B2Gold (TSX: BTO, Stock Forum) had a good quarter when it came to production when the company announced its financial and operational results from Q2 2014 noting that the company had increased gold production to 85,704 ounces, a 4% increase over production in Q2 2013.
According to the news release, gold revenue for the quarter totaled $120.3 million on sales of 93,330 ounces with six-month revenues hitting $249.3 million on sales of 192,325 ounces. Cash flow from operating activities before changes in non-working capital came to $29.9 million or $0.04 per share for the quarter and $73.2 million or $0.11 per share in the first half.
There was a (GAAP) loss of $11.5 million or $0.02 per share reported for the quarter compared to a (GAAP) net income of $33.1 million or $0.05 per share filed in the matching 2013 period. The difference was attributed to the inclusion of a $44.5 million gain on the sale of the company's Brucejack royalty in May, 2013.
The company is anticipating another record year in regards to gold production with numbers from the Masbate (Philippines) , Libertad and Limon Mines (Nicaragua) expected to reach between 395,000 to 420,000 ounces gold at an operating cost of $697 to $695 per ounce.
Construction at its Otjikoto open pit mine in Namibia continues to be on schedule and within budget with completion of construction and commencement of production anticipated in Q4 2014.
Also in the quarter, the company entered into a Merger Implementation Agreement with Papillon Resources where the company agreed to acquire all outstanding Papillon shares at an exchange rate of 0.661 B2Gold share for each Pappilon share for an approximate value of $570.0 million. Pappilon is considered a major gold producer in Africa.
The company's strong cash position and cash flow from operations will allow it to complete its mine site expenditures, exploration and construction of the Otjikoto mine and wrap up 2014 with a strong cash balance.
B2Gold was in the news recently when the Vancouver-based company announced exercising warrants of Calibre Mining at the end of July.
Currently there are 678.8m outstanding shares with a market cap of $2.1 billion.