B2Gold Q2 2026 Earnings Call: Complete Transcript

B2Gold (TSX: BTO ) held its second-quarter earnings conference call on Friday. Below is the complete transcript from the call. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

View the webcast at Summary B2Gold Corporation reported consolidated gold production of approximately 204,000 ounces for Q2 2026, in line with expectations, despite challenges at the Goose mine due to a fire. The company received the Menankoto Exploitation Permit in Mali, allowing the commencement of mining activities at the Fekola Complex, a significant growth opportunity expected to produce over 150,000 ounces annually from 2028. 31 per share, benefiting from the sale of Finnish properties and unrealized gains on derivatives. 03 per share, impacted by $71 million in realized losses from gold collar contracts.

Operating cash flow was $94 million, with free cash flow negatively impacted by $258 million due to elevated tax payments and gold prepay contracts. The company repurchased 19 million shares for $92 million and completed the sale of its Finnish properties for $325 million, strengthening the balance sheet. B2Gold expects improved cash flow in the second half of 2026, with the completion of gold prepay contracts, and plans to focus on enhancing shareholder returns. The company revised its 2026 gold production guidance to between 820,000 and 920,000 ounces and maintained its cash operating cost guidance, with a reduced all-in sustaining cost range.

Management expressed confidence in future growth, highlighting strategic advances in Mali and ongoing operational improvements at Goose and other mines. Full Transcript OPERATOR Thank you for standing by. This is the conference operator. Welcome to B2Gold Corporation Second Quarter 2026 Financial Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then 1 on your telephone keypad; you will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then zero.

I would now like to turn the conference over to Mike Cinnamond, President and CEO of B2Gold. Please go ahead. Michael Cinnamond, President and CEO Thank you, Pringer. Good morning, everyone, and thank you for joining us for B2Gold's second quarter 2026 conference call.

First, before we begin our discussion of the quarter, I want to address the trading halt that was implemented earlier. Shortly before this call, we received confirmation that the government of Mali has granted the Menankoto Exploitation Permit. Given the significance of this development and our obligation to ensure that all investors receive material information at the same time, we requested a temporary trading halt pending the dissemination of the news release, which I believe will go out shortly.

This permit represents a very important milestone for the Fekola Complex, providing the framework to commence mining activities within the Menankoto permit area and supporting the continued development of the Fekola Regional deposit. We appreciate the efforts of the government of Mali and all stakeholders involved in advancing this permitting process forward. So that was the reason for the trading halt. While we're very pleased to receive this approval, today's call will remain focused primarily on our second quarter results and operating performance.

But we will, of course, provide additional comments on the Menankoto permit during the call and take questions following our formal remarks. With that, I'd now like to pass the call over to Calvin, our Chairman, for some opening remarks. Calvin, Chairman Thanks, Mike, and good morning. Well, you've now heard the great news on Mali, and before Mike and the team review that and the quarter in detail, I'd like to take a few minutes to provide a broader perspective on the principles that continue to guide our business.

Before doing so, I'd like to acknowledge three important leadership milestones. First, on behalf of the Board, I want to thank Clive Johnson for his extraordinary contribution to B2Gold, from founding the company to building it into the international gold producer it is today. Clive's leadership, vision and determination have been instrumental. And while he stepped down as Chief Executive Officer, we're very pleased that he'll continue to support the company as Chair Emeritus, and we look forward to benefiting from his experience and insight.

I also want to speak to Mike Cinnamond's appointment as Chief Executive Officer. The Board and I have tremendous confidence in Mike and the leadership team. This transition represents continuity more than a change in direction. Mike has been deeply involved in the execution of our strategy and the development of our business over many years.

We believe the company is in very capable hands, and we're excited about the leadership he'll provide in the next chapter of B2Gold's evolution. And this is also why we are pleased that Michael McDonald has accepted the role of Chief Financial Officer. Michael has consistently stood out for his performance and acumen and had already begun the transition in the finance team with a view to succeeding Mike. From the Board's perspective, we couldn't be more comfortable with Michael in the role and his ability to continue to collaborate closely with Mike, who understands the B2Gold CFO function better than anyone from his many years in the role.

Our approach remains straightforward. We focus on delivering on the commitments we make. Our strategy has never been about chasing short-term opportunities or reacting to market cycles. For my part, I look very forward to working even more closely with Mike and the management team, with a focus on disciplined execution and delivering value.

In that respect, it's important to acknowledge that our recent share price performance has not met the standards we set for ourselves or the expectations of our shareholders. While we believe very strongly in the quality of our assets and the fact this is a great team, we understand that shareholders are focused on results, and they have every right to. The Board and management are fully focused on the work required to deliver the performance expected of us. Our operational culture remains the foundation of how we get there.

Over the years, we established credibility with our shareholders, host countries, employees and local communities by setting clear objectives and working diligently to achieve them. We are operators first, with a disciplined focus on safety, execution, continuous improvement and creating value at the assets we own and operate. We also believe in reinvesting in our business to create long-term value, whether it's sustaining our existing operations, investing in exploration or advancing high-quality development projects.

At the same time, we recognize that strong cash generation must translate into meaningful returns, maintaining a balanced approach between investing in future growth and returning capital to shareholders. We recognize that our success is closely tied to the countries and communities where we operate. Being a preferred partner means more than operating safely and responsibly. It means working alongside our host governments and communities to create lasting benefits.

I think today's announcement from Mali underscores this point. Looking across our portfolio, we continue to see the benefits of this consistent approach. Our focus is on executing reliably, delivering on our commitments and generating the confidence that has always been earned through hard work and performance. And with that, I'll turn the call over to Mike and the management team to discuss the second quarter results.

Michael Cinnamond, President and CEO Thank you. Thank you, Calvin. The second quarter was an important one for B2Gold. We delivered consolidated gold production of approximately 204,000 ounces, in line with expectations, in particular with strong operating performances from Fekola, Masbate and Otjikoto mines.

And while Goose production was impacted by the crusher fire in April, as previously announced, the team there responded exceptionally well and repairs continue to progress according to plan. Our other key area of execution focus for 2026 is bringing Fekola Regional online. We had recent meetings in Bamako with Mali state officials, and they had confirmed that there were no remaining obstacles to the approval of the Menankoto Exploitation Permit, as all the required steps in the approval process have been completed and validated by the different ministries. And now, as you've heard, the permit has been granted by the Council of Ministers in Mali.

The issuance of this permit by the state of Mali allows us to move forward on one of B2Gold's most important near-term growth opportunities. Mining pre-stripping activities can now commence. Fekola Regional is expected to ramp up operations through the end of 2027 and to produce somewhere in excess of 150,000 ounces a year from 2028 onwards through the mid-2030s. Beyond Mali, we continue to strengthen our portfolio and balance sheet.

During the quarter we completed the sale of our 70% interest in our Finnish properties to Agnico Eagle for $325 million. We repurchased 19 million shares under our renewed NCIB for $92 million and completed the final deliveries into our gold prepay contracts, which Mike will talk about a little more in a minute. While the second quarter reflected some temporary pressures in free cash flow from taxes, prepay deliveries and elevated production costs, those headwinds are expected to moderate. And with the gold prepay deliveries now behind us and all remaining gold sales exposed to spot prices, we expect a meaningful improvement in free cash flow generation as we go forward.

With that, I'll turn the call over to Michael McDonald for a discussion on our financial results for the second quarter. Michael McDonald, Chief Financial Officer Thank you, Mike. Second quarter financial results on a consolidated basis finished in line with our expectations for the quarter. Outperformance at Fekola, Masbate and Otjikoto offset a tougher quarter for the Goose mine as it ramped up milled operations following the previously reported fire in certain areas of the crushing circuit in April 2026.

31 per share, benefiting from the gain on the sale of our Finnish properties combined with unrealized gains on derivatives. 03 per share. It's important to note that our adjusted net income figures included approximately $71 million of realized losses related to our gold collar contracts during the quarter. 08 per share.

The gold collar contracts conclude in December of this year, and B2Gold will go into 2027 completely unencumbered from gold prepayments and gold collar contracts. Operating cash flow before working capital adjustments was $94 million during the second quarter. Assuming current gold prices remain, operating cash flow is anticipated to rise significantly into the second half of 2026 when compared to the second quarter, primarily due to the completion of the gold prepay contracts that finished in June 2026. Free cash flow was negative $258 million during the quarter, in line with expectations when we released our guidance at the start of 2026.

Free cash flow was impacted primarily due to elevated cash tax payments, including the priority dividend payment to the state of Mali related to their 20% ownership of Fekola, plus the impact of the gold prepay contracts, which affected just over 30% of ounces sold during the quarter. On cash tax payments, the amount we paid in the second quarter of 2026 was just under 45% of what we anticipate paying for cash taxes in all of 2026. So you will see the cash tax number moderate in the third and fourth quarters when compared to the second quarter.

The negative free cash flow number also does not include the $325 million of cash proceeds received from the sale of our Finnish properties during the quarter. Despite that, our balance sheet remains very strong at quarter end. We held $287 million in cash and cash equivalents and have working capital of $405 million. We are in a very strong financial position that will only get stronger over the coming quarters at these gold prices.

Finally, we also continue to return capital to shareholders through our normal course issuer bid and common share dividends. Year to date in 2026 we have now repurchased approximately 35 million shares for a total of $172 million. On top of that, in the first half of the year we paid out $52 million in dividends. Combined, that brings total shareholder returns in the first two quarters of 2026 to $224 million, which is over 4% of our current market cap.

Those numbers are in spite of the impact of the gold prepayment contracts and the gold collar contracts. As we finish up 2026 and enter 2027 completely unencumbered by those two financial instruments, we anticipate free cash flow to rise dramatically at current gold prices and should allow for increased shareholder returns as well. With that, I'll turn the call over to Bill for an operational update. Bill Lytle, Chief Operating Officer Thank you, Michael.

From an operating perspective, the quarter was largely in line with expectations. Consolidated production totaled approximately 204,000 ounces. Fekola, Masbate and Otjikoto all exceeded expectations and demonstrated the consistency and reliability that investors have come to expect from those assets. At Fekola, operations continue to perform well and our focus remained on the efficient operations of the Fekola and Cardinal pits while preparing for the commencement of mining at the Fekola Regional.

With the issuance of the Menankoto exploitation permit, we now have a clear path forward for the development of the Fekola Regional. And just to think about that, remember we had previously received approval and constructed and prepared all the site infrastructure and all the roads, started the pre—stripping and hired all the necessary staff to begin mining at Goose. The crusher fire in April affected production during the quarter. Safety remained our highest priority, and I'm pleased that the team took prompt action in response to the event.

Repair work and remediation activities are progressing as planned, with remediation and phase one of the crusher upgrades expected to be completed by the end of the third quarter. In the interim, an additional mobile crusher has been sourced and was delivered to the site in July. We expect it to be operational in early August. The crushing capacity of the new mobile crusher, in combination with existing crushers already on site, is anticipated to be in excess of 3,000 tons per day.

Masbate and Otjikoto both delivered another strong quarter of operations, exceeding expectations. With solid operating performance at both sites expected to continue throughout the remainder of the year, the company has increased the production guidance of these operations. As a result of year—to—date operating performance and our updated outlook for the remainder of the year, we have narrowed our guidance range across the portfolio. We now expect consolidated gold production of between 820,000 and 920,000 ounces in 2026.

The largest change relates to Fekola Regional based on the delays in issuance of the Menankoto exploitation permit as well as narrowing of the production range at the Goose Mine as a result of the fire which occurred in certain areas of the crushing circuit in April this year. These changes are partially offset by the previously mentioned guidance increase at both Masbate and Otjikoto. Importantly, our consolidated cash operating cost guidance remains unchanged between $1,155 and $1,280 per ounce produced.

We have also lowered our all—in sustaining cost guidance range to between $2,370 and $2,550 per ounce sold and currently expect full—year results to be at or below the low end of that range. Overall, we remain confident in our operating outlook and are focused on delivering a strong second half of the year. With that, I'll now turn the call back over to Mike Sandman. Clive Johnson, President and CEO Thanks, Bill.

Thanks, everyone, for the overview of the quarter. We're obviously pleased with the results and pleased with how we look as we look forward to the balance of this year, and obviously receipt of the Menankoto permit this morning is a great step forward for us. We said there were two key things we were going to execute on this year. One was to move Fekola Regional forward, so now we're well positioned to do that, start moving ahead there.

And then the second piece that we said was key was for us to get our remediation, fire—damage repair work done and remediation work done on the crushing plant so that we can bring ourselves up to steady state around about 300,000 ounces a year by mid—’27. So I think you've seen in the materials we've released that we've got a good plan for that now and that plan is well underway. So with that and those comments, I would open it up for questions. OPERATOR We will now begin the analyst question and answer session.

To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys.