Francesco Costanzo

Francesco Costanzo followed up on the La Colorada Skarn project, asking about the progress of discussions with potential partners, the potential economic terms given the new phased approach, and the timing for a deal. He also sought insights into the recent progress of the Escobal consultation process, questioning if activities are accelerating compared to the previous year, especially considering the high silver prices.

Answer

Michael Steinmann, President and CEO, stated that partner discussions for La Colorada Skarn have progressed but are still in full swing due to the new phased approach, so details cannot be shared yet. Regarding Escobal, Mr. Steinmann noted a global trend of increased emphasis on mining due to high metal prices. Sean McAleer, SVP of Strategic Initiatives and Environment, added that meetings with the Ministry of Energy and Mines continued through Q4 2025 and early 2026, with the Ministry's year-end report being an encouraging sign of ongoing engagement and commitment to the process.

Francesco Costanzo followed up on the La Colorada Skarn project, asking about the progress of discussions with potential partners, any updates on economic terms given the new phased approach, and the timing for a deal. He also inquired about the consultation process for Escobal, seeking insights on its recent progression and whether it is accelerating compared to the previous year.

Answer

Michael Steinmann (President and CEO, Pan American Silver Corp) confirmed that discussions with potential partners for La Colorada Skarn have progressed, but declined to share specific details on economic terms or timing due to ongoing negotiations related to the new phased approach. Regarding Escobal, Mr. Steinmann noted a global emphasis on mining due to high metal prices and critical mineral declarations. Sean McAleer (SVP of Strategic Initiatives and Environment, Pan American Silver Corp) added that meetings with the Ministry of Energy and Mines continued through Q4 and early 2026, with an encouraging report published by the Ministry at year-end, indicating ongoing government commitment to the consultation process.

Francisco Costanzo asked about the potential for future dividend growth and the company's approach to fixed versus variable dividends, as well as the strategy for deploying funds from the share buyback program. He also inquired about the situation regarding a Brazilian regulator's claim following the sale of the Brazilian assets.

Answer

CFO Peter Hardie stated that the company is excited about the inaugural fixed dividend, which is expected to remain fixed for the next 12-24 months to support the development pipeline, with potential for increases over time. He added that the share buyback program would be somewhat conservative due to the development pipeline. CEO Darren Hall further explained that the company is confident the sale of Brazilian operations fully complied with all laws and contractual obligations, noting the transaction involved the sale of non-Brazilian subsidiaries.

Francisco Costanzo asked for clarity on the sale of Brazilian assets, particularly regarding a Brazilian regulator's claim concerning the Santa Luz operation, and if there were any concerns.

Answer

CEO Darren Hall affirmed confidence that the sale of Brazilian operations fully complied with all laws and contractual obligations. He explained the transaction involved the sale of shares in non-Brazilian subsidiaries, indirectly owning the Brazilian assets, thus distancing the company from the claim by CBPM in Bahia. Proceeds were used for debt reduction, strengthening the balance sheet.

Francesco Costanzo, on behalf of Ovais Habib, inquired about the critical path items for the Goose project, the breakdown of capital spending ahead of first gold, and the expected site preparation timeline for Fekola Regional post-permitting.

Answer

Executive William Lytle identified powerhouse commissioning as a key near-term item for the Goose project, followed by mill circuit commissioning, and confirmed a three-month pre-stripping period is still required for Fekola Regional. Executive Michael Cinnamond clarified that approximately $60 million in capital spending was accelerated into late 2024 and Q1 2025, keeping the total project budget on track.

On behalf of Ovais Habib, Francesco Costanzo of Scotiabank asked about the integrity of the dividend and the company's liquidity position, given the challenges in Mali and revised guidance. He also inquired about the funding plan and borrowing cadence for upcoming projects.

Answer

CFO Michael Cinnamond affirmed B2Gold's strong liquidity, citing nearly $0.5 billion in cash and an undrawn $700 million credit facility. He stated that while the company's goal is to maintain the dividend, capital return policies are regularly reviewed alongside major capital outlays. Cinnamond expressed confidence in the company's financial flexibility to fund its capital projects and growth initiatives.