We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
B2Gold's (BTG) Earnings Miss Estimates in Q2, Decline Y/Y
Read MoreHide Full Article
B2Gold Corp (BTG - Free Report) reported adjusted earnings per share of 5 cents for second-quarter 2021, missing the Zacks Consensus Estimate of 7 cents. The bottom line also plunged 54.5%, year over year, mainly on lower gold production as a result of planned significant waste stripping campaigns at both the Fekola and Otjikoto mines, as well as higher cash operating costs. The 4% increase in average realized gold price in the quarter somewhat mitigated the impact.
Including one-time items, the company reported earnings of 6 cents per share compared with the prior-year quarter’s 12 cents per share.
B2Gold generated revenues of $363 million in second-quarter 2021, reflecting a year-over-year decline of 18%. This downside resulted from the 22% reduction in gold ounces sold, partly offset by 4% increase in the average realized gold price. The top-line figure came in line with the Zacks Consensus Estimate.
During the June-end quarter, B2Gold recorded consolidated gold production of 197,380 ounces, down 17.6% year over year due to the planned significant waste stripping campaigns at the Fekola and Otjikoto mines. Total gold production (including 33% interest in Calibre) in the quarter was 211,612 ounces, down 12% from the prior-year period.
The company reported consolidated cash operating costs of $649 per ounce in the reported quarter, up 69% from the year-ago period due to lower gold production and higher period stripping activities. Consolidated all-in sustaining costs (AISC) of $1,011 per ounce came in 42% higher than the prior-year quarter.
In the April-June quarter, total cost of sales was $235 million, up 15% year over year.
Gross profit plummeted 46% year over year to $128 million. Gross margin contracted to 35.2% in the reported quarter from the prior-year quarter’s 53.8%.
Operating income in the reported quarter was $109 million, reflecting a year-over-year slump of 48%. Operating margin was 30% compared with the year-ago quarter’s 48%.
B2Gold’s cash and cash equivalents were $382 million at the end of the second quarter compared with the $480 million witnessed at the end of 2020. The company utilized $8.3 million cash in operating activities in the second quarter against the prior-year quarter’s cash generation of $238 million. The company’s long-term debt was $62 million as of Jun 30, 2021, down from $76 million as of Dec 31, 2020.
Outlook
B2Gold expects to meet or exceed the current-year total production guidance of 970,000-1,030,000 ounces. Cash operating costs are projected between $500 per ounce and $540 per ounce. Meanwhile, AISC is anticipated to be within $870 per ounce to $910 per ounce.
Share Price Performance
Over the past year, B2Gold has depreciated 43.3% compared with the industry’s loss of 23.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
B2Gold currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Dow Inc. (DOW - Free Report) .
Nucor has a projected earnings growth rate of 455% for the current year. The company’s shares have soared 130.6% in a year’s time. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot has an expected earnings growth rate of 137% for the current fiscal year. The company’s shares have surged 42.4% in the past year. It currently sports a Zacks Rank #1.
Dow has an expected earnings growth rate of 403 % for the current year. The company’s shares have gained 45.4% in the past year. It currently carries a Zacks Rank #2 (Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
B2Gold's (BTG) Earnings Miss Estimates in Q2, Decline Y/Y
B2Gold Corp (BTG - Free Report) reported adjusted earnings per share of 5 cents for second-quarter 2021, missing the Zacks Consensus Estimate of 7 cents. The bottom line also plunged 54.5%, year over year, mainly on lower gold production as a result of planned significant waste stripping campaigns at both the Fekola and Otjikoto mines, as well as higher cash operating costs. The 4% increase in average realized gold price in the quarter somewhat mitigated the impact.
Including one-time items, the company reported earnings of 6 cents per share compared with the prior-year quarter’s 12 cents per share.
B2Gold generated revenues of $363 million in second-quarter 2021, reflecting a year-over-year decline of 18%. This downside resulted from the 22% reduction in gold ounces sold, partly offset by 4% increase in the average realized gold price. The top-line figure came in line with the Zacks Consensus Estimate.
During the June-end quarter, B2Gold recorded consolidated gold production of 197,380 ounces, down 17.6% year over year due to the planned significant waste stripping campaigns at the Fekola and Otjikoto mines. Total gold production (including 33% interest in Calibre) in the quarter was 211,612 ounces, down 12% from the prior-year period.
The company reported consolidated cash operating costs of $649 per ounce in the reported quarter, up 69% from the year-ago period due to lower gold production and higher period stripping activities. Consolidated all-in sustaining costs (AISC) of $1,011 per ounce came in 42% higher than the prior-year quarter.
In the April-June quarter, total cost of sales was $235 million, up 15% year over year.
Gross profit plummeted 46% year over year to $128 million. Gross margin contracted to 35.2% in the reported quarter from the prior-year quarter’s 53.8%.
Operating income in the reported quarter was $109 million, reflecting a year-over-year slump of 48%. Operating margin was 30% compared with the year-ago quarter’s 48%.
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 $382 million at the end of the second quarter compared with the $480 million witnessed at the end of 2020. The company utilized $8.3 million cash in operating activities in the second quarter against the prior-year quarter’s cash generation of $238 million. The company’s long-term debt was $62 million as of Jun 30, 2021, down from $76 million as of Dec 31, 2020.
Outlook
B2Gold expects to meet or exceed the current-year total production guidance of 970,000-1,030,000 ounces. Cash operating costs are projected between $500 per ounce and $540 per ounce. Meanwhile, AISC is anticipated to be within $870 per ounce to $910 per ounce.
Share Price Performance
Over the past year, B2Gold has depreciated 43.3% compared with the industry’s loss of 23.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
B2Gold currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Dow Inc. (DOW - Free Report) .
Nucor has a projected earnings growth rate of 455% for the current year. The company’s shares have soared 130.6% in a year’s time. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot has an expected earnings growth rate of 137% for the current fiscal year. The company’s shares have surged 42.4% in the past year. It currently sports a Zacks Rank #1.
Dow has an expected earnings growth rate of 403 % for the current year. The company’s shares have gained 45.4% in the past year. It currently carries a Zacks Rank #2 (Buy).