B2Gold Corp.

BTG Details

B2Gold Corp. (NYSE: BTG) is a Canadian gold mining company that owns and runs three gold mines in Mali, the Philippines, and Namibia: the Fekola mine, the Masbate mine, and the Otjikoto mine. It also holds a 50% investment in the Gramalote project in Colombia and an 81 percent stake in the Kiaka project in Burkina Faso. Mali, Burkina Faso, Namibia, Uzbekistan, and Finland are among the company's other exploration areas.

Latest News:

• Quarterly Dividend: On February 22, 2022, the company declared a quarterly dividend of USD 0.04 per common share (amounting to 0.16 per share on annualized basis), paid on March 17, 2022, to shareholders of record on March 09, 2022.

Q1FY22 Results:

• Marginal Growth in Topline: The company reported a growth of 0.91% in revenues to USD 365.58 million in Q1FY22 (ended March 31, 2022) compared to USD 362.30 million in Q1FY21, driven by 4.63% growth in Average Realized Prices, offset by 3.57% decrease in volumes sold.
• Decrease in Net Income: However, BTG witnessed an decrease in net income to USD 90.80 million in Q1FY22 vs. USD 98.83 million in Q1FY21.
• Healthy Balance Sheet: As of March 31, 2022, the company had a cash balance of USD 648.76 million with outstanding debt of USD 72.66 million.

Key Risk:

• Metal Price Risk: The highly unpredictable and uncontrollable prices of gold and other metals on the global market substantially impact BTG's business. As a result, any unfavorable price movement could have a detrimental influence on the company's financial performance.

Outlook:

2022 Guidance (Source: Q1FY22, Earnings Presentation)

Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

Stock Recommendation:

BTG' stock price has fallen 14.97% in the past twelve months and is currently leaning towards the lower end of its 52-week range of USD 3.30 to USD 5.37. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 4.81.

Considering the correction in the stock price, strong margins, high liquidity, current valuation, and associated risks. We recommend a "Hold" rating on the stock at the current price of USD 4.365, up 0.58% as of May 06, 2022, 08:13 AM PDT.

Three-Year Technical Price Chart (as on May 06, 2022, at 08:13 AM PDT). Source: REFINITIV, Analysis by Kalkine Group

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: All forecasted figures and industry information have been taken from REFINITIV.  

Note 3: The report publishing date is as per the Pacific Time Zone.