On November 3, B2Gold Corp (NYSEMKT:BTG), a leading gold producer, reported higher earnings, solid cash flow, strong production and significantly lower costs.
For its third quarter, ending on September 30, B2Gold reported gold production of 146,686 ounces. This was six percent higher than what the company budgeted for, and 18% higher than the same period a year ago. (Source: “B2Gold Corp. Reports Q3 2016 Results; Operating Cash Flows Significantly Higher on Record Gold Production, Record Low Costs and Higher Gold Prices; 2016 Guidance Favourably Revised,” B2Gold Corp, November 3, 2016.)
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Consolidated cash operating costs for the third quarter were a record low for the company. They stood at $491.00 per ounce—$73.00 per ounce, or 13% lower than what was budgeted—and $93.00 per ounce, or 16% lower than the same period a year ago.
Consolidated all-in sustaining costs were $702.00 per ounce—$134.00 per ounce, or 16% lower than budgeted costs—and $173.00 per ounce, or 20% compared to the third quarter of 2015.
B2Gold’s revenue jumped immensely. In the third quarter, revenue amounted to $193.04 million on record gold sales of 145,029 ounces, at average realized costs of $1,331.00 per ounce. Revenue jumped 39% from the 2015 third quarter, when revenue was registered at $139.25 million.
Net income for the company in the third quarter was $35.67 million, or $0.04 per diluted share. In the same period a year ago, B2Gold reported a net loss of $13.58 million, or $0.02 per diluted share.
Looking at its cash flow generation from operating activities, B2Gold reported a massive jump. In the third quarter, the company’s cash flow from operating activities amounted to $90.31 million. In the same period in 2015, it was $33.91 million. This represents an increase of 166% year-over-year.
Furthermore, B2Gold provided optimistic guidance for the full-year 2016. It expects consolidated cash operating costs to be in the range of $500.00 to $535.00 per ounce, and all-in sustaining costs to be between $780.00 and $810.00 per ounce. Previously, the company had forecasted cash operating costs to be $560.00 to $595.00 per ounce, and all-in sustaining costs to be between $895.00 and $925.00 per ounce.
In addition to all this, B2Gold said that its Fekola mine, located in Mali, is on track to start producing near the end of 2017.
At the time of this writing, BTG stock was trading at $2.95, up 2.79% from the previous day’s close.
