B2Gold(BTG) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company met its new guidance for the year, coming in at the upper end of all-in sustaining costs and lower end of production [4] - Basic earnings per share were slightly negative for the quarter, primarily due to lower-than-budgeted production at Fekola and foreign exchange impacts [16] - Adjusted net earnings for the quarter were $0.01 per share, with operating cash flow before working capital adjustments at$145 million [17][18] Business Line Data and Key Metrics Changes - Fekola's production was down in 2024, attributed to operational challenges, but the company expects substantial increases in production moving forward [10][25] - The Goose project is on track to produce first gold by the end of Q2 2025, with total construction and development cash expenditures maintained at CAD1.54 billion [18][24] - The Masbate operations outperformed expectations, delivering all-in sustaining costs materially lower than guidance [25] Market Data and Key Metrics Changes - The company is looking to increase production from Fekola to 180,000 ounces annually and from Goose to over 300,000 ounces annually [10][12] - A new discovery in the Otjikoto area has the potential to add 65,000 ounces of gold production [13] Company Strategy and Development Direction - The company is focused on growth from existing assets, with plans to increase production significantly in 2025 [15][31] - The Gramalote project in Colombia is under a feasibility study, expected to yield 240,000 ounces annually, subject to positive outcomes [11][30] - The company is also working on consolidating licenses in Mali to facilitate regional mining [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a positive relationship with the Mali government and the resolution of previous uncertainties [28][29] - The company anticipates a turnaround in market perception as risks associated with the Mali operations and the Goose project are alleviated [30] Other Important Information - The company completed a convertible note offering for gross proceeds of $460 million, which was used to pay down its revolving credit facility [19] - The company is maintaining a strong financial position with cash and cash equivalents of$337 million at year-end [18] Q&A Session Summary Question: Update on Fekola permits and regulatory requirements - Management is consolidating three licenses and expects to receive the necessary permits soon, allowing for regional mining to start [35][36] Question: Status of Goose project and underground mining rates - The company acknowledged historical issues with miner quality and equipment but has made improvements, and production rates are now meeting targets [39][40]