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B2Gold (BTG) Up 15.7% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for B2Gold (BTG - Free Report) . Shares have added about 15.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is B2Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

B2Gold Earnings Miss Estimates in Q4, Sales Rise Y/Y

B2Gold Corp. reported adjusted earnings per share (EPS) of 11 cents for fourth-quarter 2022, missing the Zacks Consensus Estimate of 14 cents. The bottom line was flat year over year.

Including one-time items, the company reported earnings of 15 cents per share compared with the prior-year quarter’s 13 cents.

B2Gold generated revenues of $592 million in fourth-quarter 2022, reflecting year-over-year growth of 12%. The top-line figure was in line with the Zacks Consensus Estimate.

In the December-end quarter, B2Gold recorded consolidated gold production of 3,52,769 ounces, up 22.1% year over year. The upbeat performance can be attributed to the record quarterly production at Fekola and the strong operational performance at Masbate Mine. Total consolidated gold production for fourth-quarter 2022 was 3,67,870 ounces (including 15,101 ounces of attributable production from Calibre Mining Corp), up 20.7% from the prior-year quarter.

The company reported consolidated cash operating costs of $440 per ounce in the reported quarter, down 4.3% year over year. The consolidated all-in sustaining costs (AISC) of $876 per ounce were 3.8% more than the prior-year quarter.

For the October-December quarter, the total cost of sales was $332 million, up 19.4% year over year. The gross profit improved 4.8% year over year to $260 million. The gross margin contracted to 43.9% in the reported quarter from the prior-year quarter’s 47.1%.

The operating income in the reported quarter was $232 million compared with the prior-year quarter’s $237 million. The operating margin was 39.2% compared with the year-ago quarter’s 45.1%.

Financial Position

B2Gold’s cash and cash equivalents were $652 million at the end of 2022 compared with $673 million witnessed at the end of 2021. The company generated $596 million in cash from operating activities in 2022 compared with $724 million in 2021. The company’s long-term debt was $41.7 million at the end of 2022, down from $49.7 million at the end of 2021.

2022 Performance

B2Gold reported an adjusted EPS of 25 cents in 2022 compared with 37 cents reported in the prior year. Earnings missed the Zacks Consensus Estimate of 27 cents. Including one-time items, the bottom line was 24 cents per share, down from 40 cents in 2021.

Sales were down 1.7% year over year to $1.73 billion. The top line was in line with the Zacks Consensus Estimate.

Outlook

B2Gold expects 2023 total gold production guidance between 10,00,000 and 10,80,000 ounces which includes 60,000-70,000 attributable ounces from Calibre. Total consolidated cash operating costs are projected between $670 and $730 per ounce. Total consolidated AISC is anticipated between $1,195 and $1,255 per ounce.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, B2Gold has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

B2Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

B2Gold belongs to the Zacks Mining - Gold industry. Another stock from the same industry, Barrick Gold (GOLD - Free Report) , has gained 13.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.

Barrick Gold reported revenues of $2.77 billion in the last reported quarter, representing a year-over-year change of -16.2%. EPS of $0.13 for the same period compares with $0.35 a year ago.

For the current quarter, Barrick Gold is expected to post earnings of $0.17 per share, indicating a change of -34.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.

Barrick Gold has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.


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