Q4 2024 B2Gold Corp Earnings Call
Speaker Change: Thank you for standing by this is the conference operator.
Welcome to the two whole corporation's fourth quarter and full year 2024 financial results Conference call.
Speaker Change: As a reminder, all participants are in listen only mode.
Speaker Change: The conference is being recorded.
Speaker Change: After the presentation, there will be an opportunity for analysts to ask questions.
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Speaker Change: Oh, an operator by pressing Star then zero.
Speaker Change: I would now like to turn the conference over to Clive Johnson, President and CEO will be to go. Please go ahead.
Clive Johnson: Hello, everyone.
Clive Johnson: Thanks for joining us as you work the operators want to talk about.
Clive Johnson: Fourth quarter 2024 results as we've just released on the full year for 2024.
Mike: There are a few highlights and then pass it over to Mike.
Bill Cimino: Bill Cimino.
Speaker Change: Some detail.
Clive Johnson: You did.
Clive Johnson: Our new guidance for the year.
Clive Johnson: Coming in.
Clive Johnson: Our brands are all sustaining costs.
Clive Johnson: Hello revenue production.
Clive Johnson: Yeah.
Clive Johnson: Basically is where trends actually turned the page on 2020.
Clive Johnson: Much more positive 2025 and increase the production of <unk>.
Clive Johnson: Looking to start trucking.
Clive Johnson: So.
Clive Johnson: So call it on the ground as well as ability for more detail.
Clive Johnson: We're seeing a real highlight here will reduce for Germany is going very well.
Clive Johnson: First of all four.
Clive Johnson: On June.
Clive Johnson: 2025.
Clive Johnson: It was kind of at the time of that.
Clive Johnson: On Mali is.
Many of you are aware of it.
Clive Johnson: In September of last year with the government.
Clive Johnson: To proceed going forward, both central and also starting to truck or regional projects.
Clive Johnson: That was an important agreement for us and the government.
Clive Johnson: On the same page, where both from both parties.
Clive Johnson: So the revenue on the profit structure.
Clive Johnson: Somebody in the regional area.
Clive Johnson: Were now implementing the agreements with the government.
Clive Johnson: That's going very well, we're looking at achieving in the near term purpose to proceed.
Clive Johnson: Based on media reports last.
Clive Johnson: The last couple of days.
Clive Johnson: According to support Spirit Zimbabwean government comes with a great deal all the way forward.
Clive Johnson: And that's very important for all of US I guess because.
Clive Johnson: I think we can all see a path forward now in relation to fleet with Embolic government.
Clive Johnson: Kevin will be positive going forward not just for us but for the other parties here so no.
Significant producers if it's true of our parents have reached an agreement with the government that we can get on it.
Clive Johnson: There'll be two it's important to note difficult problems difficult and we're not about.
Clive Johnson: The government per se.
Clive Johnson: I'll talk about the reasons why production was down in 2024, and we would continue to operate through all the discussions with the government of Mali.
Clive Johnson: And so the great Jim has actually been positive in terms of our gold production requirements from the government.
Clive Johnson: So that relationship.
Clive Johnson: It would appear that.
Clive Johnson: Negotiations.
Clive Johnson: Can you give us August <unk>.
Clive Johnson: No.
Clive Johnson: She's wondering architectural Dallas.
Clive Johnson: Looking forward in terms of growth.
Clive Johnson: Institutionally diesel production.
Clive Johnson: So cooler, but also there is a lot of the other milestones coming up this year.
Clive Johnson: The privilege.
Clive Johnson: For for call it allow us to get up 208000 ounces on an annualized basis from the body.
Clive Johnson: Sure.
Clive Johnson: And of course, that's going to represent significant growth for us as we bring it into production in June of this year and on an annualized basis.
Clive Johnson: So between those two.
Clive Johnson: Okay.
Clive Johnson: On page.
And subject to a positive feasibility study of the construction decision potentially go to trial.
Clive Johnson: Tens of thousands of annual <unk>.
Clive Johnson: <unk> from the group of larger project that was you said that was subject to a pleasant usability study, which will come up in the new year production decision to go forward.
Clive Johnson: The project quite attractive.
Clive Johnson: A while ago.
Clive Johnson: It has good returns.
Clive Johnson: Sure.
Clive Johnson: Net present value.
Clive Johnson: $2000 Gold show a few other than some of our low price already.
Clive Johnson: 2000 <unk>.
Clive Johnson: In terms of gold price and maybe locking the backlog pressure construction. So if you add all that up.
Clive Johnson: Especially in an expectation of about 80000 houses.
Clive Johnson: From.
Clive Johnson: First of all our regional.
Clive Johnson: The level of production overall or.
Clive Johnson: Transocean options ambition to abuse, and then one or 240000 ounces thereabouts annually potential from where we're launching <unk>.
Clive Johnson: And as I pointed out.
Clive Johnson: <unk> got a new discovery.
Clive Johnson: Coal area.
Clive Johnson: The other potential deals slip so good discovery at depth potential 60, Black ops analysis. So if you add all that up.
Clive Johnson: Over 650000 ounces of gold production.
Clive Johnson: Importantly.
Clive Johnson: From existing assets. These are the assets we have to go by.
Clive Johnson: Dave.
Clive Johnson: Sure if I do a lot more but that's where we sit today, so very impressive growth profile and theres not a lot of strong.
Not a lot of speculation Derek we're scrambling to be the most speculative, but as I said, we're seeing a trough.
Clive Johnson: So that's our way forward and we get it we had a difficult 2024 as everyone knows but that's a one off sort of the credit box.
Clive Johnson: To get back to what this company does well wishes me guidance, but also grow the company's production profile, which we've had great success over.
Clive Johnson: Over many years.
Speaker Change: <unk> created two.
Clive Johnson: 2000, and so I think with that I'll hand that over to Mike.
Mike: The financial that does kind of give us a quick summary of what happened at <unk>.
Courtenay: Courtenay what's happening.
Courtenay: Going into this year and also just kind of talk of course update us on that program to do feasibility study.
Courtenay: Alright.
Courtenay: Our direction.
Courtenay: Feasibility study a great market.
Courtenay: Thank you.
Courtenay: Just on a few highlights from the quarter basis.
Courtenay: Basic earnings per share our slightly negative for this Q, primarily due to lower than budgeted production for Colette FX impacts from the weakening of west.
Courtenay: It didn't seem that maybe the dollar and also recording of the increasingly from Cola priority priority dividend, which is now 20% after the implemented that as part of the Mou was previously townhouse 'twenty I guess quarter does attacks.
Courtenay: Adjusted net earnings for the quarter were one seven per share.
Courtenay: Operating cash flow before working capital adjustments for the quarter was 145 million benefiting from the average higher average spot price.
Courtenay: And even if it goes the project construction and mine development activities was Canadian $209 million during the quarter and 55 million for working capital Canadian $55 million for working capital.
Courtenay: Gross we reiterated this total construction and development cash expenditures to first of all Q2 25 were maintained at a total of $5 4 billion Canadian.
Our balance sheet wise with good strong financial position.
Courtenay: Finished the year with cash and cash equivalents $337 million.
Courtenay: 400 million drawn on our revolving credit facility, but as you saw in early 'twenty five we completed a convertible note offering for gross proceeds of $460 million, which we subsequently used to fully pay down the balance in the RC up. So we currently have nothing drawn on the revolver and 800 million capacity with the existing center.
Courtenay: Plus another 200 million accordion feature should we want to use that.
And with a good amount of financial flexibility, we think to be able to complete the construction.
Courtenay: Second quarter twenty-five like Dallas sustaining growth initiatives.
Speaker Change: Across our portfolio some of its climax alright.
Speaker Change: Turning to funds a healthy exploration programs across all sites to extend mine lives.
Speaker Change: So that's what I'm just going to those are the highlights I'm going to touch on I'll pass it over to bill.
Bill Cimino: Alright, Thanks, Mike.
Bill Cimino: Okay, maybe stepping back in the Q3 last year remember that we had to see lift in September August September 'twenty 'twenty. Four CLEC was successfully completed with 10 ships and one barge unloading approximately 123000 cubic meters of dry cargo and more than 84 million liters of Arctic create diesel fuel.
Bill Cimino: We also added 58 additional trucks to help us.
Bill Cimino: Going down the supplies downwind wrote in 2025.
Bill Cimino: I'm happy to say, we opened the 2025 winter Ice road two days ago. This is ahead of schedule and have already begun transportation transporting material down to the goose site.
Bill Cimino: As far as construction site all planned activities for 2024 were completed on schedule and the process plant is on track to produce first gold at the end of Q2.
Bill Cimino: On the mining side significant progress was made in the mining of the eco pet. We are now currently ahead of our announced.
Bill Cimino: Announced schedule and the underground development well is consistently hitting new highs on mining efficiency.
Bill Cimino: In Mali.
Bill Cimino: Gearing up to have contributions in 2025 from both the Portola regional and the Koala underground, which would then benefit the operations for years to come and as Clive indicated we did have a couple of one offs in 'twenty four and just to refresh everyone's memory. We had an upset condition, where we had operator, Eric and we lost an excavator for a quarter and we also.
Bill Cimino: Had some illegal union activities, which we have since gone through our display area procedure and all cases have been finalized.
Bill Cimino: And my body to continue the operations continued to perform to a world class level I think everyone saw they were they outperformed last year and the operations delivered all in sustaining costs in 2020 for materially lower than our guidance range delivering very strong free cash flow at these gold prices.
Clive Johnson: And then at Chicago once again in 'twenty 'twenty four they outperformed we also have as Claude mentioned, the new discovered the Antelope deposit.
Clive Johnson: S. P. A was released earlier this month and is a positive step towards new production. Later this decade and this continued term continues to remain open for exploration.
Speaker Change: Grandma date, we're working through a feasibility study, which we believe will be ready by the end of mid 2025 are released in mid 2025 with that client I'll turn it back to you.
Bill Cimino: Thanks, Bill Thanks, Mike.
Clive Johnson: The final thought you know what.
Speaker Change: That's been hanging over us for awhile theres been the <unk>.
Speaker Change: Reality is that perception of dealing with Mali, when we needed to reach agreement with the government based on the government coming out with at our 2000.
Speaker Change: Turning to the mining code. So I think it was with <unk>.
Speaker Change: Developments, we've had in terms of reaching the end of September and the other companies reach an agreement. Since then and then finally, what's together the airports are true with Barrick solving that takes out some of their issues moving forward.
Speaker Change: Takes a lot of weight option I think pressure often close space of our shares.
Speaker Change: Beat up a lot over the last couple of years based apart where large parts of that uncertainty about the future.
Speaker Change: Additionally, I think there's been a great concern about close just in the sense of this is going to be timing.
Speaker Change: They come in.
Speaker Change: Around the budget.
Will they be guided.
Speaker Change: As Bill said the good news is we're very much on track.
Speaker Change: So I think that's another factor that's been putting pressure on our market value has been.
Speaker Change: Sure.
Speaker Change: Cash cost to approach, China central customer brokerage ROTC.
Speaker Change: The timing of goods, which is great.
Speaker Change: Very much on track so with that we.
Speaker Change: Felt that the market turnaround a little bit and in fact that hopefully this last couple of days just to start with that as we move these risk factors going forward.
Speaker Change: So that's the thing that's going to be the variable that to feasibility study.
Speaker Change: That's going to be completed by the middle of the year showing all of 2020 for inflation was a challenging year, we met the challenges and as we go into 'twenty five we're twinning of page back too.
Speaker Change: Solid production performance strong financial position and voice control existing assets. So I think with that we'll open it up to questions.
Speaker Change: Sure.
Speaker Change: Thank you we will now begin the analyst question and answer session.
Speaker Change: I joined the question queue, you May Press Star then one on your telephone keypad.
Todd: Todd acknowledging your request.
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Speaker Change: Today's first question comes from Obs Habib with Scotiabank. Please go ahead.
Speaker Change: I drive and be too cold team a couple of questions from me.
Speaker Change: Sorry, if you already addressed some of these questions I've just been bouncing between a couple of conference calls so apologize for that.
Speaker Change: Just wanted to start off with the call out in regards to the permit them and glad to see things are moving ahead with Barrick as well.
Speaker Change: It didn't meet additional info directly terms require other people our regional optical underground or are we just waiting for the final sign offs.
Speaker Change: So what we're working with is coming out right now.
Speaker Change: Yes, consolidating three licenses.
Speaker Change: That make up the majority of the property.
Speaker Change: Which to the north and definitely you could call that a copy of the past so that's on track.
Speaker Change: Are you expecting that anytime and then hopefully shortly after that we will get the permit for the government.
Speaker Change: To start.
Speaker Change: Or there'll be a bit of a pre strip.
Speaker Change: Start on.
Speaker Change: On that but basically if we.
Speaker Change: Reed change those things, which we're expecting to new as I mentioned, we're very much on the same page as the governor wedding. This mining to start this year, we've already projected 10 to 20000 ounces to come from the regional.
Speaker Change: It will be as we said about 180000 losses.
Speaker Change: Annualized basis for the first five years.
From from the mutual.
Speaker Change: The other thing this is significant as the government gave us permission a while ago to build the infrastructure for regional mining and trucking to award up to difficult mill. So that meant building the roads with other facilities maintenance facilities workshops et cetera. So that was a good sign that the government was a green for us to get going even before we had Mr program.
Speaker Change: But as we get to the September.
Yeah.
Speaker Change: Okay. Thanks for the color on that and just and then moving quickly onto goes again, great to hear you guys have had on the ice road.
Speaker Change: You also mentioned in the press release that underground mining grades, but behind schedule is this just a function of experienced miners or is there anything else in terms of rock hardness or anything else.
Speaker Change: You know ground conditions.
Speaker Change: That is causing that.
Speaker Change: If I'm being honest ovation once again, so it's two things really both of them historical.
Speaker Change: Both of them, which we have fixed the first one being as you correctly pointed out.
Speaker Change: The quality of the miners that we inherited which is been we certainly brought that team up to scratch and that's why you can see and I think I said in my statement that the daily rates are coming up every day.
Speaker Change: The second one is the equipment that was purchased by our predecessor, which we have now are in the process of changing out during the ice road for some of the first step down the road is some new equipment to bring that to bring the speed up.
Speaker Change: But we have seen we started meeting targets kind of in Q4.
Speaker Change: Our daily production rates and so we've readjusted our schedule and we don't see any real impact to 2025 production.
Speaker Change: At our current rates.
Speaker Change: Perfect. Thanks for that color on that boat and yeah.
Speaker Change: That's it for me guys that you know, we're looking forward to the ramp up at Goose. Thank you.
Speaker Change: Excellent.
Speaker Change: Thank you and this concludes our question and answer session I'd like to turn the conference back over to Clive Johnson for any closing remarks.
Clive Johnson: Okay, well I guess that means we have a very complete presentation.
Speaker Change: So thanks for your time and.
Clive Johnson: You can see why we're pretty excited about the future here at <unk>.
Speaker Change: Thank you operator.
Speaker Change: Thank you Sir this brings to a close today's conference call.
Speaker Change: May disconnect your lines. Thank you for participating and have a pleasant day.
Speaker Change: Mhm.
Speaker Change: [music].