Q4 2023 B2Gold Corp Earnings Call

Operator: Thank you for standing by. This is the conference operator. Welcome to B2Gold Corp. 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, Q, 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.

Clive Johnson: I would now like to turn the conference over to Clive Johnson, President and CEO of B2Gold. Please go ahead.

Clive Johnson: Thank you operator. Welcome at one or please to be here today and talk to you about the fourth quarter. We've had in 2023 and also the years production and also we're going to give you an update on what we see as guidance for 2024 and can even window it. And so 2025 for B2Gold. So a very strong that quarter goal collection and again in 2023, the fourth quarter, reducing just $290 dollars to go.

Clive Johnson: And for the year, we achieved our upper half of our 2023 production guidance with just over a million ounces of goal production, including 68,000. This is the 8th consecutive year for the company for meeting, seen in our guidance. We're very pleased with the progress that we've made. So 2024 is a year of 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 2020. 2023 and there's a number of different reasons for that.

Bill: Bill is going to go into some detail.

Clive Johnson: 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, this 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, operating material, separate material from the north of the Foucault complex, the Anaconda region, which we were set to go on the road, spread 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 of the mining companies in Mali and also came out with a new mining code. So we have been delayed 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 patience of the 2023 code. The mining code for Mali, the Toyota Foucault mining itself was 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 to apply as to the rest of the Foucault region.

Clive Johnson: So we think there's a good economic case to start tracking more. I'm from the Anaconda area and to the Faculta del 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 all the fuels are getting their fair share or so. We're hoping to conclude our discussion soon with the government of all, and be in the position to start trying more from the Anaconda area, and also we're down to the Faculta del.

Clive Johnson: So I'm not 80 to 100,000 ounces a year of gold production, so we're hoping to see that expectation for later in the year. I'm looking to see that additional production late in the past 24, and it's a 2025 submission that could be another 80 to 100,000 ounces of gold per year. So those are going to give us a little breakdown on the cost associated with Fagola, in terms of, this is a year where we have assumed that amount of capital spend, which was planned in the life of Mike, we have a bit lower grade than we've seen in some of the years before.

Clive Johnson: We're down a bit on ounces, as I mentioned, because of the lack of a truck door, and we have a big spend in terms of tailings palm, which is one of the tailings palm construction, and also we're expanding the solar plant. So it's a pre-stripping, so those are some of the issues that are hitting this year, in 2024, in terms of our cost and our all over sustaining costs. So the mystery to us, why the accounting rules suggest that, if you spend a lot of money on the tailings palm, which is going to tell us the tailings facilities, when you spend that money in the year, and you're going to use it for 10 years, why someone decided that you cannot write that off over 10 years.

Clive Johnson: You have to take the hit in the years, that's bumped up our, oh, it's a scenic cost, which we'll fight that out, I guess, with the World Gold Council, and the other powers to be determined, what can be, not for years, versus when you. So we're looking forward to the very strong 2025, we will see with all the things we're doing this year, such as tailings, so the and pre-stripping, etc, we are looking forward to 2025, we'll be underground it.

Clive Johnson: The call of the booth will of course come online, and those are going to give us a good update on the booths, and where we are in the progress of construction. The ice road is almost completed, we'll start tracking along the ice road in the second week of February, but I'm not going to add a schedule and the project overall needs a schedule.

Clive Johnson: So full physical production in the quarter of 2025. The other things that we'll emphasize, and we'll implicate and impact on 2025 as a fact that the booths will be underground in the first quarter. Obviously, we will be integrated to Fagola, and we're looking at some of the recent Gold reduction. Additionally, the Grand Ballotty Project will come into view with a study that comes out in the first part of the year, sorry in the first half of the year.

Clive Johnson: At the end of the second quarter, which we'll look at Grand Ballotty for the first time, is one company owning it, and looking at maybe using a better smaller project for Grand Ballotty. We always push that because we have two gold mining companies in the joint venture. We always push it to the large end of the production, looking to produce some around 350 or 400 thousand dollars a year for Grand Ballotty.

Clive Johnson: For the first time now, we're looking at us maybe a lower capital cost smaller project with a higher grade core of the deposit that I see if it makes sense to maybe produce that under 50 or two of us now as you're a gramolotting. So that's going to come into view as well. So the combination of boost protection coming online for three years now since the year we're studying the first quarter 2025 and the potential gramolotting gives us a very close profile from existing assets.

Clive Johnson: We will continue of course to look at other opportunities with kind of pretty strong expression bias again this year. And we look at M&A but we're not really looking to add development projects to the portfolio. We have goose that we're developing and also the potential gramolotting. So we're not going to be likely to go out in this market to look at M&A activity. We'll continue to focus on great exploration opportunities such as what we've done in terms of investing in junior companies. I'm looking to join venture with junior companies on the exploration side.

Clive Johnson: With that I think I'll have over the bill and Bill is going to give us a summary of what I said but in a little more detail in the capital expenditures for this year at FACOLA and talk about goose and the capital cost of goose as you'll see in the news least are a little bit higher than we had originally projected. Bill will talk to you about the reasons why that is we believe that we're on track with this new budgeted asset of around a billion dollars to complete construction. And as I said earlier we're definitely feeling comfortable with our schedule of producing gold from goose in the first quarter of 2025.

Clive Johnson: So I think with that I'll have it over the bill and Mike's going to talk to the pre-pays. We decided to tap into the previous market to maintain our very strong financial position that year we have a lot of capital spent coming up. This is something that we pioneered when Michael and Fuzer building FACOLA in 2016 and that was to tap into the pre-paid gold markets as a great source of cheap financing to allow us to then to complete the construction of the FACOLA bill and my facilities remember that we were all scheduled on budgeted FACOLA because of a drop in the dramatic drop in the gold price in 2016 so we didn't have sufficient funds we were about a hundred and twenty-five million dollars short of reaching the funding for building the YNM I was on budget and on schedule.

Clive Johnson: So we were the first company 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 that for the issue to complete the construction of FACOLA and our stock was driven down to actually 80 cents a share and that dissipation of our illusion of equity offering we didn't do that because it was pre-paid to the small percentage of our gold production and the use that to fund the necessary funds to complete FACOLA. A lot of companies have copied that now and 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 use in a very strong financing position as we go through a transition year in 2024 which is some transitioning FACOLA and also transitioning in the context of building 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.

Bill: So with that, I think I'll have a little bit of a little bit to give you a little more color for cola, capital spend, and also talk about the peace project. Okay, thanks, Clive. 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, we managed to make everything up and had an excellent year across all three sites. I mean, if you look at the Cola in particular.

Bill: There was a very good quarter for Coca, and it really led us into setting up for 2024. If you go back and think about what was in the feasibilities better, the technical study that we put out related to kind of the life of my production, you would see the 2024 was always a bit of a down year as we basically worked our way through phase seven, some of the lower grades in the higher zones of phase seven. And then into the bridge part.

Bill: So what we have is we're now will be developing, we'll be taking out the bottom of phase six, which is which is high grade and at the same time bringing phase seven down so the second half of the year will be into the red zone also in phase seven. Additionally, at for Cola, 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.

Bill: I'm getting us the permits 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 been approximately $19 million left and that project is on schedule.

Bill: 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. We have we have a plant 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 the study and get it to the government to get approval 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 plays in.

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 Menonco, and then taco are in and really were 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.

Bill: 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 and then of course we'd be on or in the in q4 2024 that's the same schedule that we would have had in 2023.

Bill: 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 the regional stuff. Clive, anything else you'd like me to talk about for the code before I go on to Goose? I think that's good, Bill. Okay, so Goose is probably the one which is drawing the most attention on this call.

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, we're in the process as you know of doing something a little different than we were before from kind of working not only from the end, but also from the middle out.

Bill: 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 approximately plus minus down the ice road as we previously indicated. We have plenty of time for that.

Bill: We've got the additional trucks on site or at the MLA and we don't see any 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. The open pit is going very well.

Bill: We've got all of the trucks operating on schedule that is obviously, once again, something that's very critical because that open pit has to be mined out by kind of Q1 2025, but that will be the tail of facility from day one. Regarding the cost, this is one I'm trying to give a lot of thought on what is necessary, the best way to say this, but basically the situation is we took over the project kind of midstream from Sabina.

Bill: So Sabina had, then their feasibility studies, Sabina had ordered the first stuff which was coming up the ice road in 2023 and had put together the schedule. 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.

Bill: 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 underground and a lot of the actual support which was needed for developing the underground. So that 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.

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 in the site. So expensive transportation costs associated with that. And it's the same thing with some of the other things which we're outstanding. We found that we had a major redesign of some of the mill structures to include a lot of the pipe piping and a lot of the venting. All of that stuff had to be reordered.

Bill: 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, shipped it the site and now we're doing the whole thing again on a schedule. So 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 Q1 2025 season.

Bill: So what we're talking about is really mill infrastructure, underground infrastructure. Another big one is the 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.

Bill: No, what happened was when when subvened 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 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 mess on their part.

Bill: And, you know, we're in the process of correcting that. And then the last big one really is the powerhouse, 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.

Bill: And once again, all that stuff has to be flown in. So that'll be an expensive proposition as well. And all that adds up to the large.

Bill: 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.

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

Bill: So well, let's start with the risk one. We think that really the risk of additional all overruns is low. Given the fact that once again, we've now ordered really everything which is in the MLA.

Bill: Obviously that stuff is coming up the winter of when the process now of 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.

Bill: 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. Thanks, Bill.

Clive Johnson: I think it's important to point out that I think that 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 B2Gold because normally we like to find projects that are at the feasibility station and we can design the mill. We can design what we want to build and do it our way.

Clive Johnson: 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 they were giving up on the value of the project upfront, to try and get a production on an extraordinary tight 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 and with a financing of very painful and extremely tight budget.

Clive Johnson: It was 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's a lot of pressure on the deal on this deal to get the deal closed to be honest with you on April of last year. Before they do down the financing from Orion and all the other traders that came in to finance the project, which probably could cost up to $200 million actually just to finance the project.

Clive Johnson: If you add up all the bills and whistles and the pre-payment of gold and all 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, this is a single asset company and with the lack of experience in terms of building projects. So we've done a remarkable job this last year. We've come to stay on the fly partway in construction in the last year.

Clive Johnson: Semina had planned two ships to go from Montreal, to the Arctic Ocean, that's where still that, and then Bill Gaisrose. 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 that's needed for the future of the project. So, Semina did a lot of good things and they did the good things in terms of exploration, permitting Indigenous relationships and great relationship of the constituent association, the new association of our partners, and we just had some great meetings with them here this week, and so there were a lot of things that Semina did well in those areas.

Clive Johnson: 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, the inspiration 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 for 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 did a great thing for the shareholders by accepting an offer to be too low to... Take a plea to friendly take over with a significant premium to build this line and do it well. So we remain extremely optimistic about the use as a major asset. And Mike's not going to walk us through why we did chose to take a financing now in a non-dedutive prepayment of goal production.

Michael Cinnamond: To make sure that we maintain a very strong financial position as we go through this transitional year of the capital spends we need it to call it, etc. Which were planned and expected but also use finishing off the project and maintaining our dividend and maintaining some cash position. So I think without passing over to Mike to talk about the goal prepayment financing and a memo for questions. Thank you.

Michael Cinnamond: Okay, thanks, Cliff. Yes, on the prepay financing, I think Cliff touched on really the goal is 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 prepayment, we looked at the goal market. We've got goal of near record highs and it's been over 10,000 bucks over a quarter and for two quarters now in especially the first time ever. I think that's happened.

Michael Cinnamond: So you've got to look at the goal price and say, this is a good goal market. So it's a very attractive goal price. And with the prepayment, 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.

Michael Cinnamond: So we're able to price them using a forward price just under $2,200, $2,190 with the average across the four banks. And it, you know, for a total of 265,000. And we're going to deliver those ounces in the second half to 25, one schools have been running and the first half to 26. I stress to these are corporate level prepays we can source the production from anywhere. And when you look at, when you look at this as a financing, if you look at the number of ounces, we've got it deliver and the forward price that we're able to use.

Michael Cinnamond: And that's how if you assume today's goal price, that's a fact of financing costs over at 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. And so where we are, actually, and I'd like to give a shout out if we have 4% to get banks, we're in there, CFBC, ING, National, and BMM. I want to say thank you, it was always for other support.

Michael Cinnamond: They were there as far as much as we did prepays before us and they took part in that and they took part in this game. So just give you a snapshot where we are at Q3, we had approximately 300 million in the bank cash. I like to keep it 350 to 300.

Michael Cinnamond: That's, to me, that's a decent level of liquidity for a group of our spies doing the kind of things we're doing. We hadn't drawn the line at the end of the Q3, but as we indicated, we were starting to draw Q4. So by the end of the year, we've drawn 150. So we're still, I think you'll see, we haven't put our urine results out yet, but like I said, I like to keep that cash somewhere around 300 million.

Michael Cinnamond: We had the line drawn 150, so we're still strong in that cash position. And our objectives with the prepays is, first of all, we'll pay down the line with the portion of the prepays and then we'll have the balance of the prepays plus a full on drawn line to find out 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, you know, what are the use of those funds? It's to really maintain our flexibility, like they say, both to a 24 and beyond.

Michael Cinnamond: 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.

Michael Cinnamond: We started those prior year, most of them will be complete on your completion by the end of 2024. And then of course, also for Kola regional, we've got some spend in there just to get that ready. And so we get those licenses, we're ready to go. We want to maintain our aggressive exploration program, the $63 million in the budget for exploration of that brown field land for Greenfield. And they could certainly give more details if needed there.

Michael Cinnamond: You probably, you know, big project versus goose just to keep that running through smoothly and get ourselves into first goal core in 2025 to 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 clients touched on them. So first one would be grandma latte.

Michael Cinnamond: How do we see grandma latte? You know, by the half year, we'll have a picture of what we think that newer streamlines, grandma latte operation could look like. So if we want to move forward, we have. Given the screen page now helps us, it has that sort of flexibility to make some decisions. And also, I don't actually think I will talk to Namibia so far about, we're looking at the Antelope Zone or Spring Walker, some version of like bouncy animal, and which Dakota, which we think, is an exciting underground prospect, it could help supplement milfe, and in those stock polymers of Dakota where if the phantom, 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 stock polymers. So those are the kind of things given ourselves flexibility, let us look forward past the end of the 24.

Clive Johnson: And really, the prepaid in the end, you know, it's an opportunity financing where the goal price the way it is, and I think it's a cheap financing for a company like ourselves, when we have, like if they were blessed with production. Okay, thanks Mike, maybe I think one of the topics that's, there's not a lot of people's mind is Molly and the government of Molly, and go many of Molly, I'd like to give you comments about that.

Clive Johnson: 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, a very good country in terms of investment in building gold mines. Successful gold mines were the history of Rand gold, Mount Barrick, and other companies, including ourselves. It is a country that has been successful, we're working with the various governments we've been through in terms of understanding that gold is a very 20% of the GDP of the country, and I can think of the largest taxpayer in the country, and it paid over $1.3 billion in taxes and benefits to the people of Molly, so we put up all the risk, let me build for Cola, $699,000,000, and the people in the government of Molly have realized a little over 50% of the economic value of the fiscal mine. I think that's a pretty good deal.

Clive Johnson: We think all the risk, let me get 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 volumes and self-determination in 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. A lot of the parameters that govern for Cola are locked in, are frifical out 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, frifical was under the 2012 code. The 2023 code is looking basically to increase the government's interest significantly in the gold and mining projects in Molly. And the regional areas that we want to chuckle from are a government of the 2023 code.

Clive Johnson: So the conversation through the government is going to be an understanding of 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 beach of gold, and they mentioned to us that they consider beach of gold sort of the best. And Foreign Investor in their country and their recommended value of co-production, and they clearly are on the same page with us in the sense that they want to see tracking a war in the near term.

Clive Johnson: To increase production of the coal as we mentioned by potentially 80 to 100,000 ounces a year by tracking the war down to the middle. So that's the conversation that are going on to understand the 20, 23 code and understand the economic implications. And that doesn't make economic sense to track the war.

Clive Johnson: So we think there's a path forward for mutual benefit from the government and the people of Malay to continue to increase production by tracking the war. You know, we talked to the government about the fact that we have two potential stages of growth and if we call a complex the first was tracking war. As we talked about, which is very low cost, we spent most of the capital that we think can be quite profitable.

Clive Johnson: The second was to potentially build on the additional mill in the Anaconda area, perhaps something around $250 million capital investment to actually build a second mill based on some of the exploration results we've seen in. 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.

Clive Johnson: 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. So Malay's been a good place to be invested with the reasonable tax regime and many companies, including ours and more importantly the people of Malay have benefited from that. So the question becomes under the new mining code, all his Malay is still in the track to place to build notes and additional gold mines.

Clive Johnson: 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 that are increases that the government's looking for. 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 are as a competition to 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 mill. In difficult complex, etc, etc, or other opportunities.

Clive Johnson: 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 Malay, Malay and Malay's economy and it is today. So we're encouraging the government to work with us. I think we have a good relation, we have a good relation with them 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.

Clive Johnson: So I think there's a level of understanding between us and the level of commonality to see what works for the government and the people of Malay and what works for a profitable old money company that's lucky to grow responsibly as we've done. And so I'm proud of the 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 record. So, you know, there's a lot of rumors out there. There's a lot of people getting half the story, unfortunately.

Clive Johnson: That factor of the matter is the government of Mali understands the importance of goal of 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, you know, for the betterment of Mali. So, I think we are bottom line as we've done it. We've done it around the world. It's a problem between being in B2Gold.

Clive Johnson: We've been on one of the most successful companies, I think, in the well-known sector. We have been in managing political risk and understanding them. And the best way to manage political risk is to pull it on the promise of the link to 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 Fakola, but also going forward.

Operator: So, I think with that, we'll very open it up for questions. So, operator, if you can invite people to ask us questions again. Certainly.

Operator: We'll now begin the analyst question and answer session. To join the question key, 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 handsets before pressing any keys to withdraw your question, press star than two.

Ovais Habib: Our first question is from Ovee's Hubby with Scotiabank. Please go ahead.

Ovais Habib: Hi, Clive and B2T. Congrats on a strong end to the year. And for 2024 seems like, like you mentioned, there's a transitional year with remaining capex 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 B1B2 Gold is we build the mills with the expectation that they're going to ramp up very quickly. We don't build a mill to produce a gold to fix the mill and fix all the other problems in the mine. We build them to start up and start well and we're anticipating that, especially with a very high-grade stockpile we're going to have at goose. So I'll pass it over to Bill. Yeah, thanks, Clive.

Bill: That's a very valid point. You know, we don't anticipate startup issues. I would tell you, 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.

Bill: And if you follow us, we are looking very closely at a wind plant. And we're looking at the power issue that we're looking at up there, which we think is going to help us offset that. That'll probably, that's not a catpex 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 tank. Because that's really, that was one of the big, big misses on the subvene aside.

Ovais Habib: 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 in my next question.

Bill: In terms of the ramp-up at Goose in 2025, production guidance was kind of around that, you know, $250,000 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 mark. Bill, are you just being kind of conservative going into this ramp-up in 2025, whereas something else changed in how you see production in the first year? No, I mean, once again, the previous technical report started kind of at month zero.

Bill: So I think if you look at, 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 we used March 31st as, 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, to get to the mid 200. So I don't, I would actually kind of surprise that 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. Okay, thanks for the clarity on that.

Ovais Habib: Well, I'm just switching gears on the color, the color 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 million government, how kind of talks are progressing. Is there any kind of, you know, kind of point that you guys are stuck on, or 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 going around, you know, giving you that moment?

Clive Johnson: I mean, where is kind of things stuck out right now? 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 like the last couple of weeks, so we're going through that with them. I think that, you know, I was, after I said suppose, but you 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 means with the government to really understand the, the two, that's right, the code, the implementation of it and what it really means, not for, you know, as we said, not for football, but what it means for regional production.

Clive Johnson: So it's very important, like many other governments are on the world and the global mining industry developing countries that don't kill the goose that might as a golden egg, and that's the balance they need to strike between attracting investment of companies like ourselves to build the next coal mines in Mali, et cetera. 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 to be to golden. It's all of its stakeholders, including the government of the people of Mali, because we don't have to blast and crush the oil. We simply dig it out of the ground and we've already built the roads.

Clive Johnson: So we can, we can quite economically, hopefully, a mine additional or, but in terms of the second mill or other foreign investors coming in and building coal mines in Mali, as I mentioned earlier, it's a competitive situation for our investment dollars. 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 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 COLA 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 mining in Mali.

Don Demarco: The next question is from Don DeMarco with National Bank Financial. Please go ahead. Thank you, operator and good morning, Clive and team. So, Bill, you mentioned that the first floor earlier than Q125. Can I do this?

Bill: Sorry to ask you to say that question. Well, I'll ask it that quickly and then I'll get over to Bill. Well, I'll let the course go to Bill and answer that and then I'll give you my view. So, 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, it's, I would say it's in material.

Clive Johnson: Okay. Okay, if I was a, if I was a bedding man and we were in this industry, you're sort of making bets every day, but if I was a bedding man, I would think that giving the track record of Bill's team and John Rahala, our our middleer just in the mills that he builds. I think we're going to have a really good wrap up and start up and I'll just leave it at that. Okay. Thanks.

Bill: So, my next question is sticking with goose. There was some messaging in the release that some of the extra spend might reduce all pecs, particularly on your ground development, so on. But, you know, we do recognize that the goose produced project life in mine plans can be finalized in the first quarter or 2020. But does any of this additional spend potentially the higher production than might have been forecasted in the feasibility study? Well, once again, that's a little extra.

Bill: But unfortunately, we didn't get to choose the mill subpoena did and it's a good mill. We can work with it, but it doesn't really have the expansion potential with a B2 gold mill would normally have when you look at Focola where we started and where we are[inaudible] that we have a no dollar US. Yeah, so I don't in the short term the answer is no.

Bill: I mean, what we've done really, the mill is kind of as quite as said, is not a B2 design mill kind of with that 25% design factor even 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, subena kind of conceptually talked about it without putting in numbers on it.

Bill: And at the end of the day, that's 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. Okay. But I want to say that we're spending we have a large expression budget. I want us to 20 inches of the year 20. 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.

Bill: If we have continued success, I mean, one of the holes we drilled in the envelope deposit is a hundred meters below the previous, um, extended the drilling and we have 20, 20 meters of eight grams. Clearly, these, there's newer zones unless 80 kilometer long trend of banded iron formation. So we're spending our money in exploration because we believe the potential is horrendous there. And once again, let's not get it ourselves. Let's build goose.

Clive Johnson: The Mill and Mill are well with a test for additional mills on that property in the future. This is probably not an unrealistic goal or objective. Okay. Thanks. For the 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.

Anita Soni: 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 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 getting grandfathered as the 2012 code.

Anita Soni: For cola aspects of for cola are protected on the 12 code and they've acknowledged that such as ownership, etc. 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 and we're confident that there's a way forward. The government's renovated for more revenue from go mining 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 trouble to the full goal. 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?

Bill: Yes. Okay, good, sorry, I was on microphone. So a few questions, just firstly on the for cola complex. You were saying that there's a possibility that you would not, 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 what kind of cost would we be thinking about if you were going to track it just so we can try to understand the economics when the royalty rates come through. Well, I mean, where are we out of terms of the study on that first bill? Where are we out of terms and please study on that our own internal study and terms and tracking war?

Bill: Well, I think we're going to come out with for cola complex studies by the end of the first quarter. That's what we said for both for cola line updated and part of the annual cycle. 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 last or crush it and we've already built most of the infrastructure that maintenance buildings from the trucks. The roads we were just down there a couple of weeks ago.

Bill: We're really ready to go. When we get the, you know, with the government, we will have some breach driven to do for a few months, but that won't be into tracking it. So because of the situation where the mill is already built, if we're called no, and the nature of the grade of the sample material that we're seeing in the cola complex to the arts, we were pretty confident that there's a next level of cases. And that grade was around two grams per ton, is that correct? Yeah, I think it's about two grams or more.

Bill: 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. Okay. And then I just want to talk about the cola cost currently on the operating cost side. They're a little higher than I would have. Are you seeing inflationary pressures 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 Fakola. So, are you talking about Fakola?

Bill: Yeah, I am. I mean, I think I think Bill Cass, the apple of the day, simply put, you have less outs to production than Fakola's issue. Because of the government delaying the implementation permit to truck or so that cost is 80 to 100 gas ounces. And the government cost government that as well. They're portion of that. So, therefore, simply put you have less outs to divide your cost by. So, therefore, your costs are somewhat higher. Bill has said after that, Mike. You could say.

Bill: 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 that global purchase. We've got a very good handle on kind of the milling cost, the power cost, the labor cost.

Bill: 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. Okay, well, that explains the, if you're mining costs are higher because you're deeper in the pit. And I see that will change over into next year as.

Bill: We're coming right up into phase seven right now. Okay, and then just look thinking about 2025 on facolas, well, you mentioned that you're going to be in higher grades at facolas 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 grades at facolas and cardinal, what I said was would be in phase six in the first half of the year in the bottom of phase six.

Bill: So, that's the high grade stuff definitely plus two, you know, 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, grand gram and a half area. But as we get that will 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 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.

Bill: Okay, yeah. All right. And then just a question on the capital, the non-capitalized stripping and underground development at that river of 109 million, is there like what is that related to 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 totals 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 in that Q1 2025. Okay. Alright, thank you. That's it for my question. Sorry, I'm the queen of mundane questions that they helped me in the modeling and thank you for hosting this call. It's really very, very helpful. Thanks. I'll just do one thing and I need to just on on your cost profile. What we've seen, I mean, jewels, a big part of our cost rate in Bali.

Clive Johnson: It's around 30%. So we have the benefits solar, which is helping us reduce mill operating costs and we're expanding the solar farm. But also what we saw last year as fuel prices despite market fluctuation, the states that's a jewel price. And it was pretty consistent through the year. So really what we're assuming when we look into 24 is a kind of jewel. A couple of levels you see for each of all in 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.

Carey MacRury: The next question is from Carrie McCruery with canna cord genuity. Please go ahead. Good morning, guys. Just one for me.

Bill: Billy mentioned the underestimation of labor hours. I'm just wondering how your position with the workforce up there. You've fully stepped up for 2024 and any issues and getting people up there. No, we haven't, it's actually been the opposite. We've, I think it's kind of a B two thing.

Bill: It's, you know, quite like stock lottery people respect trend and accountability. At the end of the day, because of some things are doing a little bit different than other minds. We haven't had any problems drawing employees and we are in really good shape for for 2024 and 2025. 2025, especially so I don't know if it's the reputation of the construction team and operation team, or if it's what we're doing as far as, you know, within the local communities that we have very good response to labor requests. Maybe just one other one, just some of the solar plans of the color.

Bill: Can you just remind me, remind us of what the benefit of that either from lower diesel consumption or, you know, what your power cost will drop to. Well, we had one for starters, you know, the solar plant, we saw that the phase one capacity reduced our mail operating cost by close to 20%. Very few something 19% but so the expansion you can expect to see an incremental one for getting so it does have a real significant impact on those day to day operating cost.

Bill: Again, and maybe just that 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 down the daytime operation of the power plant to almost zero. 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.

Clive Johnson: I just, you know, like to close with, I think there's really some extensive, I think it's informative. 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 over the year, that for COA and also what we're doing at Goose, because I think that the commitment we have as a company and we believe that our security of our showers 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 a significant increase in goal production because of goose and getting into better greater vocala and trucking more.

Clive Johnson: And then of course, the progress and the potential of things to see, but things like that, Grandma Latte. And finally, I would just like to extend on behalf of all B2Gold employees, our condolences and added so those involved in the tragic plane crash happened in the north near the dietic mine. 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 of 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]

Thank you for standing by this is the conference operator, welcome to Beachy Gold Corporation'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 question to join the question queue. You May Press Star then one on your telephone keypad.

Should you need assistance during the conference call you May signal, an operator by pressing Star then zero.

I would now like to turn the conference over to Clive Johnson, President and CEO of <unk>. Please go ahead.

Clive Johnson: Thank you operator walked with one 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 years.

Clive Johnson: Actions.

Clive Johnson: Did you feel updates on what we see as guidance for 2024.

Clive Johnson: A window that's in 2025.

Clive Johnson: For vehicles, so a very strong quarter gold production again in 2020 three the fourth quarter editions, just putting $290 scope.

Clive Johnson: And for the year, when we achieve the upper half of our 2023 production guidance with just over a million ounces of silver.

Clive Johnson: Gold production, including 68000.

Clive Johnson: Awesome questions on Keller.

Speaker Change: We shall see.

Speaker Change: This is the eighth consecutive year.

Speaker Change: Companies are meeting or exceeding our guidance.

Speaker Change: Pleased with the progress that we've made so 2024.

Speaker Change: As a year of some transition year for a company like ours, which is a producing company that is growing as well so in 2024.

Speaker Change: I'll be a bit lower than we had seen.

Speaker Change: 23, and there's a number of different reasons for that bill is going to go into some detail.

Speaker Change: 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.

Speaker Change: Delay in getting the exploitation permit from the Governor O'malley to proceed with the trucking of decent grade material separately material from that north of the Chicago complex. The Anaconda region, which were set to go on the road scope and all the facilities are basically in place to start that we'd hope to start that.

Speaker Change: 24, the government decided to do a mining law.

Speaker Change: The mining companies and while he's also came out.

Speaker Change: Whether the new mining code so.

Speaker Change: They delayed the the.

Speaker Change: Issuing licenses and tourists reputation relationships.

Speaker Change: In that period of time.

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

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

Speaker Change: He calls from all either toward Colo.

Speaker Change: By itself is still under the.

Speaker Change: 2012 mining code in that certain Oh.

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 one on your telephone keypad.

Speaker Change: Sure.

Speaker Change: Factors locked into that in terms of the.

Speaker Change: Ownership of the project et cetera. So the conversations we have to go with Bollywood around the 2023 could be considered applies to the rest of the Chicago region. So we think there's a good economic case to trucks start trucking ore.

Speaker Change: Probably at 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 and it shows in our company, but also something's going to come to the molecules are getting their fair share. So we're hoping to.

Operator: Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Clive Johnson, President and CEO of B2Gold. 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, producing just under 290,000 ounces of gold, and for the year, we achieved our upper half of our guidance. Production Guidance, with just over a million ounces of... School of Production, including 68,000 ounces of crude oil from production in Palo Alto. Ah, let's just see...

Speaker Change: Conclude our discussion with the government of Bali.

Speaker Change: In a position to start tracking bar.

Speaker Change: From the Anaconda area it elsewhere down to that bill that each of our touch doses a year of gold production. So we're hoping to see that.

Speaker Change: Rotation program later in the year I'm looking to see that additional production to meet to discuss 'twenty four and into 2025 submission there could be another 200000 ounces.

Speaker Change: Called for a year that was going to give us a little breakdown on the.

Speaker Change: The cost associated with for Colette on the tour.

Speaker Change: Yourself.

Speaker Change: This is a year, where we have assumed an amount of capital spend which was planned in our life of mine, we have a bit lower grade that we've seen some of the years before we're down a bit on that because as I mentioned because of the lack of truckload.

Clive Johnson: This is the 8th consecutive year exceeding our guidance. We're very pleased with the progress that we have 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 Bill is going to go into some detail, and Mike 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 lowered 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, saprolyte material, from the north of the Foucault Complex, the Anaconda region, which we were set to go to, and the roads are built, and all the facilities are basically in place to start that.

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

Speaker Change: And also we're expanding the solar plant silhouettes pre stripping. So those are some of the issues that are hitting.

Speaker Change: This year in 2024.

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

Speaker Change: We're just going to touch them.

Speaker Change: Okay.

Speaker Change: Those facilities when you spend that money in a year and you're going to use it for 10 years.

Speaker Change: Why someone decided that you cannot write that off over 10 years, you have to do better in the year. So that's bumped up our oh, it's sustaining costs.

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

Speaker Change: The other powers to be determined what can be written off four years versus one year.

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

Speaker Change: 2025, we will see with all of these things.

Clive Johnson: We hope to start that in 2021. 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 issuing of licenses in terms of reputation licenses during that period of time. 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. Monaco, Formali, Focola, the mine itself is still under the 2012 Mining Code and has certain, certain factors locked into that in terms of the ownership of the project, etc.

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

Speaker Change: So the pre.

Speaker Change: Pre strip et cetera, we're looking for in 2025 will be underground at Kohl's. This will of course come online at those 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: The extra load is almost completed we'll start trucking.

Speaker Change: As long as I showed in the second week of February but about debt as scheduled and the project overall remains on schedule.

Speaker Change: Our first gold production in the quarter of 'twenty 'twenty four and.

Speaker Change: <unk>.

Speaker Change: The other things that will happen.

Okay.

Speaker Change: Impact on 2025 was in fact, it goes will be up and running in the first quarter. Obviously, we will be integrating tough for call and were looking at us and increasing gold production. Additionally, the grandmother lots of approaches will come into view, we're studying that comes out in the first part of the year starting in the first half of the year.

Clive Johnson: 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 Fukuoka Ville 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 can add $8,200,000 a year to Gold Productions, so we're hoping to see that.

Speaker Change: But at the end of the second quarter, which will looking from a lot of people. The first time as one company owning it and looking at maybe user of better smaller project for them a lot too.

Speaker Change: Always push that because we got to go by any companies in the joint venture you always push it to the large revenue production.

Speaker Change: Production looking to produce so around 354, a desktop senior corelogic.

Speaker Change: 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 52 of the best us grab watching so that's going to come into view as well so the combination of goose.

Clive Johnson: Carey MacRury, Don DeMarco, Ralph Profiti, The cost associated with Focola, in terms of this is a year where we have a significant amount of capital spend, which was planned for the life of mine. We have a bit more of a 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 truck doors, and we have a big spend in terms of the tailings pond, which is going very well with the tailings pond construction, and also we're expanding the solar plant. So that's pre-stripping.

Speaker Change: Production coming on line for theaters ourselves to see Europe, starting in the first quarter trade 25 of the potential grab a lot to it gives us a very good.

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

But we're.

Speaker Change: Developing at all.

Speaker Change: So 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 greenfield exploration opportunities.

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

Clive Johnson: So those are some of the issues that are hitting this year in 2024 in terms of our costs and our sustaining costs. There's still a mystery to us why the accounting rules suggest that if you spend a lot of money on a tailings pond, All of which is going to mean a ton, the back end will cite that out, I guess, with the World Gold Council and the other powers to be determined. Don DeMarco, Ralph Profiti, So we're looking forward to a very strong 2025.

Speaker Change: With that I think I'll hand, it over to build those kind of gives a summary of what I said, but a little more detail.

Bill: Expenditures or.

Bill: This year, I forgot and talk about Goose and capital cost. It goes as you'll see in the news release or a little bit higher than we had originally projected that we will talk to you about the reasons why that is why we believe that we're well on track with this new budgeted that set of around $1 billion too.

Bill: Complete construction and as I said earlier.

Bill: We're definitely feeling very comfortable with our schedule of production.

Bill: For the first quarter of 2025, so I think with that I'll hand, it over to go in Mexico to talk us through the Prepays.

Clive Johnson: We will see with all of the things we're doing this year, such as tailings, facility, and pre-strip, etc. We are looking forward to 2025 with the 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.

Gina: We decided to tap into the prepaid market to maintain a very strong financial position than a year old we have a lot of capital that's coming up this somebody that we pioneered with the back of it because you're building for call. It 2016 and that was to tap into the prepaid growth markets is a great source of cheap finance.

Gina:

Gina: To allow us to them two to complete the construction of the full cohort bill and Mike facilities, but remember that we were on schedule on budget difficult work.

Clive Johnson: Progressive Construction. The X-Road is almost completed, and we'll start tracking on the Ash Road in the second week of February, about a month out of schedule. And the project overall remains on schedule for Physical Production. All right.

Gina: But because of a drop in the dramatic drop in the gold price into 2016. So he didn't have sufficient funds to meet or about $125 million short of reaching the settings, the ability of the mining and minerals.

Gina: But you know I'll skip.

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 better grades 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, sorry, in the first half of the year, at the end of the second quarter, which 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've always pushed it to the large end of production, looking to produce somewhere around 350, 400,000 ounces a year from Cremalante. For the first time now, we're looking at it as maybe a lower capital cost, smaller project with a higher grade. Don DeMarco, Ralph Profiti, So that's going to come into view as well.

Gina: So we were the first company to new gold prepaid.

Gina: So corporate financing and that was a great financing at the time for us.

Gina: Because people anticipated that we would do an equity issue to complete construction of Coca Cola and.

Gina: Our stock was trading down to actually a sense sure.

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

Gina: A lot of companies who've got caught me that not all of it's quite a carbon type of financing that Mike will walk you through why we did that in Hawaii, its very beneficial to the company of a round trip ticket. So he was in a very strong financial position as we go through a transition year in 2024 with system transitioning as well.

Gina: Colo and also transitioning in the context of millions of consumer So the company remains very focused on being that.

Gina: Responsible gold producer, but also across the company.

Gina: We're well on track with that with our growth projects to continue that journey. So without I think I'll have it already boats can give a little more color for call up that capital.

Gina: Capital spend.

Clive Johnson: So talk about perjury.

Clive Johnson: So the combination of Goose... Production coming online for 300,000 houses a year, starting in the first quarter... and the potential. Gravillante gives us a very good growth profile from existing aspects. 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 goose that was, and also the political gravel latte, so we're not going to be likely to go out in this market to look at M&A activity.

Okay. Thanks Clive.

Clive Johnson: I guess I want 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.

Clive Johnson: At the call it in particular.

Clive Johnson: Fourth quarter, but it was a very good quarter for <unk> 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 a life of mine production you would see the 'twenty 'twenty four was always a bit of a down year as we.

Clive Johnson: We need to continue to focus on the freight connection in Lower East Virginia, such as what we've done in terms of investing in junior companies and looking to join 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.

Clive Johnson: Basically worked our way through phase seven and some of the lower grade and the higher zones things that in and then into the bridge parts. So what we have is we're now 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 to even down so in the second half of the yellow beans.

Clive Johnson: Redstone Arsenal on page seven.

Clive Johnson: Additionally at for coal.

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

Few kind of one.

Speaker Change: One off projects.

Speaker Change: What's your raising up the EBIT the all in sustaining cost.

Clive Johnson: We believe that we're on track with this new budgeted estimate of around a billion dollars to complete construction, and as I said earlier, a great source of cheap finance to allow us to then complete the construction. Don DeMarco and Ralph Profiti, because of the dramatic drop in the gold price in 2016, suddenly didn't have sufficient funds. We were about $125 million short of reaching the funding for the building of the Lion and the Miner, which is our invention around scale. So we were the first company to do gold prepaid. Don DeMarco, Ralph Profiti, people anticipated that we would do an equity issue to complete the construction of the Golan, and our stock was driven down to actually 80 cents a share with anticipation of a large deluge of equity offerings. We didn't do that.

Speaker Change: We have the tailings facility the tail.

Speaker Change: The 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 period, a little bit that's gonna be approximately $45 million to complete with most of that occurring in 2024.

Speaker Change: With the intent to bring that online in the second quarter of 2025.

Speaker Change: Additionally, 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 2024.

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

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

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.

Bill: We did it pre-paid instead. That took a small percentage of gold production, and they used that to fund the necessary funds to compete for coal. A lot of companies have copied that now, and it's quite a common type of financing. And I'm going to walk you through why we do that and why it's very beneficial to the company in the long term to get left 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 a responsible gold producer but also a closed company. We're well on track with our growth projects to continue that journey. So with that, I think I'll hand it over to Bill to give you a little more color on Focola's capital spend and also... talk about it.

We have a plan to develop at the underground mine really by the end of 'twenty 'twenty four we're going to 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.

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

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 staff 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 and men in total and then tackle her in.

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

Bill: OK, thanks, Clive. I guess I want to start a little bit by just, once again, reiterating that 2023, even though it was 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 COLA in particular, the 4th quarter was a very good quarter for COLA, and it really led us into.

Speaker Change: 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 months youre going to see is that.

Speaker Change: There's the potential in 2020 for it to 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.

Bill: 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 2024 was always a bit of a down year as we basically worked our way through. Phase 7, some of the lower grades in the higher zones of phase 7 and then into the rich part.

Speaker Change: 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 that 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.

Bill: So what we have is we are now. We'll be developed, we'll be taking out the bottom of phase 6, which is, which is high grade and, at the same time, bringing phase 7 down. 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: 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 that we start in Q1 of 2024 for developing a regional stop.

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

Bob: So I think that's good bill.

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

Bob: Is drawing the most attention on this call.

Bob: I'll start out with with all of the positives of the project remains fully on schedule. The mill is actually ahead of schedule.

Bill: Originally, that was designed to be in 2023 and 2024. But 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, 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. As you know, 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.

Bob: 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 and.

Bob: 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 loans approximately plus minus.

Bob: Down the ice road.

Bob: As we previously indicated we have plenty of time for that we've got the additional trucks onsite Eric at the MLA and we don't see any.

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 a 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.

Bob: Reason that that shouldn't happen that still remains on the critical path of pets in very good shape.

Bob: On the.

Bob: 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.

Bob: 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, but that'll be tailing facility from day one.

Bill: 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. 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 Mentako are in, and really, basically, what we're talking about now is just finishing up, closing up buildings, and then getting a permit and then pre-stripping.

Bob: Regarding the cost.

Bob: This is what I'm trying to give a lot of fun.

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

Bob: The situation is as we took over the project.

Bob: Kind of midstream from Sabina Sabina had done their feasibility studies to being ahead order the first stuff, which was coming up the ice road in 2023 and have put together a schedule.

Bill: 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's the potential in 2024 to develop those 18,000 ounces. That would be way out in Q4.

Bob: We obviously did extensive due diligence to get through that but a lot of the things we're either.

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

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 to 100,000 ounces, which would have originally come on in 2024. Those ounces will now come on in 2025.

Bob: On site and we started working through it and we identify things, which be too 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'll just run through some of these.

Bob: Underground the initial underground.

Bob: 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 underground. So that when you talk about the difference between kind of that 90.

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

Bob: 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.

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

Bob: 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 ordering it.

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.

Bob: As quickly as possible and then putting it on <unk>.

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

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 gonna be bringing 3,000 loads, approximately plus or minus, down the ice road. 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 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 raise is in, and the team is working very well. I'm trying to get down to that crown pillar.

Bob: A major redesign of some of the mill structures to include a lot of the piping and a lot of the venting.

Bob: 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 but remember we've already bought it wants shipped at the site and now we're doing the whole thing again on a schedule. So here youre paying at least double but we felt that it was really important to make sure that the guys have the equipment in the neck.

Bob: Terry facilities in order to build it in time for the Q1 2025 season. So what we're talking about is really.

Bob: Mill infrastructure underground infrastructure.

Bob: The other big one is the is the 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 no. What happened was when they win Sabine It did their feasibility study they do.

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 facility or that open pit has to be mined out by kind of Q1 2025 because 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 on 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 already 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. 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.

Bob: 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 was a big Miss.

Bob: On their part.

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

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

Bob: Undersized.

Bob: 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.

Bob: Overrun at U C. But most of it really are things that will not be carried on in the 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: So our guys got on site, and we started working through it, and we identified things which V2 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.

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 Watson what is the risk factor going forward with the additional Oh, yeah Cathy.

Speaker Change: Cathy Smith.

Cathy: And also how much money have we spent so far both in terms of between what should be the some of the.

Bill: 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. 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 associated with it. Ordering it as quickly as possible and then putting it on C-130s to bring it into site. So there are expensive transportation costs associated with that. And it's the same thing with some of the other things which were outstanding.

As for money they spend and also what we've spent on what's left to spend in sort of a construction capital so to.

Cathy: To get to one.

Cathy: All up and running.

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

Speaker Change: Ice road, and we're not seeing where basically all of that has been included in the budgeting and yet increases in price.

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

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, and now we're doing the whole thing again on a schedule.

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

Speaker Change: Spent and committed.

Speaker Change: For 2024 in Q1, 'twenty 'twenty five we really believe that.

That.

Speaker Change: The risk of exceeding that budget is kind of a low risk.

Bill: So 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 Q1 2025 season. So what we're talking about is really. 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. What happened was when Sabina did their feasibility study, they didn't include the requisite number of hours for people working on site.

Speaker Change: Okay. Thanks book I think it's important to point out that I think 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'd like to find projects that are at the feasibility stage. So that we can design. The mill, we can decide what we want to build to do.

Speaker Change: At our weight.

Speaker Change: The situation, we had a company a single asset company, who only asset who is interested in trying to build a mine and they were very much.

Speaker Change: Obviously, a very extremely tight budget.

Speaker Change: We're the only alternative for them to be able to finance. The project was unfortunately to rely on private equity and the streamers.

Bill: 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 noticed is they didn't have enough hours, not the actual day rates, but the hours per day that people would be working. And so that was a big miss on their part.

Speaker Change: To the point, where they were giving up a lot of the value of the project upfront to try and get at their 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 have been at reach gold at doing it.

Bill: And, you know, we're in the process of correcting that. And then the last big one really is the powerhouse. The powerhouse was undersized and definitely undersized when you include the additional underground. 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 will be an expensive proposition as well. 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, Clive, you'd like me to talk about?

Speaker Change: So 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.

Speaker Change: With a single asset company with a lot of a lot of construction experience and with a financing are very painful and extremely expensive financing with private equity, which I think everyone knows that I bought a big setup I think it's very disruptive in our industry. The cost of these financings. So we've managed to there's a lot of pressure in the view of the steel to get the deal closed to be honest with you there.

Speaker Change: Last year before they do down there.

Speaker Change: The financing from Orion had all the other triggers that came in to finance the project, which probably cost us $200 million actually just to finance. The project. If you add up all the bells and whistles and the prepayment of a cold and albeit a nasty things that were required because traditional classroom was not available to the previous solar project.

Bill: Well, I think that, um... Some people are probably curious about the risk factor going forward with the additional... Oh, yeah....caps and spills, and also how much money we've 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 and the sort of construction capital to get the mine up and running. Yeah, sure.

Speaker Change: Most of the buckets skepticism about building a mine in the North is a single asset company and it would be.

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

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

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 pretty much everything that is in the MLA. Obviously, that stuff is coming up the winter road.

Speaker Change: You mean at plant two ships to go from Montreal to the Arctic Ocean Bachelors to that and then Bill dashboards.

Speaker Change: To bring everything I'll say, well, we actually were able to.

Speaker Change: Six ships up to bring everything we needed to complete construction and all the fuel that's just what we needed for the <unk>.

Bill: We're in the process now of putting in orders for the 2025 ice road, and we're not seeing, basically, all of that has been included in the budget, any increases in price. The labor issues have been addressed in the updated budget, 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've spent a little bit more than $700 million on the Goose Project, and basically, with more than 70% of the budget already spent and committed for 2024 and Q1 2025, we really believe that the risk of exceeding that budget is kind of low. Thanks, Bill.

Speaker Change: That 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 with the association.

Speaker Change: Association of our partners and we just had some great meetings with them here. This week and we're and so a lot of things that subpoena did well.

Area, So a lot of the Sabine and achieve the critical people in our view.

Speaker Change: I wanted to stay with the script project in terms of permitting in terms of indigenous relations.

Speaker Change: Some of the some of the technical people digitally the integration 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 first gold production in the first quarter of 2025. So just to give you a little bit of background, so sabine or get a good job and they did for sure now.

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.

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

Speaker Change: By accepting that offer to all of you.

To go to to.

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

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

Speaker Change: So a major asset and makes up it'll walk us through why we did it.

Speaker Change: Chose to take out financing Bell and a.

Speaker Change: Non dilutive prepayment of gold production.

Speaker Change: To make sure that we maintain a very strong financial position as we go through this transitional year.

Speaker Change: The capital spend as we need it for court et cetera, which were planned as expected, but also goose finish off the project.

Clive Johnson: 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 at BMO and B2Gold on doing things on budget and 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 challenging project with a single asset company with not a lot of construction experience and with 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 finances. 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: 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.

And then we'll open it up for questions.

Mike: Okay. Thanks Clive.

Mike: On the prepaid financing I think quite in touch 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.

Mike: So pre.

Mike: Prepays.

Mike: We looked at the gold market, we've got coal at near record highs and it's been over 2000 Bucks.

Mike: Over a quarter and for two quarters now means.

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 critical market.

Mike: The gold price.

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.

Mike: And with the Prepays do you have the 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.

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

Mike: Thanks.

Mike: And.

Mike: Yes.

Mike: For a total of 265000 ounces and we're going to deliver those ounces in the second half of 'twenty five one schools is 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.

Clive Johnson: Samina had planned two ships to go from Montreal up to the Arctic Ocean, the Doc Vassar Stainlant, and then build ice from there for bringing 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, et cetera, 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. 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. And so there were a lot of things that Sabina did well in those areas.

Mike: And when you look at when you look at this as a financing if if if you look the number of ounces we've got it <unk>.

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

Mike: Not the effective financing cost so we're at two 7%.

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

Mike: 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, where their CWC I N. G. National them you wouldn't want to say, thank you as always for their support.

Clive Johnson: And a lot of the Sabina 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, 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 first coal production in the first quarter of 2025. So just to give you a little bit of background.

Mike: They were there as clay mentioned, we did we did pre phase before syndicate took part in that part of Mr. Gabe.

Mike: So it just gives you a snapshot of where we are in 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 Q.

Mike: So by the end of the year, we've drawn 150, so were still.

Mike: I think youll see we haven't put our year end results I'd get but like I said I would 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 prepaid and then and then we'll have the balance of the prepaid plus.

Clive Johnson: So Sabina did a good job, and they will for sure now, and Don DeMarco, to complete a friendly takeover of the Silicon Premium to build this mine and do it well. 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 up 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 finishing off the project. Maintaining our dividend and maintaining a strong past position, so I think with that I'll pass it over to Mike to talk about the gold prepayment financing, and then we'll open it up for questions. Thanks, Clive.

Mike: Full undrawn line to finance ourselves as we go through and fund all 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.

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

The tailings the underground.

Mike: We started those prior year.

Mike: 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.

Mike: 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, and so we looked at the gold market. We've got gold at near record highs, and it's been over $2,000 for the past year, over a quarter, and for two quarters. This is the first time ever, I think that's happened.

Mike: We want to maintain our aggressive.

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

Mike: Priority.

Mike: Project versus goes just to keep that running through smoothly and get ourselves into first Gulfport in 2025, Q1, 'twenty five and maintain our 24 dividend at the current rate as we've indicated before and also to give ourselves the capacity and flexibility for maybe some investment decisions that might come late.

Mike: So you've got to look at the gold price and say, this is a good call, very attractive corporate. And with the prepaid, you have the benefit. When you're blessed with production, it's a great financing for an operating company. We're able to price them using a forward price just under $2,200. $2,190 was the average across the Moorbanks and for a total of 265,000 ounces.

Mike: And 'twenty four right that arent in the budget right now, but clients touched on them. So first one would be grammar lumpy, how do we see grandma or team.

Mike: You know by by the half year, we will have a picture of what we think that newer streamlined from lucky operation could look like so if we want to move forward.

Mike: And we're gonna deliver those ounces in the second half of 25, once Goose is up and running, and in the first half of 26. I stress, too, these are corporate-level prepays. We can source the production from anywhere.

Mike: Doing this pre phase now helps us have that.

Mike: Sort of flexibility to make some decisions and also.

Mike: And we'll talk to Namibia, so far but we're looking at the Antelope lunar Springbok or some version of like balance sheet.

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 over at 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 I'd like to give a shout out to four of our syndicate banks. We're in there, CIBC, ING, National, and BMO.

Mike: Animal.

Mike: Or would you go to which we think is an exciting underground prospect it could help supplement mill feed.

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

Mike: 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 most of the kind of things, giving yourself flexibility like this look forward past the end of 2004 and really.

Mike: I want to say thank you, as always, for all their support. They were there, as Clyde mentioned. We did pre-pages 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, in Q3, we had approximately $300 million in the bank cash, and I like to kind of keep it $250 to $300. To me, that's a decent level of liquidity for a group of 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 in Q4. So by the end of the year, we'd drawn $150.

Mike: The prepaid for me I'm, you know, it's an opportunistic financing with the gold price the way it is and.

Mike: I think it's a cheap financing for a company like ourselves when we have.

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

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

Speaker Change: There's not a lot of peoples mind is Molly and they cover the volume go many of Maui electric give some 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 too to keep it in context, Molly can spin for decades of very good country in terms of investment and building gold mines.

Mike: 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. And our objective 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 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 You've heard there is some significant capital development in Mali and Focola, and some of those are multi-year projects. So, they've been going on the tailings, the underground, and solar; we started those last year. Most of them will be complete or near completion by the end of 24, and then, of course, also Focola Regional.

Speaker Change: Successful gold mines with a history of Randgold, Barrick and other companies including ourselves.

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

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

Speaker Change: In terms of understanding the coldest them 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 level to build for Colo.

Speaker Change: $7 million.

Speaker Change: And the people in the government.

Speaker Change: Molly if realized a little over 50% of the economic value of difficult online.

Speaker Change: I think that's pretty good deal we used to go at risk when they get 50% off the back of all the benefits 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 peripheral out because the 2012 mining code and the government clearly recognizes just as recently as a couple of weeks ago. When we were down there good for colas under the 2012 code.

Mike: We've got some spending in there just to get that ready, and so when we get those licenses, we're ready to go. We want to maintain our address, exploration program of $63 million in the budget for exploration, both at Brownfield and for Greenfield, and they could certainly give more details if needed there. A priority, you know, a big project for us is 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 How do we see Gramelotti?

Speaker Change: The 'twenty two 'twenty three codes is looking basically to increase the government's interest significantly.

Speaker Change: In gold mining projects in Mali.

The regional mutual new areas that we would have a truck or from.

Speaker Change: Our governor those 'twenty three coach the conversations with the government being understanding the 20th Street food and frankly respectfully.

Speaker Change: We had a great relation with government, but showed a couple of weeks ago would they consider be too 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 probably 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.

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 Don DeMarco and Ralph Profiti. I'll talk to Namibia so far, but we're looking at the antelope zone or springbok or some version of a bouncy animal, and Ochakota, which we think is an exciting underground prospect that could help supplement mill feed in those stockpile years at Ochakota, where if this pans out, we can bring the underground in to encourage, and Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profit I think one of the topics that is on a lot of people's minds is Mali and the government of Mali and global mining in Mali.

Speaker Change: Doesn't make economic sense.

Speaker Change: Truck or so we work with the government. We think there's we think there's a.

Speaker Change: For mutual benefit both from the government from the people of Mali to continue to increase production and for core trucking ore.

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

Speaker Change: Cola complex first was trucking ore.

Speaker Change: We've talked about which is 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 should exceed them.

Mike: I'd like to get your comments about that, from our recent trip down there and negotiations with the government. So I think it's really important to, that is, 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. 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 it 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 Fukunami. I think that's a pretty good deal.

Not only in the oxidize separately material, but also in the sulfides.

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

Where are we going to spend our investment dollars.

So now he's got a good place to be invested with a reasonable tax regime and many companies, including ours are more importantly, the people at valeant benefited from that.

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

Speaker Change: Yes, Maui still an attractive place to go mills.

Speaker Change: Official go months, and we're trying to understand that a little bit better at trying to work with the government to understand the implications of some of the proposed tax limit or increases that the government is looking for.

Speaker Change: So at the end of the day, we have.

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 Mali for Malians, 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 basically looking to increase the government's interest significantly in gold mining projects in Mali.

We.

Speaker Change: Comparable 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 their money potentially in Colombia is to study. This is going to come out of the first half of this year indicates that we can build up a mine there and invest cigna.

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.

Speaker Change: 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 of foreign investment in their country. So I think theres a level of understanding between us and them.

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

Clive Johnson: And the regional areas that we want to truck ore from are governed under the 2023 code. So the conversations with the government have been understanding the 2023 code. And frankly, respectfully, we had a great relationship with the government that showed 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 mill.

Speaker Change: Sure.

Speaker Change: Profitable.

Speaker Change: 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 continue our conversations with the government and.

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

Speaker Change: Restaurant, a cold call Blackstone, let's call them out 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: Facts of the matter is 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.

Speaker Change: To for the betterment of all.

Speaker Change: Bali.

Speaker Change: So I think we are bottom line is we've done it we've done around the world, which would be the vehicle we have.

Clive Johnson: So that's the conversation that is 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 on that. 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 the ore. We talked to the government about the fact that we have two potential stages of coalescence, and Ray Donovan. 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: One of the most successful companies I think in gold mining sector, where we have been in managing risk and understanding them.

Speaker Change: The best way to manage both the risk is to deliver on the promise to.

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 could've done right people to ask some questions.

Speaker Change: 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 you're using a speakerphone. Please pick up your handset before pressing any key.

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

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

Speaker Change: <unk> Habib with Scotia Bank. Please go ahead.

Habib: Hi, Clive and BT team.

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.

Clive Johnson: There's a 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 taxes and other increases that the government's looking for. So at the end of the day, we have, you know, the... Capital dollars we are prepared to spend around the world as we've done so successfully.

Habib: And sustaining projects in 2024, so just a couple of questions from me number one.

Habib: 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 are looking to do in 'twenty 'twenty four and.

Habib: Bill that's still what are your team or is there anything that's still outstanding that you want to change now rather than kind of have in place a startup.

Speaker Change: Uh huh.

Speaker Change: I'll comment on that briefly and give it to bill I mean, the history of even be to go to 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 are Mike we rebuild them to start up his sharp well were disappointing they have especially with a very high grade stockpiles were going to have that goes so.

Clive Johnson: It's a competition. Do we want to spend our money potentially in Columbia, as the study that's going to come out of the first half of this year indicates so we can build a mine there and invest significantly in our Columbia, or do we build a second mill in Aislinnamp nearby, in the Focola complex, et cetera, et cetera, or other opportunities?

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

Yeah. Thanks Clive.

Bill: A very valid point, we don't anticipate.

Bill: Startup issues I would tell you.

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

Clive Johnson: 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. 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, 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 people of Mali and what works for a profitable. Coal Mining Company is looking to grow responsibly, as we've 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. So, I know there's a lot of rumors out there.

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

Bill: They missed it on the power and 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.

Bill: That's something that hopefully will get somebody with Dallas power across the fans 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.

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

Speaker Change: Okay. Thanks Bill for that.

Speaker Change: And that's kind of segue to my next question in terms of the ramp up that goes in 2025.

Speaker Change: Production guidance is kind of around that.

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

Clive Johnson: There are a lot of people getting half the story. The fact of the matter is that the government of Mali understands the importance of coal 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 can continue to work with them to, you know, for the betterment of Mali. So I think we are the bottom line is we've done it around the world between me and green to gold. We've been one of the most successful companies, I think, in the global money sector at managing political risk and understanding the problems that link these countries and these governments. So the best way to manage political risk is to learn about the problems that link 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, but also going forward. So I think with that, we' So operator, if you can, invite people to ask those questions.

Speaker Change: Yeah.

No I mean once again.

Mark: Did you hear the previous technical report started kind of that month zero. So I think if you look at.

Mark: We're still we're still saying approximately 300000 ounces a year.

Mark: At a minimum over that over the first five years on average.

Mark: Nothing changes there, but if you start on let's say we used March 31.

Mark: The end of Q1, and then you have a ramp up of three months, it's not that hard to get to to get to the mid 200, So I don't.

Mark: It's actually kind of surprised at 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: Just switching gears on the Galapagos regional I guess.

Speaker Change: Like you kind of give us a very good overview in terms of how great. The relationships are with.

Operator: Certainly. 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: The million government, how kind of talks are progressing is there any kind of you know kind of a point that you guys are Stefan I mean is there anything kind of color that you could provide us too.

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 Ovais 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, there's 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, again, why the Goose CapEx increased. And I'm actually glad that you are making these changes now rather than having issues at startup.

Speaker Change: Is that Malayan government kind of serious about you guys. Moving forward is is that you know are they kind of get going around you know, giving you that women I mean, whereas things stuck out right now.

Speaker Change: Well I guess 60 2023.

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

Speaker Change: And its 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: I was I was.

Speaker Change: After assess those 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 that you called the implementation of it and what it really means not for resale and.

Speaker Change: Not for sure, but what it means for regional production. So it's very important to like many other governments around the world in the gold mining industry developing countries. They don't kill the goose that led us to go back.

Bill: 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 a lot of calls.

Speaker Change: And that's the balance to strike between attracting investment of companies like ourselves to build the next <unk> 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 Goldman has all of its stakeholders, including the government of that.

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 that are in the mine.

Speaker Change: People have already because we don't have to blast and crush the ore we since we took it out of the ground and we've already built that roads. So we can we can quake economically hopefully.

Clive Johnson: We build them to start up and 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 anticipate startup issues.

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

Speaker Change: The limits and implications so not only for 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 mounting a company that I know of or the government is going to spend $600 million to build a mine like for Cola.

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.

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 will 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 each year and cut down on tankage. That was one of the big misses on the Sabina side.

Speaker Change: End of the day, they need for divestment 80 responsible respectful for an investment like other companies in each vote.

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

Speaker Change: Consultation is we're having.

Speaker Change: Government and we'll find that balance to continue to attract foreign investment go away.

And Raleigh.

Speaker Change: Okay.

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

Bill: 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: Pennsylvania good questions. Thank you.

Speaker Change: Yeah.

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.

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?

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

Bill: First point earlier than Q1, 'twenty five and lighter.

Bill: Sure.

Bill: Say that question.

Bill: [laughter], but allows to that quickly and then I'll give it over to bill.

Bill: Well I'll, let them of course.

Bill: Let bill answer that.

Bill: And 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 that's it.

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. So nothing changes there. But if you start on, let's say, March 31st as the end of Q1, and then you have a ramp-up of three months, it's not that hard to get to the mid-200s. So I was actually kind of surprised that when it came out in the market, that it was a bit below expectations.

Bill: Really I don't see it happening much faster.

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

Bill: Okay.

Bill: Okay. If I was 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 genre Hall or a regular just from 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 developments in one.

Bill: 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 Malaysian government, what kind of talks are progressing. Is there any kind of, you know, we are working on? Well, I think the 2023 Money Code is relatively new; in fact, I just came out with it. I think there was 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 with VTugold and all of its stakeholders, including the government and the people of Mali. Because we don't have to blast and crush the ore, we simply dig it out of the ground, and we've already built the roads.

Speaker Change: But.

Speaker Change: We do recognize that the group goes project life of mine plan is gonna be finalized in the first quarter of 'twenty 'twenty four.

But does any of the 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 with a beach, who go mill would normally have when you look at for cohort, where we started and where we are today.

Speaker Change: They are dramatic.

Speaker Change: Expansion of the mill, 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.

Speaker Change: I'm doing U S estimate.

Speaker Change: 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 climate is not a b to design now kind of at that 25% behind factor, even though to get bigger and so what you're really talking about is can we bring higher ounces forward in that.

Clive Johnson: So we can quite economically, hopefully, mine additional ore, but in terms of the second mill or other foreign investors coming in and building coal mines in Mali, as I mentioned earlier, it's a competitive situation for our investment dollars. So we're really working with the Mali government from a respectful position and from the mutual success we've achieved in the past to understand the limits and the implications. So Mali, for Malians, self-determination is something that we all aspire to.

That's really what we've done in our current mine plan.

Sabina kind of conceptually talk about it without putting a numbers on it and at the end of the day bye.

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.

Clive Johnson: At the end of the day, I think that it happens over time. There is not a Mali company that I know of or the government that's going to spend $600 million to build a mine like Frikola. They need foreign investment; they need responsible, respectful foreign investment like other companies in VTugold. It's such an important part of their 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 Golang in Mali. Thanks for the color on that slide as well.

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

Speaker Change: But I want to say that not all of it.

Speaker Change: We're spending we have a large exploration budget was tornado measures a vigorous year 'twenty Edmonton use. So we have a large exploration budget to do so why is that well because there's 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 drove the envelope deposit is 100 meters below the previous.

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

Clive Johnson: 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: 20 meters of Ain't grabs clearly these there's numerous shows unless 80 kilometer long trend banded iron formation. So we're spending that money in exploration because we believe the potential.

Speaker Change: <unk> has tremendous there and once again in the second at ourselves Thats build goes.

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 the first pour earlier than Q125 in light of this? I'd ask you to phrase that question.

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

Speaker Change: Okay.

Speaker Change: Thanks, and her final question just shifting to Maui.

Operator: Well, I'll answer that quickly, and then I'll give it over to Bill. Well, I'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.

Speaker Change: Quiet 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 92000 2012.

Speaker Change: Kurt.

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

Speaker Change: Government clearly has come out with the new mining code I think the key is through the issues around that and go to the utilization of the 2023 quota and 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 there.

Bill: OK. If I was a betting man... We're in this industry, you're sort of making bets every day, but if I were a betting man, I would think that given the track record of Bill's team and John Rahala, our medalist, just 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 then my next question is whether to stick with Goose.

Speaker Change: I'll get a groundswell of this into this firm as the 2012 code.

Speaker Change: For all the aspects of Cola are protected.

Speaker Change: 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: There was some messaging in the release that some of the extra spend might reduce OPEX, particularly underground development and so on, but, 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 spend potentially lead to higher production? them might have been forecast in the feasibility study. Well, once again, that's a bill. That's it. But unfortunately, we didn't get to choose the mill. Sabina did, and it's a good, good mill.

Speaker Change: Two actually truck or and we're confident that there's a way for them to cover at strip motivators for more revenue from go away.

Speaker Change: Including from vehicles, the fastest way of the country to get more revenue from good money used to reach an understanding of how we can profitably.

Speaker Change: Truck or too difficult to know.

Speaker Change: Yeah.

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

Thanks, Doug.

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, Okay, I'm, sorry, I was on speaker phone.

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 the bill that we have, and I'll do all of you as soon as I can.

Anita Soni: A few questions just firstly on the <unk> 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.

Anita Soni: Could you sort.

Anita Soni: Sort of give us an indication on how instead of in the low cost originally but on how.

Anita Soni: What kind of constantly thinking about if you were going to truck it to so that we can try to understand that the economic when they were off to a great country.

Bill: Yeah, so I don't, in the short term, the answer is no. I mean, what we've done really, the mill is kind of, as Clive just said, is 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, can we 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's 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, you know, some success with some downgrade higher grade exploration, I don't see that in the short term. I would say that we have a large expression budget at Goose of 28 million US dollars. So we have a large expression budget at Goose, and why is that?

Anita Soni: Well I mean, where are we at in terms of this the study on that Bill.

Anita Soni: Where are we at an interesting study with our own internal study in terms of trucking warm.

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 colon line update as part of the original date.

Anita Soni: So I think on the face of that is quite attractive because you've got some good grade material. There you don't have to.

Anita Soni: Just crushing it when they've already built most of the infrastructure that maintenance bookings from the trucks. The Roes we were just down a couple of weeks ago.

Anita Soni: Where we're really ready to go when we get the you know what the government. We will have some pre stripping to do for a few months, but that won't be into trucking and so because of the situation where the mill is already built difficult no and the nature of the grain.

Clive Johnson: Well, because there's tremendous expression 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 the Elmweld deposit is 100 meters below the previous extent of the drilling that we had in the past, to write an article about how we can improve the market for oil in New York. Okay, thanks. For the final question, just shift to Mollie.

Anita Soni: Of the saprolite material that we're seeing and I forgot what are complex to the doors, we were pretty confident that there's an economic case there.

Anita Soni: And that grade was around two gram per ton does that is that correct.

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

Speaker Change: About two grams or more that are little higher.

Speaker Change: Yeah, it could be a little higher once again, we're gonna be selectively mining so you.

Speaker Change: The study is going to look at the various iterations, but two gram certainly makes money.

Speaker Change: Okay and then.

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

Don Demarco: 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.

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 the car.

Speaker Change: Are you talking about for Golar.

Speaker Change: Yeah, Yeah, Yeah, sorry, I mean I think.

Speaker Change: I think I'm okay.

Speaker Change: Okay, I stop and the other team simply put you'll have.

Clive Johnson: I think that the government clearly has come out with a new mining code. I think the key issue is rather 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. Focola, aspects of Focola are protected under the 12th Code, and they've acknowledged that, such as ownership, etc.

Speaker Change: Less ounces of production that for colder this year because of.

Speaker Change: The government delaying them.

Speaker Change: Delaying the exploitation permit to truck or some of that cost was 80 200000 ounces and the government across the government that is well there's a portion of that so therefore simply put you have less houses to divide your costs by so therefore your costs are somewhat higher billings et cetera.

Speaker Change: Mike.

Speaker Change: All right.

Speaker Change: You can say about the.

Speaker Change: The only thing I can add to it is clearly we are.

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 will be a little bit higher but we've got a very good handle on the kind of the reagent costs without global purchasing we've got a very good handle on.

Speaker Change: The milling cost the power cost the labor cost. So all the all of the main drivers you've got a good handle on but it's just where we are where we're at in the lifecycle of the mine.

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's very motivated for more revenue from gold mining, including from me to go the fastest way in the country to get more revenue for gold mining is to reach an understanding of how we can profitably, Chuck Or Okay, thank you very much. That's all for me. Good luck with 2024. Thanks a lot. The next question is from Anita Stoney with CIBC World Markets. Please go ahead. Hi, can you hear me?

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.

Speaker Change: Yeah.

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

Speaker Change: Okay.

Speaker Change: And then.

Speaker Change: It just.

Speaker Change: Thinking about 2025 article last mile you mentioned that youre going to be in higher grades at Nicola and at Cardinal.

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

Speaker Change: So I don't think I said higher grade difficult car to what I said was we'd be in phase six in the first half of the year and in the bottom of phase six.

Speaker Change: The high grade stuff definitely plus 222, 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.

Yes. Okay, good. Sorry. I was on the speakerphone.

Operator: So, a few questions. First, on the Focola Complex. 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 you would be thinking about if you were going to truck it, just so we can try to understand the economics when the royalty rates... Well, I mean, where are we at in terms of, uh... Bill, Mike, where are we at in terms of the study of that, our own internal study in terms of trekking or... Well, I think I think we're going to come out with so-called complex studies by the end of the first quarter.

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.

Speaker Change: And send them back to that two and a half grounds again.

Speaker Change: That's what I was talking about 2025, there so two and a half but yeah.

Speaker Change: Okay.

Speaker Change: Think about next year.

Speaker Change: All right you guys were saying that you would have higher grade.

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

Speaker Change: A question on the capital the non capitalized stripping underground development at back River.

Speaker Change: Of the $109 million is that.

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

Speaker Change: Well, we see some more of that in 2025 as well or is that just a 2024.

Right.

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

Operator: That's what we said, for about a call of mine, updated, and part of the original. Yeah. So I think on the face of it, it's quite attractive because you've got some good grain material there. You don't have to blast or crush it, and 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.

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

Speaker Change:

Speaker Change: Basically.

Speaker Change: We'll continue to see it through commissioning so we're kind of in that Q1 2025.

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

Bill: 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. Because of the situation where the mill is already built, the Fragola Mill, and the nature of the grade of the sample material that we're seeing in the Fragola complex to the north, we're pretty confident that there's an economic case there. And that grade was around 2 grams per ton. Yeah, I think it's about two grams or more or a little higher.

Speaker Change: 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 at Anita just on your cost profile, what we'd seen mutual is a big part of our cost right now.

Speaker Change: It's around 30% so we'd 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.

Speaker Change: Last year, the fuel prices despite market fluctuation the states of fuel price and it was pretty consistent through the year. So really what were 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 three we're assuming we're going to see that in 'twenty four and just.

Bill: 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 the unit costs and consumables. You know, what's happening at Goose is the same thing. So are you talking about Foucault? Yeah, I am talking about Foucault.

Speaker Change: For your information.

Speaker Change: Okay. Thank you.

Speaker Change: The next question is from Kerry Macquarie with Canaccord Genuity. Please go ahead.

Carey MacRury: Hey, Good morning, guys. Just one for me Bill you mentioned, the underestimation of labor hours and I'm, just wondering how you're positioned with the workforce up there or are you fully staffed up for 2024 and any issues in getting people up there.

Speaker Change: No we haven't.

Speaker Change: <unk> been the opposite we've.

Speaker Change: I think it's kind of a btu thing.

Bill: Yeah. So yeah, I mean, I think. Bill Cass, Napa de Dea, Dave Simply put, you have... fewer ounces of production than Focolo this year because of Delaying the exploitation permit to truck oars, so that cost us $8,200,000. The writing testas if this test is successful, will its health return?

Speaker Change: Quite a lot to talk about treating people with respect and.

Speaker Change: At the end of the day because of some of the things youre doing a little bit different than other mines, we haven't had any problems drawing.

Speaker Change: Poised and we are in really good shape for 2000, 22020, but as far as specialty so I don't know if it's if the reputation of our construction team and operation team or if it's what we're doing as far as within the local communities, but we had very good response to.

Bill: You can say that the only thing I can add to it is that clearly we are it is an ounce issue is the main thing, but we are deeper in phase six right now. 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 the kind of the milling cost, the power cost, the labor cost. So all of the main drivers, you've got a good handle on, but it's just, you know, where we are, where we are in my life cycle. Okay. Well, that explains if your mining costs are higher because you're deeper in the pit.

Speaker Change: Later request.

Speaker Change: 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.

Speaker Change: Your power costs were dropped here.

Speaker Change: Well, we had made.

Speaker Change: Maybe you could face.

Speaker Change: So just one for starters you know the solar plant we saw that.

Speaker Change: As one capacity reduced our mill operating cost by close to 20%.

Bill: And I assume that will change over into next year? We're coming right up into phase seven right now. OK, think about 2025 for 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?

Speaker Change: Various between 17 and 19%.

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

Speaker Change: The 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 operation 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.

Bill: So I don't think I said higher grade if a colon card and what I said was would be in phase six, in the first half of the year, in 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.

Speaker Change: Okay, great. Thanks, guys.

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, 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 seven, back to those two and a half grams again. Yeah, that's what I was talking about 2025 there. So two and a half grand.

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: Thank you operator, and thank you for all your attention.

Good question.

Clive Johnson: I'd like to close with.

I think initially some extensive I think it's informative and the key is back the key point back is that a.

Clive Johnson: 2020 for us and we're going to be another successful year for the company, but I said transitioned on here that for core also with what we're doing that goes because I think that the commitment.

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 of $109 million, like 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 concerned yet. So I'm a bit, let me just think about this a little bit.

Clive Johnson: As a company we believes that our majority of our shows support the idea that we are responsible for getting comfortable 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 for 2025, there's going to be a very good year for us with a significant increase in corporate.

Clive Johnson: Potentially.

Bill: Basically, you'll continue to see it through commissioning. So, you know, kind of in that Q1 2025. Okay. All right. Thank you. That's it for my questions. Sorry, I'm the queen of mundane questions, but they helped me with the modeling.

Clive Johnson: And getting into pet or greater for coal in trucking more and then of course, the promise and potential of things ought to see but things that came from a lot of pain and finally I would just like to extend the Palm Beach gardens.

Clive Johnson: Employees.

Clive Johnson: Arkansas.

Clive Johnson: So those are involved in a tragic plane crashed happened in the north near the diet.

Diavik mine this is a tough business.

Dangerous business in certain ways, sorry, if it all says to the family of those people that have perished in a plane crash yesterday.

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%.

Clive Johnson: We're all of US together 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.

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. And guys, just one for me, Bill, you mentioned. I'm just wondering how this issue, Transcribed by https://otter.ai

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: [music].

Carey MacRury: No, we haven't. It's actually been the opposite. I think it's kind of a V2 thing.

Clive Johnson: Hum.

Bill: 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, or 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%, very good, something like at www.thevenusproject.com back 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 day, 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.

Clive Johnson: Sure.

Clive Johnson: [music].

Clive Johnson: Yeah.

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Yeah.

Clive Johnson: Hum.

Clive Johnson: [music].

Clive Johnson: Hum.

Clive Johnson: Hum.

Clive Johnson: Sure.

Clive Johnson: [music].

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.

Clive Johnson: I'd just like to close with saying that I think the news release is extensive, but I think it's informative. And the key point 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 the majority of our shareholders support the idea that we are a responsible, comfortable running company, but we're also 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 coal production because of Goose and getting into a better grade of COLA and trucking more. And then, of course, the promise and the potential of things we'll have to see, but things like Grand Malate.

Clive Johnson: And finally, I would just like to extend our condolences to the families of those involved in the tragic plane crash that happened in the north near the Dyatik 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. 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. Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Ralph Profiti, Don DeMarco, Don DeMarco Ralph Profitti coming soon www.mytrendyphone.co.uk www. TheBusinessProfessor.com