B2Gold Corp (NYSEMKT:BTG) hit a new 52-week high of $3.09 a share, after reporting record gold production and revenue for the second quarter and first half of the year. The company says its consolidated gold production in the quarter stood at 135,242 ounces, an 11% increase from the same period last year.
Record Revenue and Production
The same allowed the company to post record gold revenue of $164.8 million. A 21% increase in gold revenue according to the company was down to a 14% growth in gold sales volume. Gold prices in the period were also up by 6%, helping support better than expected revenue. Consolidate revenue for the first half of the year stood at $309.1 million compared to $275.4 million posted the same period last year.
B2Gold has attributed the record production to strong operational performance at its Masbate mine in the Philippines. Production at the mine alone stood at 57,188 ounces, 27% above budget. Production at the Otjikoto met expectations, despite a slope failure on the Phase 1 pit in April.
Full Year Outlook
Given the impressive production in the quarter, B2Gold says it is on course to meet its 2016 annual guidance of 510,000 to 550,000 ounces of gold production. Higher forecast grade at the Otijikoto, Libertad, and Limon Mines are expected to steer the company to record production levels for the full year. B2Gold also expects its cash operating costs for the year to range between $560 and $595 an ounce, against last year’s $616 an ounce, which should lead to more profitability.
Meanwhile, Arena Minerals Inc. alleges that it has received a notification from B2Gold stating it won’t fulfill its commitment at the Cerro Barco and Pampa Patience properties. Consequently, B2Gold Corp (NYSEMKT:BTG) is to issue $1.5 million worth of its shares to Arena. It is also to make a payment of $241,000. All payments are to be made before July 26, 2016