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B2Gold(BTG) - 2023 Q4 - Annual Report
BTGB2Gold(BTG)2024-02-21 16:00
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Acquisitions and Investments - The company completed the acquisition of Sabina on April 19, 2023, acquiring 100% of the Back River Gold District, including the Goose Project, for a total purchase price of 937.122million[1][14]−Thecompanyacquiredasilverproductionroyalty(HackettRiverRoyalty)equalto22.5937.122 million[1][14] - The company acquired a silver production royalty (Hackett River Royalty) equal to 22.5% of the first 190 million ounces of payable silver and 12.5% thereafter, with no future cost[15] - The company purchased 14 million shares (9.9% ownership) of Snowline Gold Corp. for 33 million and 20 million additional shares of Matador Mining Ltd. for 1millionduringtheyearendedDecember31,2023[17]−ThecompanycompletedtheacquisitionoftheBakolobipermitinMalifor1 million during the year ended December 31, 2023[17] - The company completed the acquisition of the Bakolobi permit in Mali for 24 million in cash on April 21, 2022[25] - The company acquired the remaining 10% interest in Dampan Resources SARL for 4 million plus future contingent payments[43] - The company acquired Sabina Gold & Silver Corp., including the Goose Project, valued at 740 million[141] - The Company acquired the remaining 50% of the Gramalote Project on October 5, 2023, increasing its ownership to 100%[165] - The Company holds a 24% interest in Calibre Mining Corp. and a 19% interest in BeMetals Corp. as of December 31, 2023[165] - The Company's interest in Calibre Mining Corp. was diluted to approximately 15% on January 24, 2024[165] Impairments and Losses - The company identified indicators of impairment on the Fekola Complex CGU and the Gramalote Project, resulting in a net impairment charge of 192millionafteradeferredincometaxrecoveryof192 million after a deferred income tax recovery of 14 million[5][19] - The Fekola Complex CGU was impaired by 206million,determinedusingadiscountedcashflowmodelwithsignificantassumptionsonmineablemineralization,futureproductionlevels,andoperatingcosts[135]−Netincomeattributabletoshareholdersdecreasedto206 million, determined using a discounted cash flow model with significant assumptions on mineable mineralization, future production levels, and operating costs[135] - Net income attributable to shareholders decreased to 10.1 million in 2023 from 252.9millionin2022,withbasicEPSat252.9 million in 2022, with basic EPS at 0.01[78] - Net income for 2023 was 41.588million,asignificantdecreasefrom41.588 million, a significant decrease from 286.723 million in 2022[138] - Net income for 2023 was 41,588thousand,downfrom41,588 thousand, down from 286,723 thousand in 2022[163] - Net income for 2023 was 41,588thousand,asharpdecreasefrom41,588 thousand, a sharp decrease from 286,723 thousand in 2022, down 85.5%[170] - Total comprehensive income for 2023 was 62,201thousand,comparedto62,201 thousand, compared to 277,153 thousand in 2022, a decrease of 77.6%[170] - Impairment of long-lived assets in 2023 was 322,148thousand,comparedtoareversalof322,148 thousand, compared to a reversal of 909 thousand in 2022[163] Financial Liabilities and Debt - The revolving credit facility (RCF) has a term of four years, maturing on December 16, 2025, with unamortized transaction costs of 7million[33]−Thecompany′stotaldebtbalanceincreasedfrom7 million[33] - The company's total debt balance increased from 57.228 million in 2022 to 192.125millionin2023,with192.125 million in 2023, with 150 million drawn down from the RCF[35][48] - The company drew down 150millionontheRCFin2023,leaving150 million on the RCF in 2023, leaving 550 million available for future drawdowns[49] - The company's scheduled debt repayments for 2024 include 11,462inestimatedinterestand11,462 in estimated interest and 8,093 in principal for Fekola equipment loan facilities[53] - Long-term debt rose to 175,869thousandin2023from175,869 thousand in 2023 from 41,709 thousand in 2022, an increase of 321.6%[164] Royalties and Streams - The company acquired a Gold Stream Arrangement with Wheaton Precious Metals, involving a 125millionupfrontpaymentandobligationstodeliver4.15125 million upfront payment and obligations to deliver 4.15% of gold production from the Goose Project, reducing to 2.15% and 1.5% after delivering 130,000 and 200,000 ounces respectively[93] - The company exercised a Buy-back Option for 46 million, reducing the Gold Stream obligation by 33% and the Deposit amount to 83.75million[95]−Thegoldstreamobligationbalancestoodat83.75 million[95] - The gold stream obligation balance stood at 139.6 million at the end of 2023, with a fair value impact of 6millionper6 million per 100/oz gold price change[81][83] Taxes and Deferred Tax - The company recorded a deferred tax expense of 30millionrelatedtofuturewithholdingtaxonretainedearningsplannedforrepatriationfromforeignsubsidiaries[108]−Thecompanyhadnon−capitaltaxlossesof30 million related to future withholding tax on retained earnings planned for repatriation from foreign subsidiaries[108] - The company had non-capital tax losses of 637 million in Canada and 124millioninColombia,withvaryingexpirationdates[112]−Thecompanypaid124 million in Colombia, with varying expiration dates[112] - The company paid 239 million in current income tax, withholding, and other taxes in cash during the year ended December 31, 2023[113] - Income tax expense for 2023 was 278.7million,including278.7 million, including 36 million related to Mali's 10% priority dividend on the Fekola Mine[88] - Current income tax, withholding and other taxes for 2023 were 290,081thousand,upfrom290,081 thousand, up from 247,811 thousand in 2022[163] Share-Based Payments and Equity - In 2022, the company granted approximately 4,534,000 stock options with exercise prices ranging from Cdn. 3.95toCdn.3.95 to Cdn. 5.79 per share, with an estimated fair value of 6million[55]−FortheyearendedDecember31,2023,share−basedpaymentsexpenserelatedtothevestingofstockoptionswas6 million[55] - For the year ended December 31, 2023, share-based payments expense related to the vesting of stock options was 5 million, net of 1millioncapitalizedtomininginterests[56]−Thecompanygrantedapproximately2millionRSUsin2023withatotalestimatedfairvalueof1 million capitalized to mining interests[56] - The company granted approximately 2 million RSUs in 2023 with a total estimated fair value of 7 million, based on the market value of the company's shares at the grant date[57] - The estimated fair value of tranche two PSUs granted in 2023 was 4million,calculatedusingarisk−neutralMonteCarlosimulation[59]−Thecompanypaidaquarterlydividendof4 million, calculated using a risk-neutral Monte Carlo simulation[59] - The company paid a quarterly dividend of 0.04 per share in 2023, totaling 200millionfortheyear,with200 million for the year, with 12 million paid through the issuance of 4 million shares under the Dividend Re-investment Plan[70] - As of December 31, 2023, the company had 30,967 thousand stock options outstanding with a weighted-average exercise price of Cdn. 5.09[71]−OutstandingRSUsincreasedto3,322,000in2023from2,784,000in2022,with1,939,000grantedand1,440,000vested[73]−Thecompanyissued0.4millionDSUsin2023withafairmarketvalueof5.09[71] - Outstanding RSUs increased to 3,322,000 in 2023 from 2,784,000 in 2022, with 1,939,000 granted and 1,440,000 vested[73] - The company issued 0.4 million DSUs in 2023 with a fair market value of 1 million, and 0.7 million DSUs valued at 3millionwerereleased[75]−Sharecapitalincreasedto3 million were released[75] - Share capital increased to 3,454,811 thousand in 2023 from 2,487,624thousandin2022,agrowthof38.92,487,624 thousand in 2022, a growth of 38.9%[164] Inventory and Production Costs - Total inventories in 2023 were 346.495 million, up from 332.031millionin2022[142]−Goldandsilverbullioninventoryin2023was332.031 million in 2022[142] - Gold and silver bullion inventory in 2023 was 53.065 million, compared to 49.467millionin2022[142]−Materialsandsuppliesinventoryin2023was49.467 million in 2022[142] - Materials and supplies inventory in 2023 was 194.908 million, up from 171.032millionin2022[142]−Long−termstock−pileinventoryfortheOtjikotoMineincreasedto171.032 million in 2022[142] - Long-term stock-pile inventory for the Otjikoto Mine increased to 44 million in 2023 from 40millionin2022[146]−Productioncostsforrawmaterialsandconsumablesin2023were40 million in 2022[146] - Production costs for raw materials and consumables in 2023 were 488,965 thousand, compared to 484,466thousandin2022[120]−Salariesandemployeebenefitsforcontractorsin2023were484,466 thousand in 2022[120] - Salaries and employee benefits for contractors in 2023 were 90,488 thousand, up from 48,235thousandin2022[120]−Thechangeininventoriesfor2023wasadecreaseof48,235 thousand in 2022[120] - The change in inventories for 2023 was a decrease of 6,272 thousand, compared to a decrease of 26,135thousandin2022[120]−Capitalizedmininginterestsin2023were26,135 thousand in 2022[120] - Capitalized mining interests in 2023 were 140,146 thousand, significantly higher than 42,750thousandin2022[120]RevenueandProfit−Fekolasubsidiaryrevenueincreasedto42,750 thousand in 2022[120] Revenue and Profit - Fekola subsidiary revenue increased to 1,143.8 million in 2023 from 1,067.5millionin2022,withnetincomeof1,067.5 million in 2022, with net income of 147.6 million[79] - Otjikoto subsidiary revenue rose to 417.6millionin2023from417.6 million in 2023 from 280.4 million in 2022, with net income of 87.6million[79]−Goldrevenuefor2023was87.6 million[79] - Gold revenue for 2023 was 1,934,272 thousand, up from 1,732,590thousandin2022[163]−Grossprofitfor2023was1,732,590 thousand in 2022[163] - Gross profit for 2023 was 780,001 thousand, compared to 604,244thousandin2022[163]−Basicearningspersharefor2023was604,244 thousand in 2022[163] - Basic earnings per share for 2023 was 0.01, compared to 0.24in2022[163]−Weightedaveragenumberofcommonsharesoutstandingincreasedto1,232,092thousandin2023from1,064,259thousandin2022[163]CashFlowandExpenditures−Cashprovidedbyoperatingactivitiesin2023was0.24 in 2022[163] - Weighted average number of common shares outstanding increased to 1,232,092 thousand in 2023 from 1,064,259 thousand in 2022[163] Cash Flow and Expenditures - Cash provided by operating activities in 2023 was 714.453 million, up from 595.798millionin2022[138]−ExpendituresontheFekolaMinein2023were595.798 million in 2022[138] - Expenditures on the Fekola Mine in 2023 were 298.942 million, compared to 117.622millionin2022[138]−TheGooseProjectincurredexpendituresof117.622 million in 2022[138] - The Goose Project incurred expenditures of 282.338 million in 2023[138] - Cash and cash equivalents decreased to 306,895thousandin2023from306,895 thousand in 2023 from 651,946 thousand in 2022, a decline of 52.9%[164] - Mining interests increased significantly to 3,563,490thousandin2023from3,563,490 thousand in 2023 from 2,274,730 thousand in 2022, a growth of 56.7%[164] Derivatives and Financial Instruments - The company recorded an unrealized fuel derivative loss of 4millionandarealizedfuelderivativegainof4 million and a realized fuel derivative gain of 9 million in 2023[80] - The company's fuel derivative contracts for 2024 include 9,187 thousand litres of fuel oil with an average strike price of 0.40and2,501thousandlitresofgasoilwithanaveragestrikepriceof0.40 and 2,501 thousand litres of gas oil with an average strike price of 0.54[65] - The company entered into forward contracts for the purchase of 20 million litres of gas oil and 16 million litres of fuel oil, scheduled for settlement between August 2023 and July 2024[92] - The company's fuel derivative contracts were valued at 481thousandasofDecember31,2023,determinedusingprevailingmarketrates[97]−DerivativeinstrumentsarerecordedatfairvaluewithchangesrecognizedasgainsorlossesintheConsolidatedStatementofOperations[199]AccountingandFinancialReporting−Thecompany′svalue−addedtaxreceivablesinclude481 thousand as of December 31, 2023, determined using prevailing market rates[97] - Derivative instruments are recorded at fair value with changes recognized as gains or losses in the Consolidated Statement of Operations[199] Accounting and Financial Reporting - The company's value-added tax receivables include 137 million for the Fekola Mine, 45millionfortheMasbateMine,and45 million for the Masbate Mine, and 18 million for the Gramalote Project as of December 31, 2023[12] - The company's equity share of Calibre's estimated net income for the year ended December 31, 2023 was 20million,comparedto20 million, compared to 12 million in 2022[30] - The company issued a promissory note to BeMetals Corp. for 5millionwitha3−yeartermand4.75 million with a 3-year term and 4.7% annual interest, recording an expected credit loss of 2 million in 2023[32] - The undiscounted cash flows to settle mine restoration provisions were estimated at 130millionin2023,upfrom130 million in 2023, up from 122 million in 2022[38] - The company received 45millionindeferredconsiderationfromthesaleofits8145 million in deferred consideration from the sale of its 81% interest in the Kiaka gold project[44] - The company's investment in Calibre was diluted to approximately 15% following Calibre's acquisition of Marathon Gold Corporation[46] - BeMetals reported a net loss and comprehensive loss of 1 million for the nine months ending September 30, 2023[47] - Lease liabilities payments totaled 3millionforshort−termleasesand3 million for short-term leases and 58 million for variable lease payments in 2023[52] - The company's mine restoration provision balance at the end of 2023 was 107,657,withacurrentportionof107,657, with a current portion of 3,050[69] - The company's non-controlling interest balance at December 31, 2023, was 99,596,withFekolacontributing99,596, with Fekola contributing 42,911 and Masbate contributing 27,744[64]−Thecompany′ssignificantcommitmentsincluded27,744[64] - The company's significant commitments included 126,381 thousand in capital expenditure commitments and 12,039 thousand in other liabilities[103] - The acquisition of Sabina Gold & Silver Corp. involved issuing 216,451,555 B2Gold shares at Cdn. 5.72 per share, totaling 925million,and925 million, and 5 million in replacement stock options[130] - The fair value of B2Gold replacement options issued in the Sabina acquisition was 5,075thousand[117]−ContingentconsiderationfortheGramalotePropertypurchasewas5,075 thousand[117] - Contingent consideration for the Gramalote Property purchase was 14,297 thousand[117] - Interest on loans to non-controlling interests in 2023 was 4,910thousand,upfrom4,910 thousand, up from 4,116 thousand in 2022[117] - Foreign exchange losses on the Fekola equipment loan facility in 2023 were 411thousand,comparedtogainsof411 thousand, compared to gains of 2,716 thousand in 2022[117] - Total equity at the end of 2023 was 3.909billion,upfrom3.909 billion, up from 3.112 billion in 2022[139] - The company assumed construction financing and gold stream obligations from Sabina[145] - The Company operates three mines: Fekola Mine in Mali, Masbate Mine in the Philippines, and Otjikoto Mine in Namibia[165] - Subsidiaries are fully consolidated from the date control is obtained and de-consolidated when control ceases[186] - The Company accounts for its interest in Calibre and BeMetals using the equity method due to significant influence[187] - Investments in joint operations are recognized by the Company's share of underlying assets, liabilities, revenues, and expenses[188] - The Company applies a 'concentration test' to assess if an acquired set of activities and assets are not a business[190] - Transaction costs related to business combinations are expensed as incurred[191] - Financial assets and liabilities are recognized when the Company becomes party to the contractual provisions[193] - Cash and cash equivalents include short-term highly liquid investments with original maturities of three months or less[194] - Accounts receivable are net of expected credit losses and measured at amortized cost[195] - Long-term equity investments are classified as fair value through profit and loss (FVTPL) unless designated as fair value through other comprehensive income (FVOCI)[196]