EX-99.1 2 d38748dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

B2GOLD CORP.

Condensed Interim Consolidated Financial Statements

For the three and six months ended June 30, 2015

(Unaudited)


B2GOLD CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30

(Expressed in thousands of United States dollars, except per share amounts)

(Unaudited)

 

 

 

     For the three
months ended

June 30, 2015
    For the three
months ended

June 30, 2014
    For the six
months ended

June 30, 2015
    For the six
months ended

June 30, 2014
 

Gold revenue

   $ 136,506      $ 120,258      $ 275,398      $ 249,278   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of sales

        

Production costs

     (76,096     (65,929     (153,919     (128,234

Depreciation and depletion

     (35,008     (28,380     (67,803     (53,690

Royalties and production taxes

     (5,761     (3,976     (10,756     (8,286
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

     (116,865     (98,285     (232,478     (190,210
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     19,641        21,973        42,920        59,068   

General and administrative

     (10,352     (13,094     (20,060     (20,416

Share-based payments (Note 9)

     (3,647     (7,337     (9,135     (10,728

Provision for non-recoverable input taxes

     (637     (1,504     (611     (2,125

Foreign exchange (losses) gains

     (1,166     1,666        (2,915     1,334   

Other

     (1,057     2,427        (1,786     2,138   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     2,782        4,131        8,413        29,271   

Unrealized loss on fair value of convertible notes (Note 8)

     (8,364     (4,408     (6,671     (42,695

Gain on sale of Bellavista property

     —          —          2,192        —     

Community relations

     (1,089     (1,253     (1,938     (2,762

Interest and financing expense (Notes 8 and 10)

     (8,259     (1,450     (9,967     (2,743

Realized losses on derivative instruments (Note 10)

     (1,994     (318     (2,548     (884

Unrealized (losses) gains on derivative instruments (Note 10)

     (5,727     1,035        (5,820     947   

Write-down of long-term investments (Note 5)

     (517     (2,745     (1,855     (3,007

Other

     (271     (388     333        1,080   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before taxes

     (23,439     (5,396     (17,861     (20,793

Current income tax, withholding and other taxes

     (1,728     (5,925     568        (15,384

Deferred income tax recovery (expense)

     2,383        (208     850        670   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss for the period

   $ (22,784   $ (11,529   $ (16,443   $ (35,507
  

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

        

Shareholders of the Company

   $ (21,185   $ (11,547   $ (14,923   $ (35,552

Non-controlling interests

     (1,599     18        (1,520     45   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss for the period

   $ (22,784   $ (11,529   $ (16,443   $ (35,507
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share (attributable to shareholders of the Company)

        

Basic

   $ (0.02   $ (0.02   $ (0.02   $ (0.05

Diluted

   $ (0.02   $ (0.02   $ (0.02   $ (0.05

Weighted average number of common shares outstanding (in thousands)

        

Basic

     923,035        674,877        920,022        673,381   

Diluted

     923,035        674,877        920,022        673,381   

See accompanying notes to condensed interim consolidated financial statements.


B2GOLD CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE 30

(Expressed in thousands of United States dollars)

(Unaudited)

 

 

 

     For the three
months ended
June 30, 2015
    For the three
months ended

June 30, 2014
    For the six
months ended
June 30, 2015
    For the six
months ended

June 30, 2014
 

Net loss for the period

   $ (22,784   $ (11,529   $ (16,443   $ (35,507
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss)

        

Items that may be reclassified subsequently to net earnings:

        

- Cumulative translation adjustment (“CTA”)

     573        (3,532     (23,560     (859

- Unrealized gain on investments, net of deferred tax expense (Note 5)

     1,739        1,754        1,347        2,577   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss) for the period

     2,312        (1,778     (22,213     1,718   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss for the period

   $ (20,472   $ (13,307   $ (38,656   $ (33,789
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss) attributable to:

        

Shareholders of the Company

   $ 1,980      $ (1,425   $ (21,806   $ 1,804   

Non-controlling interests

     332        (353     (407     (86
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 2,312      $ (1,778   $ (22,213   $ 1,718   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss attributable to:

        

Shareholders of the Company

   $ (19,205   $ (12,972   $ (36,729   $ (33,748

Non-controlling interests

     (1,267     (335     (1,927     (41
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ (20,472   $ (13,307   $ (38,656   $ (33,789
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes to condensed interim consolidated financial statements.


B2GOLD CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30

(Expressed in thousands of United States dollars)

(Unaudited)

 

 

 

     For the three
months ended
June 30, 2015
    For the three
months ended

June 30, 2014
    For the six
months ended
June 30, 2015
    For the six
months ended
June 30, 2014
 

Operating activities

        

Net loss for the period

   $ (22,784   $ (11,529   $ (16,443   $ (35,507

Mine restoration provisions settled

     (310     (353     (444     (609

Non-cash charges (Note 12)

     58,303        41,556        96,990        109,768   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash provided by operating activities before changes in non-cash working capital

     35,209        29,674        80,103        73,652   

Changes in non-cash working capital (Note 12)

     787        256        15,868        (22,323

Changes in long-term value added tax receivables

     (1,681     (5,917     (2,993     (8,902
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash provided by operating activities

     34,315        24,013        92,978        42,427   
  

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

        

Drawdowns on old revolving credit facility (Note 8)

     25,000        25,000        25,000        25,000   

Drawdown on new revolving credit facility, net of transaction costs (Note 8)

     143,854        —          143,854        —     

Repayment of old revolving credit facility (Note 8)

     (150,000     —          (150,000     —     

Otjikoto equipment loan facility, drawdowns net of transaction costs (Note 8)

     —          8,385        3,883        19,711   

Repayment of Otjikoto equipment loan facility

     (1,717     (1,897     (3,433     (2,405

Payment of finance lease obligations (Note 8)

     —          (14,409     —          (16,017

Repayment of Nicaraguan equipment loans

     (380     (222     (752     (377

Interest and commitment fees paid

     (5,648     (1,213     (7,138     (7,237

Common shares issued for cash

     58        382        540        1,796   

Restricted cash movement (Note 7)

     31        (1,100     (400     (3,069
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash provided by financing activities

     11,198        14,926        11,554        17,402   
  

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities

        

Expenditures on mining interests:

        

Masbate Mine, development and sustaining capital

     (11,940     (16,404     (16,066     (25,935

Otjikoto, development and pre-production costs net of sales proceeds

     (6,007     (42,213     (19,533     (103,696

Libertad Mine, development and sustaining capital

     (5,343     (10,544     (11,482     (18,319

Limon Mine, development and sustaining capital

     (5,807     (5,346     (11,204     (10,186

Fekola Project, exploration and evaluation

     (19,445     —          (37,926     —     

Gramalote, prefeasibility and exploration

     (3,338     (4,881     (6,788     (8,136

Other exploration and development (Note 12)

     (7,917     (8,275     (13,699     (16,453

Purchase of non-controlling interest (Note 6)

     —          —          (6,138     —     

Sale of EVI preference shares

     —          —          —          5,487   

Acquisition of rights (Note 6)

     (4,000     —          (4,000     —     

Other

     (284     (202     843        (39
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash used by investing activities

     (64,081     (87,865     (125,993     (177,277
  

 

 

   

 

 

   

 

 

   

 

 

 

Decrease in cash and cash equivalents

     (18,568     (48,926     (21,461     (117,448

Effect of exchange rate changes on cash and cash equivalents

     109        203        (1,385     (474

Cash and cash equivalents, beginning of period

     128,177        183,537        132,564        252,736   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 109,718      $ 134,814      $ 109,718      $ 134,814   
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplementary cash flow information (Note 12)

        

See accompanying notes to condensed interim consolidated financial statements.


B2GOLD CORP.

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of United States dollars)

(Unaudited)

 

 

 

     As at
June 30,
2015
    As at
December 31,
2014
 

Assets

    

Current

    

Cash and cash equivalents

   $ 109,718      $ 132,564   

Accounts receivable and prepaids

     11,463        14,446   

Value-added and other tax receivables

     13,639        16,671   

Inventories (Note 4)

     86,510        95,991   
  

 

 

   

 

 

 
     221,330        259,672   

Assets classified as held for sale

     —          2,787   

Long-term investments (Note 5)

     17,943        18,408   

Value-added tax receivables

     27,786        25,405   

Mining interests (Notes 6 and Note 16 - Schedules)

    

- Owned by subsidiaries

     1,703,662        1,722,807   

- Investments in joint ventures

     74,722        67,926   

Deferred income taxes

     3,352        —     

Other assets (Note 7)

     25,083        21,593   
  

 

 

   

 

 

 
   $ 2,073,878      $ 2,118,598   
  

 

 

   

 

 

 

Liabilities

    

Current

    

Accounts payable and accrued liabilities

   $ 58,090      $ 53,055   

Current taxes payable

     5,783        16,610   

Current portion of long-term debt (Note 8)

     11,642        10,456   

Current portion of derivative instruments at fair value

     973        2,406   

Current portion of mine restoration provisions

     1,062        1,062   

Other (Note 6)

     7,009        1,130   
  

 

 

   

 

 

 
     84,559        84,719   

Liabilities associated with assets held for sale

     —          4,009   

Derivative instruments at fair value (Note 10)

     10,662        694   

Long-term debt (Note 8)

     396,356        368,832   

Mine restoration provisions

     52,377        51,957   

Deferred income taxes

     79,019        77,579   

Employee benefits obligation

     5,672        5,468   

Other long-term liabilities (Note 6)

     3,119        —     
  

 

 

   

 

 

 
     631,764        593,258   
  

 

 

   

 

 

 

Equity

    

Shareholders’ equity

    

Share capital (Note 9)

    

Issued: 926,680,874 common shares (Dec 31, 2014 – 917,652,046)

     2,036,128        2,018,468   

Contributed surplus

     63,764        59,789   

Accumulated other comprehensive loss

     (93,766     (71,553

Retained deficit

     (571,868     (536,617
  

 

 

   

 

 

 
     1,434,258        1,470,087   

Non-controlling interests (Note 6)

     7,856        55,253   
  

 

 

   

 

 

 
     1,442,114        1,525,340   
  

 

 

   

 

 

 
   $ 2,073,878      $ 2,118,598   
  

 

 

   

 

 

 

 

Approved by the Board   

“Clive T. Johnson”

  

Director

  

“Robert J. Gayton”

  

Director

See accompanying notes to condensed interim consolidated financial statements.


B2GOLD CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30

(Expressed in thousands of United States dollars)

(Unaudited)

 

 

 

          2015  
    Shares
(‘000’s)
    Share
capital
    Contributed
surplus
    Accumulated
other
comprehensive
loss
    Retained
deficit
    Non-controlling
interests
    Total
equity
 

Balance at December 31, 2014

    917,652      $ 2,018,468      $ 59,789      $ (71,553   $ (536,617   $ 55,253      $ 1,525,340   

January 1, 2015 to June 30, 2015:

             

Net loss for the period

    —          —          —          —          (14,923     (1,520     (16,443

Acquisition of non-controlling interest (Note 6)

    3,111        6,000        —          —          (12,328     (45,470     (51,798

Shares issued for acquisition of rights (Note 6)

    2,995        4,700        —          —          (8,000     —          (3,300

Cumulative translation adjustment

    —          —          —          (23,560     —          (407     (23,967

Unrealized gain on investments

    —          —          —          1,347        —          —          1,347   

Exercise of stock options

    546        540        —          —          —          —          540   

Shares issued on vesting of RSU

    2,377        5,980        (5,980     —          —          —          —     

Share based payments

    —          —          10,395        —          —          —          10,395   

Transfer to share capital on exercise of stock options

    —          440        (440     —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at June 30, 2015

    926,681        2,036,128        63,764        (93,766)        (571,868)        7,856        1,442,114   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

          2014  
    Shares
(‘000’s)
    Share
capital
    Contributed
surplus
    Accumulated
other
comprehensive
loss
    Retained
earnings
    Non-controlling
interests
    Total
equity
 

Balance at December 31, 2013

    674,720      $ 1,519,217      $ 52,333      $ (40,539   $ 132,640      $ 7,716      $ 1,671,367   

January 1, 2014 to June 30, 2014:

             

Net loss for the period

    —          —          —          —          (35,552     45        (35,507

Cumulative translation adjustment

    —          —          —          (773     —          (145     (918

Unrealized gain on investments

    —          —          —          2,577        —          —          2,577   

Shares issued on exercise of stock options

    1,587        1,796        —          —          —          —          1,796   

Shares issued on vesting of RSU

    2,478        7,805        (7,805     —          —          —          —     

Shares issued from incentive plan

    —          15        —          —          —          —          15   

Share based payments

    —          —          12,654        —          —          —          12,654   

Transfer to share capital on exercise of stock options and incentive plan

    —          3,299        (3,299     —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at June 30, 2014

    678,785      $ 1,532,132      $ 53,883      $ (38,735   $ 97,088      $ 7,616      $ 1,651,984   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

See accompanying notes to condensed interim consolidated financial statements.


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

1

Nature of operations

B2Gold Corp. (“B2Gold” or the “Company”) is a Vancouver-based gold producer with four operating mines (two in Nicaragua, one in the Philippines and one in Namibia) and a portfolio of evaluation and exploration assets in Mali, Colombia, Burkina Faso and Nicaragua.

The Company operates the Libertad Mine and the Limon Mine in Nicaragua, the Masbate Mine in the Philippines and the Otjikoto Mine in Namibia, which achieved commercial production for accounting purposes on February 28, 2015. The Company has an effective 90% interest in the Fekola Project in Mali, an effective 81% interest in the Kiaka gold project in Burkina Faso, a 49% joint venture interest in the Gramalote property in Colombia, and an interest in the Quebradona property in Colombia. The Company also has a 51% interest in a joint operation in Nicaragua with Calibre Mining Corp. (“Calibre”), with an option to acquire an additional 19% interest.

B2Gold is a public company which is listed on the Toronto Stock Exchange under the symbol “BTO”, the NYSE MKT LLC under the symbol “BTG” and the Namibian Stock Exchange under the symbol “B2G”. B2Gold’s head office is located at Suite 3100, Three Bentall Centre, 595 Burrard Street, Vancouver, British Columbia, V7X 1J1.

 

2

Basis of preparation

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting. These condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014, which have been prepared in accordance with IFRS as issued by the IASB.

These condensed interim consolidated financial statements follow the same accounting policies and methods of application as the most recent audited consolidated financial statements of the Company.

These condensed interim consolidated financial statements were authorized for issue by the Board of Directors on August 11, 2015.

 

3

Significant accounting judgements and estimates

Impairment of long-lived assets

Long-lived assets are tested for impairment if there is an indicator of impairment. Calculating the estimated fair values of cash generating units (“CGU”) for long-lived asset impairment tests requires management to make estimates and assumptions with respect to future production levels, mill recoveries, operating and capital costs in its life-of-mine plans, future metal prices, foreign exchange rates, and discount rates. Changes in any of the assumptions or estimates used in determining the fair values could impact the impairment analysis. Such changes could be material.

During the six months ended June 30, 2015, the market spot prices for gold declined; however, long term price did not differ significantly from the levels used in the most recent annual impairment tests. Management has concluded there are no impairment indicators at June 30, 2015. However, if the gold price continues to decline for an extended period of time, the Company may need to reassess its long-term gold price assumption. A significant decrease in the long-term gold price assumption would be an indicator of potential impairment for certain of the Company’s long-lived assets.

Uncertain tax positions

The Company is periodically subject to income tax audits at its operating mine locations. During the six months ended June 30, 2015, the Company settled some of the assessments resulting in a reduction in the provision and an associated income tax recovery of $2 million. At June 30, 2015, the Company has a provision totalling $4 million outstanding (December 31, 2014 - $6 million) representing its best estimate of the outcome of current assessments. The Company is appealing the assessments received and the final outcome of such appeals are not determinable at this time. The provisions made to date may be subject to change and such change may be material.

 

1


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

4

Inventories

 

     June 30,
2015
$
     December 31,
2014
$
 

Gold and silver bullion

     21,322         26,922   

In-process inventory

     6,868         9,379   

Ore stock-pile inventory

     6,759         14,134   

Materials and supplies

     51,561         45,556   
  

 

 

    

 

 

 
     86,510         95,991   
  

 

 

    

 

 

 

 

5

Long-term investments

 

     June 30, 2015      December 31, 2014  
     Cost
$
     Total
Impairment

$
    AOCI
$
    Fair
Value
$
     Cost
$
     Total
Impairment

$
    AOCI
$
    Fair
Value
$
 

Available-for-sale investments:

                   

St. Augustine Gold & Copper Ltd.

     20,193         (13,646     —          6,547         20,193         (13,144     —          7,049   

RTG Mining Inc.

     13,400         (7,730     1,925        7,595         13,400         (6,391     —          7,009   

Calibre Mining Corp.

     5,716         (4,345     1,992        3,363         5,716         (4,345     2,508        3,879   

Kronk Resources Inc.

     496         —          (64     432         496         —          (31     465   

Goldstone Resources Ltd.

     20         (14     —          6         20         —          (14     6   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Balance, end of period

     39,825         (25,735     3,853        17,943         39,825         (23,880     2,463        18,408   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

2


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

6

Mining interests

 

     June 30,
2015
$
    December 31,
2014
$
 

Property, plant and equipment (depletable)

    

Masbate Mine, Philippines

    

Cost, net of impairment

     440,254        420,644   

Accumulated depreciation and depletion

     (106,302     (91,706
  

 

 

   

 

 

 
     333,952        328,938   
  

 

 

   

 

 

 

Otjikoto Mine, Namibia

    

Cost

     414,309        430,668   

Accumulated depreciation and depletion

     (15,705     —     
  

 

 

   

 

 

 
     398,604        430,668   
  

 

 

   

 

 

 

Libertad Mine, Nicaragua

    

Cost

     309,896        296,102   

Accumulated depreciation and depletion

     (148,495     (127,704
  

 

 

   

 

 

 
     161,401        168,398   
  

 

 

   

 

 

 

Limon Mine, Nicaragua

    

Cost

     157,303        142,772   

Accumulated depreciation and depletion

     (76,702     (62,865
  

 

 

   

 

 

 
     80,601        79,907   
  

 

 

   

 

 

 

Masbate undeveloped mineral interests, net of impairment (non-depletable)

     85,078        85,078   
  

 

 

   

 

 

 

Mine under construction (non-depletable)

    
  

 

 

   

 

 

 

Fekola, Mali

     523,664        514,965   
  

 

 

   

 

 

 

Exploration and evaluation properties (non-depletable)

    

Kiaka, Burkina Faso

     61,393        59,062   

Mocoa, Colombia

     28,692        28,652   

Calibre, Nicaragua

     10,594        10,022   

Pavon, Nicaragua

     6,956        6,238   

San Jose, Nicaragua

     1,917        1,915   

Other

     9,883        8,151   
  

 

 

   

 

 

 
     119,435        114,040   
  

 

 

   

 

 

 

Corporate & other

    

Office, furniture and equipment, net

     927        813   
  

 

 

   

 

 

 
     1,703,662        1,722,807   
  

 

 

   

 

 

 

Investments in joint ventures (accounted for using the equity method)

    

Gramalote, Colombia, net of impairment

     73,521        66,725   

Quebradona, Colombia

     1,201        1,201   
  

 

 

   

 

 

 
     74,722        67,926   
  

 

 

   

 

 

 
     1,778,384        1,790,733   
  

 

 

   

 

 

 

 

3


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

Otjikoto

On February 28, 2015, management determined that the Otjikoto Mine achieved commercial production. Effective March 1, 2015, revenues and production costs for Otjikoto gold production are being recorded in the statement of operations. Sales proceeds from the pre-commercial production period of $23.1 million were offset against the amounts capitalized for the Otjikoto Mine property, plant and equipment during the six months ended June 30, 2015.

Prior to commercial production being reached, the Company capitalized interest costs on its borrowings attributable to funds spent on Otjikoto in the amount of $3.2 million (2014 - $2.5 million). This interest was calculated on an effective interest rate based on the Company’s aggregate borrowings which includes the convertible senior subordinated notes and the revolving corporate credit facility (Note 8).

Fekola

Reclassification from exploration and evaluation expenditures to mineral properties and mine development costs

On June 30, 2015, the Company determined that the technical feasibility and commercial viability of the Fekola Project had been determined. As a result, the Fekola Project has been reclassified from exploration and evaluation expenditures to mineral properties and mine development costs as of that date.

Purchase of Fekola non-controlling interest

In January 2015, the Company purchased the remaining 10% interest in Songhoi Resources SARL, the entity that holds the Fekola Project in Mali, owned by a Malian company. The purchase price consisted of $21.2 million in cash and common shares and the grant of a 1.65% net smelter royalty (“NSR”) on the Fekola Project after deducting costs for smelting, refining and government fees. The cash and common shares are payable in three tranches: (1) $5.7 million cash and $6 million common shares were paid/issued on closing (paid), (2) $2 million cash and $4 million payable in cash or common shares at the holder’s option on the first anniversary of the agreement date (January 18, 2015) and (3) $1.5 million cash and $2 million payable in cash or common shares at the holder’s option upon achievement of commercial production at the Fekola Project.

The cash and common share instalments to be paid in the future have been classified as a financial liability and have been valued at their present value using a discount rate of 5%. These have been accrued in other liabilities.

The fair value of the NSR was determined using a discounted cash flow model incorporating estimates and assumptions that included such factors as future production levels, metallurgical recoveries, a future long-term gold price of $1,300 and a discount rate of 6%. The fair value of the NSR was estimated at $38.1 million and has been treated as a reduction of the Fekola mineral property.

The non-controlling interest relating to Songhoi Resources SARL has been reduced by $45.5 million to reflect the ownership change. The difference between the value of the consideration described above and the book value of the non-controlling interest has been recognized as a charge to retained deficit.

Acquisition of rights

In 2005 Papillon Resources Limited (“Papillon”), which was subsequently acquired by the Company, entered into an exclusive joint agreement with a local Malian company whereby Papillon agreed to pay the local Malian company 1% of any dividend received from any joint exploitation company formed in Mali.

On March 19, 2015, the Company and the local Malian company signed an agreement whereby the rights described above were terminated. As consideration for these rights, B2Gold issued shares for a total value of $4 million and made a cash payment of $4 million. The 1% dividend is equivalent to a non-controlling interest as it would give the local Malian company a participation in the net assets of any joint exploitation company. As a result, the $8 million consideration paid was recorded as a charge to retained deficit.

 

4


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

7

Other assets

 

     June 30,
2015
$
     December 31,
2014
$
 

Loan receivable from non-controlling interest, including accrued interest

     12,589         12,486   

Debt service reserve account

     4,092         3,628   

Reclamation deposits

     2,241         2,276   

Low-grade stockpile

     3,646         1,595   

Fair value of derivative instruments

     305         250   

Other

     2,210         1,358   
  

 

 

    

 

 

 
     25,083         21,593   
  

 

 

    

 

 

 

 

8

Long-term debt

 

     June 30,
2015
$
     December 31,
2014
$
 

Convertible senior subordinated notes:

     

- Principal amount

     258,750         258,750   

- Fair value adjustment

     (24,420      (29,258
  

 

 

    

 

 

 
     234,330         229,492   
  

 

 

    

 

 

 

New revolving corporate credit facility:

     

- Principal amount

     150,000         —     

- Less: unamortized transaction costs

     (5,950      —     
  

 

 

    

 

 

 
     144,050         —     
  

 

 

    

 

 

 

Old revolving corporate credit facility:

     

- Principal amount

     —           125,000   

- Less: unamortized transaction costs

     —           (3,382
  

 

 

    

 

 

 
     —           121,618   
  

 

 

    

 

 

 

Equipment loans/finance lease obligations:

     

- Otjikoto equipment loan facility (net of unamortized transaction costs)

     24,352         23,719   

- Nicaraguan equipment loans

     5,266         4,459   
  

 

 

    

 

 

 
     29,618         28,178   
  

 

 

    

 

 

 
     407,998         379,288   

Less: current portion

     (11,642      (10,456
  

 

 

    

 

 

 
     396,356         368,832   
  

 

 

    

 

 

 

Convertible senior subordinated notes

As at June 30, 2015 the fair value of the convertible senior subordinated notes (“convertible notes”) was $234.3 million. The loss on fair value of convertible notes recorded in the statement of operations for the three and six months ended June 30, 2015 was $8.4 million and $6.7 million respectively (2014 – loss of $4.4 million and $42.7 million respectively). The change in fair value of the notes recognized in the statement of operations for the six months ended June 30, 2015 is stated after reducing it by $2.4 million (2014 - $4.9 million) of interest expense which was attributable to eligible expenditures on the Otjikoto property and capitalized to the carrying amount of the property. There was no interest capitalized for the three month period ended June 30, 2015 (2014 - $2.8 million).

 

5


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

New revolving credit facility

On May 20, 2015, the Company signed a credit agreement with a syndicate of international banks for a new revolving credit facility (the “New RCF”) for an aggregate amount of $350 million. The New RCF also allows for an accordion feature whereby, upon receipt of additional binding commitments, the facility may be increased to $450 million any time prior to the maturity date.

The term for the New RCF is four years, maturing on May 20, 2019, except that it shall become due on July 1, 2018 in the event that the Company’s convertible notes, initially due on October 1, 2018, remain outstanding or the maturity date of the convertible notes has not been extended to at least 90 days after May 20, 2019. The New RCF will bear interest on a sliding scale of between Libor plus 2.25% to 3.25% based on the Company’s consolidated net leverage ratio. Commitment fees for the undrawn portion of the facility will also be on a similar sliding scale basis of between 0.5% and 0.925%.

The Company has provided security on the New RCF in the form of a general security interest over the Company’s assets and pledges creating a charge over the shares of certain of the Company’s direct and indirect subsidiaries. In connection with the New RCF, the Company must also maintain certain net tangible worth and ratios for leverage and interest coverage. As at June 30, 2015, the Company was in compliance with these debt covenants.

On June 11, 2015, the Company drew down $150 million under the New RCF leaving an undrawn balance of $200 million at June 30, 2015. This was used to repay the cumulative amount drawn under the old revolving credit facility.

Transaction costs relating to the New RCF totalled $6.1 million and are being recognized over the term of the facility using the effective interest rate method. The principal amount owing under the New RCF has been presented on the balance sheet net of the unamortized balance of transaction costs.

Old revolving credit facility

On May 26, 2015, the Company drew down a further $25 million under the old revolving credit facility (the “Old RCF”) for a total of $150 million. On June 11, 2015 the Company repaid the $150 million outstanding under the Old RCF with proceeds from the New RCF. At this time, the remaining unamortized transaction costs totalling $3.0 million were expensed to interest and financing expense in the statement of operations.

For six months ended June 30, 2015, the interest and financing expense relating to the Old RCF recognized in the statement of operations was reduced by $0.8 million (2014 - $0.8 million), which was attributable to eligible expenditures on the Otjikoto property to the date the project was ready for the intended use and capitalized to the carrying amount of the property. There was no interest capitalized for the three month period to June 30, 2015 (2014 - $0.4 million).

Otjikoto equipment loan facility

During the six months ended June 30, 2015, the Company drew $3.9 million under the facility (2014 - $19.7 million). At June 30, 2015, the Company had $6.5 million available to draw, based on current exchange rates.

Nicaragua equipment loans

During the six months ended June 30, 2015, subsidiaries of the Company purchased mobile heavy equipment valued at $1.8 million (2014 - $3.0 million) for its Libertad and Limon operations. The Company paid 15% of the value of the equipment in cash and entered into two credit contracts with Caterpillar Crédito S.A de C.V for the remaining 85%. The contracts have between a thirty-six to sixty month term, with quarterly payments of principal and interest at a fixed rate of LIBOR plus 4.0%. The Company has provided security on the loan in the form of the related equipment.

 

6


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

9

Share capital

The Company’s authorized share capital consists of an unlimited number of common shares and an unlimited number of preferred shares. As at June 30, 2015, the Company had 926,680,874 common shares outstanding, including 2,705,000 common shares being held in trust under the Company’s Incentive Plan. No preferred shares were outstanding.

During the three months ended June 30, 2015, the Company granted 0.6 million stock options to employees and directors. These options have a weighted average exercise price of C$1.98, have a term of five years and vest over a period of up to three years. The fair value was calculated using the Black-Scholes option pricing model based on a risk-free annual interest rate of 0.66%, an expected life of 3.1 years, an expected volatility of 57%, and a dividend yield rate of nil. During the six months ended June 30, 2015, the Company granted 22.3 million stock options to employees and directors. These options have a weighted average exercise price of C$2.01, have a term of five years and vest over a period of up to three years. The fair value was calculated using the Black-Scholes option pricing model based on a risk-free annual interest rate of 0.49%, an expected life of 3.0 years, an expected volatility of 58%, and a dividend yield rate of nil. The total number of stock options outstanding at June 30, 2015 was 61.7 million.

For the three and six months ended June 30, 2015, share-based payments expense, relating to the vesting of stock options, was $1.4 million and $5.4 million, respectively (2014 - $2.1 million and $4.2 million), net of $0.5 million and $1.2 million, respectively (2014 - $0.8 million and $1.7 million) capitalized to mining interests.

During the three and six months ended June 30, 2015, the Company granted 0.1 million and 1.5 million RSUs, respectively to employees and directors. The total number of RSUs outstanding at June 30, 2015 was 1.7 million.

For the three and six months ended June 30, 2015, share-based payments expense, relating to the vesting of RSUs, was $0.9 million and $3.1 million, respectively (2014 - $3.1 million and $4.4 million), net of $0.0 million and $0.0 million, respectively (2014 - $0.0 million and $0.2 million) capitalized to mining interests.

 

10

Gold commitments and gold forwards

Under the terms of the Old RCF (Note 8), the Company was required to maintain gold forward contracts, within certain parameters, over the term of the facility in order to manage the risk of volatility in the Company’s future operating income and reduce risk in respect of debt service obligations. These contracts were excluded from the scope of IAS 39 and were accounted for as executory contracts because they were entered into and continued to be held for the purpose of delivery in accordance with the Company’s expected production schedule. No fair value gains and losses on these commodity contracts were recorded in the financial statements.

As at June 30, 2015, the following gold forward contracts with respect to the Otjikoto Project were outstanding and continue to be accounted for as executory contracts (by maturity dates):

 

     2015      2016      2017      2018      Total  

Gold forward contracts:

              

- Ounces

     4,500         9,000         9,000         7,500         30,000   

- Average price per ounce (rand)

     16,020         16,020         16,020         16,020         16,020   

 

7


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

On June 11, 2015, in connection with the termination the Old RCF, the Company novated certain executory contracts required under the Old RCF to the counterparties of the New RCF. The novated contracts were repriced to include a $2.5 million finance charge which has been included in interest and financing expense on the statement of operations.

As a result of the repricing, these contracts are no longer excluded from the scope of IAS 39. These derivative instruments were not designated as hedges by the Company and are recorded at their fair value at the end of each reporting period with changes in fair value recorded in the statement of operations. The Company recognised the full $14.0 million fair value of the new contracts as a liability on the date of novation. Of this, $11.5 million relating to the fair value of the old contracts at the time of novation was treated as an unrealized loss on derivative instruments and $2.5 million, relating to the cost of the novation, was treated as a financing charge. At June 30, 2015, an unrealized gain on derivative instruments of $3.7 million was recorded in the statement of operations relating to these contracts.

The Company also settled contracts for the sale of 29,900 ounces at an average exercise price of 15,895 rand per ounce with settlements scheduled between June 30, 2015 and December 31, 2018 for $1.6 million. This has been recorded as part of realized losses on derivative instruments in the statement of operations.

As at June 30, 2015, the following gold forward contracts with respect to the Otjikoto Mine were outstanding (by maturity dates):

 

     2015      2016      2017      2018      Total  

Gold forward contracts:

              

- Ounces

     12,498         33,186         35,916         35,916         117,516   

- Average price per ounce (rand)

     14,819         15,002         15,044         15,044         15,008   

The unrealized fair value of these contracts at June 30, 2015 was $(10.4) million.

 

11

Financial instruments

As at June 30, 2015, the Company’s financial assets and liabilities that are measured and recognized at fair value on a recurring basis are categorized as follows:

 

     As at June 30, 2015      As at December 31, 2014  
     Level 1
$
     Level 2
$
     Level 1
$
     Level 2
$
 

Long-term investments

     17,943         —           18,408         —     

Convertible senior subordinated notes

     —           (234,330      —           (229,492

Fuel derivative contracts

     —           (1,101      —           (3,100

Gold collar contracts

     —           390         —           348   

Gold forward contracts

     —           (10,372      —           —     

The fair value of the Company’s long-term investments was determined using market quotes from an active market for each investment.

The fair value of the convertible senior subordinated notes was determined using a broker’s price quote from an active market.

The fair value of the fuel derivative contracts and gold derivative contracts was determined using prevailing market rates for instruments with similar characteristics.

 

8


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

12

Supplementary cash flow information

Supplementary disclosure of cash flow information is provided in the table below:

Non-cash charges (credits):

 

     For the three
months ended

June 30, 2015
$
     For the three
months ended

June 30, 2014
$
     For the six
months ended

June 30, 2015
$
     For the six
months ended

June 30, 2014
$
 

Depreciation and depletion

     35,008         28,380         67,803         53,690   

Share-based payments

     3,647         7,337         9,135         10,728   

Loss on fair value of convertible notes

     8,364         4,408         6,671         42,695   

Unrealized loss (gain) on derivative instruments

     5,727         (1,035      5,820         (947

Non-cash interest and financing expense

     5,522         —           5,522         —     

Gain on sale of Bellavista property

     —           —           (2,192      —     

Write-down of long-term investments

     517         2,745         1,855         3,007   

Accretion of mine restoration provisions

     356         298         710         596   

Deferred income tax expense (recovery)

     (2,383      208         (850      (670

Other

     1,545         (785      2,516         669   
  

 

 

    

 

 

    

 

 

    

 

 

 
     58,303         41,556         96,990         109,768   
  

 

 

    

 

 

    

 

 

    

 

 

 

Changes in non-cash working capital:

 

     For the three
months ended

June 30, 2015
$
     For the three
months ended

June 30, 2014
$
     For the six
months ended

June 30, 2015
$
     For the six
months ended

June 30, 2014
$
 

Accounts receivable and prepaids

     950         323         3,132         2,729   

Value-added and other tax receivables

     664         (3,439      2,852         (13,382

Inventories

     (4,988      227         6,655         (6,151

Accounts payable and accrued liabilities

     6,185         3,267         14,056         (3,236

Income and other taxes payables

     (2,024      (122      (10,827      (2,283
  

 

 

    

 

 

    

 

 

    

 

 

 
     787         256         15,868         (22,323
  

 

 

    

 

 

    

 

 

    

 

 

 

Other exploration and development:

 

     For the three
months ended

June 30, 2015
$
     For the three
months ended

June 30, 2014
$
     For the six
months ended

June 30, 2015
$
     For the six
months ended

June 30, 2014
$
 

Kiaka Project, exploration

     (1,561      (1,672      (2,210      (3,557

Masbate Mine, exploration

     (1,179      (776      (2,382      (2,435

Libertad Mine, exploration

     (1,146      (1,108      (2,195      (2,274

Limon Mine, exploration

     (1,091      (1,161      (1,938      (2,140

Otjikoto Mine, exploration

     (1,166      (1,679      (1,968      (2,760

Primavera, exploration

     (149      (174      (566      (508

Pavon, exploration

     (299      (1,134      (684      (1,735

Other

     (1,326      (571      (1,756      (1,044
  

 

 

    

 

 

    

 

 

    

 

 

 
     (7,917      (8,275      (13,699      (16,453
  

 

 

    

 

 

    

 

 

    

 

 

 

 

9


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

Non-cash investing and financing activities:

 

     For the three
months ended

June 30, 2015
$
     For the three
months ended

June 30, 2014
$
     For the six
months ended

June 30, 2015
$
     For the six
months ended

June 30, 2014
$
 

Stock-based compensation, capitalized to resource property interests

     576         947         1,261         1,926   

Equipment purchased under equipment loan

     —           —           1,559         2,512   

Equipment purchased under finance lease

     —           —           —           2,115   

Interest expense, capitalized to resource property interest

     —           3,194         3,221         5,709   

Change in accounts payable and accrued liabilities relating to resource property expenditures

     (5,082      4,051         (9,141      (18,762

 

13

Compensation of key management

Key management includes the Company’s directors, members of the Executive Committee and members of Senior Management. Compensation to key management included:

 

     For the three
months ended

June 30, 2015
$
     For the three
months ended

June 30, 2014
$
     For the six
months ended

June 30, 2015
$
     For the six
months ended

June 30, 2014
$
 

Salaries and short-term employee benefits

     1,030         4,873         3,261         5,902   

Share-based payments

     1,353         5,401         3,976         6,497   

 

10


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

14

Segmented information

The Company’s reportable operating segments include its mining operations and development projects, namely the Limon, Libertad, Masbate and Otjikoto mines, and the Fekola, Gramalote and Kiaka projects. The “Other Mineral Properties” segment consists of the Company’s interests in mineral properties which are at various stages of exploration. The “Corporate and Other” segment includes corporate operations.

The Company’s segments are summarized in the following tables.

 

     For the three months ended June 30, 2015  
     Limon
Mine
$
     Libertad
Mine

$
    Masbate
Mine
$
     Otjikoto
Project

$
     Gramalote
Project

$
     Kiaka
Project
$
    Fekola
Project
$
    Other
Mineral

Properties
$
    Corporate
& Other

$
    Total
$
 

Gold revenue

     19,064         31,704        41,180         44,558         —           —          —          —          —          136,506   

Production costs

     9,991         21,980        25,793         18,332         —           —          —          —          —          76,096   

Depreciation & depletion

     7,721         10,418        6,044         10,825         —           —          —          —          75        35,083   

Net income (loss)

     683         (5,465     1,300         15,378         —           (434     (1,011     (90     (33,145     (22,784

Capital expenditures

     6,899         6,489        13,119         7,174         3,338         1,560        19,445        1,774        239        60,037   

Total assets

     107,760         202,173        490,575         462,165         73,521         61,500        523,834        59,732        92,618        2,073,878   

 

     For the three months ended June 30, 2014  
     Limon
Mine
$
     Libertad
Mine

$
     Masbate
Mine
$
     Otjikoto
Project

$
    Gramalote
Project

$
     Kiaka
Project
$
    Fekola
Project

$
     Other
Mineral

Properties
$
     Corporate
& Other

$
    Total
$
 

Gold revenue

     19,435         52,602         48,221         —          —           —          —           —           —          120,258   

Production costs

     11,123         24,395         30,411         —          —           —          —           —           —          65,929   

Depreciation & depletion

     4,883         11,167         12,330         —          —           —          —           —           64        28,444   

Net income (loss)

     2,463         8,425         476         (395     —           (508     —           938         (22,928     (11,529

Capital expenditures

     6,508         11,651         17,179         43,891        4,881         1,672        —           1,878         30        87,690   

Total assets

     109,094         239,487         1,161,734         427,303        157,149         54,833        —           68,514         116,111        2,334,225   

 

11


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

    For the six months ended June 30, 2015  
    Limon
Mine
$
    Libertad
Mine

$
    Masbate
Mine
$
    Otjikoto
Project

$
    Gramalote
Project

$
    Kiaka
Project
$
    Fekola
Project
$
    Other
Mineral

Properties
$
    Corporate
& Other

$
    Total
$
 

Gold revenue

    35,787        69,238        109,628        60,745        —          —          —          —          —          275,398   

Production costs

    20,245        45,321        63,189        25,164        —          —          —          —          —          153,919   

Depreciation & depletion

    13,955        22,460        17,058        14,330        —          —          —          —          131        67,934   

Net income (loss)

    (796     (2,677     16,222        18,087        —          (1,171     (2,862     (233     (43,013     (16,443

Capital expenditures

    13,143        13,677        18,448        21,501        6,788        2,210        37,926        3,005        247        116,945   

Total assets

    107,760        202,173        490,575        462,165        73,521        61,500        523,834        59,732        92,618        2,073,878   

 

    For the six months ended June 30, 2014  
    Limon
Mine
$
    Libertad
Mine

$
    Masbate
Mine
$
    Otjikoto
Project

$
    Gramalote
Project

$
    Kiaka
Project
$
    Fekola
Project
$
    Other
Mineral

Properties
$
    Corporate
& Other

$
    Total
$
 

Gold revenue

    37,751        102,599        108,928        —          —          —          —          —          —          249,278   

Production costs

    19,992        43,848        64,394        —          —          —          —          —          —          128,234   

Depreciation & depletion

    8,945        21,353        23,392        —          —          —          —          —          126        53,816   

Net income (loss)

    5,494        17,151        11,072        (129     —          (508     —          158        (68,745     (35,507

Capital expenditures

    12,327        20,593        28,369        106,456        8,136        3,557        —          3,287        34        182,759   

Total assets

    109,094        239,487        1,161,734        427,303        157,149        54,833        —          68,514        116,111        2,334,225   

The Company’s mining interests are located in the following geographical locations

 

     June 30,
2015
$
     December 31,
2014

$
 

Mining interests

     

Mali

     530,684         521,033   

Namibia

     398,604         430,668   

Philippines

     419,030         414,016   

Nicaragua

     263,140         268,115   

Colombia

     103,414         96,577   

Burkina Faso

     62,095         59,511   

Canada

     928         813   

Chile

     489         —     
  

 

 

    

 

 

 
     1,778,384         1,790,733   
  

 

 

    

 

 

 

 

12


B2GOLD CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

 

15

Commitments

As at June 30, 2015, the Company had the following significant commitments (in addition to those disclosed elsewhere in these financial statements):

 

   

Payments of $34.2 million for Fekola project equipment and development costs to be incurred within the next 12 months.

 

   

Land payments of $3.3 million (the Company’s 49% share) with respect to the acquisition of land at the Gramalote project in Colombia. It is expected that $0.5 million will be paid in 2015 and the remaining $2.8 million in 2016.

 

13


B2GOLD CORP.

MINING INTERESTS SCHEDULE (NOTE 16)

For the six months ended June 30, 2015

(All tabular amounts are in thousands of United States dollars)

(Unaudited)

 

    Cost     Accumulated depreciation     Net carrying value  
   

Opening

balance at

Dec. 31,
2014

   

Acquisition
costs/

Additions

   

Disposals/

write-offs

    Reclass     CTA    

Closing

balance at

June 30,
2015

   

Opening

balance at

Dec. 31,
2014

    Depreciation    

Disposals/

write-offs

    CTA    

Closing

balance at

June 30,
2015

   

As at

June 30,
2015

   

As at

Dec. 31,
2014

 
    $     $     $     $     $     $     $     $     $     $     $     $     $  

Property, plant and equipment (depletable)

                         

Masbate

    420,644        19,785        (175     —          —          440,254        (91,706     (14,669     73        —          (106,302     333,952        328,938   

Otjikoto

    430,668        9,454        —          (2,654     (23,159     414,309        —          (15,873     —          168        (15,705     398,604        430,668   

Libertad

    296,102        14,880        (1,086     —          —          309,896        (127,704     (21,365     574        —          (148,495     161,401        168,398   

Limon

    142,772        14,579        (48     —          —          157,303        (62,865     (13,879     42        —          (76,702     80,601        79,907   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    1,290,186        58,698        (1,309     (2,654     (23,159     1,321,762        (282,275     (65,786     689        168        (347,204     974,558        1,007,911   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Masbate undeveloped mineral interests

    85,078        —          —          —          —          85,078        —          —          —          —          —          85,078        85,078   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Mine under construction

                         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fekola

    514,965        44,528        (38,483     2,654        —          523,664        —          —          —          —          —          523,664        514,965   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Exploration & evaluation properties (non-depletable)

                         

Kiaka

    59,062        2,331        —          —          —          61,393        —          —          —          —          —          61,393        59,062   

Mocoa

    28,652        40        —          —          —          28,692        —          —          —          —          —          28,692        28,652   

Calibre

    10,022        572        —          —          —          10,594        —          —          —          —          —          10,594        10,022   

Pavon

    6,238        718        —          —          —          6,956        —          —          —          —          —          6,956        6,238   

San Jose

    1,915        2        —          —          —          1,917        —          —          —          —          —          1,917        1,915   

Other

    8,151        1,732        —          —          —          9,883        —          —          —          —          —          9,883        8,151   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    114,040        5,395        —          —          —          119,435        —          —          —          —          —          119,435        114,040   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate

                         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Office, furniture & equipment

    1,768        246        (88     —          —          1,926        (955     (132     88        —          (999     927        813   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    2,006,037        108,867        (39,880     —          (23,159     2,051,865        (283,230     (65,918     777        168        (348,203     1,703,662        1,722,807   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investments in joint ventures (accounted for using the equity method)

                         

Gramalote

    66,725        6,796        —          —          —          73,521        —          —          —          —          —          73,521        66,725   

Quebradona

    1,201        —          —          —          —          1,201        —          —          —          —          —          1,201        1,201   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    67,926        6,796        —          —          —          74,722        —          —          —          —          —          74,722        67,926   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    2,073,963        115,663        (39,880     —          (23,159     2,126,587        (283,230     (65,918     777        168        (348,203     1,778,384        1,790,733   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

14


B2GOLD CORP.

MINING INTERESTS SCHEDULE (NOTE 16)

For the year ended December 31, 2014

(All tabular amounts are in thousands of United States dollars)

(Unaudited)

 

    Cost     Accumulated depreciation     Net carrying value  
   

Balance at

Dec. 31,
2013

   

Acquisition
costs/

Additions

   

Disposals/

write-offs

    Reclass     CTA    

Balance at

Dec. 31,
2014

   

Balance at

Dec. 31,
2013

    Depreciation    

Disposals/

write-offs

   

Balance at

Dec. 31,
2014

   

As at

Dec. 31,
2014

   

As at

Dec. 31,
2013

 
    $     $     $     $     $     $     $     $     $     $     $     $  

Property, plant and equipment (depletable)

                       

Masbate

    723,155        52,810        (372,782     17,461        —          420,644        (40,744     (51,764     802        (91,706     328,938        682,411   

Libertad

    259,518        36,641        (57     —          —          296,102        (83,927     (43,832     55        (127,704     168,398        175,591   

Limon

    120,139        22,734        (101     —          —          142,772        (44,970     (17,957     62        (62,865     79,907        75,169   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    1,102,812        112,185        (372,940     17,461        —          859,518        (169,641     (113,553     919        (282,275     577,243        933,171   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Masbate undeveloped mineral interests

    176,460        —          (73,921     (17,461     —          85,078        —          —          —          —          85,078        176,460   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Mine under construction

                       
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Otjikoto

    289,945        173,927        —          —          (33,204     430,668        —          —          —          —          430,668        289,945   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Exploration & evaluation properties (non-depletable)

                       

Fekola

    —          514,965        —          —          —          514,965        —          —          —          —          514,965        —     

Kiaka

    50,550        8,512        —          —          —          59,062        —          —          —          —          59,062        50,550   

Mocoa

    28,200        452        —          —          —          28,652        —          —          —          —          28,652        28,200   

Trebol & Pavon

    24,870        3,398        (21,465     (565     —          6,238        —          —          —          —          6,238        24,870   

San Jose

    1,123        175        —          617        —          1,915        —          —          —          —          1,915        1,123   

Calibre

    8,496        1,526        —          —          —          10,022        —          —          —          —          10,022        8,496   

Other

    861        7,342        —          (52     —          8,151        —          —          —          —          8,151        861   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    114,100        536,370        (21,465     —          —          629,005        —          —          —          —          629,005        114,100   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Corporate & other

                       

Bellavista

    2,611        —          —          (2,611     —          —          —          —          —          —          —          2,611   

Office, furniture & equipment

    1,688        80        —          —          —          1,768        (698     (257     —          (955     813        990   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    4,299        80        —          (2,611     —          1,768        (698     (257     —          (955     813        3,601   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    1,687,616        822,562        (468,326     (2,611     (33,204     2,006,037        (170,339     (113,810     919        (283,230     1,722,807        1,517,277   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investments in joint ventures (accounted for using the equity method)

                       

Gramalote

    148,967        14,085        (96,327     —          —          66,725        —          —          —          —          66,725        148,967   

Quebradona

    1,201        —          —          —          —          1,201        —          —          —          —          1,201        1,201   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    150,168        14,085        (96,327     —          —          67,926        —          —          —          —          67,926        150,168   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    1,837,784        836,647        (564,653     (2,611     (33,204     2,073,963        (170,339     (113,810     919        (283,230     1,790,733        1,667,445   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

15