Post reports of its financial and operational results for the first quarter of 2015, B2Gold (BTG, Financial) announced record gold sales of 114,799 ounces as well as record gold production of 115,859 ounces, a 20% increase from the same period y-o-y.
Number mix
The company reported consolidated cash operating costs of $701 per ounce. B2Gold Corp’s profits for the first quarter hit $6.26 million, compared to a $24 million loss or a 4 cent loss per share last year. Gold revenue rose 8% to touch $138.9 million compared to $129.02 the previous year.
Thanks to successful production beginning at its latest acquisition, the Otjikoto mine, the company reported quarterly consolidated gold production of 115,859 ounces, an increase of 20% compared year over year.
The company’s various other mines performed as expected. Gold production from the company’s Philippines’ Masbate mine touched 46,241 ounces which highlighted a 9% rise when compared year over year. B2Gold’s La Libertad and Limon mines based out of Nicaragua were responsible for producing 25,326 ounces and 13,158 ounces each.
B2Gold’s balance sheet turned out a solid performance with the mining company showing $128.1 million in cash as well as $235 million in total current assets. This is comparable to just $91.82 million in current liabilities as opposed to the company’s $143.18 million working capital.
Road ahead
B2Gold will be projecting a record year for gold production this year with its operational output expected to hit between 500,000 ounces and 540,000 ounces of gold – this being an increase of around 35% compared to production in 2014.
The company is still in fervent discussion with its investors over financing the Fekola project construction in Mali. An up-to-date revolving credit facility is expected to be completed that will increase the current credit facility from $200 million to $400 million in the coming quarter.
Company profile
B2Gold Corp was formed in 2006 based out of Vancouver, Canada, and is a gold mining company that develops mineral properties in countries like the Philippines, Chile and Nicaragua. B2Gold explores these countries for minerals such as gold and copper with a 100% stake in the La Libertad mine, consisting of a total area of 10,950 hectares found in Nicaragua. B2Gold also has a 95% stake in the Limon mine covering an area of 12,000 hectares found northwest of Managua as well as a 95% stake in the Masbate mine found in northern Masbate.
Analysis
B2GOLD Corp’s gross profit margin for the fourth quarter of the fiscal year has significantly decreased compared on a year-over-year basis. Sales and net income have comparatively fallen. The growth in net income has underperformed compared to the average competitor in the industry; however the revenue has not fallen. B2GOLD CORP has strong liquidity with a quick ratio of 1.76 that shows the company’s ability to pay for short-term cash requirements. B2CORP’s liquidity has dropped in value from the same period the previous year.
During this period, stockholders’ equity has dropped 11.63% from this quarter last year. These key measurements indicate the company will probably not have much financial problems in the next few quarters.
Analysts are giving B2Gold Corp a SELL rating on the basis of its weaknesses having a predicted more potent impact than its strengths, making it a problem for investors to achieve positive results. The company’s weaknesses can be seen in various areas, such as a weak growth in its EPS, a flailing net income, a low return on equity as well as a historically bad performing stock.
