B2Gold releases 2024 Q1 financials after-hours on May 7, 2024.
CFO Mike Cinnamond will be feeling some intense heat…
The $500M gold prepayment will generate a massive hit to the income statement. The January 2024 $500,000,000 “advance” must be repaid in-kind - 264,775 gold ounces delivered on an equal monthly basis starting from mid-2025 (this “advance” pre-sold gold at $1,888 per ounce). With the current gold price hovering around $2,300 per ounce, in just over three months this financing cost is approximately $109,000,000!!!
The Mali Fekola Mine has major geo-political risk and represents approximately 58% of B2Gold’s forecasted 2024 gold production - the licence extension approval is “still a work-in-progress”.
The Goose-Back River mine will produce its first gold in 2025 Q1. There was a significant bump in CAPEX as recently reported and the March 2024 presentation indicates another $200M in capital spending.
B2Gold keeps reporting Calibre’s gold production as part of B2Gold’s – this is a financial sleight of hand but fortunately B2Gold only owns 15% of Calibre as of January 24, 2024.
Fekola AISC for 2024 is $1,420-to-$1,480.
Otijikoto AISC for 2024 is $960-to-$1,020.
Masbate AISC for 2024 is $1,300-to-$1,360.