B2Gold(US:BTG)2024-05-08 19:36Financial Data and Key Metrics Changes - B2Gold produced over 225,000 ounces of gold in Q1 2024, aligning with expectations, with cash operating costs and all-in sustaining costs both well below annual guidance ranges [9][16][38] - The cash balance at the end of March was $568 million, with no amounts drawn on the revolver, indicating a strong financial position [40][41] Business Line Data and Key Metrics Changes - Fekola produced just under 120,000 ounces of gold, with cash operating costs below annual guidance [16][39] - Masbate produced almost 48,000 ounces of gold, benefiting from lower fuel prices, with both cash operating costs and all-in sustaining costs below guidance [17][39] - Otjikoto produced just over 45,000 ounces of gold, with cash operating costs and all-in sustaining costs also below guidance, aided by a weaker Namibian dollar [39] Market Data and Key Metrics Changes - Current gold prices are favorable, enhancing the company's financial position [18] - The company anticipates a decrease in all-in sustaining costs as capital programs are completed in 2025, with gold production expected to increase [38] Company Strategy and Development Direction - The company is focused on increasing production at the Fekola complex by potentially 100,000 ounces per year through exploration and development [10][11] - B2Gold is investing heavily in exploration, with over half of its $63 million exploration budget allocated to the Fekola region, indicating strong potential for future growth [14] - The company is also restructuring and optimizing its operations to ensure successful project completions and maintain a strong financial position [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing discussions with the Mali government regarding the mining code and the potential for increased production [30][50] - The company views 2024 as a transitional year, with expectations for improved production and reduced costs in 2025 as capital programs are completed [38][36] - Management highlighted the importance of maintaining strong relationships with the government and the local community to support future operations [50][34] Other Important Information - The construction of the Goose project is on track, with a slight delay pushing the schedule from Q1 2025 to Q2 2025, but the overall project remains on budget [19][22][45] - The company has spent approximately $840 million on the Goose project to date, with total costs expected to reach around $900 million [98] Q&A Session Summary Question: Can you talk about the trade-offs going forward about capital? - Management is currently evaluating costs and is confident in remaining on budget despite some delays [46] Question: How fast can you get the exploitation permit once everything is set in motion? - If an agreement is reached soon, the exploitation license could be fast-tracked, potentially taking a few months [51] Question: Is the purpose of the drill program to increase confidence in the ore body? - The infill drilling is to corroborate the geological model and improve resource classification, with no concerns about the model's validity [54] Question: What are the expectations for CapEx updates in June? - A significant portion of the capital is already ordered, and updates will focus on committed costs as the project progresses [78] Question: What is the current status of the Echo pit and tailings? - The Echo pit is where tailings will be deposited, and the company is managing resources to avoid additional standby costs during the delay [82][88]