B2Gold (BTO) Q3 2024 earnings summary

Executive summary

• Q3 2024 gold production totaled 180,553 ounces, with Masbate and Otjikoto outperforming, while Fekola lagged due to equipment and weather issues; production growth is expected in 2025 with higher grades and new sources coming online.

• Net loss attributable to shareholders was $634 million ($0.48/share), mainly from a $661 million non-cash impairment on the Goose Project; adjusted net income was $29 million ($0.02/share), impacted by a $30 million one-time tax accrual related to Mali.

• The company remains on track to hit the low end of revised production guidance and the upper end of cost guidance.

• A significant MOU was completed with the state of Mali, clarifying economic and governance terms for the Fekola complex and expediting permits.

• Corporate strategy focuses on responsible mining, maximizing profitable gold production, maintaining strong cash flow, and advancing organic and acquisitive growth.

Financial highlights

• Q3 2024 gold revenue was $448 million, with nine-month revenue at $1.40 billion.

• Adjusted earnings per share were $0.02, impacted by a $30 million one-time tax accrual related to the Mali MOU; excluding this, adjusted EPS would have been $0.05.

• Basic EPS was affected by a non-cash write-down at Back River and a $661 million impairment at Goose Project.

• Operating cash flow before working capital adjustments was $118 million in Q3; cash and cash equivalents stood at $431 million at quarter-end.

• Q4 2024 dividend of $0.04/share declared, annualized at $0.16/share.

Outlook and guidance

• 2024 gold production guidance revised to 800,000–870,000 ounces, with output expected at the low end and costs at the upper end.

• 2025 preliminary outlook projects record gold production of 1,030,000–1,150,000 ounces, driven by ramp-up at Goose and Fekola Complex expansion.

• Goose Project remains on track for first gold in Q2 2025, ramping to commercial production in Q3 2025.

• Fekola Regional sources expected to add 80,000–100,000 ounces/year starting Q1 2025.

• Gramalote feasibility study is expected in mid-2025.