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B2Gold (BTG) Gains From Solid Mine Performance Amid Cost Woes
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B2Gold Corp. (BTG - Free Report) has been benefiting from improved mine performances and recent acquisitions despite inflationary costs. The company continues to generate solid operating results, owing to its focus on growth through further exploration, development and expansion of the existing projects. The recent pickup in the gold price will aid the company’s performance in the upcoming quarters.
Shares of this Zacks Rank #3 (Hold) company have gained 14.3% in the past six months compared with the industry’s growth of 20.1%.
Image Source: Zacks Investment Research
Mines to Meet Production Guidance for 2023
B2Gold reported a total gold production of 266,856 ounces in the first quarter of 2023, including 16,137 ounces of attributable production from Calibre Mining Corp. The Fekola Mine produced 165,864 ounces in the quarter, aided by a favorable mine phasing sequence that will begin in 2023, with Phase 6 of the Fekola pit supplying high-grade ore to the treatment plant. All of B2Gold's operations are on track to reach or surpass their annual production targets.
B2Gold’s 2023 total gold production guidance is between 10,00,000 and 10,80,000 ounces, backed by expectations of a solid delivery and pickup in mine performances. The total gold production in 2022 was 1,027,874 ounces. The company intends to pursue additional internal growth through further exploration, development and expansion of existing projects.
Gold production at the Fekola mine is expected between 580,000 and 610,000 ounces in 2023. The company expects the Fekola mine to process 9 million tons of ore in 2023 at an average grade of 2.20 g/t gold and a process gold recovery of 93.4%. Fekola's all-in-sustaining costs are expected to rise in 2023 due to greater sustaining capital expenditure.
Solid Balance Sheet Bodes Well
B2Gold’s long-term debt was $35 million at the end of the first quarter compared with $42 million at the end of 2022. It has an available revolving credit facility of $600 million. The company has an accordion feature, available on additional binding commitments, for a further $200 million. B2Gold maintains its dividend rate of 4 cents per share, driven by the company’s strong cash position and strong operating results. It has one of the highest dividend yields in the gold sector.
Recent Pickup in Gold Prices to Aid Top Line
In 2022, the gold price was majorly affected by persistently high inflation and high interest rates. The prices were also negatively impacted by the stronger U.S. dollar, rising interest rates and sluggish growth. However, the uncertainty around global economic growth has fueled gold and silver prices this year. Currently, the gold price is around $1,974 per ounce. This pickup in the price of gold and silver is likely to improve B2Gold’s results in the upcoming quarters.
High Input Costs Continue to Hurt Margins
B2Gold is witnessing cost inflation pressure across all sites, which is impacting input prices, including reagents, fuel and consumables. For 2023, cash operating costs are projected between $670 and $730 per ounce. AISC is expected to be $1,195-$1,255 per ounce. Both are likely to be higher than their 2022 level. Higher fuel and labor costs, coupled with a stronger foreign exchange rate, are driving these costs.
The Zacks Consensus Estimate for AngloGold Ashanti’s earnings per share is pegged at $1.94 for 2023. Earnings estimates have been revised 22% upward in the past 60 days. The company gained 37.6% in the last six months.
The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. Its shares gained 38.6% in the last six months.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at 47 cents for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI gained 35.4% in the last six months.
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B2Gold (BTG) Gains From Solid Mine Performance Amid Cost Woes
B2Gold Corp. (BTG - Free Report) has been benefiting from improved mine performances and recent acquisitions despite inflationary costs. The company continues to generate solid operating results, owing to its focus on growth through further exploration, development and expansion of the existing projects. The recent pickup in the gold price will aid the company’s performance in the upcoming quarters.
Shares of this Zacks Rank #3 (Hold) company have gained 14.3% in the past six months compared with the industry’s growth of 20.1%.
Image Source: Zacks Investment Research
Mines to Meet Production Guidance for 2023
B2Gold reported a total gold production of 266,856 ounces in the first quarter of 2023, including 16,137 ounces of attributable production from Calibre Mining Corp. The Fekola Mine produced 165,864 ounces in the quarter, aided by a favorable mine phasing sequence that will begin in 2023, with Phase 6 of the Fekola pit supplying high-grade ore to the treatment plant. All of B2Gold's operations are on track to reach or surpass their annual production targets.
B2Gold’s 2023 total gold production guidance is between 10,00,000 and 10,80,000 ounces, backed by expectations of a solid delivery and pickup in mine performances. The total gold production in 2022 was 1,027,874 ounces. The company intends to pursue additional internal growth through further exploration, development and expansion of existing projects.
Gold production at the Fekola mine is expected between 580,000 and 610,000 ounces in 2023. The company expects the Fekola mine to process 9 million tons of ore in 2023 at an average grade of 2.20 g/t gold and a process gold recovery of 93.4%. Fekola's all-in-sustaining costs are expected to rise in 2023 due to greater sustaining capital expenditure.
Solid Balance Sheet Bodes Well
B2Gold’s long-term debt was $35 million at the end of the first quarter compared with $42 million at the end of 2022. It has an available revolving credit facility of $600 million. The company has an accordion feature, available on additional binding commitments, for a further $200 million. B2Gold maintains its dividend rate of 4 cents per share, driven by the company’s strong cash position and strong operating results. It has one of the highest dividend yields in the gold sector.
Recent Pickup in Gold Prices to Aid Top Line
In 2022, the gold price was majorly affected by persistently high inflation and high interest rates. The prices were also negatively impacted by the stronger U.S. dollar, rising interest rates and sluggish growth. However, the uncertainty around global economic growth has fueled gold and silver prices this year. Currently, the gold price is around $1,974 per ounce. This pickup in the price of gold and silver is likely to improve B2Gold’s results in the upcoming quarters.
High Input Costs Continue to Hurt Margins
B2Gold is witnessing cost inflation pressure across all sites, which is impacting input prices, including reagents, fuel and consumables. For 2023, cash operating costs are projected between $670 and $730 per ounce. AISC is expected to be $1,195-$1,255 per ounce. Both are likely to be higher than their 2022 level. Higher fuel and labor costs, coupled with a stronger foreign exchange rate, are driving these costs.
Stocks to Consider
Some better-ranked stocks in the basic materials space are AngloGold Ashanti (AU - Free Report) , Gold Fields Limited (GFI - Free Report) , and Alamos Gold Inc. (AGI - Free Report) . AU and GFI currently flaunt a Zacks Rank #1 (Strong Buy), and AGI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AngloGold Ashanti’s earnings per share is pegged at $1.94 for 2023. Earnings estimates have been revised 22% upward in the past 60 days. The company gained 37.6% in the last six months.
The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. Its shares gained 38.6% in the last six months.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at 47 cents for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI gained 35.4% in the last six months.