A PROFITABLE GROWTH-ORIENTED INTERMEDIATE GOLD PRODUCER MARCH 2014

Transcription

1 A PROFITABLE GROWTH-ORIENTED INTERMEDIATE GOLD PRODUCER MARCH

2 Cautionary Statement This presentation includes certain forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein including, without limitation, statements relating to B2Gold s future operating or financial performance, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as plans, expects, anticipates, budgets, believes, intends, estimates, potential, possible and similar expressions, or statements that events, conditions or results will, may, could, or should occur or be achieved. These forward-looking statements may include statements regarding perceived merit of properties; anticipated production; exploration results and budgets; mineral reserves and resource estimates; work programs; capital expenditures; timelines; strategic plans; completion of transactions; market price of precious base metals; or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations include the uncertainties involving [risks of construction and mining projects such as accidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases; fluctuations in metal prices and currency exchange rates; the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies in the development and operation of properties; the need to obtain permits and governmental approvals;] and other risk and uncertainties disclosed in reports and documents filed by B2Gold with applicable securities regulatory authorities from time to time. The forward-looking statements made herein reflect our beliefs, opinions and projections on the date the statements are made. Except as required by law, we assume no obligation to update the forwardlooking statements of beliefs, opinions, projections, or other factors, should they change. Tom Garagan, Senior Vice President of Exploration, a Qualified Person as defined by National Instrument , has approved the scientific and technical information concerning B2Gold Corp. discussed herein. (All amounts in this presentation are expressed in United States dollars, unless otherwise stated). 2

3 About B2Gold Growing Profitable Gold Producer Three producing gold mines Fully funded growth from existing assets Strong Record of Operational Execution Strong Financial Position Good Access to Capital Proven Management Team Former management and technical teams of Bema Gold Strong teams in Nicaragua, the Philippines, Namibia, Burkina Faso and Colombia (1) Ability to discover, finance, build and operate profitable gold mines around the world Demonstrated History of Accretive Acquisitions and Exploration Success (1)AngloGold Ashanti is the operator in Colombia 3

4 Projected Production Annual Production (k oz Gold) (1) (2) 374 (2) La Libertad Nicaragua Limon Nicaragua Masbate Philippines Otjikoto Namibia (1) Based on current assumptions (2) Actual 4 4

5 Share Capital Ownership Breakdown Million Shares (1) (% Basic) Total Shares Issued and Outstanding Stock Options held by Executive founders and Chairman 0 Stock Options and Restricted Share Units % Total Shares Fully Diluted Shares Held by Directors and Officers % Market Capitalization (2) Cdn$2.3 billion 1) Approximate figures are as of January 6, 2014; excludes Convertible Debenture 2) Based on closing price of B2Gold shares of $3.18 per share on February 20, 2014, on a fully diluted basis 5

6 2013 Fourth Quarter and Full Year Production 2013 Fourth Quarter Highlights Record quarterly gold production of 105,577 ounces, an increase of 138% over Q Gold revenue of $138 million, an increase of $67.3 million over Q Record gold sales of 106,185 ounces 2013 Full Year Highlights Record attributable gold production of 366,313 ounces, an increase of 132% over 2012 Record gold revenue of $544.3 million, an increase of $285.2 million over 2012 Record gold sales of 380,895 ounces Estimated consolidated operating cash costs to be at the lower end of the Company s 2013 guidance range of $675 - $690 per ounce gold Estimated all in sustaining cost projected to be $1,050 to $1,100 per ounce for

7 2014 Guidance Projected consolidated gold production of 395, ,000 ounces at an average operating cash cost of $667 - $695 per ounce Projected all-in sustaining costs of approx. $1,025- $1,125 per ounce Scheduled to complete construction of the Otjikoto mine in Namibia in Q4 2014, first full year of production scheduled for 2015 Continued strong financial position 7 7

8 Mining in Nicaragua Long mining history with a strong Mining Law Rated the safest country in Central America Modern infrastructure and easily accessible Democratic Republic since Government supportive of foreign investment Tax regime 3% NSR and 30% Net Profits Tax Currency pegged to USD, no foreign currency risk B2Gold is one of the major employers in Nicaragua with more than 2,000 employees and contractors B2Gold is the largest exporter of gold in the country and the largest individual exporting company in the country Major contributor to local and national economy, one of the largest tax payers MINING AND EXPLORATION EXPLORATION CALIBRE JV Strong commitment to social programs 8

9 Nicaraguan Gold Production La Libertad Mine (100%) Open pit mine 2013 record gold production of 138,726 ounces 2014 budgeted gold production of 143, ,000 ounces 2014 budgeted operating cash costs of $545 - $565 per ounce 2014 capex budget of $36.3 million 2014 exploration budget of $4.2 million El Limon Mine (95%) Open pit and underground mine 2013 record gold production of 58,191 ounces 2014 budgeted gold production of 62,000 70,000 ounces 2014 budgeted operating cash costs of $650 to $675 per ounce 2014 capex budget of $19.7 million 2014 exploration budget of $4.3 million Potential to increase gold production and reduce operating costs by continuing to discover higher grade ore at both mines 9

10 La Libertad Property Exploration Success 10

11 Masbate Mine, The Philippines Long Mining History Good Mining Investment Climate and Strong Mineral Potential Favourable Investment/Tax regime, 30% corporate tax, 2% excise tax; income tax holiday for B2Gold until June 2015, could be extended to 2017 Government has endorsed the B2Gold / CGA merger as A vote of confidence in the Philippines. Masbate Mine is Largest Source of Masbate Island GDP 11 11

12 Masbate Gold Mine Flagship gold mine in the Philippines, produced approximately 741,000 ounces by the end of 2013 Open pit gold mine, excellent infrastructure Projected initial 15 year mine life, expansion studies underway 2013 gold production of 176,483 ounces 2014 budgeted gold production of 190, ,000 ounces 2014 budgeted operating cash costs of $765-$800 per ounce 2014 capex budget of $37 million 2014 exploration budget of $6.2 million Excellent exploration potential Recent high grade drill results from the Montana zone Minimal impact at minesite from Typhoon Haiyan B2Gold has pledged $1 million to relief and reconstruction efforts in the Philippines 12

13 Mining in Namibia Population of 2.3 million (2011 World Bank estimate) Strong history of mining Mining plays vital role in the Namibian economy Stable Government Encourages foreign investment Mining corporate tax rate 37.5%, NSR 3% Favourable tax treatment on capital expenditures Good national infrastructure Otjikoto Project infrastructure 3km from paved National Highway B1 Good water supply on site Self generating power supply Deep water port access (Walvis Bay) WALVIS BAY ANGOLA BOTSWANA

14 Otjikoto Mine (1) Open pit gold mine with an initial life of mine ( LOM ) of 12 years based on the probable mineral reserves Probable open pit mineral reserves for the main Otjikoto ore body are 29.4 million tonnes at 1.4 g/t gold containing 1.34 million ounces of gold (2), strip ratio of 5.6:1 Average annual gold production for years one to five of 141,000 ounces per year at a $524 operating cash cost per ounce of gold Initial LOM gold recoveries of 95.6% Pre-production capital cost of $244.2 million (excluding finance lease equipment purchases of $30 million, preproduction stripping costs of $33 million and power plant costs of $30 million) Construction on schedule and on budget at Otjikoto; commencement of production scheduled for Q Plant and supporting infrastructure is being built to provide for a plant expansion from initial design capacity of 2.5 million tonnes per annum to 3.0 million tonnes per annum at a cost of approximately $15 million which will increase annual gold production to approximately 170,000 ounces in 2016 Drilling at the higher grade Wolfshag zone has resulted in a new resource of 6.8 million tonnes at 3.2g/t gold containing 703,000 ounces gold which could facilitate a further increase in annual gold production (3) (infill and exploration drilling ongoing) (1) All figures based on a 100% basis, B2Gold 90% ownership (2) Calculated using $1,350 gold (3) Calculated using $1,550 gold

15 Otjikoto Construction Batch Plant Office

16 Otjikoto Construction Tailings Pond Construction Camp Truck Carrying Waste Leach Tank 16 16

17 Otjikoto Project Map Wolfshag Zone 17 17

18 Wolfshag Zone Long Section 18 18

19 Volta Projects 19

20 Kiaka Project (1)(2) One of the largest undeveloped gold resources in West Africa Volta Prefeasibility Study based on 12 million tonnes per annum plant, producing 340,000 ounces per year for 10.3 years million tonnes at 0.99 g/t gold for 4.86 million ounces in Measured and Indicated Category and 33.7 million tonnes at 0.93 g/t for 1.01 million ounces in the Inferred Category Included in resources are 54.0 million tonnes at 1.49 g/t for 2.58 million ounces in the Measured and Indicated Category (3) Mostly contained in a single, large open pit containing a wide orebody leading to a low stripping ratio of 2.95:1 Projected gold recoveries of approximately 90% For Feasibility Study, smaller throughput cases with higher grade and lower capital costs will be reviewed Feasibility expected to be completed by the fourth quarter of 2014 Multiple additional targets in similar structural settings located on the km2 property (1) Based on Volta Resources disclosure (2) On a 100% basis, B2gold ownership 81% (3) Based on 1.0 gram per tonne cut off 20 20

21 Gramalote Project, Colombia* Joint Venture B2Gold (49%) / AngloGold (51%) Potential open pit deposit AngloGold internal Prefeasibility Study completed Q B2Gold to release Preliminary Economic Assessment Q1 / 2014 Based on decision to proceed, final feasibility could be completed within 12 months Anglogold-Ashanti Projects Anglogold-Ashanti - B2Gold JV B2Gold Project Batero Gold Ventana Gold Greystar Medoro Resources Potential production of 300,000+ ounces per year 21 21

22 CSR Activities Namibia Global CSR budget of $15 million for 2014 Philippines Nicaragua 22

23 Growth Strategy Optimize production at existing mines Cost Control Brownfields exploration Expansion Complete Otjikoto mine construction Advance development projects Gramalote project Kiaka Project Accretive acquisitions Opportunities from juniors and majors Financing available Greenfields exploration initiatives Maintain strong cash position

24 Appendix 24

25 Mine Statistics La Libertad 2013 Actual 2013 Guidance 2014 Guidance Processed (Tonnes) 2,015,000 2,096,000 2,226,000 Grade Au (g/t) Recovery (%) Ounces Au Produced 138, , , , ,000 Cash Operating Cost ($/oz Produced)

26 Mine Statistics El Limon 2013 Actual 2013 Guidance 2014 Guidance Processed (Tonnes) 445, , ,000 Grade Au (g/t) Recovery (%) Ounces Au Produced 58,191 54,000-58,000 62,000-70,000 Cash Operating Cost ($/oz Produced)

27 Mine Statistics Masbate 2013 Actual 2013 Guidance 2014 Guidance Processed (Tonnes) 6,156,000 6,500,000 6,441,000 Grade Au (g/t) Recovery (%) Ounces Au Produced 176, , , , ,000 Cash Operating Cost ($/oz Produced)

28 Strong Record of Operational Execution Gold production (koz) Guidance 2010 Actual 2011 Guidance 2011 Actual 2012 Guidance Cash operating costs ($/oz) Actual H 2013 Guidance Actual 1H 2013 Guidance 2013E Guidance Actual Guidance $800 $600 $525-$550 $591 $540-$560 $527 $639 $590-$625 $587 $725 $ $727 $ $778 $400 $446 $200 $ Guidance 2010 Actual 2010 Industry Average 2011 Guidance 2011 Actual 2011 Industry Average 2012 Guidance 2012 Actual 2012 Industry Average 1H 2013 Guidance 1H E Guidance Note: These estimates have not been approved or vetted by the underwriters Source: AME Group; Note: Industry average cash cost excludes mines with negative by-product cash cost and reflects weighted average; 2013 guidance as per Company estimates and is pro forma for the acquisition of CGA Mining; 1 Cash operating cost is defined as total mine site operating costs such as mining, processing, transportation, 28 treatment and administration, but exclusive of royalties and production taxes, amortization, reclamation, capital and exploration costs. Cash operating costs presented net of by-product silver revenue; 2013 industry average cash costs as per GFMS 2013E Industry Average 28

29 Recent Financing Convertible Senior Subordinated Notes closed on August 23, 2013 Proceeds: US$ million Terms: 3.25% for a five year term, due in 2018 Conversion price of US$3.93 per share B2Gold will have an option, upon conversion, to repay the notes in cash Potential total share issuance upon conversion of approx. 66 million shares Enables the Company, along with cash flow from mining operations to fully fund its exploration, development projects and sustaining capital while maintaining a strong cash position 29

30 Investing in Nicaragua (1) Nicaragua started in 2007 with the lowest percentage of growth in the region - by 2011 and 2012 it had the highest percentage Foreign Direct Investment saw a 222% growth rate from 2006 to the end of Q According to the Latin Business Chronicle, in 2011 the index of FDI as a percentage of GDP in Nicaragua reached 10.4%, the highest rate in Latin America In 2012, Nicaraguan exports grew 16.6% when compared to 2011 Nicaragua showed the highest export growth rate in Central America from 2006 to 2011 (121%) Nicaragua was showcased as the country with the lowest levels of criminality in Central America (including Panama and the Dominican Republic), according to a recent poll by CID Gallup Latin America Nicaragua ranks as the top location in Central America in Enforcing Contracts, Resolving Insolvency and Protecting Investors, second lowest market labour risk in the region (1) from ProNicaragua s presentation at Nicaragua Day at PDAC

31 Limon Concession 31

32 Primavera Concession, Nicaragua Joint Venture with Calibre Mining Primavera Project, Gridded Gold Soil Data Area of drilling 32 32

33 Masbate Map 33 33

34 Exploration Budgets

35 B2Gold Reserves and Resources (1) Proven and Probable Mineral Reserves (1) Mine Tonnes Gold Grade (g/t) Contained Gold Ounces La Libertad (2) 11,883, ,000 Limon (2) 1,376, ,000 Masbate (3) 103,923, ,227,000 Otjikoto (4) 26,462, ,207,000 Total Proven and Probable Mineral Reserves 5,295,000 Measured and Indicated Mineral Resources (1) Property Tonnes Gold Grade (g/t) Contained Gold Ounces La Libertad (2) 4,660, ,000 Limon (2) 2,241, ,000 Masbate (3) 91,453, ,307,000 Otjikoto (4) 3,391, ,000 Kiaka (6) 124,140, ,938,000 Gramalote (7) 48,077, ,252,000 Total Proven and Probable Mineral Resources 35 8,421,000 35

36 B2Gold Reserves and Resources Continued Inferred Mineral Resources (1) Mine Tonnes Gold Grade (g/t) Contained Gold Ounces La Libertad (2) 4,993, ,000 El Limon (2) 761, ,000 Masbate (3) 72,318, ,599,000 Otjikoto (4) 2,055, ,000 Otjikoto - Wolfshag Zone (5) 6,120, ,000 Kiaka (6) 27,327, ,000 Gramalote (7) 72,803, ,000 Total Inferred Resources 4,446,000 (1) The mineral reserves and resources reported herein are based on the CIM Standards. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral reserves and resource numbers have been rounded to reflect the accuracy of the estimate and numbers may not add due to rounding. All figures on an attributable basis. (2) The mineral reserve and mineral resource estimates for La Libertad and Limon projects were compiled and verified as of December 31, 2012 under the supervision of Brian Scott, P.Geo., B2Gold s Chief Geologist, and Peter Montano, P.E. (Colorado, USA), Senior Mine Engineer, both Qualified Persons as defined under NI The estimates reflect the attributable mineral reserves and mineral resources based on B2Gold s 100% interest in La Libertad Mine and its 95% interest in the Limon Mine. Mineral reserves are exclusive of mineral resources. (3) The mineral reserve estimates were prepared as of 31 December 2012 under the supervision of Kevin Pemberton, Registered Member of SME, USA, a Qualified Person for the purpose of NI Mineral reserves are reported fully diluted within June 2013 design pits assuming a gold price of $1,350 per ounce, grade dilution of 6% and 97.5% mining recovery. Estimates have not been depleted by production since December 31, 2012; The new mineral resources were compiled and verified under the supervision of Tom Garagan, P. Geo., B2Gold Senior Vice President Exploration, a Qualified Person as defined under NI Mineral resources were tabulated using a cutoff gold grade of 0.36g/t, are reported unconstrained by pit shells, and are exclusive of mineral reserves. (4) The mineral reserve and resource estimates for the Otjikoto Project were prepared as of January 10, 2013 by Hermanus J Kriel, Pr.Eng., of VBKom Namibia Consulting Engineers (Pty) Ltd., and Mr. Tom Garagan, P.Geo., Senior Vice President of Exploration for B2Gold. The estimates reflect the attributable mineral resources based on B2Gold s 90% interest in the Otjikoto Project. Mineral reserves are exclusive of mineral reserves. (5) The mineral resource estimate for the Wolfshag Zone was prepared as of January 22, 2014 under the supervision of Mr. Tom Garagan, P. Geo, Senior Vice President of Exploration for B2Gold and a Qualified Person under Nation Instrument (6) Mineral resources are reported in relation to a conceptual pit shell. They are not mineral reserves and do not have demonstrated economic viability. Resources are reported at an open pit cut-off grade of 0.4g.t Au. Cutoff grades are based on a price of USD1400 per ounce of gold and recoveries of 89.8%. All figures are rounded. All composites have been capped where appropriate. The qualified person for the Kiaka Resource is Guy Franceschi. (7) The measured, indicated and inferred mineral resource and inferred resource estimate for the Gramalote Project (Gramalote and Trinidad) was prepared as of December 31, 2012 by Mr. Vaughn Chamberlain, FAusIMM, Senior Vice President: Geology and Metallurgy for Anglo Gold and a Qualified Person as defined under NI The estimates reflect the attributable mineral resources based on B2Gold s 49% interest in the Gramalote Project

37 Technical Reports Libertad: Technical Report on the Orosi Mine, Nicaragua: 2008 Exploration Program and Mineral Resource Estimate, San Juan Zone, March 14, 2009, William N. Pearson, Ph.D., P.Geo., Graham Speirs, P.Eng. Jabali Zone : NI Technical Report - Jabali Project Mineral Resource Estimate, May 12, 2011, Brian Michael Scott P.Geo. Limon : Technical Report on Mineral Resources and Mineral Reserves, Limón Mine and Mestiza-La India Areas, Nicaragua, March 14, 2009, William N. Pearson, Ph.D., P.Geo., Graham Speirs, P.Eng. Otjikoto : Otjikoto Gold Project, North-Central Namibia, NI Technical Report, Preliminary Economic Assessment, October 25, 2011, Andrew McDonald, C.Eng. Gramalote : NI Technical Report on Resources Gramalote Project Providencia, Colombia, June 8, 2012, Donald E. Hulse, P.Eng. Et al Masbate : NI Technical Report Masbate Gold Project Republic Of The Philippines October 2011, June 20, 2012, Mark B. Turner, B.Eng. Et al Kiaka : NI Technical Report Kiaka Gold Project Prefeasibility Study, May 23, 2012,Tetra Tech, Jonathan Priest, SCPM, C. Eng., MIMMM, PMP, M.Eng., B.Eng. Et al 37

38 Contact Details B2Gold Corp Burrard Street P.O. Box Vancouver BC V7X 1J1, Canada Tel: Fax: Clive Johnson President, CEO Ian MacLean Vice President, Investor Relations