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; significant production growth is expected at Fekola 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; excluding this, adjusted EPS would have been $0.05.

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

• A major MOU was completed with the state of Mali, clarifying economic and governance terms for the Fekola complex, enabling future project value realization.

Financial highlights

• Q3 2024 gold revenue was $448 million, down from $478 million in Q3 2023; nine-month revenue was $1.40 billion.

• Q3 net loss was $631 million vs. $35 million loss in Q3 2023; nine-month net loss was $617 million vs. $159 million profit last year.

• Q3 adjusted net income was $29 million ($0.02/share), impacted by a $30 million tax accrual related to Mali.

• Q3 cash operating costs were $1,061/oz produced; all-in sustaining costs (AISC) were $1,650/oz sold.

• Construction and mine development spending for the Goose Project was CAD 165 million in Q3.

Outlook and guidance

• 2024 gold production expected at the low end of 800,000–870,000 ounces, including 20,000 ounces from Calibre.

• Fekola is set for significant production growth in 2025, with higher grades, regional ore trucking, and underground mining starting.

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

• Gramalote feasibility study is expected in Q2–mid 2025, potentially adding 240,000 ounces of annual gold production.

• Masbate and Otjikoto expected to meet or exceed low end of revised cost and production guidance.