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B2Gold (BTO:TSX) announced its Q2/2013 results which appeared, on the face, to be weak.  However, a dig deeper illustrates that most of the downward earnings adjustments were related to one-time charges related to the closing of the acquisition of CGA Mining and the Masbate gold project in the Philippines.  Adjusted EPS came in below consensus of $0.03 per share at $0.01 per share, however; revenues were up on the back of strong gold sales.  The Company produced 82,100 ounces of gold in the quarter at an average cash cost of $732 per ounce (versus their budget of $745 per ounce) and sold 86,200 ounces for total revenues of $122.6 million.  B2Gold recently lowered its 2013 cost guidance to $630-$660 per ounce (versus previous guidance of $685-$730 per ounce) while maintaining its 360,000 to 380,000 ounce production target for the year.

Unlike many of its peers, the Company determined that write-downs associated with the carrying value of its long-lived assets was unnecessary at $1,350/oz gold.  The Company remained in a strong financial position with cash of $95 million and $100 million left on its credit facility.  The company maintained its target capital spending of $225 million, of which $153 million has been spent to date.  BTO expects a pre-feasibility study to be completed in Q4/2013 for the 49% owned (51% operator, AngloGold Ashanti) Gramalote project in Colombia which the companies expect to produce between 300,000-400,000 ounces per year starting in 2016.

News Release here: B2Gold Reports Continued Strong Mine Operating Performance and Second Quarter 2013 Net Earnings of $33.1 million