Q2 FY2026
Filed Aug 6, 2026B2Gold Reports Q2 2026 Results; Strong Operating Performance at the Fekola, Masbate, and Otjikoto Mines led to Higher than Expected Gold Production and Lower than Expected All-In Sustaining Costs; Menankoto Exploitation Permit Expected to be Issued in the Near-Term by the State of Mali
Fekola, Masbate and Otjikoto outperformed operational expectations and consolidated costs were lower than anticipated, but Goose production was affected by the crushing-circuit fire, free cash flow was negative, and consolidated 2026 production guidance was narrowed through lower Fekola and Goose ranges.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Gold revenueother | 789,354 ($ in thousands) | – | – |
| Total cost of salesother | (481,069) ($ in thousands) | – | – |
| Gross profitother | 308,285 ($ in thousands) | – | – |
| General and administrativeother | (18,642) ($ in thousands) | – | – |
| Share-based paymentsother | (5,798) ($ in thousands) | – | – |
| Gain on sale of mining interestsother | 292,374 ($ in thousands) | – | – |
| Write-off of plant and equipmentother | (49,713) ($ in thousands) | – | – |
| Operating incomeother | 521,503 ($ in thousands) | – | – |
| Income from operations before taxesother | 627,139 ($ in thousands) | – | – |
| Current income tax, withholding and other taxesother | (179,857) ($ in thousands) | – | – |
| Deferred income tax expenseother | (27,662) ($ in thousands) | – | – |
| Net income for the periodother | 419,620 ($ in thousands) | – | – |
| Net income attributable to shareholders of the Companyother | 417,334 ($ in thousands) | – | – |
| Earnings per share, basicother | $ 0.31 | – | – |
| Earnings per share, dilutedother | $ 0.29 | – | – |
| Adjusted net income attributable to shareholders of the Companynon-GAAP | 40,881 ($ in thousands) | – | – |
| Adjusted earnings per share, basicnon-GAAP | $ 0.03 | – | – |
| Cash flow provided by operating activities before working capital adjustmentsother | $94 million | – | – |
| Cash used by operating activitiesother | (78,755) ($ in thousands) | – | – |
| Free cash flownon-GAAP | (257,516) ($ in thousands) | – | – |
| Gold soldother | 209,537 ounces | – | – |
| Gold produced including pre-commercial production from Gooseother | 203,648 ounces | – | – |
| Gold produced excluding pre-commercial production from Gooseother | 203,648 ounces | – | – |
| Average realized gold priceother | $3,767 per ounce | – | – |
| Production costsother | 236,211 ($ in thousands) | – | – |
| Cash operating costs per gold ounce soldnon-GAAP | $1,127 per gold ounce sold | – | – |
| Cash operating costs per gold ounce producednon-GAAP | $1,201 per gold ounce produced | – | – |
| Total cash costs per gold ounce soldnon-GAAP | $1,642 per gold ounce sold | – | – |
| All-in sustaining costs per gold ounce soldnon-GAAP | $2,356 per gold ounce sold | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Fekola ComplexGold production was 116,281 ounces, higher than anticipated due to higher mill throughput and higher mill feed grade. Delays in the Menankoto Exploitation Permit reduced anticipated Fekola Regional production in the second half of 2026. | 518,048 ($ in thousands) | – | – |
| Goose MineGold production was 12,890 ounces, lower than anticipated due to lower mill throughput following the previously announced fire in certain areas of the crushing circuit, partially offset by higher than expected mill feed grade. | 77,696 ($ in thousands) | – | – |
| Masbate MineGold production was 51,039 ounces, higher than anticipated primarily due to higher mill throughput and gold recoveries. Lower processing costs also reduced cash operating costs versus expectations. | 244,777 ($ in thousands) | – | – |
| Otjikoto MineGold production was 23,438 ounces, higher than anticipated primarily due to higher average mill feed grade from greater ore volumes than expected from higher grade underground sources. | 96,704 ($ in thousands) | – | – |
2026 Guidance (100% Basis) outlook
- NoteTotal Gold Production: 820 - 920 koz
- NoteFekola Complex Gold Production: 390 - 420 koz
- NoteMasbate Gold Production: 180 - 200 koz
- NoteOtjikoto Gold Production: 80 - 100 koz
- NoteGoose Gold Production: 170 - 200 koz
- NoteTotal Cash Operating Costs: $1,155 - $1,280 per gold ounce produced
- NoteFekola Complex Cash Operating Costs: $1,060 - $1,160 per gold ounce produced
- NoteMasbate Cash Operating Costs: $900 - $1,000 per gold ounce produced
- NoteOtjikoto Cash Operating Costs: $1,200 - $1,300 per gold ounce produced
- NoteGoose Cash Operating Costs: $1,610 - $1,810 per gold ounce produced
- NoteTotal All-In Sustaining Costs: $2,370 - $2,550 per gold ounce sold
- NoteFekola Complex All-In Sustaining Costs: $2,670 - $2,820 per gold ounce sold
- NoteMasbate All-In Sustaining Costs: $1,430 - $1,580 per ounce sold
- NoteOtjikoto All-In Sustaining Costs: $1,830 - $1,980 per ounce sold
- NoteGoose All-In Sustaining Costs: $2,670 - $2,970 per gold ounce sold
- NoteEstimates are based on a $5,000 per oz gold price assumption for 2026.
- NoteThe Company believes consolidated all-in sustaining costs for 2026 will be at or below the low-end of this updated guidance range.
Capital returns
- During the second quarter of 2026, the Company repurchased a total of 19 million shares for $92 million.
- The Company has already repurchased 35 million shares to date in 2026 for a total of $172 million.
- Q3 2026 cash dividend declared of $0.02 per common share, payable on September 23, 2026, to shareholders of record as of September 10, 2026.
- The Q3 2026 dividend is described as an expected $0.08 per share on an annualized basis.
- Dividends paid were (25,948) ($ in thousands) in the second quarter of 2026 and (25,959) ($ in thousands) in the second quarter of 2025.
What drove it
- Consolidated gold production of 203,648 ounces was in line with expectations, as higher than anticipated production at Fekola, Masbate and Otjikoto offset lower than anticipated Goose production.
- Consolidated cash operating costs of $1,201 per gold ounce produced were lower than anticipated, mainly due to lower than expected processing costs at Masbate.
- Consolidated all-in sustaining costs of $2,356 per gold ounce sold were lower than anticipated due to lower than expected production costs and lower than expected sustaining capital expenditures.
- The final delivery of all 264,768 ounces into the Gold Prepay contracts was completed as of June 30, 2026. The Company stated that all future gold sales are expected at spot prices.
- The sale of the 70% interest in Fingold to Agnico Eagle for cash consideration of $325 million closed on April 23, 2026.
- Reported net income included a gain on sale of mining interests of $292 million and unrealized gains on derivative instruments of $135 million. Adjusted net income included $71 million of realized losses on the Company's gold collars.
Concerns
- The Goose crushing-circuit fire reduced second-quarter mill throughput and production. Repairs are expected to be completed in the third quarter of 2026 at a cost of approximately $13 million, excluding the purchase of the additional mobile crusher.
- Goose all-in sustaining costs were $6,390 per gold ounce sold, higher than anticipated because of lower than expected gold ounces sold and higher than expected sustaining capital expenditures.
- Consolidated free cash flow was (257,516) ($ in thousands), driven mainly by higher cash tax payments, including a higher priority dividend paid to the State of Mali, the Gold Prepay impact, and higher production costs.
- The Menankoto Exploitation Permit remained pending approval by the Council of Ministers of Mali. The delay reduced Fekola Complex production guidance.
- The Company recorded a write-off of plant and equipment of (49,713) ($ in thousands).
- Final settlement of the gold collar contracts will be completed in January 2027.
What to watch
- Approval of the Menankoto Exploitation Permit by the Council of Ministers of Mali and the start of mining pre-stripping activities at Fekola Regional.
- Completion of Goose crushing-circuit repairs in the third quarter of 2026 and the targeted average daily crushing capacity of approximately 3,200 tonnes per day by the end of the third quarter of 2026.
- Implementation of Goose phase-two crushing upgrades by the end of the first half of 2027, with targeted average crushing capacity of 4,000 tonnes per day.
- The anticipated improvement in free cash flow in the second half of 2026 after Gold Prepay deliveries were completed.
- Execution against revised consolidated production guidance of 820 - 920 koz and the Company's expectation for consolidated all-in sustaining costs at or below the low end of the updated range.
- Masbate and Otjikoto maintaining strong first-half operating performance through year-end.
Balance sheet and cash flow
- Cash and cash equivalents were $287 million at June 30, 2026.
- Working capital was $405 million at June 30, 2026.
- Cash and cash equivalents were $ 286,576 at June 30, 2026, versus $ 380,424 at December 31, 2025.
- Long-term debt was $ 423,478 at June 30, 2026, versus $ 564,440 at December 31, 2025.
- The Company repaid $75 million on its $800 million revolving credit facility during the second quarter, leaving the full $800 million available for future drawdowns as of June 30, 2026.
- During the first half of 2026, the Company repaid a net $150 million on the revolving credit facility.
- Subsequent to June 30, 2026, the Company drew down $95 million under the revolving credit facility to fund working capital initiatives, predominantly the purchase of annual fuel requirements for Goose.
- Cash proceeds on sale of mining interest, net of transaction costs, were 324,892 ($ in thousands) in the second quarter of 2026.
- Cash used by financing activities was (268,040) ($ in thousands) in the second quarter of 2026.
- Cash provided by investing activities was 157,010 ($ in thousands) in the second quarter of 2026.
Analysis
B2Gold reported gold revenue of 789,354 ($ in thousands) and net income attributable to shareholders of the Company of 417,334 ($ in thousands), or $ 0.31 basic earnings per share. The reported result was materially affected by a 292,374 ($ in thousands) gain on sale of mining interests and unrealized gains on derivative instruments of 135,472 ($ in thousands) in the adjusted-net-income reconciliation. Adjusted net income attributable to shareholders was 40,881 ($ in thousands), or $ 0.03 per share, versus 162,839 ($ in thousands), or $ 0.12 per share, in the prior-year quarter.
Operations were led by higher-than-anticipated production at Fekola, Masbate and Otjikoto. Consolidated production was 203,648 ounces, while consolidated cash operating costs were $1,201 per gold ounce produced and consolidated all-in sustaining costs were $2,356 per gold ounce sold. Masbate delivered 51,039 ounces and $804 per ounce produced cash operating costs, while Otjikoto produced 23,438 ounces at $1,190 per ounce produced. Fekola produced 116,281 ounces and generated 518,048 ($ in thousands) of gold revenue, although its full-year production range was reduced because of delays to the Menankoto Exploitation Permit.
Goose remained the principal operating drag. The crushing-circuit fire reduced throughput, resulting in production of 12,890 ounces. Goose incurred cash operating costs of $2,935 per gold ounce produced and all-in sustaining costs of $6,390 per gold ounce sold. The Company expects repairs to be completed in the third quarter of 2026 and has outlined further crusher upgrades through the end of the first half of 2027. Goose's full-year production range was narrowed to 170 - 200 koz from 170 - 230 koz.
Cash generation lagged operating performance. Cash used by operating activities was (78,755) ($ in thousands), and free cash flow was (257,516) ($ in thousands). Management attributed the free cash outflow principally to higher cash tax payments, the Gold Prepay impact and higher production costs. The Company completed delivery of all 264,768 ounces under the Gold Prepay by June 30, 2026 and stated that free cash flow is anticipated to improve in the second half of 2026 relative to the second quarter. The Fingold sale generated $325 million of cash consideration, and the Company reported $287 million of cash and cash equivalents and $405 million of working capital.
Capital allocation included $92 million used to repurchase 19 million shares in the quarter, bringing year-to-date repurchases to 35 million shares for $172 million, alongside a declared Q3 2026 dividend of $0.02 per common share. Consolidated 2026 production guidance was narrowed to 820 - 920 koz from 820 - 970 koz. Cash operating cost guidance was unchanged at $1,155 - $1,280 per gold ounce produced, while all-in sustaining cost guidance was lowered to $2,370 - $2,550 per gold ounce sold from $2,400 - $2,580 per gold ounce sold. The permit decision in Mali, Goose repair execution and the stated second-half free-cash-flow improvement are the central reported milestones.
Management, verbatim
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.
Mike Cinnamond, President and CEO of B2Gold
Receipt of the Menankoto Exploitation Permit 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.
Mike Cinnamond, President and CEO of B2Gold
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.
Mike Cinnamond, President and CEO of B2Gold
Not in the filing
stated, not guessed- Gross margin was not printed.
- GAAP or IFRS operating margin was not printed.
- A percentage year-over-year change was not printed for reported financial, operating, cash-flow, or segment metrics.
- Prior-quarter figures were not printed for reported financial, operating, cash-flow, or segment metrics.
- Revenue guidance was not provided.
- Gross-margin guidance was not provided.
- Operating-expense guidance was not provided.
- Tax-rate guidance was not provided.
- A prior-release outlook section was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.