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(16:49 GMT) B2Gold Corp Raised to Buy From Market Perform by Cormark Securities

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B2Gold Corp. BTG reported adjusted earnings per share (EPS) of 1 cent for fourth-quarter 2024, missing the Zacks Consensus Estimate of 6 cents. The bottom line slumped 86% year over year. The downside was attributed to the decrease in gold ounces sold in the quarter due to lower production at the Fekola mine.

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Including one-time items, the company reported a loss of 1 cent per share compared with the prior-year quarter’s loss of 9 cents.

B2Gold generated revenues of $499.8 million in fourth-quarter 2024, reflecting a year-over-year decrease of 2.4%. The 33.5% increase in average realized gold prices was partially offset by a 26.9% fall in gold ounces sold in the quarter. In the December-end quarter, B2Gold recorded a consolidated gold production of 186,001 ounces, down 31.1% year over year.

B2Gold Corp Price, Consensus and EPS Surprise

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

In the fourth quarter, the Fekola mine's production fell short of expectations due to the delayed access to high-grade ore, leading to reduced processing of high-grade material.

BTG’s Q4 Gross Margin Dips Y/Y, Costs Rise

The company reported consolidated cash operating costs of $968 per ounce in the reported quarter, up 58.4% year over year. The consolidated all-in-sustaining costs (AISC) of $1,668 per ounce rose 32% from the prior-year quarter.

For the October-December quarter, the total cost of sales was $326 million, up 6.3% year over year. The gross profit decreased 15.4% year over year to $174 million. The gross margin contracted to 34.8% in the reported quarter from the prior-year quarter’s 40.1%.

The operating income in the reported quarter was $128 million against the prior-year quarter’s operating loss of $35 million.

B2Gold’s Q4 Cash Flow & Balance Sheet Update

BTG’s cash and cash equivalents were $337 million at the end of 2024 compared with $307 million at the end of 2023. The company generated $878 million in cash from operating activities in 2024 compared with $714 million in 2023. Its long-term debt was $421 million at the end of 2024, up from $176 million at the end of 2023.

BTG’s 2024 Performance

B2Gold reported an adjusted EPS of 16 cents in 2024 compared with 28 cents in the prior year. Earnings missed the Zacks Consensus Estimate of 21 cents. Including one-time items, the company posted a loss of 48 cents against earnings of 1 cent in 223.

Sales fell 1.2% year over year to $1.90 billion. The top line met the Zacks Consensus Estimate.

B2Gold’s 2025 Outlook

The company expects 2025 total gold production at the low end of 970,000-1,075,000 ounces. B2Gold’s production in 2024 was 804,778 ounces (including 19,644 attributable ounces from Calibre Mining Corp.).

BTG Stock’s Price Performance

The company’s shares have gained 19.8% in the past year compared with the industry’s growth of 61%.

B2Gold’s Zacks Rank

BTG currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BTG’s Peer Performances in Q4

Royal Gold, Inc. RGLD reported adjusted EPS of $1.63 in the fourth quarter of 2024, beating the Zacks Consensus Estimate of $1.49. The bottom line increased 72% year over year.

RGLD generated revenues of $203 million, up 32.7% year over year. The upside was driven by higher average metal prices, increased gold sales from Rainy River and Wassa, and higher gold sales from the Peñasquito mine. However, the gains were partially offset by a year-over-year decline in gold production from Cortez.

Barrick Gold Corporation GOLD recorded an adjusted EPS of 46 cents. The figure beat the Zacks Consensus Estimate of 41 cents. The company recorded net earnings (on a reported basis) of $996 million or 57 cents per share for fourth-quarter 2024. The figure improved from a profit of $479 million or 27 cents per share in the year-ago quarter.

Barrick’s total revenues were $3.64 billion, up 19.2% year over year.

Kinross Gold Corporation KGC posted adjusted earnings of 20 cents per share, up from the prior-year quarter figure of 11 cents. The bottom line missed the Zacks Consensus Estimate of 23 cents.

KGC’s revenues rose 26.9% year over year to $1.42 billion in the fourth quarter. It topped the Zacks Consensus Estimate of $1.11 billion.

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B2Gold overnight Wednesday reported attributable net loss of US$0.01 per share in Q4 2024, and adjusted attributable net income of $0.01 per share in Q4 2024, which was below the consensus forecast of $0.06 for 11 analysts, according to FactSet. Among other highlights, BTO achieved 2024 Total Gold Production and Consolidated Cost Guidance and said the Goose Project "remains on track" for first gold in Q2 2025 while its Total Capital Estimate remains at C$1,540 Million. A Q1 2025 dividend of US$0.02 per share was declared.

Meanwhile, Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) said for the fourth quarter, Adjusted EBITDA was $56 million, Earnings from mining operations before depletion and amortization and non-recurring items was $59 million and Cash flows from operations was $73 million. A Net loss of $21 million ($0.07 loss per share) was recorded and Adjusted net income was $10 million ($0.03 per share).

Among highlights, Gibraltar produced 29 million pounds of copper and 578 thousand pounds of molybdenum in the fourth quarter at Total operating costs (C1) of $2.42 per pound of copper produced. Mill throughput averaged 89,600 tons per day, which is the highest ever achieved for a quarter at Gibraltar.

For the year, copper production was 106 million pounds, in line with the revised production guidance, and molybdenum production was 1.4 million pounds. TKO said higher than normal scheduled downtime in both concentrators and an 18-day labour strike impacted annual production by approximately 15 million pounds in 2024. Copper grades in 2024 averaged 0.23% and Total operating costs (C1) were US$2.66 per pound produced.

Looking ahead, copper production in 2025 is expected to increase to 120 to 130 million pounds as mill operating time returns to normal levels and the restart of the SX/EW plant adds additional capacity. However, it said, production will be weighted to the back half of the year and the first quarter will be the lowest production quarter as lower grade ore stockpiles will be used to supplement mined ore from a new pushback in the Connector pit.

At Florence Copper, construction is "advancing on schedule", including all critical path items, and the overall project completion was over 60% as of the end of January. A total of 58 out of the 90 production wells to be drilled during the construction phase have now been completed. In the SX/EW area, construction activities are focussed on mechanical, piping and electrical installations. The erection of the electrowinning building has commenced, and construction of the tank farm is well advanced. Work in the pipe corridor continues with lining and pipe installation nearly complete.

Stuart McDonald, President and CEO of Taseko, said, "We had a strong finish to the year at Gibraltar and, with both concentrators operating well, the mine achieved a new record for quarterly mill throughput. With stable milling operations expected in 2025 we expect a significant improvement in annual production of copper and molybdenum, although we will see lower head grades in the first part of the year during a new pushback in the Connector pit. The refurbishment of the SX/EW plant is progressing on schedule and first cathode production at Gibraltar is anticipated in the second quarter."

McDonald continued, "We remain pleased with the construction progress at Florence. Four drill rigs are advancing wellfield drilling which is scheduled for completion in the second quarter. Our construction workforce is currently at approximately 360 workers, and will reach peak manpower levels this quarter. First copper production continues to be targeted before the end of the year.

"The company remains in a solid financial position with a year end cash balance of $173 million and available liquidity of approximately $331 million, including our undrawn credit facility. Recent trends in global markets are benefitting Gibraltar as copper prices have risen 8% since the start of the year, and the Canadian dollar has weakened relative to the US dollar. Gibraltar's cost structure will also benefit this year from copper offtake contracts at average TC/RCs of zero, higher by-product credits from increased molybdenum production, and lower oil prices. Our copper price protection at a minimum price of US$4.00 per pound for all of 2025, provides additional downside protection. We're very excited about the year ahead as we're now less than 12 months from first copper production at Florence Copper, which is going to dramatically improve our business outlook.

He concluded: "In the longer term, the Yellowhead project represents another major growth opportunity for our North American copper business. We're advancing project permitting this year and also publishing a new technical report, with updated costing and metal prices, and incorporating the new Canadian tax credits available for copper mine development."

Elsewhere, Calibre Mining Corp. reported fourth quarter adjusted net earnings per share basic of US$0.05 compared to $0.00 a year earlier. Among highlights, the company said 2025 is set to be a "transformational year" as the multi-million ounce Valentine Gold Mine, Canada, advances to first gold during Q2, 2025.

Darren Hall, President and Chief Executive Officer, said: "Calibre delivered a record Q4 consolidated gold production of 76,269 ounces, and full year 2024 production of 242,487 ounces, surpassing the revised 2024 annual production guidance. As of February 15, 2025, the year is off to a strong start with consolidated production trending 15% higher than budget and cash increased to $161 million, a 23% increase over December 31, 2024.

"2025 is set to be a transformative year for Calibre, with the Valentine Gold Mine on track for first gold during the second quarter. We hired a high quality, experienced operating team through 2024 and are working with Reliable Controls Corporation to conduct pre-commissioning and commissioning to ensure operational readiness. In addition, all necessary equipment and resources for timely production are on site. Based on the 2022 Feasibility Study, Valentine's life-of-mine average production is expected to be approximately 195,000 ounces per year, with the process plant expected to reach 2.5 Mpta by the end of 2025.

"The exploration potential at Valentine is incredibly exciting. We have seen continued success since the discovery made southwest of the Leprechaun deposit in late 2024 with initial drill results returning grades more than 40% above Mineral Reserve grade. As we progress during 2025, we are preparing for the largest pure exploration program in Valentine's history. With tens of kilometres of the Valentine Lake Shear Zone and the Parallel Northwest Contact still untested, we remain optimistic about the significant upside potential as we advance efforts to establish this district as a new gold camp.

"With strong gold prices, consistent operating performance, successful exploration results and Valentine on track to enhance diversification and growth, I am confident that we will continue delivering superior value for our shareholders."