B2Gold reported a net loss of US$34.8 million on revenues of $492.6 million in the June quarter, compared with a net profit of $91.9 million a year ago and 48.5 million in the March quarter. Production fell due to a second non-cash impairment of the Fekola complex in Mali relating to company estimates of how the 2023 mining code in Mali will be applied.

The company produced 204.241oz of gold, 22.3% less than a year ago and 9.5% less than during the March quarter due to damage to an excavator and the delay in receiving replacement equipment at Fekola, which reduced the tonnes mined. Mining rates are expected to improve by the end of the September quarter.

B2Gold adjusted its annual guidance to 780,000-850,000oz due to a delay in mining higher-grade ore from phase seven of the Fekola pit, resulting in an expected decrease of 50,000oz. The 2024 production guidance was previously 820,000-900,000oz.

On the positive side, B2Gold reported that its all-in-sustaining cost (AISC) fell 5.8% from the March quarter to $1267/oz, although it increased 4.4% year-on-year. Its AISC margin increased to 45.8% from 34.9% in the March quarter and 38.4% a year ago. The company finished the quarter with $466.8 million in cash and $25.7 million in debt. It maintained its 4c per share dividend.

The company said it is in discussions with the government of Mali to understand the implementation of the 2023 mining code. It hopes this will result in the receipt of an exploitation permit for the regional areas where it wants to truck ore from.

"We have already built the roads, we're ready to go in terms of trucking. Reaching an agreement with the government will trigger that permitting process, and the government assures us they want to see this happen. They very much want to see Fekola expanded," B2Gold chief executive Clive Johnson said during the company's results conference call.

Goose

B2Gold said its Goose development project in Nunavut, Canada, remains on schedule. All planned construction for the first half of 2024 is complete, and all necessary items from the Marine Laydown Area (MLA) to complete the construction in the June quarter of 2025 are completed. This includes the construction of additional fuel storage tanks. The company said it will make a development cost update in September.

"We've got more than 75% of concrete done and certainly by [the September quarter] we will be well over 90% concrete. For most disciplines, we are either where we need to be or ahead of schedule, which allows us really to produce gold next year," B2Gold SVP & COO William Lytle said.

B2Gold said gold production in 2025 is expected to materially improve, driven by a significant increase from Fekola due to the scheduled mining and processing of higher-grade ore from the Fekola and Cardinal pits. Additionally, Goose is expected to commence gold production in the June quarter of 2025 and contribute 120,000-150,000oz.

"This was always going to be a transitional year. … We have 650,000oz of growth in the company without having to buy other assets," Johnson said, referring to Goose and the Gramalote project in Antioquia, Colombia, where a feasibility is due in 2025, which could be the company's next development project after Goose.

The value of shares in B2Gold has fallen 22% so far this year. They opened down 13% at C$2.36, valuing the company at C$3.6 billion.