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B2Gold (BTG) Earnings Miss, Sales Beat Estimates in Q4

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B2Gold Corp BTG reported adjusted earnings per share (EPS) of 11 cents for fourth-quarter 2021, missing the Zacks Consensus Estimate of 12 cents. The bottom line was down 21%, year over year.

Including one-time items, the company reported earnings of 13 cents per share compared with the prior-year quarter’s 16 cents per share.

B2Gold generated revenues of $526 million in fourth-quarter 2021, reflecting year-over-year growth of 9.6%. This upside resulted from the 14% increase in gold ounces sold, partly offset by a 3.6% drop in the average realized gold prices on a year-over-year basis. The top-line figure surpassed the Zacks Consensus Estimate of $520 million.

During the December-end quarter, B2Gold recorded consolidated gold production of 288,849 ounces, up 13% year over year on higher gold production from the Fekola and Otjikoto mines, partly offset by lower gold production from the Masbate Mine. The Otjikoto mines achieved a record quarterly gold production in fourth-quarter 2021. The total gold production (including 16,048 ounces of attributable production from Calibre) in the quarter was 304,897 ounces, up 13% 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 and EPS Surprise

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

The company reported the consolidated cash operating costs of $460 per ounce in the reported quarter, flat year over year. The higher-than-budgeted consolidated cash operating costs were due to higher costs for fuel, reagents and consumables and stronger local currencies. The consolidated all-in sustaining costs (AISC) of $844 per ounce were 8% lower than the prior-year quarter’s levels.

During the October-December quarter, the total cost of sales was $278 million, up 25% year over year. The gross profit declined 3.3% year over year to $248 million. The gross margin contracted to 47% in the reported quarter from the prior-year quarter’s 53%.

The operating income in the reported quarter was $237 million compared with the prior-year quarter’s $235 million. The operating margin was 45% compared with the year-ago quarter’s 49%.

Financial Position

B2Gold’s cash and cash equivalents were $673 million at the end of 2021 compared with $480 million witnessed at the end of 2020. The company generated $724 million cash from operating activities in 2021 compared with $951 million in 2020. The company’s long-term debt was $49.7 million at the end of 2021, down from $76 million at the end of 2020.

2021 Performance

B2Gold reported an adjusted EPS of 36 cents in 2021 compared with 49 cents reported in the prior year. Earnings missed the Zacks Consensus Estimate of 40 cents. Including one-time items, the bottom line came in at 40 cents per share, down 33.3% from 60 cents reported in 2020.

Sales were down 1.5% year over year to $1.76 billion. The top line was in line with the Zacks Consensus Estimate.

Outlook

B2Gold 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 between $1,010 and $1,050 per ounce.

Price Performance

In the past year, B2Gold has depreciated 15.6% compared with the industry’s growth of 8.3%.

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Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the basic materials space include Commercial Metals Company CMC, Albemarle Corporation ALB and AdvanSix Inc ASIX. While CMC and ALB sport a Zacks Rank #1 (Strong Buy), ASIX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised upward by 23% in the past 60 days.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13.1%. CMC’s shares have surged around 61% in a year.

Albemarle has an expected earnings growth rate of 56.2% for the current year. ALB's consensus estimate for the current year has been revised 8.9% upward in the past 60 days.

Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 22.1%. ALB shares have gained around 38% in a year.

AdvanSix has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 3.2% in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 46.9%. ASIX has appreciated around 63% in a year.


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