On Tuesday, B2Gold Corp . (TSX:BTO:CN) (NYSE: BTG) experienced a revision in its financial outlook as BMO Capital Markets analyst Brian Quast adjusted the company's price target to Cdn$7.00 from the previous Cdn$8.50. Despite this change, the firm maintained its Outperform rating on the gold mining company's stock. According to InvestingPro data, analyst targets currently range from $3.70 to $4.50, with the stock trading at moderate debt levels with a debt-to-equity ratio of just 0.08.
The adjustment came after B2Gold (NYSE:BTG)'s fourth-quarter production report showed the company produced 186,000 ounces of gold, aligning with BMO Capital's estimate of 185,600 ounces but falling short of the consensus estimate of 204,600 ounces. For the full year, B2Gold's production reached 804,800 ounces, hitting the lower spectrum of its revised annual guidance, which ranged from 800,000 to 870,000 ounces. While currently showing negative returns, InvestingPro analysis indicates the company is expected to return to profitability this year, with several additional insights available to subscribers.
B2Gold's production outlook for 2025 presented a mixed picture, with production estimates slightly below BMO Capital's forecast, while cost projections were significantly higher than anticipated. Despite these challenges, the company confirmed its commitment to the development timeline and capital expenditure estimate of C$1,540 million for its Goose project, which is expected to start producing gold in the near future.
In addition to the revised production and cost guidance, B2Gold announced a reduction in its dividend moving forward. Even with the reduction, InvestingPro data shows the company maintains a significant dividend yield of 6.43%. This strategic shift is reflected in the lowered price target set by BMO Capital, which continues to see the stock's potential, hence the decision to maintain the Outperform rating.
In other recent news, B2Gold Corporation reported mixed Q3 results, with operational challenges at the Fekola mine offset by strong performances at the Masbate and Otjikoto mines. Adjusted earnings stood at $0.02 per share, impacted by a $30 million tax accrual. Yet, the company remains in a strong financial position with $431 million in cash and equivalents. B2Gold expects significant output growth at Fekola in 2025, supported by improved grades and ore trucking. The Goose project, on schedule for first gold production in Q2 2025, is also anticipated to contribute substantially to future output.
A feasibility study for the Gramalote project, due in mid-2025, could potentially add 240,000 ounces of gold to production capacity. Despite the mixed results, B2Gold maintains a positive outlook, aiming to meet the lower end of its revised production guidance for the year.
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