Recent Buy – B2Gold Corp

Another transaction in my portfolio last week. Gold prices have been taking a hit lately and I see a good buying opportunity, even though I am sitting at full positions in most of my gold equities. However, the valuation looked attractive enough for me to add more and possibly trade around my core position.

Last week I added to my B2Gold Corp (BTG)(BTO.TO) position. In this particular case, I decided to buy the US-listed stock — ticker: BTG; but to keep things simple, I will treat it as the BTO.TO in my portfolio page, as it is the same company. I bought 500 shares of B2Gold (BTG) @ US$2.93.

B2Gold is one of the larger junior mining companies. The Fekola project is arguably one of best gold mines going into production this year — and is slotted to produce upto 50,000 oz of gold to begin with before ramping up next year. For the most part, I think investors are under appreciating the size of this project and the potential of B2Gold. The management is fantastic and has a proven track record of building and producing gold mines in the past. This is the same team the built and sold Bema Gold (that’s where the ‘2’ in B2Gold comes from) to Kinross Gold in 2007 for $3B.

This is my 4th purchase of B2Gold shares (see purchases #1, #2, and #3). I now hold a sizeable position in B2Gold, making it one of my largest holding in the portfolio. Once the share prices recover after this slump in metal prices, I might swing trade a bit or write covered calls to take some profits. But I will not be forcing any moves just for the sake of it. For the long haul, I am happy holding the shares as we are still early in the gold bull market.

Full Disclosure: Long BTO.TO, BTG. Our full list of holdings is available here.

14 thoughts on “Recent Buy – B2Gold Corp

  1. Mikem says:

    I think that buying Bitcoin may be an infinitely better idea than gold. Bitcoin is a limited unit of value with a rapidly expanding user base globally. Here’s my logic. There are 5,820,203,717 ounces of usable gold on earth at this time and that number continues to expand every hour. So, over 5.8 BILLION ounces today. As for Bitcoin, the most that there will ever he is 21,000,000. 21 MILLION. In the last two weeks Bitcoin’s price per unit ( 1 gold ounce vs 1 Bitvoin) equaled the price per ounce of gold. There are 277 times the units of gold than Bitcoin. Bitcoin price today is $1127. Multiplying the per-unit Bitcoin price ($1127 x 277) to equal gold’s price per unit is $312,000. I’ll be buying more Bitcoin with my next paycheck.

    • Hi Mikem,
      I do like Bitcoin and what it represents in the monetary system..but as AT mentioned below, coming up with alternate currencies may pull the rug out from under Bitcoin. Have you looked at Ethereum? Recently its getting a lot of focus and even some of the big banks in the US are starting to join the movement. Interesting developments for sure…

      R2R

  2. Gold is an asset that attracts me as well. sadly, I was way to eager at higher prices and i am sweating out puts right now…

    Enjoy the miners!

    Bitcoin is not on my radar. Yes, it is limited in the number of coins available, on the other hand, someone can start an alternative crypto currency and bam…. more virtual money is there overnight!

    • This weakness is temporary, Im sure (next week’s debt ceiling raise should be an interesting catalyst) — so hopefully your puts work out in your favor.

      Exactly my thought process on bitcoin too — there are already alternate cryptocurrencies such as Ethereum — so, Im not sure if the raise in Bitcoin is warranted or will survive on a long term basis.

      R2R

  3. I’m really salivating over precious metal stocks here… this selloff is providing an amazing opportunity for the patient investor/speculator to load up before the next leg up again.

    Silver, in particular has taken a huge beating… many stocks down -30% plus in less than two weeks.

    All I see are opportunities galore.

    Happy Huting!

    • It is an opportunities galore! There are so many deals that seemed a bit expensive just a month ago. Love the volatility and the quick movements that the sector provides. Theres so many interesting companies and assets to buy — just gotta decide on which ones to pull the trigger on.

      Best wishes
      R2R

  4. Gold prices are down? Hmm, maybe I should take this as an opportunity to buy gold bullion. I primarily have silver bullion.

    Sincerely,
    ARB–Angry Retail Banker

  5. The miners are a far better buy (value) then physical bullion itself right now. Greatly oversold, especially silver…

    But really, who likes to buy low anyway?

    Practically nobody… 😛

  6. I am a big fan of precious metals and the companies that are mining them. Probably quite opposite to most people that write about personal finance.

    The first time I held a one ounce gold coin I felt like it was what money ought to be.

    Anytime another person buys some, either physical or one of the mining companies, I approve! 😀

    • Thats true…most people in the personal finance blogging world do not tend to share their PM equity trades, except for a couple of them I know.

      There is something special about a piece of gold coin isnt there? Theres a reason its stood the test of time 🙂

      Thanks for stopping by. I’ll be sure to stop by and check out your site
      R2R

Leave a Reply

Your email address will not be published. Required fields are marked *