“A Good Time to Look at Passing the Baton” as B2Gold CEO Announces Retirement

B2 Gold CEO Transition & Future Outlook - Interview with Clive Johnson

Key Concepts:

• B2 Gold: A mid-tier gold producer transitioning leadership from Clive Johnson to Mike Cinnamon.
• Fakola Mine (Mali): Existing, highly successful mine with potential for significant production increase via regional ore trucking.
• Goose Project (Canada): New mine currently ramping up to full production capacity of 300,000 ounces per year.
• Gramalatte Project (Colombia): Development project with potential for 240,000 ounces per year production at current gold prices.
• All-in Sustaining Cost (AISC): A key metric in gold mining, representing the total cost of producing an ounce of gold.
• M&A (Mergers & Acquisitions): Strategy for growth through acquiring other companies or assets.
• Chairman Emeritus: A non-executive role allowing continued advisory involvement.
• CSR (Corporate Social Responsibility): Company’s commitment to operating ethically and contributing to the well-being of communities.

I. Leadership Transition & Legacy

Clive Johnson, President and CEO of B2 Gold for two decades, announced his retirement effective at the upcoming Annual General Meeting (AGM) in June. CFO Mike Cinnamon will assume the CEO role, while Kelvin Jashinsky will transition to Executive Chair. Johnson cited a desire to pass the baton to a strong team, including Cinnamon and Jashinsky, and secure his legacy. He emphasized the strength of the existing team and expressed confidence in their ability to continue building the company. He will remain involved as Chairman Emeritus, providing advice and attending key events.

Johnson highlighted fairness, respect, and transparency as core values driving B2 Gold’s success, emphasizing the company’s commitment to leaving a positive impact on the communities where it operates through social programs. He stated, “Our motto has always been fairness, respect and transparency. Can you be a mining company that really does those things? And I’m very comfortable we’ve done that around the world.”

II. Current Operations & Growth Strategy

B2 Gold has grown from a junior exploration company to a 1 million ounce per year gold producer. Key current projects driving future growth include:

• Goose Project (Canada): Currently in the ramp-up phase, expected to reach its design capacity of 300,000 ounces per year by the end of the current year. Initial issues with the crushing plant are being addressed, but the mill itself is performing well with expected grades and recoveries.
• Fakola Mine (Mali): A successful existing mine awaiting government permit approval for regional ore trucking to the Fakola mill. This is projected to increase production by 180,000 ounces per year, benefiting both B2 Gold and the Malian government (35% partner).
• Gramalatte Project (Colombia): A project requiring a permit modification currently under discussion with the government. At a gold price of $2,500/ounce, Gramalatte is considered a “no-brainer” investment, potentially adding 240,000 ounces per year to production. The project’s original scale of 400,000 ounces per year may be revisited if gold prices remain high.

III. Financial Performance & Valuation

Johnson believes B2 Gold is currently undervalued by the market. He attributes this to concerns surrounding the ramp-up of Goose, political noise regarding Mali, and a general wait-and-see approach from investors. He emphasized the importance of demonstrating successful production at Goose and securing the permit for regional ore trucking at Fakola to unlock value.

The company is in a strong financial position, with minimal debt (approximately $100 million drawn on a $800 million credit facility). At current gold prices, B2 Gold anticipates generating $750 million in free cash flow in the second half of the year, potentially doubling to $1.5 billion next year. This cash flow will be allocated to Fakola expansion, Goose ramp-up, and potentially the Gramalatte project. A share buyback program is underway, recognizing the undervaluation of the stock. The dividend, while already relatively high, will be reviewed alongside share buybacks.

IV. M&A and Future Expansion

While open to M&A opportunities, Johnson stated that current valuations do not favor acquisitions. He believes B2 Gold needs to first realize value from its existing assets before considering external growth. He envisions a potential path to 2 million ounces per year of production through a combination of organic growth (exploration, asset optimization) and strategic acquisitions. Quality is paramount when evaluating potential acquisitions. He noted, “We’re always looking for good quality projects projects or good quality companies. Quality is the key though when we look at things.”

V. Exploration & Sustainability

B2 Gold has a strong track record of successful exploration around its existing mines and through Greenfield exploration. Johnson emphasized the importance of exploration, stating, “The cheapest ounces are, as I always say, the cheapest out the ones you find.” Exploration will remain a priority, with a focus on both extending mine life and discovering new deposits.

The company is also committed to Corporate Social Responsibility (CSR), exemplified by the Rhino Gold Bar initiative, which funded black rhino conservation in Namibia. Johnson indicated potential for similar initiatives focused on other endangered species, such as polar bears and caribou.

VI. Political & Geopolitical Considerations

The interview addressed concerns regarding political stability in Mali, acknowledging media exaggeration of the challenges. Johnson emphasized B2 Gold’s positive experience operating in Mali since 2014, highlighting its safety and the country’s suitability for mining. He also noted the potential for a more business-friendly president in Colombia following the upcoming presidential election in August.

VII. Transition & Future Role of Clive Johnson

While stepping down as CEO, Johnson will remain actively involved as Chairman Emeritus, providing guidance to the new leadership team. He plans to spend more time with family and pursue personal interests, but remains passionate about the gold mining industry and may explore opportunities in exploration in the future.

Conclusion:

B2 Gold is undergoing a planned leadership transition with a strong foundation for continued growth. The company’s focus on maximizing value from existing assets – Goose, Fakola, and Gramalatte – coupled with its commitment to exploration and responsible mining practices, positions it for future success. Addressing market perceptions regarding valuation and geopolitical risks will be key to unlocking the company’s full potential. The transition appears well-managed, with Clive Johnson remaining engaged to ensure a smooth handover and continued strategic direction.