B2Gold’s Fekola Permit Claims Clash With Production Timelines Shifting

Date of Call: Aug 7, 2026

Financials Results

• EPS: $0.31 per share (net income), $0.03 per share (adjusted net income)

Guidance:

• Consolidated gold production for 2026 narrowed to 820,000-920,000 ounces (previously 720,000-1,020,000).
• Consolidated cash operating cost guidance unchanged at $1,155-$1,280 per ounce produced.
• All-in sustaining cost guidance lowered to $2,370-$2,550 per ounce sold, with full-year results expected at or below the low end.
• Fekola complex production guidance for 2026 unchanged at 390,000-420,000 ounces.
• Goose Mine production impacted by crusher fire; repair work progressing with new mobile crusher operational in early August.
• Fekola Regional expected to ramp up through end of 2027, producing over 150,000 ounces annually from 2028 through mid-2030s.

Business Commentary:

Production Performance and Permit Milestone:

• B2Gold reported consolidated gold production of approximately 204,000 ounces for Q2 2026, in line with expectations, with strong performances from Fekola, Masbate, and Otjikoto mines.
• The company received the Menankoto Exploitation Permit from Mali, which is crucial for commencing mining activities at the Fekola Regional deposit.
• The production consistency was driven by efficient operations at key mines, while the permit milestone was achieved after harmonizing governance structures under Mali's new mining code.

Financial Results and Cash Flow:

• Net income attributable to shareholders was $417 million in Q2 2026, or $0.31 per share, with adjusted net income at $41 million or $0.03 per share after excluding non-recurring gains.
• Free cash flow was negative $258 million due to elevated cash tax payments and gold prepaid contracts, but is expected to improve significantly in the second half of 2026.
• The financial results were impacted by temporary pressures from taxes and prepaid deliveries, which are anticipated to moderate, allowing for better cash flow generation.

Operational Challenges and Recovery:

• Goose Mine production was impacted by a crusher fire in April, affecting Q2 results, but repair and remediation work are progressing as planned.
• The company sourced an additional mobile crusher, expected to be operational in early August, aiming to increase crushing capacity beyond 3,000 tons per day.
• Challenges at Goose Mine were mitigated by strategic sourcing and planned upgrades to restore operations to steady state.

Strategic Focus and Leadership Transition:

• B2Gold emphasized disciplined execution and reinvestment in business to create long-term value, focusing on safety, operational efficiency, and community partnerships.
• Leadership transition saw Mike Cinnamond appointed as CEO, with confidence in his ability to continue the company's strategic direction.
• The strategic focus aims to address recent share price performance and deliver expected results, supported by strong operational and financial management.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed being "delighted" and "optimistic for the future" regarding the Mali permit, stating it is "a great step forward" and "very constructive." They noted the company is "well-positioned" to advance key priorities, with strong financial position and plans to increase shareholder returns as gold price-linked encumbrances expire.

Q&A:

• Question from Wayne Lam (TD Cowen): At Fekola, would you be able to just provide a bit more detail on what changed with the most recent discussions in country, and has anything changed in the relationship in country that prompted the issuance of the permits now?
  Response: The permit issuance is due to Mali harmonizing its new mining code governance structures; B2Gold was the first major project under the new code, and the state is now comfortable moving forward.

• Question from Wayne Lam (TD Cowen): What’s the timeline from here in terms of stripping and mobilizing and getting to ore at Regional? Should we just take that guidance and shift that forward?
  Response: Pre-stripping will occur in late 2026, with ramp-up expected through 2027 to reach a 150,000-ounce annual production rate by end of 2027.

• Question from Wayne Lam (TD Cowen): 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?
  Response: Crushing capacity will exceed 3,000 tons per day by Q3/Q4 2026, with grades expected to return to previous forecasts as stockpiles are built for 2027.

• Question from Fahad Tariq (Jefferies): On the Fekola revised guidance for 2026, did that factor in getting the permit, I guess, today? Or is there upside to the guidance?
  Response: The 2026 production guidance for Fekola complex (390-420k ounces) is comfortable whether any minor production occurs in late 2026 or all starts in 2027.

• Question from Fahad Tariq (Jefferies): The new mobile crusher said it would be operational, I guess, now in early August. Can you just tell us if it is operational? What is the difference between this mobile crusher and the previous one?
  Response: The crusher is being commissioned and should be up to nameplate run rate soon; it is a larger, similar Metso mobile crusher with more horsepower.

• Question from Owais Habib (Scotiabank): Just on the Fekola side and the Regional side, is there 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?
  Response: Exploration at Fekola Regional has already started post-rainy season, with potential for additional pits; more guidance on Regional rollout will be provided later in the year.

• Question from Owais Habib (Scotiabank): Just in terms of looking at Goose again, how are things progressing on the underground side in terms of mining rates?
  Response: Underground development is at just over 11 meters per day, exceeding the 12-meter target, with no significant issues.

• Question from Lawson Winder (Bank of America): Just looking into 2027 and thinking about gold production that year... directionally, versus 2026, it would seem we would be going higher... Could you maybe talk around some of the moving parts?
  Response: It is premature to speculate on 2027 Fekola complex production as Phase 8 stripping is ongoing; however, consolidated company production has a chance to be higher in 2027 than 2026 as Goose ramps up significantly.

• Question from Lawson Winder (Bank of America): Over the next, call it three years, are there any other additional permits needed in order to operate or to mine any of the deposits at Fekola?
  Response: The Dandoko permit will be needed later for 2028; the new governance in Mali should make future permitting processes much smoother.

• Question from Josh Wolfson (RBC): The grades for Fekola, based on the updated guidance, look maybe the low ones. When we think about 2027 and that Phase 8 stripping campaign... should we expect the grades next year versus the back half of this year to be flat, or will they decline?
  Response: Management declined to comment on specific 2027 grades, stating they are still working through the mix between Fekola and Regional contributions.

• Question from Josh Wolfson (RBC): Just on the Fekola regional capital, it looks like you’ve spent roughly $40 million so far year to date. What should we think about the remaining capital requirements?
  Response: Deferred stripping capital will flow through in H2 2026; for 2027, it is premature to estimate as the budgeting process is ongoing.

• Question from Don DeMarco (National Bank Financial): How does Fekola fit into the company’s strategy?... does that restore Fekola as a cornerstone asset?
  Response: Fekola has always been a cornerstone asset; the permit allows long-term planning, mill feed optimization, and potential mill life extension, with the aim to return to half-million-ounce complex production.

• Question from Don DeMarco (National Bank Financial): On the share repurchases, the valuation right now is discounted versus peers. In light of this, what’s your plan for share repurchases over the next 12 months?
  Response: Share repurchases will be on the agenda as a tool to utilize given the perceived undervaluation, with discussions held quarterly with the board.

• Question from Don DeMarco (National Bank Financial): Can you give us a sense of the progression of the throughput rates over the next 12 months?... any early color on Goose costs or production in 2027?
  Response: Throughput plan: Q3 2026 >2,500 tpd, Q4 >3,000 tpd, H1 2027 >3,000 tpd, H2 2027 4,000 tpd. It is premature to speculate on 2027 costs; wait for guidance next year.

• Question from Kerry McLoory (Canaccord Genuity): Switching to Goose and exploration, a year or so ago, you cut the reserves there. What’s your thinking of tightening up drill spacing?
  Response: Budget focuses on deeper infill drilling at Llama to convert inferred to indicated/reserves, with potential for marginal additions this year and exploration in gaps and extensions.

• Question from Kerry McLoory (Canaccord Genuity): Just wondering how things are going with Gramalote. Is that something that you’d look at potentially starting next year?
  Response: Gramalote is progressing with permit modifications and resettlement program, but focus remains on executing the two top priorities for 2026 before advancing further.

• Question from Anita Soni (CIBC Capital Markets): Just a question on the throughput levels at Goose this quarter. What has the throughput been operating at since the beginning of Q3?
  Response: Throughput has been in the 1,500-2,000 tons per day range, with some days up to 4,000 tons, but ramps will improve soon.

• Question from Anita Soni (CIBC Capital Markets): Could you also remind me with the regional permit, what the taxation... what additional taxes and royalties would be on that ore?
  Response: Key differences under the new code: corporate income tax rate for Regional is 30% (vs. 25% accommodation at Fekola), plus a 2% ISCP tax bump; royalty structures are similar but priority dividend impacts effective rate.

• Question from Anita Soni (CIBC Capital Markets): I was just trying to understand where those costs [for mobile crusher purchase/installation] were. Were they flowing through in the total cash costs?
  Response: Fire remediation costs flow through sustaining capital (excluded from per-ounce costs); growth capital (crusher costs) flows through separate line items.

Contradiction Point 1

Fekola Permit Issuance and Governance Context

Contradiction on whether permit issuance was a direct result of recent governance changes.

Wayne Lam (TD Cowen) - Wayne Lam (TD Cowen)

2026Q2: The delay was due to Mali harmonizing its governance structures under the 2023 Mining Code... B2Gold was the first major project to receive a permit under the new code, and the process is now ready to move forward. - Mike Cinnamond(CEO)

What changes in recent in-country discussions and relationship developments led to the issuance of permits at Fekola? - N/A

2026Q1: [No specific content provided as the transcript is a placeholder with no actual Q&A from the scheduled Q1 call.] - **Traceability:** (2026Q2-1, 2026Q1-N/A)

Contradiction Point 2

Fekola Regional Production Timeline

Contradiction on the readiness to provide a detailed production timeline for Fekola Regional.

Wayne Lam (TD Cowen) - Wayne Lam (TD Cowen)

2026Q2: Pre-stripping can begin shortly, with activities expected to run through the end of 2026. Mining is anticipated to start in 2027, with a goal of reaching a production rate of 150,000 ounces per year by the end of 2027. - Mike Cinnamond(CEO)

What is the updated timeline for stripping, mobilizing, and reaching ore at Regional, and should guidance be adjusted accordingly? - N/A

2026Q1: [No specific content provided as the transcript is a placeholder with no actual Q&A from the scheduled Q1 call.] - **Traceability:** (2026Q2-2, 2026Q1-N/A)

Contradiction Point 3

Fekola Permit Timeline and Confidence

Confidence and timeline for obtaining the Fekola permit shifted from uncertain and slow to a specific, near-term achievement.

What were the key financial results and growth drivers for the quarter? - Wayne Lam (TD Cowen)

2026Q2: The delay was due to Mali harmonizing its governance structures... B2Gold was the first major project to receive a permit under the new code, and the process is now ready to move forward. - Mike Cinnamond(CEO)

What changes in recent in-country discussions and relationships prompted the issuance of permits at Fekola? - Fahad Tariq (Jefferies)

2025Q4: Confidence stems from progress made in 2025... The permit is with the President and the new Mining Commissioner, with ongoing dialogue. The government is moving things forward, albeit slowly. - Randall(Permitting/Legal Executive)

Contradiction Point 4

Technical Approach and Timeline for Goose Crusher Repairs

The method and timeline for resolving the crusher issue at Goose changed significantly between the quarters.

Wayne Lam (TD Cowen) - Wayne Lam (TD Cowen)

2026Q2: The new mobile crusher, delivered in July, is operational and being commissioned. It provides a combined crushing capacity of over 3,000 tons per day when paired with existing crushers. - Bill(COO)

Can you discuss the challenges with mobile crushers at Back River and the expected tonnage growth throughout the year, particularly in Q3? - Fahad Tariq (Jefferies)

2025Q4: The study by Ethel Smith is completed... Final cost estimates are expected by April, with the total expected to be in the tens of millions. Equipment can be brought in by plane this year or next. - Bill(COO)

Contradiction Point 5

Timeline and Status of Fekola Regional Permit

Contradiction on when the Fekola Regional permit was expected to be issued.

What are the key factors driving recent financial results? - Wayne Lam (TD Cowen)

2026Q2: The delay was due to Mali harmonizing its governance structures... B2Gold was the first major project to receive a permit under the new code, and the process is now ready to move forward. - Mike Cinnamond(CEO)

What changes in the relationship at Fekola prompted the recent issuance of permits? - Owais Habib (Scotiabank)

2025Q3: Pre-stripping and clearing are already underway. Permit is expected imminently, and the company is ready to start work immediately upon receipt. - Clive Johnson(CEO)