B2Gold Gains 31% in 3 Months: Here's How to Play the Stock

B2Gold Corp. BTG shares have gained 31.3% in the past three months, outpacing the industry's 26.3% growth. It has also fared better than the Zacks Basic Materials sector, which has gained 8.3%, and the S&P 500, which rose 10% in the said timeframe.

BTG has also topped peers like Eldorado Gold EGO and IAMGOLD IAG, which have gained 26.4% and 28.9%, respectively.

Factors Driving B2Gold Stock

Sollid Q2 Results: The company reported its second-quarter 2025 results on Aug. 7.  Adjusted earnings per share of 10 cents were up 67% year over year. Revenues were $692 million, 40% higher than the prior-year quarter’s $493 million. However, the increase was mainly driven by higher gold prices as sales volumes were flat compared with the year-ago quarter.

Total cost of sales moved up 22% year over year to $341 million. The gross profit rose 34.8% year over year to $351 million due to higher revenues. Operating income jumped to $329.5 million, a significant climb from the prior-year quarter’s $31 million.

B2Gold recorded a consolidated gold production of 229,454 ounces, up 12.3% year over year and higher than its expectation, driven by strong performance across all operations. The company remains on track to meet total gold production of 970,000-1,075,000 ounces for 2025. 

Goose Project Nears Ramp-up: On June 30, 2025, B2Gold announced the first gold pour at the Goose mine. The company expects a ramp-up to commercial production in the third quarter of 2025, with this year’s output projected at 120,000–150,000 ounces. From 2026–2031, annual production is forecast to average 300,000 ounces.

Receives Approval for Underground Mining at Fekola: B2Gold recently received approval from the State of Mali to initiate underground operations, including stope ore production, at the Fekola Mine.

Fekola underground is projected to contribute 25,000–35,000 ounces of gold in 2025, ramping up significantly from 2026 onward. Fekola Regional is anticipated to contribute approximately 180,000 ounces of additional annual gold production in its first four full years of production from 2026 through 2029, with a mine life expected to extend well into the 2030s.

Strong Financial Position & Liquidity: On June 30, 2025, the company had cash and cash equivalents of $308 million and working capital of $19 million. The full amount of its $800 million revolving credit facility remains undrawn.

BTG’s total debt-to-capital ratio was at 0.12 as of June 30, 2025. It remains lower than the Eldorado Gold’s 0.22 and IAMGOLD’s 0.24.

Backed by its strong financial position, BTG continues to invest in maximizing production at its existing mines, advancing development and exploration projects and investing in junior exploration companies.

Update on the Gramolate Project: On July 14, 2025, B2Gold announced positive Feasibility Study results on its 100% owned Gramalote Project. It indicates an initial life of the project of 13 years, with an average annual production of 227,000 ounces over the first five years.

BTG Offers Industry-Leading Dividend Yield

BTG’s 2.07% dividend yield is higher than the industry’s 1.21%. The company has a payout ratio of 33%.

BTG’s Valuation is Attractive

B2Gold is trading at a forward price/earnings of 6.58X, lower than the industry's average of 13.49X. 

IAMGOLD and Eldorado Gold are trading higher, at 7.82X and 9.21X, respectively.

BTG's 2025 Earnings Show Upside, Growth to Slow in 2026

The Zacks Consensus Estimate for BTG’s 2025 and 2026 earnings has moved up in the past 60 days.

The estimate for 2025 earnings indicates 262.5% year-over-year, fueled by the rally in gold prices and production numbers. The earnings estimate for 2026 shows growth of 2.7%.

How Should You Play BTG Stock Now?

While the expected rally in gold prices will boost B2Gold’s results substantially this year, the cooldown in growth for the next year does not look that promising. However, considering B2Gold’s solid growth projects, operational execution and industry-leading dividend yield, investors who already own it should retain it in their portfolio. BTG currently carries a Zacks Rank #3 (Hold).  

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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