Q3 2017 B2Gold Corp Earnings Call

Nov 08, 2017 AM EST
BTO.TO - B2Gold Corp
Q3 2017 B2Gold Corp Earnings Call
Nov 08, 2017 / 06:00PM GMT 

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Corporate Participants
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   *  Clive Thomas Johnson
      B2Gold Corp. - President, CEO & Director
   *  Dale Alton Craig
      B2Gold Corp. - VP of Operations
   *  Dennis Robert Stansbury
      B2Gold Corp. - SVP of Engineering & Project Evaluations
   *  John Rajala
      B2Gold Corp. - VP of Metallurgy
   *  Michael Andrew Cinnamond
      B2Gold Corp. - Senior VP of Finance & CFO
   *  William Lytle
      B2Gold Corp. - SVP of Operations

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Conference Call Participants
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   *  Brad Bloomer
   *  Jeff Killeen
      CIBC Capital Markets, Research Division - Director of Institutional Equity Research
   *  Justin Stevens
   *  Lawson Winder
      BofA Merrill Lynch, Research Division - Associate
   *  Michael J. Gray
      Macquarie Research - Gold Analyst
   *  Rahul Paul
      Canaccord Genuity Limited, Research Division - Director

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Presentation
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Operator   [1]
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 Good afternoon, ladies and gentlemen. Welcome to B2Gold Corp.'s Third Quarter 2017 Financial Results Conference Call. (Operator Instructions) I would like to remind everyone that this call is being recorded today, Wednesday, November 8, 2017.

 I would now like to turn the call over to Clive Johnson, President and Chief Executive Officer. You may proceed, Mr. Johnson.

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 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [2]
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 Thank you, operator, and welcome to this conference call to discuss the results from the third quarter of 2017 and also talk about (inaudible) affairs of the company and looking forward.

 We have our almost our complete executive team here around the table in Vancouver, and Neil Reeder, our Vice President (inaudible) Relations is on the phone from Ottawa.

 So I'm just going to give a little bit of an overview, and then hand it over to Mike Cinnamond, who's going to go through the financial results. And we'll going to give you a full update (inaudible) the date, the minute on Fekola, and what's going on there, there's a construction, and we will open it up to questions.

 So in terms of an overview, another strong quarter for us. Very good performance, particularly, again, at the Otjikoto Mine. And the Masbate Mine in the Philippines, they've just been killing it lately and they continue to outperform dramatically, which is good because unfortunately we've struggled a little bit in Nicaragua (inaudible) I think discussing those some of the issues we face there for a while now. And we are -- we'll be pleased to be able to talk today about some of the improvements that are happenings and some of the reasons why we believe looking forward that there's positive signs and actually some potential in Nicaragua as we see it going forward in both Limon and also potentially or (inaudible) La Libertad potentially as well.

 So in terms of where we are today at this moment and Fekola obviously is becoming a very important asset to the company. In fact, it's quite transformative when you see the impact and we talk about this (inaudible). But I saw some of it, which was written up in some of the analyst writings. But once again, I -- forest through the trees, I just want to remind people that it is a third quarter review, but it is also a financial review, but it's also what's going on in the company.

 So I think that the transformative nature of Fekola bears apparently reminding people that this great project will increase our production annual production by over 70%, taking us up adding, well adding 400,000 ounces a year. First full year being 2018. And we're projecting very little operating costs of $350 per ounces all in, sustaining costs of around $600 an ounce.

 What that does for the company, on a consolidated basis, it increases our gold production to somewhere between 925,000 to 975,000 ounces a year, next year in 2018. And that gives us some very impressive consolidated operating costs.

 Mike (inaudible) I just can't remember off the top of my head, what's the consolidated for 2018?

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 Michael Andrew Cinnamond,  B2Gold Corp. - Senior VP of Finance & CFO   [3]
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 We're saying for cash cost $525, all-in $800.

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 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [4]
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 $525 consolidated operating cash costs and $800 all-in sustaining costs as a company. So, obviously, that's very transformative.

 In fact, an impact that has really on the bottom line, when you look at it, is cash from operations, cash flow, earnings, et cetera, dramatic impact. In fact, cash flow from operations this year was something less than $200 million, we're projecting that starting next year for the next 3 years, on average, it will be at (inaudible) it will be at around $500 million, or $0.5 billion as we prefer to call it, of cash from operations annually.

 So a very dramatic increase. And that's one I think if you -- if you look at the valuations, as sometimes we do, we may know the analysts do a lot. There's a lot of people believing 17 analysts I think that we are due for a re-rating with the success of Fekola and that average target price I think is around $520 for the next year from analysts' prediction. So I'm sure you'll (inaudible) at the end of the day.

 So just another (inaudible) for me to report (inaudible), I think that it is worth remembering perhaps when you look back now, when you start talking about Fekola as a producing mine now. We obviously -- great results in entering ramp up, which we're going to talk about, Mike and Bill are going to talk about that.

 But if you go back a little further, and look back at the fact that we acquired this in 2000 and -- I think (inaudible) take over in 2016, and you look at where we are today, at what we've done, and what we've been able to do, starting off with a very good feasibility study that they've done, and they've done an excellent job exploration. And they have a permit. But when you look at what we did and the time we were able to do it, that's kind of one of the calling cards of the great successes of our group, I believe, is the ability to do these things.

 But also the ability to do them when they're out of favor. So it wasn't that long ago, when (inaudible) was very much out of favor back in the time and the good news there was we were -- didn't have a lot of competition for acquiring Papillon at $0.5 billion, and I think that looked like a very good acquisition, it was just going to continue to look better as time goes on.

 So we were contrarian again in our careers and the thought (inaudible) was to, despite the negativity towards attempted growth and everyone looking for only Gold Coast free cash flow because there was feelings about us, we thought it was important to continue to do what we've done around here for over 30 years, (inaudible) which is continue to grow the company doing sensible things irrespective of the gold price, and sometimes outside of favor and it was. And now look at where we sit as the customers (inaudible) in the world on the verge of becoming just below 1 million ounce gold producer. We had 0 production 10 years ago.

 So it's important sometimes to reflect on how you got here. And going forward, I think we're going to be, obviously, looking to continue to grow.

 But I will say though that we -- the key things that looking forward for us, in terms of what's the next thing? What's the next mine we're going to build? I know there's some speculation out there on what are we going to do. Well I can tell you right now, we're not going to rush off and do something new, for a couple of reasons. One, we're totally focused on the ramp-up at Fekola, and getting value for that, reflected in the market values of the company. And how could you find any accretive when we're still not reflecting the value of what Fekola is coming and is and will be shortly or is.

 And secondly, we are of the highest standards and always have about acquisitions. When you look back at the kind of deals we've done, the accretive nature of every deal we've done over the last 10 years, we won't be (inaudible) gold price (inaudible) success to justify the acquisition price. Sounds like a simple business strategy, but in fact, if you look at the history of our industry, it's really sad how many people were not using those strategies when they were doing acquisitions.

 So we're not -- we -- our discipline remains as it always has been. Now when everyone was (inaudible) we (inaudible) upside of the great exploration work (inaudible) success without paying before the exploration upside, we never do. That should be (inaudible)

 So going forward, the strategy remains the same. We're all always looking for potential acquisitions at various levels, from exploration up to producing assets. But, of course, the rules of engagement are the same, in terms of our discipline, internal due diligence. And we, in fact, will continue. In the foreseeable future, our objectives, the strategy is to get value from Fekola, provided it is, and the transformative impact it has on this company, I'll get value for the shareholders for that.

 And also let's find out what's in the pipeline. So we've always continued to explore. Lots of companies don't explore when they're building a mine, we do. we're a little different in lots of different ways, that's one of them, and we believed from day 1, that Fekola had the potential to get larger, potential to the north of the main deposit and also we had this (inaudible) discovery (inaudible) what's below that is intriguing Fekola style targets.

 So work just continues aggressively on those, and we're going to come up with a new release tomorrow, then we'll update all of you on exploration. What we see in Fekola and maybe give you some indications as to why we've always felt this thing has potential to have more (inaudible) -- more amounts of gold reserves. At the end of the day, so we'll come out with that tomorrow, so keep an eye out for that, that'll give you a good detail news release (inaudible) cross-section showing you what we're talking about.

 So that's where we are. I will pass it over to Mike now. And to give us an overview and some of the details from this strong financial performance in the third quarter. And Bill is going to run us through Fekola, the ramp-up, how it's going? And what we're looking forward in terms of next year. And then we'll open it up for questions. So my preamble was a bit longer this time because (inaudible) decided to hang up. I wanted you to hear that preamble. Over to you Mike, the birthday boy.

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 Michael Andrew Cinnamond,  B2Gold Corp. - Senior VP of Finance & CFO   [5]
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 Thanks very much.

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 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [6]
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 We don't need to buy him anything because we had this great quarter.

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 Michael Andrew Cinnamond,  B2Gold Corp. - Senior VP of Finance & CFO   [7]
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 Thanks very much. So as Clive said, it's another good strong quarter and when you take the quarter and then performance year-to-date, it puts us in good position, I think, to hit the positive end of our guidance ranges for the year, which I'll talk to in a little bit.

 Starting on the revenue side. So we generated $154 million in revenues, which was about 20% less than prior year. That's a function of lower production in the period, the timing of some gold shipments at period end and 5% decrease in the gold price during the period. Year-to-date, we generated $465 million in revenue.



 On the production side, good strong quarter, certainly led by Otjikoto and Masbate. Consolidated production was 135,000 ounces, which was 2% better than budget and 15% better than we forecast. And the beat on the re-forecast number is just simply put Otjikoto and Masbate just continued to outperform and exceed expectations.

 In terms of individual mine, results Otjikoto produced 55,000 ounces, that was 7,000 ounces better than we had budgeted. And it's a quarterly record for Otjikoto. And that performance is led by better average grade going through the mill as we mine more tonnes from Wolfshag than we'd originally anticipated. And also softer ore, we get more throughput through the mill.

 Masbate had another very good quarter, 47,000 ounces there, 8,000 better than budget. And as Masbate continues to benefit from a higher oxide content coming out of Colorado, that's improved recoveries, throughput and overall grade.

 And then those are the very strong performances in the quarter. The Nicaraguan operations continued to underperform. Although they are improving, Libertad was 16,000 ounces in the period, which was close to the reguide amount. It continued to struggle with just getting enough throughput and grade through the mill as we schedule a new permitting for the new areas we're going to mine.

 Then San Juan permit was received in September, so we're now got operation running there, and we think San Diego permit is fairly imminent, get that in place and we'll have that in the schedule as we go through the remainder of the year. And (inaudible) can talk to that a little more.

 And then Limon, we were 11,000 ounces for the period, 4,000 less than budget. And Limon had some dewatering issues at Santa Pancha earlier in the year as well as some fleet availability issues. Those are being rectified by the time we do it at the start of the third quarter. So we're seeing Limon performance improve now, and we expect to see that improvement run through fourth quarter. And as we move into next year, we expect to see Limon production levels return somewhere near their historical 50,000 to 60,000 ounce range that we've seen.

 We should mention as well that 135,000 ounces of production in the quarter also included 6,000 ounces from Fekola. And we hadn't budgeted any from Fekola. Fekola had an earlier-than-anticipated startup. It's over 3 months ahead of schedule starting up and those 6,000 ounces were ounces we didn't expect to see in September.

 Year-to-date, consolidated production was 390,000 ounces, and that's driven by the same factors that I just talked about, the outperformance of Otjikoto and Masbate.

 And then those strong production numbers, they translate into good cash cost performance for the period and year-to-date. For the period consolidated cash costs were $563 an ounce, which was $28 less -- lower than budget. (inaudible) performance there. Otjikoto -- it's still our lowest cost producer although it's about to see the new big mine come online, with even lower cost, but Otjikoto was $447 an ounce, $10 an ounce less than budget, and that was driven by higher production and as well as lower reagent costs and marginally lower fuel costs at that operation.

 Masbate also continues to perform very well, $541 an ounce, cash cost in the quarter, that was over $200 less than original budget. And that's a function again of higher production, lower processing costs, lower fuel costs and fleet efficiencies as we review how we're operating at the site. And Libertad, Limon, they both -- Libertad was $788 an ounce, Limon $901 an ounce.

 Part of the budget, it's driven by the production shortfall I already discussed earlier.

 And then year-to-date, consolidated cash cost, $585 an ounce, which is $62 less than budget, driven by the same factors for the quarter.

 (inaudible) made a comment to Masbate on the operating site. I think there's been some noise certainly out of the Philippines in the last couple of years. There's a former secretary for the environment had put in place 2 -- a couple of things. One was a series of audits for the operating company in the Philippines. So we previously reported those audits were done. We passed the audit and nothing significant came from them, and we've operated without interruption through that whole period. We haven't any more about the audits in the near term, so as far as we know, they're done and put to bed. We remain fully in compliance with field team regulations. Now the other thing that's been in the press lately and I think Dale can touch on a meeting we had recently, a little later, is that the former secretary for environment also put in place an administrative order, which would put a ban on new open pit mining operations. We've since heard, a, we don't think that -- or it doesn't impact us because it's a new open-cut operation, it's not our existing one. And b, we've heard that they're playing to -- they're going to make a recommendation now to rescind that order. So those are 2 positive developments in the Philippines.

 And basically, from our point of view, we continue to operate all along without interruption. Masbate's had record years for the last 2 years, and we really move forward as we always thought we would. I just wanted to comment on that.

 Back to the cost performance for the period. On the all-in sustaining cost side, we had $921 an ounce, $66 -- for the quarter it was $66 more than budget. But that's just a function of timing. We had the benefit of lower cash cost for the quarter. But that was offset by the timing of some CapEx, mostly at Otjikoto where CapEx that we'd originally planned in Q2, we -- actually came through in Q3.

 When you look at the year-to-date, all-in sustaining costs performance we're well underbudget, $927 an ounce for the 9-month period, which is $122 an ounce lower than budget. And that's a function of the outperformance on the cash cost side, and higher production. And there will be some CapEx probably in the reach of about $10 million that will be deferred and not incurred in the current year. So we fully expect to meet or beat our budget there.

 So when you take all of that into account, when you look at where we are at the end of Q3, and where we expect to be by the end of the year. We think we'll be at the high-end of our production guidance range of between 530,000 and 570,000 ounces. We think we'll be at the low end of our cash cost range, right at the low end of our cash cost range of $610 to $650. And at the low end of our all-in sustaining costs range of $940 to $970.

 And again, the star performers in that outlook are Otjikoto, which we think will be at or above the high end of its production range of 170,00 to 180,00 ounces, and Masbate which we think will be at or above the high end of its guidance range of 180,000 to 185,000 ounces.

 So we think we're in positive shape, by -- cumulatively by the end of Q3.

 Let me take a couple minutes just to talk about Fekola and the startup. I think Bill can give you some more details in a little bit. But in the meantime, since it's my birthday, I'll try and steal his thunder. (inaudible)

 So Fekola startup. It started up 24th of September, 6 days -- well, 3 months from 6 days basically, earlier than we thought. It produced 6,000 ounces in September against the budget of 0. For October, it produced 34,000 ounces against a budget of just over 15,000. And we now expect commercial production earlier than anticipated by the end of November.

 So all in all, it's been a good ramp-up and we think very positive now. Our guidance for the year for Fekola was 50,000 to 55,000. We're already at cumulative 40,000 ounces by the end of October. So there's certainly good prospects that we'll meet or exceed the high end of that 55,000 ounce range.

 And the cash cost, just to remind everyone for Fekola. For this year, we budgeted for that quarter $585 to $620 cash costs and all-ins around $700. Those are sort of our estimate of the startup cost.

 Next year, when we look forward, Fekola's cash cost we think will be $354 an ounce. And all-in sustaining of $609 an ounce. So right at the low end and they help take our overall consolidated cash cost and all-in sustaining costs down to the levels that Clive discussed earlier.

 A couple of other items to just touch on in the income statement. We had a gain in the period of $8 million on the convertible notes. They're still trading at 103% of their face value. We will expect that to come down, and we'll see that come down to par by the time when you're reaching maturity date of those notes, which is October 1, 2018.

 Financing costs and (inaudible) look relatively consistent or even lower than the prior year, but in actual fact, they were a little higher. The interest-rate because we had drawn more in our debt facilities. But we also capitalized more because of that project as we were constructing Fekola.

 We have realized some realized gains on end of period of $2.5 million on derivatives. And that was mostly on fuel. But as we've seen, we were -- we still got a hedging program for fuel, where we're hedging approximately 50% of our 1 year-out fuel needs and then 25% of the second year-out. Because fuel prices have come up, we've seen some gains there.

 All in all, everything translated to net income for the period of just over $12 million, or $0.01 per share -- earnings per share and $0.01 on an adjusted EPS basis. Year-to-date, earnings of $27 million which translates to EPS of $0.03 and adjusted EPS of $0.05 per share.

 I'd like to comment on a few items in terms of our cash flow statement, I think bear comment. So first one is just looking at operating cash flow for the period $42 million for the three-month or compared to $90 million in the prior year period. And that difference is due to a couple of things that the first main one is in reduction in sales volume and lower gold price. That changed the cash flow by about $40 million.

 And then we are also -- we've been delivering into the prepaid that we entered into about 1.5 years ago, to help us fund Fekola construction. So those prepaid contracts, where we got the cash flow up front, we're now delivering into 2017, 2018 and a little bit 2019.

 And so we've already had the cash for that, so as we deliver those ounces, we don't see any further cash flow from them. Year-to-date same story, $129 million for the 9 months versus $329 million in the prior year 9-month period. Again, the prior year period reflected $120 million in proceeds from prepaid contracts, and we've seen lower cash flows in the current year, due to lower revenues and slightly higher operating costs.

 Cash flow per share for the 3-month period was $0.04 and cash flow per share for the 9 months was $0.13.

 On the financing side, in the quarter, we drew down $75 million on our revolving credit facility. That left us $175 million capacity at September 30. We'll likely draw one more tranche of that in this fourth quarter, and then we should be in a position with Fekola having started up and revenue starting to flow, that we can start to reduce that total that loan carried.

 Also in the period, we drew on a couple of new equipment loan facilities. We put new [cat] leases in place for Masbate, fleet replacement and expansion, and the same for Otjikoto. We've drawn approximately half of those. Looking at the CapEx side, we spent $120 million in quarter in total and a $352 million for the year. And the main element of that is Fekola.

 I think Clive already mentioned cumulative Fekola project costs to date, we're right on budget, cumulative costs are $579 million against the budget of $587 million. And within that, we're right on track to meet our construction budget of $462 million.

 So that, year-to-date, when you look at our final cash flow position, we finished the period with just under $90 million in cash and $175 million undrawn on the revolver.

 And we think that puts us in very good shape. With Fekola coming on stream, with our operating cash flows, we'll start to reduce the revolving facility level. Then, we have enough liquidity there if we choose to actually repay the converts when they come due next year. We are forecasting (inaudible) repay those converts in October next year. So we don't have any concerns there.

 I think overall, I'd just sum up and say if you look at the results as we have them: good performance in the quarter led by Masbate and Otjikoto, cash cost lower than budget, year-to-date cash costs and all-in sustaining costs, beat budget. We're forecasting to be at the upper range of our guidance range. And we still see a very good startup coming from Fekola that might even enhance that.

 Operating costs. We're going to be a low end of our -- this year's guidance ranges. All-in sustaining costs will be at the low end of this year's guidance range. Liquidity is good. And overall, I think we're in good shape to move forward into next year.

 The only other comment maybe we'd make in terms of the modeling operations in Fekola. We did reach agreement with the government of Mali and all the key agreements that we wanted to put in place, with respect to the operation of Fekola. Those included amendments to the mining convention, just to address a few issues that we thought would be better for both ourselves and the government. Also to put in place shareholders' agreement that just defines how we and the government interact and we got that (inaudible) and finalized in the quarter. And also just to agree the valuation of the 10% interest that the government of Mali intends to take, the second 10% they intend to purchase. We're waiting for that to be ratified by the Malian parliament or cabinet so we expect that later this quarter. And once we have that, we'll be able to provide further details on that.

 And that wraps up I guess what I was going to say on my birthday for the quarter.

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 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [8]
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 Great, thanks, Mike. Maybe just a couple comments (inaudible) a little bit some of the things (inaudible) Mike made (inaudible) just (inaudible) on Masbate front on the political side of the media and what we've seen and heard. I think it's also fair to point out that (inaudible) confident at Masbate, we're continuing operations (inaudible) because it wouldn't make any sense to shut it down. We are the gold standard of open pit mining in the country, in terms of environmental responsibility, social programs, et cetera, and being good in the Community, similar to what [Oceania] (inaudible) nuclear as well. So people should be saying to themselves, why are those operations still running and why are they -- why are both (inaudible) continue to run (inaudible) despite the noise. I think it's very important people keep perspective. Philippines is a country that has a lot of active media, lots of different viewpoints and views, et cetera. And it's gotten a little carried away the last couple of years, and we see it coming -- we see it calming down and we see a more (inaudible) approach to what we are doing from a more rational perspective in our view. And some important changes in government that we think will affect that. Bottom line is that the -- we believe the government (inaudible) people in the building believe the government's issue (inaudible) providing (inaudible) really look at the larger base metal mines, some of which are very frankly very bad environmentally and otherwise. We think that's really the focus and it gets kind of blurred over all mining at some point. So I just want to make that point that we are -- we're very happy with the operation and we -- they are very happy with us. Government at all levels love us and support us. It's huge, we are 95% of the economy (inaudible) and so it's a win-win-win. People, governments, the company Masbate. So I wanted to get that point across.

 I just (inaudible) I guess just on Nicaragua what I would say from some of my comments earlier was that there's very positive things we touched on in the new release with this new discovery of (inaudible) Central, which is somewhat surprising area of what looks like very good grade, potentially open pit of a large body that is very close to the office. How's that possible when it's been in production since 1940? Well, there's an area where (inaudible) mines (inaudible) underground in fact, it wasn't. So it was a very -- a lot of tonnes, a lot of ounces that (inaudible) drilling there. That could be game changer for Limon in the sense of potentially justifying an expansion of the mill to increase production beyond the 60,000 ounces or thereabouts that we expect to pour and also we have the opportunity with doing some work and studies on metallurgy and drilling of some of the tailings. So from the years gone by, when they were mining 15 to 20 grams, that's also another upside.

 So those are some of the reasons why we are looking to future [of Limon] and trying to understand what it can be. And at Libertad we talked a bit about (inaudible) still drilling (inaudible) targets there, (inaudible). So those are just (inaudible) maybe perhaps (inaudible) I think now we'll pass it over to Bill to get some more detail on the ramp-up and why it's gone so well at a time, let's be frank, where a lot of companies (inaudible) very time maybe that's partly why what we're doing and accomplished so far is not really reflected in the current valuation because people are shellshocked. I understand that because of some of that unfortunately for all of us some of the real disappointing performance for projects that are attempting to start up and wrap up to commercial production. Bill?

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 William Lytle,  B2Gold Corp. - SVP of Operations   [9]
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 Thanks, Clive. I guess, before I start, I do want to just pipe in real quick. Mike hit it real briefly. Obviously, from an operation standpoint, we're very, very happy with what's happening at Masbate and what's happening in (inaudible). Even what's happening in Nicaragua some of the measures they've done to right-side the ship. So I don't get a lot of time to wax poetically on all those things, but certainly we want to acknowledge the work that they've done there and the positive contributions to the company. Fekola. Fekola is more like a victory lap today for all the construction team and commissioning and operation team. So I actually want to start maybe back remembering that we started this and the feasibility was approved in June of 2015. And the next year, the executive group, along with the construction team, decided to expand it to 5 million tonnes per annum. So the original design was 4 million tonnes per annum, we actually decided during construction to expand it to 5 million tonnes per annum, based on some of the early explorations success and early construction successes that we had. And so we actually, if everyone remembers, we actually built and 3 months ahead of schedule, and on budget, a facility which will be producing 5 million tonnes -- or produced having a throughput of 5 million tonnes per annum. And in September of this year, we actually came out with that new Life of Mine plan. I'm not going to go through all the numbers, but basically, we did a comparison between what was originally approved in the feasibility study of 4 million tonnes per annum. And then our new Life of Mine at 5 million tonnes per annum, basically showing some of these very significant changes and positive reconciliations that Mike talked about, driving down our cash cost, particularly in the first 7 years of operation. And the ounce profile where we basically show for the first 3 years, we'll be at 400,000 ounces per year and above. And over the Life of Mine, we will be at 345,000 ounces. So, obviously, some very positive significant changes. In that respect, it's relevant, because as Mike said, we had originally talked about bringing this thing into production at the end of 2017, that's what the original schedule was.

 And when we realized that we could switch from 4 million tonnes to 5 million tonnes and get it done, at least on schedule, we made that change and it turned out that actually -- with the extraordinary effort that the construction team did, we actually decided that we could bring it in 3 months early.

 So for those that didn't follow the news release trail, we wet-commissioned on the 15th of September and started running ore through the mill on the 24th of September. And basically, as Mike said, by the end of September, we'd produced more than 6,000 ounces, which was not in any budget that we had.

 I'm not going to go through all of the spectacular kind of October versus budget numbers, but suffice it to say that basically in all metrics on the mill side, we met or exceeded to include throughput recovery availability of the mill, and of course, ounces.

 So as Mike said, we're at almost 34,000 ounces for October, with a budget of 50,000 to 55,000 ounces for the year. We feel very confident that we will be at or above that number by the end of 2017.

 And so how were we able to do that? One of the things that we did, if you remember very early on, is we kind of front-loaded the mining operation. So we hired the General Manager, Randy Reichert in October of last year, so he's been on site for more than a year now.

 We actually started mining with our mining fleet, which we ordered early in April of this year, so we basically been mining full on since April of 2017. We're currently sit with more than 2.6 million tonnes of material on the stockpile. And our goal is to get to almost 4 million tonnes of material by the end of 2017.

 And that's relevant for several reasons. Well obviously if you (inaudible) our prices going forward, as far as availability to the mill, it allowed us to selectively -- or decide where we're going to mine. We've actually got phases 1, 2 and 3 of the pit open now. We've moved a significant amount of waste material in line with our budget forecast. And basically it gave us some hard rock as well to start the mill up. So the mill, based on the startup, has gone very well, and we continue to believe that it's just basically commissioning as normal, and that we'll see commercial production by the end of November.

 Anything I should add to that?

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 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [10]
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 Maybe just to remind people or those that haven't heard it before. About some of the reasons why this has gone so well (inaudible) general construction team, commissioning team, the Otjikot and others.

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 William Lytle,  B2Gold Corp. - SVP of Operations   [11]
------------------------------
 So certainly, thanks Clive for reminding me that. People often ask how this -- how does B2 continually have these successes? Well, certainly it relates to the continuity of the team and the level of professionalism we have on-site. This is the fifth project that our construction team has built for either Bema Gold or B2Gold. This being the second consecutive project that we've been together in Africa, so we're at Otjikoto, where we built the project that's smaller than this, but it was the same construction team. Used the same -- it had a very similar design as to what we were going to build at Fekola. And so we actually brought the engineering team which was like a (inaudible) down to Otjikoto and had a meeting where we sat down with the construction team, the commissioning team, the operations team and the design team to figure out what lessons could we learn from Otjikoto and how could we do it better. We took those lessons to Fekola and with our team, certainly, met or exceeded all our expeditions. I would also add that one of the things that we've done is we've continued to add stellar talent from each of the operations we've been at. For example, at Otjikoto, we trained up the artisans in Namibia and more than 50, 60 of those are -- have actually been used at Fekola during construction. So we've got a great track record of training and maintaining and retaining personnel, and that's certainly been one of the keys to our success.

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [12]
------------------------------
 A couple of other things on the -- I'm not sure if we put them in the news release, we might have. When you talk a lot as (inaudible) we should about health and safety and (inaudible) highest standards for environment protection. I think it quite remarkable to know that company-wide the very highest of standards and Masbate did an incredible job there (inaudible) surpassed 2 years without a lost-time accident in an operation that runs 24/7, 365. Absolutely remarkable accomplishment, that's no lost-time accidents. So lost-time accident can be anything that causes you to not be able to work, so it could be a relatively minor injury. So that is phenomenal, I don't know if that's a record. There's lots of factories in North America and elsewhere that wouldn't have that kind of a safety record, let alone a mine. So just wanted to reiterate that that's a great accomplishment and that's a really important part of what we do. And always will be. The other is local police. Our goal as a company is to have 95% of the police or more at each of our operations. Be of the country. In other words, not a lot of ex-pats and we pride ourselves (inaudible) our ability to successfully train people, for very good jobs, very well-paid jobs, very safe jobs. That has a huge impact on communities (inaudible) we've seen (inaudible).

 So just reiterate what Bill said about what was accomplished once again, 0 production 10 years ago, approaching 1 million ounces today, and that's been done because of our remarkable team and routines within the group of (inaudible) everything from permitting to due diligence internally, feasibility studies, financing, construction, production, and all the other things that we've talked about. So with other successes of the mines, including Nicaragua, we would not be in a position to be able to acquire Papillon and (inaudible). So we'll continue with this approach and a combination of the exploration (inaudible) and very carefully thought and considered accretive acquisitions as we go forward to continue to build too as producers.

 So I think with that, we'll open it up for any questions that people might have. Operator?

==============================
Questions and Answers
------------------------------
Operator   [1]
------------------------------
 (Operator Instructions) Your first question comes from the line of Rahul Paul with Canaccord Genuity.

------------------------------
 Rahul Paul,  Canaccord Genuity Limited, Research Division - Director   [2]
------------------------------
 Congratulation on the excellent job at Fekola. Really strong October numbers here, it looks like grade, throughput and recoveries were all better than expected. Now were the higher grades because of positive reconciliation? Or is it because you're so well ahead on mining that you can stockpile lower grades and put higher grade materials for the plant?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [3]
------------------------------
 Yes. (inaudible) who wants to take that one?

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [4]
------------------------------
 Certainly, it's obviously very early on in a mining sequence to start talking about grade reconciliation and everything else. But our early indications show that the grade is tracking very well with what the model is, what the block model is. So the second part of your question was correct. That basically because we opened up Phase 1, 2 and 3 and we were able to get the various stockpiles in place, we were able to push higher grades through the mill.

------------------------------
 Rahul Paul,  Canaccord Genuity Limited, Research Division - Director   [5]
------------------------------
 And so it looks like -- when you put out the 5 million tonne a day -- tonne a year case, I understand that the plan was to put everything through the plant. And so now you can do that stockpiling strategy. Is there some upside to the grades, at least in the next few years?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [6]
------------------------------
 You're talking about upside the grade through reconciliation Rahul?

------------------------------
 Rahul Paul,  Canaccord Genuity Limited, Research Division - Director   [7]
------------------------------
 No, no. Basically because you can execute on the stockpiling strategy as well, right? Like versus having to put everything through the mill, so net-net, it looks like some of these grades might be sustainable over the next few years.

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [8]
------------------------------
 The answer is obviously we're very early on in the process to answer that. But the feeling is that certainly with the higher -- with the tonne stockpile we will be able to mix and match and decide what we want to put through the mill, and what grade we want to put through. So the answer is yes, there is some variability there.

------------------------------
 Rahul Paul,  Canaccord Genuity Limited, Research Division - Director   [9]
------------------------------
 Okay. And then one clarification, maybe with the performance of the mill. Just to clarify, this is -- for the most part, all fresh rock that you're putting through the plant. Is there some saprolite ore that helps this strong throughput in the initial days? Or is it pretty much all fresh rock?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [10]
------------------------------
 Maybe John Rajala can answer that.

------------------------------
 John Rajala,  B2Gold Corp. - VP of Metallurgy   [11]
------------------------------
 It's mostly fresh rock. We have blended a small amount of saprolite in, but we're getting good throughput on fresh rock.

------------------------------
Operator   [12]
------------------------------
 Your next question comes from the line of Michael Gray with Macquarie.

------------------------------
 Michael J. Gray,  Macquarie Research - Gold Analyst   [13]
------------------------------
 I've got 3 things. First of all, in Otjikoto, on the positive grade reconciliation and the hard rock from Wolfshag, you have highlighted that it sounds like you're trying to still understand it, but are you encountering more VG than expected? And what stage would you be looking at new capping factors for the resource?

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [14]
------------------------------
 I'll answer your second question first, Michael. Probably not going to look at new capping factors for the VG. Can't really see it, through the mill John, what percentage of gravity is coming through?

------------------------------
 John Rajala,  B2Gold Corp. - VP of Metallurgy   [15]
------------------------------
 Yes, we're still recovering about 70%.

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [16]
------------------------------
 So no different than Otjikoto, right? It's no real difference from Otjikoto.

------------------------------
 John Rajala,  B2Gold Corp. - VP of Metallurgy   [17]
------------------------------
 Wolfshag same as Otjikoto effectively.

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [18]
------------------------------
 That answers your question there, Michael. And in terms of the positive reconciliation, it's has much a tonnage thing as it is a grade thing. The [indications] we have is showing slightly more tonnes of high-grade than we had modeled.

------------------------------
 Michael J. Gray,  Macquarie Research - Gold Analyst   [19]
------------------------------
 Okay. Fair enough. On Fekola, and I know you're putting out exploration news tomorrow, but in terms of maybe just a bit of a roadmap, the near pit exploration results, can you provide an update on what we might see in the long section referring to the June Analyst Day one, the more detailed one? You had 30-meter infill drilling for the north conversion of the pit, and then it looked like roughly 60-meter infill spacing for the (inaudible) pit, then it went to about 100 meters spacing on Fekola deeps. Has there been accelerated infill drilling? Or is that more or less the pattern we should expect to see results from?

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [20]
------------------------------
 No. I wouldn't say that there's been accelerated infill. It's just basically, Michael, were going to come out and release all the results tomorrow. It's a step out to the north away from the main resource and for the resource, a little bit of infill and then some large step-outs, (inaudible)

------------------------------
 Michael J. Gray,  Macquarie Research - Gold Analyst   [21]
------------------------------
 Some large step-outs?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [22]
------------------------------
 (inaudible)

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [23]
------------------------------
 And there's going to be quite a few results from sulfite material under Anaconda.

------------------------------
 Michael J. Gray,  Macquarie Research - Gold Analyst   [24]
------------------------------
 And are you able to say the schedule of timing whether that's going to be pre-market or aftermarket?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [25]
------------------------------
 It's going to be premarket. And you'll just have to wait, it's only one more sleep, Michael.

------------------------------
Operator   [26]
------------------------------
 Your next question comes from the line of Lawson Winder with Bank of America Merrill Lynch.

------------------------------
 Lawson Winder,  BofA Merrill Lynch, Research Division - Associate   [27]
------------------------------
 Unfortunately it's not my birthday, but Mike happy birthday to you. But just a couple of things. First on Libertad, regarding San Diego and San Juan. Are you able to give us an idea -- since we really don't know how many ounces are there, what the resources since it was all year-end 2016 kind of lumped into inferred. How long are those -- will those 2 pits last for? I guess in terms of quarters. And then when you give me the answer, maybe also give me an idea sort of what production level in terms of gold ounces you're assuming.

------------------------------
 Unidentified Company Representative,    [28]
------------------------------
 Sure.

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [29]
------------------------------
 Dale Craig will answer that one.

------------------------------
 Dale Alton Craig,  B2Gold Corp. - VP of Operations   [30]
------------------------------
 I can handle that. San Diego pit, we'll mine most of that through the coming year in 2018. Just under 600,000 tonnes and just under 2 grams. That will form about a quarter of our mill feed coming up to 2018. San Juan, we'll mine about half of it in 2018, just under 500,000 ounces and we're currently carrying just over 2 grams for that. So again about 25% of our mill feed.

------------------------------
 Unidentified Company Representative,    [31]
------------------------------
 (inaudible) 500,000 tonnes?

------------------------------
 Dale Alton Craig,  B2Gold Corp. - VP of Operations   [32]
------------------------------
 (inaudible) 500,000 tonnes, yes.

------------------------------
 Lawson Winder,  BofA Merrill Lynch, Research Division - Associate   [33]
------------------------------
 So they get you effectively through to the end of the year so I guess what I'm hearing, there's no real need to have Jabali antenna in 2018 in order to meet your sort of your updated guidance, which is about -- up to 120,000 ounces, am I understanding that correctly?

------------------------------
 Dale Alton Craig,  B2Gold Corp. - VP of Operations   [34]
------------------------------
 We'll be producing in that range, we anticipate next year. We do plan on bringing Jabali antenna into production. Our current plan leaves another half of San Juan for 2019. Of course we're looking to get Jabali antenna permitting done in the second quarter of 2018 and looking to produce -- it doesn't contribute a lot in 2018, but it is planned to get some production from Jabali antenna in 2018.

------------------------------
 Lawson Winder,  BofA Merrill Lynch, Research Division - Associate   [35]
------------------------------
 Would I be correct in assuming that what you're waiting on still at Jabali antenna is just relocations?

------------------------------
 Dale Alton Craig,  B2Gold Corp. - VP of Operations   [36]
------------------------------
 A little bit of back history there. We dealt successfully in San Juan with small miners. We have 3 agreements there that we put in place rapidly. So we are well organized on negotiating this relocation. We have about 70% agreement with the people that need to be relocated in order to commence operations in Jabali Antenna, that's the key. Our focus on the remainder of the year will be to work on the rest of that group.

------------------------------
 Lawson Winder,  BofA Merrill Lynch, Research Division - Associate   [37]
------------------------------
 Got you. And then, just assuming you had -- you have all those permits. I mean, in my view, I think the constraining factor to extend the mine life at this point would be the tailings dam and how much space you have in that. So I saw that you spent $4.7 million in Q3 on expanding the last (inaudible) tailings dam. So with the current expansion that you're going through right now, like what does that take you to in terms of mine life before you have to do yet another?

------------------------------
 Dale Alton Craig,  B2Gold Corp. - VP of Operations   [38]
------------------------------
 Yes, that's takes us in through 2019, and we're currently evaluating 3 options, 2 of which look reasonable and doable. And we'll advance those plans or put a fine tooth to those plans in the coming 3 months.

------------------------------
 Lawson Winder,  BofA Merrill Lynch, Research Division - Associate   [39]
------------------------------
 Okay, and just finally, last question on La Libertad, you have San Diego, you have San Juan, I mean those were 2 sort of surprise discovery I think from the market's point of view, at least from my point of view. Do you have anything like that, that you're kind of looking at that we may not be seeing right now, but might be -- might provide additional ounces down the road?

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [40]
------------------------------
 We're active with exploration in there. We have some encouraging results and once we get them all together, we'll put out something.

------------------------------
 Lawson Winder,  BofA Merrill Lynch, Research Division - Associate   [41]
------------------------------
 Okay, got you. And then for Fekola, it's fantastic news that you guys have an agreement with the government. It sounds like everything is in place, you just need the ratification. I'm curious, at this point, are you able to share with us what the pricing would be for the Malian government's additional 10% interest?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [42]
------------------------------
 No. And, I mean, the fact of the matter is that it's been agreed with the government. It's confidential until the ratification, but I think we'd always said it's 10% interest and if one went back and looked at the -- what our purchase price was for Papillon, and that would be an interesting -- or not a bad way to start reflecting percent of that value. And will give you more detail when it's ratified. It's a fair market value I think is the key point as is required in the laws and Mali's. It's a fair market value, both of us brought in independent valuators. They brought one in from Paris, we brought one in from the U.S. and they were within $1 million each of the valuation. So that went very well, it a demonstration of our good transparent mutual respect relationship with the government of Mali.

------------------------------
 Lawson Winder,  BofA Merrill Lynch, Research Division - Associate   [43]
------------------------------
 That's great, that's very helpful. At El Limon the tailings reprocessing option, that's very interesting possibility. I'm just curious at this point are you able to put any timing around when you might ultimately be able to make a decision on whether or not that might go ahead?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [44]
------------------------------
 We're talking about coming out with some drill results in November we see in the news release from Central zone, but in terms of the tailings, Dennis, go ahead.

------------------------------
 Dennis Robert Stansbury,  B2Gold Corp. - SVP of Engineering & Project Evaluations   [45]
------------------------------
 Probably Q3, we'll have all the results. We're doing a lot of metallurgy, getting the (inaudible) rights and what you need for that, so there's an engineering study that's ongoing. We're just now starting to collect the samples for it. By the time we get all those, get all the network done, we're probably looking at the middle of next year to Q3 to have that all done and be able to make a final decision on that.

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [46]
------------------------------
 I would say that we're remaining to positive line, given the historic grades that were mined, and the potential grades in the tailings and ...

------------------------------
 Dennis Robert Stansbury,  B2Gold Corp. - SVP of Engineering & Project Evaluations   [47]
------------------------------
 Our initial internal looks quite positive.

------------------------------
 Lawson Winder,  BofA Merrill Lynch, Research Division - Associate   [48]
------------------------------
 And then just one final one from me. So for 9 months '17, gold sales are -- trailing commercial production, just by a little bit, something like 10,000 ounces. And I'm just curious, is that something you will make up in Q4 '17? Or is that something that we should just expect to continue going forward?

------------------------------
 Michael Andrew Cinnamond,  B2Gold Corp. - Senior VP of Finance & CFO   [49]
------------------------------
 Yes. I think we actually commented in the MD&A that part of it -- part of that difference at the end of the quarter between sales and production was the timing of a couple of shipments at Otjikoto and Limon, that accounted for nearly all of that 10,000 ounces. And we do expect that we see that reverse in the last quarter.

------------------------------
Operator   [50]
------------------------------
 Your next question comes from the line of Jeff Killeen with CIBC.

------------------------------
 Jeff Killeen,  CIBC Capital Markets, Research Division - Director of Institutional Equity Research   [51]
------------------------------
 I wanted to circle back a little bit with what Rahul was asking about in terms of the stockpile at Fekola. Certainly, a great looking grade we've seen so far. Given where your guidance is for the year, it would seem pretty unlikely that you're going to get into that guidance that you'll be well above it unless there's a fairly steep decline in terms of the grade at Fekola. So just wondering if you can comment on that. If, in fact, we would see those grade decline. If not, what you're thinking in terms of a forward view into 2018. And then, as a part of that, is some of this active strategy because of the exploration success you're seeing both at Fekola and in the region that you may be thinking of grabbing some of those better grades quicker?

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [52]
------------------------------
 So the answer is, the (inaudible) profile for 2017 was not just based on grade, right? It was based on plant availability and how quickly we ramped up. So we had -- as you saw we only had a 50% plan availability in for October and then ramping up from there in the budget. So that's how that 50,000 ounces came about. Obviously, it's gone much better than that and that's allowed us to get more ounces through. As far as what we see going forward, once again, we have these stockpiles but that doesn't mean we are going to start jamming and rock 'n roll. What we know is that over the first kind of 3 years, we have a bucket of ounces and those ounces are basically -- we're just trying to schedule them so we have a reasonably normalized profile so next year, we are talking and will continue to talk about 400,000 to 410,000 ounces per year.

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [53]
------------------------------
 We have a bucket that could be increased.

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [54]
------------------------------
 The exploration part of it, I didn't need comment on it.

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [55]
------------------------------
 Well it's only one more sleep. We'll find out more tomorrow.

------------------------------
 Jeff Killeen,  CIBC Capital Markets, Research Division - Director of Institutional Equity Research   [56]
------------------------------
 Fair enough. And then switching to Masbate obviously, it's been pretty sustained positive surprises there in terms of more oxide, slightly better recoveries grade and what have you. You think there's any risks that the positive surprises you're realizing now will result in any reduced numbers in the reconciled estimate for resources in next year or subsequent years or is this truly just extra ounces within the profile?

------------------------------
 John Rajala,  B2Gold Corp. - VP of Metallurgy   [57]
------------------------------
 Bottle based is based partly on conservative estimates within the mined out areas, in Colorado specifically, at the north end, we've been able to identify additional resources and mine those with our grade control drilling, which resulted in about 10% to 11% additional tonnes throughout the year. The other benefit that we see out of Colorado is transitional material processing as oxide. We see no reason that, that would change. We may not make the same gains in the south end of the pit as we do in the north end of the pit. But in general, our trend has been built into our mine model. And we don't see a lot of risk there.

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [58]
------------------------------
 Colorado's actually minded out next year, right?

------------------------------
 John Rajala,  B2Gold Corp. - VP of Metallurgy   [59]
------------------------------
 Yes, we'll finish Colorado off in 2018.

------------------------------
 Jeff Killeen,  CIBC Capital Markets, Research Division - Director of Institutional Equity Research   [60]
------------------------------
 Okay, very well. And then last question, just a clarification, I think you said about 70% of the people around antennas had signed on to relocation agreements. If I'm correct, there was one particular hold out that you had referred to previously, would that individual be a part of that 70%? Or is that agreement still outstanding?

------------------------------
 William Lytle,  B2Gold Corp. - SVP of Operations   [61]
------------------------------
 We've reached an agreement with that particular individual and, we'll execute that agreement, is that the right term? Once we have full agreement with the other residents in the area.

------------------------------
Operator   [62]
------------------------------
 Your next question comes from the line of Brad Bloomer with Evergreen Capital.

------------------------------
 Brad Bloomer,    [63]
------------------------------
 My questions focus on Nicaragua where -- and this is pretty simplistic, so bear with me. But just picking a numbers off of the MD&A. You have Libertad an AISC almost $1,200 versus a budget of $727. And at Limon, El Limon, you have an AISC of $1,400 versus a budget of $900. My question is since these operations in this country seems to be responsible for a production -- annual production of somewhere between 100,000 to 150,000 ounces, why don't you just find a good buyer for Nicaragua and get it out of the way? And your overall consolidated corporate results would just zoom. End of question.

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [64]
------------------------------
 That's a -- fair question. I think the answer to that is the fact that if we saw no -- if we do not think that Libertad could improve, then there was opportunities to improve Limon, and then we would probably be in that mode now, given what we've got going on in the company. But at the end of the day, we think it going to get value for the assets of the company (inaudible) shows one way or the other. So now, we're not stubbornly hanging on to Nicaragua because that's where we -- was our first producer or that type of thing. This isn't an emotional aspect of this. At the end of the day, the bottom line is that with this new discovery of the central zone in El Limon, this is a game changer potentially, and it looks very likely for El Limon in terms of ounces and most importantly, open pitable ounces. Because the key to El Limon has always been a blend of some ore from high grade or undergone and some open pit for it to be able to feed the mill consistently. So this is -- so we think we need to get value for that and if it turns out to be what we think and we'll know quite soon, that we might significantly -- we might look at expanding the mill relative cheap -- expanding the mill at El Limon to take more tonnes and increase production significantly beyond where we're projecting for example for next year. That would come sometime, not next year but not very much later in terms of that. Also we have this tailings opportunity. So at the end of the day, if you wave your arms a bit, the potential for El Limon to go from 60,000 ounces a year to a significantly higher level of production perhaps encroaching back to what it was some years ago with better grades around 2,000 and 100,000 ounces a year, that we were to get there, but that's the kind of potential upside. So if you got that and Libertad we continue to get some good exploration results, what is the ultimate mine life of Libertad? There's a reason for what we're doing. This would not be the time and argue to look to exit Nicaragua and sell them now. Because I don't think we'd be getting value (inaudible) for what we think is there with some more work. So there's been a change. If we haven't seen these changes and opportunities then might have a different view and we might be looking to do something with someone who is capable of continuing. We do care about our legacy in Nicaragua, it's been an extraordinary success. It is a very good country to go mining in. A much better company to be going in because of us frankly. Because we came in and we convinced the President of the country and most of the people of the country that gold-mining could be positive, when it was very negative for most of them because of use of mercury, illegal mining, et cetera. So that's been a great success. Great success for the people and the government. We care about the legacy of that. And if we do something there, would be looking to do something with a credible -- someone else credible coming in. So that's our view. It's -- I think the right thing now is to get value for them by doing the work we're doing and out of it become -- they improve and become miners with a decent mine line and decent production level and production level that we would want to keep them. We do own them, we know how to run them. Or we may look -- we may decide somewhere next year after this work, these may not be core assets. I may look at this if there's a good deal. By the end of the day, that's our position.

------------------------------
 Michael Andrew Cinnamond,  B2Gold Corp. - Senior VP of Finance & CFO   [65]
------------------------------
 Our focus in looking at 2018, was to get our all-in sustaining comfortably below our anticipated gold price at both operations. At La Libertad, we know the key is getting the mine permits in place, and managing those assets over the next 2 years. At Limon, we know that the challenges there. We're dealing with some technical aspects in the underground mine, those have been resolved this year, and then moving forward to what we know is a tried and proven recipe in running Limon successfully. That's a combination of underground and open pit mining that provides a good continuous feed for the operation. And we see some upside with Limon central area and some upside with our tailings reprocessing project.

------------------------------
Operator   [66]
------------------------------
 And your next question comes from the line of Justin Stevens with Raymond James.

------------------------------
 Justin Stevens,    [67]
------------------------------
 Most of my questions has been crossed off here. Just a couple left. I'm assuming that you guys will sort of provide an update on the Wolfshag positive reconciliation when you do your revised reserved (inaudible) next year?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [68]
------------------------------
 Yes. That's right.

------------------------------
 Justin Stevens,    [69]
------------------------------
 Got it. And just in terms of the Wolfshag at depth. Can you give a ballpark of what sort of strip ratio you're looking at for the deeper stuff there?

------------------------------
 Unidentified Company Representative,    [70]
------------------------------
 Greater than 20.

------------------------------
 Justin Stevens,    [71]
------------------------------
 Greater than 20? Perfect. Lastly, just I know you guys can't give a value for the Fekola 10% interest sale. But can you, at least, say if you guys are looking at a cash deal. Or if there's going to be some noncash consideration there?

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [72]
------------------------------
 I guess we can talk about -- the concept is that the government would have their 10% carried interest as for the laws and the mining convention if Mali and the other 10% is just when we talk about where the government pays fair market value. And the likely -- the way that's being structured is that they would -- the way they would pay for that would be -- they would not pay their dividends on the second 10% until it had reached the amount of money that the purchase price is. Have I got that right, Mike?

------------------------------
 Michael Andrew Cinnamond,  B2Gold Corp. - Senior VP of Finance & CFO   [73]
------------------------------
 Well it would actually be the purchase price plus interest. They've got a fairly reasonable interest terms there, so we would get the price plus interest funded through future ordinary dividends from that second 10%. So we basically would see all the economic benefit from that second 10% until such time as it's repaid.

------------------------------
Operator   [74]
------------------------------
 And we have no further questions at this time. I'll turn the call back over to Mr. Johnson.

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [75]
------------------------------
 Okay. Just one thing I forgot to mention. And obviously, it's not on too many people's radar, but (inaudible) , joint venture we have and we'll go to (inaudible) Colombia, and we're coming to an important point here where (inaudible) finished a version of a pre-feasibility study. Not a 43-101. But it's a version of that and they presented that to us, and we're reviewing it, our group. And the next step is to decide whether do to go to a final feasibility, which would take about 1 year, 1.5 years. Dennis?

------------------------------
 Dennis Robert Stansbury,  B2Gold Corp. - SVP of Engineering & Project Evaluations   [76]
------------------------------
 Yes, just over a year.

------------------------------
 Clive Thomas Johnson,  B2Gold Corp. - President, CEO & Director   [77]
------------------------------
 Just over a year. And so that's the conversation going on and that's the next decision point. I guess, for both companies to decide their view of it going forward and its potential. So we'll be in a position to comment on that how we think before the year-end, how we see that and roughly hear what our partner wants to do as well. So with that, thank you all for your time, and good questions.

 And we are excited about looking forward and [meet you all]. (inaudible) obviously, is a very important project for us and the performance of our mines continues to be a top priority, optimization and looking at continuing to grow the company. So keep your eyes open for a release tomorrow that talks about some of the exploration results and upside potential that we see Fekola to the north and underneath the (inaudible) zone of the Anaconda area as well. So thank you all very much.

------------------------------
Operator   [78]
------------------------------
 And this concludes today's conference call. You may now disconnect your lines.




------------------------------
Definitions
------------------------------
PRELIMINARY TRANSCRIPT: "Preliminary Transcript" indicates that the 
Transcript has been published in near real-time by an experienced 
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