B2Gold Corp. (AMEX:BTG) Q2 2023 Earnings Call Transcript

Ovais Habib: Just wanted to say congrats on another strong quarter and great to see development of Goose progressing well. A couple of questions from me. Number one, just on the sustaining cost, 2023 seemed to be a bit of a high sustaining CapEx year. A lot of projects came in at the beginning of the year at the same time. Should we expect sustaining capital to subside going to 2024? Or should we maintain the same kind of spend going into the next year?

Clive Johnson: I think you can see it — I think we guided that, Ovais, when we put the budget out. It means a chunk of sustaining capital, some of it’s fleet. It’s time to upgrade some of the fleet, but also deferred stripping was quite a big number as we put out in the budget. So there were significant stripping campaigns both at Fekola, the new phases, and Namibia or Otjikoto. So obviously, like you said, Otjikoto, it’s winding down, I guess, by the end — by ’25. So you shouldn’t expect the same levels. Mine plunges bump up and down a little bit, but generally speaking, the last year and this year were happier stripping periods.

Ovais Habib: Got it. Got it. And just moving on to Fekola then and specifically Fekola underground. And maybe this question is for Bill. I believe you’re looking to release a new mine plan at the end of the year. That includes the plan on the Fekola underground. Bill, is there any update info you can provide on what Fekola underground kind of looks like? Or how you’re envisioning that?

William Lytle: Yes. Well, I can provide an update kind of where we’re at for sure. So you have to remember, the Fekola underground development, more than anything, was to really get down to the deposit and drill it off to an indicated resource, right? So while we do have, what I would say, a conceptual mine plan on that, what we really did was prepare development and got approval from the government to get the development down to the phase. I will tell you that, that development, because it was a rather new concept in Mali where you did exploration from underground, it took a little longer. So we were about a quarter behind, but all indications, our burn-cut is on site right now. They’re doing the development for us, is that they will catch up, and we will see that in Q1 2025.

So I guess the short answer is yes, it will be part of the update at the end of the year. It will contain really the resource that you’ve already seen at an inferred level as it fits to the whole plans. There won’t be any update for that, but it will be part of the year-end update, the comprehensive Fekola Complex.

Ovais Habib: And basically, I mean, is this study kind of trying to see if this is feasible? Or is this kind of already given the green light, and you — we should start seeing some production from underground — Fekola underground in the near term?

William Lytle: In 2025 is when you’ll see production out of the underground.

Ovais Habib: Got it. Okay. And just moving on to the exploration program at Goose and George. You guys mentioned drilling has commenced. So when can we start expecting some results from the program? And again, is the priority of this exploration program to kind of target near mine exploration? Or are you looking more regionally as well?

Victor King: The target at this stage, we started, as I said earlier, at George for basically logistical reasons. So that’s the regional work that’s been done to date. The focus now will be at Goose. And there’s a mix there of both, as I indicated earlier, looking at extensions of the known deposits. That’s the focus this year. There’s also targeting particularly the Crown Pillar area and below that to actually provide more detailed infill drilling to some extent for — to allow that planning of that drilling — of the mining of that crown pillar within the time frame. So in terms of more regional work both at Goose itself and George, we’ll probably pick up on that next year more. But certainly, we’ve got a lot to do even on the extensions that we have of the existing deposits.