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.

Recent Buy – B2Gold Corp

Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. As regular readers are aware, I have broken from the pack of DGI and sold some of my investments to move to a cash position. I shared details on my motivation to do so in this post. In that post, I have indicated that I am bullish only on one sector currently — the resource/materials sector, and more specifically gold and silver.

I continued adding to my precious metals equity sector as I still see tremendous value. Earlier this week, I added to my position in B2Gold Corp (BTO.TO) (also trades as NYSE:BTG) with 300 shares @ C$3.42. This is the third transaction to for this particular company in my portfolio. The company does not pay any dividends.

I usually present my thesis on why I bought a particular investment security and present the risks associated in the Recent Buys posts. In this case, I will simply link to my original post on B2Gold purchase. Note that there was one major event that occurred on Tuesday which caused the stock to take a ~12% hit after which I added to my position. More on this after the link below.

Recent Buy – B2Gold Corp

New Risk Event for B2Gold

The event was related to the Government of Philippines DENR (Department of Environment and Natural Resources) announced the results of the nationwide audit of metallic mines. This is a new added risk to the Masbate Gold mine that B2Gold operates and provides significant portion of B2Gold’s revenue. It is also a very economical mine in B2Gold’s arsenal where All-In Sustaining Cost (AISC) is a lowly $595 /oz. The audit definitely throws a wrench in the works and will add some complication and added risk — which the management assures shareholders will be handled and de-risked appropriately. We will have to wait and see how things progress.

Valuation

I believe B2Gold is attractively valued even after considering the above risk. In addition to the growing revenue and earnings expected from B2Gold in the coming years, there is also added tailwind from the rising gold prices (which I am bullish on). Following infographic from Simply Wall St (read my recent review here) illustrates the valuation. Note that the infographic represents the US-listed stock NYSE:BTG and in US$.

AMEX:BTG B2Gold Intrinsic value by Simply Wall St

AMEX:BTG B2Gold Intrinsic value by Simply Wall St

Full Disclosure: Long BTO.TO. My full list of holdings can be found here.

Recent Buy – B2Gold Corp

Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. As regular readers are aware, I have broken from the pack of DGI and sold some of my investments to move to a cash position. I shared details on my motivation to do so in this post. In that post, I have indicated that I am bullish only on one sector currently — the resource/materials sector, and more specifically gold and silver.

I continued adding to my precious metals equity sector as I still see tremendous value. Last week, I added to my position in B2Gold Corp (BTO.TO) (also trades as NYSE:BTG) with 700 shares @ C$3.45. The company does not pay any dividends

I usually present my thesis on why I bought a particular investment security and present the risks associated in the Recent Buys posts. In this case, I will simply link to my last post on B2Gold purchase as nothing has changed as far as the outlook goes since my last purchase.

Recent Buy – B2Gold Corp

Full Disclosure: My full list of holdings can be found here.

Recent Buy – B2Gold Corp

Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. This latest purchase continues to diverge from the normal DGI stock buys that I normally pursue, as I shared in this post – Multipronged Approach to Investing and Recent Sell – The Big Reset Edition.

Regular readers of this blog are aware that I am not crazy about this stock market and the crazy valuations we are seeing. In addition, companies are routinely adjusting their financials, which isn’t being highlighted by the media. This I find is very concerning and fear the worst pushing me towards more safety trades.

Over the past few months, I have shared my moves in the precious metals space with a purchase of Silver Wheaton Corp (SLW.TO) and Pan American Silver Corp (PAA.TO). Continuing with the theme, I added another mining company, this time focused on gold. Note that at the moment, I own IAMGold Corp (IMG.TO), but have a covered call which is in-the-money and expect to expire in a couple of weeks and get called away. This was a way for me to get rid of a company that I am not very confident in — its a decent company, but the management hasn’t done a great job and there are better run companies in the space.

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