Q3 2025 B2gold Corp Earnings Call
Thank you for standing by. This is the conference operator. Welcome to B2. Go corporation's, third quarter, 2025 Financial results conference call.
As a reminder, all participants are in listen. Only mode in the conference is being recorded after the presentation. There will be an opportunity for analysts to ask questions.
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I would now like to turn the conference over to Clyde Johnson president and CEO of B2 gold, please go ahead.
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 3 quarter of 2025
Um, please, we have a strong operational and financial quarter. If you call them as spending no Minds Walk, I mean they have expectations in the third quarter. On the production side result in lower than expected cash, operating costs per rounds.
On October 2nd of this year, we announced we achieved commercial production by our newly constructed Goose mine.
This 1 also comes just 3 months after the inaugural Google. We look forward to many years successful operations in none of it in close collaboration with our partner with our partners at continuity of Inuit Association.
1 World underground. We are now in the higher grade.
To ensure consistent feed of crush doors in the middle of the company is implemented. The use of supplemental mobile crushing capacity.
Permanent modification and modification 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 a strong contributor to high grade order and do so by the next week,
The media be will announce construction decision on the antelope underground deposit production from analysis and potential to increase. So you put a mold production
leveraging with low cost platform and extend the life of the Mind into the 2030s.
This strong gold price environment being to go as well positioned to take advantage of 1 of the annual gold production of approximately 1 million Oz this year with growth grow growth Capital spending accused. Now complete the company is set up well to have 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.
um, we've had some
News come out that I think what I think are some years multiple headlines from some of the media talking about those imminent that the terrorists were organization is going to take over bamako in the country of Mali. We think that is completely erroneous and this is a great exaggeration of the situation. Yes, there have been some fuel, um, fuel challenges, particularly in bamako
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 balogh.
We look at the situation that the government still enjoys popular support from the population.
and then they see, the these organizations that are
Coming off fuel to battle CO as as foreigners, this is not the battle of the people of Valley from for our understanding of from the intelligence that we have received. So operations can continue. It's nice to see some support from other governments, the United States and others. The US came out and posted on this order of Molly 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 Gatherings. 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.
Mining attorney who works as a polo know, that's evidence that we received not that long ago, the permanent to go to government 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 assert, the, the value would be too cold with the benefit of time. I think we'll see that. Um,
That this is the situation, not impacting, the mind with that, I'll hand it over to Mike to give us a financial summary of the quarter.
Uh, thanks guys. Uh, as as said the 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 of adjusted earnings. And clearly, you can see that benefiting from the strong average goal sales price that we saw in the queue on the pain and continues now.
Um, the company recorded revenue of approximately 783 million Q3 and it that included 144 million related to the delivery of
Just over 66,000 Oz.
Uh, under the company's gold prepay obligations. And by the end of October, um, we we we had another uh, delivery into those obligations. So we've now delivered into 1/3 of what we owe there, and that leaves us just under 200,000 Oz that we'll need to deliver into by the end of June. So in good shape there.
Um, operating cash, flows total 171 million in the third quarter and or the 4, working capital adjustments 180 million which is another strong result. And it highlights the continuing cash generating potential of R assets and and the strong goal price environment.
Uh, timing differences, that we have species, we deliver into the prepaids. Um,
So we'll continue to do that, but with these gold prices, we expect, we pay some or all of it by the year end.
So I'd 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 health, the 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 on the financial sections and with that. Um, I'll turn it over to bill um for an operation of project update.
All right. Thanks Mike.
so at Goose having 2 commercial Productions,
The focus now moves to city state, operations and consistent performance at names lake capacity.
We've identified.
The source of the crushing issues that impact the performance early in Q3, and it'll make the temporary effects of 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 25.
Use of the mobile Crushers expected to continue until the modifications are implemented.
Due to the shortfall of the crushing capacity and temperature, delays and accessing a higher grade War at home weld underground E2. Gold has revised his 2025 gold production, guidance for the goose, mine down, to between 50 and 80,000 Oz.
Underground mining.
Um,
Underground mining of the deposit commenced in late, October 25th, 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, gold production, gold production, estimates of the goose mine, which includes the production forecasts of approximately 250,000 oz of gold in 2026, and approximately 330,000 oz of gold in 2027 and average, average annual gold production for the initial full 6 years of operation of approximately 300,000 Oz, 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 tsf to include the construction of the winter. Deposition infrastructure.
Mining of the unwell. Open pit commissioned ahead of schedule with full ramp up achieved during the second quarter of 2025.
Uh development of the unwell underground continued including development of fresh air is 1 and 2 is 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 construction of foundation for the Arctic Corridor for the camp.
And construction of mechanically mechanically stabilized Earth wall to the reclaime tunnel.
In Mali, the site continues, its strong performance in 2025 exceeding, gold production expectations again in the third quarter, cash costs per ounce were also lower than expected.
Of note.
The cola underground is also performing above expectations, despite operations, commencing earlier in Q3 on July 30th 2025.
At Mas body, the operation continues to form. Well, with the world class. Thanks safety, record, mind, throughput and significantly outperformed, expectations in 2025, and we anticipate consistent production in the fourth quarter.
At Ochoo, open pit and underground mining went very well in the third quarter, with production also exceeding expectations.
During the third quarter of the company approved, the development decision for the antelope deposit. The company has also completed further authorization and believes pre-production. Capital costs can reduce from 129 million asset in the PA to 105 million.
Production from the antelope, has the potential to increase. Okkoto 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 KO for an intro to Q&A.
Thanks, Phil operator. We're ready for Q&A.
Thank you. We will now 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 speakerphone, please pick up your handset before pressing any keys.
Enjoy your question, please. Press star then to.
The first question comes from always it's kosha Bank. Please go ahead.
2026. And is there a target that you have in mind in terms of Orton's mind and kind of great on the FICO Underground?
No. Yeah I don't have what the exact 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 1,500, 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.
And and, and build, thanks for that. And and Bill in terms of, you know, the development rate and, you know, development rates in into focal underground is, 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 it's the contractor is burn, cut the same contract. Contract we've had in Namibia, very good relationships and the development is hit is actually been on or ahead of schedule, really the whole way.
Good stuff. Um, and then just moving on quickly to Piccolo 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
We are, in fact, restring Subs. We've been given approval to go out and do some clearing and grubbing. So, all of that is happening, uh, 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.
Got it. Thanks for that. Um, and then just moving quickly to Goose, um, underground greed seems to be picking up. Um, as kind of, we're going into Q4, um, our development rates also picking up as well. Um, and again, I think, you know, this is going to 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?
Yeah we we have the right people for sure. Remember uh this is remote mining remote stove mining. 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
Planned. Okay, thanks for that. That's it. From me guys. Thanks.
Thanks.
The next question.
Please go ahead.
Hi, good morning, uh, Clive. 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 ton 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?
My question. Well again, so uh it's Mike it's just on on the cost Anita um for for the fourth quarter that we got it up 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 we guide it down the answers. Uh to 45,000 Oz just on the basis, that we are a little later getting into the higher grade, Stokes, and the total production for the queue. So I don't think those are reflective of the cost going forward. This is just a function of the, the continued wrap up. Um, and then on the, on the cost, as we look forward, you know, the 250,000 that bill was talking about Beyond, uh, into the later years of the Mind life. Um, we don't have any change to those right now, we're doing the budget for for next year and then also an updated sort of uptight like mind case as well, if we're looking at. So I think we don't have anything, uh, new
To, to put out on those at this point. But certainly,
the, the key message is these, these Q4 ones are ramped up ounces, so the, the cost related to those
Shouldn't be extrapolated into anything in the future, you know, and we’ve tried to be relatively conservative in that guidance. We’ve had to reduce the guidance down just for the fourth quarter. We’ve tried to be conservative, and that guidance gives her a chance to meet her needs for the queue.
Okay, um, and sorry. Could you just build? Can you just give a um give me the idea of what's actually going on with the delay, um, you know, access
Well like what what was the reason for the delay?
the reason for the delay was, um,
Lack of equipment parts for sanvic and then operators to run it. So um, it's 1 of those things that 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.
Thanks.
The next question comes from Don DeMarco with National Bank, please go ahead.
Thank you, operator. And, uh, good morning Clive and team. Thank you for taking my question. Um, maybe first off, at Goose, you're 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,
Stuff like that. Of course. 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, um, we did, we've disappointed on it. And so, we've got a third party consultant coming in. That'll 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.
And I guess like whatever you decide. I mean, you got the uh, sea lift 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
That's correct.
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 the the reason for the pushing back the schedule multiple times?
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 maybe quite an imminently.
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, just go said, we've already already started some prep work.
Close.
S.
Once again, it's any analysts have questions. Please press star. Then 1, the next question comes from Karen McCurry with kenui. Please go ahead.
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?
I think you'll see us, like you said. I think if the...
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 into quarter thing and it's a relatively small drawers and and then as we move forward, we're into these cash cash flow Harvesters.
And then just maybe on capex at Goose. I mean, Q3 capex seemed a bit higher than what we were expecting. Maybe that's just seasonality, and none of it. But any guidance on what we should be expecting for growth Capital at um, at Goose for Q4.
Yeah. So I I'd say if you look at the the budget that we put up for have to, it 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 end 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.
For the hard assets that are in the budget, we were $120 million versus the budget of $131 million, plus these site G&A costs.
so on a, on a capital front, the pure capex front that, you know, we, 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 split how we ended up we capitalize some of the site GNA and some of the commissioning costs that we didn't expect.
But that was just a reallocation of cost, but from 2 areas of the budget and then Q4, yeah, add in 15 for capex for Q4. So go from 45 to 60.
That's helpful. Thanks. Mike.
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.
Next operator, as we said in the outset of storm, quarter operation of financially, then we look forward to progressing ramp up at goose and continuing, 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 question. So thanks for joining us today.
This brings to an end today's conference call, you may disconnect your lines. Thank you for participating and have a pleasant day.