Mike Feibus is president and principal analyst of FeibusTech, a Scottsdale, Arizona, market research and consulting firm. He covers the business of sustainability from myriad angles, including transportation, packaging  and the carbon-credit market as well as Scope 2 accounting. Reach him at mikef@feibustech.com. Follow him on X at @MikeFeibus

DATE

Friday, Aug. 7, 2026 at 11:00 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer – Mike Cinnamond
• Chairman – Kelvin Paul Dushnisky
• Chief Financial Officer – Michael McDonald

TAKEAWAYS

• Consolidated Gold Production — 204,000 ounces in the second quarter, reflecting strong operating performances from the Fekola, Masbate, and Otjikoto mines.
• Net Income — $417 million, or $0.31 per share, primarily driven by a $325 million gain from the sale of Finland properties and unrealized derivative gains.
• Adjusted Net Income — $41 million, or $0.03 per share, after excluding nonrecurring adjustments and gains on derivatives.
• Gold Collar Contract Impact — $71 million in realized losses during the quarter, which reduced adjusted net income from a potential $0.08 per share.
• Free Cash Flow — Negative $258 million, reflecting $71 million in collar losses, priority dividend payments to Mali, and gold prepay deliveries.
• Operating Cash Flow — $94 million before working capital adjustments, impacted by elevated cash tax payments and prepaid deliveries.
• Cash and Working Capital — $287 million in cash and cash equivalents and $405 million in working capital at the end of the quarter.
• Shareholder Returns — $224 million in total returns during the first half of 2026, including $172 million in share repurchases and $52 million in dividends.
• Share Repurchases — 19 million shares repurchased for $92 million in the second quarter under the company’s renewed NCIB.
• Full-Year Production Guidance — 820,000 to 920,000 ounces of gold, a narrowed range following delays in Mali permitting and the Goose crusher fire.
• Fekola Complex Production Guidance — 390,000 to 420,000 ounces for 2026, including potential minor production from Fekola Regional at year-end.
• Cash Operating Cost Guidance — $1,155 to $1,280 per ounce produced, remaining unchanged from previous estimates.
• All-In Sustaining Cost Guidance — $2,370 to $2,550 per ounce sold, with management expecting results at or below the low end of this range.
• Fekola Regional Production Target — Over 150,000 ounces per year starting in 2028 and extending through the mid-2030s.
• Menankoto Exploitation Permit — Granted by the government of Mali on Aug. 7, 2026, allowing for the immediate commencement of mining pre-stripping.
• Goose Mine Operating Status — 3,000 tonnes per day projected throughput in the third quarter following the installation of a new mobile crusher.
• Goose Steady-State Target — 4,000 tonnes per day by the end of the second quarter of 2027 once Phase 2 repairs reach completion.
• Gold Prepay Completion — Finished in June 2026, covering more than 30% of ounces sold during the second quarter.
• Finland Property Sale — $325 million in cash proceeds received for the 70% interest in Fingold sold to Agnico Eagle.
• Mali Investment — Over $2 billion invested in the country since 2014, with a current workforce of more than 3,300 people.
• Cash Tax Distribution — Nearly 45% of total anticipated 2026 cash taxes were paid in the second quarter.
• Goose Underground Development — Currently progressing at over 11 meters per day, nearing the targeted rate of 12 meters.
• Goose Fire Remediation Costs — $16 million in other cost of sales related to facility downtime during the second quarter.
• Masbate and Otjikoto Performance — Production guidance increased for both mines following second quarter results that exceeded internal expectations.
• Fekola Regional Ownership — 65% interest held by B2Gold Corp. (BTG -2.69%) and 35% by the state of Mali under the 2023 Mining Code.

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RISKS

• Cinnamond noted, “Goose production was impacted by the crusher fire in April,” leading to facility downtime and the requirement for significant remediation and equipment upgrades.
• McDonald warned that free cash flow was negative “primarily due to elevated cash tax payments, including the priority dividend payment to the state of Mali related to their 20% ownership of Fekola.”
• Dushnisky acknowledged that “recent share price performance has not met the standards we set for ourselves or the expectations of our shareholders,” following operational delays and financial pressures.

SUMMARY

B2Gold management reported the receipt of the Menankoto exploitation permit in Mali as a primary strategic milestone for the Fekola Complex. The company is transitioning through a period of elevated capital expenditure and financial encumbrances, with the completion of gold prepay contracts in June 2026 and the expected expiration of gold collar contracts by year-end. Operations at the Goose mine are undergoing remediation following a fire, with management targeting steady-state production by mid-2027. Financial results were influenced by the sale of Finnish assets and significant capital returns through buybacks and dividends.

• CEO Cinnamond identified the Menankoto permit as “among B2Gold’s most important near-term growth opportunities,” enabling the company to begin pre-stripping and ramp up to full production by 2028.
• Management confirmed the Menankoto permit was issued under Mali’s 2023 Mining Code, while the existing Fekola Mine remains subject to the 2012 Mining Code.
• CFO McDonald stated the company expects free cash flow to “rise dramatically at current gold prices” as it enters 2027 unencumbered by gold prepayment and collar contracts.
• CFO McDonald clarified that while the corporate income tax rate for Fekola Regional is 30%, the effective rate will be higher once the 35% state interest and priority dividends are included.
• COO Lytle reported that Goose mine remediation and Phase 1 crusher upgrades are expected to reach completion by the end of the third quarter.
• Chairman Dushnisky emphasized that the board and management are “fully focused on the work required to deliver the performance expected of us” following a period of share price underperformance.
• CEO Cinnamond noted in the Q&A that the state of Mali has established new governance structures, including the state mining company SOPAMIM, to oversee stakeholder interests under the new mining code.

INDUSTRY GLOSSARY

• AISC: All-in sustaining costs, a non-GAAP financial measure used in gold mining to represent the total cost of producing gold, including sustaining capital and exploration.
• Fekola Regional: A project area including the Menankoto and Dandoko permits located approximately 20 kilometers from the Fekola Mine in Mali.
• Gold Collar Contracts: Financial derivatives that establish a floor and a cap on the price a company receives for its gold production.
• Gold Prepay Contracts: Agreements where a mining company receives advance payment for gold to be delivered at a future date.
• Menankoto Exploitation Permit: A regulatory authorization granted by the Malian government allowing for commercial mineral extraction in the Menankoto area.
• NCIB: Normal Course Issuer Bid, a program through which a company repurchases its own shares from the public market.
• SOPAMIM: A Malian state mining company created to oversee the interest of stakeholders in the mining sector.

Full Conference Call Transcript

Operator: Thank you for standing by. This is the conference operator. Welcome to B2Gold Corporation’s Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Mike Cinnamond, President and CEO of B2Gold. Please go ahead.

Michael Cinnamond: Thank you, operator. Good morning, everyone, and thank you for joining us for B2Gold’s Second Quarter 2026 Conference Call. I think first business, before we begin our discussion of the quarter, I want to address the trading halt that was implemented earlier this morning. Shortly before this call, we received confirmation that the government of Mali has granted the Menankoto exploitation permit. And 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. And 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. And 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.

And with that, I’d now like to pass the call over to Kelvin, our Chairman, for some opening remarks.

Kelvin Paul Dushnisky: Thanks, Mike, and good morning. While you’ve now heard the great news at Mali and before Mike and the team review that in 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 3 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 of 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 has 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 for 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 people, this is a great team. We understand that shareholders have focused on results than they have been great, too. 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 have done.

Over the years, we’ve 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 to 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 for 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. Thank you.

Michael Cinnamond: Thank you, Kelvin. Second quarter, it was an important one for B2Gold. We delivered consolidated gold production of approximately 204,000 ounces, in line with expectations and 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 now according to plan. Our other key area of execution focus for 2026 is bringing Fekola Regional online.

And we have recent meetings in Bamako with Mali state officials, and they have confirmed that there were no remaining obstacles to the approval of the Menankoto exploitation permit as all the required steps in the approval process has 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. So the issuance of this permit, Menankoto exploitation permit by the state of Mali allows us to move forward on among 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. Then beyond Mali, we continue to strengthen our portfolio and balance sheet during the quarter. We completed the sale of our 70% interest in Fingold 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 prepaid contracts, which Mike will talk about a little more in a minute.

So while the second quarter reflected some temporary pressures on free cash flow from taxes, prepaid deliveries and elevated production costs, those headwinds are definitely expected to moderate. And with the gold prepaid deliveries now behind us and all remaining gold sales now exposed to spot prices, we expect a meaningful improvement in free cash flow generation as we go forward. So with that, I’ll turn the call over to Michael McDonald for a discussion on our financial results for the second quarter.

Michael McDonald: 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 milling operations following the previously reported fire in certain areas of the crushing circuit in April 2026. Net income attributable to shareholders was $417 million in the second quarter or $0.31 per share, benefiting from the gain on the sale of our Finland properties, combined with unrealized gains on derivatives. After backing those gains and other nonrecurring adjustments out, our adjusted net income attributable to shareholders was $41 million or $0.03 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. Without that impact, adjusted net income per share would have been just over $0.08 per share. The gold collar contracts concluded in December of this year and B2Gold will go into 2027 completely unencumbered from gold prepayment 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 had 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 2 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 out 2026 and enter 2027 completely unencumbered by those 2 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.

William Lytle: 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 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 have hired all the necessary staff to begin mining. At Goose, the crusher fire in April affected production during the quarter. Safety remains our highest priority, and I’m pleased with the team’s response to the event. Repair work and remediation activities are progressing as planned with remediation and Phase 1 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 tonnes 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 Cinnamond.

Michael Cinnamond: 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 for 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 2 key things we’re going to execute on this year. One was to move Fekola Regional forward. So now we’re well positioned to do that and 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 at Goose on the crushing plant so that we can bring ourselves up to steady state of around about 300,000 ounces a year by mid-’27. So I think you’ve seen in the materials we released that we’ve got a good plan for that now, and that plan is well underway. So with that, those comments, I would open it up for questions.

Operator: [Operator Instructions] The first question comes from Wayne Lam with TD Securities.

Wayne Lam: Congratulations on a momentous milestone. Maybe at Fekola, would you be able to just provide a bit more detail on kind of what changed with the most recent discussions in country? And has anything kind of changed on the relationship in country that prompted the issuance of the permit now?

Michael Cinnamond: I can comment on that. I mean we’ve had several visits in the last few months to see the ministries. And I think the message was very consistent. Over the piece, they put the new mining code in place and the agreements with each of the operating mining companies were negotiated. And then they put some new layers of governance over how they oversee the whole mining activity in the country. And that included most recently creating the new mining commission that we talked about earlier this year. So those [indiscernible] government, they’ve also created a state mining company, SOPAMIM, that oversees the interest of stakeholders.

So I think the consistent message to us over the last couple of visits that certainly this year was that the state been working hard just to harmonize how each of these ministries interact, who’s responsible for which pieces of the ’23 mining code as it relates to the operating companies and then obviously, the mining commission that oversees it on an overall basis. So I think the message we got most recently when we traveled there was they’ve now harmonized a lot. They’re comfortable with that we got the right structures set up and they’re ready to move forward. And so we were, in some ways, the first major new permit to be granted under the 2023 mining code.

And so it took some patience on both sides, ourselves and the state to get there. But as you can see, we’re now there. So that’s how I’d characterize it.

Wayne Lam: Okay. That’s great. And then maybe just what’s the timeline from here in terms of stripping and mobilizing and getting to ore at regional. The guidance at the start of the year was about 80,000 ounce contribution getting the permits at the end of Q1 and stripping through Q2. So should we just take that guidance and shift that forward? Just wondering how to think about the coming months and the ramp up to 150,000 ounce run rate.

Michael Cinnamond: Yes. I think we’ll give some guidance for ’27 when we do the budget, how we see it ramping up. But I think the way to look at this year is we’ll get in there now in fairly short order, and we can start pre-stripping. And that will take us a few months. So really, it will take us basically the end of this year, I think, to get up and running.

I mean there’s potential for some production near the end of the year, but I think to look at the balance sheet, I think we’ll assume that we strip this year and then we’ll ramp up next year through ’27 with the goal of being ready by the end of ’27 to be producing at a rate of 150,000 ounces a year from regional.

Wayne Lam: Okay. Great. And then maybe just last one at Back River. Can you just walk us through some of the challenges with the mobile crushers and what the ramp-up in tonnage looks like through the year, particularly through Q3. Should we still expect relatively low tonnage until you’re able to bring the newest mobile crusher online this month? And then I guess on the mining front, are we expecting a step change in grades as well through the balance of the year?

Michael Cinnamond: I’ll pass this one over to Bill.

William Lytle: Okay. A few questions there. So on the crusher ramp-up, what we’re really talking about through Q3 and Q4 is in excess of 3,000 tonnes per day. And then on the grade, I don’t think you’re going to continue to see the increased ramp — increase in grade. I think you’ll see it drop back to kind of what we had forecasted before, primarily because we’re in the process right now of creating stockpiles basically going into 2027.

Wayne Lam: Okay. Congratulations on a pretty big milestone.

Operator: The next question comes from Fahad Tariq with Jefferies.

Fahad Tariq: Just on the Fekola revised guidance for 2026, did that factor in getting the permit, I guess, today? I mean — or is there upside to the guidance, I guess that’s what I’m asking.

Michael Cinnamond: You want to take that one, Michael?

Michael McDonald: Yes. No, I think the best way to think about it is that we’re comfortable whether there is some minor production at the end of the year or if that officially starts in 2027, we’re comfortable with that range that we put out of 390,000 to 420,000. So I would say just think about it as the complex will fall within that range. And whether or not we get a small amount near the end of the year, it won’t affect the numbers materially either way.

Fahad Tariq: Okay. Great. And then just switching gears to Goose. The new mobile crusher says it would be operational, I guess, now in early August. Can you just tell us if that’s been — if it is operational? And just remind us like what is the difference between this mobile crusher and the previous one in terms of any different technical specifications?

Michael Cinnamond: Over to you, Bill.

William Lytle: Yes. So the first part is we are commissioning even as we speak. There is a site on team commissioning. So we think in very short order will be up to our nameplate run rate. The difference is really this is just a bigger Metso mobile crusher, very similar to what we had on site before. So basically, we’ve kind of twinned what we’ve got going on there. We just have more horsepower.

Fahad Tariq: Okay. Got it. And then going into ’27, is there an expectation that these mobile crushers would still be used or will they just be redundant?

William Lytle: Good operational question. So the answer is certainly in the first half of the year, the mobile crushers are going to be necessary as we ramp up Phase 2 of the repairs for the Goose site. And then after that, there is some discussion on whether or not you would use it as backup or would we, in fact, then supercharge some of our regional civil work that we have ongoing.

Operator: The next question comes from Ovais Habib with Scotiabank.

Ovais Habib: Yes, absolutely. Congrats on the Fekola permit. This is a huge achievement. So congrats to the entire team. A lot of my questions have been answered, specifically to the Fekola kind of Fekola ramp-up as well as the Goose crusher. But just on the Fekola side and the regional side, obviously, there’s some decent mineralization that was already delineated on the certain areas. Is there other more or more potential in terms of looking at additional satellite pits around the area? Is there a plan now that you have the permit to start some sort of an exploration program in that area as well? Any sort of color on that, that would be great.

Michael Cinnamond: So I can — a couple of initial comments there. We do have some exploration work planned on regional for this year. You’ll see us — we’re just commencing that now, actually, just the rain season has just finished. So we will be doing some additional work. I mean I think there’s definitely potential for more work to be done there, right? But we have developed plans based on what we know is there already. So in terms of any additional pits, I think we’ll be able to give some more guidance later this year as to how we see regional rolling out over the next year.

Ovais Habib: Okay. And just in terms of looking at Goose again, just in terms of more towards the underground, Bill, kind of how are things progressing on the underground side in terms of mining rates, in terms of just equipment that’s already in place? Are you comfortable with how things are progressing? What more do we need to see in terms of ramping that up?

William Lytle: No, it’s a great question. We are comfortable for sure in what we’re seeing. We had projected that we had to get up to 12 meters per day of development. We’re currently at just over 11. So we don’t see any real issues. Things are coming along very well.

Operator: The next question comes from Lawson Winder with Bank of America.

Lawson Winder: Absolute congratulations on getting the permit sorted out in Mali. Just looking into 2027 and thinking about gold production that year with the moving parts around grades and volumes from Fekola and Cardinal open pits from the Fekola underground and now regional ramping up. I mean, directionally versus 2026, it would seem we would be going higher from the current range of 390,000 to 420,000. But could you maybe talk around some of the moving parts and just give us a sense of directionally where we should be thinking about Fekola production for 2027?

Michael Cinnamond: Michael, do you want to give a sort of overview?

Michael McDonald: Yes. Yes, I can take that one. So I think for Fekola Complex, as you can imagine, with the point in time here now where we’ve got the permit for the past few years, when you look at our guidance for the Fekola Complex in ’24 and ’25, we performed very well in spite of at the start of each year, thinking that there would be some contribution from regional. Now we’ve obviously got the permit and we’ll begin activities there. But Fekola still needs to go through the Phase 8 stripping campaign, which it currently is in right now. And that really unlocks what’s a very robust and productive few years for the Fekola Main pit.

And then you’ll have regional ramped up and underground going as well. But I think it’s probably premature to speculate on ’27 yet. The team will work through in the budget process exactly what contribution we think we can get from each of the components. But I wouldn’t bake that ’27 will be higher than ’26 just because we do need to get through the Phase 8 stripping at Fekola. I think the other moving parts as you think about ’27 though, is Goose will have a significant ramp-up into ’27.

So on a consolidated basis, we absolutely think that there’s every chance as they go through the budget process that we will be higher in ’27 than ’26 as a company. But Fekola, we still have some work to do, and we’ll come out with more clarity on that with our guidance next year.

Lawson Winder: Yes. And just thinking about the permits over the next, call it, 3 years, are there any other additional permits needed in order to operate any of the — or to mine any of the deposits at Fekola? And then in that same thought, maybe you could just address whether you would think going forward now. There’s an understanding and the permitting process should be much more streamlined now at this point.

Michael Cinnamond: I’ll pass this one over to Randall.

Randall Chatwin: Yes. I think the one permit that you would recognize that we’re going to need to obtain would be the Dandoko permit, and that’s a process that will start on the exploitation side probably later next year for ’28. But yes, I agree that the establishment of the governance that is in Mali now, we have full confidence that the process will be much smoother going forward.

Lawson Winder: Okay. And then if I could just ask another on the sustaining CapEx. So if we just talk about the sustaining CapEx guidance in terms of millions, the original guidance from February was about $540 million between deferred stripping, underground development and maintenance plus there was about $27 million for sustaining exploration. So given that your all-in sustaining cost guidance is expected now to be lower than the original guide, what level of absolute sustaining CapEx would you advise we be modeling versus that original $540 million? And was there any change to the $27 million of sustaining exploration?

Michael McDonald: I can take that one. So you’ve seen with some of our disclosure that basically all the sites outside of Goose are under where we expected they would be from a sustaining capital perspective. They need to get through the year and sometimes the phenomenon that you see is that sites end up catching up, which we have disclosed, we anticipate for their sustaining capital balance. But it’s been a good trend in the first 6 months of the year. So there is a chance we could come in a bit lower on Fekola, Masbate and Otjikoto.

For Goose, as you can appreciate, with the impacts of the fire, sustaining capital will probably be higher than what we would have anticipated at the start of the year. So it should overall net out to close to what we thought within your numbers at the start of the year.

Operator: The next question comes from Josh Wolfson with RBC.

Joshua Wolfson: I recognize you had maybe an hour to go through a lot of the questions that we’re asking on the numbers in 2027. I’ll ask it maybe a slightly different way. The grade for Fekola based on the updated guidance sort of look at maybe the low 1s. When we think about 2027 in that Phase 8 stripping campaign that was discussed, should we expect the grade next year versus the back half of this year to be flat? Or will they decline during that stripping campaign?

Michael Cinnamond: Bill, can I pass this one over to you on the Fekola expected grade for ’27?

William Lytle: Yes. Once again, you hit it right on the head. We’re still kind of working through what we’re going to be able to get in from the regional versus what we’re going to be able to get in from Fekola proper. So I don’t really want to comment on exactly what I think the grade is going to be for 2027.

Joshua Wolfson: Okay. I figured I’d ask anyways, but we’re all very excited. And then just on the Fekola Regional capital, I mean, it looks like you spent roughly $40 million so far year-to-date. What should we think about the remaining capital requirements in the back half of this year and maybe for 2027 to ramp up?

Michael McDonald: Yes, I can comment on the back half of the year. So what you’ll see is clearly as we begin stripping, you’ll see some deferred stripping capital that flows through in the back half of the year. So I think you can kind of anticipate that what we did in the first half is representative of what will happen in the second half, but the first half was more equipment purchases where the second half will be more the deferred stripping capital to get down into the ore. And then I think for ’27, again, probably the answer is it’s premature at this stage.

I think as Bill and the team go through their budgeting process and we look at what contribution we can get from regional in ’27, then we’ll have a better estimate of sustaining capital and growth capital for regional at that point.

Joshua Wolfson: And just on Goose, following up on one of the responses earlier about the third quarter grades not being maybe as high due to stockpiling. Could you guys maybe discuss a bit more behind why that would be? I would think typically, if you were stockpiling, you would stockpile the lower grade material, but maybe is there something behind that in terms of what the strategy is into next year?

William Lytle: Yes. So the grade is going to be plus 8. So I guess, what I was thinking of when I answered last time, we kind of had — over Q2, we had some very high, high grade come through. So we are going to see plus 8 grams. And certainly, we’re going to see — we’re going to be in line with what we had projected previously. But when I was talking about stockpiling. For the mobile crushers, we want to make sure that as we get into the Phase 2 ramp-up that you want to have material, which will be able to carry us through Q1 and Q2.

So how do we get through the winter time with the appropriate amount of material with the mobile crusher.

Operator: The next question comes from Don DeMarco with National Bank Financial.

Don DeMarco: Congratulations on the news of the permit. I’ll start off with Fekola. So how does Fekola fit into the company’s strategy? I mean, given the delays on the permitting, there was some uncertainty. But does the news of the award of the permits and your relationship with the state right now, does that restore Fekola as a cornerstone asset?

Michael Cinnamond: I would say, Don, Fekola was a cornerstone asset. I mean if you look at — it’s been a great asset for us over the years since we have operated a world-class mine. We’ve had great success there. It’s run well through since we started it up through COVID, through some of the political changes that we saw in the country. So we’re just delighted to get this permit. It lets us make long-term plans now. Let us optimize how we can mix the mill feed from Fekola and from regional and has potential to extend Fekola’s mill life. And it took us a little longer, I think, to get this permit than we originally anticipated, as you know.

But we’re very happy that I think we’ve worked closely with the state. We’re happy now that they’ve gone through their process. And hopefully, this opens up more opportunities for new permits for other mining companies in the country. So it’s still — it’s a cornerstone asset for us. It’s been historically half of our production. We can see ourselves getting back about 0.5 million ounces from the complex. It’s an important asset.

Don DeMarco: And so Mike, with this, like does it mean that you might also step up exploration regionally? I suspect that was probably largely put on hold until the permits are received.

Michael Cinnamond: Yes. I think there’ll be some more regional focus, especially looking for further sulfide material on the regional permit because Fekola is primarily a sulfide mill.

Don DeMarco: Okay. Great. And on the share repurchases, I mean, the valuation right now is discounted versus peers. In light of this, what’s your plan for share repurchases over the next 12 months? I mean is it — do you plan to get a little bit more aggressive in the near term to take advantage of this dislocation?

Michael Cinnamond: You want to take that, Michael?

Michael McDonald: Yes. Yes. No, we would absolutely agree with the statement that we feel that our current market valuation does not reflect the true underlying value of our business. So absolutely, share repurchases with the free cash flow that we estimate at these gold prices, we will be able to achieve over the coming sort of 12, 24 months will absolutely be on the agenda. These are discussions we have every quarter with our Board and with our management team. But absolutely, that’s a tool we will utilize moving forward based on where we trade today and even in the future when we hopefully believe we will trade higher.

Don DeMarco: Okay. And another question moving over to Goose then. I heard Bill say that they’re going to use the crushers into next year and some — and I appreciate all the color you’ve given on Goose. But I’m wondering, can you give us a sense of the progression of the throughput rates over the next 12 months? And is there any early color on Goose cost or production in ’27? I think we’ve deviated quite a bit from tech report at this point.

William Lytle: Yes, I’ll give the throughput by quarter. As we ramp up into Q3, we’re plus 2,500 tonnes per day. And then in Q4, we’re at more than 3,000 tonnes per day. Then in H1, we’re once again — H1 2027, we’re more than 3,000 tonnes a day. And then in H2, we’re going to be at 4,000. That’s our plan to be at run rate at the end of Q2. As far as the costs, I don’t — I’m not aware of what guidance we’ve given on that. So Michael, maybe you can answer.

Michael McDonald: Yes. I think, Don, you’re right in the sense of we’re probably deviating a bit from the tech report just with how the ramp-up has gone relative to when that report went out. But I think it’s a bit premature to speculate on it. But we absolutely believe it’s a large growth year next year from a production base of what we’ll achieve this year. But maybe wait for the guidance to come out early next year.

Don DeMarco: Okay. Well, just as a segue to that, I mean, saw Goose AISC guidance remain unchanged despite the elevated figure that you had in Q2. So should we just take this as kind of a confidence that you’re going to restore to a lower cost run rate in H2?

Michael McDonald: Yes, yes, 100%. I think you’ll see as what Bill has described to end the year, we should be able to have the main crushing circuit back up and running, and there’s some very good grade that’s anticipated to go through the mill through Q4. And I think that should give a good representation of what we can achieve in the first half of next year. And then the second half of next year we’ll be at that 4,000 tonnes per day average, and that will give a really good estimate into what we think the next few years will look like because that will be steady state for the Goose mine.

Operator: [Operator Instructions] The next question comes from Carey MacRury with Canaccord Genuity.

Carey MacRury: I’ll follow the congrats on the permit. But just switching to Goose and exploration, a year or so ago, you cut the reserves there with I think a view of tightening up drill spacing. I know you’ve got 6 million ounces of reserves there. So just wondering if we should be expecting some of those ounces to start coming back into reserves at the end of this year.

Michael Cinnamond: We’ve got Vic King here, so I’ll pass that one over to Vic.

Victor King: Yes. A significant part of our budget is deeper drilling, infill drilling, particularly at the Llama deposit. And the aim of that is to actually convert what was downgraded to inferred subsequent to our acquisition back into indicated and obviously, that will convert to reserves. In terms of exploration, we have what we call the Llama gap at Llama, which we’re moving and working towards where we can fill the gap and add ounces. I think those will be fairly marginal this year, what we will add during the course of this year.

And then obviously, the potential for down plunge extension of both Llama and Umwelt and also what we call the Nuvuyak deposit, which is another deep deposit, but very good grade will all add to the picture at Goose.

Carey MacRury: And how many drills do you have if I can ask?

Victor King: 6.

Carey MacRury: 6. Okay. And then just switching to something maybe longer term with the Fekola permit now and getting Goose up and running at full capacity next year. Just wondering how things are going with Gramalote. Is that something that — or just how you’re thinking about that project? Is that something that you’d look at potentially starting next year or rather work on capital allocation anytime?

Michael Cinnamond: I think we’re progressing things at Gramalote. So we’ll continue to derisk it. We’ve got the permit modifications, which are ongoing. That process is going well from the most recent updates I saw. And then we’re also progressing the resettlement program, as you saw in our budget. So that’s going to take us into first half of next year, Carey, anyway. And then we can step back and see where we are. And in the meantime, the other key focus is to continue to execute on our 2 top priorities for this year.

Operator: Next question comes from Anita Soni with CIBC World Markets.

Anita Soni: Congratulations on receiving this permit. I know we’re all very happy for you. Just a question on the throughput levels at Goose this quarter. I think, Bill, you said that 3,000 tonnes per day in Q3. What is the — prior to the mobile crusher being installed, what has the throughput been operating at since the beginning of Q3? I assume it’s somewhat similar to what it was operating at in Q2. Was it better than that?

William Lytle: Yes. Well, it’s kind of dribs and drabs right now as we move stuff in and out. So the answer is we can, in fact, on some days, run as much as 4,000 tonnes. But then you get a jam up. As you know, we’re in the process of fixing the entire line. So we’ve kind of been in that 1,500 tonnes when we’re running, 1,500 to 2,000. But obviously, we’ll be ramping up here relatively shortly to much higher numbers.

Anita Soni: Okay. And I think I got some clarity on the grades already from other questions. Could you also remind me with the regional permit, what the taxation — it’s the 2023 code, but what additional taxes and royalties would be on that ore rather than what’s seen in the main permit? I know we’re up the tax rates that are — sorry, royalty rates that are kind of in the 17% zone. But is there anything additional with this regional ore for that ore that we should be modeling in?

Michael Cinnamond: Well, I’m delighted to pass this over to our new tax guy, Michael McDonald, but I can comment. Yes. So I think the primary differences that we saw overall when we move from one code to the other is that the income tax rate under the new mining code it doesn’t get that reduced mining rate for very long. The 25% accommodation that you get in Fekola, that’s a significant reduced period. So you basically can assume it’s going to be a 30% corporate income tax rate for regional. And in addition, on the ISCP, which is for special tax, there was a bump of 2% versus what Fekola pays. The royalty structures are basically the same between the 2.

So those are kind of really the primary differences.

Michael McDonald: I think I’d just add to that, that on top of what Mike talks about, which is the corporate income taxes, we also classify the priority dividend that we pay within our taxes. So Fekola proper has an effective rate of around 40% once you factor in the 20% priority dividend. And then Fekola Regional will be higher than that as well, too, in the end once the final ownership structure is set. You’re allowed to deduct the priority dividend from your corporate income tax. But yes, it raises the effective rate of what we report within our financials and what flows through our current and deferred tax income line.

Michael Cinnamond: Yes. And to clarify that again, so the 20% interest in Fekola that the state owns is a priority interest it’s characterized as a tax in Fekola Regional that we expect the state to have 35% interest. So that will be a net higher amount.

Anita Soni: Okay. And then I think the last question I had was on some of the costs at Goose. So there was, I think, $16 million to purchase this mobile equipment that was shipped and is being installed right now and then $11 million for the installation. And I was just trying to understand like where those costs — were they flowing through in the total cash costs? Or were they coming in through another line and excluded from the total cash cost and AISC calculations?

Michael McDonald: Yes. So the fire remediation costs will flow through our sustaining capital. So that would flow through all-in sustaining costs. But then the Phase 1 and Phase 2 capital would flow through our growth capital line. So it would not be included.

Anita Soni: Okay. All right. And then so none of these costs went through your — I’m just talking about the down with — obviously, your processing facility was — did you capitalize any costs related to the fire — sorry, you removed some of the cost from the fire, because that’s — originally, I think we were talking much higher cash cost this quarter.

Michael McDonald: If you look within our financial statements, yes, there’s a line other cost of sales that was just under $16 million in the quarter, and that was costs related to the downtime that we experienced in Q2. And that was excluded from our per ounce costs.

Anita Soni: Okay. All right. And that $16 million and $11 million I was talking about with the purchase and that won’t flow through the cost, like the $11 million to install will not be included in the cost as well, right?

Michael McDonald: Yes.

Operator: This concludes the question-and-answer session. I would like to turn the conference back over to Mike Cinnamond for closing remarks. Please go ahead.

Michael Cinnamond: Well, thank you very much, everyone, for all your questions. If there are any additional follow-up questions, obviously, feel free to reach out. In conclusion for today, I just want to say we’re obviously delighted about the news, delighted for ourselves, delighted for investors, our shareholders, stakeholders, and delighted for, I guess, the state of Mali as well that we can all move forward. We think this is very constructive. And it just helps move us along again back to those 2 key things that we said we’re going to do. You’ve heard on this call how advanced our plans are for Goose and all the remediation work and the upgrade work that we’re doing.

And we’ve got a good plan to do that, and we’re going to continue to focus very clearly on executing that. And then at regional, we’re pretty much ready to go to get going with the stripping activity. So we’re excited to do that. We’ve been poised to do that for a while. Now we have the chance to actually get out there and make it happen. And so I know there’s been a wait for that, but now here we are. So excited for that, very optimistic for the future here as we move the company forward and grow it.

So thanks all for your attention today and your great questions, and look forward to talking to you all in due course. So thank you.

Operator: This brings to a close today’s conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.