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B2Gold (BTG) Q3 Total Gold Production & Sales Up Y/Y, '21 View Up

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B2Gold Corp’s (BTG - Free Report) total gold production in third-quarter 2021 came in at 310,261 ounces (including 14,538 ounces of attributable production from Calibre Mining Corp.), 7% above the budget and up 18% year over year. The consolidated gold revenues during the July-September period came in at $511 million, up from the $487 million reported in the prior-year quarter.

The company reported consolidated gold production of 295,723 ounces from its three operating mines during the September-end quarter, 7% above the budget level. This marks year-over-year growth of 19%, driven by the increased throughput at the Fekola mill, coupled with the completion of the significant waste stripping campaigns at both Fekola and Otjikoto mines in the first half of 2021 (for Phase 5 and Phase 6 of the Fekola Pit, and Phase 3 of the Wolfshag and Otjikoto pits). Mining at Fekola and Otjikoto reached the higher-grade zones of the Fekola Pit and at the base of the Wolfshag Pit, respectively, in the third quarter of 2021.

Gold revenues improved 5% in the quarter owing to the 13% increase in the attributable gold ounces sold, partly offset by an 8% decline in the average realized gold price. In the third quarter, the company sold 286,650 ounces of gold at an average price of $1,782 per ounce compared to the 253,200 ounces sold at an average price of $1,924 per ounce in the year-ago period.

The company witnessed solid performances across its Fekola, Masbate and Otjikoto mine operations during the third quarter, outpacing the respective targeted production for the quarter. Backed by the strong production performance so far this year, B2Gold has increased the current-year total gold production guidance to 1,015,000-1,055,000 ounces, up from the prior guided range of 970,000 ounces to 1,030,000 ounces. Total cash operating costs are projected between $500 per ounce and $540 per ounce. Total All-in sustaining cost (AISC) is anticipated to be $870-$910 per ounce. B2Gold continues to focus on maximizing the profitable production from its mines, advancing development and exploration projects, evaluating opportunities and paying considerable dividend.

The company is focused on achieving impressive operational and financial performance from its existing mines, and expanding the Fekola Mine throughput and annual gold production. The Fekola mill now has the potential to run at an annualized throughput rate of 8.3 Mtpa this year.

B2Gold intends to pursue additional internal growth through further exploration, development and expansion of the existing projects. It is planning for heavy exploration this year, with an approximately $66-million budget, including $25-million high-quality targets for the ongoing grassroots exploration programs. The company expects to generate operating cash flow of $630 million for 2021, assuming gold price of $1,800 per ounce.

Price Performance

B2Gold’s shares have lost 36.7% so far this year compared with the industry’s decline of 21%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

B2Gold currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Nucor Corporation (NUE - Free Report) , Methanex Corporation (MEOH - Free Report) and Celanese Corporation (CE - Free Report) . While Nucor and Methanex sport a Zacks Rank #1 (Strong Buy), Celanese carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has an estimated earnings growth rate of 537.4 % for the ongoing year. So far this year, the company’s shares have appreciated 82.9%.

Methanex has a projected earnings growth rate of 409.3 % for 2021. The company’s shares have gained 6% so far this year.

Celanese has an estimated earnings growth rate of 122.3% for the current year. The company’s shares have gained 28.6%, year to date.


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