Core Insights - B2Gold's recent financial results show a revenue miss, earnings miss, and increased all-in sustaining costs (AISC), which may initially appear disappointing [1] - However, a closer examination reveals that the Fekola, Masbate, and Otjikoto mines exceeded production expectations, indicating potential underlying strengths [1] Company Analysis - The company operates several mines, including Fekola, Masbate, and Otjikoto, which have demonstrated better-than-expected production levels [1] - Despite the overall financial misses, the production performance of these mines suggests resilience and potential for future growth [1] Investment Perspective - Mountain Valley Value Investments focuses on identifying undervalued companies with strong growth potential, emphasizing long-term value and disciplined research [1] - The investment philosophy includes leveraging deep industry insights to uncover opportunities that may yield strong returns over time [1]

Core Insights - B2Gold Corp (BTG) reported adjusted earnings per share (EPS) of 10 cents for Q2 2025, missing the Zacks Consensus Estimate of 15 cents, but showing improvement from 6 cents in the prior-year quarter [1] - The company generated revenues of $692 million in Q2 2025, a 40% increase from $493 million in the prior-year quarter [8] - Consolidated gold production reached 229,454 ounces, up 12.3% year over year, exceeding the company's expectations [2] Financial Performance - B2Gold's consolidated cash operating costs were $798 per ounce, down 4.9% year over year, while all-in sustaining costs rose 36.8% to $1,721 per ounce [3] - The total cost of sales increased by 22% year over year to $341 million, with gross profit rising 34.8% to $351 million, resulting in a gross margin of 50.8%, up from 43.3% [4] - Operating income for the quarter was $329.5 million, significantly higher than $31 million in the prior-year quarter [4] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of Q2 2025 were $308 million, down from $337 million at the end of 2024, while cash generated from operating activities was $255 million compared to $62 million in the year-ago quarter [5] - Long-term debt decreased to approximately $411 million from $421 million at the end of 2024 [5] Production Guidance - B2Gold is on track to meet its total gold production guidance of 970,000-1,075,000 ounces for 2025, following a production of 804,778 ounces in 2024 [6] Stock Performance - B2Gold's shares have increased by 61.7% over the past year, outperforming the industry average increase of 59.9% [7]

Financial Data and Key Metrics Changes - The company reported basic earnings per share of 12¢, with adjusted earnings also at 12¢ per share, benefiting from a strong average gold sales price [8][9] - Operating cash flow before working capital adjustments was $301 million, highlighting the cash generation potential of the operating assets [9] - Cash and cash equivalents stood at $308 million at the end of the second quarter, with an undrawn revolving credit facility of $800 million [10][11] - Consolidated cash cost guidance for three operations was reduced to between $740 and $800 per ounce, down from a previous range of $835 to $895 per ounce [12] Business Line Data and Key Metrics Changes - The Goose mine is expected to ramp up to commercial production by September 2025, with a focus on optimizing operations and increasing throughput [15][23] - The Fekola mine exceeded gold production expectations, with cash costs per ounce also lower than anticipated [17][21] - The Masbate operation maintained a strong performance with a world-class safety record, achieving over 2,400 days without a lost time incident [21] Market Data and Key Metrics Changes - The company noted lower than anticipated fuel costs, with HFO prices about 9% lower and diesel prices approximately 13% below initial budget estimates [26][27] - The Fekola mill celebrated a milestone of 4 million ounces of gold produced since the project's inception [21] Company Strategy and Development Direction - The company aims to meet its production guidance for 2025, expecting full-year production between 971,000 and 1,075,000 ounces [11] - The Gramalote project feasibility study showed a meaningful production profile and positive economic outlook, with work on a modification of the work plan and environmental impact study underway [6][23] - The company is interested in expanding its operations in Canada while maintaining a focus on asset quality and geopolitical diversification [66][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting annual guidance and highlighted strong operational performance across all sites [4][11] - The management team noted constructive discussions with the government of Mali regarding permits, indicating a commitment to expedite the approval process [33][79] - The company remains optimistic about the future, citing strong cash generation potential and ongoing exploration programs to extend mine life [13][99] Other Important Information - The company has drawn down $200 million from its revolving credit facility to manage working capital requirements related to gold prepayment commitments [11] - The ramp-up of the Goose mine is progressing well, with major construction activities nearly completed [14][15] Q&A Session Summary Question: Can you discuss the lower than anticipated fuel costs? - Management explained that fuel costs were lower than expected due to HFO prices being about 9% lower and diesel prices around 13% below initial estimates [26][27] Question: What is the CapEx guidance for the second half of the year? - The company indicated that the second half CapEx guidance of $176 million reflects some acceleration of costs and additional upgrades to the mill [28][29] Question: What is the status of the Secola regional permit? - Management reported constructive discussions with the Ministry of Mines and expressed optimism about obtaining the permit by the end of Q3 [33][34] Question: How is the ramp-up of Goose progressing? - The company noted that both plant performance and grade profile could contribute to outperforming the outlined plan for Goose [35][36] Question: What is the definition of commercial production? - The company defined commercial production as achieving an average of 65% nameplate throughput over thirty days [56][57] Question: What are the expectations for underground production at Fekola? - Management targets about 50,000 ounces per year from the underground, with current stockpiles at approximately 35,000 ounces at a grade of 2.7 grams per ton [48][49] Question: What is the outlook for the Gramalote project? - The company is optimistic about the Gramalote project, citing a positive feasibility study and strong economics, with plans to move forward post-permitting [101][102]

Group 1 - B2Gold Corp. (BTG) is identified as an attractive investment opportunity due to its strong fundamentals and clear growth drivers [1] - The current valuation of B2Gold appears disconnected from the market, suggesting potential for price appreciation [1] - The backdrop of the gold market, where opportunities are limited, enhances the appeal of investing in B2Gold [1]

Core Viewpoint - B2Gold Corp. reported strong operational and financial results for Q2 2025, with higher than expected gold production and lower cash costs, positioning the company well for its annual production guidance. Group 1: Production and Costs - Consolidated gold production reached 229,454 ounces in Q2 2025, exceeding expectations, with all three mines (Fekola, Masbate, and Otjikoto) performing well [2][4] - Consolidated cash operating costs were $745 per gold ounce produced, better than anticipated due to lower fuel costs and higher production [2][4] - All-in sustaining costs were $1,519 per gold ounce sold, higher than expected due to increased gold royalties and lower sales ounces [2][4] Group 2: Financial Performance - Attributable net income was $154 million, or $0.12 per share, with adjusted net income also at $0.12 per share [2][4] - Operating cash flow before working capital adjustments was $301 million in Q2 2025 [2][4] - Gold revenue for Q2 2025 was $692.2 million, significantly up from $492.6 million in Q2 2024 [4] Group 3: Liquidity and Capital Resources - As of June 30, 2025, the company had cash and cash equivalents of $308 million and a working capital deficit of $19 million [5] - The company has $800 million available under its revolving credit facility for future drawdowns [5][7] Group 4: Project Developments - The Goose Mine achieved its inaugural gold pour and is expected to ramp up to commercial production in Q3 2025, with estimated production of 120,000 to 150,000 ounces in 2025 [2][44] - A positive feasibility study for the Gramalote Project indicated an after-tax NPV of $941 million and an IRR of 22.4% at a $2,500 per ounce gold price [2][56] - Approval for underground mining at the Fekola Mine was granted, with production expected to contribute between 25,000 to 35,000 ounces in 2025 [2][21] Group 5: Future Outlook - The company is on track to meet its total gold production guidance of 970,000 to 1,075,000 ounces for 2025 [60] - Consolidated cash operating cost guidance for 2025 is now forecasted to be between $795 and $855 per ounce, reflecting lower fuel costs and expected results from the Goose Mine [62]

B2GOLD CORP. Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2025 (Unaudited) B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30 (Expressed in thousands of United States dollars, except per share amounts) (Unaudited) | | | For the three | | For the three | | For the six | | For the six | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | months ended June 30, 2025 | | months ended June 30, ...

Core Viewpoint - B2Gold Corp (BTG) is expected to report significant growth in second-quarter 2025 earnings, with estimates indicating an increase to 15 cents per share from 6 cents a year ago, reflecting a 15.4% upward revision in the last 60 days [1][5]. Earnings Estimates - The Zacks Consensus Estimate for BTG's second-quarter earnings is 15 cents, with a historical trend showing a positive revision of 15.38% over the past 60 days [2][5]. - The current estimates for future quarters are 0.58 for F1 and 0.59 for F2, with respective increases of 11.54% and 20.41% [2]. Earnings Surprise History - B2Gold has a mixed earnings surprise history, with one earnings beat in the last four quarters and an average negative surprise of 38.9% [3][6]. Factors Influencing Performance - Higher gold prices and increased production from the Fekola mine are expected to positively impact BTG's revenue for Q2 2025 [5][10]. - The upward trend in gold prices is attributed to geopolitical tensions, a depreciating U.S. dollar, potential monetary policy easing, and central bank purchases [7][8]. - BTG anticipates recovering lost production at Fekola in 2025, aided by an agreement with the Mali government for quicker permit issuance [9]. Cost Pressures - Despite the positive revenue outlook, BTG faces cost inflation pressures across all sites, affecting input prices such as reagents, fuel, and labor costs, which may impact profit margins [10]. Share Price Performance - BTG shares have increased by 30.5% over the past year, compared to the industry's growth of 46.8% [11].

Core Insights - B2Gold Corp. has received approval from the State of Mali to commence underground operations at the Fekola Mine, marking a significant milestone for the company to enhance its production capacity [1][11]. Company Overview - The Fekola Complex includes the Fekola Mine, where B2Gold holds an 80% stake, and the State of Mali owns 20%. The complex also encompasses the Fekola Regional area, which is 65% owned by B2Gold and 35% by the State of Mali [2]. Production and Financial Projections - Underground operations at the Fekola Mine have begun, with stope ore production contributing an estimated 25,000 to 35,000 ounces of gold in 2025, with further increases expected from 2026 onward. The overall gold production guidance for the Fekola Complex in 2025 is set at 515,000 to 550,000 ounces [4][11]. - The Fekola Mine produced 93,805 ounces of gold in the first quarter of the year [4]. Future Developments - B2Gold and the State of Mali are collaborating to finalize the approval for the Fekola Regional exploitation permit, anticipated before the end of Q3 2025. This development is expected to enhance production and extend the mine's operational life [5][11]. - Fekola Regional is projected to add approximately 180,000 ounces of gold annually during its first four years of production from 2026 to 2029, with a mine life extending into the 2030s [6]. Market Performance - B2Gold's stock has increased by 41% year-to-date, compared to a 55.7% growth in the Zacks Mining – Gold industry. The Basic Materials sector has risen by 8.3%, while the S&P 500 has gained 5.7% [10]. - The stock is currently trading at a forward 12-month earnings multiple of 5.86X, which is below the industry average of 12.26X, and holds a Value Score of A [12]. Earnings Estimates - The Zacks Consensus Estimate for B2Gold's 2025 sales is $3.08 billion, reflecting a year-over-year growth of 61.8%. The earnings estimate for the same year is 58 cents per share, indicating a significant year-over-year growth of 262.5% [13]. - For 2026, the sales estimate implies a modest growth of 0.91%, while earnings are expected to grow by 1.97% [13].

Group 1 - B2Gold (BTG) closed at $3.37, reflecting a +1.51% change from the previous day, outperforming the S&P 500's daily loss of 0.37% [1] - Over the past month, B2Gold shares have depreciated by 9.29%, underperforming the Basic Materials sector's gain of 0.13% and the S&P 500's gain of 2.68% [1] Group 2 - B2Gold's upcoming earnings report is scheduled for August 7, 2025, with analysts expecting earnings of $0.12 per share, indicating a year-over-year growth of 100% [2] - For the full year, Zacks Consensus Estimates project earnings of $0.58 per share and revenue of $3.08 billion, representing changes of +262.5% and +61.77% from the prior year [3] Group 3 - Recent revisions to analyst estimates for B2Gold are important as they reflect short-term business trends, with positive revisions indicating optimism about the business outlook [3][4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows B2Gold currently holds a Zacks Rank of 3 (Hold) [5] Group 4 - B2Gold is trading at a Forward P/E ratio of 5.72, which is lower than the industry average Forward P/E of 11.72, suggesting it is trading at a discount [6] - The Mining - Gold industry, part of the Basic Materials sector, has a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries [6][7]

Core Viewpoint - B2Gold Corp. has received approval from the State of Mali to commence underground operations at the Fekola Mine, which is expected to drive production growth for the Fekola Complex [1][4]. Group 1: Fekola Mine Operations - The Fekola Complex includes the Fekola Mine, which is 80% owned by B2Gold and 20% by the State of Mali, and the Fekola Regional area, which will be 65% owned by B2Gold and 35% by the State of Mali [2]. - The approval for underground operations includes stope ore production, with the company having completed over 9,300 meters of development work and necessary infrastructure in anticipation of this approval [4]. - The Fekola underground is projected to contribute between 25,000 to 35,000 ounces of gold production in 2025, with significant ramp-up expected in 2026 and beyond [5]. Group 2: Fekola Regional Development - Discussions between B2Gold and the State of Mali highlighted the importance of Fekola Regional for both near and long-term production, with an anticipated contribution of approximately 180,000 ounces of additional annual gold production from 2026 to 2029 [6]. - The exploitation permit for Fekola Regional is expected to be finalized before the end of Q3 2025, with pre-stripping activities to begin shortly after the permit issuance [6]. - The haul road from Fekola Regional to the Fekola Mine is operational, and initial gold production from Fekola Regional is expected to commence in late 2025 [6]. Group 3: Production Guidance - B2Gold has reiterated its 2025 gold production guidance for the Fekola Complex, estimating a total of 515,000 to 550,000 ounces [7]. - The company forecasts total gold production of between 970,000 and 1,075,000 ounces across all its operations in 2025 [8].