RE: RE: Canaccord: Buy rating and $5.00 target for
B2Gold* (BTO : TSX : $2.23), Net Change: -0.12, % Change: -5.11%, Volume: 1,334,478
Swimming against the tide. Despite a gold price that keeps on dropping, B2Gold reported solid Q1/13 results that saw the company earn $0.07 per share which was ahead of Canaccord Genuity Precious Metals Analyst Rahul Paul‘s estimate of $0.05 and consensus estimates of $0.06. Ahead of the quarter, the company pre-released its production and sales. Consolidated cash operating costs excluding royalties were $722 per ounce which was below Paul‘s estimate of $764 per ounce. Q1/13 cash operating costs at the company‘s La Libertad mine were $588 per ounce versus Paul‘s estimate of $662 per ounce. The company‘s Limon mine also posted solid cash operating costs which came in at $674 per ounce, again below Paul‘s estimate of $706 per ounce. The company maintained its 2013 guidance, which according to Paul continues to look conservative. As of March 31, 2013, company's balance sheet remained strong with $120.7 million in cash, with total debt at $65.8 million. Subsequent to quarter end, additional value has been surfaced through sale of 1.2% NSR royalty on the Brucejack gold project owned by Pretium Resources (PVG) to Franco Nevada (FNV) for $45 million in cash. At the company‘s Masbate mine, BTO continues to work at optimizing the project and improving operating costs. BTO is currently reviewing the mine geological model, metallurgical delineations and plant recoveries. Mine sequencing is also to be reviewed and a new intermine plan is expected to be completed in Q2/13. The pit designs will also be reviewed and new reserves are to be issued early
Q3/13Ei