RE: RE: Canaccord: BTO is a Buy and $6.00 Target B2Gold* (BTO : TSX : $2.76), Net Change: -0.09, % Change: -3.16%, Volume: 6,921,734
Got your catcher's mitt out? If you are an owner in shares of gold companies, you have learned the meaning of “brow beating”
over the past year, particularly in the last couple weeks. Gold stocks have been attacked recently by relentless selling from
precious metal mutual funds that saw record redemption in the month of February and short sellers, who have boosted their
shorts to 14-year highs. In such an environment it generally pays to stay in high quality growth names. 2013 looks to be a
catalyst-driven year for B2Gold, in which its operational success and new project development should attract interest. Potential
catalysts in the coming month include Q4/12 financials and a reserve/resource update which is expected by the end of March.
Also weighing on BTO shares is speculation surrounding the potential deletion from the Market Vectors Junior Gold Miners
(GDXJ), due to the company growing too large to be included in the fund. If the company is to be deleted it should be
addressed potentially by this Friday (Deletions potentially will be announced March 8, 2013 and share sale possibly completed
by March 15, 2013). Recent history tells us index deletion can cause share price volatility, however shares usually rebound soon
after.