Clive Johnson

THE down-to-earth Johnson seems to have come off fairly well in his dealings with the Malian government over the country’s new Mining Code, which had the potential to seriously affect B2Gold’s prospects given the huge growth potential of the group’s rich Fekola mining complex. The group lost a year in expanding output from Fekola after the government stalled on the granting of new mining permits. B2Gold announced in September that the dispute had been resolved and the Fekola expansion was going ahead. 

The agreement was that the Fekola regional operations would be governed by the new 2023 Mining Code but the existing Fekola Mine would remain subject to the old Mining Code passed in 2012. B2Gold managed to avoid the level of confrontation that affected Barrick, which had four of its employees arrested, and Resolute, which saw its CEO detained for 10 days. Despite this outcome it seems likely the B2Gold share price is going to continue to be negatively affected by investor caution over the uncertain political situation in West Africa.

 In February last year, Johnson acknowledged the potential threat from political pressure, but pointed out that the Malian government also had a lot to lose because of the 10% contribution that the Fekola mine made to the country’s overall gross national product. In the meantime Johnson continues to hedge B2Gold’s bets through further diversification, with the latest being the Goose Project in Northern Canada. It comes at a cost though.  In January, the firm cut the dividend rate while it spends on growth. A plan has also been hatched to buy-back shares should investors take flight at the sudden asperity.