B2Gold Corp T.BTO

Alternate Symbol(s): BTG

Metals & Mining Gold

B2Gold Corp. is an international gold producer. The Company has operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada, and numerous development and exploration projects in various countries, including Mali, Colombia, and Finland. The Fekola Mine is located in southwest Mali, on the border between Mali and Senegal, approximately 500 kilometers due west of the capital city, Bamako. The Masbate Mine is located approximately 360 kilometers southeast of Manila. The Otjikoto Mine is located in the north-central part of Namibia, approximately 300 kilometers north of Windhoek and is a gold producer. The Company also owns the Gramalote Project in Colombia. It also has an interest in the Back River Gold District, which is located in Nunavut, Canada. The Back River Gold District consists of approximately five mineral claims blocks along an 80-kilometer belt. It is engaged in operating Goose Project, which is located in Nunavut, Canada.

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B2Gold Corp

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Post by catso123on Mar 21, 2018 9:51pm

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Post# 27758192

National Banks out look on B2gold

HIGHLIGHTS Fekola pre-commercial production margin surprises to the upside driving a sizable financial beat. Q4/17 CFPS b.f. w/c adj. was US$0.12 (NBF/cons. US$0.06/$0.05) and a sizable beat after including a US$73 mln (US$0.08/share) boost from pre-commercial sales net of costs. As typical, we ascribed no margin to pre-commercial production and thus the boost is a positive surprise. Per IFRS accounting standards, margin on pre-commercial sales is not reported on the income statement or CFO, but is logged as an item on CFI. Nevertheless, the pre-commercial margin reflects Fekola outperformance and further translates into a higher-than-expected Q4/17 cash balance of US$148 mln (NBF est. $108 mln), positioning BTO for repayment of US$259 mln convertible notes in Oct 2018. Fekola costs impress and drive margins on Q4/17 production. Total cash costs of US$611/oz (NBF est. US$567/oz) a modest miss on underperformance at La Libertad and El Limon, with partial offset by a beat at Otjikoto and Fekola. At Fekola, total cash costs were an impressive US$325/oz on 32.2k oz commercial production, or US$361/oz on 105.1k oz commercial + pre-commercial production. The low cash costs at Fekola benefited from stockpiling of ore, higher grades of 3.01 g/t (reserve grade 2.37 g/t) and higher-than-expected recoveries of 95.4% (92.8% in 2015 technical report). We expect Fekola total cash costs to revert higher in Q1/18 on lower grades, although to remain competitive (NBF est. US$512/oz). 2018 guidance (released Jan. 11) midpoints call for Fekola production of 405k oz at an AISC of US$600/oz. Unsold inventory offers tailwind for Q1/17. Attrib production of 161.9k oz was released Jan. 11 (see NBF note), while sales reported with financials missed at 131.6k oz (NBF 161.9k oz). The ~30k oz delta on bullion sales provides a read-through for a Q1/18 tailwind on a catch-up in sales. Maintaining Outperform and C$7.00 target. Our target is based on 4.25x (unchanged) our EV/EBITDA NTM where EBITDA NTM is US$441 mln (was US$421 mln). Trades at a premium on P/NAV 1.35x (peers 0.84x), but a discount on P/CF18 5.8x (peers 6.8x).

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