Earnings season is kicking off, and one of the first gold stocks to report earnings is B2Gold (TSX: BTO)(NYSE:BTG), one of the lowest-cost and best gold stocks you can buy.
Gold stocks in general have had an up-and-down performance lately, as the precious metal is facing a combination of headwinds and tailwinds. And while the price of gold has been increasing at times, the market has been concerned that rising costs will affect producers like B2Gold and ultimately negatively impact margins.
Let’s look at how B2Gold, one of the best gold stocks you can buy, performed in the first quarter of 2022.
Even with the impacts of inflation, B2Gold showed why it’s one of the best gold stocks to buy now
Despite surging inflation and costs that were higher than the same quarter last year, B2Gold managed to produce more gold than was expected at costs much lower than projected, reminding investors why B2Gold is one of the best gold stocks to buy.
For the quarter, the company’s total gold production of 209,365 ounces was 5% above budget. And in addition to its consolidated production being above estimates, all three of the company’s mines exceeded their budgeted production for the first quarter of 2022.
While the company produced nearly 210,000 ounces this quarter, it only sold 195,100 at an average price of $1,874, giving the company $366 million of total revenue.
And when you consider that the low-cost producer reported total cash operating costs of $699, which was 12% below budget, it’s clear that B2Gold’s margins are some of the best. Not only that, but its all-in sustaining costs (AISC) for the quarter were just $1,036 and are also some of the lowest in the industry.
This led B2Gold to report adjusted earnings per share of $0.06, which beat the consensus estimate of $0.05. In addition, B2Gold reported cash flow per share of $0.14, which was ahead of the $0.12 estimate.
B2Gold’s low-cost nature not only makes it one of the best gold stocks you can buy, but it also shows why the company is such an excellent dividend stock and currently offers a yield of 3.8%.
Having low costs is crucial because it allows B2Gold to remain more profitable than its peers when the price of gold is falling. And when the price of gold rallies, its margins can grow considerably.
If you’re looking for high-quality gold stocks that you can buy in this environment, B2Gold looks to be one of the best.
How will B2Gold perform the rest of the year?
In addition to reporting another quarter of impressive earnings, B2Gold also reiterated its guidance for the year. And although it managed to produce just over 200,000 ounces in the first quarter, the company is expecting to produce more gold in the second half of the year.
Therefore, B2Gold is estimating that it will produce about one million ounces of gold this year. In addition, it should continue realizing low costs. For the rest of 2022, B2Gold is expecting its total cash costs to be between $620 and $660. Furthermore, its AISC are budgeted to be between $1,010 and $1,050 per ounce.
Therefore, as long as the company can continue to execute well and hit its goals, it should continue to earn impressive cash flow and return cash to investors.
So, if you’re looking for top gold stocks to buy that can protect your portfolio and offer growth potential over the long haul, B2Gold is one the very best to consider.
