B2Gold Corp (NYSE: BTG)

Sector: Basic Materials Industry: Gold CIK: 0001429937
Market Cap 6.27 Bn
P/B 1.89
P/E 28.56
P/S 2.50
ROIC (Qtr) 2.60
Div Yield % 1.75
Rev 1y % (Qtr) 74.68
Total Debt (Qtr) 654.61 Mn
Debt/Equity (Qtr) 0.20

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 725.80M provides robust 1.11x coverage of total debt 654.61M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 367.23M provide 7.80x coverage of short-term debt 47.07M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 725.80M provides exceptional 41.07x coverage of minority interest expenses 17.67M, showing strong core operations.
  • Operating cash flow of 725.80M provides exceptional 27.75x coverage of interest expenses 26.15M, showing strong debt service capability.
  • Strong tangible asset base of 5.69B provides 8.70x coverage of total debt 654.61M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 725.80M barely covers its investment activities of (960.94M), with a coverage ratio of -0.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 725.80M provides thin coverage of dividend payments of (124.09M) with a -5.85 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 367.23M provide limited coverage of acquisition spending of (248.87M), which is -1.48x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 36.83M provides weak coverage of capital expenditures of 688.97M, with a 0.05 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 725.80M provides minimal 1.49x coverage of tax expenses of 488.14M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 121.63 Bn 16.92 5.66 5.65 Bn
2 AEM Agnico Eagle Mines Ltd 96.06 Bn 27.86 9.09 0.34 Bn
3 B Barrick Mining Corp 82.76 Bn 23.10 5.67 4.71 Bn
4 WPM Wheaton Precious Metals Corp. 56.61 Bn 56.52 30.93 0.01 Bn
5 FNV FRANCO NEVADA Corp 44.11 Bn 47.96 28.52 0.00 Bn
6 KGC Kinross Gold Corp 38.43 Bn 21.85 5.96 1.24 Bn
7 PAAS Pan American Silver Corp 19.78 Bn 31.19 6.08 0.86 Bn
8 AGI Alamos Gold Inc 17.45 Bn 32.41 10.85 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.13 3.17
EV to Cash from Ops. EV/CFO 8.85 -11.55
EV to Debt EV to Debt 9.81 548.67
EV to EBIT EV/EBIT 8.75 12.24
EV to EBITDA EV/EBITDA -27.27 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 174.31 12.17
EV to Market Cap EV to Market Cap 1.02 1.72
EV to Revenue EV/Rev 2.56 7.50
Price to Book Value [P/B] P/B 1.89 5.26
Price to Earnings [P/E] P/E 28.56 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.77 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 50.00 5.40
Dividend per Basic Share Div per Share (Qtr) 0.08 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 285.71 10.25
Interest Coverage Int. cover (Qtr) 28.06 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 4.23 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -14.82 130.91
Dividend Growth (1y) % Div 1y % (Qtr) -50.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 133.16 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 266.15 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 250.38 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 128.57 224.62
FCF Growth (1y) % FCF 1y % (Qtr) -84.85 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 56.35 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.44 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.03
Cash Ratio Cash Ratio (Qtr) 0.35 3.14
Current Ratio Curr Ratio (Qtr) 1.03 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 0.27
Interest Cover Ratio Int Coverage (Qtr) 28.06 406.21
Times Interest Earned Times Interest Earned (Qtr) 28.06 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -19.19
EBIT Margin % EBIT Margin % (Qtr) 29.27 -44.57
EBT Margin % EBT Margin % (Qtr) 28.22 -34.79
Gross Margin % Gross Margin % (Qtr) 46.00 30.59
Net Profit Margin % Net Margin % (Qtr) 8.80 -40.44