https://www.engineeringnews.co.za

B2Gold’s surprise Q3 profit props up stock despite 71% drop in headline earnings

B2Gold's new Fekola mine, in Mali

B2Gold's new Fekola mine, in Mali

Photo by B2Gold

9th November 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – Canadian multinational gold miner B2Gold has reported a stronger-than-expected third-quarter profit, despite its headline net profit – excluding special items – falling 71% year-over-year.

The Vancouver-headquartered company reported an adjusted net income for the three months ended September of $13.9-million, or $0.01 a share, down from $48.6-million, or $0.05 a share, in the comparable quarter of 2016. Analysts had on average expected headline earnings of nil per share, on revenue of $151.81-million.

Consolidated gold revenue came to $154.1-million on sales of 121 597 oz of gold, at an average price of $1 267/oz, which was 5% lower year-on-year. B2Gold advised that the 20%, or $38.9-million, decrease in revenue, was mainly attributable to the 16% decrease in gold sales volume, owing to lower output and the timing of gold shipments.

For the third quarter, the company generated net income of $12.4-million, or $0.01 a share, compared with a net income of $35.7-million, or $0.04 a share, in the same period a year ago.

Consolidated gold output in the quarter was 135 628 oz, including 6 340 oz of pre-commercial production from the newly constructed Fekola mine, in Mali, which was 2% above plan and 15% above the reforecast production profile. The better-than-budgeted reforecast consolidated gold output reflected the continued strong operational performances of both the Masbate mine, in the Philippines, and the Otjikoto mine, in Namibia, as well as the successful early start-up of the Fekola mine in September.

The miner, which has five producing mines spread across Namibia, the Philippines, Nicaragua and Mali, reported consolidated cash operating costs of $563/oz, 5% lower than budget, but 15% more than in the third quarter of 2016. Higher output at the Masbate and Otjikoto mines boosted the planned output and was partially offset by the lower ouput from La Libertad and El Limon mines, both in Nicaragua.

All-in sustaining costs (AISC) rose 8% quarter-on-quarter to $921/oz, compared with the planned $855/oz and $702/oz for the prior-year quarter. The increases were the result of higher-than-expected capital expenditures at the Otjikoto mine, owing to the timing of buying mobile equipment in the period, which was deferred from earlier this year.

For full-year 2017, B2Gold is projecting output to come in at the upper end of the company's revised guidance range of 530 000 oz to 570 000 oz and to be at the lower end of its cash operating costs guidance of $610/oz to $650/oz and AISC of between $940/oz and $970/oz. The strong operational performance is underpinned by continued strong performances from Masbate and Otjikoto which, combined with Fekola preprodution output, offset lower output from La Libertad and El Limon.

In 2018, with the planned first full-year of production from Fekola mine, B2Gold is projecting its consolidated gold output to rise 70% year-on-year to between 925 000 oz and 975 000 oz.

B2Gold’s TSX-listed stock closed up 3.67% on Wednesday, at C$3.39 a share, up 6.27% since the start of the year.

Edited by Samantha Herbst
Creamer Media Deputy Editor

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.069 0.123s - 156pq - 2rq
Subscribe Now