Best Gold Stock to Buy: B2Gold Posts Strong Profits Again
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Earnings season kicks off and one of the first gold stocks to report earnings is B2Gold (TSX:BTO)(NYSE:BTG), one of the cheapest and best gold stocks you can buy.
Gold stocks in general have seen their ups and downs lately as the precious metal faces a combination of headwinds and headwinds. And although the price of gold has occasionally risen, the market feared that rising costs would affect producers like B2Gold and ultimately negatively impact margins.
Let’s look at how B2Gold, one of the best gold stocks you can buy, performed in the first quarter of 2022.
Even with the impacts of inflation, B2Gold has shown why it’s one of the best gold stocks to buy now.
Despite the outbreak inflation and higher costs than the same quarter last year, B2Gold managed to produce more gold than expected at costs well below expectations, reminding investors why B2Gold is one of the best gold stocks to buy.
For the quarter, the company’s total gold production of 209,365 ounces was 5% above budget. And in addition to its consolidated production exceeding estimates, the company’s three mines exceeded their budgeted production for the first quarter of 2022.
While the company produced nearly 210,000 ounces this quarter, it only sold 195,100 at an average price of $1,874, earning it $366 million in total revenue.
And considering the low-cost producer reported total operating costs of $699, 12% below budget, it’s clear that B2Gold’s margins are among the best. Not only that, but its all-in sustaining cost (AISC) for the quarter was just $1,036 and is also among the lowest in the industry.
This led B2Gold to report adjusted earnings per share of $0.06, which beat the consensus estimate of $0.05. Additionally, B2Gold reported cash flow per share of $0.14, which was higher than the estimate of $0.12.
The low-cost nature of B2Gold not only makes it one of the best gold stocks you can buy, but it also shows why the company is such a great dividend-paying stock and currently offers a yield of 3.8%.
Having low costs is crucial because it allows B2Gold to remain more profitable than its peers when the price of gold drops. And when the price of gold goes up, its margins can increase significantly.
If you are looking for high quality gold stocks that you can buy in this environment, B2Gold seems to be one of the best.
How will B2Gold fare for the rest of the year?
In addition to announcing another quarter of impressive earnings, B2Gold also reiterated its guidance for the year. And while it managed to produce just over 200,000 ounces in the first quarter, the company expects to produce more gold in the second half.
Therefore, B2Gold estimates that it will produce approximately one million ounces of gold this year. In addition, it should continue to achieve low costs. For the remainder of 2022, B2Gold expects its total cash costs to be between $620 and $660. Additionally, its AISCs are budgeted between $1,010 and $1,050 per ounce.
Therefore, as long as the company can continue to execute well and achieve its goals, it should continue to generate impressive cash flow and return cash to investors.
So if you’re looking for the best gold stocks to buy that can protect your portfolio and provide long-term growth potential, B2Gold is one of the best to consider.