B2Gold Corp.

B2Gold Corp. (NYSE: BTG) is a Canada-based gold producer. The Company has three operating mines, which include the Fekola Mine in Mali, the Masbate Mine in the Philippines and the Otjikoto Mine in Namibia.

Business and Financial Updates:

• Achieved total gold production of 262,701 ounces, including 16,740 ounces from Calibre Mining Corp.
• The Fekola Mine produced 152,427 ounces, benefiting from favorable mine phasing in the second quarter.
• Consolidated cash operating costs were USD 667 per gold ounce sold, lower than annual guidance.
• Total consolidated all-in sustaining costs were USD 1,214 per gold ounce sold, below the midpoint of annual guidance.
• Attributable net income was USD 0.06 per share, and adjusted attributable net income was USD 0.07 per share.
• Operating cash flow before working capital adjustments reached USD 199 million.
• Held a robust financial position with USD 506 million in cash and equivalents and USD 570 million in working capital.
• Declared a Q2 2023 dividend of USD 0.04 per share.
• Completed the acquisition of Sabina Gold and Silver Corp., with the Goose Project construction on track for Q1 2025 gold production.
• Announced an updated and increased Mineral Resource Estimate for the Anaconda Area, including a significant increase in oxide Mineral Resources and an initial sulphide Indicated Mineral Resource estimate.

Underlying Commodities Analysis

Silver remains around USD 22.7 per ounce, nearing one-month lows, as traders disregard signs of US labour market cooling and softer inflation data. Hawkish Fed remarks have revived concerns about prolonged higher interest rates, impacting non-interest-bearing precious metals. Nevertheless, robust industrial demand and limited supply offset losses. The push for solar panel technology, requiring higher conductivity, has boosted silver demand forecasts. Solar panel firms now constitute 14% of silver consumption, up from 5% in 2014, while supply growth lags, hinting at potential supply deficits.

Gold lingers below USD 1,920 per ounce due to a strong dollar, higher Treasury yields, and US producer inflation data suggesting prolonged elevated interest rates. Market focus shifts to US retail sales figures, Fed meeting minutes, Japan's Q2 GDP, and China's economic indicators.

Technical Observation (on the daily chart)

With a past year correction of almost 12.77%, the price has been in a persistent downward trend over the last year, with the medium-term negative trend evident by a correction of 10.46% in previous six months. The price is taking support from levels of USD 2.70-USD 3.20, with the current price consolidation in the price range of USD 3.00 to USD 3.30, with an expected breakout on the upside. Also, the momentum indicator RSI (14 period) displays a value of 31.65, taking support from levels around 30, indicating some buying momentum in the stock price. Price is below to the 21-day SMA and 50-day SMA trend-following indicators, which can serve as dynamic short-term resistances.

As per the above-mentioned price action, underlying commodities analysis, and technical indicators analysis, a ‘Buy’ rating has been given to B2Gold Corporation at the current price of USD 3.08 as of August 14, 2023, at 06:50 am PDT.

 Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 14, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

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