Q3 2025 B2gold Corp Earnings Call
Operator: Welcome to B2Gold Corp.'s Q3 2025 Financial Results Conference Call. As a reminder, all participants are in listen only mode, the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. I would now like to turn the conference over to Clive Johnson, President and CEO of B2Gold. Please go ahead.
Thank you for standing by. This is the conference operator. Welcome to be to go corporation's. Third quarter 2025 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 1 on your telephone keypad. If you do need assistance during the conference call you may signal an operator by pressing star at zero. I would now like to turn the conference over to quiet Johnson president and CEO of B2 gold, please go ahead.
Clive Johnson: Thanks, operator. Good morning or afternoon or evening, everyone. Thanks for joining the call. We're here to talk about the financial results of this Q3 2025. We had a strong operational and financial quarter for Fekola, Masbate, Benny, and Otjikoto mines all came in ahead of expectations in the Q3 on the production side, resulting in lower than expected cash operating costs per ounce. On 2 October of this year, we announced we've achieved commercial production at our newly constructed Goose Mine. This milestone comes just 3 months after the inaugural gold boom, and we look forward to many years of successful operations in Nunavut in close collaboration with our partners at Kitikmeot Inuit Association. The Goose Q3 production was impacted by the previous disclosed crushing capacity shortfall and a temporary delay in accessing higher grade Umwelt underground.
Thank you, operator. Good morning, or afternoon, or evening, everyone. Thanks for joining the call. We're here to talk about the financial results of this, third quarter of 2025
Please we'd have a strong operational and financial quarter to call them as spending. No Minds walking in the head of expectations. In the third quarter. On the production side result in the lower than expected cash, operating costs per rounds.
On October 2nd of this year, we announced we achieved commercial production at our newly constructed Goose mine. This Milestone comes just 3 months after the inaugural goal.
And we look forward to many years. Successful operations in none of it in close collaboration, where our partner with our partners to continue me at the association.
Clive Johnson: We are now in the higher grade. To ensure a consistent feed of crushed ore to the mill, the company has implemented the use of supplemental mobile crushing capacity. Permanent modification and modifications are in progress and are expected to be implemented in 2026. Continued use of the mobile crusher will assist in operating at higher throughput until these modifications are implemented. We expect to be at design capacity of 4,000 tons per day by the end of the year. Underground mining the Umwelt Deposit commenced in late October 2025 and will be a strong contributor to high-grade ore at Goose over the next few years. In Namibia, B2Gold announced a approved construction decision on the Antelope underground deposit. Production from Antelope is potential to increase Otjikoto Mine gold production, leveraging the low-cost platform and extend the life of the mine into the 2030s.
Against third quarter production was impacted by the previous disclosed crushing capacity, shortfall and a temporary delay in accessing higher grade from home wealth underground. We are now in the higher grade.
To ensure consistent for you to crush doors, in the middle of the company is implemented. The use of supplemental mobile creation capacity.
Permanent modification and modifications are in progress on our expected to be implemented.
In 2026.
Continued use of the mobile crusher will assist in operating at higher throughput until these modifications are implemented.
We expect to be a design capacity of 4,000 tons per day by the end of the year, 2025 and we'll be start contributing to higher order and do. So, by the next week,
And then maybe a beach will announce some food construction decision on the antelope underground deposit production from Antelope, is the potential to please hold em gold production.
Clive Johnson: In this strong gold price environment, B2Gold is well positioned to take advantage with annual gold production of approximately 1 million ounces this year, with both gold capital spending at Goose now complete. The company is set up well to add significant shareholder value over the coming years. Before I turn it over to Mike to give us more financial detail, I just want to talk a little bit about the political situation in Mali. We've had some news come out that I think what I think are some irresponsible headlines from some of the media talking about that it's imminent that a terrorist group organization is gonna take over Bamako and the country of Mali. We think that is completely erroneous, and it's a great exaggeration of the situation.
Leveraging, the low cost platform and extend the life of the mine into the 2030s.
This strong gold price environment be to go as well positioned to take advantage of the annual gold production of approximately 1 million Oz this year with growth growth Capital spending accused. Now complete the company is set up well to a significant share of value over the coming years.
Before I turn it over to Mike to give us more financial detail. I just want to talk a little bit about the political situation in Mali.
Um we've had some news come out that I think what I think are some peers responsible headlines from some of the media talking about that, it's imminent that they terrorists who organization is going to take over.
Clive Johnson: Yes, there have been some fuel challenges, particularly in Bamako, but the people we continue to run the mine as we have for many years now and haven't missed any mining due to any kind of political situation or turmoil associated with that. The mine continues to run well. We're 500 kilometers from Bamako. We look at the situation that the government still enjoys popular support from the population, and they see these organizations that are cutting off fuel to Bamako as foreigners. This is not the battle of the people of Mali from our understanding and from the intelligence that we have received. Operations can continue. It's nice to see some support from other governments, the United States and others.
Bamboo in the country of Mali, but we think that is completely erroneous and this is a great exaggeration of the situation. Yes, there have been some fuel.
Fuel challenges particular by the end of bicycle.
That's the people. We continue to run the mine as we have for many years now and haven't missed any any mining to to in any kind of um
Political situation or turmoil associated with that. So the Mind continues to run. Well, we're 500 kilometers from balico, the way you look at those situation that the government still enjoys, the popular support from the population.
um, and then they see the these organizations that are
Cutting off fuel tobacco as as foreigners. This is not the battle of the people of Mali from for our understanding of from the intelligence.
Clive Johnson: The US came out and posted that they support Mali military and said they're looking forward to closer collaboration, working on intelligence together. There's no Western company that wants to see Mali fall into other hands. There's a lot of international support gathering. We're very confident of our ability to continue to produce in Mali and work very closely with the Mali government. We're expecting the permit for a regional mining and trucking works at the Fekola Mill. That's imminent. We received not that long ago the permit to go underground at Fekola. We think we're on track there. Once again, we're not impacted by any of the things going on in Mali right now.
We have received so operations, continued, it's nice to see some support from other governments, the United States and others. The US came out and posted on this important commodity in the military and said, they're looking forward to closer collaboration working on intelligence together. And there's no Western company that wants to see Molly fall into other hands, and um, there's a lot of international support Gathering. So, we're very confident of our ability to continue to produce and rally and work very closely with the rallying government. We're expecting the permit for our regional.
Clive Johnson: We're disappointed to see this irrational or not true headlines that are running around the last little while include, assert the value of B2Gold. With the benefit of time, I think we'll see that this is a situation not impacting the mine. With that, I'll hand it over to Mike to give us a financial summary of the quarter.
Mining and Trucking in words to Call the Mill. That's evidence that we received. Not that long ago, the Pearland to go underground for colon. So we think we're on track there. Um, and once again, we're we're not impacted by any of the of the things going on in Valley right now. And we're, um, disappointed to see this, um, irrational or not, true. Headlines, that are, if they're running around the house of the wild include, that's her. The, the value would be too cold with the benefit of time. I think we'll see that. Um,
That this is a situation, not impacting, the mind with that, I will hand it over to Mike to give us a financial summary of the quarter.
Mike Cinnamond: Thanks, Clive. As Clive said, financially it was a strong quarter. GAAP earnings were $0.01 per share, but they were impacted by several non-cash derivative mark-to-market adjustments. After adjusting for those one-time items, the company's earnings per share were $0.14 per share adjusted earnings. Clearly, you can see that benefiting from the strong average gold sales price that we saw in Q3 and continues now. The company recorded revenue of approximately $783 million in Q3, and that included $144 million related to the delivery of just over 66,000 ounces under the company's gold prepay obligations. By the end of October, we had another delivery into those obligations.
Thanks guys. Uh, as Clark said that financially, it was a strong quarter. Um, I mean Gap. Earnings were 1 cent per share, but they were impacted by, uh, several non-cash, derivative Market to Market adjustments. And after adjusting, for those 1-time items, the company uh, earnings per share were 14 cents per share adjusted earnings. And clearly you can see that benefiting from the strong average goal sales price that we saw in the queue and continues now.
um, the company recorded revenue of approximately 783 million Q3 and and that included 144 million related to the delivery of
Mike Cinnamond: We've now delivered into one-third of what we owe there, that leaves us just under 200,000 ounces that we'll need to deliver into by the end of June. We're in good shape there. Operating cash flows total $171 million in Q3 or before working capital adjustments, $180 million, which is another strong result, and it highlights the continuing cash generating potential of our assets and the strong gold price environment. Balance sheet wise, we continue to remain in a strong financial position with cash and cash equivalents of $367 million at the end of the quarter. During the quarter we drew down, and as we disclosed last time, we drew down $200 million on the revolver.
We'll need to deliver on to by the end of June. So we're in good shape there.
Um, operating cash flow is total 171 million in the third quarter and or before working capital adjustments, 180 million, which is another strong result. And it highlights the continuing cash, generating potential of our assets and and the strong goal price environment.
Mike Cinnamond: That just helped us manage through some of the working capital timing differences that we have especially as we deliver into the prepaids. We'll continue to do that. With these gold prices, we expect to repay some or all of it by the year end. I'd say overall, we maintain excellent financial flexibility to deliver to the prepaids, complete our other sustaining and growth initiatives, continue to fund the healthy exploration programs that we have, and I think continue to return capital under our share buyback plan. I think that's the summary that I wanna touch on in the financial sections. With that, I'll turn it over to Bill for an operational project update.
Balancing wise. Uh, we continue to remain a strong financial position with cash and cash equivalents of 367 million at the end of the quarter. Um, during the quarter, we we drew down and as we disclosed last time we were down 200 million on the revolver that just helped us manage through some of the working capital, uh,
Uh, timing differences that we have, especially if we deliver into the prepaids. Um,
so we'll continue to do that. But with, with these gold prices, we expect we pay some or all of it by the year end.
So say overall, we we maintain excellent, uh, Financial flexibility to deliver to the prepaids complete. Our other sustaining and growth initiatives. Um, continue that fund the healthy expiration programs that we have. And I think continue to return Capital under our share buyback plan.
So, I think that's the summary that I want to touch on in the financial sections, and with that, I’ll turn it over to Bill for an operational project update.
William Lytle: All right. Thanks, Mike. At Goose, having achieved commercial production, the focus now moves to steady state operations and consistent performance at nameplate capacity. We've identified the source of the crushing issues that impacted performance early in Q3 and have made a temporary fix to the use of the mobile crushing unit. Permanent optimization to the primary crusher and secondary grinding circuits and the installation of the surge bin capacity are being engineered and designed with a finalized study and remediation plan in December 2025. Use of the mobile crusher is expected to continue until the modifications are implemented. Due to the shortfall of the crushing capacity and temporary delays in accessing the higher grade ore at Umwelt underground, B2Gold has revised its 2025 gold production guidance for the Goose Mine down to be between 50,000 and 80,000 ounces.
All right. Thanks Mike.
so at Goose having 2 commercial Productions,
The focus now moves to city state, operations and consistent performance at named lake capacity.
We've identified.
The source of the crushing issues that impacted performance early in Q3 and it made a temporary fix to the use of the mobile pressing unit.
Um, permanent optimization to the primary Crusher. And secondary grinding circuits in the installation of the surgeon capacity are being engineered and designed with a finalized study and Remediation plan in December 25th.
Use of the mobile pressures expected to continue until the modifications are implemented.
Due to the shortfall of the crushing capacity and temporary delays in accessing a higher grade ore at home, well underground. E2, gold has revised this 2025 gold production, guidance for the goose, mine down, to between 50 and 80,000 Oz.
William Lytle: Underground mining, underground mining of the Umwelt Deposit commenced in late October 2025, and the company expects underground operations to ramp up quickly through the final months of 2025, setting the operation up well for the first full operating year in 2026. The company reiterates the near-term and long-term gold production estimates at Goose Mine, which includes a production forecast of approximately 250,000 ounces of gold in 2026 and approximately 330,000 ounces of gold in 2027. An average annual gold production for the initial full 6 years of operation of approximately 300,000 ounces based only on existing mineral resources. Significant construction activities for the first 9 months of 2025 included completion of the mining in the Echo pit and commissioning of the pit as a PSF to include construction of the winter deposition infrastructure.
Underground mining.
Um,
underground mining will be deposit commenced in late, October 25 and the company expects underground operations to ramp up quickly to the final months of 2025 setting the operation up well for the first full operating year in 2026,
The company reiterates, the near-term and goal, and long-term goal production, gold production, estimates of the goose mine, which includes a production forecasts of approximately 250,000 oz of gold in 2026, and approximately 330,000 oz of gold in 2027 and have a average annual growth production for the initial. Full 6 years of operation of approximately 300,000 Oz, based only on existing mineral resources.
William Lytle: Mining of the Umwelt open pit commenced ahead of schedule with full ramp up achieved during Q2 2025. Development of the Umwelt underground continued, including development of the fresh air areas one and two to support stope ore production in Q4 2025. Continued dewatering of the future site of the Llama pit. Commissioning of three large glycol heating systems. Excavation and construction of foundation for the Arctic corridor for the camp, and construction of mechanically stabilized earth wall for the reclaim tunnel. In Mali, the site continues its strong performance in 2025, exceeding gold production expectations again in Q3. Cash costs per ounce were also lower than expected. Of note, Fekola Underground is also performing above expectations despite operations commencing earlier in Q3 on 30 July 2025.
Significant construction activities for the first 9 months of 2025 included, completion of the mining. In the Echo pit, and commissioning of the pit as a psf to include the construction of the winter. Deposition infrastructure.
Mining of the unwell. Open pit commissioned ahead of schedule with full ramp up achieve during the second quarter of 2025.
Uh development of the unwell underground continued including development of the fresh air as 1 and 2 to support Stoke or production in the fourth quarter of 2025.
Continued dewatering of the future site of the Llama pit.
Commissioning of 3, large glycol heating systems.
Excavation and Contra construction of foundation for the Arctic Corridor for the camp.
And construction of mechanically mechanically stabilized Earth wall to the reclaimed tunnel.
In Mali, the site continues, its strong performance in 2025 exceeding, gold production expectations again in the third quarter, cash costs per rounds were also lower than expected.
A note to call the underground, is also performing above expectations, despite operations, commencing earlier in Q3 on July 3025.
William Lytle: At Masbate, the operation continues to perform well with a world-class safety record. Mine throughput has significantly outperformed expectations in 2025, and we anticipate consistent production in Q4. At Otjikoto, open pit and underground mining went very well in Q3, with production also exceeding expectations. During Q3, the company approved a development decision for the Antelope Deposit. The company has also completed further optimization and believes pre-production capital costs can reduce from $129 million estimate in the PA to $105 million. Production from the Antelope has the potential to increase Otjikoto Mine gold production to approximately 110,000 ounces over the life of the Antelope underground mine. With that, I'll turn it back over to Clive for an intro to Q&A.
At mbody, the operation continues to form well with a world-class safety record, mind throughput and significantly outperformed expectations in 2025 and we anticipate consistent production in the fourth quarter.
At ochotto open pit and underground mining went very well in the third quarter with production. Also exceeding expectations.
During the third quarter of the company, we approved the development decision for the Antelope deposit. The company also completed further round optimization and believes pre-production capital costs can reduce from the $1.129 billion estimate in the PA to $105 million.
Production from the antelope. Has the potential to increase ocotal mine. Gold production to approximately 110,000 ounces over the life of the annual underground mine.
With that, I'll turn it back over to Quiet for an intro to Q&A.
Clive Johnson: Thanks, Bill. Operator, we're ready for Q&A.
Thanks Phil operator. We're ready for the Q&A.
Operator: Thank you. We will now begin the analyst question-and-answer session. The first question comes from Ovais Habib with Scotiabank. Please go ahead.
Begin the analyst question and answer session to join the question queue. You may press star then 1 on your telephone keypad, you will hear a tone acknowledging your request. If you're using a speaker-phone, please pick up your handset before pressing any keys.
Enjoy your question, please. Press star. Then 2
The first question comes from oasis with kosha bank. Please go ahead.
Ovais Habib: Thanks, operator. Good morning, Clive and B2Gold team. Congrats on a good quarter. Couple of questions from me, just starting off with Fekola. Fekola Underground seems to be ramping up really well. What are the kind of grades you're expecting going to 2026? Is there a target that you have in mind in terms of ore tons mined and kind of grade on the Fekola Underground?
Thanks operator. Uh, good morning, Clive and meet your team. Uh, congrats on a good quarter. Uh, couple of questions from me, uh, just starting off with the cola. The cola underground seems to be ramping up really well. Um, what are kind of grades, You're Expecting going to 2026? And is there a Target that you have in mind in terms of 4 times, mind and kind of grade, uh, on on the FICO Underground?
Clive Johnson: Bill.
William Lytle: Yeah, I don't have what the exact grade is, but I think we were targeting about four and a half grams is what I remember. Four and a half grams and a throughput of about 1,500 tons a day. You can do the math on what it's gonna be. It's something like that. Remember, those are replacement ounces of low grade.
No. Yeah I don't have what the exact for is. I think we were targeting about 4 and a half grams is what I remember.
4 and a half grams in a throughput of about 1500 tons a day. So you can do the math on on what it's going to be. It's something like that. And remember, those are replacement, oz of of low grade.
Ovais Habib: Bill, thanks for that. Bill, in terms of, you know, the development grade and, you know, development grades into Fekola Underground, is that all progressing well and confident in terms of what you guys are gonna be producing in 2026 then?
William Lytle: Absolutely. The contractor is Byrnecut, the same contractor we've had in Namibia. Very good relationship, the development is actually been on or ahead of schedule really the whole way.
And and and Bill, thanks for that. And and Bill in terms of, you know, the development rate and you know, development rates in into FICO underground is is that all progressing? Well and and kind of confident in terms of what you guys are going to be producing in 2026 then
Absolutely. So, with the contractor, we cut the same contract. The contract we've had in Namibia has fostered very good relationships, and the development is actually on schedule, really the whole way.
Ovais Habib: Good stuff. Then just moving on quickly to Fekola regional permit. I know we are expecting the permit, you know, by the end of 2025. In terms of, you know, any sort of pre-development or anything that you guys can do prior to that, or basically, you guys are just ready as soon as the permit comes in, you just start pre-stripping and then start bringing the ore?
Good stuff. Um, and then just moving on quickly to pecola Regional permit. I know we are expecting the permit, uh, you know, by the end of 2025. Um, in terms of, you know, any sort of pre development or anything that you guys can do prior to that or basically, you guys are just ready. As soon as the permit comes in, you just start pre-, stripping, and then bring start bringing the
William Lytle: We are, in fact, pre-stripping some. We've been given approval to go out and do some clearing and grubbing, so all of that is happening. Obviously, we're hiring people, getting the equipment. Really, we're putting a little bit of money at risk knowing that everything we've been told that this permit is coming.
Order we are, in fact, free stripping, some we've been given approval to go out and do some clearing and grubbing. So, all of that is happening. Uh, we're obviously, we're hiring people getting the equipment. So, really, we're putting a little bit of money at risk, knowing that everything we've been told that this permit is coming.
Ovais Habib: Got it. Thanks for that. Then just moving quickly to Goose. Underground grade seems to be picking up, as kind of we're going into Q4. Are development rates also picking up as well? Again, I think, you know, this is kind of a question that has come up in other mining operations as well. Do you have the right people and kind of equipment in place right now?
Got it. Thanks for that. Um, and then just moving quickly to Goose, um, underground grid seems to be picking up as we're going into Q4. Um, our development rates are also picking up as well. Um, and again, I think, you know, this is kind of a question that has come up in other...
Planning operations as well. Do you have the right people and kind of equipment in place right now?
William Lytle: Yeah. We have the right people for sure. Remember, this is remote mining, remote stope mining, so it is a specialized skill. We do have the right people on site now, and we see that it will be coming up as planned.
Yeah we we have the right people for sure. Remember uh this is remote mining remote stove mining. Uh so it is a specialized skill and uh we do have the right people on site now and uh we see that that it will be coming up as
Ovais Habib: Okay. Thanks for that. That's it from me, guys. Thanks.
Planned. Okay, thanks for that. That's it. From me guys. Thanks.
Clive Johnson: Thanks, Luis.
Thanks Louise.
Operator: The next question comes from Anita Soni with CIBC World Markets. Please go ahead.
Anita Soni: Hi. Good morning, Clive and Bill. I just wanted to ask a few questions on Goose. I just wanted to understand the key drivers of the cost increase into, you know, obviously, sorry, into Q4. Like, obviously, you know, there is lower tons are going to be pushed and that is going to impact the numbers. How do you expect that to evolve into next year? I mean, you maintain the production guide for next year, so I am just trying to get an understanding on, you know, what we should be thinking about on costs. Are they going to be, you know, as indicated previously, or will there will be some impact?
The next question comes from Anita Sony, the CIBC World Market. Please go ahead.
Hi. Good morning, uh, Clyde and, um, bill, I, I just want to ask a few questions on goose and, um, I just wanted to understand, um, the key drivers of the, uh, cost increase um, in into, you know, obviously sorry at, um, into the fourth quarter. Um,
Like obviously, you know, there's top lower times are going to be pushed and and that's going to impact the the numbers. But how do you expect that to evolve into next year? I mean, you maintain the production guide for next year. So I'm just trying to get an understanding on, you know what, what we should be thinking about on costs. Are they going to be, you know, as indicated previously, or, or will there be some impact?
Mike Cinnamond: Well-
Mike Cinnamond: Well, again, it's Mike. Just on the cost, Anita, for the Q4, we guided up the per-ounce costs are a little higher, you're right, than we had before. We've locked the production costs that were in the budget for Q4 there, but we re-guided down the ounces to 45,000 ounces just on the basis that we were a little later getting into the higher grade stopes and the total production for the Q4. I don't think those are reflective of the cost going forward. This is just a function of the continued wrap-up.
Well, I can so uh, it's Mike, it's just on on the cost of need it um for for the fourth quarter. Uh we got it at the, the per ounce costs are a little higher. You're right than they than we had before. Um, we've lost the production costs that were in the budget for Q4 there. But we regulated down the answers uh, to 45,000 Oz just on the basis that we were a little later getting into the higher grade stoves, and the total production.
Mike Cinnamond: On the cost as we look forward, you know, the $250,000 that Bill was talking about and beyond, into the later years of the mine life, we don't have any change to those right now. We're doing the budget for next year, and also an updated sort of updated, like, mine case as well that we're looking at. I think we don't have anything new to put out on those at this point. Certainly the key message is these Q4 ones are wrap up ounces, so don't. The cost related to those shouldn't be extrapolated into anything in the future. You know, we've tried to be relatively conservative in that guidance.
To, to put out on those at this point. But certainly,
The, the key message is these, these Q4 ones are ramped up bounces. So, don't the cost related to those
Mike Cinnamond: We've had to re-guide Goose down just for Q4, we've tried to be conservative in that guidance, give a chance to meet or even beat it for Q4.
Shouldn't be extrapolated into anything in the future, you know, and, and we've tried to be relatively conservative, in that guidance. We've had to Riu boost down just for the fourth person. We've tried to be conservative. And that guidance, give her a chance to, to meet her. You need it for the queue.
Anita Soni: Okay. sorry, Bill, could you just give me an idea of what's actually going on with the delay, you know, accessing Umwelt? Like, what was the reason for the delay?
Okay, um, I'm sorry. Could you just build? Could you just give a um, give me an idea of what's actually going on with the delay, um, you know, accessing on.
Well like what what was the reason for the delay?
William Lytle: The reason for the delay was lack of equipment parts for Sandvik and then operators to run it. It's one of those things that you assume in Canada these things come on a very set schedule, and it just didn't happen. We have rectified the situation. We do have the people on site now, and we do have the appropriate drilling media. It's been solved.
the reason for the delay was, um,
Anita Soni: Okay. All right. Thank you. That's it for my questions.
Lack of equipment parts for sanvic and then operators to run it. So, um, it's 1 of those things you assume in Canada. These things. Come on a very set schedule and it just didn't happen. And so, we have rectified the situation. We do have the people on site now and we do have the appropriate drilling uh, media. So it's been solved.
Okay, all right. Thank you. That's it. For my questions.
Mike Cinnamond: Thanks.
Thanks.
Operator: The next question comes from Don DeMarco with National Bank. Please go ahead.
The next question comes from Don DeMarco with National Banks, please go ahead.
Don DeMarco: Thank you, operator, and good morning, Clive and team. Thank you for taking my question. Maybe first off at Goose, you're looking at some different options regarding the crushing optimization, the crushing. Among the options that you're considering, we look forward to the results of your report and so on, but what's the potential magnitude of, you know, these range of solutions just to get away from that mobile crushing?
Thank you, operator. And uh good morning Clive and team, thank you for taking my question. Um maybe first off at at Goose, you looking at some different options regarding the crushing optimization of the crushing
Um, among the options that you're you're considering we look forward to the results of your report and so on. But what, what's the potential magnitude of, you know, these range of solutions, just to get away from that mobile crushing,
William Lytle: Yeah, we talked before.
Don DeMarco: In terms of the capital spend and stuff like that.
William Lytle: Yeah. We talked before. Remember, the initial one, when we were in Denver, was the concept of really kind of a very small change. Obviously, we disappointed on it, we've got a third-party consultant coming in that'll deliver a report in December. I really don't want to, once again, tell you a number then have to walk it back. It's still a small magnitude compared to fixing it and getting a throughput.
Stuff like that. Yeah, so we talked before. Remember the the initial 1 when we were in Denver was the concept of really kind of a very small change. Um, obviously,
Don DeMarco: Okay. I guess, like, whatever you decide, I mean, you got the sealift coming up and decisions to be made to kind of sequence with that, and you'd have things on the ground as needed, I would imagine.
Um, we did, we've disappointed on it and so we've got a third party consultant coming in that will deliver a report in December, so I really don't want to once again, tell you a number and then have to walk it back. Um, but it it's still a small magnitude compared to uh fixing it and getting a throughput.
Okay.
William Lytle: That's correct.
And I guess like whatever you decide. I mean you got the uh sea lift coming up and decisions would be made to kind of sequence with that. And you'd have things on the ground as needed. I would imagine
That's correct.
Don DeMarco: Okay. Okay, in Mali, the regional permits, we're looking forward to year-end to have them. You know, the timeframe for getting these permits has been somewhat fluid. What are the reasons behind that? I mean, you know, you guys have a good line of communication with the government. You've been out there a number of times. Is it, you know, a different priority for the government? I mean, from your point of view, what's the reason for the pushing back the schedule multiple times?
Um okay so in Mali the regional permits we're looking forward to year end to have them you know the time frame for getting these permits has been somewhat fluid. Um,
What what are the reasons behind that? I mean, you know, you guys have a good line of communication with the government, you've been out there. A number of times is it uh, you know, a different priority for the government. I mean, from your point of view, what what's the the reason for the pushing back to schedule multiple times?
Mike Cinnamond: Well, I think we're in the bureaucracy of Mali in terms of winding its way through various approval levels. Our understanding most recently is that we're in the final stages of approval, and we expect that definitely before the end of the year and maybe quite imminently.
Well, I think we're in the bureaucracy of Molly, in terms of winding its way through various approval. That was our understanding most recently as it is during the final stages of approval. And we expect that, um, definitely before the end of the year and and may be quite imminently.
Don DeMarco: Okay. Well, we'll look forward to that. Yeah, I've seen the report too that you're gonna start right away with the stripping once you get that and, other prep work and, you know, production reflected in guidance next year. That's all for me. Thank you.
Clive Johnson: Yeah. Bill said we've already started some prep work on site. Thanks, Tom.
Okay, well we'll look forward to that and then but yeah I see in the report too that you're going to start right away with the stripping once you get that and and other prep work and uh look forward to seeing all that uh you know, production reflected and guidance next year. So that's all for me. Thank you.
Don't say we already already started some prep work.
looks like,
Next up.
Operator: Once again, if any analyst has questions, please press star then one. The next question comes from Carey MacRury with Canaccord Genuity. Please go ahead.
Once again, it's any analysts have questions. Please press star. Then 1, the next question comes from Carrie McCurry, with Kenya coordinator, please go ahead.
Carey MacRury: Good morning. Maybe a question for Mike. You drew down $200 million last quarter, and I see you've paid off $50 million. Do you anticipate needing to use the credit facility as you go through these prepaid payments?
Good morning, maybe a question for Mike. Um, you drew down 200 million last quarter and I see you've paid off 50 million. Um, do you anticipate needing to use the credit facility as you go through these prepaid tables?
Mike Cinnamond: I think you'll see, as like you said, I think if gold prices stay where we see them right now for Q4, then we expect that we'll have paid down a substantial part of that line, if not all of it, by year-end. I think you'll see us utilize it a little bit as we move through Q1 and Q2, just to manage the timing of the prepaid deliveries and the fact that, you know, we already got the cash for those. After that, it the line will be repaid, and it's off to the races. I think we'll use it to temporary inter-quarter thing, and it's a relatively small draws. Then as we move forward, we're into these cashflow harvest years.
I think you'll see us like you said, I I think if, if the, if gold prices stay where we see them right now, for the fourth quarter, then we expect that we'll pay down substantial part of that line. If not all of it by year end, I think you'll see as you utilize it a little bit as we move through, q1 and Q2 just to manage the, the timing of the prepaid deliveries and the fact that, you know, we already got the cash for those but after that it it the line will be repaid and that's Off to the Races. So I think we'll use it to Temporary inter quarter thing and it's a relatively small drawers. And and then, as we move forward, we're into these cash cash flow Harvesters.
Carey MacRury: Just maybe on CapEx at Goose. I mean, Q3 CapEx seemed a bit higher than what we were expecting. Maybe that's just seasonality in Nunavut. Any guidance on what we should be expecting for growth capital at Goose for Q4?
Mike Cinnamond: Yeah. Yeah. I'd say if you look at the budget that we put out for H2, it was $176 million. We didn't give a split, but it was heavily weighted to Q3, so the budget was roughly $130 for Q3 and then $40, $45, $46 for Q4. In Q3, the recorded CapEx in the financials was $157, but that includes We ended up capitalizing a bunch of site general costs and commissioning costs just 'cause of the timing of the ramp-up, which they were budgeted as operating costs. We ended up capitalizing them, so they flow through the CapEx line. Like for like, the hard assets in the budget, we were $120 versus the budget of $131, plus these site G&A costs.
Goes for Q4.
Yeah. So I'd say if you look at the the budget that we put up for half to was 176 million and we didn't give a split but it it was heavily weighted to Q3. So the budget was um roughly 130 for Q3 and then 40 4546 for uh, Q4. So in Q3 the recorded capex and the financials is 157. But that includes we we ended up capitalizing a bunch of sight general costs and commissioning costs just because of the timing of the ramp up, uh, which are they were budgeted as operating costs.
Mike Cinnamond: On a capital front, the pure CapEx front that we budgeted, we're pretty much on budget. Q4, we did add $50 million to Goose's capital budget, so it's gone from 45 to 60. That really is to factor in There's still quite a few folks on site that are gradually being wound down, but there's a few more people on site than we thought for a little longer, so we added that 15 in. The way to think about Q3 is if you look at the capital and operating costs, we were pretty much right on budget. It's just the split, how we ended up. We capitalized some of the site G&A and some of the commissioning costs that we didn't expect. That was just a reallocation of costs, but from two areas of the budget.
And so but we ended up capitalizing them so they flow through the capex line like for like the hard assets that in the budget. Um, we were 120 versus the budget of 131 plus these sight DNA costs.
So, on a capital front, the pure CapEx front that, you know, we budgeted.
We're pretty much on budget. Uh, Q4 we did add 15 million to Goose's capital budget. So it's it's gone from 45 to 60 and that really is to factor in some there's still quite a few folks on site that are gradually being wound down but they're a few more people on site than we thought for a little longer. So we added that 15 in. So the way to think about Q3 is if you look at the capital and operating costs, we were pretty much right on budget. It's just to what how we ended up we capitalize? Some of the site GNA and some of the commissioning costs that we didn't expect
Mike Cinnamond: Q4, yeah, add in $15 for CapEx for Q4. It goes from $45 to $60.
That was just a reallocation of cost from 2 are the budget and then Q4 yeah, add in 15 for capex for Q4. So goes from 45 to 60.
Carey MacRury: Okay. That's helpful. Thanks, Mike.
That's helpful. Thanks. Mike.
Operator: This concludes the question and answer session. I would like to turn the conference back over to Clive Johnson for any closing remarks. Please go ahead.
This concludes the question and answer session. I would like to turn the conference back over to Clyde Johnson for any closing remarks. Please go ahead.
Clive Johnson: Okay. Thanks, operator. As we said at the outset, a strong quarter operationally and financially, and we look forward to progressing ramp-up at Goose and continuing our strong performance at the other operations. If you have any follow-up questions, feel free to reach out to Michael McDonald, and he can put you in touch with the right party to answer your questions. Thanks for joining us today.
Okay. Thanks operator. As we said in the outset of storm, quarter operation of financially, then we look forward to progressing ramp up at goose and continue. Our strong performance at the other operations. So if you have any follow-up questions, feel free to reach out to Michael McDonald and you can put you in touch with with the right party to answer your questions. So, thanks for joining us today.
Operator: This brings to an end today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.
This brings to an end today's conference call, you may disconnect your line, thank you for participating and have a pleasant day.