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, with adjusted earnings at $0.11 per share, impacted by the timing of shipments at Fekola [4][5] - Operating cash flows for 2025 totaled $896 million, including $286 million in Q4, highlighting strong cash generation potential [5][6] - Cash and cash equivalents stood at $380 million at the end of 2025, with $150 million drawn on the revolver [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 [9] - Production from Fekola Underground contributed over 20,000 ounces in 2025, with expectations for continued ramp-up [2][3] - At Otjikoto, production was strong in 2025, but is expected to decrease in 2026 due to the transition to underground mining [10][15] Market Data and Key Metrics Changes - The strong gold price environment is expected to benefit B2Gold, allowing the company to leverage its asset portfolio [3] - The company anticipates production from Fekola Regional to ramp up in the second half of 2026, contributing between 60,000 and 80,000 ounces [11] Company Strategy and Development Direction - B2Gold is focused on extending mine lives and increasing production through the development of the Antelope underground deposit [3][15] - The company plans to continue repurchasing shares, having bought back 2 million shares for about $10 million in 2025, with an additional 5 million shares purchased post-year-end [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in receiving the Fekola Regional exploitation permit in Q1 2026, citing regular dialogue with the government [20] - The company is optimistic about future cash flows, with an expected increase of approximately $110 million per month post-June 2026 as prepays roll off [7][8] Other Important Information - The Goose Mine celebrated its first gold pour and commercial production, marking a significant milestone for the company [2][3] - The company is studying improvements to the crushing circuit at Goose to increase capacity, with initial modifications scheduled for implementation in 2026 [12][13] Q&A Session Summary Question: Update on Fekola Regional permit status - Management indicated confidence in receiving the permit due to ongoing dialogue with the government and endorsements from key ministers [19][20] Question: Internal study on Goose's permanent crusher solution - The study has been completed and is under review, with final design and cost bids expected by April [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 build-up years [29] Question: AISC at Goose once at 3,200 tons per day - AISC is expected to step down significantly as production stabilizes at higher levels [39] Question: Sensitivity of cash tax guidance at different gold prices - Management provided a method to estimate cash taxes based on production ounces and gold price fluctuations [42][43]