Q3 2023 B2Gold Corp Earnings Call

Operator 2: Thank you for standing by. This is the conference operator. Welcome to B2Gold Corp.'s Q3 2023 earnings results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Clive Johnson, President and CEO of B2Gold Corp. Please go ahead.

Thank you for standing by this is the conference operator welcome to be to go corporations third quarter 'twenty twenty-three earnings results Conference call. As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation, there will be an opportunity for analysts to ask.

Questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing Star then zero I would now like to turn the conference over to Clive Johnson, President and CEO of B to gold. Please go ahead.

Clive Johnson: Thanks, Ayesha. Welcome everyone, as Ayesha said, to our conference call to discuss the results of Q3 2023. I want to say a few introductory words. Then I'm going to pass it on. We have in our boardroom here in Vancouver, most of our executive team, and you're going to hear from me, and then Mike, our Senior CFO, will walk us through the financial results for the quarter. Then Bill Lytle, COO, will walk us through a brief update on projects around the mines, but also on the development projects, what we're doing, and how Goose update and also at Back River, and also talk about the way forward and potential for valley expansion, and give you a good update on that. Many of you have seen the results, of course, through the news release and filing that was done yesterday.

Thanks, Jason.

Welcome everyone.

To us it is Asia.

So to our conference call to discuss the results of two quarter.

2023.

To say a few introductory words and then over the past at all.

And on boarded here, but most.

Most of our executive team and you're going to hear from me Mike.

Mike will walk us through.

Some of our CFO, who will walk us through.

For the quarter.

Oh sure.

Ill will walk us through an update on the <unk>.

Okay.

Sure on the buys but also on the development projects, what we're doing is.

Bruce update also a doctor and also talk about the way forward.

Potential for Bally expansion or give you a good update on that.

You will see the results of course.

The installation file as it was said yesterday, we were pleased with the results for the third quarter.

Clive Johnson: We're pleased with the results for Q3. We had another solid quarter with some good costs, and another well-run quarter by our extremely good operating teams on all of the sites. Mike will take you through some of that. As importantly as the results for Q3 are, I think we're feeling very comfortable about being on track for our guidance for 2023. We'll update you on that and tell you why. Obviously, we're looking for Fekola with the schedules for a good quarter coming up in Q4. We'll talk more in detail about that. In terms of where we are and then our focus, a little bit of talk about looking forward a bit and some strategy.

We had another solid quarter.

So good some good costs.

And the ones that are well run and clarify our sterling.

Good operating teams who are booked on the.

All of those sites are Michael will take you through some of that but just as importantly, as our results for the quarter are I think we're feeling very comfortable about the lot tracks.

Our guidance.

For 2023, so we'll update you on that and tell you why obviously working for us of course.

Scheduled for a good quarter coming up in the fourth quarter, we'll talk more.

Can you talk about that.

In terms of where we are and our focus.

Focus so I'll talk about looking forward a bit and some.

Our strategy.

Clive Johnson: Where the key point, as always, is to continue to be a responsible miner and optimize the gold production from our existing mines, to continue our great work that we do on the ESG front in so many different places. Obviously, the focus now going forward on the development side is Goose, which you will hear more about, going extremely well, the construction at Goose. We are on schedule, on track, expecting first gold production in Q1 2025, as we will hear more from Bill. That is going extremely well. We are very pleased with that. We have also had quite a bit of exploration drilling going on up at Goose and some at George. They are starting to get assay results back.

Oh wait is always just shouldn't continue to be irresponsible.

Right off the vegetable production from our existing mines.

When you are in the works on the ESG front. So many different places obviously the focus now going forward.

Besides this the goose, which you'll hear more about going extremely well the construction.

And.

We're on schedule on track, that's expecting first called back to the first quarter of 2025.

We'll hear from bill, but that's going extremely well when they place without also have quite a bit of exploration.

Charlie going on.

So George they're starting to get actually rolls back hours, where we're pleased with what we're seeing.

Clive Johnson: We're pleased with what we're seeing, both in looking at some of the infill drilling we're doing, but also some of the step outs, looking to see if the potential is for more mineralization beyond what had been drilled by Sabina. Remember, they have a very small exploration budget, which is appropriate for a single-asset company trying to finance and build a mine. We'll have a news release out next week, update on the Goose drill results for you next week. We're feeling quite excited about that. We're also, of course, in going forward, looking at the alternatives and the timing to potentially expand Fekola by production, by trucking ore from the north. Also there was some talk about maybe one day down the road building a second mill to further increase production from the Fekola complex. We've been waiting for a permit from the government.

Both have been looking at.

So let's see.

Infill drilling we're doing but also some of the step outs looking to see is some potential as well.

Well, maybe I'll have Jason beyond what are controlled by us.

Remember they have very small exploration budget, which is appropriate for a single asset company trying to.

Right.

What was that.

This release of next week's update.

This drove those for you next week.

I'm quite excited about that.

We're also of course going forward looking at the alternatives and timing to potentially expand Chaco by.

By production by truck more from the North.

Also there was some talk about maybe wasn't it on road building up a second bill to further.

Increased production from neutral cooler complex, we've had some we've been waiting for permits from the government. The government is everyone's probably aware has come out with the new mining code. We're looking how that works and go below where they were.

Clive Johnson: The government, as everyone is probably aware, has come out with a new mining code. We're looking how that works, and Bill and Randall's here as well, to walk us through some of what we're expecting there. We're looking for meetings with the government in the near term to try and discuss the implementation of the new code and how that might look for terms of expansion, and talk about everything we're doing down there with the government. We're looking forward to having a positive result there. We have heard repeatedly from the government, including recently, the government's ongoing commitment to gold mining and foreign investment of gold mining, and we definitely had some nice compliments recently about the way B2Gold has operated in Mali, and we're confident that we can continue to work with the government, as we always have, to find the best way forward for all stakeholders.

The railroads here as well walk us through some of what we're expecting there. We're looking for it means the government in the near term to try to discuss the implementation of the new code and how that might look for in terms of expansion and talk about everything we're doing down there with the government. So we're looking forward to having a positive result, there we do have heard repeatedly from the government including me.

Actually the governments aren't willing to admit to.

Coal mining and foreign investment about buying it and we definitely had some.

Coupled with recently about the way be true gold has operated in Bali.

We're confident that we can continue to work with the government as we always have to find the best way forward for all stakeholders.

Clive Johnson: I'll talk more about that. Obviously, as you know, as exploration and M&A, looking at opportunities is always a very important thing of what we do. I would say that in the exploration point of view, we still have another significant budget for next year. I can answer some questions about that if you like. I have another significant, looking at brownfields exploration, which we've always done quite well around our mines, and also additional regional exploration, but also looking at some new opportunities over Finland. We established a new company, an exploration company in the Philippines, to look at other potential opportunities. We see the Philippines as a good place to be in the mining industry, but it's largely been unexplored for decades. We see ourselves as one of the real success stories there, and the government agrees.

I'll talk more about that obviously annoying and as you know was exploration.

M&A and looking at opportunities and as always very important thing of what we do I would say that in the exploration point of view, where we're slightly went up another significant budget for next year.

They can ask some questions about that if you'd like.

Another issue to get tougher.

Yes.

Brownfields exploration was she always doesn't quite well around very much.

There are also additional regional exploration, but also looking at some new opportunities over shipment.

We have established a new companies exploration company in the Philippines to look at other potential opportunities we see in the Philippines. So Philippines is a good place to be in the mining industry, but it's largely been explored for decades, we see ourselves as one of the real success stories here in a couple of degrees in new government. The new government has shown that they are quite open to Florida vest.

Clive Johnson: The new government has shown that they are quite open to foreign investment, including in the mining sector. We see an opportunity there. We have a 100% B2Gold-owned Philippine exploration company to look at further opportunities in the archipelago that is the Philippines. In addition to that, we will continue to look at investing in junior companies, where they have what we feel is good exploration people and good exploration prospects. We know how hard the market is in gold equities today as producers, let alone us as exploration companies. Companies like Snowline, where we're 9.9% in Vester and Marathon, et cetera. Sorry?

Are they putting in the mining sector. So we see an opportunity there. So we have a 100% to.

Beach Ball told a filipina exploration companies to look at further opportunities New York, Chicago and Houston.

And then in addition to that we will continue to look at.

In junior companies.

Where they have what we feel is a good.

The next patient people a good explanation.

Aspects, we know our at the market as a gold equities today, our solution so that allowed us an exploration company. So.

So companies like so like where we're at that point in time.

Yes sure.

Marathon etcetera.

Michael Cinnamond: Matador.

That's another Matador will just get breath of the.

Clive Johnson: Matador. We just gave Marathon a plug there. Okay. Matador, sorry. It's going to happen once in a call. We like their exploration upside and Matador, and we will be closely following along their progress. The other thing to maintain going forward is our fiscal and financial discipline, which has been shown for a long time. At the end of the day, we're in a very strong financial position, still paying an industry-leading dividend that's over 5% yield at the moment, and we're basically debt-free, so extraordinarily strong financial position and sitting on a substantial cash balance. We'll have some money to spend next year, of course, with Goose and some of the other capital expenditures we have. Our plan going forward is to maintain at all times a very strong financial position.

That of course, sorry.

Oh, yes.

So we like the exploration upside at the.

Matador had we will be close to going well there.

Yes.

The other thing to maintain going forward as our fiscal and financial discipline much nightly show up for a long time at the end of the day, where a very strong financial position still paying the industry leading.

That's sort of a 5% yield.

At the moment and we're basically debt free so extraordinarily strong cash position and sitting on a substantial cash balance. So we'll have somebody to spend next year of course with dose and so the other capital, especially behalf. So typically for us to maintain at all times and very strong.

Financial position so.

Clive Johnson: In terms of additional M&A, we've made it clear, I think, and we'll continue to, that we're not out there looking for new development projects. We're very focused on what we have. We have the Goose construction and then also work with expansion, potential expansion at Fekola and then Gramalote. We did acquire the other half of Gramalote and at the end of the day, we've never really looked at it as a project owned by one company and what size and scale should it be. We were always pushing because it was a 50 JV with Agnico Eagle to actually make it big enough for two companies. We were looking at 350,000 or 400,000 ounces a year. Now there is a higher-grade core, apparently, of the Gramalote deposit. Can we significantly reduce the capital costs and make it a better project? It was close before.

In terms of just eliminate we've made it clear I think that will continue to do that with all of that what they're looking for new development projects. We're very focused on what we have reduced construction and then also along with expansion potential especially that.

And then if you have a lot to say you know we did acquire theater house, they're watching and a deal of the day, we really looked at it.

That's a project or by one company and what size and scale should it be erroneous Christian because it was a 50 JV with Anglogold Ashanti.

To actually make it big enough for two companies. So we were looking at 354000 ounces of years now there is a there's a higher grade core apparel.

What's your deposit can significantly reduce the capital costs.

A better project it was close before.

Clive Johnson: Can we make it an economically attractive project to move forward to with us doing it our way and building something maybe that can produce 200,000 or 250,000 ounces a year with significantly lower capital costs? We're kind of between but add with others, we'll do a study next year, probably a PEA, and come out and see. That's obviously down the road, but we do think that Antioquia is a good place to be in Colombia, and there's lots of local support, government, and local citizens, and even the federal government has signaled that they want some gold mining to go ahead in the country of Colombia. I think with that, I'll pass it on to Mike to give you some more details on the results.

Can we basically economically trucks approach to afford to wait with us doing it our way and building something maybe that are to produce 200 or 250000 ounces a year.

It's a good bit lower capital costs. So we're kind of a tree, but out of what others will do a study next year, probably a P. Eight it's about it's C. So that's obviously down the road, but we do think that the.

T O because a good place to be in Colombia, and there's lots of local support government and local citizens.

The federal government signaled that they.

What some call it might need to go ahead.

And the country of Columbia, So I think with that.

With that I'll pass over to Mike to give.

Some more details on the results.

Michael Cinnamond: Yes, thank you, Clive. Just going to report the quarter and give you also an overview of how we see it out turning for the year and the guidance we've given for full year. Solid quarter. Starting on the revenue side, we sold 249,000 ounces at an average price of $1,920 per ounce for revenues of $478 million. I should say overall, sales were a bit higher than budget, and we're about 16,000 ounces ahead probably on the budget side where we've outgrew ourselves, and we think we'll see that all throughout. Those were sales that were sold out from opening inventory. We think for the year, we'll see us maintain that as well. We should be slightly ahead sales-wise versus production for the year.

Right.

Great. Thank you guys are.

Good report in the quarter and give you also an overview of how we see it turning for the year the guidance, we're giving for full year.

So a solid quarter starting on the revenue side, we sold 249000 ounces.

Price of $19 $20 per ounce for revenues of $478 million.

And I should say overall.

Sales were a bit higher than budget, we're about 16000 ounces I had probably on the budget side, where we felt room sales and we think we'll see that oleds without those were sales that were sold out what we can give them a treaty. We think for the year will see us between that as well. So it should be slightly had sales wise versus production.

Yeah.

Michael Cinnamond: On the production side, for Q3, total gold produced from our three operating mines, 225,000 ounces, which is just slightly 8,000 ounces less than budget, and that's the tale of some offsets, I think. On the Fekola side, Fekola was about 13,000 ounces under budget, and it was impacted really by the grade and lower ML feed grade that was going through. Fekola was hit by significant precipitation in Q3 that didn't allow us to mine some of the Phase 6 higher-grade material as quickly as we thought. It was supplemented with stockpile, lower-grade stockpile material. We are now in that Phase 6 and mining that material, and we expect that we'll more than catch up in Q4. We actually expect to beat budget for Fekola in Q4.

On the production side for the queue.

Total coal produced from our three operating mines 225000 ounces.

Which is just slightly 8000 ounces less than budget and that's that's a tale of some offsets I think on the coal side call. It was about 13000 ounces are under budget and it was impacted really by the grade and lower mill feed grade that was going through for coal was hit by significant precipitation.

The third quarter that that didn't allow us to mine some of the phase six higher grade material as quickly as we thought so it was supplemented with.

Stockpile low grade lower grade stockpile material, we do expect that we are done with the basics and running that material and we expect that wheel well more than catch up in Q4, we actually expect to beat budget for coli in Q4, so that was that a temporary rain induced to bed I think you'll see us catch up as we go.

Michael Cinnamond: That was a temporary rain-induced event, I think, that you'll see us catch up as we go through into Q4. At Masbate and Otjikoto, both of those operations are actually ahead of budget production-wise. Masbate, 51,000 ounces, 5,000 ounces ahead of budget. Otjikoto, 45,000 ounces, 2,000 ounces ahead of budget. They both benefited from grade and slightly higher mill throughput at Masbate. At Otjikoto, the better grade is definitely, at least partially, if not significantly impacted by the Wolfshag material. We're mining material from Wolfshag underground. It has an average of about 5.5 grams per ton. I think just to put it in context, I think year-to-date, we've taken or mined approximately 50,000 ounces from Wolfshag. We expect Wolfshag material, underground material, to continue to be mined at least until 2026, as we continue to look at underground potential there.

Through into Q4, I've missed that you know what you've put up both of those operations are actually ahead of budget production wise some of his Daddy $51000.

5000 ounces ahead of budget or would you call. It a 45000 ounces 2000 ounces ahead of budget and that they both benefited from a great and safe.

Higher mill throughput episodic.

So what did you go to the better grades it is definitely at least partially but significantly impacted by the war check material, we're mining material from goldstrike underground.

That's an average of about five five grams per tonne.

I think just to put it in context, I think year to date, we've taken a mine approximately 50000 ounces for Chegg and we expect we'll check material too to continue underground material continue to be minded at least until 2026.

As we can.

Continue to look at underground potential there.

Michael Cinnamond: On the cost side, taking into account those production results, overall, total cash operating costs from all of our operating mines, we were $741 per ounce produced, including our share of Calibre, $755 per ounce. Approximately $50 lower than budget. That's a good result, again, for the Q. Fekola was a little over budget. It was $688 or just under $40 an ounce higher than budget, and that's a function of the lower gold production we saw from Fekola in Q3. Like I say, a lot of that was weather driven, and we expect to see them catch up in Q4. Masbate and Otjikoto were both significantly under budget. That's been a story that's maintained as we've gone through the year, and it continues.

On the cost side that taken into account those production results.

Overall total cash operating costs from all of our operating months, we were $741 per ounce produce including me our share count was $755 per ounce, it's approximately $50 lower than budget.

That's a good result against the cube Nicola was a little over budget it was $688 or just under $40 an ounce.

Higher than budget and that's a function of the lower gold production was up from call. It in the.

And like I say that a lot of that was weather driven and we expect to see some catch up in Q4 at mid body. You know what your coda were both significantly under budget. That's been a story that's maintained as we gone through the year and it continues and that the their beats on budget or a function of more production to each site and also.

Michael Cinnamond: Their beats on budget are a function of more production at each site and also lower fuel costs, particularly of Masbate. Masbate's being both HFO and diesel, costs be approximately 20% less than budget. Otjikoto has also seen lower diesel costs, but again, because it's on the grid now, it's not impacted by HFO anymore. We don't run the mill powered, we don't use any HFO generators anymore. We take that power off the grid. Diesel did have an impact there. When we take that and we look at the all-in sustaining costs for the Q, total from all of our operating mines, $1,273 per ounce, approximately $90 less than budget. Again, that's firstly a function of the lower cash costs that we've seen, lower than budget cash costs, and higher than budgeted sales.

So lower fuel costs, particularly if its bad he was batting seeing both Egypt Eagle Crosby, approximately 20% less than budget.

Oh, you've code was also seen lower diesel costs, but again, because it's on the grid no. It's not impacted by age at all anymore. We don't we don't run the mill powered using ancient Fujairah range anymore, we take that power of the great. So diesel didn't have an impact there.

And then when we when we tape out and we looked at the all in sustaining costs.

For the Q.

Total from all of them are operating mines, 1200, and $73 pronounce approximately $90.

Less than budget and the game, that's firstly a function of the lower cash cost so it would seem lower than budget cash costs.

And higher than budgeted sales as I mentioned, we are a little bit ahead of ourselves and then all in sustaining costs are measured on per ounce sold.

Michael Cinnamond: As I mentioned, we are a little bit ahead on sales, and all-in sustaining costs are measured on grams sold. Also some lower CapEx than we thought, certainly at Masbate and Otjikoto. Some of the CapEx is lower than budgeted, and we think it'll actually be a permanent beat for the year. I think we guided for Otjikoto, we probably have a bulk stripping and somewhere in the region of $10 million that we're not going to incur through the balance of the year. From Masbate, probably somewhere in the region of $4 million for the balance of the year will be permanent beats against budget. Fekola did see some higher CapEx. We did see some higher-than-budget sustaining CapEx, really a lot of that related to fleet, either new fleet or fleet rebuilds.

And then also some some lower capex than we thought certainly miss body, though in Chicago, So some of the Capex.

It's lower than budgeted and we think it will actually be a permanent beat for the year. So I think we guided for or would you call it would be probably about.

First stripping to somewhere in the region of 10 million that we're not going to occur through the balance of the year and from his body, probably starting to reach the 4 billion for the balance of the year it will be permanent.

I guess the budget.

So call it did see some higher capex, we did see some I haven't budgeted sustaining capex really.

Lot of that related to fleet, the new fleet our fleet rebuilds.

And as we look forward.

Michael Cinnamond: As we look forward for the full year, or maybe it's just to comment then, where are we year to date? Production-wise, we're very close to budget. We're at 3,000 ounces from our mines lower than budget. Like I say, we are expecting to do some catch-up at Fekola in Q4. We're confident of meeting our budgeted guidance range for production. I should mention as well that we didn't have any Fekola regional production this Q. We had forecast that we would see a start in Fekola regional production. However, as we've mentioned on other calls, there are delays within the mining audits in Mali and the new mining code being issued, there were delays in getting new mining permits granted. We haven't been able to get Fekola regional production up and running this year.

But maybe just a comment that's where our year to date.

Production wise, we are very close to budget, where we were 3000 ounces from our mines lower than budget like I say, we are expecting to do some catch up at all in Q4. So we're confident to meet our budgeted guidance range for production.

I should mention as well that we didn't have any for polar resumed production in this Q. We had we had forecasted we would see a start in food polar reasonable production. However, as we've mentioned on other calls there are delays are with them.

Mining laws volume then you might it could be an issue there were delays in getting new mining permit.

So we haven't been able to get coal result production up and running this year and that Bill will talk a little bit more about that what the plans are for next year, but notwithstanding the fact that we didn't have for polar regional what with what we see for call. It during Q4, we still expected for all our production for the fourth bullet complex, which included regional in our original guidance we do.

Michael Cinnamond: Bill will talk a little bit more about that and what the plans are for next year. Notwithstanding the fact that we didn't have Fekola regional, with what we see Fekola doing in Q4, we still expected Fekola production for the Fekola complex, which included regional in our original guidance. We do expect that we'll be able to meet our guidance range, which was 580,610,000 ounces. On the Masbate and Otjikoto site, confident, I think, that we can maintain the beats that we've seen so far this year. Overall, we think Masbate will come in somewhere at the high end of its guidance range of 170,000 to 190,000 ounces. Otjikoto will come in in its range of 190,000 to 210,000 ounces. Overall, we reiterate our consolidated guidance for the year. No change over the whole area.

We expect that we will be able to meet our guidance range, which was 580000 and 610000 doses.

And on the MS di do you know what you've noticed I'm confident I think that we can maintain the beats that we've seen so far this year and so overall, we think there's value will come in so we're at the high end of its guidance range of 170 to 119000 ounces.

Kona will come in and its range of 190 to 210000 doses and overall, we reiterate our consolidated guidance for the year no change over the hole there.

Michael Cinnamond: When you look at the cost performance year to date, Fekola's pretty close to budget on the cash cost side year to date, and Masbate and Otjikoto are still significantly under. In the cash cost side for the full year guidance, we said we expect to be within range for Fekola, but we have re-guided costs downwards for both Masbate and Otjikoto. We haven't re-guided overall consolidated range when you blend all that through, but we have guided that we expect to come in, so we're below the low end of our consolidated guidance range for cash costs. On the all-in sustaining costs side, similar story. Otjikoto and Masbate significantly under budget year to date, so we have re-guided their all-in sustaining cost guidance down. With Fekola, as I mentioned in the Q, we saw some higher sustaining CapEx, and we've also approved some additional sustaining CapEx.

When you look at the cost performance year to date.

It's so cold is pretty close to budget on the on the cash cost side year to date and its value North Dakota are still significantly under so in the cash cost side for the full year guidance. We said, we expect to be within reach for Colette.

But we have re guided cost down downwards for both Mezz body and when Chicago, We Havent re guided overall consolidated range, but when you blend all that through but we do we have guided that we expect to commit and so were below the low end of our consolidated guidance range for cash costs.

On the all in sustaining cost side, a similar story.

Or would you call them as bad in significantly under budget year to date. So we have we got it there all in sustaining cost guidance down but.

Mr Cola as he mentioned in the Q, we saw some buyers sustaining capex and we've also improved some some additional sustaining capex. The game most significantly related to new fleet and fleet rebuild for the school of mines and some additional solar plant costs and with those.

Michael Cinnamond: Most significantly related to new fleet and fleet rebuilds for the Fekola Mine and some additional solar plant costs. With those, we see that the Fekola sustaining CapEx could be somewhere around $50 million higher for the full year than budgeted. With that in mind, we've re-guided Fekola's all-in sustaining cash cost guidance upwards for the period. When you marry that up with the re-guide down for the Masbate and Otjikoto overall, our consolidated guidance range is unchanged, we expect to come in at the low end of that guidance range. Just another commentary on the CapEx. Although we have that higher Fekola sustaining CapEx upwards, there are other Fekola non-sustaining CapEx expenditures that haven't all been incurred this year, are unlikely to be, we think they're offset.

We see the coal sustaining capex could be somewhere around $50 million higher for the full year than budgeted and so with that in mind, we re guided for.

Kohl's all in sustaining cash.

Cash costs guidance upwards for the period, but when you when you marry that up with where you guys out for the minutes that he knows he can go to overall, our consolidated guidance ranges are unchanged again and again, we expect to come in at the low end of that guidance range.

And just another comment you mean, the capex all the way up at higher for coal sustaining capex upwards.

Our other four colon non sustaining capex expenditures that haven't all been incurred this year are unlikely to be so we think they're upset and when you look at the total capex for the year that was budgeted and where we see this forecast coming about total capex, including sustaining and non sustaining for both.

Michael Cinnamond: When you look at the total CapEx for the year that was budgeted and where we see the forecast coming, that total CapEx, including sustaining and non-sustaining for both, all the mines, we think we're going to come in very close to or right on budget. There's no overall change, but there is a bit of a change between the sustaining and non-sustaining mix. The operating results, a few other comments on where we are. As I mentioned, Fekola Regional delayed until we get into next year and understand how the 2023 mining quota will be applied and get an updated study for Regional, but Bill will talk to that. Gramalote, as you saw, and as we announced last period, we did buy out the H2 AGA's half of the JV, so we now own the Gramalote project entity 100%.

All the mines, we think we're gonna come in very close to right on budget. So theres no overall change, but there is a bit of a change between the sustaining and non sustaining mix.

But to the operating results a few other comments on on where we are as I mentioned for bold original delayed until we get into next year and I understand Hum.

Our 2020, we might have thought it would be applied and get an updated study for a reasonable but ill talk to that.

Drama lots of you as you saw and as we announced last period, we did play out the second half a G as half of the JV. So we know when to grab a lot of cheap project added to the 100%.

Michael Cinnamond: That purchase was used as a measurement trigger to measure the cost that we had on the balance sheet for Gramalote. We did trigger an impairment of Gramalote for accounting purposes, non-cash impact of $112 million hit the earnings, related to that impairment. The rationale for the transaction was that we now own the Gramalote 100%, and we're now able to look, we think as a single owner, we can analyze maybe a lower scale operation, lower capital intensity, hopefully higher return. Lower production, overall higher grade operation. That's the goal. The goal is to look at that, and I think our internal goal is here is to have an internal study available with our first look at that by the end of the H1 2024. Goose, again, I think Bill, we'll leave that with Bill to give you the update with Goose.

That that purchase was used as a measure of trigger to measure the cost that we had on the balance sheet for Gameloft to you. So we did trigger an impairment a grandma lucky for accounting purposes noncash.

Impacted by $112 million at the earnings.

Related to that impairment, but the rationale for that.

The transaction was that we now want to grab a lot T, 100% and where we're now able to look we think that's a signal.

Single order, we can analyze it maybe a lower skill operation lower capital intensity higher hopefully higher return lower production, but overall I agree operation. So that's the goal. The goal is to look at that is I think our internal goal is here is to have it internal studies available with our first look at that by the SEC.

End of the first half of 2020 for us.

Goes again, I think bill will leave out with build to give you. The update that's our most exciting new projects and it's going to be big ones would be to as we go forward are still on track to bring it online first quarter 2025 year to date from a <unk> point of view, we spent 157 billion of Cashman Goose capital expenditures.

Michael Cinnamond: That's our most exciting new project. It's going to be a big one for B2 as we go forward. Still on track to bring it online Q1 2025. Year to date, from a B2 point of view, we spent $157 million in cash on Goose capital expenditures, and we started funding Goose working capital. As an Arctic operation that has limited shipping season, key to make sure that we actually get the right raw materials, our consumables up there that we need to de-risk that operation and keep it running.

And we started funding.

Goose working capital.

As our Arctic operations.

Has limited shipping season, he would make sure that we actually get the right raw materials are consumables up there that we need to derisk that operation and keep it running so.

Michael Cinnamond: Year to date in 2024, we spent just over $40 million on those inventories, and we are working on a plan to look at exactly what we think we need as we go through the next year and the next shipping season, so that when we bring Goose up and running, in early 2025, we'll have significantly de-risked it and get the material that we think we need on-site. I think we'll come up with a new estimate for that, when we get into the 2024 budgeting release. Otjikoto, just last couple comments to make. I did mention, so we've had 50,000 ounces from Wolfshag year to date. We have also disclosed that we can see the end of the Otjikoto open-pit operations coming, so there will be retrenchment of those operations in 2024, completed in 2025.

Year to date in 'twenty, where we spent just over 40 million of those inventories.

And we are working on a plan to look at exactly what we think we need as we go through the next year and the next shipping season, so that when we break those up and running.

In early 'twenty five we'll see.

Typically the Arista and get the materials that we think we need on site. So I think we'll come up with that you estimate for that when we get into the 2020 for budgeting release.

But would you go to.

Just last couple of comments to make I did mentioned so we've had 50000 ounces from Wolfgang year to date. We have also disclosed that we are we can see the end of the old Chicago open pit.

Patients come in and so there there are there won't be retrenchment those operations in 24 completed in 'twenty five and in the income statement. There was in total a charge of $12 million in the current year related to our recognition of upcoming severance costs for the Chicago operations. Those are the main.

Michael Cinnamond: In the income statement, there was in total, a charge of $12 million in the current year related to recognition of upcoming severance costs for the Otjikoto operations. Those are the main, initial charges for those severance costs. You will see some other additions to that as we go forward, but they'll really be because of passage of time and amortization purposes. The initial recognition has now occurred. Just to cover a couple of things, I think, on the income statement. I think just to highlight what the main impact that we saw other than good operating results was the Gramalote impairment, $112 million. That does, of course, get adjusted out in adjusted earnings.

Initial charges for those severance cost you will see some other additions to that as we go forward, but then they'll really be because of the passage of time whenever Playstation purposes, but those are the initial recognition of the bell curve.

So just a couple of things I think I'm.

On the income statement I think just to highlight what the main impact that we saw all of them. Good operating results was the grab lots of impairment of $112 million.

That does of course gets adjusted out in the adjusted earnings.

Michael Cinnamond: When you look at the bottom line for the year, the income attributable to shareholders of the company was $43 million, net income was our $43 million loss, or $0.03 per share EPS. If you adjust out the non-cash items, including that Gramalote impairment, adjusted income net income was $65 million, and adjusted EPS was $0.05 per share. Just on the cash flow side, cash flow from operations after working capital, $110 million for the Q, approximately $0.08 per share. As I mentioned, that did get impacted by a buildup of some consumables and inventory items at Back River to the tune of $40 million, and also a little bit more of a longer delay in getting some of the VAT tax receivables refunded.

And so when you look at the bottom line for the year income attributable to shareholders.

That was $43 million net income was $43 million loss.

Or <unk> <unk> per share EPS, but if you if you adjust out the noncash items, including that kind of a lot to your impairment.

Adjusted income was $65 million adjusted EPS was <unk> <unk> per share.

And then just on the cash flow side.

Operating cash cash flow from operations after working capital of 110 million for the queue approximately eight cents per share.

As I mentioned that that did get impacted by a buildup of some consumables inventory items that back reference to the tune of $40 million and also a little bit more of a longer delay in getting some of the VAT tax receivables refunded.

Michael Cinnamond: Financing side, nothing too significant that's new to comment on, other than we did pay a dividend, the normal, the rate that we have paid over quite a few quarters now, $0.04 per share. For the year, for the period, we end up $309 million in the bank, as Clive mentioned, so pretty much debt-free at the end of the quarter. We did draw $50 million on the line, on the revolver in early Q4, as disclosed. We do expect that we'll be drawing on that line as we go through the significant CapEx buildup for Goose through the next year. I think that really summarizes everything I wanted to comment about in the results of the operations.

Financing side nothing too significant this new to comment on all of them, we did pay dividends the normal or the rate that we have paid over quite a few quarters now four cents per share.

Uh huh.

And then for the year, we are for the period ended up $309 million in the bags, but since then some pretty much debt free at the end of the quarter, we did draw $50 million in the light.

On the revolver in early Q4 as disclosed and we do expect that we'll be drawing on that line as we go through the significant capex buildup for go through the next year.

And I think that really summarizes everything I wanted to comment about and the results of the operations.

Clive Johnson: Good. Thanks, Mike. Just maybe a note on Otjikoto. As we said, we are seeing the end of open-pit mining, but we do have some great stockpiles for the near future, and we have had some encouraging results of potentially continuing underground mining further. We will know more about that as we keep going. There is significant potential to produce beyond when the open pit. Whether it is low-grade stockpiles or whether it is low-grade stockpiles complemented by some better underground grade material. Just so people are aware of that, we could still be there for a significant amount of time, perhaps more around 100,000 ounces a year in the future than the 200,000 ounces we are at right now. We will see how that develops. With that, I will pass it over to William Lytle to

Okay.

It's Mike just maybe adult.

In Chicago, as we said, we're going to be a machine.

The mining, but we do have some low grade stockpiles from him in the future we'd had some encouraging results.

Potentially.

Underground mining further we'll know more about that as we keep the keep drawing but so theres the potential to produce beyond when they open pit.

It is whether it's a low grade stockpiles or whether it's liberty set was complemented by some other gout better clinical grade material. So just so people are aware of that because it will be there for a significant amount of time.

Perhaps where are the other tests last few years in the future that the two hundreds out spouses route right now so that we'll see how that develops.

I'll pass it over to Bill.

William Lytle: Thanks, Clive. I think a lot of the things I was going to talk about have been hinted at or even talked about a little bit. I just want to provide some more color to some of the issues, and I'll start. Operationally, Mike did a great job explaining everything. I think the key really there is to really highlight that as far as Q4, we see everything on track. We're going to have a really good quarter, in particular at Fekola, getting out the bottom of Phase 6, and at Ochoa we're going to have a big quarter as well. As Mike said, we're on track to meet our guidance. Looking at Fekola regional a little bit, I just put a little bit of history in place so everyone remembers.

Yeah. Thanks, guys.

I think a lot of the things that was going to talk about had been hinted at or even talked about a little bit I just want to provide some more color to some of the issues in the I'll start operationally, Mike did a great job of explaining everything I think I think the key really there is to is to really highlight is that we as far as Q4, we see everything on track we're going to have.

A really good quarter in particular ethical are not getting out the bottom of phase six and then don't you quota, we're going to have a big quarter as well.

So as Mike said, we're on track to meet our guidance looking at the Cola regional a little bit I, just put a little bit.

History in place so everyone remembers we originally had internally last year come out with a preliminary economic assessment and then a feasibility study, which we which we were presenting to the government when they halted us to kind of take a look at this new mining code and this new local content law, but the key thing is you need to know is that study was done and it was economic.

William Lytle: We originally had internally last year come out with a Preliminary Economic Assessment and then did a feasibility study, which we were presenting to the government when they halted us to take a look at this new mining code and this new local content law. The key thing is you need to know is that study was done and it was economic. As part of that, the government actually let us start to build all the infrastructure. The infrastructure for mining in that area is actually complete. The reason I tell you that is it's important to understand the process as we go forward. Now that they've got these laws in place, they have to create an implementation decree for both of them.

Part of that the government actually let us start to build all the infrastructure. So the infrastructure for mining in that area is actually complete and the reason I tell you that it's a it's important to understand kind of the process. As we go forward now that they've got these these are laws in place they have to create an implementation decree for both of them we were down there.

William Lytle: We were down there, I guess it was a couple of weeks ago, talking to our team down there about the local content and how does that impact what we're doing. Basically we saw a path forward on how we were going to resolve any outstanding issues on local content. Right now what we're waiting for is those implementation decrees to come out, whether it be at the end of this year or the beginning of next year, when we can sit down with the government. Assuming that those are all finalized, we will be able to quickly submit our documentation based on the new laws. If it's still economic, which we believe it will be, look at putting this into production. We probably need a quarter, 3 months, once we get our licenses and our conventions in place.

I guess it was a couple of weeks ago talking to our team down there about the local content and how does that impact what we're doing and in.

Basically we saw a path forward and how we were going to resolve any outstanding issues on local content and so right now what we're waiting for is that those implementation decrease to come out whether it be at the end of this year or the beginning of next year. When we can sit down with the government and.

Assuming that those that those are all finalized we will be able to quickly submit our documentation based on the new laws and if it's still economically if you believe it will be.

Look at putting this into production, we probably need a quarter three.

Three months once we get our licenses and are commencing some place. So what we're talking about internally is that we're talking about in the second half of the year. So if you assume kind of Q1, you do all negotiations get all your permits in place Q2, we do all of our pre stripping and finalize all of our infrastructure, we could be ready in the second half of the year to go and so that's the way we're looking at that.

William Lytle: What we're talking about internally is that we're talking about in H2. If you assume Q1, you do all the negotiations, get all your permits in place. Q2, we do all of our pre-stripping and finalize all of our infrastructure. We could be ready in H2 to go. That's the way we're looking at that for the regional stuff. As far as Goose is concerned, we did have an analyst trip up there not too long ago, and that went very well. I think we're very pleased with the work that's been done up there, and we continue to say that we remain on schedule for that. If you remember, we always talk about some key areas that had to be done. The camp was done. That opened up in early summer.

The regional stuff.

As far as goes is concerned.

We did have we had an analyst trip up there not too long ago in an area that went very well I think.

Pleased with with the work that's been done up there and we continue to say that we remain on schedule for that but if you remember we always talk about kind of some key areas that had to be done the camp was done.

That opened up in early summer, we had to get through three major buildings up that being the mill building.

William Lytle: We had to get three major buildings up, that being the mill building, the workshop and the powerhouse. All of those buildings are now stood up with the concrete. We're busy cladding them, and quite frankly, three quarters of the mill has been cladded, and we'll have that closed up here in the very near future. Much so, we've moved installation of the mill ahead of schedule. That is actually going to happen this month. The team's on site. The cranes have been installed to help us there. In regards to the construction of the mill, we're ahead of schedule. Really what remains outstanding and is on the critical path is the logistics. All the procurement for the 2024 construction season was done.

<unk> and the powerhouse all of those buildings are now stood up with a concrete we're busy cladding them and quite.

Quite frankly, we were three quarters of the mill has been clouded and we'll have that closed up here in the very near future. So much. So we've moved.

Installation of the of the mill is ahead of schedule. So that is actually going to happen this month and the teams on site.

Cranes have been installed to help us there and so that's where and then in regards to the construction of the mill. We're ahead of schedule, so really what what.

It remains outstanding is that and it is on the critical path is the logistics all the procurement for the 2024.

Construction season was done everything was shipped everything arrived at the MLA. So we're sitting there with more than 3000 containers ready to be dragged up the winter road.

William Lytle: Everything was shipped, everything arrived at Mali, so we're sitting there with more than 3,000 containers ready to be dragged up the winter road. The winter road construction team is on site now. All of the equipment has been run through as far as a maintenance check, and really now we're just waiting for cold weather. The plan really is to start in December on that, work our way through the first couple of months, and then start trucking things up the road in early February. That would give us a nice long window to the first part of May to make sure that we get everything in. We really remain on track. I guess one of the questions which has been asked a couple of times is the updated mine plan.

Winter Road.

Construction team is onsite now all of the equipment has been run through as far as the maintenance checks and really now we're just waiting for cold weather. So the plan really is to start in December on that work our way through the first couple of months and then start.

Parking things up the road in early February so that would give us a nice long window to the first part of me to make sure that we get everything yet.

So we really remain on track I guess, one of the questions, which has been asked a couple of times is the mine plan and the updated mine plan. We've always said that that's it's going to come out at the end of this year and certainly it will form part of our budget that we released for next year, but we don't see any issues. There that's going kind of as we had expected and kind of.

William Lytle: We've always said that it's going to come out at the end of this year, certainly it will form part of our budget that we release for next year. We don't see any issues there. That's going as we had expected and forecasted before. Then I guess maybe the last thing I'll talk about is Gramalote, and Mike hinted a little bit. Gramalote is a project that we've looked at a couple of times already, but we've always looked at it with a lens that it has to be bigger and it has to be within the confines of the permit that we already had.

Forecasted before and then I guess, maybe the last thing I'll talk about it is grandma locked in and Mike hinted a little bit. So grandma low T is a project that we've looked at a couple of times already but we've always looked at it with a lens that it has to be bigger than it has to be within the confines of the permit that we already had we now have.

William Lytle: We now have taken full control of this project, on 100% of it really allows us to take the blinders off or take the directional engineering off and really focus on what is the best design for this project. We're looking at a smaller project that a single company could operate, and we're really looking at consolidating some of the infrastructure into some of the basins altogether. That would allow us to cut down on some of the high capital costs of resettlement and some of the other issues of the infrastructure that had to be built. The plan really is to start in Q1 of next year, or just after the first of the year, and to have a PEA out by the middle of the year. I caution, once again, Clive always says that all PEAs are not the same.

Taken full control of this project on 100% of it and so it really allows us to take the blinders off take that take take the directional engineering off and really focus on what is the best design for this project and so we're looking at a smaller project that a single company could operate and we're really looking at consolidating some of the infrastructure.

Two into some of the basins altogether and that would allow us to cut down on some of the high capital costs of resettlement and some of the other issues of the infrastructure that had to be built so the plan really is to.

Start in Q1 of next year and just after the first year and to have a P. A.

By the middle of the year, but I caution once again quite a while he says that all <unk> are not the same. The fact that matters is we have a very good resource there of indicated material and so at the end of the day, while we'll just be putting let's be laying out the infrastructure. We can move very quickly if it was positive after that.

William Lytle: The fact of the matter is, we have a very good resource there of indicated material. So at the end of the day, while we'll just be laying out the infrastructure, we can move very quickly if it was positive after that. Clive, anything else you'd like me to talk about?

Okay, and anything else you'd like me to talk about.

Clive Johnson: No, I think that's a good update. Bill, I think with that, we'll open it up to questions. Okay.

No I think that's true.

Good uptake.

So I think that will.

Open up to two questions.

Great.

Operator 2: Thank you. We will now begin the analyst question and answer session. The first question comes from Ovais Habib with Scotiabank. Please go ahead.

Thank you we will now.

I'll begin the analyst question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you'll hear at Cowen acknowledging your request.

Youre using a speakerphone please pick up your handset before pressing any Keith can withdraw your question. Please press Star then two.

Our first question comes from obeys Habib Scotiabank. Please go ahead.

Ovais Habib: Thanks, operator. Hi, Clive and B2Gold team. Congrats on a good quarter. This is despite the rain season in West Africa, and great to see the development of Goose is progressing well. Actually, also great to see costs coming in below guidance as well. Just a couple of questions from me. My first question is regarding the new mining code in Mali. From what I understand, once the decree has been provided to B2Gold then applies for the permit or the exploitation permit, and then moves forward with some sort of a trucking option. Negotiation that you're having with the Malian government right now, does that impact how you're looking at the standalone operation as well? Can you provide a little bit more color on that?

Thank you operator.

BDO team.

Congrats on a good quarter.

Again this is despite the rainy season in West Africa.

And great to see the development of Goose.

Well.

Actually also great to see costs coming in below guidance as much. So just a couple of questions on me from me.

My first question is regarding the new mining code in Mali.

From what I from what I understand once the decree has been provided.

B to B to then apply for the for the permit or the exploitation permit.

And then kind of move forward with.

Some sort of a trucking option does that.

Negotiations that you're having with the with the Malaysian government right now does that.

You know impact how youre looking at the Standalone operation is one.

Can you provide a little bit more color on that.

Clive Johnson: Just take that, Bill.

Stick to that so I'll have to take it of course the base I mean everything has to be on the table now well you know certainly the new twenty-three code does apply to anything regional and quite frankly without the degree we can't really say, which way we're going to go but we have to look at both of them within the lens of the new decree for sure.

William Lytle: Yeah. I'll happily take it. Of course, Ovais, everything has to be on the table now. Certainly, the new 2023 code does apply to anything regional, and quite frankly, without the decree, we can't really say which way we're going to go. We have to look at both of them within the lens of the new decree, for sure.

Ovais Habib: What I'm trying to ask, Bill, is if you do get the decree, and you do go forward with the trucking option, is there a chance that that negotiation could continue, and then you get a better understanding and better economics for the standalone mill, or is that set in stone once you get the decree for, let's say, the initial start of Anaconda?

And what I'm trying to ask Bill is is if if you do get the decree I mean, you go do go forward with that.

Trucking option.

Is there a chance that that negotiation could continue and and then you get a better kind of understanding and better economics for the Standalone mill or is that kind of set in stone. Once you get the degree for let's say the initial start of Anaconda.

William Lytle: Yeah. I think conceptually what you're saying is right, but we just don't know at this point, right? The decree hasn't come out, we haven't had the discussion sit down with the government. Clive, he hinted at it, but when we were down there just recently talking about local content, we did meet with the Minister of Mines, and the one thing he did say is he likes what B2Gold does, and they do want mining in the country. How that all plays itself out is yet to be seen. That'll all come out of the discussions after the decree.

So I think conceptually, what you're saying is right, but we just don't know at this point right.

Because it's free Hasnt come out we haven't had the discussions sit down with the government I mean climate he hinted at it but when we were down there just recently talking about local content. We did meet with the minister of mines and the one thing you did say he likes what Btu does and they do want mining in the country. So you know how how that all plays itself out is yet to be seen but you.

That will all come out of the discussions after the degree I think one of the interesting things Zero-base was the fact that bill touched on it was that even though we were delayed in getting the permit because of the.

Clive Johnson: I think one of the interesting things there, Ovais, was the fact that Bill touched on it, was that even though we were delaying getting the permit because of the mining audit, the new code, et cetera, the government encouraged us to go ahead and build the infrastructure for trucking ore. Most of that infrastructure's in place, ready to go. Therefore, the government was anticipating by encouraging us to go ahead and build the infrastructure, even though we didn't have a permit to actually truck ore, was a signal from the government that they clearly want to see that happen. For sure, obviously, everyone knows that Mali is looking for increased revenue. Everyone, difficult times, et cetera, in many ways.

Mining on it the new code et cetera, the government encourage us to go ahead and build the infrastructure for trucking horse and most of that infrastructure is in place ready to go. So therefore, the governor was anticipating bye bye.

She has to go ahead and build infrastructure, even though we didn't have the permit to actually Trump or what's assumed from the government that they clearly want to see that happen for sure obviously, everyone knows sets of values.

It's looking for increased revenue everyone's doing difficult times et cetera in many ways. So clearly call, writing, 20% ownership or whatever it's going to be more than that under the new code of the area.

Clive Johnson: Clearly gold mining and the 20% ownership or whatever it's going to be, more than that under the new code of the potential expansion area, not Fekola, but the potential expansion areas of the Fekola complex in the north are of great interest to the government in terms of increasing revenue. They should be highly motivated to get a permit in our hands and get mining as soon as possible. We're encouraged by that, and we'll see how the discussions go.

Obviously potential expansion area of block score, but the potential expansion area. So difficult complex in the north are of great interest to the guy with the choice of accretion revenue so they shouldn't be highly motivated.

To get permitted in their hands and get mining as soon as possible. So we're encouraged by that and we'll see how the discretion scope.

Ovais Habib: Okay. Sounds good. Thanks for the color from both yourself and Bill. Switching gears, I guess, to the Goose Project. You guys were doing a lot of exploration work, drilling in the area. When do we expect some results, and how are preliminary results looking so far?

Okay sounds good thanks for the color and from my boat or something but I just.

Switching gears I guess to a degree.

<unk> project.

You know you guys were doing a lot of exploration work drilling in the area. When do we expect some results and how it kind of remains the results are looking so far.

Okay.

Clive Johnson: Yeah, I think we touched on that earlier, but a lot of drilling's been going on. We are starting to get assay results in, and we are going to have a news result for you next week, giving you detailed updates on what we are seeing from the Goose drilling, including some assays. We are very encouraged by what we are seeing so far, once again, in replicating some of the grades before, but also looking further down plunge and further opportunities. I think you know of our view of exploration potential there. Of course, as I said earlier, Sabina was understandably, as a single asset company trying to finance and build a mine, did not spend a lot of money on exploration. It was CAD 5 million a year, and Canadian. We had over $20 million this year and even more looking forward into next year.

Yeah, I think we touched on that earlier, but we are a lot of drilling going on we're starting to get to US. The results show that were going to happen is we sell for you next week, giving you detailed updates on what we're seeing from them about that.

Children, including some assays. So we're very encouraged by what we're seeing so far once again and replicating some of the greatest before but also looking for the Delta pleasure further opportunity. So I think you know our view exploration potential there and of course as I said earlier I'm supposed.

That was I understand that there's a single asset company trying to go try that and build that provide do not spend a lot of money in exploration that was $5 million year over year, we had over 20 million this year and even more for looking forward into next year. So you'll get a good update on that next week.

Clive Johnson: You'll get a good update on that next week.

Ovais Habib: Okay. Sounds good. Just in terms of the drilling that you're doing, when we were at that site, you guys gave us an update on the underground development that had already been completed. Is there any drilling that's taking place from underground as well, or is it just mostly surface drilling right now?

Okay. It sounds good and then and then just in terms of the drilling that you're doing I mean, you guys had when we were at that site you guys give us an update on the underground development that had already been completed is there any drilling that's going from a you know taking place from underground as well or is it just mostly surface drilling right now.

Clive Johnson: Go on, Baker. Brian is building.

Well Brian.

That the plan is Sydney first half of the year the priority is actually to develop.

Baker: The plan is certainly the H1, the priority is actually to develop towards the ore. That's the priority. We'll continue drilling from surface. As soon as we have

Towards the whole so that's the priority and we'll continue drilling from surface as soon as we have cubbies opened up for us to drill from underground will be added there is already an underground rig onsite. So as soon as soon as we can we will.

Brian Scott: Cubbies opened up for us to drill from underground will be added. There is already an underground rig on site. As soon as we can, we'll replace that surface drilling with underground drilling.

It tastes that surface drilling with underground drilling well base.

Ovais Habib: Sounds good. Thanks, Mick. Clive, that's it for me. Thanks for taking my questions.

Sounds good thanks, Mike glad that's it for me and thanks for taking my questions.

Clive Johnson: Good. Thanks, Ovais.

That's right.

Operator 2: The next question comes from Anita Soni with CIBC World Markets. Please go ahead.

The next question comes from Anita Soni with CIBC World markets. Please go ahead.

Anita Soni: Hi. Good afternoon, guys. I just wanted to go a little bit further into the options for Fekola, and I know you touched upon it a little bit, but could you just reiterate where you think additional ore sources would come from, should you not get your permits for the Satellite deposits?

Hi, Good afternoon, guys I just wanted to go a little bit further in <unk>.

And that's part of the call I know you touched upon it a little bit but could you just sort of reiterate what do you think.

Where do you think additional ore sources would come from should you not get your permits for satellite deposit.

William Lytle: Well, if we don't get any approvals for the Satellite deposit, you would have to stay inside of the Medinandi permit. That's Fekola, that's Cardinal, and that's continuing to develop the Fekola underground. We wouldn't see any ore in 2024 there.

Well, if we don't get the so if we don't get any approvals for the satellite deposit you would have to stay outside and inside of the men and Andy permits. So that's the Cola as Cardinal.

And that's continued develop difficult underground, but we wouldn't see any or in 'twenty four there.

Anita Soni: Okay. I know you mentioned that you were looking at ways to mitigate the 18,000 ounces that you had expected this year by accelerating Cardinal. I was just wondering if that could extend into 2024 or not?

Okay. So basically like I know you mentioned that you were looking at ways to mitigate the the 18000 ounces that you would expect to book your own by accelerating Cardinal.

I was just wondering if that that could extend into 2024 or not.

William Lytle: Absolutely.

Absolutely.

Anita Soni: Okay. All right. You do have opportunities. Could you just quantify what Cardinal could potentially add to the fold if you had to?

Okay.

Alright, So you do have.

Could you just quantify like what cardinal could potentially have to default.

William Lytle: No, I can't really quantify because we're right in the middle of doing that as far as our budget season, so it'd be a bit premature. I will tell you that we are looking at how does Cardinal fit in? Are there additional ways to mine Cardinal at an advanced rate while we wait? All those things are on the table.

No.

I can't really quantify it because we're right in the middle of doing that as far as our budget season. So it would be a bit premature, but I will tell you that you know we are looking at and how does cardinal fit in either additional ways to mine Cardinal and an advanced rate, while the weight all those things around the table.

Anita Soni: Okay. I just wanted to ask about Otjikoto. Could you just tell me what the levels of the stockpiles are? I don't think I have that anywhere. That you'll be processing once the underground and the open pit are mined out in tons and grade, if you have it.

Okay.

And then I just wanted to ask about Oh did you cut out could you just tell me what the levels of the stockpiles are I don't think I have that in any way I saw that.

You'll be might that you'll be processing once the one the underground.

In tonnes and grade if you have them.

William Lytle: Yeah, I don't have it in tons and grade. Dennis, maybe you know, now I'm speaking just from memory, and I'll correct myself if it's wrong. I know we have more than 10 million tons on the stockpile, and I believe it's at 0.4 grams.

Yeah, I don't I don't have it in tonnes and grade.

Dennis maybe you know, but I I know I'm speaking just from memory.

Correct myself, if it's wrong, but I I know, we have more than 10 million tonnes on the stockpile and I believe with that 0.4 point and I think 0.4 grams.

Okay.

Anita Soni: Okay. Presumably you still want.

So it's a little bit higher.

Brian Scott: A little bit higher than that.

Anita Soni: Sorry, you'd still want to run the.

So you'd still want.

Brian Scott: Brian, did you track that?

Yeah.

Michael Cinnamond: Sorry, maybe I can answer to your question, so we don't end up repeating.

Alright.

Two questions.

Anita Soni: Yeah. Sorry, I was just wondering on the mill, did you want to continue to run it at the current levels when you're processing the stockpiles and to not stop it until you get feed from underground?

I was just trying to think.

On the mill did you want did you want to continue to run it at the current levels. If you want when you're processing stockpiles and.

So where we can.

William Lytle: Right. Before we get to that, Anita, Brian has an answer on the grade, a different answer.

Right before it gets out of need it Brian.

And that's where I'm at greater depth.

Anita Soni: Okay.

Brian Scott: I think by the end of the mine life, Anita, I think they'll be close to 20 million tons of low grade, sort of in the 0.44 to 0.48 gram per ton range. It's kind of a blend of low grade and mid-grade. That's where we'll be at the end of the mine life. Definitely, six to seven years of throughput available there to supplement with underground at the end of the open pit mine life. Can we talk about the mill? I think Anita's asking about what will be.

Did they buy it in shape Anita.

There'll be close to 20 million tonnes of low grade sort of in the 0.44 to four eight gram per ton range, it's kind of a blend of low grade and basic rate.

So that's kind of where it will be at the end of the mine life. So definitely you know six to seven years of Oh throughput available there to supplement with underground at the end of the open pit.

Can you talk about the Bill I think he was asking about what would be tortured yeah. So so we have we have looked at would we in fact, bringing the mill back down and the answer is we can but.

William Lytle: Yeah. We have looked at would we, in fact, bring the mill back down, and the answer is we can, but we don't necessarily have to. Right now, the current life of mine shows us continuing to operate in that kind of 2.5 to 3 million tons per annum and making a profit. It does require us, as you heard Clive indicate or Mike indicate, we're going to have to retrench all of the open pit workers, and we're going to have to bring our costs down. It is profitable at those grades, and that's what the economics show through 2031.

But we don't necessarily have the right now the current the current life of mine shows us continuing to operate in that kind of two and a half to 3 million tonnes per annum, and making a profit making a profit. It does require us as you heard clients indicate or Mike indicate we're gonna have to retrench all of the open pit workers and we're gonna have to bring our cost down but it is profit.

At those grades and you know that that's what the economic show for the next through 2031.

Anita Soni: Okay. Can you just remind me what the closure liability on it is in 10 years from now or seven years out?

Okay and can you just remind me what the closure liability on it is.

And 10 years from now or seven years that.

William Lytle: I don't know what it is.

So well.

Michael Cinnamond: Well, I guess we've recorded $12 million, but it'll probably, I don't know what the exact number, but it'll probably inflate itself up to somewhere more like $20 million by the time we're done.

Well I guess, we recorded 12 million, but it will probably I don't have the exact number probably a little probably insulate.

It's all up to somewhere more like $20 million was overdone.

Anita Soni: Okay. All right. Thank you.

William Lytle: Yeah. Remembering that because the open pit is closing next year, we've already started concurrent reclamation. A lot of the waste dumps are already under reclamation right now.

Yeah.

And remembering that because of the open pit is closing next year. We've already started concurrent reclamation. So a lot of the waste dumps are already under reclamation right now.

Anita Soni: Okay. All right. Thank you. That's it for my questions.

Alright. Thank you that's it for my questions.

Brian Scott: Okay. Thanks, Anita.

He's actually.

Operator 2: The next question comes from Carey MacRury with Canaccord Genuity. Please go ahead.

The next question comes from Gary Mckenzie.

Canaccord Genuity. Please go ahead.

Carey MacRury: Hi. Good morning, guys. Maybe just to follow up on Fekola. Was the original plan before the delays on the regional for Fekola to kind of be in that 600,000 ounce range next year? I guess my question is, without the regional, should we be expecting production to be down at Fekola, or was that expected to be growth at Fekola?

Hi, good morning, guys.

Maybe just a follow up on coal.

It was the original plan before the delays on the regional perfect color to kind of be.

And that 600000 ounce range next year I guess my question.

The regionals or you'd be expecting production to be down up Nikola or was that expected to be ethical alone.

William Lytle: Yeah. The answer is yes, production will have to be less. If you go back, I think you really need to go back to kind of the technical studies we had when we put out our last technical report. It did show 2024 as a down year, right? We always projected maybe less than 600, but it will be whatever we're going to produce and whatever we get in the regional stuff for 2024. It will be down.

Yeah. So the answer is yes production production will have to be less but you have to but if you go back I think you really need to go back to kind of the technical studies we had.

When we put out our last <unk>.

Technical report it did show 24 is a down year.

So we we always projected maybe less than 600, but it will be whatever we were going to produce.

And whenever we get into regional stopped for 'twenty 'twenty four or so it will be down.

Operator 1: Okay. Thank you. Now that you're back in the high grade, can you give a sense of what sort of grades we should be expecting for Q4 at Fekola?

Okay. Thank you and now.

Now that you're back in the high grade can you give a sense of what sort of grades we should be expecting for Q4 ethical.

William Lytle: I think it's plus 2 grams. Carey, you could calculate it if you just looked at what our range was and where we're at, and you could do the calculation because we're saying we're going to be kind of at the lower end of our range.

You could keep.

It's I think it's plus two grams, but Gary you could you could calculate it if you just looked at what our range was and where we're at and you can do the calculation because we're saying we're going to be kind of at the lower end of our range.

Carey MacRury: Okay, fair enough. Thank you.

Okay fair enough. Thank you.

William Lytle: Totally.

Oh yeah.

Operator 2: The next question comes from Don DeMarco with National Bank Financial. Please go ahead.

The next question comes from Don Demarco with National Bank Financial. Please go ahead.

Don DeMarco: All right. Thank you, operator. Good morning, Clive and team. Maybe we'll start off with Goose. Bill, you talked about the ice road, the ice road's going to start in early September. You're waiting for it to be cold enough. Can you give us an idea of what specifically, what kind of temperatures or sustained temperatures you're looking for before you can start?

Alright, Thank you operator, and good morning, Clive and team.

And maybe to start off with goose.

Oh, you're talking about the ice road and so the answer is going to start in early September you're waiting for it to be cold enough can you give us an idea of.

What specifically what kind of temperatures their sustained temperatures looking for before you can start.

William Lytle: No. What I can tell you is that we're looking for ice thicknesses, right? Basically, I think, once again, I hear up there you want to start out with a meter thick of ice. You can start dragging some of your containers up, and then as it continues to freeze, it gets to sometimes in excess of 2 meters. That's when you can bring your heavier loads up. You said September, but we'll probably start in December on the tundra, which freezes first, and work our way out towards the water sources.

No what I can tell you is that we're looking for ice thicknesses right. So basically.

Once again I hear up there you want to start out with like a meter thick of ice.

You can start dragging some of your containers up and then as you get as it continues to freeze it gets too sometimes in excess of two meters. That's when you can bring your heavier loads up in.

You said September but its actually will probably start in December on the tundra, which freezes first and work our way out towards the water sources.

Don DeMarco: Okay. It sounds like the team is ready to go right now on-site. You're just basically measuring ice thicknesses or kind of waiting for the sort of green light to go ahead. You said you're targeting early December, just to clarify? To start?

Okay.

So I mean.

It sounds like the team is ready to go right now on site and so you just basically measuring ice thicknesses or we're kind of waiting for the green light to go ahead.

You said you're targeting early December just to clarify.

William Lytle: Yeah. Well, that's right. Basically, the team will be put into place early December. They've obviously got to make sure that all the equipment is operating. As I said, we've already done a full maintenance on it, we've got to identify, right now we're in the process of identifying which containers are going to come up first, loads, weights, all that stuff is happening at Mali right now. That's kind of the early stuff we're working on right now.

Yeah, well that's right. So basically with the tea will be put into place early December that there obviously you got to make sure.

Is that all the equipment is operating as I said, we've already done a full maintenance on it but we've got to identify right now in the process of identifying which containers are going to come up first.

Loads weights all of that stuff is happening at M. L. A right now so that's kind of the early stuff we're working on right now.

Don DeMarco: Okay. The total distance of the road's about 163km. If you build that over 2 months, 60 days, I guess your target is roughly 3km per day. You're building it from maybe 3 different fronts, right from the middle and then from both end points. Is that it?

Okay.

And the total distance that runs about 163 kilometers did you build that over two two months 60 days I guess your target is roughly three kilometers per day, but you're you're building. It from maybe three different fronts right from the middle and then from both endpoints got it.

William Lytle: Yeah, that's correct. The key really is, remember, we're going to do the sea ice last. That's really where I think there's 20 or 30 km of sea ice, maybe 40 km, if I remember correctly. That's really the key stuff that has to freeze up thick enough before we can go.

Yeah, that's correct and in the key really is remember we're going to do the sea ice last and so that that's really where I think there's you know 20 or 30 kilometers of sea ice maybe 40, if I remember correctly, that's really the key stuff that has to freeze up picking up before we can go.

Don DeMarco: Okay, great. Maybe just shifting then to the questions on Fekola have been answered, but on Calibre, can you share what your strategic intentions are with your 24% share in this? I see from the financials the AISC's still attractive. It's running around $1,200 an ounce. What are your thoughts, medium or longer term, with Calibre?

Okay great.

Maybe just shifting on to.

Our questions on for Colin been answered, but and collaborate.

Can you share what your strategic intentions are with this with your 24% share in this I mean I see from our financials. The asics still attractive it's running around $200 an ounce, but what are your thoughts medium and longer term with the Kona brand.

Clive Johnson: Yeah. Those guys have done a good job. I think it was a great deal that everybody won. Our Nicaraguan employees, from the B2 times, stayed almost completely in place. Calibre's got some good technical people. They've done a good job of what they've done, and they continue to look to grow their production profile. We're happy shareholders, and they're good guys, old friends. They're doing a good job. We're happy with our investment. As they go forward, I've always said to the Calibre guys, if you are going, and whatever you're doing going forward, as things go along, looking to bring a shareholder in, we would consider selling a portion of our position. We're not in any rush to do that, and we'll work with them if that were to come about. We like what they're doing, and we're happy to be shareholders.

Yeah, I'm just kind of shows you all have done a good job I think there was a great deal with everybody wants.

Our Nicaragua employees.

From the B two types stayed almost completely in place.

And the caliber special type of people who've done a good job of of what they've done and they continue to look to.

To grow there.

<unk> profile, so we're happy shareholders and their kids are.

Good guys, what France is doing a good job, we're happy that our investments and as they go forward.

What we said to the caliber guys. If you if you are.

Whatever you're doing going forward as things go I was looking for.

Great.

Shareholder return, we would consider a middle southern portion of our position, but we're not in any rush to do that and we're not we'll work with them if that were to come about we like what they're doing and we're happy to be true.

Don DeMarco: Okay, great. Well, thanks for that, and good luck with the rest of the year. That's all for me. Take care.

Okay.

Great well, thanks for that and good luck with the rest of the year and that's all for me.

Clive Johnson: Okay, thanks. Appreciate it. Thank you.

They can't ship.

Sure.

Operator 2: This concludes the question and answer session. I would like to turn the conference back over to Clive Johnson for any closing remarks. Please go ahead.

This concludes the question and answer session I would like to turn the conference back over to Clive Johnson for any closing remarks. Please go ahead.

Clive Johnson: Okay, thanks all for your participation and your good questions, and we look forward to continuing to update you. As I said, the next thing up in terms of news would be the update on exploration in Back River on the south of the Goose and George Lake. Thanks for your attention.

Okay.

Thanks, all for your participation and your good questions and.

We look forward to continuing to.

To update you as I said next the next thing up in terms of.

Those would be the.

Update on exploration of Bad River.

But sort of acoustic George drugs. So thanks for your attention.

Operator 2: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

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