B2Gold Corp. (TSX:BTO, Financial) (BTG, Financial), a Vancouver based intermediate gold mining company with operations in Central America, Africa and the Philippines, announced its operating results for the fourth quarter and full-year 2016 on Feb. 5.
Gold production on a consolidated basis was 550,423 ounces in 2016, in line with its updated guidance and a 12% increase on a year over year basis. This figure also represents the company's eighth consecutive year of record consolidated gold production.
At the Masbate mine in the Philippines, the miner processed 206,224 ounces of gold, a 17% increase on a year over year basis.
At the Otjikoto mine in Namibia, the company extracted 166,285 ounces of gold, which represents a 14% upside from the production  in 2015.
The company was able to achieve these production records due to a higher gold grade processed, increased throughput and enhanced optimization of operations.
In 2016, B2Gold also reported a record in revenue, $683.3 million, led by another record in the amount of gold sold during the period. The miner sold 548,281 ounces of gold for an average price of $1,246 per ounce.
During the quarter, B2Gold produced 140,651 ounces of gold, a 7% increase on a year over year basis.
For the whole year, the company expects to have sustained cash operating costs of $500 per ounce and an all-in sustaining cost of $780 per ounce. Both figures are close to the lower limit of the company’s latest guidance.
The Canadian miner also provided its 2017 guidance for production and costs.
For 2017, B2Gold expects to produce approximately 545,000 to 595,000 ounces of gold and sustain an AISC of approximately $940 to $970Â per ounce. The cash operating costs are expected to be approximately $610 to $650 per ounce of gold.
The company’s 2017 guidance on gold production includes “expected Fekola pre-commercial production of between 45,000 and 55,000 ounces.”
B2Gold said its gold project in Mali, Fekola, is ahead of schedule and will likely start production at the beginning of the fourth quarter of 2017.
“The Fekola project is expected to be a large low-cost producer and should enable the company to significantly reduce its longer-term cash operating costs per ounce and AISC per ounce,” the company says.
B2Gold is trading around $3.14 per share on the New York Stock Exchange at 2.11 times the book value and at 11.19 times the Ebitda.
The company had approximately $123.76 million in cash on hand and $448.7 million in total debt as of the most recent quarter.
Disclosure: I have no position in B2Gold Corp.
Start a free 7-day trial of Premium Membership to GuruFocus.
