B2Gold downgraded at CIBC with 2024 seen as transitional year
Jan. 25, 2024 3:19 PM ETB2Gold Corp. (BTG) Stock,
BTO:CA StockBy: Carl Surran, SA News Editor
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https://seekingalpha.com/news/4058703-b2gold-downgraded-at-cibc-with-2024-seen-as-transitional-year
B2Gold (NYSE:
BTG)
was downgraded Thursday by CIBC to Neutral from Outperform with a $3.60 price target, trimmed from $4.20, to $3.60, expecting 2024 will see weaker than expected productions and higher than expected capital spending.
B2Gold (
BTG) shares +2%, recouping some of the previous session's 10% slide after the company warned about
higher than expected capex at its Goose project in Nunavut, Canada.
CIBC said B2Gold's (
BTG) 2024 production outlook of 860K-940K oz at all-in sustaining cost of $1,360-$1,420/oz missed the bank's estimates of 941K oz at AISC of $1,227/oz, driven primarily driven by lower production guidance of 470K-500K oz at higher AISC of $1,420-$1,480/oz at the Fekola mine in Mali vs. its prior estimate of 511K oz at AISC of $1,151/oz on lower grade and recoveries.
CIBC analysts said they have little clarity on whether the outcome of B2Gold's (
BTG) discussions with Mali's government will yield a viable option for the Fekola regional ore, and this uncertainty, combined with headwinds from a heavy-lifting year at Goose, causes them to await further visibility on Fekola, progress on the Goose ice road shipping and sealift, and finally the Gramalote PEA in Q2 2024.
"Looking beyond our one-year investment time horizon into 2025, the company has exciting opportunities with the ramp-up of Goose, the potential to move forward with a streamlined Gramalote and the potential for higher production at Fekola, pending permits," CIBC wrote.