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B2Gold (BTG) Earnings and Sales Surpass Estimates in Q1

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B2Gold Corp (BTG - Free Report) reported adjusted earnings per share (EPS) of 6 cents for first-quarter 2022, beating the Zacks Consensus Estimate of 5 cents. The bottom line was down 33% year over year.

Including one-time items, the company reported 8 cents per share earnings compared with the prior-year quarter’s 9 cents per share.

B2Gold generated revenues of $366 million in first-quarter 2022 compared with the prior-year quarter’s $362 million. The upside resulted from a 5% increase in the average realized gold prices, partly offset by a 4% decline in gold ounces sold. The top line surpassed the Zacks Consensus Estimate of $343 million.

During the March-end quarter, B2Gold recorded consolidated gold production of 196,473 ounces, down 4.5% year over year on a planned significant waste stripping campaign and lower mined ore tonnage at the Fekola Mine. The total gold production (including 12,892 ounces of attributable production from Calibre) in the quarter was 209,365 ounces, down 5% from the prior-year quarter’s levels.
 

B2Gold Corp Price, Consensus and EPS Surprise

 

B2Gold Corp Price, Consensus and EPS Surprise

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

 

The company reported the consolidated cash operating costs of $676 per ounce in the reported quarter, up 16% year over year. The higher-than-budgeted consolidated cash operating costs were due to higher costs for fuel and consumables and the planned lower gold production. The consolidated all-in sustaining costs (AISC) of $1,028 per ounce were 12% higher than the prior-year quarter’s levels.

During the January-March quarter, the total cost of sales was $226 million, up 10% year over year. The gross profit declined 11% year over year to $139.6 million. The gross margin contracted to 38% in the reported quarter from the prior-year quarter’s 43%.

The operating income in the reported quarter was $118 million compared with the prior-year quarter’s $150 million. The operating margin declined to 32% from the year-ago quarter’s 41%.

Financial Position

B2Gold’s cash and cash equivalents were $649 million at the end of the first quarter compared with $673 million witnessed at the end of 2021. The company generated $107 million cash from operating activities in the March-end quarter compared with $146 million in the year-ago quarter.
The company’s long-term debt was $51 million at the end of the first quarter compared with $50 million at the end of 2021.

Outlook

B2Gold reaffirms financial guidance for the current year. It expects current-year total gold production guidance between 990,000 ounces and 1,050,000 ounces. Total consolidated cash operating costs are projected 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 depreciated 1.4% compared with the industry’s growth of 9.2%.

Zacks Investment Research
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Zacks Rank & Other Stocks to Consider

B2Gold currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .

Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for Mosaic’s current-year earnings has been revised 39.7% upward in the past 60 days.

Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, missing once. MOS has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 78.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for AdvanSix’s current-year earnings has been revised 43.6% upward in the past 60 days.

AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 55.8% in a year. The company sports a Zacks Rank #1.

Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 14% over a year.


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