B2Gold Corp.

BTG Details

 B2Gold Corp. (NYSE: BTG) is a Canadian gold mining company that owns and operates the Fekola, Masbate, and Otjikoto gold mines in Mali, the Philippines, and Namibia. It also holds a 50% stake in the Colombian Gramalote project and an 81% stake in the Burkina Faso Kiaka project.

Latest News:

• Essential Permits: BTG reported on February 2, 2022, that the Mali government had recently given its Malian subsidiary new exploration permission encompassing the same perimeter as the Menankoto permit, which, along with the Bantako North permit, makes up the Anaconda area. The Cardinal-FMZ deposits, located around 500 meters from the Fekola resource pit, have also upgraded and significantly boosted their Mineral Resource estimate.
• Record Production: The company produced 1.05 million ounces of total gold, marking the 13th consecutive year of record annual total gold production.

Financial Highlights: Q4FY21 and Full Year-2021 Results released on February 22, 2022.

Source: Company's Website

• Boost in Top Line: The company reported a 9.72% increase in gold revenue to USD 526.11 million in Q4FY21, up from USD 479.53 million in Q4FY20.
• Improved Cash Position: As of December 31, 2021, the company had recorded USD 673.00 million as cash and cash equivalents against USD 479.69 million as of December 31 2020.
• Dividend Payment: The company declared a cash dividend of USD 0.04 per common share on February 22, 2022, which will be paid on March 17, 2022, to shareholders of record on March 09, 2022.

Key Risks:

• Metal Price Risk: Gold and other metals prices on the worldwide market are highly volatile, significantly influencing the company's financials. As a result, any adverse price movement may harm the company's financial performance.
• Exploration Risk: Mineral exploration and development entails considerable risks and uncertainties, which could have a significant negative impact on our company, financial condition, and results of operations.

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Stock Recommendation:

In 2022, BTG will continue to pursue sulphide mineralization beneath the saprolite deposits at the Mamba, Adder, and numerous additional locations. The 52-week high and low of the stock is USD 5.37 and USD 3.30, respectively. Considering the correction of 18.48% in the stock price in the past nine months, growth in revenues, strong cash position, new exploration permits, current valuation, and associated risks, we recommend a "Hold" rating on the stock at the closing price of USD 4.19, up 3.97% as of March 01, 2022. Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing.

BTG's 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)

Technical Summary Analysis

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.