B2Gold Surges 23% on Mali Permit Approval
B2Gold's (NYSEAMERICAN:BTG) stock surged 23% after Mali granted a permit for pre-stripping activities at Fekola Regional, offsetting a shortfall in second-quarter earnings. The company's production forecast was lowered by 2.8%, while its all-in sustaining cost improved by 1.2%. The Menankoto permit will allow B2Gold to produce over 150,000 ounces annually from 2028.
The grant of the permit shifts the valuation discussion and has a significant impact on the company's stock price. Attributable gross metal value is expected to exceed $423 million at Friday's gold price, prior to deductions for costs, royalties, and taxes. The gold price itself climbed 2.3% to $4,336.02 on Friday.
Despite mixed performance in the second quarter, B2Gold's stock rose by approximately $1.25 billion, with a 94-cent increase multiplied by 1.33 billion shares in issue. The stock jump was significant even though the company reported softer core earnings and reduced its production outlook.