Q2 2024 B2Gold Corp Earnings Call
Speaker Change: . . . . . . .
Speaker Change: medallion Finance Director Home of the Royal Canadian Marathon Exhibited by Queen Anne
Speaker Change: Michael Cinnamond, Clive Johnson,
Speaker Change: [music]
Speaker Change: TAJM dominion Now with the
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 an operator by pressing star then zero. I would now like to turn the conference over to Clive Johnson, President and CEO of B2Gold. Please go ahead. Thank you, Operator. Welcome, everyone, to the Corp. Scope.
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 an operator by pressing star then zero. I would now like to turn the conference over to Clive Johnson, President and CEO of B2 Gold. Please go ahead.
Clive Johnson: Thank you, Operator. Welcome, everyone, to the Corp. Scope Discussion. We had some very positive results from the quarter, and Mike Cinnamond, our CFO, is going to walk us through that. We are also going to talk about some of the other issues that we covered in the Ninja Lease. 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.
Clive Johnson: Thank you, Operator. Welcome, everyone, to the Carp Sculptors' Testimony.
Speaker Change: Results, Q2 Results, or past results for B2 Gold.
Speaker Change: We had some very positive results from the quarter. Advanced results from Mike Cinnamond.
Speaker Change: Our CFO is going to walk us through that. We're also going to talk about some of the other issues that we cover in the Ninja Lease. 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.
Clive Johnson: Just a couple of points to start us off. We have had an Excel track record, as everyone 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 as I said, we'll talk in more detail about that. That was unfortunate.
Bill: Just a couple of points maybe to start us off.
Bill: We have had an excellent track record, as everyone is aware of, of operational performance for many years.
Bill: Now, we do have.
Bill: My next commuter tip over on the side, which is very unusual, that happened, and as I said, Bill will talk in more detail about that. That was unfortunate. That's caused us to re-guide production for...
Clive Johnson: That's caused us to re-direct production for... Thank you for joining us and talking with us and answering your questions. We are going to be in the final stages, we believe, of discussions with the government of Mali to understand. Before I...
Bill: for this year, down about 50,000 ounces, but it's not gone away. It's simply moved into next year. So that's why we got it. And you will hear more about that. Bill will tell you.
Bill: What happened and next vena and how we've taken steps to ensure
Bill: that that's very unusual and our parents cannot have it again.
Bill: We'll tackle that.
Bill: to get back to our excellent operational performance. We'll talk about how...
Bill: We're already starting to see tonnages come back with the replacement excavators.
Bill: etc. Jim, so just a quick update on Mallie and we'll get a chance to talk with us when you're answering your questions, I'm sure.
Jim: We are going to be in the final stages, we believe, of 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 discussion. I hope very shortly to be able to come out and announce what that will do. It will trigger the, We hope to wrap up the receipt of a permanent 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 could add 80 to 100,000 ounces a year. That would be reaching an agreement with the government that will trigger that permitting process.
Jim: a full love.
Jim: Implementation of the 2023 Mining Code, so we are, as I said, final stages of that discussion. I hope very shortly to be able to come out and announce. What that will do is that will trigger the...
Jim: We hope the rapid receipt of a permit, an exploitation permit, for the...
Jim: Richard O.
Jim: on this issue.
Clive Johnson: The government assures us that they want to see this happen, they very much want to see the coal out and expanded, so we're looking to get, hopefully, a rapid response to getting an exploitation permit. No glass, no trucking, we're doing it slowly. We sat down with two of those trucks in a hall at 20 kilometers or less down to the foot colonel.
Jim: Expanded, so we're looking to get hopefully a rapid response to beginning an exploitation permit. No glass team attracting middle-aged snow team. They sent image units, trucks, and hall of 20 kilometers. They're less down to the footballer now. The other thing too, too, too, too.
Clive Johnson: The other thing to... make sure people are still aware of us. There's tremendous exploration upside in the Focola complex. With the agreement with the government, we will immediately go back to an aggressive drilling program of around $7 billion of exploration drilling up and down the complex. There's RICS training right now, so get an idea of the Focola license.
Jim: make sure people are still aware of us. There's tremendous exploration up site.
Jim: into the Zucola Complex.
Jim: with the agreement with the government we will immediately go back to an aggressive drilling program around seven million dollars with express drilling up and down the complex.
Speaker Change: There's a brick string right now, it's a good idea on this on the Coral Essence. So, tremendous exhibition upside down. You know, we did take a permanent charge in Michael Jackson's talk about that, but it's very important to note that.
Clive Johnson: So tremendous exploration upside. We did take an impairment charge, and Michael talked about that. But it's very important to note that the ultimate final value of the Focola Complex is very open to further exploration successes. And we're all talking about brand new, there probably will be some new discoveries, but also expansions of those forms of mineralization that we've hit so far. So the full story, the ultimate life of the mine, will hopefully continue to add to the reserves, and the ultimate life of the mine and the ultimate value, therefore, of the Focola Complex, we see to grow in value from 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.
Speaker Change: The ultimate final value of the Dracula Complex is very open, with further exploration success in the world. We're not talking about brand new.
Speaker Change: is probably going to be some new subscribers, but also expansions that no one was supposed to be in our station that we could so far. So the full story, the length of the ultimate life of mine, will continue hopefully to have the research in the ultimate life of mine and deals with value, therefore, of the full code of complex.
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. We've had a great track record in this company.
Clive Johnson: We've had a great track record in this company. 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. This year, we've always said this would be a transitional year. We knew production would be lower.
Mike Cinnamond: for a long time, including from before that as being good operators, good construction, exploration, and then managing things like product risk, etc. So we've got 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 will 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, future construction. But this is very much still a transitional year. We remain in a very strong financial position, but 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. It's a good slide coming on. It talks about how well construction is going. Coming on next, next year.
Mike Cinnamond: This is still a transitional year. We remain in a very strong financial position. 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 is mine coming on, and we'll talk about how the work is actually going, coming on mid.
Clive Johnson: We're producing on an annualized basis about 320,000 ounces a year. And then we look at the growth profile a little bit more. We've got a positive PEA. We're doing a feasibility study on Penelope, which will be done by the middle of next year. We're getting quite encouraged by that project, and if that turns into the next lion, it fits in nicely after Goose, potentially, and the flexibility is as positive as we're hoping, as the PEA was, then that could ultimately add another 240,000 ounces a year.
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 had a positive PEA. We're doing a Feasibility Study in Penelope, which will be done by the middle of next year.
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 their flexibility is as positive as we're hoping.
Speaker Change: That's the P.E.A. wasn't.
Speaker Change: And that ultimately could add another $200 million.
Clive Johnson: So, there's about 650,000 ounces of growth in this company from existing assets. We don't have to go and buy another lion; we don't have to go and make big discoveries. That's a great growth profile, and we'll continue, as we get through the challenges this year, to continue very much to focus on the opportunities. Please see the complete disclaimer at https://sites.google.com or at https://sites.google.com.au. Now, I'll turn it over to Mike to give some financial results. And then, Dills, can I give us an update, as I mentioned? Thank you, Clive.
Speaker Change: or he found the answer to the year. So there's about 600,000 of the 50,000 answer to look.
Speaker Change: and C. O. Cummins.
Speaker Change: David Addle threw him on the right to using financial, visual financial sauce, Adam.
Speaker Change: and then Bill's going to give us an update on this I mentioned.
Michael Cinnamond: Thank you, Clive. 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. Doubtfully, it benefited from higher average gold prices in the period. Operating cash flow, the bottom line, was $62 million after changes in working cap or $192 million before changes in working cap. Again, very strong results for the operation.
Bill: Thank you, Clive. First thing I saw, I'd say financially, it was a strong quarter.
Speaker Change: On the earnings side, after adjusting for one-time items, the company generated $0.06 per share of adjusted earnings, and definitely benefited from stronger average call prices.
Bill: Operating cash flow, bottom line was $62 million after changes in working cap or $192 million before changes in working cap. Again, very strong results for the operations.
Michael Cinnamond: As Clive mentioned, or alluded to, we did lower production guidance for CoLA due to equipment availability issues in the pit. And so with that, we guided production for the second half and for full year 24. We also looked at 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.
Bill: 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 knowledge sustained costs for each of our operations
Speaker Change: And overall, at a consolidated level, we ended up with no change to our consolidated cash costs. Operating guidance, we maintain that range between $835 and $895 per ounce, and that has benefitted
Michael Cinnamond: 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. 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 re-guide upwards for the consolidated all-in sustaining cost range up to between $1420 and $1550. 1480
Speaker Change: For one thing for sure through the year with lower fuel prices than we budgeted.
Speaker Change: And then for consolidated, all-in sustained costs.
Speaker Change: The reduction in overall production plus higher royalties through the year as we as we enjoy a higher gold price resulted in a re-guide upwards for the consolidated dollar and sustaining cost range up to between 1420 and 1480 dollars per ounce.
Michael Cinnamond: Solid. I did mention that we took a non-cash impairment charge on the Focola operations. That's based on our best estimate of how we think the 2023 mining code will ultimately be applied to the Focola complex. We've got more clarity on that through the intervening period, but the issue of some implementation approved by the state and some ongoing discussions with the state. Then, as expected, spending on 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.
Speaker Change: I did mention that we did take a non-cash impairment charge on the Focola 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 with the issue of some implementation approved by the state and some ongoing discussions with the state.
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.
Michael Cinnamond: And balance sheet-wise, we continue to remain in a very strong financial position with cash-to-cash equivalence of $467 million at the end of the second quarter. There is a very small amount of debt related mainly to equipment. 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 case project.
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.
Speaker Change: and 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 this project.
Michael Cinnamond: And so we feel we've got lots of good financial flexibility to do that and maintain our other growth initiatives around the portfolio and continue to fund healthy exploration programs to extend our mine lines 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 that are on the portfolio and continue to fund healthy exploration programs to extend our mine lines 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, Mike.
Bill: All right. Thanks, Mike. Yeah, so on the operational side, I'll do the easy stuff first.
Bill: Yeah, so on the operational side, I'll do the easy stuff first.
Bill: So looking at Masbateh, Masbateh continues to perform at a world-class level. I think everyone is aware that it's still more than 2,000 days on LTI and has very strong cash flows. Ochocoto, too, continues to perform very well. Probably the excitement there is that we are preparing a PEA study that will come out in 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: So looking at Masbati, Masbati continues to perform at a world-class level. I think everyone's aware. Still more than 2,000 days on LTI and very strong cash flows.
Bill: Ochoa Coto, Ochoa Coto continues to also perform very well, probably the excitement there is that we are preparing a PEA study that will be
Bill: come out in kind of the middle of next year.
Bill: which has the potential to expand.
Bill: The ounce profile through the existing life of mine through the early 2030s and add ounces to the existing stockpiles.
Bill: FECOLA, let's see here, so FECOLA is down, as you heard Mike say, and Mike and Clive talk about. One of the things we do need to point out is FECOLA 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, retraining, to all the employees on the use of equipment. We see that as a one-off, an unlikely event.
Speaker Change: FECOLA, let's see here, so FECOLA 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, 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. But, 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 the coal by about a quarter. Thank you. 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. They've just been pushed back.
Clive Johnson: We're going to see, currently, we've mined out the high-grade ounces in phase six.
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: Let's see, Ed Goose.
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% done with the concrete. All the skills are going 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.
Speaker Change: A 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 skills are 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 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. So, as you know, the winter ice road ended in May.
Speaker Change: The cost estimate. I know that we have 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.
Bill: 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 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.
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.
Speaker Change: are all strapped.
Speaker Change: and...
Speaker Change: So 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
Speaker Change: 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.
Bill: So we certainly see we've got our heads around what is there. We're working on what that means financially, and there are a lot of moving parts, but we certainly see 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: everything initially.
Speaker Change: to the B2 standard. So we certainly see, we've got our head around what is there. We're working on what that means financially. And there's 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 are 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: Just a quick update, it's in the news just about where we are right now in terms of shipping and stuff for getting everything on-site for next year. Yeah, that's right.
Graham Malote: [inaudible]
Clive Johnson: I don't think 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 for next year and so
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, with 11 ships, we'll 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 people want to get a visual view of all this on our website.
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.
Clive Johnson: Currently with 11 ships 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.
Speaker Change: Everything remains on track. The logistics team is performing beautifully and we don't see any issues with the sealant. We'll start receiving cargo in about 10 days.
Clive Johnson: And if people want to get a visual view of all this, on our website, there are some links to go to look at some great drone footage showing the progress of construction. It's been an essentially debacle on the pace at which... Our construction team can build them, so that's going extremely well. Thanks, Bill. I think with that, I'm sure you'll have lots of questions for us, so I hope our operator will open up to questions.
Speaker Change: Thank you. Thank you.
Speaker Change: And if you don't 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 an essential demarcation on the pace at which our construction team can move forward.
Speaker Change: can vote on it, so that's going extraordinarily well.
Speaker Change: Thanks Bill, I think with that I'm sure you have lots of questions for us, so I'll open it up to questions.
Operator: We will now begin to analyze questions and answers. All right, 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, then one on your telephone keypad. Your shared tone will acknowledge your request. If you're using a speakerphone, please pick up your handset before pressing any key. So which are your questions to express third 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 one on your talk on Z-Pad.
Speaker Change: Your hair 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: Episode 2
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 have to say, we're very confident.
Wayne Lamb: 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.
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.
Speaker Change: and then.
Speaker Change: Just with the implementation decree having been finalized now.
Speaker Change: Are you guys pretty confident that the deal is imminent and are you able to provide a more definitive timeline now for completion?
Clive Johnson: Well, I'd say we're very confident in the near term of reaching an agreement that's satisfactory to 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 to the level that we need.
Speaker Change: Well, I would say we're very confident in the near term here of reaching an agreement that satisfacts all stakeholders. We, of course, as you probably understand, we can't go into details about negotiations et cetera that wouldn't be appropriate or useful.
Speaker Change: 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 to the level that we're required to look at.
Michael Cinnamond: Yeah, I think we'll really keep it to the level that we're required to look at. What are the impairment indicators and then use the best estimates at each reporting period? So he did put out some new Classification and Implementation Decrees, and we had ongoing discussions, so I think we're close. I think we've reflected those items that we believe will impact Caring Dollar and what we booked this time around, but we don't want to discuss them in detail, I think, until we finalize our discussions. I think you, I think it's probably, may be quite clear.
Mike Cinnamond: Pyramid Indicators and then use their best estimates at each reporting period. So, he did put out some...
Speaker Change: and your classification of their classification of degrees, and we had ongoing discussion. So, thank you for closing, and we've reflected.
Mike Cinnamond: Thanks a lot.
Michael Cinnamond: I think it's probably quite clear that the fact that we actually looked at it and took the imperative, Judge, which suggests to you, I'll consider to read, we can click out.
Speaker Change: It may be quite clear that the fact that we actually looked at it and took a permanent charge would suggest to you how close we are to reaching a final agreement.
Wayne Lam: OK, got it. Fair enough. And then, maybe, just wondering.
Speaker Change: Okay, got it. Fair enough. And then maybe just wondering,
Wayne Lam: On the updated ASIC guidance at Dracola, does that include stripping planned for the regional allowances next year, or is that going to fall under non-sustaining cap cuts? 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 needs to be done?
Speaker Change: On the update, it guidance a Coca-Cola, does that include stripping planned for the regional launches next year, or is that going to fall under the launch of St.y. Cap.
Speaker Change: Do you still anticipate costs coming down next year as per the 2024 mine plan, or should we be thinking about something in a similar range to this year given the amount of capitalized stripping and underground development that needs to be done?
Michael Cinnamond: Well, I can certainly comment, for starters, on transcripts provided by Transcription Outsourcing, LLC. Production is not included in these numbers, nor are any costs related to it, for this year.
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 costs related to them for this year so that the reguide number doesn't assume a stripping campaign.
Michael Cinnamond: Well, that's where you guys come from. And then, you know, as we look forward, I don't want to talk about the mine plan for COLA. We haven't put out any guidance for next year yet on the cost.
Speaker Change: And then, you know, as we look forward, I don't want to talk about the mind-blind for COLA.
Speaker Change: We haven't put out any guidance for next year yet on the cost side.
Bill: Yeah, we haven't put out any guidance for cost, but I certainly think that we've been very open about 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 road's in, and the infrastructure is in. All we need to do is we'll have a quarter of pre-stripping, and then we'll go into production.
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.
Speaker Change: So we are ramping up, as we've been very open, all of the work necessary to develop that regional product is already done, the roads in, the infrastructures in, all we need to do is a lot of a quarter of pre-stirping will go into production.
Bill: 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 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 comments on sorting through some of the historic Sabina stuff?
Speaker Change: and then maybe a back griver, can you just talk about what the remaining large capex items are outstanding, that's been driving the delay in the review.
Speaker Change: Is it still the case that most of the large capital items have already been spent and most of it increased?
Speaker Change: with the update is going to be driven by labor and logistics, or there's still equipment items that need to be replaced in relation to those comments on sorting through some of the historic Sabina stuff.
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: [inaudible]
Speaker Change: 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. 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. Alright, 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. All 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.
Wayne Lam: Okay, I got it. Looking forward to the update. Thanks for answering my questions.
Speaker Change: Okay, looking 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: Thank you. Thank you. Thank you.
Speaker Change: The next question comes from Don DeMarco with National Bank Financial. Please go ahead.
Don Demarco: Thank you, operator, and good morning, Clive and team. 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?
Don Demarco: Thank you operator and good morning Clive and team. First question, Bill can you put a little more color on the guidance increase or rather the 2025 outlook?
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: I think 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 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: Thanks, Bill. 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 on a development basis are concerned, those projects are being Okay, perfect. And there was no...
Speaker Change: That's right, yeah, we're not changing anything as far as those those on a development basis those projects remain unscheduled.
Peter: Okay, perfect. And there was no regional truck door in 2024 guidance, is that correct? That's right. Oh, that's correct. Thank you.
Speaker Change: Okay, perfect. And there was no regional truck door in 2024 guidance. Is that correct?
Speaker Change: That's correct. That's correct.
Don Demarco: 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: It's good to hear that it's being addressed, but when do you expect it to fully be addressed?
Don Demarco: 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 after Focola. Is that fair to say? All right.
Speaker Change: Transcription by https://otter.ai
Bill: All right, 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. So 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.
Speaker Change: for most for both the month so far.
Speaker Change: And so it already has been addressed.
Speaker Change: Now it's just a question of how quickly we can catch up and so, you know, I'll let Mike talk about the cause.
Michael Cinnamond: Yeah, I think the key thing on the cost side, Don, to remember, there are 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 capacity comes back on, the higher gross cost. But we also enjoyed close to 25% lower fuel costs. That's a call, and we see that continuing right now.
Mike Cinnamond: 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...
Mike Cinnamond: as capacity comes back on, the higher the gross cost, but we also enjoy close to 25% lower fuel costs. At Tacoma, we see that continuing right now. So there are some offsetting factors too.
Michael Cinnamond: So, 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 need fuel. Fuel reduction is a locked-in benefit versus what we originally planned. Okay, great.
Mike Cinnamond: started to pick up some more of those tons so so it'll be a catch-up but we definitely the fuel fuel reduction that is a locked-in benefit versus what we originally budgeted.
Don Demarco: Okay, great. Well, that's all for me. Thanks for taking my questions. Good luck with Q3.
Speaker Change: Okay, all right. Well, that's all for me. Thanks for taking my questions. Good luck with Q3. Thank you.
Operator: Once again, if you have a question, please press star then 1. The next question comes from Francesco Costanzo with Scotiabank. Please go ahead.
Mike Cinnamond: Thanks.
Speaker Change: Once again, if you have a question, please press star then one. The next question comes from Francisco Constanzo with Scotiabank. Please go ahead.
Francesco Costanzo: 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 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 the cadence of the borrowing and the liquidity and stuff like that? Thanks.
Francisco 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.
Mike Cinnamond: Given the challenges in Mali leading to the lower tide, can you speak to the integrity of the dividend given the review of the budget and
Speaker Change: Transcripts provided by Transcription Outsourcing, LLC.
Michael Cinnamond: Well, I can certainly speak to liquidity. You know, like I said, we've got 700 million on the line there available with close to half a billion in cash on the Net Balance Sheet page. So, you feel comfortable doing what we think we need to do on the capital project side. And, you know, it's certainly our goal to maintain a dividend. We will look at the components of our capital return from time to time as we also look at our capital outlay.
Mike Cinnamond: Well I can certainly speak to liquidity you know like I said we've got we've got 700 million on the line they're available we've got close to half a billion in cash so they're there at the balance sheet date so we feel comfortable
Mike Cinnamond: 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 this event, we will look at the components of
Speaker Change: Unknown Speaker
Michael Cinnamond: So I think it's something that we'll monitor as we get to, close to, the end of some of our larger capital projects. But we certainly feel comfortable with that. The level of liquidity that we have. Clive, I don't know if you want to add anything to that.
Speaker Change: Clive, I don't know if you want to add anything to that.
Speaker Change: Thank you for watching!
Francesco Costanzo: Okay, I think that's helpful. That's all for me.
Speaker Change: 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.
Speaker Change: Good night.
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: Thank you everyone for joining us on the call. We always like to end these calls 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 tracking for the Fagola mill from the regional targets. In addition, that will trigger significant exploration starting up again in the region to fully define the value of the Fagola complex.
Clive Johnson: Okay, thanks out there. Well, thank you both 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 the catalyst coming up
Speaker Change: We expect it in the near term, so we're looking forward to our discussions with the Governor of Mali and reaching an agreement on the way forward, which will include, of course, receiving an exploitation license to start trucking ore down.
Speaker Change: with the Golden Mel for the regional targets. So in addition, that will trigger skin to be the expression starting up again. In the regional, to fully define the value of some of the Fogola.
Speaker Change: We will have an updated, detailed, updated budget for you on the Goose construction capital costs. Thank you.
Clive Johnson: We will have an updated detailed budget for you on the goose construction capital costs. It is my pleasure to welcome my guests tonight to the webinar on the Expiration of Agricultural Coal. Thank you very much for joining us, as well as my co-hosts today, Davemos. Today, we have Dave and Chris with B2Gold Corp. Rescue by out Air Recliner with Boeingüsserérié wants to talk to us about the most important element in the alien project to repair the cab. Here, Dave introduces us to one of the most important customers, and Chris introduces his wife to my wife. Hello again, Chris.
Speaker Change: Thank you.
Speaker Change: in September, and we continue to work our way up.
Grimlock: Grimlock, as you mentioned on the
Grimlock: He's an early student. Who's that? It's Brayshon.
Speaker Change: We have been doing some of the work on some of the films.
Speaker Change: William Lytle, Clive Johnson, Unknown Executive
Clive Johnson: I just wanted to remind you a little bit about Mask of Coal, a company that buys Seti oil-propelling, targets, etc. by sometime in November, so I look forward to putting out some more results. So in the meantime, we'll move on, explain to them how we have recovered in Suffolk from a rare event, the unacceptable tipping over of a conveyor, and how we're recovering from that, as Bill pointed out, and the run-offs and losses to move those 50,000 ounces to next year.
Speaker Change: Targets etc. by sometime in November. I look forward to putting out some more results. In the meantime...
Speaker Change: explained how we have recovered in Suffola from a rare event. The unacceptable tipping over the conveyor and how we're recovering from that, as Bill pointed out. And those are all the ounces that I lost and those are all the ounces that moved, those 50 thousand ounces, into next year.
Clive Johnson: So Neil told you construction is going extremely well, that the Goose statistics on construction expertise are really key to showing how well we do. Transitional year, a challenging year for B2Gold as we've seen one 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 Fukuda Trucking Booths and, ultimately, potentially, Cremolata as well.
Speaker Change: Transcripts provided by Transcription Outsourcing, LLC.
Speaker Change: We do these types of projects. So we're done. A transitional year, a challenging year for each of us. As we've signaled before, it's got a few more challenges here at the end of the day.
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 the very next year.
Speaker Change: Excited about the future potential growth, as I pointed out earlier, by developing existing assets, including Coca-Cola trucking booths, and ultimately, potentially, Grand Ole Opry as well. There's lots of exploration to happen in many, many areas throughout the company's portfolio.
Clive Johnson: There's lots of exploration to happen in many, many areas throughout the company'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 McDonald. And thanks for your time, and I'll probably see you again.
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. Thanks for your time.
Operator: This brings to an end today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. [inaudible] The Bulletproof Executive, 2013
Speaker Change: This brings to an end today's conference call, you may disconnect your line.
Speaker Change: Thank you for watching, and I'll see you in the next video!
Speaker Change: [music]
Speaker Change: the the new bull .
unknown: © BF-WATCH TV 2021 © BF-WATCH TV 2021 © BF-WATCH TV 2021 © BF-WATCH TV 2021
Speaker Change: A film by William Lytle Directed by Clive Johnson Written by William Lytle Produced by Clive Johnson Produced by Clive Johnson Produced by William Lytle Produced by Clive Johnson
unknown: [inaudible] has a lot of work to do. She's got a lot of work to do. [inaudible] sure if I'm right or wrong. I'm not sure if I'm right or wrong.