Globe says RBC's Wolfson keeps B2Gold at "outperform"

2021-01-22 09:09 ET - In the News

The Globe and Mail reports in its Friday, Jan. 22, edition that RBC Dominion Securities analyst Josh Wolfson continues to rate B2Gold "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Wolfson boosted his share target to $6.50 from $6.75 (all figures U.S.). Analysts on average target the shares at $7.90. B2Gold's year-end results fell in-line with Mr. Wolfson's expectations. Mr. Wolfson says in a note: "In recent years, B2Gold has generated attractive free cash flow, supported by the company's cornerstone Fekola mine in Mali. Going forward, Fekola economics are expected to soften, driven by mine sequencing and changes in ownership economics following the repayment of initial shareholder construction loans. Despite these changes at Fekola, B2Gold is still expected to generate favourable free cash flow from the Fekola mine, positioning the company to fund its ongoing high dividend and development of internal opportunities, including Otjikoto UG, Fekola regional upside, and Gramalote. ... In the short term, various upcoming milestones are expected in 1H (Fekola resource updates, Gramalote FS), also balanced by materially weaker 1H operating results."

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