B2Gold Corp. (AMEX:BTG) Q1 2024 Earnings Call Transcript

Anita Soni: Okay, sorry. And is the Echo pit the one that’s where the tailings going to be deposited? Is that what’s happening?

Bill Lytle: That’s correct.

Anita Soni: Okay. And then long-term, like when does the Echo pit tap out on capacity? Do you build another tailing stand after that?

Bill Lytle: Absolutely, we do we start, it’s going to go from Umwelt, and then I think it goes into Lama eventually.

Anita Soni: Okay. And so just in terms of the trucks on site, you said you had 10 originally or how many do you need to get to get to the full production rate?

Bill Lytle: I think it’s — I’m not — I might have to get back to you on. I think it’s 15 is where we ultimately get, but I can’t remember exactly. If I’m wrong, I’ll come back to you.

Anita Soni: Sure. And the other question that I would have is the ultimate mining capacity of the entire fleet at 15?

Bill Lytle: Yes, I don’t have that number right in front of me.

Anita Soni: Sorry. Okay. The other question that I had in terms of next year, and I know that Ralph has sort of asked a little bit about this, but I’m just curious about if you’ve got three months that you didn’t anticipate, would there not be standby costs in terms of like G&A and people running the site that would be additional? And what would be the sort of run rate on that? I would assume somewhere in the range of about $5 million to $10 million a month, I guess, just — but that would be what I know from comps in Northern Ontario might be a little bit more cost there?

Bill Lytle: Yes. And the answer is if we didn’t manage it, if we just let everything run wild, then you could see those kind of numbers. That’s what we said. We’re actually trying to manage that down by making sure that the appropriate staffing is on site and making sure that the appropriate fuel consumption, all this stuff basically, we’re just trying to take the construction curve and flatten out by three months.

Anita Soni: Okay. And then just another thing that I would ask is that as you get closer to construction, what would you think outside, obviously, of the critical path items that you’ve addressed at this point? Is there anything else that we should be thinking about, like in closing truck shops and things like that? Is that something that you’re also watching? Like what else keeps you up at night?

Bill Lytle: A lot of stuff keeps me up at night, but let’s start with — let’s start with fuel tank construction, right? We’ve got — as you know, we’ve got to bring in almost a little bit more than 80 million liters of fuel at both the MLA and at site, those tanks have to be built. In particular, one of the MLA because in September, that boat is going to arrive, we’ve already paid for it. And so if there’s no tankage there, we got a problem, right? So, that’s probably the next thing on a critical path. Giving us additional kind of three-month buffer and I don’t ever tell the construction guys I said there was a three-month buffer now because they’re still heading towards the original schedule. But if you look at like the underground stuff, that really gives us some opportunities to look at various options.

And that’s what we’re going through right now is how do we really optimize it given this kind of bit of reprieve from an operational perspective. But everything else is going quite well.

Anita Soni: Okay. And final question. Are you guys going to do the site tour again in September, so we can recalibrate ourselves?

Mike Cinnamond: Yes.

Anita Soni: Okay, good. Thank you very much for taking my question.

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

Don DeMarco: Thank you, operator. And good morning, Clive and team. Congrats on a strong start to the year. So start off with Goose, so we’ve seen updates on budget and schedule. Do you plan to release any updates on, say, OpEx after the mines in production? I think the view is that ASIC will increases the — but do you have any — maybe the magnitude of the increase or a more precise estimate at this point?

Mike Cinnamond: So the answer is, yes, as one of the things that we’ve been waiting on is to update the resource model. And so when that comes up, we certainly want to put together a whole package, I think, and update it.

Don DeMarco: Okay. And then when do you think that would be?

Clive Johnson: Yes. I mean, we expect to update the resource for valid [ph] AIF. So the updated resource will come on the AIF next year, so still talking about the quick follow-on that update.

Don DeMarco: Okay, great. Maybe shifting over to Fekola, we saw that there was a tech report filed in March and 2026 is highlighted as an opportunity for the underground, when do you expect to have to realize some of the potential underground or do the necessary conversion of reserves that might be needed?

Mike Cinnamond: Yes. So we’re going to reach the phase at the end of this year, and we fully plan to be in mining operationally in late Q1, Q2 next year.

Don DeMarco: Okay.