BTG - Earnings call transcript Q4 2020

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Operator

Good afternoon my name is Jason, and I will be your conference operator today. At this time, I'd like to welcome everyone to the B2Gold Fourth Quarter and Full Year 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] I would now like to turn the call over to Clive Johnson, President and Chief Executive Officer and Director. Mr. you Thank begin may Johnson, your you conference.

Clive Johnson

as session Well Welcome a where everyone. Jason. financial year, for an which shareholders joining numbers was we're into QX everyone. us our conference results And analyst other had interested We useful for I to XXXX. we call this session and parties. well year-end put production Thanks, and thanks that very to for think our discuss is this welcoming

analysts help if can when your detailed the the transparent Ian. forum. up have right. detailed have with we’ll models not want detailed Q&A, So to would XXXX answer or asked we to you be to of strip Maybe this you modeling modeling those questions Masbate put call the in you we that or we I in where kind those questions. discuss continue just in call; follow to We're you this happy in up get touch whatever don't with open ratio to you separate right with not in person he'll in and questions ask you do a But

very in to of and our all is employees, In all I as talked culture, lot operating about we a like think terms trust very We the do I stakeholders XXXX, a of we did our we've of have But it's of it's particularly have testament COVID. think hear before. we've projects I think it. all terms proud think the going had what like to of our accomplish, a stakeholders. from different improve these very and countries they in it a our by I of and with challenges to and all remarkable overview, are to measure you're year, year with any to been COVID our successful results, we're think time obviously, of I to this financial and these things relationship well having able Mike. But And

So one we the and in, have common do employment if governments in the the thing which all in great these that taxes our to other the and up, in we employees, countries keep company COVID things mining, and was local all we're our could we wanted around pay do safely. during do people the people it countries

results of the of as during executive and shout So to of excellent want our I BXGold all all family us this challenging tremendous to it's as out for mines, our and rerouting employees great the at part job do teams an management been a of together, to just time. team all

about continue production the a our to to to and operations going we’re our minds, grow optimize also strong company. also, forward of results and continuing a be the just existing of position to hear continuing you'll further utilize in year dividend paying ability So to dividends with strong our cash tremendous dividends, that very the at position course, financial

are now, year. Study Feasibility the out forward things you lot bit there's this In going in results little terms of a April. get to have Gramalote well new looking the happen They we but a of release, in laid

very very site location. their, things their partner for their for well Colombia, are were Investor And very are project. the we and study, of up And well positive plan As we in printing very we're on to from for what future they've much AGA they development be thereafter. a apparently, hoping think going very it's wanting and shortly in strong Day a worked then an be as yesterday, a optimistic would following part an said good, that with have important we I terms had about together.

other of a to a the positive development we and study feasibility ground we decision. if Some and have have positive boots try in get the September on requirements,

time, this time, pretty at some partnership the and it's the for So been same much page. on

this this happened. I of We'll of things the the some Kiaka. the about coming the study. at gold cautiously we'll But not we're results year, encouraged point, of year, It's Kiaka reasons updated by see optimistic we're guess Additionally, up have just middle for feasibility are really the an price. have

did this more model one. resource We have and haven't some for a better we drilling

of The other etcetera. things significant potential costs, power, fuel the power terms potentially changes and are for in

at gas, dual solo fuel that haul etcetera. buying natural liquid and hybrid Looking trucks, policy

be So it's could the of suggested that gives economics capital reasons run internal attractive. prop quite to us

more know a by June. that about lot we'll So

are the those So two projects. key development

budget back about year. at our probably we history that you we're success, time. for terms of think say bit historically, of money ounces And Question of some able to expiration, spent the exploration very a had the to of that. this tremendously back on out long period resulting questions. utilizing a or have just look a I have run but very in of Greenfield, would the We budget look part Brownfield should large to the I important pay always a actually our record it. But But successful Brownfield if fewer. long, answer and thing we've Greenfield, this from numbers other had and to to be ounces terms we your on $XX if talk being million of both questions in generated exploration, just about little discovered The and touch going one we've in day, we’ll and over track and a exploration do obviously

it lot exploration of excited greenfields. of we're of be out could a There's a number Brownfields, I million And point want year, and life. us. time, things budget XX to part term And company long a a just to Over allocated has continue the lot ability been we've there's our exploration. this of there's to grow that up mine from this a about. of to been for for very marathon of So going is and for this extend the important our it's

to girls. and on continue have driven world geology, we not will geography the and We the by around beach as be been being

getting the to of for the great class look is started some Uzbekistan, world as now while, we things we've been opportunity -- actually when for XXXX, a days deposits. So in pursuing a pursuing that at we're

So we very venture, they're joint have a targets, excited the that. about seeing we're

other that of then Finland, And cardinal be which mill. for major additional near we're And potential, Anaconda In potential we a additions exciting addition, our could working potentially, things the detail significant very we course number into area in news as well. in the some which we're have about to for another the zone potential add which on, then obviously. drilling of for has discovery. there, the throughput course, term, there's of the or zone, reserves And Fekola to

the under other exploration would big in opportunities budget there's onto elsewhere be million detail be year. working which So go able we're on opportunities, the that all $XX you to more for potential we'll part as that world, of as

So I talk of a importance bit and point just exploration world. to the that little about of to out wanted on-going importance

can that. you going questions our I And to as who's numbers. So Mike without, Cinnamond, CFO think would to pass said, it after the then open through financial we walk I just to over up it I

Mike Cinnamond

Clive. Thanks,

also cash fairly about reporting, the discuss for it's So and a the a that and few comment quarter just I'll given year-to-date well. the year in things flow then the end results, on briefly, talk as overall

on ounce. firstly, $XXX had So so based XXXX on average we ounces sale the was the an of revenues at per that million, XXX,XXX quarter, of of price

move during little We they pretty produced actually the QX gold New that as XXXX And prices in in much we're than what we year the given higher no for period, saw, timing now that QX is we in the changes sold with what QX saw gold that gold for good a Year. QX the bit on was So so seeing that there. Q significant into highest prices. went we we

On side, production production right basically. the quarter on budget, good

XXX,XXX So production tradable our the to of share total was ounces. ounces including Calibre

operating budget. budget. much our the was right XXX,XXX on total right ounces, And much pretty on pretty from on So right again, three mines

the site Otjikoto, ounces. to production than XXX,XXX nothing had ounces; comment on XX,XXX budget. basically really So and other Fekola, individual ounces; XX,XXX Masbate, they

how production how at guided cash QX. that is of we So of this look into kind when costs, look budget in and think, at you take I a flowed it and

ounce, costs on and cost of higher -- an to Total higher and benefit, think, there, Masbate continued there. COVID cash $XXX higher XX% the fuel on the at and per cash which of ounce over side lower sequence a which about produced, site Fekola, the mining at $XX the costs some year that's just Fekola costs. to dealing -- So -- costs budget, budget $XXX, costs labor under stripping higher some were at because mainly on ounce than lower where HFO with on and And Calibre, is changes than really total were those Masbate all $XXX come from from ops, especially prices and sort also cash budget. related and cost side per actually haulage during including is from budget. was I than $XX like personnel

actually and because the remind don't budget side, reason budget on as it fuel from XX% they to was market. costs just costs HFO The right the West were price the border the fuel the there. the fuel country in includes ports you of some they're Fekola's over taxes. well, government about Just bunch general the into over flow sets for take It Africa, to costs cross

price, seen them in doing year. the underlying government market we so So sets the during the price haven't the and follow

mainly during to all-in also see Then mining going costs was that which it's and sustaining much dollar ounce, at because again, ounce, fuel an as from the ounce And weaker a share what at in $XXX benefited slightly did happen $XX $XXX $XXX QX. costs the ounce, Otjikoto, per Otjikoto due of over they is our we sequence thought just year. lower quarter, total to Calibre, to higher an Namibian we moving than including an budget, end Finally, pretty was guided, changes just also budget. for overall, the

$XX combination period and a a of and most then in lot of cost was that's fleet capital the higher-than-budgeted of higher timing also cash So and of about that ounce the sustaining cost. was an it

it overall relates we'd originally comment budget it and maintenance that in most it. earlier So about had year's related to CapEx portion just significant going the or quarters to either then fleet delayed million or and results. sustaining costs And earlier that I'm of to from the lot $XX A in year. in rolled a just of deferred or the had purchases higher period, been of on from now quarters fleet we

in ounces $X,XXX million and just X side, for average BXGold with ounce. under the for over per So sales, year of annual record billion firstly, price on of revenue $X.X just the sales

excellent So the in year sales side.

our share is produced including total, mines, X side, our at Calibre, XXX,XXX production ounces. X,XXX,XXX the On ounce from

were the you at million context COVID range if at Oshikwanyama all ounces. XXX,XXX X.XX that transportation dealt right upper with as end dealt COVID the they that of look Otjikoto range end but our with COVID end range it right you're its And through the of ounces, XXX,XXX Calibre of of but was COVID And side, very above the middle at also got at shut from at the of was we production production our We consolidated their first in of the the in time, in consolidated XXX,XXX year hit of to year also ounces. operations in changed earlier came so super-typhoon hit look and right with range. period Masbate, of million X right and ounces the for had And components the XXX,XXX the when year. had production they the individual that's as Fekola, number that only X,XXX,XXX seeing. to that dealt Masbate in The in ounces. results the guidance still upper Nicaragua, on never guidance effectively they XXX,XXX high down We XXX,XXX of range ounces its ounces, some a our not still the ounces, they to you've we a XXX,XXX Philippines sites. And to experienced to well. their that's ounces as with XXX,XXX guidance. based that ounces XXX,XXX an range deal And middle. earthquake the end, of in for does well challenges of as and

all-in $XXX and So the very now Commenting that's all consolidated sustaining including costs performance at impressive Overall, cash sites. $XX year, basis, on a for an share ounce ounce. budget. costs on an at our under so Calibre,

offset was higher cost Masbate by costs some then and but see Fekola, So did we at input savings that at Otjikoto. both

were $XXX upper was range pretty much Masbate, which costs an costs well ounce, all of at ounce lower they ounce, lower by dollar. the benefited Fekola an stripping when costs, just below end $XX per its you and we $XXX produced, that's all-in was $XXX Namibian significantly than input anticipated. into consolidated ounce. ounce, and $XX then Then they the that from $XXX at and Like individually, translate under say, to I So you like per budget of ounce $XXX million. budget also guidance our is per And ounce $XXX per Otjikoto, lower fuel budget. benefited $XXX collage including and weaker that from said, of a share costs, against sold, Calibre, an

just per of came $XXX end just $XXX guidance under $XXX and million. pounce. it $XXX the range company's Fekola So budget, of at at to under in the low was

slightly $X,XXX the $X,XXX saw below its is and so per $XXX on Masbate within an ounce And of royalties And we in an based as So result gold ounce, slightly $XXX than that the and it which costs. of guidance well of of budget much also ounce. when pretty basing low its sustaining price $X,XXX range was sold, $XXX range range end on lower ounce. this low into of to we cost to $XXX we're calculated price $XXX budgets, guidance gold year. actually flow Otjikoto input to on do just remember the above the all-in then and to that the guidance per a much a certain higher a its at

we So Couple on where significant like the at we on of and I release January. in sites. And all comments how guided site. pretty early when excellent of we year think QX operations-wise going put from I in said, stuff out production much came some is

effectively. completed Fekola Fekola operating It Bill that slightly of the come to sure million, end operating expansion comment mill quarter going bit the is $XX So the how at And and by the see QX and about about Fekola, came did very we in the in XXXX overbudget fleet we by forward. as it but online little while in a go COVID-related us a be that to and ran solar delays The It labor solar new in actually to due originally rotations complete budgeted our suspended mainly to was room completed at overall, labor smoothly. in camp and plant plant, higher Fekola. costs, the but more XXXX, we was give regular the the for forecast to for operations. I'm

is online they XXXX So it scheduled through to installments in did recommence come in and later XXXX. now

solar part on should of then fully did have the site, We this destroyed XXXX complete first of in The and first third of at by which fire quarter. quarter some it turned the the panel. be a

process of So in the we're replacing just those.

end third development third So near Wolfshag the started, of underway. out underground, the Otjikoto, that that the pushed quarter. slightly XXXX. basically date completion the development Portal is to quarter At of of

a get Masbate that for on delays this are Again, early under pushed Otjikoto through completed into plant and basically budget costs into ran We Those million There CapEx experiences national about no have XXXX, result COVID Masbate that. as done target will full were solar went We're smoothly. in a year, into it we delays underground be just our the the production connection XXXX. we've to bring budget Masbate, grid. we're schedule we're are connect that just year. powerline year development at because as a under this We machine, forecasted. as about under still for the and out there's $XX or $X the where so pushed also will significant on -- at going XXXX is mid the year. to to originally the in million

in a In the have delays, we're actually XXXX. to study CapEx to little fact, track but still year, Gramalote, under late we we're program completed fleet April. million for what XXXX, there of feasibility of and got on of a buy we did We was going budget accelerated the completed, mainly share in some due early XXXX. our early we the completed even $X COVID still our the that exploration were bit from about to we

although by XXXX. of that Clive second pursuing the course So didn't we couple the and side, budget are to still quarter delay costs. for the study key track end that fuel, of then updated there. under a we're an on key mentioned, XXXX, we're component of still comments Kiaka. that A the of it activities cost And we're maybe revisiting our on at of on have as we're looked -- through the We

the have We with years XX% fuel by of year's fuel the of and subsequent through to year, that's in up up our fuel course is XX% did us and hedging needs that we now cost the quarter rise. where we we catch hedge of seen next we've through go the still XXXX. first the the of that as program maintained needs, mark-to-market the And benefiting position and as terms we in were end of of

start-up of slightly things our now duties, for when out costs release at came Mali phase there up, customs of well activities the Fekola. some production X-year reached there, I come We of we've exoneration XXXX had as that we did as that One in a think the and phase. our higher was are mine exoneration we post and

for about on impact So we imports. question to what that some face there and have And Fekola. was was more a duties customs

statement income of an revenues plug your MD&A. costs. for to on comments that and A So the about into that we want those quantified you side. It's models. $XX We approximately talked ounce that for the now in few

we're -- were there, consulting do in year, there's remaining remind is Masbate. the We've equity and up again, Calibre counting a P&L lot what less lot to year. last $XX million current you we significant of travel G&A about for just a to $XXX of taken would just costs do. Masbate we normally there the of that's in side, -- COVID results. that full that the at our historically where the impairment item with million we certainly a got share and a but earlier the reversal impairment A of restricted as lot we There's year, under that year, On any less in reported reversal. in that's we're

$XX So And we have Calibre during pickup shares We year that. the investment we related do a significant a million the of to had Calibre in deal. took part shares. of approximately as

they currently value So a of market got million. around somewhere $XXX

definitely On you the taxes. tax few know a on that quite the analysts had side, I questions of

also total million, accelerated year taxable as anymore. on we of sites and $XXX accruals now. the at all just go. complicated. the And so tax booked includes how you write-offs income taxes tax remind the it's So little reported an and charge Fekola. tax of is at the situation, whole and it priority to What's -- and was that, don't Mali recorded also for paid, We any any basis dividend have sites costs a -- that paying charge We're that we're quite

you Page works X. on XX. Page out pay Page bit cash to So explaining it And then the on more the news on them. also MD&A release we've on detail. on how for on It's in and guidance a Fekola that we've And dividends, we some X, how taxes taxes for lay all put the tried in just you

confused will a to if call hopefully, So up. that any questions also want little we're any you on of separate answer for follow to help happy still clarify you that, that and by are

the be you $XXX tax paid for main million liabilities tax that of XXXX. remind charge $XXX million $XX will Fekola or million includes million for that the components, been in That Fekola the $XXX priority the paid to year. $XX it million And hasn't of just So payment on dividend. remaining and side, about income XXXX

that So again, the we in MD&A. laid out

now. you for clear it's hopefully, So

share the attributable quarter, was income or year income was net net $X.XX $X.XX the Masbate ones take -- to we adjustments. noncash For income adjusted. the Year-to-date, shareholders net out $X.XX adjusted tax or or per items, impairment And million share per share. was our for EPS income well, -- the per actually, $X.XX $XXX share. the deferred year-to-date adjusted, per was $XXX Year-to-date, million total after significant $XXX adjusted reversal and million being the main and

the statement. couple cash a flow Just on of comments

million exploration opening get of hoping and discussed to lot the of was of I that less year, offset unreached big CapEx some first of The taxes. prepaid in million share. thought and that The of I total, at we were $X.XX for quarter share. to that's the line is we Otjikoto, number. the his under, for it that comments or $XX on approximately year $X restrictions a which in greenfield overruns per and that in per $XXX about remind of We to And $XX the faced, as year, we -- main end cash by $XXX as are some million. expansion stripping Wolfshag bit under. components had we're $X And of both guys ended budget other did which exploration, it of for after to that's because mentioned, the with and some the to Wolfshag but next kind for our $XX Fekola million -- total cash undrawn power million to flow was of is on So alluded full a $XX deferred the were statement remarks. budget than only that of in cash $XXX million, record flow, a costs. million of one approximately couple underground, operating year, BX, less of the up under million we're this lower We we $X.XX you remodeling we year, as I million didn't that And than QX. flow the CapEx, alluded a we some further Clive the is slightly that get for

and financial the ended the highlights cash year I at of think of credit we million summary the on. Thank the facility highlights $XXX that's that I And have available our we amount of $XXX our year, full the is million to revolving wanted touch disposal. that a you. -- for So the

Clive Johnson

Mike. Thanks,

Just remarks on opening my neglected strategy. I was to something mention just in

potential we've clear I But think dividend news really between have without from remains the growth ability at area, from and company position to the which etcetera. year, brownfields a release in our for strong it's had. projects, But all calls same, is the the we pretty the ability having strategy said and Gramalote, confident recent advance at value pursue in the both maintain Kiaka, the the of to we're our greenfields. and And the aggressively shareholder we pretty to projects. funding growth and our doing obviously We're financial paying this Anaconda over our M&A. exploration grow

unreal us this sense place of be can look to But always potentially have the point we'll opportunities this to at price. of of lot haircut have we M&A We'll end M&A think the because at But what have the course, that plan of value it. that of We're we'll shareholder companies think, day, compelling we though a seen of looking. making do to as extremely something plate. a ambivalent have at for come whenever as are we have look our going good shareholders, quite we certain certain about see. M&A, we for on makes the which comes obviously, adds and down the on given well. definitely even would at you is at, we and all to gold at along it hard by and I a companies tend If background, other so be expectations So big point, had because have value, from highs were the that

think to So I with it questions. move that, open to we'll up

Operator

from first Your of from comes Tyler Instructions] Langton the line JPMorgan. question [Operator

open. Your line is

Tyler Langton

Yes, taking good questions. my for afternoon. Thanks

I you sense, in material you you be in at year it with contribute to the mentioned have is out do I processed on a -- production some sending what Just know resource you I Fekola? Cardinals guess of QX. get Cardinal sort this at to the guess, after could when to mill come of know terms

Clive Johnson

Bill?

William Lytle

little and question Good should sure. a Sure, about Yes. talked bit. maybe have we

remind is it to everybody a all there space were to discussing discovered really just resource chance create at was Just when quite a basically doing at why because significant there. condemnation Cardinal this drilling. we're we But

we've and the budget per surface vein. had tonnes have the there close competition the seeing. of is or of has a showed million that off we I think than And up XXXX exposure ore while expansion, body So is even gone to the we aware completed which very everyone hoped, at probably that a annum September trials in in ability, tonnes is our X.XX some run XXXX and we million the done throughput per X that at on we're annum, minimum, at ore based better

capacity. extra this have we So

the near-surface course, mill material, is on on Cardinal And to it. sources. resource. And drill to the coming closest alternative which source Cardinal continue in on of we as really that resources, per out at The top isn't focused through they're exposure. X.XX low-grade is resource, going opposed the looked so material million the campaigning of XXXX low-grade running And annum, tonnes to

XXXX. what we've done and now the of what geologists a So put we've pattern resource in resource near-term, inferred we've is taken have success mini for created that across created, great kind the open-pit our of that own control kind and

increases that, of from the it grade sample the things and it, does the mill. for asked a and profile the us. ounce approached the As Obviously, -- part of couple to ability government bulk we've that obviously for

you the exposure, probably like we ounces. we low at somewhere putting think through the much? we're that question were the an minimum million that that an we're to be in because run was, so range just be adding near-surface We How resource be XX,XXX grade that we just there that Cardinal with looks going add-on that. to like. kind additional And ounce think that's grade, XXX,XXX plus X we'll XXX,XXX if asked of will low remember, we're bottom like But more tonnes, going -- tonnes. think Certainly, XX,XXX, -- now it And to XX,XXX is the that add-on that's with case

rest question come so So you the do with do got is, of we've which the And now what Cardinal. there, from could that? capacity additional

area, the Additionally, area Code bulk we're some in or and of we've got looking XXXX so potentially Mining there, some also which at Anaconda processing saprolite pockets has surface that as high-grade the well. got exposure, some and

see could from additional you well ounces XXXX. there as some in So

of with XX,XXX, like were through. on of all but looks answer short kind XX,XXX significant top working that. your of question is, But so And ounces, these the Cardinal upside to things it on

Tyler Langton

come, would And I'm that the year? largely just second guessing, half in and of to the

William Lytle

Well, So come half it's that's second going in the don't right? think the funny year. thing, necessarily we of the to

We are mine VP actually, at on like? out optimization kind the of I does certainly, our the what pushing Fekola Reichert, Operations, we Randy is And hauling basically we mean, that Fekola when from hard, look laying now plants? did very mining pit. right of optimized on our side,

process around So a mill? we XXX in we've we minor to we how XXXX the stuff? small we're got it set meters, up truck do to truck the of, this until it. contract of maybe the how for head do get our so trying issue It's And only but service

ideally, it So would in see we actually QX.

Tyler Langton

it. Got

this guess I of guess, better just kind later, lot inflation of wanted a when -- cost? that. of assume current of studies of Just Kiaka a to, kind reflect understanding the a out we come get and then for Okay. bit sort obviously, diesel, of around bit that they little level And I And should will oil, steel, seen freight. in Gramalote you we've with

William Lytle

what you level When this you what reflect don't do -- understand of you're I cost, say asking? current

Tyler Langton

kind have little -- will now? current these based of they diesel, of, seeing Or current more current in I be kind Kind be of, would the past. studies on guess, prices we're for that oil, these prices -- like, steel, bit a

Just sense get trying a to for that?

William Lytle

so No. in question we the we've mean, costs gone have I of -- into updated feasibility And So least that's a part updated XXXX. for a in a PEA indicated think AngloGold you're I XXXX, a these the it, very of sorry, sure. or updated -- full XXXX, level and we PEA, inferred the in at right? did which because we aware, so out for feasibility, PFS versus mean, quotes, at high as will I certainly in

Tyler Langton

That’s it.

much. thanks Okay, so

Operator

Your Scotiabank. next from Habib comes of the line from question Ovais

is line open. Your

Ovais Habib

and that's the to the you term, kind Thanks overview expected to on With Bill it was to Clive what's that team, taking Cardinal, you're reason time gave mean, into BX the how question. where previously should come bring which congrats confidence Is It that it now thanks near term, I'm around grade-control the based Hi, quarter production earlier. good near why it's I on into this? that and of of Operator. the respect given guessing QX a a be fact kind I doing thinking good think my just in brought drilling, period. was and on about for of. we

William Lytle

doing bring Right? is capacity in But Ovais you to higher-grade if say, the So really know that extra this we whatever mill. shoving now. can honest just -- It yes. completely could have we're right real into grade being where material is, we low the I'm answer, we're we

And it sample And Cardinal and so conservatively, we feel but bulk But it the I'm being going sooner. now. and QX. is I good grade bringing the could because bulk about about grade to we half even Originally, in swapping potentially talked honest you Anaconda in pretty the done I controlling with we control second sample. there, say happen yes, be that's are it everything, out should know when right year, of drilling being

Ovais Habib

of that just metallurgy having previously your Perfect. and has hand, And in just done been in that terms information already? all of kind

William Lytle

that. We about come works materially on feel think this way But also the remember, and key through there's much of what -- a But a its I'll maybe eventually how doing we've the Tom sample, bulk real which just very will good doing this with handle give on out. can it And yes. answer short sample, got mill. Yes. which certainly, confident got already is for there, larger this us let we've interacts there resource is answer we things what bulk there. one the Well, comment then that, John will and this how

Ovais Habib

for Thanks the answer.

William Lytle

comment you the do Cardinal? John, want all for on at metallurgy to

John Rajala

on to samples, ore. Fekola. Fekola very is similarly similar and done it Yes, sure, very The metallurgy We've Bill. the responds representative to testing

So we're get as that confident Cardinal. recoveries on we'll Fekola similar

Ovais Habib

is question guys at? exploration, or specific next specifically looking regards my should for budget? is exploration region focusing Tom. the one particularly we that And Or how John. Where project you there for be to Thanks, greenfield In exploration be excited you're budget, about? to going are with on this

Thomas Garagan

very dear this, because a all, many, kind in the it's big repeat generate this I'll we're at to years -- to say comment. in out at generation Uzbekistan looking for it, but talking a look budget, and other, next discovery dear if we've just slowly, doing a early-stage new and we area these has juniors heart and but it's on what what than doing we've and I make was worked a or I'm of to accumulated a many -- of If just I'll difficult excited see That's I say And and pretty culmination so projects. one of we're it's Yes. going of also we're on encouraged I'll by said excited there my first our our to many project right now. Finland, was and talking had and And question, property. a we're hearts years more things. I'm governments to to Rupert, been project by this. to we own what it drilling Clive

just for year. later things I'd were those generating drilling ones, we rather we plan now, myself keep On right this the that on now because other still to

Ovais Habib

Okay, thanks from Tom. That’s me it guys.

Thomas Garagan

Thanks, Ovais.

Operator

from next question Markets. RBC of the Capital Josh Your from Wolfson line comes

open. is line Your

Josh Wolfson

In interest, the I the still be priority expected disclosure. the things. and that quarter, the to? that the tax non-controlling distribution a there statement was on to flow you of would Thank would information tax. is a forward? for $X the dividend I question commentary going side And cash this as What paid million. that additional a call be First, related of noticed guess,

Michael Cinnamond

have have, in Otjikoto. we Well, Namibia, we in have right, owner we the interest do that priority interest a XX% holder, like,

So to there made them. are some payments

Josh Wolfson

for XX%, Okay. line, captured free be distribution to that -- and But the the Fekola, taxes it, assume that whatever interest call I to to interest will the line? not the is the non-controlling safe in equity you guess, want the carried it full

Michael Cinnamond

No, no, split. it's

always XX% as be reflected first a is in just cash and of second the payment. and it So It's a within the dividend operating tax activities. flows. ordinary operating recorded will Fekola, paid as charge XX% reflected will an be priority And the dividend, then

Josh Wolfson

guess And I Gramalote, Okay. then That’s fine. questions. X on

safe and what of Anglo the by the is to from that of week, the a So is mean sort that lines? open-ground under ministry for there, this does assume then to unlikely change follow-up commentary the outlook this earlier the it claim of point? time ownership with asset this some at And on review that's

Clive Johnson

in Gramalote answer They're of behind said think investor has project that. they project are in I'll their part for and things other in call It's Colombia. that do Gramalote. is keen a want Yes. to They again the that keep AGA yesterday important also very it's bit us they they Everything we timing. that first to a reiterated on and the them.

first ever how it and important a we're Columbia, us gold be the be as first venture the country in well like a very the to the significant operator, Ethiopia. to of country they new to in part So joint what open-pit see mine to do in this successful looks potentially involved great with going show in

be was in be at ownership surprised change. time, quite this So -- would I would any point think if I there I

to we of we're partner go have And agreement, if what to talked about their the have they also if They to want within before, down long we on based economics based we've interest we mine. plan, to think But well. it would so the don't as up to build then of market see if decides of with partner opportunity feasibility purchase in terms after XX% opportunity bring on would Colombia there'll like in our list submit the a the if the the to have be development study team we a and AGA fund, but the agreement course, our on hoping produce their it that desired. having As economics. another also, companies option are I to BXGold

is that So I'd what surprised the decision. from very committed in at Columbia. and to their point time things be to And want of be part change, this feasibility saying, project this they development but at can they're AGA

the who to question, wants Second part handle of that?

William Lytle

you're talking Zante I If about it. the you assume want, -- talking to I can do the you're claim?

Josh Wolfson

Yes.

William Lytle

Okay. Yes.

you of rejected an and said area. computer. small even Zante that claim really The like there could area, open outright. kind in case, And know background But didn't said electronic they of the done open over the did them to in not that would that has copy. was the is that that, in of switched you it. of they jumped when area, it there's when put up it they portion if then and Colombia was government cadastral copy, a they an if an So there I don't basically, all never originally, small and that. it way that's layout, some line during not works in the their anyway. the to paper And They Right? claims develop know

it's Government Columbia So suit filed asked they The has think they just once against real saying all, government to that join that. say, We've merit, that without out. I with don't case agree to that it's the of at an this a right? internal think Zante as itself again, themselves thing. don't view and Gramalote that interested there's our we as to and is merit party, play obviously no got the case

Josh Wolfson

just to solved with construction that this of absence have the sort that advancement? resolved, you can there be a being -- continue way does first? this Or In of is this

William Lytle

perspective than to correct go. trying to non-legal go a from this the then even They're it forward can answer me. us I'll we're government wants they harder expeditiously, and understanding, my project pushing But Well, right?

stop Randall. tries So Legally, to developing guess question a this I us the way don't from that's see means, any project. government I and/or Roger where for that what

Josh Wolfson

Great. Thank you much. very

Michael Cinnamond

was Hey just first question, your of to call. I follow timing to Josh, trying just the on up remember so the

year. the end So of actually the before dividend the to we the very -- government. We made it make just payment, did very a ever Malian ordinary first dividend,

about to, that So those ordinary is you're part very share million under that $X that of of half referring first there's government dividends. the

my in it before it It but had I mind. actually we early reason, did January, some For was just year-end.

Josh Wolfson

It’s clarifying. for great. Thanks Okay.

Operator

Financial. DeMarco line National next from Your Bank of from Don question comes the

Your line open. is

Don DeMarco

Hi, taking thanks for Clive and Bill, call. my

First question Bill. is for

Bill, but Can per higher year, maybe throughput looks if I are it us testing X tonnes heard so update based on you go at? earlier, testing what an you I in million was it could you far? finding So do mentioned done your higher? like are December. rates on at say you you you've going. where you can were Or you before give that's Fekola wondering how

William Lytle

Yes.

that everybody So But going to but So currently need saying running we're think go we right? said, is right. for to kick my it, butt at that with caution higher, above per tonnes annum. being we million now can yes, we're John -- we even X

So to but we So we're is it per don't per We're year year. already We've million say but that was it potential everybody have and go we maintenance our like year. X critical higher, takes per I to tonnes just telling layer for look me and have do have don't running your experience, that tonnes you million think to designed your upper tonnes how right around now, happy the right? yet. put hold has X.XX X things out million above into to downtime and without off, any that putting head number but things really spares the at, all and on that there, we these

an a give I'm So bound. bit upper low to

Don DeMarco

Fair Okay. enough.

So for tonnes X.XX million XXXX guidance the run year for rate. calls per

per XX,XXX you'd would like be ounces, looks math you of which XXX,XXX tonnes. about to grade the It so grams grading guidance add Cardinal ran well tonne, And above get X.X%. some on X.X here. just To mention when I be additional

thinking of You're grams sort topping X So right? is Cardinal? be to from XX,XXX, get tonne that you'd that per

William Lytle

me. would say, Yes. but can correct I Randy yes, maybe

Don DeMarco

Okay.

in sounds to from else bring X on to get is mentioned calls. had Anaconda? year, is mentioned you maybe to other hitting going though think -- any -- if it you're And going opportunity there probably I tonnes to something per so but XXX,XXX previous that or be was tonnes million as capacity,

William Lytle

Yes.

we're a area, we're issues. there's So there in a the with again, study at take it. only intent, as study sample Once because issue. from drill own like. Anaconda, license see what time internal there now absolutely set is that of -- Randy the What potential. from that's resource managing remember, right a see has doing so that an like doing need to to -- doing we're don't but looks that Anaconda once its this We significant again, separate is not is pretty a to short-term there we bulk Reichert believe Anaconda, they But

XXXX, which from XXXX Anaconda. of other add to in really well, noticed bit so people XXXX potential as And have dip in a have that and we we a the ounces some have

so And sample the lot to a plan sample is take of is that a is because bulk remember -- layer. to permit

to then Then only XXXX. into want take a net. the from going sample year will in us tonnes in the we that bulk the what's And top So is can tell higher get we you that? test. a on layer Anaconda, percentage? or second happen as think you on really again of is that issue X half big that add the to it is not that happen will then of million What's sample it so And

regard. So And the see I answer ounces that which talked in additional potential about previously. we is ounces XXXX, from additional yes, Anaconda, once again in can

Don DeMarco

Okay.

one do. final will that question on Thanks, Okay. Gramalote. And just maybe

will, your And potentially in your Uzbekistan. he's he's going how in Gramalote? Is example, So the in look in you of coming June? that. decision, you April. But terms Or to wait you've asset Kiaka go-forward say, there seeing say, delay pipeline that go-forward are forward after are encouraged got We until, mentioned asset to by for Tom going the time? out anything what in this could that's to a on decision else take

Clive Johnson

and to looking ahead the the and fast I would Gramalote we're wants mine think go is as They plan, ahead is much then good sure. Kiaka all. federal this everyone the the first we No, made for queue we'll -- priority. to government, to in news it our results clear say, local possible. that very top sure in people, I the that's I very local be Ethiopia government If get study And drill yes, it's for mean, community really the and important and not the as that of local the go realize at to us.

in on But and getting So it. the for to of pipeline you right social here. something important because license your feasibility forward ready with reason going -- don't a to also, we're expectation it's study one, the same our because it's looking go away to

and the of criteria, Okay, be construction? people going lot by good we've a expectation out but we you've willing construction a you many really, got are to where there there's population, government So get to venture, start on a government, the joint work on years bit our good team driven of willing got that has when jump from the wouldn't the So a been only ground. and saying, done, Gramalote, lot

-- $XXX So over addition be. of X.X some be to years and of be around which of next BXGold, that estimated that our to a XXX,XXX is and it importantly would expect be ounces a over be to share of million, as all and that, year it's more of importantly it as we is significant all funded This fleet. or capital, what than a could the

over could less the pay years. So than be X you it that, for might fleet

from X.X-year clearly, over our share from we fund cash current capital period our do about from projections, So of operations.

keen, of and in gold and all to today world sure. Faso for need Kiaka, no, to again, Kiaka, country. like investor for proving an once a it's ahead governments, mining during excellent itself investment, COVID in got that's all governments the is for almost Burkina the and So see you've very this becoming governor be

Burkina we're as in Faso well, closely think with case of the I the government. So working

what We view meeting a that to study to next like, middle talk of the week, feasibility to there with and really them, in be facts have are for going guys our the try of year. down about advance the

and talked to about focused. a before build of it. at never remarkable always we team split key guys same X our our said this That's those bit going at mines and looking But Bill we've construction we're to are our Now being time. success team and part the

but on also get be think on it and both we we bring cetera, about studies could are to we into idea to let's So positive Bill may the talking of sequencing. of sell asset, course, say guys we looking taxation, the that's results the get internal at a et well, attractive as his Kiaka, based partner then them, we're could

team So could as hopefully, as comes we would subsequently as on. for you which have earthwork's the you from go the then and start construction Gramalote early September, real crew, example, in they into Kiaka, have to Gramalote, move ready crew would go potentially, that Gramalote to to

sequence in? We're that. at looking can So them you

I many spend some So out. to I freak Well, God, on this I and go, let's BXGold will rule capital all not want wouldn't look at that know -- don't that. the X going to people is out make over anything years. assumptions next my Oh too

own and I which be we've at we'll value next never a stupid that. and We're X track rather going little our this with study it continue positive these of doing up we the time. company, development with over we're XX hard else to pretty argue through to it want decision on than But we considering against it grow wake our had many my years our a the with joint at we But exploration, we make this of have silly a a and share to the venture we price then expect by track whole Gramalote, is etcetera. and as not company the assets grow at to wouldn't last it's think good go to on to have this growing shareholders But understandable acquisition of alternatives the or them, doing someone company very But partner. that record in with remarkable week but We aggressively to based reckless, about bunch view. Kiaka, in a of we if think be are record here, is in success want with ourselves. for forward point alternatives continue going could there's why

So to assets. very it's we'll have continue But these how disciplined do we about be great to it.

way and just plan Some our go, up not people have. we're they at my will that's much are we'll capital now. that looking game the Oh, we end right but assets of us, the ahead at of too And come for the Well, saying the over take the shareholders God, not risk. trust to expenditure look on think the day, please

Don DeMarco

very great. That’s helpful. Okay,

congratulations and on So that’s all for a me strong XXXX.

Clive Johnson

Don. lot, a Appreciate Thanks it.

Operator

Your of line MacRury question Carey from the Canaccord from next comes Genuity.

line is Your open.

Carey MacRury

another just question Hi, on good Maybe Cardinal. morning guys.

You on on potential sort of -- impact about XXXX. impact talked the

Just sort could Or at the looking beyond couple sustain Cardinal of increase longer? you XXXX, is XXX,XXX at the over goal of ounces Fekola that production next years?

William Lytle

think, think gets that still initial into Well, resource like, the ultimate away think the from what resource, is out, coming but which don't resource being an developed. really I ways a -- there's I ultimate I looks

Tom. turn And over so I to that probably would

Thomas Garagan

guys So yes, can hear me? you

William Lytle

Yes.

Thomas Garagan

as of drilling control of couple a The we when the try sort inferred. aside got be little for set resource it's bit a exploration. grade some now, to -- year the And is for in to drilling in We've plunge. ore a that those resource, the weeks to be more deeper for we're the that where on this of follow leave bulk drilling probably we've within when complete budget. exploration going which grade are of tight shoots got right are, drilling you style we've going would got resource And exploration some control down the in guys doing, here. It's to all

Cardinal. meters alone, basically, of bet, from to drilling exploration diamond it very and which it. complaining, I'm for my saying now So we starting of an we perspective, a plan there's mine year, see are but early not on RC for We still just and we've still found early it's -- Cardinal that was got to that it. about of are as I'm on close XX,XXX last this liters lot year X,XXX

program. active is is I ultimate size know determined your be the exploration but So our answers don't it to of question. part still yet that if

Carey MacRury

that's No, helpful.

So beyond it keep keep plant of in get there a sample bit -- is the term? the there's like sample, bulk Or can sort be mining just bulk into it is to going mine kind to then in near of you a front no as go and you Or you the the invent exploration? as plan a of of break? it

Thomas Garagan

planning We into mining of the No, plan indicators. continue I into then that be department. by follow going have didn't drill all it continue inferred is They're don't control that, we'll incorporated The say model already to that turn drilling doing and going on to it, we're the to to that. and great we'll deeper. to

Carey MacRury

hoping on, going send hope forward, right? We're the plan can Bill? continues you mine We it

William Lytle

we once or out, about -- just Tom I we're haven't even inferred Yes, mean, for sure. quite I pointed hate Clive latest an because seen resource update the talking as that again, saying on. frankly just that

of absolutely, I the mean, it's So from XXX meters edge the existing pit.

we soon So will it and location, available. becomes take that it is in an as ideal as

Carey MacRury

you. Thank right. All

Operator

of the from Soni Market. World question CIBC from next Anita line Your comes

open. is line Your

Anita Soni

been my one Most I taking the have but Hi, about the morning remaining asked only guys. for Cardinal. good Thanks questions. and have answered, is

the be is terms that the in in is on already, to costs, XX,XXX Or that would strip beneficial Or guidance Just -- of production? within secondly, your to the terms tied a more higher-grade clear, and incorporated material ounces, impact ratio? of ounces that XX,XXX the have just cost? to

William Lytle

Yes.

Any that of not first our X-year did I does sources. in last part out, our think at it's we Investor or inferred our the even year no, guidance guidance. upside put existing include is, Day not included So we guidance any

once about if But I'm was you're even anything cost, say so from far what at again, Cardinal. talking a Fekola or throughput small upside no already to rates producing. as And just don't like we I million we're per tonnes annum amount know And because with a a out think, we contract about XXX,XXX X.XX as what bit the the that? small low that. percentage -- ounces, put versus

Anita Soni

Okay, allright. you. Thank

Operator

closing for turn There Clive are back call to I'll further the questions. remarks. no

Clive Johnson

the to share in helping And and Well, questions, model. we're here modeling Okay. further have outset, mentioned transparent everyone. questions. as I be if detailed the thanks, Good at you

look reach developments, year. ask. back studies. to to in we out questions forward there's and to or up you And like if very exploration the hesitate about like to don't So And we reporting other would excited feasibility this other we're coming year you get results and as

of time, everyone. next the a Over news have flow period lot Thanks, we'll of for you.

Operator

today's That concludes conference call.

You may now disconnect.

B2Gold (BTG) 25 Feb 212020 Q4 Earnings call transcript