Carey MacRury

Carey MacRury asked about the expected All-in Sustaining Costs (AISC) at Goose once it reaches 3,200 tons per day, relative to current guidance. He also inquired about the sensitivity of cash tax guidance, provided at $5,000/ounce gold, to a lower gold price like $4,500/ounce.

Answer

Michael Cinnamond (CFO, B2Gold) stated that AISC at Goose would step down significantly from 2026 budget numbers once steady state (4,000 tpd) is achieved, likely in 2027 after Stage 2 crusher remediation. Regarding cash taxes, he advised taking the difference in gold price, multiplying by production ounces, and applying a 30% effective average rate, reminding analysts to include withholding taxes on repatriated dividends, which were over $130 million in 2025 on over $1 billion repatriated.

Carey MacRury asked for insights into the expected All-in Sustaining Costs (AISC) at the Goose Mine once it reaches 3,200 tons per day, comparing it to current guidance. He also inquired about the sensitivity of cash tax guidance to gold price fluctuations, specifically between $5,000/ounce and $4,500/ounce.

Answer

Michael Cinnamond, CFO of B2Gold, indicated that Goose AISC would significantly decrease from 2026 budget levels once the mine ramps up to 4,000 tpd, likely in 2027 after Stage 2 crusher remediation. Regarding cash taxes, he advised analysts to estimate the impact by multiplying the gold price difference by production ounces and applying an effective average rate of 30%, noting the non-linear effect due to withholding taxes on repatriated dividends. He highlighted that 2025 cash taxes exceeded $500 million, with over $130 million in withholding taxes.

Carey MacRury sought clarification on whether the 40% free cash flow return target is exclusively for 2026 or a recurring target. She also asked about the expected quarterly production progression for the 2 million ounce guidance.

Answer

Andrea Freeborough (CFO) confirmed that the 40% free cash flow return target is for 2026 and will be revisited for subsequent years. Andrea Freeborough (CFO) and Claude Schimper (COO) indicated that the 2 million ounce production guidance for 2026 is expected to be relatively flat quarter-over-quarter, with an average range of 490-510 thousand ounces per quarter.

Carey MacRury sought clarification on whether the 40% free cash flow return target is exclusively for 2026 and subject to review for 2027. He also asked about the expected quarterly production progression for the 2 million ounces, specifically if it would be flat or varied throughout the year.

Answer

Andrea Freeborough, CFO, confirmed that the 40% target is for 2026 and will be revisited for 2027. Claude Schimper, COO, and Andrea Freeborough, CFO, indicated that production is expected to be relatively flat quarter-over-quarter, with an average range of 485,000-515,000 ounces per quarter.

In a follow-up question, Carey MacRury asked for clarification on which specific operations are expected to drive the higher costs forecasted for the second half of the year.

Answer

EVP & CFO Andrea Freeborough specified that higher costs are expected at Fort Knox, Round Mountain, and Tasiast, primarily due to mine sequencing where stripping costs will shift from being capitalized to being treated as operating waste. She also noted seasonal increases in power costs at Paracatu and in Alaska.

Carey MacRury of Canaccord Genuity asked about a theoretical construction timeline for Great Bear if permitting were not a constraint, the gold price floor for executing the $500 million share buyback, and the specific Q2 production outlook for Tasiast.

Answer

CEO J. Rollinson stated the company is preparing for various permitting scenarios at Great Bear but has nothing concrete to change its strategy yet. CFO Andrea Freeborough explained the plan is to execute the $500 million buyback even at reasonably lower gold prices. Claude J. Schimper, COO, indicated Tasiast's Q2 would be lighter but that the mine remains on track to meet its full-year guidance.

Carey MacRury asked about capital allocation, including the target cash balance ahead of Great Bear development and the long-term debt strategy. He also inquired about the expected quarterly production sequence for 2025 and the potential mine life extension at La Coipa.

Answer

EVP and CFO Andrea Freeborough explained that while there's no fixed minimum cash balance, they are mindful of repaying the 2027 notes and will balance CapEx, debt, and shareholder returns. She also confirmed 2025 production should be relatively consistent quarter-over-quarter. EVP and CTO William Dunford added that permitting at La Coipa is for open pit extensions that could take production through 2030 and potentially beyond.

Carey MacRury asked about the drivers for the expected 2025 CapEx increase, the long-term plan for La Coipa and Lobo-Marte, and the status of the Maricunga project.

Answer

CFO Andrea Freeborough confirmed 2025 CapEx is expected to be around $1 billion, with EVP and COO Claude J. Schimper adding that projects like Phase X and Curlew would contribute. CEO J. Rollinson outlined a strategy for a linear transition from La Coipa to Lobo-Marte by the end of the decade, contingent on permitting. He noted Maricunga has option value but no current restart plans.

Carey MacRury questioned the timing of the North American IPO, given the consistent decline in Nevada's production and expected lower output this year, asking why the IPO is happening now rather than when Nevada's operations are more stabilized. She also asked for the key drivers behind the group's production outlook from 2026 to 2027.

Answer

Mark Hill, President and CEO, asserted that Nevada's operations are stabilized, citing the rapid return of control to general managers, a strong team, robust Q4 performance, and the best January in five years. He expressed confidence in consistent delivery this year and anticipated future production growth. For the 2027 production uplift, Mark Hill identified continued increases at Loulo-Gounkoto, a small increase at Nevada, and an increase at PV as the primary contributors.

Carey MacRury questioned the timing of the North American IPO, asking why now given consistent production declines in Nevada. She also asked for the key drivers for the group-level production uplift from 2026 to 2027.

Answer

Mark Hill, President and CEO, stated his view that Nevada is stabilized, citing quick return of control to general managers, strong team performance in Q4, and a strong January, which he believes positions Barrick to deliver guidance and achieve production growth before the IPO. He identified continued increases at Loulo-Gounkoto, a small increase at Nevada, and an increase at PV as the three key drivers for the 2027 production uplift.

Carey MacRury asked if the demineralization at Four Mile is potentially trending off Royal Gold's royalty ground or if it remains entirely within their coverage. He also inquired if the recent transactions make inclusion on the S&P 500 more likely, or if the criteria have shifted.

Answer

Martin Raffield (SVP of Operations, Royal Gold) confirmed that all identified material at Four Mile remains on Royal Gold's royalty ground. Bill Heissenbuttel (President and CEO, Royal Gold) stated that while the company has grown, it is still some way from meeting the minimum market capitalization requirement (around $20.5 billion) for S&P 500 inclusion.

Carey MacRury of Canaccord Genuity inquired about the Segovia mine's ramp-up, specifically the source of the additional 1,000 tonnes per day, the status of contracts, and the timeline. He also asked about the development options being considered for the Toroparu project's PEA and sought guidance on expected cash taxes for Q2.

Answer

Richard Thomas, an executive, explained the Segovia ramp-up will be a 60/40 split between Aris Mining and contract mining partners, with most contracts in place for a steady ramp-up through Q3 and Q4. For Toroparu, he noted they are exploring resizing the project, innovative oxide treatments like heap leaching, and optimizing transport and power. Executive Richard Orazietti added that Q2 cash taxes should be similar to past periods, based on Segovia's income.

Carey MacRury of Canaccord Genuity inquired about the Segovia plant ramp-up, specifically the sourcing of the additional 1,000 tonnes per day from contract miners and the timeline. He also asked about the development options being explored for the Toroparu PEA and sought guidance on expected cash taxes for Q2.

Answer

Executive Richard Thomas explained the Segovia ramp-up will target a 60/40 split between Aris Mining and contract mining partners, with a steady increase through Q3 and Q4. He also detailed that the Toroparu PEA is assessing resizing the project, using heap leach for oxides, and optimizing transport and power. Executive Richard Orazietti noted that Q2 cash taxes should be similar to previous periods, based on Segovia's income at a 35% rate.

Carey MacRury of Canaccord Genuity inquired about expected gold grades at the Segovia mine for Q3 and Q4, the projected capital spending at the Marmato project for the second half of the year, and the level of visibility into the high-grade ore supplied by contract mining partners.

Answer

Richard Thomas, COO, responded that Segovia's grades are expected to increase to 9.8 g/t in Q3 and 10.2 g/t by year-end. He explained that Marmato's capital expenditures will significantly ramp up in the second half of the year with major equipment purchases and development commencement. Mr. Thomas also noted that Aris Mining is increasing its support and assistance for contract mining partners to improve planning and visibility into future production.

Carey MacRury inquired about the expected gold grades at the Segovia mine for Q3 and Q4 2024, the projected capital spending at the Marmato project for the second half of the year, and the key development milestones for Marmato during that period. He also asked about the company's visibility into the high-grade ore supplied by its contract mining partners.

Answer

COO Richard Thomas stated that Segovia's grades are expected to increase from 9.3 g/t to 9.8 g/t in Q3 and reach 10.2 g/t by year-end. He explained that Marmato's capital expenditures will ramp up significantly in the second half as major equipment is purchased and development begins. Key H2 activities include starting portal development, civil works for the plant, and building non-process infrastructure. Regarding mining partners, Thomas noted that Aris Mining is increasing its support and assistance to improve planning and production visibility.

Inquired about the Marmato capital spending profile for the remainder of the year and 2024, the status of community relations and artisanal miner integration at Marmato, and the expected impact of the Segovia resource increase on its reserves.

Answer

The company will provide the specific Marmato capital profile breakdown later. Community relations at Marmato are reported as strong and supportive, with plans to accelerate the integration of artisanal miners into the upper mine. Following the significant resource increase at Segovia, the reserve is also expected to increase to a range of 1.3 to 1.5 million ounces, with an official update by the end of November.

Carey MacRury inquired about the expected stockpile grade and tonnage at the Goose project before mill start-up, the ore mix for the remainder of the year, and the company's strategy for handling its gold prepay facility.

Answer

Executive William Lytle confirmed a significant high-grade stockpile is ready, with plans to process 20,000-35,000 tons at over 10 g/t initially. Executive Michael Cinnamond detailed the 2025 ore mix as roughly 40% Echo open pit, 40% Unwell open pit, and 20% Unwell underground. He also stated the company's goal is to settle the prepay facility as scheduled rather than deferring it, using its revolving credit facility for flexibility if needed.

Carey MacRury of Canaccord Genuity Inc. questioned the potential mine life extension at Essakane, noting that current reserves are based on a $1,500/oz gold price and asking what the impact of using a higher price might be.

Answer

COO Bruno Lemelin acknowledged that with higher gold prices, the company will revisit its reserve assumptions, which will certainly impact Essakane's mine life, currently planned until 2029. He mentioned an intense drilling program is underway to define the full potential within the mine's perimeter. CEO Renaud Adams added that the primary strategy is to grow reserves through drilling rather than relying solely on higher metal prices.

Carey MacRury from Canaccord Genuity followed up on Cote's mill throughput, asking if it's expected to run at approximately 60% of capacity until the planned September shutdown. He also questioned the final price for the Sumitomo buyback option and whether the estimated $380 million figure is likely to change.

Answer

President and CEO Renaud Adams confirmed that 60% throughput is the new baseline for Cote leading up to the September shutdown, after which the ramp-up will continue. CFO Marthinus Theunissen addressed the Sumitomo buyback, stating that while the final price depends on July and August results, it is not expected to change materially from the previously guided $380 million.

Carey MacRury sought confirmation on whether any further upgrades are required at the Magino processing circuit to achieve the 11,200 tonnes per day throughput rate. He also asked for details on which components would need to be upgraded for the longer-term expansion to 15,000+ tonnes per day.

Answer

Luc Guimond, COO, confirmed that no further upgrades are needed to reach the 11,200 tonnes per day target, as all necessary modifications to address original design deficiencies have been completed. For the larger expansion to potentially 20,000 tonnes per day, he explained it would essentially involve 'twinning' the existing infrastructure, requiring a second crushing circuit, a second grinding circuit, and expanded capacity in the leach, elution, and refinery circuits.

Inquired about the cost outlook for 2025, cost progression at the Kurmuk project, the potential to accelerate grid power installation at Sadiola, opportunities for reserve additions, and the impact of Mali's new fiscal regime on reserves.

Answer

Costs in 2025 are expected to be modestly higher due to Mali's new royalty regime, but this will be offset by higher production. Kurmuk project costs are tracking to budget. Grid power at Sadiola is still planned for Phase 2, but solar power is being considered for the interim. The new Mali royalties are not expected to materially impact reserves due to other operational enhancements and the project's low-cost profile. Reserve additions are expected from Sadiola, Cote d'Ivoire, and Kurmuk.