MT Newswires Stocks To Watch: B2Gold; ADENTRA; Automotive Properties REIT; Liberty Gold; Lucara; Vitalhub

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

B2Gold Corp BTG is slated to report third-quarter 2024 earnings results on Nov. 6, after the closing bell.

The Zacks Consensus Estimate for BTG’s third-quarter earnings is pegged at 5 cents, indicating no change from the year-ago reported figure. The consensus estimate has been unchanged in the past 60 days.

BTG’s Earnings Surprise History

B2Gold delivered a beat in one of the trailing four quarters and lagged in the other three, the average surprise being negative 11.5%.

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

What the Zacks Model Unveils for B2Gold

Our proven model does not conclusively predict an earnings beat for B2Gold this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: B2Gold has an Earnings ESP of 0.00%.

Zacks Rank: BTG currently carries a Zacks Rank of 3.

Factors Likely to Have Shaped BTG’s Q3 Performance

Gold prices averaged $2,491 per ounce in the third quarter, up 29% from the prior-year level. Throughout the quarter, gold prices have been fueled by increasing expectations of interest rate cuts and rising tensions in the Middle East. The Fed’s announcement of a 50-basis-point rate cut at the Sept. 17-Sept. 18 meeting lifted gold prices, which ended the quarter at above $2,600 per ounce.

The impacts of higher gold prices are expected to get reflected in B2Gold’s top line in the third quarter of 2024.

However, B2Gold reported an excavator incident at the Fekola mine in the second quarter of 2024, delaying the mining of higher-grade ore from Phase 7 of the Fekola pit in the second half. B2Gold anticipates a production loss of 50,000 ounces for 2024. This likely resulted in a lower year-over-year output in the third quarter.

B2Gold has been witnessing cost inflation pressure across all sites, impacting input prices, including reagents, fuel and consumables. Higher fuel and labor costs, coupled with a stronger foreign exchange rate, are driving costs. These headwinds are expected to have impacted the company’s third-quarter margins.

B2Gold’s Share Price Performance

Shares of B2Gold have gained 1.8% in the past year compared with the industry's growth of 41%.

Stocks to Consider

Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.

Royal Gold, Inc. RGLD, ready to release earnings on Nov. 6, has an Earnings ESP of +1.13% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RGLD’s third-quarter 2024 earnings is pegged at $1.25. It has a trailing four-quarter average surprise of 6.4%.

Kinross Gold Corporation KGC, scheduled to release its third-quarter 2024 on Nov. 5, has an Earnings ESP of +3.18% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for KGC’s third-quarter 2024 earnings is pegged at 16 cents per share, suggesting year-over-year growth of 33.3%. It has a trailing four-quarter average surprise of 29.1%.

Osisko Gold Royalties OR, which currently carries a Zacks Rank of 2, is expected to report third-quarter 2024 results later this month. OR has an Earnings ESP of +1.59%.

The Zacks Consensus Estimate for OR’s earnings for the quarter is pegged at 11 cents per share, indicating 22% year-over-year growth. It has a trailing four-quarter average earnings surprise of 4.1%.

Zacks Investment Research

B2Gold (BTG) closed the most recent trading day at $3.43, making no change from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.33% for the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.56%.

The gold, silver and copper miner's shares have seen an increase of 9.24% over the last month, surpassing the Basic Materials sector's loss of 4.77% and the S&P 500's gain of 1.83%.

The investment community will be closely monitoring the performance of B2Gold in its forthcoming earnings report. The company is scheduled to release its earnings on November 6, 2024. The company is forecasted to report an EPS of $0.05, showcasing no movement from the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.25 per share and a revenue of $1.94 billion, indicating changes of -10.71% and +0.42%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for B2Gold. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.52% higher. B2Gold is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, B2Gold is at present trading with a Forward P/E ratio of 13.72. Its industry sports an average Forward P/E of 15.7, so one might conclude that B2Gold is trading at a discount comparatively.

We can additionally observe that BTG currently boasts a PEG ratio of 2.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Mining - Gold industry stood at 0.79 at the close of the market yesterday.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 11, positioning it in the top 5% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Zacks Investment Research