B2Gold up 22% as it receives green light for Mali – The Armchair Trader

B2Gold TSX:BTO has cleared a major hurdle in Mali, securing an exploitation permit for the Menankoto deposit that forms part of its Fekola Regional expansion, just as stronger-than-expected second-quarter operating performance gives investors fresh reasons to look beyond near-term challenges.

The permit, granted by the State of Mali on Friday, covers Menankoto, alongside the Dandoko exploration permit, and gives B2Gold a clearer route to expanding the Fekola complex. Fekola Regional, about 20km from the existing Fekola mine, is expected to ramp up through the end of 2027 and produce more than 150,000 ounces of gold a year from 2028 into the mid-2030s.

The development is particularly significant because permitting delays had been holding back the regional operation and forced B2Gold to revise its 2026 production expectations.

The company now expects consolidated production of 820,000-920,000 ounces, compared with its previous range of 820,000-970,000 ounces. Despite the lower production ceiling, full-year all-in sustaining cost guidance has improved to $2,370-$2,550 an ounce from $2,400-$2,580.

The Mali agreement also gives the project a defined ownership structure: B2Gold will hold 65% of Fekola Regional, with the State of Mali owning 35%. The existing Fekola mine is owned 80% by B2Gold and 20% by the state.

A quarter that delivered for B2Gold

The permit announcement came alongside a solid second-quarter update. B2Gold produced 203,648 ounces of gold in the three months to June, while revenue rose to $789m from $692m a year earlier. The average realised gold price climbed to $3,767 an ounce, compared with $3,290 in the same quarter of 2025.

Performance at Fekola, Masbate in the Philippines and Otjikoto in Namibia was stronger than expected. Fekola produced 116,281 ounces, helped by higher mill throughput and feed grades, while its quarterly all-in sustaining cost of $2,289 an ounce was below expectations.

The company also strengthened its balance sheet by completing the $325m sale of its 70% interest in Fingold Ventures to Agnico Eagle Mines. It repaid $150m of its revolving credit facility during the first half, leaving the full $800m facility available at the end of June, although it subsequently drew $95m, largely to fund fuel requirements for its Goose mine in Canada.

Goose remains the main operational wrinkle. A fire in its crushing circuit curtailed second-quarter output, but repairs are expected to finish in the third quarter. B2Gold expects the mine to produce 170,000-200,000 ounces this year.

Investors appeared to welcome the combination of operational delivery and the Mali breakthrough. B2Gold shares closed 22% higher on Friday, reflecting the value the market places on the removal of a key permitting risk.

Is B2Gold a good bet?

For investors, the appeal is increasingly straightforward: B2Gold has converted a long-standing uncertainty around Fekola Regional into a visible production opportunity, while its existing mines are demonstrating encouraging execution. The lower 2026 production range is not ideal, and Goose still needs to prove that its recovery plan can translate into reliable output.

But with gold prices high, the Fekola permit secured and capital flexibility improving, the balance of risk and reward looks considerably more attractive than it did a few months ago. The 22% share-price jump suggests the market agrees, although after such a sharp rerating, investors may reasonably want to see the promised ounces arrive before chasing the stock higher.