Vancouver, British-Columbia-based gold producer B2Gold Corp. has announced its fourth quarter gold production jumped to 38,808 ounces, compared 37,000 ounces a year ago, prompting the Canadian miner to forecast higher output for 2012.

B2Gold Corp., which operates two mines in Nicaragua, said its full-year gold production in 2011 increased by 32 per cent to 144,604 ounces, versus the previous year's 109,000 ounces. Improved mill throughput and gold recoveries, most specially at its Limon Mine, contributed to the favorable production results of B2Gold Corp.

For 2012, B2Gold Corp. forecasts to produce 150,000 ounces to 160,000 ounces of gold from its two mines. It expects to generate $140 million in cash from operations from them.

Of the whole pie, 2011 total production from La Libertad registered at 99,567 ounces of gold, exceeding 2011 guidance. In the fourth quarter alone, the mine produced 26,158 ounces of gold.

The Limon open pit and underground mine recorded its most successful year in the past seven years by far, giving 45,037 ounces of gold. Fourth quarter production was pegged at approximately 12,650 ounces of gold.

Founded in 2007, B2Gold Corp. remains in a strong financial position with approximately $100 million in cash at the end of 2011. The company is projecting cash from mining operations to generate approximately $140 million in 2012 that is based on a $1,550 average gold price. This strong financial position will enable the company to continue advancing its development and exploration projects and fund all capital requirements in 2012, while retaining a strong cash position.

B2Gold Corp. has no debt and no gold hedging. Average operating cash costs have been budgeted to be approximately 10 per cent higher in 2012 compared to 2011 mainly due to a higher strip ratio at La Libertad and higher consumables and power costs.