Good afternoon. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the B2Gold Second Quarter 2022 Financial Results Conference Call. All lines have been placed on you to provide any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Mr. Johnson, you may begin your conference.

Thank you, operator. Welcome, everyone, to the B2Gold conference call to discuss the results of the second quarter of 2022. As you can see from the news lease we put out, we had another very strong quarter. We beat our budgets in a number of areas. And very importantly, we're able to maintain our guidance for 2022 even in this current environment of inflation, what we're seeing in the world. So a very good first half. We have guided that we're going to see some higher cost due to inflation primarily in the second half of the year. But because of the start of first half of the year, we remain on our guidance for 2022. Then Mike is going to talk a little bit about the details of the quarter financial results, but I just want to give a little summary for that. So as we said, very happy with the results. The other significant announcement we made today was that we are not going to proceed at this time with the development of the Varroate project, our joint venture, joint venture, was Gold Chevy. -- both parties that have agreed at this time that it does not meet our economic thresholds to go ahead and develop the project. We had -- are in the process of doing an updated feasibility study, which will be completed in the third quarter of the year. And we had some hopes that we could approve the economics of Gramalote from what we had in the previous study, which indicated a $1,500 gold to about a 15% IRR, but we thought there was potential to improve the economics in 2 ways. One was to look at some of the different engineering approaches and design approaches to try and bring that capital cost down…

Thanks. So let's start -- I'll just run us quickly through the second quarter, some of the main results. So firstly, on the revenue side, we had a good revenue quarter. We sold 205,000 ounces at an average realized price of $1,861 per ounce for revenues of $382 million. So it's a bit higher than we thought we were going to have. Obviously, we sold a bit more than we thought with positive production and also revenue was higher than we forecasted. On the production side, total from our operating mines, 209,000 ounces from our 3 mines for the quarter. We included our share of calibers results, total production reported was 224,000 ounces. So both of those total is probably in line with the budget. Fekola had another strong quarter, 123,000 ounces, in line with budget and its Fekola's processing facilities actually achieved record quarterly throughput of 2.42 million tonnes in the Q, which is very impressive and higher-than-budgeted throughput, though was offset by lower-than-budgeted mill feed grade as we use the gain, low-grade stockpiles to feed that additional budgeted feed. Reminder to that Fekola's production is expected to be significantly weighted to the second half of 2022 when mining reaches the higher-grade portions of Phase 6 in the Fekola pit. I should also comment on the recoveries in the quarter were slightly lower, 92.4% in the budget of 94%. And that's mainly because we had lower availability of lime because of some of the actions that were in place in Mali. So that led us to reach some of what we were doing and reduced recoveries in the quarter. However, with the sanctions now left, all reagents are now available, so that shouldn't be an issue going forward. Masbate production in the Q, 54,000 ounces, slightly above budget of…

Thanks, Mike. Just a couple of things. I want to talk before we have the questions. So the stock politics. There has been some positive developments in Mali recently with the eco of the organization of West African states, reaching an agreement with the current government of Mali about the elections and having democratic collections to be held in the 2 years we expect our March of 2024. That caused that agreement, which we welcome caused ecos to draw the second. So they've really been hurt on the economy of Vale, we have mortars challenges in the world today. Everyone is aware, has been hit as things like the -- also the Russian invasion or in the Ukraine has obviously here in many countries or other world, including Africa tours supply and what those sorts of things. So it's good to see the sections that are moved in the Raleigh economy has a chance to start recovering here. Gold production is remains a very, very important part of both economy, and we remain with a very good relationship with the current government has we have for the previous governments, and we're confident we will have going forward, not online from many other Western companies that are successfully explored and developed over many years. If you go back and look at Randall, et cetera, various decades of successful gold production. -- not related as our partner. We're a major tax payer in the gold space in Gold is a very important part of the economy of Vale will remain so going forward. So the government is a 20% partner in Tiago and will be -- we anticipate we'll be a 20% partner as well in the rest of the licenses as we move them towards development. So we've seen an improved…

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Your first question comes from Ovais Habib with Scotiabank.

Thanks, operator. Clive and B2B team. Congrats on a strong first half and really great to see full year production and the specialty cost guidance unchanged. So I have a couple of questions from me. Maybe starting off with the fact that you mentioned earlier on the call with [indiscernible] input on hold, the focus of B2 will now be on exploration, advising Anaconda as well as M&A. Maybe a little bit more clarity on the M&A side. Is the focus to look at late-stage development projects still? Or would you consider producing operations as well? Also, maybe some color on any jurisdictions that you would focus on?

Yes. I think, meso, we are, as we've been in our history, really looking across the whole spectrum of potential acquisitions in terms of stage of development. We are looking at some gene exploration companies where perhaps there's some kind of a strategic investment but also joint ventures or potential as we've done in the past mergers. So we're looking at that, we're definitely looking at development projects with our construction team and who are going to be working on a common shortly in terms of road construction, et cetera. So we have a team that can take on anything as we've shown virtually anywhere in the world. So we're looking at development stage projects as well. And we're also open to the potential friendly merger or acquisition of producing company as well. So right across the whole spectrum. And I think in terms of jurisdictions, we really don't tend to limit ourselves. But of course, we would like to see some opportunities in jurisdictions. North America, we'd love to do something we got the right fit. But we're pretty open that won't understand the potential significance of the Finland exploration drilling as well. There's a major discovery there that was made and we are not just an area of play by any means, we're getting some good mineralization and some of the new homes there that we're seeing. So that's going to be a focus as well. But right across the spectrum in terms of M&A, as I mentioned in my earlier remarks, we're an extraordinarily strong financial position to utilize cash as well as potentially some shares in terms of M&A activity, but we're going to maintain the discipline that we've shown for 15 years and before that at BemaGo in the acquisitions we do. They have to be accretive and they have to be raised on realistic low prices going forward, and we're just going to continue to have a lifetime which is to do with accretive acquisitions that have some upside potential, so we'll continue to pursue them.

And then just switching gears to Anaconda in terms of trucking of the satellite material, Mike mentioned that, that’s been pushed on to Q2 of next year. Is this a function of your expectations on the permit additional exploration and development work required? Any more color you can provide on that?

Yes. I think I'll pass that to Bill. But I think the -- yes, I'll just pass it over to Bill to were to understand what we're going to be doing and when we're going to start to see material, whether it be Cardinal or others or these other deposits being trucked down.

Yes, as, it's a good question and one that we probably should have been clarifying the whole way. We always talk about this kind of end of 2022 as a time period where we could do it. if we so chose, you have to remember, we're trying to optimize the whole district. And so we're looking at not just getting material from an taco, but what does it look like for a whole optimized area. So yes, there are some permitting things that we have to go through, but we're also trying to find out where the best or is to get to the mill first. And so it's not just looking at Ben taco by itself. So we picked Q2 as a way that we feel like all the permits can be in place, get our equipment in, put the road in and get ore down there. But I would argue that from your side, you shouldn't really focus on that because those ounces have already been replaced with ounces from other places like Cardinal and in Fekola. I think just to be clear, the Taco is part of Fekola complex, which is within the Fekola Complexes part of what's been called the code condo area, which Mehas [ph] been -- within that has been a very exciting target where we've be getting some of these really good results in the sell-in just so we're on the same page. So when we talk about the Taco put that in perspective.

And just kind of just a follow-up on that. So essentially, you’re looking to come out with a kind of a master plan for the district, and that’s expected by the end of this year.

Yes. So remember, we've kind of got 4 studies going on, and 2 of them are kind of love to get it, right? So at first, we got the underground, right, which we didn't really talk about. We got the underground study, which has shown really good economics. We're actually now looking at contractor bids and how does that all work to try and move that forward. So that will be coming out this year, an update on that. You've got the Phase 1, which is what you're talking about, which is kind of like the regional play, whether it's Aqua or whether it's Bentako Menico -- we're also taking -- we've been very open about this high-level Phase 2, which would be a stand-alone mill. What would it take to do that? So we're looking at what would the cost be and the ounce profile, which would exceed the NPV of trucking and when would that come in? And then the whole thing is being optimized by Whittle looking at all of our sources to include Fekola and Cardinal and really trying to put the best ounces in and that will definitely come up by the end of this year.

Got it. Okay.

Thanks.

Your next question comes from Anita Soni with CIBC World Markets.

I just wanted to follow up on what you just said, Clive. I just want to make sure I heard correctly. Did you say that you would be open to a friendly merger of a producing company.

Sure. We're -- we've always maintained the growth opportunity for the company to pair up with another producer that's obviously something we're here to build shareholder value, and we look at every opportunity to do that. I think we like where we are today in the sense of our ability to take on additional projects and grow the company and also our ability to potentially to add some additional production to what we're doing. We just had a very strong ringing endorsement from our shareholders not a couple of months ago now or last -- at our AGM, we're somewhere close to 80% of the shares that are outstanding on the B2moted, which is really extraordinary and over 90% of the shares bonded voted for the Board of Directors, which therefore the strategy of the company and for management. So paying the industry-leading dividend, maintaining a strong cash position being debt free with the technical teams that we have, the financial teams and all the things that we have in our responsible mining team and you'll see our new digital writing for just came out -- continue to be an industry leader. We're -- we do have a strong mandate from our shareholders to continue to grow the company, and that's our focus. We'll look at various alternatives, how to divest to that.

Okay. I was -- I just wanted to say that actually my questions were with regards to whether or not you had considered Senegal and specifically thinking about IAMGOLD photo asset in light of their updates this morning. And I just want to maybe get an idea of some of the assets that might be up for sale or available for sale some of the regions other than friendly merger that you might be interested in?

Yes. I mean I can't comment on specific opportunities, but suffice to say that in our -- looking at opportunities, of course, one of the areas that you look for opportunities in is around where you are because you've proven your ability to do it in that part of the world, et cetera. And there are some interesting opportunities. We're looking at a whole lot of different things as well as you saw the Aqua deal. We're looking through is there value to be added because we have a mill or maybe a second money that further value in the Maui area where we could traditionally analysis to the Fekola mill. Not a need for sure when you look at the -- all the targets we have and the results we got so far within the Fekola complex completely if there's something that makes sense, we'll be looking at it. And also, as I mentioned earlier, of other jurisdictions around the world. We think we're in a very strong position right now to do the right kind of M&A to continue to complement growth from existing projects with other opportunities.

Okay. I just want to close out by commending you for being disciplined. I've seen a lot of companies just rush headlong into projects, whether or not they make sense. And I know your share price is down a little bit today, but I think pausing the Gramalote project is the right decision. And I'll leave it at that.

Great. Thanks for your questions.

Your next question comes from Don DeMarco with National Bank Financial.

Congratulations Clive and team on another strong quarter. My question has to do with the Aqua acquisition and [indiscernible]. The opportunity here something that is relatively near term, like, for example, are the permits in place? Is there potentially near surface mineralization whether for trucking or stand-alone, just if you could provide a little bit more color on what you see as the opportunity here. I recognize that we'll wait for the master plan at the year-end and we'll find out more then, but what were some of the things about Dando that attracted you? And what's the near-term opportunity here?

Sure. I mean Acumedia Banco [ph] is a pretty exciting acquisition for us because of just what you talked about the potential for good grade material on our surface building want to talk about more.

Yes, sure. I mean we saw it really as fighting both the whole [indiscernible] as to what place it comes into the sequencing. It's got some high-grade material relatively close to surface. -- they've actually done a very good job of bringing their permit forward. They've got a lot of their environmental baseline work done. They had a mining plan, which showed it trucking it somewhere at some point. So that made it very easy for us to think about what it meant for us -- we actually -- we've been out in the field. We see certainly an easy trucking route to Fekola. And so the answer is it's got all the things that we would look forward to really fight for one of the first positions that we would bring it in trucking into Fekola for sure.

It also has a very strong expertise potential. There's a story is partly told there through some good aspiration, but there's a lot of potential like we're seeing in all these zones, but the potential start with potential TAM.

And will you be setting up any rigs on Dendo anytime in the near future?

Maybe what sorry are resides.

Yes, indeed. As soon as the closes in September, we were on standby ready to get a straight away.

Okay. Great -- that's all for me.

On that topic, we will – I would say, within the month, we will be coming out with an additional news release on some of the exploration results we’re seeing from the Fekola complex. We’re seeing some great results of those shares assume, I would say, by early September.

There are no further questions at this time. Please proceed.

Okay. Well, thank you, operator. Thank you all for your attention and thanks guys for the questions and good answers. Thanks, everyone. Have a good day.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a great day.