• Adjusted Earnings Per Share (EPS): $0.02 per share, impacted by a $30 million tax accrual.
• Operating Cash Flow: $118 million before working capital adjustments for the quarter.
• Cash and Cash Equivalents: $431 million at the end of the third quarter.
• Credit Facility Capacity: $0.5 billion additional capacity with a $100 million accordion feature.
• Construction and Mine Development Spending: CAD165 million during Q3.
• Working Capital Buildup: CAD150 million, mainly due to diesel purchases for the 2025 winter ice road.

• Warning! GuruFocus has detected 7 Warning Signs with BTG.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• B2Gold Corp (BTG) reported strong financial results for Q3 2024, with operating cash flow before working capital adjustments at $118 million.
• The company completed a significant Memorandum of Understanding (MOU) with the state of Mali, allowing for future economic and governance parameters of the Fekola complex.
• Masbate and Otjikoto mines continue to meet or exceed budget expectations, contributing positively to the company's overall performance.
• The Goose project construction is on track to deliver first gold production in Q2 2025, with significant progress made in the third quarter.
• B2Gold Corp (BTG) maintains a strong financial position with $431 million in cash and cash equivalents and substantial credit facility capacity.

Negative Points

• Fekola mine experienced a weaker quarter due to a delay in receiving a replacement excavator, impacting production.
• The company's adjusted earnings were negatively impacted by a one-time $30 million tax accrual related to the MOU with the state of Mali.
• Basic earnings per share were affected by a non-cash write-down of the Back River Gold District due to capital cost increases.
• The company expects to come in at the low end of its revised production guidance range and at the upper end of its cash cost and all-in sustaining cost guidance.
• There are outstanding payments related to the Mali operations, including a significant dividend payment expected by the end of the year.

Q & A Highlights

Q: Could you provide an update on the impact of equipment issues and weather on Fekola's Q4 performance and whether it aligns with the revised guidance? A: William Lytle, COO, explained that the loss of an excavator delayed development into Phase 7 of the open pit. While grades will increase somewhat, the full impact won't be seen in Q4. The performance is still within the revised guidance range.

Q: Was the Q3 outperformance at Masbate and Otjikoto a one-off, or can it extend into Q4? A: William Lytle, COO, noted that Masbate's performance depends on material from pits, and while outperformance is possible, they are projecting results in line with expectations for Q4. Otjikoto is also expected to meet original projections.

Q: Can you update us on the outstanding payments related to Mali and the timeline for these payments? A: Michael Cinnamond, CFO, stated that a first tranche payment of $16 million was made, followed by a $42 million tax settlement in October. The remaining payments include a $114 million dividend expected this month and a $30 million final settlement by year-end.

Q: What is the capital allocation strategy post-Goose ramp-up, considering higher free cash flow? A: Michael Cinnamond, CFO, emphasized completing Goose and managing prepaids. If Gramalote's feasibility study is positive, it could align with available cash flows for development. Clive Johnson, CEO, added that Gramalote could add significant production growth.

Q: Can you provide more detail on Fekola Regional's timeline and early 2025 milestones? A: William Lytle, COO, mentioned that infrastructure is already in place, and pre-stripping could start in Q1 2025 if permits are received by year-end. Clive Johnson, CEO, highlighted alignment with the government to fast-track permitting.

Q: How is exploration progressing in Mali and around Goose, and will it ramp up in 2025? A: Victor King, SVP of Exploration, indicated increased exploration budgets, especially at Goose, with successful summer programs identifying new targets. In Mali, exploration will focus on high-grade sulfide targets at Fekola Regional.

Q: What is the current status of the Goose underground infill drill program and its impact on resource confidence? A: Victor King, SVP of Exploration, reported improved geological understanding and modeling, with trends toward higher grades and lower tonnages. The resource update will be included in the AIF next year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.