BRITISH COLUMBIA

B2Gold posts lower 3Q net income despite record production

11/14/2013 04:27 EST | Updated 01/23/2014 06:56 EST
VANCOUVER - B2Gold Corp. (TSX:BTO) says it posted record gold production and higher revenues, but lower net income during the third quarter as it makes spending changes due to lower gold prices.

The company says net income was $7.9 million, or a penny a share, compared with $14.5 million, or four cents a share, in the same period of 2012.

Adjusted net income was $12.4 million, two cents a share, compared with $19.7 million, five cents a share, in the year ago quarter.

B2Gold says adjusted net income was lower mainly due to higher general and administrative costs, an increase in realized derivative losses, and higher interest expenses and income taxes.

The company reports gold revenue of $128.7 million, an increase of $61.7 million from a year ago. It included a non-cash amount of $9.4 million related to the amortization of deferred revenue. Sales came in at 93,429 ounces.

Production was a record 98,992 ounces, an increase of 135 per cent over the third quarter of 2012.

”In light of the recent significant decline in gold price, the company has modified its capital and exploration expenditures program for the remainder of 2013, and 2014,” said president and CEO Clive T. Johnson.

”The company continues to prioritize maximizing strong operating and financial performance, controlling costs, while remaining focused on developing its growth projects, funding them partly from cash from operations and keeping debt at manageable levels.”

B2Gold says it’s operations in the Philippines were unaffected by last week’s typhoon. It also has operations in Nicaragua, Namibia and Colombia.