B2Gold Corp. (BTO:CA) Q1 2026 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The earnings call summary reveals above-expectation gold production and a strong free cash flow plan, including aggressive buybacks. Despite the repair costs at Goose Mine, no significant supply stress issues or production declines are anticipated. The Q&A section highlights ongoing regulatory discussions and a positive grade reconciliation, while management's optimism about future production and strategic collaborations further supports a positive outlook. The market cap suggests moderate stock price sensitivity, aligning with a positive sentiment prediction (2% to 8%).

Key Financial Performance

GAAP earnings per share $0.15 per share, with no specific year-over-year change or reasons mentioned.

Adjusted earnings per share $0.19 per share, with no specific year-over-year change or reasons mentioned.

Revenue Nearly $1.2 billion in the first quarter, including delivery of just over 66,000 ounces under gold prepayment obligations. No specific year-over-year change or reasons mentioned.

Operating cash flows $539 million, with no specific year-over-year change or reasons mentioned.

Free cash flow $362 million, highlighting strong cash generation potential of operating assets in the current gold price environment. No specific year-over-year change or reasons mentioned.

Cash and cash equivalents $479 million as of March 31, 2026, up from $380 million at the end of 2025. The increase is attributed to strong financial performance.

Share repurchases Approximately 16 million shares repurchased for $80 million during the first quarter, with an additional 4 million shares repurchased for $18 million subsequent to the quarter end. No specific year-over-year change or reasons mentioned.

Sale of Fingold Ventures stake 70% stake sold to Agnico Eagle for $325 million in cash. No specific year-over-year change or reasons mentioned.

Gold production Approximately 238,000 ounces in the first quarter, above expectations. No specific year-over-year change or reasons mentioned.

Goose Mine crushing circuit repair costs Estimated at $7 million for repairs due to fire damage, with an additional $11 million for the first phase of upgrades. No specific year-over-year change or reasons mentioned.

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Operating Highlights

Goose Mine Crushing Circuit Upgrades: Phase 1 upgrades include a new run-of-mine bin, apron feeder, larger jaw crusher, and rock breaker at a cost of $11 million. Phase 2 upgrades, scheduled for 2027, will include larger cone crushers, additional surge bins, feeders, and upgraded conveyors, costing $20-$30 million.

Sale of Fingold Ventures Stake: B2Gold sold its 70% stake in Fingold Ventures to Agnico Eagle for $325 million in cash. A collaboration agreement with Agnico Eagle was also established to share operational knowledge in Arctic environments.

First Quarter Financial Performance: Revenue of nearly $1.2 billion, operating cash flows of $539 million, and free cash flow of $362 million. Cash and cash equivalents increased to $479 million, and $75 million of revolving credit facility debt was repaid.

Gold Production: Produced approximately 238,000 ounces of gold in Q1 2026, exceeding expectations. Goose Mine production forecast for Q2 2026 adjusted to 18,000-20,000 ounces due to fire-related disruptions.

Leadership Transition: Clive Johnson announced retirement as President and CEO effective June 4, 2026, with Mike Cinnamond appointed as the next CEO. Clive will assume the role of Chair Emeritus.

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Risk or Challenges

Conflict in Mali: Ongoing conflicts between the government and certain groups in Mali pose potential risks to the company's operations, although current activities are occurring at a distance from the conflict zones. The company is monitoring the situation closely to ensure employee and contractor safety.

Fire at Goose Mine: A fire in the crushing circuit at the Goose Mine has caused localized damage, requiring repairs estimated at $7 million to be completed by Q3 2026. This incident has led to a temporary reduction in production estimates for Q2 2026.

Permit for Fekola Regional: The company’s ability to meet production guidance for the Fekola Complex depends on receiving the exploitation permit for the Fekola Regional by the end of June 2026.

Crushing Circuit Upgrades at Goose Mine: The first phase of upgrades to the Goose Mine crushing circuit will cost approximately $11 million, with a second phase planned for 2027 costing $20-$30 million. These upgrades are necessary to increase processing capacity and optimize performance.

Transition at Otjikoto Mine: The Otjikoto Mine is transitioning from open-pit to underground mining, relying on low-grade stockpiles until higher-grade underground ore becomes available between 2028 and 2032. This transition could impact production levels in the short term.

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Guidance & Outlook

Fekola Complex Production Guidance: Gold production at Fekola is expected to be relatively consistent throughout the year. The company expects to meet the Fekola Complex production guidance range for the year, provided the exploitation permit for the Fekola Regional is received by the end of June 2026.

Goose Mine Production and Upgrades: Operations at Goose are expected to ramp up throughout the year. Repairs to the crushing circuit are estimated to be completed in Q3 2026 at a cost of approximately USD 7 million. Phase 1 upgrades to the crushing circuit are expected to cost $11 million and be completed by Q3 2026, enabling an average daily capacity of approximately 3,200 tonnes per day. Phase 2 upgrades, scheduled for the first half of 2027, aim to increase capacity to 4,000 tonnes per day at a cost of $20 million to $30 million. Full-year production guidance for Goose mine remains at 170,000 to 230,000 ounces in 2026, with medium-term production expected to average 300,000 ounces per year.

Masbate Operations: The company anticipates another year of consistent operations in 2026, supported by a guaranteed fuel supply contract for the next 3 months.

Otjikoto Mine Development: The Antelope underground is being actively developed to provide higher-grade ore, supplementing low-grade stockpile production during 2028 to 2032, ensuring a meaningful production profile for the Otjikoto mine well into the next decade.

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Shareholder Return Plan

Dividends: The company continues to remain excellent financial flexibility to repay our obligations, fund the growth initiatives and very importantly, return capital to our shareholders, both through dividends and through buybacks.

Share Repurchase: During the first quarter, we repurchased approximately 16 million shares for $80 million. And subsequent to quarter end, we repurchased a further 4 million shares for $18 million. The company expects to continue repurchasing shares as the year progresses. The management believes that the value of the business is not reflected in the share price, which is why they are pursuing the repurchase program.

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Key Q&A

Q:What percentage of production is expected from Fekola Regional in 2027, and will there be deferred stripping due to delayed access?

A:The percentage of production from Fekola Regional in 2027 has not been specified, as 2027 guidance has not been released. However, a large portion of ounces is expected to come from the regional permit. Pre-stripping has already started, and as long as the permit is obtained by Q2, the regional guidance for the Fekola Complex remains unchanged.

Q:What is the ramp-up plan for the Goose mill capacity from Q1 to Q3 and beyond?

A:The ramp-up to 3,200 tonnes per day will occur progressively through Q3, with significant changes happening in September. By the end of Q2 2027, the mill is expected to reach 4,000 tonnes per day. The ramp-up is described as linear, with some variability during installation periods.

Q:Does the 3-month fuel supply at Masbate extend to the end of June, and what is the cost impact excluding hedging?

A:The 3-month fuel supply does extend to the end of June, with a rolling 90-day supply in place. Masbate is the most sensitive operation to price increases, but the overall cost profile is stable due to solar operations and hedging programs. Specific cost details excluding hedging were not provided.

Q:Are there ongoing discussions with regulators in Mali regarding the regional permit?

A:Yes, discussions with regulators in Mali are ongoing. Q&A with the mining ministry was completed recently, and the decision now rests with the ministry to forward it to the Council of Ministers. Delays have occurred due to significant distractions in the region.

Q:Are there any supply stress issues for reagents or explosives across the sites?

A:No significant supply stress issues are reported. The company has implemented contingency plans and diversified supply chains to mitigate potential impacts. Adjustments have been made to ensure uninterrupted operations.

Q:Will the company become more aggressive with buybacks and dividends given the strong free cash flow?

A:Yes, the company plans to use cash expeditiously and may pursue buybacks aggressively if the share price remains undervalued. This will be done opportunistically without a fixed formula.

Q:How is underground mining progressing at Goose, and is stockpiling continuing?

A:Underground mining at Goose is progressing slightly below target but within a normal range. Stockpiling is continuing, with Q2 focused on building up stockpiles.

Q:What is the timeline risk for repairing the fire-damaged crushing circuit at Goose, and will inventory practices be reviewed?

A:The repair timeline aligns with the planned upgrades, with no impact on the schedule. Inventory practices are being reviewed to ensure adequate spares are available, considering the recent fire incident.

Q:What is the scope of the collaboration agreement with Agnico in the north?

A:The collaboration focuses on sharing best practices, logistics, labor sourcing, and community relations. It aims to benefit both companies holistically without sharing labor directly.

Q:What is the grade reconciliation at Goose, and can it be expected to continue?

A:Grade reconciliation at Goose has been positive for both open pit and underground mining. This trend is expected to continue based on preliminary testing and current operations.

Q:What is the expected tonnage at Goose for Q2 and the ramp-up plan for Q3?

A:Tonnage at Goose for Q2 is expected to be below 2,000 tonnes per day. The ramp-up to 3,000-3,200 tonnes per day is planned for June-July, with further increases as additional mobile crushers are deployed.

Q:Is there a stripping campaign at Fekola, and how does it impact production?

A:Yes, there is a stripping campaign at Fekola, but ore will be processed after 3 months of stripping. Production in 2027 is expected to be strong, with estimates in the range of 60-80.

Q:Will production at other assets decrease in Q2 following Q1 outperformance?

A:No significant decrease is expected at other assets in Q2, except for Masbate, which may return to its guidance midpoint of 180,000 ounces annually after outperforming in Q1.

Q:Review of Unclear Management Responses

A:Management avoided providing specific cost details excluding hedging for Masbate's fuel impact. Additionally, they did not specify the exact percentage of production from Fekola Regional in 2027 or provide detailed underground mining metrics at Goose when initially asked.

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Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

BTG Transcript

B2Gold Corp. (BTO:CA) Q1 2026 Earnings Call Transcript

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B2Gold Corp. (BTG) Q2 2025 Earnings Call Transcript

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The earnings call summary and Q&A session indicate a generally positive outlook. Financial performance is strong, with a $0.09 EPS and $244 million operating cash flow. The company is progressing on major projects like Goose and Fekola, with increased production and potential for outperforming plans. Despite some delays in permitting, the government is supportive. There are plans for optimization and expansion, and shareholder returns are stable. With a market cap of $3.5 billion, the stock is likely to see a moderate positive reaction due to these developments.

B2Gold Corp. (BTG) Q1 2025 Earnings Call Transcript

Positive5-8

The earnings call highlights strong financial health with significant cash reserves and a substantial undrawn credit facility, supporting growth initiatives. Despite some unclear responses in the Q&A, the company's focus on increasing shareholder value through production growth and the potential for high gold output are positive indicators. The market strategy and shareholder return plan are well-articulated, suggesting a positive outlook. However, the market cap is moderate, which may lead to a more pronounced stock price reaction. Overall, the sentiment leans towards a positive short-term stock price movement.

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The earnings call summary presents a mixed picture. Financial performance shows some strengths, such as operating cash flow, but is marred by EPS declines and operational risks. The Q&A session highlighted uncertainties, especially in production and capital allocation. Despite financial stability, competitive pressures and regulatory risks weigh negatively. No new partnerships or strong guidance adjustments were announced. Given the company's market cap, the stock is likely to experience a neutral movement within the -2% to 2% range over the next two weeks.

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