1. B2Gold Corp. (NYSE:BTG)
Average Price Target Upside as of August 18: 49.71%
Share Price as of August 18: $2.69
B2Gold Corp. (NYSE:BTG) is a low-cost global gold producer based in Vancouver, Canada. The company mainly engages in gold production and has mines operating in Mali, Namibia, and the Philippines. It also has its Goose Project which is under construction in northern Canada and other development projects in Colombia and Finland. As per the company’s forecast, B2Gold Corp. (NYSE:BTG) aims to produce between 800,000 and 870,000 ounces of gold in 2024.
B2Gold Corp. (NYSE:BTG) posted a successful Q2 2024, despite a production setback from an excavator tipover. As a result, the total production during the quarter decreased 5.8% subsequently and also resulted in reduced production guidance by around 50,000 ounces. However, despite the production decrease the company was still able to generate $192 million in operating cash flow.
Management has been focused on its ongoing projects to improve its production and cash costs. It is focused on building new projects and improving the production capacity of its existing assets. For instance, the Fekola complex is expected to contribute over 300,000 ounces annually starting next year. On the other hand, its Goose project in Canada is advancing and is expected to start production by the second quarter of 2025. Looking ahead, the Gramalote project, though still under evaluation, has the potential to add around 200,000 ounces to B2Gold Corp. (NYSE:BTG) production capacity.
Is B2Gold Corp. (NYSE:BTG) a good investment?
We acknowledge that the company faced challenges during the quarter due to the excavator incident. However, if you look at its 10-year history you will see that the company has been able to grow its revenue by 14% and EBITDA by 17% indicating its robust fundamentals. Moreover, its balance sheet is also strong with more than $306.9 million in cash and cash equivalents. A strong balance sheet topped with management’s efforts to leverage its existing assets to improve production makes B2Gold Corp. (NYSE:BTG) an attractive option.
In addition, BTG is also cheap at current levels. It is trading at 11 times its forward earnings, which is a 30% discount to its sector. 14 analysts have a Strong Buy rating on the stock, with their 12-month median price target of $4.30 presenting an upside of 49.71% from the current level.
While we acknowledge the potential of B2Gold Corp. (NYSE:BTG) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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