B2Gold Corp Annual Shareholders Meeting

Jun 16, 2017 AM EDT
BTO.TO - B2Gold Corp
B2Gold Corp Annual Shareholders Meeting
Jun 16, 2017 / 09:00PM GMT 

Corporate Participants
   *  Clive Thomas Johnson
      B2Gold Corp. - CEO, President and Director
   *  Michael Andrew Cinnamond
      B2Gold Corp. - CFO and SVP of Finance
   *  Thomas A. Garagan
      B2Gold Corp. - SVP of Exploration
   *  William Lytle
      B2Gold Corp. - SVP of Operations

 Clive Thomas Johnson,  B2Gold Corp. - CEO, President and Director   [1]
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 Which I guess is a form of torture for, I don't know if it's the shareholders or [over] board of directors. But at the end of the day, we have a highly qualified group of directors, but some of the institutional investors have decided if you're on more than 2 boards, then it's a bad thing and they would hold or vote against the directors. I don't think really understand that. And I talked to an institution a couple of days ago and said, by the end of this year, they're going to say, "Well, if you're a director of 1 company, 2 max, that's it." We will hold our votes or vote against you on all the boards. So my question to them was, do you -- I guess I said to my guests, you guys have a decision to make. Do you want unqualified directors who know nothing about our industry, who have a lot of time in their hands or do you want qualified directors who know the mining industry and know how to manage their time? I think that's an interesting question. So at the end of the day, I was glad that our directors were voted back in, and I will take up the challenge with the institutional shareholders to talk about what I think is a position they're taking that will ultimately, potentially hurt public companies.

 Okay. Got that out of the way. Just think about that for a little bit. So onto the good stuff. So we're going to talk today about our operations, and I think most of you probably know the company a little bit, that we have 2 producing gold mines in Nicaragua. We have a development -- exploration development project in Colombia. And we have the Fekola mine, which is an extraordinary project that we're nearing completion and construction on in West Africa, Mali, Burkina Faso. We have an exploration development stage project in a new quite exciting discovery recently. We have a mine in Namibia, it's a wonderful country, an amazing mine that is getting a lot of attention in Africa for its extraordinary community and education and social programs and really, really good (inaudible) story. And we have a mine in the Philippines. And we have a great (inaudible) team and people in -- both in Manila at the Masbate site. We run this mine as pretty much the gold standard of mining in the Philippines. And there's been a little controversy recently in the Philippines with the Minister of the Environment and Natural Resources who decided that she was very anti-mining and made some declarations about trying to eliminate mining in the Philippines. At the end of the day, cooler heads have prevailed, she's been replaced, and the President of the country has reiterated his success -- his support for responsible Canadian standards of mines in this country.

 So at the end of the day, we do a great job. We don't have time to go into details of all these projects. Just to give you an indication, we're located on the island of Masbate in the Philippines. We have 1,400 employees. 98% of them are Filipinos. And we're -- we account for about 90% of the economy of the island. And crucial (inaudible) from social programs and also to other great things that we do. And we tend to that -- we do that everywhere in the world.

 So let's get into some highlights of 2016. I mentioned it was another great year, another record year of production. We keep doing this. This year, we had record consolidated gold production of 550,000 ounces of gold, and that was -- we reguided to a higher level of production, in another words. We realized probably through the year, we were doing so well that we increased our public guidance and met that guidance. I mentioned Masbate. We've had a wonderful year of record production of over 200,000 ounces of gold. In the Otjikoto mine, in Namibia (inaudible) the year as well. So our record consolidated gold revenue is $683 million. Our consolidated cash operating costs, annual record low of $508 an ounce. Those are the on-site costs. Our all-in sustaining costs, which means everything else on top of the operating costs, included in the operating costs, is $794 per ounce, a very good level of all-in sustaining costs, making us a (inaudible) company (inaudible) get better. Our cash flow from operating activities, including $120 million of prepaid gold financing, to some extent (inaudible), is $0.44 per share (inaudible) operation.

 Additional highlights. Strong net income (inaudible) financing (inaudible) $71 million of the leased facilities (inaudible) so you don't have to go dilute your shareholders (inaudible). And we also (inaudible). Banks, it has allowed us to (inaudible). Coal mine, it's not a good time in the gold mining (inaudible) they raised $250 million for us in the revolving corporate facility (inaudible) $350 million. CIBC, a Canadian bank, joined recently for another $75 million, making that $425 million (inaudible) $500 million revolving corporate facility, giving us the flexibility to continue growth in the company (inaudible). You're going to hear today though, some of the (inaudible) integration results we're having, projects.

 Going forward a little bit, 2017 (inaudible) gold production (inaudible) 545,000 ounces for the year. That will be some production coming from the new Fekola mine starting in October. Our costs are still good, $610 to $650 operating costs. And all-in sustaining costs, a little higher than this year, as we expected, $940 to $970. But next year, (inaudible) from large Fekola mine and is low-cost (inaudible) production of gold dramatic (inaudible). So we'll be looking at somewhere between 900,000 and 950,000 ounces (inaudible) production (inaudible) 2018 and we're projecting our consolidated operating cost, around $500 to $525. And our all-in sustaining costs will be somewhere around $800 an ounce, at nearly 1 million ounces of gold (inaudible) increase in cash flow. All these good things that come with that and the things that, that will enable us to do.

 This is -- some of you might have seen this slide before. (inaudible) in almost every room in the home. My wife wants some of them to come down. So this is a remarkable story. The company that many of us here founded in 2009 (inaudible) we had 1 exploration opportunity in Colombia. Since that time we've run the company, we have very creative -- accretive, strategic acquisitions in numerous countries and built mines -- built good mines, (inaudible) some of them as well and built around a remarkable company. Starting in a market capitalization (inaudible) and then we went public with $100 million initial public offering and we now are trading somewhere around CAD 3.5 billion to market cap. So you see the production growing from the left-hand side when we did our first deal in Nicaragua. It was a very good deal. Every country has its challenges, but we've had great success there. We acquired 1 small operating mine and we built another 1, and we've had very good success for years there. And then we acquired a producing asset in the Philippines at the Masbate Mine. And with the team that had built the mine and was running the mine, we worked very closely with them to dramatically improve the mine and lower its costs. So we've had a great success there as well. I talked about a record year there as well. And then we moved on to Namibia and we acquired another smaller public company and who had done an excellent job of growing off a good project and had good feasibility studies, and we built that mine and we completed that about 2.5 years ago. And then we acquired, 2.5 years ago, our share is a friendly (inaudible) company called (inaudible) it had discovered (inaudible) a very good, large, profitable gold deposit in Mali in West Africa. And we did another (inaudible) there's a pattern of this. So you have a lot of companies, the rare company that's successful in exploration. Many of them don't produce gold. It's a very difficult transition. And (inaudible) deposit (inaudible) building (inaudible) but they will also have enough respect for the shareholders so they will look to find another way to add value. Now we will add value when you have a deposit, a good deposit, (inaudible) finance it (inaudible) investment community isn't buying it because so there were so many disasters in terms of mine construction over the last 10 years where people are doing terrible jobs in building mines. So there's been a lack of credibility in mine construction. Those companies like (inaudible) and (inaudible) and others (inaudible) friendly deals with were sensible enough to realize that if they take our shares from their shares, their project can add value (inaudible) company. We also know that if they keep their shares and we (inaudible) these mines are successful, we see this growth, that they will benefit from the rise in our shares as well. It's a great thing to be able to negotiate from that position of people joining us, joining the group, joining the family. So if you ask to give up your baby for adoption, you should care about who the adoptive parent is, and we're proud to be very good adoptive parents and we actually give credit to the natural parents who found these things and work with them. And we really believe in win-win relationships. So this dramatic story of gold production growth, I believe, well, is going to continue, bottom line, at the end of the day. So later this year, starting October, Bill's going to talk about this, we are 2 months' ahead of a 27-month schedule to build a mine in Mali, West Africa for USD 450 million. This will be the fifth mine that our internal construction team has built, on budget and ahead of schedule, starting actually back in the Bema days with 2 gold mines in the far east of Russia. That was easy.

 We're one of the only companies in the world that builds their own mines, and we're one of the only companies in the world that builds them well. There's no other mining company I know of, or construction company I know of, that would ever have taken on this with a 27-month schedule. We're 3 months ahead of that. We're going to do it 24 months, and Bill is going to tell you about this remarkable team and how we do it.

 This has been a pretty difficult time for the last 5 or 10 years in the gold industry, and the gold price hasn't -- has been up or down a bit, whatever, but at the end of the day, we spent some really poor performance. And I'm just not crapping on anybody else. But failed mines doesn't do any of us any good. We don't cheer for the failure of others. But the bottom line is, there hasn't been a lot of growth in the industry for quite a while because of the fact that investors got tired of poor performance by mining companies and, therefore, -- gold mining companies -- and, therefore, poor performance in their share price, which makes some sense.

 This slide's really interesting. We didn't put this together. It was done independently. At the end of the day, what it does show you is the lack of growth amongst many of our peers or soon-to-be peers as we become, later this year, just about touching into the 1 million ounce a year club. Remarkable. So you might not be able to read the names there, actually it's better on there than on my screen. But the big companies like Goldcorp, like Agnico Eagle, they're a well-run company, Acacia, Kinross and others, a whole list of them have had no growth, actually dropped production between '19 -- I'm sorry, 2015 and 2018. So Endeavour, who's a company that's had some growth, has been on them. And then there's B2Gold, projected 60% increase in our gold production coming up with Fekola.

 So how do we do that? And how is that possible? Well, one of the problems is that everyone else in the industry was being penalized and criticized with some justification for their poor results. So many institutional investors said to the executives of these companies, they said, "Well, basically, we're tired of this. Your stock's performed terribly. You made some bad decisions. Get your act together. Do whatever you need to do to get your operating cost down and produce gold at a profit. Write off the bad investments you made. Write down your bad debts and try and run it like a business. And don't even mention the words exploration, growth or mergers of acquisition. Don't ever try and grow because we don't believe you can do it. So this is what you get."

 And not all these companies were terribly bad actors, but at the end of the day, there was a theme out there. The theme was, we don't trust you guys to grow, get your act together, which wasn't an unreasonable proposition, some of them, I'm not criticizing all of the companies, but there's just been very little growth as part of that. So we're always prepared with our long-term vision of this industry, we've always been prepared to be contrarian, not for the sake of it, but it's really fun when you get it right. Because at the end of day, if you take a long-term view on our vision for years, 30 years of Bema, 10 years of B2Gold, our vision is that our responsibility, on behalf of our directors and shareholders, is to look to grow a gold-producing company that is responsible and is profitable, irrespective of the gold cycle. And it's not simple. One of the simple things to drive -- has always driven us (inaudible) recently, but that means that you do things when others won't sometimes, when you go places where others fear to tread. Chile, 1988, believe me, a lot of people criticized that. The next 11 years were called the Chilean economic miracle. Russia, '98, everyone said, okay, Clive has now completely lost the plot. 1999, gold is $260. We're in Russia, raising a gold mine -- raising money to build a gold mine in Russia $260 gold. Well, that's just crazy. We did it because of the long-term commitment. It saved Bema Gold and it led to one of the world's great discovery in Kupol, northeast Russia, which led to a takeover by Kinross, which we didn't want, but they offered $3.5 billion to our shareholders. It was a good deal for everyone.

 So this is part of the whole strategy and idea. So this is one I want to spend a couple minutes on and I'll let the other guys get up and they told me their presentations are thrilling and exciting. They are, actually. I've heard them. But this is one I do want to spend a couple of minutes on. This is about -- this is really partly about the contrarian story. So this slide shows you in blue the B2Gold share price, it shows you on gold the gold price, it shows you in gray, the gold index. So the gold index is a basket of stocks that they put in an index so you don't have to do any work. They actually research the companies -- you just buy shares in an ETF in the basket. So there's a word search engine that does is so well. I always think it's better to research an investment or have someone intelligent do it for you. The end of the day, this is a fascinating chart, it's kind of all over the place a little bit. So just to take you -- walk you through this. So on the left-hand side of 2015, we were pretty much in line with the gold price and pretty much in line with the gold index, the basket of stocks of gold producers. Then we got hammered in early 2016, down to CAD 0.80. There's a low $800 million market cap for the company. Why? Largely because we were doing something that was contrarian. We were doing the unthinkable. We were building a low-cost gold mine. My God, we were growing, and we came out and said, "That's what we want to do." We want to take the cash from operations from our existing mines, which was substantial over 2.5 years, and take those profits, cash flow and put them into building the Fekola mine in Mali to dramatically increase our gold production.

 We also did this to great facility with our bankers so we can raise the additional money to have the money we needed to do everything we had on our plate and build the Fekola mine for $450 million. But we were doing something that was running against the herd, contrarian. So I remember meeting -- and you see this big dip in the stock in early 2016. I remember meeting with many, many big institutional gold investors at the conferences, big one in Florida. (inaudible) meet with them, it's corporate speed dating. You meet with them every half an hour and tell your story and look for their blessings and then go to the next one. We were there and we were told by many, many investors. Well, if anybody can do it, build another gold mine, probably you guys, you've done it 4x so far, now 5x. Anyway, at the end of day, you said, well, we can't buy your shares. Why not, I asked. Because you're growing. We're only buying gold companies that have free cash flow. That's building up free cash flow in the bank to collect interest on at some pathetic level these days or just to have it there to be safe. Now I can understand with some companies that have performed so badly, I get it, but don't tarnish them with the same brush, for Christ's sake. In life, we have to look at things and be prepared to accept exceptions to the herd. It was my father that always told me from a young age, all people that generalize are wrong. Think about that.

 So not to generalize, but at the end of the day -- so we did -- so we managed to finance yet again the company to fill the financing gap that we had in early 2016, not because our operations weren't running well but because the gold price had dropped $150. So we were short about $120 million. And being the transparent good guys we are, we announced that, told everybody about that. We said we're going to find a way. So we did a very creative financing that didn't involve issuing shares, but everyone in the marketplace thought we're going to do a big equity financing, we're going to dilute all our shareholders by doing a massive equity financing. So a bunch of people panicked and sold the stock and a bunch of short sellers came in. For those of you that don't even know how that works, is you borrow stock from someone who actually owns it, you sell it, going short the stock, and then later on, you're hoping to buy it back at a lower price to give back to the guy you borrowed from. If you get it right, it works great. If you get it wrong, you get it really wrong. So we were really disappointed that we caught the shorts out there. It's a terrible thing.

 Anyway, so you saw our stock roll back to CAD 4.60 or $4.6 billion market cap. What had changed? Well, we're still building the same mine. And now we've seen the ups and downs.

 Most recently, we had another dramatic drop in the price, which is quite remarkable because we should be getting a re-rating. 17 mining (inaudible) have recommendations for buy on this -- on our shares with a target price, I think the average is around $5.40 a share, around $3.50 somewhat today. So that's great. They all think that when the mine comes into production, say, in October, we're going to get a fundamental re-rating at a value for this company. I couldn't disagree at all. I think they're a bit lower than the target rate, as they should. But at the end of the day, we should have started that re-rating process now. But one of these big funds I was talking about, the (inaudible) gold stocks, 2.5 months ago, decided to change the balance of their fund, which is fine, that's their right. But they had a huge amount of B2Gold shares in there. So they somewhat arbitrarily started selling those shares. The shorts -- somebody found out, the shorts got wind of it and we dropped $1 billion in market cap, from $4 billion to $3 billion. And we had just came out with a great quarter again at that time, and we came out and reiterated the fact that we're the fastest-growing gold producer in the world. And the mine -- the big 1 coming on remains 3 months ahead of schedule. So go figure if there's something wrong with that picture.

 But at the end of the day, the good news is, a lot of our shareholders responded by buying more shares, and our stock price has recovered quite nicely and looks like it's heading in the right direction, which, I think, will continue, as we bring on this remarkable mine in West Africa.

 So just maybe just a little bit of strategy, as long as you heard me talk before, hopefully, it's not just same stuff again. But at the end of the day, I think one of the keys to our success is the culture. The culture we take around the world is about fairness, respect and transparency. It is remarkable. We have 3,400 employees in the company today, including probably another 1,500 contractors that work for the company. And these are people from all sorts of countries, all sorts of races, all sorts of religions. And in our projects, our goal is to get as close to 100% employees in a country that we work in, and that's an important -- very important part of what we do. And you'll hear from Bill about some of the programs we do, the social work, et cetera.

 So at the end of the day, the idea is that we want to do things where everybody wins, and that's something we're very proud of and we've done for a very long time. So it's built upon the expression sometime ago, this is not your grandfather's mining company, it's way better than that. Mining, as evidenced by B2Gold, and others will follow, can be a very positive force in the lives of many people, and we're very proud to have done that. So at a time when we seem to see some -- a little more intolerance in the world, not to get too political, but at the end of the day, we're very proud of the fact that we have people from all different religions and all different colors and countries working side-by-side or for -- or with each other, and we're very proud of that. And I think it's a bit of an extension of the Canadian culture.

 So I want to stop there and I'll probably say about 5 words to wrap up at the end. But I'm going to pass it over to Mike, to you next. Thanks.

 Michael Andrew Cinnamond,  B2Gold Corp. - CFO and SVP of Finance   [2]
 Well, thanks a lot, Clive. Clive's actually already talked several times about everything I'm going to talk about, so I'll just attempt to do it in a funny accent.

 So just when you have record low operating costs, all-in sustaining costs, record high production and a decent gold price, what that does is put you in a good financial position. So we've been -- we feel fortunate. We had a strategy that we've put in place, and our -- the execution at our mines and some of the financings that we put in place have allowed us to actually carry that strategy out unimpeded.

 And that strategy, broadly speaking, it was really to utilize the operating cash flow from 4 existing mines that we had and, with some financings, fund the construction of the company's single largest asset, Fekola, without the use of equity. We didn't think it was appropriate to dilute our existing shareholders if we thought we could fund it from what we already had.

 And to do that, you can't do that without good partners. And I think one of the fundamental pieces of us being able to do that as well as the mines themselves and the cash flow that was being thrown off from those, was the ability to put a corporate facility in place. So again, those syndicate banks, led by HSBC, but including ING, SocGen, Scotia and, more recently, CIBC, they came and looked at us as a company and realized that we wanted to grow and that we were very confident in what we do, which is building and operating mines. So at a time, if you look back 2 years ago, 2.5 years ago, that was not a popular topic in the markets. People didn't want that. You saw a lot of companies who maybe had overlevered themselves, struggling to delever themselves. And generally speaking, the market view was, other than free cash flow and operating cash flow, debt is bad.

 We decided to go a different way. And the 5 banks I just mentioned, they believed in us. And collectively, they helped us put this corporate facility in place and really let us carry out our plan, and that was to get Fekola built.

 So initially, as Clive said, it was for $350 million, and when CIBC came in, it went up to $425 million. But more recently, as we look forward, and Fekola is getting derisked, it's going to come online very shortly in the start of the fourth quarter, then we start thinking about the future. One is what we want our longer-term capital structure to look like; and two, we want some flexibility, too, to be able to do whatever might come next.

 So with that in mind, our plan was to uplift the total available amount on the revolver to $500 million, and we were very keen that we would use that same supportive syndicate of banks. And that's for a number of reasons. Firstly, because we felt we've worked very well together with them as a company and a group of banks, but also because they represented a really good balance for us of what we needed around the world. There was expertise in North America in the debt and equity markets. But also, the bank that operated, they weren't afraid to be in Africa. Around the world, in those other places, those long arms, the B2Gold structure, I don't know, if you look back at the map that we have there, the sun never sets on the B2Gold empire and there's a lot of people sitting up at the front here who have the jet lag to prove that. So that -- the appetite for some of those jurisdictions, not for all banks but for the banks that came on the facility, they were willing to do it, and it's worked out well.

 So we just got commitments from the banks to get to that $500 million level, so that's great. And there's still an accordion feature of $100 million on top of that. That means if another bank -- the existing banks want to take another piece or another bank wants to come in, we could go up to $600 million with them without having to repay or renegotiate anything.

 So very pleased with where we are on that facility. At the end of the first quarter, we had $200 million drawn. So basically, if you take the new committed amount, there's $300 million of liquidity and headroom left on those facilities as we go forward.

 Next item that I want to talk about, and Clive, I think, just talked about this one as well several times?

 Clive Thomas Johnson,  B2Gold Corp. - CEO, President and Director   [3]

 Michael Andrew Cinnamond,  B2Gold Corp. - CFO and SVP of Finance   [4]

 Clive Thomas Johnson,  B2Gold Corp. - CEO, President and Director   [5]

 Michael Andrew Cinnamond,  B2Gold Corp. - CFO and SVP of Finance   [6]
 And -- so to make this thrilling and exciting as is the mandate, gold prepayments. So when is a derivative not a derivative? When it's a gold prepayment. Well, actually, this still is derivative, but (inaudible). So what it really is, is when we knew we had a funding shortfall from the operating cash flow and where we were in the facility, last year, we knew we had to raise about $120 million. So a lot of speculation then that we were going to do equity, which, as I said, was not our strategy to do that. So we did actually with our existing, again, syndicated banks, gold prepaids. And putting those in place, we basically sold forward just over 100,000 ounces and at a forward price of approximately $1,250 an ounce, and we got $120 million upfront for that. But it comes with the obligation to deliver into those ounces over the next couple of years.

 Some -- again, hedging and derivative, sometimes a dirty word, sometimes not. But in this case, it was very positively received. And I think the reason it was, was because we had a good use of proceeds. We were going to use those proceeds to build, finish the construction of Fekola, and I think the markets and our shareholders received that very positively.

 So we think it's a good form of financing. We haven't seen any other major prepaids done in Canada. It's relatively new phenomenon in Canada. But I understand that there are some now being put in place. So I think mining companies especially, when you have a good use of proceeds, will definitely start to utilize that.

 Another form of financing we've used, leasing. And again, it goes back to the idea of who's a good partner for your business. In this case, it's Caterpillar. We've had a few leases with Caterpillar over the years, but as we -- the -- before this year, the most significant one was in Otjikoto where they helped us fund the fleet as we started up the Otjikoto mine very successfully.

 As we brought Fekola, we advanced and accelerated Fekola and the build there. Caterpillar's actually supplying a lot of that equipment. And again, they wanted to work more with B2. Around the world, they have a long reach as well. And so we managed to put EUR 71.4 million lease in place, approximately USD 80 million, well, at the minute, it is, anyway, but we'll see where that goes. But that's been very helpful in both doing what we're doing this year and also as we look forward.

 Again, with Caterpillar, we had -- in our budget for 2017, we had fleet expansion at both Masbate and fleet replacement at both Masbate and Otjikoto. So again, the idea was to fund those expansions locally with local amounts of debt, and in this case, again, we did it with Cat new leases. So very good relationship with Cat. So far, (inaudible) almost all our operations. The only place we don't have a Cat lease in place is at the Limon mine.

 So where does that leave us? Well, at the end of Q1, we had $103 million in the bank. Like I said, we've drawn $200 million on the revolver, so we have $300 million of liquidity there. Operation's running very well, strong cash flow coming off them. And very confident that we have the liquidity and resources to get Fekola finished, we're getting close to that now, and to meet any of our obligations as they fall due. We do have a convert that comes due in October next year. We're well funded to repay that then if we want to, or if we choose to refinance that as we go forward, we can look at that, too.

 Final thing I'd like to mention, I did mention that we did a little bit of equity this year, and we did it through something called an at-the-market offering. And we used this equity to fund expanded exploration programs. You'll hear from Tom shortly about what those programs are, the expanse of them, and we used the equity that we raised on this offering to do that.

 We did raise about $46 million by year-end. And an at-the-market financing, what it really is, is rather than the sort of traditional block deal you get here, at-the-market lets the company issue treasury stock when it chooses. As long as you have the right prospectuses and documents in place, you can go to the market when you want to. So it's good for the company. You can look at your share price, you can decide what your needs are and go to the market when you want to.

 And so we found it great for us. We used it when we thought it made sense and our share price was strong. And when it wasn't, we decided to pull it and withdraw it because we didn't need the money, we're well-funded, but it's an opportunistic financing that was there and we took advantage of it when it suited us. We announced in Q1 that we were going to pull that financing when we don't have any major plans to do in the future. But it is another tool that's out there and one that can be available to us in the future.

 Thank you.

 William Lytle,  B2Gold Corp. - SVP of Operations   [7]
 Thanks, Mike. So we've been out traveling and talking about the company quite a bit this last year, and you can imagine what it's like for me. You've got Clive out there, and of course, he paints a wonderful picture and obviously an amazing speaker. And then you've got Mike record, this record, record, record. Having Clive is like being out on a rock tour and having Adele as your opening act. It's a bit of a tough act to follow. And then, of course, then you've got the sexy exploration results coming up after this. So on the engineering side, we're trying to think about what can we do. Normally, we get up and we talk about the projects, and we go through them, and, of course, everything is wonderful. But we were trying, as a group, to think about what can we do to kind of add some excitement to this? So we came up with a thesis.

 For the engineering side, we have a 4-point thesis this year. We believe that as an engineering group or as a company, we say what we do and then we do what we say, that we add value as a group, that our group has a tradition of excellence and that we have continuous improvement in what we do. So those 4 things is what I'm going to try and prove today.

 Basically, the situation is, as you know, we have 5 -- almost 5 operating mines, but today, we're going to look at them in aggregate and just see how we're doing as a company. And, of course, the key asset that we're working on right now, and I'll talk about this probably a little bit more in depth than everything else, is the mine in Mali. For those that don't know mining, mining in Mali has a long history. There's a huge mining district there, and the conflict, which is in the north, really has no impact on what we do. We're in the southwest side of Mali. We always say we want to work where people want us to work. Certainly, the government of Mali has shown both through a political and a fiscal regime that they are open for business, and we're very appreciative of what they do and even so much that they've implemented a new mining act, which we are subject to.

 Just briefly, to refresh everyone's memory, we did a feasibility in 2015. It was approved by the Board of Directors in June 2015. I'm not going to read through all these, but basically, what you're looking at is a very low cost, high ounce producer over a long mine life, very nice economics and certainly a project that we were very excited about. It's interesting in the sense that it's very close and designed to what we did at Otjikoto, but it's just on a bigger scale and higher grade. And for us, it had real advantages. It allowed us our construction team, our world-class construction team, to get right into this. We went exact -- directly from Otjikoto without a break onto Fekola, so much so that some of the guys that are here off the construction crew, this is the first time really they've had any time off in the last 4 years.

 Just kind of where we're at. As the 2 before me said, we are looking at a 3-month ahead of schedule startup, October 1 of this year. We are going to be on budget. We're currently projecting to be on budget. Much like Otjikoto, one of the things that B2 does very well is they design in capacity expansion. So when we did the design, we looked at a 25% design factor, which basically allowed us to scale up 25%. At Otjikoto, we actually waited until we started, commenced production and then we expended at that time, we did it over an 8-month period.

 At Fekola, due to the great success that they've had on the exploration side, we made a decision to go ahead during construction to expand. So we started out building a 4 million tonnes per annum plant, and we're actually going to commission a 5 million tonne per annum plant.

 Based on those plans, we will now produce between 375,000 to 400,000 ounces of gold per year for the first 5 years, and over the first 7 years, 365,000 to 390,000 ounces of production. So as Clive indicated, a 65% increase in ounce production. We're currently in the process of looking at the mine plans. We actually think we can refine those even a little bit more and see if we can get a few more ounces out of it.

 We'll do this a couple of quick -- we threw in a couple construction pornography photos, so you can see what's actually happening on site. So these are very recent photos of what's happening. There's a SAG and ball mill installation, and I'll talk more a little bit later on about where we're at in the schedule. There's the leach thickener and CIC circuit, tailings thickener, and the powerhouse, 60-megawatt powerhouse. And there is where we'll make the money, the gold room.

 Okay. So now to my fourth thesis. We're going to cover each of these areas and we're going to talk about how we think we're doing. It's almost like our own internal scorecard. We'll start with health and safety. If you talk about health and safety, particularly with the guys on site, they'll always tell you that, that's the thing that keeps them up most at night, right? It sounds kind of cliché to say that, but when you're out on site, and particularly when you have to make a call to tell if someone's been hurt on your site, that's what you think about. So if I were to guess, for most of these construction guys that are here, they would tell you that this may be one of the things they're most proud of. We've had an amazing run over the last 12 to 24 months. For example, at -- in the Philippines, at the Masbate mine, they're coming up on excess of 600 days in a row without a lost time accident, more than 10 million hours, almost unheard of in the business. Looking at Fekola construction site, where we have -- we've got more than 500 people that really have never been around mechanized equipment now, that have been never in a construction environment, we're now over a year without a lost time accident. If we talk about Otjikoto, Otjikoto has had a couple of great runs with one small brief period at the end of last year, they're now coming up on over 200 days without a lost time accident.

 So if you look at the statistics overall, that -- the green line is our year-to-date. In the last 12 months, what you can see is a significant downward trend that we're very, very proud of on the operations side.

 And then if you actually look back over the life of B2, and this was actually pointed out by the HSE manager to me the other day. If you look at what we did, so going all the way back to 2012 when we just had the Libertad project, you can see that we started working our way down and then we started implementing some more systems. And what that did is that actually allowed us to start picking up more of the incidences and capturing more of the lost time accidents we had, things like contractor accidents, things which were not being reported. So of course, our numbers came up, we took a look at that, and now we're driving those right back down. So very, very impressive. I would argue that, certainly, we are adding value on that site.

 Gold production. This is also an interesting one to me. This is one of those "We say what we do and then we do what we say" types of things. If you look at them, what you've got is you've got the guidance in gray and then what we've actually done in blue. And what you can see is that you should be very confident that when we come out with a number that we believe that we can do that. Probably the one exception is in -- where the actual production in 2014, and that's really when we were working in the Masbate project and we just got that project and we were adding some additional equipment and we were bringing on a system, and that's now also picked up. So once again, I would argue, we say what we do and we do what we say.

 Cash operating costs, another very interesting graph. So here what you see over -- since 2010 or 2011 is when we got our first comparison, we've got our guidance versus actual cost, you will see that we do not really bull(expletive) people when it comes to what we say we're going to do. Our operating costs, we're very confident with the guys on site. The corporate office takes a very serious review of the operating cost every year, and when we put those budgets together, that's what we believe we're going to do.

 Construction. Clive mentioned we've done 5 projects in a row on time or ahead of time and on budget. Just looking at the 2 that we did in Bema, that was in Russia; then in 2009, 2010, we went to La Libertad; Otjikoto, 2013, 2014; Fekola, straight in 2015 to 2017, 5 projects, on budget, ahead of schedule or on schedule.

 Just looking at the -- now we're going to look at some of the projects individually a little bit. Looking at the Fekola project, we've got -- we are now better than -- this is actually an older slide. This is about 6 weeks old. So we're plus-90% now on construction. The bottom S-Curve there is actually what we announced to the market. So you can see that we've picked up onto that top line 3 months ahead of schedule, and we're actually starting to deviate from that a little bit. So we're feeling pretty good about our schedule.

 Processing throughput. This is one of those that's very interesting. A lot of times -- I didn't know this until I got in the corporate office. A lot of times you get consultants coming in and trying to tell you about how they know your business and how they're going to improve your efficiency. These are efficiency consultants. I had one just come in just the other day. And it sounds really exciting, right? They're talking about how they can lift your management systems and they can detail, from a bigger picture, things you don't see. And so I was trying to get my head around what the guy was saying and where I thought the value was, how he was going to earn his money. So I just said, "Just give me an example." And he said, "Well, one of the things that we're really good at is we identify kind of deficiencies in your throughput. Maybe, we can increase your throughput." And I started to think about it and I said, "In my opinion, our team does it better than just about anybody in the world." They -- we spent a lot of time looking at maximizing throughput. So much so that we don't really bump up against the engineering design, we bump up against is there a social problem, like we're either going too fast, or are we ahead of exploration. We've got to make sure that we've got ounces to feed the mill. That's really where we're at. I would argue that, at all of our mines, and you can see here certainly the throughput has increased at all of your mines, that we're doing a fabulous job of maximizing throughput.

 An interesting one. Everyone who knows me knows that I'm very passionate about these 2 topics, social and environmental. On the social side, we are often considered the gold standard wherever we're working. Certainly from the Board of Directors and down, we believe the social license to operate is one of the key things that we must obtain when we work. Once again, if you were to ask the operators or the general managers, they'll tell you that the technical side they can do, they're very, very good at. It's the soft side of things which really can derail a project.

 So we took a look at it and we grouped all of our projects together, all of our -- all of the different areas where we work, and we started thinking about we're really focused on kind of 4 main areas. We look at health, we look at education, we look at livelihoods, and then a very, very interesting one for a mining company, it appears that at all of our projects, we've started conservation. We, actually, in -- several years ago, we developed a biodiversity policy, which was signed and implemented by Clive Johnson. One of the things which basically commits us to wherever we go to make sure that if there's some biodiversity impacts that we're going to try to either offset or mitigate those. And so when you look at things like, in the Philippines, I'll just talk about one of these off of each of them. And look, they've got a coral reef project there. The bay has been totally destroyed by artisanal mining and overfishing. We've actually gone back in now and we've done a coral reef program where we're trying to regenerate coral reef. In Nicaragua, let's talk about health. They've actually done a very, very elegant potable water project, where they've rehabilitated an old water asset and made it viable for the next 50 years. In Mali, I'd like -- just like the AFECK project, is an education project where basically we've partnered with the government of Canada to -- for every $1 they provide -- we provide, the Canadian government will provide $3, so it's about $6 million to develop training product programs. We understand when we're out there at the mine that not everybody is going to work at the mine, right? But everyone thinks that they should benefit from the project. So we've looked at developing a training program where basically we will train artisans in the various components of construction and/or mining, but we'll also look at different facilities, different projects which may empower women, which may empower people which are outside of the mining industry to work, not only during the mine life, but also to develop a career after the mine closes. And then in Namibia, I'm only going to talk about the conservation center because that's my favorite project. The Otjikoto gamers are, basically when I was there, I was in Namibia for -- from 2011 to 2013. We've decided we wanted to make a project that we thought would be world-class and kind of accepted or emulated all over the world. And so -- and originally, we just thought we might make a conservation center, where we would basically take 18,000 out of the 20,000 hectares we have and turn it into a protected area, where we could reintroduce species and reintroduce how the habitat was 100 years ago in Namibia. But I also had this concept and I was just kind of winging it, I said I'd really like to give something back as far as education. And so I came up with this concept where I wanted to -- it was -- had three-pronged suite. We wanted to have where we could teach kids about science and conservation. We could do kind of a train the trainer thing where we could bring both the regulatory authorities and the educators up to kind of international standards, and then we wanted to create a kind of a research center of excellence, where we could bring in doctoral students or people doing research and kind of look at some of the issues in Namibia. That's when I left and I will tell you that they've now take that thing -- they've now taken that design and they've supercharged it. They now have something called the Little Shop of Physics there, which is now a nationally accredited program or soon will be a nationally accredited program, where basically we've taken physics experiments from throughout the world and brought them into Namibia and show them that it doesn't cost a lot to develop these types of things. We've trained all the teachers. We now have a Namibian Chamber of Environment, which is basically a B2Gold-sponsored thing where all of the NGOs and all of the research specialists throughout the country have agglomerated into 1 group under our umbrella or at least with our assistance and they're now looking at some of the key issues that are happening in Namibia and trying to attack those from a broad perspective. So very, very cool stuff. I definitely say we added value there.

 And these are just some pictures. I'm not going to talk about each of these pictures. So there's a CSR picture, there's a coral reef on the right. Some more education and health.

 So much so, it's probably -- you probably hear people talk about, yes, we're doing great stuff, right. But we're being recognized not only by the government but also by conservation groups. One of my favorite stories that I tell. Dr. Laurie Marker, who is the President and COO of the Cheetah Conservation Fund in Namibia, I met her when I was down in Namibia and she is very good friends with our current Managing Director, Mark Dawe. One time we were sitting over a glass of wine in Namibia and she said, "Listen. First of all, you need to understand that nobody cares about conservation if there's no economic development, right?" And if you think about that, it's kind of in North America, we don't really give a lot of consideration. You must be green. But if your kids can't eat and you're sick and they've got no future, you really don't care whether or not the cheetah or the rhino survives. So she says, "Let's partner in industry and let's try and make a difference." So she's one of our biggest supporters and certainly we support her. So much so that I went on a conservation retreat with her where she was getting an award, and when they found out that I was in the mining industry, of course, there was a bit of a blowback, right? Even though they're all -- they drove their Mercedes Benz and they had their gold jewelry on and everything else. But they were actually very combative and it was very interesting to see her stand up and say, "What are you doing, right? You understand you need a partner because the land is not used to the benefit of the population." They don't care. They just don't care. And so it got to be a very lively discussion.

 Government relations. Clive already mentioned the fact that one of the things that we export is transparency, fairness and respect. If you've heard Clive talk, you certainly -- you've heard him talk about how he's kind of changed the mining attitude in Nicaragua. And that's true going down and not telling them that we will do this and this is the law, but actually working with them. It's the same thing in Mali, where we've had a chance to actually sit down with the government and let them know about what we're doing. Certainly, in Namibia, when they're trying to pass legislation, which may not be in the best interest for their own country. We've actually tried to, at least, have an open dialogue with them.

 Now just -- I've got one more slide, very quickly. These are the kind of the highlights from each of the operations in -- each of the areas in 2016. Masbate, I'm sure, as you heard, say, Masbate had an amazing year last year, well above guidance. They did all this under the threat of the audit, which was Gina Lopez, which Clive talked a little bit about. They performed exceptionally well. We never lost 1 hour of production due to that and they managed, and not only from a production level, but also all the other areas we talked about, they continued on the CSR side, they continued to have an exemplary health and safety record, and they continued basically to manage the entire process very well.

 Otjikoto. Otjikoto, I'm actually going to talk about a failure that we had, which led to what I consider definitely value-added. We had a slope failure in April 2016 that closed our ramp actually and it could have led to very significant loss of production, but they came up with a plan very quickly, got it approved and continued to develop the project as they worked through the process. They actually, last year, met guidance, slightly exceeded guidance and actually opened up a second ramp and developed a mine plan, which is probably better than what we were originally doing. So now we've actually gone the next step. We have an amazing geotechnical survey slope monitoring system and they've incorporated all the lessons that we learned there.

 Nicaragua. Everyone is aware that Nicaragua is our oldest asset, but they continue to perform year in and year out. It's one of these things -- it's the project that just keeps on giving to us, actually. They did a great job last year. Year in and year out, they are considered one of the top companies, if not the top company, in Nicaragua to work for and to be a part of. And that's because they have an amazing social responsibility program there. They've been working on a great resettlement project there, which is kind of best-in-class. They've already started doing some very, very elegant rehabilitation and reclamation enclosure. And they continue to meet guidance, right? So last year, Libertad was a little bit over guidance. Limon was slightly under guidance, but together those 2 assets met guidance. And I don't know if Tom has been talking about it, but they continue to do great exploration work there.

 Fekola. I've talked a little bit about it, for sure. I mean, what can you say bad about it? It's going to be -- it's certainly going to be the cornerstone of our company. The project continues to be ahead of schedule, on budget. For those that have gone down there, it is absolutely a world-class asset, best-in-class, for sure. The management team, and I can't say enough about, they've been with the company for more than 20 years. They bring everything that's good to B2, to every project they go to, and they've done a great job transitioning to the operations manager. The operations manager now is on site, and we've been pre-stripping the pit, and this project is going to go. It's a very exciting project. That's it for me.

 Thomas A. Garagan,  B2Gold Corp. - SVP of Exploration   [8]
 Thanks, Bill. You know exploration has been called a lot of things by engineers over the years, but sexy is not one of them. That's a new low. Hard to follow that.

 So we're -- in exploration, we look at what we do in really very simple terms. Our job is to find ore for the miners to mine, nothing more, nothing less. And it sounds very simple. There's a lot of science involved, but in the end, it's just ore and waste, and that's how we view what we do.

 I can see it from this slide, we're involved in exploration projects around the world. Every project that we work on, we believe has a chance to find ore, or else we wouldn't be working on it. We have what's really can be called an enviable budget compared to a lot of companies, $52 million -- $52.5 million, shows us support that the board and Clive and the management team has towards our ability to find things to build the mine, ore before to George.

 And for statistics. So far this year, we drilled over 1,000 holes, almost 100,000 meters in all the different projects. Now I'm just going to go through a couple of highlights because if you really let me talk about my passion, we'd have to bring in pillows and some coffee and a hockey stick.

 So I'm going to talk first a little bit about West Africa. The 2 main projects in West Africa for us are Fekola and Kiaka. As Bill says, based on early exploration results at Fekola, they decided to put pressure on us and build a bigger mill.

 So I'm going to talk about 2 areas. The first one is something called Kiwi. But to talk about Kiwi, I need to talk a little bit about Fekola itself. If you allow me a little bit technical here. The Fekola deposit itself is the area in red and yellow is the areas that can be mined. But the main area which makes the Fekola deposit is the red blob in the middle. And the red blob is attached to a plane of red again that you see. That plane is a shear zone that holds the main part of the Fekola deposit, and that area runs over 4 grams. The size of that area is only about 40 meters by about 80 meters. And the surface impression of that is only about 40 meters by 100 meters. So it's not a big area. It plunges off gently off to the north towards an area called Kiwi. You can see Kiwi is north of the Fekola pit on this.

 And when you look at a long section, so this is cut through Fekola from end to end at the north end of Fekola. And you can see it from this picture that we have an area that we drilled off called Fekola Deeps. And above that is the area called Kiwi, which we just finished infill drilling and we'll turn that into a resource shortly. But the area between Kiwi and Fekola Deeps has not been drilled at all or with very little drilling. And Fekola Deeps has been only drilled with a few holes. And you can see some of the highlights here. I don't have any glasses here, but I'll just bend over, 4.8 grams over 45 meters. One of the deeper holes here to the far right on Fekola Deeps. So pretty good stuff when we thought early on that this could be mined underground. But now as we're developing our exploration around the Fekola -- the sort of the Kiwi area, as we get closer to the Fekola pit, which is the purple line on the left, we start to see that, as we get deeper, the mineralization is extending from Kiwi down into Fekola or Fekola Deeps. Now if that continues, there's a pretty good chance it does continue and joins up with Fekola Deeps. What it does is allow the paper stripping to move the pit to the right in this picture. Yes, the right of that picture too, which really means there's a really good chance to expand the Fekola pit significantly. So what we think with the exploration right now is we're seeing certainly a future resource in Kiwi, but even more importantly, now, as we see a really good chance to expand the Fekola pit itself, and that would be material. We do believe Fekola Deeps is good enough to be mined underground, but it's always better to expand a pit than put in a new shaft.

 So also in the Fekola area, we just came out yesterday with a resource and what we originally called the saprolite resource but it's Anaconda. We came out with a resource yesterday, the 0.35 cut-off is almost 800,000 ounces of just over 1 gram. In soft material, that's up to about 30 meters thick, flat line and just below the surface of a laterite cover. If you extend to that mineralization, as you look at this picture here where there's drilling, and that's the pink area around the red and blue dots, or pinkish. And that area is underlain by, you see, these black lines. Those black lines represent structures that are mineralized and the weathering of those structures have led to the development of the saprolite resource area. Now that saprolite resource, as you can see, we've only drilled a portion of those structures, remains quite open. So ongoing exploration in this area is exploring along those structures to expand our saprolite resource. But the big picture of this is the saprolite resource is going to be studied or is in the process of being studied by the engineering group to look at the economics of it. Those structures are the same sort of structures that host the Fekola deposit. And as I said, the harder Fekola, the thing that makes the Fekola deposit work is that 40- by 80-meter, 40- by 60-meter pipe that extends to surface all the way down to depth. And we haven't found the end of it. Well, when you take that in an area that's 4.5 kilometers north to south and you put in a surface representation of that pipe of 40 by 100 meters, well, you're talking about a needle in a haystack, especially when it's covered with saprolite and it's covered with laterite.

 So once we get going, we're expanding right now, we've had 4 drills going. Is it 4 drills, Michael?

 Michael Andrew Cinnamond,  B2Gold Corp. - CFO and SVP of Finance   [9]

 Thomas A. Garagan,  B2Gold Corp. - SVP of Exploration   [10]
 Yes, 3. We're expanding to 8 drills totally there. We'll get going on exploring along those structures to try and find another Fekola. We believe there's really, really good potential to find one.

 So that's -- as I said, I'm just going to give just some of the highlights of the exploration. If I was to talk about all of them, as I said, there'll be pillows and beer.

 So on to Burkina Faso. We've been exploring an area near the Kiaka deposit called Toega, which is a baobab tree in the local language in Burkina. And this is a section, or as Clive says, a loaf of bread, cut off a loaf or slice off a loaf of bread, through the Toega deposit. And you can see, right off the bat, there's a scale on the left that's 100-meter long bar. This is a very thick, continuous large body. And that's what you look for when you're looking for minable ore bodies. It's something that looks a lot like this. And you can see the drill results there. We've got 71 meters at 2 grams and 72 meters at 2.3 grams. These are not marked by spots of high-grade gold. This is continuous mineralization, with not too much in the way of spiking this. So it's a very good body. We're actively drilling on it right now. The plan is sometime in the third quarter to come out with a resource. We're still 17 holes behind an asset. So we'll come out with a resource on this, so we're looking at this and in other things in the area that have similar geology.

 And last, this had just come up quite recently. Nicaragua. And I'm sure you'd be a little bit surprised. We're also surprised. I'm going to talk about Nicaragua as one of our highlights in exploration, but this is on the Limon project. It's a vein structure that's -- and I'm not going to show the area because surface miners are always a problem. It's 1.4 kilometers long, it's up to 200 meters deep or down dip, and it's probably averaging somewhere in the 4- to 10-meter wide range. You can see some of the grades here. These are true thicknesses. These are some of the highlights, but it does represent what we're seeing. You've got 5 grams over 11 meters, 9 grams over 16, off to the south there. The south end, 30 grams over 21 meters. These are all true thicknesses, cut grades. So it does represent a very significant discovery in the Limon area. Now it's early stages on it. The exploration is still just drilling out the edges. Once the edges are drilled off, or what we think is the edges, then we're going to do infill drilling to it as quickly as possible, bring it to a point where they're going to be studied by the engineers, or as I said, to a point where it could become ore.

 So that's all I have to say for some of the exploration highlights. There's a lot going on. And several of the exploration geologists around here, feel free to ask some questions later on. They'll probably say, "Well, I can't tell you because it's not public," or something like that, but feel free to ask them anyway. So thank you very much.

 Clive Thomas Johnson,  B2Gold Corp. - CEO, President and Director   [11]
 Well, I agree with Bill. Those last results were pretty damn sexy, I would say. Just a quick wrap-up, I know we've had your attention for a while here.

 So just looking to the future a little bit. It's been a hell of a pace, 10 years. Amazing. But I'm always just blown away by this group's ability to continue to grow and to do it extraordinarily well. It really is something that I marvel at, I'm very proud to be a part of.

 So going forward, we're going to continue what we're doing. At the end of day, you've seen and heard our exploration -- some of our exploration focus, a large budget is well-deserved by amazing, amazing exploration team. I can (inaudible) this group made a number of world-class discoveries in the Chilean -- or in Russia, et cetera, and they continue to do extraordinarily well. And we will continue with that commitment to exploration. Otherwise you find and they always will be.

 In terms of -- obviously, they continue to look at optimizing our production of existing mines, and it's remarkable how we continue to improve gold recoveries, we continue to improve efficiencies and mining at lower cost, and all the time remaining this extraordinary company with our safety record and the way we take care of communities and help the local populations. Obviously, a huge focus right now is the Fekola mine construction which is getting to an exciting stage. We're all going to be very excited to get down there in October and hold that first gold bar, which is clearly a remarkable experience for everyone who's ever held a gold bar and something else.

 So we're going to continue, as Tom said, the Fekola exploration because we think, and Tom tells me more importantly, that there may be 1 or 2 potential additional Fekolas in this belt, this remarkable belt, a geologic opportunity, and exploration will continue in most sites as well.

 Mike talked about cash, minting a very strong cash position at all times. We've got great support from our bankers. And we know that we can raise, if we want to, prices that are attractive to our shareholders. We can always raise money from an equity perspective. We actually haven't done that, with the exception of a very small $46 million on the ATM, which is quite remarkable to be able to grow a company like this without putting out additional shares.

 And at the end of the day, I get asked quite a lot about is there a secret sauce and what do you guys -- how do you guys do this? Remember after Kinross took over Bema in that $3.5 billion transaction, and gold was around $600 or $700, it was not like the gold price have roared up to some very high level. So you did that once, you guys started to zero-in. You built the company for $3.5 billion successfully and you did it well. And some of my friends at the golf club or other places who've been in our industry, particularly, but -- and they were -- there was no disrespect. They said, "Do you really think you can do it again?" And I said, "Well, I don't know. A lot of the same guys and we've got some additional guys we've added, and why not?" So we set out to do it again. And a lot of the board here and the group here have been together for hell of a long time and the founders of B2Gold. So 2 companies from 0 to $3.5 billion, that's value creation for shareholders. And we're very proud of that. And it's very important, talking about earlier what I said about the shareholders, that these large institutional shareholders on the shelf realize that the opportunity to do this requires the ability to continue to build to keep this remarkable team together. So I understand people are pissed off and I get it. I don't blame them. For some of the conversation packages that we've seen in the gold mining space for executives for several years, outrageous, especially given the poor performance of the companies and the share prices. But judge us for what we do and what we're doing and what we're going to do, not what other people do. I think that's an important lesson in life, not just in the gold mining industry.

 So what are our opportunities going forward? Find more ounces of gold, I'm sure we're going to do that, and look at more acquisitions. And the rules will be the same. The acquisition rules will be the same, which is incredible due diligence done by our own technical team, not independent consultants who have no skin in the game. Accountability. Our guys are going to look at projects. We look at hundreds and hundreds of projects and do very few deals, because there are not that many great projects out there. So that will continue. When we get the re-rating here, I spoke to all of them in the production, and it's reflected in our share price and our market cap, we'll be able look at utilizing our shares in an accretive way to look at acquiring additional mines to build or additional, perhaps, mines that are in production that we can, perhaps, make into better mines.

 So in terms of secret sauce, I guess, one of the things I find when I look at this company and I find intriguing and is always one of the things that's kept me motivated in going is the fact that we're doing it very differently than many other people have done it in the past.

 So I mentioned it a bit earlier that exploration companies, there a very few that are successful because it's a really tough business. A very few successful, most of them have tried to become producers. For most of them, I don't recommend that they try that transition. It's really tough, it's a very different business to build mines and produce gold. Most of them get taken over and make money for the shareholders, which is a great role to play. But most producers aren't very good at finding gold, because they get a little bit boring, and you can't blame them. To take a mountain of rock and pulverize it to dust and get gold out at a profit, I mean, Bill makes it sound really sexy, but at the end of the day, that is hard work and there's no margin for error. The round peg has to go in the round hole. That's engineering. You can't -- you guys can't wing it at the end of the day. Well, some do, but at the end of the day. So that requires a discipline that often doesn't include being very entrepreneurial. So in the '90s, I felt, why the hell can't we do both at Bema? Why can't we turn Bema a very successful exploration company? We do build our mines, and a producer of gold, without losing the entrepreneurial flair, without losing the courage to go and explore or go where others have feared to tread. And that's what we did. There is George Johnson, who's now in the Board of Directors of B2 and came into join Bema, and George was really responsible for a lot of his team, from the technical and engineering side of things that transformed the company, and he's left an incredible legacy of people that are carrying that along. But I wanted to do that, but at the same time, though, not have Tom look at me and go, "I'm out. I'm not reporting to mining engineer. I'm a good explorationist. Don't do that to me."

 Unidentified Company Representative,    [12]

 Clive Thomas Johnson,  B2Gold Corp. - CEO, President and Director   [13]

 Unidentified Company Representative,    [14]

 Clive Thomas Johnson,  B2Gold Corp. - CEO, President and Director   [15]
 Yes. Well, I get it, especially if you find them sexy. You'll scare them off. And at the end of the day, why couldn't we do that? So we kind of changed -- I kind of changed our structure with a lot of gold companies and (inaudible), which, everyone in the technical side, including exploration, reports up to mining engineer. Well, I got a couple -- I don't -- it doesn't make sense. It's not a good business model. So we try and recognize exploration for what it is. It's research and development, okay, it's research and development. But in many businesses, not just the gold mining business, typically, the person that's out there, the inventor -- you all have heard -- discovers or invention of widget, he often doesn't produce the widget because that's a very mindset. So we wanted to have people that could actually build some widget. We didn't just become a decent builder of mines. We became one of the best builders of gold mines in the world. We're not just okay operator of gold mines, we're one of the best operators of gold mines around the world, and we're still entrepreneurial. And as long as we are, we can grow in ways that others can't. We don't have to just go and acquire all our ounces, we're going to find some. We will do deals in places where other people don't want to go, especially, lately, no one was doing any deals. So that's part of the secret sauce. And I guess, management is part of that. Final point. We got an amazing week this week. We're tired as hell. But it's so cool because we brought in people from all over the world. We brought in our country managers, financial people, technical people, construction people from all over the world. Now we had some incredible, extensive, very interesting meetings all week, starting on Sunday, on health and safety and every aspect of our business. People from around the world, comparing notes and what they've done, challenges they've faced, problems they've solved. That's an amazing experience, and I marveled at the capabilities, of what we can do, and what we can do going forward and growing that.

 So the key to that, I think, as people said to me a long time ago, they don't ask as much now. They used to say, "How can you run all these mines around the world? And how do you guys do that? And you are in 5 continents, for Christ's sake? How you do that? How do you keep it together? How do you keep the balls in the air?" A lot of this is strategy and the management of people and the philosophy behind it. It's some remarkable team that we have, the technical and financial people. They've done really most everything that people in the field are doing and that we ask them to do. They get it, and they're humble, and they want to share their knowledge in a positive way. So we empower the country managers, the people you see here, the mine managers that are here. I want you to go on and introduce yourselves to these people. We empower them. This is not some big company that's got a bunch of executives who are arrogant and probably never got any dirt under their fingernails and they're going to tell them what to do. It's called seagull management. We don't do seagull management. Seagull management is when you leave Vancouver and you fly down to all the sites and you (expletive) all over everybody and everything and then you fly back to Vancouver. Well, you go down to the beach. There's a lot of seagulls in Vancouver, we don't need another one. We're not seagull management. We go down and we work with these people to empower these people. So if we're doing down to Masbate, and Dennis and John Rajala are going to go in, have an idea, and think, "Gee, we had a couple more leach tanks, we can increase the recovery gold by 2%." So they kind of think about that. And then they go down and they'd be with Ray Mead, the manager of the Masbate Mine, and they'll talk to Ray and they'll say, "Ray, what are you thinking?" They'll come over with a plan and they work with him. They don't just hang around for a day and fly back. They work with them and make it happen. And he's empowered, his whole team is empowered, and they've improved the project. And we do this time and time again. So a lot of it is the approach, you have to (inaudible). And I mentioned earlier on fairness, respect and transparency. That's something that is in our DNA, and I would say it's in our DNA at every level. And I just want to have -- thank a few people along the way here. Obviously, this remarkable executive group, our -- they're supportive and outstanding Board of Directors. And how can you not be? But not, anyway. But no, they're very supportive and they sometimes support us at things that others might have gone, "What the hell are you guys doing now?" For them and our (inaudible) and our Chairman, Bob Cross. But also, of course, all of our shareholders around the world. We respect the fact that we're a public company. We think it should be mutual respect, but we respect the fact that we're a public company, and we always will try to do what's best in the best interest of all the shareholders of the company.

 So with that, we're going to step outside and I'm sure you're all parched, I know I am, and come and join us for a glass of whatever does it for you, and talk to guys around to ask around questions of. Or if there's any -- or you can ask right now. I'll maybe take a couple. But I'm sure it was a full presentation. It's extensive. So can I ask you now? You'll have to ask now. You can ask later, if you want. But anything's coming to mind?

 Great. A full presentation. Perfect. Okay, thank you very much.

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