold Mine

Production in the fourth quarter to Masbate Philippines mine was 46,963 ounces of gold at a cash operating cost of $ 779 per ounce of 1,713,319 tonnes of ore at an average grade of 1.03 grams per tonne ( "g / t" ) gold. This compares to 46,280 ounces budget to a cash operating cost of $ 833 per ounce. Mining and different types of materials budget , resulting in greater production of gold, and transportation costs lower areas.


For the full year 2013, the Masbate mine , including non - producing pre- acquisition due 7087 oz produced 176,483 ounces of gold in the range of previously published estimates of the Company 175 000 185,000 oz . As previously announced, gold production in the second quarter to the Masbate mine was about 7,000 ounces less than planned due to a temporary suspension of mining in June 2013 to replace a process pipeline . However, due to the increased production budget in the second half of 2013, the Masbate mine was able to meet its forecast range 2013.


Gold sales Masbate Mine totaled 47,536 ounces in the fourth quarter of 2013 at an average realized price of $ 1.367 per ounce, generating revenues of $ 65 million (which included a non- cash amount $ 9.3 million related to the recognition of deferred revenue ) . For the full year of 2013, the mine generated revenues Masbate gold of $ 274.1 million (which included a non- cash amount of $ 37.4 million related to the recognition of deferred revenue business ) the sale of 184,737 ounces at an average price of $ 1.484 per ounce.


Capital expenditures in the three and twelve months ended December 31, 2013 were $ 10.5 million and 31.3 million, respectively, primarily for expansion of the dam , major revisions to the mining equipment generators and a program of metallurgical testwork to be used for the study of the expansion , design and start of construction of a plant for water treatment and the purchase of a new mill SAG .
In 2013, the Company launched a program of sampling and metallurgical analysis to assess the potential of a plant expansion at the mine Masbate .

The expansion of the plant remains under evaluation and conclusions are expected for the third quarter of 2014.


Masbate mine is expected to produce approximately 190,000 to 200,000 ounces of gold in 2014, 8 % to 13 % more than in 2013 , at a cost of operating cash of $ 765 to $ 800 an ounce . In the second quarter of 2014, the existing SAG mill is expected to be replaced. Upon restart, the operation will save approximately 300,000 tonnes per year of operating capacity. Masbate mine is budgeted to process an average of 17,646 tonnes of ore per day for a total of about 6.44 million tonnes of ore for the year at an average grade of 1.15 g / t gold . In 2014 , the Company has budgeted capital costs of the Masbate mine about 37 million.
An aggressive 2014 exploration totaling $ 6.2 million is being with five diamond drills are currently working .

The 2014 program will consist of metallurgical and reserve / resource drilling on numerous veins of the mine.
operations Nicaragua

La Libertad gold mine


Gold production in the fourth quarter of La Libertad Mine was a new quarterly record of 42,709 ounces of gold, an increase of 42 % compared to the same quarter in 2012. Total production for 2013 was also a record 138,726 ounces of gold , exceeding 2013 guidance range of 131,000 to 137,000 ounces, and about 27 % more than in 2012. The main reasons for the improvement of production in 2013 were better quality performance from sources of mine and best times.
Gold sales of La Libertad mine totaled 44,649 ounces in the fourth quarter of 2013 at an average realized price of $ 1.245 per ounce, generating revenues of $ 55.6 million . In 2013 , La Libertad Mine generated revenues of gold $ 190 million from the sale of 138,758 ounces at an average price of $ 1.369 per ounce, compared to $ 179.6 million from the sale of 107,398 ounces at an average price of $ 1.672 per ounce in the same period of 2012.


In the fourth quarter of 2013 , La Libertad Mine produced 42,709 ounces of gold at a cash operating cost of $ 495 per ounce and a total cash cost of $ 522 per ounce of 522,846 tonnes of ore at an average grade 2.75 g / t gold. This compares to 40,759 ounces budget to a cash operating cost of $ 497 per ounce. Gold production in the fourth quarter exceeded the budget mainly due to better performance quality from sources pit (2.75 g / t versus budget of 2.48 g / t) , especially in Crimea and Santa Maria pits in November and December , as well as higher than expected gold recovery ( 92.5 % compared to the budget of 92%). Ore during the quarter came from all wells operating , including Jabali . Recovery of gold continues to outperform the budget of the Company optimizes its plant processes . Mill throughput averaged 5,692 tonnes per day for the quarter and is expected to increase to 6,099 tonnes per day after the addition of treatment tanks . In December, an average rate of 5973 tonnes per day ( 40 hours of scheduled maintenance ) .


For all of 2013 , La Libertad produced 138,726 ounces at a cash operating cost of $ 563 per ounce and total cash cost of $ 592 per ounce of 2,014,838 tonnes of ore extracted an average grade of 2.29 g / t gold. This compares with 135,571 ounces budget to a cash operating cost of $ 575 per ounce. Gold production for the year was higher than budget due to a better quality performance from sources pit (2.29 g / t versus budget of 2.19 g / t) and recovery of gold higher ( 93.8 % compared to the budget of 92%). Compared to 2012 , all stands in La Libertad helped better grades , especially Santa Maria pit where average grades mined in 2013 were 4.1 g / t.


Total capital expenditures in the fourth quarter of 2013 were $ 6.3 million , the main elements of the fund consisting of $ 2.1 million for feasibility Jabali and development (mainly land purchases) , 0, $ 9 million for deferred stripping in different wells and $ 1.1 million for infrastructure in Central Jabali . Total capital expenditures for 2013 were $ 32 million , including $ 11.3 million related to Jabali feasibility and development (including the construction of a private road transport 15 km to transport the ore deposit Jabali Libertad mill and the purchase of land for landfills ) , $ 9.4 million for deferred stripping, $ 3.2 million for infrastructure in Central Jabali , $ 4.2 million for equipment mining and $ 2.2 million for the expansion of the plant.


Libertad Mine is expected to produce about 143 000 to 150,000 ounces of gold in 2014 at a cash operating cost of approximately $ 545 to $ 565 per ounce. Gold production in 2014 in La Libertad increase by about 3 % to 8 % compared to 2013 production. Libertad Mine is budgeted to process an average of 6,099 tonnes of ore per day for a total of approximately 2.2 million tonnes of ore for the year at an average grade of 2.17 g / t gold. The Company has budgeted capital costs of La Libertad in 2014 of approximately $ 36.3 million .


Exploration budget for 2014 La Libertad is about $ 4.3 million for a total of approximately 10,500 meters of drilling planned. The program includes the drilling of resources on high-end underground targets Mojon and further exploration on a number of regional targets. The goal of exploration drilling this year is mainly directed towards the drilling of brownfields and evaluation of regional objectives in the search for more food stalls open for the plant.


El Limon gold mine


Gold production in the fourth quarter to the open pit and underground mine Limon was 15,905 ounces of gold, the best quarter in 12 years Limon . Limon also recorded its best year in the last 12 years , producing 58,191 ounces of gold , exceeding 2013 guidance range of 54,000 to 58,000 ounces, and about 19 % more than in 2012. Improving production to Limon mine in 2013 was primarily the result of the provision of higher grade ore , mainly from the underground mine and Veta Nueva Santa Pancha open and by higher plant - put .
Gold sales Limon Mine totaled 14,000 ounces in the fourth quarter of 2013 (Q4 2012 to 11,900 ounces) at an average realized price of $ 1.248 per ounce (Q4 2012 - $ 1700 per ounce ) , generating income of $ 17.5 million (Q4 2012 - $ 20.2 million). In 2013, the mine generated revenues Limon gold of 80.2 million (2012 - $ 79.5 million ) from the sale of 57,400 ounces ( 2,012 to 47,610 ounces) at an average price of $ 1.396 Oz (2012 - $ 1,670 per ounce ) .


In the fourth quarter of 2013, the Limon mine produces 15,905 oz of gold at a cash operating cost of $ 608 per ounce and total cash costs of $ 667 per ounce of 119,487 tonnes of ore at a grade averaging 4.53 g / t at a processed gold recovery of 91.4 %, compared to the budget of 14,326 ounces at a cash operating cost of $ 750/oz . Year of operation of surface and groundwater was better than expected, the rate was higher ( 1,299 tonnes per day) as a consequence of the plant liner redesign and optimization of downstream processes. Underground operations consist of 65 % of the power plant .

Lower budget operating costs also contributed to the favorable reduction in operating cash costs per ounce. Major economies for underground mining costs were reduced energy costs (both for the quantity and price).


The total annual gold production was 58,191 ounces at a cash operating cost of $ 652 per ounce and total cash cost of $ 735 per ounce of 445,001 tonnes of ore at an average grade of 4.46 g / t gold. This compares to 55,031 ounces budget at a cash operating cost of $ 727 per ounce.

In the fourth quarter of 2013 , capital expenditures totaled $ 4.5 million , which included $ 1.2 million for the development of the underground mine delayed , deferred stripping $ 0.5 million, the end of the leaching and draft CIP tank $ 0.6 million of mine 0.6 million equipment and plant improvement initiatives underway . Total capital expenditures for 2013 was $ 17 million , which included underground development deferred $ 4.3 million, deferred stripping $ 2.8 million expansion and improvement of $ 2.1 million, the mine equipment $ 2 million and plant breeding (including electrical , equipment and automation ) factory tanks $ 2.7 million.


The Limon mine is expected to produce approximately 62,000 to 70,000 ounces of gold in 2014 at a cash operating cost of approximately $ 650 to $ 675 per ounce. Gold production in 2014 at the Limon mine increase of about 7 % to 20 % compared to 2013 production. In 2014, the Limon mine is budgeted to treat approximately 0.5 million tonnes of ore at an average grade of 4.36 g / t gold. The Company expects to incur capital expenditures in the Limon Mine in 2014 totaling approximately $ 19.7 million . Capital expenditures in 2014 include the development of large underground mine .


Budget 2014 Limon exploration is about $ 4.3 million to fund approximately 10,700 meters of drilling . Programs include infill drilling underground and followed by other regional targets .
Development project Otjikoto , Namibia


Construction opencast mines Otjikoto Company remains on time and on budget. Construction should be completed and production is scheduled to begin in the fourth quarter of 2014.

Cost estimates pre-development of $ 244 million and estimated deferred stripping $ 33 million remained in line with initial estimates of the pre-feasibility study . In addition to these costs , the company had planned to lease a total of $ 60 million for mobile mining equipment and plant construction costs. However, because the regulations governing Namibia securitization of certain assets, the Company now expects to hire only the mobile mining fleet for a total of $ 41 million. The remaining costs of the plant was financed by existing cash flow of the Company and credit facilities . Arrangements leasing of mining fleet were signed during the fourth quarter of 2013 and should be completely removed and used for mid-2015.


The current mine plan is based on probable mineral reserves of 29.4 million tonnes grading 1.42 g / t containing 1,341,000 ounces of gold at a stripping ratio of 5.59:1 to be operated on a initial period of 12 years. The current average annual production for the first five years is estimated at 141,000 ounces of gold per year at an average cash operating cost of $ 524 per ounce and the mine life of approximately 112,000 ounces of gold per year at a cash cost of $ 689 average operating ounce.

However, based on the positive results of the drilling Wolfshag area to date, January 21, 2014 , the Company announced plans to expand the Otjikoto mine in 2015 , increasing the rate of ore of 2.5 million tonnes per year to 3 million tonnes. The increased flow will be achieved through the installation of a pebble crusher , the additional leach tanks and mining equipment for a total cost of approximately $ 15 million . Once the extension is completed at the end of 2015, the Company expects that annual gold production of the main pit Otjikoto increase to approximately 170,000 ounces .


In addition, the Company announced an inferred resource estimate of Wolfshag area in January 2014 . Wolfshag the newly discovered area is a long area of 1600 meters which is as close as 250 meters to the east of Otjikoto deposit. Inferred mineral resource estimate for Wolfshag area is 6.8 million tonnes grading 3.2 g / t gold containing 703,000 ounces of gold ( on a 100% basis ) .


The inferred mineral resource is reported in a $ 1.550 the ounce optimized Whittle pit gold above a cut-off grade of 0.5 g / t gold. Wolfshag the area directly adjacent to the portion of the east and northeast of the planned open pit Otjikoto deposit. High quality initial inferred resource estimate for Wolfshag area indicates the potential expansion of the gold and / or increasing the life of the mine Otjikoto gold project production.
Pre-production expenses for the year ended December 31, 2013 totaled approximately $ 167.3 million (on a cash basis ), including the purchase of mobile equipment of $ 46.5 million cost of the Central 30.6 million and costs prestripping 6.7 million.

The 2014 exploration program is budgeted Otjikoto 8 million. The exploration drilling program will primarily focus on infill drilling on the northern part of the Wolfshag area and will continue to test the extension of the South Wolfshag area . The Company expects to be able to update the classification of mineral resources of the class indicated at the end of 2014. The 2014 program will also include metallurgical and geotechnical Wolfshag area for test work .

Gramalote project development , British

The March 12, 2014 , the Company announced positive results of the Preliminary Economic Assessment ("PEA ") for the Gramalote goldproject Colombia. The property is a Gramalote B2Gold joint venture with AngloGold Ashanti as Project Manager 51% AngloGold Ashanti Limited ( " AngloGold Ashanti ") and 49%. Gramalote is located 230 kilometers north of Bogota and 80 km northeast of Medellin in central Colombia.
At levels of current gold prices , the economy Gramalote project are positive, but at this time do not move the project at the beginning of the list of priorities of the Company for the ongoing development towards a feasibility study. The JV partners have agreed on a work program for 2014 that advances the environmental impact so that it can be formally submitted to regulators by the Colombian second quarter of 2014, which is the key to advance the authorization process. The project will be considered again in the fourth quarter of 2014 to determine if the move to a feasibility study is warranted at this time.



Development project Kiaka , Burkina Faso

The Company holds a 90% stake in the project Kiaka following the acquisition of Volta in December 2013 . The property is located in the south-central Burkina Faso , in the province of Boulgou and regional Zoundweogo , about 140 kilometers southeast of the capital Ouagadougou.

The estimation of measured and indicated resources Kiaka project is 153,260,000 tonnes at a diluted grade of 0.99 g / t for 4,862,000 ounces of gold and an inferred resource of 33,740,000 tonnes at 0 , 93 g / t for 1,006,000 ounces of gold. Society progresses on a feasibility study based on the section of higher grade resource 54 million tonnes at an average grade of 1.49 g / t gold for 2.58 million ounces in measured and indicated .

The 2014 budget development Kiaka and West Africa is $ 8.7 million , mainly to complete the study permit and the advancement of exploration license Kiaka a business license , conducting a study of feasibility level for Kiaka with options lower rate ( including additional metallurgical program