TORONTO (miningweekly.com) – TSX-listed miner B2Gold on Friday said the fourth quarter ended December 31 and the full-year 2012 were record periods for both gold production and revenue from its two Nicaragua-based mines, but, the company warned costs may rise this year.

For the fourth quarter, B2Gold recorded 44 324 oz of gold from the La Libertad and Limon mines, of which it sold 41 627 oz for revenue of $70.8-million. During the full year the company produced 157 885 oz of gold – within guidance – and recorded revenue of $259.1-million.

The company said the total production from La Libertad was a record 108 935 oz of gold, which was within 2012 guidance and fourth-quarter gold totalled 30 113 oz. The main reasons for the improved production at the mine were improved gold grades of 1.80 g/t gold versus the budget of 1.77 g/t, and higher gold recoveries of 92.5% compared with the budget of 90.4%.

The Limon openpit and underground mine recorded its most successful year in the past nine years, producing 48 950 oz of gold. Fourth-quarter production was 14 211 oz, also the best quarter in nine years. Gold recoveries improved in 2012 to 91.06% compared with the budget of 90.06%.

B2Gold said it expected another record year for gold production, with consolidated production expected to total about 185 000 oz to 195 000 oz of gold, at a cash operating cost of about $605/oz to $635/oz.

The company said average operating cash costs per ounce have been budgeted to be around 4% higher in 2013 compared with the 2012 budget, mainly owing to higher contract mining costs, a higher strip ratio at La Libertad and higher consumables and power costs at both operations.

Last September, the company agreed to a $1.1-billion deal to acquire CGA Mining. B2Gold said it expected the merger to increase gold production to about 385 000 oz in 2013, and 400 000 oz in 2014. With the first full year of gold production from the Otjikoto project, in Namibia, scheduled for 2015, and increased production from the La Libertad mine, the company is expecting 2015 gold production of 550 000 oz.

B2Gold’s TSX-listed stock closed down half a per cent at C$3.95 apiece.