Q1 2014 B2Gold Corp Earnings Conference Call

May 14, 2014 AM EDT
BTO.TO - B2Gold Corp
Q1 2014 B2Gold Corp Earnings Conference Call
May 14, 2014 / 05:00PM GMT 

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Corporate Participants
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   *  Clive Johnson
      B2Gold Corp. - President & CEO
   *  Mike Cinnamond
      B2Gold Corp. - SVP, Finance & CFO
   *  Dale Craig
      B2Gold Corp. - VP, Operations
   *  Bill Lytle
      B2Gold Corp. - VP, Country Manager Namibia
   *  Dennis Stansbury
      B2Gold Corp. - SVP, Production & Development
   *  Tom Garagan
      B2Gold Corp. - SVP, Exploration

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Conference Call Participants
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   *  Rahul Paul
      Canaccord Genuity - Analyst
   *  Ovais Habib
      Scotia Capital - Analyst
   *  Andrew Quail
      Goldman Sachs - Analyst
   *  Sam Crittenden
      RBC Capital Markets - Analyst
   *  Jeff Killeen
      CIBC World Markets - Analyst
   *  Chris Thompson
      Raymond James - Analyst
   *  Joe Fazzini
      Dundee Capital Markets - Analyst

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Presentation
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Operator   [1]
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 Good morning, ladies and gentlemen. Welcome to the B2Gold first-quarter 2014 results conference call. I would now like to turn the meeting over to Mr. Clive Johnson, President and CEO. Please go ahead, Mr. Johnson.

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 Clive Johnson,  B2Gold Corp. - President & CEO   [2]
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 Thanks, operator. Good morning or good afternoon. Welcome to B2Gold's conference call to discuss the results of the first quarter of 2014. 2014 first quarter was another successful quarter for the Company with good operational performance from the three mines. In addition to that, we advanced our development projects, particularly the Otjikoto project, which is well into construction. The Company remains in a very strong cash position and in a very strong position given the weaker gold price that we are seeing today. Our continued focus is to optimize production at our mines to develop further our projects such as Otjikoto and always retain a strong cash balance in the Company. So with that brief intro, I'm going to turn it over to Mike Cinnamond, the CFO of B2Gold, to walk us through the financials. Thanks, Mike.

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 Mike Cinnamond,  B2Gold Corp. - SVP, Finance & CFO   [3]
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 Thanks, Clive. So I will start on the statement of operations. Gold ounces sold for the period were just under 99,000 ounces, which was a positive increase of 4000 ounces over the prior year or prior period in the prior year. The realized price for those sales was $1303, which compares positively with the average spot in the period of $1293.

 Overall, revenues declined by $25 million from $154 million in 2013 to $129 million in 2014, which is primarily a function of the decrease in the gold prices. So breaking down that decrease, there was a 20% decrease in the average realized prices, which created a $21 million drop and also, in 2013, revenues included a $9 million non-cash adjustment, a credit, which related to the unwind of mark-to-market contracts that were acquired as part of the Masbate acquisition, which aren't repeated this year. All of that was amortized in 2013. So offsetting these two declines was a positive $5 million increase based on an increase in the total ounces sold getting us to that decrease of $25 million.

 On the production side, we produced just over 96,000 ounces, which was just under the lower end of our projected guidance. It was a very positive quarter for cash operating costs. Our overall consolidated cash operating costs were $634 an ounce for the quarter, which compares positively with our budget of $682 an ounce, so a $48 [price] improvement, or about 7% over budget and an $88 improvement over our actual cash operating costs in the prior year period.

 Overall, our guidance is unchanged at $667 to $695 per ounce for the year for cash operating costs and those positive cash costs are actually -- we saw them in all operations. So Masbate, first of all, had a 4% reduction in its cash costs due to a lower strip ratio than budgeted and then this resulted in more ore produced in the period than was budgeted and I see an ore stockpile buildup and that inventory adjustment related to the ore. Stockpile buildup produced a positive $5 million credit against operating costs resulting in the lower costs that we saw from Masbate. Masbate did see lower grades than budgeted, however, and that was primarily due to differences in mining location and the intent was that 100% of the Masbate material in the quarter would have come from the Colorado high grade oxide material, but as it transpired mining in the period was from the HMB and [main pits] and consisted of primary and transition material, so resulting in an overall lower grade being mined.

 The net result of that was that Masbate production for the period was just over 42,500 ounces, approximately 9300 ounces less than budget. However, our mining team at Masbate have looked at this and there is the intent to go back and mine that higher grade Colorado material later in the year. So our team are confident that they will make up that deficit and therefore, the overall guidance for Masbate for the period -- for the year remains unchanged with a range of 190,000 to 200,000 ounces.

 Libertad, it benefited from higher grades, primarily from mining at the Mojon and Crimea pits with the result that production overall of 38,500 ounces exceeded budget by approximately 2400 ounces. And then at Limon, [grade] was pretty much on budget, but it did benefit from lower site and contractor charges. So overall production was approximately just over 15,000 ounces (inaudible) 600 ounces short of budget.

 So when you combine all these factors, or all these results, the total production in the period of 96,300 ounces was just about 7000 ounces short of budget. But our budget production, in any event, in the first half of the year was expected to be lower than the second half due to various factors, including the SAG mill changeout that is going to happen at Masbate in June. As we mentioned, our Masbate team are confident that they can make up the difference, the deficit of Masbate so far this quarter. So overall, there is no change to our consolidated guidance for the year of 390,000 to 420,000 ounces.

 In addition, all-in sustaining costs for the quarter came out at $1039 per ounce. To point, I think some of the CapEx that was budgeted for the quarter was pushed into a little later in the year, so those all-in sustaining costs aren't quite what we were budgeting, but overall our all-in sustaining costs are still forecast to be in the range of $1025 to $1125 for the year.

 Moving on to commenting on a couple of the other items in the P&L. Depreciation per ounce has increased to $256 per ounce sold as compared to the fiscal 2013 amount of $225 per ounce and that's really due to a full period of amortization being charged in 2014 for some of the significant CapEx that was booked in 2013. In 2013, we followed the half-year rule for additions whereas, this year, you are getting a full period's amortization for some of that significant CapEx, including things like the deferred stripping at Santa Maria and Mojon that occurred in 2013.

 On the G&A side, G&A is up a little bit and there are some new hire employees that we have on that side and also, as you know, we acquired Volta in the Kiaka project late in 2013 and now we have a full quarter of G&A related to that operation. The other main item in the P&L that I would highlight is the loss on the fair value of convertible notes of $38.2 million. Our convertible notes that we issued last year are reported for accounting purposes at fair value and that fair value fluctuates with B2Gold's share price because of the conversion feature that is inherent in there. So in fact, you are really a victim in your own success. The higher your share price, the greater the value of the debt and the bigger the mark-to-market adjustment that flows through the P&L. It's a non-cash adjustment and at the end of the day, we have added it back into our adjusted earnings per share, which I will discuss in a moment.

 Overall, there was a loss through the period of $24 million, including that mark-to-market on the converts, which equated to a $0.04 per share loss, but if you add back the convertible mark-to-market adjustment and also other adjustments, most notably the share-based non-cash stock-based comp charge. We actually [commented] an adjusted earnings number of $17 million, or $0.03 a share.

 I'm just going to move over and talk briefly about the cash flow, just to comment on a couple of things in there. So our cash provided by operating activities before changes in non-cash working capital was $43.3 million as compared to $47 million last year. That equates to about $0.06 per share on a cash flow basis and I think that is pretty notable. We came pretty close to last year's number even given the significant reduction in the gold price in the period. So if you look at -- we actually incurred a reduction in total gold sales proceeds of $16 million, but that was offset by an improvement in cash operating costs of $8 million and this year, we didn't have the CGA transaction costs that we incurred last year. So when you [knot] those out, that really explains the $3 million dollar difference year on year or period on period between this first quarter and last year's first quarter.

 And then if you look at just common changes in non-cash working capital, there was a negative impact of $22.5 million in the period and that really reflects two main things. The first is the buildup of the ore stockpile I mentioned earlier at Masbate. That's about approximately a $5 million working capital outflow and we will see the benefit of that in future periods and also another $10 million of that change relates to the Namibian-based VATs. And we are getting our VAT back in Namibia. It's generally taken -- from filing the return to actually getting the refund, it's generally taking between six and nine months. So it's slightly longer than we expected, but it is coming in and in fact, after the period ends, we received a further $4 million refund. So I think we are confident that we will see all that come back, but it did have a negative impact for the quarter.

 Overall, cash flow from operating activities were just shy of $18 million compared to $50 million last year. But I would say that if you look at last year, we did get the benefit last year of $32 million, just over $32 million in revenues from volume that we acquired as part of the Masbate acquisition. So if you invested and recur this year -- so if you look on a like-for-like basis, we are pretty consistent with the prior year.

 A couple of other cash flow items maybe I would comment on. The Otjikoto loan, we drew down another $11.3 million in this quarter and we've got about approximately $12 million left to draw. We also paid interest this quarter of $6 million, which is mainly the interest on the convert of just over $5 million plus interest in the RCF and our other short-term borrowings. And we also had an outflow of $2 million related to the CSRA account, the restricted cash. That is just a service account that we had to set up in relation to the [CAT] financing. Overall, on the investing side, we had an outflow of $89 million and I would comment as well that that includes $26 million for Otjikoto payables for capital additions that already occurred and were recorded at December 31, but we are just picking up the outflow related to the payables.

 Overall, just to remind everyone as well that Otjikoto remains on time and on budget. So reflecting all of those items, at the end of the quarter, we had $183 million of cash and we are in a strong cash position and combined with our existing credit facilities, we think we are well-financed to complete all of our current activities, including completion of Otjikoto, which is scheduled to come online in Q4 of this year. With that, I think that sort of summarizes the main items that I wanted to highlight.

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 Clive Johnson,  B2Gold Corp. - President & CEO   [4]
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 Okay, making clear about one thing you said, Otjikoto loan. Is that the revolving facility you are talking about there or is that the lease?

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 Mike Cinnamond,  B2Gold Corp. - SVP, Finance & CFO   [5]
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 Sorry, it's the CAT lease.

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 Clive Johnson,  B2Gold Corp. - President & CEO   [6]
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 (multiple speakers) Okay, thanks, Mike. We will save all our questions to the end. Just a comment I guess on the financial position of the Company. Obviously with lower gold prices, we've seen a lot of writedowns in the sector, a lot of massive writedowns because of the lower gold price and also frankly because of, I think, some very poor acquisitions. I think it's important to note at B2Gold we have had no writedowns of any material projects over the last few years and we have done four significant acquisitions. So I think that speaks a lot to the way we approach our acquisition, which is quality, due diligence done by our own people using our own in-house team who therefore has accountability and also obviously the quality of the operations themselves speak to the need for no writedowns.

 And of course, we've enjoyed exploration success and continue to at each of the acquisitions that we have done and we expect the same at the Kiaka Volta acquisition as well. But also it tells you about our view of the gold price. So when the gold price was a lot higher and we acquired CGA Mining, Masbate project, we weren't using the current gold price then for long term. We were using a much lower number, very close to today's gold price. So I think we take a conservative view. I think that's one of the reasons why we have no writedowns and have continued to do quality acquisitions. With that, I'd like to pass it over to Dale Craig. Dale is going to walk us through the operations and over to you, Dale.

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 Dale Craig,  B2Gold Corp. - VP, Operations   [7]
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 Thanks, Clive. Okay, for B2Gold, consolidated production was 96,303 ounces, which represents a 21% increase over the first quarter of 2013. All operations produced more gold than the same period last year. At $634 per ounce, consolidated cash operating costs were 31% lower than the same period last year and 7% lower than budget. For the Masbate gold mine in the first quarter, production was 42,476 ounces compared to budget of 51,892 ounces. The primary reason for this shortfall was that mining at the close of 2013 had not advanced as far as anticipated in Colorado Pit. So this is a pit development issue. Mill feed therefore included lower yielding ores from main vein and HMB East pit. Because the [plan] material will be mined later this year, we have maintained our guidance. The ore is still there to be processed.

 Cash operating costs were 4% lower than budget at $732 per ounce. Less waste was mined and more high-grade ore was mined and stockpiled resulting in a positive stockpile adjustment. Overall, for the quarter, less material was processed resulting in lower overall process costs offset by increased maintenance costs in the crushing and grinding circuit, specifically the SAG mill lube and pump systems.

 Then a transition to self-mining from contract mining will continue through the year. We have assumed direct control over the subcontractors in the first quarter and this is part of a phased takeover that will end at the end of 2014. Preparation for the SAG mill changeout is well-advanced and we are on track to complete the work in the second quarter. Along with the mill, we have upsized motors and gearboxes, which will be installed. Our existing crushing system will accommodate the extra volume of material we will process as we add another 300,000 ton per year of throughput for a total of 6.8 million tonnes per year rate. Finally, we continue to advance a study of the plant expansion and expect conclusions in the final quarter of this year.

 For Nicaragua, La Libertad mine. La Libertad completed a successful quarter with production of 38,596 ounces, which was 2430 ounces better than budget. Better grade, 2.36 grams per ton versus 2.17 in the budget, contributed to better performance and better cash operating costs of $541 per ounce, $42 below budget. Jabali pit central is now delivering as per budget and for projects, La Esperanza, tailings dam is on track and near completion. So overall, we are on track to meet our annual guidance of 143,000 to 150,000 ounces at $545 to $560 per ounce.

 At El Limon Gold Mine, production from the Limon operation was 15,131 ounces, which was slightly below the budget of 15,685 ounces. Cash operating costs were $42 below budget at $624 per ounce. Overall, a good quarter. Some of the challenges that we faced included work at the process plant. As you recall, we completed a tailings tankage expansion at the end of last year, so we went through some running experiences as we geared up in the first quarter of this year. Also, we changed out a carbon reach-in using a spare that we had sourced from La Libertad mine. So overall, El Limon remains on track to produce within guidance 62,000 to 70,000 ounces at $650 to $675 per ounce.

 Finally, as previously reported in Nicaragua, B2Gold regrets to report that two fatalities occurred at the El Limon mine in two unrelated events during the quarter. The Company has thoroughly reviewed these accidents and is immediately implementing corrective measures. B2Gold remains completely committed to maintaining a safe, healthy environment for its workers and expresses its sincere condolences to the family, friends and coworkers of these employees. B2Gold has continuously improved its safety programs in Nicaragua and has demonstrated improved safety performance reducing accident frequency from four in 2012 to 1.8 for B2Gold workers in 2013 at the Limon mine. Safety programs were reviewed in 2013 and plans made to align safety management to the standards of a new corporate management system, which is a 2014 initiative. With the fatalities in mind, we have already modified and delivered our training programs to focus and highlight preventive practices in our daily operations. Thank you.

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 Clive Johnson,  B2Gold Corp. - President & CEO   [8]
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 Thanks, Dale. I'm now going to hand over to Bill Lytle, who is our Vice President and Country Manager in Namibia and Bill is going to take us through what is going on in Otjikoto. A very exciting time with construction changing on a daily basis as we move towards production later this year. Over to you, Bill.

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 Bill Lytle,  B2Gold Corp. - VP, Country Manager Namibia   [9]
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 Okay, Clive. As Mike has already said, the key takeaways, on time, on budget. We continue to move towards the goal of producing at the end of this year. Our HSE record for the quarter and actually (inaudible) excellent. No lost time accidents during that period. On the permitting side, we have received our permit now to operate the power plant in the explosive storage area. We've opened up an EIA for the Wolfshag extension. We expect to have that completed and fully permitted by the end of this year.

 In the open pit, we remain -- despite heavy rains during the last part of last year and the first part of this year, despite heavy rains, we continue to remain on budget moving 2.7 million cubic meters project to date. In the plant, the concrete work continues to go exceptionally well with more than 70% of the overall concrete needed being poured. Steel, 33% of the steel is already on site, another 33% arriving within the next 10 days. And the rest of it arriving within the next 30 days, so we have a very good start on the steel now. In the tailings facility, as previously reported, we are more than 90% complete. We are actually in the process now of doing our final QA/QC for the tailings facility and putting in the reclaim line, the tailings and reclaim line.

 Additionally, due to the fact that the construction crew completed the liner at the end of last year, we captured a good portion of the rainy season in our storm water dam and that will be used to feed the mill. So we are in very good shape there. In general, that's all I need to say I think.

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 Clive Johnson,  B2Gold Corp. - President & CEO   [10]
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 Okay, thanks, Bill. We are very pleased with the progress, obviously, at Otjikoto and the team out on site is led by George Johnson, who is our Senior VP, Operations and just to remind you for those -- many of you are aware, but just to underline the point, I think there is a reason why we are on schedule, on budget here and moving towards another successful startup. It's not our first. The team on-site, the senior supervisors and engineers on site are a team of B2Gold team that have built the Libertad facilities, the mill in Nicaragua and many of them were involved for B2Gold and briefly Kinross in building Kupol and some of them were actually involved in building the Julietta mine in Russia as well. So I think that's one of our advantages today in the industry is having our own team. We estimate that saves us perhaps 30% to 35% on capital costs, but it also gives you the A team every time and that's I think one of the reasons for the success. It's a great team of people and we hope that we can keep them together in building mines for B2Gold for a good long time to come. There's many things we have for them to do at existing operations or other opportunities. So thanks, Bill.

 Now we are going to talk about the -- sorry, over to the Kiaka project. I am going to pass it on to Dennis here, but just a reminder. This is an acquisition we did late last year taking over -- a friendly takeover of Volta Resources. Their management realized that they were going to have a difficulty moving forward to financing and build the mine in Burkino Faso, so they did the right thing for their shareholders and pursued another opportunity to realize shareholder value and so we did a friendly deal with them with a healthy premium to the shareholders. They had obviously been beaten up badly in the market, so we hope they are happy with the deal. We think it's a win-win deal as the other ones we have of this nature.

 We like the project a lot. As Tom always says and Dennis, this is an ore body that holds together very well and is imminently mineable as an open pit. Kiaka, by frame of reference, Volta on Kiaka did a prefeasibility study that was not bad. It was pretty ambitious with 12 million tonnes a year and about almost $700 million of capital producing 340,000 ounces of gold for a minimum ten-year mine life. I think the operating costs were somewhere in the mid-7s but obviously a pretty big nut to crack on the financing side. So we acquired Volta for perhaps one primary reason, I guess, or the way it should be viewed is as some optionality on gold, which is an unusual acquisition for us. But we felt the entry point for what we paid for it, $65 million worth of our shares, 3.3% dilution, it was a good asset to add to the portfolio.

 Now there may be a silver lining in this as well in the sense that we are looking and working with the Volta technical team who have now merged into our team with our group working with them to look at other cases and Dennis is going to talk to that. So the reason for the acquisition was a great entry point into a good jurisdiction, Burkino Faso. We like West Africa and it was a good opportunity to get involved in a significant project. Perhaps it needs some help from the gold price, but perhaps not as much as we may think. We will know more details soon. So with that, over to you, Dennis.

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 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [11]
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 Thanks, Clive. Our main projects this year for Kiaka, number one, is advancing the license on the property. It is under an exploration license now. We completed the permit application, which is like a feasibility study type report and we have submitted that in March. We will now move onto public consultations, things like that, to try to get the industrial permits later this year. In the meantime, we have done some drilling -- started some drilling programs on site. The first priority there was metallurgical samples. We have a new metallurgical program underway for optimization of the plant, confirmation of the old work and just to see if we can do this a little better way. And from that data, and we are working on costs and stuff right now, we are going to look at size optimization, how big should this thing really be, between 6 million and 12 million tonnes a year. So we're going to try to define which one really gives us the best economics.

 As part of that, we are doing a complete OpEx and CapEx review and we are looking at different systems and different ways of construction to try to keep the cost down and all of this will then roll into trying to complete a final feasibility by early next year. Clive.

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 Clive Johnson,  B2Gold Corp. - President & CEO   [12]
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 Thanks, Dennis. Next up is Gramalote. Dennis will talk a bit about what is happening this year. We did come out with a preliminary economic assessment in the quarter and the numbers frankly were a little better than I've been anticipating and showed a positive project with a positive IRR at $1350 gold, in that range.

 At this time, we don't feel that meets our criteria given the large capital of $1 billion. In this gold environment, we don't see moving it forward and our partner agreed on that. AngloGold agreed on that. So we are not putting the project on hold and Dennis will tell you what we are doing, but we like it, we think it's a good asset for B2Gold and we believe that part of our job is to unlock value for all of our assets. So we believe that one way or the other, Gramalote is an asset going forward if you believe that gold is still cyclical. But there are certain steps being made to optimize. We think the capital is high. Anglo is a bigger company, as we all know, so maybe there's some areas there where that can come down, but we are still doing some things to advance the project and I will pass it back to Dennis.

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 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [13]
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 Thanks, Clive. And just to note, we did put out a 43-101, preliminary economic assessment, earlier this year, so that is available to you guys out there if you want to look through the details of how we see the project today.

 Our main goals for this year are to complete and submit the environmental impact assessment and what's called the permit trabajos de hombres, in other words, the work plan that goes through that labor force. [Houses], shift schedules, all those things are included in that. We are upgrading a couple areas of that right now, one to do with social programs, the other to do with water management. So we've belayed the middle of that to a little later in the year. We are also doing infill drilling. We are focusing on the [Inferdor] at the Gramalote Ridge to try to advance some of the resources, move them up a class and then the other main focus is to advance and maintain our social programs and community relations. We are in a very -- there's communities very close to the project there and we think that's a key area to the future success of the project. (technical difficulties).

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 Clive Johnson,  B2Gold Corp. - President & CEO   [14]
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 Thanks, Dennis. Just to comment perhaps on acquisitions. We obviously have had success with our acquisitions and we are always looking. I think the sobering reality of that is when you look at many projects around the world there just aren't that many good projects at $1500 gold let alone $1300 gold, to be frank. But we continue to look at acquisitions. I think today for us to do something, we would have to find somebody that we felt was an A project and something that was accretive to us not only today, but as we move forward because I think the reason -- what I mean by that is that we see the Company should be getting a fundamental re-rating as Otjikoto gets in production and proves itself.

 I don't want to play mining analyst here, but if you go back and look at what the mining analysts have done and you look at the value that they have put on Otjikoto, B2Gold per share versus the value that they put on the Libertad, it's interesting. The Libertad value is much higher, which makes some sense, it's in production. But I would say that even with our success and our track record and what is going on at Otjikoto, this obviously remains a show-me market probably from some of the mistakes of some others, but it's a show-me market; we understand that.

 So we do think that our shares are going to get us that rerating when Otjikoto comes into production and proves itself. Therefore, looking at the next year may be the more optimal time for us to consider significant acquisitions. Having said that, opportunity doesn't always knock at the time you are ready for it, so we continue to look and to pursue opportunities.

 So just in looking forward, we are in a great position with a very strong cash position at the end of the quarter, over $180 million. We have a $200 million revolving credit facility of which we have drawn $50 million on. We are going to generate, what is it, Mike, $140 million this year? $140 million cash from operations projected for 2014. Mike is going to correct me shortly here if I've got that wrong. What that does, the combination of that access to cash and that generated cash gives us the ability to do everything we have on our plate in 2014, which, of course, the big spend is on Otjikoto, capital expenditures at the mines and all of the various other things that we need to do, G&A, etc., and still we estimate, based on our assumptions, finishing the year with a little over $100 million in cash and our cash from operations will take a pretty dramatic spike next year as Otjikoto comes online.

 And just to remind everyone, Otjikoto is expected to start up at 140,000 ounces a year at an operating cost of around $525. All-in sustaining should be less than $700. And in the first year, we going to expand Otjikoto to 2.5 million tonnes a year to 3 million tonnes a year and expenditures of about $20 million and that will take us to about 170,000 ounces a year or thereabouts. So obviously very positive this year. This year, we are building a new mine. Cash is king, so we have continued our discipline in terms of sustaining capital and things like that. On exploration, I'm going to get Tom here to talk to us about the focus of exploration this year. Unfortunately, for the exploration department, in some ways, this year is not where they would love to be. The two worst things for good exploration are I think infill drilling and combination drilling, but they doing quite a bit on that.

 This year, this is all value-added stuff. We are continuing to get exploration success around the mines and Tom's going to talk about the focus and then maybe next year we will release the hounds, as it were, in terms of exploration, looking to get some grassroots targets because we still maintain the belief that the cheapest ounces are the ones you find and we have one of the best exploration teams in the world. So Tom, over to you.

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 Tom Garagan,  B2Gold Corp. - SVP, Exploration   [15]
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 I feel like barking right off the bat. Thanks, Clive. As Clive says, the exploration focus for 2014 is almost exclusively brownfield exploration around the mine sites and around the development projects. So at Limon, we're spending $4.3 million at Limon focusing on infill drilling. The area of the mine called the Santa Pancha 2, which was a recent discovery around what we call [Posul] 5, it's an expansion of the underground at Santa Pancha towards the north. We continue to infill drill that and also expand that with the shares program.

 At Libertad, we are spending also $4.3 million. It's again on mine site stuff. It's infill drilling, future potential underground mining for Mojon. So we are infilling one of the big ore shoots underneath the Mojon pit, which is holding together very well and will hopefully get that in the mine plan by the end of the year or early next year.

 At Otjikoto, it's our largest expenditure. We are spending $8 million almost exclusively on the infill drilling of Wolfshag and the extension of it. As Dennis mentioned -- I think he mentioned; no, you didn't talk about Wolfshag -- at Wolfshag, we are currently doing a study whereby we are looking at Wolfshag and trying to determine at what boundary do you go from open pit to underground and the infill drilling that we are working on right now is on a portion of the resource that we've released, converting it to indicated and it's the portion that we think is suitable for open pit mining in today's prices.

 The underground portion of -- the remaining portion of Wolfshag still remains open. It holds together very well and we feel there is very good potential to be -- not only have an open pit mine at Wolfshag, but to go underground. So although the bulk of the drilling is infill in the open pit portion, we think what is the open pit portion, we are also extending the Wolfshag further to the south with exploration stepout drilling along the strike of it, or downplunge on it.

 At Kiaka, we are spending $3.6 million. We are drilling for- - collecting metallurgical samples at Kiaka, also doing infill on some of the inferred that falls within the Kiaka resource pit. The idea there being that currently under the models, the inferred material is being treated as waste and we are looking at infilling that to indicated to help change that.

 Also, we are redoing the geological model. There are some things we think are different in what we saw before and we feel what we're looking at now with the drilling will have a positive effect on the Kiaka orebody itself. In addition, we are doing RC drilling following up strong augur anomalies that are north of the Kiaka pit.

 At Masbate, we're spending $6.2 million largely on completing the infill drilling of the extension of the Montana discovery to the north and down a bit deeper on Montana, we are also infill drilling the south end of the Pajo Deposit, expanding that. It remained open to the south and to the north and we are infilling the southern portion of that. We have had good success with trenching in that area and we are trying to infill it with drilling at this point. That's it.

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 Clive Johnson,  B2Gold Corp. - President & CEO   [16]
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 Okay, great. Thanks, Tom. I think that's most of what we wanted to tell you. I'm sure there's some questions out there, so I'll turn it back over to the operator and see if we can answer your questions.

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Questions and Answers
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Operator   [1]
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 (Operator Instructions). Rahul Paul, Canaccord Genuity.

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 Rahul Paul,  Canaccord Genuity - Analyst   [2]
------------------------------
 Hi, everyone. At Masbate, the Montana zone added close to 200,000 ounces to reserves this year creating 1.98 [grams]. Any sense as to when you could incorporate Montana into the mine plan?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [3]
------------------------------
 Dale, do you got a sense for that? Do you want Dennis to take it or --?

------------------------------
 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [4]
------------------------------
 Yes, this is Dennis. To have it inferred to where -- and the mine plan on it is the easy part. We have some permitting issues there to do, so we don't see that coming in until later in 2015. 2015 is the target for bringing Montana into the schedule.

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [5]
------------------------------
 That's a good answer, Dennis. The mic works a whole better when the mute is off. Yes, I would say mid to late 2015 at the earliest, Rahul.

------------------------------
 Rahul Paul,  Canaccord Genuity - Analyst   [6]
------------------------------
 Okay. And then in terms of metallurgy, do you plan to do any more metallurgical tests (inaudible) there, or has it been done for the most part?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [7]
------------------------------
 Yes, we have a very intense metallurgical program going on that is sitewide for Masbate right now. We hope to finish all that up. We should be getting results back in August. We're also doing some work at site on this. We don't see -- actually Montana has very good recoveries, very high recoveries. It does have a few sulfides in it, but those do not seem to be a problem whatsoever. It's one of the (inaudible) for both grade and recovery.

------------------------------
 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [8]
------------------------------
 Overall, metallurgy, we are going to take this big met program into, and we are looking at various expansion opportunities for Masbate. We have the new SAG mill in here in June. That will all be up and running by the end of June. So what we are looking at doing is taking advantage of that machine possibly and we are just looking at how we can best use the horsepower we have just installed and the exploration success we have had and improve the economics of the project.

------------------------------
 Rahul Paul,  Canaccord Genuity - Analyst   [9]
------------------------------
 Okay, thanks for that. And then, at Kiaka, you indicated that a permitting study has been submitted based on the 6 million tonnes per annum operation. Just curious, do you plan to release a preliminary study to the market in the near future, or would you rather wait till the full feasibility is complete by the end of this year, early next year?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [10]
------------------------------
 Yes, Rahul, we are just going to -- we are right into the metallurgy now, or at least getting all the samples and getting it going and all the engineering, so, in fact, Dennis is heading back down there to work with the guys there. So we are going to release the final feasibility study the same way we did at Otjikoto. We the pre and then went into a final. So we won't do a middle stage. It will be half-baked if we do, so we are going to the final feasibility with all the work looking at all these different scales.

------------------------------
 Rahul Paul,  Canaccord Genuity - Analyst   [11]
------------------------------
 Okay, thanks, Clive. That's all that I had.

------------------------------
Operator   [12]
------------------------------
 Ovais Habib, Scotia Capital.

------------------------------
 Ovais Habib,  Scotia Capital - Analyst   [13]
------------------------------
 Hello, guys, thanks for taking my call. In terms of Otjikoto, you had a pretty big spend in Q1. How much is remaining for the remainder of the year and would it be lumped up in the first half or is it going to be separated during the remaining quarters?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [14]
------------------------------
 Can you get that, Mike or do you want Bill to (inaudible)?

------------------------------
 Bill Lytle,  B2Gold Corp. - VP, Country Manager Namibia   [15]
------------------------------
 Well, I think the total that we had in cash spend before VAT recoveries was about $196 million for the year, so it was about $196 million for the year, so if you take off what was spent to date, that will be the gross outflow and then we expect to get the $30 million back.

------------------------------
 Ovais Habib,  Scotia Capital - Analyst   [16]
------------------------------
 Got it.

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [17]
------------------------------
 In terms of how it breaks down over the rest of the year, do we have a sense of that?

------------------------------
 Mike Cinnamond,  B2Gold Corp. - SVP, Finance & CFO   [18]
------------------------------
 Yes, I think we had spent nearly $60 million in Q1, so we probably got another $130 million plus to spend this year less VAT of about $30 million, so give or take $100 million.

------------------------------
 Ovais Habib,  Scotia Capital - Analyst   [19]
------------------------------
 Okay, sounds good. Thanks, Mike. In terms of Libertad, now the guidance, the great guidance for Libertad is approximately 2.17 and in Q1, you guys hit around 2.36 and that was due to the high-grade material from Jabali and Santa Maria. Do we stick with the guidance or do you think that this grade could improve going forward into the remainder of the year?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [20]
------------------------------
 Yes, I would stick with guidance on this. We are in the bottom end of Crimea pit. That will probably be exhausted in four-month timeframe, so that higher grade portion at the base will be exhausted.

------------------------------
 Ovais Habib,  Scotia Capital - Analyst   [21]
------------------------------
 Okay, got it. That's it for me. Thanks a lot.

------------------------------
Operator   [22]
------------------------------
 Andrew Quail, Goldman Sachs.

------------------------------
 Andrew Quail,  Goldman Sachs - Analyst   [23]
------------------------------
 Hi, Clive and team. Thank you very much for the update and congratulations on a very strong quarter. Most of my questions have been asked. I've just got one on Masbate. Obviously, the SAG mill replacement this quarter, do we expect obviously throughput or tonnage in the second half to be more like say the fourth quarter last year and obviously grade is going to have to improve as well to hit that guidance, but can you give some sort of guidance on both improving or which one is going to improve more based on previous levels?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [24]
------------------------------
 Bill?

------------------------------
 Bill Lytle,  B2Gold Corp. - VP, Country Manager Namibia   [25]
------------------------------
 Yes, sure. Looking at the second quarter, obviously, we continue to run -- while we do the site changeover, we have engineered a [one-list] event to minimize the interruption. We still go through reduced capacity through this second quarter. The increased grade helps us somewhat, but really what we see are the higher grades that we had forecasted from running primarily oxide from Colorado, extend through the third and fourth quarter. So there's a [bolt] for grade peaking towards the end of the third quarter in our mine plan right now.

------------------------------
 Andrew Quail,  Goldman Sachs - Analyst   [26]
------------------------------
 Would that continue through to 2015 or is that sort of more like a couple of quarters that we see that?

------------------------------
 Bill Lytle,  B2Gold Corp. - VP, Country Manager Namibia   [27]
------------------------------
 A couple of quarters. I would have to run our long-range plan, which will be probably another three months before we can work all of that in. I would characterize that as more of a peak than a gradual reduction though because what we know is we'll paced Colorado Pit with one excavator.

------------------------------
 Andrew Quail,  Goldman Sachs - Analyst   [28]
------------------------------
 Okay, great. And maybe, Clive, one for you, just on Otjikoto, when you talk about that expansion, that sort of sounds like a decision that is going to be made pretty much halfway through 2015?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [29]
------------------------------
 The Otjikoto expansion?

------------------------------
 Andrew Quail,  Goldman Sachs - Analyst   [30]
------------------------------
 Yes.

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [31]
------------------------------
 The decision has been made now and I think, in fact, I know, George, some of the stuff is probably on site, but the idea is to add a pebble crusher and a couple of additional tanks and that takes you from 2.5 million to -- with a little more equipment, to 3 million tonnes, so we've made that decision. Our Board has made that decision to go ahead and do it on a cash flow. So during 2015, I think we will tighten up the timing on that. Just so everyone is clear. That is not -- 170,000 ounces a year starting in 2016 doesn't contemplate anything from Wolfshag. That is simply mining the Otjikoto main orebody faster. Because of the Wolfshag exploration success, we made that decision.

 We went to the engineers and said are we building the right sized plant and they said, well, frankly, maybe we should have built three. And they said we can do that, but it will affect our construction schedule and we said, no, we want to keep our schedule, let's do it after we start after startup. So it might happen very quickly after startup, but we will wait and see.

------------------------------
 Andrew Quail,  Goldman Sachs - Analyst   [32]
------------------------------
 And that CapEx (inaudible) first half, you are talking, maybe?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [33]
------------------------------
 Yes, I would expect so and some of it has already been ordered. So $20 million is the spend on that, so it's very small.

------------------------------
 Andrew Quail,  Goldman Sachs - Analyst   [34]
------------------------------
 Thanks very much, guys.

------------------------------
Operator   [35]
------------------------------
 Sam Crittenden, RBC Capital Markets.

------------------------------
 Sam Crittenden,  RBC Capital Markets - Analyst   [36]
------------------------------
 Thanks. Hi, everyone. Appreciate the update today. Couple questions on Masbate. You are talking about adding 300,000 tons per day to the mill capacity there, but I thought the tanks were a bit limited on the back end. Just curious how you are going to work around that and if you lose a little bit of recovery with that incremental throughput?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [37]
------------------------------
 That's per year, but --.

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [38]
------------------------------
 The increment is per year, 300,000 tonnes per year. To be frank, tankage would be the next thing that we would look at in a plant expansion there. We want to complete the run on the study for the total plant expansion before we do anything else because the tanks would have to go in the right spot, but that's what we would like to do. At that rate, 300,000 tonnes per year, that increment, I don't think we'll see much impact.

------------------------------
 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [39]
------------------------------
 Just to jump in on this, the other thing we have going for basically the rest of this year and 2015 is because we are in Colorado and we are really focusing there, it's basically all oxide and transition ores and we do not need the same retention time for those ores. They recover much better. So it's a lot less of a problem for us on the short term and it gives us time to look at this expansion study and see what tanks we really want to add on the back and long term. Because of the ore type, we feel we are in good shape on that.

------------------------------
 Sam Crittenden,  RBC Capital Markets - Analyst   [40]
------------------------------
 Okay, that's helpful.

------------------------------
 Tom Garagan,  B2Gold Corp. - SVP, Exploration   [41]
------------------------------
 In addition, Sam, we have an oxygenation project that we will be implementing this year. That should help us out a little bit.

------------------------------
 Sam Crittenden,  RBC Capital Markets - Analyst   [42]
------------------------------
 Seems like there's a trend of getting more ore and less waste. I guess maybe it's a little bit lower grade than what you would like to put through the mill, but just curious if you would consider slowing down the mine rate in the near term just to save some cash a little bit?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [43]
------------------------------
 For Colorado Pit, it was a little bit different situation and what we have is a high-grade stockpile, but I would call it closer to mid to low high grade. We will use that through the year if, everything else being equal, we still want to make our targets and manage our costs and we will make the best call as we go.

------------------------------
 Sam Crittenden,  RBC Capital Markets - Analyst   [44]
------------------------------
 Okay. And a question on Kiaka. Is 6 million tonnes per year kind of the minimum scale or have you looked at smaller scenarios than that or is that on the table?

------------------------------
 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [45]
------------------------------
 That is pretty well the bottom we would look at. You can focus on the high-grade core with that and still have a full 14-year life, so it's kind of the bottom of the range.

------------------------------
 Sam Crittenden,  RBC Capital Markets - Analyst   [46]
------------------------------
 Okay. Thanks, guys.

------------------------------
Operator   [47]
------------------------------
 Jeff Killeen, CIBC.

------------------------------
 Jeff Killeen,  CIBC World Markets - Analyst   [48]
------------------------------
 Yes, good afternoon and thanks for the time today. Just to go on with Kiaka, you had mentioned, Clive, that you will probably hold and just go straight to more of a full feasibility, but wondering in terms of what we will see, will there be results from the metallurgical testing released or will, at some point before the study is complete, you announce to the market a finalized scale in terms of the mining rate in these kind of particular items?

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [49]
------------------------------
 I'll pass over to Dennis, but I think the last item is metallurgy because we've had to gather some samples, so, Dennis, is that right? So we're not going to -- the metallurgical results will be the last thing we will plug into the study, which is going to be early next year. So frankly that metallurgy is the driving force, right?

------------------------------
 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [50]
------------------------------
 Yes, the metallurgy is for optimization. We won't have all the final [prior] results back from that until very close to year-end and then within a couple months after having that, we will have the full feasibility wrapped together, so I think we will go that route.

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [51]
------------------------------
 There will be some drilling results, Tom. I think you talked about in your summary about drilling brownfield again for now. Just touch on that.

------------------------------
 Tom Garagan,  B2Gold Corp. - SVP, Exploration   [52]
------------------------------
 Well, the drill results for the network, those assays will come under the metallurgy, but the other results, yes, we will start that drilling probably in another month's time, so those results would be available later in the year.

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [53]
------------------------------
 That will be the next newsflow from Kiaka.

------------------------------
 Jeff Killeen,  CIBC World Markets - Analyst   [54]
------------------------------
 Okay, great. Thanks. And then continuing with exploration, I think it was mentioned that Mojon has shown some decent continuity below the pits with the drilling and that some of that material could come into the mine plan maybe next year. Would you be thinking of potentially extending the open pit at depth or are you thinking more in terms of attacking this with an underground?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [55]
------------------------------
 I don't know that it would make sense to extend the open pit largely because you would have to do pushbacks and I think you are at the bottom of the pit, it's very easy to just go in on it that way. I don't think it would make economic sense to push the pit back to get at the stuff that is found deeper. It's only got a vertical range of about 100 meters at best. It's better suited for underground at this point.

------------------------------
 Jeff Killeen,  CIBC World Markets - Analyst   [56]
------------------------------
 Okay, great. And then just finally, it was mentioned that you had lower site contractor and service costs at Limon in the first quarter. Is that something we would expect to continue or was this more just some costs moving around quarter on quarter?

------------------------------
 Mike Cinnamond,  B2Gold Corp. - SVP, Finance & CFO   [57]
------------------------------
 Well, we have seen the trend over the last couple of quarters for lower cost and that includes the new budget this time around, but I think with the development that has just been ongoing at both of the underground operations, you will see us -- you will see that cost come back into play. So I would treat it as a single quarter event.

------------------------------
 Jeff Killeen,  CIBC World Markets - Analyst   [58]
------------------------------
 Okay, great. Thanks very much. That's all for me, guys.

------------------------------
Operator   [59]
------------------------------
 (Operator Instructions). Chris Thompson, Raymond James.

------------------------------
 Chris Thompson,  Raymond James - Analyst   [60]
------------------------------
 Hi, guys, congratulations on a good quarter. Just like to dig in a little bit on some detail relating to mill feed. So for Libertad, I think you mentioned early on that you are going to be extinguishing, or rather the Crimea pit is going to be extinguished in about four months. What should we be modeling as far as the split from Mojon, Santa Maria and Jabali on an ongoing near-term basis?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [61]
------------------------------
 (inaudible) to look through my forecasts, Chris. I can get back to you online. I will work up an email and send it to you as soon as I can here.

------------------------------
 Chris Thompson,  Raymond James - Analyst   [62]
------------------------------
 Okay, great. And thanks for that. And, Dale, just another quick question on that. Jabali Antenna, what is the status there? Do you see that entering the mine plan in the not-too-distant future?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [63]
------------------------------
 Yes, earliest would be back end of next year. That would be the earliest. Right now, the closest event on the horizon is this Mojon underground development that we are looking at closely.

------------------------------
 Chris Thompson,  Raymond James - Analyst   [64]
------------------------------
 Okay, great. And then moving onto Masbate, just looking at our model right now as far as the mill feed, what is the percentage do you see being pulled from Colorado steady-state at the moment?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [65]
------------------------------
 Typically, we like to run about 50% oxide seems to work best for us.

------------------------------
 Chris Thompson,  Raymond James - Analyst   [66]
------------------------------
 Okay. And the remainder being made up from the main vein and HMB East?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [67]
------------------------------
 That's correct.

------------------------------
 Chris Thompson,  Raymond James - Analyst   [68]
------------------------------
 All right. What sort of stockpile are you layering into your mill feed, if any, at the moment?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [69]
------------------------------
 We are not running anything from our stockpile at the mill feed at the moment.

------------------------------
 Chris Thompson,  Raymond James - Analyst   [70]
------------------------------
 Right. Okay. Guys, congratulations again on a good quarter. Thank you.

------------------------------
Operator   [71]
------------------------------
 Joe Fazzini, Dundee Capital Markets.

------------------------------
 Joe Fazzini,  Dundee Capital Markets - Analyst   [72]
------------------------------
 Hey, guys, thanks for taking the time to take our calls. Just two quick questions. The first one is can you just remind us how big your low-grade and high-grade stockpiles are at Masbate?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [73]
------------------------------
 Not off the top of my head, but I can certainly get those numbers for you.

------------------------------
 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [74]
------------------------------
 Dale, this is Dennis. At the end of April, our high-grade stockpile was in the neighborhood of 600,000 tonnes and our low-grade stockpile was in the order of 20 million tonnes.

------------------------------
 Joe Fazzini,  Dundee Capital Markets - Analyst   [75]
------------------------------
 20 million. What's the average grade of those stockpiles?

------------------------------
 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [76]
------------------------------
 The low-grade pile is 0.54, I believe. Dale, jump in if that's not right. And the high-grade pile is closer to a gram.

------------------------------
 Joe Fazzini,  Dundee Capital Markets - Analyst   [77]
------------------------------
 Terrific.

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [78]
------------------------------
 Yes, sounds about right.

------------------------------
 Joe Fazzini,  Dundee Capital Markets - Analyst   [79]
------------------------------
 Okay, and just the other question, with respect to the changeover in terms of the mining contract, you guys are bringing that in-house. Can you just clarify for us how the equipment leasing is going to be treated? It seems that previously you guys had leased the equipment and it was set up as a lease, but going forward you guys mentioned that you are looking to buy out that equipment. Is that going to equate into a $17 million cash outflow in the second or third quarter, or is that going to happen slowly over time, or is there still going to be lease terms on that equipment going forward?

------------------------------
 Dale Craig,  B2Gold Corp. - VP, Operations   [80]
------------------------------
 That will be converted into a lease term almost immediately.

------------------------------
 Joe Fazzini,  Dundee Capital Markets - Analyst   [81]
------------------------------
 Okay.

------------------------------
 Mike Cinnamond,  B2Gold Corp. - SVP, Finance & CFO   [82]
------------------------------
 We are looking at that right now. We think we can probably flip it over conterminously with the buyout. We will replace it with a new finance lease for the third party.

------------------------------
 Joe Fazzini,  Dundee Capital Markets - Analyst   [83]
------------------------------
 Okay. Any sense of terms? Is it going to be like five years or three years or --?

------------------------------
 Mike Cinnamond,  B2Gold Corp. - SVP, Finance & CFO   [84]
------------------------------
 We are still looking at the expected life. It's more likely to be around three to four years and say roughly 4% to 5%.

------------------------------
 Joe Fazzini,  Dundee Capital Markets - Analyst   [85]
------------------------------
 Perfect. Okay, that's it for me, guys. Thanks so much.

------------------------------
 Dennis Stansbury,  B2Gold Corp. - SVP, Production & Development   [86]
------------------------------
 3%, we're still negotiating. Okay, thanks.

------------------------------
Operator   [87]
------------------------------
 (Operator Instructions). Ovais Habib, Scotia Capital.

------------------------------
 Ovais Habib,  Scotia Capital - Analyst   [88]
------------------------------
 Hi, guys. Just one more quick question on Otjikoto in terms of the Wolfshag. Now you said you guys were going to be spending about $8 million this year on exploration, mostly infill drilling on Wolfshag. Are we going to be seeing any results throughout the year or are we going to get a straight resource update and just incorporated in that?

------------------------------
 Tom Garagan,  B2Gold Corp. - SVP, Exploration   [89]
------------------------------
 Yes, I think we'll put out some results. Just bear in mind that largely infill will have some stepout holes down south and I think we might wait for some of those stepout holes to come in so that we have more than just infill to put out there.

------------------------------
 Ovais Habib,  Scotia Capital - Analyst   [90]
------------------------------
 Okay. Sounds good. That's it for me. Thanks.

------------------------------
Operator   [91]
------------------------------
 Thank you. Mr. Johnson, we have no further questions at this time.

------------------------------
 Clive Johnson,  B2Gold Corp. - President & CEO   [92]
------------------------------
 Okay, thanks for your time, everyone. To our shareholders, thank you for your support. To the analysts, I know we are doing some mine micromanaging, I know that's part of the job, but that's okay, but don't forget to start sharpening your pencils or warming up your laptops for the re-rating that you are all going to give us as Otjikoto proves itself. So you want to get a headstart on that. All right, thanks, everyone.

------------------------------
Operator   [93]
------------------------------
 Thank you. This conference call has now ended. Please disconnect your lines at this time and we thank everyone for participating.




------------------------------
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