FCUUF & Paladin Merger Faces Extended Security Review in Canada

B2Gold Corp. BTG stated that its 2024 drilling campaign at the Goose Project in Nunavut has produced promising findings, highlighting the possibility of resource expansion. The positive drill results illustrate B2Gold's ability to enhance Mineral Resources and extend mine life at the Goose Project. The exploration results demonstrate BTG's commitment to organic expansion and ability to produce value for shareholders.

B2Gold’s Drilling Highlights

The 2024 drilling campaign at the Goose Project has yielded impressive results. As of Nov. 7, 2024, B2Gold completed 25,126 meters of drilling over 68 drill holes at the Goose Project.

This includes 14,480 meters over 40 drill holes at the Umwelt deposit, 3,899 meters over 14 drill holes at the Llama deposit area, 6,610 meters over 13 exploration target drill holes, and 137 meters over one metallurgical hole at the Goose Main deposit. Notable drill intersections were recorded at the Nuvuyak deposit, the Mammoth target and the Llama deposit.

At Nuvuyak, drilling returned 6.39 grams per ton (“g/t”) of gold over 28.80 meters, including a higher-grade interval of 23.49 g/t gold over 6.45 meters. The Mammoth target saw equally encouraging results, with 17.45 g/t gold over 10.96 meters, including a remarkable 68.61 g/t gold over 2.51 meters. Drilling at the Llama deposit intersected 14.34 g/t gold over 27.95 meters, featuring a high-grade interval of 54.17 g/t gold over 6 meters.

BTG’s Focus on Exploration

The Goose Project consists of five known deposits, with existing mineral resources occurring along eight kilometers. B2Gold believes there is an exploration upside on all known deposits open at depth, as well as many zones of interest that are yet to be investigated within the favorable host-banded iron formation geology.

Over 13 holes have already been drilled at the Goose Project exploration targets, and drilling is ongoing at the Mammoth and Hook targets. The results for Nuvuyak, Mammoth and Wing have been gathered, and the remaining targets are awaiting.

The company's focus on exploration and resource expansion is expected to continue driving growth and enhancing the overall value of the Goose Project.

B2Gold Q3 Earnings Dip Y/Y on Low Production

BTG reported adjusted earnings per share (EPS) of 2 cents for third-quarter 2024, missing the Zacks Consensus Estimate of 5 cents. The reported figure marked a year-over-year plunge of 60%.

B2Gold generated revenues of $448 million in third-quarter 2024 compared with the prior-year quarter’s $478 million. The 29.3% increase in average realized gold prices was partially offset by a 27.5% fall in gold ounces sold in the quarter. In the September-end quarter, B2Gold recorded a consolidated gold production of 180,553 ounces, down 19.8% year over year.

B2Gold’s Share Price Performance

In the past year, the company’s shares have lost 1.9% against the industry’s growth of 29.1%.

BTG’s Zacks Rank & Stocks to Consider

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

Some better-ranked stocks from the basic materials space are CF Industries Inc. CF, Carpenter Technology Corporation CRS and IAMGOLD Corporation IAG. CF and CRS sport a Zacks Rank #1 (Strong Buy) at present, and IAG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF’s shares gained 15.8% in the last year.

Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2025 earnings is pegged at $6.44 per share. The consensus estimate for 2025 earnings has moved 6% north in the past 60 days. Its shares rose 164.9% in the last year.

IAMGOLD has an average trailing four-quarter earnings surprise of 203.1%. The Zacks Consensus Estimate for IAG’s 2024 earnings is pegged at 56 cents per share. The consensus estimate for 2024 earnings has moved 24% north in the past 60 days. Its shares skyrocketed 127.5% in the last year.

Zacks Investment Research

Piedmont Lithium PLL and Sayona Mining Limited have entered into an all-stock merger agreement to form a unified company, MergeCo, which will be focused on hard rock lithium production.

The deal combines Piedmont Lithium and Sayona Mining’s complementary businesses and is expected to position the new entity as a leader in North American lithium production. MergeCo will have three high-quality development projects and the potential for brownfield expansion at North American Lithium (“NAL”).

The PLL-Sayona merger has been unanimously approved by the board of directors of both companies. However, the completion of the transaction is subject to shareholder approval of both companies, as well as regulatory approvals. It is expected to close in the first half of 2025.

The transaction will result in an approximate 50%-50% equity holding of shareholders of Piedmont and Sayona in the combined company. MergeCo will be domiciled in Australia but will maintain a listing on Nasdaq.

PLL-Sayona Merger Offers Solid Synergies & Growth Potential

NAL is the largest lithium operation in North America and one of the world’s few active hard rock spodumene operations supplying the market. It is jointly owned by Piedmont (25%) and Sayona Mining Limited (75%). NAL finished ramping up in June 2024 and is targeting 226,000 metric tons a year of spodumene concentrate production.

The Piedmont-Sayona merger will create a simpler and stronger lithium business, positioning it well to grow through cycles. It will have low capital intensity with a lower cost base. Shared benefits of synergies, in the form of optimized logistics and procurement, will help lower operating costs. Marketing synergies are expected through expanded customer relationships. A strengthened balance sheet will also help MergeCo to fund and accelerate growth plans.

There has been a downtrend in lithium prices due to slowing demand growth for EVs, inventory glut and increased supply. Despite short-term market pressures, the long-term prospects for lithium remain robust. Demand for lithium, a core component of EV batteries, is expected to accelerate on the back of significant global EV adoption, driven by government mandates and consumer preference for greener alternatives. The increasing adoption of lithium-ion batteries in energy storage systems also contributes to this demand surge.

Piedmont’s Shares Underperform Industry

PLL’s shares have lost 58.2% in the past year compared with the industry’s 9.7% decline.

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has New Gold (NGD) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

New Gold is a member of our Basic Materials group, which includes 235 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. New Gold is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for NGD's full-year earnings has moved 7.8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that NGD has returned about 73.3% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of -5.1%. This shows that New Gold is outperforming its peers so far this year.

NexGen Energy (NXE) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.4%.

Over the past three months, NexGen Energy's consensus EPS estimate for the current year has increased 43.2%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, New Gold is a member of the Mining - Gold industry, which includes 38 individual companies and currently sits at #35 in the Zacks Industry Rank. This group has gained an average of 10.4% so far this year, so NGD is performing better in this area.

On the other hand, NexGen Energy belongs to the Mining - Miscellaneous industry. This 60-stock industry is currently ranked #175. The industry has moved -17.2% year to date.

Investors with an interest in Basic Materials stocks should continue to track New Gold and NexGen Energy. These stocks will be looking to continue their solid performance.

Zacks Investment Research

Shares of B2Gold Corp BTG have dipped 12% since it registered year-over-year declines in its top and bottom lines in its third-quarter 2024 results on Nov. 6. The downside was led by the decrease in gold ounces sold for the company in the quarter due to lower production at the Fekola mine.

BTG reported adjusted earnings per share (EPS) of 2 cents for third-quarter 2024, missing the Zacks Consensus Estimate of 5 cents. The reported figure marked a year-over-year plunge of 60%.

Including one-time items, BTG incurred a loss of 48 cents per share, wider than the prior-year quarter’s loss of 3 cents.

B2Gold generated revenues of $448 million in third-quarter 2024 compared with the prior-year quarter’s $478 million. The 29.3% increase in average realized gold prices was partially offset by a 27.5% fall in gold ounces sold in the quarter. In the September-end quarter, B2Gold recorded a consolidated gold production of 180,553 ounces, down 19.8% year over year.

In the third 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.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

BTG’s Q3 Margins Dip Y/Y, Costs Rise

The company reported total consolidated cash operating costs of $1,061 per ounce in the reported quarter, up 40.5% year over year. Total consolidated all-in-sustaining costs of $1,650 per ounce were 30% higher than the prior-year quarter.

In the July-September quarter, the cost of sales was $313 million, up 2% year over year. The gross profit fell 20.9% year over year to $135 million. The gross margin fell to 30.1% in the reported quarter from the prior-year quarter’s 35.7%.

B2Gold Corp Price, Consensus and EPS Surprise

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

The operating loss in the reported quarter was $562 million against the prior-year quarter’s operating income of $27.5 million.

B2Gold’s Q3 Cash Flow & Balance Sheet Update

BTG’s cash and cash equivalents were $431 million at the end of the third quarter compared with $307 million at the end of 2023. The company used $16 million in cash from operating activities in the September-end quarter against a cash inflow of $110 million in the year-ago quarter.

B2Gold’s long-term debt was $222 million at the end of the third quarter compared with $176 million at the end of 2023.

BTG’s 2024 Outlook

B2Gold expects 2024 total gold production at the low end of 800,000-870,000 ounces (including 20,000 ounces of attributable production from Calibre). B2Gold’s production in 2023 was 1,061,060 ounces (which included 68,717 ounces of attributable production from Calibre).

B2Gold’s Price Performance

In the past year, B2Gold’s shares have lost 2.2% against the industry’s growth of 49.7%.

BTG’s Zacks Rank

B2Gold currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

B2Gold’s Peer Performances in Q3

Agnico Eagle Mines Limited AEM reported third-quarter 2024 adjusted earnings of $1.14 per share, up from 44 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 98 cents.

AEM generated revenues of $2.16 billion, up 31.2% year over year. The top line surpassed the Zacks Consensus Estimate of $1.83 billion.

Barrick Gold Corporation GOLD posted third-quarter 2024 adjusted earnings per share of 31 cents. The figure missed the Zacks Consensus Estimate of 33 cents.

Barrick Gold recorded total revenues of $3,368 million, up 17.7% year over year. Total gold production was 943,000 ounces in the quarter, down 9.2% year over year.

Kinross Gold Corporation’s KGC third-quarter 2024 adjusted earnings per share were 24 cents compared with 12 cents in the prior-year quarter. It beat the Zacks Consensus Estimate of 18 cents.

KGC’s revenues rose 29.9% year over year to $1,432 million, surpassing the Zacks Consensus Estimate of $1,186.7 million. The company benefited from higher average realized gold prices.

Zacks Investment Research

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, November 12:

Grupo Financiero Galicia S.A. GGAL: This financial service holding company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days.

Grupo Financiero Galicia S.A. Price and Consensus

Grupo Financiero Galicia S.A. price-consensus-chart | Grupo Financiero Galicia S.A. Quote

Grupo Financiero Galicia's shares gained 59.7% over the last three months compared with the S&P 500’s advanced of 10.4%. The company possesses a Momentum Score of A.

Grupo Financiero Galicia S.A. Price

Grupo Financiero Galicia S.A. price | Grupo Financiero Galicia S.A. Quote

New Gold Inc. NGD: This gold mining company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 30.8% over the last 60 days.

New Gold Inc. Price and Consensus

New Gold Inc. price-consensus-chart | New Gold Inc. Quote

New Gold's shares gained 36.0% over the last six months compared with the S&P 500’s advanced of 14.9%. The company possesses a Momentum Score of A.

New Gold Inc. Price

New Gold Inc. price | New Gold Inc. Quote

Bowhead Specialty Holdings Inc. BOW: This specialty property and casualty insurance products provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.5% over the last 60 days.

Bowhead Specialty Holdings Inc. Price and Consensus

Bowhead Specialty Holdings Inc. price-consensus-chart | Bowhead Specialty Holdings Inc. Quote

Bowhead Specialty's shares gained 23.6% over the last three months compared with the S&P 500’s advanced of 10.4%. The company possesses a Momentum Score of A.

Bowhead Specialty Holdings Inc. Price

Bowhead Specialty Holdings Inc. price | Bowhead Specialty Holdings Inc. Quote

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

Zacks Investment Research