B2Gold(BTG) - 2024 Q4 - Annual Report

Financial Performance - Gold revenue for 2024 was $1,902,030, a decrease of 1.7$1,934,272 in 2023[22] - Total cost of sales increased to $1,195,835 in 2024 from$1,154,271 in 2023, reflecting a rise of 3.6%[22] - Gross profit decreased to $706,195 in 2024, down 9.5$780,001 in 2023[22] - Net loss for 2024 was $626,653, compared to a net income of$41,588 in 2023, marking a substantial decline[22] - Basic loss per share attributable to shareholders was $0.48 in 2024, compared to earnings of$0.01 per share in 2023[22] - Total comprehensive loss for the year was $604,168, compared to a comprehensive income of$62,201 in 2023[23] Impairments - The company reported an impairment of long-lived assets totaling $876,376 in 2024, significantly higher than the$322,148 recorded in 2023[22] - The impairment assessment for the Goose Project CGU resulted in an impairment of $661 million, based on a discounted cash flow model[13] - The Fekola Complex CGU also experienced an impairment of$215 million, with management applying significant judgment in estimating recoverable amounts[17] - The Company recorded an impairment charge of $661 million for the Goose Project CGU in the year ended December 31, 2024[127] - The Fekola Complex CGU experienced an impairment of$215 million, resulting in a net impairment charge of $194 million after a deferred income tax recovery of$21 million for the year ended December 31, 2024[132] Assets and Liabilities - Total assets decreased slightly to $4.814 billion in 2024 from$4.875 billion in 2023, a decline of about 1.25%[25] - Cash and cash equivalents at the end of 2024 were $336.971 million, up from$306.895 million in 2023, indicating an increase of approximately 9.8%[25] - Long-term debt rose significantly to $421.464 million in 2024 from$175.869 million in 2023, representing an increase of about 139%[25] - The current portion of prepaid gold sales was reported at $272.781 million in 2024, reflecting a new liability compared to 2023[25] - Total debt increased to$437.9 million in 2024 from $192.1 million in 2023, primarily due to a new revolving credit facility[163] Shareholder Equity - Shareholders' equity decreased to$2.983 billion in 2024 from $3.810 billion in 2023, a decline of approximately 21.7$3.035697 billion as of December 31, 2024, down from $3.909975 billion at the end of 2023[27] - B2Gold's share capital increased to$3.510271 billion in 2024, up from $3.454811 billion in 2023, indicating a growth in equity financing[27] Cash Flow and Investments - Cash provided by operating activities increased to$877.604 million in 2024 from $714.453 million in 2023, reflecting a growth of approximately 23$515.391 million in the Goose Project in 2024, a substantial increase compared to $282.338 million in 2023[24] - The company issued 2,700 thousand shares for flow-through financing, raising$7.058 million in 2024[26] - The company sold 79 million shares of Calibre Mining Corp for proceeds of $100 million, reclassifying the remaining investment of 32 million shares valued at$43 million to long-term investments[120] - The total long-term investments decreased from $86.0 million in 2023 to$76.7 million in 2024, reflecting various sales and purchases[120] Stock and Share-Based Payments - Share-based payments amounted to $25.763 million in 2024, reflecting the company's commitment to incentivizing its employees[26] - The total number of shares outstanding increased to 1,318,041 thousand by December 31, 2024, from 1,302,396 thousand in 2023[27] - The company granted approximately 22 million stock options in 2024, with an estimated fair value of$11 million recognized over the vesting period[191] - Share-based payments expense related to DSUs decreased to $0.1 million in 2024 from$0.8 million in 2023, showing a reduction of 87.5%[202] Acquisitions and Business Combinations - The company completed the acquisition of Sabina Gold & Silver Corp for a total purchase price of $937 million, which included the issuance of 216,451,555 shares valued at Cdn.$5.72 per share[140][141] - The company incurred a $112 million payment to extinguish certain gold stream and construction financing obligations following the acquisition of Sabina[143] - The company recognized an impairment of$112 million related to its existing 50% interest in the Gramalote Project after acquiring the remaining 50% from AngloGold Ashanti[146] Tax and Regulatory Matters - The company recorded an income tax expense of $67 million for the settlement of income tax and customs assessments for the period from 2016 through 2023[136] - An amended Executive Officer Incentive Compensation Clawback Policy was adopted on November 7, 2023, to comply with new regulatory requirements[204] Hedging and Financial Instruments - The company implemented a gold collar hedging program aimed at achieving a minimum cumulative financial settlement of$220 million[168] - The company measures the fair value of financial instruments not traded in an active market using valuation techniques, impacting the gold stream obligation[110] Mine Operations and Restoration - The company’s mine restoration provisions increased to approximately $147.7 million as of December 31, 2024, up from$107.7 million in 2023[185] - The company reported a severance obligation of $12 million related to the phased closure plan for the Otjikoto Mine, recorded as a restructuring charge[147]