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Alberto Abaterusso
Alberto Abaterusso
Articles (1382) 

B2Gold Corp Rises

The company delivered figures for the 2nd quarter

August 09, 2018 | About:

B2Gold Corp. (BTG) rose 2.5% to $2.47 per share on the stock market on the heels of the release of second-quarter results.

The miner closed the quarter with an adjusted net earnings of 5 cents per share, which was a 400% growth year-over-year. The adjusted net profit was $46 million. The mining company met consensus on earnings.

The revenue came in at $284.81 million, which was a 73.3% increase year-over-year. B2Gold beat consensus on revenues by $740,000.

B2Gold Corp. continues to generate robust cash flow at its operations with a second-quarter inflow of $86 million, which was up 79% compared with the same quarter last year.

The company realized the benefits of new production from the Fekola mine in Mali, in addition to a 4% growth in the average gold price to $1,306.45 per troy ounce traded on the London market of the second quarter of 2017.

The record quarterly consolidated output of 240,093 ounces of gold, a 98% increase year-over-year, and a substantial decrease in per ounce production costs also backed financial results for the second quarter. Higher outputs of gold from the Otjikoto Mine in Namibia and the Masbate Mine in the Philippines also helped B2Gold to exceed expectations.

The consolidated cash operating cost was $474 per ounce, a 25% decline from the prior-year quarter. The consolidated All-In-Sustaining-Cost, or AISC, was $721 per ounce of metal sold, a 26% decrease from the same quarter of 2017. Both items were also below what the miner budgeted for 2018.

For full fiscal 2018, B2Gold Corp. targeted gold production of 920,000 ounces to 960,000 ounces, at a consolidated cash cost of $505 to $550 per ounce and at an AISC of $830 per ounce.

The company closed the second quarter with a $40 million decrease in cash and cash equivalents from the fourth quarter of 2017. The total liquidity jumped to $382 million when an undrawn line of credit was considered.

Unless the notes are converted into shares prior to Oct. 1, the company has to repay a $259 million convertible corporate loan. The conversion price is set at $3.93 per share.

B2Gold Corp. believes that this year's operations and its total liquidity should provide the company with the financial resources she needs to refund the convertible corporate loan and to secure her the cash position. That should be accomplished even at a gold price of $1,200 per ounce.

The stock in B2Gold Corp traded below the 200, 100 and 50-SMA lines. The market capitalization was $2.46 billion based on a volume of 978.01 million shares outstanding. The current share price was $7 off the 52-week low of $2.40 per share and 34% far from the 52-week high of $3.30 per share.

The stock in B2Gold Corp has a price-book ratio of 1.5 times towards an industry median of 2.06 times.

The recommendation rating is 1.5 out of 5 and the average target price is $3.50 per share.

(Disclosure: I have no positions in any security mentioned in this article.)

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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