Q2 2024 B2Gold Corp Earnings Call
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Operator: Thank you for standing by. This is the conference operator. Welcome to B2Gold Corporation's second quarter 2024 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. 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 the 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.
Speaker Change: Thank you for standing by. This is the conference operator. Welcome to B2Gold Corporation second quarter 2024 financial results conference call.
Speaker Change: 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.
Speaker Change: To join the question queue, you may press star then 1 on your telephone keypad.
Speaker Change: Should you need assistance during the conference call, you may signal 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.
Clive Johnson: Thank you, Operator. Welcome, everyone, to the conference call to discuss the... Q2 results for B2Gold. We had some very positive results from the quarter, and financial results from Mike Cinnamond, our CFO, is going to walk us through that. We're also going to talk about some of the other issues that we discussed in the news release. We're going to get an update from Bill on the operational update from both the situation in Mali in terms of production, and we'll talk about an update on Goose.
Speaker Change: Thank you, Operator. Welcome, everyone, to the Carpus Call to discuss the
Speaker Change: Results, Q2 Results, or perhaps Results from E2 Gold. [inaudible]
Speaker Change: We had some very positive results from the quarter and financial results from Mike Cinnamond.
Speaker Change: are going to walk us through that. We're also going to talk about some of the other issues that we cover in the NINJA release. We're going to get an update from Bill on the operational update from both the situation in Mali in terms of...
Speaker Change: Production, and we'll talk about an update on Goose. Just a couple of points maybe to start us off.
Clive Johnson: Just a couple of points to start us off. We have had an excellent track record, as everyone I think is aware of operational performance for many years now. We did have an excavator tip over on its side, which is very unusual that happened, and Bill will talk in more detail about that. That was unfortunate.
Speaker Change: We have had an excellent track record, as everyone I think is aware of, of operational performance for many years.
Speaker Change: Now, we did have.
Speaker Change: Unknown Executive, William Lytle
Clive Johnson: That caused us to re-direct production for, to talk with us about some of your questions, I'm sure. We are in the, believe to be in the final stages, we believe, of the discussions with the government of Mali to understand. The full lab.
Speaker Change: for this year down about 50,000 ounces that has not gone away. It's simply moved into next year. So that's why we've we got it. And you will hear more about that bill will tell you.
William Lytle: What happened and next we enter and how we've taken steps to ensure
Bill: that that very unusual occurrence cannot happen again.
Speaker Change: We'll talk about that.
Speaker Change: to get back to our excellent operational performance. We'll talk about how.
Speaker Change: We're already starting to see tonnages come back with the replacement excavators.
Speaker Change: website, etc.
Speaker Change: We are in the, believe to be in the final stages, we believe, of the discussions with the government of Mali to understand the
Clive Johnson: Implementation of the 2023 Mining Code. So we are, as I said, in the final stages of that, those discussions, and I hope very shortly to be able to come out and announce. What that will do is that will trigger the rapid receipt of a permit, an exploitation permit, for the regional areas where we want to begin trucking ore down. As you've heard before, we've already built the roads, we're ready to go in terms of trucking ore down, and that can add 8,200,000 ounces a year. That would be reaching an agreement with the government that will trigger that permitting process.
Speaker Change: The full
Speaker Change: implementation of the 2023 mining code. So we are, as I said, final stages of that, those discussions and hope very shortly to be able to come out and announce. What that will do is that will trigger the
Speaker Change: We hope to wrap up the receipt of a permit, an exploitation permit, for the...
Speaker Change: Regional.
Speaker Change: Unknown Executive, William Lytle
Speaker Change: Unknown Executive, William Lytle
Clive Johnson: The government has assured us that they want to see this happen; they very much want to see Vekola expanded. So we're looking to get, hopefully, a rapid response to getting an exploitation permit. No blasting, no tracking.
Speaker Change: expanded. So we're looking to get hopefully a rapid response to getting an exploitation permit. No blasting, no tracking. We will be slowly the second material into Trexton Hall at 20 kilometers or less down to the Focola Mill. The other thing to
Clive Johnson: We will slowly be sacking that material into trucks and hauling it 20 kilometers or less down to the Fukuda Mill. The other thing to, Mr. Nicholas P. Connors. The ultimate final value of the Focola Complex is very open, with further exploration successes. And we're not talking about brand new, there probably will be some new discoveries, but also expansions of those sorts of mineralization that we've hit so far. So the full story, the ultimate life of mine, will hopefully continue to add to the reserves and the ultimate life of mine and the ultimate value, therefore, of the Focola Complex.
Speaker Change: Make sure people are still aware of us. There's tremendous exploration upside.
Speaker Change: in the Focola Complex.
Speaker Change: with the agreement with the government, we will immediately go back to an aggressive drilling program around $7 billion of exploration drilling up and down the complex.
Speaker Change: There's a RICS training right now at Metnadi on the Focola license. So a tremendous expedition upside. We did take a impairment charge, and Mike will talk about that. But it's very important to note that...
Speaker Change: The ultimate final value of the Dracula complex is very open with further exploration successes and we're not talking about brand new.
Speaker Change: There probably will be some new discoveries, but also expansions of known sources of mineralization that we've hit so far. So the full story, the ultimate life of mine, we'll continue hopefully to add to the reserves. And the ultimate life of mine, and the ultimate value, therefore, of the Focola Complex,
Clive Johnson: We see the growing value of that asset. I think with that, I'll turn it over to Mike to give us a review of the financial results. But maybe before I do that, I'll just talk a little bit about the positive side, you know, we've had a great track record in this company. For a long time, including from B2Gold before that, as being good operators, good construction expiration, and then managing things like political risk, et cetera.
Speaker Change: We see the growing value from that asset.
Speaker Change: I think with that, I'll turn it over to Mike to give us a review of the financial results. But maybe before I do that, I'll just talk a little bit about on the positive side, you know, we've had a great track record in this company.
Clive Johnson: So we've had a great track record, and one thing we're very good at is taking on challenges. So yes, we have some challenges in front of us. This year, we've always said this would be a transitional year. We knew production would be lower.
Speaker Change: for a long time, including from before that, as being good operators, good construction, exploration, and then managing things like political risk, etc. So we've had a great track record. And one thing we're very good at
Mike Cinnamond: is taking on challenges. So yes, we have some challenges in front of us this year. We've always said this would be a transitional year. We knew production would be lower. We have a lot of capital expenditures as we've talked about before.
Clive Johnson: We have a lot of capital expenditures, as we've talked about before, including, of course, goose construction. But this is very much still a transitional year. We remain in a very strong financial position, and as we look ahead, we're looking forward to continuing to grow this company based on developing our existing assets, such as the expansion of coal through trucking. GooseMind coming on at mid, Bill will talk about how well construction is going.
Mike Cinnamond: Including of course the Goose construction, but this is very much a still a transitional year We remain in a very strong financial position and as we look forward we're looking forward to continuing to grow this company based on Developing our existing assets such as the expansion of coal through trucking
Mike Cinnamond: The Goose Mine coming on at mid, Bill will talk about how well construction is going, coming on mid.
Clive Johnson: Next year, we're producing on an annualized basis about 320,000 ounces a year. And then you look at the growth profile a little bit more, we've had a positive PEA, we're doing feasibility, then amylase, which should be done by the middle of next year. We're getting quite encouraged by that project. And if that turns into the next mine, it fits in nicely after Goose, potentially. And if the feasibility is as positive as we're hoping, as the PEA was, then that could ultimately add another 240,000 ounces a year. So there's about 650,000 ounces of growth in this company from existing assets. We don't have to go and buy another mine. We don't have to go and make big discoveries.
Speaker Change: Next year, we're producing on an annualized basis about 320,000 ounces a year. And then when you look at the growth profile a little bit more, we've got a positive PEA. We're doing infusibilities, Vanilla and Vanilla Latte, which should be done by the middle of...
Speaker Change: next year. We're getting quite encouraged by that project. And if that turns into the next line, it fits in nicely after Goose potentially.
Speaker Change: and if the feasibility is as positive as we're hoping.
Speaker Change: That's the P.E.A. wasn't it?
Speaker Change: that not ultimately could add another 200.
Speaker Change: 40,000 hours to the year. So there's about 650,000 hours to live.
Speaker Change: Growth in this company, from existing assets, we don't want to go and do buy another, buy another, buy another, we don't have to go and make big discoveries and that's a great growth profile and we'll continue as we get through the challenge of this year, we'll continue very much to focus on the opportunity to continue to.
Clive Johnson: So that's a great growth profile. As we get through the challenges this year, we'll continue very much to focus on the opportunity to continue growing the company through existing assets and keep putting them into. And with that, I'll turn it over to Mike to give us a financial review of cash results. And then Bill's going to give us an update, as I mentioned. Thank you, Clive. Firstly, so I'd say financially, it was.
Speaker Change: Grow the company through existing assets and keep putting them into production.
Speaker Change: Transcripts provided by Transcription Outsourcing, LLC.
Speaker Change: And then Bill's going to give us an update on, as I mentioned.
Mike Cinnamond: Thank you, Clive. First thing I saw, I'd say financially, it was a strong quarter. On the earnings side, after adjusting for one-time items, the company generated $0.06 per share of adjusted earnings. Definitely, as you can see, it benefited from higher average gold prices in the period. Operating cash flow, the bottom line, was $62 million after changes in working capital or $192 million before changes in working capital. Again, very strong results for the operations.
Bill: Thank you, Clive. First thing I saw, I'd say financially, it was a strong quarter.
Bill: on the earnings side after adjusting for one-time items the company generated six cents per share of adjusted earnings and
Speaker Change: Definitely, as you can see, benefited from stronger average coal prices.
Speaker Change: Operating cash flow, bottom line was $62 million after changes in working capital or $192 million before changes in working capital. Again, very strong results for the operations.
Mike Cinnamond: As Clive mentioned or alluded to, we did lower production guidance at Focola due to equipment availability issues in the pit. And so with that, we guide production for the second half and for full year 24. We also looked at the cash costs, null and sustained costs for each of our operations, and overall, at a consolidated level, we ended up with no change to our consolidated cash costs. Operating guidance, we maintain that range of between $835 and $895 per ounce, and that has benefited us for one thing for sure through the year with lower fuel prices than we budgeted.
Speaker Change: As Clive mentioned, or alluded to, we did lower production guidance of cola due to equipment availability issues in the pit. And so with that...
Clive Johnson: We guide in production for the second half and for full year 24. We also Looked at the cash cost Nolan sustained cost
William Lytle: Unknown Executive, William Lytle
William Lytle: and for one thing for sure through the year with lower fuel prices than we budgeted.
Mike Cinnamond: And then for consolidated all-in sustaining costs, the reduction in overall production plus higher royalties through the year as we enjoy a higher gold price resulted in a reguide upwards for the consolidated all-in sustaining cost range up to between 1420 and $1,480 per hour. Clive did mention that we did take a non-cash impairment charge on the COLA operations. That's based on our best estimate of how we think the 2023 mining code will ultimately be applied to the Focola complex, as we got more clarity on that through the intervening period, but the issue of some implementation agreements by the state and some ongoing discussions with the state.
William Lytle: And then for consolidated all-in sustaining costs, the reduction in overall production plus higher royalties through the year as we as we enjoy a higher gold price resulted in a reguide upwards for the consolidated all-in sustaining cost range up to between $1420,000
William Lytle: and $14.80 per ounce [inaudible]
William Lytle: Clive did mention that we did take a non-cash impairment charge on the COLA operations. That's based on our best estimate of
Speaker Change: How we think the 2023 mining code will ultimately be applied to the Focola complex as we got more clarity on that through the intervening period, but the issue of some implementation agrees by the state, some ongoing discussions with the state.
Mike Cinnamond: Then, as expected, Spanning and the Goose project picked up with the completion of the 2024 Winter Ice Road and the transport of all the required materials to the site to complete construction. And balance sheet wise, we continue to remain in a very strong financial position with cash and cash equivalents of $467 million at the end of the second quarter. It's a very small amount of debt related mainly to equipment. We do have the full amount of 700 million for the facility available on our revolving credit facility line.
Speaker Change: Then, as expected, spending in the Goose Project picked up with the completion of the 2024 Winter Ice Road and transport of all the required materials to site.
Speaker Change: complete construction.
Speaker Change: And balance sheet wise, we continue to remain in a very strong financial position with cash and cash equivalents of $467 million at the end of the second quarter, just a very small amount of debt related mainly to equipment leases.
Speaker Change: We do have the full amount, $700 million, available on our Revolving Credit Facility line. And, as previously indicated, we will be drawing some of that line as we roll into the final stages of completion of this year's CAPEX program across all our sites, and then completion of the Goose project.
Mike Cinnamond: And, as previously indicated, we will be drawing some of that line as we roll into the final stages of completion of this year's CAPEX program across all our sites and then completion of the Goose project. And so we feel we've got lots of good amount of financial flexibility to do that and maintain our other growth initiatives around our portfolio and continue to fund healthy exploration programs to extend our mind lights at all sites. And that's what I was going to say on the financial side. So with that, I guess I'll pass it over to Bill.
Speaker Change: and so we feel we've got lots of good amount of financial flexibility to do that and maintain our other growth initiatives around our portfolio and continue to fund healthy exploration programs to extend our mind lights at all sites.
Speaker Change: And that's what I was going to say on the financial side. So with that, I guess I'll pass it over to Bill.
Bill: All right, thanks. Thanks, Mike. Um, yeah, so on the operational side, I'll do the easy stuff first. So looking at looking at Masbati, Masbati continues to perform at a world-class level.
Speaker Change: Chup.
Bill: Thanks, Mike.
Bill: Yeah, so on the operational side, I'll do the easy stuff first.
Bill: So looking at Masbati, Masbati continues to perform at a world-class level. I think everyone's aware, still more than 2,000 days without an LTI and very strong cash flows.
Bill: I think everyone's aware, still more than 2,000 days without an LTI and very strong cash flow. Ochocotto continues to also perform very well. Probably the excitement there is that we are preparing a PEA study that would come out in kind of the middle of next year, which has the potential to expand the ounce profile through the existing life of the mine through the early 2030s and add ounces to the existing stockpile.
Bill: Ochoa Koto, Ochoa Koto continues to also perform very well. Probably the excitement there is that we are preparing a PEA study that would be come out in kind of the middle of next year.
Bill: which has the potential to expand the ounce profile through the existing life of mine through the early 2030s and add ounces to the existing stockpiles.
Bill: Focola, let's see here. So Focola is down, as you heard Mike say, and Mike and Clive talked about. One of the things we do need to point out is Focola has historically had an excellent track record for producing ounces. In this particular case, there was, as Clive mentioned, an operator error where an operator tipped over an excavator, which cracked the frame for the excavator. That is something that has been rectified. Certainly, we've given extensive training and retraining to all the employees on the use of equipment. We see that as a one-off, an unlikely event.
Bill: At Focola, let's see here, so Focola
Speaker Change: is down, as you heard Mike say and Mike and Clive talk about. One of the things we do need to point out is...
Speaker Change: So, COLA has historically had an excellent track record for producing ounces. In this particular case, there was, as Clive mentioned, an operator error where an operator tipped over an excavator, which cracked the frame for the excavator.
Speaker Change: that
Speaker Change: is something that has been rectified. Certainly we've given extensive training.
Speaker Change: Retraining to all the employees on use of equipment. We see that as a one-off, an unlikely event.
Bill: That, with the confluence of not really being able to get into some of the regional stuff, really is the cause for the delay. As Clive indicated, we haven't lost any ounces; they've just been pushed back. We're going to see, currently, we've mined out the high-grade ounces in Phase 6, and we're going to see the high-grade ounces from Phase 7 starting to show up in Q4 of next year or Q4 of this year, so you'll see most of those ounces transferred into next year. Just the mine plan shifts for Pacola by about a quarter. Um, um, let's see, Ed Goose.
Clive Johnson: That, with the confluence of not really being able to get into some of the regional stuff, really is the cause for the delay. As Clive indicated, we haven't lost any ounces, it's just been pushed back.
Clive Johnson: We're going to see, currently, we've mined out the high-grade ounces in Phase 6.
Ed Goose: Let's see, Ed Goose.
Bill: So at Goose, we are having, operationally, a very good run there. Last time we talked, we were working on the Winter Ice Road. The 2024 Winter Ice Road was successfully completed. We brought down all of the materials necessary to complete the project. We expanded the camp to more than 600 people, which allows us to really get on top of making sure we can bring this in on time. The tanks, which are necessary at the MLA, are complete.
Ed Goose: So at Goose, we are having
Speaker Change: Operationally, a very good run there. Last time we talked, we were working on the Winter Ice Road. The 2024 Winter Ice Road was successfully completed. We brought down all of the materials necessary to complete the project. We expanded the camp to more than 600 people.
Speaker Change: which allows us to really get on top of making sure we can bring this in on time.
Speaker Change: The tanks which are necessary at the MLA are complete. We'll be starting to fill them up this month.
Bill: We'll be starting to fill them up this month. The tanks on site will be done in kind of Q3, Q4. We don't see an issue there.
Speaker Change: The tanks on site will be done in kind of Q3, Q4.
Bill: The concrete, which is critical to get poured during the summer season, we've got currently more than 75% of the concrete done, and certainly by Q3, we'll be well over 90% on the concrete. All the steel is going up very well. We're currently working on electrical. And really, the takeaway is that for most disciplines, we are either at where we need to be or ahead of schedule, which allows us to produce gold in Q2 2025.
Speaker Change: We don't see an issue there. The concrete, which is critical to get poured during the summer season, we've got currently more than 75% of the concrete done, and certainly by Q3, we'll be well over 90% on the concrete.
Speaker Change: All the steel is going up very well. We're currently working on electrical. And really, the takeaway is for most disciplines, we are either at where we need to be or ahead of schedule, which allows us really to produce gold in Q2 2025.
Bill: So, relating to the... The cost estimate. I know that we had talked about putting it out in June of this year. Maybe that was a bit ambitious, probably on my side, when you think about what the actual schedule was for seeing what had come down the road. As you know, the winter ice road ended in May. We've now got everything opened up, and we're taking a look at what the previous owner had actually purchased. I think everyone's aware that they are cash strapped.
Speaker Change: The cost estimate I know that we had talked about putting it out in
Speaker Change: June of this year.
Speaker Change: Maybe that was a bit ambitious, probably on my side. When you think about what the actual schedule was for seeing what had come down the road. So as you know, the road ended, the winter ice road ended in May.
Speaker Change: We've now got everything opened up and we're taking a look at what the previous owner had actually purchased. I think everyone's aware that they were cash strapped and
Bill: And what we're doing now is just making sure that what has been ordered meets what we need to run kind of a B2Gold world-class project. Typically, this is not our standard fare. What we like to do is take over a project during either pre-feasibility or at feasibility level, have a look at it, redesign it, and go ahead and make sure that we've ordered everything initially to the B2 standard. We've got our heads around what is there.
Speaker Change: What we're doing now is just making sure that what has been ordered meets what we need to run kind of a B2Gold world-class project. Typically, this is not our standard fare. What we like to do is take over a project.
Speaker Change: during either
Speaker Change: pre feasibility or at feasibility level, have a look at it, redesign it and go ahead and make sure that we've ordered everything initially to the B2 standard. So we certainly see we've got our head around what is there.
Bill: We're working on what that means financially. There are a lot of moving parts, but we certainly see that by the first part of September, we'll be able to deliver a concrete number to the market. And then, I guess maybe the last thing is Gran Malote. We are continuing to work on a feasibility study which will come out in the middle of next year. We're currently staffing up all of our teams and beginning to work on that. Clive, I don't know if there's anything else you'd like me to talk about.
Speaker Change: We're working on what that means financially. And there's a lot of a lot of moving parts, but we certainly see by the first part of September, we'll be able to deliver a concrete number into the market.
Graham Malote: And then I guess maybe the last thing is Graham Malote, we are continuing to work on a feasibility which will come out in the middle of next year. We're currently staffing up all of our teams and beginning to work on that. Clive, I don't know if there's anything else you'd like me to talk about.
Clive Johnson: Well maybe just a quick update, it's in the newsletter about where we are right now in terms of shipping and stuff for getting everything on site for next year, so. Yeah, that
Clive Johnson: Just a quick update, it's in the newsletter about where we are right now in terms of shipping and stuff for getting everything on site for next year.
Bill: Yeah, that's actually a very valid point. So right now, we're in the middle of commencing the sea lift for 2024. Currently, 11 ships will be sent to the MLA. That includes more than 85 million liters of fuel and enough cargo to basically get us through the 2025 season. So everything remains on track. The B2Gold logistics team is performing beautifully, and we don't see any issues with the sealift. We'll start receiving cargo in about 10 days, and now people want to get a visual view of all this.
Clive Johnson: Yeah, that's actually a very valid point. So we right now we're in the middle of commencing the C-Lift for 2024.
Speaker Change: Currently with 11 ships.
Clive Johnson: will be sent to the MLA. That includes more than 85 million liters of fuel.
Clive Johnson: and enough cargo to basically get us through the 2025 season. So, everything remains on track. The V2L logistics team is performing beautifully, and we don't see any issues with the CLEP. We'll start receiving cargo in about 10 days.
Bill: And now people want to get a visual view of all this on our website. There are some links to go to to look at some great drone footage showing the progress of construction. It's been essentially remarkable the pace at which our construction team can build things, so that's going to be extremely well. Thanks, Bill. I think with that, I'm sure you have lots of questions for us, so our little prep operator will open up to questions.
Speaker Change: And people want to get a visual view of all this on our website. There's some links to go to to look at some great drone footage of showing the progress of construction. It's been essentially remarkable the pace at which our construction team can build things, so that's going extremely well.
Speaker Change: Thanks, Bill. I think with that, I'm sure you have lots of questions for us. So we'll open up to questions.
Operator: We will now begin the analyst question and answer session. Alright, question and answer session.
Speaker Change: We will now begin the analyst question and answer session.
Operator: To join the question queue, you may press star and 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. To withdraw your questions, please press start and choose. We'll pause for a moment as callers join the queue. The first question comes from Wayne Lam with RBC. Please go ahead.
Speaker Change: All right, question and answer session. To join the question queue you may press star then 1 on your telephone keypad.
Speaker Change: You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys.
Speaker Change: To withdraw your questions, please press start and choose.
Speaker Change: We'll pause for a moment as callers join the queue.
Speaker Change: The first question comes from Wayne Lamb with RBC, please go ahead.
Wayne Lam: Yeah, thanks, guys. Just wondering, just on the impairment charge seeking this quarter, this is the second impairment taken now in relation to Focola over the past year for almost the same amount. Outside of the increase in the discount rate, can you just talk about some of the factors involved in taking those two impairments in succession and the additional concessions being made in the negotiations? And then, just with the implementation decree having been finalized now, are you guys pretty confident that a deal is imminent, and are you able to provide a more definitive timeline now for completion? Well, I would say we're very confident in the near term.
Wayne Lamb: Yeah, thanks guys. I'm just wondering, just on the impairment charge taken this quarter, this is the second impairment taken now in relation to Focola over the past year for almost the same amount.
Speaker Change: Outside of the increase in the discount rate, can you just talk about some of the factors involved?
Speaker Change: and taking those two impairments in succession and
Speaker Change: The additional concessions being made in the negotiations and then just with the implementation decree having been finalized now Are you guys pretty pretty confident that a deal is imminent and are you able to provide a more definitive timeline now for completion?
Clive Johnson: Well, I would say we're very confident in the near term of reaching an agreement that satisfies all stakeholders. Of course, as you probably understand, we can't go into details about negotiations, etc. That wouldn't be appropriate or useful. So in terms of the impairment, Mike, do you want to talk a little bit about that? Yeah, I think we'll really keep it.
Speaker Change: Well, I would say we're very confident in the near term here of reaching an agreement that satisfacts all stakeholders. Of course, as you probably understand, we can't go into details about negotiations, etc. That wouldn't be appropriate or useful.
Speaker Change: Unknown Speaker So in terms of the impairment, Mike, do you want to talk a little bit about that? Unknown Speaker Yeah. I think we'll really keep it to the level that we're required to look at.
Mike Cinnamond: Yeah, I think we'll really keep it to the level that we were required to look at. Well, we have impairment indicators and then user best estimates at each reporting period.
Speaker Change: and then use their best estimates at each reporting period.
Mike Cinnamond: So they did put out some new Carification and Reimplementation Decrees, and we've had ongoing discussions. So I think we're close. I think we've reflected those items that we believe would impact the carrying volume of what we booked this time around. But we don't want to discuss them in detail, I think, until we finalize our discussions. But I think it's probably... May be quite clear that the fact that we actually
Speaker Change: New clarification and their implementation decrees and we've had ongoing discussion. So I think we're close. We think we've reflected
William Lytle: Unknown Executive, William Lytle
Mike Cinnamond: It may be quite clear that the fact that we actually looked at it and took the impermissible George Woodson, John
Speaker Change: Maybe click here that the fact that we've actually looked at it and took me in a permanent charge, which suggests to you how close we are to reach, we think we're close to our reach in the final agreement.
unknown: Okay, I got it. Fair enough. And then maybe just wondering, on the updated ASIC guidance at FECOLA, does that include stripping planned for the regional allowances next year, or is that going to fall under non-sustaining CAPEX? And then, do you still anticipate costs coming down next year as per the 2024 mine plan, or should we be thinking about something in the similar range to this year, given the amount of capitalized stripping and underground development?
Speaker Change: Okay, got it. Fair enough. And then maybe just wondering.
Speaker Change: On the updated ASIC guidance at FECOLA, does that include stripping planned for the regional allowances next year or is that going to fall under non-sustaining CAPEX?
Speaker Change: And then, do you still anticipate costs coming down next year as per the 2024 mine plan, or should we be thinking about something in the similar range to this year, given the amount of capitalized stripping and underground development need to be done?
unknown: Well, I can comment certainly for starters on Stripping. For regional, there is no regional production included in these numbers nor any costs related for this year, so that the re-guide number doesn't assume the same name. And then, you know, as we look forward, I don't want to talk about the mindflying for the COLA. We haven't put out any guidance for next year yet on the cost.
Speaker Change: Well, I can comment certainly for starters on.
Speaker Change: Distributing for regional, there is no regional.
Speaker Change: Production included in these numbers nor any cost related to this year, so that the date I found results in the syllabus testing campaign.
Speaker Change: And then, you know, as we look forward, I don't want to talk about the mine plan for a cola.
Speaker Change: We haven't put out any guidance for next year yet.
Bill: Yeah, we haven't put out any guidance for cost, but I certainly think that we've been very clear that the underground will come in in Q2 of 2025. And we are expecting regional allowances next year. You know, as Clive said, it looks like an agreement is imminent. So we are ramping up, as we've been very open; all of the work necessary to develop that regional project is already done, the roads are in, the infrastructure's in, all we need to do is we'll have a quarter of pre-stripping, and we'll go into production.
Speaker Change: on the call side.
Speaker Change: Yeah, we haven't put out any guidance for cost, but I certainly think that we've been very open that the underground will come in in Q2.
Speaker Change: 2025 and
Speaker Change: We are expecting regional allowances next year.
Speaker Change: You know, as Clive said, it looks like an agreement is imminent, so we are ramping up. We've been very open, all of the work necessary to develop that regional project has already done, the roads in, the infrastructures in. All we need to do is we'll have a quarter of pre-stripping, we'll go into production.
Speaker Change: Thank you. Thank you.
unknown: at BackRiver. Can you just talk about what the remaining large CapEx items are outstanding that's been driving the delay in the review? And is it still the case that most of the large capital items have already been spent, and most of the increase with the update is going to be driven by labor and logistics? Or are there still equipment items that need to be replaced in relation to Bill's comment on sorting through some of the historic Sabina stuff?
Speaker Change: And then maybe at Back River, can you just talk about what the remaining large CapEx items are outstanding that's been driving the delay in the review and
Speaker Change: Is it still the case that most of the large capital items have already been spent and most of the increase?
Speaker Change: with the update is going to be driven by labor and logistics or they're still
Bill: Yeah, so the answer is it's tough really to say exactly. I don't want to come out and say really kind of where the numbers are exactly because I don't want to lie. I don't want to mislead anybody.
Speaker Change: Yeah, so the answer is, it's tough really to say exact. I don't want to come out and say really kind of where the numbers are exactly because I don't want to lie. I don't want to I don't want to miss mislead anybody. We're in the middle of checking through that right now. What I will tell you is that most of the major things
Bill: We're in the middle of checking through that right now. What I will tell you is that most of the major things are purchased and on site. Right, so it is really a question of kind of picking around the edges. Don't forget, we've got that extra quarter now, which does have an impact. And we're just working through that. So you have to give me like 30 days.
Speaker Change: are purchased and on site. Right. So it is it is really a question of kind of picking around the edges. Don't forget, we've got that extra quarter now, which is which does have an impact. And we're just working through that. So you got to give me like 30 days.
Speaker Change: yeah
unknown: Okay, I got it. Looking forward to the update. Thanks for answering my questions.
Speaker Change: Okay, got it. Welcome forward to the update. Thanks for answering my questions.
Operator: The next question comes from Don DeMarco with National Bank Financial. Please go ahead.
Speaker Change: Thanks.
Speaker Change: The next question comes from Joan DeMarco with National Bank Financial. Please go ahead.
Don Demarco: Thank you, Operator. And good morning, Clive and team.
Joan DeMarco: Thank you operator and good morning Clive and team. First question, Bill can you give a little more color on the the guidance increase or rather the 2025 outlook?
Bill: First question, Bill, can you give a little more color on the guidance increase, or rather the 2025 outlook? Of the 90K that's added, how much is from Focola deferrals from 24, the Truckee regional ore, and also, or the Focola underground? Three different buckets. How did that move the needle on 2025?
Bill: Of the 90K that's added, how much is from Focola deferrals from 24, the Truckee regional ore, and also or the Focola underground?
Speaker Change: Those three different buckets. How did that move the needle on 2025?
Bill: I think Peter, you're in the room, right? It's probably better for you to answer this question.
Speaker Change: Peter, you're in the room, right? It's probably better for you to answer this question.
Peter: Yeah, thanks, Bill. Yeah, as far as 2025 goes with, you know, with the deferral of the ounces, basically, it's just sliding the high grade zone from phase seven back. So, you know, we're still revising those line plans now to see exactly what it is, but we're looking more at a replacement. Not really an upshift in 2025.
Peter: Yeah, thanks, Bill. Yeah, as far as 2025 goes with the deferral of the ounces, basically it's just sliding the high-grade zone from phase 7 back, so we're still revising those line plans now to see exactly what it is, but we're looking more at a replacement, not really an upshift in 2025.
Peter: Okay, I see. So you're just kind of replacing them with higher grades. But what you have for the Focola Regional or for Focola Underground, as Bill mentioned, starting in Q2, that just remains unchanged.
Speaker Change: Okay, I see. So you're just kind of replacing with higher grades, but what you have for the Focola Regional or for Focola Underground, as Bill mentioned, starting in Q2, that just remains unchanged.
Peter: That's right. Yeah, that's, yeah, we're not changing anything as far as those goes. On a development basis, those projects remain on. Okay, perfect. And there was no
Speaker Change: That's right. Yeah, that's, yeah, we're not changing anything as far as those goes. On a development basis, those projects remain unscathed.
Peter: Okay, perfect. And there was no regional truck door in the 2024 guidance.
Speaker Change: Okay, perfect. And there was no regional truck door in 2024 guidance. Is that correct?
unknown: Is that correct? That's correct. That's correct. Thank you. Then, just to this equipment availability issue, it's good to hear that it's being addressed, but when do you expect it to fully be addressed? And is there any risk to that timeline?
Speaker Change: That's correct.
Speaker Change: Thank you. Then, just to this equipment availability issue,
Speaker Change: It's good to hear this being addressed, but when do you expect it to fully be addressed?
Speaker Change: and answer any risk to that timeline? You know, we saw Focola cost actually improve in Q2, so I guess the read through here is, is probably gonna take a few weeks to get addressed. Maybe we're gonna see higher costs at Focola Q3.
unknown: You know, we saw Focola costs actually improve in Q2. So I guess the read through here is it's probably going to take a few weeks to get addressed. Maybe we're going to see higher costs at Focola. Is that fair to say? All right.
Bill: Alright, so the first part of the question is, it has already been addressed. Basically, we brought forward, we replaced the excavator, of course, it took time to get it in, and we brought forth another excavator in 2025. So what we've seen kind of in Q3 so far is we have met or exceeded our production targets for most, both months so far. And so it has already been addressed. Now it's just a question of how quickly we can catch up. And so, you know, I'll let Mike talk about the cost.
Speaker Change: Is that fair to say?
Speaker Change: Right, so the first part of the question is, it already has been addressed, basically we brought forward, we replaced the excavator, of course it took time to get it in.
Speaker Change: and we brought forth another excavator from 2025. So what we've seen kind of in Q3 so far is we have met or exceeded our production targets for most, for both the months so far. And so it already has been addressed. Now it's just a question of how quickly we can catch up. And so, you know, I'm not going to go into too much detail about how quickly we can catch up, but I'll just say
Speaker Change: I'll call up Mike to talk about the cost.
Mike Cinnamond: Yeah, I think the key thing on the cost side, Don, to remember, there's two key components. One was we moved fewer tons because we had less equipment capacity. So we're going to see a catch up, you're right there, as we as we, as capacity comes back on, the higher gross cost, but we also enjoyed close to 25% lower fuel costs at PCOA, and we see that continuing right now. So, there, you know, there are some offsetting factors, starting to pick up some more of those tons. So, it'll be a catch up, but we definitely think the fuel fuel reduction is a locked in benefit versus what we originally budgeted. Okay, great.
Mike Cinnamond: Yeah, I think the key thing on the cost side, Don, to remember, there's two key components. One was we moved less tons because we had less equipment capacity. So we're going to see a catch-up, you're right there, as we move.
Don: as capacity comes back on, the higher gross cost. But we also enjoy close to 25% lower fuel costs at Pecola and we see that continuing right now. So there are some offsetting factors too.
William Lytle: Unknown Executive, William Lytle
unknown: Okay, great. Well, that's all for me. Thanks for taking my questions. Good luck with Q3.
Don: Okay, great. Well, that's all for me. Thanks for taking my questions. Good luck with Q3. Thank you
Speaker Change: Thanks for watching!
Operator: Once again, if you have a question, please press star then 1. The next question comes from Francesco Constanzo with Scotiabank. Please go ahead.
Speaker Change: Once again if you have a question please press star then 1. The next question comes from Francesco Constanzo with Scotiabank. Please go ahead.
Francesco Constanzo: Hi Clive and team. Thanks for taking my question. Just asking here on behalf of Ovais Habib. I think most of the pertinent questions have already been asked and answered, but if I could just ask one question for Mike. Given the challenges in Mali leading to the lower guide, can you speak to the integrity of the dividend, given the review of the budget, and maybe speak to the liquidity as well, how you plan to fund the project and, you know, the cadence of the borrowing on the liquidity and stuff like that? Thanks.
Francesco Constanzo: Hi Clive and team, thanks for taking my question. I'm just asking here on behalf of Obese Habib. I think most of the pertinent questions have already been asked and answered, but if I could just ask one for Mike.
Speaker Change: Given the challenges in Mali leading to the lower guide, can you speak to the integrity of the dividend given the review of the budget and
Speaker Change: Maybe speak to the liquidity as well, how you plan to fund the project and, you know, the cadence of the boring on the liquidity and stuff like that. Thanks.
Mike Cinnamond: Well, I can certainly speak to liquidity. You know, like I said, we've got 700 million on the line. They're available. We have close to half a billion in cash to sit in there at the balance sheet dates. So we feel comfortable, donated $345,000 in leaderboards, which was commissioned by B2 Gold, the level of liquidity that we have. Clive, I don't know if you want to add anything to that.
Speaker Change: Well, I can certainly speak to liquidity. You know, like I said, we've got $700 million on the line there available. We've got close to half a billion in cash sitting there at the balance sheet date. So we feel comfortable.
Speaker Change: doing what we think we need to do on the capital project side. And, and, you know, it's certainly our goal to maintain
Speaker Change: At the end, we will look at the components of
Speaker Change: our capital return from time to time as we look also at our capital outlay. So I think it's it's something that we'll monitor as we have like, some of the...get to a near, close of the end of some of our larger capital projects. But we certainly feel comfortable with that.
Speaker Change: sort of level liquidity that we have.
Speaker Change: Clive, I don't know if you want to add anything to that.
Speaker Change: Thank you very much for watching this video.
unknown: Okay, I think that's helpful. That's, that's all for me.
Clive Johnson: Okay, I think that's helpful. That's all for me.
Speaker Change: Thank you.
Operator: 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: Clive Johnson, Unknown Executive, William Lytle
Speaker Change: 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: Thanks, Operator. Well, thank you, everyone, for joining us on the call. We always like to end these calls, I guess, with a bit of a discussion of what's coming up in terms of a reminder of the catalysts coming up, some of them we expect in the near term. So we're looking forward to concluding our discussions with the Government of Mali and reaching an agreement on the way forward, which will include, of course, receiving an exploitation license to start trucking ore down the Fugola Mill from the regional targets.
Clive Johnson: Okay, thanks operator. Well, thank you everyone for joining us on the call. We always like to end these calls, I guess, with a bit of a
Speaker Change: Discussion of what's coming up in terms of a reminder of the catalyst coming up.
Speaker Change: Some of them we expect in the near term. So we're looking forward to including our discussions with the government of Mali and reaching an agreement on the way forward, which will include of course, receiving an exploitation license to start trucking ore down.
Clive Johnson: In addition, that will trigger significant exploration, starting up again in the regional to fully define the value of the Fugola complex. We will have an updated, detailed, updated budget for you on the goose construction capital costs, and the ?? targets, etc. by sometime in November. We look forward to putting up some more results.
Speaker Change: the Focola Mill from the regional targets. In addition, that will trigger significant expiration starting up again in the regional to fully define the value of Focola Complex. We will have an updated, detailed, updated budget for you on the Goose Construction Capital Cost.
Speaker Change: hurt, Unknown Speaker 10
Speaker Change: in September, and we continue to work our way up.
Speaker Change: Cremolata, as we mentioned on the
Speaker Change: Feasibility Study. Goose Expiration.
Speaker Change: We've been doing some of the exhibition work and do some of it in film.
William Lytle: Unknown Executive, William Lytle
William Lytle: Targeted Citroen by some time in November to put some hours off, and it means I'll do a little bit for that, anyway.
Clive Johnson: So, in the meantime, we've explained, I hope, how we have recovered in Focola from a rare event, the acceptable tipping over of the conveyor, and how we're recovering from that, as Bill pointed out. And those are the houses that are lost; those are houses that move, those 50,000 houses for next year. As Sybil told you, construction is going extremely well at Goose. Logistics and construction expertise are really kicking in and showing how well we do these types of projects.
Speaker Change: Explained, I hope, how we have recovered it.
Speaker Change: Ficola from a rare event.
Speaker Change: Unacceptable Tipping Over the Conveyor
Speaker Change: and those are the houses that are lost, those are the houses that moved, those 50,000 houses to next year.
Speaker Change: Bill told you construction is going extremely well at Goose. Logistics and construction expertise are really key.
William Lytle: Unknown Executive, William Lytle
Clive Johnson: So with that, a transitional year, a challenging year for B2Gold, as we've indicated before. It's got a few more challenges here at the end of the day. Solving problems and dealing with challenges head-on is what we do and have done for a long time, so I'm very confident that we're going to continue to perform well as we go through this year and actually excited about the future potential growth, as I pointed out earlier, by developing existing assets, including food, coal, trucking, goose, and ultimately, potentially, gravel latte as well.
Speaker Change: Solving problems and dealing with challenges head-on is what we do and have done for a long time, so I'm very confident that we're going to continue to perform well as we go through this year and actually move forward.
Speaker Change: Excited about the future potential growth, as I pointed out earlier, by developing existing assets, including Fucola Trucking, Goose, and ultimately, potentially, Gravel Lotte as well. There's lots of exploration to happen in many, many areas throughout the company's portfolio.
Clive Johnson: Lots of exploration to happen in many, many areas throughout the country's portfolio. So with that, I would thank you all for your time. If you have any follow-up questions, get in touch with us through Michael MacDonald, and thank you for your time.
Speaker Change: So with that, I would thank you all for your time. If you have any follow-up questions, get in touch with us through Michael McDonald. And thanks for your time. I'm happy to thank you.
Operator: This brings to an end today's conference call. You may disconnect your line. Thank you for participating and have a pleasant day.
Speaker Change: This brings to an end today's conference call. You may disconnect your line.
unknown: Jeff Norton, Tony Truong, Fred Jordan, Cooper Taylor, Todd Witt, Anita Soni, Jerome Pardo, Marc Treboxing, Steve Russell, Steve Dinaboy, BNL, , , , , , , , , , , , , , , , B2Gold , B2Gold , B2Gold , B2Gold , B2Gold , B2Gold , B2Gold , , , , , , , , , , , , ,
Speaker Change: Music Music Music Music Music Music Music Music Music Music
Speaker Change #100: Michael Cinnamond, Clive Johnson, Michael Cinnamond, Clive Johnson,
Speaker Change #100: [music]
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