B2Gold(BTG) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - B2Gold achieved record revenue of $3 billion for 2025, with Q4 revenues recorded at $1.05 billion [2][4] - GAAP earnings were $0.13 per share, or $0.11 per share on an adjusted basis, impacted by the timing of shipments at Fekola [4] - Operating cash flows for 2025 totaled $896 million, with $286 million generated in Q4 [5] - Cash and cash equivalents stood at $380 million at the end of 2025, with a revolver capacity of $750 million [5][6] Business Line Data and Key Metrics Changes - The company produced approximately 980,000 ounces of gold in 2025, near the midpoint of guidance [10] - Fekola produced over 20,000 ounces from underground operations in 2025, with expectations for continued ramp-up [2][12] - Masbate operations achieved consistent results, marking seven years without a lost time injury [3] - Otjikoto's production was strong in 2025, but is expected to decline in 2026 due to the completion of open pit mining [11][15] Market Data and Key Metrics Changes - The strong gold price environment is expected to benefit B2Gold, allowing for significant shareholder value creation [3] - The company anticipates production between 820,000 and 970,000 ounces in 2026, with lower production expected at Otjikoto and Fekola [10][11] Company Strategy and Development Direction - B2Gold is focused on extending mine lives and returning capital to shareholders, with share repurchases initiated in 2025 [6][7] - The company plans to leverage the Antelope underground deposit to increase Otjikoto's production and extend its life into the 2030s [3][15] - The Fekola Regional exploitation permit is expected to be approved in Q1 2026, with production starting in the second half of the year [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the approval of the Fekola Regional permit due to ongoing dialogue with the Mali government [20] - The company is optimistic about the future of the Fekola Underground and its contribution to overall production [2][3] - Management highlighted the importance of maintaining financial flexibility to fund exploration and growth initiatives [6][7] Other Important Information - The company repurchased 2 million shares for about $10 million in 2025, with an additional 5 million shares repurchased post-year-end for approximately $24 million [7][8] - Initial modifications to improve the crushing circuit at Goose are scheduled for implementation in the second half of 2026 [12][13] Q&A Session Summary Question: Update on Fekola Regional permit status - Management confirmed ongoing dialogue with the Mali government and confidence in receiving the permit soon [19][20] Question: Details on Goose's permanent crusher solution - The study by FLSmidth has been completed, and the final design will be reviewed before cost bids are obtained [21][22] Question: Clarification on Otjikoto's Antelope deposit timeline - Production from Antelope is expected to ramp up in 2029, with 2027 and 2028 being development years [28][29] Question: AISC expectations at Goose - AISC is expected to step down significantly as production ramps up to 4,000 tons per day [37] Question: Cash tax guidance sensitivity - Management provided insights on cash tax guidance and its sensitivity to gold price fluctuations [41]