Q1 2022 B2Gold Corp Earnings Call

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Speaker 2: Good afternoon. My name is annaus and I'll be your conference separator today at this. jo D like to welcome everyone to the be two gol: first quarter 20: 20 two financial results- conference call.

Speaker 2: All line of in, Please. I M here to prevent any background noise. After this speaker's remarks will be a question-and-answer session. 'should like to ask a question during this time. Since reress started at the number one on your telephone key, P'd like to loory your question please, for started at the number two Thank you, MR Johnson. You may begin your conference.

Speaker 11: And less, not here.

Speaker 7: Welcome everyone to the conference call today the.

Speaker 12: oper simply will talk about the first quarter results.

Speaker 13: 2022 the newusuals we put out is quite inclusive. We've better going to be a little summary of some of the highest about, update you in a few things and then we're open a quick for year for.

Speaker 14: For your questions. We're pleased with the quarter. We had a significant speenimen but versus our budget on operating costs, all susting cost and earnings cash low. So very good court, and we can talk to little bit more about what that means in the context of going forward. But we're very pleased with that. Once again, I think so many, if you realize the challenges that are the industry facing in terms of some hoc, you know, inflationary pressures et cetera. So we'll continue to remain committed to doing our thingin and then focusing on where we can, acorting the full impact of highercosts, where we can and can talk about that little little more.

Speaker 15: In terms of the focus on is he continue to be a profitable, responsible coal miners are go for the to go for. They're externordly strong financial position, as you know, with a tremendous cash balance, virtually no deoubt and beingay the highest dividend. two marriages came out today with, even with their bonus dividend, there's still behind us, I think, cour three pointy percent yield today and which is highest in the of the school producers. But we're also very committed to continue to grow the company. So we want to find the balance between dividending, rewarding our shoulders for for our great performance and their support, but also being able to continue to grow the company. We have great access to to cash through six the facility R anics that has the ability to go to 800 night complete this time. Just quickly looking forward, some road priorities P not to make. The priorities in terms of growth are: we're closing on the feasibility study ats.

Speaker 16: At gravel logic and we've talked about that's point to detail in the news release.

Speaker 17: And ana conress little focus for us that you've seen where now we able to talk about the new resource in anac onda not only in the separate from startingto get. Some re UL as Mo in the Sul fias just 20 conress away for the ficult. So we our low B of each of that and that we have the potential for we think depending on expiration results as they achieve to be what we've seen and it gets lar potential to build the second mill up and have a com. So become compleflx could submific go pro two mills and the notudes bill touch on that do a little more color on that the expressation always been a a part of our world in the part of great success. For since we started this company in zero 15 years agoand. We have very exciting opportun not only around the exist BU we've a great success turnuring inferred to indicate finding new reserves but also ll new targets in ition to exing arg isting our proctress. We had a great success drack record success of expiration of existing properties. We all we're still very glo inourview our belief that the cheieper stes been one five So we have some exciting expiration projects and proudgetiveof for bud of 60 five This year about 60're six would be up PR to those expiration of the rest of system of against sugression targets. So so excited results came up today from Iran our partner and the operator we we've been doing the jo and.

Speaker 13: I think the guys who be V questions on that's se. The exptricion group is pretty excited about early days. We're excitedcited about the potential, given the discovery that they've made and given are not only proximity being right on the bounding, but the kind of resutswere starting to see is how much re se to come there and we're reallying in the interesting places that spect understand and and other's always looking for new, new discoveries.

Speaker 18: The Ebe front. We will continue to look. We've looked at the company quite seriously in the recent time but haven't been able to reach an agreement.

Speaker 13: So we continue to look I think time is on our side in the sense of looking at getting the realcity study of the seeing. A efs ago also waiting at a new focus over the next number of months. So and maybe seeing our our startck which has been unperforming seeam. The ship I start to.

Speaker 13: To come up to contined to prove.

Speaker 19: Value projects. We have our ability operthem also. We are unnotck the value of.

Speaker 13: Our growth projects and potential expression.

Speaker 11: solion okay operat we get cont to ever to get less yes.

Speaker 20: He does So.

Speaker 21: I was serious just to okay So' over right now and.

Speaker 12: And like can give, give run to the financial ressults.

Speaker 13: I want the address.

Speaker 22: Thanks glive. Good morning everyone. Just brrun briefly through the operating results and some of the key financial results that we've reported for the quarter. Firstly, on the revenue side: revenue 366 million and that reflects the sale of 195 thousand anounces.

Speaker 23: At an average relates price of thousandeight en hundred and 70 tfour dollars. perwn So.

Speaker 23: High gold price during the quarter and sales were about 7000 ounis higher than budget, which really mirrors the higher production that we saw in the quarter and budget.

Speaker 24: Thinking of production. The total consolid production, including our share of calivers' results, was twoune and mke. clo announces.

Speaker 25: And we saw a higher than budgeted production at each of our three mines. The goal was under 2000 nounes, through just 1000, slightly above budget. And slightly about budget now, as mainly due to higher than budgeted process grade and offset by lower than budgeted process tons.

Speaker 26: And the process tons were low as a result of reduction in the fab ate processed.

Speaker 27: And that not gives us a precautionary imagine to protect ourselves against some of the potential supply chain problems that we saw rising in moi for eqwa sanctions earlier in the quarter. We prioritizede the processing a higher thresholdor greatade higher grade threshold in the period to reduce reagent consumption.

Speaker 28: And.

Speaker 23: That was a temporary measure- I would say the sanction- to continue there, but our supply chain was normalized and we built up regular levels of reagent and fuel at site now. So, as a result of that, soundate or was reintroduced back into the circuit at the end of February and processing as ongoing as budget.

Speaker 23: Remind you as well, for cous goal production is expected to be significantly weighted to the second half of the year, as we had guided when we put out our budgeted numbers. And that's that's because the second half is really when we reach the high grade portion of Phase X in the fo o pit and we have the new Cardinal production stream fully online. That start Cardinal planning from Cardinal started later last year. We get fully online through the course of this year.

Speaker 25: At this valy we six thousand ounces inclued, now 6000 ounes- had a budget. So quite a beat there, mainly due to higher process grade.

Speaker 29: In the period we grade, which is above budget because we Min additional unbudgeted higher grade areas within the pliant mining areas and in addition, as part, you know, as a function- of sugar halege periods, in the hoish optimizations related to the expansion of the tailings facility we did, we were able to see increased mining rate which contributed to the mining of higher than budgeted, higher grade or in the period. But that's a temporary issue, I think, as we were working on the tailings, the psf, but that's also for the 6000 ouns bet in the.

Speaker 23: periodand o jako 35 thousand monouns is 2000 monouns over budget. That's really. It's kind of the same story. For which could you do? This's usually slightly had of all factors, greatade.

Speaker 25: Recoveries and Min door. And again, ojakota wid is scheduled to be weighted to the second half of the year year, like for cola, and that's because that's when we get to the higher grade portion, Phase 3, the chakoa peit, and also in the second half of the year one that will shake on the realil line really wramps up.

Speaker 9: Kids talk a bit about costs related to that production. So this I'm talking here in cash costs, that these are all on a per produced basis. So consolidated cash costs for the Q or $699, that was almost $100, $94 less than budget.

Speaker 28: And that's primarily a function of lower than stripping in some areas lower than budgeted fueled for cola and.

Speaker 30: Then higher. That was partially offset by higher-than budgeted fuel coste-s. that, MS baddian o djako. So I'll touch in each of those now individually.

Speaker 26: So the coal of six and $24 perounps produced, that's 157 lower than budget.

Speaker 25: And that's a primarily l function of slightly higher than budget production as I mentioned before and then lower. The budgeted mining processing and site general costs and those costs were.

Speaker 23: Lower than budget, largely due to lower the budget of fuel prices realized in the period. And just just remind everyone- and I think we've talked about in previous calls in moli- that fuel prices are set in advance by the state and therefore youruro is going to have some timing delay between cost that you might see in the broader fuel market and at the pump and then what we realized in that site.

Speaker 23: We also had lower than budget volum of fuel of consumab that we utilizede in the period because we processed- we mind in processed lower overall tons and budgeted and mmind tons were lower than B budgeted due to again, a temporary change in mine sequencing to accommodate that time for change of that or like processing.

Speaker 23: Reminder to everyone as well: in the power sideite, the solar plantif for coal which we got up and running last year is running very nicely and actually over 20% of the power that we generated in the first quarter of 2022 was solar, So that's been a great, great investment. I think it's for a current operations and as we look forward.

Speaker 25: Ms batty cash cost runs reduced $710. prounsthat was 50 on to $50 peroundouns lower than budget and that was really again result of higher than budget production partially offset by higher than budget mining and processing costs which.

Speaker 31: Again we're driven by a little bit higher than budgeted diesel inonesature for cost that miss iding for the period.

Speaker 23: The o jakoto cash crst forurns roduced $770. Stop $35 less on budget, fledly the lower out of budget and again a result of higher the budget production on budgeted.

Speaker 25: Our operating costs were pretty much in line with budget and those operating costsly saw some increase in fuel prices but that was offset by a weaker than the million dollars. If you might recall, last year we actually we saw in maybe dollar strengthen So that actually it increased our costs likely. This period so far we've seen the dollar week- we budgeted at 14 and a half and the maybe dollars- U's dollar- for the period and saw come in somewhere over 15. So probably a benefit the two of a couple million bucks in foreign exchange G.

Speaker 7: That briefly and all in it's really same starts of cash costs So consolidated at all in since paining costs includving our co wards, that $1.036 thousand per sold. nowthat was $318 overall lower than budget and so it's a function of those almost $100 last on the cash operating cost site and then also higher the budget go out, the sold I mentioned earlier and lower sustaining CapEx. During the period we were 33 million lower than budget on the CapEx sideite and that part of that came from the tem ary change in sequencing at fo CAL. So we low stripping in the period. We also had some lower stripping costs at but you co to in the period. And then just to timing of some fleet purchases and rebuals, she pill. Those together were 33 million lower than budget for the period. But we think these are timing issues and we expect to see those for first later in the year.

Speaker 9: There's just a couple of comments on guidance. So firstly, just reminds everyone mentioning right on this call we are awaited pretty substantially: 40% in the first half, 60% second half.