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B2Gold's (BTG) Earnings Beat, Sales Miss Estimates in Q1

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B2Gold Corp’s (BTG - Free Report) shares have gained 3.6% since the company reported first-quarter 2021 results. Adjusted earnings per share for the quarter came in at 9 cents, which beat the Zacks Consensus Estimate of 7 cents. The bottom line remained flat year over year.

Including one-time items, the company reported earnings of 9 cents per share compared with the prior-year quarter’s 7 cents per share.

B2Gold generated revenues of $362 million in first-quarter 2021, reflecting a year-over-year decline of 5%. This downside resulted from the 16% reduction in gold ounces sold, partly offset by an 11% increase in the average realized gold price. The top-line figure missed the Zacks Consensus Estimate of $368 million.

During the March-end quarter, B2Gold recorded consolidated gold production of 205,643 ounces, down 17% year over year due to planned significant waste stripping campaigns at the Fekola and Otjikoto mines. Total gold production in the quarter was 220,644 ounces, which is 9% above budget.

The company reported consolidated cash operating costs of $609 per ounce in the reported quarter, up 56.6% from the year-ago period. Consolidated all-in sustaining costs (AISC) of $932 per ounce came in 29.2% higher than the prior-year quarter.

In January-March quarter, total cost of sales was $205 million, up 9% year over year.

Gross profit declined 18.2% year over year to $157 million. Gross margin was 43.3% in the reported quarter compared with the prior-year quarter’s 49.4%.

Operating income in the reported quarter was $150 million, reflecting a year-over-year decline of 16%. Operating margin was 41.4% compared with the year-ago quarter’s 47.1%.

B2Gold Corp Price, Consensus and EPS Surprise

B2Gold Corp Price, Consensus and EPS Surprise

B2Gold Corp price-consensus-eps-surprise-chart | B2Gold Corp Quote

Financial Position

B2Gold’s cash and cash equivalents were $513 million at the end of first-quarter 2021 compared with $480 million at the end of 2020. Operating cash flow was $146 million in the first quarter compared with the prior-year quarter’s $216 million. The company’s long-term debt was $67 million as of Mar 31, 2021, down from $76 million as of Dec 31, 2020.

Outlook

B2Gold expects total production in 2021 to be 970,000-1,030,000 ounces. Cash operating costs are projected between $500 per ounce and $540 per ounce. Meanwhile, AISC is anticipated to be within $870 per ounce to $910 per ounce.

Share Price Performance

Over the past year, B2Gold has declined 4.9% compared with the industry’s loss of 6.4%.


 

Zacks Rank & Stocks to Consider

B2Gold currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include ArcelorMittal (MT - Free Report) , Celanese Corp. (CE - Free Report) and Dow Inc. (DOW - Free Report) .  All of these stocks flaunt a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

ArcelorMittal has a projected earnings growth rate of 984.7% for the current fiscal year. The company’s shares have soared nearly 179% in the past year.

Celanese has an expected earnings growth rate of 68.3% for the current fiscal year. The company’s shares have rallied around 90% over the past year.

Dow has a projected earnings growth rate of 261.6% for the current fiscal year. The company’s shares have gained roughly 75% in a year’s time.

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