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7/22/2019 B2Gold Corp Initation Raymend James
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Canada ResearchPublished by Raymond James Ltd.
Please read domestic and foreign disclosure/risk information beginning on page 28 and Analyst Certification on page 29.Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
B2Gold Corp. October 3, 2012
BTO-TSX Company Report - Initiation of CoverageChris ThompsonM.Sc. (Eng), P.Geo | 604.659.8439 | [email protected]
Brian Martin(Associate) | [email protected]
Mining | Precious Metals - Gold
B2Gold - A Go2 Growth-Focused Golden Opportunity
EventWe are re-initiating coverage on B2Gold Corp. (BTO-TSX) with an Outperform
rating and a C$5.50 target price.
RecommendationWe recommend buying B2Gold on the production growth potential offered by
a two-mine production base, complemented by the proposed merger with CGA
Mining Ltd; development potential offered by two gold development stage
projects; and a portfolio of attractive exploration projects.
Analysis Managements Track Record.A track record of past and current success in
development, operating, and exploration sets B2Gold apart from its gold-
producing peers as an aggressive growth-orientated emerging mid-tier gold
producer that continues to build on a track record of delivering on guidance.
Near-term (2012 2014) Growth Driven by M&A + Development. A near-term focus of B2Gold is concluding the merger with Philippine miner CGA
Mining, and turning discovery into near-term production and cash flow
growth through the delivery of higher grade ore to the La Libertad mill.
Medium-term (2015 2016) Development Potential. The acquisition ofthe Otjikoto Project (92%) in Namibia further attests to B2Golds prowess
in M&A, and provides for production growth potential beyond Nicaragua
and the Philippines. The development of the Gramalote Project (49%) in
Colombia offers longer-term (undetermined) production growth potential. Compelling Exploration Upside. In addition to B2Golds mine-site
exploration successes, joint venture (JV) partnerships continue to deliver
positive exploration news from a portfolio of projects in Nicaragua and
Uruguay, supported by $18 million in funding, to B2Golds account this year.
Strong and Flexible Balance Sheet. We estimate exit-2012 cash reserve(~$177 mln; on a consolidated B2 Gold/CGA basis) enhanced by a credit
facility isnt expected to deplete significantly, despite B2Golds aggressive
exploration and development funding.
ValuationOur C$5.50 target price is derived by applying a 10.0x target multiple to our
2013E CFPS estimates plus a C$0.49/share attributable value given for B2Golds
development and exploration assets. We also anticipate and factor a successful
merger with CGA Mining (to be concluded late this year), into our valuation.Please refer to our Valuation and Recommendation section for further details.
CFPS 1Q 2Q 3Q 4Q Full Revenue NAVPS
Mar Jun Sep Dec Year (mln)
2011A US$0.07 US$0.08 US$0.06 US$0.10 US$0.32 US$225
2012E 0.07A 0.07A 0.06 0.07 0.26 258 3.83
2013E 0.12 0.12 0.13 0.13 0.49 660
Source: Raymond James Ltd., Thomson One
Rating & Target
Outperform 2
Target Price (6-12 mos): Old: UR New: C$5.50
Current Price ( Sep-28-12 ) C$3.94Total Return to Target 39%
52-Week Range C$4.55 - C$2.64
Market Data
Market Capitalization (mln) C$1,577
Current Net Debt (mln) -C$77
Enterprise Value (mln) C$1,500
Shares Outstanding (mln, f.d.) 397.2
10 Day Avg Daily Volume (000s) 8,207
Dividend/Yield C$0.00/0.0%
Key Financial Metrics
2011A 2012E 2013E
P/CFPS
12.2x 14.7x 7.9x
P/NAV
1.0xAu Price (US$/oz)
US$1,571 US$1,660 US$1,760
Attributable Au Production (oz's)
144,604 153,380 402,799
Au Total Cash Cost (US$/oz)
US$528 US$596 US$588
EPS
US$0.16 US$0.13 US$0.38
Company Description
B2Gold is an emerging mid-tier gold producer with a
robust growth profile from existing operations,
development stage project pipeline and an attractiv
portfolio of exploration joint ventures.
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Canada Research | Page 2 of 35 B2Gold Corp
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Table of Contents
Investment Overview .......................................................................................................... 2
Company Snapshot ............................................................................................................. 6
Valuation & Recommendation ........................................................................................... 17
Corporate Structure ............................................................................................................ 19
Appendix A Management Team ...................................................................................... 21
Appendix B Financial Statements .................................................................................... 22
Appendix C Corporate Tearsheet ..................................................................................... 24
Appendix D Industry Comparables .................................................................................. 25
Appendix E Company History and Share Price ................................................................. 26
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B2Gold Corp. Canada Research | Page 3 of 35
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Investment Overview
Led by an experienced management and development/exploration team, we believe
B2Gold offers an aggressive production growth profile and leverage to the gold price,
supported by a Nicaraguan production base and a strong and flexible balance sheet. The
companys near-term production growth profile is complemented by assets derived
from two M&A events, the Masbate mine in the Philippines (recently announced merger
with CGA Mining Ltd. which we anticipate will be completed by year-end) and theOtjikoto development stage project in Namibia (acquisition of Auryx Gold completed
late last year). The companys comprehensive property portfolio also includes the
Gramalote project in Colombia (49% B2Gold 51% AngloGold Ashanti), a prospective
portfolio of exploration projects governed by JVs in Nicaragua, the Cebollati project in
Uruguay, and the Bellavista mine (currently on care and maintenance) in Costa Rica.
Key reasons to own B2Gold include: (1) A track record of delivering value from
production, development, exploration, and M&A; (2) near-term production growth; (3)
medium- / longer-term term development potential; (4) compelling exploration upside;
(5) strong and flexible balance sheet; (6) leverage to the gold price.
Managements Track Record
Past Success: B2Golds management includes the former executive andmanagement team of Bema Gold Corp, a company that grew from junior explorer
to an international gold producer before being acquired by Kinross Gold Corp. in
February 2007 for $3.5 billion.
Current Success Operations: Managements recent accomplishments areunderpinned by development and mine-site exploration success in Nicaragua, more
specifically the conversion of the La Libertad mine from a heap leach mine to a
conventional milling operation, reserve/resource expansion at La Libertad and El
Limn, and the high grade Jabali exploration discovery.
Production Growth Cost Control: The application of operating / development /and exploration expertise has enabled B2Gold to quickly capitalize on operational
and exploration successes and deliver consistent production growth from its
Nicaraguan production base while maintaining a steady-state cost profile, apeculiarity in todays high cost operating environment.
M&A: B2Golds development, operational and exploration successes arecomplemented by an active corporate merger and acquisition strategy, which has
provided the company with an attractive production base, and an aggressive near-
term production growth plan (Auryx Gold: Otjikoto; CGA Mining: Masbate).
Near-term (2012 2014) Production Growth (2012E: 153 Koz @ $596 / oz 2014E: 435
Koz @ $529 / oz)
A key near-term focus of B2Gold is the turning of discovery into near-termproduction and cash flow growth through the exploitation of ore from the Jabali
high grade deposits. The inclusion of Jabali ore in La Libertad mill feed, beginning by
year-end, drives lower cash operating costs and near-term production growth fromthe companys Nicaraguan production base. Also, the inclusion of CGAs Masbate
project in the Philippines adds significantly to B2Golds near-term production
growth profile (Raymond James Ltd.s production estimates for Masbate 2013E:
213 Koz; 2014E: 221 Koz), with additional potential offered through the inclusion of
higher grade ore in the Masbate mill feed.
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Canada Research | Page 4 of 35 B2Gold Corp
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Medium-term (2015 2016) Development Potential (Otjikoto, Masbate and
Gramalote)
The acquisition of the Otjikoto Project (92%) in Namibia, and the recent proposedmerger with CGA Mining attest to B2Golds prowess in M&A, and provides the
company with production growth potential beyond that delivered from Nicaragua
and the Philippines (Otjikoto feasibility study anticipated 4Q12). The further
development of the Masbate project (being considered by CGA prior to the
announcement of the B2Gold / CGA merger) offers additional undetermined (andun-modeled) production growth potential. Also, the development of the Gramalote
Project (49%) in Colombia offers longer-term additional undetermined production
growth potential (prefeasibility study anticipated 2H12).
Compelling Exploration Upside (Radius Gold JV: Trebol; Calibre Mining JV: Primavera;
Cebollati)
In addition to B2Golds mine-site exploration successes, the company and its jointventure partners continue to deliver positive exploration news from a prospective
portfolio of projects in Nicaragua and in Uruguay, supported by $18 million in
funding, to B2Golds account this year.
Strong and Flexible Balance Sheet
B2Golds development plans for the Masbate mine are currently unknown(guidance is anticipated by year-end once the B2Gold / CGA transaction closes).
Raymond James Ltd. assumes a steady-state operating scenario at Masbate.
Assuming no near-term expansion plans at Masbate, cash reserves at June 30, 2012
(~$77 million from B2Gold and ~$80 million from CGA) supported by an undrawn
$25 million B2Gold credit facility arent expected to deplete significantly in the
near-term, despite the companys aggressive near-term funding of exploration and
development in Nicaragua and Namibia.
Leverage to the Gold Price
B2Golds stock price correlates well with the Spot Gold price (3-Year CorrelationCoefficient: 0.97), which offers investors with a proxy for investing in gold.
Risks to our 12 month outlook on B2Gold
Development Risk.2013 and 2014 are critical years for B2Gold as it prepares todouble existing production by developing its Jabali (La Libertad) and Otjikoto
projects; two initiatives that investors currently pay for via crediting the company
with a premium valuation (on a P/CFPS and P/NAV basis), compared with its gold-
producer peer group. Also key is B2Golds ability to successfully execute on its
operational / development plan for Masbate (currently unknown). Key potential
catalysts are the commencement of ore haulage from Jabali and the tabling of a
positive feasibility for Otjikoto, both anticipated by year-end. Raymond James Ltd.
assumes a steady-state operating scenario at Masbate.
Political Risk.B2Golds asset base is located in Nicaragua, Namibia, and Colombia.
With the successful merger of B2Gold and CGA, this asset base will also includeCGAs Masbate operation in the Philippines.
Nicaragua is the largest country in the Central American isthmus, bordered by
Honduras to the north and Costa Rica to the south. Despite Nicaraguas rank as the
second poorest country in the Western Hemisphere, next to Haiti, the country
remains a stable democracy with Daniel Ortega as president reelected in November
2011 (63% of the democratic vote) for a 5-year team, his third term. B2Golds
presence in Nicaragua is significant, being the countrys biggest single overseas
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B2Gold Corp. Canada Research | Page 5 of 35
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
investor and taxpayer, the largest exporter and, with more than 2,000 local
workers, the third-biggest private employer.
Whilst mining ranks as the biggest contributor to Namibia's economy in terms of
revenue, and infrastructure is rated as one of the best in Africa, changes in tax and
royalty rates are being considered. An export levy on raw materials, increases in the
corporate income tax rate, and a windfall tax on profits are being considered. Also,
whilst the risk of nationalization of mining projects in Namibia is low, uncertainty
prompted by last years declaration of uranium, copper, gold, zinc and coal asstrategic minerals for exploitation by state-owned Epangelo Mining should be
noted.
A major mining reform was undertaken last year in the Philippines including a
moratorium on new projects. A new executive order detailing the government's
policy on mining was signed in July, and is waiting to be implemented. The
moratorium on new projects remains and is expected to be lifted when a new law
passes by the Philippines congress giving the government a larger share in resource
contracts. Whilst Masbates rank as the largest operating gold project in the
Philippines and a model for gold mining development in the country, risk of an
increase in royalties (currently 2%) and a level of revenue-sharing should be noted.
Security and geopolitical risks remain a concern in Colombia; however, withAngloGold Ashantis position of majority owner and project operator at Gramalote,
these risks are mitigated. Certain parts of the Philippines are associated with a high
security risk, namely central and western Mindanao. However, Masbates economic
importance to the island of Masbate offers a high degree of security.
Gold Price Risk. A drop in the gold price could cause deterioration in B2Goldsability to fund its development project pipeline, part of which Raymond James Ltd.
estimates will be financed via cash flow.
Cost Inflation Risk.Our outlook assumes certain future capital and operating costsfor development projects. Although we apply conservative estimates to these
assumptions there is a risk that we have understated these costs or that these costs
may increase in the future.
Operational and Labour Risk. There is a risk that the El Limon, La Libertad andMasbate operations suffer accidents or disruptions to production or development
which could impair the value of the assets. Risks of labour disruptions due to strike
action may also impact production and profitability.
We also note that Nicaragua and the Philippines are located in active earthquake
regions. A 6.3-magnitude earthquake that destroyed Nicaraguas capital in 1972
leveled all but five of the citys major buildings, claiming some 10,000 lives and
displacing half the citys population.
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Canada Research | Page 6 of 35 B2Gold Corp
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Company Snapshot
The companys focus is threefold: to expand production from its Nicaraguan gold mines,
namely the currently producing, and flagship operation, the La Libertad open-pit gold
mine, and the currently producing El Limn open-pit / underground gold mine; to
develop the Otjikoto project in Namibia to production and co-develop the Gramalote
project in Colombia (a 49%/51% B2Gold/AngloGold Ashanti joint venture); and advance
a portfolio of projects and joint ventures that include the Primavera JV (51%/49%B2Gold/Calibre Mining), the Cebollati project in Uruguay, and the Bellavista mine (care
and maintenance) in Costa Rica. The recently proposed merger with CGA Mining and the
acquisition of CGAs Masbate operation offers similar potential through development /
operation and exploration in the Philippines.
Management Track Record
B2Gold was founded in 2007 by the former executive and management team of Bema
Gold Corporation, a company acquired by Kinross Gold Corporation through a $3.5
billion transaction in February 2007.
More recently, B2Gold acquired Central Sun Mining Inc. (1Q09), owner of the La
Libertad and El Limn mines and the Bellavista property (all share transaction valued at
~$74.8 million) and successfully converted the La Libertad mine from a heap leach mine
to a conventional milling operation (commercial production achieved on February 1,
2010). A second ball mill was installed and commissioned in 2010 which increased the
design throughput to ~5,500 t/d.
B2Gold has delivered a history of production and resource growth from its operations
(specifically La Libertad) while maintaining a steady-state cost profile, complemented by
exploration success. This exploration promises to translate into near-term production
growth at the companys operations, notably La Libertad (Jabali discovery) and a steady
addition of resources, net of production.
B2Gold has also built a track record of consistently delivering annual consolidated
production and operating costs in-line with guidance, which has instilled market
confidence and rewarded the company with a high P/CFPS multiple (~15.0x 2012E
CFPS). This has translated into a healthy track record of delivering consistent cash flowsince 4Q10 on a quarter-by-quarter basis, apart from 3Q11 4Q11 when B2Gold held
over the sale of 3,907 ounces of gold to 4Q11 to capture higher gold prices. Also, cash
flow per share for 1Q12 2Q12 was affected by ~10% dilution of B2Golds share base
(37.2 million shares issued to buy Auryx Gold).
Of note, La Libertad (B2Golds flagship asset) has also demonstrated a history of
production and operating costs that have either matched or beaten guidance; an
impressive record in an environment of disappointment and cost inflation.
Exhibit 1: B2Gold Historical Production and Cash Cost Guidance vs. Realized Values
2010 2011 2012 2010 2011 2012
Cash Cost Guidance (US$/oz) Production Guidance (k oz)
La Libertad $545-$565 $440-$460 $550-$575 La Libertad 70 90 102-110El Limon $675-$685 $720-$740 $700-$725 El Limon 40 45 48-50
Consolidated $595-$605 $540-$560 $590-$625 Consolidated 110 135 150-160
Reported Cash Costs (US$/oz) YTD Reported Production (k oz) YTD
La Libertad $522 $460 $502 La Libertad 69 100 49
El Limon $710 $678 $773 El Limon 40 45 22
Consolidated $591 $528 $585 Consolidated 109 145 71
Source: B2Gold Corp., Raymond James Ltd.
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B2Gold Corp. Canada Research | Page 7 of 35
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Exhibit 2: Quarterly Production (2009-2Q12) Exhibit 3: Quarterly Cash Costs, Gold Price & CFPS (2009-2Q12)
0
5
10
15
20
25
30
35
40
45
2009-2Q12GoldPro
duction(koz)
El Limon Prod'n (k oz) La Libertad Prod'n (k oz)
(0.01)
0.01
(0.00)(0.00)
0.00
0.04
0.070.07
0.08
0.06
0.10
0.07 0.07
(0.02)
-
0.02
0.04
0.06
0.08
0.10
0.12
0
200
400
600
800
1000
1200
1400
1600
1800
CFPS(exclWC)$US/share
CashOp.CostRealized
GoldPrice($US/oz)
CFPS (excl WC)// sha re Go ld Pric e US$ /oz Cons. Op . Cash Costs (US$ /oz)
Source: B2Gold Corp., Raymond James Ltd.
Exhibit 4: Resource Growth at El Limon and La Libertad (Koz Au)
0
100
200
300
400
500
600
700
0
500
1,000
1,500
2,000
2,500
2008 2009 2010 2011
ElL
imonan
dLiberta
dReserves
(koz
)
ElLimonan
dLiberta
d2P+Resources
(koz
)
El Limon 2P+M&I +Inf (k oz) La Libertad 2P+M&I+Inf (k oz)
La Libertad 2P (k oz) El Limon 2P (k oz)
Source: B2Gold Corp., Raymond James Ltd.
La Libertad and El Limn The Cash Flow Generators
The discovery of the high grade Jabali zones, a short truck haul from La Libertad mill, is
an example of B2Golds ability to turn near mine-site exploration potential to near-term
production growth. Raymond James Ltd. models the commencement of ore haulagefrom Jabali to the La Libertad mill in late 2012E. Raymond James Ltd. anticipates that
Jabali ore will comprise 25% of La Libertads mill feed throughout 2013E and 35%
throughout 2014E, effectively replacing spent ore, previously processed from heap leach
operations. The inclusion of Jabali ore as La Libertad mill feed promises to increase mill
feed grade (Raymond James Ltd. forecasts - Av 2012E: 1.8 g/t, Av 2013E: 2.3 g/t, Av
2014E: 2.8 g/t) which will drive an increase in La Libertads production (Raymond James
Ltd. forecasts 2012E: 105 Koz; 2013E: 139 Koz; 2014E: 167 Koz) and lower cash
operating costs (Raymond James Ltd. forecasts 2012E: ~$544/oz; 2013E: ~$383/oz;
2014E: ~$327/oz) from the same tonnage of ore.
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Canada Research | Page 8 of 35 B2Gold Corp
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Exhibit 5: La Libertad and El Limon Operating and Financial Forecasts
La Libertad Unit 2012E 2013E 2014E El Limon Unit 2012E 2013E 2014E
Operating Summary Operating Summary
Tonnes milled k tonnes 2,023 2,008 2,008 Tonnes milled k tonnes 399 409 406
Gold Production k oz 105 139 167 Gold Production k oz 49 51 47
Grade g/tonne 1.8 2.3 2.8 Grade g/tonne 4.2 4.2 3.9
Recovery % 92% 92% 92% Recovery % 91% 92% 92%
Operating costs US$/tonne 28.5 26.5 27.2 Operating costs US$/tonne 87.3 80.4 82.5
Cash operating costs US$/oz 544 383 327 Cash operating costs US$/oz 709 645 712Total cash costs US$/oz 604 471 412 Total cash costs US$/oz 808 751 814
CAPEX (including Jabali) US$ 000 48,700 37,000 13,000 CAPEX US$ 000 21,300 15,000 15,000
Exploration US$ 000 8,350 4,000 4,000 Exploration US$ 000 4,600 4,000 4,000
Gold Price US$/oz 1,660 1,760 1,700 Gold Price US$/oz 1,660 1,760 1,700
Financial Summary Financial Summary
Net Revenue US$ mln 167 232 270 Net Revenue US$ mln 76 84 75
Operating Costs (Total) US$ mln 57.6 53.1 54.5 Operating Costs (Total) US$ mln 34.4 32.9 33.5
Operating Profit US$ mln 110 179 215 Operating Profit US$ mln 41 51 42
Source: Raymond James Ltd.
In addition, the Otjikoto Project (92%) development potential in Namibia and the
Gramalote Project in Colombia (a 49% 51% B2Gold AngloGold Ashanti JV), offersshareholders additional medium-term production growth potential.
Masbate (via the Proposed Merger with CGA Mining)
The successful completion of the proposed merger of B2Gold and CGA Mining and the
acquisition of CGAs 100% interest in the Masbate Project in the Philippines for net
~C$1,030 million (shares worth ~C$1,010 million, based on B2Gold share price of
$3.97/share, less $32 million CGA working capital plus $51 million in LT liabilities) is
anticipated by year-end and supports B2Golds prowess in the M&A space.
The Masbate Project was originally operated for 14 years (1980 1994) as an open pit
and underground mine exploiting oxide, transition, and fresh material with subsequent
processing using CIL and heap leach processing. The operation reportedly closed due to
low commodity prices. The construction of a 4 Mtpa plant was completed on schedulein February 2009 for a total capital expenditure of $178 million, followed by the first
gold pour on May 12, 2009. The addition of a second ball mill enabled the grinding
circuit to operate above design capacity achieving ~5 Mtpa throughput by year-end.
To the end of 2Q12 the Masbate plant has processed 15.3 Mt of material at an average
grade of 1.16 g/t Au (432 Koz). Process recovery averaged 84.9% for the period July
2009 to March 2012.
The project has a record of achieving consistent growth and quarterly improvements in
gold production, throughput, and plant availability, apart from 2H11 when the SAG mill
suffered a sudden and unexpected failure. The milling of oxide, fine ore through the ball
milling circuit, bypassing the SAG mill, commenced within 11 days of the failure and
normal milling resumed in late December 2011. Efficiencies were also enhanced by the
commissioning of a supplementary crushing circuit. The successful re-commissioning of
the repaired SAG mill prompted CGA management to issue production guidance of
100,000 ounces during 1H12, which was met (100,013 oz). Masbate achieved record
quarterly production of 50,813 ounces for 2Q12 (1,728,751 tonnes grading 1.08 g/t Au
with 84% recovery) and operated above expectations with mill availabilities for 1H12
averaging 94.8%. Since re-commissioning, the SAG mill has consistently operated at or
above 6.6 Mtpa with the highest throughput recorded in May, reaching an annualized
throughput rate of 7.6 Mtpa.
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B2Gold Corp. Canada Research | Page 9 of 35
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Raymond James Ltd. forecasts ~195 Koz production at a cash operating cost of ~$770/oz
in 2012E increasing to ~210 Koz at a cash operating cost of ~$710/oz in 2013E and ~220
Koz at a cash operating cost of ~$640/oz in 2014E.
Raymond James Ltd. models ramped mill throughput to 17,500 tpd by 4Q12E and20,500 tpd by 4Q13E at a head grade of 1.1 g/t Au (2013E 2014E) and recoveries of
84%. We note that this assumes a grade in excess of Masbates stated reserve grade of
0.83 g/t Au. Sustaining capital is estimated at ~$15 million per annum over an estimated
12 year mine life (based on an estimated reserve base of 115 Mt grading 0.8 g/t Aucontaining 3,168,000 ounces of gold, announced in October 2011).
The inclusion of Masbate in B2Golds production profile, together with the companys
Nicaraguan operations, offers potential to boost annual production to ~400 Koz in
2013E and over 430 Koz in 2014E. Near-term operating cash flow is estimated to grow
from $0.26/share in 2012E to $0.49/share in 2013E and $0.60/share in 2014E
(benefiting from the settlement of a gold hedge in 2013E).
CGA carries a gold hedge detailed in Exhibit 6. As at December 31, 2012 the hedge
totaled 50,225 ounces at an average price of $912.76/oz deliverable in 2013.
Exhibit 6: CGA Hedge Position
Expiry Date Settlement Date Total oz Avg. Price
26-Apr-2012 - 31-Dec-2012 30-Apr-2012 - 31-Dec-2012 43,689 $880.12
29-Jan-13 - 27-Dec-2013 31-Jan-2013 - 31-Dec-2013 50,225 $912.67
Source: CGA Mining, Raymond James Ltd.
Raymond James Ltd.estimates a NAV5% of $947 million ($1.41/share), a 12% discountto CGAs purchase price, after adjustments for working capital and LT debt.
Exhibit 7: Masbate Operating and Financial ForecastsMasbate Unit 2012E 2013E 2014E
Operating Summary
Tonnes milled k tonnes 6,489 7,212 7,483
Gold Production k oz's 194 213 221
Grade g/tonne 1.1 1.1 1.1
Recovery % 84% 84% 84%Operating Costs US$/tonne 22.9 20.9 19.0
Cash operating costs US$/oz 770 707 643
Total cash costs US$/oz 800 738 677
CAPEX U$ 000 16,148 15,000 15,000
Gold Price US$/oz 1,660 1,760 1,700
Financial Summary
Net Revenue US$ mln 263 333 376
Operating Costs (Total) US$ mln 142 151 142
Operating Profit US$ mln 116 175 226
Source: Raymond James Ltd.
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Canada Research | Page 10 of 35 B2Gold Corp
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Exhibit 8: Production Growth (2011-2014E) Exhibit 9: Cash Costs, Gold Price and CFO/share (2011-2014E)
0
50
100
150
200
250
300
350
400
450
500
2011 2012E 2013E 2014E
2011-2
014EGo
ldPro
duc
tion
(koz
)
Masbate Prod'n (k oz) El L imon Prod'n (k oz) La Libertad Prod'n (k oz)
0.32
0.26*
0.49
0.60
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2011 2012E 2013E 2014E
CFPS(exc
lWC)US$/share
Cash
Op.
Cost
&RJL
Go
ldPrice
($US/oz
)
CFPS (excl WC) // sha re Go ld Price US$ /o z C on s. Op . Ca sh Co sts (US$/oz)
*CFPSdecrease due to share
issuance from Auryx acquisition
Near term production growth e stimated to grow
from 145 k oz in 2011 to 435 k oz in 2014E
Source: B2Gold Corp., Raymond James Ltd.
Otjikoto (92% ownership)
The successful acquisition of a 92% interest in the Otjikoto Project in Namibia for net
~C$97 million (shares and minor cash worth ~C$115 million less $17.8 million Auryx cash
balance) by completing a business combination with Auryx Gold in late 2011, further
supports B2Golds prowess in the M&A space. Raymond James Ltd. forecasts fully
financed production from Otjikoto commencing in 2015E (10.5 year mine life) at 110 Koz
at a LOM cash operating cost of ~$680/oz. Raymond James Ltd. models a mineralresource of 24.93 million tonnes at a grade of 1.74 g/t Au containing 1,392,690 ounces
of gold, consistent with an estimate of an optimized indicated resource for Otjikoto
using a cut-off grade of 0.4 g/t Au (announced in April 2012).
Raymond James Ltd.estimates a NAV5% (recognizing B2Golds 92% ownership) of $133million ($0.20/share), a premium to Auryx Golds purchase price, less cash acquired
during the transaction. Confirmation of Otjikotos economics will be verified in afeasibility anticipated in 4Q12. The addition of Otjikoto to B2Golds production profile
offers the potential to boosts the companys total production to plus-525 Koz at a cash
operating cost of
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Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Exhibit 11: Production Growth, Cash Costs, Gold Price (2011-2016E)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0
100
200
300
400
500
600
2011 2012E 2013E 2014E 2015E 2016E
GoldPriceandOp
.Cost(US$/oz)
2011-2014EGoldP
roduction(koz)
Masbate Prod'n (k oz) Otjikoto Prod'n (k oz) El Limon Prod'n (k oz)
La Libertad Prod'n (k oz) RJL Gold Price ($/oz) Op. Cash Costs ($/oz)
Source: B2Gold Corp., Raymond James Ltd.
Gramalote (49% ownership)
The development potential offered by the Gramalote project in Colombia (49% B2Gold
51% AngloGold Ashanti) offers longer-term growth potential.
Highlights from 2011 and 2012 work programs on the Gramalote property include
positive metallurgical test results showing in excess of 90% recovery and encouraging
drill results from Gramalote Central and outside targets indicating the potential for a
larger resource. In April 2012 the joint venture tabled a new resource estimate that
significantly increased the size of the Gramalote deposit (currently hosting a global
resource of 193 million tonnes grading 0.63 g/t Au, using a 0.25 g/t cut-off; see Exhibit
12). The joint venture is currently conducting exploration, feasibility and development
work budgeted at $18 million for 2012 and funded on a pro rata basis. A prefeasibility
study is scheduled to be completed in 2H12 and a final feasibility study is planned for4Q13 with commencement of production slated for 2016.
The development of the Gramalote Project is viewed by JV partner AngloGold Ashanti as
a precursor and demonstrator of AngloGold Ashantis operating and sustainability
credentials, to developing the massive La Colosa Project (24 million ounces). Production
from La Colosa is anticipated in 2019.
Exhibit 12: Gramalote Resources and Valuation
Gramalote (100% Resource shown, B2Gold is 49%) Gramalote Valuation (49%) Unit
Location Category Tonnes ('000) Au (g/t) Au (k oz) Cut-Off (g/t) Attrib. Au oz's (49%)
Gramalote Central Measured 30,501 0.85 834 0.25 Measured k oz 408
Gramalote Central Indicated 66,607 0.79 1,692 0.25 Indicated k oz 829
Gramalote Central Inferred 52,159 0.35 587 0.25 Inferred k oz 665
Trinidad Inferred 43,529 0.55 770 0.25 Total k oz 1,902
Total Resources Measured 30,501 0.85 834 0.25 Applied value per oz C$/oz $70
Indicated 66,607 0.79 1,692 0.25
Inferred 95,688 0.44 1,357 0.25 Total Value (C$ 000) 133,151
M&I 97,108 0.81 2,525 0.25
Total Resources M&I & Inf 192,796 0.63 3,882 0.25 $ per share C$/share $0.20
Source: B2Gold Corp., Raymond James Ltd.
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Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Exhibit 13: Location- Gramalote Project
Source: B2Gold Corp.
Bellavista (100% ownership)
The Bellavista Mine in Costa Rica was previously operated by Glencairn GoldCorporation as a heap leach operation and hosts ~7.9 million tonnes grading 1.44 g/t Au
(~365 K in-situ oz) and ~8.7 million tonnes grading 1.5 g/t Au (~421 K in-situ oz), as of
1Q07. Mining operations were suspended by Glencairn in July 2007 due to indications of
potential ground movement, which in part was caused by water saturation due to
abnormally high rainfall during the preceding several years. Following the suspension of
mining operations, Glencairn undertook a program of rinsing the heap leach with fresh
water to remove cyanide from the heap, and a monitoring program to evaluate ground
movement concerns. In October 2007, a landslide at the Bellavista Mine occurred
resulting in damage to the east side of the heap leach pad and the recovery plant. The
preventative measures taken by Glencairn averted a potential environmental disaster.
The B2Golds reclamation activities continue with the planting of trees on portions of
the waste dump area and with work programs focused on controlling runoff from rainstorms and keeping water levels from building up in the slide area. B2Gold is
investigating various alternatives relating to the Bellavista property, including the
potential for re-opening the mine on the Bellavista property using different
technologies, including a milling and carbon-in-leach process.
The development potential offered by the Bellavista Project is unknown and as such
Raymond James Ltd. recognizes no value for Bellavista in our B2Gold valuation.
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B2Gold Corp. Canada Research | Page 13 of 35
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Calibre Mining JV Primavera Project
The Primavera gold-copper project forms part of the Borosi concession option
agreement with Calibre Mining Corp, whereby B2Gold will earn a 51% interest in specific
concessions within the Borosi area by year-end. B2Gold may elect to carry an individual
prospect within the concession area through to a Preliminary Feasibility Study for an
additional 14% interest in the prospect.
B2Gold has a 2012 exploration budget of $4.0 million (at B2Golds interest) to fund
drilling. B2Gold and Calibre recently announced drill results that discovered significant
porphyry style gold and copper mineralization at the Primavera project within the Borosi
concessions in north east Nicaragua. Selected phase 1 drill results include:
Hole PR-11-001: 276.8 m of 0.50 g/t Au and 0.21% Cu from surface, including 103 mof 0.78 g/t Au and 0.32% Cu,
Hole PR-11-002: 261.7 m of 0.78 g/t Au and 0.3% Cu from surface, including 134.5m of 1.01 g/t Au and 0.36% Cu,
Hole PR-11-003: 323.2 m of 0.41 g/t Au and 0.18% Cu from surface, including 146.5m of 0.65 g/t Au and 0.27% Cu,
Hole PR-11-011: 159.5 m of 0.46 g/t Au and 0.2% Cu from surface, including 88.7 m
of 0.53 g/t Au and 0.22% Cu.
Exploration drilling going forward will continue with two drill rigs (a 12,000 m phase II
program which commenced in June 2012) with the focus on infill drilling of the main
Primavera zone as well as the testing of additional porphyry and vein targets. Drilling
will also test for the displaced mineralization to the west of the main Primavera zone.
Results are pending.
Exhibit 14: B2Gold-Calibre JV Work Plans / Budget (2010 2012)
Year Work Program Budget / Actual (US$ mlns)
2012 12,000 m of drill program 4.002011 Drilling, trenching, sampling, geochem 1.342010 5,000 m drill program 2.84
Source: B2Gold Corp., Raymond James Ltd.
Radius Gold JV Trebol and Pavon Projects
Earlier this year, B2Gold acquired a 100% interest in the Trebol and El Pavon gold
properties in Nicaragua from Radius Gold Inc. for $20 million payable in shares (4.8
million shares) to acquire a 100% interest in the Trebol and El Pavon gold properties in
Nicaragua. In addition, B2Gold has agreed to make contingent payments to Radius of
$10 per ounce of gold on 40% of any proven and probable mineral reserves in excess of
500,000 ounces (on a 100% basis). B2Gold had earned a 60% interest in the Trebol and
Pavon properties by spending $4 million on exploration. In addition, B2Gold has a 60%
40% joint venture with Radius that governs the San Jose and La Magnolia properties,
with each party contributing 60% and 40%, respectively, of the exploration expendituresof each joint venture.
The Trebol property, located in northeastern Nicaragua, is a low sulphidation epithermal
hot springs district consisting of numerous strong gold anomalies spanning over 14 km
of strike length. The Pavon resource property, located in central Nicaragua, is a low
sulphidation system discovered by Radius in 2003. Several veins occurring over a strike
length of 6 km have been explored with trenches and diamond drill holes.
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Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
The 2012 exploration program (5,000 m of drilling budgeted at $2.4 million for B2Gold)
is focused on 5,000 m of drilling on the Trebol, San Jose and Pavon targets located along
the 6 km northeast trending belt of continuously mineralized volcanic rock.
Exhibit 15: Radius Gold JV Work Plans (2010 2012)
Year Work Program Budget / Actual (US$ mlns)
2012 5,000 m dri ll program 2.402011 4,000 m dri ll program 2.872010 3,000 m drill program (Trebol), trenching (Pavon) 1.63
Source: B2Gold Corp., Raymond James Ltd.
Cebollati Project
The Cebollati Property is located 180 km northeast of Montevideo in southern Uruguay.
The Cebollati Property has excellent paved road access approximately 8 km from a
highway in rolling farm country. B2Gold is earning an 80% interest in the Cebollati
Property for $1 million in cash (paid) and by funding all exploration through to
feasibility. Additional obligations include the completion of a feasibility study, a per
ounce gold payment, and a net smelter royalty for additional production.
Concentrated drilling in two zones, the Southern and Windmill zones, has confirmed the
existence of continuous, shallow, mineralized zones which are open along strike and to
depth. In conjunction with the trenching, each of these zones extends for in excess of
400 m within a mineralized system, which has been defined over greater than 2.2 km in
strike length. Mechanical stripping has been done to increase the understanding of the
mineralization controls in the Southern Zone. Selected drill results from 2011 drilling
includes:
Hole UC11-019: 11.15 m of 11.59 g/t Au within a broader 23.85 m interval ofmineralization grading 5.69 g/t Au,
Hole UC11-032: 7.55 m of 4.51 g/t Au including 12.81 g/t Au over 2.3 m,
Hole UC11-037: 4 m of 4.04 g/t Au and 8 g/t Au over 2.84 m.
The 2012 exploration program for the Cebollati Property has a budget of $3.4 million,
which includes 4,000 m of drilling and the stripping of two 50 by 20 m areas to
understand the geology.
Exhibit 16: Cebollati Work Plans (2010 2012)
Year Work Program Budget / Actual (US$ mlns)
2012 4,000 m drill program, stripping 3.402011 8,500 m dri ll program 4.192010 mapping, sampling, trenching 1.01
Source: B2Gold Corp., Raymond James Ltd.
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B2Gold Corp. Canada Research | Page 15 of 35
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Strong and Flexible Balance Sheet
B2Gold had ~$77 million in cash and equivalents at June 30, 2012 and a $25 million
credit facility (currently undrawn). B2Golds treasury will benefit from CGAs cash
reserves of $80 million which will contribute to our 2012E year-end cash balance
estimate of $177 million once the B2Gold / CGA transaction closes. Raymond James Ltd.
forecasts a steady increase in year-end cash reserves (2012E: ~$177 million; 2013E:
~$340 million; 2014E: ~$589 million) despite B2Golds aggressive funding of exploration
and development (see Exhibit 17), and no additional capital expenditures (beyond ourmodeled $15 million sustaining capital estimate) are incurred.
Exhibit 17: B2Gold Cash Balance (2009-2016E)
US$ mlns 2011A 2012E 2013E 2014E 2015E 2016E
Cash Balance (EOP) 102.3 176.7* 339.2 588.6 887.9 1,211.3
Cash Flow from Operations 102.3 100.5 329.0 397.4 364.4 360.0
Cash Flow from Investing (77.7) (145.3) (141.0) (144.6) (72.3) (72.3)
Cash Flow from Financing 7.6 9.4 (25.4) (3.5) 7.1 35.7
Free Cash Flow 32.7 (35.1) 188.0 255.9 301.3 286.5
Free Cash Flow/diluted share 0.09 (0.08) 0.28 0.38 0.45 0.43
*2012 Year End Cash Balance Estimated on a B2Gold/ CGA Mining Consolidate Basis Source: B2Gold Corp. Raymond James Ltd.
Leverage (Sensitivity) to the Gold Price
As Exhibit 18 demonstrates below, B2Golds stock price correlates very well with the
Spot Gold price (3-Year Correlation Coefficient: 0.97), which offers investors with a
proxy for investing in gold.
Exhibit 18: BTO Share Price vs. Gold Price (Correlation)
3 Yr 2 Yr 1 Yr 6 Mo 3 Mo 1 Mo 1 wk
Correllation 0.97 0.90 0.69 0.81 0.91 0.79 0.72
0
200
400
600
800
1000
1200
1400
1600
1800
2000
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
Jan-09
Apr-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
GoldPrice
(US$/oz
)
S
hare
Price
(C$)
Gold Price (US$/oz) BTO Share Pr ice
Source: Capital IQ. Raymond James Ltd.
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Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Gold Price and Operating Cost Sensitivity
Our valuation of B2Gold, which is underpinned by the companys near-term ability
(2013E) to deliver cash flow, is sensitive to the price of gold and operating costs.
Raymond James Ltd.s gold price forecasts are $1,760/oz for 2013E decreasing to a long-
term price of $1,200 in 2018E (see Exhibit 19).
Exhibit 19: Raymond James Ltd.s Gold Price Deck
Year 2012 2013 2014 2015 2016 2017 LTGold Price (US$/oz) $1,660 $1,760 $1,700 $1,500 $1,400 $1,300 $1,200 Source: Raymond James Ltd.
A 10% increase in the gold price from our base case (2013E: $1,760) delivers a $3.03
billion NAV estimate (15% increase from our $2.57 billion NAV base case estimate), all
other assumptions being held constant. A 10% increase in operating costs from our base
case delivers a $2.35 billion NAV estimate (9% decrease from our $2.57 billion NAV base
case estimate), all other assumptions being held constant.
Exhibit 20: NAV Sensitivity Analysis
$2,567 -30% -20% -10% 0% 10% 20% 30%30% $459 $942 $1,449 $1,920 $2,387 $2,854 $3,320
20% $676 $1,158 $1,665 $2,136 $2,602 $3,069 $3,536
10% $906 $1,413 $1,882 $2,351 $2,818 $3,285 $3,751
0% $1,122 $1,630 $2,100 $2,567 $3,034 $3,500 $3,967
-10% $1,378 $1,846 $2,316 $2,782 $3,249 $3,716 $4,182
-20% $1,594 $2,065 $2,531 $2,998 $3,465 $3,931 $4,398
-30% $1,811 $2,280 $2,747 $3,213 $3,680 $4,147 $4,614
Gold Price (US$/oz)
OperatingCosts
Source: Raymond James Ltd.
Based on our base case estimate for 2013 CFPS C$($0.50/share), the key driver of
Raymond James Ltd.s $5.50/share target price, a 10% increase in the gold price from
our base case (2013E: $1,760) delivers a C$0.58/share estimate of 2013E CFPS (a 16%
increase over our base case). A 10% increase in operating costs delivers a $0.47/share
estimate of 2013E OCF (a 7% decrease in our base case).
Exhibit 21: Operating Cash Flow/ per share Sensitivity Analysis (C$)
0.50 -30% -20% -10% 0% 10% 20% 30%
30% 0.18 0.25 0.33 0.40 0.48 0.56 0.63
20% 0.21 0.29 0.36 0.43 0.51 0.59 0.66
10% 0.24 0.31 0.39 0.47 0.54 0.62 0.70
0% 0.28 0.35 0.42 0.50 0.58 0.65 0.73
-10% 0.30 0.38 0.46 0.53 0.61 0.68 0.76
-20% 0.34 0.41 0.49 0.56 0.64 0.72 0.79
-30% 0.37 0.44 0.52 0.60 0.67 0.75 0.83
Gold Price (US$/oz)
OperatingCosts
Source: Raymond James Ltd.
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B2Gold Corp. Canada Research | Page 17 of 35
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Valuation & Recommendation
We are re-initiating coverage on B2Gold Corp., with an Outperform rating and a C$5.50
target price. We assume that the proposed merger between B2Gold and CGA Mining
will receive shareholder approval (anticipated by year-end). We value the combined
entity using a 10.0x multiple to our 2013E CFPS estimate and apply additional
attributable value to B2Golds development and exploration assets.
In our view a 10x P/2013E CFPS multiple adequately captures the value of B2GoldsNicaraguan production base and production growth opportunity presented by acquiring
the Masbate mine in the Philippines. We recognize the aggressive production growth
opportunity offered by the companys flagship La Libertad mine and managements
stellar track record in delivering value by (1) growing production, (2) maintaining a hold
in operating costs, and (3) delivering on annual production and cost guidance. We await
management cost and production guidance for Masbate, and estimate Masbates cash
flow contribution assuming steady-state 2Q12 production and cost assumptions.
A 10.0x P/2013E CFPS multiple compares to our covered producer peer group P/2013E
CFPS average of 9.9x (ranging from 3.9x to 16.3x) and a target price CFPS average of
11.6x (ranging from 3.8x to 19.9x) (See Appendix D for Comps).
We value Otjikoto (C$133 million or C$0.20/share) using a discounted cash flow (DCF)
analysis, discounted at a rate of 5%, which we believe is reasonable, relative to the price
that was paid for an 92% interest in the project ($97 million = purchase price of ~$115
million less cash acquired with Auryx Gold of ~$18 million). Confirmation of Otjikotos
economics (feasibility anticipated in 4Q12) will prompt re-visiting our NAV valuation.
Our valuation equates to ~$104 / attributable in-situ resource ounce for Otjikoto.
We apply a resource credit of C$70 / attributable in-situ resource ounce (our long-term
gold price of $1,200 x ~6% x 1.9 million ounces) to justify a C$133 million or
C$0.20/share valuation for B2Golds 49% interest in the Gramalote project and await a
prefeasibility statement (2H12) to affirm the economic potential offered by the
Gramalote project. Lastly, we apply an exploration credit of C$65 million (based on 3x
this years $18 million non-core exploration expenditures) or C$0.10/share to
recognize value offered by B2Golds property portfolio outside of its mines and
development stage projects. A 2012 exploration budget of $18 million and an ongoing
estimate of $20 million a year amply justify this credit, in our view.
Exhibit 22: B2Gold Valuation Summary Exhibit 23: B2Gold P/CFPS and TP/CFPS vs. Peer Group
Cash Flow 2011A 2012E 2013E
CFPS (C$) $0.32 $0.27 $0.50
Target Multiple 10.0x
Value Per Share $5.01
Development and Exploration Credits (C$)
Asset Value (C$mlns) Per Share
Otjikoto (DCF 5%) $133 $0.20
Gramalote ($/oz) $133 $0.20Other Exploration Assets $65 $0.10
Total Exploration $331 $0.49
Target Price $5.50
Return to Target 40%
Implied Market P/CFPS 7.9x
Implied Target P/CFPS 11.0x
Adjusted Fully Diluted Shares (mlns) 672.4
0
0.5
1
1.5
2
2.5
0.0x
5.0x
10.0x
15.0x
20.0x
GSC
EDV
BTO
ASR
OSK
YRI
AGI
AEM
ELD
Prod'n
Growth2012-2015E(%)
P/CFPS(x)
2013E P/CFPS Target P/CFPS % Prod'n Growth (2012-2015E)
*Note - Production Growth % are RJL Estimates, for EDV and BTO, we assume pending
transactions will close, resulting in increased produciton.
Source: Raymond James Ltd.
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Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Based on a NAV metric, Raymond James Ltd. estimates a NAV for B2Golds Nicaraguan
operations (La Libertad and El Limon) of $883 million or $1.32/share, a NAV for CGAs
Masbate Project of $947 million or $1.41/share which when added to our valuation for
B2Golds share in Otjikoto ($133 million or $0.20/share), Gramalote ($133 million or
$0.20/share) and an exploration credit ($65 million or $0.10/share) implies a total
project NAV of $2,161 million or $3.21/share. In addition, we include a corporate
adjustment (including adjustments for CGA Minings working capital and long-term
debt) of $408 million or $0.62/share which justifies a total NAV of $2.57 billion or
$3.82/share. The market implied P/NAV multiple is 1.0x which compares with our
covered producer peer P/NAV average of 1.2x (ranging from 0.7x to 1.6x). Our target
price of C$5.50 implies a target P/NAV multiple of 1.44x which compares to our covered
producer peer average of 1.3x (ranging from 1.1x to 1.6x).
Exhibit 24: B2Gold NAV Summary Exhibit 25: B2Gold P/NAV and TP/NAV vs. Peer Group
NAV Summary C$ 000 C$/fd % NAV
Project
Masbate (DCF 5%) $947,149 $1.41 37%
Libertad (DCF 5%) $796,917 $1.19 31%
Limon (DCF 5%) $86,162 $0.13 3%
Otjikoto (DCF 5%) $133,145 $0.20 5%
Gramalote ($/oz) $133,151 $0.20 5%Other Assets $65,000 $0.10 3%
Project Total $2,161,523 $3.21 84%
Corporate NAVWorking Capital $376,220 $0.56 15%
Additional Capital $56,388 $0.08 2%
LT Liabilities ($16,266) ($0.02) -1%Total Corporate $416,342 $0.62 16%
Net Asset Value $2,577,865 $3.83 100%
Implied Market P/NAV 1.04x
Implied Target P/NAV 1.43x
Adjusted Fully Diluted Shares (mlns) 672.4
0%
50%
100%
150%
200%
250%
0.0x
0.2x
0.4x
0.6x
0.8x
1.0x
1.2x
1.4x
1.6x
1.8x
EDV
AGI
BTO
ASR
GSC
ELD
OSK
YRI
AEM
Prod'nGrowth2012-2015E
(%)
P/NAV
(x)
Current P/NAV Target P/NAV % Prod'n Growth (2012-2015E)
*Note - Production Growth % are RJL Estimates, for EDV and BTO, we assume
pendi ng transactions will close, resulting in increased produciton. Source: Capital IQ. Raymond James Ltd.
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B2Gold Corp. Canada Research | Page 19 of 35
Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Corporate Structure
B2Golds shares trade on the Toronto Stock Exchange under the symbol BTO. There are
approximately 397.2 million shares outstanding, and 417.8 million fully diluted shares.
We calculate a pro-forma capital structure (assuming a successful merger of B2Gold and
CGA Mining) of 651 million shares outstanding and 672 million fully diluted shares.
Exhibit 26: Capital Structure Breakdown (Pro-forma)
Issued and Outstanding (Pro Forma-Including CGA Merger) 651,832
Options
712 0.80 570 2.1 1-Aug-14
1,368 1.50 2,052 2.5 25-Dec-14
5,496 2.42 13,300 3.4 4-Nov-15
12,434 3.14 39,043 4.5 17-Dec-16
74 4.00 296 3.2 11-Sep-15
Total Options $20,084 $2.75 $55,261 20,084
Warrants
516 4,340 2,238 0.08 1-Nov-12
Total Warrants $516 $4.34 $2,238 516Fully Diluted (000's) 672,432
Share Price (Sep-27-2012) $3.94
Total Capitalization (f.d.) $2,649,380
Total Debt $54,064
Cash and Equivalents (Jun-3-2012) $157,010
Enterprise Value (f.d.) $2,546,435
Total
(000's)Security
Number
(000's)
Exercis
e Price
Value (C$
000's)
Years to
Expiration
Expiration
Date
Source: B2Gold Corp., Raymond James Ltd.
A list of the major shareholders of B2Gold is shown in Exhibit 27. Management,
directors and insiders collectively own approximately 8.3% of the shares outstanding.
Exhibit 27: B2Gold Ownership Breakdown
Ownership Summary Shares Owned%
Manageme nt. Directors and Other Insiders
Johnson, Clive T. 7,716,820 1.97
Garagan, Tom 4,829,832 1.23
Corra, Mark Anthony 4,823,582 1.23
Richer, Roger Thomas 4,569,832 1.16
Stansbury, Dennis Robert 3,949,132 1.01
Total Management & Insiders 32,437,012 8.26
Institutional Ownership
Fidelity Investments 43,891,842 11.2
Resolute Funds Ltd. 33,800,000 8.6
Van Eck Associates Corporation 23,452,746 6.0
Sentry Select Capital Corp. 19,569,900 5.0
BlackRock, Inc. 18,815,681 4.8
RBC Global Asset Management Inc. 17,941,580 4.6Canada Pension Plan Investment Board 7,759,000 2.0
Total Institutional Investors 243,112,041 61.9
Total Management + Ins titutional Inves tors 275,549,053 69.4%
Total Shares Outstanding 397,200,000 100.0%
Total Fully Diluted Shares 417,799,775
Managementand Insiders
8.3%
InstitutionalInvestors
61.9%
Other29.8%
Source: Capital IQ, Raymond James Ltd.
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Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
A list of the major shareholders of CGA Mining is shown in Exhibit 28. Management,
directors, and insiders collectively own approximately 2.3% of the shares outstanding.
Exhibit 28: CGA Mining Ownership Breakdown
Ownership Summary Shares Owned %
Management. Directors and Other Insiders
Savage, Mark Stuart 3,973,880 1.18Chase, Jim 2,379,741 0.70
Magee, Justine Alexandria 1,100,000 0.33
Cruse, David A. 119,600 0.04
Carrick, Michael Joseph 55,000 0.02
Total Management & Insiders 7,628,221 2.26
Institutional Ownership
Franklin Resources Inc. 34,858,750 10.3
Deans Knight Capital Management Ltd. 25,916,925 7.7
Van Eck Associates Corporation 24,497,367 7.3
Royce & Associates, LLC 6,518,000 1.9
Mackenzie Financial Corporation 6,412,400 1.9
Amg Analysen & Anlagen Ag 4,400,000 1.3
CIBC Asset Management Inc. 4,244,820 1.3RBC Global Asset Management Inc. 4,178,270 1.2
Total Institutional Investors 157,671,460 46.7
Total Management + Institutional Inves tors 165,299,681 48.9%
Total Shares Outstanding 337,775,726
Total Fully Diluted Shares 342,453,451
Managementand Insiders
2.3%
InstitutionalInvestors
46.7%
Other51.1%
Source: Capital IQ, Raymond James Ltd
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Appendix A Management Team
President, CEO: Clive Johnson Former CEO of Bema Gold Corporation. Mr.Johnson was instrumental in Bemas transition from a junior exploration
company to an international intermediate gold producer that was sold to
Kinross Gold Corporation in 2007.
Senior VP Finance and CFO: Mark Corra A Certified Management Accountant
with over 25 years of experience in the gold mining industry with companiesthat include B2Gold, Bema Gold Corporation, and Placer Dome Inc.
Senior VP Exploration: Tom Garagan A geologist with over 30 years ofexperience in the mining sector, instrumental in several discoveries, including
the Cerro Casale and Kupol deposits with Bema Gold Corporation.
Senior VP Production and Development: Dennis Stansbury A mining engineerwith over 30 years of experience in the mining sector with companies that
include B2Gold and Bema Gold Corporation.
Senior VP Operations: George Johnson A mining engineer with over 40 yearsof experience in the mining sector with companies that include B2Gold, Bema
Gold Corporation, and Hecla Mining Company.
VP Investor Relations: Ian MacLean Over 15 years of experience in investorrelations with companies that include B2Gold, Bema Gold Corporation, and
Nevsun Resources Ltd.
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Appendix B: Financial Statements
Exhibit 29: Income Statement (2010-2013E)
Income Statement (US$ 000's) 2010 2011 2012E 2013E
Revenues 127,521 225,352 257,604 659,905
Operating Expenses
Production Costs 62,762 75,229 92,570 236,706
Royalties and Production Taxes 7,178 12,921 11,144 24,241Cost of Sales 69,940 88,150 103,713 260,947
Depreciation and Depletion 14,305 26,175 37,121 68,087
Total Operating Expenses 85,723 115,592 141,727 329,035
Mine Operating Profit 41,798 109,760 115,877 330,870Total Other Expenses 19,300 22,825 32,799 22,000
Operating Income 22,498 86,935 83,078 308,870
Non-Operating Income (Expenses)
Total Non-Operating Income 13,686 (6,426) (1,387) (1,887)
Earnings (Loss) before Taxes & NCI 36,184 80,509 81,691 306,983
Taxes 6,694 24,209 25,481 50,069
Net Income (Loss) 29,490 56,300 56,211 256,914
Basic EPS (Loss) per share 0.10 0.17 0.14 0.39
F/D EPS (Loss) per share 0.09 0.16 0.13 0.38
WA Shares Outstanding
Basic Shares Outstanding (000's) 307,068 338,541 397,200 652,348
F/D Shares Outstanding (000's) 313,572 344,812 418,000 672,432
EBITDA 44,988 106,073 118,812 373,183
EBITDA % 35% 47% 46% 57%
Source: B2Gold Corp., Raymond James Ltd.
Exhibit 30: Balance Sheet (2010-2013E)
BALANCE SHEET (US$ 000's) 2010 2011 2012E 2013E
Assets
Cash & Equiv 70,012 102,292 66,854 339,235
Total Current Assets 101,063 149,508 117,375 452,214
Mining Interests (PP&E and Mineral Properties) 235,735 412,537 512,566 777,345
Other Non-Current Assets 1,056 996 4,287 4,287
Total Assets 337,854 563,041 634,229 1,381,845
Liabilities
Current Liabilities
Accounts Payable and Accrued Liabilities 15,003 28,864 19,644 41,443
Total Current Liabilities 16,494 30,321 21,092 83,518
Asset retirement obligation (ARO) 13,578 26,731 24,106 24,106
Future tax liability 16,367 26,638 31,780 37,275
Other Non-Current Liabilities 2,776 4,017 4,487 4,487
Total Liabilities 49,215 87,707 81,465 166,575
Shareholders' EquityShare Capital 300,985 435,048 451,893 749,860
Contributed surplus 20,143 22,712 27,133 31,133
Retained Earnings (32,489) 13,631 69,842 430,381
Total Shareholders Equity 288,639 471,391 548,868 1,211,375
Total Liabilities & Shareholders Equity 337,854 563,041 634,229 1,381,845
Source: B2Gold Corp., Raymond James Ltd.
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Exhibit 31: Cash Flow Statement (2010-2013E)
Cash Flow Statement (US$ 000's) 2010 2011 2012E 2013E
Operating Activities
Net Income 29,490 56,300 56,211 256,914
Add:Non-Cash items:
Depreciation & Depletion 14,305 26,175 37,121 68,087
Deferred income tax expense 4,454 17,917 5,142 0
Stock based comp. 1,943 6,190 12,803 4,000
Operating CF before changes in WC 35,849 108,930 109,651 329,001Net change in non-cash WC (1,523) (6,583) (9,142) (32)
Cash flow from Operations 34,326 102,347 100,509 328,969
CFO/diluted share 0.11 0.30 0.24 0.49
CFO/ diluted share (Excluding WC) 0.11 0.32 0.26 0.49
Investing Activities
Capital Expenditures (28,346) (71,606) (80,867) (113,000)
Exploration (13,882) (22,436) (63,853) (28,000)
Cash flow from Investing (9,895) (77,688) (145,326) (141,000)
Financing Activities
Issuance of common shares 57,116 7,943 9,451 0
Debt Issued 7,500 0 0 0
Debt Repaid (21,959) (322) (73) (25,375)Cash flow from Financing 42,657 7,621 9,378 (25,375)
Net Change in Cash 67,088 32,280 (35,438) 162,595
Cash, BOP 2,924 70,012 102,292 66,854
Cash, EOP 70,012 102,292 66,854 229,448
Free Cash Flow
Free Cash Flow 26,621 32,709 (35,069) 188,001
FCF/Diluted Share 0.08 0.09 (0.08) 0.28
Source: B2Gold Corp., Raymond James Ltd.
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Raymond James Ltd. | 2100 925 West Georgia Street | Vancouver BC Canada V6C 3L2
Appendix C: Corporate Tear-sheet
RAYMOND JAMES RESEARCH
Rating: OUTPERFORM 2 Share Price: $3.94 Analyst: Chris Thompson 604 659 8282
6-12 Mth Target C$ 5.50 NAV $2,578 Associate: Brian Martin 604 654 1236
Projected Return: 40% YR-END: 31-Dec
Reporting Currency: US 28-Sep-12
Investment Thesis Management % Ownership Instiutitonal Shareholders % Ownership
Johnson, Clive T. (CEO) 2.0 Fidelity Investments 11.2
Garagan, Tom (VP Exp) 1.2 Resolute Funds Ltd. 8.6
Corra, Mark Anthony 1.2 Van Eck Associates Corp. 6.0Key Attributes:
Market Statistics
from two producing mines in Nicaragua (La Libertad and El Limon) and one in the Phillipines (Masbate) Share Price C$ 3.94 Shares Basic (mln) 651.8
-Attractive development project pipeline, 92% of Otjikoto (Namibia), 49% of Gramalote with 52 Week High/Low 4.55-2.64 Shares Fully Diluted (mln) 672.4
AngloGold Ashanti JV (Colombia) and Bellavista (Costa Rica, on care and maintenance) Market Cap. (mln) $2,649 Adj. Shares used in NAV calc (mln) 672.4
-High quality management team (ex-Bema Gold) with proven track record Enterprise Value (mln) $2,572 Avg Daily Volume: 2,208
-Strong balance sheet,~US$154 mln in cash and equiv, and ~$54 mln in debt as of June 30 2012 (pro-forma)
-Self-funded (Nicaragua and Namibia) growth agenda, both organic and th rough acquisition
-Attractive portfolio of exploration project joint-ventures in Nicaragua and Uruguay Financial Metrics 2011 2012E 2013E 2014E 2015E
Key Concerns Cash & Equiv. (mlns) 102 67 339 589 888
-Development Risk -Cost Inflation -Gold Price Risk Working capital (mlns) 119 96 369 621 929
-Political Risk -Operational / Labour Risk Current ratio (x) 4.9x 5.6x 5.4x 8.5x 11.0x
Reserves & Resources Profile (Attributable) - Pro-forma w/ Masbate LT Debt (mlns) - - 16 10 3
(As of Dec-31-11) Project Category Tonnes ('000) Au (g/t) Au ('000 oz) Common Equity (mln's) 471 549 1,211 1,541 1,843
Price/book (x) 2.8x 2.9x 2.1x 1.7x 1.4x
Reserves Libertad P&P 11,265 1.63 589 ROE 12% 10% 21% 21% 15%
Limon P&P 1,561 4.72 237
Masbate P&P 118,600 0.83 3,165 CFO (US$mln) 102.3 100.5 329.0 397.4 364.4
Total 131,426 0.94 3,991 CFI (US$mln) (77.7) (145.3) (141.0) (144.6) (72.3)
Resources FCF (US$mln) 32.7 (35.1) 188.0 255.9 301.3
Libertad M&I +Inf. 12,149 2.40 939
Limon M&I +Inf. 2,146 4.80 331
Masbate M&I +Inf. 314,499 0.79 7,947
Otjikoto (92%) M&I +Inf. 22,939 1.74 1,283 Earnings/Cash Flow 2011 2012E 2013E 2014E 2015E
Gramalote (49%) M&I +Inf. 94,470 0.63 1,902 RJ Gold Forecast US$/oz 1,571 1,660 1,760 1,700 1,500
Global Total 577,629 0.88 16,393 Revenue ($mln) 225.4 257.6 659.9 732.2 786.4
Corporate EBITDA ($mln) 106.1 118.8 373.2 451.9 434.6
Operating Summary 2011 2012E 2013E 2014E 2015E EBITDA margin (%) 47% 46% 57% 62% 55%
Production - Au (k oz) - 100% basis EV/EBITDA (x) 24.2 21.6 6.9 5.7 5.9
Libertad 100 105 139 167 167 Corporate EBIT ($mln) 80.5 81.7 307.0 379.5 349.8
Limon 45 49 51 47 49 Net earnings ($mln) 56.3 56.2 256.9 323.2 284.3
Masbate 0 0 213 221 211
Otjikoto 0 0 0 0 110 EPS (US$) 0.17 0.14 0.39 0.49 0.43
Total - Au (k oz) 145 153 403 435 528 P/E (x) 23.7x 27.8x 10.0x 8.0x 9.1x
Op. Cash Costs ($/oz) CFPS (US$) 0.32 0.26 0.49 0.60 0.56
Libertad 460 544 383 327 327 P/CF (x) 12.5x 15.0x 8.1x 6.6x 7.1x
Limon 678 709 645 712 753
Masbate 0 0 707 643 673 Capex ($mln) (72) (81) (113) (117) (44)
Otjikoto 0 0 0 0 665
528 596 588 529 571
Valuation (C$)
Cash Flow 2011A 2012E 2013E 2014E 2015E
CFPS (C$) $0.32 $0.27 $0.50 $0.61 $0.57
Target Multiple 10.0x
Value Per Share $5.01
Development and Exploration Credits Value (C$mlns) Per Share
Otjikoto (DCF 5%) $133 $0.20
Gramalote ($/oz) $133 $0.20
Other Exploration Assets $65 $0.10
Total Exploration $331 $0.49
Target Price $5.50
Projected Return to Target 40%
Valuation Measures
Target
Multiple
Current
Multiple
Price/ 2013E CFPS 10.0x 7.9x
Price/ NAV 1.0x 1.4x
B2Gold Corp
B2Gold is an emerging mid-tier gold producer with a robust growth profile from existing operations, a development
stage project pipeline, an attractive portfolio of exploration project joint-ventures, a solid balance sheet, and a
proven management team
-Growing production near-term (2011: ~145K to 2015E: ~528Koz) and CFPS (2011: $0.32 to 2015E: $0.56)
RJL Covered Gold's P/CFPS Multiples (2013E) Valuation Summary (100%) = $5.50/share
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0
100
200
300
400
500
600
2011 2012E 2013E 2014E 2015E
Otjikoto Prod'n (k oz's) Masbate Prod'n (k oz's) Limon Prod'n (k oz's)
Libertad Prod'n (k oz's) Op. Cash Costs ($/oz) RJ Gold Forecast US$/oz
91%
3%
4%
2%
CFPS $5.01 /share
Otjikoto (DCF 5%) $0.20 /share
Gramalote ($/oz) $0.20 /share
Other Exploration Assets $0.10 /share
0%
50%
100%
150%
200%
250%
0.0x
5.0x
10.0x
15.0x
20.0x
GSC
EDV
BTO
ASR
OSK
YRI
AGI
AEM
ELD
Prod'nGrowth2012-201
5E(%)
P/CFPS(x)
Current P/CFPS Target P/CFPS Att rib % Prod'n Growth (2012-2015E)
Note: % Attrib Production Growth is RJL Estimates, for EDV and BTO, assume pending transactions close
Source: B2Gold Corp., Raymond James Ltd.
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Appendix D: Industry Comparables
Primary Share Target(2) Stock Basic S/O Mkt Cap Net Debt EV Target Target
Ticker Price Price Rat ing (mln) ($mln) ($mln) ($mln) 2012E 2013E 2012E 2013E NAVPS(1) P/NAV P/CFPS P/NAV
RJL Covered Gold Producers (1)
Agnico-Eagle TSX:AEM C$51.00 $50.00 MP3 170.3 8,684 541 9,357 3.55 3.71 14.6x 13.9x $32.84 1.6x 13.5x 1.5x
Alacer Gold TSX:ASR C$7.26 $7.50 MP3 287.9 2,090 (200) 1,890 0.91 0.87 8.0x 8.3x $6.32 1.1x 8.6x 1.2x
Alamos Gold TSX:AGI C$19.11 $24.50 OP2 119.9 2,290 (236) 2,089 1.44 1.66 13.5x 11.7x $19.40 1.0x 14.7x 1.3x
Eldorado Gold TSX:ELD C$14.99 $18.50 OP2 713.0 10,688 (327) 10,523 0.60 0.93 25.2x 16.3x $13.22 1.2x 19.9x 1.4xEndeavour Mining TSX:EDV C$2.22 $3.80 OP2 406.6 903 (15) 901 0.38 0.33 6.0x 6.9x $3.20 0.7x 11.6x 1.2x
Golden Star TSX:GSC C$1.97 $1.95 MP3 258.9 510 (18) 499 0.44 0.51 4.6x 3.9x $1.81 1.1x 3.8x 1.1x
Osisko TSX:OSK C$9.74 $11.00 MP3 387.3 3,772 233 4,005 0.50 1.13 19.7x 8.6x $8.23 1.2x 9.7x 1.3x
Yamana Gold TSX:YRI C$18.78 $22.00 OP2 746.5 14,019 67 14,299 1.45 2.02 13.2x 9.4x $13.60 1.4x 10.9x 1.6x
Group A verage 13.1x 9.9x 1.2x 11.6x 1.3x
B2Gold Corp TSX:BTO C$3.94 $5.50 OP2 397.2 1,565 (77) 1,488 0.27 0.50 14.7x 7.9x $3.83 1.0x 11.0x 1.4x
Comparable Producers
New Gold, Inc. TSX:NGD C$12.05 na na 462.0 5,567 154 5,721 0.66 1.14 18.3x 10.6x na na na na
San Gold Corporation TSX:SGR C$1.07 na na 325.3 348 (21) 327 0.16 0.26 6.9x 4.0x na na na na
Semafo, Inc. TSX:SMF C$4.49 na na 273.2 1,227 (148) 1,078 0.57 0.70 7.9x 6.4x na na na na
Medusa Mining Limited ASX:MML C$6.06 na na 188.9 1,145 (12) 1,132 0.25 0.53 24.3x 11.6x na na na na
Aurizon Mines Ltd. TSX:ARZ C$5.16 na na 164.4 848 (209) 640 0.54 0.62 9.5x 8.3x na na na na
AuRico Gold Inc. TSX:AUQ C$6.91 na na 281.9 1,948 231 2,178 0.50 1.02 13.9x 6.8x na na na na
Brigus Gold Corp TSX:BRD C$0.97 na na 217.3 211 44 255 0.21 0.31 4.7x 3.1x na na na na
Group A verage 12.2 x 7 .3 x
(1)CFPS/EPS and NAVPS estimates are RJL Estimates for all RJL Covered Gold Producers, all other estimates are Capital IQ or Thomson One Concensus estimates.
(2)Target Prices are all RJL estimates
P/E and P/CF ratio's greater than 30 deemed "n.m."
n.a. = estimates not available
CFPS1 P/CF
Source: Capital IQ, Thomson One, Company Reports, Raymond James Ltd.
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Appendix E: Company History and Share Price
B2Gold Share Price History and Gold Price
B2Gold Corp - Key Events
1 27-Jan-09 B2Gold proposes a business combination with Central Sun Mining which includes the Limon and Libertad gold mines in Nicaragua
2 9-Feb-09 B2Gold and Central Sun Mining sign definitive agreements
3 26-Mar-09 Central Sun shareholders approve business combination with B2Gold
4 9-Apr-09 B2Gold provides corporate update and gold production, cash costs and development programs for the remainder of 2009
5 22-Jul-09 B2Gold completes $25 mln bought deal equity financing
6 4-Nov-09 B2Gold announces illegal strike and shutdown at Limon mine, provides corporate update at Libertad Mine, and signs $20 mln credit facility
7 16-Nov-09 Limon Mine labour dispute is resolved and mine re-commences operations
8 5-Jan-10 B2Gold announces gold and silver production start-up at Libertad Mine, first dore bar produced
9 18-Feb-10 B2Gold completes $32 mln common share offering
10 3-Mar-10 B2Gold provides corporate update and gold production, cash costs and development programs for the remainder of 2010
11 21-Jun-10 B2Gold announces additional positive exploration results at both Libertad and Limon, including drill results at Jabali
12 22-Jul-10 B2Gold sells interest in Kupol East and West Licenses in Russia to Kinross Gold
13 12-Aug-10 B2Gold and AngloGold reach agreement to recommence exploration and feasibility work at Gramalote, Colombia
14 24-Jan-11 B2Gold reports fourth quarter production and guidance for 2011 production and exploration plans/budgets.
15 31-Mar-11 B2Gold annouces record 4th quarter and 2010 financial results, reserve and resource update and new large high grade resource at Jabali
16 8-Jun-11 B2Gold announces exploration work and drill results from Libertad, increasing size of the Jabali and Mojon zones
17 21-Jun-11 B2Gold reports heavy rains and flooding at Limon, resulting in temporary operations shutdown
18 11-Oct-11 B2Gold and Auryx Gold sign agreement for proposed business combination, including 92% in Otjikoto (Namibia) development project
19 1-Dec-11 B2Gold announces exploration results at Libertad, increasing size of Jabali and Mojon West Deposits
20 23-Jan-12 B2Gold reports fourth quarter production and guidance for 2012 production and exploration plans/budgets.
21 5-Apr-12 B2Gold announces updates resources for Jabali, and Otjikoto project in Namibia
22 24-Apr-12 B2Gold announces updated resource calculation for Gramalote Gold property in Colombia
23 19-Sep-12 B2Gold announces merger with CGA Mining (TSX:CGA)
Event DescriptionEvent Date
1
2 4
3
5
6
7
8
9
1011
12
1314
15
16
17
18
19
20
21
22
23
0
200
400
600
800
1000
1200
1400
1600
1800
2000
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
Jan-09
Jan-09
Mar-09
Apr-09
May-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
GoldPrice(US$/oz)
SharePrice(C$)
Gold Price (US$/oz) BTO Share Price Key Events
Source: B2Gold Corp., Raymond James Ltd.
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Company Citations
Company Name Ticker Exchange Currency Closing Price RJ Rating RJ Entity
Agnico-Eagle Mines AEM NYSE US$ 51.88 3 RJ LTD.
Alacer Gold Corp ASR TSX C$ 7.26 3 RJ LTD.
Alamos Gold Inc. AGI TSX C$ 19.11 2 RJ LTD.
AngloGold Ashanti Ltd. AU NYSE NC
AuRico Gold Inc. AUQ TSX US$ 9.08 NC
Aurizon Mines Ltd. ARZ TSX C$ 5.16 UR RJ LTD.
Auryx Gold Corp. AYX TSX NC
Batero Gold Corp. BAT TSXV C$ 0.48 2 RJ LTD.
BlackRock, Inc. BLK NYSE NC
Brigus Gold Corp BRD TSX NC
Calibre Mining Corp. CXB TSXV NC
Canadian Imperial Bank of Commerce CM TSX NC
CGA Mining Ltd. CGA TSX C$ 2.80 UR RJ LTD.
Eldorado Gold Corp. EGO NYSE US$ 15.24 2 RJ LTD.
Endeavour Mining Corp. EDV TSX C$ 2.22 2 RJ LTD.
Fidelity National Financial, Inc. FNF NYSE NC
Golden Star Resources GSS AMEX US$ 1.97 3 RJ LTD.
Hecla Mining Company HL NYSE NC
Kinross Gold Corp. KGC NYSE NCMedusa Mining Ltd MML ASX NC
Nevsun Resources Ltd. NSU TSX NC
New Gold, Inc. NGD TSX NC
Osisko Mining Corp. OSK TSX C$ 9.74 3 RJ LTD.
Radius Gold, Inc. RDU TSXV NC
Royal Bank of Canada RY TSX NC
San Gold Corp. SGR TSX C$ 1.07 UR RJ LTD.
Semafo Inc. SMF TSX NC
Yamana Gold Inc. AUY NYSE US$ 19.11 2 RJ LTD.
Notes: Prices are as of the most recent close on the indicated exchange and may not be in US$. See Disclosure section for
rating definitions. Stocks that do not trade on a U.S. national exchange may not be approved for sale in all U.S. states. NC=not
covered.
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Important Investor DisclosuresRaymond James & Associates (RJA) is a FINRA member firm and is responsible for the preparation and distribution of
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The information provided is as of the date above and subject to change, and it should not be deemed a recommendation tobuy or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not
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With respect to materials prepared by Raymond James Ltd. (RJL), all expressions of opinion reflect the judgment of the
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Analyst Information
Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus
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permitted to hold long positions in the securities of companies they cover which were in place prior to September 2002 but
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The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No
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last 12 months.
Ratings and DefinitionsRaymond James Ltd. (Canada) definitions
Strong Buy (SB1) The stock is expected to appreciate and produce a total return of at least 15% and outperform the
S&P/TSX Composite Index over the next six months. Outperform (MO2) The stock is expected to appreciate and
outperform the S&P/TSX Composite Index over the next twelve months. Market Perform (MP3) The stock is expected to
perform generally in line with the S&P/TSX Composite Index over the next twelve months and is potentially a source of
funds for more highly rated securities. Underperform (MU4) The stock is expected to underperform the S&P/TSX
Composite Index or its sector over the next six to twelve months and should be sold.
Raymond James & Associates (U.S.) definitions
Strong Buy (SB1) Expected to appreciate, produce a total return of at least 15%, and outperform the S&P 500 over the next
six to 12 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, a total return of at
least 15% is expected to be realized over the next 12 months. Outperform (MO2) Expected to appreciate and outperform
the S&P 500 over the next 12-18 months. For higher yielding and more conservative equities, such as REITs and certain
MLPs, an Outperform rating is used for securities where we are comfortable with the relative safety of the dividend and
expect a total return modestly exceeding the dividend yield over the next 12-18 months. Market Perform (MP3) Expected
to perform generally in line with the S&P 500 over the next 12 months. Underperform (MU4) Expected to underperform