Third Quarter 2026 Financial Results Conference Call - B2GOLD CORP

Explicit Guidance:

• Consolidated All-In Sustaining Costs (AISC) lowered by >$100/oz midpoint for full year 2026 to $2,230–$2,410/oz.
• Cash Costs lowered to $800–$900/oz (down $100/oz from prior guidance).
• Goose AISC lowered to $1,250–$1,400/oz (prior: $1,430–$1,580/oz).
• Ochicoto AISC lowered to $1,630–$1,780/oz (reduced by $200/oz).
• Focola (FACOLA) AISC lowered to $2,350–$2,500/oz (prior: $2,670–$2,820/oz).
• Full-year 2026 production and cost guidance expected to be met within previously issued ranges.
• 2027 Full-Year Guidance to be released in early February 2027.

Business-Segment Outlook:

• Focola Regional: Permit (Manicoto) received; stripping commenced Q3 2026. Ore contribution expected to begin early 2027. Ramp-up year in 2027 expected to add ~150,000 oz (approx. 50% of steady-state). Steady-state production post-2027 estimated at ~150,000 oz/year.
• Goose: Phase 1 crusher upgrade completed post-quarter end; throughput averaging 3,200 t/d (up from previous limits), with mobile crusher flexibility allowing up to 4,000 t/d. Q4 2026 expected to be significantly stronger. Phase 2 upgrades scheduled for Q2 2027 (10-week shutdown), targeting consistent 4,000 t/d throughput mid-year 2027. Target annual production rate of 300,000 oz/year from Goose long-term.
• Masbati & Ochicoto: Strong performance expected to continue through 2026, driving cost leverage.
• Antelope (Ochicota): Development progressing well; potential mine life extensions under review.
• Goose Underground: Fully ramped; operating at ~4,000 t/d with grades of ~3.0–3.5 g/t.
• Focola Underground: Contributing to mill feed in 2027 prior to regional commissioning.
• Granville-Ottie (Colombia): Permit modifications and resettlement expected to continue through mid-to-late 2027. Construction decision or next steps to be evaluated in H2 2027.

Market and Competitive Outlook:

• Pricing: Company fully exposed to spot gold prices starting Q4 2026 (following June 2026 gold prepay completion); final gold collar contracts expire December 2026, making 2027 fully unencumbered.
• Cost Sensitivity: Lower AISC at Focola reflects lower-than-assumed gold prices (reducing royalty payments) during 2026; cost leverage expected to improve with increased production volumes at Goose.
• Fuel Costs: Diesel purchased in Q3 2026 at elevated prices (50–60% higher than Q3 2025 levels) due to global moves, though operational consumption is lower than initially anticipated.

Macro / Industry Outlook:

• Gold Collars & Prepaids: No remaining hedging exposure after January 2027 (last collar roll-off); balance sheet and cash flow expected to benefit from full realization of spot prices.
• Cash Taxes: Goose not expected to become cash tax payable until early 2030s due to existing losses; 2027 cash taxes (including withholding) estimated to be slightly lower than current year (~$600M range implied) due to production ramp-up.

Strategic Initiatives:

• Exploration: Discovery of "Tatuk" (high-grade mineralization on western limb of Banded Iron Formation at Goose); continued pursuit through end of year. Infill results at Lama and Neboyek strengthening underground resource confidence.
• M&A/Expansion: "Expiration opportunities" (likely "expansion") across portfolio mentioned as a focus for capital allocation.
• Capital Allocation: Disciplined approach balancing shareholder returns (dividends/buybacks), operational investment, and growth. $59M returned in Q3 (including $33M buybacks).
• Administrative: Finalizing tolling agreement for Focola Regional in Q1 2027.
• Reporting: Plan to publish updated Focola complex technical report to reflect new timing and dynamic integration.

Risks and Headwinds to Outlook:

• Focola Operational Transition: Q4 2026 and most of 2027 involve Phase VIII waste stripping with lower ore grades (approx. 1.2–1.35 g/t open pit), resulting in lower production volumes until regional ramp-up.
• Goose Seasonality: Mobile crusher capacity during winter (Q4 2026/Q1 2027) may be reduced due to weather, though tented and winterized.
• Delays: Potential delays in tolling agreement finalization or permit modifications at Granville-Ottie could impact timing.
• Cost Variability: AISC in Q4 2026 expected to drop significantly from current elevated levels driven by one-off costs (fire remediation, mobile crusher purchase) and Q3 production mix (10,000 oz unsold); normalized steady-state AISC at Goose targeted slightly above $2,000/oz.

Management Tone on the Future:

• Confidence: High; management expresses "pleasure" and "excitement" regarding progress. Confident in "stronger fourth quarter" and "solid finish to the year."
• Outlook: View 2027 as a year of "important catalysts" (Focola Regional, Goose Phase 2) strengthening production and cash flow.
• Flexibility: Emphasis on "improving trajectory," "financial flexibility," and "balance sheet strength" with $294M cash and $705M revolver availability.

Miscellaneous:

• Free Cash Flow: Generated $48M in Q3; trajectory expected to increase as major construction/ramp-up spending at Goose concludes.
• Impairment Reversal: $253M non-cash reversal at Focola in Q3 due to permit receipt (excluded from adjusted results).
• Inventory Strategy: Building crushed ore stockpiles over winter using mobile crusher to support feed during Phase 2 shutdown in Q2 2027.