B2Gold Falls Short of Revenue Expectations, Posts Net Loss as Production Declines
B2Gold Corp. (TSX: BTO) reported its financial results for Q3 2024, with total gold revenue reaching $448.2 million for the quarter, a 6.2% decline from $477.9 million in Q3 2023, which primarily reflects reduced gold sales despite a favorable rise in gold prices.
The average realized price per ounce increased significantly to $2,483 from $1,920 in the prior-year quarter, a trend that offset some of the negative impact from lower sales volume. Over the first nine months of 2024, B2Gold generated $1.4 billion in revenue, nearly stable compared to the $1.42 billion in the same period of 2023.
The company reported an attributable net loss of $634 million or $0.48 per share, primarily driven by a non-cash impairment charge of $661 million related to the Goose Project. In stark contrast, Q3 2023 saw a net loss of just $34.8 million, equivalent to $0.03 per share.
Excluding this impairment and other non-recurring charges, adjusted net income was $29 million, or $0.02 per share, down from $64.8 million, or $0.05 per share, in Q3 2023.
Operating cash flows continued to be a strong point, with cash provided by operating activities before working capital adjustments amounting to $118 million for the quarter. Despite a net loss, B2Gold’s operating cash flows for the first nine months of 2024 reached $757.1 million, significantly up from $509 million over the same period in 2023.
On the balance sheet, B2Gold held cash and equivalents of $431 million as of September 30, 2024, up from $307 million at the close of 2023. The company also maintained access to a $700 million revolving credit facility, drawing down $200 million this quarter and retaining $500 million for future needs.
B2Gold’s total gold production for the third quarter of 2024 was 180,553 ounces, a decrease from 225,052 ounces in Q3 2023. Year-to-date for 2024, B2Gold has produced 599,133 ounces, down from 721,732 ounces in the same period of 2023.
The firm’s key assets faced operational difficulties that impacted costs and production levels. The Fekola Mine, its largest asset in Mali, produced 78,207 ounces in Q3, down sharply from 128,942 ounces in the same quarter last year. Production delays were caused by damage to key equipment and inclement weather, which hindered access to high-grade ore. The mine’s cash operating costs spiked to $1,434 per ounce produced, up significantly from $688 per ounce in Q3 2023, revealing operational inefficiencies and cost pressures. All-in sustaining costs were even higher, reaching $2,287 per ounce sold compared to $1,261 in the prior year.
The Masbate Mine in the Philippines performed above expectations, producing 50,215 ounces in Q3 compared to 51,170 ounces last year. While production remained stable, cash operating costs per ounce were $811, closely aligned with Q3 2023 levels of $834, indicating efficient cost management. Masbate’s AISC were $1,167 per ounce sold, slightly higher than $1,124 in the previous year but well within the company’s target range.
In Namibia, the Otjikoto Mine outperformed with 52,131 ounces produced in Q3 2024, a substantial increase from 44,940 ounces in Q3 2023. Cash operating costs remained relatively low at $740 per ounce produced, compared to $785 last year, benefiting from higher-than-expected mill feed grade and throughput. Otjikoto’s AISC also fell to $896 per ounce sold, down from $1,178 in the previous quarter.
The Goose Project in Canada’s Back River Gold District has seen escalating costs, with a $661 million impairment charge in Q3, reflecting increased expenses and a revised timeline for the initial gold pour now set for Q2 2025. B2Gold’s management stated that the Goose Project remains a priority, with expected contributions of 120,000 to 150,000 ounces in 2025, although any further delays or cost overruns could amplify the project’s financial burden.
Amid its mixed quarterly results, B2Gold has declared a Q4 dividend of $0.04 per share, to be paid on December 12, 2024.
Looking ahead, B2Gold expects total 2024 production to reach the lower end of its guidance of 800,000 to 870,000 ounces, a conservative outlook that accounts for operational challenges and delays. In 2025, production is expected to recover, aided by higher-grade ore processing at Fekola, contributions from the Fekola Regional development, and the Goose Project’s anticipated output.
B2Gold last traded at $4.41 on the TSX.
Information for this briefing was found via the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
