BTG - Earnings call transcript Q3 2020

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Operator

Good afternoon my name is James and I will be your conference operator today. At this time, I'd like to welcome everyone to the B2Gold Third Quarter 2020 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. [Operator Instructions] Thank you. Mr. CEO, begin. and President Johnson, you may Clive

Clive Johnson

night, seen Thanks, discuss financial the everyone to I'm you quarter, putting results another Cinnamond. it to that call going to the to target our conference probably of third most BXGold. I us operator. news XXXX for strong our Obviously, Mike release of came Welcome for think our pass end quarter guidance very for of last on XXXX to out lower the year. on

is Mike open We the little and is a analysts' operational very But Now, opportunity up so is Senior then questions. have had walk ago, days highlights they an fine of going on talk we'll questions. for Operations that shareholders Cinnamond again. to pretty Bill ask bit many XX you more that's this the session going I'm do, good VP some session sure questions and us and if through to to about give financial growth, an our results they update won't then Lytle, a for and

So to of again, to it With pass that, you very over strong the Mike. happy I'll another once quarter, some Thanks, the quarter. highlights. give Mike with

Mike Cinnamond

Thanks, Clive.

of obviously, I'm the over can say price to we're an billion. of fun sales of $XXX U.S. of this pandemic. record $XXXX quarterly had short we'll to that on see ounce. some an in million. to relatively those year-to-date, and So going Included sales at COVID midst excellent the BX analysis. $X.X an results closely also price of we were We average a start in happens Hopefully, even ounce. all for been see what order. election The year record It's the That's We ounces the gold revenues the do revenue to revenue side. an sold gold $X,XXX XXX,XXX watching pretty in

quarter then from an budget both Production, almost of up results. offset downtime a again. side. full XXX,XXX on recovery attributable our ounces high to XX,XXX do of higher mill ounces, ounces little or excellent by budget. we had total throughput and reline. is we mill operating ounces expansion to On that's side, also grade Fekola, to XXX,XXX above [ph] made than share bit end from had our a more took lead down mill Process and the than XXX,XXX mines of side Fekola as Turning the the X,XXX Fekola and production production our Calibre's the three of sag do

So even The nicely. our with budget that had budget by overall. we ounce while magnitude XX,XXX Bureau. time the and ahead Yesterday, at quarter Fekola. thing Life and running Calibre basically ounces along Masbate on days, different inspections ounces. the still we mid-August earthquake in to had budget X.X managed was and beat ounces down X,XXX take only a in right in six from mill Masbate place, about to we by our XX,XXX were for to continues above out and damage those no share Otjikoto Otjikoto budget ounces confirmed production inspections carried XX,XXX well. XXX,XXX very Philippine is But ounces, of that's the move consulted was about of Masbate including X,XXX Sciences

$X Fekola cash which is is cost $XXX lower terms budget. equation, than total an our ounce, the period costs that In the for of of side including

deal less lines. and costs up and stories we've continue were and significantly some for sequences slightly prices great that's the mining a they Fekola stripping gold $XXX described in the COVID line Valley I higher as on in an haulage costs, trend sort production, mining QX were in to three-month to fuel operations in one a QX. the costs changes against periods. budget budget distances and total Otjikoto lower production outcome in a in added of same of budget ounce, diesel $XXX budgeted to up three lower an was ounce for our follow as higher mine fuels positive in Mining Namibian We've with was due an underlying the gold bit reminder slightly than so But the so to at budget which that ounce in We world of really just during have sequence the Mali we or Looking there. $XX processing costs. $XX marginally line were costs COVID-related don't advance and month with the budget made with lower totally waste there that budget. ounce, current and weaker and had government been which budget, seen just seen $XXX see set budget HFO change fuels was totally the an quarters costs. the that the Again, Otjikoto. $XX the earlier. in ounce the $XXX Mali That's everyone lower a dollar. less first that an of above Mid by are with run. year. two with some just $XXX than a than it than we've continuing Same fuel also higher elsewhere the and the always is than budget All seen generally as and ago outperform budget to lower story,

cost sustaining all-in the On rate.

When to up our a see we total broken $XX in cost ounce, Same record. than which not Our budget. the It's, per But bit and of an CapEx catch some for in is that it did two than some little operations, CapEx sound first bit catch like really lower take some out $XXX and including is $XXX I'll year. Calibre was in we that the sustaining is a the less QX expect but a We an QX. come CapEx the again, CapEx to caught up ounce during all-in year three the more. little ounce around of budgets. the less quarters, we've was XXXX so in seen to you earlier did year. do moved comment up think quarter see going overall we of some

the see and QX. at we $XXX in you a ounce If come which that all-ins guidance consolidated than all on we're basis we're to going think look is were year-to-date for out catch you those to Less CapEx an see can so that still results budget where expecting up some Take of $XX wise.

out guidance be the middle upper the end, going Calabre, our it mine, The We personally is value of X,XXX,XXX to upper XXX, consolidated Otjikoto So that side come right at got we our by guidance in total right of range we We XXX share to XXX,XXX middle, to somewhere range. end that the to the ounces easily the again, at we'll year in think including come is in of that was on in gold range. consolidated ounces. of of and X,XXX,XXX in the XXX,XXX XXX. right think we'll XXX production range. middle the Overall, for that to think and we're

that XXX the XXX rate range. the range low it to On to below low of the in a XXX. range. below range. cost a we range. XXX take think you Fekola, we'll Masbate, below consolidation cost sustaining be be end for and of to XXX. consolidated be Otjikoto XXX at Calibre, or think We we XXX, of it's to position of we'll that we'll end that cash or low When We end XXX, the think be all-in the slightly we'll or at at include in think even was

range be we'll X,XXX the We all at for we'll we ounces. the sustaining range. range. end to to per year. On end below of XXX. at We Overall we'll said cost to the range. and the be done that dollar ounce, X,XXX XXX, XXX in the Masbate we'll consolidated cost all-in we'll be XXX when think is at we per side, the be Otjikoto XXX lower to of low think at range end X,XXX - be upper We of ounce. the or Fekola think think that think

up million that the somewhere less So I year, around our some Overall $XX for at the in we total. We have it'll in as likely we'll million $XXX million. look than we CapEx in budgeted total CapEx catch $XXX be you QX. mentioned, to somewhere range if that do think come

So when $XXX in, factor to $XXX you're that you looking somewhere million at QX. million in around CapEx

costs we has and is lead the will may sustaining comments to the see been you think we're the but complete. Two as on in all-in of plant generally. construction a September. overruns those new little overall expansion the The to low at come budgeted. higher costs couple range higher invention, XXX said, end I in to They the is about of expansion came mine be and million delays of said majority were $XX dealing pandemic performance of of all we done. finished get that it's and related in camp that when than to The and and were but and labor increased expansion out overall, A going me The mill online consolidated. ahead other bringing Fekola with now year materially costs schedule. and related basically, came XXX in QX all So in the commissioned for they into final to and comments that people overall, the costs mill operations higher COVID-XX

through the XXXX people Had the we've total operating solar site, in run of store the amounts some a announced direct had beneficiary coup, the sort highlights comment bringing by the that completion of the we we the uninterrupted since considering we'll of Mali and terms the at camp. it disclosed, remind XX% a Mali in trying record earlier that there. and we impact state as able we have the get manage, out do so think everyone, plants paid guidance Fekola are and of in delays we have started and To see everything some we in they're but to still and XXXX. previously Fekola's to assuming and a restarted all mine in the Maybe to In the XXXX expecting to overall with put the were country. deal with year in operations the did that doesn't well pandemic mid-September bring results On partner to online deal the still it the end that bring Fekola of just We in Fekola, in year on in just of Mali, of as and the in been solar mine. and COVID to to earlier we be government situation. We done. State activity plant very Fekola QX we're levels. is people in Mali the

paid $XXX around is benefits and in of we XXXX, the there. for $XXX it's so to to million payments million-plus in government that government XXXX priority were $XXX the contributor economy - wages a from big So its share. XX% That's dividends million and includes total it Mali gets to the contributing

just eligible have loans we're addition we're point owns to dividends. In ordinary country XX% paying getting it up our just are to capital been get into and point to the put for start all those the and that where We've and reached that dividends we repaid. also running the going initial Fekola the investment where

So pay dividends. now we're to ordinary starting

came include will the is have going other confirming about a income convention everyone, mining on statement that just When convention. benefit and XXXX remind to comments mining code. Fekola talk by state Fekola we Also of Fekola some move XXXX a did the terms from way items, the code, in, just couple under the the cash is XXXX stabilization again, the to and on mining specific that. XXXX bit of governed it flow. So operates little and a the then We're governed

items your the just have attention. to on income statement, So few a raise I to

of the relates the assets. for gross ones significant with profit of below to most line reversal [indiscernible] the One

a on line dipped. adjustment impairment has reversal relates impact there really We million. This We of deferred ago Long we of on based Masbate. using remaining million. gold $XXX That here the reversals an on reversal that forecast an by gold and price represents on could did. taxes in gold prices we're bottom assumption be an other change driven any $X,XXX analysts' our amount consensus charge ounce. impairment Masbate had have final an when years of to on that $XXX term income price of reversed. final analyses a the booked now Net assumption was It of

For accounting on that got purposes, reversal. of share common there. million Calibre, have that impairment almost $XX Then income we associate

Any tax had All paying the we're million $XX loss taxable really deductions in there residual taxes now, running QX up were Masbate Mali, gate. million. gone running a of company, net the into investment share $X.XX prices. income shareholders attributable period. fully the to the and we the up and paying We're taxes that picked accelerated $XXX the no deductions, also to back were there, are and $XXX that's there and section, are significant. is the for and a function that the carry-forwards share. in out that all Calibre Of we translated of period fuel taxes or Then taxes their So All net so a we're jurisdictions. etcetera. mines for higher now. of everywhere of taxable of results highlight well accelerated Otjikoto

$X.XX you get at half company Then share a shareholders or adjusted million $X.XX a income almost of that items $XXX adjusted flow. you results our that net If in net to to non-cash few cash nine you look a of a attributed income or of for for the going months, $XXX million including $X.XX year-to-date, million, $XXX million $X.X the talk billion, about items, share. share. or reversal, I'm significant the impairment if $XXX to income Masbate adjust that

great So $XXX $X.XX operating up. get cash flow, flow prorate quarter, cash that billion-dollar first if all, share, a we're well-positioned you like cash wise flow to a it of year-to-date. operating it at or million $XXX level million, to over up million had When just flow we operating look you that looks $X.XX $XXX cash

flow paid been we've you, We yet Part some yet paid. given significant operating you that the not aren't financials, detail they're in them We've cash MD&A. but of on our cash. includes reminding taxes have in accrued the

in for million. And the $XX total we so and paid of years, to-date, about taxes QX cash

in cash cash the taxes, hefty we're payments anticipating QX. some pretty $XXX year come around million today For somewhere plus to

year also that out taxes in rules laid Malian for models. remember under taxes the your QX-QX Mali. be as true some for just in So will next And of up there [ph] of payment was

aren't have in does the cash on $XX we the highlighted strictly at of - QX One there, tax we million we're million-$XXX prepayments for tax But of we you items year, maybe have incurred or and that have until the the up gave for that think $XXX that I those to been due year. next taxes year include looking the of cash hand. QX about million early numbers already

some those to chunk of and taxes significant we prepay those of So may a would Mali. relate

repaid financing can the have there On side, I you guess now is see the story we revolver fully. the that

the paid So now outstanding on revolver. down $XXX million, total in we our the quarter, that which was

revolver there debt. million is firepower another And million where undrawn what on of but $XXX have revolver. we little we other we drawn about really leases the amount debt a finance have revolver related no there's under of $XXX to have that [ph] capacity just than it as the to plus million, the mainly accordion $XX left We So $XXX under bit million stands. other have Fekola, so the no

to We because part see that in of And with expect mill $XX expansion cash. always we of from we ties our around though come financed the fleets in that fleet Fekola US$XX help in at about will million cash as Fekola million about world. used of the QX finance we've part expansion, to [indiscernible]

near in million equates in come per $XX the U.S., right year-to-date. QX. annualized that quarterly Dividend-wise, million So maybe I comment the a about at $X.XX which gold see of quarter puts dividends rate yield $X.XX the a you now that now and on the be view. from That's dividend point about right of $XX of allocation capital And paying a will would paid which top $XXX right companies. share the that paying we million We're up year. think us X.X%,

generate to So continuing we are flow. cash strong

You the the cash course cash can million that over we'll quarter the that with of the in flow ended the see continue year. generate we of $XXX to and rest here

we've study the make feasibility us our next the with allocation the most one build then partner, decision of move expecting At position first As a a to will we by we're being get complete got year Gramalote, AGA. big next of discuss capital the that for and couple end year, decisions, quarter to put into Gramalote. significant in

And will a so at make. capital to have decision that point, significant we allocation

and also at drilling that, side however the exploration to addition world. around campaign got In the just address And good got we're looking and that then, in us options elsewhere our we to Burkina, Kiaka, might big results want on in Mali that we project. also looking

and we the to looking so results allocation capital that, what of want just at versus be And do we'll that. deciding

have a about the decide needs just and on our things what of we final then anything our So rate. we to we investing and all allocation CapEx. dividend want dividend see do once And revisit those comment, the of are, changing also at if look capital side can a really

As under, about CapEx. mentioned, overall, million. had the about so we'll total We I be $XXX year XX forecasts think million about for we budgeted $XXX

look cash If million of about at for the CapEx. you CapEx $XXX outflow as today, a - it's cash matter

we go. got in $XXX So to $XXX to region million somewhere the million than higher

of share mark itself, see, but what around to overall QX. exploration. think slightly broadly million we And and at most QX, and So the then are we Gramalote we think for spent line that's to going about haven't that that. behind we about for that And I expect but haven't CapEx, somewhere talked be Gramalote $XX we're in year, in is our

end the $XX for forecasting spent our year we're that all and if We by have to are again, is a million of total most, budget the exploration year. the bit behind but of year-to-date, not

moving cash where flow cash is flow at end continue forward end the the and the forward $XXX year. leaves generating comments position. with That as cash QX see the to Cash strong cash to move in of make was us going are of and and the that's on to of year grow into and overall look million really forward cash results. and main of up we the into I next the sums end balance very and flow So that year we and kind we

Clive Johnson

I as in think left guidance, end just - of for the to I it, that lower said I right. the lower words cost Mike. may intro, guidance the of I of XXXX. thanks, got course, words I my Okay, end realized meant Mike, thankfully have

very results we've good on said, obviously, financial and track. strong of So as quarter

For between the X of million X.XX production and costs, to million our we're be of our X mid-range low guidance guidance expecting and million end of our of to gold [ph] below at the costs or And ounces $X.XX to sustaining at range operating $X.XX lower is $X.XX of and ounce. per of all range our which and we the [ph]. the $X.XX end expect costs, between and be guidance,

Just that. want to sure make clarified I

Okay.

he'll and we'll and quick think forward. see over I I now growth focused to guess of some it us a on give going pass the review Bill we more opportunities

with As recently I covered we've a and the mentioned, ground. we lot a of analysts session have

Bill, update an So us on that? give - maybe but just can you

Bill Lytle

Sure. Yes, sure.

Clive Johnson

open up questions. Then we'll

Bill Lytle

right. of Clive. three first to Thanks, go Mike through All kind Yes, XXXX. I of the rehash don't said want really what quarters

we great, did everything quickly time he once going out no real we have another Obviously, and for I the we'll quarter I'll said just point where reiterate that's the a lost with had second amazing just given remain again on that and world. health quarter a would and So guidance safety around what really that on great to accident. like quarter, year.

really perform end according leaders industry lost our which next little production at over bit to rate And the did the as injury our of we plan well. it so about as what for year, us on of did first year, XXXX, for next looking of couple best frequency lower right production, as analysts, then not, industry for did, as them continue year; look Maybe want we even. time that basically kind But if showed ESG everything slide do of all in is five said sure, bit; put for after this course, to little range. to out ounce should Clive turnout as really kind the of the in of We assuming sure. leaders. down class million the right amongst kind it forward like In budget a of talk a normally put years, this good out commitments goes years, I a our publicly. So the around

really exploration that in group So couple pretty some feel potentially. end then, Anaconda minute. that resource about us things talked and has Gramalote fits and I'll That how also, there's going to and Fekola already talk little for going of at turn exploration long-term so on we'll about a FMZ. updated the over the our then Mike's be using at to so year, has And The QX, coming by group we agreed is a or about pretty, look the going far to that of up profile, At the feasibility, about Cardinal in QX resource a to potential. they're I'm this good of put just told an that next potential, out which has talk a year. end the in

If mill, we tonnes did the X.X potential to we're almost you impact for always We've the we've the But when because to tonnes million X.X really million expansion we always is right that at going doing immediate that. annum. we really annum. plus tonnes to been the maximum we're now, bit said about about that a production have look million what has from it's cagey think per X per talked whatever

We that million mill above done, of a certainly now can that was There's got the where have that we're annum. we X.X least run the expansion so And can at it` really that next in test finished feed. through process mill just put representative per potential word year's capacity that additional of we - XXXX-XXXX. some tonnes for we on two-week think up we've the

if late have that profile, area, fast pans see some kind is XXXX, feed our we FMZ could seeing a something impact and FMZ, would of ounce that on that Now production with there at QX. of and that production Cardinal grade the or Cardinal potentially low that marginal and we track into even out course, if we could in XXXX of end could from

for kind and that help material tentatively of So ounce in us would scheduling XXXX. we're with that come would our that year that's some next XXXX through and profile

that Additionally, one of run we want a bulk the want if is XX% to through our Anaconda the can sample very XXX,XXX We've to is something been we're there through. that feed mill. XX% the in do always percentage saprolite, we things talking and tonnes we saying or take saprolite get from maximum that open [ph] big the that saprolite we rate and a like that, above to operating could

potential course, there. from resource even high-grade there's pocket again, a of to that to lot And of existing ounces potential So the for could get some the truck that and shows into we once down we're XXXX fitting profile, and production with range. Anaconda that, term do of that going while in see for could to waiting long our we're XXXX kind we Fekola

once get all sorted bulk the with sample. that out So we

our from Otjikoto. Cardinal of sources Fekola Potentially in XXXX, and main. Looking come the course Masbate will and at then regular production FMZ

the open you'd go FMZ, from the you see to at Otjikoto Masbate, underground. XXXX, same also you'd you'd have the you'd have to if the have thing on thing ounces same Fekola, flowing from pit, but start again, at the Now Cardinal

could at ounces as in up underground or Otjikoto around see ounces XXXX. there's XXX,XXX So underground

obviously to Masbate, the same in, have underground, you'd Otjikoto, intention Cardinal Gramalote see time, up come our out the then in have way Cardinal, XXXX see you'd start you Oshikoto all the see to what thing XXXX, Masbate, from that And you'd have have you'd On then Otjikoto this it's underground. we'd the you'd opinion our running. and by Fekola, XXXX, it's Otjikoto, see, but and you'd Fekola,

sources see or hit talk would Kiaka with profile, Clive, again, in of through you me those developed be five XXXX. potential just want in a million anything years. of might Obviously ounces so nice that coming you'd And that. the top once about anything, all is for which to other for a there very else on us about? So

Clive Johnson

Bill. No,

I that's summary. a think good

we'll questions. got team So with We've that, the I the up think the phone. open on

extensive the have concession the on on questions Tom's said, I those answering But questions. on the we pretty phone we'll with open As recently. up exploration. analysts But

thanks. So,

Operator

[Operator Instructions] line of Habib please. from Ovais comes Our first question Scotiabank. the from ahead, Go

is open. line Your

Ovais Habib

Thanks, quarter capital and a question to operator. Clive Congrats on and was good taking My thanks allocation. questions. my first well. covered team. Mike Hi, be But BX for going on that

So missing being Bill. tonnes. and XXX Or mine which in question XXX,XXX in just regards about on underground Are towards kind something the XXXX. got have conservative has Analyst my towards Day, the you million it production the mid-XXXX Wolfshag, of day, you have next And here? ending in you starting year. BX underground life about And In per [ph]? am of I to equates tonnes for currently per is got to tonnes about it X.X tonnes recoverable

Clive Johnson

Bill? Hello,

Bill Lytle

if talking which can and mute. this even down extension, is sorry. conservative, upside about is production us plunge rate always on a is Oh, bit the further. There Ovais. two we've answer talked is Apologies. potential absolutely you remember, for minutes it The been I've take yes, reality

this the reserves with potential primarily at existing for we're upside about expansion. are that time, So talking mine in life down the plunge

Ovais Habib

Okay.

So a that's Just just understanding. functional more drilling then? better

Bill Lytle

That's correct.

Ovais Habib

Okay, moving And Cardinal. got just on to it.

need update comes FMZ, line in on Did see see metallurgy to before or are it the resource else the that get to production? anything production? Cardinal? you into to at Basically, the you So into in got across deposit anything what in looking Cardinal the

Bill Lytle

Yes.

inferred a resource and it really an at can't put everything waste really is it. in I looked we've a certainly, how far maybe, what which fit on I have, and they dumps mine What our what and it, I plan put is exploration else. as from about on they're we've at saw think going level standpoint, as it it an we talk to can that is done tell you

we're And confidence additional so just what looking for is. their resource is inferred in what

done on see I our without we lot plan. from a high-level, it think more don't We already at have thing, mine put milling it could and testing this drilling, issues from we a reality a standpoint. do any is the into even metallurgical

Ovais Habib

much. great. me. That's it that's Okay, so Thanks for

Operator

Our next with ahead, open. question comes Mark is please, from your Securities. line the line Haywood Geordie of Go

Geordie Mark

out call That's change can resource-reserve run that to implications you MD&A future into are today. additional expect over Maybe that confidence for we And/or, come sort what at reversal, the the looking financial resources? for as And now life the of Thanks of or of given implications in to the commodity assumption price flesh an migration, assumption. could mine in [ph]? drilling you there geological the expansion potential shown and the estimates? Masbate to XXXX updating easy perhaps

Clive Johnson

little clarify a Could want question like clarify there's sounds maybe parts? Just again. to you bit, two it your just

Geordie Mark

Sure, to would the if any? drilling estimates on from other a in that, is be the component part what resource required the first a fulfill assumption? be And would higher near-term there arise gold changes price basis reserve any to

Clive Johnson

to that it the your what looked question, price with out was can gold gold projected bigger gold answer to yes, existing came death, the And at took - get prices. prices. of we higher we Geordie, that current increasing had, resource pitch we the with and it or

And of next drill been get the be we in and we've update program that much that some year, will to drill results this be some of doing material have now, year going we'll with hopefully take the into AIF. from not this that able doing resources to indicating possible. program continue too. and going the of we're get It's as the to to was So into the that we're as areas to complete, year. right But

Geordie Mark

[ph], that And last That's do there a maybe one pretty question, little because on back. good, thanks. while we stay

from commentary. following maybe some Cardinal, Bill's on of and Just [indiscernible],

Cardinal drill two with down the to boundaries of looking rigs on continuing the planned basis - at and loan sort drilling at currently pushing still out You're [ph]?

Clive Johnson

at Cardinal, to drilling drills. in Cardinals, for core Right with now isolation capable one just we're this down and really drill, to deeper COVID only year camp set up manage our we're

drills being us, see plunge down areas with a the Mamba, now a So significant continue we've up three the in part as different going pushed other drill for one we but of Cardinal. that we upside into still

Geordie Mark

Thank you. Appreciate it.

Operator

ahead, Go your is please, MacRury from Carey comes open. from question Our of line next Genuity. Canaccord line

Carey MacRury

Maybe Fekola things strip there versus question and does of widths morning. in in proper good it Cardinal. getting mining, just maybe compare the of like ratio, Hi, another terms terms and How grade? on in

Clive Johnson

is it's meters bit see width, to Fekola terms We that remember, couple of place wide. close narrower a In hundred a like don't Fekola, got at anything Cardinal. than quite to you

on. width maximum and we Cardinal XX or really the think meters. resorts, yet, I the haven't upwards mine plan we've completed because less close seen than ratio, Cardinal Generally, meters. have those can't at is a don't resource the Strip to are put we other decent XX

that that the what So have be at the course when inferred, updated, first And a be indicated. to point, the on plan in better guys resource the a quarter, of portion will put we'll idea it'll strip mine we it. of engineering will going an is complete a Then, be.

Carey MacRury

Kiaka. Just switching to

smaller, higher is You like this the of mentioned bit what looking of there. owner Can give in context some thinking project you're the around just sense sizes, you're considered terms study a technical what of a do previous grade there? plant a or coming what you and us to there

Mike Cinnamond

that. me to answer You want

it to to pass Dennis? want You on

Clive Johnson

the missed I Sorry, question.

Mike Cinnamond

Yes.

general, what update study. the in looking we're feasibility we're So to is looking do to existing

done. like, talking there. we differences is already things in we're the studies primarily at around size know, obviously, we're have fuel really, gas The talking but truck looking looking a is is costs, play dual system per now, all natural the through, we're think running and annum you fuel So what at. really we're about key And XX I because been tons million plant that's those

the tons make per that cost really, project annum million we're and at to economic. so XX about side, looking And

Operator

Winder Go please. [Operator Securities. our Lawson ahead, next of line the Bank question America with Instructions] of from And is

line open. Your is

Lawson Winder

thank Fekola, the you on quarter, taking might question. for Hello, Great gentlemen, I just ask.

XXXX saw With increased equipment, we mining higher last be be technical an in materially the should expecting doing? mean, grades the increased have what to we you I then mining now the and in like study?

Clive Johnson

call the correct here, Randy wrong. I'm it me if correct, is he'll then so Well, I'll and answer can on Randy

If you remember, that equipment, this study, right. did optimized mining we it we when for

employed we one. is kind is, did an stockpiling from optimized we what strategy So of day

I PA in sure. so see for next than you're you're the in anything in different And think coming a seeing XXXX don't to going up what

had what Randy? PA is of think get, am going what correct, in the I I you're So kind we to

Randy Reichert

Good. though. correct, That's

Lawson Winder

helpful. very to then that's And want Okay, on do Kiaka. it I ask again

But it very it intriguing, some considering? an leaning of we mean, you point? the asset as towards sale know I'm high is to potential the if it's building yourself wondering quality I probably So at you me guys at Or still portfolio seems something you're it. dilutes the looking are now, this I it are know, like think to given existing guys assets it's And just that you you have? extent,

Clive Johnson

question. good Yes,

in pretty the we've I have looking gases in doing internal think our release. actually economics the at, just some Kiaka. mean, evaluations. to been it's and that option, that is days think on regard. - other we pretty some fuel solar, mentioned etcetera, potentially, And news that it, know, early we I I some a things, natural significant And you of have we've been impact,

and some we some compelling have with show runs a the year, new have clearer next prove internal of feasibility we that then a resource middle study pretty can So if that the picture. economics. we'll by updated up And

think, Its it's ore more know, it's asset some just for I it's the of good interesting us reasons gold price; because million body, become I explained. you X of to ounces. not become

it shareholders. think So value some I unrealized our for has

is job get our So shareholders. value for to

through looking to same We've I dig the not So our would not you do. change mines, two it mines as know, gold start gold we think and going timing, go time. the building we we're said we'll month start next that's strategy at always something better, at understanding

of scheduling period value what at know, look of time a at over once. without we're both and to at potential from of say, and So there start that we'll Kiaka, unlock between looking Gramalote doing you detracting the is them opportunity you

So we're going time to see mine disciplined on a at to our approach construction. one

be players bring key the players a in there to Faso. Burkina are mine. in and the partner would So active And other build alternatives to other

a ultimately, as Or find well. to attractive selling always good it's it deposit, would we others the think asset. mentioned I consider As is the potential, course, of

at over months. So the those alternatives we'll next few look

better a we've succeeded. of to somewhere around significant XXX,XXX XXX,XXX If can, government And has of those have if project where produce lower will time many a current that country You others potential know, the Faso, the is it's become Burkina for move if [ph]. in ounces is technical obviously think to understandably, gold And reality, a asset which view go year this a very they early. could got internal internal see we current we that that economic. the view, long fuel forward of or or costs, period

So that's our current take on Kiaka.

I potentially it's becoming think for significant asset sure. a

Lawson Winder

mid-XXXX, is helpful no, remind preceded Okay, that's great. be still to updated now, study? that us, have out feasibility is sort an just And of color. level recall, can't tremendously or That's then to the study going I attention

Clive Johnson

we we've have got - a full desk, we [indiscernible] Well, study done we before. feasibility that

to I will updating first a feasibility feasibility middle view by going resource, quarter think I we're redo but the but the on Now be guess. years, be full better the think, I we'll the have study, a internally it'll though, full it of

Mike Cinnamond

have by by middle of study where completed, the that do to good then really of And that around the a is feasibility we're first to take $XX base it the the get going year, our we're to the we'll really that end first to all and economics a and going get of principles full the hope decisions to into we quarter. put solid work year. around to economics redesign middle have on, goal the the thing we information that's Yes, to million, of the study

Lawson Winder

some very follow of you. guys wanted price just reserves, question up the And mentioned during use one to Okay, just Thank that's And gold to then, that assumption, ask for helpful. on you kind had intend that NRC level, go [ph], final a planning the light $XXXX. I prices and change was Thanks are in how conservative partly versus your higher? are thinking and around be of still choosing your others peers more XXXX, of the year to not bit what little whereas particular to

Clive Johnson

want Mike, take to do you that?

Mike Cinnamond

you the look think, you consensus. I know, [ph] long on reserve price Well, $XXXX, term we repeat that if the at

at. we that take as basis anything So to reasonable look of

if I anyway. three-year different average look trailing know, think lot whole back, You not you is and the a

then Still, honestly, in to current where the bit of got we side, fair level. resources definition, kind that's the on in reserves. by And be needs is to the higher reserve and resources higher priced less So than XX. pricing which

it's think we range in the kind ballpark, at range. this where the NFS again, XX, So consensus so are, that from if the is sure, in we of look the [ph] you for

in looking at at up things of and has the how what that's analysts combo order where So of forward, what kind to we come a going that in in least arrived with at it's it, happened, we value price see the Tom, comments each and price, reasonable there significant terms what have so in must your, think reserves we know resources. change especially of location,

Tom Garagan

don't just se, bring a low-cost point based a of mean in end talking we of per from producer, maybe we the the corporate try we're $XXXX on today. view, Yes, know, to at and I we're day, what about, gold mean, versus use resources I

a ounces years five around average. [indiscernible] being around year costs. sustaining million next So on pressed And we've up

if one producer. cost of costs, the not So lowest lowest we're the

maybe very $XXXX, really at we're producer. think use have guess, conservative I or I $XXXX, could good people We're conservative. know, we we're a So low-cost don't and

many use, price choose like gold That's bit play in a bring price companies, higher resources. So a and money, to other we to make it's we not, gold the or reflection, using try of don't desperately game. the not to

does costs So of to our making it higher dollar we money, using I $XXXX dramatically gold. reserves, make focus money, we're a neither $XXXX on would gold, mean [ph] and at lot to our costs go $XXX expect for not gold

give bit little want you insight. of So I to a just

don't need need But ultra-conservative we You guess. can play We don't to. to the that. game, do I

of evidence XX speak years or that, last I the so accomplished we've should think in what think. the I

Clive Johnson

Yes, and maybe just to to add that.

seeing than is harder. going when actually where it from waste for reality, based your grade be going which really How stockpiles, to low not to dumps? lot a makes this it put lower is of And on standpoint, stuff, that in they plan cutoff you're operational really design you is grade all what are do we what we're for which much you One with things? struggle what your you numbers, things an do the are, have how

think kind you us right. up end operationally kind of is running of and is so we $XXXX books So two for what

Lawson Winder

Yes.

Okay, great and, that's guys that again, illuminating Thanks. Thanks very for helpful. quarter.

Clive Johnson

my raise was to for engineering we is think we're those view. thinking, moved questions the understanding that it's open can that, resource Cardinal. it, [indiscernible]? fast on right? a we narrower need why near-term. better full I some on have we we for potential ability narrower. And the like there's tracking more point it's Yes, [ph] to Cola, for good it it so respond of in a have We though despite just don't And yet, Cola, that we, fact The think I might reason, an from even

Bill Lytle

was Tom past in too thought when answering, actually, that there. maybe I'd But it throw Yes, I moved quick. we

wanted So put I were right where moving guess, historical to thinking our dumps, we it there. requires originally, that's next waste about we context, some

And so to it, do they they had obviously before condemn could it.

for this And sort which pit. so, they some of started an is surface, surface great area at identifying at potential has small

bury to waste want a that dump. So we didn't with

we resource to ounces. said, those plan potential put a there's pull mine and a very we on So okay, a rough, inferred Jesus, said, on

XXXX. was and XXXX that study and are we talking did. about, those that from that is Those actually ounces so And I that

a started we what once this doing oh, pit, little this - actually we open an group we think potential and pit, there, came come happened short of the regardless then, pit said exploration there's here. that they project stop know up then with. there's But - So much what that, on is bigger

And now. so, right that's what they're doing

confident, very least, larger. at at get potential we're this much, the for it much So, to very bit, to this the with at open small

Lawson Winder

And ultimately potentially? underground,

Bill Lytle

And underground, ultimately, potentially.

Operator

DeMarco your open. next line Don [Operator Financial. from of question is the line National ahead, Our please, comes Instructions] Go Bank with

Don DeMarco

It's question for a Mike. operator. you, Thank

XXXX. due the of So until some XXXX model Mike, not with pre-payments tax payments? offset in tax that they're we XXXX, Should lower maybe an given from

Mike Cinnamond

in jurisdictions question. in the settled other Yes, the mainly basically the year is way up Mali works - Mali,

So prior-year up you following actually, April, Mali, installments then true based it. in it's it pay year. on you you the you Canada, prior-year, the pay like It's do in do you the on taxes, that based

in next whatever payable yes, as whatever you've up December, April taxes the in right. you modeled prepay that we true year. That's this actual would So year, reduce from

Don DeMarco

XXXX, you for you as remind prepay do Okay. then, And XXXX, did in just me what in XXXX? did well,

Mike Cinnamond

had memory, XXXX, - was $XX I small paid from we it either million. $XX In or think we a prepay, million

Don DeMarco

next only maybe you it's and you've mine the consider question Kiaka, is, Would standalone? at or Gramalote just My mines two your built overlapping past, practice. Gramalote Anaconda of ever construction and time. in Okay, so one a like

Clive Johnson

at to well, a at on to time. by started mines okay, more add I'll mine and two focusing build interesting the think great, when we're but to that. was to going But been is, successful look say, same we've initial very I building time. principle one My the Kiaka reaction not

we to to an the response. be So need same partner a But without of to within pass conservative we find started I'll scheduling in Bill consider we're timeframe the guys both as assuming point well, then might Bill the need actually, early. was my if were. going able and and you or as them that's someone our one long view, a maybe we very consider was it's alternative I on for overlapping, progress thoughts. time. to strategy said. it his And around and able term, partner, It's at stay to mine to playing build but to or to it, first might from Gramalote we bring a in, be saying, sell where

share we So can can to give if but with early notes I guys. it on just of days, you early some that these want around throw some

Bill Lytle

they're waiting then start is talking looking ability, off came it you And and to can job at the purely up, the come next had earthworks you earthworks this it, Clive, construction we Sure. course, for the to. as and site rotate point, your in be and the said, able team team then first, if we're in would to question big at the conceptual. come of But money about back to do slot while the everything you

project. team, for certainly we rotating have there us. smaller never have a the We've it, people of have capability. path that. new would various definitely maybe projects, the done to And facets we think it the be you'd is we basically, the do some So so into But exception of

If they up maybe almost the always least at you to guys, wings. seniors, look crush one our have top waiting the at person in another

there would a that it. the it do to of scheduling. take so, probably lot is potential And something is But

Clive Johnson

Bill want with in now growth. as still say are we industry we that some obviously, just as We the an don't there just proceed I'll investors it caution, said, asset. look at that believe

their management of lot a funds past, still the investments. of some mistakes scared the are think of from gold of I and

about So do a that and freaked looking what generalist funds, about growth. a really well-run the good is out some business. we're - company can want they of dividend, at who and grow pays them at But they're

We've we've pipeline, that of them we'll got we an in shown So we'll our take assets grow think review yourself. responsibly. impressive and the XX lots approach over ability years, to

Don DeMarco

Okay. to Greenfield a question, and pipeline final Greenfield there. at, But potential your you've And looking just maybe just still opportunities where made now a respect still? mentioned actively combed remarks previously Is stand it right you do something to over stage small M&A? something how and out you you're that with there's adding maybe not lot pretty

Clive Johnson

are there and scarce think we those highly that's today, don't that meant when therefore, look Yes, that out lot or are development to perhaps, say And love at a see in I I we're shared there valued. we that, with.

Bema budget, and exploration, believed that's budget years always Nevis years, the strong industry-leading have come and the back. very with their a We BX all success has [ph]

looking exploration we always an ourselves, Finland, of Greenfield opportunities joint others, a continue. such for will venture they in with Pakistan, whether be opportunities, there, we're as drawing Uzbekistan, be and So, that we generate Government whether ventures, they joint are the interest that

felt was So by here. M&A any exploration Very driven there not to and potential continue will us we think the do geology, to be unlikely geography. always for major world, I in it

beneath You of Anaconda, Kiaka, well. know that and and all mine assets the course, take; as find get going to growth a about if in that more be going now find out let's and saprolite have, let's And we let's what value. Anaconda will out profile, once ultimately, the with the it's Cardinal realized

And A going potential And in definitely the Brownfield, significant a pipeline these and we see was lot of will the million. some somewhat in understandably we pipeline with good at probably - is million a going opportunities of market, next the this stages. to year very to unrealized So talk that to assets, $XX think but more can't - expiration continue probably exploration we're $XX budget of going probably somewhere about that there's for of yet, be be we're opportunities. looking worldwide. be to exploration advanced bunch year

great that's team, we So and with see we exploration. growth looking definitely the have way a an forward, our

we course, always will them; ones continue want always gold be as the utilize [indiscernible] we to want. you Of

Don DeMarco

thank and for for thank answering questions. Okay, much you my that you very

Operator

further no back are like to At this in Clive There queue. to call Johnson. questions the turn I'd over time,

Clive Johnson

your party the you, out time. to Ian he'll And and you other for put all, questions Okay, of feel thank appropriate you answer to shareholders, any to in touch with including your if free MacLean to questions. reach occur

So time. for your you thank

Operator

Ladies and Thank does gentlemen, call. this you conference conclude participation. for today's your

You may disconnect. now

B2Gold (BTG) 4 Nov 202020 Q3 Earnings call transcript