Yahoo Finance B2Gold (BTG) Sees Y/Y Increase in Q4 Gold Production & Sales
B2Gold Corp. BTG announced its total consolidated gold production for fourth-quarter 2022 at 367,870 ounces, including 15,101 ounces of attributable production from Calibre Mining Corp. This compares to fourth-quarter 2021 total consolidated gold production of 304,897 ounces.
Consolidated gold revenues in fourth-quarter 2022 were $592 million, up 12% year over year. In the quarter, the company sold 339,355 ounces at an average realized gold price of $1,746 per ounce.
The upbeat performance can be attributed to the record quarterly production at Fekola. The Fekola Mine produced 244,014 ounces of gold in the fourth quarter of 2022 and 598,661 ounces in 2022. Full-year gold production from Fekola was at the upper end of the company's guidance of 570,000-600,000 ounces.
The increase in B2Gold’s result was also backed by a strong operational performance at Masbate Mine, which produced 48,687 ounces in the fourth quarter. The annual gold production from Masbate was 212,728 ounces. The reported figure was slightly below the guidance of 215,000-225,000 ounces.
The Otjikoto Mine produced 60,068 ounces of gold in the fourth quarter and 161,614 ounces in 2022. The reported annual gold production was below the guidance of 165,000-175,000 ounces.
B2Gold’s total gold production for 2022 was 1,027,874 ounces (including 54,871 ounces of attributable production from Calibre), down 1.8% from the 2021 level. However, the reported figure was above the mid-point of the 2022 guidance. This is the seventh year in a row that annual production guidance has been met or exceeded.
Annual consolidated gold revenues for 2022 were $1.73 billion. This compares to 2021 annual consolidated gold revenues of $1.76 billion. BTG sold 969,155 ounces of gold in 2022 at an average realized gold price of $1,788 per ounce. In 2021, the company sold 981,401 ounces at an average realized gold price of $1,796 per ounce.
B2Gold maintains a strong net positive cash position. It paid a 4-cent per common share dividend in the fourth quarter of 2022 (annualized rate was 16 cents per common share), one of the highest dividend yields in the gold sector.
The company expects total consolidated cash operating costs per gold ounce produced to be at the upper end of the guidance of $620-$660. Total consolidated all-in sustaining costs are expected to be in line with the company’s guidance of $1,010-$1,050 per gold ounce.
2023 Guidance
B2Gold expects total gold production for 2023 to be 1,000,000-1,080,000 ounces, including 60,000-70,000 ounces of attributable production from Calibre. The company expects total consolidated cash operating costs to be slightly higher in 2023 and between $670 and $730 per gold ounce.
To reflect increased investments in Mali, and a rise in capital stripping expenditure at Fekola and Otjikoto, the company expects a total consolidated AISC of $1,195-$1,255 per gold ounce.
The company has set aside $64 million for exploration in 2023, the vast majority of which will go toward growth exploration to support the next phase of organic growth across the portfolio.
Price Performance
B2Gold’s shares have gained 9.7% in the past year compared with the industry’s growth of 7.4%.
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Zacks Rank & Stocks to Consider
B2Gold currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are CalMaine Foods, Inc. CALM, Reliance Steel & Aluminum Co. RS and Franco-Nevada Corporation FNV. CALM and RS currently flaunt a Zacks Rank #1 (Strong Buy) and FNV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $14.08, suggesting 417.7% growth from the year-ago reported figure. Earnings estimates have moved 73.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 31.4% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $28.65 for 2022, indicating a year-over-year growth rate of 29.5%. Earnings estimates have been revised 0.2% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.6%, on average. The company has gained 26.7% in a year.
The Zacks Consensus Estimate for Franco-Nevada’s 2022 earnings per share is pegged at $3.67, suggesting 4.3% growth from the year-ago reported figure. Earnings estimates have moved 4.2% north in the past 60 days. FNV has a trailing four-quarter earnings surprise of 1.3%, on average. Its shares have gained 8.1% in the past year.
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