B2Gold Corp
BTG
entered into an agreement with Mali’s Government related to issuing a permit for the Menankoto exploration near the Fekola mine. In exchange of this permit, the company stated that it will withdraw the arbitration proceedings that its Malian subsidiary, Menankoto SARL, started in June against the Republic of Mali over the denial of an extension for the Menankoto exploration permit. The government agrees to grant a new exploration permit covering the same perimeter as the Menankoto permit to a new Malian subsidiary of B2Gold.
B2Gold expects that the latest Menankoto Permit will be issued to its new Mali-based subsidiary prior to the end of the current year. The permit will comply with the procedures and requirements per the Malian 2019 Mining Code that provides a permit for an initial period of three years, which is renewable for two additional three years.
B2Gold’s Fekola mine, located 20 kms from the Menankoto Permit, is expected to produce gold between 560,000 ounces and 570,000 ounces for the current year. This mine has continued to perform normally with no unfavorable impacts from the Menankoto Permit dispute.
Fekola’s current life of mine plan doesn’t include the Mineral Resources from the Anaconda area (comprising the Menankoto Permit and the Bantako North permit). Upon completion of the final mine plan, the pit situated on the Bantako North permit area will likely supply saprolite material for at least 1.5 to two years to feed the Fekola mill starting in second-half 2022. This additional feed from the Anaconda area to the Fekola Mine is expected to provide immediate value to the State of Mali, which is B2Gold’s 20% partner at the Fekola mine.
B2Gold continues to update the Fekola Mine Plan to include production from Cardinal Zone, which has the capacity to add an average of roughly 60,000 ounces per year to Fekola’s annual gold production over the next six to eight years.
Fekola mine continued its solid operating performance in third-quarter 2021. During the reported quarter, the company increased throughput at the Fekola mill and completed the significant waste-stripping campaigns related to the development of Phases 5 and 6 of the Fekola Pit. Mining reached the higher-grade zones in Phase 5 of the Fekola Pit in the quarter. The mill now has the potential to run at an annualized throughput rate of 8.3 Mtpa (Million Tons Per Annum).
At Otjikoto mine, B2Gold completed the waste-stripping campaigns at the Wolfshag and Otjikoto pits. Gold production increased as mining reached the higher-grade zone at the base of the Wolfshag Pit during the third quarter. The mine is on track to produce between 190,000 and 200,000 ounces of gold in the current year.
Management is planning heavy exploration this year with approximately $66-million budget, including a record $25 million allocated to high-quality targets for the company’s ongoing grassroot exploration programs. In third-quarter earnings call, B2Gold increased the current-year total gold production guidance to 1,015,000-1,055,000 ounces from the prior range of 970,000-1,030,000 ounces. It produced 1,040,737 ounces of gold in 2020.
Price Performance
B2Gold’s shares have depreciated 31% in the past year compared with the
industry
’s decline of 15%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
B2Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Olin Corporation
OLN
,
Bunge Limited
BG
and
Nucor Corporation
NUE
. While Olin and Bunge flaunt a Zacks Rank #1 (Strong Buy), Nucor carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
Olin’s third-quarter 2021 adjusted earnings beat the Zacks Consensus Estimate, while revenues missed the same. It has an expected earnings growth rate of around 740% for the current fiscal year. The Zacks Consensus Estimate for current-year earnings has been revised 20.5% upward in the past 60 days.
Olin’s shares have surged 229% in the past year. The company has a long-term earnings growth of 56%.
Bunge’s third-quarter 2021 earnings and sales beat the respective Zacks Consensus Estimate. It has a trailing four-quarter earnings surprise of 105.7%, on average. The company has an estimated earnings growth rate of around 45% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 36%.
Bunge’s shares have appreciated 60% in the past year. It has a long-term earnings growth of 6.7%.
Nucor’s third-quarter adjusted earnings missed the Zacks Consensus Estimate, while sales beat the same. NUE has a trailing four-quarter earnings surprise of 2.74%, on average.
Nucor has a projected earnings growth rate of around 583% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 18.1% in the past 60 days. The company’s shares have soared 128% in a year.
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