B2Gold Corp (NYSEMKT:BTG) Hit By News of Mine Audit Report


Shares of Canada-headquartered, international gold producer B2Gold Corp (NYSEMKT:BTG) slumped 11.76% on Tuesday after Reuters reported that the Department of Environment and Natural Resources (DENR) of the Philippines will issue a Show-Cause Order to the Company’s Masbate Gold Project.

The fall in the share price to $2.55 was accompanied by a trading volume of nearly 10 million shares.

The company learnt from DENR spokespersons that the Show Cause Order related to three findings in connection with the operations of Filminera Resources Corporation (FRC) and Philippine Gold Processing and Refining Corporation (PGPRC) at the Masbate Gold Project.

B2Gold Corp (NYSEMKT:BTG) says show cause related to admin issues only

The Masbate Mine is located near the northern tip of the island of Masbate, 360 kilometres south-east of Manila, the capital city of the Philippines. It is the largest single investment in the Province of Masbate and the largest producing gold mine in the Philippines.

However, B2Gold has been quick to soothe ruffled investor feathers by confirming that the “findings” relate to administrative matters only, and not any environmental or social issues.

The company said its operations were continuing uninterrupted and that guidance remained unchanged.

B2Gold Corp (NYSEMKT:BTG) upgraded to Buy by Dundee Capital

Meanwhile, investors should note that Dundee Capital Markets recently upgraded their recommendation on B2Gold from Neutral to Buy and raised their price target from $4.25 to $4.50.

According to analyst Ron Stewart, B2Gold is likely to achieve the high end of its 2016 production (510,000 to 550,000 ounces) guidance and the low end in respect to costs ($560 – $595/ounce), and lauded the company for its liquidity, leverage and low costs.

Liquidity is right. B2Gold last month launched a $100 million at-the-market stock offering agreement with Canaccord Genuity and HSBC.

The issue proceeds will primarily be used for the construction of the Fekula project in Mali.


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