Third Quarter 2026 Financial Results Conference Call - B2GOLD CORP

Financial Performance:

• Q3 2026 consolidated revenue reached $836 million driven by 195,000 ounces of gold sold at an average realized price of $4,287/oz.
• Net income was $409 million ($0.31/share), significantly boosted by a $253 million impairment reversal at Focla, $40 million in unrealized derivative gains, and $14 million in insurance recoveries.
• Adjusted net income was $183 million ($0.14/share); this figure included $47 million in realized losses from gold collar contracts.
• Operating cash flow before working capital changes was $387 million; after adjustments, it was $239 million.
• Free cash flow for the quarter was $48 million, reflecting the completion of major construction spending at Goose.
• Total capital return to shareholders was $59 million ($33 million in share buybacks, $26 million in dividends).
• Balance sheet liquidity is strong with $294 million in cash, $497 million in working capital, and $705 million available under the revolving credit facility.
• Q4 2026 ASIC guidance lowered to $2,230–$2,410/oz; Q3 ASIC was elevated due to one-time costs including mobile crusher purchase and fire remediation.

Guidance and Future Outlook:

• Full-year production guidance remains on track at >193,000 ounces; Q4 expected to be significantly stronger, driven by Goose ramp-up and completed crusher upgrades.
• All-in-sustaining cost (AISC) guidance lowered by >$100/oz at midpoint to $2,230–$2,410/oz for the year.
• Specific AISC adjustments: Masmari ($800–$900 cash costs), Ojukoto ($1,630–$1,780 AISC), Focla ($2,350–$2,500 AISC).
• 2027 Catalysts: Focla Regional expected to commence production early 2027 (adding ~150,000 oz/steady-state by 2028); Goose Phase 2 crusher upgrades mid-2027 targeting 4,000 tons/day.
• Gold collar contracts expire December 2026; company fully unencumbered by prepay/collar contracts starting January 2027.
• Cash taxes at Goose not expected to be payable until early 2030s under current assumptions; 2027 cash tax outlook estimated slightly below 2026 levels.

Business Segments and Product Lines:

• Goose: Q3 production ~40,000 oz; Phase 1 crusher upgrades completed post-quarter; throughput averaged 3,200 tons/day, with demonstrated capacity up to 4,000 tons/day. Discovery of "Tatuk" high-grade mineralization on western limb announced.
• Focla: Q3 production ~78,000 oz; transitioned to Phase VIII waste stripping. Received Manicoto exploitation permit; stripping commenced at Focla Regional to unlock ore for 2027 start.
• Underground Operations: Focla Underground ramped to ~4,000 tons/day with grades of 3.0–3.5 g/t; acting as a high-grade contributor while regional surface mining ramps.
• Exploration: Strong infill results at Lama and Neboyek; high-grade discovery at Tatuk marks first new find since acquisition.
• Granville Ottie (Colombia): Permit modifications and resettlement ongoing; construction decision expected in second half of 2027.

Market and Competitive Landscape:

• Operating in an environment of elevated global gold prices ($4,287/oz realized average), allowing for full realization of spot prices post-prepay completion.
• Global diesel prices increased 50–60% at time of Q3 purchase; however, lower fuel consumption rates at Goose offset cost impacts relative to prior year.
• Focla Regional aims to add 150,000 oz annually to portfolio steady-state by 2028, enhancing production profile relative to peers.

Risks and Challenges:

• Operational risks at Goose include potential weather/temperature disruptions in winter 2026/2027, mitigated by mobile crusher deployment and covered facilities.
• Focla Regional timeline relies on regulatory finalization of tolling agreements and permitting, currently viewed as an administrative exercise.
• Cost volatility remains a risk due to global oil price fluctuations affecting diesel budgets.
• Q3 ASIC impact included one-time fire remediation ($17M) and mobile crusher acquisition ($12M), which may distort normalized cost comparisons.

Management Commentary and Tone:

• CEO Mike Sinemond expressed high confidence, describing the quarter as "strong" and reinforcing the company's trajectory toward increased free cash flow.
• Tone emphasized disciplined capital allocation, balance sheet strength, and the successful execution of 2026 operational objectives.
• Management highlighted the strategic value of completing the "prepaid" and "collar" contracts, removing hedges and allowing full exposure to gold prices in 2027.
• CEO noted being "energized" by Q4 expectations and the 2027 catalysts at Focla and Goose.

Analyst Questions and Answers:

• Tolling Agreement: Confirmed as primarily an administrative exercise involving state approvals; expected finalized early 2027.
• Goose Capacity: Confirmed 3,200 tons/day baseline for Q4 2026; mobile crusher allows flexibility to exceed this; full capacity up to 4,000 tons/day demonstrated.
• Focla Grades: Q4 open pit grades expected to remain consistent with Q3 (~1.2–1.35 g/t); 2027 guidance on grades to be released with February budget.
• Normalized Costs: Goose AISC expected to normalize slightly above $2,000/oz at steady-state production; scale benefits will drive down unit costs.
• Diesel Costs: Q3 diesel purchases were 50–60% higher than prior year due to global price spikes, but total spend was similar to last year due to lower consumption.
• Focla Underground: Producing ~4,000 tons/day at ~3.0–3.5 g/t grades; fully ramped.
• Phase 2 Shutdown: 10-week shutdown in Q2 2027 will be managed via mobile crusher and stockpiled ore; throughput modeling should maintain 3,200 tons/day.

Other Key Points:

• Focla Regional is expected to contribute ~75,000 oz in 2027 (ramp-up year) before reaching 150,000 oz steady-state by 2028.
• Ongoing waste stripping at Focla Pit (Phase VIII) continues through most of 2027; multiple years of lower strip ratios anticipated thereafter.
• Management plans to publish an updated mine plan/technical report to reflect dynamic integration of Focla Regional and pit sequencing.
• Significant capital was invested in Focla Regional infrastructure in 2023; future capex will largely focus on equipment rebuilds and capitalized stripping.
• Discovery of "Tatuk" is the first new resource discovery at Goose since the project acquisition.