B2Gold Reports Record Third Quarter 2012 Financial Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/14/12 -- B2Gold Corp. (TSX: BTO)(OTCQX: BGLPF)(PINKSHEETS: BGLPF) ("B2Gold" or the "Company") reports its results from its operations for the third quarter ended September 30, 2012. All dollar figures are in United States dollars unless otherwise indicated.
2012 Third Quarter Highlights
-- Record gold production of 42,156 ounces, ahead of budgeted guidance of
39,517 ounces of gold
-- Adjusted net earnings(1) of $19.6 million ($0.05 per share)
-- Consolidated operating cash cost of $571 per ounce of gold, lower than
budget of $574 per ounce of gold
-- Cash flow from operations of $28.4 million ($0.07 per share) before
changes in non-cash working capital
-- Record gold revenue of $67.1 million
-- Record gold sales of 39,668 ounces
-- Cash and cash equivalents of $73.2 million at quarter end
-- Update on Proposed B2Gold and CGA Mining Limited ("CGA") Merger
-- Mining permit and road construction permit received for the Jabali
Central deposit on La Libertad property in Nicaragua
2012 Year to Date Highlights
-- Record gold production of 113,561 ounces
-- Adjusted net earnings(1) of $61.5 million ($0.16 per share)
-- Cash flow from operations of $83.3 million ($0.22 per share) before
changes in non-cash working capital (13% increase compared to 2011)
-- Record gold revenue of $188.3 million
-- Consolidated operating cash cost of $580 per ounce of gold
-- Full year gold production and operating cash cost per ounce guidance
maintained
Financial Results
B2Gold reported adjusted net earnings(1) for the quarter, of $19.6 million ($0.05 per share) compared to $18.3 million ($0.05 per share) in the same period of 2011.
Cash flow from operating activities for the third quarter of 2012 was $28.4 million ($0.07 per share), compared to $27.8 million ($0.07 per share) in the second quarter of 2012 and $20.0 million ($0.06 per share) in the third quarter of 2011. The Company remains debt-free and in a strong financial position with $73.2 million in cash as at September 30, 2012.
For the third quarter of 2012, the Company generated (GAAP) net income of $14.5 million ($0.04 per share) compared to $9.0 million ($0.03 per share) in the equivalent period of 2011.
(1) Adjusted net income is a non-GAAP measure which excludes foreign
exchange gains (losses) and non-cash items consisting of deferred
income tax expense and share-based payments expense.
Gold Revenue
Gold revenue for the third quarter of 2012 increased to a record $67.1 million on sales of 39,668 ounces at an average price of $1,691 per ounce (the average quarter spot price was $1,652 per ounce) compared to $50.5 million on sales of 29,672 ounces at an average price of $1,701 per ounce in the 2011 third quarter. Gold revenue increased by approximately 33% compared to the corresponding quarter in 2011, mainly due to higher gold ounces sold.
In the third quarter, La Libertad Mine accounted for $44.9 million of gold revenue from the sale of 26,463 ounces while $22.2 million was contributed by the Limon Mine from the sale of 13,205 ounces.
Operations
The Company achieved record gold production and revenue in the third quarter of 2012 and year-to-date. Consolidated gold production was 42,156 ounces, 23% above the third quarter of 2011 and ahead of budgeted guidance of 39,517 ounces. Operating cash costs were $571 per ounce of gold slightly better than budget of $574 per ounce.
The Company is forecasting another record year for gold production in 2012. The excellent operating performance at both La Libertad and Limon Mines has resulted in the Company increasing the lower end of its budgeted production guidance from 150,000 to 155,000 ounces of gold while maintaining the upper end of 160,000 ounces of gold and a cash operating cost of approximately $590 to $625 per ounce. As previously announced, gold production is expected to increase each successive quarter of 2012.
Cash operating costs are expected to improve and production to increase in 2013 and 2014 over 2012 due to the processing of higher grade ore from the Jabali deposit through the Libertad mill. Consequently, the Company is projecting gold production to increase to approximately 185,000 ounces in 2013 and 200,000 in 2014.
Subject to the closing of the recently announced Transaction with CGA Mining Limited ("CGA") (see below for details), the Company is expecting production to increase to 385,000 ounces of gold in 2013 and 400,000 ounces in 2014.
Cash from mining operations(2) for the nine months to September 30, 2012 was $115.1 million, exceeding the 2012 nine months guidance by $5.9 million and is anticipated to continue to improve (at current market prices) in the fourth quarter as production increases. It is expected that cash from mining operations for 2012 will exceed original projections of approximately $140 million (using a $1,550 per ounce gold price).
(2) Cash from mining operations is a non GAAP measure and consists of gold
revenue less production costs less royalties and production taxes.
La Libertad Mine, Nicaragua (B2Gold 100%)
La Libertad open pit Mine continued its strong performance, finishing the quarter with record monthly gold production in September of 11,217 ounces. Third quarter gold production was also a record of 29,441 ounces produced at an operating cash cost of $513 per ounce and a total cash cost of $547 per ounce. This compares to the budget of 27,347 ounces of gold at an operating cash cost of $510 per ounce. La Libertad Mine operating cash costs were slightly higher than budget mainly due to higher mining costs (contractor, blasting, fuel), crushing and grinding costs, and higher process plant consumable use and cost (power, reagents).
Gold production in the third quarter was higher than budget mainly due to higher than budgeted gold grade (1.91 g/t gold compared to budget of 1.88 g/t gold), higher through put of 517,656 tonnes compared to budget of 501,953 tonnes and higher gold recovery of 92.3% versus the budget of 90.4%. Gold recovery continues to outperform budget as the Company optimizes its plant processes. The mill throughput rate in the third quarter averaged 5,627 tonnes per day, another new quarterly record and 3% better than the budget for the period of 5,456 tonnes per day.
During the nine months of 2012, the Libertad Mine generated gold revenue of $129 million from the sale of 77,671 ounces at an average price of $1,661 per ounce, compared to $107.7 million from the sale of 71,011 ounces at an average price of $1,517 per ounce in the same period of 2011. Total gold production was 78,822 ounces at an operating cash cost of $506 per ounce of gold compared to budget of 74,731 ounces at $554 per ounce. Higher than year-to-date budgeted production was mainly due to higher mill throughput, gold recovery and mill head grade. Operating costs have been favourable to budget due to increased gold and silver production, better recovery, and a lower strip ratio than budgeted.
Gold production from Libertad is expected to increase quarter over quarter in 2012 as higher grade ore from the new Santa Maria pit enters the mine plan as well as resuming production of higher grade ore from Jabali in the fourth quarter.
La Libertad Mine is now forecast to produce approximately 105,000 to 110,000 ounces of gold in 2012, at an operating cash cost of approximately $550 to $575 per ounce. Cash from mine operations at La Libertad Mine is projected to exceed the original budgeted guidance of approximately $100 million (at $1,550 per ounce gold price).
The Company has budgeted capital costs at La Libertad in 2012 totaling approximately $27.7 million. The majority of this capital cost will be expended on pre-stripping at the Santa Maria pit and to access future ore by enlarging existing pits and completing a tailings pond expansion.
The Company recently announced that it has received the mining permit (subject to certain conditions), for the Jabali Central deposit on the Libertad property. The Company is also pleased to announce that it has received the final mining haul road construction permit. Improvements to the main road access to town have now been completed and construction of the private haul road has recently commenced. Mine infrastructure development will also commence shortly.
The 2012 budget for the development of the Jabali deposit is approximately $21 million. This budget is funding the construction of the private haul road for transporting the Jabali deposit ore to the Libertad mill, and for engineering, metallurgical and socio-economic programs. The Company plans to commence the shipping of Jabali ore to the Libertad mill in the first quarter of 2013. Jabali costs to September 30, 2012 are $8.5 million and will likely end the year approximately $10 million under budget. The main reason for the under spend is a delay to the start of construction of the private haul road which recently commenced. These costs should be incurred in the first quarter and shipments of Jabali ore will not be impacted as the existing road can be used if needed. Annual gold production at La Libertad is projected to increase to 135,000 ounces in 2013 and will increase to 150,000 ounces in 2014.
At Jabali, exploration is ongoing to complete infill drilling of the Jabali Antenna Zone and further explore deposits that are open to the east and west.
An additional $1.3 million of drilling has been budgeted in 2012 to upgrade the high grade resources at Jabali Antenna and for additional drilling of the San Juan deposit. Exploration drilling is also ongoing to further explore the 20 kilometre long Libertad gold belt. Further drill results will be released during the year.
Limon Mine, Nicaragua (B2Gold 95%)
The Limon open pit and underground Mine had an excellent quarter, achieving its highest quarterly output since B2Gold acquired the mine in 2009. The Limon Mine produced 12,715 ounces of gold at an operating cash cost of $704 per ounce and a total cash cost of $804 per ounce from 97,385 tonnes of ore milled at an average grade of 4.47 g/t at a processed gold recovery of 91.0%, compared to budget of 12,170 ounces at an operating cash cost of $717 per ounce. Production costs and output are now tracking budget due to improved grade primarily from the underground operation. Similarly to the Libertad mine, Limon production is budgeted to increase in subsequent quarters in 2012.
For the nine months ended September 30, 2012, the Limon Mine generated gold revenue of $59.3 million from the sale of 35,710 ounces at an average price of $1,659 per ounce. Operating cash cost per ounce was $747 per ounce compared to budget of $742 per ounce. Gold production was 34,739 ounces compared to budget of 34,749 ounces.
The Limon Mine is projected to produce approximately 48,000 to 50,000 ounces of gold in 2012 at an operating cash cost of approximately $700 to $725 per ounce of gold. Cash from mine operations at Limon is projected to exceed the original budgeted guidance of approximately $40 million (at $1,550 per ounce gold price).
The Company is undertaking capital expenditures at the Limon Mine in 2012 expected to total approximately $21.3 million. The majority of this capital expenditure is funding a major underground mine development program and capacity expansion of the tailings pond. The underground development work is accessing deeper ore at the Santa Pancha vein, which should add approximately three years of production. Capital expenditures for 2013 are expected to be lower as the tailings pond work in 2012 will add approximately 5 years to its storage capacity.
Successful exploration continues on the Limon property with two drill rigs exploring both near surface and underground targets with the goal of increasing the current five year mine life and testing higher grade targets.
The 2012 exploration budget at the Limon property totals $4.6 million, funding 14,000 metres of drilling to explore numerous open pit and underground targets on the property. The Company's exploration team believes there is potential to increase the current mine life of the Limon Mine and also discover higher grade open pit and underground deposits that could potentially increase annual gold production and reduce operating costs per ounce of gold.
Update on Proposed B2Gold and CGA Merger
B2Gold and CGA recently announced that they have entered into a definitive Merger Implementation Agreement (see news release dated September 19, 2012) to combine the two companies. The transaction was valued at approximately C$1.1 billion on the transaction date.
The transaction will be implemented by way of a Scheme of Arrangement under the Australian Corporations Act 2001 ("Scheme"). Upon completion of the Scheme, existing B2Gold shareholders and CGA shareholders will own approximately 62% and 38%, respectively, of the issued common shares of the combined company. The transaction is subject to regulatory, Australian Court, shareholder, and third party approvals, together with other customary conditions.
The combination of B2Gold and CGA will result in a merged entity operating the Masbate gold mine in the Philippines, in addition to B2Gold's existing Limon and La Libertad gold mines in Nicaragua. B2Gold is well positioned to operate and progress further development at Masbate given its strong funding capacity and a management team with significant exploration, mine development and operating experience.
With the addition of the Masbate Mine by way of the transaction, B2Gold expects to produce approximately 385,000 ounces of gold in 2013 and approximately 400,000 ounces of gold in 2014.
A meeting of CGA shareholders to consider the Scheme and a meeting of B2Gold shareholders approving the issuance of B2Gold shares that will be issued in connection with the Scheme, will each be held the third week in December. Closing date is projected to be on or prior to January 31, 2013.
Health, Safety, Environmental and Corporate Social Responsibility
B2Gold continues its support for Nicaragua Community Programs and Initiatives in its operating communities and other locations. In the third quarter B2Gold received a National Award for Corporate Social Responsibility in the category of Sustainability and Environmental Initiatives from the group UNIRSE.
At El Limon in the third quarter, B2Gold continued to support development of small business opportunities with the PYMES program and improvement of community roads. The community dialogue tables continue to serve as an effective forum for communications. Donations included an ambulance for community support, a need that was identified and prioritized at the community forum. New initiatives include a preschool planned for El Limon, to serve some 200 students.
Development Projects
Otjikoto Property, Namibia
(B2Gold 92% / EVI Gold 8%)
Exploration, feasibility and development expenditures for Otjikoto were $15 million for the first nine months of 2012 compared to the full year's budget of $43.5 million. Although the timing of payments has lagged the original budget, the project remains on schedule. The feasibility study is anticipated to be completed in the fourth quarter. The Company recently received approval of the Environmental Impact Assessment from the Government of Namibia and expects to receive the final mining license from the Government by the end of 2012. Mine construction will commence in the first quarter of 2013. Site preparation has already commenced as bush clearing is currently underway. Orders for equipment with a long lead time will be placed shortly and well within the time frame required for full scale production in January 2015. It is likely, however, that expenditures will be less than budget for 2012 and approximately $10 million will be deferred to the first quarter of 2013.
The Otjikoto gold project has forecast average annual production of over 100,000 ounces of gold over a ten year mine life based on a Preliminary Economic Assessment released by Auryx Gold Corp. in September 2011.
B2Gold Namibia's experienced staff is well placed to advance development at the Otjikoto gold project given B2Gold's existing cash position, cash from operations and strong financing capability and a management team with significant mine development and operating experience.
Feasibility and exploration drilling is underway on the Otjikoto project which includes 16,150 metres of feasibility study drilling and a further 2,500 metres of exploration drilling to explore beyond the current resource at the Otjikoto project. Regional exploration work will also be conducted on the surrounding area.
Gramalote Property, Colombia
(B2Gold 49% / AngloGold Ashanti Limited ("AngloGold") 51%)
The Gramalote project, located 80 kilometres northeast of Medellin in Central Colombia, had a 2012 joint venture prefeasibility and exploration budget of $36.9 million (100%), recently increased to $54 million. The amended budget runs to the end of November 2012 and an interim budget for the period from December 2012 to February 2013 is currently being discussed. The recent increase to the current year's budget is for additional land acquisitions, community and social obligations, and the engineering and test programs associated with potential upside project economics. Each joint venture partner will fund their share of expenditures pro rata. Due to the additional time required to evaluate the potential project scale and economics, the prefeasibility study is now scheduled to be completed in the first quarter of 2013 and a final feasibility study completed in early 2014.
The Company believes the Gramalote project has the potential to become a large scale open pit gold mine (subject to completion of a feasibility study and financing).
Exploration
In addition to the exploration programs mentioned above, the Company is undertaking further exploration programs on the Trebol and El Pavon properties, the Radius Gold joint venture property and the Calibre Mining joint venture property in Nicaragua and the Cebollati property in Uruguay.
In total, B2Gold's combined 2012 exploration budgets is approximately $36.1 million used to fund approximately 69,000 metres of drilling. Further exploration results will be released as they become available.
BNY Mellon Appointed as Depositary Bank for the Company's Namibian Depositary Receipt ("NDR") Program on the Namibian Stock Exchange ("NSX")
B2Gold is pleased to announce that it has appointed BNY Mellon, the global leader in investment management and investment services, as the depositary bank for its NDR program on the NSX. The program is the first ever NDR listing and the NSX becomes only the second stock exchange in Africa to list depositary receipts. B2Gold's common shares are listed on the TSX under the symbol "BTO". Each B2Gold depositary receipt represents 1 ordinary common share and trades on the NSX under the symbol "B2G".
Outlook
In conclusion, given our proven technical team, strong operational and financial performance, financing capability and high quality development and exploration projects, B2Gold is well positioned to continue our growth as an intermediate gold producer from existing projects. Based on current assumptions the Company is projecting gold production to grow to over 700,000 ounces per year, subject to the closing of the transaction with CGA and assuming development of the Otjikoto and Gramalote Projects. In addition, the Company will continue to pursue accretive acquisitions and carry out our aggressive exploration programs as well as optimize production at current operations. The Company will be providing updated 2013 guidance in December once detailed budgets have been approved by the Board.
Conference Call Details
B2Gold will host a conference call and webcast to discuss the first quarter results on Wednesday, November 14, 2012 at 11:00 am PST / 2:00 pm EST. You may access the call by dialing the operator at 416-340-2217 or toll free 866-696-5910 (pass code: 5553757) prior to the scheduled start time. A playback version of the call will be available for one week after the call at 905-694-9451 or toll free 800-408-3053 (pass code: 2560484). The webcast of the call can be accessed from B2Gold's web site at www.b2gold.com.
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
For more information on B2Gold please visit the Company website at www.b2gold.com.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars, except shares and per
share amounts)
(Unaudited)
For the For the
three three For the For the
months months nine months nine months
ended ended ended ended
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2012 2011 2012 2011
-------------------------- ----------------------------
-------------------------- ----------------------------
Gold revenue $ 67,065 $ 50,459 $ 188,268 $ 158,458
-------------------------------------------------------
Cost of sales
Production costs (23,911) (15,350) (66,998) (54,078)
Depreciation and
depletion (8,255) (5,720) (22,309) (18,249)
Royalties and
production taxes
(Note 9) (2,256) (3,126) (6,137) (8,746)
Other - (692) - (692)
-------------------------------------------------------
Total cost of sales (34,422) (24,888) (95,444) (81,765)
-------------------------------------------------------
Gross profit 32,643 25,571 92,824 76,693
General and
administrative (4,013) (3,358) (13,092) (12,616)
Share-based payments
(Note 7) (2,951) (4,013) (13,754) (5,245)
Accretion of mine
restoration
provisions (441) (332) (1,334) (886)
Foreign exchange
gains (losses) (396) (2,031) 148 (865)
Other (1,073) (455) (2,790) 216
-------------------------------------------------------
Operating income 23,769 15,382 62,002 57,297
Community relations (1,070) (619) (3,229) (1,759)
Interest and
financing costs (65) (61) (130) (543)
Other (355) (1,061) (62) (651)
-------------------------------------------------------
Income before
withholding and
other taxes 22,279 13,641 58,581 54,344
Current income and
withholding taxes
(Note 9) (6,050) (1,393) (10,727) (3,272)
Deferred income tax (1,753) (3,212) (6,895) (15,609)
-------------------------------------------------------
Net income for the
period $ 14,476 $ 9,036 $ 40,959 $ 35,463
-------------------------------------------------------
-------------------------------------------------------
Attributable to:
Shareholders of the
Company $ 14,476 $ 9,036 $ 40,959 $ 35,463
Non-controlling
interests - - - -
-------------------------------------------------------
Net income for the
period $ 14,476 $ 9,036 $ 40,959 $ 35,463
-------------------------------------------------------
-------------------------------------------------------
Earnings per share
(attributable to
shareholders of the
Company)
Basic $ 0.04 $ 0.03 $ 0.11 $ 0.11
Diluted $ 0.04 $ 0.03 $ 0.10 $ 0.10
Weighted average
number of common
shares outstanding
(in thousands)
Basic 387,095 339,541 383,057 336,347
Diluted 394,355 346,267 390,387 342,161
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of United States dollars)
(Unaudited)
For the For the
three three For the For the
months months nine months nine months
ended ended ended ended
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2012 2011 2012 2011
--------------------------- ----------------------------
--------------------------- ----------------------------
Operating activities
Net income for the
period $ 14,476 $ 9,036 $ 40,959 $ 35,463
Mine restoration
provisions settled (337) (265) (3,230) (796)
Non-cash charges
(credits)
Depreciation and
depletion 8,255 5,720 22,309 18,249
Share-based payments 2,951 4,013 13,754 5,245
Deferred income
tax expense 1,753 3,212 6,895 15,609
Accretion of mine
restoration
provisions 441 332 1,334 886
Unrealized
derivative
(gains) losses 108 - (218) -
Income tax expense
on expired
warrants - (2,182) - (2,182)
Amortization of
deferred
financing costs - - - 358
Other 771 105 1,472 737
--------------------------------------------------------
Cash provided by
operating
activities
before changes in
non-cash working
capital 28,418 19,971 83,275 73,569
Changes in non-cash
working capital 773 (2,345) (12,316) (5,248)
--------------------------------------------------------
Cash provided by
operating
activities after
changes in non-cash
working capital 29,191 17,626 70,959 68,321
--------------------------------------------------------
Financing activities
Common shares issued
for cash (Note 7) 177 2,257 7,390 7,242
Interest &
commitment fees
paid (65) (61) (129) (235)
Repayment of related
party loans - (21) (9) (21)
--------------------------------------------------------
Cash provided by
financing
activities 112 2,175 7,252 6,986
--------------------------------------------------------
Investing activities
Libertad Mine,
development &
sustaining
capital (5,525) (5,160) (22,890) (23,033)
Libertad Mine,
Jabali
development (3,894) (4,476) (8,547) (4,476)
Limon Mine,
development &
sustaining
capital (5,449) (4,507) (16,891) (15,919)
Purchase of long-
term investment
(Note 6) - - (5,068) -
Libertad,
exploration (819) (3,489) (5,493) (7,537)
Limon, exploration (1,046) (1,001) (3,484) (2,603)
Gramalote,
exploration and
development (10,043) (4,079) (18,887) (10,280)
Otjikoto,
exploration and
development (2,731) - (14,974) -
Calibre,
exploration (1,532) (182) (3,678) (879)
Mocoa, exploration (1,224) (30) (2,859) (203)
Tebol & Pavon,
exploration (618) (475) (2,146) (1,914)
Cebollati,
exploration (420) (1,413) (1,616) (3,653)
Other (183) (281) (813) (1,250)
--------------------------------------------------------
Cash used by
investing
activities (33,484) (25,093) (107,346) (71,747)
--------------------------------------------------------
Increase (decrease)
in cash and cash
equivalents (4,181) (5,292) (29,135) 3,560
Cash and cash
equivalents,
beginning of period 77,338 78,864 102,292 70,012
--------------------------------------------------------
Cash and cash
equivalents, end of
period $ 73,157 $ 73,572 $ 73,157 $ 73,572
--------------------------------------------------------
--------------------------------------------------------
Supplementary cash
flow information
(Note 10)
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
(Unaudited)
As at As at
September 30, December 31,
2012 2011
---------------------------------
---------------------------------
Assets
Current
Cash and cash equivalents $ 73,157 $ 102,292
Accounts receivable and prepaids 8,619 6,372
Value-added and other tax receivables 18,288 14,149
Inventories (Note 4) 32,529 26,695
Unrealised fair value of derivative
assets 218 -
---------------------------------
132,811 149,508
Mining interests (Note 5 and Note 14 -
Schedules) 503,101 412,537
Investment (carried at quoted market value)
(Note 6) 3,441 -
Other assets 1,334 996
---------------------------------
$ 640,687 $ 563,041
---------------------------------
---------------------------------
Liabilities
Current
Accounts payable and accrued liabilities $ 17,427 $ 22,610
Current taxes payable 7,189 6,254
Current portion of mine restoration
provisions 1,237 1,376
Related party loans 72 81
---------------------------------
25,925 30,321
Mine restoration provisions 24,350 26,731
Deferred income taxes 33,533 26,638
Employee benefits accrual 4,876 4,017
------------------------------
88,684 87,707
---------------------------------
Equity
Shareholders' equity
Share capital (Note 7)
Issued: 392,744,807 common shares (Dec
31, 2011 - 382,494,656) 466,745 435,048
Contributed surplus 32,254 22,712
Accumulated other comprehensive income (5,398) -
Retained earnings 54,590 13,631
---------------------------------
548,191 471,391
Non-controlling interests 3,812 3,943
---------------------------------
552,003 475,334
---------------------------------
$ 640,687 $ 563,041
---------------------------------
---------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Expressed in thousands of United States dollars) (Unaudited)
2012
-----------------------------------------------------------
-----------------------------------------------------------
Accumu-
lated
other Non-
Contrib- compre- controll-
Share uted Retained hensive ing Total
capital surplus earnings income interests equity
-----------------------------------------------------------
-----------------------------------------------------------
Balance at
December 31,
2011 $ 435,048 $ 22,712 $ 13,631 $ - $ 3,943 $475,334
January 1, 2012
to September 30,
2012:
Net income for
the period - - 40,959 - - 40,959
Cumulative
translation
adjustment - - - (3,771) (131) (3,902)
Unrealized loss
on investment - - - (1,627) - (1,627)
Shares issued for
cash:
Exercise of
stock options 3,923 - - - - 3,923
Exercise of
warrants 3,458 - - - - 3,458
Incentive Plan 9 - - - - 9
Shares issued for
Trebol & Pavon 16,814 - - - - 16,814
Shares issued on
vesting of RSU 2,902 (2,902) - - - -
Share based
payments -
expensed - 13,754 - - - 13,754
Share based
payments -
capitalized to
mining interests - 3,281 - - - 3,281
Transfer to share
capital the fair
value assigned to
stock options &
warrants
exercised from
contributed
surplus 4,591 (4,591) - - - -
-----------------------------------------------------------
Balance at
September 30,
2012 $ 466,745 $ 32,254 $ 54,590 $ (5,398) $ 3,812 $552,003
-----------------------------------------------------------
-----------------------------------------------------------
2011
-----------------------------------------------------------
-----------------------------------------------------------
Accumu-
lated Non-
Retain- other cont-
Contrib- ed compre- rolling
Share uted earn- hensive inter- Total
capital surplus ings income ests equity
-----------------------------------------------------------
-----------------------------------------------------------
Balance at
December 31,
2010 $ 312,829 $ 19,971 $(42,669) $ - $ - $290,131
January 1, 2011
to September 30,
2011:
Net income for
the period - - 35,463 - - 35,463
Shares issued for
cash:
Exercise of
stock options 5,207 - - - - 5,207
Exercise of
warrants 2,014 - - - - 2,014
Incentive plan 21 21
Shares issued for
finders' fee 150 150
Share based
payments -
expensed - 5,245 - - - 5,245
Share based
payments -
capitalized to
mining interests - 436 - - - 436
Income tax on
expired warrants (2,182) (2,182)
Transfer to share
capital the fair
value assigned to
stock options &
warrants from
contributed
surplus 6,399 (6,399) - - - -
-----------------------------------------------------------
Balance at
September 30,
2011 $ 326,620 $ 17,071 $ (7,206) $ - $ - $336,485
October 1, 2011
to December 31,
2011:
Net income for
the period - - 20,837 - - 20,837
Shares issued for
Auryx Gold 107,435 - - - - 107,435
Shares issued for
cash:
Exercise of
stock options 701 - - - - 701
Exercise of
warrants - - - - - -
Share based
payments -
expensed - 945 - - - 945
Share based
payments -
capitalized to
mining interests - 45 - - - 45
Stock options &
warrants issued
on Auryx Gold
acquisition - 4,943 - - - 4,943
Non-controlling
interest
acquired on Auryx
Gold acquisition - - - - 3,943 3,943
Transfer to share
capital the fair
value assigned to
stock options &
warrants
exercised from
contributed
surplus 292 (292) - - - -
-----------------------------------------------------------
Balance at
December 31,
2011 $ 435,048 $ 22,712 $ 13,631 $ - $ 3,943 $475,334
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The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contacts:
B2Gold Corp.
Ian MacLean
Vice President, Investor Relations
604-681-8371
B2Gold Corp.
Kerry Suffolk
Manager, Investor Relations
604-681-8371
www.b2gold.com