B2Gold(US:BTG)2024-08-09 17:45Financial Data and Key Metrics Changes - The company generated adjusted earnings of $0.06 per share, benefiting from stronger average gold prices during the quarter [9] - Operating cash flow was reported at $62 million after changes in working capital, with $192 million before changes in working capital [9] - Cash and cash equivalents stood at $467 million at the end of Q2 2024, with a small amount of debt mainly related to equipment leases [11] Business Line Data and Key Metrics Changes - Production guidance for Fekola was lowered by approximately 50,000 ounces due to equipment availability issues [3][9] - Consolidated cash costs remained unchanged, with all-in sustaining costs re-guided upwards to between $14.20 and $14.80 per ounce due to reduced production and higher royalties [10] Market Data and Key Metrics Changes - The company maintained its operating guidance range of $835 to $895 per ounce, benefiting from lower fuel prices than budgeted [10] Company Strategy and Development Direction - The company aims to grow through existing assets, including the expansion of Fekola and the development of the Goose mine, which is expected to produce gold by Q2 2025 [7][16] - An aggressive drilling program of approximately $7 million is planned for the Fekola complex to explore further mineralization [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching an agreement with the government of Mali regarding the 2023 Mining Code, which would facilitate the receipt of an exploitation permit [4][21] - The company views 2024 as a transitional year, with expectations of continued operational performance improvements and growth potential from existing assets [6][40] Other Important Information - An impairment charge was taken related to the Fekola operations, reflecting ongoing discussions with the government regarding the mining code [11][22] - The company is in the final stages of discussions with the government of Mali, which is expected to lead to significant operational advancements [4][23] Q&A Session Summary Question: Impairment charge and negotiations with Mali - The second impairment charge related to Fekola was discussed, with management indicating confidence in reaching a satisfactory agreement with stakeholders [21][22] Question: Updated ASIC guidance and cost expectations - Management clarified that the updated ASIC guidance does not include costs related to regional production for this year, and future cost guidance has not yet been provided [24][25] Question: Equipment availability and cost implications - Management confirmed that equipment availability issues have been addressed, and while costs may increase in Q3, lower fuel costs are expected to offset some of the impacts [31][32] Question: Dividend integrity and liquidity - The company maintains a strong liquidity position with $700 million available on its credit facility and nearly $500 million in cash, ensuring the ability to fund projects and maintain dividends [34][35]