Q4 2023 B2Gold Corp Earnings Call

[music].

Operator: Thank you for standing by. This is the conference operator. Welcome to B2Gold Corporation's fourth quarter and full year 2023 financial results conference. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero.

Thank.

Thank you for standing by this is the conference operator, welcome to beat Chico corporations fourth quarter and full year 2023 financial results Conference call.

As a reminder, all participants are in listen only mode and the conference is being recorded.

After the presentation, there will be an opportunity for analysts to ask questions. Rejoin the question queue. You May Press Star then one on your telephone keypad shooting.

Should you need assistance during the conference call, especially the one 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. Thank you, operator. Hello, everyone.

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

Thank you operator, Hello, everyone. Thanks for joining us today to discuss the fourth quarter 2023 financial results and also the full year 2024.

Clive Johnson: Thanks for joining us. We're here today, as the operator said, to discuss the fourth quarter 2023 financial results and also the full year of 2024. I want to start the call off by, again, extending the condolences of all of us at B2Gold for the treacherous loss of life suffered in Bali. On February 15th, there was an armed attack on a convoy of our buses.

I wanted to start the call off by.

Again, extending the dogs as well all of a sudden each school for the tragic loss of life.

<unk> wasn't it.

Tableau public work.

Clive Johnson: And fortunately, uh... Four people were killed in the attack, so we'd like to extend our condolences and the families of those who passed, and also our best wishes for the full recovery of Paul Strickland. We are with the government working on an extensive investigation of what happened in the incident that happened about 300 kilometers from the Focola mine on the national highway, which is the way that many of the mines in the area and people in the area travel along the main highway. So we've had a trouble spot there in the past. We've taken steps with the government to improve security. We will continue to work with the government to improve security for our employees throughout, to and from the mine. The investigation will help us understand the motivation of the attack, who the attackers were, and with that, which will be done shortly, we'll take some additional steps. The priority of B2Gold has always been, for our 6,700 employees, always been safety. Have a great day!

Unfortunately.

Four people were killed.

Well, we'd like to extend out the door.

Our families.

Oh, okay.

Past also especially for these full coverage of the hospital.

We are with the government or she got a lot of.

Extensive investigation of what happened.

This happened with Congress.

It's a coal mine all the National Highway, which is the way the.

Many of the main area of people in the air travel.

Trouble me at all.

We've had a trouble spot there in the past, we take a social and cultural approach journey, we will continue to work with a couple of tier two securities.

Well it's shrunk.

Hum.

Combined the investigation will help us understand why.

Elevation of the attack.

We're done.

That will be done shortly will take some additional steps.

The priority of each well, it's always been for our 6700 employees.

That's always been the C G.

Although people, including transportation.

Clive Johnson: better track records in our industry. We're proud of that, and we consider safety a level one priority. Here's some talking about 2024. I'm going to head out here shortly. Mike Sinema, our Chief Financial Officer, is going to run through it and give you a quick high-level overview. Build a Future with B2Gold has met or beaten its expectations, our guidance, which is, I think, a tremendous track record that we intend to keep going into 2024 and beyond. 2024, as Michael talked about the 2023 results, just to touch on 2024, we've seen for quite a while now that this is a bit of a transitional year with the construction of the Goose Plant, but also with some various capital expenditures that we have in Focola, for example, where we're building another New Tailings Bond, we're building another extension to the solar plant.

Top safety record on site.

You bet.

Our industry and we're proud of that we just said that the city is what occurred.

Sure so talking about the two.

2024, when they have up here shortly to like I said about our chief commercial officer to run through.

A quick high level overview.

The news release is quite extensive and.

We'll talk about.

A record gold production in 2020 for truckload each year in a row the company is.

Beth or beat its.

Its expectations or guidance.

The track record that we intend to keep going into 2024.

Yeah.

2024, as Mike will talk about in 'twenty, two promotions touch about 'twenty, 'twenty, four which symbol for quite a while this is a bit of a transitional year with the construction of the goose, but but also with some various capital expenditures. So we have that.

That's a cola for example, where we're building another.

Tailings ponds building better essentially to the solar plant.

Clive Johnson: We have a bit lower production for this year because we didn't get the permits from the government, the expropriation license from the government of Mali, in time to produce the additional 8,200,000 ounces we were hoping to produce in 2024, as we start tracking ore from the Focola Complex in the north, the Anaconda area, down to the Focola Mill. So we've been working with the government, and we're hoping to get clarity from the government quite soon and move on to starting to track that ore later this year, but we haven't put anything in a 24 hour period. We're starting that up in 2025, which could add 8,200,000 ounces to the annual coal production, a significant amount of that, of course, to the benefit of the government of Maui. So we've had some positive meetings, and I think we're closing in on understanding the implications of the 2023 mining code, which Focola has grandfathered into the 2012 code. It's very important to remember that the regional projects are subject to the new code because those are explorations. Licenses are right now.

We have a bit lower production for this year, because we didnt get the permits from the government.

Coupled with Valeant.

To produce the additional 80 200000 ounces, hoping to close 2024.

As we as we.

Do you start to touch more problems.

What's difficult complex in the North Dakota club here. He does that's called a bill. So we're working closely with government, we are hoping to get clarity from the government.

So let's move on to starting to trucks that are later this year, but we haven't put anything out of 24, which stood at about 2025, which could add 200000 ounces to the actual coal production.

And of course, the benefit I think it was about so you've had some positive meetings with you.

We're close to get it all done.

Understanding the implications for 2023 body cool what Colin is grandfathered under the 2012 code the Supreme Court.

Those projects are.

And subject to the new code because those are exploration license.

That's right.

Yes.

Clive Johnson: Going into 2024, we are in an externally strong financial position. We were going at the end of the year. Subsequent to the year-end, we've completed a prepayment of gold revenues financing, which is an excellent way to further strengthen our financial position given the large capital expenditures we have this year on some of the things I talked about, but also, obviously, construction as well. That financing was an excellent transaction. It's around 3% cost of capital. It is a conglomerate for many of our gold mines. It represents about...

So it's going into 'twenty into 'twenty 'twenty, four zero extraordinary strong financial position.

We were going at the end of the year subsequent to the year I believe.

We did a prepayment of gold revenues financing.

So that's all of them. So I would just further strengthens our financial position given the large capital expenditures that we had this year.

The things I talked about but also.

Obviously, the construction as well so that's a financing most of extra financing so rough 3% cost of capital.

Let's see.

For many of our go lives and it runs just spoke to pay back in 2025, and 2026 and represents about 11%.

Clive Johnson: It came back in 2025 and 2026, and it represents about 11% of gold production during those years, and it was done at around the 2020 price of gold. So I think very effective financing, you've seen us do it before, back in the day when it was 2014, when we pioneered this financing for the industry, which has subsequently been done by numerous companies, but it's an excellent way to maintain a very strong balance sheet, and when you have significant capital expenditures coming, it's a cheap form of financing and exposes very little of our gold, a small percentage of production being locked in for So, in 2025, we're looking to bounce back to another very strong year because of having the capital expenditures finished, some of the things we're doing at Focola, etc. Goose is scheduled, on schedule, to start production in the first quarter of 2025.

Gold production during those years and that was done at around 2020.

Price of a cold.

So I think a very focused fashion, you've seen distillate before back coming back in the day with 2014, when we pioneered this industry, which has subsequently been done by numerous companies.

It's a way to maintain a very strong balance sheet and when you have significant capital expenditures cutting it said she pulled the financing.

I suppose there's very little of our cold nutrition, but a small percentage of production you walked in most years so 2025.

To bounce back to another very strong year because of having the capital spend finished kicked off some of it you're doing a call et cetera.

Schedule all scheduled to start production in the first quarter of 2025, and we should set record gold production again.

Clive Johnson: And we should set record gold production again in 2025, with Goose coming on, and then better production, more with Truckee Ore and better grade at Focola beginning in 2025, and much less capital expenditures across the board. So I think with that, I'll pass it over to Mike to give you an overview of 2023. Again, another very strong year for the company, and Bill, who is up at Goose, who is going to give you a Goose update, Snowstorm Independent. He's still in this connection.

2025, coming on better production war with trucking or better created for call it getting into 2025.

So much less capital expenditures across the board. So I think with that I'll pass it over to Mike to give you an overview of 2023 are again, another very strong year for the company.

After mikes.

This thing that bill it was up it goes so that gives you a goose updates though.

It'll start dependent.

But he's still those connections and then we can open up for questions. So with that if you'd like.

Mike Sinema: And then we're going to open up for questions. We're going to start with the quarterly results. Revenue for the quarter was $512 million. We averaged just under $2,000 an ounce in 1993.

Okay. Thanks, Bob.

Let's start just the quarterly results our revenue for the quarter of $512 million, we averaged just under 2000 Bucks an ounce 1900 and 93 so.

Mike Sinema: Thank you, GoldPrice. It's a good quarter and a good year for the GoldPrice. I think for the full year, we came in at $1.9 billion at an average price of $1,946 an ounce, which, when you think about the fact that we budgeted at $1,700 an ounce, that's a good result. Production-wise for the quarter, gold produced from our operating mines was $271,000 and $289,000 if you include our share of Calibre.

Thank you bold price it was a good quarter and a good year for the gold price I think for the full year. We came in $1 9 billion at an average price of 19, $146 an ounce, which.

You think about the fact that we budgeted at $1700 an ounce. That's a good result.

Our production wise for the quarter gold produced.

From our operating mines and 271000 tons.

89000, if you include our share of caliber.

Mike Sinema: I think production played out like we thought for Q4, but the big winner was for coal, 143,000 ounces versus 109,000, and that's really, for coal, as expected, we had some changes in timing there between Q3 and Q4, just some delays at the end of Q3 to get into Focola's phase 6, but we got in there in Q4, we got the grade we were expecting, kind of like we did the year before, and Focola And then if you look at, shout out too for the quarter, I think for Ochoa Koto, 81,000 ounces, just a couple thousand ounces higher than budget, but that's actually a quarterly record for Ochoa Koto, and it just reflects the fact that we got into a good grade both in the Ochoa Koto pit and the Wolfshag under.

I think I think production played out like we bought for Q4, but the.

The the Big Winter was Nicola 43000 ounces versus 109000, and that's really for coal as expected are we.

We had some changes in timing there between Q3 and Q4, just some delays.

At the end of Q3 to get the coldest basics, but we got it in there in Q4 and we got the great. We're expecting kind of like we did the year before and Oh call. It budget significantly by almost 35000 ounces.

And then if you look at Oh Shadow too for the quarter I think for one Chicago 1000 ounces, just a couple of thousand ounces higher than budget, but that's actually a quarterly record for own Chicago and it just reflects the fact that we got good grades in that.

I know when you go to bed and then we'll check underground mine then looking at the full year.

Mike Sinema: Then looking at the full year pictures, again, kind of how we guided it, I think, in Q3, total, including our share of caliber, 1,061,000 ounces, which is in the upper half of our guidance range, and I would say again that that, on a consolidated basis, is a record annual production level for B2Gold. Let's talk a little bit now about what that all meant on the cost side. Again, not spending too much time on this because I think these results really ruled out what we saw through the year and what we guided to Q3 and what we expected for Q4. So in the quarter, the big winners on the cash cross side were Focola and Mizbati.

It's just again kind of how we guided I think at Q3.

Oh, no, including our share of caliber.

1.061 million ounces, which is in the upper half.

All of our guidance range and I would say again that that on a consolidated basis Theres a record annual production.

For me to call.

Talk a little bit now about.

Was that all on the cost side again.

Spending too much time on this because they.

Really nice results rolled out what we what we saw through the year and what we guided in Q3 than what we expected for Q4.

In the quarter is.

The big winners on the cash cost side were for colon, Ms body ethical or without additional production that came through and building solid.

Mike Sinema: Focola, with that additional production that came through and the ability to sell it, $605 an ounce, quite a bit, $67 under budget, and Mizbati, $910 an ounce. $71 under budget, and overall, we came in for, All of the operations we came in at $633 on that, which was $20 on that, continuing to benefit, I think, from lower fuel prices against the budget that we saw, and then production beats every might be production slightly for the. When you look at the all-in sustaining cost side, it kind of mirrors what we're saying there. For all operations, including our share at Cal, we're $1,250,000 now for the quarter, which was slightly above budget, but it is really a function of two things. You got the beat that we had on the cash cost, then you got some CapEx that we were catching up on from prior quarters, particularly in Mali, where we had pretty significant CapEx years, sustaining capital, to get us ready to start moving into 2014.

$605 now, it's quite a bit to $67 under budget and Ms body $910, an ounce, which is $71 under budget and overall, we came in for <unk>.

All of the operations, we came in at $633 $920 under budget continuing its benefit I think from lower fuel prices against budget that we saw and then production beats every might be production slightly for the year.

Yes.

And when you look at the all in sustaining cost side.

It kind of mirrors, what we're saying there.

Our all operations include nausea, Cowboys, well learn and $57 an ounce after the quarter, which was slightly above budget, but we.

And it's really a function of two things you've got the beat that we had on the cash cost side and then you've got some capex that we were catching up on from prior quarters, particularly in Mali, where we had pretty significant capex your sustaining capital to get us ready to start moving into 'twenty four and beyond.

Mike Sinema: So cost side, I'd say overall, when you look at, Total cost for the year, cash cost, $654 an ounce, that's below our original guidance range for the full year, $670 to $730, so good result, again, as we said, we thought we'd come out in Q4, at the end of Q3, and then all unsustaining costs for the year, just $1201 an ounce, and that's right at the low end of our consolidated guidance range of $1195 to $1235 per ounce, so really, more of the same as we saw as we went through the year, and very solid results from the operation. Comments on a couple of the other operations where they are and a couple things to comment on before we get into the other results.

Cost side I'd say overall when you look at.

Total cost for the year cash cost $654, an ounce that's below our original guidance range for the full year of <unk> 730. So good result, as we said we thought we'd come out in Q4.

Q3, and then all in sustaining costs.

For the year, just $201, an ounce and that's right at the low end of our consolidated guidance range of $11 95 to 12 55 per ounce. So really more more of the same as we saw as it went through the year and very solid results in the operations.

Comments on that'd be couple of the other operations, where they are at.

The comments on before we get into other results. So I will call a regional as Craig mentioned, we're still waiting to get our licenses there, but I would say that you know we had 18000 ounces in there as part of a regional production and in the current year's budget for 'twenty, three and even though we weren't able to get in an accident that the performance of a KOL event that Oh.

Mike Sinema: So, at Focola Regional, as Clive mentioned, we're still waiting to get licenses there. But I would say that, you know, we had 18,000 ounces in there as part of regional production in the current year's budget for 2023. And even though we weren't able to get in and access that, the performance of Focola meant that, overall, for Focola Complex, we still met our guidance range for Focola overall.

We're all for coal complex, we still met our guidance range.

Overall.

Mike Sinema: And we have continued to work on the regional through the year. We have got most of the mining infrastructure, the roads, you know, the warehouses, and workshops built through the course of 2023, and we're just finishing that in the first quarter of 2024. So we're really well positioned, I think.

And we have continued to work on regional through the year. We have we have got more we've got most of the mining infrastructure and the roads.

How's this workshops built through the course of 'twenty three and we were just finishing that in the first quarter 'twenty four so we're really well positioned I think.

In terms of any trucking scenarios there for regional.

Just waiting now for receipt of the mining license.

<unk> as you know in the year, we purchased a we bought angles.

Mike Sinema: In terms of any trucking scenarios there for regional, we are just waiting now for a state-of-the-art mining license. Ground Velocity, as you know, in the year we purchased it, we bought Anglo's other 50% of the Ground Velocity project. So we own that 100% now.

Some of the ground lost some projects that we own that 100% now and we're working on.

Outdated P. A well that we expect to happen in second quarter of 2020 for thinking about smaller scale operation.

With a potentially smaller bell and out of recovery and cost profile smaller capex upfront.

Mike Sinema: And we're working on an updated PEA for that that we expect to have by the second quarter of 2024. Thinking about a smaller scale operation, with potentially a smaller mill and better recovery and cost profile, smaller capex up front. Phil's going to give us a good project update, so I won't dwell on that right now. But just to highlight Ojikoto again, Ojikoto is coming near the end of its open pit mine

It was going to give us good project updates so I won't dwell on that right now but.

But just to highlight one Chicago again, you know what's your code was come in near the end of the open pit mine life and shuttle them to ramp down in 2020 five, but we we didn't put out a news release and in January just highlighting that we had did have very positive exploration drill results from the Antelope deposit I think we're looking at now and we think that is.

Further drilling has the potential to be developed as an underground mining operation, which could help us.

Mike Sinema: It's scheduled to ramp down in 2025, but we did put out a news release in January just highlighting that we did have very positive exploration drill results from the Antelope deposit that we're looking at now. And we think that further drilling has the potential to be developed as an underground mining operation, which could help us change the mix of the milky blend as we move into the stockpile phase of Ojikodo.

Change the mix of of the Milky blends as we move into the stockpile.

We hopefully will have more high grade from underground.

Deposit at Antelope, if that comes through.

Okay, now I'm, just going to talk a little bit about some of the other results.

Curious, though on the earnings side.

Net income for shareholders for.

For the quarter was.

90 to 113 million as a result of an impairment charge our ninth.

Sure year to date.

$10 million or <unk> <unk> per share and adjusted net income once we remove the impact of any significant nonrecurring noncash items, a $19 million for the Q some cents a share or 346 million 28 cents a share for the full year.

Mike Sinema: We hopefully will have more high-grade from an underground deposit at Antelope, I thought, comes through. Okay, now I'm just going to talk a little bit about some of the other results for the period. So on the earning side, net income for shareholders for the quarter was negative $113 million as a result of the pyramid charge, our nine cents a negative share.

In conjunction with that and and really reflecting how well the operations performed well on the cash flow side, we had 714 million of operating cash flow for the period.

Mike Sinema: Year to date, $10 million, or $0.01 per share, then adjusted that income once we removed the impact of any significant non-returning non-cash items, $90 million for the Q, $0.07 a share, or $346,028 a share for the full year. In conjunction with that, and really reflecting how well the operations performed on the cash flow side, we had $714 million operating cash flow for the period, for the full year, including $205M for Q4. And full year cash flow from operations per share was $0.58.

I'm, sorry for the full year, including $205 million.

For Q4 and for full year cash flow from operations per share was 58.

So again very good performance by the site.

And getting that done Oh, you know what we found some good uses for it through the year. We if you recall some of the things we sponsored on we.

We have the dividend. So we've got our four centers here in U S D per quarter dividend that that turned into 186 million dividend payments for the full year I remember too that as part of the Bad River acquisition, there were certain financing obligations that we thought because we believe in the future upside of that project that we want them to buy other than <unk>.

Mike Sinema: So again, very good performance by the site in getting that done. You know, and we found some good uses for it through the year. If you recall, some of the things we sponsored had the dividend, so we've got our $0.04 per share in USD per quarter dividend. That turned into $186M in dividend payments for the full year.

Options, so that cost is just under $112 million.

Second quarter, and then on the investing side of total for the full year of $845 million, which it really reflects our significant capital investment if the coal as we continue to advance projects like the T S that Oh underground.

Mike Sinema: And remember too that as part of the Bank River acquisition, there were certain financing obligations that we thought, because we believed in the future upside of that project, that we wanted to buy out at inception. So that cost us just under $112M earlier in this back-end quarter. And then on the investing side, a total for the full year of $845M, which really reflects a significant capital investment by Focola as we continue to advance projects like the TSF, the Focola Underground, the Focola Solar Phase 2, and then, of course, the GOES project as we came into that and we've been working hard on that, and Bill will give us an update there. We did finish the year with $306M.

And that the for coastal or phase two and then of course. It goes goes the Ghost project as we came into that and we've been working hard on that and delegates an update there we did finish the year with $306 million.

Cash in the bank and that included drawing down on the line for $150 million in Q4, just in advance of some some of the anticipated later Q4 expenses early Q1 expenses.

<unk> mentioned, we did do a prepaid financing early in Q1, so with that we used a portion of that 500 million prepaid financing to pay down the outstanding balance on the line.

I.

Just a little later in January already bad so.

Where we sit today is we've got the full 700 million line available and we were catching the back from the results of the prepaid side as soon as we can because we lived through the first couple of quarters development continuing construction at various sites.

Mike Sinema: Cash in the Bank, and that included drawing down on the line for $150 million in Q4, just in advance of some of the anticipated later Q4 expenses and early Q1 expenses. As Clive mentioned, we did do prepaid finance early in Q1. So with that, we used a portion of that $500 million prepaid financing to pay down the outstanding balance on the line, just a little later in January and early February, so that where we sit today is we've got the full $700 million line available, and we're uncashing the bank from the results of the prepaid time as soon as we move through the first couple of quarters of development, finishing construction at various sites. One thing I will highlight, the most significant in transactions that impacted Q4.

One thing I will highlight our most significant.

Transactions impacting Q4, so we did have a an impairment or a complex of just over 200 million might be a couple of comments on that.

Is that as we've mentioned through the year there wasn't a new 2020, my only mining code that was enacted later in 'twenty three and country. However.

It was put into law, but there's nothing that accompanying dropped implementation degree which is currently up for industry comment we provided feedback along with the other big moly mining houses.

It's not enacted yet and exactly how some elements of the newco will be a plague me standing could be subject to change, but we.

Mike Sinema: So we did have an impairment for the Coca-Cola complex of just over 200 million; maybe a couple of comments on that. As we've mentioned through the year, there was a new 2022 modeling mining code that was enacted later in 2023 in-country. However, it was put into law, but there was an accompanying draft implementation decree, which is currently out for industry comment. We've provided feedback, along with the other big Mali mining houses. It's not enacted yet, and exactly how some elements of the new code will be applied remains outstanding.

We are where we are at this point in time.

Well with that mining code being out there what did what it did prompt us to do.

Examined later in the fourth quarter fourth quarter, what we're our plans for the for colder regional licenses that we discussed previously we thought about whether there's a there's a we can build a second mill oxide only mill.

Lola regional or whether we should look at a trucking scenario as I mentioned, we already have that broke infrastructure bill. So should we look at the trucking scenario.

Two the footballer Mel and I think given the uncertainty about the new code and what we saw was in there that it's not as attractive for things like the tax and royalty regime and some new funds that they built in there. It we did have.

Mike Sinema: It could be subject to change. We are where we are at this point in time. With that mining code being out there, what it did prompt us to examine later in the fourth quarter what our plans were for the Pokola Regional licenses. As we discussed previously, we thought about whether we could build a second mill, an oxide-only mill, at Pokola Regional or whether we should look at a trucking scenario. As I mentioned, we already have that road infrastructure built, so should we look at a trucking scenario to the Pokola Mill? I think, given the uncertainties about the new code and what we saw was in there, it's not as attractive for things like the tax and royalty regime and some new funds that they've built in there. We did a comparative analysis, and we decided that, for now, certainly, that trucking by rail from Pokola Regional to Pokola Mill is the optimal scenario.

Our comparative analysis, and we've decided that for now certainly the trucking aboard Coca Cola regions of Golar mill as the optimal scenario trucking.

Trucking scenario is that we see it's at the moment because it really eliminates any significant 1000 capex exposure. If we wanted to build a mill while at the same time.

Getting close to the similar cash flows from a just trying to get down there less less capital upfront.

And looking at it I haven't done that trade off and.

And that analysis.

That that also prompted us to update our current high level coal mine of cold regional.

Our mine plan, how we see our production profile is coming from those I'd highlight again that these are point in time estimates. The best estimates. We have right. Now are you know it doesn't take into account future changes in variables.

Finalization of the 2023 codes.

Mike Sinema: That trucking scenario, we see it's optimal because it really eliminates any significant mill capex exposure if we wanted to build a mill while, at the same time, providing close to the similar cash flows from just trucking it down there, with less capital up front. So, in looking at that, having done that trade-off and... Net Analysis. That also prompted us then to update our current pilot on Focola Line and Focola Regional, with line plans, and how we see production profiles coming from those. I'd highlight again that these are point-in-time estimates, so the best estimates we have right now. It doesn't take into account future changes in variables, finalization of the 2023 code, production changes, cost changes, or further exploration success.

Production changes cost changes or further exploration success, where.

And we were still lots of plans to drill learn and further define the oxide and even more importantly, perhaps the sulfide below those.

Let's see how they can benefit both Africa regional production and.

Kola production.

Great.

But by looking at those new mine plans, they triggered an impairment review process and.

Key to highlight here I think is that because.

Those both mine plans assumes that.

We will process ore from both regional and for Colette I have to pull the mill, we had to look at them jointly.

And for accounting purposes are treated as one combined cash flow generating units. So for Cola is the combination of the two so we looked at that looked at the plan and you know the most significant impacted and there isn't the new regional licenses are all under the 2023 codes. So they have to bear the sort of.

Mike Sinema: We still have lots of plans to drill there and further define the oxides and, more importantly, perhaps the sulfites below those oxides, to see how they can benefit both Focola Regional production and production per se. But by looking at those new mine plans, they triggered an impairment review process, and the key thing to highlight here, I think, is that both mine plans assumed that we would process ore from both regional and Focola at the Focola mill. We had to look at them together. And for accounting purposes, they're treated as one combined cash flow generating unit. So Focola is a combination of the two.

The regime, that's under that current code as we know it including the higher taxes and royalties.

Overall this resulted in a noncash impairment charge of just over 200 million for the combined ethical are complex.

Cash generating unit.

And like all of them kind of acceptance, we made our best estimates of the number of variables you look at gold prices appropriate discount rates for the country and you.

The 2023 code impact on <unk>.

And you know obviously for regional.

Mike Sinema: So we looked at that, and looked at the plans. And the most significant impact is that the new regional licenses are all under the 2023 code, so they have to bear the regime that's under that current code as we know it, including the higher taxes and royalties. And overall, this resulted in a non-cash non-impairment charge of just over $200 million for the combined Focola complex and past-generating unit.

We looked at that that was fully impacted by 23 quota and for a coal mine, we assume that all stabilized factors under the 2012 code are still stabilized.

So that's our scenario that I can speak for each company in Malawi, because everyone has a slightly different scenario and where they are in their project life and new projects for us that the most significant issue.

Issue here is that we have new projects that we know would be pulled in under the new code.

So I think that's those are the main items.

Mike Sinema: And like all impairment assessments, we made our best estimates of a number of variables. You look at gold prices, appropriate discount rates for the country, and, you know, the 2023 code impact on. And, you know, obviously for the regions, we looked at that. That was fully impacted by the 23 code, and for coal to mine, we assume that all stabilized factors under the 2012 code are still stabilized. So that's our scenario. I can't speak for each company in Mali because everyone has a slightly different scenario as to where they are in their project life cycle and new projects.

Highlight.

Anyone has any questions I'd be happy to answer them.

Sure sure.

Yeah, we'll go to Bill first of all there's no problem.

Then we'll open it up for questions. So builds we have you on the line.

You do how do you hear me.

Yep.

Okay. So this is this is record again from an article on actually at the Goose site right now in anticipation of a winter road opening up and so I am happy to say that the two sides are.

Point, they can see the stacks up in each other's equipment. So we anticipate that pending good weather for the next 48 hours that the road will open up that will not be fully opened up but.

Mike Sinema: For us, the most significant issue here is that we have new projects that we know would be pulled in under the new code. So I think those are the main items I was going to highlight, and if anyone has any questions, I'd be happy to answer them, by order, sorry. Yeah, we'll go to Bill first, and then we'll open it up for questions. So, Bill, do we have you on the line? You do? How do you hear me?

The certainly the first lighter load to come down the road. So what we're doing now is we're in the process on the on the MLP side of of loading.

Oh trucks ready to go and so we can anticipate certainly this weekend, we will be seeing.

Yeah.

On the road.

Everyone remembers that that's in a good space, we've got double the number of trucks that we've had since last year and double the capacity. So we're we think we're in it.

Really good.

Bill: Fine, yep. Okay, so this is reporting in from the North Pole. I'm actually at the goose right now in anticipation of the Winter Road opening up.

All of the Winter road equipment.

Additionally here.

No rights are in the mail installing the mill.

There's always sport.

Julian remains three to four months.

Bill: And so I am happy to say that the two sides are point things, see the stacks off of each other's equipment. So we anticipate that, pending good weather for the next 48 hours, the road will open up. That will not be fully opened up. But it is certainly the first lighter low to come down the road. So what we're doing now is we're in the process on the MLA side of loading trucks ready to go, and so we can anticipate, certainly this weekend, what we will be seeing on the road. Everyone remembers that's in a good space.

Most of the buildings out completely.

Putting in generators.

Underground the open pit is operating the underground is looking good.

The Caf phase two is getting ready to go so that'll be some of the first pieces of equipment they come down the road.

The phase II cap, which will allow us to get to 500 beds.

Just on cost I don't have the latest numbers, but what I will tell you is if you remember we were pretty much derisk. The project because we've ordered all of the stuff, obviously, which is coming down to 24 road. We're in the process of order.

Bill: We've got double the number of trucks that we had since last year and double the capacity, so we think we're in a good place. Really good show, all the Winter Road equipment. Additionally, here. The millwrights are in the mill, installing the mill.

Hi.

Shipping stuff.

Yeah, basically ad budget, which it.

January.

And we anticipate that.

Not seeing any material.

Bill: I have always supported Jillian for three or four months. Most of the buildings are now completely... putting in generators in the underground, the open pit is operating, the underground is looking good, and camp phase two is getting ready to go. So that'll be some of the first pieces of equipment that come down the road, the Phase 2 camp, which will allow us to get to 500 beds. Just on costs, I don't have the latest numbers, but what I will tell you is, if you remember, we've pretty much de-risked the project because we've ordered all of the stuff, obviously, which is coming down the 24 Road. We're in the process of ordering. Hi, shipping slot.

Scope or to budget.

I don't know quite did anything else you want me to talk about.

I guess, maybe just highlight just to protect we've spent a lot of the capital and ordered a lot of equipment for the next year and a half so he's actually derisk the project.

Does anyone know how much money, we spent the capital estimated capital cost for.

So how much debt, we've spent well cash spend to the end of the year was approximately 750 million for the for Goose Capex in total including.

Sabine is sure that they'd spent what we spent in post acquisition.

We have left to spend.

On a recent budget.

Well, we've got we've we've given the budget estimate for Capex for 10000 people that the main project plus the funding of the development of the underground.

Bill: Please see the complete disclaimer at https://sites.google.com or at www.sites.google.com, including the link to the complete disclaimer in the description. January. And we anticipate not seeing any mature, to Sydney Norton. Take care, everyone. I don't know, Clark, is there anything else you want me to talk about? I guess maybe just to highlight, I think you just did, but the fact that we've spent a lot of capital and ordered a lot of equipment for the next year and a half, so we've actually de-risked the project. Does anyone know how much money we've spent on capital, the estimated capital cost for Goose, and how much we've spent? Well, cash spent to the end of the year was approximately $715 million for Goose CapEx in total, including Benes. So, share what they've spent and what we've spent. What help do we have left to spend on this in our recent budget?

Underground.

Also offers.

Although.

Some of that working capital funding.

So bill I guess, just so remind people about the schedule of the actual starting here shortly but how many weeks we have already leased we couldn't be happier.

Sure Ed.

When when do we think it I'll wrap up and we'll have less of it.

Turning to Baxter.

And so some of the numbers that we had always talked about it kind of a maximum of 3000 containers moving actually.

Down.

Okay.

2200 container that include just push.

Great.

As I said will be open.

And there will be opened this weekend and we have a.

April or into the first week of May.

I assume that they were running 50 trucks are 48 trucks.

What youre going to see is that we've got more than double the capacity you could bring a low down the road so.

Clive Johnson: What we've got, we've given the budget estimate for CapEx for 1050 for the main project plus the funding for the development of the old pit and also for some of the working capital funding. So Bill, I guess just to remind people about the schedule of the ice road starting here shortly, but how many weeks we have, and how many weeks we think we have on that ice road, and when do we think it'll wrap up, or we'll have utilized it to the fullest... and Mark Zuckerberg. Thank you. And so some of the numbers that you know, we'd always talked about it being kind of a maximum of 3000 containers, we've actually got that down, for the is, as I said, will be open, and there will be open this weekend. And we have April or into the first week of May; assume that we're running 50 trucks or 48 trucks.

He is very good as far.

Bringing us.

Can you break it up a bit but thanks for that.

To say that a couple of things.

To remind you we have we still have obviously as a company one of our priorities and one of our great strengths is also exploration at our expiration success not only in finding more gold around our existing operations terabytes of acquisitions, we've made but also making additional discoveries.

That's a group as a company over a long period of time. So we have an aggressive exploration program we have.

King at any problem with the sheer if there's questions on exploration, we are pulling back on exploration to the Bali.

But that should we are far from realizing the ultimate value of this for Colette complex, there's lots of us targets philosophy. So we've got that are opened we arent drilling frankly, we've cut back dramatically on the children. There because we don't understand the full implications of the 'twenty two 'twenty three code and the understanding whether we it might.

Bill: What you're going to see is that we've got more than double the capacity to bring the load down the road. So everything is very good as far. Can you break it up a bit, Bill, but thanks for that. Just another couple of things that... We still have, obviously, as a company, one of our priorities and one of our great strengths is exploration and our exploration success, not only in finding more gold around our existing operations or mines or acquisitions we've made but also making additional discoveries as a group, as a company, over a long period of time. So we have an aggressive exploration program. We have King and Andy Brown with us here if there are questions about exploration. We are pulling back on exploration in Mali.

An option to build a second move down the road et cetera, but trucking looks like the option.

I appreciate that as we said and hopefully will start you will construct that she'll tell later this year, but the exploration why why would you go out and drill off lots more additional ounces.

Not clear whether their Xbox or a second bill potential so, but we will get back to that if we forget what we want to get to the government.

Standing for the 2023 quarters.

It's going to be very detrimental to the future of the gold mining industry in Bali, because it will make it.

Clive Johnson: Thank you very much. Far from realizing the ultimate value of the FOCOLA complex. There are lots and lots of targets, lots of zones we've hit that are open. We aren't drilling, frankly. We've cut back dramatically on the drilling there because we don't understand yet the full implications of the 2023 Code and understand whether it might be an option to build a second road on the road, etc. But trucking looks like the best option

From being a very attractive company to report investments over many decades make hits what does the lesser attracted cookie, we have choices, where we spend our money grammar largely for example, if we get a good result of the study in the middle of the year that could be a good project or 100%, but happy to go so exploration remains a priority to boost exploration and I haven't seen it.

Charles Advocate, Andy discusses excited about sort of exploration upside that maybe since a coupon.

Clive Johnson: We're pursuing that, as we said, and hopefully we'll be able to start that sometime later this year. But the expiration, why would you go out and drill off lots more additional houses when it's not clear whether they're economically viable, i.e., the second mill potential?

Some of the days of the eye.

Cool.

<unk> targets, a big budget, there and we always knew who the acquisition, we don't pay for Alex because it might be that in the acquisitions, but we think theres going to be a lot. We've already had one very good result by drilling the deepest hole ever drilled around the world.

Clive Johnson: But we will get back to that. If we forget what we want to get to with the government and understand that the 2023 Code, as written, is going to be very detrimental to the future of the gold mining industry in Mali because we'll make it, from being a very attractive company for foreign investment over many decades, one of the less attractive companies. We have choices where we spend our money. Kramalaji, for example, if we get a good result in the study in the middle of the year, that could be a good project with 100% IP2 gold.

Yeah.

That was a that was repair so really good result, so I think it was 20 minutes of 18 grams underneath the hood of these blows acute episode before wide open. There's many other soldiers as well. So I think so I think with that we'll open it up.

Two questions.

Yeah.

Okay.

But while we wait.

Yeah, I can still hear you.

Clive Johnson: So expiration remains a priority. The goose expiration, I haven't seen. Tom and Vic and Andy, these guys are excited about the next version of Upside, maybe since Koopal, which was, which was a pretty good result. Yes. Well, while we wait. Yeah, I can still hear you.

While we wait.

All of them.

Pardon me sorry, My line dropped.

So thank you we will now begin the analyst question and answer session to join the question you May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request.

Clive Johnson: While we wait, just a few comments on the... Pardon me, sir, my line dropped. So, thank you. We will now begin the analyst question and answer session. To join the question queue, press star and then one on your telephone keypad. You will hear it's on acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any button.

Youre using a speakerphone, please pick up your handset before pressing and keys.

We got your question Please press Star Vinci.

The first question.

Wayne Lam: To withdraw your question, please press the star then. The first question, and Lisa Guse as well. The first question comes from Wayne Lam of RBC. Please go ahead. Okay, thanks guys. Just a question on the sequencing of mining activity at Ak River. I'm just wondering if you might be able to provide a bit more detail on the increased spend there and the rationale in terms of the resequencing of upfront mining activity. Yeah, I think Peter's on the line with me breaking up.

These abuse as well.

The first question comes from Wayne Lam from RBC. Please go ahead.

Okay. Thanks, guys.

Just a question on the sequencing of mining activity at accurate Barry I'm, just wondering if you might be able to provide a bit more detail on the increased spend there are and the rationale in terms of the seat re sequencing of upfront mining activity.

Nope.

Yeah, I think Peter's on the line with me breaking up.

Peter: Yeah, you do something. Yeah. Thank you for that question. Basically, there are a couple of things that we've done here. One is, you know, really focusing on the Echo Pit.

Yeah.

Yeah.

Yes, yes.

Thank you for that question.

Basically there are a couple of things that we've done here. One is you know really focusing on the eco pan that's going to be the first tailings facility. So yeah, that's something that we want to move move forward in Pakistan, but you really are more interest is the underground mining at home World. What we've done is looked at the the development of the size of the <unk>.

Peter: That's going to be the first tailings facility. So, you know, that's something that we want to move forward with and focus on. But really of more interest is the underground mining at UMWELT. What we've done is looked at the development, the size of the resource, and realized that by going with long hole stoping, not only on a mining method basis, but also on a material flow basis, we can upsize the mining equipment. So, going from 30-ton trucks to 50-ton trucks and then also increasing the size of the scoops.

Resource and realized that by going with long haul stoping not only on our mining method basis, but also on a material flow. We can upsize the mining equipment. So going from 30 ton trucks to 50 ton trucks, and then also increasing the size of this groups.

Peter: So, much of the capital that you're seeing there is a larger mining fleet, you know, physically larger equipment to start with. And that's going to allow us to increase the mining rates from underground and also reduce the mining cost. Okay, great. Thanks. And then, just curious about the upcoming Life of Mine update there.

Much of the capital that you're seeing there is a larger mining fleet and physically luxury equipment to start with and that's going to allow us to increase the mining rates from underground and also reduce the mining costs.

Okay, great. Thanks, and then just curious on the upcoming life of mine update there.

Joe: You guys had previously kind of soft guided higher costs with the update closer to $1,000 an ounce. I just wondered, you know, given how things have evolved on the CapEx side over the past few months, have you seen any additional pressures where that could actually end up higher in the update relative to that prior target, Joe?

You guys had previously kind of a soft.

Soft guided higher costs with the update closer to $1000 an ounce async.

Just just wondering you know given how things have evolved on the capex side over the past few months.

Have you seen any additional pressures where that could actually end up higher in the update relative to that prior target.

Bill.

Yeah.

Yeah.

Yeah.

I think you made a loss pill Bill do you want me to take this one.

Bill: Bill, do you want me to take this one? Yeah, sure. Yeah. So we don't have the detailed cost analysis yet for the OPEX. You know, there are some, you know, some fuel costs that have gone up, and some maintenance costs.

Yeah sure.

Yeah. So we we don't have the detailed cost analysis, yet for the for the Opex.

There are some you know some fuel constant have gone up in some maintenance costs.

Bill: So there'll probably be some normal inflationary increases there. But, you know, like I said, we're offsetting these with, you know, a higher production rate. So in the end, we don't have the final numbers yet. But, you know, I think it would be fair to assume some inflationary impact.

And there'll probably be some normal inflationary increases there but like.

Like I said, where we're offsetting these with.

You know with the higher production rates. So in the end, we don't have the final numbers yet but.

I think it would be fair to assume some inflationary impact.

Yeah.

Clive Johnson: Okay, great, thank you. And then, maybe just last one for me, on the security front in Mali, it seems as though the historic issues have been much further east of the operations at Fekola. I'm just wondering if you've kind of seen some of that activity start to shift further west, and then with the most recent incident, how are you guys kind of reconsidering your operations in terms of transporting personnel? Yeah, you know, um... We're always transparent and happy to be so, but I think it's really important to understand we're in an investigation with the government to understand the motivation of the attack, understand who the attackers were, We did add additional safety measures by having a vehicle out in front and a couple of vehicles in the back of the three-bus convoy.

Okay, great. Thank you and then maybe just last one for me.

On the security front in Mali, and it seems like it seems as though the historic issues had been much further east to the operations at Nicola I'm, just wondering if you've kind of seen some of that activity start to shift further west and then the most recent incident, how how are you guys kind of reconsidering your operations in terms of.

Transport of personnel at the site.

Yeah, you know.

Well, we're always transparent and happened to be so, but I think it's really important to understand where the orienting the investigation with the government to understand.

The motivation of the attack on the status of the Texas work.

And that really reviewed the process, how we do that and additional safety measures, but I haven't got a vehicle out in front of a couple of deals on the back of the three bus convoy. So it's just too early to to choose to talk about that it would be inappropriate for us to try to predict what we're going to do we need to get with the government as we are understand more about the attack.

Clive Johnson: So it's just too early to talk about that; it would be inappropriate for us to try and predict what we're going to do. We need to work with the government as we are, understand more about the attack, and then talk about what measures, and there are a few alternatives, but what measures we can take to further improve security and encourage the government to... Continue to improve security on their national highway. This is the national highway from Mali.

And then talk about what measures. So there are a few alternatives, but what measures we can take it to.

To further improve security.

Of course, the government too.

Continue to improve security or their national highway.

As the National Highway Bali, so the safety of their own.

Clive Johnson: So the safety of their citizens, which I know is a priority for the government as well. We have 3,000 Malians at the mine, and their safety is our top priority. And I think it's, I believe it's a priority for the government, and they've taken steps along with us to improve safety. So that's really all we can say on that topic for now. We'll go over it more when we have finished our investigation. Okay, thanks, understood. I appreciate the comment. Can I just add to that?

Citizens is a.

Sure there was a priority for the government as well so we have 3000 model into place at the right.

And their safety is our top priority of our air ticket. So I believe I know, it's a priority for the government.

Take a step to school I would have to improve safety. So that's really all we can say on that topic for now and we will report more when we house.

We have finished our resignation.

Okay, Yes understood.

Appreciate but can I just add to that.

Bill: I mean, certainly everything that is ongoing right now is that, Ciao! not only with the government but also with the employees because they're ultimately the ones that uh really have to do the traveling and they've been a very willing partner and that this situation will have to be handled, and that, but it is a kind of a tripartite between Don DeMarco and the employees. Yeah, I just, Bill, I need your input here on the question that was asked before about GOOS costs, because I don't want to make sure we get that right. Can you talk a little bit about where we are in terms of the last estimates we put out, or did we discuss the estimates about all the sustaining costs of GOOS? I think we built in quite a lot of inflationary factors. Would that be fair to say?

I mean certainly everything.

Is that is ongoing right now.

Is that.

Yeah.

Not only with with the government, but also with the employees because they are ultimately the ones that are really have to do the travel in and they've been a very willing partner in that.

This situation will be handled.

Yeah.

Yeah.

And that but it is a kind of a tripartite.

Gotcha.

Yeah, I wouldn't I wouldn't just go I need your input here all of the questions asked before about those costs because I don't want to.

Make sure we get that right can you talk a little bit about what where we are in terms of lost estimates we put out our let me discuss the estimates about all the sustaining cost that goes I think we've built in quite a lot of inflationary factors, but that would be fair to say it.

Okay.

Bill: Absolutely, Clive. Ben, that's it. Good night. The marketing out there says 1100 for all. I guess. I guess I'm pretty broke up now. I'm getting tech, year.

Absolutely climbing.

Ben.

Yeah.

Our marketing out there, saying.

11 Hunter.

Okay.

Uh huh.

I guess.

I guess I'm pretty broke up now I'm getting tech.

Bill: Yeah, you broke up there, but I think you were talking about the fact that our recently discussed and remarked that $1,100 of home sustaining costs, we think it was reflective of projecting some additional inflationary costs into that. Okay, let's move on to additional questions. And the next question comes from Ovais Habib of Scotia. Please go ahead.

Yeah.

Yeah, you broke up there, but I think you were talking about the fact that our recently discussed in our remarks, we've got a lovely.

Just any cost we think was reflective of Uh huh.

Projecting some additional inflationary cost in that number.

Yeah.

Okay, let's let's move along with two additional questions.

Certainly the next question comes from <unk> Habib of Scotiabank. Please go ahead.

Ovais Habib: Hi, Clive and the B2Team. First of all, please also pass on my condolences to the families of the deceased as well. On another note, congratulations on a strong year, especially cash costs coming in below your guidance for 2023. Since we're on, you know, GOOSE, I was going to start off with just asking in terms of, you know, how the underground at GOOSE is progressing, as well as, you know, are you doing any sort of, you know, drilling into the, you know, initial stopes that are expected to be mined out? So maybe we can start off. Peter, can you comment on the mining, and then Vic can talk about what drilling we're doing or when we're doing it? Peter Undergroundmining.com said, Yeah, I'm sorry. I cut off at the beginning of that. Was this for Focola or for Goose?

Hi, Clive and that would be to dream first of all please also pass on my condolences to the families of the disease as well.

Or another node congrats on a strong year, especially cash costs coming in below your guidance for 'twenty frankly.

Since we on goes I was going to start off with just asking in terms of you know how the underground at goose is progressing.

As well as you know are you doing any sort of getting into the initial stopes are that that's expected to be mined out Oh, maybe we can start up there.

Peter can you comment on the mining and then Rick can talk about drilling we're doing or what we're doing it.

Yeah.

Peter underground money.

Yeah, I'm, sorry, I cut off at the beginning of that which was this for for color for Goose.

Peter: Okay. We're good. Yep, so... We have two options. The standing option, basically following what Sabina had, was to target the lower unwelt section.

Okay.

Because yes so.

We have two options.

The standing option.

Basically following whats been ahead was to target the lower I'm Welcome section and then we're also working on the Crown pillar section, that's our our upside case and really what we're driving for.

Peter: And then we're also working on the crown pillar section. That's our upside case and really what we're driving for. We are on schedule there. Development has been continuing. We've had a couple interruptions and normal operational interruptions throughout the winter, but absolutely on schedule, and no concerns about having those stockpiles ready for mill start-up.

We are on schedule their development has been continuing a we've had a couple interruptions in normal operational interruption interruptions dropped the winter, but absolutely on schedule and no concerns about having those stockpiles ready for start up.

Vic: Thank you. Yeah, thanks Peter. We're not drilling from underground yet, but the Crowne-Miller area and the area that's going to be subject to underground mining is well covered with existing resource drilling, and obviously, the focus of our drilling moving forward and we expect to start surface drilling towards the end of March and beginning of April will be extending the Conversion of Inferred to Indicated on Umwelt and at Lama, and obviously, over 56% of our drilling will be focused on extensions Thanks for the color for that.

Okay.

Yeah. Thanks Peter.

We are not drilling from underground yet, but the comdata area in the area, that's going to be subject to mining.

Ground mining is well covered with the existing resource drilling.

And obviously the focus of our drilling.

Moving forward and we expect to start a set.

Surface drilling.

Towards the end of March beginning of April.

There is extending the.

Conversion up.

Third to indicated on one well and at Lama and obviously, our over 50, 56% of our drilling will be focused on extensions of our existing.

Existing resources and tackling numerous other.

Other targets that we've identified.

Perfect. Thanks for the color for that and just.

Ovais Habib: Moving on to Pecola and Pecola. Clive and Mike, you provided a good overview in terms of how great the relationships are with the Malaysian government and how much they want to move these projects forward. I mean, the question here is, are you still in discussions with the Malaysian government or have you? Yeah, we had, I think it was six or seven weeks ago now, it's been a busy time, but we were down there in discussions with government representatives and made clear our concerns about the 2023 Code. As I know, other MAPE procedures, Goal Manager, have been done as well.

Moving onto the call then.

Our regional.

Mike you provided a good overview in terms of our great relationships with the money in government how much they wanted to move these projects forward.

I mean the question here is are you still in discussions with them and in government or have.

The money in government gone back internally to figure out how to proceed with this new mining code.

Yeah, we had.

About six or seven weeks ago now it's been a busy time, but we were down there are discussions with the government representatives.

It makes clear our concerns about the 2023 cold as I know other.

Scherer scope supercold matters here have done as well.

Clive Johnson: But the ball is in the government's court now. We did come up with a better understanding of certain issues, and we just made some progress in our discussions, and that was left. The government is going to go and come back with some ideas about some of the questions that we had asked. So, I understand that there are some internal discussions going on between, perhaps, the ministries of mines and finance, etc. And we're waiting to hear back from them about the ultimate solution, the nature of the 2023 Code, and the implementation of the Code. So it's still a bit unknown. We hope that our arguments... Our discussions with the government about the real impact of certain aspects of the 2023 Code and the negative impact on potential future investment, which is the reason why we unfortunately had to tell them that the 2023 Code, the second mill, was off the table. And that seemed to, frankly, they wanted to know more about why that was.

The bolus of the garbage CT out we did get caught up with some better understanding of certain issues.

<unk> made some progress in our discussions so that was left the government was going to go in and come back with some ideas about some of the questions that we had asked so I understand that governance I guess, there's some material discussions going on between perhaps some industries are mines, and finance et cetera, and we're waiting to hear back from them.

<unk> the ultimate <unk>.

Nature of the 'twenty Chase recorded in April.

Implementation of the code. So it's still there's still live in a node, where we hope that our arguments.

Our discussions with the government.

About the real impact of certain aspects of the 'twenty two 'twenty three code and the negative impact on potential future investment, which is the reason why we unfortunately had to tell over the 2023 called the second mill was off the table and that seem to frankly be they they're going to know more about why that was trucking award looks it looks like there's some good economics, there because we've got good grade mix.

Clive Johnson: Trucking more looks like there's some good economics there because we've got good-grade material, starting off in oxide material to truck, good-grade material with no blasting, no crushing, and the roads are already built. We're ready to go as soon as we get the implementation permit. So we think that we will find a way forward on that, part of it by still waiting for the ultimate resolution and some things we've discussed with the government and the ultimate proposed implementation of the 2020-3 code. Thanks for the color there, Slide.

Gerald.

Starting off with oxide material to trucks gave material no blasting the crushing of the world's you've already built we're ready to go soon as we get to hear because they should permit. So we think that we will find a way forward on that.

Part of it but still waiting for ultimate resolution and some things we've discussed with the government and the ultimate proposed implementation of the 2023 coat.

Yeah.

Okay. Thanks for the color there.

Ovais Habib: And yeah, that's it for me. And thanks for taking the time. Thanks, Ovais. The next questions come from Anita Soni of CIBC World. Please go ahead.

And I think that's it from me and thanks for taking my questions.

Thanks, so much.

The next question is from.

And you didn't Sony at CIBC World markets. Please go ahead.

Anita Soni: Hi Clive and team, thanks for taking my questions, and I apologize if you addressed them in your beginning comments; I've been hopping between different calls. So I just really want to understand, I know you took a write up at Focola and it says it's based on your impression of the mining code and that the mining code is subject to change, and I didn't find it in the release last night, but could you provide any color on what you do know about the proposed mining code at this stage? You know, I really don't think we're going to go into details on that at the moment. It's just in a state of flux right now.

Hi, Clive and team thanks for taking my questions and I apologize if you addressed it in your beginning comments I've been hopping from different.

So I just really wanted to understand I know you took a write down of Nicola and it says it's based on your impression of the mining code in that mining code.

I'd like to change.

And I didn't find it in the release last night, but could you provide any color on what you do know about that proposed mining code at this stage.

Yeah.

Really don't agree with where we're going to go into the details for you on that.

At the moment, it's just in the state of flux right now we're waiting to go to bolster the Governor's Court. We've made our case I understand the other producers have made their case.

Clive Johnson: We're waiting to go to court. We've made our case. I understand other producers have made their cases about the new code. So I think it's, I just wouldn't want to speculate right now.

About about the new code. So I think it's I just wouldn't want to speculate right now I think we had good conversations with the government better understands.

Clive Johnson: I think we had good conversations. I think the government better understands our issues, why we wouldn't build a second mill if the 2023 code remains as initially proposed. But I don't really feel comfortable getting into detail.

A lot of issues why we wouldn't build a second mill in 2023 Cold remains US was initially proposed.

But I think I don't really feel comfortable getting into the details we're not going to negotiate on conference calls so.

Mike Sinema: We're not going to negotiate on conference calls. So, respectfully, I will come back to you on that as soon as we have clarification. Okay, no, thanks. I understand it. Thank you for that. And then with respect to, you know, they are, you know, very encouraging in building the trucking option, it seems like. So, was that part of, like, is the trucking option separate in terms of what kind of write-down that you took? Like, is the write-down really just related to the mill option? Is that the case?

So I.

Thanks Lee.

We'll come back to you with that assumes we get clarification.

Okay no. Thanks, I got it.

So for that.

And then with respect to that.

Are you now.

Very encouraging on building the trucking option that it seems like so.

Was that part of that is the trucking options separate in terms of that.

What kind of write down that you took the write down really just related to the mill option is not the case.

Mike Sinema: I'm not sure when you came on, but I gave an overview of how we had to look at it, but we had to look at the trucking option because it goes through Focola Mill. That meant that when we looked at the results and the future cash flows that we used in an impairment model for Focola, we did it as what we call a Focola complex cash generating unit. So it includes both the regional and the Focola mine put together because it's coming through the Focola mill. So we had to look at the combined cash flows. And what the biggest significant impact being that the regional was under the full 23, COPE is a new operation. Yeah, I think what we can tell you, Sonia, clearly from our trip down there, the government reiterated their appreciation of B2Gold, their respect for B2Gold as being what they call one of the top foreign investors in the country in terms of the way we've approached the project, the way we've dealt with the government and dealt with our employees So we seem to have a very good relationship there. But I can tell you the government made it very clear how keen they are on getting the trucking of the ore going. They really want that to happen.

Yeah.

I kind of gave me I'm not sure when you came on and give an overview of how we have to look at it but.

We had to look at the.

The trucking option because it goes through all of the mill.

It meant that when we looked at.

The results in the future cash flows that we use an impairment model for a call that we did or the what we call. It for call. It complex cash generating unit. So it includes both regional and coal mine put together because it's coming through the colon mill. So we have to look at the combined cash flows and then.

Okay, and what are the biggest significant impact being that reached almost under the full 23 Cocuzza new operation.

I think what I, what we can tell you Sean you clearly some of our trip down there.

The government reiterated their appreciation of each who goes to restrict would be to go with this being a big hole to the chocolate, Florida restaurants in the country in terms of the way we've.

Approached the project the way we've dealt with.

The government and it dealt with our employees et cetera. So we seem to have a good ROE it very well we do have a very good relationship there, but I can tell you. The government made it very clear how keen they are getting the trucking because they are happening they really whatever happens so they've got some steps to take before they could give us a second exploitation.

Clive Johnson: So they've got some steps to take before they can give us an exploitation permit, and that includes finalizing the code. But definitely, they need revenue for sure. They understand that we're ready to go. They did agree that we could build the infrastructure, even without an exploitation license, so we could build the infrastructure, which includes the roads. We're ready to go now because we have built all the necessary infrastructure. So we're on the same page with the government. We want to start hauling ore. They want us to do it as well. We need some more details of the code, and we need that exploitation permit.

Dallas is finalizing the cold, but there's definitely they need revenue for sure. They understand that we're ready to go. They did agree that we can build the infrastructure eagle without an exploitation license. So we can build the infrastructure, which concludes the roads were ready to go down because we built all the infrastructure necessary. So where are the same page with the government. We would have started probably more they want us to.

Two as well if it needs more detail of the code and we need that exploitation.

Clive Johnson: Hopefully, soon. Okay, and then my final question pertains to Goose and the $937 million that you ascribed to the transaction. So, you've got $740 million in mineral interest that you outlined there. And there was also the royalty obligation. Did you not cancel that royalty obligation? Is that, like, should we be thinking about that being removed, or is it still there?

Hopefully soon.

Okay and then my final question pertains to Goose and.

937 million that you ascribe to the transaction so that 740 million in mineral interests you outlined in there and there was also the royalty obligation did you not cancel that royalty obligation that Mike not it should.

Should we be thinking about that being removed or is it still there and then theres. Another royalty that you guys are collecting and what are your what is your intention with that second royalty.

Mike Sinema: And then there's another royalty that you guys are collecting, and what is your intention with that second royalty? We acquired the Hackett River royalty, that's an asset from our perspective, and we allocated that as part of the purchase price. And then the other part was that we inherited Sabina's Gold Stream obligation with Wheaton.

But first of all we do have a royalty there with wheat and Mike you want to.

A replay purpose.

I think there's maybe two things we acquired the Hackett River royalty, that's an asset from our perspective, and we all look at EBITDA as part of the purchase price and then the other the other part was we inherited weightings are the the Sabina gold stream obligation with Wheaton and if you recall when we did the acquisition.

Mike Sinema: And if you recall, when we did the acquisition, in addition to unwinding a couple other things, we bought back the max that we could have had, stream obligations. We bought back one-third. And in our production world, it's a small stream in our production world, and we're comfortable having a relationship with them. In terms of other royalties, we're not in the royalties business, and if we have an opportunity to realize, sell the royalties at reasonable levels, we're open to doing that for sure.

And in addition to unwinding a couple of other things we bought back the Max that we could have that scream obligations, we bought back one third.

And in our in our own production.

So it's small it's a small stream at our production world and we're comfortable to have a good relationship with them.

In terms of other royalties were not in the royalties business as if we have an opportunity to realize to sell the royalties are at reasonable levels. We were open to doing that for sure. Yeah. I mean, if you want if you want more detail on the screen there isn't a financial loss. If you look at note, we kind of laid out the Gulfstream works and what we initially acquired what we bought back.

Anita Soni: Yeah, and I mean, if you want a bit more detail on the stream, it is in the financial notes. If you look at note 18, we kind of laid out how the Gold stream works and what we initially acquired and what we bought back, so if you need any more detail, note 18 pretty much gives you that information. Okay, all right. Thank you very much. That's it for my question. Thanks. The next question comes from Don DeMarco of National Bank Finance. Please go ahead.

So if you need any more detail note 18 pretty much gives you that information.

Okay, Alright, thank you very much I forgot my question.

Okay. Thanks.

The next question comes from Don Demarco of Nash.

Don Demarco: Thank you, Operator, and good morning, Clyde and team. I'll start off with the first question at Goose. You know, we know that the Winter Ice Road is expected to finish up tomorrow. Just interested in your comments on construction. Was it completed without incident? No concerns about temperature.

National Bank financial please go ahead.

Thank you operator, and good morning client and clean.

First question I guess.

The winter ice roads expected to finish up tomorrow, just interested in your comments on construction was completed without incident.

Preparing for temperature is there anything you would do differently next year.

Bill: Is there anything you would do differently next year? Bill, let's try to see how it goes, and then Peter will come back for backup. Here we go. Okay. Thank you. Thank you. Well, sort of, but you're very broken up.

Okay, let's try it see how it goes to the Peter backup backup.

Yeah.

Yeah.

Go ahead bill.

King.

Yeah.

Jeremy.

Well sort of but it puts you very broken up.

Peter: Peter, I know you were just there. Could you just talk about what we're learning from this road construction? And what, if anything, we would do differently next year? It seems like it's been a very good success with what we've done with 160 kilometers, I guess 158 so far, but the roads that we've built. That's right, Clive.

He didn't change there you are.

So Peter I know you were just there can you just talk about what we're learning from this ramp construction.

And then what if anything we would do differently next year. It seems like it's been great.

Good success.

What we've done with 160 Congress I guess 158, so far but roads that we built.

That's right. So we had.

Peter: So we made a couple changes this year. We staged some equipment at midway points, we had some forward camps, went forward from both ends, and also had more equipment. More water trucks is one of the biggest changes that we made, and also optimized some of the routes over a few of the few lakes. Those work really well.

We made a couple changes this year, we stayed some equipment at midway point, we had some forward camps and went forward from both ends.

And I also had more equipment more water trucks is one of the biggest changes that we made.

And also optimize some of the routes over a few of the a few of the lakes.

Those work really well and basically you know the initial schedule was built around the road being open March 1st fairly conservatively and it looks like we are going to beat that.

Peter: And basically, the initial schedule was built on the road being open March 1, fairly conservatively. But it looks like, well, we are going to beat that. So we'll have it open in a day or two. So, first of all, I want to say, you know, emphasize that the changes that we made from last year have been very successful. As far as further changes... You know, this year with El Nino, we had a little bit of a challenge getting started with the warmer temperatures to start. That's not really anything that we can control.

We'll have it open.

In a day or two.

And so first of all I want to say you know emphasizes that the.

The changes that we made from last year had been very successful.

As far as further changes.

Yeah.

This year with the El Nino, we had a little bit of a challenge getting started with the with the warmer temperatures to start.

Really anything that we can control.

Peter: Other than that, it's been a really nice construction season. So obviously, we'll go back, we'll compare notes during the summer and make any changes that we come up with. But all in all, we're very happy with how this has gone. At the end of the day, often people build their ice roads starting from the ocean, in this case, Bathurst Inlet. The ocean freezes last.

Other than that it's been a really nice construction season. So obviously, we will go back will compare notes during the warmer during the summer and and make any changes that may come up with but.

All in all we're very happy with how this has gone.

Yes, that's just me.

A little color there would be at the end of the day often people will go that extra starting from the Ocean. This case bachelors to let the ocean freezes lost so by moving the equipment last year to the middle of being able to start construction that way. We got well ahead of schedule, we will owe Airbus to have a better schedule to do that so it also you know some.

Clive Johnson: So by moving the equipment last year to the middle and being able to start construction that way, we got well ahead of the schedule, although we were able to have a better schedule to do that. And also, some of the people involved here were involved with Kupo back in the Bima days when we built 470 kilometers of ice roads to get everything from the northern part of Quebec and Russia down to the Kupo site. So we have a lot of expertise in this, and of course, a lot was learned from last year about the ice road successes and the challenges that were faced by Sabine at the time. So I think the guys have done an excellent job, as we'd hope to see.

Other people volunteer where voters that.

Cooper back to the Bema days, when we built 470 kilometers of ice roads to get everything from the northern part of the that can rush it out to the Doctor.

It also has a coupon site. So we have a lot of expertise of this look worse than what was learned from last year, what the ice road successes of the challenges that were supposed to be little bit time. So I think the guide well you guys have done an excellent job.

Clive Johnson: Okay, thanks for that. And then a final question. A few weeks ago, you released a map based on the antelope target at Ojakoto. I think you could add maybe 50,000 ounces a year beyond 2026. What do you need to see in a scoping study that's pending, Q125, to confirm? And is there any other sort of high-priority targets on the site that you're interested in that could add additional extension? Well, the study will give us an economic view to what we tapped into so far, and I'll let Vic talk about, you know, the potential here, and since we haven't got more assays back yet, but we're very encouraged by what we're seeing in the drilling. The initial resource that we'll put out will be on the Springbok Zone, which is one of several zones within the Antelope Deposit, The Springbok is about 3km south of the Ochicotto Pit, it lines up, the lineament that lines up Springbok and the Ochicotto Pit runs straight towards it, and we do have several hits, between Springbok and the Archicado Flint that we'll obviously follow up on and are going to be, are following up on this year, so that potential is wide open, three kilometers of strike, you know, obviously, that needs to be drilled out. So there's huge potential. There could be quite a few more antelopes out there.

We'd hoped to see.

Okay. Thanks for that and then I just final question.

You released the math based on the ankle with cargo like Dakota.

If he could add maybe 50000 ounces a year beyond 'twenty 'twenty six.

What do you need to see in the scoping study.

Pending Q1, 'twenty five confirmed and is there any other sort of high priority target kind of thing that you're interested in it could add additional extension.

Extension.

While the study will give us a economic view into what we what we've tapped into so far and I'll, let Vic talk about you know what.

The potential here.

We haven't got we're actually is back yet, but we're encouraged by what we're seeing is really.

Yeah.

So the.

It was all set.

The initial resource that will put us well beyond the springboks.

Which is one of several zones within the <unk> deposit.

Springbok, there's about three kilometers instead of three kilometers south of the Archie caught a bit it lines up.

Lineament that lines up Springbok and the odds you got it.

Is run straight towards it.

And we do have several it's between Springbok and the arts you quite a bit that will obviously follow up all in all going to be following up on this yet so that potential is why does it.

Three kilometers of strike.

Obviously that needs to be drilled out so there's huge potential there could be quite a few more onto that is out there.

Vic: Okay, great to hear. Thanks so much, Shannon, and good luck with Q1. Next up. This concludes the question and answer session. I would like to turn the conference back over to Clive Johnson for any closing comments.

Okay, great to hear thanks.

Thanks, so much Kevin and good luck with Q1.

Thanks, Doug.

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

Clive Johnson: Thank you all for your questions and your attention today. Obviously, I guess maybe the elephant in the room or the rhino in the room is the fact that the performance of the gold equities, including ours, is pretty strong and looks like a pretty solid gold price. Those are the challenges we face.

Okay. Thanks, a lot very well. Thank you all for your questions and your attention today, obviously I guess, maybe the elephant in the room, where they are right on with the ROE is the fact that this the performance of the gold equities, including ours will be able to be pretty strong and it looks like a pretty solid gold price.

Those are the challenges we face, but I think we.

Clive Johnson: I think we've presented our case here about 2024 as a transitional year leading into getting back to some excellent years, very strong years in cash flow, and an increase in production as we bring in goose and do some of the other things we were doing in 2024. So, at the end of the day, I've been doing this for a long time. I've never seen any others agree on the disconnect between the gold price and gold equities. So, somewhere along the way here, someone's going to find some gold equities attractive.

<unk> presented our case here about 2024.

Transitional year, leading into getting back to some excellent year, so sort of original years in cash flow and the increase in production as you bring kusama and do some of the other things we were doing in 2024. So these are the day.

To do this for a long time I've never seen them.

Three the disconnect between the gold price and the gold equity so somewhere on the way here so much gonna slides some gold equities are attractive.

Clive Johnson: We'll continue to tell our story. We'll be at the VIVO conference, with a tremendous amount of interest in having meetings at PDAC, etc. So we'll be out there talking to people about how B2Gold is going to continue to be a very successful gold producer, very strong financially and ESG and continue to grow gold production as we move forward into 2025.

We'll continue to tell our story will be to vivo conference without.

So tremendous amount of interest in having meetings PDOC et cetera. So we will be out there talking to people about hoping to go to just going to continue to be a very successful co producer very strong.

And ESG.

Continuing to grow gold production.

Before I get to 2025, so thank you all for your.

Operator: So thank you all for your contribution and your questions and your time. Thanks, everybody. This brings to a close today's conference call. You may disconnect your line. Thank you for participating, and have a pleasant day, https://www.youtube.com. Thank you for watching! steph mise BD †wh, Thank you for watching!

And to your questions.

Right.

Thanks, operator.

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

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