Post by
Galvanizer on Jan 22, 2025 10:27pm
B2Gold’s Cashflow Concerns…
Who is running the finance team at B2Gold?!? It seems B2Gold is in need of major cash infusions just to pay the bills... it forward selling gold production sales at a major discount; it has cut its dividend; it has had cost overruns on Goose, and it has written down the carrying value of Goose and Gramalote...
These “notes” will be used to finance working capital and to pay down the current credit line… it does not seem that B2Gold’s forecasted cashflows are positive!!!!
The dividend was cut by 50% this past month.
B2Gold recorded a net loss in the third quarter of 2024 totaling $634 million (including the net impairment charge of $661 million on the Goose Project carrying value). Goose has a delayed commercial production commencement date also.
Mali is looking for a bigger piece of B2Gold’s production (Mali has already seized Barrick’s gold inventory).
In January 2024, B2Gold accepted a $500 million gold prepayment in exchange for equal monthly deliveries of gold from July 2025 to June 2026 totaling 264,775 ounces ($1,888 per ounce ($500,000,000 / 264,775 ounces)). That is a massive price discount on the current market value of gold!!!
Comment by
Nicksonsnowboar on Jan 23, 2025 12:36am
I knew it was going to be hitting new lows just not this fast. Should see the new lows beginning tomorrow. One more nail and downside remains unlimited.
Comment by
Singoa58 on Jan 23, 2025 6:53am
At this rate they wont survive imo Strong sell
Comment by
woolco on Jan 23, 2025 10:04am
They are just raising cash more cheaply than the interest on the debt they owe....so its a positive profit transaction for company
Comment by
Singoa58 on Jan 23, 2025 11:15am
Wrong grasshopper ....This will bite them in the ar$$ down the road and by looking at share price investors are running away
Comment by
Nicksonsnowboar on Jan 23, 2025 11:46am
I agree with you this is the best way to go . Problem is and it has existed for a number of years as the stock price indicates is that with less mined, cost increases ,unknowns ,cut in dividends etc. it's a scary stock to hold. Wanna invest in a stock that's down 70% and the product they mine up 50+ %. Watch what the mutual funds do
Comment by
Galvanizer on Jan 23, 2025 8:25pm
But you have not addressed the bigger issue... why do they need to raise more cash? The new cash is being used for working capital needs and to paydown the more expensive credit line... but this need for new cash means the operations are not generating the necessary cash flows... that is the concern!!!!
Comment by
Singoa58 on Jan 23, 2025 12:42pm
Unreal eh. eh. many accountimg team os located in Disneyland lol