The calculations below outline how an intrinsic value for B2Gold is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$32.00||$368.75||$424.95||$435.00||$386.00|
|Source||Analyst x4||Analyst x8||Analyst x2||Analyst x1||Analyst x1|
Discounted (@ 15.8%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $386 × (1 + 2.5%) ÷ (15.78% – 2.5%)
Terminal value based on the Perpetuity Method where growth (g) = 2.5%:
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
Value = Total value / Shares Outstanding ($2,432 / 979)
Value per share:
Current discount (share price of $2.96): -19%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 15.78% = 2.47% + (1.768 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.768 = 1.625 (1 + (1- 30%) (12.6%))
Levered Beta used in calculation = 1.768
If the companies market cap is in a different currency to that of the listing the equivilent number of shares outstanding must be calculated.
Market Cap (CAD): 3,863Exchange rate CAD/USD = 0.75
Market Cap (USD): $2,897
Equivilent shares outstanding: $2,897 / $2.96 = 979
Are B2Gold's annual earnings growth expected to exceed 3.6% over the next 3 years?
Mr. Clive Thomas Johnson has been the Chief Executive Officer and President of B2Gold Corp. since March 2007 and December 17, 2006 respectively. Mr. Johnson served as President and Chief Executive Officer of EastWest Gold Corporation since July 1993 and June 1989 respectively and serves as its Chief Operating Officer. He served as the Chairman of EastWest Gold Corporation. He has been the Chairman of Uracan Resources, Ltd. since November 2013. He serves as a Director of CGA Mining Limited. He has been a Director of B2Gold Corp. since December 17, 2006. He has been a Director of Uracan Resources, Ltd. since January 9, 2007. He has been a Director of EastWest Gold Corporation since December 5, 1988. He serves as Member of Corporate Governance & Nominating Committee, Member of Disclosure Committee and Member of Hedging Committee for EastWest Gold Corporation. He served as a Director of Victoria Gold Corp. since April 30, 1987. He served as a Director of Consolidated Westview Resource Corp. since April 30, 1987. He served as a Director of Consolidated Puma Minerals Corp. since March 3, 1988. He served as a Director of Arizona Star Resource Corp. from April 10, 1987 to December 2004.
Average tenure of the B2Gold management team:
Average tenure of the B2Gold board of directors:
B2Gold Corp. engages in the acquisition, exploration, and development of mineral properties in Nicaragua, the Philippines, Namibia, Mali, Colombia, Burkina Faso, Finland, and Chile. It principally explores for gold, silver, and copper deposits. The company’s production properties include the La Libertad mine with an exploitation concession covering 10,950 hectares and the El Limon mine covering 12,000 hectares located in Nicaragua; the Masbate mine covering approximately 10,807 hectares and the Pajo property covering 786 hectares located in the Philippines; and Otjikoto mine covering 6,933.99 hectares located in Namibia. It also holds 90% interest in the Fekola project located in Mali; 81% interest in the Kiaka project located in Burkina Faso; a 49% joint venture interest in the Gramalote property located in Colombia; and an interest in the Quebradona property located in Colombia. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.
|Market Cap:||$3,863 million|
Three Bentall Centre, Vancouver, V7X 1J1, Canada