Q4 2023 B2Gold Corp Earnings Call

Unknown Executive: [inaudible] We're very pleased with the progress that we've made.

Clive Johnson: So, 2024 is a year of some transition year for a company like ours, which is a producing company that is growing as well. So, in 2024, production will be a bit lower than we had seen in 2023 and there's a number of different reasons for that.

Clive Johnson: Bill is going to go into some detail and Michael will talk to us about where we are from the financial perspective continuing to be in a very strong position. So, for 2024, production will be more primarily due to the delay in getting an exploitation permit from the government of Mali to proceed with the tracking of high decent-grade material, separate material, from the north of the Foucault complex manaconda region, which we were set to go on the roads road and all of the facilities are basically in place to start that.

Clive Johnson: We hope to start that in 2024. The government decided to do a mining audit, not only the mining companies in Mali and also came out with a new mining code. So, we have been able to delay the the issuing of licenses in terms of reputation licenses during that period of time.

Clive Johnson: So, we got some very positive conversations with the government a couple of weeks ago in Mali making progress towards understanding the locations of the 2023 code. The mining code for Mali, the Foucault minus self, is still under the 2012 mining code and has certain factors locked into that in terms of the ownership of the project etc. So, the conversations we have with the government, Mali were around the 2023 code we decided applies to the rest of the Foucault of region.

Clive Johnson: So, we think there's a good economic case to Trump start tracking more from the Anaconda area into the Foucault of Nile in the near term and then we continue our conversations with the government to find out what that means in terms of finding a way that is profitable for the shelves in our company, but also when something where the government of Mali feels they're getting their fair share. So, we're hoping to conclude our discussion soon with the government of Mali and be in a position to start tracking more from the Anaconda area and also we're down to the Foucault of Nile and that 80, 200, thousand ounces a year of gold production.

Clive Johnson: So, we're hoping to see that expectation for later in the year. We're looking to see that additional production late in 2004 and it's in 2025 as a mention that could be 180, 200,000 ounces of gold per year. Those are going to give us a little breakdown on the cost associated with Foucault of the terms of this is a year where we have assumed that a amount of capital spend, which was planned in the life of Mike.

Clive Johnson: We have a bit over grade that we've seen some of the years before. We're done a bit on ounces as I mentioned because of the lack of uptruck. We have a big span in terms of tailings bond, which is going very well with tailings bond construction and also we're expanding the solar plant. So, it's a pre-stricken. So, those are some of the issues that are hitting this year in 2024 in terms of our cost and our all over all in sustaining costs.

Clive Johnson: So, the mystery to us why the accounting rules suggest that if you spend a lot of money on the tailings bond, which is going to get the tailings to go to the tailings bond, it's going to get the tailings to go to the tailings bond. .

Clive Johnson: and we're definitely feeling very comfortable with our schedule, a producing goal for losing the first quarter of 2025.

Clive Johnson: So I think with that I'll have it over to Bill and Mike's going to talk to you to the pre-pays. We decided to tap into the preview market to maintain our very strong financial position, the year when we have a lot of capital spent coming up. This is something that we pioneered when Michael and Fuzer Bill and Focola in 2016. And that was to tap into the pre-pays and paid gold markets as a great source of cheap financing to allow us to then to complete the construction of the Focola Bill and my facilities.

Clive Johnson: I might remember that we were all scheduled on budget at Focola, but because of a drop in the dramatic drop in the gold price of 2016, so we didn't have sufficient funds, we were about $125 million short of reaching the funding for the ability to buy in the financial and vegetable market. So we were the first companies to do gold pre-paid support of the financing and it was a great financing at the time for us, because people anticipated that we would do an equity issue to complete the construction of Focola and our stock was driven down to actually 80 cents a share.

Clive Johnson: And with anticipation of our illusion of equity offering, we didn't do that because the pre-pays were set up to the small percentage of our gold production and the use that to fund the necessary funds to complete Focola. A lot of companies have copied that now.

Clive Johnson: It's quite a common type of financing that Michael walk you through why we did that and why it's very beneficial to the company of a long term to go to the leaves in a very strong financing position. And that's when we go through a transition year in 2024, which is transitioning as Focola and also transitioning in the context of building the goods market. So the company remains very focused on being a responsible gold producer but also a closed company and we're well on track with our global projects to continue that journey.

Clive Johnson: So with that, I think we'll have a little bit to give you a little more color on Focola capital spend and also talk about the peace project.

William Lytle: Okay, thanks, Clyde. I guess I want to start a little bit with just once again reiterating that 2023, even though it kind of at the halfway point, we were down a little bit on ounces. As we managed to make everything up and had an excellent year across all three sites. I mean, if you look at Focola in particular.

William Lytle: Fourth quarter was it was a very good quarter for Focola and it really let us into setting up for 2024. If you go back and think about what was in the feasibility study or the technical study that we put out related to kind of the life of my production, you would see the 2024 was always. It's a bit of a down year as we basically worked our way through phase seven, some of the lower grade in the in the higher zones of phase seven and then into the bridge part. So what we have is we're now.

William Lytle: We'll be developing we'll be taking out the bottom of phase six, which is which is high grade and at the same time bring phase seven down so the second half of the year will be in the red zone also in phase seven. Additionally, at Focola, as Clive said, we've got a few kind of one off projects, which are which are raising up the all in sustaining class. We have the tailings facility, the tailings facility was has been compressed a little bit originally that was designed to be in 2023 and 2024 over the course of both those years they were a little late.

William Lytle: I'm getting us the permit that we've condensed the construction period a little bit that's going to be approximately $45 million to complete with most of that occurring in 2024 with the intent of bringing that online in the second quarter of 2025. Additionally, there is the solar plant once again late delivering the permits so we were delayed a little bit, but that that project will come online in 2024. That project has an approximately $19 million left and that project is on schedule. We've also got the underground, everyone's aware, I think that the underground is designed to replace some of the lower grade ounces out of phase eight in the early, in the early years with higher grade ounces.

William Lytle: We have, we have a plan to develop that the underground mine, really by the end of 2024, we're going to be at the face of the year, so our intent really is this year to develop a study and get it to the government, to get approval to start mining in this. In the first half of 2025, that's an additional $64 million to completion. So overall, all those things should really set us up nicely going into 2025 and just talking a little bit about the regional stuff and how it plays in.

William Lytle: So the regional stuff, everyone is aware that we have in fact completed almost all of the infrastructure for the regional stuff. The road is in all of the facilities up at Menonco, and then Taco are in, and really we're basically what we're talking about now is just finishing it up, closing up buildings, and then getting a permit and then pre-stripping.

William Lytle: So if you think about what the original plan was that we announced in kind of late 2022, all of that was supposed to happen in 2023. So really if you just take the 2023 program and shipped into 2024, what you're going to see is that there's the potential in 2024 to develop those 18,000 ounces. That would be way out in Q4, and what that assumes is that assumes we're able to get a permit in by the first half of the year, and then we have three months of pre-stripping.

William Lytle: And then of course we'd be on or in the Q4 2024 that's the same schedule that we would have had in 2023. And what that allows us to do is that allows us to push that 80 to 100,000 ounces which were originally come on in 2024, those ounces will now come on in 2025. So really we see that we are that we're right on schedule, if in fact you assume that we start in Q1 of 2024 for developing a regional stuff.

William Lytle: If I have anything else you'd like me to talk about for the code for Guanda goose. Do I think that's good bill.

William Lytle: Okay, so goose is probably the one which is drawing the most attention on this call. I'll start out with with all of the positive so the project remains fully on schedule. The mill is actually ahead of schedule. When the last time we talked, we had been shipping stuff up to the MLA and getting ready for the winter ice road. The winter ice road construction is fully under construction right now. We're in the process that you know of doing something a little different than before from kind of working not only from the end but also from the middle out.

William Lytle: And so we are talking about at the end or during the second week of February, opening up the ice road. We are anticipating with fuel that we're going to be bringing 3000 lows to approximately plus minus down the ice road.

William Lytle: As we've previously indicated we have plenty of time for that. We've got the additional trucks on site or at the MLA and we don't see any, and the reason that that shouldn't happen, that still remains on the critical path, but that's in very good shape. On the additional construction side, the underground is going very well. The ventilation raises in, the team is working very good, I'm trying to get down to that crown pillar.

William Lytle: It has to be mined out by kind of Q1 2025, but that'll be the talent facility from day one. Regarding the cost, this is one I'm trying to get a lot of thought on what is necessary the best way to say this, but basically the situation is is we took over the project. It kind of midstreamed from Sabina, so Sabina had done their feasibility studies, Sabina had ordered the first stuff which was coming up the ice road in 2023 and had put together the schedule.

William Lytle: We obviously did expensive due diligence to get through that, but a lot of the things were either in snow or you couldn't really identify how it all fit together once you started putting it together. So our guys got on site and we started working through it and we identified things which B2 wanted to do different to improve productivity, but also reliability. And a lot of that really relates to kind of some big buckets and I just run through some of these the underground, the initial underground that was done by Sabina really didn't have a lot of capital spending on things like some of the consumables for underground and a lot of the a lot of the actual support, which was needed for developing underground.

William Lytle: So that when you talk about the difference between kind of that 90 and 120 million dollars difference most of that comes in equipment and support equipment from the underground, which was never just ordered and I have to come back to several times. It's not just the cost of the equipment that you're really talking about because. It had been discussed and agreed that we were going to fast track the underground. A lot of this stuff has very heavy logistics costs with it, ordering it as quickly as possible and then putting it on C 130s to bring it in the site so expensive transportation costs associated with that.

William Lytle: And it's the same thing with some of the other things which are outstanding. We found that we had a major redesign of some of the mill structures to include a lot of the piping and a lot of the venting all of that stuff had to be reordered and it's not just that we're paying for it now and then paying for logistics to go with it. Remember, we already bought it once shipped at the site and now we're doing the whole thing again on a schedule.

William Lytle: So you're you're paying at least double, but we felt that it was really important to make sure that the guys had the equipment and the necessary facilities in order to build it in time for the key 125 season. So what we're talking about is really. Mill infrastructure underground infrastructure. Another big one is the is labor and I saw one of the questions from one of the analysts this morning related to is that something that's going to carry on with the answers know what happened was when when subvened their feasibility study they. They didn't include the requisite member of ours for people working on site.

William Lytle: And so we've obviously taken the operational stuff and turned it into a B2 model. But when we went back and looked at the construction model, what we notice that they didn't have enough hours, not the actual day rates, but the hours per day that people would be working in. So that was a big miss on their part.

William Lytle: And, you know, we're in the process of correcting that. And then the last big one really is the powerhouse, the powerhouse was is undersized and definitely undersized when you included the additional underground. So we're in the process right now of ordering additional power supplies. And once again, all that stuff has to be flown in, so that'll be an expensive proposition as well. And all that has up to the large, overrun that you see, but most of it really are things that will not be carried on into operation. And once we get it going, what we are hoping for is a more reliable and a better running facility. Anything else there, glad you'd like me to talk about?

William Lytle: Well, I think that some people are probably curious to think what is the risk factor going forward with the additional. And also how much money have we spent so far both in terms of between what's to be now some of the useful money they spent. And also what we've spent what's left to spend into the construction capital to to to get the line up and running. Yeah, sure.

William Lytle: So let's start with the risk one. We think that really the risk of additional off overrun is low, given the fact that once again, we've now ordered really everything, which is in the MLA obviously that stuff is coming up the winter of where the process now, but putting in order for the 2025 ice road. And we're not seeing where basically all of that has been included in the budget and yet increases in price. The labor issues has been addressed in the updated budget, so we don't see that as an issue.

William Lytle: So overall, we see the additional cost overrun is a low risk proposition. Today, we spent a little bit more than $700 million on the goose project. And so basically with more than 70% of the budget already spent and committed, you know, for 2024 and Q1 2025, we really believe that the risk of exceeding that budget is kind of a little risk. Yeah, thanks.

Clive Johnson: Well, I think the important point out that I think I think build and the team has done an extraordinary job when you look at the fact that this is not the way we normally like to build and grow the company each goal because normally we like to find projects that are at the feasibility stage and we can design the bill. We want to build and do it our way. In this situation, we had a company, a single asset company, who only asset, who was interested in trying to build a mine and they were very much on a real obviously a very extremely tight budget, and they were the only alternative for them to be able to finance the project was unfortunately to rely on private equity and the streamers, to the point where we were giving up a lot of the value of the project up front to try and get a production of an extraordinary type budget.

Clive Johnson: So, we took it over when it was part way into construction. And that's one of the reasons why we're obviously disappointed with an increase in the capital cost because we pride ourselves for years at B2Gold at doing things on budget on schedule. In this case, I think we did an extraordinary job of picking up the pieces of what was going to be a very challenged project with a single asset company without a lot of construction experience.

Clive Johnson: And when I'm financing a very painful and extremely expensive financing, with private equity, which I think everyone knows that I'm not a big fan of, I think it's very destructive in our industry, the cost of these financing.

Clive Johnson: So, we managed to, there's a lot of pressure on the deal on the steel to get the deal closed to be honest with you on April of last year. Before they drew down the financing from Orion and all the other triggers that came in, to finance the project, which probably could have cost up to $200 million actually just to finance the project, if you add up all the bills, whistles, and the pre-payment of gold, a lot of the other nasty things that were required because traditional financing was not available to the previous owner of the project because of the market skepticism about building a mine in the north, a single asset company, and with the lack of experience in terms of building projects. So, we've done a remarkable job in this last year. We've picked up this thing on the fly partway and construction in last year.

Clive Johnson: Semina had planned two ships to go from Montreal, up to the Arctic Ocean, about that, so we're still there, and then Bill Gashroos to bring everything on site. Well, we actually were able to send six ships up to bring everything we needed to complete construction, and then all the fuel that's needed for the future of the project. So, Semina did a lot of good things, and they did the contents in terms of exploration, permitting, Indigenous relationships, and great relationship of the constituent association, and just association of our partners, and we just had some great meetings when I'm here this week, and there were a lot of things that Semina did well in those areas, and a lot of the Semina team, the critical people in our view, wanted to stay with this great project in terms of permitting and in terms of Indigenous relations, and some of the technical people in the generation team joined our team, and I think that's one of the only reasons that we were able to actually rescue or keep to the schedule, a first call per action in the first quarter of 2025, so just to give you a little bit of background.

Clive Johnson: So, Semina did a good job, and they did for sure now, and equifically, they did a great thing for the shareholders by accepting an offer. So, a few two-year-old could take a plea to friendly take over with a significant premium to build this mine, and do it well. So, we remain extremely optimistic about producers as a major asset, and Mike's not going to walk us through why we did chose to take a financing vow in a non-dilutive pre-payment of goal production, to make sure that we maintain a very strong financial position as we go through this transitional year of the capital spend, we need it for COLA, etc, which were planned and expected, but also doose and finishing off the project, and maintaining our dividend and maintaining our cash position.

Michael Cinnamond: So I think with that I'll pass it over to Mike to talk about the gold pre-payment for our questions.

Michael Cinnamond: Okay, thanks, guys. Yeah, just on the pre-pay financing, I think that's not really the goal. If just to strengthen and maintain our balance sheet liquidity, he was in great shape as we get through 24 and beyond, frankly, you know. So pre-pay, we looked at the gold market. We've got gold near record highs and it's been over 2,000 bucks over a quarter and for two quarters. That means basically the first time ever, I think that's happened.

Michael Cinnamond: So you've got to look at the gold price and say this is a good gold market. This is a very effective gold price. And with the pre-payment, you have the balance. When you're blessed with production, it's a great financing for an operating company. I think just because if you have production, you can use it. So we're able to price them using a forward price just under 2,200 bucks. 2119 was the average across the four banks.

Michael Cinnamond: And it, you know, for a total of 265,000 ounces. And we're going to deliver those ounces in the second half to 25. Once goose has up and running it in the first half to 26.

Michael Cinnamond: I stress to these are corporate level pre-payment. We can source the production from anywhere. And when you look at, when you look at this as a financing, if you look at number of ounces, we've got it deliver and the forward price that we're able to use. And that's how, if you assume today's gold price, it's a effective financing cost over 2.7%. So when I look at that compared to the revolver, which is probably 8% plus than that region, it's an attractive financing.

Michael Cinnamond: And so where we are, actually, and I'd like to give a shout out, we've four percent to get banks. [inaudible] At the end of Q3, but as we indicated, we were starting to draw on Q4. So by the end of the year, we draw on 150. So we're still, I think you'll see, we haven't put a year in result of yet, but like I said, I like to keep that cash somewhere around 300 million. We had the line drawn 150, so we're still strong in that cash position.

Michael Cinnamond: And our objectives with the prepays is, first of all, we'll pay down the line with a portion of the prepays. And then we'll have the balance of the prepays plus a full on draw on line to find out themselves as we go through and fund all the kinds of things that we want to do. And to give you a picture, I think, of, you know, what are the use of those funds?

Michael Cinnamond: It's to really maintain our flexibility, like to say, both through 24 and beyond. If you've heard, there is some significant capital development in Mali for Kola. And some of those are multi-year projects, right? So they've been going on, the tailings, the underground solar. We started those prior year, most of them will be complete on your completion by the end of the year. And then, of course, also for Polar Regional, we've got some spend in there just to get that ready.

Michael Cinnamond: And so when we get those licenses, we're ready to go. We want to maintain our agressive exploration program of $63 million in the budget for exploration, both that brown field and for green field. And they could certainly get more details if needed there.

Michael Cinnamond: You've heard, you know, big project versus goose, just to keep that running through smoothly and get ourselves into first goal core in 2025, Q 125, and maintain our 24 dividend at the current rate, as we've indicated before. And also to give ourselves capacity and flexibility for maybe some investment decisions that might come later in 24, right? That aren't in the budget right now, but Clive's touched on them. So, first one would be Grandma Latine.

Michael Cinnamond: How do we see Grandma Latine, you know, by the half year, we'll have a picture of what we think, that newer streamlines, Grandma Latine operation could look like. So if we want to move forward, we have... Given the screen phase now helps us have that sort of flexibility to make some decisions. And also, I don't actually think I've both talked to Namibia so far about. We're looking at the antelope zone or spring blocker, some version of like bouncy animal.

Michael Cinnamond: At which Dakota, which we think is an exciting underground prospect, it could help supplement mill feed. And in those stockpile years at Ocicoto, where if this pent up, we can bring the underground into words, we can look at putting some kind of model on it and perhaps adding some higher grade ounces in those stockpile years. So those are the kind of things given ourselves flexibility, let us look forward past the end of 24.

Michael Cinnamond: And really, the pre-fades in the end, it's an opportunistic financing where the gold price the way it is. And I think it's a cheap financing for a company like ourselves when we have, like I think we're blessed with production. Great, thanks.

Clive Johnson: Maybe I think one of the topics that there's not a lot of people's mind is Molly and the government of Molly and go many and Molly, I'd like to give you comments about that. For our recent trip down there in negotiations with the government. So I think it's really important to keep it in context. Molly has been for decades.

Clive Johnson: I mean, a very good country in terms of investment in building gold mines, successful gold mines with the history of Rand Gold, Mount Barrick and other companies, including ourselves. It is, it is a country that has been successful working with the various governments we've been through in terms of understanding that the gold is a very 20% of the GDP in the country. And I think we're the largest taxpayer in the country.

Clive Johnson: And it paid over $1.3 billion in taxes and benefits to the people of Molly. So we put up all the risk when we need to build for Cola, $699 million. And the people in the government of Molly have realized a little over 50% of the economic value of the full Cola mine. I think that's a pretty good deal.

Clive Johnson: We should go to risk, I think it's 50% of the economic benefit. So the new government or the government is in place today that feels that they want more of the pie and Molly for valiance and self determination and those things which I think are great things to aspire to over time. They don't happen overnight.

Clive Johnson: So at the end of the day, we're in conversations with the government. A lot of the, a lot of the parameters that govern for Cola are locked in for for Cola on to the 2012 mining code. And the government clearly recognized it was just as recently as a couple of weeks ago when we were down there for Cola is under the 2012 code. The 2023 code is looking basically to increase the government's interest significantly in gold and gold mining projects in Molly.

Clive Johnson: And now the regional, regional areas that we want to chuckle are from our government of those 2023 code. So the conversation through the government may understand the 2023 code. And frankly, I'm respectfully and we have a great relationship with government that showed a couple of weeks ago where they consider be too old and they mentioned to us that they consider be too old sort of the best, and Foreign Investor in their country, and they recognize the value of gold production.

Clive Johnson: And they clearly are on the same page with us in the sense that they want to see trucking a war in the near term to increase production at the coal as we mentioned, by potentially 80, 200,000 ounces a year by trucking a war down to the middle. So that's the conversations that are going on, not to understand the 20-23 code and understand the economic implications, and that doesn't make economic sense to truck a war.

Clive Johnson: So we're going to government, we think there's a path forward for mutual benefit from the government, from the people of Malay to continue to increase production at the coal by trucking a war. You know, we talked to the government about the fact that we have two potential stages of growth, and if we'll call it a complex, the first one is trucking a war, as we've talked about, which is very low cost, we spent most of the capital to do that, but we think it can be quite profitable. The second was to potentially build on the additional milk.

Clive Johnson: In the Anaconda area, perhaps something about 250 million dollars capital investment, to actually build a second milk based on some of the exploration results we've seen, and not only in the oxidized separate material, but also in the sulfide as well. Frankly, those plans are very much on hold, I'm trying to understand the implications of the 20-23 mining code. So at the end of the day, there's a competition for our investment dollars around the world, and where we're going to spend our investment dollars.

Clive Johnson: So Malay's got a good place to be invested with a reasonable tax regime, and many companies, including ours, and we're reporting that people of Malay have benefited from that. So the question becomes, under the new mining code, all of his Malay is still in the tractor place to build notes and additional gold mines, and we're trying to understand that a little bit better and trying to work with the government to understand the implications of some of the proposed tax and the increases that the government's looking for.

Clive Johnson: So at the end of the day, we have the capital dollars we're prepared to spend around the world as we've done so successfully. Our competition, do we want to spend our money potentially? And Columbia has the study that's going to come out of the first half of this year, indicates that we can build a mine there and invest significantly in a new amount of Columbia, or do we build a second milk in the façola complex, et cetera, et cetera, or other opportunities. So at the end of the day, gold production has been a very important part historically for centuries. Actually, if you look at history of Malay, of Malay and Malay's economy, and it is today.

Clive Johnson: So we'll encourage you in the government to work with us. I think we have a good relation, we have a good relation with government, as they talked to us a couple of weeks ago, about being sort of the poster child of the gold standard of foreign investment in their country. So I think there's a level of understanding between us. Then the level of commonality to see what works for the government and the people of Malay, and what works for a profitable.

Clive Johnson: Gold money company is lucky to grow responsibly as we've done so. Well, I'm a mystic that we're going to the next month or so. Continue our conversation with the government and get on with the business of trucking more from the rest of the façola complex down to the façola milk. I mean, there's a lot of rumors out there. There's a lot of people getting half the story, unfortunately.

Clive Johnson: That fact of the matter is the government of Mali understands the importance of gold production in the country. This government, previous governments, and I'm sure future governments understand that. And we're confident that we can, and other companies continue to work with them to the betterment of Mali. So, I think we are bottom line, as we've done it, we've done it on the world between Meena and Victor Gold.

Clive Johnson: We've been on one of the most successful companies I think in the whole mining sector. We have been in managing political risk and understanding them. And the best way to manage political risk is to put it on the process of making these countries and these governments. So we're confident that we're going to be able to continue to work successfully with the government of Mali for Cola, but also according to Ford.

Unknown Executive: So I think with that, we'll open it up for questions.

Unknown Executive: So operator, if you can invite people to ask us questions. Certainly.

Unknown Executive: We'll now begin the analyst question and answer session. To join the question, you may press star than one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, press star than two.

Ovais Habib: Our first question is from always be happy with Scotia Bank. Please go ahead.

Ovais Habib: I'd like when the BT team congrats on a strong end to the year. And for 2024 seems like, like you mentioned, is a transitional year with remaining gap X spend at goose and sustaining projects in 2024. So just a couple of questions from me.

Clive Johnson: Number one, Bill gave us a good overview of again, why the goose capex increased. And I'm actually glad that you are making these changes now rather than having issues at startup. But is there anything in this new guidance or plans that you're looking to do in 2024? Bill, that's still worrying your team or is there anything that's still outstanding that you want to change now rather than kind of have in place. At the startup?

Clive Johnson: Well, I'll comment on that briefly and give it to Bill. I mean, the history of even be to go to sweet build mills with the expectation that they're going to ramp up very quickly. We don't build a mill to produce a goal to fix the mill and fix all the other problems that are in mind. We build them to start up and start well and we're anticipating that, especially with a very high grade stock problem we're going to have at goose. So I'll pass it over to Bill. Yeah, thanks, Clive.

William Lytle: That's a very valid point. You know, we don't anticipate startup issues. I would tell you that your question is almost like what still keeping you up at night after changing the capital cost. And I would say, you know, we're still looking at the power issue, right? They really, they missed it on the power.

William Lytle: And if you follow us, we are looking very closely at a wind plant up there, which we think is going to help us offset that. That'll probably, that's not a cat backs issue for us. That's something to hopefully we'll get somebody to sell us power across the fence. But what that allows us to do is really reduce the amount of fuel that we can bring in that we have to bring in each year and cut down on the tankage because that's really.

William Lytle: That was one of the big, big misses on the subvene aside, so that's probably the one thing is fuel I say, but it's not it's not an additional capital cost. And it certainly is not going to impact startup. Okay, thanks Bill for that. And just that kind of segues into my next question.

William Lytle: In terms of the ramp up at Goose in 2025, production guidance was kind of around that, you know, 250,000 hours mark in 2025, it was below our expectations and kind of below the latest tech report, which was calling for production around the 300,000 hours mark bill. Are you just being kind of conservative going into this ramp up in 2025, whereas something else changed. And how you see production in the first year.

William Lytle: No, I mean, once again, the previous technical report started kind of a month zero. So I think if you look at, we're still we're still saying approximately 300,000 hours a year at a minimum over the first five years on average. So nothing changes there. But if you start on must pay, we used March 31st is, you know, the end of Q1 and then you have a lamppocal three months, it's not that hard to get to, you know, to get to the mid 200.

William Lytle: So I don't, I was actually kind of surprised that that, but that came out in the market that that was a bit below expectations. We see that is really kind of exactly what the mind plan said. Okay, thanks for the clarity on that.

Clive Johnson: Well, I'm just switching gears on picola, picola, regional, I guess. You know, like you gave us a very good overview in terms of, you know, how great the relationships are with the million government, how kind of talks are progressing. Is there any kind of, you know, kind of point that you guys are stuck on? I mean, is there anything kind of color that you can provide as to, you know, is the million government kind of serious about you guys moving forward? Is that, you know, are they, are they kind of deploying around, you know, giving you that for me? I mean, where is kind of things stuck out right now?

Clive Johnson: Well, I think the 2023 mining code is relatively new. In fact, it just came out with an information decree of that very recently in the last couple of weeks. So we're going through that with them. I think that. You know, I was, I was often as I suppose, but you have to be in this business, someone's got to be.

Clive Johnson: But at the end of the day, I think that we had good productive means in the government to really understand the two that's trying to code the implementation of it and what it really means not for, you know, as we said, not for for call of what it means for regional production. So it's very important like many other governments around the world and the global mining industry developing countries that they don't kill the goose that likes to go next.

Clive Johnson: And that's the balance they need to strike between attracting investment companies like ourselves to build the next coal mines in Mali, etc. So we're in an unusual position there because we're the ones in the country that have a near term scenario of tracking law, which is going to be very beneficial to be to go and it's all of its stakeholders, including the government of people of Mali. Because we don't have to blast across the order, we simply dig it out of the ground and we've already built the roads so we can we can quite economically, hopefully, a mine additional or but in terms of the second mill or other other foreign investors coming in and building coal mines in Mali, as I mentioned earlier, it's a competitive situation for our investment dollars.

Clive Johnson: So we're really working with the mining government from a respectful position and mutual success we've achieved in the past to understand the limits and the implications. So Mali for Mali and self-determination is something that we all aspire to. At the end of the day, I think that it happens over time.

Clive Johnson: There is not a Mali company that I know of or the government is going to spend $600 million to build a mine like for coal at the end of the day. They need foreign investment, they need responsible respectful foreign investment like other companies in each coal. It's such an important part of the economy. So we're confident that with good consultation as we're having the government and we'll find the balance to continue to attract foreign investment. And go laying in Mali.

Ovais Habib: Thanks for the color on that climb as well. So that's it for me. Really, thanks for hosting this call and thanks for taking my questions. Thanks Ovais, good questions.

Unknown Executive: Thank you.

Don Demarco: The next question is from Don DeMarco with National Bank Financial. Please go ahead.

Don Demarco: Thank you, Operator and Good Morning, Clive and Team. So Bill, you mentioned that the mill is ahead of schedule. Is there any chance for first four earlier than Q 125 in light of this? I'd ask you to say that question.

Clive Johnson: Well, I'll send that quickly and then I'll get over to Bill. Well, I'll let the course we'll let Bill answer that and then I'll give you my view. So the answer is really it's almost a foot race now between can we mine out the eco pit fast enough versus building the mill. So really, I don't see it happening much faster. If it is, I would say it's immaterial.

William Lytle: Okay, if I was a, if I was a betting man and we were in this industry, you're sort of making bets every day, but if I was a betting man, I would sink to giving the track record of those team and John Rahala, our, our medalist and the mills that he builds. I think we're going to have a really good ramp up and start up and I'll just leave it at that. Okay, thanks.

William Lytle: So to my next question is sticking with goose, there was some messaging in the release that some of the extra spend might reduce off X, particularly underground development, so on. But, you know, we do recognize that the goose, goose project life and mine plans can be finalized in the first quarter of 2024. But does any of this additional spend potentially the higher production than might have been forecast in the feasibility study? Well, once again, that's a little extra.

William Lytle: But unfortunately, we didn't get to choose the mill, Sabina did and it's a good mill. We can work with it. But it doesn't really have the expansion potential that a beach of gold mill would normally have when you look at for color, where we started and where we are today, dramatic expansion of the mill because we built it with the idea of expansion. So we don't really have the benefit of that. That that that that that that that that is the bill that we have a no dollar US.

William Lytle: Yeah, so I don't in the short term the answer is no, I mean what we've done really the mill is is kind of as quite as said is not a B2 design mill kind of with that 25% design factory to get bigger. And so what you're really talking about is can we bring higher ounces forward and that's really what we've done in our current mine plans, you know, Sabina kind of conceptually talked about it without putting any numbers on it.

William Lytle: And at the end of the day that that by taking by taking the crown pillar kind of in the early years, that's exactly what we're doing. And so unless unless we have height, you know, some success with some down plunge higher grade exploration, I don't see that in the short term. OK, but I want to say that we were spending we have a large expression budget. I want to say 20 inches of the year 28.

William Lytle: So we have a large expression budget. And why is that well because there's tremendous expression potential and that you wave your arms a little bit down the road. If we have continued success, I mean, one of the holes we drove in the envelope deposit is 100 meters below the previous. Extended the drilling and we had 20, 20 meters of eight grams.

William Lytle: Clearly, these new ourselves on this 80 kilometer long trend of banded our information. So we're spending that money and expiration because we believe the potential is tremendous there. And once again, let's not get it ourselves. That's build goose.

Clive Johnson: The Mill and Bill are well with a test for additional mills on that property in the future as this is probably not an unrealistic goal or objective. Okay, thanks. For a final question, just shifting to Molly.

Clive Johnson: Clive, it sounds as though you've had some pretty constructive discussions with the government there. Is there a possibility that the regional mining that's planned to start in 2025? Or potentially mining from other future regional prospects will be grandfathered under an earlier code like the 2022 code? Yeah, I don't think that's going to happen.

Clive Johnson: I think that the government clearly has come up with a new mining code. I think the key is to the issues rather than the implementation of the 2022 code and fully understanding that at the end of the day. So, but the implementation of the 2023 code will be important and they've just come out with that and that will be part of the conversation. So, they're not going to grant fathers to the 2012 code.

Clive Johnson: For cola aspects of the cola are protected on the 2012 code and they've been launched on such as ownership, et cetera. But there's a new code we need to find a way to work within the context of the new code to see if it makes sense for all of our stakeholders. To actually the trouble or our confidence that there's a way forward the government's red motivated for more revenue from go might. Including from each goal and the fastest way in the country to get more revenue for go mining is to reach an understanding of how we can profitably. Truck or to the football.

Clive Johnson: Okay, thank you very much. That's all for me. Good luck with 2024. Thanks.

Anita Soni: The next question is from Anita Soni with CIBC World Market. Please go ahead. Hi, can you hear me?

Anita Soni: Yes. Okay, good. Sorry. I was on speaker phone. So, a few questions, just firstly on the folklore complex.

Clive Johnson: You were saying that there's a possibility that you would not it depending on the royalty rates that you wouldn't be tracking that or could you sort of give us an indication on how. You said it was a low cost originally, but how like what kind of cost would be thinking about if you were going to track it just so that we can try to understand the the economics when the world's rates come through.

Clive Johnson: Well, I mean, where are we out of terms of the study on that first building with Mike, where are we out of terms and please study on that our own internal study in terms of tracking war. Well, I think I think we're going to come out with the whole complex studies by the end of the first quarter. That's what we said for about a full coal mine updated and part of the original cycle.

Clive Johnson: So, I think on the face of it, it's quite attractive because you've got some good great material there. You don't have to last crush it. We've already built most of the infrastructure that maintenance buildings for the trucks. The roads, we were just down there a couple of weeks ago.

Clive Johnson: We're really ready to go. When we get the, you know, with the government, we will have some green stripping to do for a few months. But then we'll be into tracking it. So, because of the situation where the mill is already built, it's going to go to no. And the nature of the grade of the sample material that we're seeing. And if we're going to go to the complex to the north, we were pretty confident that there's a next lot of cases, and that grade was around two grams per time. Is that correct?

Clive Johnson: Yeah, I think it's about two grams or more. Yeah, it could feel a little higher once again we're going to be selectively mining. So, you know, the study is going to look at the various iterations, but you know two grams certainly makes money. Okay, and then I just want to talk about the Focola cost currently on the operating cost side. They're a little higher than I would have anticipated.

William Lytle: Can you just like are you seeing inflationary pressures as versus last year, even on the unit cost consumable? I'm assuming you know what's happening at goose is the same thing that's happening at Focola. So, are you talking about Focola? Yeah, I mean, I think I think I'm okay.

Clive Johnson: I said that out of the day, I simply put, you have less outs of production than Focola this year because of the government delaying the implementation permit to truck or so that cost is 80 to 100,000 ounces and the government cost government that as well. They're portion of that. So, therefore, simply put you have less ounces to divide your cost by. So, therefore your costs are somewhat higher bill is said after that and Mike. You could say that.

William Lytle: The only thing I can add to it is clearly we are it is an ounce issue is the main thing, but we are deeper in phase six right now, right? So, certainly on the mining side, the cost would be a little bit higher, but you know, we've got a very good handle on the kind of the reagent costs with a global purchasing. We've got a very good handle on kind of the the milling cost, the power cost, the labor costs. So, all of the main drivers who've got a good handle on, but it's just, you know, where we are, where we're at in a life cycle of mine.

William Lytle: Okay, well, that explains the, if you're mining costs are higher because you're deeper in the pit and I seem that will change over into next year. We're coming right up into phase seven right now. Okay, and then just look thinking about 2025 on FACOLA as well. You mentioned that you're going to be in higher grades at FACOLA and at Cardinal. Can you just tell us what kind of grades you're talking about there?

William Lytle: So, I don't think I said higher grades at FACOLA and Cardinal and I said it would be in phase six in the first half of the year in the bottom of phase six, so that's the high grade stuff. Definitely plus two, two and a half grams and then in the middle part of the year will be in phase seven in the upper benches, which is lower grade. You know, kind of in that, I don't know, gram, gram and a half area.

William Lytle: But as we get that, we'll enter back into the higher grades in the second half of the year in phase seven back to that two and a half grams again. Yeah, that's, so I was talking about 2025 there, so two and a half grams, but you're okay. I was talking about next year in 2025, or you guys were saying that you would have higher grade. Oh, okay, yeah. All right, and then just a question on the capital, the non-capitalized stripping and underground development at FAC river of 109 million. Is that related to?

William Lytle: Will we see some more of that in 2025 as well, or is that just a 2024 spend? Yeah, I don't think the mind plan is completely out to 25 as far as the total's yet so I'm a bit. Let me just think about this a little bit.

Clive Johnson: Basically, you'll continue to see it through commissioning, so you know kind of that Q1 2025. Okay, all right. Thank you. That's it for my question. Sorry, I'm the queen of mundane questions, but they helped me in the modeling and thank you for hosting this call. It's really very, very helpful. Thanks. I'll just sort of want to say, Anita, just on your cost profile, what we've seen, I mean, fuels a big part of our cost rate in Bali.

Clive Johnson: It's around 30%. So we have the benefit of solar, which is helping us reduce milk operating costs and we're expanding the solar farm, but also what we saw last year as fuel prices despite market fluctuation in the states that's the fuel price. And it was pretty consistent through the year.

Clive Johnson: So really what we're assuming, when we look at the 24 is the kind of fuel cost levels you see for H and fallen diesel, as we go through the bladder part of 23 we're assuming we're going to see that 24 and just for your information. Okay, thank you. Okay.

Carey MacRury: The next question is from Carrie McCruery with Cannecord Genuity. Please go ahead.

Carey MacRury: Hey, good morning, guys. Just one for me. Billy mentioned the underestimation of labor hours. I'm just wondering how you're positioned with the workforce up there. Are you fully stacked up for 2024 and any issues in getting people up there? No, we haven't. It's actually been the opposite. We've, I think it's kind of a B2 thing. It's, you know, quad bikes to talk about treating people with respect to trend and accountability.

William Lytle: At the end of the day, because of the things you're doing, they're a little bit different than other minds, we haven't had any problems drawing employees and we are in really good shape for 2024 and 2025 as far as specialty. So I don't know if it's the reputation of a construction team and operation team or if it's what we're doing as far as, you know, within the local communities that we've had very good response to labor requests.

William Lytle: Maybe just one other one. Just some of the solar plans at the color. Can you just remind me, remind us of what the benefit do you expect of that either from lower d-look consumption or, you know, what your power cost will drop to? Well, we had three. Maybe you faced one.

William Lytle: Three is one for starters, you know, the solar plant. We saw that phase one capacity reduced our male operating cost by close to 20%. Fairies think something like 1%.

William Lytle: Right, so the expansion you can expect to see an incremental propagating. So it does have a real significant impact on those day-to-day operating costs. Yeah, and maybe just to add to that, really, the whole concept originally was that we were going to go to a zero generator operator scenario during the day, operation scenario during the day. That changed a little bit with the underground coming online. But overall, it's going to cut out the daytime operation of the power plant to 0.

Unknown Executive: Hi, great. Thanks, guys. This concludes the question and answer session.

Clive Johnson: I'd like to turn the conference back over to Clive Johnson for any closing remarks. Thank you, Robert. Thank you for your attention and your good questions. I just, you know, like to close with, I think the news releases are extensive. I think it's informative.

Clive Johnson: And the key back to key point back is that 2024 is going to be another success for you for the company, but I said transition. I know you're that for Cola, and also what we're doing at Goose, because I think that the commitment we have as a company, and we believe that our authority of our shareholders support the idea that we are responsible for a company, but we're also very, very much a growth company.

Clive Johnson: And that's the path we're on. So 2025, we probably haven't talked about it enough, but 2025 is going to be a very good year for us with the significant increase in coal production. Goose and getting into better greater for coal and trucking more, and then of course the promise and the potential of things to see what things they can grow a lot to.

Clive Johnson: And finally, I would just like to extend the half of all B2Gold employees, our condolences are valid, so those of all in the tragic plane crash that happened in the north near the dietic mind. This is a, my top business and so dangerous business in certain ways. So our condolences to the family of those people that have perished in the plane crash yesterday. Well, we're all this together. So thank you for your time. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. [inaudible]

[music].

Thank you for standing by this is the conference operator, welcome to Beachy Gold Corp's Q4, 2023 production and 2024 guidance conference call. As a reminder, all participants are in a listen only mode and the conference is being recorded.

After the presentation, there will be an opportunity for analysts to ask a question.

You've joined 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 <unk>. Please go ahead.

Clive Johnson: Well. Thank you operator walked with one Oh, we're pleased to be here today and talk to your vote.

Clive Johnson: The fourth quarter.

Clive Johnson: Fourth quarter, we've had in 2023 that all should be yours.

Clive Johnson: So we're gonna do feel updates on what we see as guidance for 2024.

Clive Johnson: The windows 2025 or.

Clive Johnson: To meet your goals, so a very strong quarter gold production again in 2023, the fourth quarter editions, just putting $290 scope.

Clive Johnson: And for the year, we achieved our brewhouse Burger 2023 production guidance with just over a million ounces of silver.

Clive Johnson: Gold production, including 68000 ounces.

Clive Johnson: Awesome.

Clive Johnson: On television.

Clive Johnson: Oh this is C.

Clive Johnson: This is the eighth consecutive year.

Clive Johnson: Company for meeting she.

Clive Johnson: As seen in our guidance.

Clive Johnson: We're very pleased with the progress that we've made so 2024.

Clive Johnson: It's a year of some transition year for a company like ours, which was a producing company that is growing as well so in 2024.

Clive Johnson: I'll be a bit lower than we had seen in 2023 and there's a number of different reasons for that bill is going to go into some detail.

Clive Johnson: Michael will talk to us about where we are from a financial perspective, continuing to be in a very strong position. So for 2024.

Production will be lower primarily due to the.

Michael: Delay in getting a exploitation permit from the Governor O'malley.

Michael: Proceed with the trucking of heightened decent grade material separately material from that north of the Chicago complex called the region, which we were set to go on the roads golf and all the facilities are basically in place to start that we'd hope to start that in 2024.

Speaker Change: <unk> decided to do a learning a lot about the mining companies and while he's also came out.

Speaker Change: Whether the new mining code so you have that.

Speaker Change: They delayed the M C.

Speaker Change: Issuing.

Speaker Change: Licenses and tourists reputation relationships during that period of time.

Speaker Change: We got some very I think positive conversations with the government of a couple of weeks ago in Bali are.

Speaker Change: Making progress towards understanding the implications of the 2023 code.

Speaker Change: Atlantic Coast from all either toward Colo.

Speaker Change: Mine itself is still onto that.

Speaker Change: 2012 mining code in that certain Oh.

Speaker Change: Sure.

Speaker Change: There's locked into that in terms of the ownership of the project et cetera. So the conversations we happened to go not only were around the 2023 call. It because it applies to the rest of difficult long Beach. So we think there's a good economic case to trucks started tracking or.

Speaker Change: But he had a club area too difficult of a bill in the near term and we're continuing our conversations with the government to find out what that means in terms of finding a way that is profitable for the shareholders of our company, but also something you're going to cut metabolic fuels are getting their fair share or so.

Speaker Change: Me too.

Speaker Change: Conclude our discussion with the government body.

Speaker Change: In a position to start tracking lore.

Speaker Change: From the Anaconda area and elsewhere down to their so called Bill in that 80 to our desktop since a year of gold production silver, we're hoping to see that.

Speaker Change: Rotation program later in the year.

Speaker Change: To see that additional production late gosh 24.

Speaker Change: And it's a 2025 submission X P 80 tool called per year.

Speaker Change: Give us a breakdown on the.

Speaker Change: The cost associated with it I forgot what the terms of this is a year, where we have been about a capital spend which was planned in our life of mine.

Speaker Change: A bit lower grade that we've seen some of the years before we're down a bit of analysis as I mentioned because of the lack of a truck.

Speaker Change: And in terms of tailings pond, which is going very well the tailings pond construction.

Speaker Change: And also we're expanding the solar plant.

Speaker Change: So that's pre stripping so those are some of the issues that are hitting us.

Speaker Change: This year in 2024.

Speaker Change: Our cost of our and our all of our all in sustaining costs still a mystery to us why the accounting rules suggest that if you spend a lot of money of the tailings pond.

Speaker Change: Which is going to tell you.

Speaker Change: He too has facilities when you spend that money in a year and you're going to use it for 10 years why someone decided that you cannot write that off over 10 years, you have to think of it in the year, so that bumped up our Oh, it's just any costs.

Speaker Change: Which will affect it out I guess with the World Gold Council.

Speaker Change: Our powers to visa determine where it can be.

Speaker Change: Years versus one year.

Speaker Change:

Speaker Change: So we're looking forward to a very strong.

Speaker Change: Turning 25, you will see with all of these things.

Speaker Change: Things, we're doing this year such as tailings.

Speaker Change: So the pre strip et cetera, we're looking for in 2025 will be underground at Kohl's. This will of course come on line that Bill's kind of give us a good update on what goes on.

Speaker Change: Where we are in the progress of construction.

Speaker Change: The.

Speaker Change: Extra one is almost completed we'll start trucking.

Speaker Change: As shown in the second week of February but about the how to schedule. The project overall the latest schedule four.

Speaker Change: The first gold production ending with quarter of 'twenty 'twenty four and.

Speaker Change: The other things that will that's like an intricate and impact on 2025 of those pads. It goes will be up and running in the first quarter, obviously, we will be integrating tough for Claude.

Speaker Change: Were looking at us and increasing gold production. Additionally, the Grandma lottery approach. It will come at you view, we're studying that comes out in the first part of the year sorry in the first half of the year.

Speaker Change: But at the end of the second quarter, which will look at all of our people. The first time as one company owning it.

Speaker Change: Looking at maybe is there a better smaller project for Gamma watch it we always push that because we got to go by any companies in the joint venture, we always push it to the large ramped up the production.

Production looking to produce so around 354 of desktops for senior housing.

So the first time that we're looking at maybe a lower capital cost smaller project with a heartbeat.

Speaker Change: Court.

Speaker Change: The deposit.

Speaker Change: If it makes sense to maybe pretty Saturn 50, your tours desktops grab watching so that's got to come into view as well. So it's a comedy show a goose.

Speaker Change: Production coming on line for 300 ourselves to see Europe, starting in the first quarter trade 25 of the potential grab a lot to it gives us a good growth profile from existing assets.

Speaker Change: We will continue of course to look at other opportunities. We've got a very strong exploration budget again this year and we look at M&A, but we're not really looking to add development projects in our portfolio we have crews.

Speaker Change: But we're.

Speaker Change: Developing and also the protection to grab a lot of things. So we're not going to be likely to go out of this market to look at M&A activity, while continuing to focus on and create a good exploration opportunities.

Operator: Thank you for standing by. This is the conference operator. Welcome to BT Gold Corporation's Q4 2023 production and 2024 guidance 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 1 on your telephone keypad.

Speaker Change: Such as what we've done in terms of investing in junior companies looking to joint venture with junior companies on the exploration.

Speaker Change: Ration side.

Speaker Change: With that I think I'll hand, it over to bill at those kind of gives a summary of what I said, but a little more detail the capital expenditures for this year I forgot and talk about.

Speaker Change: The capital cost of goods as you'll see in the news release or a little bit higher than we had originally projected bill will talk to you about the reasons why that is why we believe that we're well on track with this new budgeted.

Operator: Should you need assistance during the conference call, you may signal an operator by pressing star then 0. I would now like to turn the conference over to Clive Johnson, President and CEO of H2Gold. Please go ahead. Thank you, operator. Welcome, everyone. We're pleased to be here today to talk to you about the fourth quarter, the fourth quarter we have had in 2023 and also the year's production. And also, we're going to give you an update on what we see as guidance for 2024 and give you a bit of a window into 2025. So a very strong quarter of gold production again in 2023, the fourth quarter, reducing just under 290,000 ounces of gold. And for the year, we achieved our upper half of our 2020 production guidance with just over a million ounces. School of Production, including 68,000 ounces of tribute oil from production from Calvert. Ah, this is the best of the...

Speaker Change: Let them around $1 billion to complete construction and as I said earlier, we are definitely.

Speaker Change: We definitely feel very comfortable with our schedule of producing gold from Houston in the first quarter of 2025, So I think with that I'll hand, it over to go in Mexico toxicity Prepays.

Speaker Change: We decided to tap into the prepaid market to maintain a very strong financial position that youll have a lot of capital. So that's coming up this somebody that we pioneered with the back of it because you're building for coal in 2016 and that was to tap into the new paid golf markets is a great source of cheap financing.

To allow us to them two to complete the construction of the full cohort bill it might facilities, but remember that we were on schedule on budget it for color but.

Speaker Change: Because of the dropping dramatic drop in the gold price into 2016, so he didn't have sufficient.

Clive Johnson: This is the 8th consecutive year exceeding our guidance. We're very pleased with the progress that we've made. So 2024 is a year of some transition for a company like ours, which is a producing company that is growing as well. So in 2024, production will be a bit lower. And there are reviews of that.

Speaker Change: First street are about $125 million short of regional league settings and building our.

Speaker Change: I'll bet Shneur I'll skip so.

Speaker Change: So we were the first company to new gold.

Speaker Change: Hey.

Speaker Change: So corporate financing and that was a great pricing at the time for us.

Speaker Change: Because people anticipated that we would do an equity issue to complete construction of Nicola and Oh.

Speaker Change: Doctors are driven down to actually a sense sure.

Clive Johnson: Bill's going to go into some detail, and Michael will talk to us about where we are from the financial perspective, continuing to be in a very strong position. So for 2024, the production list will be lower primarily due to the delay in getting an exploitation permit from the governor of Mali to proceed with the trucking of high-decent grade material, saccharide material, from the north of the Focola complex in the Anaconda region, which we were set to go, and the roads are built, and all the facilities are basically in place to start that. We hope to start that in 2019. The government decided to do a mining audit in honor of the mining companies in Mali and also came out with a new lighting code, so we had, uh, that they delayed the... So, issuing licenses in terms of reputation during that period of time.

Speaker Change: And with anticipation of a large dilutive equity offering we didn't do that with his prepays that took a small percentage of our gold production and use that to fund the necessary funds to compete for call. It a.

Speaker Change: A lot of companies have a coffee that now there's quite a carbon type of financing and Mike will walk you through why we did that in Hawaii, its very beneficial to the company of a long trip. So he was in a very strong financial position as we go through a transition year in 2024 was just in transitioning that for.

Speaker Change: Call up and also transitioning in the context of millions of consumer So the company remains very focused on being that.

Speaker Change: As possible go producer, but also across the company.

We're well on track with their book with our growth projects to continue that journey. So without I think I'll have him. When he goes can you give a little more color for golub capital.

Speaker Change: Capital spend.

Speaker Change: So talk about diffuse project.

Clive Johnson: So we had some very positive conversations with the government a couple of weeks ago in Mali, making progress towards understanding the implications of the 2023 Code, the Manikos from Mali, the Focola mine itself is still under the 2012 Mining Code and has certain, certain factors locked into that in terms of ownership of the project, etc. So the conversations we had with the government of Mali were around the 2023 code because it applies to the rest of the Fukuoka region. So we think there's a good economic case to start tracking more, from the Anaconda area to the Fukuoka Dome in the near term, and we'll continue our conversations with the government to find out what that means in terms of finding a way that is profitable for the shareholders in our company but also something where the Government of Bali feels they're getting their fair share. So we're hoping to conclude our discussion soon with the Government of Bali and be in a position to start tracking more, from the Anaconda area and elsewhere, down to the Toccoa Bill, and that could add 8,200,000 ounces of Gold Production, so we're hoping to see that. Transportation Permit later in the year.

Speaker Change: Okay. Thanks Clive.

Speaker Change: I guess I wanted to start a little bit with just once again reiterating the 2023, even though it kind of at the halfway point, we were down a little bit on ounces, we managed to make everything up and had an excellent year across all three sites and if you look at the call. It in particular.

Speaker Change: Fourth quarter, but it was a very good quarter for Franco and it really led us into setting up for 2024. If you go back and think about what was in the <unk>.

Speaker Change: Feasibility study or the technical study that we've put out related to kind of a life of mine production you would see the 'twenty 'twenty four was always a bit of a down year as we basically worked our way through phase sat on some of the lower grade and the higher zones that are things that in and then into the rich parts. So what we have is we're now.

Speaker Change: We will be now we'll be taking out the bottom of phase six which is which is high grade and at the same time, bringing things settling down so in the second half of the year it'll be instant Redstone Arsenal on page seven.

Speaker Change: Additionally at for coal.

Speaker Change: As Clive said, we've got a.

Few kind of one off projects.

Clive Johnson: I'm looking to see the additional production late 2024 and into 2025, so that could be 180,000, 200,000 ounces of coal per year. Those are going to give us a little breakdown on the... The cost associated with Focola, in terms of this is a year where we have a significant amount of capital spend, which was planned in Mike's life. We have a bit lower grade than we've seen in some of the years before. We're down a bit on ounces, as I mentioned, because of the lack of a truck door.

Speaker Change: Which which are raising up the EBIT the all in sustaining cost.

Speaker Change: We had the tailings facility. The tailings facility was had been compressed a little bit originally that was designed to be in 2023 and 2024 over the course of both those years. They were a little late I'm getting us the permits that we have condensed the construction buried a little bit.

Speaker Change: That's gonna be approximately $45 million to complete with most of that occurring in 2024 with the intent to bring that online in the second quarter of 2025.

Clive Johnson: We have a big spend in terms of the tailings pond, which is going very well, the tailings pond construction. And also, we're expanding the solar plant. So it's pre-stripping.

Additionally.

Speaker Change: There is the solar plant once again late delivering the permit so we were delayed a little bit but that that project will come online in 2020 for.

Clive Johnson: So those are some of the issues that are hitting this year, 2024, in terms of our costs and our overall sustaining costs. There's still a mystery to us why the accounting rule suggests that if you spend a lot of money on a tailings pond, or we're just going to turn this around. The details for Sylvia's When you spend that money in a year, you're going to use it for 10 years. Why someone decided that you cannot write that off over 10 years? You have to take the head in the years. That's bumped up on all its sustaining costs and will fight it out, I guess, with the World Gold Council and other powers to be determined.

Speaker Change: That project has been in approximately $19 million left and that project is on schedule.

Speaker Change: Also got the underground everyone's aware I think that the underground is designed to replay.

Speaker Change: Replace some of the lower grade ounces out of phase eight in the early in the early years with higher grade ounces, we have we.

Speaker Change: We have a plan to develop at the underground mine really by the end of 'twenty 'twenty four we're gonna be at the face of yore. So our intent really is this year to develop a study and get it to the government to get approvals to start mining in this.

In the first half of 2025, that's an additional $64 million to completion.

Clive Johnson: So we're looking forward to a very strong 2025. We will see with all the things we're doing this year, such as tailings, facility, and pre-strip, etc. We are looking forward to 2025; we'll be underground. Cole of Goose will, of course, come online, and Bill's going to give us a good update on Goose and where we are in nature.

Speaker Change: So overall, all those things should really set us up nicely going into 2025, and just talking a little bit about the regional stuff and how it plays in.

Speaker Change: So the retail stop everyone is aware that we have.

Speaker Change: In fact completed almost all of the infrastructure.

Speaker Change: For the for the regional stuff. The road is in all of the facilities up at our men in total and then tackle her in.

Clive Johnson: Progressive Construction. The X-ray load is almost completed, and we'll start tracking along the Ash Road in the second week of February, about a month ahead of schedule. And the project overall remains on schedule for the First Call Production. Thank you. Bye.

Speaker Change: And really we're basically what we're talking about now is just finishing up clothing up buildings and then getting a permit and then pre stripping. So if you think about what the original.

Speaker Change: Our plan was that we announced in kind of late 2022, all of that was supposed to happen in 2023. So really if you just take the 2023 program and shifted into 2024, what youre going to see is that.

Clive Johnson: The other things that will affect and impact 2025 are the fact that Goose will be up and running in the first quarter. Obviously, we will be into a better grade at FICOA, and we're looking at a significant increase in global production. Additionally, the Grand Velocity Project will come into view with a study that comes out in the first part of the year.

There's the potential in 2024 and develop those 18000 ounces that would be way out in Q4, and what that assumes is that as soon as we're able to get a permit and by the first half of the year and then we have three months of pre stripping and then of course, we'd be on or in the in Q4 of 2024, that's the same schedule.

Clive Johnson: Sorry, in the first half of the year, at the end of the second quarter, when we'll look at Gramelotti for the first time as one company owning it and looking at maybe using a better, smaller project for Gramelotti. We always pushed that because we had two gold mining companies in the joint venture. We always pushed it to the large end of production, looking to produce somewhere around 350 to 400,000 ounces a year from Cremolante.

Speaker Change: Then we would have had in 2023 and what that allows us to do with that allows us to push that 80 to 100000 ounces, which were would have originally come on in 2020 for those ounces will now come on in 2025. So really we see we see that we are that we're right on schedule. If in fact you assume.

Speaker Change: We start in Q1 of 'twenty 'twenty four for developing a regional stop.

Speaker Change: Bob anything else you'd like me to talk about Pensacola before I go on to Goose.

Clive Johnson: For the first time now, we're looking at maybe a lower capital cost, smaller project with a higher grade, to see if it makes sense to maybe produce 150 or 200, that's enough so you can grab a lot. So that's going to come into view as well. So the combination of Goose.

Speaker Change: So I think that's good though.

Bob: Okay. So goes is probably the one with which.

Speaker Change: Is drawing the most attention on this call.

Speaker Change: I'll start out with with all of the positives to the project remains fully on schedule that the mill is actually ahead of schedule.

Clive Johnson: Production coming online for 300,000 ounces a year, starting in the first quarter of 2025. And the potential creme de la creme gives us a very good growth profile from existing arsenic. We will continue, of course, to look at other opportunities. We've got a very strong exploration budget again this year, and we look at M&A, but we're not really looking to add development projects to the portfolio. We have a goose that was, is developing, and also the potential of Gravel Latte. So we're not going to be likely to go out in this market to look at M&A activity.

Speaker Change: When the last time, we talked we had been shipping stuff out to the MLA and getting ready for the winter Ice road. The winter Ice road construction is fully under construction right now we're in the process as you know doing something a little different whether you're looking for from kind of working not only from the ends but also from the middle out.

Speaker Change: So we are talking about F. E N aired during the second week of February opening up the ice road, we are anticipating with fuel that we're gonna be bringing 3000 loads approximately plus minus.

Speaker Change: Down the ice road.

Speaker Change: As we previously indicated we have plenty of time for that we've got the additional trucks on site at the MLA.

Clive Johnson: We'll continue to focus on great exploration up here, such as what we did in terms of investing in junior companies and looking to joint venture with junior companies on the exploration side. With that, I think I'll hand it over to Bill, and Bill's going to give us a summary of what I said, but in a little more detail, and the capital expenditures for this year at FOCOLA and talk about goose, and the capital cost of goose, as you'll see in the news release, are a little bit higher than we had originally projected. Bill will talk to you about the reasons why that is.

Speaker Change: And we don't see any.

Speaker Change: Reason that that shouldn't happen that still remains on the critical path, but that's in very good shape.

Speaker Change: On the.

Speaker Change: Additional construction side, the underground is going very well the ventilation raises and the team is working very good I'm trying to get down to that crown pillar.

Speaker Change: The open pit is going very well, we've got all of the trucks operating on schedule that is obviously once again something that's very critical to get that tailings or that open pit has to be mined out by kind of Q1 2025, because that'll be the tantalum facility from day one.

Clive Johnson: We believe that we're on track with this new budgeted estimate of around a billion dollars to complete construction, a great source of cheap finance to allow us to live, complete the construction, and the Cola Bill and my facilities. You might remember that we were on schedule and budgeted for Cola. Because of a dramatic drop in the gold price in 2016, we certainly didn't have sufficient funds. We were about $125 million short of reaching the funding for building the Viaduct Mine.

Speaker Change: Regarding the cost. This is this is one I am trying to give a lot of fun.

Speaker Change: What is necessarily the best way to say this but basically.

Speaker Change: The situation is as we took over the project.

Speaker Change: Kind of midstream from Sabina Sabina had done their feasibility studies Sabina had ordered the first staff, which was coming up the ice road in 2023 and have put together a schedule.

Speaker Change: We obviously did extensive due diligence to get through that but a lot of things.

Clive Johnson: So we were the first company to do gold prepaid, and it was a great financing at the time for us. Those people anticipated that we would do an equity issue to complete destruction of FECOMA, and our stock was driven down to actually $0.80 a share, with anticipation of a large deluge of equity offerings. We didn't do that.

Speaker Change: We're either.

Speaker Change: Snow or you couldn't really identify how it all fit together once you started putting it together so our guys.

Speaker Change: On site and we started working through it and we identify things, which be too wanted to do differently to improve productivity, but also reliability and a lot of that really relates to kind of some big buckets not just run through some of these.

Clive Johnson: We did it pre-pays instead. I took a small percentage of gold production, and they used that to fund the necessary funds to complete for coal. A lot of companies have copied that now.

Speaker Change: The underground the initial underground.

Clive Johnson: It's quite a common type of financing, and I'm going to walk you through why we did that and why it's very beneficial to the company in the long term to leave us in a very strong financing position as we go through a transition year, 2024, which is the transition year, and also transitioning in the context of billionaires. So the company remains very focused on being that, a responsible gold producer but also a closed company. And we're well on track with our growth projects to continue that journey. So with that, I think I'll have the ability to give you a little more color on COLA capital spend and also... talk about the peace. Okay, thanks, Clyde.

Speaker Change: Was done by Sabina really didn't have a lot of capital spending on things like some of the consumables for underground and a lot of the a lot of the actual support which was mainly for developing the underground. So that when you talk about the difference between kind of that 90.

Speaker Change: And in the $120 million difference most of that comes in equipment and support equipment from the underground, which was never just ordered and I have to I'm going to come back to this several times.

Speaker Change: It's not just the cost of the equipment that you're really talking about because.

Speaker Change: It had been discussed and agreed that we were going to fast track. The underground a lot of this stuff had very heavy logistics cost with it.

Bill: I guess I want to start a little bit by just, once again, reiterating that 2023, even though it kind of was the halfway point, we were down a little bit on ounces, we managed to make everything up and had an excellent year across all three sites. And if you look at Focola in particular, the fourth quarter was a very good quarter for Focola, and it really led us into setting up for 2024. If you go back and think about what was in the feasibility study or the technical study that we put out related to kind of the life of mine production, you would see that 2024 was always a bit of a down year as we basically worked our way through phase 7, some of the lower grade in the higher zones of phase 7, and then into the rich parts. So, what we have is we're now, we'll be developing, we'll be taking out the bottom And at the same time, bring phase 7 down.

Speaker Change: It.

Speaker Change: As quickly as possible and then putting it on.

Speaker Change: C 130 to bringing in the site so expensive transportation costs associated with that and it's the same thing with with some of the other things, which are which were outstanding we found that we had oh.

Speaker Change: Ager redesign of some of the mail structures to include a lot of the piping.

Speaker Change: And a lot of the venting.

Speaker Change: All of that stuff had to be rewarded and it's not just that we're paying for it now and then paying for the logistics that go with it remember we already bought it wants shipped at the site and now we're doing the whole thing again on a schedule. So here you're paying at least double but we felt that it was really important to make sure that the guys have the equipment and the necessary.

Speaker Change: Terry facilities in order to build it in time for the Q1 2025 season.

Speaker Change: So what we're talking about is really.

Speaker Change: Mill infrastructure underground infrastructure.

Speaker Change: Other big one is the is the labor.

Bill: So, the 2nd half of the year will be into the rich zone also in phase 7. Additionally, at Focola, as Clive said, we've got a few kind of one-off projects which are raising the all-in-sustaining cost. We have the tailings facility, which has been compressed a little bit.

Speaker Change: And I saw one of the questions from one of the analysts. This morning related to is that something that's going to carry on with the answers no. What happened was when they win Sabine It did their feasibility study they.

Speaker Change: They didn't include the requisite number of hours for people working on site and so we've obviously taken the operational stuff and turned it into a b to model, but when we went back and looked at the construction model. What we noticed that they didn't have enough hours not not the actual day rates, but the hours per day that people would be working and so that that was a big.

Bill: Originally, that was designed to be in 2023 and 2024. However, over the course of both those years, they were a little late in getting us a permit, so we've condensed the construction period a little bit. That's going to be approximately $45 million to complete, with most of that occurring in 2024, with the intent of bringing that online in the second quarter of 2025. Additionally, there is the solar plant.

Speaker Change: On their part.

Speaker Change: You know we're in the process of correcting that.

Speaker Change: And then the last big one really is the powerhouse the powerhouse was.

Speaker Change: Undersized and definitely undersized when you included the additional underground so we're in the process right now of ordering additional power supplies and once again all of that stuff has to be flown in so that'll be an expensive proposition as well and all of that adds up to the large.

Bill: Once again, late delivering the permit, so we were delayed a little bit, but that project will come online in 2024. That project has approximately $19 million left, and that project is on schedule. We've also got the underground, everyone's aware I think that the underground is designed to replace some of the lower grade ounces out of phase eight in the early years with higher grade ounces.

Speaker Change:

Speaker Change: Overrun at U C. But most of it really are things that will not be carried on into operation and once we get a go on what we are hoping for is a more reliable and a and a better running facility.

Bill: We have a plan to develop that, the underground mine, really by the end of 2024, we're going to be at the face of the ore. So our intent really is this year to develop the study and get it to the government to get approvals to start mining in the first half of 2025. That's an additional $64 million to completion. So overall, all those things should really set us up nicely going into 2025. And just talking a little bit about the regional stuff and how it fits in.

Speaker Change: Anything else there quite a bit I can talk about.

Speaker Change: Well I think that.

Speaker Change: Some people are probably curious just think what what is the risk factor going forward with the additional Oh, Yeah Cathy Smith.

Speaker Change: And also how much money, we spent so far both in terms of between let's Sabina some of the useful whether they spend and also what we expect and what's left to spend in certain construction capital so to get to one.

Speaker Change: All up and running.

Bill: So the regional stuff, everyone is aware that we have, in fact, completed almost all of the infrastructure for the regional stuff. The road is in, all of the facilities up at Menencoto and Ventaco are in, and really, basically, what we're talking about now is just finishing it up, closing up buildings, and then getting a permit and then pre-stripping. So if you think about what the original plan was that we announced in kind of late 2022, all of that was supposed to happen in 2023. So really, if you just take the 2023 program and shift it into 2024, what you're going to see is that there is the potential in 2024 to develop those 18,000 ounces. That would be way out in Q4.

Speaker Change: Yeah sure so let's start with the risk when we we think that really the risk of additional overruns is low given the fact that once again, we have now ordered really everything.

Speaker Change: Which is in the MLA, obviously that stuff is coming up the winter road. We're in a process now of putting in orders for the 2025 Ice road and we're not seeing where I basically get all of that has been included in the budget and yet increases in price.

Speaker Change: The labor issues have been addressed in the updated budget. So we don't see that as an issue. So overall, we see the need.

Speaker Change: Additional cost overruns as a low risk proposition to date, we spent a little bit more than $700 million on the project and so basically with more than 70% of the budget already.

Bill: And what that assumes is that we're able to get a permit in about the first half of the year, and then we have three months of pre-stripping. And then, of course, we'd be hauling ore in Q4 of 2024. That's the same schedule that we would have had in 2023. And what that allows us to do is it allows us to push that 80,000 to 100,000 ounces, which would have originally come on in 2024. Those ounces will now come on in 2025.

Speaker Change: <unk> spent and committed.

Speaker Change: For 2024 in Q1, 'twenty 'twenty five we really believe that the risk of exceeding that budget is kind of a risk.

Speaker Change: Okay. Thanks book I think it's important to point out that I think there's I think bill and the team has done an extraordinary job. When you look at the fact that this is not the way we normally like to build and grow the company beat you go because normally we like to find projects that are at the feasibility stage. So that we can design. The mill, we can decide what we want to go to do it.

Bill: So really, we see that we are right on schedule if, in fact, you assume that we start in Q1 of 2024 to develop a regional stop. Clive, anything else you'd like me to talk about for FICO before I go on the goose? So I think that's a good bill. Okay, so Goose is probably the one which is drawing the most attention on this call.

Speaker Change: That away.

Speaker Change: In this situation, we gotta accompany a single asset company, who only asset who is interested in trying to build the mine and they were very much.

Speaker Change: Obviously, a very extremely tight budget and they were the only alternative for them to be able to finance the project.

Speaker Change: What's unfortunately to rely on private equity and the streamers stood.

Bill: I'll start out with all of the positives. So the project remains fully on schedule. The mill is actually ahead of schedule. When the last time we talked, we had been shipping stuff up to the MLA and getting ready for the winter ice road. The winter ice road construction is fully under construction right now.

Speaker Change: To the point, where they were giving up a lot of the value of the project upfront to try and get into production of an extraordinarily tight budgets. So we took it over when it was partway into construction and that's one of the reasons why we're obviously disappointed with an increase in the capital cost because we pride ourselves for years of being able to reach a gold doing things on budget on schedule.

Bill: We're in the process, as you know, of doing something a little different than what we did before, working not only from the ends but also from the middle out. And so we are talking about, at the end or during the second week of February, opening up the ice road. We are anticipating, with fuel, that we're going to be bringing 3,000 loads, plus minus, down the ice road. As we previously indicated, we have plenty of time for that. We've got the additional trucks on site or at the MLA, and we don't see any reason that that shouldn't happen.

Speaker Change: In this case I think we did an extraordinary job of picking up the pieces of what was going to be a very challenged project.

Speaker Change: With a single asset company with a lot of lot of construction experience and with a financing.

Painful and extremely expensive financing with private equity, which I think everyone knows that I bought a big setup I think it's very destructive in our industry. The cost of these financings. So we've managed to there's a lot of pressure on the view of the steel to get the deal closed to be honest with you that April of last year before they drew down the financing from <unk>.

Speaker Change: And all the other triggers that came in to finance the project, which probably you know could cost up to $200 million actually just to finance. The project. If you add up all the bells and whistles and the prepayment of a cold.

Bill: That still remains on the critical path, but that's in very good shape. Honey, on the additional construction side, the underground is going very well. The ventilation raises in the team are working very well. I'm trying to get down to that crown pillar.

Speaker Change: Get a nasty things that were required because traditional classroom was not available.

Speaker Change: Previous solar project because of the buckets skepticism about building a mine into north a single asset company and and with the.

Bill: The open pit is going very well. We've got all of the trucks operating on schedule. That is obviously, once again, something that's very critical because that tailings or that open pit has to be mined out by kind of Q1 2025. But that'll be the tailings facility from day one. Regarding the costs, this is one I'm trying to give a lot of thought to what is necessarily the best way to say this. But basically, the situation is that we took over the project kind of midstream from Sabina. So Sabina had done their feasibility studies. She had ordered the first equipment, which was coming up the ice road in 2023, and had put together the schedule. We obviously did extensive due diligence to get through that, but a lot of the things were either in snow or you couldn't really identify how it all fit together once you started putting it together.

Speaker Change: Backward experience in terms of bromine project. So we've done a remarkable job this last year.

Speaker Change: We believe picked up just sit on the flight part with construction in last year.

Speaker Change: Simeon at plant two ships to go from Montreal to the Arctic Ocean adopt Bachelor show that and then build dashboards.

Speaker Change: To bring everything I'll say, well, we actually were able to send six ships up to bring everything we needed to complete construction of that at all like all the fuel et cetera would be needed for that.

Speaker Change: Future of approach it so sabina did a lot of good things. So they took a good things in terms of exploration permitting contentious relationships and great relationship, particularly.

Speaker Change: At Association.

Speaker Change: So ashish and of our partners and we just had some great meetings with them here This week and we're so.

Speaker Change: Lot of things that subpoena did well.

Speaker Change: In those areas. So there are a lot of the sabena team and of course, the critical people in our view.

Bill: So our guys got on site, and we started working through it, and we identified things which B2 wanted to do differently to improve productivity but also reliability, and a lot of that really relates to kind of some big buckets, and I'll just run through some of these. The underground, the initial underground that was done by Sabina really didn't have a lot of capital spending on it, things like some of the consumables for the underground and a lot of the actual support which was needed for developing the underground. So when you talk about the difference between kind of that $90 and $120 million difference, most of that comes in equipment and support equipment from the underground, which was never just ordered. And I have to; I'm going to come back to this several times.

Speaker Change: Wanted to stay with this great project in terms of permitting in terms of indigenous relations.

Speaker Change: Some of the some of the technical people digitally exploration team joined our team and I think that's one of the only reason so we were able to actually rescue or keep to the schedule first gold production in the first quarter of 2025. So just to give you a little bit of background. So Sabina did a good job that they did for sure now.

Speaker Change: Unequivocally did a great team for the shareholders.

Speaker Change: Accepting that offered to allow me to go to to.

Speaker Change: To complete a friendly takeover premium to build is fine.

Speaker Change: Do it and do it well so we remain extremely optimistic about the juices.

Speaker Change: A major asset.

Speaker Change: Mike I'm going to walk us through why we did it.

Speaker Change: Chose to take out financing bell and in a non dilutive prepayment of gold production.

Bill: It's not just the cost of the equipment that you're really talking about, because it had been discussed and agreed that we were going to fast-track the underground. A lot of this stuff had very heavy logistics costs with it, ordering it as quickly as possible and then putting it on C-130s to bring it into site. So expensive transportation costs are associated with that. And it's the same thing with some of the other things which were outstanding.

Speaker Change: To make sure that we maintain a very strong financial position as we go through this transitional year of the capital spend as we need it for call it et cetera, which were planned as expected, but also goose and finish off the project in Maine.

Speaker Change: Maintaining our dividend and maintaining a strong cash position. So I think with that I'll pass it over to Mike to talk about the globe prepaid that platelets.

Mike: And then we'll open it up for questions.

Mike: Okay. Thanks Clive.

Bill: We found that we had a major redesign of some of the mill structures to include a lot of the piping and a lot of the venting; all of that stuff had to be reordered. And it's not just that we're paying for it now and then paying for the logistics to go with it. Remember, we already bought it once.

Speaker Change: On the prepaid financing I think quite well that's not really the goal is just to strengthen and maintain our balance sheet liquidity. He was in great shape as we get through 'twenty, four and beyond frankly, you know them. So.

Speaker Change: Prepays.

Speaker Change: We looked at the gold market, we've got a goal of near record highs and it's been over 2000 Bucks.

Speaker Change: Over the quarter and for two quarters now.

Speaker Change: The first time ever I think that's happened so you've got to look at the gold price and say this is a critical market at very attractive rates.

Bill: Don DeMarco, mill infrastructure, underground infrastructure. Another big one is labor. And I saw one of the questions from one of the analysts this morning related to is that something that's going to carry on? Well, the answer is no.

Speaker Change: And with the Prepays you you have to balance when you're blessed with production. So it's a great financing for an operating company I think just because if you have production you.

Speaker Change: So we're able to price them using a forward price of just under 2200 Bucks 21, 19 with the average Cros.

Bill: What happened was when Sabina did their feasibility study, they didn't include the requisite number of hours for people working on-site. And so we've obviously taken the operational stuff and turned it into a B-2 model, but when we went back and looked at the construction model, what we noticed is they didn't have enough hours, not the actual day rates, but the hours per day that people would be working in. So that was a big miss on their part, and we're in the process of correcting that. And then the last big one really is the powerhouse.

Speaker Change: Yeah.

Speaker Change: And.

Speaker Change: Yes.

Speaker Change: For a total of 265000 ounces and we're going to deliver those ounces in the second half of 'twenty five once goose's up and running in the first half of 'twenty six I stress to he sort of corporate level Prepays, we can source of production from anywhere.

Speaker Change: And when you look at when you look at this as a financing if if if you looked at number of ounces, we've got it <unk>.

Speaker Change: Deliver and forward price that we were able to use in that so if you. If you assume today's gold prices that's not.

Bill: The powerhouse was undersized and definitely undersized when you included the additional underground. So we're in the process right now of ordering additional power supplies. And once again, all that stuff has to be flown in. So that'll be an expensive proposition as well.

Speaker Change: Not effective financing costs over at two 7%.

Speaker Change: So when I look at that compared to the revolver, which is probably 80% plus in that region, it's an attractive financing.

Speaker Change: So where we are and then I can I'd like to give a shout out for a week for a person to get banks were in their C. N B C. I N G Nashville, I'm, even want to say thank you as always for their support.

Bill: And all that adds up to the large, Overrun that you see, but most of it really are things that will not be carried on into operation. And once we get it going, what we are hoping for is a more reliable and better running facility. Anything else there, Clyde, you'd like me to talk about?

Speaker Change: They were there as clay mentioned, we did we did pre phase before syndicate took part in that and that's the game.

Speaker Change: So just give you a snapshot where we are at Q3, we had approximately $300 million in the bank cash and I'd like to kind of keep it 350 to 300, that's to me that's a decent level of liquidity for the group our size doing the kinds of things. We're doing we haven't we haven't drawn the line at the end of Q3, but as we indicated we were starting to drive.

Clive Johnson: Well, I think that, um... Some people are probably curious to think about what the risk factor going forward with the additional... Oh, yeah....caps that's been... And also, how much money we have spent so far, Bill, in terms of between what Sabina and some of the useful money they spent, and also what we've spent and what's left to spend in terms of construction capital to get the mine up and running. Yeah, sure

Speaker Change: So by the end of the year, we've drawn 150, so we're still.

Speaker Change: I think youll see we haven't put our year end results I'd get but like I said I'd like to keep that cash somewhere around $300 million, whereas the line drawn 150 stores sold strong net cash position and our objective with the Prepays is first of all we will pay down the line with the portion of the Prepays and then and then we'll have the balance of the prepaid plus.

Bill: So let's start with the risk one. We think that, really, the risk of additional overruns is low, given the fact that once again, we've now ordered really everything, which is in the MLA. Obviously, that stuff is coming up the winter road. We're in the process now of putting in orders for the 2025 ice road. And we're not seeing where basically all of that has been included in the budget and yet increases in price. The labor issues have been addressed in the updated budget.

Speaker Change: Full undrawn line to finance ourselves as we go through and fund all of the kinds of things that we wanted to do but to give you a picture I think you know what what what are the use of those funds is to really maintain our flexibility like you say both through 'twenty four and beyond you you've heard there is some significant capital development in Mali for Colette.

Speaker Change: And some of those are multiyear projects, so they've been going on that.

Bill: So we don't see that as an issue. So overall, we see the additional cost overruns as a low risk proposition. To date, we have spent a little bit more than $700 million on the Goose project. And so basically, with more than 70% of the budget already spent and committed, you know, for 2024 and Q1 2025, we really believe that the risk of exceeding that budget is kind of low. Thanks, Bill.

Speaker Change: The tailings the underground.

Speaker Change: We started those prior year.

Speaker Change: Most of them will be complete or nearing completion by the end of 'twenty. One and then of course also proposed regional we've got some spend in there just to get that ready and so when we get those licenses were ready to go.

Speaker Change: We want to maintain our aggressive.

Speaker Change: The exploration program of $63 million in the budget for exploration of the brownfield land for Greenfield and they could certainly give more details as needed there.

Speaker Change: Priority you know big project versus goes just to keep that running through smoothly and get ourselves into first Gulf War in 2025, Q1, 'twenty five and maintain our 24 dividend at the current rate because we've indicated before it and also to give ourselves the capacity and flexibility for for maybe some investment.

Clive Johnson: I think it's important to point out that I think, I think Bill and the team have done an extraordinary job when you look at the fact that this is not the way we normally like to build and grow the company and beat you gold because normally, we like to find projects that are at the feasibility stage and we can design the mill, we can design what we want to build and do it our way. In this situation, we had a company, a single asset company, the only asset who was interested in trying to build a mine, and they were very much on a very, obviously a very extremely tight budget. And they were, the only alternative for them to be able to finance the project was unfortunately to rely on private equity and the streamers, to the point where they were giving up a lot of the value of the project up front to try and get it in production on an extraordinary type budget, so we took it over when it was part way into construction and that's one of the reasons why we're obviously disappointed with an increase in the capital cost because we pride ourselves for years at B1 and B2 Gold at doing things on budget and on schedule.

Speaker Change: Visions that might come later in 'twenty four right that arent in the budget right now, but quite as touched on them. So first one would be grandma, how do we see grandma loyalty.

Speaker Change: By by the half year, we will have a picture of what we think that newer streamlined grumbling T operation could look like so if we want to move forward.

Speaker Change: Doing this pre phase now helps us have that.

Speaker Change: Sort of flexibility to make some decisions and also I don't actually think.

Speaker Change: And well talk to Namibia, so far but we're looking at the Antelope lunar Springbok or some version of like bouncy.

Speaker Change: Animal.

Speaker Change: It should go to which we think is an exciting underground prospect it could help supplement mill feed.

Speaker Change: And in those stockpiles years ago with Dakota, where if this pans out and we can bring me the underground at <unk>.

Clive Johnson: In this case, I think we did an extraordinary job of picking up the pieces of what was going to be a very challenging project with a single asset company with a lot of construction experience and with a very painful and extremely expensive financing with private equity, which I think everyone knows that I'm not a big fan of. I think it's very destructive in our industry, the cost of these financing. So we managed to, there was a lot of pressure on this deal to get the deal closed, to be honest with you, in April of last year before they drew down the financing from Orion and all the other troopers that came in to finance the project, which probably, you know, could have cost up to $200 million, actually, just to finance the project.

Speaker Change: You can look at putting some kind of a model on it and perhaps adding some higher grade ounces in those stock all years. So those are the kinds of things, giving yourself flexibility allows us to look forward past the end of 'twenty four and really.

Speaker Change: The prepays in the on it.

Speaker Change: You know, it's an opportunistic financing with the gold price the way it is and it's I think it's a cheap financing for a company like ourselves when we have.

Speaker Change: Like I say, we're blessed with production.

Speaker Change: Great. Thanks, Mike maybe I think one of the topics that AR.

Clive Johnson: If you add up all the bells and whistles and the pre-payment of gold and all the other nasty things that were required because traditional financing was not available, the previous owner of the project because of the market's skepticism about building a mine in the north as a single asset company and with the lack of experience in terms of building projects, we've done a remarkable job this last year. We picked up this thing on the fly partway through construction in the last year.

Speaker Change: Is that a lot of peoples mind is Molly and the cover the volume go money and all that kind of gets your comments about that.

Speaker Change: From our recent trip down there and are in negotiations with the government. So.

Speaker Change: I think it's really important to keep it in context, Molly can spend for decades of very good countries in terms of investment and building gold mines.

Speaker Change: Successful go lives with a history of Randgold about Barrick and other companies including ourselves.

Clive Johnson: Samina had planned two ships to go from Montreal up to the Arctic Ocean, the docked Vassar Stainlands, and then build ice... to bring everything on site, well, we actually were able to... send six ships up to bring everything we needed to complete construction and all the fuel, etc. we needed for the future of the project. So Sabina did a lot of good things, and they did good things in terms of exploration, permitting, and indigenous relationships.

Speaker Change: It is it is a country that has been.

Successful working with the various governments we've been through it.

Speaker Change: In terms of understanding that a cold or something very 20% of the GDP of the country and I think it was the largest taxpayer in the country.

Speaker Change: And it pays over one $3 billion in taxes and benefits to the people of Bali. So we put up all the risk let me to build for color.

Speaker Change: $7 billion.

Speaker Change: The people of the government of Mali, and realized a little over 50% of the economic value of difficult online.

Clive Johnson: We have a great relationship with the Contingent Indian Association who are our partners and we just had some great meetings with them here this week. So a lot of things that Sabina did well in those areas and a lot of the Sabina team did critically, in our view wanted to stay with this great project in terms of permitting and in terms of indigenous relations and some of the some of the uh technical people the exploration team joined our team and I think that's one of the only reasons that we were able to actually rescue or keep to the schedule of first coal production in the first quarter of 2025 so um just to give you a little bit of background so Sabina did a good job and they did for sure now unequivocally did a great thing for the shareholders by accepting an offer to allow B2O to.., to complete a friendly takeover of the Silicon Premium to build this mine and do it well.

Speaker Change: I think thats a pretty good deal we used to go at risk when they get 50% off.

Speaker Change: The economic benefit so.

Speaker Change: The new government or the government is in place today that feels that they want more of the pie and bally fill volumes and self determination that those states, which I think are great things to aspire to over time, they don't happen overnight. So at the end of the day, we're in conversations with the government the a lot of the.

Speaker Change: A lot of the parameters are governed for Cologuard locked in a protocol of options in 2012 mining code and the government clearly recognizes just as recently as a couple of weeks ago. When we were down there good for coolers into the 2012 code.

Speaker Change: 2023 codes is looking basically to increase the government's interest significantly.

Speaker Change: And gold mining projects in Mali.

Speaker Change: The regional the mutual loop areas that we would have a truck or from our governor those 2023 coach so the conversations with the government would be understanding the 20th Street food and frankly respectfully.

Clive Johnson: So we remain extremely optimistic about the goose as a major asset, and Mike's now going to walk us through why we chose to take out financing now in a non-dilutive prepayment of gold production to make sure that we maintain a very strong financial position as we go through this transitional year of the capital spends we needed for coal, etc., which were planned and expected, but also goose and finishing off the project, maintaining our dividend, and maintaining So I think with that, I'll pass it over to Mike to talk about the gold prepayment financing, and then we'll open up for questions. Okay, thanks, Clive.

Speaker Change: We had a great relation with government, but showed a couple of weeks ago, where they consider beach old or they mentioned to us that they consider be toward sort of the best.

Speaker Change: Foreign investor in their country and they recognize the value of co production. They clearly are on the same page.

Speaker Change: With us and necessity, they want to see trucking or in the near term.

Speaker Change: Two increased production of coal as we mentioned by potentially 8200 person doses a year by trucking ore down to the mill. So that's the conversations that are going out to understand the 'twenty tracery coat and understand the economic implications.

Speaker Change: Doesn't make economic sense to truck or she'll work with the government. We think there's we think there's a.

Speaker Change: Comscore for mutual benefit both from the government from the people of Mali to continue to increase production, that's a cool by trucking ore.

Mike: Yeah, just on the prepaid financing. I think Clive touched on it. Really, the goal is just to strengthen and maintain our balance sheet liquidity, keep us in great shape as we get through 2024 and beyond. So, we looked at the gold market. We've got gold at near record highs, and it's been over $2,000 for over a quarter right for two quarters, basically the first time ever, I think that's happened. So you've got to look at the gold price and say, this is a good, very attractive gold bracelet. And with the prepaid, you have the benefit.

Speaker Change: We talked to the government about the fact that we had two potential stages of growth at.

Speaker Change: For color complex, the first was trucking ore.

Speaker Change: We talked about which was very low cost. We spent most of the capital to do that we think can be quite profitable. The second was to potentially go a little bit of additional mill, Indiana, Columbia area, perhaps something around $250 million capital a vessel to actually build a second mill based on some of the exploration results receded.

Speaker Change: Not only in the oxidize separately material, but also in the sulfate.

Speaker Change: Well frankly, those plans are very much on hold I'm trying to understand the implications of the 2023 mining code. So at the end of the day.

Mike: When you're blessed with production, it's a great financing for an operating company to have production. So we're able to price them using a forward price just under $2,200. $2,190 was the average across.

Speaker Change: It's a competition for our investment dollars around the world.

Speaker Change: Where are we going to spend our investment dollars. So now he's got a good place to be investing with a reasonable tax regime and many companies, including ours are more importantly, the people of Mali has benefited from that.

Mike: It's, you know, for a total of 265,000 ounces, and we're going to deliver those ounces in the second half of 2025, once Goose is up and running, and the first half of 2026. I stress, too, these are corporate-level prepays. We can source the production from anywhere.

Speaker Change: So the question becomes how does the new mining code.

Speaker Change: Bali still an attractive place to go mills and official go much and we're trying to understand that a little bit better and try to work with the government to understand the implications of some of the proposed tax limit or increases that the government's looking for so at the end of the day we have.

Mike: And when you look at this as a financing, if you look at the number of ounces we've got to deliver and the forward price that we're able to use, and that's though, if you assume today's gold prices, it's a net effective financing cost of around 2.7%. So when I look at that compared to the revolver, which is probably 8% plus in that region, it's an attractive finance. And so where we are, and actually, I'd like to give a shout out to four of our syndicate banks. We're in there, CIBC, ING, National, and BMO.

Speaker Change: <unk>.

Speaker Change: Capital doors, we're prepared to spend around the world as we've done so successfully.

Speaker Change: It's a competition to be able to spend our money potentially at the Columbia study just kind of come out of the first half of this year indicates that we can build up a mine there and invest.

Speaker Change: Significantly in a new model of Columbia, or do we build a second mill.

Speaker Change: And Mr Cola complex et cetera, et cetera, or other opportunities. So at the end of the day gold production has been a very important part historically for centuries actually if you look at the history of Mali.

Volume is always a quality and it is Craig. So we're encourage you and the government to work with US I think we have a good relationship we'd have regulation with government as they talk to US a couple of weeks ago about being sort of the poster child of the gold standard for divestment in their country. So I think there's a level of understanding between us and them.

Mike: I want to say thank you, as always, for all their support. They were there, as Clyde mentioned; we did the pre-phase before our syndicate took part in that, and they took part in this again. So just to give you a snapshot of where we are, at Q3 we had approximately $300 million in the bank cash, and I like to keep it $250 to $300. To me, that's a decent level of liquidity for a group our size doing the kind of things we're doing. We hadn't drawn the line at the end of Q3, but as we indicated, we were starting to draw at Q4, so by the end of the year, we' So we're still, I think you'll see, we haven't put our year-end results up yet, but like I said, I like to keep that cash somewhere around $300 million. We had the line drawn at $150, so we're still strong in that cash.

Speaker Change: Level of commonality to see what works for because of the people of Mali.

Speaker Change: Sure.

Speaker Change: Profitable.

Oh any company, that's looking to grow responsibly as we've done so Robert Mystic that we're going to the next month or so continued our conversations with the government and get.

Speaker Change: Get on with the business of trucking ore from the <unk>.

Speaker Change: Restaurant, a cold call Blackstone.

So.

Speaker Change: You know theres a lot of rumors out there there's a lot of.

Speaker Change: People getting half the story Unfortunately.

Speaker Change: That's what matters the government of Mali understands the importance of gold production in the country. This government previous covenants and I'm sure if future governments understand that and we're confident the weekend that other companies continuing to work with them.

Mike: And our objective with the prepaids is, first of all, we'll pay down the line with a portion of the prepaids, and then we'll have the balance of the prepaids plus a full on drawn line to finance ourselves as we go through and fund all the kinds of things that we want to do. And to give you a picture, I think, of what the use of those funds will be, it's to really maintain our flexibility, like I say, both through 24 and beyond. As you've heard, there is some significant capital development in Mali and Focola. And some of those are multi-year projects, right, so they've been going on the tailings, the underground, solar, we started those last year, most of them will be complete or near completion by the end of 24, and then, of course, Focola Regional, we've got some spending in there just to get that ready, and so when we get those licenses, we're ready to go.

Speaker Change: To for the betterment of all.

Speaker Change: About.

Speaker Change: So.

We are bottom line is we've done it we've done around the world, which would be the vehicle. We've been one of the most successful companies I think and Goldman et cetera, what we have been in managing risk and understanding it.

Speaker Change: Best way to manage both the risk is to deliver on the promises you make.

Speaker Change: These countries and these governments. So we're confident that we're gonna be able to continue to work successfully with the.

Speaker Change: Government of Mali for Colo, but also going forward. So I think with that we'll open it up for questions.

Speaker Change: So operator, if you can bank people too drastic crushing circuit.

Certainly.

Speaker Change: We will now begin the analyst question and answer session and join the question queue. You May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any key.

Mike: We want to maintain our address, exploration program of $63 million in the budget for exploration, both at Brownfield and for Greenfield, and Vic could certainly give more details if needed there. You know, big project versus goose, just to keep that running smoothly and get ourselves into the first Gold Core in 2025, Q125, and maintain our 24 dividend at the current rate, as we've indicated before, and also to give ourselves capacity and flexibility for maybe some investment decisions that might come later in 2024, right, that aren't in the budget right now, but Clive's touched on them. So, the first one would be Gramelotti. How do we see Gramelotti?

Speaker Change: To withdraw your question Press Star then two.

Speaker Change: Our first question is from <unk>.

Speaker Change: Habib with Scotia Bank. Please go ahead.

Habib: Hi, Clive and BT team Ah Congrats on a strong end to the year and for 'twenty 'twenty four seems like like you mentioned is a transitional year with remaining capex spend at goose and sustaining projects in 2024. So just a couple of questions from me number one.

Speaker Change: Bill gave us a good overview of again, why the goose Capex increase and I'm actually glad that you are making these changes now rather than having issues at startup but is there anything in this new guidance or plans that you are looking to do in 'twenty 'twenty four.

Speaker Change: Bill that's still worrying your team or is there anything that's still outstanding that you want to change now rather than kind of have in play it's a startup.

Mike: You know, by the half year, we'll have a picture of what we think that newer, streamlined Gramelotti operation could look like. So, if we want to move forward, we have Kevin and This pre-page now helps us have that sort of flexibility to make some decisions. And also, I don't actually think... And we'll talk to Namibia so far, but we're looking at the Antelope Zone or Springbok or some version of a bouncy animal.

Speaker Change: Well.

Speaker Change: Oh.

Speaker Change: I'll comment on that briefly and give it to bill I mean, the history. It would be wouldn't be to go to the suite build mills with the expectation that they're going to ramp up very quickly. We don't we don't we don't build a mill to produce a go to fix the mill and fix all the other problems that we rebuild them to startup his sharp well, what dissipating lab, especially with a very high grade stockpiles were going to have.

Speaker Change: So I'll pass it over to Bill.

Mike: And Ochoa Cota, which we think is an exciting underground prospect. It could help supplement mill feed in those stockpile years at Ochoa Cota, where if this pans out, we can bring the underground into inferred, some kind of model on it, and perhaps add some higher grade ounces in those stockpile years. So those are the kind of things that give us flexibility; let's just look forward past the end of the 24. And, really, the prepaids in the end are an opportunistic financing with the gold price the way it is. And I think it's cheap financing for a company like ourselves when we have, like I say, we're blessed with production. Thanks, Mike.

Bill: Yeah. Thanks, Clive that's a very valid point, we don't anticipate.

Bill: Startup issues I would tell you I like.

Bill: Your question is almost like what's still keeping you up at night after changing the capital cost and I would say.

Bill: We're still looking at the power issue right that they really do.

Bill: And they missed it on the power and if if you followed US we are looking very closely at a at a wind plant up there, which we think is going to help us offset that that'll probably that's probably that's not a capex issue Paul that's.

Bill: That's something that hopefully, we will get somebody with Dallas power across the fence, but what that allow us to do is really reduce the amount of fuel that we can bring in that we have to bring in each year and cut down on the tankage because that's really that was one of the big big misses on the soybean side. So that's probably the one thing is still I'd say, but it's not.

Clive Johnson: I think one of the topics that is on a lot of people's minds is Mali and the government of Mali and gold mining in Mali. I'd like to make a few comments about that from our recent trip down there and negotiations with the government. So I think it's really important to, in context. Mali has been for decades a very good country in terms of investment in building gold mines. Successful gold mines with the history of Rancor, Malbaric, and other companies, including ourselves. It is it is a country that has been successful working with the various governments.

Bill: It's not an additional capital cost and it certainly is not going to impact startup.

Speaker Change: Okay. Thanks Bill for that.

Bill: That's kind of a segue to my next question in terms of the ramp up that goes in 2025 production guidance. It was kind of around that one.

Bill: <unk> hundred 50000 ounce Mark in 2025, it was below our expectations are and kind of below the latest Tech report, which was colleague production around 300000 ounce Mark Bill are you just being kind of conservative going into this ramp up in 'twenty 'twenty fiber has something else changed in how you see production in the first year.

Clive Johnson: We've been through, in terms of understanding that gold is 20% of the GDP of the country, and I think we're the largest taxpayer in the country, and they paid over $1.3 billion in taxes and benefits to the people of Mali. So we put up all the risk money to build Fokola. $600,000,000, and the people in the government of Mali have realized a little over 50% of the economic value of the Fukola Mines. I think that's a pretty good deal.

Bill: No I mean once again the.

Bill: Previous technical reports started kind of a month zero. So I think if you look at.

Bill: We're still we're still saying approximately 300000 ounces a year at a minimum over that over the first five years on average I said nothing changes there, but if you start on let's say we used March 31st as you know at the end of Q1, and then you have a ramp up of three months, it's not that hard to get to you know to get to the mid two hundreds.

Clive Johnson: We take all the risk, and they get 50% of the economic benefit. The new government, or the government that's in place today, that feels that they want more of the pie and molly for valiance and self-determination, and those things, which I think are great things to aspire to over time, they don't happen overnight. So at the end of the day, we're in conversations with the government, you know, a lot of the parameters that govern Focola are locked in for Focola under the 2012 mining code, and the government clearly recognized, just as recently as a couple of weeks ago when we were down there, that Focola is under the 2012 code. The 2023 code is looking basically to increase the government's interest significantly in gold mining projects in Mali.

Speaker Change: No I don't.

Speaker Change: I was actually kind of surprised with that but that came out in the market that that was a bit below expectations, we see that as really kind of exactly what the mine plan said.

Speaker Change: Okay. Thanks for the clarity on that as well.

Speaker Change: And just switching gears on the Galapagos regional I guess a flight.

Speaker Change: You've got to give us a very good overview in terms of you know how great. The relationships are with the million government. How kind of talks are progressing is there any kind of you know kind of a point that you guys are on it.

Speaker Change: Kind of color that you could provide as to you know.

Speaker Change: Is that money in government kind of serious about you guys. Moving forward is is that you know.

Speaker Change: Are they are they kind of get going around giving you that women I mean, whereas kind of thing stuck out right now.

Clive Johnson: The regional areas that we want to track ore from are governed under the 2023 code. So the conversations with the government are being understood under the 2023 code, and frankly, respectfully, we have a great relationship with the government. I showed them a couple of weeks ago what they consider beach gold, and they mentioned to us that they consider beach gold sort of the best foreign investor in their country, and they recognize the value of gold production, and they clearly are on the same page with us in the sense that they want to see trucking aboard in the near term to increase production at Focola, as we mentioned, by potentially 80,000 to 100,000 ounces a year by trucking ore down to the

Speaker Change: Well 60 2023 mining.

Speaker Change: Mining code is relatively deal that in fact, we just came out with it.

Speaker Change: And it's the implementation decree of that very recently in the last couple of weeks. So we're going through that with them I think that.

Speaker Change: You know I mean, I was I was after.

Speaker Change: After this I suppose but we have to be in this business. So it's got to be but at the end of the pay I think that we had good productive meetings with the government to really understand the two best trades you called the implementation of it and what it really means not for you all as we said not for sure but what it means for regional production. So it's very important like many other governments around.

Speaker Change: The world in the gold mining industry developing countries. They don't kill the goose that led us to go back.

Clive Johnson: So that's the conversations that are going on to understand the 2023 Code and understand the economic implications, and does it make economic sense to truck ore. So we're working with the government now. We think there's a path forward for mutual benefit for us and the government and the people of Mali to continue to increase production at Focola by trucking in ore. We talked to the government about the fact that we have two potential stages of growth. The Focola Complex, the first was trucking in ore, as we've talked about, which is very low cost.

Speaker Change: And that's the balance we need to strike between attracting investment companies like ourselves to build the next goal by Hudson Valley et cetera. So we're in an unusual position there because we're the ones in the country that house near term scenario of trucking ore, which is going to be very beneficial to beach gold and its all of its stakeholders, including the government.

Speaker Change: People of all of them, because we don't have to blast across Europe, we simply take it out of the ground and we've already built the roads. So we can we can quake economically hopefully a mine additional ore, but in terms of the second mill or other other foreign investors coming in and building a whole bunch of Mali as I mentioned earlier, it's in competitive situations.

Speaker Change: For our investment dollars. So we're really working with the Mali government from a respectful position and mutual success, we've achieved in the past to understand.

Clive Johnson: We spent most of the capital to do that, but we think it would be quite profitable. The second was to potentially build an additional mill in the Anaconda area for perhaps something around $250 million capital investment to actually build a second mill based on some of the exploration results we've seen, not only in the oxidized saponin material but also in the sulfides as well. Frankly, those plans are very much on hold. I'm trying to understand the implications of the 2023 mining code. So, at the end of the day,

Speaker Change: The limits and implications so knowledge or volumes self determination is something that we all aspire to at the end of the day I think that it happens over time, there is not a bounty of company that I know of or the government is going to spend $600 million to build a mine like for cooler at the end of the day they need for the best.

Speaker Change: They need responsible respectful for an investment like other companies in each quote.

Speaker Change: It's such an important part of their economy. So we're confident that.

Clive Johnson: There's competition for our investment dollars around the world and where we're going to spend our investment dollars. So Mali's been a good place to be, invested in with a reasonable tax regime, and many companies, including ours, and more importantly, the people of Mali, have benefited from that. So the question becomes, under the new mining code, is Mali still an attractive place to build mills and additional gold mines? And we're trying to understand that a little bit better and trying to work with the government to understand the implications of some of the proposed tax and other increases that the government is looking for. So at the end of the day, we have, you know, the... Capital dollars we're prepared to spend around the world, as we've done so successfully, are the mainstay in the Focola Complex, et cetera, et cetera, or other opportunities. So at the end of the day, gold production has been a very important part historically for centuries, actually, if you look at the history of Mali and Mali's economy, and it is today.

Speaker Change: With good consultation.

Speaker Change: Consultation is we're having.

Speaker Change: The government and we will find a balance to continue to attract foreign investment and go away.

Speaker Change: And rally.

Okay.

Speaker Change: Okay. Thanks, Thanks for the color on that Oh, well that's it for me are really thanks for hosting this call and thanks for taking my questions.

Speaker Change: Pennsylvania good questions. Thank you.

Speaker Change: The next question is from Don Demarco with National Bank Financial. Please go ahead.

Don Demarco: Thank you operator, and good morning climbing team.

Don Demarco: So bill you mentioned that the mill is ahead of schedule is there any chance for her.

Bill: First part earlier than Q1, 'twenty five and later.

Bill: So you'd be asking that question.

Bill: [laughter].

Bill: So that quickly and then I'll give it over to bill.

Bill: Well our length of course.

Bill: Let bill answer that.

Bill: Then I'll give you my view.

Bill: So the answer is really it's almost a foot race now between can we mine out the Eagle test fast enough versus building the mill. So it really I don't see it happening much faster.

Bill: If it is I would say it's immaterial.

Clive Johnson: So we're encouraging the government to work with us. I think we have a good relationship; we have a very good relationship with the government, as they talked to us a couple of weeks ago about being sort of the poster child for the gold standard and foreign investment in their country. So I think there's a level of understanding between us and a level of commonality to see what works for the government and the people of Mali and what works for a profitable company. Goldmining Company is looking to grow responsibly, as we have done so. I'm optimistic that we're going to, in the next month or so, continue our conversations with the government and get on with the business of trucking ore from the rest of the Fokola complex down to Fokola Mills. There are a lot of rumors out there; unfortunately, a lot of people are getting half the story.

Bill: Okay.

Bill: Okay, if I was a betting man.

Bill: We were in this industry are sort of making bets every day, but in terms of bidding that I would think that given the track record of Bill's team and charter Hall. Our R. R. Miller just in the mills that he bills I think we're going to have a really good ramp up and start up and I'll just leave it at that.

Speaker Change: Okay. Thanks.

Speaker Change: So then my next question sticking with good there was some messaging and the relief that some of the extra spend might reduce opex, particularly underground development someone.

Speaker Change: But.

Speaker Change: Recognize that the group goes project lack of mine plants can be finalized in the first quarter of 'twenty 'twenty four.

Speaker Change: Does any of that additional spend potentially lead to higher production.

Speaker Change: Might've been forecasting the feasibility study.

Speaker Change: Well once again that so all that stuff, but unfortunately, we didn't get to choose the mill Sabina did and it's a good good mill, we can work with it but it doesn't really have the expansion potential at a beach, who go mill would normally have when you look at for cohort, where we started and where we are today.

Clive Johnson: The fact of the matter is the government of Mali understands the importance of coal production in the country and will continue to work. The best way to manage political risk is to work on the promise of a link between these countries and these governments. So we're confident that we're going to be able to continue to work successfully with the government of Mali on Fokola and also going forward. So I think with that, we'll open it up to questions. So, operator, if you can invite people to ask those questions, I certainly will. We'll now begin the analyst question and answer session. To join the question queue, you may press star then one on your telephone keypad.

Speaker Change: Dramatic.

Speaker Change: Expansion of the Bill because we built it with the idea of expansion. So we don't really have the benefits of that.

Speaker Change: It goes with the Bill that we have the adult doggie restroom estimate.

Speaker Change: Yeah.

Yeah, So I I don't in the short term the answer is no I mean, what we've done really the mill is is kind of as quite understand is not to be too designed now kind of at that 25% design factor, even though to get bigger and so what you're really talking about is can we bring higher ounces forward and that's really what we.

Speaker Change: We've done enough current mine plants.

Operator: You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, press star then two. Our first question is from Always Habib with Scotiabank. Please go ahead. Hi Clive and the B2 team. Congratulations on a strong end to the year, and for 2024, it seems like, like you mentioned, it is a transitional year with remaining capex spend at Goose and sustaining projects in 2024. So just a couple of questions from me. Number one, Bill gave us a good overview of why the Goose capex increased again. And I'm actually glad that you are making these changes now rather than having issues at startup.

Speaker Change: Sabina kind of conceptually talked about it without putting numbers on it and at the end of the day that that.

Speaker Change: <unk> taken the crown pillar kind of in the early years and that's exactly what we're doing and so unless unless we have.

Speaker Change: Some success with some down plunge higher grade exploration I don't see that in the short term.

Speaker Change: Okay, but I want to say that not all of it.

Speaker Change: We're spending we have a large exploration budget once a tornado measures of Vic This year 28 million U S. So we have a large exploration budget to do so why is that well because theres tremendous exploration potential and if you're waving your arms a little bit down the road. If we have continued success I mean, one of the holes we drilled the envelope deposit is 100 minutes below the previous.

Speaker Change: Well extended.

Speaker Change: Extending on the drilling and we haven't.

Speaker Change: 2020 meters of eight grabs clearly these there's numerous shows unless 80 kilometer long trend of banded iron formation. So we're spending that money in exploration because we believe the potential.

But is there anything in this new guidance or plans that you're looking to do in 2024? Bill, that's still worrying your team? Or is there anything that's still outstanding that you want to change now rather than kind of have in place at the startup? Well, I've been on all of them.

Speaker Change: His tremendous there and once again in the second it ourselves build goes.

Speaker Change: The mill and build it well, but the potential for additional mills on that property in the futures is probably not an unrealistic goal or objective.

Speaker Change: Okay.

Clive Johnson: I'll comment on that briefly and give it to Bill. In the history of B&B Togolos, we build mills with the expectation that they're going to ramp up very quickly. We don't build a mill to produce some gold to fix the mill and fix all the other problems in the mine.

Speaker Change: Her final question just shifting to Maui.

Speaker Change: Quite it sounds as though you've had some pretty constructive discussions with the government there.

Speaker Change: Is there a possibility that the regional mining that's planned to start in 2025.

Speaker Change: Or potentially mining from other future regional prospects will be grandfathered under an airline earlier code make the 'twenty 'twenty 'twenty.

Clive Johnson: We build them to start up well, and we're anticipating that, especially with the very high-grade stockpile we're going to have at Goose, so I'll pass it over to Bill. Yeah, thanks, Clive. That's a very valid point. You know, we don't always anticipate startup issues.

Speaker Change: Good.

Speaker Change: Yeah, I don't think that's going to happen I think that.

Speaker Change: Government serious carrabba's.

Speaker Change: The new mining code I think the key is through the issues around that I'd, rather have the duplication of the 'twenty two 'twenty three recorded fully understanding that at the end of the day, so but I thought I'd be the implementation of the 20th century code will be important and they've just come out with that and that will be part of the conversation. So we're not gonna grandfathers element to this.

Bill: I would tell you, your question is almost like what's still keeping you up at night after changing the capital costs. And I would say, you know, we're still looking at the power issue, right? They really, they missed it on the power.

Speaker Change: The 2012 code.

Speaker Change: All the aspects of Cola are protected well, they're 12 quarters of every $1 that such as ownership et cetera bedroom. There's a new code we need to find a way to work within the context of the new code to see if it makes sense for all of our stakeholders.

Bill: And if you followed us, we are looking very closely at a wind plant up there, which we think is going to help us offset that. That's not a capital expenditure issue for us. That's something that hopefully we'll get somebody to sell us power across the fence. But what that allows us to do is really reduce the amount of fuel that we have to bring in each year and cut down on tankage. That was one of the big misses on the Sabina side.

Speaker Change: Two actually truck or and we're confident that there's a way for the government strip motivated.

Speaker Change: Revenue from go away.

Speaker Change: For me to go to the fastest way of the country to get more revenue from gold mining used to reach an understanding of how we can profitably.

So that's probably the one thing fuel, I'd say, but it's not an additional capital cost, and it certainly is not going to impact startups. Okay, thanks, Bill, for that. And that kind of segues into my next question.

Speaker Change: Truck or too difficult to know.

Speaker Change: Okay. Thank you very much that's all for me good luck with 'twenty 'twenty four.

Speaker Change: Thanks, Doug.

Speaker Change: Yeah.

Bill: In terms of the ramp up at Goose in 2025, production guidance was kind of around that, you know, 250,000 ounce mark in 2025. It was below our expectations and kind of below the latest tech report, which was calling for production around the 300,000 ounce mark. Bill, are you just being kind of conservative going into this ramp-up in 2025, or has something else changed in how you see production? In the first year?

Speaker Change: The next question is from Anita Soni with CIBC World markets. Please go ahead.

Anita Soni: Hi can you hear me.

Anita Soni: Yes.

Anita Soni: Sorry, I was on speaker phone.

Anita Soni: Few questions just firstly on the cycle of complex.

Anita Soni: Saying that theres a possibility that.

Anita Soni: You would not it depending on the royalty rate that you wouldn't be trucking that or could.

Speaker Change: Could you.

Speaker Change: Sort of give us an indication on how you said it was a low cost originally but on how what.

Speaker Change: What kind of constantly be thinking about if you were going to truck it to say that we can try to understand that the economic when the royalty rate country.

Bill: No, I mean, once again, the previous technical report started kind of at month zero. So I think if you look at it, we're still saying approximately 300,000 ounces a year, at a minimum over the first five years on average, right, so nothing changes there. But if you start on, let's say, March 31, which is, you know, the end of Q1, and then you have a ramp-up of three months, it's not that hard to get to, you know, the mid 200. So I wasn't actually kind of surprised that when that came out in the market, it was a bit below expectations.

Speaker Change: Well I mean, where are we at in terms of the industry.

Speaker Change: The study of that Bill.

Speaker Change: Where are we at an interesting study of the <unk>.

Our own internal study in terms of trucking war.

Speaker Change: I think I think we're going to come out with for coal complex studies by the end of the first quarter. That's what we'd said for both for coal mine updated.

Speaker Change: Yeah, So I think on the face of it it's quite attractive because you've got some good grade material. There you don't have to.

Speaker Change: Lost crushing and we've already built most of the infrastructure that maintenance buildings from the trucks. The Roes we were just down a couple of weeks ago.

We see that as really kind of exactly what the mine plan said. Okay, thanks for the clarity on that, Bill. And just switching gears on FECOLA, FECOLA Regional, I guess, you know, Clive, you gave us a very good overview in terms of, you know, how great the relationships are with the Malayan government, and how the talks are progressing.

Speaker Change: Where we're really ready to go when we get the you know with the government. We will have some pre stripping to do for a few months, but that won't be into <unk>.

Speaker Change: And so because of the situation where the mill is already built that people know and the nature of the grade of.

Speaker Change: The saprolite material that we're seeing for Golar complex to the doors, we were pretty confident that there's an economic case there.

Speaker Change: And that grade was around two gram per ton does that is that correct.

Clive Johnson: Is there any kind of, you know, a little bit Well, I think the 2023 Mining code is relatively new. In fact, I just came out with an implementation decree of that very recently in like the last couple of weeks, so we're going through that with them. I think that, You know, I was, I was...

Speaker Change: Yeah, I think it's we're doing about them.

Speaker Change: Two grams or more.

Speaker Change: Hi.

Speaker Change: Yeah, it could be a little higher once again, we're gonna be selectively mining. So you know the study is going to look at the various iterations, but two gram certainly makes money.

Speaker Change: Okay and then.

I just wanted to talk about the Holocaust currently on the operating cost side, there are a little higher than I would've.

Clive Johnson: But we have to be in this business; someone's got to be. But at the end of the day, I think that we had good, productive meetings with the government to really understand the 2023 code, its implementation of it, and what it really means. As we said, not just for coal, but what it really means for regional production. So it's very important, like many other governments in the world in the gold mining industry developing countries, that they don't kill the goose that lays the golden egg, and that's the balance they need to strike between attracting investment of companies like ourselves to build the next gold mines in Mali, etc. So we're in an unusual position there because we're the ones in the country that have a near-term scenario of tracking oil, which is going to be very beneficial. It's such an important part of the economy, so we're confident that with good consultation, as we're having, that the government will find the balance to continue to attract foreign investment and Goldman in Maui. Thanks for the color on that, Clive, as well.

Speaker Change: Can you just are you seeing inflationary pressures.

Speaker Change: Versus last year, even on the unit cost of consumable and assuming you know what's happening at the same thing is happening in for Carla.

Speaker Change: So are you talking about for Golar, yeah, Yeah, Yeah, yeah, Okay, sorry, yes.

Speaker Change: <unk>.

Speaker Change: I think.

Speaker Change: That should happen at the end of the day simply put out.

Speaker Change: Less ounces of production that for call. It this year because of those.

Speaker Change: The government delaying implemented.

Speaker Change: The exploitation permit to truck or some of that cost is 80 to 100000 houses and when the government cost of government that is well there are a portion of that so therefore simply put you have less houses to divide your cost by so therefore your costs are somewhat higher billings et cetera.

Speaker Change: Like Oh.

Speaker Change: Right.

You can say it.

Speaker Change: Only thing I can add to it is clearly we are at.

Speaker Change: It is an ounce issue is the main thing, but we are deeper in phase six right now right. So certainly on the mining side, the cost of being a little bit higher but we've got a very good handle on kind of the reagent costs without global purchasing we've got a very good handle on kind of the the mailing cost the power cost the labor cost. So all the all of the main drivers you've got.

Speaker Change: A good handle on but it's just.

Speaker Change: Where we're at in our lifecycle of mine.

Speaker Change: Okay, well that explains that if your mining costs are higher because you are deeper in the pit and I assume that will change over into next year.

And so, that's it for me. Really, thanks for hosting this call and thanks for taking my question. Thanks Ovais, good questions. The next question is from Don DeMarco with National Bank Financial. Please go ahead.

Speaker Change: Yeah.

Speaker Change: We're coming right up into 37 right now.

Speaker Change: Okay.

Speaker Change: And then.

Speaker Change: And just.

Speaker Change: Thinking about 2025 article last mile you mentioned that you're going to be in higher grades at <unk>.

Don Demarco: Thank you, Operator, and good morning, Clive and team. So, Bill, you mentioned that the mill is ahead of schedule. Is there any chance of that?

Speaker Change: Nicola and Cardinal.

Speaker Change: Could you just tell us what kind of grades you were talking about there.

Operator: first pour earlier than Q1 25 in light of this. I've asked you to say that question. Well, I'll answer that quickly, and then I'll give it over to Bill. So the answer is really it's almost a foot race now between can we mine out the eco pit fast enough versus building the mill. So really, I don't see it happening much faster. If it is, I would say it's immaterial.

Speaker Change: So I don't think I said higher grade difficult line card or what I said was we'd be in a phase six in the first half of the year and in the bottom of phase six that's more high grade stuff.

Speaker Change: Plus two two and a half grams and then in the middle part of the year will be in phase seven and in the upper benches, which is lower grade and all kind.

Speaker Change: Got it.

Speaker Change: I dunno Gram Gram and a half area, but as we get that well enter back into the higher grades in the second half of the year and 37 back to that two and a half ground again.

Clive Johnson: OK. Okay, if I were a betting man... We're in this industry, you're sort of making bets every day, but as far as I'm concerned, I would think that given the track record of Bill's team and John Rahala, our medalist in the mills that he builds, I think we're going to have a really good ramp-up and start-up, and I'll just leave it at OK, thanks. So to my next question, sticking with Goose, there was some messaging in the release that some of the extra spend might reduce OPEX, particularly underground development, and so on. But, um... You know, we do recognize that the Goose Project Life and Mind Plan is going to be finalized in the first quarter of 2024. But does any of this additional spending potentially lead to higher production? them might have been forecast in the feasibility study. Well, once again, that's all, Bill. That's that. But unfortunately, we didn't get to choose the mill. Sabina did, and it's a good, good mill.

Speaker Change: Yeah, that's what I was talking about 2025 years that two and a half.

Speaker Change: Okay.

Speaker Change: I was talking about next year.

Speaker Change: All right guys.

Speaker Change: Everything that you read that have higher grade.

Speaker Change: Okay, Oh, Okay, Yeah, Yeah, all right and then.

Speaker Change: Just a question on the capital the non capitalized stripping underground development that back wherever Oh, the $109 million is there.

Speaker Change: Like what is that is that related to them.

We see some more of that in 2025 as well or is that just a 2024.

Speaker Change: Yeah, I don't think that I don't think the mine plan is completely out to 'twenty five as far as the totals yet so I'm a bit.

Speaker Change: Let me just think about this in a little bit.

Speaker Change:

Speaker Change: Basically you'll continue to see it through commissioning so.

Bill: We can work with it, but it doesn't really have the expansion potential that a B2 Gold mill would normally have. When you look at Focola, where we started and where we are today, there's been a dramatic expansion of the mill because we built it with the idea of expansion in mind. So we don't really have the benefit of that that that that that that that the bill that we have, and I'll do all of you as soon as I can.

Speaker Change: Kind of in that in Q1 2025.

Speaker Change: Okay Alright. Thank you that's it for my questions sorry on the cleanup mundane questions that.

Are they helped me in the modeling and thank you for hosting this call. It's really very very helpful. Thanks.

Speaker Change: Maybe I'll just throw one thing in Anita just on your cost profile, what we'd seen mutual is a big part of our cost right now.

Bill: Yeah, so I don't, in the short term, the answer is no. I mean, what we've done really, the mill is, is kind of, as Clive just said, it's not a B2 design mill, kind of with that 25% design factor able to get bigger. And so what you're really talking about is whether we can bring higher ounces forward. And that's really what we've done in our current mine plan is, you know, Sabina kind of conceptually talked about it without putting any numbers on it. And at the end of the day, that by taking the crown pillar kind of in the early years, that's exactly what we're doing. And so unless, unless we have high, you know, some success with some downplung higher grade exploration, I don't see that in the short term.

Speaker Change: It's around 30%. So we have the benefit of solar which is helping us reduce mill.

Speaker Change: Operating costs and we're expanding the solar farm, but also what we saw last year as the fuel prices despite market fluctuation the states the pure price and it was pretty consistent through the year. So really what we're assuming when we look into 'twenty. Four is the kind of fuel cost levels, you see furniture Bowen diesel as we go through the latter part of 'twenty.

Speaker Change: We're assuming we're going to see that in 'twenty four it just.

Speaker Change: For your information.

Speaker Change: Okay. Thank you.

Speaker Change: The next question is from carrying Mcqueary with Canaccord Genuity. Please go ahead.

Carrying Mcqueary: Hey, Good morning, guys. Just one for me Bill you mentioned, the underestimation of labor hours I'm, just wondering how your position with the workforce up there or are you fully staffed up for 'twenty 'twenty, four and any issues in getting people up there.

Don Demarco: Okay. But I would say that we're spending, we have a large exploration budget. I want to say 28 how many issues is it, Vic, this year? 28 million US.

Bill: So we have a large exploration budget at Goose and why is that? Well, because there's tremendous exploration potential and, if you wave your arms a little bit down the road, if we have continued success, I mean, one of the holes we drilled in is a hundred meters below the previous extent of the drilling, and we had a... 20 meters of 8 grams. Clearly, there are numerous zones on this 80-kilometer long trend of banded iron formation, so we're spending that money on exploration because we believe the potential is tremendous there. And once again, let's not get ahead of ourselves; let's build goose. With the potential for additional mills on that property in the future is probably not an unrealistic goal or objective. Okay, thanks. For the final question, just shift to Mollie.

Bill: No we haven't and it's actually been the opposite we've.

Bill: I think it's kind of a b two thing it's quite a lot to talk about treating people with respect and accountability at the end of the day because of some of the things we're doing that a little bit different than other mines, we haven't had any problems drawing.

Bill: Poised and we are in really good shape for 2024, and 2020 or 25 as far as specialty so I don't know if it's if the reputation of the construction team and operations team.

Bill: What we're doing as far as within our local communities, but we have very good response to our labor requests.

Bill: Maybe just one other one just on the solar plants with Nikola can you just remind me remind us of what the benefits you expect from that either from lower diesel consumption.

Anita Soni: Clive, it sounds as though you've had some pretty constructive discussions with the government there. Is there a possibility that the regional mining that's planned to start in 2025 or potentially mining from other future regional prospects will be grandfathered under an earlier code, like the 2020-12 code? Yeah, I don't think that's going to happen.

Bill: Power costs will drop too.

Bill: Well we had.

Bill: Maybe you could face.

Bill: One for starters, you know of a solar plant we saw that.

Bill: There's one capacity reduced our mill operating cost by close to 20%.

Bill: Various 17, 19% right.

Bill: So the expansion you can expect to see incremental bump again, so it does have a real significant impact.

Clive Johnson: I think that the government clearly has come out with a new mining code. I think the key is that the issues around that are going to be the implementation of the 2023 code and fully understanding that at the end of the day. So, but the implementation of the 2023 code will be important, and they've just come out with that, and that will be part of the conversation. So, they're not going to grandfather us under the 2012 code. All aspects of Focola are protected under the 12th Code, and they've acknowledged that, such as ownership, etc.

Bill: And those day to day operating costs.

Speaker Change: Yeah, and maybe just to add to that.

Speaker Change: The whole concept originally was that we were going to go to a zero generator operators scenario during the day operations during the day that changed a little bit with the underground coming online, but overall, it's going to cut down the daytime and operation of the power plant to almost zero.

Speaker Change: Okay, great. Thanks, guys.

Speaker Change: This concludes our question and answer session I'd like to turn the conference back over to Clive Johnson for any closing remarks.

Clive Johnson: But under the new code, we need to find a way to work within the context of the new code to see if it makes sense for all of our stakeholders to actually talk it over, and we're confident that there's a way forward, and the government is very motivated for more revenue from gold mining, including from me. The fastest way in the country to get more revenue for gold mining is to reach an understanding of how we can profitably become a truckler champion. Okay, thank you very much. That's all for me. Good luck with 2024.

Clive Johnson: Thank you operator, and thank you for your attention.

Clive Johnson: Good question.

Clive Johnson: I'd like to close with.

Clive Johnson: I think initially since extensive but I think it's informative and the key is back to key point back is that a 2020 for us and we're going to be another successful year for the company, but a sudden transition though to gear up for <unk>.

Clive Johnson: <unk> also with what we're doing that goes because I think that the commitment.

Clive Johnson: As a company we believes that our majority of our shows supports the idea that we are responsible.

Anita Soni: Next up. The next question is from Anita Soni with CIBC World Markets. Please go ahead. Hi, can you hear me?

Clive Johnson: But when a company, but we're also very very much a growth company and that's the path. We're on and so 2025, we probably haven't talked about it enough, but 2025. It was gonna be a very good year for us with a significant increase in gold production potential.

Anita Soni: Yes. Okay, good. Sorry, I was on the speaker phone. So a few questions, just firstly on the Focola complex.

Clive Johnson: You were saying that there's a possibility that, depending on the royalty rates, that you wouldn't be trucking that ore, sort of giving us an indication of how, you said it was a low cost originally, but what kind of cost would you be thinking about if you were going to truck it, just so we can try to understand the economics when the royalties... Well, I mean, where are we at in terms of, uh... Well, I think we're going to come up with what's called a complex. Studies By the end of the first quarter, that's what we had set for both column-line and part of the generation cycle. Yeah, So, I think on the face of it, it's quite attractive because you've got some good quality material there. You don't have to blast or crush it.

Clive Johnson: I'm getting at is you've got a greater for coal at trucking ore and then of course promise and the potential of things well have to see but things that can drive a lot of pain and finally I would just like to extend the profitable vehicle.

Clive Johnson: Employees.

Clive Johnson: Our condolences tablets of those involved in the tragic plane crashed happened in the north near the Diavik mine Oh. This is a tough business and it's a dangerous business in certain ways. So I think all system family of those people that have perished in a plane crash yesterday were all up where all of us together.

Clive Johnson: So thank you for your time.

Clive Johnson: This brings to a close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.

Bill: We've already built most of the infrastructure, the maintenance buildings for the trucks, the roads. We were just down there a couple of weeks ago. We're really ready to go when we get the agreement with the government. We will have some grease chipping to do for a few months, but then we'll be into trucking. So because of the situation where the mill is already built, the Fragola Mill, and the nature of the grade of the sample And that grade was around 2 grams per ton. Yeah, I think it's about two grams or more or a little higher.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: [music].

Clive Johnson: Yeah, it could be a little higher. Once again, we're going to be selectively mining. So, you know, the study is going to look at the various iterations, but you know, two grams certainly makes money. And then, I just wanted to talk about the Focola costs currently on the operating cost side. They're a little higher than I would have anticipated. Like, are you seeing inflationary pressures as compared to last year, even on unit costs and consumables? You know, what's happening at Goose is the same. So are you talking about Foucault? Yeah, I am talking about Foucault.

Clive Johnson: Hum.

Clive Johnson: Yeah.

Clive Johnson: [music].

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: [music].

Anita Soni: Bill Cass, staff, but at the end of the day, simply put, you have.., less ounces of production than Focoldo this year because of delaying the exploitation permit to truck oars, so that cost us $8,200,000, a ny time now, you can say that the only thing I can add to it is clearly we are it is an ounce issue is the main thing but we are deeper in phase six right now right so certainly on the mining side the cost would be a little bit higher but you know we've got a very good handle on the kind of the reagent costs with our global purchasing we've got a very good handle on kind of the the milling cost the power cost the labor cost so all of all of the main drivers we've got a good handle on but it's just you know where we are where we're at in a life cycle of mine, Okay, well that explains if your mining costs are higher because you're deeper in the pit. And I assume that will change over into next year? We're coming right up into Phase 7 right now. Okay. And then just... Look, thinking about 2025 on FOCOLA as well, you mentioned that you're going to be in higher grades at FOCOLA and at Cardinal. Can you just tell us what kind of grades you're talking about there? So I don't think I said higher grade at Focola and Cardinal.

Clive Johnson: Hum.

Clive Johnson: [music].

Bill: What I said was that it would be in phase six, in the first half of the year, at the bottom of phase six. So that's that's the high grade stuff. Definitely plus two, you know, two, two and a half grams.

Bill: And then the middle part of the year will be in phase seven, in the upper benches, which is a lower grade, you know, kind of in that, I don't know, gram and a half area. But as we get that, we'll go back into the higher grades in the second half of the year in phase 7, back to those 2 and 1 12 grams again. Yeah, that's what I was talking about 2025 there. So two and a half grams.

Anita Soni: I was talking about next year; you guys were saying that you would have higher. Oh, okay, yeah. All right, and then. Just a question on the non-capitalized stripping and underground development at Back River for $109 million. What is that related to? Will we see some more of that in 2025 as well, or is that just 2024? Yeah, I don't think that I don't think the mine plan is completely out to 25 as far as the totals are yet. So I'm a bit, let me just think about this a little bit.

Bill: Basically, you'll continue to see it through commissioning. So, you know, kind of in that Q1 2025. Okay, all right.

Anita Soni: Thank you. That's it for my question. Sorry, I'm the queen of mundane questions, but they helped me with my modeling.

Anita Soni: And thank you for hosting this call. It's really very, very helpful. Thanks. Maybe I'll just throw one thing in, Anita, on your cost profile, what we've seen. I mean, fuel's a big part of our cost, right, in Mali? around 30%.

Mike: So we have the benefit of solar, which is helping us reduce mill operating costs, and we're expanding the solar farm, but also, what we saw last year is fuel prices, despite market fluctuation, the states, that's the fuel price, and it was pretty consistent through the year. So really, what we're assuming when we look at the 24 is the kind of fuel cost levels you see for HFO and diesel. As we go through the latter part of 23, we're assuming we're going to see 24 again, for you and for me. Okay, thank you. The next question is from Carey MacRury with Canaccord Genuity. Please go ahead, guys, just one for me, Billy said. I'm just wondering how, in addition to the workforce up there at UCOI staff, we haven't. No, we haven't. It's actually been the opposite. I think it's kind of a V2 thing.

Carey MacRury: It's, you know, Clive likes to talk about treating people with respect and accountability. At the end of the day, because of some of the things we're doing, they're a little bit different than other mines. We haven't had any problems drawing employees, and we are in really good shape for 2024 and 2025 as far as specialty. So I don't know if it's the reputation of the construction team, the operation team, or if it's what we're doing as far as, you know, within the local communities, but we've had a very good response to labor requests. Maybe just one other one, just on the solar plans at Pecola. Can you just remind me, remind us? Well, we had Phase 1, for starters, you know, the solar plant. We saw that Phase 1 capacity reduced our mill operating cost by close to 20%, varies between 17 and 19.

Bill: So the expansion, you can expect to see an incremental bump again. So it does have a real significance on those day-to-day operations. Yeah, and maybe just to add to that, really, the whole concept originally was that we were going to go to a zero generator operator scenario during the daytime operation scenario during the day. That changed a little bit with the underground coming online. But overall, it's going to cut down the daytime operation of the power plant to almost zero.

Bill: This concludes the question and answer session. I'd like to turn the conference back over to Clive Johnson for any closing remarks. Thank you, operator. Thank you for your attention and your good questions. I just, you know, like to close by saying that I think the news release is extensive and informative.

Clive Johnson: And the key point back is that 2024 is going to be another successful year for the company. But it's a transitional year for COLA and also for what we're doing at Goose because I think that the commitment we have as a company and we believe that our majority of our shareholders support the idea that we are a responsible mining company, but we're also very, very much a growth company. And that's the path we're on. So 2025, we probably haven't talked about it enough, but 2025 is going to be a very good year for us with a significant increase in gold production because of Goose and getting into integrated for COLA and trucking more.

Clive Johnson: And then, of course, the promise and the potential of things we'll have to see, but things like Granville Latte. And finally, I would just like to extend, on behalf of all Beachgold, our condolences to the families of those involved in the tragic plane crash that happened in the north near the Dyavik mine. This is a tough business. It's a dangerous business in certain ways.

Operator: So our condolences to the family of those people that perished in the plane crash yesterday. We're all in this together. So, thank you for your time. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. The Ultimate Life Choice TV Show is brought to you by Reviews.com Reviews.com Reviews.com Reviews.com Reviews.com Reviews.com Reviews.com Reviews.com, Sponsors Thanks for watching, Thank you for watching!