The coronavirus pandemic and the United States Presidential election have been two major factors for the continued uncertainties with regards to the economy. Hence, it is no surprise that the price of gold has appreciated considerably due to its credentials as a safe haven investment.
In such a situation, it could also be worthwhile to have a look at certain gold stocks and one of the notable ones is that of B2Gold Corp (NYSEAMERICAN:BTG).
Outline of B2Gold
B2Gold has become one of the better known gold miners in recent times and more importantly, the company is also well known for paying out higher than average dividends.
While there may be specific upsides, it cannot be denied that the company could also be susceptible to political upheavals. Most of its operations are concentrated in Africa and Asia, which is why political risks have to be considered by investors.
At this point, the stock has a price to earnings ratio of 16 and a dividend yield of 2.4%. However, more importantly, B2Gold boasts of commanding the biggest margins in the gold industry and helped the company in generating record profits. It also helped B2Gold in bumping its dividends up twofold.
These factors make B2Gold a stock that not only pays high dividends but also promises substantial growth in the future. In addition to that, investors should also note that over the next few years the company is also aiming to boost its production capabilities substantially.
Third Quarter Performance
If an investor wants to get a better idea about the company’s current position it could be a good idea to take a look at its performance in the third quarter. The company announced strong results in the third quarter earlier in November.
B2Gold managed to produce 248733 ounces of gold in the third quarter and that represents a significant rise of as much as 17% from the production in the year-ago period. The production came about from three mines that are operated by the company.
On the other hand, revenues soared by a massive 57% to hit $478 million, thereby clocking a year on year rise of as much as $176 million. It proved to be a record for B2Gold. The operating cash flow from the three operating mines came in at $301 million and recorded a year on year rise of as much as 79%, which worked out to $133 million.
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