Can B2Gold's Fekola Expansion Fuel Long-Term Growth in Mali?

B2Gold Corp. BTG has received approval from the State of Mali to initiate underground operations, including stope ore production, at the Fekola Mine in Mali, an important milestone that will help boost its production capacity. 

The Fekola Complex comprises the Fekola Mine (Medinandi permit hosting the Fekola and Cardinal open pits and Fekola underground), in which B2Gold has an 80% stake and the State of Mali holds 20%. The complex also includes Fekola Regional (Anaconda Area and the Dandoko permit), which is 65% owned by B2Gold and 35% by the State of Mali.

Since last year, B2Gold has undertaken underground exploration development work, which entails the installation of all required underground mining infrastructure at the Fekola Mine in anticipation of the receipt of approval. With regulatory approval now in hand, stope ore production has begun, and previously stockpiled ore is being processed at the Fekola mill.

Fekola underground is projected to contribute 25,000–35,000 ounces of gold in 2025, ramping up significantly from 2026 onward. B2Gold reiterates its 2025 gold production guidance for the Fekola Complex at 515,000-550,000 ounces. Fekola produced 93,805 ounces of gold in the first quarter. 
Also, B2Gold and the State of Mali have committed to work together to finalize the approval of the Fekola Regional exploitation permit, now expected prior to the end of the third quarter of 2025. The development of Fekola Regional has the potential to enhance the Fekola Complex production profile and extend the mine life. 

Fekola Regional is anticipated to contribute approximately 180,000 ounces of additional annual gold production in its first four full years of production from 2026 through 2029, with a mine life expected to extend well into the 2030s.

Other Key Miners Operating in Mali

Barrick Mining Corporation B holds an 80% stake in the Loulo-Gounkoto complex, which comprises two distinct mining permits, Loulo and Gounkoto, and is situated in western Mali. The State of Mali holds the remaining 20%. 

The Loulo-Gounkoto complex contributed 578,000 ounces of gold to Barrick Mining’s production in 2024. On Jan. 14, 2025, due to the restrictions imposed by the Government of Mali on gold shipments, Barrick Mining announced the temporary suspension of the Loulo-Gounkoto complex. Barrick Mining has, thus, excluded Loulo-Gounkoto from its 2025 production guidance. 

Endeavour Silver Corporation EXK has an 80% stake in the Kalana project, with the rest 20% owned by the Government of Mali. It has a 11-year mine life. Kalana has an average annual production of 150,000 ounces at all-in sustaining costs of $901 per ounce. Endeavour Silver acquired the Kalana project in 2017, which is located approximately 250 km south of Bamako, the capital city of Mali.

BTG’s Price Performance, Valuations & Estimates

B2Gold stock has gained 41% year to date compared to the Zacks Mining – Gold industry’s 55.7% growth. During this time, the Basic Materials sector has risen 8.3%  and the S&P 500 has gained 5.7%.

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BTG is currently trading at a forward 12-month earnings multiple 5.86X, at a discount to the industry average of 12.26X. The stock has a Value Score of A.

The Zacks Consensus Estimate for B2Gold’s 2025 sales is $3.08 billion, indicating 61.8% year-over-year growth. The consensus mark for the year’s earnings is 58 cents per share, indicating year-over-year growth of 262.50%. 

The Zacks Consensus Estimate for 2026 sales implies 0.91% year-over-year growth. The same for earnings indicates year-over-year growth of 1.97%.

EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below.

BTG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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