B2GOLD CORP
For the period ended Dec 31, 2023. Filed Mar 15, 2024.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2023 · Filed Mar 15, 2024
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Contents
EX-99.2 · Fair values
Fair values
The Company’s financial assets and liabilities are classified based on the lowest level of input significant to the fair value measurement based on the fair value hierarchy:
Level 1 – quoted prices in active markets for identical assets or liabilities;
Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 – inputs for the asset or liability that are not based on observable market data.
As at December 31, 2023, the Company’s financial assets and liabilities measured at fair value are categorized as follows:
| As at December 31, 2023 · As at December 31, 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Level 1 · Level 2 · Level 3 · Level 1 · Level 2 · Level 3 | ||||||||
| $ · $ · $ · $ · $ · $ | ||||||||
| Long-term investments (Note 9) | 86,007 | — | — | 31,865 | — | — | ||
| Fuel derivative contracts (Note 17) | — | 481 | — | — | 5,009 | — | ||
| Gold stream obligation (Note 6 and Note 18) | (139,600) | — | ||||||
The Company’s long-term investments consist of shares of publicly traded mining companies. The fair values of these were determined using market quotes from an active market for each investment.
The fair value of the Company's fuel derivative contracts was determined using prevailing market rates for instruments with similar characteristics.
B2GOLD CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023 and 2022
(All tabular amounts are in thousands of United States dollars unless otherwise stated)
The fair value of the gold stream was calculated based on an income approach and a discounted cash flow model. The calculated fair value includes significant assumptions that are based on observable market data, including forward gold price curves and credit adjusted risk-free rates. The fair value also includes significant assumptions that are not based on observable market data, including the timing of future gold deliveries which are based on the future production levels of the Goose Project. The valuation has been prepared by an independent valuations specialist with direct oversight from the Company. Gold production is assumed to begin in the first quarter of 2025. Forward gold price estimates ranged from $2,183 to $3,264 per ounce. A $100 per ounce change in the gold forward price would have approximately a $6 million impact on the fair value of the gold stream obligation at December 31, 2023. A 50 basis point change in the credit adjusted risk-free rate would also have approximately a $4 million impact on the fair value of the gold stream obligation at December 31, 2023.
The fair value of the Company's long-term debt also approximates its carrying value as it has a floating interest rate and the Company's credit spread has remained approximately consistent. The fair value of the Company's other financial instruments approximate their carrying value due to their short-term nature.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.