B2Gold Gains 31% in 3 Months: Here's How to Play the Stock

Core Insights - B2Gold Corp. (BTG) shares have increased by 31.3% over the past three months, outperforming the industry growth of 26.3% and the Zacks Basic Materials sector's 8.3% increase, as well as the S&P 500's 10% rise [1][2]. Financial Performance - In Q2, B2Gold's revenues rose by 40% to $692 million, primarily driven by higher gold prices, while sales volumes remained flat compared to the previous year [4][5]. - Adjusted earnings per share (EPS) for Q2 were 10 cents, reflecting a 67% year-over-year increase [5]. - Total cost of sales increased by 22% year over year to $341 million, with gross profit rising by 34.8% to $351 million [6]. - Operating income surged to $329.5 million, a significant increase from $31 million in the prior-year quarter [6]. Production and Projects - B2Gold achieved consolidated gold production of 229,454 ounces, a 12.3% year-over-year increase, and is on track to meet its 2025 production target of 970,000-1,075,000 ounces [7]. - The Goose mine is expected to ramp up to commercial production in Q3 2025, with projected output of 120,000–150,000 ounces for the year and an average of 300,000 ounces annually from 2026 to 2031 [8]. - Approval for underground mining at the Fekola Mine has been granted, with expected contributions of 25,000–35,000 ounces in 2025 and approximately 180,000 ounces annually from 2026 through 2029 [9][10]. Financial Position - As of June 30, 2025, B2Gold had cash and cash equivalents of $308 million and working capital of $19 million, with an undrawn $800 million revolving credit facility [11]. - The company's total debt-to-capital ratio stood at 0.12, lower than peers Eldorado Gold (0.22) and IAMGOLD (0.24) [11]. Dividend and Valuation - B2Gold offers a dividend yield of 2.07%, surpassing the industry average of 1.21%, with a payout ratio of 33% [14]. - The company is trading at a forward price/earnings ratio of 6.58X, significantly lower than the industry average of 13.49X and peers IAMGOLD (7.82X) and Eldorado Gold (9.21X) [15][16]. Earnings Estimates - The Zacks Consensus Estimate for B2Gold's 2025 earnings indicates a year-over-year growth of 262.5%, driven by rising gold prices and production [20]. - The earnings estimate for 2026 shows a slowdown in growth to 2.7% [20].