Highlights from B2Gold's Denver Gold Forum present Highlights from B2Gold's presentation at recent Denver Gold Forum as seen by Canaccord:
B2Gold (BTO : TSX | BUY, C$5.00)
• Cash from operations projected at $140 million this year, $180 million in 2013 (based on $1,550/oz gold price).
• La Libertad expects to produce 102,000-110,000 ounces at $550 to $575/oz cash costs in 2012. At Jabali, final permits are expected in Q4/12, with mining expected to start in January. We were previously hoping that there would be some contribution in Q4/12, but this should not impact guidance because the high grade Santa Maria pit is expected to come online in Q3/12.
• Limon is expected to produce 48,000 to 50,000 ounces at $700 to $725/oz. Management is upbeat on the exploration front for higher grade ounces.
• Otjikoto: B2Gold received the EIA in August which is well ahead of schedule (we were expecting a response in Q4/12). Feasibility study and mining license are due in Q4/12.
• Construction is expected to commence in early 2013. Production is expected in early 2015. Potential annual production 100,000+ ounces per year over a 10 year mine life, based on the 2011 PEA. Management indicated that capital costs could be in the order of $200 million (vs. $130 million in the last PEA). However, it looks like they will be using owner mining vs. contractor mining contemplated by AuRyx so that probably explains a large part of the increase (the offset may be lower operating costs – we will know for sure when the study comes out). Overall, we are not too concerned. Excellent exploration potential according to management.
• Gramalote: Anglo motivated to advance the project in order to set the permitting and production stage for its La Colosa project. PFS expected in Q4/12 and feasibility study expected in Q4/13.
• Overall exploration spend in 2012 is $36 million to drill 69,000 metres across all projects.
• M&A: B2Gold management sees opportunity in M&A although management teams of exploration/development companies don't appear to be committed to creating shareholder value. Its CA Agreements now include clauses to release financial and technical data within three months of signing, or the agreement is cancelled.
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Also on my radar is Abcourt Mines Inc. (TSX-V: ABI) (Pink Sheets: ABMBF) (Frankfurt: AML) which is has 2 near-term production scenarios with reopening of the historic Elder gold mine in Quebec as a priority; From 1944 to 1964 the Elder Gold Mine produced 350,000 ounces of gold. See related insight/synopsis of the investment op here https://miningmarketwatch.net/abi.htm -- in short; dewatering is nearing completion, infrastructure is being upgraded, equipment has been purchased, and a Preliminary Economic Assessment is expected by the end of this September. Currently trading under CDN$0.12 cents per share ABI.V has a market cap under $21M CAD, is capitalized to meet near-term obligations, has no long-term debt, and possesses resources of significance (~20 million ounces silver, ~610 million lbs zinc, ~405,000 oz gold) with large growth potential that appear to position it as grossly undervalued.