B2gold Corp. · TSX:BTO
B2gold — Investor Presentation (September 2017)
47 slides from B2gold's investor presentation, September 2017
Slide 1: One of the World's Fastest-Growing Gold Producers
SEPTEMBER ACQUIRE | DISCOVER | FINANCE | BUILD | OPERATE 2017 ONE OF THE WORLD’S FASTEST-GROWING GOLD PRODUCERS
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 2 This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation, including projections of future financial and operational performance; stateme
Slide 3: Corporate Overview
CORPORATE OVERVIEW 3 Corporate Strategy: To continue growing a profitable and responsible gold producer through accretive acquisitions, exploration and execution, irrespective of the gold price Proven Management and Technical Teams • Former management and technical teams of Bema Gold Corporation • H
Slide 4: Mine & Project Locations
MINE & PROJECT LOCATIONS 4 1. Refer to slide 13 for details
Slide 5: Increasing Production, Decreasing Costs
INCREASING PRODUCTION, DECREASING COSTS 5 Annual Gold Production Growth (oz), All-in Sustaining Costs (“AISC”)/oz1 Consolidated AISC (/oz) 1. See “Non-IFRS measures” on slide 2 2. Estimated pre-commercial production at the Fekola Mine A – Actual E – Estimated: Based on current assumptions
Slide 6: B2Gold vs. Peers
B2GOLD VS. PEERS 6 Projected Production Growth Profile B2Gold outperforms its peers with production growth of 68% from 2016 A to 2018 E Source: Canaccord Genuity (as at September 18, 2017) 2016 A & 2018 E per public disclosure (latest MD&A) 2018 E production per Street Research Consensus for B2Gold
Slide 7: BTO Performance vs. S&P TSX
BTO PERFORMANCE VS. S&P TSX 7 Gold Index & Gold Price (2 Year) GDXJ Rebalancing (March – June 2017) 1. Source: Canaccord Genuity (as at September 7, 2017, and indexed to September 15, 2015) Prices shown are closing prices in Canadian dollars
Slide 8: Fully-Funded Growth
FULLY- FUNDED GROWTH 8 Utilizing operating cash flow and innovative, non-equity financings to fund the construction of the Fekola Mine Revolving Credit Facility (“RCF”) • RCF for an aggregate of $500 M (can be increased to $600 M)1 Gold Prepayment Arrangements • Cash proceeds received up-front in re
Slide 9: Health, Safety & Environment (HSE) Performance
HEALTH, SAFETY & ENVIRONMENT (“HSE”) PERFORMANCE 9 Commitment to Execution An industry leader in HSE performance1 • Masbate Mine – 657 days without a loss time injury (“LTI”) • Otjikoto Mine – 239 days without a LTI • Fekola Project – 450 days without a LTI • 50% reduction in loss time injury freque
Slide 10: Production & Cost Overview
PRODUCTION & COST OVERVIEW 10 First Half (“FH”) 2017 Full Year (“FY”) 2017 Guidance FY 2018 Guidance3 • Consolidated gold production of • Consolidated gold production guidance • New consolidated gold production 254,184 oz is forecast to be between 530,000 – guidance is forecast to be between (4% abo
Slide 11: Proven Construction Team
PROVEN CONSTRUCTION TEAM 11 Successfully Constructed 5 Mines for Bema Gold & B2Gold on Schedule & Budget 2001 2007 2010 2014 2017 Julietta Mine, Kupol Mine, La Libertad Mine, Otjikoto Mine, Fekola Mine, Russia Russia Nicaragua Namibia Mali (Bema Gold) (Bema Gold) (B2Gold) (B2Gold) (B2Gold)
Slide 12: Mining in Mali
MINING IN MALI 12 Fekola Project Mali is Africa’s 3rd largest gold producer 8 mines operating in a prolific 40+ Moz district (which includes the Fekola Mine) located in a stable region unaffected by the current conflict in the far northeast of the country Democratic government widely praised for tra
Slide 13: Fekola Mine Update
FEKOLA MINE UPDATE 13 Construction of the mill is complete and ore processing has commenced, more than 3 months ahead of the original construction schedule, and is on budget. Gold is in the circuit and the first gold pour is anticipated by mid-October 2017 The Company expects to achieve commercial p
Slide 14: Fekola Mine: Comparison of OFS & New LOM Plan
FEKOLA MINE 14 Comparison of the OFS & New Life of Mine (“LOM”) Plan In September 2017, B2Gold completed a new LOM Parameters1 OFS – 4 Mtpa New LOM – 5 Mtpa plan for the Fekola Mine that: (June 2015) (September 2017) LOM (years) 12.5 10 • Confirmed the original reserve and resource Gold Production:
Slide 15: Fekola Property Exploration
FEKOLA PROPERTY EXPLORATION 15 Upside Potential B2Gold’s exploration team believes that the Fekola Property has the potential to host additional large Fekola-style gold deposits; work-to-date has identified multiple targets To date1, B2Gold has drilled approximately 2,800 aircore, reverse circulatio
Slide 16: Fekola Mine Exploration Upside
FEKOLA MINE EXPLORATION UPSIDE 16 Kiwi & Fekola Deeps Zones: Schematic Long Section
Slide 17: Fekola Regional Exploration
FEKOLA REGIONAL EXPLORATION 17 Upside Potential Fekola Regional Exploration: Anaconda-Adder Zone Anaconda-Adder are significant zones of saprolite-hosted gold mineralization across several targets, which extend 1.5 km along strike, and are 250 m wide and 40 m deep (vertical) On June 15, 2017, B2Gold
Slide 18: Corporate Social Responsibility (CSR) Awards
CORPORATE SOCIAL RESPONSIBILITY (“CSR”) AWARDS 18 Strong Commitment to CSR 2017 Saringaya Award in 2016 Friend of the Environment the Philippines for the Award in Nicaragua for B2Gold's Masbate operations’ commitment to source water contribution to protection and environmental environmental protecti
Slide 19: Focus for the Next 12 Months
FOCUS FOR THE NEXT 12 MONTHS 19 Pathway to Continued Growth Operations: Continue to optimize operations at existing mines Fekola Mine: Pour first gold by mid-October 2017 Fekola Mine: Achieve commercial production by year-end 2017 Fekola Mine Exploration Upside: Continue drilling to convert MI&I res
Slide 20: Appendix
20 APPENDIX
Slide 21: B2Gold History
B2GOLD HISTORY 21 Experienced Management Team November 2006 December 2007 October 2008 March 2009 B2Gold Corp. was founded as a private company by Completed a C$100 M IPO Graduated to the TSX Became a gold producer when the Company the former management and technical teams of on the TSX-V (“BTO”) ac
Slide 22: Key CSR Initiatives
KEY CSR INITIATIVES 22 Responsible Mining: Raising the Bar Nicaragua: The Philippines: • Reforestation • Mangrove Reforestation • Water Treatment • Health: TB focus • Anti-epidemic Prevention • Education • La Libertad & Santo Domingo • Capsay Egg Producers Dairy Chilling Centre Association (“CEPA”)
Slide 23: Mining in Mali
MINING IN MALI 23 Fekola Project: Further Details Mali, West Africa
Slide 24: Fekola Mine
Coarse Ore Stockpile Primary Gyratory Crusher Reclaim Apron Feeders + Sodium Cyanide SAG mill Cyclones + Lime ——> Ball Mill Pebble Crushers Cyclone Feed Pump Box + Oxygen Gas +Air Tesch cic + Sodium Cyanide +50; (SMBS) aria Cireuit + Lead Nitrate + Copper Sulphate aw Leach cp Cyanide Trash Screens G
Slide 25: Fekola Mine: Design Details (i)
FEKOLA MINE 25 Design Details (i) Fekola Plant has a design throughput of 5 Mtpa (607 tonnes per hour) Overall plant recovery designed to be 92.5% Includes: • Primary single stage gyratory crusher • SABC grinding circuit Photo Cation Here • Residence time for leaching is 24 hours Recently-taken phot
Slide 26: Fekola Mine: Design Details (ii)
FEKOLA MINE 26 Design Details (ii) Gyratory crusher: 42” x 65” SAG mill: 36’ diameter (“dia”) x 20’ Ball mill: 24’ dia x 38’ Leach tank: 17.2 m dia x 18 m Number of leach tanks: 6 Leach tank residence time: 24 Looking northwest at the Fekola gold plant hours
Slide 27: Fekola Mine Construction
FEKOLA MINE CONSTRUCTION 27 Construction Details: By Numbers1 The mill was constructed by B2Gold’s world-class construction team with the same attention to detail and safety as all of its other projects: • More than 1,300 employees during peak construction • More than 1,100 Malians (the remaining em
Slide 28: Fekola Plant Construction
FEKOLA PLANT CONSTRUCTION 28 Construction Details: By Numbers1 The mill construction was completed more than 3 months ahead of schedule (including the expansion) and the plant is expected to produce gold in mid- October 2017 The mill is expected to ramp up to commercial production by year-end 2017 K
Slide 29: Mining in the Philippines
MINING IN THE PHILIPPINES 29 Masbate Mine Long mining history Strong mineral potential Favorable investment / tax regime: 30% corporate tax, 2% excise tax, income tax holiday for B2Gold expired on June 30, 2017 Masbate Mine is the largest employer and contributor to GDP on Masbate Island The Philipp
Slide 30: Regulatory Update
REGULATORY UPDATE 30 B2Gold is recognized as one of the most responsible mining companies in the Philippines. The company believes it is in compliance with the laws and regulations in the Philippines and will continue to operate responsibly and work closely with local communities and all levels of g
Slide 31: Masbate Mine
MASBATE MINE 31 Profile1 FH 2017 gold production of 102,492 oz (9% above budget) FH 2017 cash operating costs at $520/oz (22% below budget) FH AISC 2017 at $838/oz (21% below budget) Improvement against budget mainly due to better than expected throughput and recoveries Location Philippines driven b
Slide 32: Mining in Namibia
MINING IN NAMIBIA 32 Otjikoto Mine Population of 2.3 M (2011 World Bank estimate) Strong history of mining Mining plays a vital role in the Namibian economy Stable government Encourages foreign investment Mining corporate tax rate: 37.5%, NSR 4% Favourable tax treatment on capital expenditures Namib
Slide 33: Otjikoto Mine
OTJIKOTO MINE 33 Profile1 FH 2017 gold production of 83,937 oz (17% above budget) FH 2017 cash operating costs at $467/oz (26% below budget) FH 2017 AISC at $721/oz (41% below budget) Positive results are due to better than expected grade and ore tonnage from the Wolfshag Ownership 90% open pit and
Slide 34: Mining in Nicaragua
MINING IN NICARAGUA 34 La Libertad & El Limon Mines (i) Long mining history with a strong Mining Law Rated the safest country in Central America Modern infrastructure and easily accessible Democratic Republic Nicaragua, Central America Government supportive of foreign investment Tax regime: 3% NSR a
Slide 35: Mining in Nicaragua
MINING IN NICARAGUA 35 La Libertad & El Limon Mines (ii) B2Gold is one of the major employers in Nicaragua with more than 3,000 employees and contractors B2Gold is the largest exporter of gold in the country and the largest individual exporting company in the country Nicaragua, Major contributor to
Slide 36: La Libertad Mine
LA LIBERTAD MINE 36 Profile1 FH 2017 gold production of 51,154 oz (7% below budget) FH 2017 cash operating costs at $778/oz (9% above budget) FH 2017 AISC at $965/oz (4% above budget) Ownership 100% Looking forward, focus is on: Location Nicaragua • Accelerated development of the new San Juan and Mo
Slide 37: El Limon Mine
EL LIMON MINE 37 Profile1 FH 2017 gold production of 16,601 oz (31% below budget) FH 2017 cash operating costs at $1,149/oz (46% above budget) FH 2017 AISC at $1,727/oz (30% above budget) Improved control of underground water has been achieved with the successful rehabilitation Ownership 95% of a ke
Slide 38: Burkina Faso
BURKINA FASO 38 Kiaka Project & Toega Prospect Population of 20.1 M Landlocked country with principal contributions to GDP being agriculture and mining 5th largest gold producer in Africa (41.6 t in 2016) and 19th largest global producer Burkina Faso, 8 gold development projects in the West Africa p
Slide 39: Kiaka Project
KIAKA PROJECT 39 Profile1 One of the largest undeveloped gold resources in West Africa Prior to the Kiaka acquisition in December 2013, B2Gold determined that the Kiaka deposit would require higher gold prices or nearby exploration success to become economically viable Low acquisition cost of approx
Slide 40: Toega Prospect
TOEGA PROSPECT 40 Kiaka Regional Exploration On February 13, 2017, B2Gold announced positive exploration drill results at the new Toega prospect near the Kiaka deposit and has increased the footprint of known mineralization at Toega – additional drill results are expected to be released in Q4 2017 D
Slide 41: Exploration Budget
EXPLORATION BUDGET 41 2017 Summary Country Project Totals % Mali Fekola/Regional $15,355,296 29.2% Burkina Faso Kiaka/Regional $10,157,392 19.3% Nicaragua La Libertad $7,161,165 12.7% Namibia Otjikoto $5,071,581 9.6% The Philippines Masbate $5,055,463 9.6% Nicaragua El Limon $6,964,254 9.4% Finland
Slide 42: Probable Mineral Reserve Estimates
PROBABLE MINERAL RESERVE ESTIMATES1 42 As of December 31, 2016 Mine Tonnes (t) Gold Grade (g/t Au) Contained Gold Ounces (oz) Contained Gold Kilograms (kg) Fekola 43,800,000 2.37 3,340,000 103,900 Masbate 95,290,000 0.88 2,683,000 83,500 Otjikoto 23,140,000 1.33 986,000 30,700 La Libertad 1,910,000
Slide 43: Notes to Mineral Reserve Estimates
NOTES TO MINERAL RESERVE ESTIMATES 43 1. Mineral Reserves have been classified using the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves. All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent summation differences between
Slide 44: Measured & Indicated Mineral Resource Estimates
MEASURED & INDICATED MINERAL RESOURCE ESTIMATES1 44 As of December 31, 2016 Mine Tonnes (t) Gold Grade (g/t Au) Contained Gold Ounces (oz) Contained Gold Kilograms (kg) Measured Kiaka 27,310,000 1.09 953,000 29,600 Gramalote 15,980,000 0.79 406,000 12,600 Total Measured Mineral Resources 1,359,000 4
Slide 45: Inferred Mineral Resource Estimates
INFERRED MINERAL RESOURCE ESTIMATES1 45 As of December 31, 2016 Mine Tonnes (t) Gold Grade (g/t Au) Contained Gold Ounces (oz) Contained Gold Kilograms (kg) Fekola 4,430,000 1.73 246,000 7,600 Masbate 10,100,000 0.74 240,000 7,500 Otjikoto 1,720,000 5.42 299,000 9,300 La Libertad 2,900,000 4.94 460,
Slide 46: Notes to Mineral Resource Estimates
NOTES TO MINERAL RESOURCE ESTIMATES 46 1. Mineral Resources have been classified using the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves. Mineral Resources are reported inclusive of those Mineral Resources that have been modified to Mineral Reserves. Mineral Resources that
Slide 47: Contact Details
47 CONTACT DETAILS B2Gold Corp Clive Johnson Suite 3100, 595 Burrard Street President, CEO & Director P.O. Box 49143 +1 604 681 8371 Vancouver, BC, Canada, V7X 1J1 Ian MacLean Vice President, Investor Relations Tel: +1 604 681 8371 +1 604 681 8371 Toll Free: +1 800 316 8855 Fax: +1 604 681 6209 Kati