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.

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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%.

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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.

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