B2Gold Adjusted Profit Triples With Added Output From Fekola
(Kitco News)- B2Gold Corp. (TSX: BTO,NYSE American: BTG, NSX: B2G), which bills itself as the newest senior goldproducer, late Tuesday reported a sharply higher adjusted profit in the thirdquarter as output soared from a year ago after the opening of the Fekola Minein Mali in 2017.
The company generatedadjusted net income of $45 million, or a nickel per share, compared to $14million, or a penny, a year ago. Net income came in at $16 million, or a pennyper share, compared to $12 million, also a penny, in the third quarter of 2017.
With the Fekola Mine inits first full-year of production, consolidated gold output was a quarterlyrecord 242,040 ounces, which was an increase of 78%, or 106,412 ounces, overthe same period last year. Fekola produced 107,002 ounces of gold.
In addition, the MasbateMine in the Philippines produced 57,542 ounces, its second-highest quarterlyoutput ever. This was 24%, or 10,985 ounces, higher than the third quarter of2017.
With the higher goldvolume, company-wide revenue rose 110% from a year ago to $324 million.
B2Gold said it “remainswell on target to achieve transformational growth in 2018.” Full-year 2018production is forecast to be at the upper end of the company's guidance rangeof between 920,000 and 960,000 ounces. This would be an increase in annual goldproduction of approximately 300,000 ounces from 2017.
The company said it alsoexpects guidance of all-in sustaining costs of between $780 and $830 per ounce.
“With the Fekola Mine in production, theresulting increase in gold production levels combined with low costs havedramatically increased B2Gold's production, revenues, cash from operations andfree cash flows with ongoing benefits expected to continue for many years,based on current assumptions,” the company said in its earnings statement. “Ifa gold price assumption of $1,200 per ounce is used for the balance of 2018,the company expects to generate cash flow from operations of approximately $450million for the year.”
By Neils ChristensenFor Kitco News
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