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B2Gold Reports Q3 2024 Results; On Track to Meet Total 2024 Gold Production Revised Guidance; Year-To-Date Cash Operating Costs within Annual Guidance Range and Year-To-Date All-In Sustaining Costs Below Revised Annual Guidance Range

06.11.2024 by admin

VANCOUVER, British Columbia, Nov. 06, 2024 (GLOBE NEWSWIRE) — B2Gold Corp. BTOBTG NSX: B2G)) (“B2Gold” or the “Company”) announces its operational and financial results for the third quarter of 2024. All dollar figures are in United States dollars unless otherwise indicated.

2024 Third Quarter Highlights

Total gold production of 180,553 ounces: Total gold production in the third quarter of 2024 was 180,553 ounces. At the Fekola Mine, production was lower than expected due to the delayed timing of mining high-grade ore and by lower than anticipated equipment productivity and inclement weather throughout the quarter that reduced the mined volumes of high-grade ore. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability at Fekola, reducing tonnes mined in the first and second quarters of 2024, which affected the availability of higher-grade ore for the third quarter of 2024. Masbate and Otjikoto both continued to outperform expectations in the third quarter.
Total consolidated cash operating costs of $1,061 per gold ounce produced: Total consolidated cash operating costs (see “Non-IFRS Measures”) were $1,061 per gold ounce produced during the third quarter of 2024. Total consolidated cash operating costs of $865 per gold ounce produced for the first nine months of 2024 are at the mid-point of the Company’s annual guidance range.
Total consolidated all-in sustaining costs of $1,650 per gold ounce sold: Total consolidated all-in sustaining costs (see “Non-IFRS Measures”) were $1,650 per gold ounce sold for the third quarter of 2024. Total consolidated all-in sustaining costs of $1,405 per gold ounce sold for the first nine months of 2024 are below the Company’s revised annual guidance range.
Attributable net loss of $0.48 per share; adjusted attributable net income of $0.02 per share: Net loss attributable to the shareholders of the Company in the third quarter of 2024 of $634 million ($0.48 per share), predominantly due to a non-cash impairment charge on the Goose Project as a result of the previously announced construction capital increases (see “Goose Project Development”). Adjusted net income (see “Non-IFRS Measures”) attributable to the shareholders of the Company was $29 million ($0.02 per share). Adjusted net income attributable to the shareholders of the Company in the third quarter was negatively impacted by one-time tax audit accruals of $30 million related to the agreement between the Company and the State of Mali in connection with the ongoing operation and governance of the Fekola Complex.
Operating cash flow before working capital adjustments of $118 million: Cash flow provided by operating activities before working capital adjustments was $118 million in the third quarter of 2024.
Strong financial position and liquidity: At September 30, 2024, the Company had cash and cash equivalents of $431 million and working capital (defined as current assets less current liabilities) of $419 million.
Q4 2024 dividend of $0.04 per share declared: On November 6, 2024, B2Gold’s Board of Directors declared a cash dividend for the fourth quarter of 2024 of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.
Goose Project construction and development remains on schedule for first gold pour in Q2 2025: All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 cubic meters (“m³“) of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road (“WIR”) campaign to the Marine Laydown Area (“MLA”) from global locations.
Memorandum of Understanding with the State of Mali relating to the Fekola Complex: On September 11, 2024, the Company announced that it had entered into a Memorandum of Understanding (the “MOU Agreement”) with the State of Mali (the “State”) in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine (owned 80% by B2Gold and 20% by the State of Mali) and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase for Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.

Third Quarter 2024 Results

	Three months ended		Nine months ended
	September 30,		September 30,
	2024	2023	2024	2023

Gold revenue ($ in thousands)	448,229	477,888	1,402,242	1,422,298
Net (loss) income ($ in thousands)	(631,032)	(34,770)	(617,328)	158,984
(Loss) earnings per share – basic⁽¹⁾ ($/ share)	(0.48)	(0.03)	(0.47)	0.10
(Loss) earnings per share – diluted⁽¹⁾ ($/ share)	(0.48)	(0.03)	(0.47)	0.10
Cash (used) provided by operating activities ($ thousands)	(16,099)	110,204	757,060	509,010
Average realized gold price ($/ ounce)	2,483	1,920	2,285	1,929
Adjusted net income⁽¹⁾⁽²⁾ ($ in thousands)	29,157	64,840	189,109	256,506
Adjusted earnings per share⁽¹⁾⁽²⁾ – basic ($)	0.02	0.05	0.14	0.21
*Consolidated operations results:*
Gold sold (ounces)	180,525	248,889	613,731	737,139
Gold produced (ounces)	180,553	225,052	599,133	721,732
Production costs ($ in thousands)	192,408	171,425	500,452	451,791
Cash operating costs⁽²⁾ ($/ gold ounce sold)	1,066	689	815	613
Cash operating costs⁽²⁾ ($/ gold ounce produced)	1,061	741	852	638
Total cash costs⁽²⁾ ($/ gold ounce sold)	1,248	827	972	752
All-in sustaining costs⁽²⁾ ($/ gold ounce sold)	1,650	1,273	1,400	1,177
*Operations results including equity investment in Calibre:*
Gold sold (ounces)	180,525	266,616	633,375	787,805
Gold produced (ounces)	180,553	242,838	618,777	772,395
Production costs ($ in thousands)	192,408	188,216	525,578	502,162
Cash operating costs⁽²⁾ ($/ gold ounce sold)	1,066	706	830	637
Cash operating costs⁽²⁾ ($/ gold ounce produced)	1,061	755	865	661
Total cash costs⁽²⁾ ($/ gold ounce sold)	1,248	840	984	772
All-in sustaining costs⁽²⁾ ($/ gold ounce sold)	1,650	1,272	1,405	1,182

^{(1) Attributable to the shareholders of the Company.}
^{(2) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.}

Liquidity and Capital Resources

B2Gold continues to maintain a strong financial position and liquidity. At September 30, 2024, the Company had cash and cash equivalents of $431 million (December 31, 2023 – $307 million) and working capital (defined as current assets less current liabilities) of $419 million (December 31, 2023 – $397 million). During the quarter ended September 30, 2024, the Company drew down $200 million on the Company’s $700 million revolving credit facility, leaving $500 million remaining available for future draw downs.

Fourth Quarter 2024 Dividend

On November 6, 2024, B2Gold’s Board of Directors declared a cash dividend for the fourth quarter of 2024 (the “Q4 2024 Dividend”) of $0.04 per common share (or upon payment $0.16 per share on an annualized basis), payable on December 12, 2024, to shareholders of record as of December 2, 2024.

In 2023, the Company implemented a Dividend Reinvestment Plan (“DRIP”). For the purposes of the Q4 2024 Dividend, the Company is pleased to announce that a discount of 3% will be applied to calculate the Average Market Price (as defined in the DRIP) of its common shares issued from treasury. However, the Company may, from time to time, in its discretion, change or eliminate any applicable discount, which would be publicly announced, all in accordance with the terms and conditions of the DRIP. Participation in the DRIP is optional. In order to participate in the DRIP in time for the Q4 2024 Dividend, registered shareholders must deliver a properly completed enrollment form to Computershare Trust Company of Canada by no later than 4:00 p.m. (Toronto time) on December 5, 2024. Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution, or other intermediary through which they hold common shares well in advance of the above date for instructions on how to enroll in the DRIP.

This dividend is designated as an “eligible dividend” for the purposes of the Income Tax Act (Canada). Dividends paid by B2Gold to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes.

The declaration and payment of future dividends and the amount of any such dividends will be subject to the determination of the Board, in its sole and absolute discretion, taking into account, among other things, economic conditions, business performance, financial condition, growth plans, expected capital requirements, compliance with B2Gold’s constating documents, all applicable laws, including the rules and policies of any applicable stock exchange, as well as any contractual restrictions on such dividends, including any agreements entered into with lenders to the Company, and any other factors that the Board deems appropriate at the relevant time. There can be no assurance that any dividends will be paid at the intended rate or at all in the future.

For more information regarding the DRIP and enrollment in the DRIP, please refer to the Company’s website at https://www.b2gold.com/investors/stock_info/.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

The Company has filed a registration statement relating to the DRIP with the U.S. Securities and Exchange Commission that may be obtained under the Company’s profile on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov/EDGAR or by contacting the Company using the contact information at the end of this news release.

Operations

Fekola Complex – Mali

	Three months ended		Nine months ended
	September 30,		September 30,
	2024	2023	2024	2023

Gold revenue ($ in thousands)	194,988	292,375	721,898	888,272
Gold sold (ounces)	78,889	152,239	318,005	460,139
Average realized gold price ($/ ounce)	2,472	1,921	2,270	1,930
Tonnes of ore milled	2,466,087	2,392,829	7,449,327	6,988,763
Grade (grams/ tonne)	1.07	1.82	1.40	2.17
Recovery (%)	92.7	92.1	92.7	91.9
Gold production (ounces)	78,207	128,942	308,931	447,233
Production costs ($ in thousands)	109,857	93,388	276,443	250,294
Cash operating costs⁽¹⁾ ($/ gold ounce sold)	1,393	613	869	544
Cash operating costs⁽¹⁾ ($/ gold ounce produced)	1,434	688	935	561
Total cash costs⁽¹⁾ ($/ gold ounce sold)	1,653	773	1,066	706
All-in sustaining costs⁽¹⁾ ($/ gold ounce sold)	2,287	1,261	1,583	1,125
Capital expenditures ($ in thousands)	64,464	83,166	198,205	211,112
Exploration ($ in thousands)	996	—	3,136	1,706

^{(1) Non-IFRS measure. For a description of how these measures are calculated and a reconciliation of these measures to the most directly comparable measures specified, defined or determined under IFRS and presented in the Company’s financial statements, refer to “Non-IFRS Measures”.}

The Fekola Mine in Mali (owned 80% by the Company and 20% by the State of Mali) produced 78,207 ounces of gold in the third quarter of 2024, below expectations due to the delayed timing of mining of high-grade ore resulting in less high-grade ore processed during the quarter. For the third quarter of 2024, mill feed grade was 1.07 grams per tonne (“g/t”), mill throughput was 2.47 million tonnes, and gold recovery averaged 92.7%. Lower than anticipated equipment productivity and inclement weather throughout the quarter impacted the mined volumes of high-grade ore during the third quarter of 2024. Damage to an excavator and the subsequent need for replacement equipment impacted equipment availability for the first nine months of 2024, reducing tonnes mined during the first and second quarters of 2024, which affected the availability of higher-grade ore of Phase 7 of the Fekola pit resulting in less high-grade ore processed during the third quarter of 2024. The damaged machine has been replaced and the new unit operated for the full third quarter of 2024. The reduction in mining rates experienced in the first nine months of 2024 is expected to continue to impact the availability of higher-grade ore from Phase 7 of the Fekola pit during the fourth quarter of 2024 resulting in an expected decrease in Fekola production as compared to initial production estimates. Mining and processing of these ounces is now expected in the first quarter of 2025. Despite short term variations, overall, ore volumes and grades continue to reconcile relatively well with modelled values.

The Fekola Mine’s cash operating costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $1,434 per gold ounce produced ($1,393 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were higher than expected as a result of lower than anticipated gold production during the third quarter, partially offset by lower fuel costs, higher mill throughput, higher gold recovery and lower mining costs due to lower than expected mined tonnage.

All-in sustaining costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $2,287 per gold ounce sold. All-in sustaining costs were higher than expected as a result of higher than anticipated production costs per gold ounce sold, lower than expected gold ounces sold, higher than anticipated sustaining capital expenditures due to the timing of expenditures and higher gold royalties resulting from a higher than anticipated average realized gold price.

Capital expenditures in the third quarter of 2024 totalled $64 million primarily consisting of $12 million for deferred stripping, $10 million for mobile equipment purchases and rebuilds, $7 million for the construction of a new tailings storage facility, $20 million for Fekola underground development and $11 million for solar plant expansion. All solar panels, inverters, transformers and the tracking system have been installed for the solar plant expansion and the solar field was energized on September 29, 2024. Commissioning has continued with final completion of the solar plant expansion expected by the end of November 2024.

As a result of the delay in accessing higher-grade ounces from Phase 7 of the Fekola pit, production from the Fekola Complex is expected to be towards the low end of Fekola’s revised guidance range of between 420,000 and 450,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be towards the upper ends of their respective revised guidance ranges of between $870 and $930 per ounce and $1,510 and $1,570 per ounce.

Fekola Regional Development

The Fekola Complex is comprised of the Fekola Mine (Medinandi permit hosting the Fekola and Cardinal pits and Fekola underground) and Fekola Regional (Anaconda Area (Bantako, Menankoto, and Bakolobi permits) and the Dandoko permit).

The development of Fekola Regional is expected to demonstrate positive economics through the enhancement of the overall production profile and the extension of mine life of the Fekola Complex. Based on B2Gold’s preliminary planning, Fekola Regional could provide selective higher-grade saprolite material (average annual grade of up to 2.2 g/t gold) to be trucked approximately 20 kilometers (“km”) and fed into the Fekola mill at a rate of up to 1.5 million tonnes per annum.

On September 11, 2024, the Company announced the MOU Agreement with the State in connection with the ongoing operation and governance of the Fekola Complex, including the development of both the underground project at the Fekola Mine and Fekola Regional. Under the MOU Agreement, the State agreed to expedite the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase of Fekola underground. Upon issuance of the exploitation permit for Fekola Regional, mining operations will begin with initial gold production expected to commence in early 2025, with the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources through the trucking of open pit ore to the Fekola mill. Initial gold production from Fekola underground is expected to commence in mid-2025.

Masbate Mine – The Philippines

	Three months ended		Nine months ended
	September 30,		September 30,
	2024	2023	2024	2023

Gold revenue ($ in thousands)	120,115	97,556	328,165	265,839
Gold sold (ounces)	47,960	50,950	142,260	137,300
Average realized gold price ($/ ounce)	2,504	1,915	2,307	1,936
Tonnes of ore milled	2,197,112	2,155,170	6,409,631	6,224,572
Grade (grams/ tonne)	0.98	1.01	0.97	0.99
Recovery (%)	72.4	73.0	72.4	73.6
Gold production (ounces)	50,215	51,170	144,512	147,012
Production costs ($ in thousands)	42,697	44,056	123,070	117,219
Cash operating costs⁽¹⁾ ($/ gold ounce sold)	890	865	865	854
Cash operating costs⁽¹⁾ ($/ gold ounce produced)	811	834	839	844
Total cash costs⁽¹⁾ ($/ gold ounce sold)	1,039	993	1,002	979
All-in sustaining costs⁽¹⁾ ($/ gold ounce sold)	1,167	1,124	1,174	1,152
Capital expenditures ($ in thousands)	5,192	5,896	20,229	20,947
Exploration ($ in thousands)	1,290	774	3,039	2,741

The Masbate Mine in the Philippines continued its strong performance with third quarter of 2024 gold production of 50,215 ounces, above expectations due to higher mill throughput and higher than expected mill feed grade. For the third quarter of 2024, mill feed grade was 0.98 g/t, mill throughput was 2.20 million tonnes, and gold recovery averaged 72.4%, lower than expected. Lower gold recovery in the third quarter was a result of mining additional lower recovery high-grade sulphide ore during the third quarter. Actual gold recovery for the third quarter of 2024 remained in line with modeled recovery values for the ore mined.

The Masbate Mine’s cash operating costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $811 per gold ounce produced ($890 per gold ounce sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were significantly lower than expected as a result of higher gold production, lower than anticipated mining and processing costs, higher mill productivity and lower fuel costs.

All-in sustaining costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $1,167 per ounce sold. All-in sustaining costs for the third quarter of 2024 were significantly lower than expected as a result of lower than anticipated production costs per gold ounce sold, higher than expected gold ounces sold and lower than expected sustaining capital expenditures.

Capital expenditures in the third quarter of 2024 totalled $5 million, primarily consisting of $2 million for mobile equipment purchases and rebuilds and $1 million for expansion of the existing tailings storage facility.

The Masbate Mine is expected to produce between 175,000 and 195,000 ounces of gold in 2024. Cash operating costs and all-in sustaining costs are expected to be at or below the low end of their respective revised guidance ranges of between $910 and $970 per ounce and $1,260 and $1,320 per ounce.

Otjikoto Mine – Namibia

	Three months ended		Nine months ended
	September 30,		September 30,
	2024	2023	2024	2023

Gold revenue ($ in thousands)	133,126	87,957	352,179	268,187
Gold sold (ounces)	53,676	45,700	153,466	139,700
Average realized gold price ($/ ounce)	2,480	1,925	2,295	1,920
Tonnes of ore milled	872,722	855,740	2,549,847	2,554,747
Grade (grams/ tonne)	1.88	1.66	1.80	1.57
Recovery (%)	98.8	98.4	98.6	98.6
Gold production (ounces)	52,131	44,940	145,690	127,487
Production costs ($ in thousands)	39,854	33,981	100,939	84,278
Cash operating costs⁽¹⁾ ($/ gold ounce sold)	742	744	658	603
Cash operating costs⁽¹⁾ ($/ gold ounce produced)	740	785	687	671
Total cash costs⁽¹⁾ ($/ gold ounce sold)	841	820	749	680
All-in sustaining costs⁽¹⁾ ($/ gold ounce sold)	896	1,178	963	1,074
Capital expenditures ($ in thousands)	609	13,290	26,128	46,266
Exploration ($ in thousands)	1,888	963	5,191	2,453

The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, continued to outperform during the third quarter of 2024, producing 52,131 ounces of gold, above expectations as a result of higher than anticipated mill feed grade and higher than expected mill throughput. For the third quarter of 2024, mill feed grade was 1.88 g/t, mill throughput was 0.87 million tonnes, and gold recovery averaged 98.8%. Ore production from the Wolfshag underground mine for the third quarter of 2024 averaged over 1,800 tonnes per day at an average grade of 3.64 g/t gold.

The Otjikoto Mine’s cash operating costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $740 per gold ounce produced ($742 per ounce gold sold). Cash operating costs per gold ounce produced for the third quarter of 2024 were lower than anticipated due to higher than expected gold production in the third quarter of 2024.

All-in sustaining costs (see “Non-IFRS Measures”) for the third quarter of 2024 were $896 per gold ounce sold. All-in sustaining costs for the third quarter of 2024 were lower than expected as a result of lower than expected cash operating costs and higher gold ounces sold, partially offset by higher gold royalties due to a higher than anticipated average realized gold price.

Capital expenditures for the third quarter of 2024 totalled $1 million for Wolfshag underground mine development.

The Otjikoto Mine is expected to produce between 185,000 and 205,000 ounces of gold in 2024 at cash operating costs of between $685 and $745 per ounce and all-in sustaining costs at or below the lower end of its guidance range of between $960 and $1,020 per ounce.

Goose Project Development

The Back River Gold District consists of five mineral claims blocks along an 80 km belt. Construction is underway at the most advanced project in the district, the Goose Project, and has been de-risked with significant infrastructure currently in place.

B2Gold recognizes that respect and collaboration with the Kitikmeot Inuit Association (“KIA”) is central to the license to operate in the Back River Gold District and will continue to prioritize developing the project in a manner that recognizes Inuit priorities, addresses concerns, and brings long-term socio-economic benefits to the Kitikmeot Region. B2Gold looks forward to continuing to build on its strong collaboration with the KIA and Kitikmeot Communities.

As announced in May 2024, development of the open pit and underground was slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and the prioritization of critical path construction activities. An additional three months of mining was added to the schedule to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit. With the schedule change, the mill is expected to start wet commissioning in the second quarter of 2025 with ramp up to full production in the third quarter of 2025. The Company continues to estimate that gold production in calendar year 2025 will be between 120,000 ounces and 150,000 ounces. The updated production profile has resulted in the Company now estimating that average annual gold production for the six year period from 2026 to 2031 will increase to be in excess of 310,000 ounces per year. The Company remains on track to complete an updated Goose Project life of mine plan by the end of the first quarter of 2025.

B2Gold successfully completed the 2024 WIR campaign in the second quarter of 2024 and delivered all necessary materials from the MLA to complete the construction of the Goose Project. All planned construction year to date in 2024 has been completed and project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025 followed by ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 m³ of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 WIR campaign to the MLA from global locations. Sealift offloading performance significantly increased throughout the 2024 sealift due to a newly constructed barge ramp. Current activities at the MLA now include continued maintenance and preparation of the WIR construction and haulage fleet and staging all materials for shipment on the 2025 WIR to the Goose Project site.

Development of the open pit and underground remain the Company’s primary focus to ensure that adequate material is available for mill startup and that the Echo pit is available for tailings placement. Mining of the Echo pit is meeting production targets and is anticipated to be ready to receive tailings when the mill starts. The underground mine remains on schedule for commencement of production by the end of the second quarter of 2025.

In the third quarter and first nine months of 2024, the Company incurred cash expenditures of $121 million (C$165 million) and $366 million (C$498 million), respectively, for the Goose Project on construction and mine development activities and $110 million (C$150 million) and $155 million (C$211 million), respectively, on supplies inventory.

As announced on September 12, 2024, the total Goose Project construction, mine development, and sustaining capital cash expenditures estimate (the “Total Goose Project Construction and Mine Development Cost”) before first gold production estimate is C$1,540 million, a C$290 million (or 23%) increase from the previous estimate from January 2024. Approximately 52% (or C$150 million) of the increase can be attributed to the one quarter delay in first gold production previously disclosed, combined with the acceleration of capital items that were previously anticipated to occur after first gold production. The acceleration of certain capital items is expected to make the Goose Project a more reliable and de-risked operation upon mill startup. The accelerated capital items include accelerated purchases of mining equipment versus the previous estimate to ensure continued growth in mining rates through 2025, the building of an accommodation complex at the MLA which will reduce ongoing annual costs associated with running the WIR, the construction of critical infrastructure at the Goose Project site, inclusive of warehousing, maintenance, mine dry facility, camp facility expansion, and the design acceleration of a reverse osmosis plant to optimize water management and lower ongoing operating costs. Approximately 24% (or C$70 million) of the increase in the Total Goose Project Construction and Mine Development Cost can be attributed to the increased cost of the logistics of shipping materials to the Goose Project site.

As a result of the previously announced increases to the Total Goose Project Construction and Mine Development Cost before first gold production estimate, the Company incurred a non-cash impairment of $661 million on the Goose Project carrying value in the third quarter of 2024.

Gramalote Project Development

On June 18, 2024, the Company announced the results of a positive Preliminary Economic Assessment (“PEA”) on its 100% owned Gramalote Project located in the Department of Antioquia, Colombia. The PEA outlines a significant production profile with average annual gold production of 185,000 ounces over a 12.5 year project life with a low-cost structure and favorable metallurgical characteristics. Additionally, the PEA outlines strong project economics with an after-tax NPV_5%of $778 million and an after-tax internal rate of return of 20.6%, with a project payback on pre-production capital of 3.1 years.

The estimated pre-production capital cost for the project is $807 million (including approximately $93 million for mining equipment and $63 million for contingency). A robust amount of historical drilling and engineering studies have been completed on the Gramalote Project, which significantly de-risks future project development. Based on the positive results from the PEA, B2Gold believes that the Gramalote Project has the potential to become a medium-scale, low-cost open pit gold mine.

B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025 and a $10 million budget has been approved by the Board. Due to the work completed for previous studies, the work remaining to finalize a feasibility study for the updated medium-scale project is not expected to be extensive. The main work programs for the feasibility study include geotechnical and environmental site investigations for the processing plant and waste dump footprints, as well as capital and operating cost estimates.

The Gramalote Project will continue to advance resettlement programs, establish coexistence programs for small miners, work on health, safety and environmental projects and continue to work with the government and local communities on social programs.

Due to the desired modifications to the processing plant and infrastructure locations, a Modified Environment Impact Study is required. B2Gold has commenced work on the modifications to the Environment Impact Study and expect it to be completed and submitted shortly following the completion of the feasibility study. If the final economics of the feasibility study are positive and B2Gold makes the decision to develop the Gramalote Project as an open pit gold mine, B2Gold would utilize its proven internal mine construction team to build the mine and mill facilities.

Outlook

Total gold production for 2024 is forecast to be towards the low end of the Company’s guidance range of between 800,000 and 870,000 ounces, including 20,000 ounces of attributable production from Calibre Mining Corp (“Calibre”).

Gold production in 2025 is expected to increase significantly relative to 2024 as a result of the scheduled mining and processing of higher-grade ore from the Fekola and Cardinal pits made accessible by the meaningful stripping campaign that has been undertaken throughout 2024, the expected full year of contribution from Fekola Regional, which is anticipated to contribute between 80,000 and 100,000 ounces of additional production, and commencement of mining the higher-grade Fekola underground (subject to receipt of necessary permits for Fekola Regional and Fekola underground).

Upon completion of construction activities at the Goose Project, the mine is expected to commence gold production in the second quarter of 2025 and contribute between 120,000 and 150,000 ounces of gold in calendar year 2025. Over the first six full calendar years of operation from 2026 to 2031, the average annual gold production for the Goose Project is estimated to be in excess of 310,000 ounces of gold per year.

The positive PEA results on the Company’s 100% owned Gramalote Project, located in the Department of Antioquia, Colombia, outlines a significant production profile with average annual gold production of 234,000 ounces per year for the first five years of production, and strong project economics over a 12.5 year project life. As a result, B2Gold has commenced feasibility work with the goal of completing a feasibility study by mid-2025 and a $10 million budget has been approved by the Board.

Following the release of an initial Inferred Mineral Resource Estimate for the Springbok Zone, the southernmost shoot of the recently discovered Antelope deposit, located approximately three km south of the Otjikoto Phase 5 open pit at the Otjikoto Mine in Namibia, in the second quarter of 2024, the Company has commenced a PEA which is expected to be completed in the first half of 2025. Subject to receipt of a positive PEA and permit, mining of the Springbok Zone, coupled with the exploration potential of the greater Antelope deposit, could begin to contribute to gold production at Otjikoto in 2026. The Antelope deposit has the potential to supplement the processing of low-grade stockpiles at the Otjikoto Mine through 2031, with the goal of increasing gold production levels to over 100,000 ounces per year from 2026 through 2031.

The Company’s ongoing strategy is to continue to maximize profitable production from its existing mines, maintain a strong financial position, realize the significant potential increase in gold production from the Company’s existing development projects, continue exploration programs across the Company’s robust land packages, evaluate new exploration, development and production opportunities and continue to return capital to shareholders.

Third Quarter 2024 Financial Results – Conference Call Details

B2Gold executives will host a conference call to discuss the results on Thursday, November 7, 2024, at 8:00 am PT / 11:00 am ET.

Participants may register for the conference call here: registration link. Upon registering, participants will receive a calendar invitation by email with dial in details and a unique PIN. This will allow participants to bypass the operator queue and connect directly to the conference. Registration will remain open until the end of the conference call. Participants may also dial in using the numbers below:

Toll-free in U.S. and Canada: +1 (844) 763-8274
All other callers: +1 (647) 484-8814

The conference call will be available for playback for two weeks by dialing toll-free in the U.S. and Canada: +1 (855) 669-9658, replay access code 4078435. All other callers: +1 (412) 317-0088, replay access code 4078435.

About B2Gold

B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland. B2Gold forecasts total consolidated gold production of between 800,000 and 870,000 ounces in 2024.

Qualified Persons

Bill Lytle, Senior Vice President and Chief Operating Officer, a qualified person under NI 43-101, has approved the scientific and technical information related to operations matters contained in this news release.

Andrew Brown, P. Geo., Vice President, Exploration, a qualified person under NI 43-101, has approved the scientific and technical information related to exploration and mineral resource matters contained in this news release.

ON BEHALF OF B2GOLD CORP.

“Clive T. Johnson”
President and Chief Executive Officer

Source: B2Gold Corp.

The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in this news release.

Production results and production guidance presented in this news release reflect total production at the mines B2Gold operates on a 100% project basis. Please see our Annual Information Form dated March 14, 2024 for a discussion of our ownership interest in the mines B2Gold operates.

This news release includes certain “forward-looking information” and “forward-looking statements” (collectively forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation, including: projections; outlook; guidance; forecasts; estimates; and other statements regarding future or estimated financial and operational performance, gold production and sales, revenues and cash flows, and capital costs (sustaining and non-sustaining) and operating costs, including projected cash operating costs and AISC, and budgets on a consolidated and mine by mine basis; future or estimated mine life, metal price assumptions, ore grades or sources, gold recovery rates, stripping ratios, throughput, ore processing; statements regarding anticipated exploration, drilling, development, construction, permitting and other activities or achievements of B2Gold; and including, without limitation: remaining well positioned for continued strong operational and financial performance in 2024; projected gold production, cash operating costs and AISC on a consolidated and mine by mine basis in 2024; total consolidated gold production of between 800,000 and 870,000 ounces (including 20,000 attributable ounces from Calibre) in 2024, with cash operating costs of between $835 and $895 per ounce and AISC of between $1,420 and $1,480 per ounce; B2Gold’s continued prioritization of developing the Goose Project in a manner that recognizes Indigenous input and concerns and brings long-term socio-economic benefits to the area; the Goose Project capital cost being approximately C$1,190 million and the net cost of open pit and underground development, deferred stripping, and sustaining capital expenditures to be incurred prior to first gold production being approximately C$350 million and the cost for reagents and other working capital items being C$330 million; the Goose Project producing approximately 310,000 ounces of gold per year for the first six years; the potential for first gold production in the second quarter of 2025 from the Goose Project and the estimates of such production; trucking of selective higher-grade saprolite material from the Anaconda Area to the Fekola mill having the potential to generate approximately 80,000 to 100,000 ounces of additional gold production per year from Fekola Regional sources; the receipt of the exploitation permit for Fekola Regional and Fekola Regional production expected to commence at the beginning of 2025; the receipt of a permit for Fekola underground and Fekola underground commencing operation in mid-2025; the potential for the Antelope deposit to be developed as an underground operation and contribute gold during the low-grade stockpile processing in 2026 through 2031; the results and estimates in the Gramalote PEA, including the project life, average annual gold production, processing rate, capital cost, net present value, after-tax net cash flow, after-tax internal rate of return and payback; the timing and results of a feasibility study on the Gramalote Project; and the potential to develop the Gramalote Project as an open pit gold mine. All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made.

Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond B2Gold’s control, including risks associated with or related to: the volatility of metal prices and B2Gold’s common shares; changes in tax laws; the dangers inherent in exploration, development and mining activities; the uncertainty of reserve and resource estimates; not achieving production, cost or other estimates; actual production, development plans and costs differing materially from the estimates in B2Gold’s feasibility and other studies; the ability to obtain and maintain any necessary permits, consents or authorizations required for mining activities; environmental regulations or hazards and compliance with complex regulations associated with mining activities; climate change and climate change regulations; the ability to replace mineral reserves and identify acquisition opportunities; the unknown liabilities of companies acquired by B2Gold; the ability to successfully integrate new acquisitions; fluctuations in exchange rates; the availability of financing; financing and debt activities, including potential restrictions imposed on B2Gold’s operations as a result thereof and the ability to generate sufficient cash flows; operations in foreign and developing countries and the compliance with foreign laws, including those associated with operations in Mali, Namibia, the Philippines and Colombia and including risks related to changes in foreign laws and changing policies related to mining and local ownership requirements or resource nationalization generally; remote operations and the availability of adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory, political and country risks, including local instability or acts of terrorism and the effects thereof; the reliance upon contractors, third parties and joint venture partners; the lack of sole decision-making authority related to Filminera Resources Corporation, which owns the Masbate Project; challenges to title or surface rights; the dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; competition with other mining companies; community support for B2Gold’s operations, including risks related to strikes and the halting of such operations from time to time; conflicts with small scale miners; failures of information systems or information security threats; the ability to maintain adequate internal controls over financial reporting as required by law, including Section 404 of the Sarbanes-Oxley Act; compliance with anti-corruption laws, and sanctions or other similar measures; social media and B2Gold’s reputation; risks affecting Calibre having an impact on the value of the Company’s investment in Calibre, and potential dilution of our equity interest in Calibre; as well as other factors identified and as described in more detail under the heading “Risk Factors” in B2Gold’s most recent Annual Information Form, B2Gold’s current Form 40-F Annual Report and B2Gold’s other filings with Canadian securities regulators and the U.S. Securities and Exchange Commission (the “SEC”), which may be viewed at www.sedar.com and www.sec.gov, respectively (the “Websites”). The list is not exhaustive of the factors that may affect B2Gold’s forward-looking statements.

B2Gold’s forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time. These assumptions and factors include, but are not limited to, assumptions and factors related to B2Gold’s ability to carry on current and future operations, including: development and exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; B2Gold’s ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.

B2Gold’s forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date hereof. B2Gold does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities B2Gold will derive therefrom. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.

Non-IFRS Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (“IFRS”), including “cash operating costs” and “all-in sustaining costs” (or “AISC”). Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and should be read in conjunction with B2Gold’s consolidated financial statements. Readers should refer to B2Gold’s Management Discussion and Analysis, available on the Websites, under the heading “Non-IFRS Measures” for a more detailed discussion of how B2Gold calculates certain of such measures and a reconciliation of certain measures to IFRS terms.

Cautionary Statement Regarding Mineral Reserve and Resource Estimates
The disclosure in this news release was prepared in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained or referenced in this news release may not be comparable to similar information disclosed by public companies subject to the technical disclosure requirements of the SEC. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.

B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 (Expressed in thousands of United States dollars, except per share amounts) (Unaudited)

	*For the three* *months ended* *Sept. 30, 2024*			For the three months ended Sept. 30, 2023			*For the nine* *months ended* *Sept. 30, 2024*			For the nine months ended Sept. 30, 2023

Gold revenue	$	448,229		$	477,888		$	1,402,242		$	1,422,298

Cost of sales
Production costs		(192,408	)		(171,425	)		(500,452	)		(451,791	)
Depreciation and depletion		(88,051	)		(101,568	)		(273,505	)		(293,388	)
Royalties and production taxes		(32,929	)		(34,389	)		(96,045	)		(102,661	)
Total cost of sales		(313,388	)		(307,382	)		(870,002	)		(847,840	)

Gross profit		134,841			170,506			532,240			574,458

General and administrative		(13,283	)		(13,064	)		(40,389	)		(41,170	)
Share-based payments		(5,069	)		(4,289	)		(14,815	)		(15,734	)
Impairment of long-lived assets		(661,160	)		(111,597	)		(876,376	)		(116,482	)
Gain on sale of mining interests		7,453			—			56,115			—
Gain on sale of shares in associate		—			—			16,822			—
Non-recoverable input taxes		(3,353	)		(1,191	)		(10,352	)		(4,237	)
Share of net (loss) income of associates		(98	)		5,561			4,581			17,549
Foreign exchange gains (losses)		5,893			(11,739	)		(7,842	)		(14,588	)
Community relations		(855	)		(1,158	)		(1,786	)		(3,883	)
Write-down of mining interests		—			(565	)		(636	)		(17,022	)
Restructuring charges		—			(5,071	)		—			(12,151	)
Other (expense) income		(26,550	)		130			(34,304	)		(4,159	)
Operating (loss) income		(562,181	)		27,523			(376,742	)		362,581

Interest and financing expense		(6,966	)		(3,190	)		(24,002	)		(9,032	)
Interest income		4,011			3,887			17,137			15,741
Change in fair value of gold stream		(1,957	)		7,600			(21,196	)		6,500
Losses on dilution on associate		—			—			(8,984	)		—
(Losses) gains on derivative instruments		(6,378	)		5,667			(5,674	)		6,092
Other income (expense)		1,777			(951	)		1,932			(5,069	)
(Loss) income from operations before taxes		(571,694	)		40,536			(417,529	)		376,813

Current income tax, withholding and other taxes		(74,804	)		(68,210	)		(233,085	)		(216,155	)
Deferred income tax recovery (expense)		15,466			(7,096	)		33,286			(1,674	)
Net (loss) income for the period	$	(631,032	)	$	(34,770	)	$	(617,328	)	$	158,984

Attributable to:
Shareholders of the Company	$	(633,757	)	$	(43,070	)	$	(618,010	)	$	123,321
Non-controlling interests		2,725			8,300			682			35,663
Net (loss) income for the period	$	(631,032	)	$	(34,770	)	$	(617,328	)	$	158,984

(Loss) earnings per share (attributable to shareholders of the Company)
Basic	$	(0.48	)	$	(0.03	)	$	(0.47	)	$	0.10
Diluted	$	(0.48	)	$	(0.03	)	$	(0.47	)	$	0.10

Weighted average number of common shares outstanding (in thousands)
Basic		1,310,994			1,297,175			1,307,134			1,208,942
Diluted		1,310,994			1,297,175			1,307,134			1,213,349

B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 (Expressed in thousands of United States dollars) (Unaudited)

	*For the three* *months ended* *Sept. 30, 2024*			For the three months ended Sept. 30, 2023			*For the nine* *months ended* *Sept. 30, 2024*			For the nine months ended Sept. 30, 2023
Operating activities
Net (loss) income for the period	$	(631,032	)	$	(34,770	)	$	(617,328	)	$	158,984
Mine restoration provisions settled		(527	)		(344	)		(1,468	)		(923	)
Non-cash charges, net		749,620			228,448			1,134,534			462,088
Proceeds from prepaid sales		—			—			500,023			—
Changes in non-cash working capital		3,576			(28,339	)		(54,148	)		(7,061	)
Changes in long-term inventory		(101,769	)		(32,296	)		(117,465	)		(36,995	)
Changes in long-term value added tax receivables		(35,967	)		(22,495	)		(87,088	)		(67,083	)
Cash (used) provided by operating activities		(16,099	)		110,204			757,060			509,010

Financing activities
Drawdown of revolving credit facility		200,000			—			200,000			—
Repayment of revolving credit facility		—			—			(150,000	)		—
Extinguishment of gold stream and construction financing obligations		—			—			—			(111,819	)
Repayment of equipment loan facilities		(2,980	)		(3,448	)		(8,886	)		(9,913	)
Interest and commitment fees paid		(1,075	)		(1,343	)		(5,744	)		(3,463	)
Cash proceeds from stock option exercises		569			6,486			3,014			12,394
Dividends paid		(46,112	)		(45,378	)		(137,970	)		(140,084	)
Principal payments on lease arrangements		(2,797	)		(1,135	)		(5,385	)		(4,624	)
Distributions to non-controlling interests		(5,412	)		(13,601	)		(12,700	)		(17,881	)
Other		(512	)		(862	)		450			725
Cash provided (used) by financing activities		141,681			(59,281	)		(117,221	)		(274,665	)

Investing activities
Expenditures on mining interests:
Fekola Mine		(64,464	)		(83,166	)		(198,205	)		(211,112	)
Masbate Mine		(5,192	)		(5,896	)		(20,229	)		(20,947	)
Otjikoto Mine		(609	)		(13,290	)		(26,128	)		(46,266	)
Goose Project		(120,974	)		(88,082	)		(366,129	)		(156,694	)
Fekola Regional Properties		(3,992	)		(16,535	)		(13,417	)		(46,345	)
Gramalote Project		(3,357	)		(854	)		(10,227	)		(2,568	)
Other exploration		(18,752	)		(17,770	)		(39,164	)		(58,313	)
Cash proceeds on sale of investment in associate		—			—			100,302			—
Cash proceeds on sale of long-term investment		58,627			—			77,288			—
Purchase of shares in associates		(9,089	)		—			(9,089	)		—
Cash proceeds from sale of mining interests		7,500			—			7,500			—
Purchase of long-term investments		(664	)		(879	)		(6,916	)		(32,759	)
Funding of reclamation accounts		(2,290	)		(2,189	)		(4,995	)		(4,829	)
Cash acquired on acquisition of Sabina Gold & Silver Corp.		—			—			—			38,083
Transaction costs paid on acquisition of Sabina Gold & Silver Corp.		—			—			—			(6,672	)
Other		(89	)		(6,286	)		(1,925	)		(9,498	)
Cash used by investing activities		(163,345	)		(234,947	)		(511,334	)		(557,920	)

(Decrease) increase in cash and cash equivalents		(37,763	)		(184,024	)		128,505			(323,575	)

Effect of exchange rate changes on cash and cash equivalents		2,036			(12,614	)		(4,287	)		(18,802	)
Cash and cash equivalents, beginning of period		466,840			506,207			306,895			651,946
Cash and cash equivalents, end of period	$	431,113		$	309,569		$	431,113		$	309,569

B2GOLD CORP. CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (Expressed in thousands of United States dollars) (Unaudited)

	*As at September 30,* *2024*			*As at December 31,* *2023*
*Assets*
Current
Cash and cash equivalents	$	431,113		$	306,895
Accounts receivable, prepaids and other		54,097			27,491
Value-added and other tax receivables		58,157			29,848
Inventories		378,121			346,495
		921,488			710,729

Long-term investments		89,045			86,007
Value-added tax receivables		282,803			199,671
Mining interests		3,096,562			3,563,490
Investment in associates		93,368			134,092
Long-term inventories		213,195			100,068
Other assets		69,285			63,635
Deferred income taxes		22,991			16,927
	$	4,788,737		$	4,874,619
*Liabilities*
Current
Accounts payable and accrued liabilities	$	174,563		$	167,117
Current income and other taxes payable		156,981			120,679
Current portion of prepaid gold sales		134,779			—
Current portion of long-term debt		17,288			16,256
Current portion of gold stream obligation		3,400			—
Current portion of mine restoration provisions		1,713			3,050
Other current liabilities		13,613			6,369
		502,337			313,471

Long-term debt		221,890			175,869
Gold stream obligation		157,396			139,600
Prepaid gold sales		393,138			—
Mine restoration provisions		116,485			104,607
Deferred income taxes		161,889			188,106
Employee benefits obligation		20,129			19,171
Other long-term liabilities		26,393			23,820
		1,599,657			964,644
*Equity*
Shareholders’ equity
Share capital		3,492,261			3,454,811
Contributed surplus		83,844			84,970
Accumulated other comprehensive loss		(96,208	)		(125,256	)
Retained (deficit) earnings		(442,705	)		395,854
		3,037,192			3,810,379
Non-controlling interests		151,888			99,596
		3,189,080			3,909,975
	$	4,788,737		$	4,874,619

NON-IFRS MEASURES

Cash operating costs per gold ounce sold and total cash costs per gold ounce sold

‘‘Cash operating costs per gold ounce” and “total cash costs per gold ounce” are common financial performance measures in the gold mining industry but, as non-IFRS measures, they do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance and ability to generate cash flow. Accordingly, these measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures, along with sales, are considered to be a key indicator of the Company’s ability to generate earnings and cash flow from its mining operations.

Cash cost figures are calculated on a sales basis in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. Other companies may calculate these measures differently. Cash operating costs and total cash costs per gold ounce sold are derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, royalties and production taxes, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce sold and total cash costs per gold ounce sold to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):

	For the three months ended September 30, 2024
	Fekola Mine	Masbate Mine	Otjikoto Mine	Total	Calibre equity investment	Grand Total
	$	$	$	$	$	$

Production costs	109,857	42,697	39,854	192,408	—	192,408
Royalties and production taxes	20,511	7,120	5,298	32,929	—	32,929

Total cash costs	130,368	49,817	45,152	225,337	—	225,337

Gold sold (ounces)	78,889	47,960	53,676	180,525	—	180,525

Cash operating costs per ounce ($/ gold ounce sold)	1,393	890	742	1,066	—	1,066

Total cash costs per ounce ($/ gold ounce sold)	1,653	1,039	841	1,248	—	1,248

	For the three months ended September 30, 2023
	Fekola Mine	Masbate Mine	Otjikoto Mine	Total	Calibre equity investment	Grand Total
	$	$	$	$	$	$

Production costs	93,388	44,056	33,981	171,425	16,791	188,216
Royalties and production taxes	24,333	6,556	3,500	34,389	1,303	35,692

Total cash costs	117,721	50,612	37,481	205,814	18,094	223,908

Gold sold (ounces)	152,239	50,950	45,700	248,889	17,727	266,616

Cash operating costs per ounce ($/ gold ounce sold)	613	865	744	689	947	706

Total cash costs per ounce ($/ gold ounce sold)	773	993	820	827	1,021	840

	For the nine months ended September 30, 2024
	Fekola Mine	Masbate Mine	Otjikoto Mine	Total	Calibre equity investment	Grand Total
	$	$	$	$	$	$

Production costs	276,443	123,070	100,939	500,452	25,126	525,578
Royalties and production taxes	62,561	19,420	14,064	96,045	1,565	97,610

Total cash costs	339,004	142,490	115,003	596,497	26,691	623,188

Gold sold (ounces)	318,005	142,260	153,466	613,731	19,644	633,375

Cash operating costs per ounce ($/ gold ounce sold)	869	865	658	815	1,279	830

Total cash costs per ounce ($/ gold ounce sold)	1,066	1,002	749	972	1,359	984

	For the nine months ended September 30, 2023
	Fekola Mine	Masbate Mine	Otjikoto Mine	Total	Calibre equity investment	Grand Total
	$	$	$	$	$	$

Production costs	250,294	117,219	84,278	451,791	50,371	502,162
Royalties and production taxes	74,685	17,254	10,722	102,661	3,635	106,296

Total cash costs	324,979	134,473	95,000	554,452	54,006	608,458

Gold sold (ounces)	460,139	137,300	139,700	737,139	50,666	787,805

Cash operating costs per ounce ($/ gold ounce sold)	544	854	603	613	994	637

Total cash costs per ounce ($/ gold ounce sold)	706	979	680	752	1,066	772

Cash operating costs per gold ounce produced

In addition to cash operating costs on a per gold ounce sold basis, the Company also presents cash operating costs on a per gold ounce produced basis. Cash operating costs per gold ounce produced is derived from amounts included in the statement of operations and include mine site operating costs such as mining, processing, smelting, refining, transportation costs, less silver by-product credits. The tables below show a reconciliation of cash operating costs per gold ounce produced to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis (dollars in thousands):

	For the three months ended September 30, 2024
	Fekola Mine	Masbate Mine		Otjikoto Mine		Total		Calibre equity investment	Grand Total
	$	$		$		$		$	$

Production costs	109,857	42,697		39,854		192,408		—	192,408
Inventory sales adjustment	2,330	(1,955	)	(1,294	)	(919	)	—	(919	)

Cash operating costs	112,187	40,742		38,560		191,489		—	191,489

Gold produced (ounces)	78,207	50,215		52,131		180,553		—	180,553

Cash operating costs per ounce ($/ gold ounce produced)	1,434	811		740		1,061		—	1,061

	For the three months ended September 30, 2023
	Fekola Mine		Masbate Mine		Otjikoto Mine	Total		Calibre equity investment	Grand Total
	$		$		$	$		$	$

Production costs	93,388		44,056		33,981	171,425		16,791	188,216
Inventory sales adjustment	(4,673	)	(1,388	)	1,294	(4,767	)	—	(4,767	)

Cash operating costs	88,715		42,668		35,275	166,658		16,791	183,449

Gold produced (ounces)	128,942		51,170		44,940	225,052		17,786	242,838

Cash operating costs per ounce ($/ gold ounce produced)	688		834		785	741		944	755

	For the nine months ended September 30, 2024
	Fekola Mine	Masbate Mine		Otjikoto Mine		Total	Calibre equity investment	Grand Total
	$	$		$		$	$	$

Production costs	276,443	123,070		100,939		500,452	25,126	525,578
Inventory sales adjustment	12,505	(1,767	)	(854	)	9,884	—	9,884

Cash operating costs	288,948	121,303		100,085		510,336	25,126	535,462

Gold produced (ounces)	308,931	144,512		145,690		599,133	19,644	618,777

Cash operating costs per ounce ($/ gold ounce produced)	935	839		687		852	1,279	865

	For the nine months ended September 30, 2023
	Fekola Mine	Masbate Mine	Otjikoto Mine	Total	Calibre equity investment	Grand Total
	$	$	$	$	$	$

Production costs	250,294	117,219	84,278	451,791	50,371	502,162
Inventory sales adjustment	543	6,792	1,232	8,567	—	8,567

Cash operating costs	250,837	124,011	85,510	460,358	50,371	510,729

Gold produced (ounces)	447,233	147,012	127,487	721,732	50,663	772,395

Cash operating costs per ounce ($/ gold ounce produced)	561	844	671	638	994	661

All-in sustaining costs per gold ounce

In June 2013, the World Gold Council, a non-regulatory association of the world’s leading gold mining companies established to promote the use of gold to industry, consumers and investors, provided guidance for the calculation of the measure “all-in sustaining costs per gold ounce”, but as a non-IFRS measure, it does not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The original World Gold Council standard became effective January 1, 2014 with further updates announced on November 16, 2018 which were effective starting January 1, 2019.

Management believes that the all-in sustaining costs per gold ounce measure provides additional insight into the costs of producing gold by capturing all of the expenditures required for the discovery, development and sustaining of gold production and allows the Company to assess its ability to support capital expenditures to sustain future production from the generation of operating cash flows. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. The Company has applied the principles of the World Gold Council recommendations and has reported all-in sustaining costs on a sales basis. Other companies may calculate these measures differently.

B2Gold defines all-in sustaining costs per ounce as the sum of cash operating costs, royalties and production taxes, capital expenditures and exploration costs that are sustaining in nature, sustaining lease expenditures, corporate general and administrative costs, share-based payment expenses related to restricted share units/deferred share units/performance share units/restricted phantom units (“RSUs/DSUs/PSUs/RPUs”), community relations expenditures, reclamation liability accretion and realized (gains) losses on fuel derivative contracts, all divided by the total gold ounces sold to arrive at a per ounce figure.

The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the three months ended September 30, 2024 (dollars in thousands):

	For the three months ended September 30, 2024
	Fekola Mine	Masbate Mine	Otjikoto Mine	Corporate	Total	Calibre equity investment	Grand Total
	$	$	$	$	$	$	$

Production costs	109,857	42,697	39,854	—	192,408	—	192,408
Royalties and production taxes	20,511	7,120	5,298	—	32,929	—	32,929
Corporate administration	2,736	537	806	9,204	13,283	—	13,283
Share-based payments – RSUs/DSUs/PSUs/RPUs⁽¹⁾	28	—	—	3,622	3,650	—	3,650
Community relations	168	109	578	—	855	—	855
Reclamation liability accretion	479	321	245	—	1,045	—	1,045
Realized losses on derivative contracts	55	32	21	—	108	—	108
Sustaining lease expenditures	82	312	234	502	1,130	—	1,130
Sustaining capital expenditures⁽²⁾	45,533	4,644	575	—	50,752	—	50,752
Sustaining mine exploration⁽²⁾	996	203	485	—	1,684	—	1,684

Total all-in sustaining costs	180,445	55,975	48,096	13,328	297,844	—	297,844

Gold sold (ounces)	78,889	47,960	53,676	—	180,525	—	180,525

All-in sustaining cost per ounce ($/ gold ounce sold)	2,287	1,167	896	—	1,650	—	1,650

⁽^{1) Included as a component of Share-based payments on the Statement of operations.}
^{(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.}

The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2024 (dollars in thousands):

	For the three months ended September 30, 2024
	Fekola Mine		Masbate Mine		Otjikoto Mine		Total		Calibre equity investment	Grand Total
	$		$		$		$		$	$

Operating mine capital expenditures	64,464		5,192		609		70,265		—	70,265
Fekola underground	(20,252	)	—		—		(20,252	)	—	(20,252	)
Road construction	1,321		—		—		1,321		—	1,321
Land acquisitions	—		(528	)	—		(528	)	—	(528	)
Other	—		(20	)	(34	)	(54	)	—	(54	)

Sustaining capital expenditures	45,533		4,644		575		50,752		—	50,752

The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the three months ended September 30, 2024 (dollars in thousands):

	For the three months ended September 30, 2024
	Fekola Mine	Masbate Mine		Otjikoto Mine		Total		Calibre equity investment	Grand Total
	$	$		$		$		$	$

Operating mine exploration	996	1,290		1,888		4,174		—	4,174
Regional exploration	—	(1,087	)	(1,403	)	(2,490	)	—	(2,490	)

Sustaining mine exploration	996	203		485		1,684		—	1,684

	For the three months ended September 30, 2023
	Fekola Mine		Masbate Mine		Otjikoto Mine		Corporate	Total		Calibre equity investment	Grand Total
	$		$		$		$	$		$	$

Production costs	93,388		44,056		33,981		—	171,425		16,791	188,216
Royalties and production taxes	24,333		6,556		3,500		—	34,389		1,303	35,692
Corporate administration	2,077		623		1,269		8,961	12,930		658	13,588
Share-based payments – RSUs/DSUs/PSUs/RPUs⁽¹⁾	9		—		—		4,325	4,334		—	4,334
Community relations	642		24		492		—	1,158		—	1,158
Reclamation liability accretion	381		290		286		—	957		—	957
Realized gains on derivative contracts	(1,317	)	(972	)	(232	)	—	(2,521	)	—	(2,521	)
Sustaining lease expenditures	72		302		274		487	1,135		—	1,135
Sustaining capital expenditures⁽²⁾	72,454		5,617		13,290		—	91,361		3,388	94,749
Sustaining mine exploration⁽²⁾	—		774		963		—	1,737		19	1,756

Total all-in sustaining costs	192,039		57,270		53,823		13,773	316,905		22,159	339,064

Gold sold (ounces)	152,239		50,950		45,700		—	248,889		17,727	266,616

All-in sustaining cost per ounce ($/ gold ounce sold)	1,261		1,124		1,178		—	1,273		1,250	1,272

^{(1) Included as a component of Share-based payments on the Statement of operations.}^{(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.}

	For the three months ended September 30, 2023
	Fekola Mine		Masbate Mine		Otjikoto Mine	Total		Calibre equity investment	Grand Total
	$		$		$	$		$	$

Operating mine capital expenditures	83,166		5,896		13,290	102,352		3,388	105,740
Road construction	(216	)	—		—	(216	)	—	(216	)
Fekola underground	(10,496	)	—		—	(10,496	)	—	(10,496	)
Other	—		(279	)	—	(279	)	—	(279	)

Sustaining capital expenditures	72,454		5,617		13,290	91,361		3,388	94,749

	For the three months ended September 30, 2023
	Fekola Mine	Masbate Mine	Otjikoto Mine	Total	Calibre equity investment	Grand Total
	$	$	$	$	$	$

Operating mine exploration	—	774	963	1,737	19	1,756
Regional exploration	—	—	—	—	—	—

Sustaining mine exploration	—	774	963	1,737	19	1,756

The table below shows a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the nine months ended September 30, 2024 (dollars in thousands):

	For the nine months ended September 30, 2024
	Fekola Mine		Masbate Mine		Otjikoto Mine		Corporate	Total		Calibre equity investment	Grand Total
	$		$		$		$	$		$	$

Production costs	276,443		123,070		100,939		—	500,452		25,126	525,578
Royalties and production taxes	62,561		19,420		14,064		—	96,045		1,565	97,610
Corporate administration	8,011		1,599		3,692		27,087	40,389		1,463	41,852
Share-based payments – RSUs/DSUs/PSUs/RPUs⁽¹⁾	95		—		—		12,618	12,713		—	12,713
Community relations	419		139		1,228		—	1,786		—	1,786
Reclamation liability accretion	1,372		935		735		—	3,042		—	3,042
Realized gains on derivative contracts	(365	)	(220	)	(10	)	—	(595	)	—	(595	)
Sustaining lease expenditures	249		939		1,024		1,506	3,718		—	3,718
Sustaining capital expenditures⁽²⁾	151,468		19,321		25,078		—	195,867		2,392	198,259
Sustaining mine exploration⁽²⁾	3,136		1,801		1,111		—	6,048		—	6,048

Total all-in sustaining costs	503,389		167,004		147,861		41,211	859,465		30,546	890,011

Gold sold (ounces)	318,005		142,260		153,466		—	613,731		19,644	633,375

All-in sustaining cost per ounce ($/ gold ounce sold)	1,583		1,174		963		—	1,400		1,555	1,405

^{(1) Included as a component of Share-based payments on the Statement of operations.}
^{(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below.}

The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (dollars in thousands):

	For the nine months ended September 30, 2024
	Fekola Mine		Masbate Mine		Otjikoto Mine		Total		Calibre equity investment	Grand Total
	$		$		$		$		$	$

Operating mine capital expenditures	198,205		20,229		26,128		244,562		2,392	246,954
Fekola underground	(46,128	)	—		—		(46,128	)	—	(46,128	)
Road construction	(609	)	—		—		(609	)	—	(609	)
Land acquisitions	—		(648	)	—		(648	)	—	(648	)
Other	—		(260	)	(1,050	)	(1,310	)	—	(1,310	)

Sustaining capital expenditures	151,468		19,321		25,078		195,867		2,392	198,259

The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2024 (dollars in thousands):

	For the nine months ended September 30, 2024
	Fekola Mine	Masbate Mine		Otjikoto Mine		Total		Calibre equity investment	Grand Total
	$	$		$		$		$	$

Operating mine exploration	3,136	3,039		5,191		11,366		—	11,366
Regional exploration	—	(1,238	)	(4,080	)	(5,318	)	—	(5,318	)

Sustaining mine exploration	3,136	1,801		1,111		6,048		—	6,048

The tables below show a reconciliation of all-in sustaining costs per ounce to production costs as extracted from the unaudited condensed interim consolidated financial statements on a consolidated and a mine-by-mine basis for the nine months ended September 30, 2023 (dollars in thousands):

	For the nine months ended September 30, 2023
	Fekola Mine		Masbate Mine		Otjikoto Mine		Corporate	Total		Calibre equity investment	Grand Total
	$		$		$		$	$		$	$

Production costs	250,294		117,219		84,278		—	451,791		50,371	502,162
Royalties and production taxes	74,685		17,254		10,722		—	102,661		3,635	106,296
Corporate administration	7,441		1,762		4,149		27,818	41,170		1,981	43,151
Share-based payments – RSUs/DSUs/PSUs/RPUs⁽¹⁾	9		—		—		12,482	12,491		—	12,491
Community relations	2,686		123		1,074		—	3,883		—	3,883
Reclamation liability accretion	1,119		859		857		—	2,835		—	2,835
Realized gains on derivative contracts	(2,776	)	(2,786	)	(929	)	—	(6,491	)	—	(6,491	)
Sustaining lease expenditures	1,117		912		1,194		1,401	4,624		—	4,624
Sustaining capital expenditures⁽²⁾	181,262		20,145		46,266		—	247,673		7,327	255,000
Sustaining mine exploration⁽²⁾	1,706		2,741		2,453		—	6,900		19	6,919

Total all-in sustaining costs	517,543		158,229		150,064		41,701	867,537		63,333	930,870

Gold sold (ounces)	460,139		137,300		139,700		—	737,139		50,666	787,805

All-in sustaining cost per ounce ($/ gold ounce sold)	1,125		1,152		1,074		—	1,177		1,250	1,182

^{(1) Included as a component of Share-based payments on the Statement of operations.}
^{(2) Refer to Sustaining capital expenditures and Sustaining mine exploration reconciliations below}

The table below shows a reconciliation of sustaining capital expenditures to operating mine capital expenditures as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2023 (dollars in thousands):

	For the nine months ended September 30, 2023
	Fekola Mine		Masbate Mine		Otjikoto Mine	Total		Calibre equity investment	Grand Total
	$		$		$	$		$	$

Operating mine capital expenditures	211,112		20,947		46,266	278,325		7,327	285,652
Road construction	(5,283	)	—		—	(5,283	)	—	(5,283	)
Fekola underground	(24,567	)	—		—	(24,567	)	—	(24,567	)
Other	—		(802	)	—	(802	)	—	(802	)

Sustaining capital expenditures	181,262		20,145		46,266	247,673		7,327	255,000

The table below shows a reconciliation of sustaining mine exploration to operating mine exploration as extracted from the unaudited condensed interim consolidated financial statements for the nine months ended September 30, 2023 (dollars in thousands):

	For the nine months ended September 30, 2023
	Fekola Mine	Masbate Mine	Otjikoto Mine	Total	Calibre equity investment	Grand Total
	$	$	$	$	$	$

Operating mine exploration	1,706	2,741	2,453	6,900	19	6,919
Regional exploration	—	—	—	—	—	—

Sustaining mine exploration	1,706	2,741	2,453	6,900	19	6,919

Adjusted net income and adjusted earnings per share – basic

Adjusted net income and adjusted earnings per share – basic are non-IFRS measures that do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines adjusted net income as net income attributable to shareholders of the Company adjusted for non-recurring items and also significant recurring non-cash items. The Company defines adjusted earnings per share – basic as adjusted net income divided by the basic weighted number of common shares outstanding.

Management believes that the presentation of adjusted net income and adjusted earnings per share – basic is appropriate to provide additional information to investors regarding items that we do not expect to continue at the same level in the future or that management does not believe to be a reflection of the Company’s ongoing operating performance. Management further believes that its presentation of these non-IFRS financial measures provide information that is useful to investors because they are important indicators of the strength of our operations and the performance of our core business. Accordingly, it is intended to provide additional information and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.

A reconciliation of net (loss) income to adjusted net income as extracted from the unaudited condensed interim consolidated financial statements is set out in the table below:

	Three months ended		Nine months ended
	September 30,		September 30,
	2024	2023	2024	2023
	$	$	$	$
	(000’s)	(000’s)	(000’s)	(000’s)

Net (loss) income attributable to shareholders of the Company for the period:	(633,757)	(43,070)	(618,010)	123,321

Adjustments for non-recurring and significant recurring non-cash items:
Impairment of long-lived assets	661,160	111,597	858,301	116,482
Write-down of mining interests	—	565	636	16,984
Gain on sale of shares in associate	—	—	(16,822)	—
Gain on sale of mining interests	(7,453)	—	(56,115)	—
Regulatory dispute settlement	15,089	—	15,089	—
Unrealized losses (gains) on derivative instruments	6,270	(3,146)	6,269	399
Office lease termination costs	—	—	—	1,946
Loan receivable provision	—	—	—	2,085
Change in fair value of gold stream	1,957	(7,600)	21,196	(6,500)
Loss on dilution of associate	—	—	8,984	—
Deferred income tax (recovery) expense	(14,109)	6,494	(30,419)	1,789

Adjusted net income attributable to shareholders of the Company for the period	29,157	64,840	189,109	256,506

Basic weighted average number of common shares outstanding (in thousands)	1,310,994	1,297,175	1,307,134	1,208,942

Adjusted net earnings attributable to shareholders of the Company per share–basic ($/share)	0.02	0.05	0.14	0.21

For more information on B2Gold please visit the Company website at www.b2gold.com or contact:

Michael McDonald
VP, Investor Relations & Corporate Development
+1 604-681-8371
investor@b2gold.com

Cherry DeGeer
Director, Corporate Communications
+1 604-681-8371
investor@b2gold.com

Markets News

Texas Cannabis Election: Dallas, Lockhart, Bastrop Voters Say Yes To Marijuana Decriminalization

06.11.2024 by admin

Voters in Dallas, Lockhart and Bastrop sent clear messages on Tuesday: they want to reform marijuana possession laws at the local level, even as state policies remain restrictive.

Residents of these Texas cities passed measures to decriminalize possession of small amounts of marijuana, with Dallas’s Proposition R, Lockhart’s Proposition A and Bastrop’s Proposition M all garnering significant support, Texas Standard reported.

Ground Game Texas, the advocacy group that spearheaded these measures, argues that local action is essential in a state where change at the legislative level has been slow.

“I think people are just generally – especially with marijuana – I think we’re tired of these outdated, draconian marijuana laws,” said Catina Voellinger, executive director of Ground Game Texas.

Strong Voter Support Across Cities

The results were decisive. In both Dallas and Lockhart, roughly 67% of voters supported the measures, while Bastrop saw an even greater level of support, with more than 69% voting in favor.

Final numbers for the marijuana decrim votes:

Dallas- 66% yes
Lockhart- 67% yes
Bastrop-69% yes

You don’t get these numbers without overwhelming bipartisan support. It is time to end marijuana prohibition in Texas!!!

— Texas Cannabis Collective (@txcannaco) November 6, 2024

“Our success in Dallas, and then in places like Bastrop and Lockhart, proves that once again, the state’s laws aren’t in line with the needs of its residents,” Voellinger added.

Dallas, now the largest Texas city to pass such a decriminalization measure, joins other urban areas where local leaders have deprioritized marijuana possession cases. For instance, Harris and Bexar counties have already reduced focus on low-level marijuana arrests.

What The New Measures Entail

Each of the three measures decriminalizes possession of up to four ounces of marijuana. Under these new rules, city police are barred from arresting individuals for possessing small amounts, except in certain situations.

Furthermore, the smell of marijuana can no longer serve as probable cause for a search or seizure, and city funds cannot be used to test substances for marijuana classification, barring exceptional cases.

The measures include a significant caveat. “Unless and until a binding act of state or federal court requires otherwise…” This means that while cities have the authority to decriminalize marijuana locally, state or federal court rulings could override these changes. In the event of such a ruling, the cities plan to make marijuana possession the lowest enforcement priority, with adjustments to budgets and policies accordingly.

The amendments also include provisions to ensure that, even if a part of the act is found illegal, the remaining sections will remain in effect.

State Pushback And Legal Battles

Texas has a history of resisting marijuana reform, and recent legal battles show that state authorities may not let these local changes proceed unchallenged.

Earlier this year, Texas Attorney General Ken Paxton filed lawsuits against five cities, including Austin and Denton, that attempted similar decriminalization measures. Although an Austin lawsuit was dismissed by a Travis County judge, these lawsuits demonstrate a potential roadblock for cities pursuing marijuana reform.

With the Texas legislature, led by Republican lawmakers, set to reconvene in January, the state’s stance on local decriminalization measures remains uncertain.

Despite these hurdles, advocates like Voellinger and Ground Game Texas are determined to keep pushing for reform. “We’re going to keep doing this patchwork organizing until we can hopefully see change statewide,” Voellinger said.

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Earnings News

Supremex Announces Results for the Third Quarter of 2024 and Intention to Proceed With a Sale & Leaseback of Two Properties in Addition to Increase Quarterly Dividend by 25%

06.11.2024 by admin

MONTREAL, Nov. 06, 2024 (GLOBE NEWSWIRE) — Supremex Inc. (“Supremex” or the “Company”) SXP, a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced its results for the third quarter ended September 30, 2024. The Company will hold a conference call to discuss these results tomorrow at 8:30 a.m. (Eastern Time).

Third Quarter Financial Highlights and Recent Events

Total revenue of $69.4 million, in line with to $69.8 million in the third quarter of 2023.
Envelope segment revenue down 3.7% to $47.5 million, from $49.3 million in the prior year.
Packaging and Specialty Products segment revenue of $21.9 million, up 6.7% from $20.5 million last year.
Non-cash asset impairment of $23.3 million, primarily goodwill in Packaging and Specialty Products.
Net loss of $23.0 million, compared to net earnings of $5.0 million last year.
Net loss per share of $0.92, versus net earnings per share of $0.19 a year ago.
Adjusted EBITDA¹ of $7.9 million, or 11.4% of revenue, versus $11.7 million, or 16.8% of revenue, a year ago. Of this $3.8M variance, there is $1.5M attributable to DSU/PSU quarterly valuation.
Free cash flow¹of $7.4 million, compared to $11.6 million last year.
The Company announces its intention to proceed with a sale-leaseback transaction of two properties with a book value of $9 million and an appraised value of $57 million.
On November 6, 2024, the Board of Directors declared a quarterly dividend of $0.05, representing a 25% increase over the previous amount, per common share, payable on December 20, 2024, to shareholders of record at the close of business on December 5, 2024.

Financial Highlights (in thousands of dollars, except for per share amounts and margins)	Three-month periods ended September 30			Nine-month periods ended September 30
	2024		2023	2024		2023
Statement of Earnings
Revenue	69,355		69,798	211,960		229,886
Operating (loss) earnings	(22,569	)	8,164	(12,901	)	27,006
Adjusted EBITDA⁽¹⁾	7,933		11,730	27,414		40,133
Adjusted EBITDA margin⁽¹⁾	11.4%		16.8%	12.9%		17.5%
Net (loss) earnings	(23,038	)	5,001	(17,562	)	16,610
Basic and diluted net (loss) earnings per share	(0.92	)	0.19	(0.70	)	0.64
Adjusted net earnings⁽¹⁾	1,044		4,049	6,663		16,099
Adjusted net earnings per share⁽¹⁾	0.04		0.16	0.27		0.62
Cash Flow
Net cash flows related to operating activities	7,568		11,538	22,886		29,085
Free cash flow⁽¹⁾	7,369		11,646	23,022		24,857

(1)	Non-IFRS financial measures or ratios. Non-IFRS financial measures do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. Refer to the non-IFRS financial measures section for definitions and reconciliations.

“Supremex’ third quarter operating performance was driven by higher envelope volume and improving packaging markets, and although profitability was impacted by approximately $1.9 million of non-operating items, it remains below its true potential,” said Stewart Emerson, President and CEO of Supremex. “As anticipated, envelope volumes continue to improve from the lows of 2023, and backlogs are stronger. However, the market continues to give back some of the pricing gains made in 2022 and profitability was also impacted by the temporary effect of our consolidation in the Greater Toronto Area, which is expected to yield important benefits going forward. In packaging, sales for e-commerce fulfillment remained solid and channels subject to discretionary consumer demand have improved, while increased profitability reflected greater efficiency from recent cost reduction and productivity initiatives and the benefits of improved absorption. Additionally, with a new senior leader steering our folding carton activities, we are confident that we will further leverage our high-quality assets, blue-chip customer base and dedicated employees. Based on a gradually improving market, efficiency and productivity gains, and the expectation of a substantial gain on the sale-leaseback transaction, the Board of Directors has decided to increase the dividend.”

Summary of three-month period ended September 30, 2024

Revenue

Total revenue for the three-month period ended September 30, 2024, was $69.4 million, representing a decrease of $0.4 million, or 0.6%, from the equivalent quarter of 2023.

Envelope Segment

Revenue was $47.5 million, representing a decrease of $1.8 million, or 3.7%, from $49.3 million in the third quarter of 2023. The variation reflects an average selling price decrease of 9.7% from last year’s third quarter primarily reflecting a less favourable customer and product mix in U.S. operations. This factor was partially offset by a 6.6% increase in the volume of units sold, reflecting greater penetration of the U.S. market and the contribution from the purchase of the Forest Envelope Group (“Forest Envelope”) assets, as well as a favourable currency conversion effect. The Envelope segment represented 68.5% of the Company’s revenue in the quarter, compared with 70.6% during the equivalent period of last year.

Packaging & Specialty Products Segment

Revenue was $21.9 million, up 6.7% from $20.5 million for the corresponding quarter of 2023. The increase is attributable to higher demand for e-commerce packaging solutions, while demand from certain sectors more closely correlated to economic conditions has stabilized compared to last year. Packaging & Specialty Products represented 31.5% of the Company’s revenue in the quarter, versus 29.4% during the equivalent period of last year.

EBITDA² and Adjusted EBITDA²

EBITDA was negative $17.5 million, versus $13.0 million in the third quarter of 2023, essentially due to an asset impairment charge. Adjusted EBITDA amounted to $7.9 million, compared to $11.7 million for the same period last year. The decrease reflects higher operating and selling, general and administrative expenses. The Adjusted EBITDA margin was 11.4% of revenue, compared to 16.8% in the equivalent quarter of 2023.

Envelope Segment

Adjusted EBITDA was $7.9 million, compared to $9.5 million in the third quarter of 2023. The decrease mainly reflects lower average selling prices resulting from a less favourable customer and product mix in U.S. operations. As a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 16.7%, compared with 19.3% in the equivalent period of 2023.

Packaging & Specialty Products Segment

Adjusted EBITDA was $2.5 million, versus $1.7 million in the third quarter of 2023. This increase is mainly explained by benefits from optimization measures announced in October 2023. As a percentage of segmented revenue, Adjusted EBITDA for Packaging and Specialty Products was 11.3%, compared to 8.4% in the equivalent period of 2023.

Corporate and unallocated costs/recovery

Corporate and unallocated costs amounted to $2.5 million in the third quarter of 2024, as opposed to a recovery of $0.5 million in the third quarter of 2023. The variation is essentially attributable to an unfavourable adjustment related to the DSUs and PSUs during the quarter due to different share price fluctuations this year versus last year.

Net (Loss) Earnings, Adjusted Net Earnings³, Net (Loss) Earnings Per Share and Adjusted Net Earnings Per Share³

Net loss was $23.0 million, or net loss of $0.92 per share, for the three-month period ended September 30, 2024, compared to net earnings of $5.0 million, or net earnings of $0.19 per share, for the equivalent period last year.

Adjusted net earnings were $1.0 million, or $0.04 per share, for the three-month period ended September 30, 2024, compared to $4.0 million, or $0.16 per share, for the equivalent period last year.

Summary of nine-month period ended September 30, 2024

Revenue

Total revenue for the nine-month period ended September 30, 2024, was $212.0 million, representing a decrease of $17.9 million, or 7.8%, from the equivalent period of 2023.

Envelope Segment

Revenue was $150.4 million, representing a decrease of $12.6 million, or 7.7%, from $163.0 million for the same period in 2023. The decrease is attributable to an average selling price decrease of 5.9% from last year primarily reflecting a less favourable customer and product mix in U.S. operations, and to a 1.9% decrease in the volume of units sold. These factors were partially offset by the contribution from the Forest Envelope assets and a favourable currency conversion effect. Envelope represented 70.9% of the Company’s revenue for the nine-month periods ended September 30, 2024, and 2023.

Packaging & Specialty Products Segment

Revenue was $61.6 million, down 7.9%, from $66.9 million in the corresponding period of 2023. The decrease reflects lower demand from certain sectors more closely correlated to economic conditions partially offset by higher demand for e-commerce packaging solutions. Packaging & Specialty Products represented 29.1% of the Company’s revenue for the nine-month periods ended September 30, 2024, and 2023.

EBITDA⁴ and Adjusted EBITDA⁴

EBITDA was $1.8 million, versus $40.8 million in the first nine months of 2023, in part due to an asset impairment charge. Adjusted EBITDA was $27.4 million, down slightly from $40.1 million for the same period a year ago, reflecting lower revenue and higher selling, general and administrative expenses, partially offset by lower operating expenses. The Adjusted EBITDA margin was 12.9% in the first nine months of 2024, versus 17.5% in the corresponding period of 2023.

Envelope Segment

Adjusted EBITDA was $26.8 million, down from $36.4 million in the first nine months of 2023. This decrease reflects lower revenue due to a decrease in the average selling price and the effect of lower volume on the absorption of fixed costs. As a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 17.9%, compared to 22.4% in the equivalent period of 2023.

Packaging & Specialty Products Segment

Adjusted EBITDA was $6.4 million, compared to $7.2 million in the first nine months of 2023. The decrease is due to lower demand from certain sectors more closely correlated to economic conditions in the first half of the year which impacted the absorption of fixed costs, partially offset by benefits from optimization measures announced in October 2023. As a percentage of segmented revenue, Adjusted EBITDA from the Packaging and Specialty Products segment was 10.4%, compared to 10.8% in the equivalent period of 2023.

Corporate and unallocated costs

Corporate and unallocated costs were $5.8 million compared to $3.5 million in the first nine months of 2023. The increase mainly reflects an unfavourable adjustment related to the DSUs and PSUs due to different share price fluctuations this year versus last year.

Net (Loss) Earnings, Adjusted Net Earnings⁵, Net (Loss) Earnings Per Share and Adjusted Net Earnings Per Share⁵

The net loss was $17.6 million, or net loss of $0.70 per share, for the nine-month period ended September 30, 2024, compared to net earnings of $16.6 million, or net earnings of $0.64 per share, for the equivalent period last year.

Adjusted net earnings amounted to $6.7 million, or $0.27 per share, for the nine-month period ended September 30, 2024, compared to $16.1 million, or $0.62 per share, for the equivalent period in 2023.

Liquidity and Capital Resources

Cash Flow

Net cash flows from operating activities were $7.6 million for the three-month period ended September 30, 2024, compared to $11.5 million for the same period in 2023. The decrease is attributable to lower profitability this quarter compared to the equivalent period of 2023, partially offset by a higher cash generation from working capital.

For the nine-month period ended September 30, 2024, net cash flows from operating activities reached $22.9 million, compared to $29.1 million in the equivalent period of 2023. The decrease is mainly attributable to lower profitability, partially offset by a cash generation from working capital, as opposed to a cash requirement last year.

Free cash flow⁶ amounted to $7.4 million in the third quarter of 2024 compared to $11.6 million for the same period last year. The decrease essentially mirrors the variation in cash flows related to operating activities.

Free cash flow amounted to $23.0 million in the nine-month period ended September 30, 2024, compared to $24.9 million for the corresponding period of 2023. The decrease is attributable to lower cash flows from operating activities, partially offset by net disposals of property, plant and equipment this year, as opposed to net additions last year.

Debt and Leverage

Total debt decreased to $49.6 million as at September 30, 2024, compared to $56.8 million as at December 31, 2023. The variation is essentially attributable to debt repayment resulting from free cash flow generation.

Normal Course Issuer Bid (“NCIB”)

During the three and nine-month periods ended September 30, 2024, the Company repurchased 295,000 and 1,106,400 common shares for cancellation under its NCIB program for considerations of $1.2 million and $4.5 million, respectively.

Dividend Declaration

On November 6, 2024, the Board of Directors declared a quarterly dividend of $0.05 per common share, representing a 25% increase over the previous amount, payable on December 20, 2024, to the shareholders of record at the close of business on December 5, 2024. This dividend is designated as an “eligible” dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.

Outlook

Demand for the Company’s products is gradually returning to historical patterns, although market recovery is taking more time than anticipated. As it continues to expand in the vast and fragmented U.S. envelope market, Supremex will be increasingly subject to competitive pressures, but the Company will rely on its solid reputation and geographic reach to stimulate sales while continuing to proactively control expenses.

The Company remains focused on optimizing operating efficiency, productivity and capacity utilization throughout its network, as well as on capturing all sales and cost synergies from recent business acquisitions. In this regard, initiatives announced in July 2024 for the Envelope segment are expected to result in annual cost savings in excess of $2.0 million once all measures are implemented, while initiatives announced in October 2023 for the Packaging and Specialty Products segment are expected to yield annual cost savings of approximately $1.5 million once all measures are implemented.

With respect to capital deployment, the Company will continue to look for strategic acquisitions, mainly in the Packaging and specialty products segment, while continuing to selectively return capital to shareholders.

November 7, 2024 – Third Quarter Results Conference Call:

A conference call to discuss the Company’s results for the third quarter ended September 30, 2024, will be held Thursday, November 7, 2024, at 80:30 a.m. (Eastern Time). A live broadcast of the Conference Call will be available on the Company’s website, in the Investors section under Webcast. To participate (professional investment community only) or to listen to the live conference call, please dial the following numbers. We suggest that participants call in at least 5 minutes prior to the scheduled start time:

Local (Toronto) and international participants, dial: North American participants, dial toll-free:	647 484-8814
	1 844 763-8274

A replay of the conference call will be available on the Company’s website in the Investors section under Webcast. To listen to a recording of the conference call, please call toll-free 1 855-669-9658 or 412-317-0088 and enter the code 9000033. The recording will be available until Thursday, November 14, 2024.

Non-IFRS Financial Measures

Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies and should not be viewed as alternatives to measures of financial performance prepared in accordance with IFRS. Management considers these metrics to be information which may assist investors in evaluating the Company’s profitability and enable better comparability of the results from one period to another.

These Non-IFRS Financial Measures are defined as follows:

Non-IFRS Measure	Definition
EBITDA	EBITDA represents earnings before net financing charges, income tax expense, depreciation of property, plant and equipment and right-of-use assets and amortization of intangible assets. The Company uses EBITDA to assess its performance. Management believes this non-IFRS measure provides users with an enhanced understanding of its operating earnings.
Adjusted EBITDA	Adjusted EBITDA represents EBITDA adjusted to remove items of significance that are not in the normal course of operations, and/or that do not reflect the Company’s operating expenses and are not indicative of the Company’s core operating performance. These items of significance include, when applicable, but are not limited to, charges for impairment of assets, restructuring expenses, value adjustment on inventory acquired and business acquisition costs. The Company uses Adjusted EBITDA to assess its operating performance, excluding items that are not in the normal course of operations, and/or that do not reflect the Company’s operating expenses and are not indicative of the Company’s core operating performance. Management believes this non-IFRS measure provides users with enhanced understanding of the Company’s operating earnings and increase the transparency and clarity of the Company’s core results. It also allows users to better evaluate the Company’s operating profitability when compared to previous years.
Adjusted EBITDA margin	Adjusted EBITDA margin is a percentage corresponding to the ratio of Adjusted EBITDA divided by revenue. The Company uses Adjusted EBITDA margin for the purpose of evaluating business performance, excluding items that are not in the normal course of operations, and/or that do not reflect the Company’s operating expenses and are not indicative of the Company’s core operating performance. Management believes this non-IFRS measure provides users with enhanced understanding of its results and related trends.
Adjusted net earnings	Adjusted net earnings represent net earnings excluding items of significance listed above under Adjusted EBITDA, net of income taxes. The Company uses Adjusted net earnings to assess its business performance and profitability without the effect of items that are not in the normal course of operations, and/or that do not reflect the Company’s operating expenses and are not indicative of the Company’s core operating performance, net of income taxes. Management believes this non-IFRS measure provides users with an alternative assessment of the Company’s earnings without the effect of items that are not it the normal course of operations or reflective of operating performance, making it valuable to assess ongoing operations and trends in the business performance. Management also believes this non-IFRS measure provides users with enhanced understanding of the Company’s results and provides better comparability between periods.
Adjusted net earnings per share	Adjusted net earnings per share represents Adjusted net earnings divided by the weighted average number of common shares outstanding for the relevant period. The Company uses Adjusted net earnings per share for purposes of evaluating performance and profitability, excluding items that are not in the normal course of operations of the Company, net of income taxes, on a per share basis.
Free cash flow	This measure corresponds to net cash flows related to operating activities according to the consolidated statements of cash flows less additions (net of disposals) to property, plant and equipment and intangible assets. Management considers Free cash flow to be a good indicator of the Company’s financial strength and operating performance because it shows the amount of funds available to manage growth, repay debt and reinvest in the Company. Management considers this measure useful to provide investors with a perspective on its ability to generate liquidity, after making capital investments required to support business operations and long-term value creation.
Net debt	Net debt represents the Company’s total debt, net of deferred financing costs and cash. The Company uses Net debt as an indicator of its indebtedness level and financial leverage as it represents the amount of debt that is not covered by available cash. Management believes that investors could benefit from the use of net debt to determine a company’s financial leverage.
Net debt to Adjusted EBITDA ratio	Net debt to Adjusted EBITDA ratio represents Net debt divided by trailing 12-month (“TTM”) Adjusted EBITDA. This ratio is used by management to monitor the Company’s financial leverage and management believes certain investors use this ratio as a measure of financial leverage.

The following tables provide the reconciliation of Non-IFRS Financial Measures:

Reconciliation of Net (loss) earnings to Adjusted EBITDA (in thousands of dollars, except for margins)	Three-month periods ended September 30				Nine-month periods ended September 30
	2024		2023		2024		2023
Net (loss) earnings	(23,038	)	5,001		(17,562	)	16,610
Income tax (recovery) expense	(801	)	1,815		983		6,070
Net financing charges	1,270		1,348		3,678		4,326
Depreciation of property, plant and equipment	1,755		1,839		5,118		5,108
Depreciation of right-of-use assets	1,575		1,361		4,407		4,087
Amortization of intangible assets	1,777		1,666		5,202		4,636
EBITDA	(17,462	)	13,030		1,826		40,837
COVID-related subsidies	—		(1,456	)	—		(1,456	)
Acquisition costs related to business combinations	(6	)	9		105		272
Asset impairment	23,337		—		23,412		—
Restructuring expenses	2,064		147		2,125		402
Value adjustment on acquired inventory through a business combination	—		—		(54	)	78
Adjusted EBITDA	7,933		11,730		27,414		40,133
Adjusted EBITDA margin (%)	11.4%		16.8%		12.9%		17.5%

Reconciliation of Net (loss) earnings to Adjusted net earnings and of Net (loss) earnings per share to Adjusted net earnings per share (in thousands of dollars, except for per share amounts)	Three-month periods ended September 30				Nine-month periods ended September 30
	2024		2023		2024		2023
Net (loss) earnings	(23,038	)	5,001		(17,562	)	16,610
Adjustments, net of income taxes
COVID-related subsidies	—		(1,068	)	—		(1,068	)
Acquisition costs related to business combinations	(5	)	7		77		201
Asset impairment	22,560		—		22,616		—
Restructuring expenses	1,527		109		1,572		297
Value adjustment on acquired inventory through a business combination	—		—		(40	)	59
Adjusted net earnings	1,044		4,049		6,663		16,099

Net (loss) earnings per share	(0.92	)	0.19		(0.70	)	0.64
Adjustments, net of income taxes, per share	0.96		(0.03	)	0.97		(0.02	)
Adjusted net earnings per share	0.04		0.16		0.27		0.62

Reconciliation of Cash flows related to operating activities to Free cash flow (in thousands of dollars)	Three-month periods ended September 30				Nine-month periods ended September 30
	2024		2023		2024		2023
Cash flows related to operating activities	7,568		11,538		22,886		29,085
Acquisitions (net of disposals) of property, plant and equipment	(189	)	212		212		(4,085	)
Acquisitions of intangible assets	(10	)	(104	)	(76	)	(143	)
Free cash flow	7,369		11,646		23,022		24,857

Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings, Adjusted net earnings per share, free cash flow, Net debt, Net debt to Adjusted EBITDA ratio⁷, capital expenditures, dividend payments, and future performance of Supremex and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and ability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Such assumptions, expectations and estimates are discussed throughout the MD&A for the year ended December 31, 2023, and, in the Company’s Annual Information Form dated March 28, 2024. Supremex cautions that such assumptions may not materialize and that economic conditions such as heightened inflation and central banks’ large interest rate hikes, economic downturns or recessions, may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.

Forward-looking information is subject to certain risks and uncertainties and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the following: decline in envelope consumption, growth and diversification strategy, key personnel, labour shortage, contributions to employee benefits plans, cyber security and data protection, raw material price increases, operational disruption, dependence on and loss of customer relationships, increase of competition, economic cycles, exchange rate fluctuation, interest rate fluctuation, credit risks with respect to trade receivables, availability of capital, concerns about protection of the environment, potential risk of litigation, no guarantee to pay dividends and other external risks such as global health crisis and pandemic and inflation. Such risks and uncertainties are discussed throughout the MD&A for the year ended December 31, 2023, and, in the Company’s Annual Information Form dated March 28, 2024, in particular, in “Risk Factors”. Consequently, the Company cannot guarantee that any forward-looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The Management Discussion and Analysis and Financial Statements can be found on www.sedarplus.ca and on Supremex’ website.

About Supremex

Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions. Supremex operates ten manufacturing facilities across four provinces in Canada and five manufacturing facilities in three states in the United States employing approximately 900 people. Supremex’ extensive network allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs and solutions providers.

For more information, please visit www.supremex.com.

__________________
¹ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.² Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
³ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁴ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁵ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁶ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁷ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.

Markets News

TerrAscend Expands Footprint Despite Q3 Losses, Can A Move To Ohio Turn The Tide?

06.11.2024 by admin

The company recently secured a $140 million senior loan maturing in 2028, carrying a 12.75% interest rate, with no prepayment penalties.

Positive Cash Flow Amid Market Challenges

TerrAscend Corp. TSNDF reported its third-quarter revenue of $74.2 million Wednesday afternoon marking a 4.3% sequential decline, mainly attributed to reduced wholesale sales in New Jersey and retail sales in Michigan. Gross profit totaled $36.2 million, resulting in a gross margin of 48.8%, a slight increase from the previous quarter, driven by operational improvements in Maryland.

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Navigating Losses And Operational Costs

Net loss from continuing operations rose to $21.4 million, a jump from $6.2 million in the previous quarter, impacted by various one-time non-cash adjustments and increased administrative costs. Adjusted EBITDA was $13.7 million, down from $15.6 million, with the adjusted EBITDA margin slipping to 18.5%. Despite these challenges, TerrAscend achieved its ninth consecutive quarter of positive cash flow, generating $1.8 million from operations.

Strategic Financial Moves Support Expansion

The company recently secured a $140 million senior loan maturing in 2028, carrying a 12.75% interest rate, with no warrants or prepayment penalties. Executive chair Jason Wild emphasized TerrAscend’s “ability to execute on growth strategy,” including expansion into Ohio through a newly signed acquisition agreement. With $27.2 million in cash on hand, TerrAscend continues to pursue growth and strengthen its U.S. retail presence, particularly in Ohio and Maryland.

Price Action: TerrAscend shares saw a significant drop, falling 21.00% to close at $0.79,

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Lastest news News Tech

Trevor Lang Exercises Options, Realizes $6.46M

06.11.2024 by admin

Trevor Lang, President at Floor & Decor Hldgs FND, reported a large exercise of company stock options on November 5, according to a new SEC filing.

What Happened: Disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Lang, President at Floor & Decor Hldgs, executed a strategic derivative sale. This involved exercising stock options for 103,598 shares of FND, resulting in a transaction value of $6,460,420.

Floor & Decor Hldgs shares are trading down 11.4% at $96.33 at the time of this writing on Wednesday morning. Since the current price is $96.33, this makes Lang’s 103,598 shares worth $6,460,420.

Discovering Floor & Decor Hldgs: A Closer Look

Floor & Decor Holdings Inc operates as a specialty retailer in the hard surface flooring market. Its stores offer a range of tile, wood, laminate, and natural stone flooring products, as well as decorative and installation accessories at everyday low prices. It appeals to a variety of customers including professional installers, commercial businesses, Do It Yourself (DIY) customers, and customers who buy the products for professional installation. Geographically, the group has a presence in the United States region and also offers its product through an e-commerce site.

Breaking Down Floor & Decor Hldgs’s Financial Performance

Positive Revenue Trend: Examining Floor & Decor Hldgs’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.91% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Holistic Profitability Examination:

Gross Margin: With a low gross margin of 43.46%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
Earnings per Share (EPS): Floor & Decor Hldgs’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.48.

Debt Management: Floor & Decor Hldgs’s debt-to-equity ratio is below the industry average. With a ratio of 0.81, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 60.4 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.68 as compared to the industry average, the stock might be considered overvalued based on sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 27.99 reflects market recognition of Floor & Decor Hldgs’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

A Closer Look at Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Floor & Decor Hldgs’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.

Earnings News

Western Announces Third Quarter 2024 Results

06.11.2024 by admin

VANCOUVER, British Columbia, Nov. 06, 2024 (GLOBE NEWSWIRE) — Western Forest Products Inc. WEF (“Western” or the “Company”) reported a net loss of $19.6 million in the third quarter of 2024, as compared to a net loss of $17.4 million in the third quarter of 2023, and a net loss of $5.7 million in the second quarter of 2024.

Adjusted EBITDA was negative $10.7 million in the third quarter of 2024, which included $1.0 million in export tax recovery, as compared to negative $11.6 million in the third quarter of 2023, which included $4.3 million in export tax recovery, and positive EBITDA of $9.4 million in the second quarter of 2024.

(millions of Canadian dollars except per share amounts and where otherwise noted) ⁽¹⁾	Q3 2024		Q3 2023		Q2 2024		YTD 2024		YTD 2023
Revenue	$	241.7	$	231.1	$	309.5	$	790.7	$	770.9
Adjusted EBITDA ⁽²⁾		(10.7)		(11.6)		9.4		(5.5)		(28.7)
Adjusted EBITDA margin ⁽²⁾		(4%)		(5%)		3%		(1%)		(4%)
Operating loss prior to restructuring and other items	$	(24.4)	$	(25.8)	$	(4.3)	$	(46.0)	$	(69.0)
Net loss		(19.6)		(17.4)		(5.7)		(33.3)		(55.8)
Loss per share, diluted		(0.06)		(0.05)		(0.01)		(0.09)		(0.17)
Net debt ⁽²⁾, end of period		86.4		59.5		84.0
Liquidity ⁽²⁾, end of period		137.3		170.2		141.5
Net debt to capitalization ⁽²⁾		13%		9%		13%

(1)	Certain figures may not add due to rounding
(2)	Refer to Adjusted EBITDA, Adjusted EBITDA margin, Liquidity and Net debt to capitalization in the Non-GAAP Financial Measures section.

Third Quarter 2024 Financial and Operational Summary

Lumber production of 127 million board feet (versus 126 million board feet in Q3 2023).
Lumber shipments of 138 million board feet (versus 130 million board feet in Q3 2023).
Japan lumber shipments of 21 million board feet (versus 19 million board feet in Q3 2023).
Specialty lumber mix of 53% (versus 55% in Q3 2023).
Average lumber selling price of $1,378 per mfbm (versus $1,388 per mfbm in Q3 2023), primarily due to a slightly weaker sales mix of specialty lumber products.
Average BC log sales price of $113 per m³ (versus $118 per m³ in Q3 2023), on weaker sales mix.
Effective August 19, 2024, the US Department of Commerce increased combined countervailing and anti-dumping duty rates to 14.40% from 8.59%.

Accelerating the Transition to Higher Value Products

The new Saltair continuous kiln continues to perform well and surpass its operating uptime and production performance targets. The continuous dry kiln has supported Western’s production of higher value products, given ongoing kiln drying capacity constraints on the BC Coast, and has operated at 98.8% of full capacity utilization since commissioning in April 2024, producing 25 million board feet of higher value kiln-dried lumber.
We continue to advance pre-engineering and permitting related to two previously announced continuous dry kilns, which has included kiln vendor selection and obtaining a draft modified air discharge permit at our Duke Point facility.

Balance Sheet and Cash Flow

Near-term priority remains maintaining a strong balance sheet and financial flexibility.
Ended the quarter with liquidity of $137.3 million and a net debt to capitalization ratio of 13%.
Received our income tax refund of $23 million in Q3 2024.
2024 capital expenditure spending is anticipated to be approximately $35 million.
Cumulative duties of US Dollar (“USD”) $177.7 million (CAD$240.3 million) held in trust by US Customs and Border Protection as at September 30, 2024, or approximately $0.55 per share on an after-tax basis.

Other

As previously announced, we plan to reduce lumber production in our BC sawmills by approximately 30 million board feet in Q4 2024, following reductions of approximately 30 million board feet in Q3 2024.

Market Outlook

Demand and prices for Cedar timber and premium appearance products are expected to remain stable as buyers begin to build inventories for the spring season. Demand for decking products has started to seasonally slow. Most US distribution and dealer customers are generally more cautious as we head towards year-end. Repair and renovation spending is expected to improve gradually in 2025 but remain below peak levels experienced over the last few years.

In Japan, continued softness in wooden home starts, well stocked inventories and a weaker Japanese yen to USD exchange rate are anticipated to impact lumber demand and prices in Japan into the first half of 2025.

Current improved demand and pricing for our Industrial lumber products is expected to continue through the first quarter 2025. For Commodity lumber, North American demand and prices are expected to remain flat with some fluctuations depending upon product line. In China, despite the weaker housing market, lumber prices have slightly improved on lower channel inventory levels, and we expect some modest pricing increases through the end of the year.

Management Discussion & Analysis (“MD&A”)

Readers are encouraged to read our Q3 2024 MD&A and interim consolidated financial statements and accompanying notes which are available on our website at www.westernforest.com and “SEDAR+” at www.sedarplus.ca.

Risks and Uncertainties

Risk and uncertainty disclosures are included in our 2023 Annual MD&A, as updated in the disclosures in our Q3 2024 MD&A, as well as in our public filings with securities regulatory authorities. See also the discussion of “Forward-Looking Statements” below.

Non-GAAP Financial Measures

Reference is made in this press release to the following non-GAAP measures: Adjusted EBITDA, Adjusted EBITDA margin, Net debt to capitalization, and total Liquidity are used as benchmark measurements of our operating results and as benchmarks relative to our competitors. These non-GAAP measures are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. The following table provides a reconciliation of these non-GAAP measures to figures as reported in our audited annual consolidated financial statements:

^{(millions of Canadian dollars except where otherwise noted)}

Adjusted EBITDA	Q3 2024		Q3 2023		Q2 2024		YTD 2024		YTD 2023
Net loss	$	(19.6)	$	(17.4)	$	(5.7)	$	(33.3)	$	(55.8)
Add:
Amortization		13.6		14.1		13.6		40.4		40.4
Changes in fair value of biological assets		0.1		–		(0.1)		–		(0.2)
Operating restructuring items		1.9		(0.2)		1.7		3.4		6.6
Other (income) expense		0.7		(2.2)		(0.6)		(1.7)		(1.3)
Finance costs		1.2		0.5		1.6		4.9		1.2
Income tax recovery		(8.6)		(6.5)		(1.3)		(19.3)		(19.7)
Adjusted EBITDA	$	(10.7)	$	(11.6)	$	9.4	$	(5.5)	$	(28.7)

Adjusted EBITDA margin
Total revenue	$	241.7	$	231.1	$	309.5	$	790.7	$	539.8
Adjusted EBITDA		(10.7)		(11.6)		9.4		(5.5)		(17.1)
Adjusted EBITDA margin		(4%)		(5%)		3%		(1%)		(3%)

Net debt to capitalization	Sept. 30 2024		Sept. 30 2023		Jun. 30 2024
Net debt
Total debt	$	90.0	$	62.0	$	87.8
Bank indebtedness		1.4		0.5		0.5
Cash and cash equivalents		(5.0)		(3.0)		(4.3)
	$	86.4	$	59.5	$	84.0
Capitalization
Net debt	$	86.4	$	59.5	$	84.0
Total equity attributable to equity shareholders of the Company		555.4		599.5		580.3
	$	641.8	$	639.8	$	658.5

Net debt to capitalization		13%		9%		13%

Total liquidity
Cash and cash equivalents	$	5.0	$	3.0	$	4.3
Available credit facility ⁽¹⁾		250.0		250.0		250.0
Bank indebtedness		(1.4)		(0.5)		(0.5)
Credit facility drawings		(90.5)		(62.2)		(87.9)
Outstanding letters of credit		(25.8)		(20.1)		(24.4)
	$	137.3	$	170.2	$	141.5

Figures in the table above may not equal or sum to figures presented in the table and elsewhere due to rounding.

⁽¹⁾Maximum borrowing amount, with advances in excess of $215 million subject to a leverage metric.

Forward Looking Statements and Information

This press release contains statements that may constitute forward-looking statements under the applicable securities laws. Readers are cautioned against placing undue reliance on forward-looking statements. All statements herein, other than statements of historical fact, may be forward-looking statements and can be identified by the use of words such as “will”, “commit”, “project”, “estimate”, “expect”, “anticipate”, “plan”, “forecast”, “intend”, “believe”, “seek”, “could”, “should”, “may”, “likely”, “continue”, “maintain”, “pursue”. “potential” and similar references to future periods. Forward-looking statements in this press release include, but are not limited to, statements relating to our current intent, belief or expectations with respect to: domestic and international market conditions, demands and growth; economic conditions; the capacity of the Company’s facilities and assets including its continuous dry kilns; the completion of the Company’s capital projects and the expected timing thereof; and the Company’s balance sheet and financial flexibility. Although such statements reflect management’s current reasonable beliefs, expectations and assumptions as to, amongst other things, the future supply and demand of forest products, global and regional economic activity and the consistency of the regulatory framework within which the Company currently operates, there can be no assurance that forward-looking statements are accurate, and actual results and performance may materially vary.

Many factors could cause our actual results or performance to be materially different including: economic and financial conditions including inflation, international demand for forest products, the Company’s ability to export its products, cost and availability of shipping carrier capacity, competition and selling prices, international trade disputes and sanctions, changes in foreign currency exchange rates, labour disputes and disruptions, natural disasters, the impact of climate change, relations with First Nations groups, First Nations’ claims and settlements, the availability of fibre and allowable annual cut, the ability to obtain operational permits, development and changes in laws and regulations affecting the forest industry, changes in the price of key materials for our products, changes in opportunities, information systems security and other factors referenced under the “Risks and Uncertainties” section of our MD&A in our 2023 Annual Report dated February 13, 2024. The foregoing list is not exhaustive, as other factors could adversely affect our actual results and performance. Forward-looking statements are based only on information currently available to us and refer only as of the date hereof. Except as required by law, we undertake no obligation to update forward-looking statements.

Reference is made in this press release to adjusted EBITDA which is defined as operating income prior to operating restructuring items and other income (expense) plus amortization of plant, equipment and intangible assets, impairment adjustments, and changes in fair value of biological assets. Adjusted EBITDA margin is adjusted EBITDA as a proportion of revenue. Western uses adjusted EBITDA and adjusted EBITDA margin as benchmark measurements of our own operating results and as benchmarks relative to our competitors. We consider adjusted EBITDA to be a meaningful supplement to operating income as a performance measure primarily because amortization expense, impairment adjustments and changes in the fair value of biological assets are non-cash costs, and vary widely from company to company in a manner that we consider largely independent of the underlying cost efficiency of their operating facilities. Further, the inclusion of operating restructuring items which are unpredictable in nature and timing may make comparisons of our operating results between periods more difficult. We also believe adjusted EBITDA and adjusted EBITDA margin are commonly used by securities analysts, investors and other interested parties to evaluate our financial performance.

Adjusted EBITDA does not represent cash generated from operations as defined by IFRS and it is not necessarily indicative of cash available to fund cash needs. Furthermore, adjusted EBITDA does not reflect the impact of certain items that affect our net income. Adjusted EBITDA and adjusted EBITDA margin are not measures of financial performance under IFRS, and should not be considered as alternatives to measures of performance under IFRS. Moreover, because all companies do not calculate adjusted EBITDA and adjusted EBITDA margin in the same manner, these measures as calculated by Western may differ from similar measures calculated by other companies. A reconciliation between the Company’s net income as reported in accordance with IFRS and adjusted EBITDA is included in this press release.

Also in this press release management may use key performance indicators such as net debt, net debt to capitalization, and current assets to current liabilities. Net debt is defined as long-term debt less cash and cash equivalents. Net debt to capitalization is a ratio defined as net debt divided by capitalization, with capitalization being the sum of net debt and equity. Current assets to current liabilities is defined as total current assets divided by total current liabilities. These key performance indicators are non-GAAP financial measures that do not have a standardized meaning and may not be comparable to similar measures used by other issuers. They are not recognized by IFRS, however, they are meaningful in that they indicate the Company’s ability to meet their obligations on an ongoing basis, and indicate whether the Company is more or less leveraged than the prior year.

Conference Call

Thursday, November 7, 2024 at 9:00 a.m. PST (12:00 p.m. EST).

To participate in the teleconference please dial 416-340-2217 or 1-800-952-5114 (passcode: 5279256#). This call will be taped, available one hour after the teleconference, and on replay until December 8, 2024 at 8:59 p.m. PST (11:59 p.m. EST). To hear a complete replay, please call 905-694-9451 / 1-800-408-3053 (passcode: 3621073#).

About Western Forest Products Inc.

Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets. With operations and employees located primarily on the coast of British Columbia and Washington State, Western is a premier supplier of high-value, specialty forest products to worldwide markets. Western has a lumber capacity of 885 million board feet from six sawmills, as well as operates four remanufacturing facilities and two glulam manufacturing facilities. The Company sources timber from its private lands, long-term licenses, First Nations arrangements, and market purchases. Western supplements its production through a wholesale program providing customers with a comprehensive range of specialty products.

For further information, please contact:

Glen Nontell
Chief Financial Officer
(604) 648-4500

Markets News

Curaleaf Q3 Results: Strong Margins But $44M Loss, What's Next For Investors?

06.11.2024 by admin

Curaleaf Holdings, Inc. CURLF posted its third-quarter revenue of $331 million on Wednesday afternoon, marking a modest 1% year-over-year decline.

Gross profit reached $160.5 million, with a gross margin of 49%, a significant improvement of 312 basis points from the prior year. Gross margin measures the profitability of the core business (i.e., revenue minus the direct cost of goods sold). This indicates that for each dollar of sales, Curaleaf retained 49 cents after direct costs. However, gross margin doesn’t account for other operating expenses.

CEO Boris Jordan noted that Curaleaf’s international business, which grew 82% year-over-year to $30 million, offers a strategic opportunity amidst U.S. market saturation.

Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you’re serious about the business.

Adjusted EBITDA Reflects Operational Discipline

The company reported a net loss of $44 million, equivalent to $0.07 per share, with adjusted EBITDA at $75.3 million, maintaining an adjusted EBITDA margin of 23%.

Operating cash flow reached $42.3 million, contributing to a year-to-date free cash flow of $53 million.

Jordan highlighted the company’s “disciplined execution” amid challenging market conditions.

Securing Financial Flexibility

Curaleaf recently obtained a $40 million revolving credit facility at a competitive 7.99% interest rate, a significant milestone for the cannabis industry.

With $90 million in cash and a continued focus on capital efficiency, Curaleaf is positioned to navigate market pressures and further expand its footprint in both U.S. and international markets.

Price Action: At the close on Wednesday, Curaleaf’s stock was priced at $2.18 per share, reflecting a 30.26% drop.

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Earnings News

DraftKings Q3 Earnings Highlights: NFL In Focus, Will Missouri Legalization Factor Into Guidance?

06.11.2024 by admin

Sports betting and online gaming company DraftKings Inc DKNG could highlight early results from the 2024 NFL season and new state legalizations when the company reports third-quarter financial results Thursday after market close.

Earnings Estimates: Analysts expect the company to report third-quarter revenue of $1.11 billion, up from last year’s third-quarter total of $789.96 million according to data from Benzinga Pro.

The company missed analyst estimates for revenue for the second quarter and two of the past three quarters, but has beaten analyst estimates for revenue in eight of the last 10 quarters overall.

Analysts expect DraftKings to report a loss of 42 cents per share in the third quarter, compared to a loss of 35 cents per share in last year’s third quarter. The company has beaten analyst estimates for earnings per share in 10 straight quarters.

What Analysts Are Saying: Strong market share in the sports betting space and the potential to surprise with updated financial guidance has Bank of America analyst Shaun C. Kelley bullish on DraftKings ahead of the earnings report.

The analyst, who has a Buy rating and $50 price target, recently said revenue flowthrough for the second half of the fiscal year could be better than expected and “protect” EBITDA for fiscal 2024.

“We expect top-line growth in the fourth quarter to come in slightly below guidance driven by unfavorable hold and challenging iGaming comps,” Kelley said.

The analyst said DraftKings could also show its hold expansion similar to peer FanDuel with lower promotional spending activity.

Concerns for DraftKings in the third quarter include slower app downloads and unfavorable NFL game outcomes, Kelley added.

A near duopoly of the online sports betting space for DraftKings and FanDuel owner Flutter Entertainment FLUT was highlighted by Needham analyst Bernie McTernan recently.

McTernan said the total addressable market size of the U.S. online sports betting market could “continue to surprise to the upside.”

“Scale and commitment to product leadership from FanDuel and DKNG likely keeps the OSB market dominated by these two players,” McTernan said.

A Needham survey revealed that sports bettors primarily use FanDuel and DraftKings.

“We think share can continue to ebb and flow between FanDuel and DKNG as we do not see a physical network effect in OSB meaning there is not a structural reason for dominant market share leader like digital marketplaces.”

McTernan said unless the market structure in the U.S. changes, it’s “FanDuel and DKNG at the top and then everyone else.”

FanDuel (37.8%) and DraftKings (34.8%) had a combined 73% market share in 2023. BetMGM ranks a distant third at 8.6% market share.

In the second quarter of 2024, FanDuel had a market share of 37.3% with DraftKings at 37.0%. Both BetMGM and fourth-place Caesars had lower market share in the first two quarters of 2024 compared to 2023.

Key Items to Watch: DraftKings quarterly financial results come after the start of the 2024 NFL season, which is one of the most bet on sports in the U.S. and a key to revenue and earnings for the company in the fourth quarter.

Guidance from the company and early commentary on the NFL season will be closely watched by investors.

The company announced an inaugural $1 billion share buyback in the second quarter. Investors and analysts will be watching to see if any shares were bought during the third quarter.

DraftKings acquisition of Jackpocket led to lower average revenue per monthly unique paying customer in the second quarter and could be an area to watch for investors and analysts.

As of July 25, DraftKings is live with mobile sports betting in 25 states and Washington, D.C., representing 49% of the U.S. population.

The company is live with iGaming in five states.

On Tuesday, voters in Missouri approved sports betting, becoming the 39^th state to legalize. There is no current timetable on when the state will be live, but DraftKings and FanDuel supported the ballot proposal.

Missouri is the 18^th most populous state and fourth-largest state that has not yet legalized sports betting, according to a report from Sportico.

DraftKings previously said there were 10 jurisdictions representing 12% of the U.S. population that have introduced legislation or introduced a bill for a referendum to legalize mobile sports betting.

An update on the timetable in Missouri and where other states stand could come from the company on Thursday.

DKNG Price Action: DraftKings stock was up 4.94% to $38.25 on Wednesday at market close versus a 52-week trading range of $28.69 to $49.57. DraftKings stock is up 14% year-to-date in 2024.

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