B2Gold(BTG) - 2025 Q4 - Annual Report

Financial Performance - Gold revenue for 2025 reached $3,061,238, a significant increase of 61% compared to $1,902,030 in 2024[19] - Gross profit for 2025 was $1,530,783, up from $706,195 in 2024, reflecting a gross margin improvement[19] - Net income for 2025 was $426,699, a turnaround from a net loss of $626,653 in 2024[19] - Earnings per share attributable to shareholders for 2025 were $0.30, compared to a loss of $0.48 in 2024[19] - Total comprehensive income for 2025 was $585,425, compared to a loss of $604,168 in 2024[20] - Cash provided by operating activities increased to $895,836,000 in 2025 from $877,604,000 in 2024[21] - B2Gold reported a net income of $401.9 million for the year ended December 31, 2025, compared to a net loss of $629.9 million in 2024[23] - The total equity increased to $3.64 billion in 2025 from $3.04 billion in 2024, reflecting a growth of approximately 20%[23] Revenue and Sales - The company reported total cost of sales of $1,530,455 for 2025, an increase from $1,195,835 in 2024[19] - Gold revenue is recognized when delivery occurs, with revenue measured based on the price specified in the sales contract at the time of sale[97] - Prepaid gold sales are recognized as deferred revenue until control transfers to the customer upon delivery[98] Assets and Liabilities - Total assets rose to $5,879,316,000 in 2025, up from $4,813,998,000 in 2024, reflecting a growth of approximately 22%[22] - Current liabilities increased to $1,061,256,000 in 2025 from $580,687,000 in 2024, reflecting a rise of about 82.5%[22] - The total liabilities increased to $2,237,800,000 in 2025 from $1,778,301,000 in 2024, an increase of about 25.8%[22] - The retained deficit improved to $(220,613,000) in 2025 from $(515,619,000) in 2024, indicating a reduction in the deficit of approximately 57.3%[22] Investments and Capital - Long-term investments increased significantly to $286,066,000 in 2025 from $76,717,000 in 2024, marking an increase of over 273%[22] - Share capital grew to $3,607,005,000 in 2025, compared to $3,510,271,000 in 2024, indicating a rise of about 2.8%[22] - The company issued convertible senior unsecured notes with an aggregate principal amount of $460 million on January 28, 2025[14] - The company issued 19,638 thousand shares on the exercise of stock options, raising $66.1 million in 2025[23] Dividends and Shareholder Returns - The company reported a decrease in dividends paid, which fell to $103,444,000 in 2025 from $184,632,000 in 2024, a reduction of approximately 44%[21] - The Company paid a total dividend of $107 million for the year ended December 31, 2025, with a quarterly dividend of $0.02 per share[170] Operational Developments - The Goose Mine achieved commercial production on October 2, 2025, contributing to the company's operational expansion[24] - The company is assessing the impact of new IFRS standards on its financial statements, which may affect future disclosures and reporting[30] Impairment and Asset Management - The company experienced a significant reduction in impairment of long-lived assets, with no impairment recorded in 2025 compared to $876,376 in 2024[19] - The company identified impairment indicators for the Fekola Complex and Goose Mine, leading to impairment testing[103] - The impairment charge for the Goose Mine was $661 million recorded in 2024, while the Fekola Complex CGU impairment was $215 million, resulting in a net impairment charge of $194 million after tax recovery[127][128] Financial Instruments and Derivatives - The fair value of financial instruments not traded in an active market is determined using valuation techniques, with significant assumptions based on market conditions[110] - The unrealized fair value of the gold derivative contracts at December 31, 2025, was $(234) million, compared to $0 million in 2024[200] - The Company has guaranteed the remaining portion of the gold stream obligation, which is classified as level 3 in the fair value hierarchy[202] Lease and Restoration Provisions - The Company recognized right-of-use assets and lease liabilities at the commencement date of leases, measured at cost less accumulated depreciation and impairment losses[76] - The Company’s mine restoration provisions increased to $169.4 million as of December 31, 2025, up from $147.7 million in 2024[167] Miscellaneous - The company recorded an income tax expense of $67 million for the year ended December 31, 2024, related to the settlement of income tax and customs assessments from 2016 to 2023[132] - The company recorded a gain of $49 million on the sale of mining interests related to the Versamet transaction in 2024[129]