B2Gold Corp (BTG) Q3 2024 Earnings Call Highlights: Strong Cash Flow Amid Operational Challenges

GuruFocus News
4 min read

In This Article:

  • Adjusted Earnings Per Share (EPS): $0.02 per share, impacted by a $30 million tax accrual.

  • Operating Cash Flow: $118 million before working capital adjustments for the quarter.

  • Cash and Cash Equivalents: $431 million at the end of the third quarter.

  • Credit Facility Capacity: $0.5 billion additional capacity with a $100 million accordion feature.

  • Construction and Mine Development Spending: CAD165 million during Q3.

  • Working Capital Buildup: CAD150 million, mainly due to diesel purchases for the 2025 winter ice road.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • B2Gold Corp (BTG) reported strong financial results for Q3 2024, with operating cash flow before working capital adjustments at $118 million.

  • The company completed a significant Memorandum of Understanding (MOU) with the state of Mali, allowing for future economic and governance parameters of the Fekola complex.

  • Masbate and Otjikoto mines continue to meet or exceed budget expectations, contributing positively to the company's overall performance.

  • The Goose project construction is on track to deliver first gold production in Q2 2025, with significant progress made in the third quarter.

  • B2Gold Corp (BTG) maintains a strong financial position with $431 million in cash and cash equivalents and substantial credit facility capacity.

Negative Points

  • Fekola mine experienced a weaker quarter due to a delay in receiving a replacement excavator, impacting production.

  • The company's adjusted earnings were negatively impacted by a one-time $30 million tax accrual related to the MOU with the state of Mali.

  • Basic earnings per share were affected by a non-cash write-down of the Back River Gold District due to capital cost increases.

  • The company expects to come in at the low end of its revised production guidance range and at the upper end of its cash cost and all-in sustaining cost guidance.

  • There are outstanding payments related to the Mali operations, including a significant dividend payment expected by the end of the year.

Q & A Highlights

Q: Could you provide an update on the impact of equipment issues and weather on Fekola's Q4 performance and whether it aligns with the revised guidance? A: William Lytle, COO, explained that the loss of an excavator delayed development into Phase 7 of the open pit. While grades will increase somewhat, the full impact won't be seen in Q4. The performance is still within the revised guidance range.

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