B2Gold Corp. (TSX: BTO) lowered its 2026 cost guidance on Wednesday, even though third quarter all-in sustaining costs came in above the new range. A lighter quarter at its flagship Fekola mine pulled consolidated output to its lowest level of the year.
Revenue rose to US$836 million from US$789 million in the second quarter, as the end of the company’s prepaid gold sales contracts in June meant all of its ounces were sold at market prices. B2Gold realized an average of US$4,289 per ounce on 195,018 ounces sold.
Attributable net income was US$409 million, or US$0.31 per share, the same per share figure as the prior quarter. One-time items lifted both periods. The third quarter included a US$253 million impairment reversal at Fekola, and the second quarter included a US$292 million gain on the sale of the company’s Finland properties.
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Adjusted figures give a clearer picture of the improvement. Adjusted net income rose to US$183 million, or US$0.14 per share, from US$41 million, or US$0.03 per share, in the second quarter, when results absorbed US$71 million in realized losses on gold collars.
Free cash flow turned positive at US$48 million after an outflow of US$258 million in the prior quarter. The company ended September with US$294 million in cash, up from US$287 million, and its US$705 million revolving credit facility remains undrawn. B2Gold returned US$59 million to shareholders through dividends and buybacks during the quarter.
Gold production fell to 193,321 ounces from 203,648 ounces in the second quarter. Fekola produced 78,119 ounces as open pit work shifted to waste stripping in Phase 8, a program expected to run through most of 2027. Masbate added 53,363 ounces, Goose 39,973 ounces and Otjikoto 21,866 ounces.
Costs rose with the lower volumes. Consolidated cash operating costs were US$1,347 per ounce sold, and all-in sustaining costs climbed to US$2,602 per ounce from US$2,356 in the second quarter. Goose remains the outlier at US$4,816 per ounce. Its mill is running at about 3,200 tonnes per day after repairs from an April fire in the crushing circuit, and the company expects that rate to hold until mid-2027.
Year to date production of 634,732 ounces leaves B2Gold needing roughly 185,000 ounces in the fourth quarter to reach the low end of its unchanged guidance of 820,000 to 920,000 ounces. That is below its third-quarter output. Reaching the midpoint would take about 235,000 ounces, close to what the company produced in the first quarter.
The new all-in sustaining cost guidance of US$2,230 to US$2,410 per ounce, down from US$2,370 to US$2,550, depends on that stronger finish. Year to date costs of US$2,267 per ounce are inside the range, but the third quarter alone came in well above its upper end.
B2Gold last traded at $7.15 on the TSX.
