B2Gold Corp. (AMEX:BTG) Q1 2024 Earnings Call Transcript

Bill Lytle : Well, I went through some of them already for sure. Like I said, it’s tough to say some of the things because we’re right now in the process of ordering for 2024, 2025. So those RFPs are out, we’re in the process of shutting down the winter road, so we’re in the process of evaluating that. But if you look at — like I said, things like the reagents that we think that’s going to be an under for sure. I think some of the critical spares so things that we can hold off of site. I think those are going to be unders. Remember, in theory, you would have one more shipping season. So anything you didn’t — wouldn’t have to fly in that could be an under, but the counter also holds true that if there’s something critical we need for the mill, you might fly initially that might be an over right?

Or maybe on the mills or on the mining side, because we didn’t commission the trucks as quickly as we thought, a lot of those operating costs for those trucks are going to be an under for this point — up to this point, which is not to say it’s not going to catch up. So that’s why I can’t really tell you exactly, but I feel — I certainly feel very good that we are currently on budget or under budget at the stack.

Ovais Habib: Okay, thanks for that, Bill. And I’m glad that’s it for me. Thanks for taking my questions.

Bill Lytle : Thanks, Ovais.

Operator: The next question comes from Ralph Profiti with Eight Capital. Please go ahead.

Ralph Profiti : Thanks, operator. Good morning, Clive. And maybe a question for Mike. And I just want to ask sort of a follow-up or in a different way, the Goose CapEx question because at the time we get the update in June, we’re still sort of six, nine months ahead of first gold production. Will all of the outstanding spending be committed or locked in at that time? Or — I’m just kind of trying to get a sense of what state of finalization will be in when we get the June update?

A –Mike Cinnamond : Sorry, can you clarify what you mean by locked in or committed with more?

Ralph Profiti : Yes, basically Yes. Thanks for that. So yes, just the amount of committed CapEx, right, in the context of total by the time we get to June.

Clive Johnson : How much have we spent so far?

Mike Cinnamond : We’ve spent, like, so far cash terms for the — we’ve spent $840 million. We haven’t spent all that, but project today is 840. And there’s probably another 60-plus payable, so total cost 900 in that whole part. And I’m going to compare that to the total that we were talking about for construction, $1.5 billion [ph]. Big development, $200 million, and working capital, another $205 million. So [indiscernible].

Clive Johnson : So it’s simply de-risked. The amount that’s been spent is a good question. The amount that’s been spent so far, I think, has been ordered. We’re suggesting de-risked if the amount we’ve spent is ordered.

Mike Cinnamond: Yes, I think a lot of the capital is being ordered certainly like Bill said, well, I can’t give you the number right now. But if you’re saying what, at the end of June, we’re saying it’s fully committed. But everything, all the key stuff that we thought we needed is not only being ordered, it was delivered to the MLA and it’s now being driven up the road for construction purposes. So as you get into the latter part of this Bill, a lot of the costs are going to be building up the working capital, right? Then we need to labor, a lot of labor going in there, and fuel and all the consumables as you move forward. But a lot of those are ready to occur from orders that brought up the ice road. But we’ll certainly focus on that. I guess, I’m trying to give you some guidance on that when we get a new cost estimate and how that will be raised at cost.

Ralph Profiti: Yeah. Okay, got you. That’s exactly what I was looking for. Thanks. Clive, Finland, can you talk a little bit about your role in the country, given some of the decisions out there that we’re waiting for? Should we think about your approach as sort of more or less or different than what we’re seeing now and just sort of how you’re thinking about that country as a jurisdiction when you approach exploration and future potential?

Clive Johnson: Yeah, we’ve been at it for a while there. We had some exponential success for sure. We didn’t get out of the park and find millions of ounces of gold. It doesn’t mean there’s still potential for that. Obviously, our ground is very important to Rupert in terms of the ultimate development of an open pit, and also because of the 6,000 ounces or more potential that we see there. But I think it’s an elegant deal, and we are happy to be sure, as Rupert, that the soon-to-be closing of that deal allows us to recoup our expression expenditures today, potentially by owning better shares, but also be part of the future. That’s a very good deposit. Someone’s going to build it at the end of the day. So we thought it was a really good way to stay involved in the sense of through share ownership and on the upside potential, but also focus our exploration on some of the things we consider to be higher priorities, such as Goose.

And as we get back into trucking ore Fekola, as we start that, we will be looking at more exploration there as well. Great potential that they’re regional, not only for additional oxide, heavily weathered saprolite material, but also the sulfides as well. So that’s the rationale. I think it was a very good deal, good for Rupert, good for ourselves, and hopefully good for our joint venture partner as well.

Ralph Profiti: Thanks for your thoughts. Appreciate it.

Clive Johnson: Thanks, Ralph.

Operator: The next question comes from Anita Soni with CIBC World Markets. Please go ahead.

Anita Soni: Good morning, Clive, Mike, and Bill. So I just wanted to understand the delay, and specifically what’s the pinch point? I’m assuming it’s a tailings dam. And I just want to sort of understand what the mechanics are there in terms of why the three months was added.

Bill Lytle: Yeah, well, kind of, but not 100%. It’s the combination of putting ore on the pad and completing the echo pit, right? So basically, we’ve got 10 trucks on site. When we took over and were commissioning the trucks, we identified that we didn’t have some of the personnel resources that were appropriate for the Scope, and they didn’t get the trucks commissioned on time, and there were some issues there. So basically, we fell behind mining in both Echo and Umwelt Pit. So I could say a combination of the two. I can do one or the other and still make the schedule. I can put over on the pad, have no tailings, or I can do Echo pit and have no ore, but I couldn’t do both given the schedule I’ve got now, so that’s the delay.