Sonsedska/iStock via Getty Images Introduction As a gold bug at heart, I am constantly looking for opportunities in which to invest in the precious metals sector. I have looked into a lot of companies which just didn’t make the cut, and in some cases, I have dodged the bullet and in others I have missed out on what would have been a profitable acquisition. As an investor or in my case a speculator, I tend to have favorite stocks that have been kind to me over the years; however, there are always real gems out there that I could have missed. So with that in mind, I am going to take a look at B2Gold Corp. (NYSE:BTG) (TSX:BTO:CA) with the view to adding it to my portfolio. Fundamentals B2Gold Corp. is a major gold producer based in Vancouver, Canada and has been in existence since 2007. They have an interesting geographical spread of operations which include gold mines in production in the Philippines, Namibia, Mali, and a project under construction in Canada called the Goose project. Their pipeline of opportunities consists of a myriad of development and exploration projects in various countries, including Mali, Colombia, and Finland. Their intention is to produce between 860,000 and 940,000 ounces in 2024 and to maintain a good dividend yield. Their notable operations are as follows: The Otjikoto Mine in Namibia is expected to produce between 180,000 and 200,000 Ozs of gold in 2024 an all-in sustaining costs (AISC) of between $960 and $1,020/ Oz In Mali, The Fekola Complex is expected to produce between 470,000 and 500,000 Ozs of gold in 2024 at an all-in sustaining costs of between $1,420 and $1,480/Oz. In the Philippines, The Masbate Mine is expected to produce between 170,000 and 190,000 Ozs of gold in 2024 at an all-in sustaining costs of between $1,300 and $1,360/Oz. So far, so good. Financials B2Gold Reported its Q1 2024 Results on the 7th May 2024 so we will take a quick look at the First Quarter Highlights The Total gold production of 225,716 ounces in Q1 2024, was in-line with B2Golds guidelines which included 11,377 ounces of attributable production from Calibre Mining Corp. B2Gold is on track to meet its consolidated annual production guidance range. This is usually a good sign that they are not overestimating their production figures and helps to raise the comfort level of investors. It should be noted that when a company fails to achieve its own expectations and forecasts, the market takes a dim of that sort of under achievement and tends to shy away from further investment, and sometimes they withdraw their funds, causing a stock price drop. B2Gold achieved a total consolidated all-in sustaining costs of $1,345/Oz of gold ounces sold in Q1 2024, which is a little high when compared with say Agnico Eagle Mines Limited (AEM) who recently reported their all-in sustaining costs per ounce of $1,190/Oz. Dividends, something that rarely appeared in the accounts of the precious metals’ producers until the last few years when conditions had improved. B2Gold are to pay a dividend of $0.04 per share and declared an expected $0.16 per share on an annualized basis The following is an aerial photograph of the Development of the open pit and underground site at the Goose Project; first gold production now expected in Q2 2025. It reminds me of Fort McMurray in Alberta, a clear blue day but a tad on the chilly side. Goose Project site laydown area (B2Gold Q1 Results) Goose Project site laydown area – April 2024 If we now take a quick look at the Seeking Alpha Quants section, this stock is Ranked in Sector at 80 out of 282 and Ranked in Industry at 19 out of 44, which is pretty average, and it has been ranked as a Hold, not exactly best in class. However, Quants also have a forward-looking EPS (FWD) of $0.27 and a PE (FWD) of 9.84, which is very respectable. This is an estimate of future performance and is subject to a myriad of events such as political uncertainty, Inclement weather, and the availability of good quality staff and mechanical plant etc. Also, a major acquisition could change all these estimates significantly. Quants have allocated a rating of 3.3 with 20 companies scoring higher and some getting close to 5.0, so this doesn’t fill me with confidence. On the subject of possible delays, we can see from the Q1 Results “Development of the open pit and underground is slightly behind schedule at the Goose Project; first gold production now expected in Q2 2025: Development of the open pit and underground is slightly behind schedule due to equipment availability (commissioning and availability of the open pit equipment), adverse weather conditions and prioritization of critical path construction activities.” This slippage delays gold production by one quarter later than previous estimates. One hopes that this is a one-off event, but there is always the possibility that this project could be in a state of progressive slippage, something I have experienced working in the cold conditions of northern Alberta. B2Gold has a market capitalization of $3.367B, a 52-week trading range of $2.34 – $3.83, and an EPS (TTM) of -0.04. The liquidity is good with an average volume of 12,754,490 shares traded per day, enabling ease of access and exit for those wishing to trade on a frequent basis. My bearish standpoint could be negated by an acceleration of constructive activities and also by the underlying commodities of gold and silver rallying hard, increasing B2Gold’s profitability. B2Gold Corp. trades on the NYSE/AMERICAN symbol BTG and on the Toronto Exchange symbol TSX-BTO A Quick Look At The Chart Of B2Gold Corp. B2Gold is down about 30% over a one-year period, with the March rally in gold and silver prices doing little for it. B2Gold One Year Progress Chart (StockCharts TA by Bob Kirtley) The technical indicators suggest it is heading into the oversold zone, which might present a buying opportunity for investors. B2Gold Compared to Other Mining Stocks The chart below compares B2Gold with some mining stocks in this sector, and it’s not a pretty sight. B2Gold is down around 30% while the others are all showing positive price gains. I am aware that there are other companies that have also not performed so well over this period. And if we use differing time scales, we will generate different results. Today’s table is based on a one-year timescale. B2Gold Compared To Other Gold Miners Over A One Year Period (Google Finance) B2Gold on a 6-month basis is down 19%, on a 12-month basis is down 29% and on a 5-year basis it is down 8%, which suggests that past performance was rather poor. Conclusion B2Gold has a market capitalization of three billion dollars plus, so it is a well-established gold miner and should do well in future. The past performance leaves much to be desired, and comparable analysis suggests that it is not the best in class. I do not own shares in this company and if I did, I would sell them and look elsewhere to place my investment funds. My readers are aware that I am Long both physical silver and gold and that I own a portfolio of gold, silver and uranium mining stocks in the precious metals space, including but not limited: Mega Uranium Ltd. (OTCPK:MGAFF) Laramide Resources (OTCQX:LMRXF, LAM:CA) Denison Mines Corp. (DNN) Avino Silver & Gold Mines Ltd. (ASM) Wheaton Precious Metals Corp. (WPM) Agnico Eagle Mines Limited (AEM) SSR Mining Inc. (SSRM) Endeavour Silver Corp. (EXK) Fortuna Silver Mines Inc. (FSM) First Majestic Silver Corp. (AG) IMPACT Silver Corp. (IPT:CA) Pan American Silver Corp. (PAAS) Sandstorm Gold Ltd. (SAND) Silvercorp Metals Inc. (SVM) As always, do your own due diligence, as this is going to be a white-knuckle ride. Now, whether you are a Precious Metals Bug or not, please feel free to fire in your comments on this article and I will do my best to answer them. Go gently.
sekar nallalu AEM,AEM:CA,Bob Kirtley,BTG,BTO:CA,Cryptocurrency B2Gold Corp.: Better Opportunities Elsewhere In This Sector Of The Market (NYSE:BTG)