B2Gold (BTO) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production totaled 212,508 ounces, with Fekola output below expectations due to equipment delays; mining rates are expected to improve by Q3 2024.

• Adjusted earnings per share were $0.06, supported by higher gold prices, while a non-cash impairment at Fekola led to a net loss of $0.02 per share.

• Goose Project construction is ahead of schedule, with gold production expected by end of Q2 2025.

• Ongoing discussions with the Mali government regarding the 2023 Mining Code, with an exploitation permit expected soon.

• Q3 2024 dividend of $0.04 per share declared, with a 3% DRIP discount for participating shareholders.

Financial highlights

• Q2 2024 gold revenue was $492.6 million, up from $470.9 million in Q2 2023.

• Operating cash flow was $62.4 million after working capital changes, or $192 million before changes.

• Cash and cash equivalents stood at $467 million at quarter-end, up from $307 million at year-end 2023.

• $700 million available on the revolving credit facility, providing strong liquidity.

• Average realized gold price was $2,343/oz in Q2 2024.

Outlook and guidance

• 2024 consolidated gold production guidance revised to 800,000–870,000 ounces, down from 860,000–940,000 ounces.

• 2024 consolidated cash cost guidance maintained at $835–$895/oz, aided by lower fuel prices.

• All-in sustaining cost (AISC) guidance increased to $1,420–$1,480/oz due to lower production and higher royalties.

• Fekola 2024 production now expected at 420,000–450,000 ounces, with deferred ounces to be processed in H1 2025.

• Goose Project on track for first gold in Q2 2025, with 2025 output of 120,000–150,000 ounces and >310,000 ounces/year from 2026–2030.