11:20 AM EST, 12/02/2024 (MT Newswires) -- (Adds analyst comment.)

B2Gold (BTO.TO) on Monday said it will continue to operate the Fekola mine in Mali at full throughput capacity despite a strike that began on Nov. 29.

The Fekola workers union is on a seven-day strike that ends Dec. 5.

The company still expects to be near the lower end of its annual production guidance for Fekola of between 420,000 and 450,000 ounces of gold in 2024.

B2Gold said it believes the strike was primarily in response to action taken against a number of Fekola employees that previously engaged in illegal activities that affect productivity at the mine, including "go slow" actions and an illegal sit in at the management office in August.

The company said it is willing to participate in meetings with the Fekola workers union to reach a resolution.

B2Gold is making progress with the state of Mali on deliverables and implementation of necessary steps under a memorandum of agreement signed in September, including the issuance of permits to commence exploitation at Fekola Regional.

Upon issuance of the permit, mining operations will begin with initial gold production expected to start in early 2025. The operation will potentially generate about 80,000 to 100,000 ounces of additional gold production on an annualized basis from Fekola Regional sources.

National Bank of Canada maintained its outperform rating and $6.00 price target on B2 shares following the news.

The bank noted that the development at Fekola "seems to be an outlier in otherwise incident-free labor relations over an extended operating period."

Price: 3.89, Change: -0.19, Percent Change: -4.66