TSX:BTO

Stock Analysis Report

Executive Summary

B2Gold Corp., together with its subsidiaries, engages in the exploration and development of mineral properties for gold deposits in Nicaragua, the Philippines, Mali, Colombia, Burkina Faso, and Namibia.

Rewards

Trading at 29.4% below its fair value

Earnings are forecast to grow 20.09% per year

Risk Analysis

Profit margins (1.2%) are lower than last year (15.7%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has B2Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BTO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

BTO

0.3%

CA Metals and Mining

1.2%

CA Market


1 Year Return

52.4%

BTO

28.3%

CA Metals and Mining

9.6%

CA Market

Return vs Industry: BTO exceeded the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: BTO exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

BTOIndustryMarket
7 Day4.1%0.3%1.2%
30 Day12.1%3.2%2.6%
90 Day26.0%7.8%6.0%
1 Year52.8%52.4%29.2%28.3%13.1%9.6%
3 Year43.5%43.1%-0.4%-2.2%17.1%6.4%
5 Year114.1%113.5%28.4%24.2%36.1%16.0%

Price Volatility Vs. Market

How volatile is B2Gold's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is B2Gold undervalued compared to its fair value and its price relative to the market?

48.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BTO (CA$5.19) is trading below our estimate of fair value (CA$7.36)

Significantly Below Fair Value: BTO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BTO is poor value based on its PE Ratio (258.2x) compared to the Metals and Mining industry average (17.3x).

PE vs Market: BTO is poor value based on its PE Ratio (258.2x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: BTO is poor value based on its PEG Ratio (12.9x)


Price to Book Ratio

PB vs Industry: BTO is overvalued based on its PB Ratio (2.3x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is B2Gold forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BTO's forecast earnings growth (20.1% per year) is above the savings rate (1.4%).

Earnings vs Market: BTO's earnings (20.1% per year) are forecast to grow faster than the Canadian market (10.3% per year).

High Growth Earnings: BTO's earnings are forecast to grow, but not significantly.

Revenue vs Market: BTO's revenue (7.1% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: BTO's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BTO's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has B2Gold performed over the past 5 years?

72.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BTO has high quality earnings.

Growing Profit Margin: BTO's current net profit margins (1.2%) are lower than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: BTO has become profitable over the past 5 years, growing earnings by 72.6% per year.

Accelerating Growth: BTO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BTO had negative earnings growth (-90.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-1.4%).


Return on Equity

High ROE: BTO's Return on Equity (2.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is B2Gold's financial position?


Financial Position Analysis

Short Term Liabilities: BTO's short term assets ($560.6M) exceed its short term liabilities ($234.0M).

Long Term Liabilities: BTO's short term assets ($560.6M) exceed its long term liabilities ($541.9M).


Debt to Equity History and Analysis

Debt Level: BTO's debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: BTO's debt to equity ratio has reduced from 20.2% to 19.1% over the past 5 years.

Debt Coverage: BTO's debt is well covered by operating cash flow (114.2%).

Interest Coverage: BTO's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet

Inventory Level: BTO has a high level of physical assets or inventory.

Debt Coverage by Assets: BTO's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is B2Gold's current dividend yield, its reliability and sustainability?

0.73%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.9%markettop25%5.4%industryaverage1.2%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: BTO's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: BTO's dividend (0.76%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

Stable Dividend: BTO is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: BTO is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BTO's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of B2Gold's salary, the management and board of directors tenure and is there insider trading?

12.8yrs

Average management tenure


CEO

Clive Johnson (61yo)

12.8yrs

Tenure

US$7,505,450

Compensation

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 & Chief Executive Officer of ...


CEO Compensation Analysis

Compensation vs Market: Clive's total compensation ($USD5.74M) is above average for companies of similar size in the Canadian market ($USD2.87M).

Compensation vs Earnings: Clive's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

12.8yrs

Average Tenure

61yo

Average Age

Experienced Management: BTO's management team is seasoned and experienced (12.8 years average tenure).


Board Age and Tenure

10.1yrs

Average Tenure

61yo

Average Age

Experienced Board: BTO's board of directors are seasoned and experienced ( 10.1 years average tenure).


Insider Trading

Insider Buying: BTO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$883,38627 Dec 19
William Lytle
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Operations
Shares172,200
Max PriceCA$5.13
SellCA$43,38013 Dec 19
Robert Gayton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,000
Max PriceCA$4.82
SellCA$81,67729 Nov 19
Roger Richer
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares16,401
Max PriceCA$4.98
SellCA$664,42430 Aug 19
Dana Rogers
EntityIndividual
Shares184,200
Max PriceCA$3.65
SellCA$242,00026 Aug 19
Robert Gayton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$4.84
SellCA$2,425,00016 Aug 19
Roger Richer
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares500,000
Max PriceCA$4.85
SellCA$2,425,00016 Aug 19
Clive Johnson
EntityIndividual
Role
Chief Executive Officer
President
Shares500,000
Max PriceCA$4.85
SellCA$64,27214 Aug 19
Eduard Bartz
EntityIndividual
Shares13,252
Max PriceCA$4.85
SellCA$2,138,03414 Aug 19
Michael Cinnamond
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance & CFO
Shares427,554
Max PriceCA$5.01
SellCA$504,00013 Aug 19
Ian MacLean
EntityIndividual
Role
Head of Investor Relations
Vice President of Investor Relations
Shares100,000
Max PriceCA$5.04
SellCA$40,98513 Aug 19
Eduard Bartz
EntityIndividual
Shares8,197
Max PriceCA$5.00
SellCA$756,50013 Aug 19
Hugh MacKinnon
EntityIndividual
Shares150,000
Max PriceCA$5.05
SellCA$1,161,94113 May 19
Canaccord Genuity Wealth (International) Limited
EntityCompany
Shares318,340
Max PriceCA$3.65
BuyCA$14,40013 May 19
Kevin Bullock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceCA$3.60
SellCA$43,68013 May 19
Lindsay Mine Services Ltd
EntityCompany
Shares12,000
Max PriceCA$3.64
SellCA$5,250,00012 Apr 19
Clive Johnson
EntityIndividual
Role
Chief Executive Officer
President
Shares1,400,000
Max PriceCA$3.75
BuyCA$24,80911 Apr 19
Kevin Bullock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,810
Max PriceCA$3.65
SellCA$2,190,00008 Apr 19
Thomas Garagan
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Exploration
Shares600,000
Max PriceCA$3.65
SellCA$2,555,00008 Apr 19
Dennis Stansbury
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Engineering & Project Evaluations
Shares700,000
Max PriceCA$3.65
SellCA$3,650,00008 Apr 19
Roger Richer
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,000,000
Max PriceCA$3.65
SellCA$365,00008 Apr 19
Ian MacLean
EntityIndividual
Role
Head of Investor Relations
Vice President of Investor Relations
Shares100,000
Max PriceCA$3.65
SellCA$663,05908 Apr 19
Robert Cross
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares181,660
Max PriceCA$3.65
BuyCA$37,49529 Mar 19
Kevin Bullock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$3.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Management Team

  • Clive Johnson (61yo)

    President

    • Tenure: 12.8yrs
    • Compensation: US$7.51m
  • Roger Richer (66yo)

    Executive VP

    • Tenure: 12.8yrs
    • Compensation: US$2.38m
  • Dennis Stansbury (66yo)

    Senior Vice President of Engineering & Project Evaluations

    • Tenure: 12.8yrs
    • Compensation: US$2.25m
  • Tom Garagan (60yo)

    Senior Vice President of Exploration

    • Tenure: 12.8yrs
    • Compensation: US$2.38m
  • Ian MacLean

    Vice President of Investor Relations

    • Brian Scott

      Vice President of Geology & Technical Services

      • Bill Lytle

        Senior Vice President of Operations

        • Tenure: 9.1yrs
        • Compensation: US$2.38m
      • Mike Cinnamond (52yo)

        Senior VP of Finance & CFO

        • Tenure: 5.8yrs
        • Compensation: US$2.38m
      • Kevin Pemberton

        Chief Mine Planning Engineer

        • Mark Dawe

          Managing Director and Country Manager of Namibia


          Board Members

          • Clive Johnson (61yo)

            President

            • Tenure: 12.8yrs
            • Compensation: US$7.51m
          • George Johnson (70yo)

            Independent Director

            • Tenure: 3.8yrs
            • Compensation: US$290.00k
          • Bob Gayton (79yo)

            Independent Director

            • Tenure: 12.3yrs
            • Compensation: US$300.00k
          • Jerry Korpan (73yo)

            Independent Director

            • Tenure: 12.2yrs
            • Compensation: US$290.00k
          • Bob Cross (60yo)

            Non-Executive Chairman

            • Tenure: 12.3yrs
            • Compensation: US$450.00k
          • Kevin Bullock (54yo)

            Independent Director

            • Tenure: 6.1yrs
            • Compensation: US$270.00k
          • Bongani Mtshisi (40yo)

            Independent Director

            • Tenure: 8.1yrs
            • Compensation: US$280.00k
          • Robin Weisman

            Independent Director

            • Tenure: 2.3yrs
            • Compensation: US$280.00k

          Company Information

          B2Gold Corp.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: B2Gold Corp.
          • Ticker: BTO
          • Exchange: TSX
          • Founded: 2006
          • Industry: Gold
          • Sector: Materials
          • Market Cap: CA$5.527b
          • Shares outstanding: 1.03b
          • Website: https://www.b2gold.com

          Number of Employees


          Location

          • B2Gold Corp.
          • Three Bentall Centre
          • Suite 3100
          • Vancouver
          • British Columbia
          • V7X 1J1
          • Canada

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          BTOTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2007
          5BGDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2007
          BTGAMEX (NYSE MKT LLC)YesCommon SharesUSUSDDec 2007
          B2GNMSE (Namibian Stock Exchange)YesCommon SharesNAZARDec 2007
          0QYNLSE (London Stock Exchange)YesCommon SharesGBCADDec 2007
          BTOSWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 2007

          Biography

          B2Gold Corp., together with its subsidiaries, engages in the exploration and development of mineral properties for gold deposits in Nicaragua, the Philippines, Mali, Colombia, Burkina Faso, and Namibia. The company primarily holds 80% interest in the Fekola mine, an open pit gold mine located in Mali; 90% interest in the Otjikoto gold mine located north of Windhoek, Namibia; the Masbate gold project located in the south-east of Manila, the Philippines; and 100% interest in the El Limon mine, an underground gold mine located in northwestern Nicaragua. It also holds 100% interest in the La Libertad mine located in northeast of Juigalpa, Nicaragua; 81% interest in the Kiaka and Toega projects located in Burkina Faso; and 49% interest in the Gramalote property located in Colombia. The company was incorporated in 2006 and is headquartered in Vancouver, Canada. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/18 00:13
          End of Day Share Price2020/01/17 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.