scotia
OUR TAKE: BTO released Q4/18 results with reported adjusted EPS of $0.01 vs. our $0.02 estimate, and CFPS of $0.08, in line with our $0.08 estimate. Q4/18 production of 231.7koz Au was pre-reported. Q4/18 cash costs were $523/oz, just below our $557/oz estimate, while All-In Sustaining Costs (AISC) of $814/oz came in 6% above our $768/oz estimate due to timing of sales and timing differences for capital expenditures at the Masbate Mine. Full-year 2018 production of 953.5koz was within increased guidance of 920k-960koz, while FY AISC of $758/oz came in below the low end of guidance $780-$830/oz. With the Q4 results, BTO reiterated 2019 production guidance of 935k-975koz Au in a back-half weighted year with AISC of $835-$875/oz. We model 2019E production of 953.3koz Au. Following model updates, our SO rating and C$5.00 PT are maintained. At spot prices, BTO shares are trading at a P/NAV5% of 1.42x and 8.5x 2019E P/CF, vs. peers trading at 1.06x and 6.3x respectively.