Nikolay Tomov
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B2Gold Corp. Stock (TSE:BTO), (PINK:BGLPF) The Dream Continues

by Nikolay Tomov Apr 11, 2011
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The dream for the B2Gold Corp. (TSE:BTO), (PINK:BGLPF) on the stock markets continues. The shares  have never looked stronger. They have flown 35% up on the Toronto Stock Exchange (TSE) over the last three weeks. Last Friday, they marked an all-time price record on a huge turnover that made them the second most demanded item on the Canadian market. This does sound like a dream performance.

B2_Gold_Corp_-_Chart_new.jpgIn the last session, BTO added the next 2.7% to its value to close at $3.45. The stock noted a high of $3.57 during the day, a record in the company's trading history. The rise was confirmed by an enormous volume of over 16.2M shares, beating almost eight times the average turnover.

The latest major company developments announced by B2Gold were the 2010 financial reports filed in the end of March. They outline the solid financial condition of the corporation:

               * B2Gold finished the year with more than $70M in cash and equivalents;
               * For the last quarter of 2010, the company reported a record gold revenue of $47 from its Nicaraguan projects - the Libertad Mine and the Lime mine;
               * 2010 is a year full of records for B2Gold - a record gold production of 108,700 ounces and a record gold revenue of $127.52, a jump of 517% compared to 2009;
               * The corporation recorded a net income of $29.5M in 2010. In addition, it increased its proven and probable reserves by 16% over the last year.

As the figures show, the positive trends from the financial statements also look like a dream. Perhaps, they have impressed many investors and are one of the reasons for the solid performance of the stock. The other probable reason is a speculative interest towards the company and possibly the increased shorters' activity.

If there is anything negative to be said about B2Gold, this is probably the dilution - the average number of outstanding shares has jumped from 237M in 2009 to 313.6M in 2010, or by more than 32%.

B2_Gold_Corp_-_Logo.jpgHowever, this has not prevented B2Gold from recording a very encouraging $0.09 EPS for 2010. Shareholders are probably delighted! Besides, the company promises investors 135,000 ounces gold production in 2011.

Finally, we should note that the current market cap of the company is $1.17B (!!!) and is well above the net tangible worth of business. This suggests that the corporation is overvalued by traders.

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