B2gold Corp. · TSX:BTO
B2gold — Investor Presentation (February 2020)
44 slides from B2gold's investor presentation, February 2020
Slide 1: A Low-Cost Senior Gold Producer
ACQUIRE | DISCOVER | FINANCE | BUILD | OPERATE ACQUIRE | DISCOVER | FINANCE | BUILD | OPERATE A LOW-COST SENIOR GOLD PRODUCER February 2020 THE WORLD’S NEW SENIOR GOLD PRODUCER TSX: BTO NYSE AMERICAN: BTG NSX: B2G
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 2 Tom Garagan, Senior Vice President of Exploration, a Qualified Person as defined by National Instrument 43-101, has approved the scientific and technical information concerning B2Gold Corp. ("B2Gold") discussed in this presentation. All amounts in this presentation are express
Slide 3: Mine & Project Locations
MINE & PROJECT LOCATIONS 3 1. Includes Anaconda Area
Slide 4: Corporate Overview
CORPORATE OVERVIEW 4 A Low-Cost Senior Gold Producer Successful history of exploration success, accretive COMBINED EXECUTIVE EXPERIENCE acquisitions, production growth and political risk management +280 YEARS of working together for Bema Gold and B2Gold Ongoing commitment to the highest standards of
Slide 5: Managing Political Risk and Succeeding
MANAGING POLITICAL RISK 5 B2Gold’s Competitive Advantage/Keys to Success PROVEN TRACK RECORD B2GOLD’S GUIDING OF BEMA GOLD AND B2GOLD BUSINESS PRINCIPLES: MANAGING POLITICAL RISK FAIRNESS | RESPECT TRANSPARENCY | ACCOUNTABILITY AND SUCCEEDING IN COUNTRIES AROUND THE WORLD Always delivering on our pr
Slide 6: Strong & Profitable Production Profile
STRONG & PROFITABLE PRODUCTION PROFILE 6 Annual Gold Production Growth (oz) Fekola Mine, Mali Otjikoto Mine, Namibia Masbate Mine, The Philippines La Libertad Mine, Nicaragua El Limon Mine, Nicaragua Equity interest in Calibre Mining Corp. Consolidated all-in sustaining costs (“AISC”) /oz1 1. Non-IF
Slide 7: Share Price Performance: Past 10 Years
SHARE PRICE PERFORMANCE: PAST 10 YEARS 7 B2Gold vs. Gold Price & TSX Global Gold Index 320% B2Gold Gold Price 270% TSX Global Gold Index +243% 220% + 170% 120% 70% + +42% 20% -30% (35%) Credit: Canaccord Genuity (January 20, 2020) -80% Source: Bloomberg Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-
Slide 8: Consolidated Five-Year Outlook: 2020 - 2024
CONSOLIDATED FIVE-YEAR OUTLOOK: 2020 - 2024 8 Consolidated gold production averaging 950 Koz /y based on current operating plans1 AISC2 averaging under $825 /oz Operating plans include: • Fekola mining and processing expansion • Fekola solar plant construction • Otjikoto-Wolfshag underground mine de
Slide 9: Health & Safety Performance
HEALTH & SAFETY PERFORMANCE: BY YEAR 9 Results1 : 0.8 2019 FREQUENCY BENCHMARKS/TARGETS Otjikoto: 0 lost-time-injury (“LTI”) 0.7 and severity2 (+5 M work hours) 643 days without an LTI 0.6 0.5 Masbate: 0 LTI and severity (200 K HOURS) (+6.5 M work hours) 0.4 408 days without an LTI 0.3 Fekola: reduc
Slide 10: Responsible Mining
RESPONSIBLE MINING 10 Raising the Bar CEPA, the Philippines Otjikoto solar plant, Namibia New Fadougou village, Mali The Philippines THE PHILIPPINES: NAMIBIA: MALI: THE JANTZI INDEX: • Capsay Egg Producers Association • Development workshop • AFECK1 Project – ‘Skills for • Added to the Jantzi Social
Slide 11: Environmental Strategic Plan
ENVIRONMENTAL STRATEGIC PLAN 11 Energy & Climate Change Energy and climate change: • Continued implementation of renewable energy sources • Further integration of climate change risk into policy and enterprise and site risk assessment • External energy and climate change report • Leading to emission
Slide 12: Environmental Strategic Plan: Solar Power
ENVIRONMENTAL STRATEGIC PLAN 12 Solar Power Otjikoto solar plant: Fekola solar plant: Commenced operation in May 2018 Expected to be completed in third quarter (”Q3”) 2020 • One of the first fully-autonomous hybrid plants in • The largest off-grid hybrid solar/HFO plant in the world the world: 30 me
Slide 13: 2019 Consolidated Gold Production, Costs & Revenue
2019 CONSOLIDATED 13 Gold Production, Costs & Gold Revenue GOLD PRODUCTION: Fourth quarter CASH OPERATING COSTS2: AISC2: (“Q4”) 2019 First quarter 245,140 oz (“Q1”) 2019: $520 - $560 $835 - $875 230,859 oz (/oz) (/oz) 2019 GUIDANCE 2019 GUIDANCE 2019 GUIDANCE: Full-year FY 2019 gold revenue3: 935 Ko
Slide 14: Strong Financial, Liquidity & Cash Position
STRONG FINANCIAL, LIQUIDITY & CASH POSITION 14 Debt reduction in 2018: Larger Fekola mine fleet financing: • Was $700 M1 at December 31, 2017 Up to $40 M of Fekola mine fleet costs expected to be • Reduced to $480 M at December 31, 2018 funded with CAT equipment loans in 2020 Debt reduction in 2019:
Slide 15: 2020 Consolidated Guidance
2020 CONSOLIDATED GUIDANCE 15 Projected Gold Production, Costs, Gold Revenue & Cash Flows from Operating Activities Gold production1: Projected gold revenue3: 1,000 Koz - 1,055 Koz approx. $1.5 B Cash operating costs2: Projected cash flows from $415 - $455 /oz operating activities3: approx. $700 M A
Slide 16: 2020 Mine-by-Mine Production Guidance
2020 MINE-BY-MINE PRODUCTION GUIDANCE 16 Consolidated: Gold production: 1,000 Koz - 1,055 Koz Cash operating costs1: $415 - $455 /oz Namibia, Otjikoto Mine OPEN PIT AISC1: $780 - $820 /oz 18% Gold production: 165 Koz - 175 Koz Cash operating costs: $480 - $520 /oz AISC: $1,010 - $1,050 /oz Mali, Fek
Slide 17: Fekola Mine Overview
FEKOLA MINE OVERVIEW 17 2019 Production/2020 Guidance GOLD PRODUCTION: Q1 2019: CASH OPERATING COSTS5: Q4 2019: 110,349 oz 119,243 oz $370 - $410 Ownership 80% /oz Mine type Open pit 2019 GUIDANCE 2020 exploration budget $18 M (all Mali) 2019 FY 2019: GUIDANCE4: 455,810 oz 2020 capex (sustaining) $7
Slide 18: Masbate Mine Overview
MASBATE MINE OVERVIEW 18 2019 Production/2020 Guidance GOLD PRODUCTION: CASH OPERATING COSTS5: Q1 2019: Q4 2019: 57,481 oz 50,741 oz $625 - $665 /oz Mine type Open pit 2019 GUIDANCE 2019 2020 exploration budget $8 M GUIDANCE: FY 2019: 200 Koz - 210 Koz 217,340 oz 2020 capex (sustaining) $28 M AISC5:
Slide 19: Otjikoto Mine Overview
OTJIKOTO MINE OVERVIEW 19 2019 Production/2020 Guidance GOLD PRODUCTION: Q1 2019: CASH OPERATING COSTS5: Q4 2019: 58,422 oz 32,712 oz $520 - $560 Ownership 90% /oz Mine type Open pit 2019 GUIDANCE 2019 FY 2019: 2019 exploration budget $4 M (all Namibia) GUIDANCE: 165 Koz - 175 Koz 177,966 oz 2019 ca
Slide 20: Proven Construction Team
PROVEN CONSTRUCTION TEAM 20 Successfully Constructed Five Mines for Bema Gold & B2Gold on Schedule & on 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 21: Fekola Mine Project Timeline
FEKOLA MINE 21 Project Timeline Expansion study Achieved approved: Optimized feasibility commercial 6 million tonnes per study announced: production: annum (“Mtpa”) to Indicated Mineral 111,450 oz 7.5 Mtpa Resource: 4.3 Moz produced 455,810 oz produced Inferred Mineral (Sep 2017 - (Jan 1, 2019 - Res
Slide 22: Fekola Expansion 2015 - 2020
FEKOLA EXPANSION 22 2015 - 2020 • Original feasibility study • Mill construction and expansion • Completed preliminary study to • Construction commenced in throughput completed. Additional capex expand Fekola mill from October 2019 and is expected approx. $18 M 6 Mtpa to 7.5 Mtpa to be completed in
Slide 23: Fekola Mine Deposit Schematic Long Section
FEKOLA MINE 23 Fekola Deposit Schematic Long Section (West-facing)
Slide 24: 2020 Updated Fekola Mineral Resource
2020 UPDATED FEKOLA MINERAL RESOURCE 24 Organic Growth Resources reported within a pit shell using a $1,500/oz gold price1: • Indicated Mineral Resource estimate of 110.60 million tonnes (“Mt”) at 1.70 grams per tonne (“g/t”), containing 6.05 Moz of gold2 • Inferred Mineral Resource estimate of 7.02
Slide 25: 2020 Exploration: Fekola & Regional Targets
2020 EXPLORATION 25 Fekola & Regional Targets Approx. 41,000 m of diamond drilling and RC drilling is planned for several zones in the Anaconda Area, located approx. 20 km from Fekola (refer to fig. 1) Drilling will focus on expanding the known shallow saprolite resources at the Adder and Mamba zone
Slide 26: Mamba Schematic Long Section
MAMBA SCHEMATIC LONG SECTION 26
Slide 27: 2020 Exploration Budget
2020 EXPLORATION BUDGET 27 International Greenfields/other projects Mali Several exploration ventures around the Fekola regional targets: world in jurisdictions and geologic Drilling 41,000 m on several zones in environments that have the potential for the Anaconda Area located 20 km large deposits
Slide 28: Gramalote Project: Colombia - PEA (i)
GRAMALOTE PROJECT: COLOMBIA 28 Preliminary Economic Assessment (“PEA”)1 (i) The Gramalote Project is a JV between B2Gold (48.3%) and AngloGold Ashanti (“AGA”) (51.7%) The companies have agreed that B2Gold will sole fund the first $13.9 M of expenditures, following which B2Gold will own a 50% interes
Slide 29: Gramalote Project: Colombia - PEA (ii)
GRAMALOTE PROJECT: COLOMBIA 29 Preliminary Economic Assessment (ii) The PEA has updated and enhanced previous studies on the Gramalote Project in several areas, including: • At Gramalote Ridge, additional drilling has been completed and a new Mineral Resource model has been developed • Recent metall
Slide 30: Gramalote PEA: Highlights
GRAMALOTE PEA: HIGHLIGHTS 30 Assuming an effective date of January 1, 2020, and a gold price of $1,350 /oz, Gramalote Ridge project economic highlights from the PEA include: • An open-pit gold mine with an initial LoM of 13.6 years • LoM pre-tax net cash flow of $1,827 M and after-tax net (based on
Slide 31: Gramalote Project: Feasibility Study
GRAMALOTE PROJECT: FEASIBILITY STUDY 31 B2Gold and AGA have agreed to a budget in 2020 for the feasibility study of approx. $37M This budget will fund 42,500 m of infill drilling and 7,645 m of geotechnical drilling focusing on the Gramalote Ridge zone – drilling has commenced and is scheduled for c
Slide 32: 2020 Catalysts
2020 CATALYSTS 32 Fekola: • Updated 2020 mine plan to be included in the 2020 AIF: late Q1 2020 • Additional drill results from the Fekola North Extension and Anaconda Area: to be released throughout the year • Completion of the Fekola Mine expansion: Q3 2020 • Completion of the Fekola solar plant:
Slide 33: Appendix
33 APPENDIX
Slide 34: B2Gold Board of Directors
B2GOLD BOARD OF DIRECTORS 34 CLIVE JOHNSON ROBERT CROSS ROBERT GAYTON JERRY KORPAN BONGANI MTSHISI President, Chairman Director Director Director CEO & Director KEVIN BULLOCK GEORGE JOHNSON ROBIN WEISMAN LIANE KELLY Director Director Director Director Appointed: January 1, 2020
Slide 35: Unsurpassed Executive Team Experience
UNSURPASSED EXECUTIVE TEAM EXPERIENCE 35 +280 Years of Combined Experience Working Together for Bema Gold & B2Gold CLIVE JOHNSON ROGER RICHER MIKE CINNAMOND TOM GARAGAN DENNIS STANSBURY BILL LYTLE IAN MACLEAN DALE CRAIG President, EVP, General Counsel SVP Finance & CFO SVP Exploration SVP Engineerin
Slide 36: Fekola Expansion Technical Report Highlights
FEKOLA EXPANSION TECHNICAL REPORT1,2 36 Highlights Assuming an effective date of January 1, 2019, a gold price of • Forecast expansion capital payback period of less than 1 year $1,300 /oz and a discount rate of 5%, project economics highlights from the Expansion Study PEA include: • Estimated proce
Slide 37: Fekola Expansion: Update
FEKOLA EXPANSION: UPDATE 37 Detailed engineering and design activities have been completed All major long-lead items have been ordered Construction commenced in Q4 2019 and is scheduled to be completed by Q3 2020 The processing upgrade will focus on: • Increased ball mill power • Upgrades to the cyc
Slide 38: Corporate Social Responsibility Awards
CORPORATE SOCIAL RESPONSIBILITY (“CSR”) AWARDS 38 Commitment to the Highest Standards of CSR Text Herethe Philippines Masbate, B2Gold nursery, Nicaragua Mangrove reforestation program, the Philippines Otjikoto Nature Reserve, Namibia 2019 Gawad Kaligtasan at Kalusugan 2017 Exporter of the Year (CSR)
Slide 39: Probable Mineral Reserve
PROBABLE MINERAL RESERVE1 39 As of December 31, 2018 Country Mine Tonnes (t) Gold Grade (g/t Au) Contained Gold Ounces (oz) Mali Fekola 43,000,000 2.38 3,290,000 The Philippines Masbate 81,500,000 0.82 2,160,000 Namibia Otjikoto 19,800,000 1.54 980,000 La Libertad* 1,100,000 2.01 70,000 Nicaragua El
Slide 40: Notes to Mineral Reserve
NOTES TO MINERAL RESERVE 40 1. Mineral Reserves have been classified using the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"). All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent summation differences between tonnes, grade, and
Slide 41: Measured & Indicated Mineral Resource
MEASURED & INDICATED MINERAL RESOURCE1 41 As of December 31, 2018 Country Mine or Project Tonnes (t) Gold Grade (g/t Au) Contained Gold Ounces (oz) Measured Burkina Faso Kiaka 33,700,000 1.09 1,180,000 Total Measured Mineral Resources – 100% Project Basis 1,180,000 Indicated Mali Fekola 87,100,000 1
Slide 42: Inferred Mineral Resource
INFERRED MINERAL RESOURCE1 42 As of December 31, 2018 Country Mine or Project Tonnes (t) Gold Grade (g/t Au) Contained Gold Ounces (oz) Fekola 26,500,000 1.61 1,370,000 Mali Anaconda 21,600,000 1.11 770,000 The Philippines Masbate 18,000,000 0.90 520,000 Namibia Otjikoto 4,200,000 2.27 310,000 La Li
Slide 43: Notes to Mineral Resource
NOTES TO MINERAL RESOURCE 43 1. Mineral Resources have been classified using the CIM Standards. Mineral Resources are reported inclusive of those Mineral Resources that have been modified to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Slide 44: Contact Details
44 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