B2Gold (NYSEAMERICAN:BTG) said the Government of Mali granted the Menankoto Exploitation Permit, clearing the company to begin mining-related activities within the permit area and advance the Fekola Regional deposit. The company requested a temporary trading halt before its second-quarter conference call to disseminate the material news.
President and Chief Executive Officer Mike Cinnamond said the permit was an important milestone for the Fekola complex. It allows B2Gold to begin pre-stripping activity at Fekola Regional, which is expected to ramp up through the end of 2027 and produce more than 150,000 ounces of gold annually from 2028 through the mid-2030s.
Leadership transition and Mali permitting
Chairman Kelvin Dushnisky opened the call by recognizing former CEO Clive Johnson, who has moved into the role of chair emeritus, and by expressing the board’s confidence in Cinnamond as CEO and Michael McDonald as chief financial officer. Dushnisky said the leadership changes represented continuity in B2Gold’s strategy, which remains focused on operational execution, reinvestment and shareholder returns.
On the permitting process in Mali, Cinnamond said the government had been implementing the country’s 2023 Mining Code and establishing new governance structures, including a mining commission and state mining company SOPAMIM. He characterized Menankoto as the first major new permit granted under the updated code.
The company expects pre-stripping to begin shortly and continue through the end of 2026. While there could be limited Fekola Regional production late this year, management said it was more appropriate to assume stripping activity this year followed by a ramp-up during 2027.
Randall Chatwin, senior vice president of strategy and chief legal officer, said B2Gold will need to obtain a Dandoko exploitation permit, a process expected to begin later in 2027 for 2028. He said the company expects the permitting process to be smoother going forward under Mali’s newly established governance framework.
Second-quarter financial results
B2Gold reported consolidated gold production of about 204,000 ounces in the second quarter, with Fekola, Masbate and Otjikoto exceeding expectations. Those results offset a more difficult quarter at the Goose mine, where an April fire in areas of the crushing circuit disrupted production.
McDonald said net income attributable to shareholders was $417 million, or $0.31 per share, reflecting the gain on the sale of the company’s Finland Properties and unrealized derivative gains. Adjusted net income attributable to shareholders was $41 million, or $0.03 per share, after excluding those gains and other non-recurring items.
Adjusted earnings included approximately $71 million in realized losses tied to gold collar contracts, McDonald said. Excluding that effect, adjusted net income per share would have been slightly above $0.08. The gold collar contracts are scheduled to conclude in December, while gold prepaid contracts were completed in June.
- Operating cash flow before working-capital changes was $94 million.
- Free cash flow was negative $258 million, which management said was in line with its 2026 guidance assumptions.
- The company ended the quarter with $287 million in cash and cash equivalents and $405 million in working capital.
- B2Gold completed the sale of its 70% interest in Finland Properties to Agnico Eagle for $325 million.
Management said free cash flow was affected by elevated tax payments, including a priority dividend payment to the State of Mali related to its 20% ownership of Fekola, as well as gold prepaid contracts that affected more than 30% of ounces sold in the quarter. McDonald said cash taxes should moderate in the third and fourth quarters relative to the second quarter.
The company repurchased 19 million shares for $92 million during the quarter. Through the first half of 2026, B2Gold repurchased about 35 million shares for $172 million and paid $52 million in dividends, for total shareholder returns of $224 million.
Goose repairs and revised outlook
At Goose, B2Gold said remediation work and the first phase of crusher upgrades remain on schedule for completion by the end of the third quarter. An additional mobile crusher was delivered to the site in July and was being commissioned in early August.
Bill Lytle, senior vice president and chief operating officer, said the new Metso mobile crusher is similar to the existing equipment but has more horsepower. With the new unit and existing crushers, B2Gold expects crushing capacity to exceed 3,000 tonnes per day.
The company expects Goose throughput to exceed 2,500 tonnes per day during the third quarter, rise above 3,000 tonnes per day in the fourth quarter and first half of 2027, and reach 4,000 tonnes per day in the second half of 2027. Mobile crushers will remain necessary during the first half of next year as the company completes the second phase of repairs.
Lytle said underground development at Goose had reached slightly above 11 meters per day, nearing the company’s 12-meter-per-day target. He also said the operation expects grades above 8 grams per tonne in the latter part of 2026.
B2Gold narrowed its 2026 consolidated production guidance to between 820,000 and 920,000 ounces. The revisions reflected delays in the Menankoto permit and the Goose crusher fire, partly offset by increased guidance at Masbate and Otjikoto.
Cash operating cost guidance was maintained at $1,155 to $1,280 per ounce produced. The company lowered all-in sustaining cost guidance to $2,370 to $2,550 per ounce sold and said it expects full-year results to come in at or below the low end of that range.
Exploration and capital allocation
B2Gold said it plans additional exploration work at Fekola Regional following the permit approval, including work targeting further sulfide material. At Goose, Senior Vice President of Exploration Vic King said six drills are operating, with work focused on deeper drilling and infill drilling at the Llama deposit to potentially convert inferred resources back to indicated resources and reserves.
Management also said it will continue advancing Gramalote through permit modifications and resettlement work, which is expected to extend into the first half of 2027. Cinnamond said the company’s near-term priorities remain executing the Fekola Regional ramp-up and completing Goose remediation and upgrades.
About B2Gold (NYSEAMERICAN:BTG)
B2Gold Corp. is a Canadian-based intermediate gold producer with a diversified portfolio of operating mines and advanced-stage development projects. Founded in 2007 through the merger of Bema Gold and CGA Mining, the company has grown to become one of the world’s largest new gold producers. Headquartered in Vancouver, British Columbia, B2Gold focuses on efficient, low-cost operations across several continents, combining exploration, development and production within a single strategic framework.
The company’s flagship assets include the Fekola mine in Mali, which commenced production in 2017, the Otjikoto mine in Namibia, and the Masbate mine in the Philippines.
