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B2Gold (BTG) Reports Y/Y Increase in Q2 Gold Production & Sales

·5 min read

B2Gold Corp’s BTG total consolidated gold production in second-quarter 2022 was 223,623 ounces (including 14,765 ounces of attributable production from Calibre Mining Corp.), which was 1% above budget and increased 6% year over year. This upbeat performance can be attributed to the record quarterly mill throughput achieved at the Fekola Mine in the quarter.

Consolidated gold revenues in the quarter were $382 million, up 5% year over year, on the back of a year-over-year increase in average realized gold price and an increase in gold ounces sold by 2.5% each. In the second quarter, the company sold 205,300 ounces of gold for $1,861 per ounce.

B2Gold reported consolidated gold production of 208,858 ounces from its three operating mines in the quarter under review, which came in line with the budget production for the quarter.

B2Gold will come out with second-quarter 2022 earnings results on August 3. The Zacks Consensus Estimate for the June-end quarter earnings stands at 5 cents per share, indicating year-over-year growth of 25%.

B2Gold is on track to meet current year gold production guidance. Consolidated gold production from its three operating mines is expected to be between 950,000 ounces and 1,000,000 ounces in 2022. Total gold production is expected to be between 990,000 and 1,050,000 ounces. This includes a contribution of 40,000-50,000 attributable ounces from Calibre.
Due to the timing of high-grade ore mining at both the Fekola and Otjikoto mines, the company’s current-year consolidated gold production is expected to increase significantly to 560,000 -590,000 ounces during the second half of 2022.

Total cash operating costs are projected to be between $620 and $660 per ounce. Total All-in sustaining cost (AISC) is anticipated to be $1,010-$1,050 per ounce. Costs are expected to be higher than that reported in 2021, owing to higher budgeted prices for fuel, labor and other key consumables stemming from the ongoing cost inflation.

The Fekola Mine in Mali continued to deliver strong operational performance in the second quarter of 2022. The low-cost Fekola Mine is expected to produce between 570,000 and 600,000 ounces of gold in 2022. The mine’s gold production is expected to significantly increase to between 350,000 and 370,000 ounces during the second half of 2022 when mining reaches the higher-grade portion of Phase 6 of the Fekola Pit.

Given positive production performance so far this year, B2Gold’s Masbate mine’s gold production is expected between 215,000 and 225,000 ounces for the current year. The projected figure is up from prior guidance of 205,000 to 215,000 ounces. Due to a change in ore production timing to third-quarter 2022 from the prior estimate of the first half of the year, the Otjikoto Mine in Namibia is expected to produce 165,000-175,000 ounces of gold in 2022 compared with its prior guidance of 175,000-185,000 ounces.  Otjikoto's gold production is expected to increase significantly to between 100,000 and 105,000 ounces in the second half of the current year.

BTG intends to pursue additional internal growth through further exploration, development and expansion of the existing projects, following a very successful year for exploration in 2021. The company is planning for heavy exploration this year as well.

Price Performance

B2Gold’s shares have depreciated 19.4% in the past year compared with the industry’s fall of 14.2%

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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 Albemarle Corporation ALB, Cabot Corporation CBT and Allegheny Technologies Inc. ATI.

Albemarle has a projected earnings growth rate of 231.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 26.5% upward in the past 60 days.  You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 8.9% in a year. The company flaunts a Zacks Rank #1.

Cabot, currently carrying a Zacks Rank #1, 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 6% upward in the past 60 days.

Cabot's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.2%. CBT has gained around 17.8% in the past year.

Allegheny has a projected earnings growth rate of 1,076.9% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised upward by 40.4% in the past 60 days.

Allegheny's earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 128.9%. ATI has gained around 12.3% in the past year. It currently sports a Zacks Rank #1.


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