B2Gold Corp T.BTO

2024 Q1 Highlights...

[Galvanizer]

1)  Development of the open pit and underground is slightly behind schedule at the Goose Project; first gold production now expected in Q2 2025
 
2)  Note 14 Gold stream obligation:   The Company's gold stream obligation requires the delivery from production at the Company's Back River Project as follows:
• 2.7805% of gold production up to delivery of 87,100 ounces,
• 1.4405% of gold production up to an aggregate of 134,000 ounces, and
• 1.005% of gold production thereafter.  The Company has guaranteed the gold stream obligation.

3) Note 15 Prepaid gold sales On January 23, 2024, the Company entered into a series of prepaid gold sales with a number of its RCF syndicate banks. Under the terms of the prepaid gold sales, the Company received an upfront payment of $500 million, based on gold forward curve prices averaging approximately $2,191 per ounce, in exchange for equal monthly deliveries of gold from July 2025 to June 2026 totaling 264,768 ounces. Gold deliveries can be from production from any of the Company’s operating mines and the prepaid gold sales can be settled prior to maturity through accelerated delivery of the remaining deliverable gold ounces. The prepaid gold sales have been accounted in accordance with IFRS 15, Revenue from Contracts with Customers, whereby the cash prepayments have been recognized as deferred revenue on the consolidated balance sheets and will be recognized as revenue in the consolidated statement of operations based on the contract price when gold deliveries are made (meaning the $1,888 per gold ounce revenue will be recorded between July 2025 to June 2026 - the impact of this costly prepayment is deferred for more than a year ). During the three months ended March 31, 2024, the Company recognized interest charge of $8 million relating to the financing component contained in the prepaid gold sales. Of the $8 million interest expense, $3 million was capitalized to the cost of constructing qualifying assets during the period and the remaining $5 million was expensed in the Condensed Consolidated Interim Statement of Operations. At March 31, 2024, the carrying amount of the prepaid gold sales was $508 million.

[Singoa58]

Omg 

[Maxmoe]

Using prepaid gold sales is a proven advantageous way of raising the risk capital to build a new mine. Standard debt terms would have been far more expensive. Like 10% plus coupon interest, covenants restricting/strangling the company like a loan shark, and a heap of "participation" warrants to the debt holders. No thanks. They may give up a few $100 of upside, but they eliminate the

[tootall123]

Well said there Maxmoe and I agree 100%... GOLD IS KING...

[Galvanizer]

B2Gold’s Revolving credit facility (RCF) bears interest on a sliding scale based on the Secured Overnight Financing Rate (“SOFR”) plus term credit spread adjustment in addition to a sliding scale premium between 2.00% to 2.50%. Commitment fees for the undrawn portion of the facility are also on a sliding scale basis between 0.450% and 0.563%. The term of the RCF is four years, maturing on December

[Maxmoe]

You can't look backward to conclude the foregone profit makes the prepaid sales not so great because gold spot went to record all time high. I would not credit them as genius if gold dropped $425 per ounce either. The terms are what they are, at the time and can't even be compared to prior or subsequent financings if the seniority is different or if the bond market yields changed