- B2Gold is one of the worst-performing gold miners this year, sliding 38% year-to-date, and now down over 50% from its Q3 2020 highs.
- The poor performance is likely tied to softness in precious metals prices combined with a weaker earnings trend, impacted by higher costs at Fekola and a weaker gold price.
- However, at barely ~0.70x NPV (5%), B2Gold is now at its most attractive valuation since March 2020, especially given that Anaconda is not factored into this valuation.
- Short-term, B2Gold could see further weakness into a tough Q3 2021 report with difficult year-over-year comps, but I continue to see this pullback as providing a low-risk entry point.
For further details see:
B2Gold: Valuation Continues To Improve