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B2Gold (BTG) Reports Drilling Results From Fekola Complex

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B2Gold Corporation (BTG - Free Report) announced additional positive exploration drilling results from its Fekola Complex in Mali. Following the successive production records at the Fekola Mine in October and November, the company reaffirmed its 2022 total gold production guidance within 990,000 to 1,050,000 ounces. The stated total production includes 40,000 to 50,000 attributable ounces estimated from Calibre Mining Corp.

The Fekola Mine produced record gold of 79,967 ounces in October and 95,460 ounces in November, owing to higher-grade Fekola open-pit Phase 6. The company expects mining to continue from Fekola open-pit Phase 6 through the rest of 2022 and into 2023.

The company is organizing a $35-million exploration program on the Fekola Complex in 2022. During this program, B2Gold will focus its drilling on the Anaconda Area of the Fekola Complex, including Adder, Cascabel, Mamba, Viper, and Cobra zones. On the Fekola Complex, B2Gold has finished almost 169,000 meters of combined diamond, reverse circulation and aircore drilling so far in 2022.

B2Gold stated that exploration at the Mamba Zone is focused on expanding high-grade sulfide mineralization shoots. Exploration at the Cobra Zone is focused on expanding saprolite mineralization near the surface and sulfide mineralization at depth.

The company found saprolite mineralization at the new Boomslang Zone, which is 800 meters to the west and parallel to the Cobra Zone. There are further opportunities for more north-south trending deposits parallel to the Mamba and Cobra Zones to be unearthed.

In the third quarter of 2022, BTG results reflected lower gold ounces sold due to realized gains on the settlement of fuel derivatives. The company posted adjusted earnings of 3 cents per share, missing the Zacks Consensus Estimates of 5 cents per share. It reported adjusted earnings of 12 cents in the year-ago quarter. Net sales for the quarter totaled $393 million, in line with the Zacks Consensus Estimates. This compares unfavorably with the year-ago quarter’s revenue of $511 million.

B2Gold projected total consolidated cash operating costs for 2022 at the upper end of $620 per ounce to $660 per ounce. It anticipates the total consolidated all-in sustaining costs (AISC) between $1,010 and $1,050 per ounce.

Price Performance

In the past year, B2Gold’s shares have lost 0.3% compared with the industry’s growth of 6.7%.


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Zacks Rank & Stocks to Consider

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

Some better-ranked stocks from the basic materials space are Bunge Limited (BG - Free Report) , Reliance Steel (RS - Free Report) , and Innospec (IOSP - Free Report) . While BG currently flaunts a Zacks Rank #1 (Strong Buy), RS and IOSP carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bunge Limited has an expected earnings growth rate of 7.4% for the current year. Its earnings estimates for 2022 are pegged at $13.89 per share. BG’s earnings estimates have been revised 9.3% upward in the past 60 days. It has a trailing four-quarter average surprise of 18.7%. The stock has gained 8.4% in a year.

Reliance Steel expects earnings of $28.71 for the current year, indicating a year-over-year growth rate of 29.8%. The consensus estimate for RS’s earnings for the current year has been revised 0.06% upward in the past 60 days. It has a trailing four-quarter average surprise of 13.6% on average. RS has gained 30.5% in a year.

Innospec has projected a year-over-year earnings growth rate of 30.4% for the current year. The Zacks Consensus Estimate for the company’s current-year earnings is pegged at $6.26. Earnings estimates have been revised 5.6% upward in the past 60 days. IOSP has a trailing four-quarter earnings surprise of 25.6%, on average. Shares of IOSP have gained 20% in a year.

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