Globe says Canaccord's Paul maintains B2Gold at "buy"

2013-06-26 07:05 ET - In the News

The Globe and Mail reports in its Wednesday, June 26, edition that Canaccord Genuity analyst Rahul Paul is sticking with his $5 price target and "buy" rating on B2Gold. The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Paul remain bullish on the stock despite a tailings line pipe leak at the company's Masbate processing plant in the Philippines, which forced a 15-day production halt. The Canaccord stockpicker says, "Despite the disruption to production in the second quarter of this year, the shortfall is expected to be made up in the second half of this year due to a modification of mine sequencing that should facilitate the processing of additional material from the Colorado pit (better recovered grades) -- a net neutral impact on our forecasts." B2Gold remains one of Canaccord's top picks in the gold sector because of its strong balance sheet, fully financed production growth plans, and relatively low permitting, financing and new mine development risks. The median price target, according to Bloomberg, is $3.92. TD Securities analyst Greg Barnes said B2Gold was one of his top picks in The Globe on Sept. 21, 2012. He targeted the stock at $6. The shares were then worth $3.87.