Gold Producer Secures Massive Growth Into Late 2030s in Mali

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX) announced that the state of Mali has awarded its Malian subsidiary the Menankoto exploitation permit, according to an August 7 release.

Together with the Dandoko exploration permit, the new permit forms Fekola Regional, which B2Gold identifies as an important near-term source of production growth. The permit follows constructive discussions between B2Gold and the Malian government that resulted in approval for underground mining at the Fekola Mine and have now culminated in the issuance of the Menankoto permit on August 7.

B2Gold and Mali continue to operate under the September 2024 agreement governing the Fekola Mine and Fekola Regional, collectively known as the Fekola Complex. Under that arrangement, Mali issued the Menankoto permit pursuant to the 2023 Mining Code, while the Fekola Mine continues to operate under the 2012 Mining Code.

The Fekola Complex consists of the Fekola Mine, which includes the Fekola and Cardinal open pits and the Fekola underground operation on the Medinandi permit, as well as Fekola Regional, comprising the Menankoto exploitation permit and Dandoko permit. B2Gold owns 80% of the Fekola Mine, with the State of Mali holding the remaining 20%, while ownership of Fekola Regional will be divided 65% to B2Gold and 35% to Mali. Fekola Regional lies approximately 20 kilometers from the Fekola Mine.

B2Gold President and Chief Executive Officer Mike Cinnamond called the permit’s issuance "a significant milestone for both B2Gold and the State of Mali."

"The Fekola Complex is currently the largest producing gold mine in Mali and issuance of the Menankoto Exploitation Permit secures the future of the operation well into the late 2030s," Cinnamond continued. "B2Gold is committed to working in a transparent manner to ensure the continuation of the positive and mutually beneficial partnership between the company and the state of Mali, for the benefit of the Malian people and all stakeholders. The company's total investment in Mali since 2014 has reached over US$2 billion, and B2Gold is a significant employer with more than 3,300 workers, of which approximately 98% are Malian nationals. Through its investments, B2Gold has provided major economic benefits, including job creation, training, capacity building, and community investments, and looks forward to continuing to build on these benefits for many years to come.”

Pre-Stripping Work to Begin

Following the permit award, B2Gold will begin mining pre-stripping work and complete a tolling agreement. The company expects Fekola Regional to progressively increase operations through the end of 2027 and to produce more than 150,000 ounces of gold annually from 2028 through the middle of the 2030s.

B2Gold said the Fekola Complex remains a key part of its production portfolio, providing a strong annual production base and mine life extending well into the 2030s. The company said it plans to continue pursuing opportunities to enhance the value of the complex for shareholders, the state of Mali, and other stakeholders.

Q2 Production Matches Expectations

On August 6, the company reported second-quarter 2026 gold production and financial results. B2Gold's consolidated gold production of 203,648 ounces was in line with expectations as stronger-than-expected output from Fekola, Masbate, and Otjikoto offset lower production at Goose following an April fire affecting parts of its crushing circuit.

Consolidated cash operating costs were US$1,201 per ounce produced, while all-in sustaining costs reached US$2,356 per ounce sold, both better than anticipated because of lower processing and production expenses and reduced sustaining capital spending. Attributable net income totaled US$417 million, or US$0.31 per share, while adjusted attributable net income was US$41 million, or US$0.03 per share; the adjusted figure excluded a US$292 million gain from the sale of mining interests and US$135 million in unrealized derivative gains but included US$71 million in realized losses on gold collars, which are scheduled for final settlement in January 2027.

B2Gold generated US$94 million in operating cash flow before working-capital changes but recorded US$258 million of free cash outflow, primarily because of higher cash taxes, including a larger priority dividend to Mali, the impact of prepaid gold sales, and increased production costs. The company also received US$325 million from selling its Finnish properties, although those proceeds were excluded from second-quarter free cash flow. B2Gold repurchased 19 million shares for US$92 million under its renewed normal course issuer bid during the quarter. As of June 30, the company held US$287 million in cash and equivalents and US$405 million in working capital, while a US$75 million repayment on its US$800 million revolving credit facility left the entire facility available for future borrowing.

B2Gold narrowed its 2026 consolidated production outlook to 820,000 to 920,000 ounces from the previous 820,000-to-970,000-ounce range, with the largest adjustment linked to Fekola Regional delays.

"B2Gold delivered a solid second quarter, with production across our operating portfolio largely in line with expectations, highlighted by stronger-than-anticipated performance from Fekola, Masbate and Otjikoto," Cinnamond said at the time.

"Receipt of the Menankoto Exploitation Permit (later announced in the August 7 release) will be an important milestone that allows B2Gold to commence mining within Fekola Regional and supports the continued long-term growth of the Fekola Complex," Cinnamond said at the time. "During the second quarter, we further strengthened our balance sheet through the sale of our interest in Fingold for US$325 million in cash, unlocking significant value for our shareholders. Other highlights from the second quarter included repurchasing US$92 million of shares under our NCIB and completing the final deliveries into our Gold Prepay contracts. As we look forward to the second half of 2026 and into 2027, B2Gold expects to generate significant free cash flow at prevailing metal prices, enabling us to reinvest in our business, fund our prospective exploration projects, and increase capital returns to shareholders."

One of Expert Chen Lin's 'Key Gold Producer Positions'

Commenting on the company's earnings on August 7, Chen Lin of What Is Chen Buying? What Is Chen Selling? said the company is one of his "key gold producer positions."

"Gold miners are running hard this week, mostly off index inflow. Earnings reports are pouring in," he said. "The company reported production slightly lower than the guidance, but with its costs reduced."

He continued, "Most importantly, all the 264 Koz prepaid gold was delivered in Q2, and its gold collar is going away in January 2027. At about 1 million ounces annual production, BTG will have a mountain of free cash flow coming."

As of August 11, analyst sentiment on B2Gold is broadly bullish, according to TipRanks. On August 10, two firms upgraded the stock to Buy: Scotiabank's Ovais Habib set a CA$10 target (about 83.82% upside), and CIBC's Anita Soni set a CA$10.46 target (about 92.36% upside). Bank of America's Lawson Winder was the outlier, assigning a Sell that same day with no published target. The Buy calls extended back through early August, with Stifel Nicolaus's Ralph Profiti reiterating a Buy at CA$10 (roughly 83.82% upside) on August 7, Raymond James's Judith Elliott reiterating a Buy the same day without a target, and Jefferies reiterating a Buy at CA$8.37 (about 53.89% upside) on July 5. The most cautious of the recent notes was RBC Capital's Josh Wolfson, who reiterated a Hold on July 8 while cutting his target to CA$6.98 from CA$8.02, still implying about 28.24% upside.

The Catalyst: Gold Is Regaining Momentum

Gold has regained momentum after suffering a sharp decline earlier in 2026, when the metal lost more than one-quarter of its value from its record high, according to an August 11 report by Karl Matchett for The Independent. Investors have faced an unusually difficult market environment amid inflation concerns linked to the Iran war, volatile currency markets, and mounting scrutiny of major companies’ spending on artificial intelligence.

Although gold traditionally benefits from periods of uncertainty, it also weakened alongside other assets during the first half of the year. The metal reached a record above US$5,600 per ounce in late January and remained above US$5,000 through mid-March before sliding to just below US$4,000 over the following five months, representing a decline of more than 28% from its peak. Gold has since rebounded, gaining 8% over the past week to reach US$4,373.

Jemma Slingo, investment expert at Fidelity International, said, "One of the stranger developments of recent days has been the pick-up in precious metals. After two months of outflows, gold ETFs attracted inflows in July, and the price of gold increased by more than 7% last week,” She added, “It is tricky to pin down exactly what is driving the bounce, which follows a tough few months for gold. The metal did not behave like a traditional safe haven during the early stages of the Middle East conflict, but the changing outlook for interest rates could be moving the dial. If the last year is anything to go by, however, investors should be prepared for a bumpy ride."

The prospect of higher interest rates in the U.S. and elsewhere could continue to limit gold demand because the non-yielding metal becomes less attractive when investors can earn greater returns by holding cash, while analysts remain divided over the Bank of England’s next policy move, Matchett wrote.

Gold prices are regaining momentum after falling roughly 30% from their January record above $5,600 an ounce, with renewed investor concerns about inflation and the Federal Reserve’s ability to contain price pressures helping revive demand for the precious metal, wrote Joseph Adinolfi and Philip van Doorn for MarketWatch on August 11.

Gold had spent much of the year retreating from its early-first-quarter surge as investors shifted toward semiconductor and other artificial-intelligence-related stocks. The metal eventually dropped below US$4,000 an ounce last month, but prices have rebounded in recent weeks as inflation concerns and questions about the Fed’s credibility have returned to the forefront.

Front-month August gold futures settled Thursday at US$4,242 an ounce, up US$192.90, or 4.8%, for the week and on pace for their strongest weekly percentage advance since the week ending February 6, according to Dow Jones Market Data. Gold has now posted gains in two of the past three weeks.

Noah Weisberger, chief strategist at BCA Research, told MarketWatch that the recent gains in gold and gold-mining shares reflected investors' "concerns over the forward outlook for inflation and inflation-fighting." He said those concerns could leave additional room for gold to climb, potentially reaching new record highs.

Ownership and Share Structure¹

About 1% of the company is held by Management and Insiders, and about 66% by institutions. The rest is in retail.

B2Gold has a market cap of CA$9.3 billion with 1.3 billion shares outstanding. It trades in a 52-week range of CA$4.81 and CA$8.60.