TORONTO (miningweekly.com) – TSX-quoted B2Gold on Tuesday reported a 138% increase in year-on-year gold output during the fourth quarter ended December 31, saying that full-year production was boosted by a new quarterly output record of about 105 577 oz of gold.

Gold output from the Masbate mine, in the Philippines, which it last year acquired through the C$1.1-billion takeover of CGA Mining, accounted for 106% of the increase, and gold production from the company's La Libertad and Limon mines, in Nicaragua, increased by 32% over the fourth quarter in 2012.

The Vancouver-based firm said fourth-quarter revenue swelled by 95% to $138-million from last year's $70.8-million, lifted by the company selling 106 185 oz of gold at an average price of $1 300/oz, compared with sales of 41 627 oz at an average price of $1 700/oz a year earlier.

On a consolidated basis, B2Gold produced 366 000 oz of the yellow metal in 2013, which was at the low end of its guidance of between 360 000 oz and 380 000 oz.

Full-year cash costs were not disclosed. However, B2Gold has indicated that operating cash costs for 2013 were expected to be at the lower end of its guidance of between $675/oz and $690/oz.

B2Gold revealed that it expected another record year for gold production in 2014. Company-wide output was expected to range between 395 000 oz and 420 000 oz of gold, an increase of 8% to 15% over 2013’s attributable production.

The expected consolidated operating cash cost guidance of $667/oz to $695/oz for 2014 was marginally lower from the previous guidance of $680/oz to $705/oz.

NAMIBIAN DEVELOPMENT

B2Gold said that construction at its $244-million openpit Otjikoto mine, in Namibia, remained on time and on budget.

Construction was expected to be complete and production was scheduled to start in the fourth quarter.

During the first five years of its twelve-year mine life, the Otjikoto mine was expected to produce about 141 000 oz/y of gold, at an average cash operating cost of $524/oz.

An initial resource for the Wolfshag zone, located next to the Otjikoto openpit was scheduled for release in the first quarter.

The deposit had previously returned assays suggesting potential for an increase in grade and output at the mine, compared with the January 2013 definitive feasibility study.

B2Gold announced that it intended to expand mill throughput at Otjikoto to three-million tonnes a year, up from 2.5-million tonnes a year, for a total cost of $15-million. The company expected the mill expansion to be complete by the end of 2015, which could boost production to about 170 000 oz/y of gold in 2016, excluding the impact of Wolfshag.

“In our view, B2Gold’s positive fourth-quarter production results reaffirm the company’s strong operating track record. The positive development read-through for the Wolfshag zone confirms our view that Wolfshag could have a positive impact on Otjikoto’s economics (as assumed in our forecasts), given its above-average grade compared with current resources,” Desjardins Capital Markets mining analyst Adam Melnyk said in a note to clients.

From the start of the month, B2Gold’s TSX-listed shares had risen 19.38%, and on Tuesday closed up 0.74% at C$2.73 a share.