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B2Gold (BTG) Earnings Miss Estimates in Q2, Decline Y/Y

·4 min read

B2Gold Corp BTG reported adjusted earnings per share (EPS) of 4 cents for second-quarter 2022, missing the Zacks Consensus Estimate of 5 cents. The company reported an adjusted EPS of 5 cents in the prior-year quarter.

Including one-time items, the company reported 4 cents per share earnings compared with the prior-year quarter’s 6 cents per share.

B2Gold generated revenues of $382 million in second-quarter 2022 compared with the prior-year quarter’s $363 million. The upside resulted from a 2.5% increase in the average realized gold prices and a 2.5% increase in gold ounces sold.

During the June-end quarter, B2Gold recorded consolidated gold production of 208,858 ounces, up 6% year over year on record quarterly mill throughput achieved at the Fekola Mine. The total gold production (including 14,765 ounces of attributable production from Calibre) in the quarter was 223,623 ounces.

The company reported total consolidated cash operating costs of $781 per ounce in the reported quarter, up 18% year over year. Total consolidated all-in sustaining costs (AISC) of $1,111 per ounce were 9% higher than the prior-year quarter’s levels.

During the April-June quarter, the cost of sales was $264 million, up 12% year over year. The gross profit declined 7.8% year over year to $118 million. The gross margin expanded to 38.8% in the reported quarter from the prior-year quarter’s 35.3%.

The operating income in the reported quarter was $98 million compared with the prior-year quarter’s $108.5 million. The operating margin declined to 26% from the year-ago quarter’s 29.8%.

B2Gold Corp Price, Consensus and EPS Surprise

 

B2Gold Corp Price, Consensus and EPS Surprise
B2Gold Corp Price, Consensus and EPS Surprise

B2Gold Corp price-consensus-eps-surprise-chart | B2Gold Corp Quote

 

Financial Position

B2Gold’s cash and cash equivalents were $587 million at the end of the second quarter compared with $673 million at the end of 2021. The company generated $125 million cash from operating activities in the June-end quarter against the cash utilization of $8.3 million in the year-ago quarter.

The company’s long-term debt was $47 million at the end of the second quarter compared with $50 million at the end of 2021.

Outlook

B2Gold reaffirms financial guidance for the current year. It is on track to achieve its current-year total consolidated gold production guidance between 990,000 ounces and 1,050,000 ounces. Total consolidated cash operating costs are projected to be at the upper end of the company’s guidance, between $620 per ounce and $660 per ounce. Total consolidated All-in sustaining cost (AISC) is anticipated to be between $1,010 and $1,050 per ounce.

Price Performance

In the past year, B2Gold’s shares have dropped 12.4% compared with the industry’s fall of 20.7%.

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Zacks Rank & Other Stocks to Consider

B2Gold currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the basic materials space include Cabot Corporation CBT, ATI Inc. ATI and Albemarle Corporation ALB.

Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 32% over a year.

ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.

ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 26% in a year.

Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 7.8% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 18% in a year. The company has a Zacks Rank #2.


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