Q2 2025 B2gold Corp Earnings Call
Thank you for standing by. This is the operator. We will start shortly. Today is the Q2 2025 conference call for B2Gold. Please continue to hold.
Thank you for standing by. This is today's conference operator. Welcome to the B2Gold Corporation's second quarter 2025 financial results conference call.
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I would now like to turn the conference over to Mr. Clive Johnson, president and CEO of B2 gold, please proceed.
Thanks operator. Welcome to the call, everyone we feel. We are the historical order the second quarter. We started operational for financial results across all operations. We are very focused with our second quarter results for all came in ahead of expectations. In the second quarter. On the production side resulting in lower than expected cash operating costs per ounce at all 3 operations, the operations continue to run, well, the expected need our annual guidance.
Additionally, a big milestone on June 30, 2025. We celebrated the phenomenal goal for after new; they can start to reduce line.
This Sparks page of transformation a moment for me to go. That is a true mouth. So for our staff and partners
We have worked tirelessly to reach this achievement at Goose the focus. Now turns to continue steady state, operations, and increasing through work. The full design capacity to wrap up.
Be achieved in September of 2025, which is quite a rapid wrap-up.
Three months, and that's typical of our track record in history. And Bali means, and we received some very positive things.
In our view, this is the state of Valley's grant and approval to commence underground operations. If you call them, this includes stone or production, which has been announced.
The approval follows a productive week of meetings from senior management and several key individuals in the valley, including the Prime Minister, the Minister of Finance, and the Minister of Mines.
That advised the government. I think this is really important point because for those that have that that are concerned about the future of growing, my name Valley, this clearly under other lives. The fact that the government of the valley is cooperating with me to hold on.
To be in the country and operate the coal mine and to Regional expansion. So that the next step,
We are working with the city of Valley to realize the expectation of a license for regional development, and we're looking to see that in the short term.
Expected approval and third quarter of 2025.
During the second quarter of 2025, we also announced a positive results for 20125. Do I have a lot of feasibility study which demonstrated the ground line for has a meaningful connection profile and positive project economics.
Terminated with that involves coming in with a reduced footprint in the patient of, um, and we already have a permit. It's a matter of coming back to modify the permit application.
This stroke Google fi environment, need to go as well, set up to take advantage of that interval production of 1 million Oz this year and with the majority of growth Capital spending in groups now and Fleet the company is set up well to that stiff and show provide over the coming years and including production from what you call.
But we are looking forward to another strong quarter operation. So actually,
as I said, looking to meet our our guidance from 2025
So with that, I think I'll turn it over to Mike cinnamon who's our CFO and Michael will give you a quick review of some of the financial highlights and then without no light on CB cooperations talk to us. Give us a quick update on
Juice, um, and then we'll open up for questions. So my co
uh, thanks Clyde.
I mean, financially, it was, it was a strong quarter, uh, our basic earnings per share were 12 cents per share and adjusting from 1 time items. Um, which were actually offsetting uh we we actually realized 12 cents per share of adjusted earnings and you know, fair to say that that's definitely benefited from the
Strong average. Goal sales price.
And just to maybe touch on the sales Point too. We work slightly behind budgeted sales.
Ounces in the quarter, but that was purely on a timing basis. The timing of, like shipments from several of the sites that, uh, those answers were shipped out just after the period end and sold in early July.
Uh, operating Cash Flow side, uh, operating cash flow before working capital adjustments. So those 3001 million in the second quarter or another strong result. And again, highlights
The cash generation potential of our operating assets and the school price environment.
Balance sheet wise. Uh, we continue to remain in a strong financial position. We've got cash and cash equivalents of 308 million.
at the end of the second quarter,
And also then quarter, we had the full 800 million available on our revolving credit facility, which was on drawing plus a 200 million accordion feature.
I will say that subsequent to June uh the end of June, we did draw down, 200 million on the revolver and that was just that was to help us manage working capital requirements as we start to deliver into our goal. Prepayment commitments over the 12-month uh, period from July 25th to June 26th. In fact, we have already delivered the first branch of those. So we're starting to unwind that position.
Um with continued strong performance across the portfolio and the ramp up of goose which is now well underway. Uh, we were pleased to restate and reiterate our production guidance for 2025 unchanged with full year production. Expected to be between 970 and 1,075,000 Oz and we expect boosters still contribute between 120,250,000 of those Oz.
At the the the existing 3 operating mindsets to call on my stomach Cotto.
Uh, we're pleased to announce that the company has reduced its consolidated cash cost guidance range for those three operations to between $740 and $800 per ounce produced. Sorry, this is lower than the previous guidance range of between $835 and $895 per ounce.
And then with the inclusion of the post commercial production estimates for the goods, mine uh remind you that we expect boost to come into commercial production in September.
Uh, consolidated cash. Operating guidance is now forecast to be between 795 and 8555 per ounce.
And overall, uh, on a liquidity basis, we continue to maintain a good amount of financial flexibility to allow us to complete our remaining ramp-up with construction activities at Goose, to fully repay our delivery to the gold prepays entered into in early '24, and to support growth initiatives across the portfolio. We will continue to fund healthy exploration programs as well, which we expect will extend mine lives.
And with that, I'll turn it over to Bill for an operation and project update.
All right. Thanks Mike. I just got back from uh the goose so maybe a little feral during this so bear with me. Um as Mike said on the 3 Operation uh we expect to meet or exceed all of our targets for the year. Um but probably what everyone wants to talk about is goose. So just going back to going back to what has been completed, their goose
All the major construction activities which required are. We're nearly completed at the end of the quarter and the and the mine ramp up is now. Well underway, the focus for the third quarter. Now turns actually to optimizing the current operations and increasing the throughput to full capacity. As Mike indicated, a ramp up to commercial production is expected in September 2025.
Things that were completed in the first half of 2025 at the Goose include the completion of the mining of the Eco pit. Remember, that was our tailings facility and commissioning. So, we are now placing tails in Echo, and we are seeing full ramp-up of mining of the Unwell open pit in the second quarter.
We also had continued development of the unwell underground. We we completed the fresh air race 1 already and in the process of developing fresh air is number 2, which will be needed in the second half of 2025.
We commence dewatering of the Llama pit. All these things are required to run the mill correctly. This provides fresh water and reclaimed water to the mill.
Uh, we developed the Unwell, open pit, and underground, and that remains a priority to ensure that the adequate mill feed volumes are maintained.
if you look at uh, around the other operations,
Molly continue to strong performance for 2025 exceeding Global Production expectations again in the second quarter. Uh, as Mike said, cash costs per ounce were also lower than expected.
Underground after meeting with the government. Uh, last quarter or last month. Uh the underground production has commenced uh, as announced on July 30th, the underground development is well Advanced with over 9,300 meters of development work. Plus the installation of all required underground, mining infrastructure having all been performed prior to commencing production. If you remember, we were actually given a permit to do all the development. So even even though we were 30 days, late on the starting of, um, mining of ore, we in fact continue to develop right up until July 30th. So the the question I've heard of being asked several times, is whether or not we think we're going to get the Oz required from underground, we absolutely see a path to make sure that all the required Oz from underground will be delivered in 2025. Um, the regional project we continued with our meeting with them, we can continue to work with.
With the state of Molly to finalize the approval of the regional exploitation permit in the third quarter of 2025 uh just kind of late breaking. We've actually had our first technical session with them this morning. Uh, we we absolutely see a path towards getting this permit. Uh, B2 gold is ready to commence pre-, stripping activities, with the polar Regional infrastructure. Remember, once again, this was 1 of those facilities where they allowed us to do all of the uh, infrastructure development. So the haul roads in place and all the infrastructures are already in place. We're just we're just waiting on a permit to start pre-. Stripping
Subsequent to June 30, 2025, the Fekola Mill celebrated a significant milestone with 4 million ounces of gold produced since the inception of the project.
I think we announced more than 2400 days without a lost time incident. Uh, my production significantly outperformed expectation,
And we anticipate consistent production in the second half will result will result in strong 2025 performance and robust margins.
Okkoto is also going very well. The open pit and underground operations went well during the second quarter, with production also exceeding expectations.
During the second quarter. Remember we we're working on this Antelope deposit so we can continue to focus on developing that with the target released, uh, in the third quarter of 2025
And then the other development project is Grandma Lotte. We released the positive feasibility study. Work has commenced on the modification of the work plan and environmental impact study, and we expect to be complete in late 2025 or early 2026. We anticipate that the permit modification time frame should be approximately 12 to 18 months. With that, Clive, I'll turn it back over to you. Thank you. Thanks, Will.
Operator, we're ready for the total over the questions.
Thank you. We will now begin the analyst question and answer session as a reminder, to join the question queue. You may press star then 1 on your telephone keypad, you will hear a tone acknowledging your request.
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We will now pause momentarily to assemble our roster.
In today's first question comes from Fahad Tariq with Jeffrey's, please proceed.
Hi, thanks for taking my question. Um, in the press release, it mentions lower than anticipated fuel costs and the number of places, not just at the cola, but also about T. Can you just maybe talk about what the expectation was at the beginning of the year when you set guidance? I'm just curious why it's trending lower than expected. Thanks.
Uh, well, I can start. I'll start so
Well, you know, we we when we budget we typically have a look at the forward, curves on the, on the fuel side. Uh, usually around September October. So, um, we use those as the base and and then what we just what we've seen and and what's been realized at the sites is that hfo is being about 9% lower than those prices. Over the first 6 months,
Of 2025 in diesel It's actually been more. It's been something more like 13% below so
You know, we we made our best estimate back when when we set the budget probably set some somewhere around the October price. Uh, because we do our budgeting sort of finalize it up in early November,
And uh, oh, I can tell you as, as we've looked forward. Uh, we have taken into account those lower fuel costs. When we're looking at, um, the reg guidance of that we put out in the cash operating site.
Okay, that's helpful. And then on Goose, there was a comment about the capex guidance for the second half of this year: $176 million.
I'm just trying to reconcile just the overall capex at Goose relative to
I guess what the what the project Guidance, the project capex guidance was before uh and I think it was reiterated in the May release. Can you just maybe help us walk through that like is is
I guess the other way of asking is, is that second-half capex guidance of $176 million consistent with what you were expecting? Thanks.
Yeah, again I can I can start with that and Bill can jump in. I mean, overall on the project we did see some acceleration of costs as we as we worked our way up to the first goal for um,
At the end of half 1. So we probably saw somewhere around about 5% overall. Um, cost increases against the the budget.
um, then what we also experienced, as we as we ran up to that is we did, we did accelerate
Some capex, uh, capex would have been in half too, and the tech report, and actually a little bit from future years, and that totaled about somewhere in the region of $60 million.
um, and then we also had, uh,
What we?
Described in the MD&A and disclosures, we had some mill and processed plant upgrades.
Somewhere in the region of 40 million. So approximately 100 million between those 2 where we pulled stuff forward um, from second half and
I think that's for further, um, melon process plant upgrades, and I think they'll can talk to those a little bit.
Yeah, I really relate to upgrades. I would.
once again, it was really
operability or availability of the mill 1 of the things that, as, as we got in in building, we realized a lot of the, a lot of the lines didn't have the necessary, uh, valving and piping. Um, the redundancy built in the ability to do maintenance on the mill, while it continues to operate. So we added, I I think I I saw from the finance group of approximately an additional 26 million dollars on a Mill, Side related to kind of what I would call upgrades or uh, improvements in availability and, you know, like I say that really relates to a lot of that, small stuff additional pumping piping valves um and installation of all that stuff.
Okay, thank you.
Our next question comes from Wayne Lamb with TD Securities, please proceed.
Yeah, thanks guys. Uh, congrats on the good quarter and and, uh, getting the Saka underground permit. Uh, seems like you have some good momentum in Mali. Now just just wondering what the, uh, mechanics, uh, would be, in terms of, uh, getting the FICO Regional permit and what the final points of uh, negotiation might be um and and
In any potential hurdles to getting uh, that permit by the end of Q3.
Yeah. So we as I said we went down and met with we met with the minister of mines and and during discussion it it almost seemed like
for them, the regional permitted kind of dropped off because they were dealing with some of the other government. The other mining houses issues there. Yeah. Which shall not be named on this call. Um, but once we, once we brought it Forward, quite frankly, they were a little embarrassed that they hadn't done it yet and so they they immediately agreed to try and get this thing pushed out by the end of Q3 that was their schedule, not ours. Um, and they immediately agreed to set up a commission and start working on that. So that happened this morning, we haven't heard uh, any outstanding issues uh, other than to hear that that that that that it wasn't a, a Yelp Fest or it wasn't a, it wasn't an argument. It was it was a very constructive discussion which we think leads to the permit.
Well, great, thanks. And then may just wondering in terms of the ramp up of goose uh relative to the Mind plan. Uh you guys had outlined um, in the plan 125,000 Oz this year which would would be at the lower end of the guidance. Um, seems like you've been, you've been making some good progress there, uh, just on the stripping of the equipment in the development. But just wondering, uh, where you guys kind of see the opportunities to outperform. Uh, what What's been outlined in the plan? Is that on the plant?
Performance, or is there upside on the grade profile as well?
I would say both at the
certainly certainly, we, we have an aggressive ramp up plan, but historically we've been able to beat that. So there is some potential there. Um, there's also some potential as we start to move out of kind of the Eco low-grade material, which, you know, remember, the Eco pit was never designed to be a kind of a, a high-grade feeder into the mill into the, um, well pit. If, if we, if we can get our head around, how can we mine that quicker? Certainly, there is some potential there. And so, I, I would say, not only on the mill ramp up side, um, which admittedly a 3-month ramp up is, is aggressive versus many other of our peers, but not really aggressive versus what we've historically done and then on the Young World side, um, if we, if we can get additional grade from from the open pit,
Other great, thanks. And then maybe just the last one. Um, maybe just a follow-up on, uh, the capex side. Um, just giving the, uh, the increase in capex relative to the $270 million in the mine plan. Um, just wondering how much of that would have been brought forward from 2026. Just trying to figure out, um, if maybe we should be anticipating a lower capex.
Number relative to the 140 million outlined, uh, for next year in the mine plan.
Okay, so you're talking about what may have been pulled forward from Q2.
and,
And in the second half.
Yeah, that's what you're asking.
You know there's um, there's there's some site infrastructure upgrades or or bills doing, I think what he wants to do to, to pull to, to enhance both the MLA and the site that they're about.
15 million. Um, there's this bill mentioned, there's 26, roughly related to the mill, so there's
40, let's say that there are things we didn't have to do this year, but we want to do to enhance it. And then there's some prepayments.
On some generator additions that we have, there's another 24 so it would be more than 60 that would be full forward from future years.
So we got it. Okay cool. Uh thanks for taking my questions.
Welcome.
In the next question, is from Ovis Habib with Scotia Bank. Please proceed.
Thanks, Operator. Good morning, Clive and B2 team. Congrats on a good quarter. I just have a couple of questions.
Starting off with the Pocola maybe, um, in terms of the Mind client sequencing, um, for uh, Pocola kind of going into 2026. Does that change now, that you have the Pocola underground permit in hand,
So remember, we always talked about having it after Q2, so our Lipo mine showed it really coming online in July. The underground permit doesn't really change it. Other than we have done a little bit more development than what was in the life of mine, so we may be able to steal some additional ounces. But I really think that's more of a 2025 issue, not a 2026 issue. As far as 2026, we're still working on the budget and where we're going with that. So I don't really want to comment on where the ounces will come from in 2026 just yet.
Got it. And then just build. Um, in terms of, um, what would be the current, uh, grade of the underground stock piles that you have on, uh, on site and what would the be the grade that you're expecting from the stowes that you're currently mining?
You're talking at FAQ Cola Pico underground. Yes.
I don't, I I'd have to look that one up for sure. Um
Let me just I did actually report to the board with it. What it is? So
Let me come during this call. Let me come back to you on that.
Sounds good, sounds good, no worries. And then just, uh, kind of, uh, moving on from there. In terms of you know, you're targeting about 25,000 ounces from the underground in 2025. I guess this is kind of my follow-up question for my previous one, but is there a target that you have in mind for 2026 for the Piccola underground? Um, that kind of, you know, is there a range that you can talk about right now?
Yeah, so remember we always talk about the fact that we we thought we could produce about 80 or 100 thousand between 80 and 100 thousand houses out of the underground. But remember that replaces lower grade ounces? So the reality is is is you're going to get kind of probably 50% of that. Uh, so you know, we're kind of targeting that 50,000 Oz a year and just coming back to your previous question. Uh, I see a total, the total underground tons of mine. This is pre, this is kind of development which is on the stock pile right now is about. Just about 35,000 ounces. It's just like 2.7 grams per tonne and then um I once again I'm speaking out of turn but we're we're at least double that it in the stowes will be mining.
All right, thanks for that color but and and didn't just moving on to the regional permit side, assuming you get the permit by the end of Q3 as that which you're targeting. Are you comfortable with the 160 to 180,000 oz of production in 2026? Kind of that's kind of going by the tech report that was presented earlier this year.
Yeah. I mean there's no there's no changes to what the actual mining looks like from the tech report. Clearly once again in in the in the budgeting process on where where the ounces are going to come from, that may shift around some but the Oz haven't changed from the regional from from what was on the tech report.
Sounds good. Okay, thanks for that. And then just, uh, quickly moving on to Goose. Um, I'm really looking forward to that commissioning of the goose in September, um, Bill house underground, development, progressing there. And and do you have kind of, you know, now the right people and equipment in place, uh, in terms of what you were targeting uh, for for the underground. This is at Goose. Yeah, perfect. Yeah. So first of all, I remember, like, when I first joined these calls Clyde? Declaring, I think to you that you only get 3 questions. So let's start with that. Um, but see, see this is question. Number 4, I'm going to take it um,
Uh, in the underground, we have a new mining manager who came in this year, as well as a new technical services manager. All those people are in place. We also brought in additional equipment on the Herc program this year for the underground. So the answer is yes, we now have the right people, and yes, we now have the right equipment. There really isn't an excuse for the site not to be able to deliver.
Okay, good stuff, Bill. Thanks so much for all the scalar, and thanks for taking my questions. Congrats on a good quarter.
Actually.
And that's a reminder. If you do have a question, please press star, then 1.
In our next question is from Anita Sony with c. I b c World Markets, please proceed.
Good morning live, Mike and Bill. Um, I'm just gonna ask to so that that'll make up for Oasis. Uh, extra question there. Um, first question was, uh, your commercial production and what's your definition of commercial production? I just want to clarify 71 has a different definition.
Yeah, I think it's the same thing. We used it for Cola and at Oro, so that's like uh, an average of 65%. Um name plate. Throughput over 30 days.
Okay.
And then what's the for, from your perspective? What's the next, uh, Milestone? Um, in in terms of like, um, you know, the rat, like, I guess year end, what do you, what are you targeting for uh, like what, what's the throughput ramp up? You're hoping to get to by year end, uh, and then um, for how long.
A year end. We want to be at that name plate 4,000 for sure.
Name 100% for the whole quarter.
Well, I I think I think it's like 92 or 93% availability. It's something like that.
Okay, I forget what's it'll be in the deck report?
Okay. Uh, and then, uh, last question I guess that I did ask 3, um, just in terms of, um, of, uh, the
the optimization, uh, plans that you're looking at, um,
in terms of the, the the
Doing a winter Ice Road, less than I think you said less than annually. What like well how what would that entail? I would assume that it was kind of a like a
Is there a way to do an ice road that's, you know, not like at the ice road timing or like what was it every other year? Or what, like, what are you looking at? Like, you know, every 15 months or so? Like, I'm just trying to understand that for you.
Yeah, well it it can't be every 15 months. So the ice Road must be almost always between February and kind of that, may 1, let's say May 6th. Um, so that is the ice Road date. The question you're asking is actually 1 that. That's almost like a engineering engineering, uh, interest. So the question really revolves around fuel is the first problem. If, if in fact, you need 80 million liters of fuel, which is what we're sending down the road every year right now. Um, it would have to be every year, but now let's say because we just don't have the tank, it should do anything less than that. But now let's say that we actually are successful by by putting these medium speed generators in which saves about 10% of that. And then you say, okay now we're going to put our wind farm in, which is 50 megawatts. Could you get to a point where the number is less than half? Then you suddenly say, okay. Now, can I increase my reagents to make up that difference in the off years and do it? Those studies that obviously,
Very preliminary so much, so I'm not convinced that 80 million leaders is actually what we're going to use this year. For example, right now. Uh, we're sitting here in August and we still have 70 million liters of fuel sitting on site. So, how does how does that really add up? Once you get into full once you get into full production and we just don't know yet.
Okay. All right. That's it for my questions, and congrats on some strong opiates this quarter.
Shin is from Lawson Winder with Bank of America Securities. Please proceed.
Thank you, operator. Uh, good morning, gentlemen. Thank you for today's update. Well, done on the purring success in Molly. Um, what I wanted to ask is, um, around, uh, jurisdiction, um, and as it pertains to Colombia in particular and Canada, so, uh, acknowledging B2 B2 Gold's historical, um, you know, being jurisdiction jurisdiction. I agnostic and focusing on asset quality instead, I think feedback from from the market would suggest that the market likes the pivot to Canada. Um, how do you think about
yeah, I think we're, you know, we're we're definitely interested in doing 1 more things in Canada, uh, but once again, you know, we're we're approaching driven um,
From a geopolitical point of view, we want more diversification. So definitely, we’re looking for additional opportunities in Canada. A grande latte in Colombia, we quite like what’s been happening there. I mean, we do have a permit for a larger operation, so we need to go back and modify that permit now, but we’ve had very positive support in Antioquia, local population, and government in Antioquia, and also some signals of support from the federal government as well.
But I'm glad you raised it with a question because I want to say do that a little bit. So, talking about M&A, we will not surprise the shows with the development project M&A; we will be very disciplined. We build one right at a time. We can grab a latch of experience, which is very interesting as a project for us to do financially, moving in a strong position to do that. We like what we've seen in a few disability studies, and I think it would be a very good project for us. We've got, you know, to get through the permitting process and then make a decision whether we go forward. But I just want to underline again: no M&A for development projects.
Potentially in the future sometime if we find an opportunity to increase our our gold production through some kind of a deal that we have a look at that, of course just makes sense but at the end of the day we're not going to surprise the market with a major acquisition over development project.
Fantastic. And if I could just get 1 more in on goose uh in your um update earlier in the year, you you hide it. Highlighted the potential for an expansion in the processing capacity. You know today now that you're approaching commercial production, what's the latest thinking on timing of that expansion and processing capacity and has there? Been any change in thinking on the uh, magnitude?
Is this a "What have you done for me lately?" question?
Sort of, thanks a lot. All right. So so so the answer is, as, you know, we've got several studies in the hopper. Um, 1 would be, um, you know, we got a flotation circuit, which you might be able to add, um, the other is, would you put, would you put expand the, the milk capacity, um, go to go up to something like 6,000, tons a day, um, those are all due, really
First look by the end of this year. And so, I think we're, I can't remember if we're talking Q1 next year or if we're talking about putting it out, um, the results. But at the end of the day, those are very, very early on in the study, you know, where they go. But we think they're all very real. And just so you know, we talked about some of these optimizations.
The mill will run um at more than 4,000 tons. Just just a question of. Can you keep the availability of? So by doing by increasing uh some of these optimizations you've already put in. Like I said these valves piping and everything. You know there there is the potential we get it squeak out some additional capacity as it currently stands. No promises.
Uh, we're saying 4,000 tons a day.
Fair enough. Thank you very much for taking my questions.
And the next question comes from Franchesco.
Castonzo with Scotia Bank. Please proceed.
Hi, guys. Um, sorry, I didn't mean to, uh, jump in the question queue here. I think, uh, obvious, Anita and the others have already asked all the premium questions, so, apologies for that.
And the next question comes from Don DeMarco with National Bank Financial. Please proceed.
Thank you, operator. And uh,
Good morning, Clive and team. It sounds like things are moving along well in Mali now. I mean, you've got, we'll look to the regional permitting, but you know,
What was the reason for the delays? I mean, was it the government focusing on Barrack and maybe other stuff?
Or is this kind of just the norm in Mali? I mean, benefits from optimal mind performance from a tax point of view.
I'll take that as soon as we were just down there, there's a, there's a couple things there.
Remember, there was this whole shift in the government and...
Uh, and they, they were visibly embarrassed and said that, that, that that's a non-starter for them, and they will get it rectified. So, um, certainly, I, I think some of the other mining issues in Mali play a factor, I think, I think, uh, the the fact that that they were, that there were some big disputes out there that, that they had to pay attention to, um, took up some of their bandwidth. But also ultimately, they also didn't really know what each other was doing. I I, I will say that. That all 3 ministers, we met, we met Minister Minds, Minister of Finance and the prime minister, they all apologize profusely. They all said that they're committed to getting this done. Remember this, is that they've got a big stake in this too so that they want to go as quickly as they can, of course, legally uh, to get us this permit and get us going.
Okay, great. Thanks for that. Yeah, go ahead. Thank you. Maybe just to add a little bit, if I could just add a little bit to that. So that is one of the questions. You're asked to go further negotiations with the government to get the product for the region. There is no further negotiations. We're in active terms. We negotiated the MOU last September that sort of clarified that we're not in a negotiation building. We're just getting the permit done to work closely with the government to do it. They're still touched on revenue aside from the government of the valley, which obviously they...
This is the fastest way for them to get revenue from gold. Mining would be to get us that permit because they own 35% of the regional. So they're on the same page as us, wanting to get that permit and get going with the trucking law as soon as possible.
Okay. That that helps that certainly clarifies things because that would have been our impression as well, so that's encouraging for the future. Um, but sticking with the cola then in Mali. Uh, so I saw Productions up 35% quarter of a quarter grades are elevated. So Bill, do you expect this to continue into H2? What was some of the drivers?
Here in Q2.
Well some some of the drivers really revolved around being being finding additional lower kind of on the margins of what where the resource model was. Um, and it was quite frankly, it wasn't higher grade ounces, but it was ounces or it was tons. That would have been considered waste that we ended up being able to process through the mill. Uh, we also had a very good run with the mill, the mill, had a very good quarter, um, and those were the 2 main things. So
Obviously, I can't predict what's going to happen outside of the resource model in Q3 and Q4. Um, but the mill is kind of firing on all cylinders and uh, you know, 1 of the things that that we've been very open about. Is that even if we even if we don't get
Puns are get Oz from the regional stuff into the mill in 2025. We still feel very comfortable with our range that we put out there and so that obviously would mean that we're going to get additional houses from somewhere else. Yeah there's a pretty stripping yeah yeah, just climb it's actually a good point even if we get the permit in kind of
Let's say August or September, there is still a priest stripping Campaign, which we have to do before we can start Trucking tons down to the mill.
Okay, okay, and, uh, then just for the final question, I was shipping over to Goose.
um,
I see that the uh the Asic uh for goose is lower than what it was in the tech report by bit. You know what, what are the some of the efficiencies that would explain the Delta? It's favorable. Delta and is there a read through for lower costs at goose?
In 2026, versus the technical report, or is it some of the capex that you kind of push forward? Also provide read-through for a lower ASIC in 2026.
I'll talk, and then I'll let Mike correct me. So when we wrote the technical report, really the information we had was.
What was created by Sabina for the feasibility study and the actuals we had during construction?
Right? And so in construction, there's all these inefficiencies where you're flying stuff in, you've got the wrong crew. Um, you know,
What we've seen, as we've now been able to tighten that up, in particular around the mining side, is that we're probably a little bit worse than what Sabina had promised. However, we are a lot better than what we had seen as kind of a developer. So I do believe that the costs we're now presenting are indicative of that.
On the mining side in particular, and hopefully on the milling side, we will carry through and we're going to see those. I think I can't remember what we said our all-in sustaining costs were ultimately going to be, but they were coming down, and we do see those as real.
Okay, thanks for that, Bill. I'll only add part of the...
Part of the impact in, in
Basically post September, but the submitted it. So, you have a, you have a production split there between 23 and 24, and but you also have some of the capex that we pulled forward and accelerated and also it's already incurred. So that has some impact on the post commercial production numbers.
Okay, great, thank you. Well, that's all from me. Um,
good luck with the rest of the quarter.
Thanks.
And the next question is from Carrie McCurry with Canaccord Genuity. Please proceed.
Hey, good morning, guys, and congrats on the quarter. Maybe just a question from Mike on the accounting around Goose. Now that you're ramping up production, are we going to see operating expenses starting from now on at Goose, or are they going to come after commercial production?
No, yeah, you're right, Donna. It's like in the New World Order, or it's been for a few years; all results will go through.
And the P&L and all production reported. It's just so you'll see everything from Q3, whatever production we have, whatever operating costs we have, whatever sales we have, you'll see them in our financial results, okay? We'll be presenting the cash costs and all in post-commercial production.
And that. And that's basically my Opex guidance you've given us.
Yeah, I present. Yeah. Okay. And then maybe just back on for Cola Regional. Um, assuming the permit comes in the near future here, is that still an attractive area from an expiration Focus or do you see better opportunities elsewhere? Just giving the economics of that area now.
Oh good. That came to answer that for the expiration.
Uh, yeah. Well, one of the areas that we see outside is the, uh, beneath the oxide resources that you...
Pretty much covered and we have sufficient Dark Side answers to keep us going. There's quite a while. So the biggest the big push is to actually pursue higher grade uh fresh or sulfide material beneath the bits or beneath the the oxide zones uh, within uh, the the cola Regional.
And that's, that's really where a lot of The Upside is. The other is
Looking at the underground. Um, you know, obviously pursuing that as as we develop the underground will be able to drill down plunge. So there's that, that thing to suggest that that is closed off. We'll certainly be pushing that forward. And there's also potential for picking up a parallel sheets to the main Zone at Pocola underground as well. So, that's
That's really where the potential is.
Uh, on Dan Doca, which is part of the Kala Regional, I think we've pretty much covered that. There's not a hell of a lot more there.
Uh, but that's, that's it. Really? If you speak to your expiration version? Yeah, we have a 60. 62 million dollar, budget us or globally. Both of that is, uh, at goose.
Just about half.
Uh, and then obviously, ongoing drilling is mobilizing. Uh, pursuing extensions of the Antelope deposits in.
In the media, and also looking at the potential for, uh, service material in the movie to complement and to help the throughput. As we look down the road at logic Cotto, it needs more than just the stockpile to blend the hybrid.
Material that we have there. So that's where that is, and then also pursuing new areas.
Using and leveraging of our experience in. Uh, it must in Mardi in the Philippines. Uh, we're looking at opportunities in East Midland moment, so, that's all very early stage. Um, and then
I guess that's as we were,
Okay, great. Maybe one last question for me, just on Grandma Latte again. Were you guys, did the feasibility study kind of meet with what you were expecting? And I guess what I'm asking is, you know, we get through the permitting for next to updating months, right, at 3,000 golden environment. Is, you know, how likely is this to move forward?
A lot of people tell me now on 100%, of course, but there's a lot of lot of technical work. A lot of studies that have before that he's doing very well and he really you can, it's what it is. Um, so I think it's really well defined. So we'd expect to the feasibility study to be close to the to the, to the VA. And, you know, I think when you look at that project, and the potential to produce, you know, 340,000 dollars a year out of the gate. It grab a latte, there aren't many of those rounds. Um, we owned a 100%, we don't have to buy it. Um, we like the economics and I don't know how you would, you know, if you don't build that, what, what are you going to do in terms of, uh, projects in today's cold environment that you that you own? And, uh, we believe it's in the good jurisdiction. So, you know, at the end of the day right now, I would see it looks very favorable as a, a part of The Upside, um, campus was coming,
Okay, great. Thanks. Thanks, guys.
Thanks.
Again, if you are an analyst and you do have a question, please press star then 1.
And at this time, there are no further questioners in the queue, and this does conclude today’s question-and-answer session. I would now like to turn the conference back over to Clive Johnson for any closing remarks.
Thanks. I think we have a good set of questions, and I believe we covered a lot of ground there. You know, the final question I have for Amazon is, if anybody can figure out the market, I'd like to know how you come up with that core like that and see the stock down. That's a bit of a surprise, but the market always has surprises, I guess. So, thank you very much for participating in the call.
Today's conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines and have a pleasant day.