B2Gold (BTG) Stock Jumps Amid Higher Gold Prices

NEW YORK (TheStreet) -- Shares of B2Gold Corp  (BTG) were jumping, higher by 3.66% to $1.70 on heavy volume in afternoon trading Thursday, as gold prices rally to trade in the green.

The precious metal is trading higher after the Federal Reserve indicated yesterday afternoon that U.S. interest rates may rise more slowly than expected following its policy meeting, according to Reuters.

Gold futures for August delivery was up 1.98% to $1,200.10 an ounce as of 12:59 p.m. ET today, while spot gold was nearly flat at $1,200.26 an ounce as of 1:09 p.m. ET.

About 3.01 million shares have changed hands as of 1:07 p.m. ET today, compared to its average trading volume of about 1.87 million shares a day.

Canada-based B2Gold is a gold producer with three operating mines including two in Nicaragua and one in the Philippines, as well as a portfolio of development and exploration assets in Namibia, Nicaragua, Mali, Burkina Faso and Colombia.

Separately, TheStreet Ratings team rates B2GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate B2GOLD CORP (BTG) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, B2GOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • BTG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 35.86%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • B2GOLD CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, B2GOLD CORP swung to a loss, reporting -$0.84 versus $0.07 in the prior year.
  • 40.37% is the gross profit margin for B2GOLD CORP which we consider to be strong. Regardless of BTG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.50% trails the industry average.
  • Net operating cash flow has significantly increased by 230.73% to $58.66 million when compared to the same quarter last year. In addition, B2GOLD CORP has also vastly surpassed the industry average cash flow growth rate of 13.64%.
  • You can view the full analysis from the report here: BTG Ratings Report

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