B2Gold Corp reports 114% Net Income growth in 2020 and 11.0 pp EBITDA Margin growth from 65.6% to 76.6%
23.02.2021 • About B2Gold Corp (
$BTO) • By InTwits
B2Gold Corp reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- B2Gold Corp is a fast growth stock: 2020 revenue growth was 54.8%, 5 year revenue CAGR was 26.4% at 2020 ROIC 37.6%
- EBITDA Margin is expanding: 76.6% in 2020 vs. 65.6% in 2019 vs. 43.7% in 2016
- B2Gold Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 35.3%. At the same time it's a lot of higher than industry average of 22.7%.
- CAPEX is quite volatile: $44m in 2020, $44m in 2019, $28m in 2018, $13m in 2017, $8m in 2016
- The company has highly profitable business model: ROIC is 37.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
B2Gold Corp's Revenue jumped on 54.8%. Revenue growth showed acceleration in 20Q4 - it increased 73.8% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.7 pp from 15.3% to 10.7% in 2020. EBITDA Margin grew at 9.2 pp per annum in the last 5 years.
Gross Margin surged on 14.6 pp from 39.0% to 53.6% in 2020. During 2016-2020 Gross Margin bottomed in 2017 at 23.5% and was growing since that time. SG&A as a % of Revenue decreased on 2.2 pp from 4.7% to 2.5% in 2020. SG&A as a % of Revenue stuck to a declining trend at -0.90 pp per annum in 2016-2020.
Net Income margin increased on 9.7 pp from 25.4% to 35.1% in 2020.
Investments (CAPEX, working capital and M&A)
In 2020 the company had CAPEX/Revenue of 19.7%. B2Gold Corp showed big decline in CAPEX/Revenue of 35.7 pp from 55.5% in 2017 to 19.7% in 2020. Average CAPEX/Revenue for the last three years was 21.1%. CAPEX as a % of Revenue stuck to a declining trend at -10.9 pp per annum in 2016-2020.
Return on investment
The company operates at high and attractive ROIC (37.6%) and ROE (27.5%). ROIC jumped on 16.3 pp from 21.3% to 37.6% in 2020. ROE surged on 11.2 pp from 16.3% to 27.5% in 2020.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 0.2x Debt / EBITDA. Debt dropped on 16.0% while cash surged on 241%.
B2Gold Corp has no short term refinancing risk: cash is higher than short term debt (1,406.2%).
Management team
The company's CEO is Clive T Johnson. Clive T Johnson has 14 years tenure with the company. Michael Cinnamond "Mike" is a B2Gold Corp's CFO. Michael Cinnamond "Mike" has spent 6 years at the company.
Financial and operational results
FY ended 31.12.2020
B2Gold Corp ($BTO) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 683 | 639 | 1,051 | 1,156 | 1,789 | 54.8% |
| Gross Profit | 210 | 150 | 381 | 450 | 958 | 112.7% |
| SG&A | 41 | 44 | 51 | 55 | 46 | -16.4% |
| EBITDA | 299 | 248 | 530 | 758 | 1,370 | 80.8% |
| Net Income | 39 | 57 | 29 | 293 | 628 | 114.1% |
Balance Sheet
|
|---|
| Cash | 145 | 147 | 103 | 141 | 480 | 241.2% |
| Short Term Debt | 14 | 303 | 25 | 26 | 34 | 31.0% |
| Long Term Debt | 473 | 400 | 455 | 236 | 186 | -21.2% |
Cash flow
|
|---|
| Capex | 394 | 354 | 222 | 261 | 353 | 35.0% |
Ratios
|
|---|
| Revenue growth | 23.4% | -6.5% | 64.6% | 9.9% | 54.8% | |
| EBITDA growth | | -16.9% | 113.7% | 42.9% | 80.8% | |
|
|---|
| Gross Margin | 30.7% | 23.5% | 36.2% | 39.0% | 53.6% | 14.6% |
| EBITDA Margin | 43.7% | 38.9% | 50.4% | 65.6% | 76.6% | 11.0% |
| SG&A, % of revenue | 6.0% | 6.8% | 4.9% | 4.7% | 2.5% | -2.2% |
| Net Income Margin | 5.7% | 8.9% | 2.8% | 25.4% | 35.1% | 9.7% |
| CAPEX, % of revenue | 57.7% | 55.5% | 21.1% | 22.6% | 19.7% | -2.9% |
|
|---|
| ROIC | | 4.0% | 12.3% | 21.3% | 37.6% | 16.3% |
| ROE | | 3.8% | 1.8% | 16.3% | 27.5% | 11.2% |
| Net Debt/EBITDA | 1.1x | 2.2x | 0.7x | 0.2x | -0.2x | -0.3x |
B2Gold Corp ($BTO) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 380 | 442 | 487 | 480 | | 44.1% | 65.4% | 56.8% | 73.8% |
| EBITDA | 250 | 287 | 504 | 321 | | 76.7% | 110.9% | 179.1% | 5.0% |
| Net Income | 72 | 124 | 263 | 168 | | 224.2% | 228.3% | 371.4% | -5.0% |
Balance Sheet
|
|---|
| Cash | 208 | 628 | 365 | 480 | | 46.9% | 452.9% | 149.6% | 241.2% |
| Short Term Debt | 25 | 25 | 26 | 34 | | -16.8% | -5.3% | 0.2% | 31.0% |
| Long Term Debt | 209 | 454 | 31 | 186 | | -53.9% | 8.0% | -90.9% | -21.2% |
Ratios
|
|---|
| Gross Margin | 50.6% | 53.9% | 55.8% | 53.4% | | 15.5% | 17.4% | 13.2% | 5.4% |
| EBITDA Margin | 65.7% | 64.9% | 103.5% | 66.9% | | 12.1% | 14.0% | 45.3% | -43.7% |
| Net Income Margin | 19.0% | 28.2% | 54.0% | 35.1% | | 10.6% | 14.0% | 36.0% | -29.2% |
Peers in Basic Materials
Below we provide B2Gold Corp benchmarking against other companies in Basic Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | - | - | - | -13.3% | 127.6% |
| Monument Mining Ltd ($MMY) | - | -33.4% | 22.5% | 9.1% | 42.8% |
| Rochester Resources Ltd ($RCT) | - | 0.0% | 16.7% | -19.2% | 13.2% |
| Graphene 3D Lab Inc ($GGG) | - | 43.6% | -21.2% | 8.3% | -1.3% |
| Orbit Garant Drilling Inc ($OGD) | - | 16.4% | 38.3% | -11.7% | -9.8% |
| |
|---|
| Median (6 companies) | 5.7% | 0.0% | 16.7% | -11.7% | 6.0% |
|---|
| B2Gold Corp ($BTO) | - | -6.5% | 64.6% | 9.9% | 54.8% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Monarques Gold Corp ($MQR) | - | - | 4.8% | 13.7% | 61.8% |
| Monument Mining Ltd ($MMY) | 23.4% | 23.7% | 42.3% | 43.9% | 43.2% |
| Graphene 3D Lab Inc ($GGG) | 23.4% | 43.5% | 67.9% | 62.6% | 21.9% |
| Orbit Garant Drilling Inc ($OGD) | 9.5% | 6.4% | 12.4% | 10.7% | 9.4% |
| Rochester Resources Ltd ($RCT) | -43.8% | 2.3% | 15.9% | -18.2% | 1.4% |
| |
|---|
| Median (5 companies) | 23.4% | 15.1% | 15.9% | 13.7% | 21.9% |
|---|
| B2Gold Corp ($BTO) | 30.7% | 23.5% | 36.2% | 39.0% | 53.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | - | - | -28.3% | -12.1% | 63.2% |
| Monument Mining Ltd ($MMY) | 26.6% | -10.7% | 17.9% | 33.8% | 33.6% |
| Orbit Garant Drilling Inc ($OGD) | 10.3% | 2.2% | 8.5% | 5.9% | 6.4% |
| Rochester Resources Ltd ($RCT) | -148.8% | -13.5% | -32.9% | -31.9% | -10.3% |
| Monarques Gold Corp ($MQR) | - | - | - | -3.3% | -49.0% |
| |
|---|
| Median (6 companies) | 22.2% | -13.5% | -30.6% | -12.1% | -2.0% |
|---|
| B2Gold Corp ($BTO) | 43.7% | 38.9% | 50.4% | 65.6% | 76.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Monarques Gold Corp ($MQR) | - | - | 20.8% | 29.9% | 43.9% |
| Monument Mining Ltd ($MMY) | 43.3% | 46.0% | 35.1% | 37.2% | 18.3% |
| Orbit Garant Drilling Inc ($OGD) | 6.1% | 6.2% | 5.0% | 5.4% | 7.6% |
| Rochester Resources Ltd ($RCT) | 5.0% | 4.3% | 2.8% | 3.8% | 2.9% |
| Archon Minerals Ltd ($ACS) | - | - | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (6 companies) | 17.4% | 6.2% | 7.8% | 5.4% | 5.2% |
|---|
| B2Gold Corp ($BTO) | 57.7% | 55.5% | 21.1% | 22.6% | 19.7% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | -111.6% | -20.4% | -3.5% | -1.2% | 13.7% |
| Monument Mining Ltd ($MMY) | 1.0% | -2.6% | -0.4% | 1.2% | 2.0% |
| Orbit Garant Drilling Inc ($OGD) | 0.3% | -7.8% | 6.4% | -1.0% | -2.4% |
| Teras Resources Inc ($TRA) | -2.9% | -3.4% | -3.3% | -3.9% | -3.1% |
| Cadillac Ventures Inc ($CDC) | -2.9% | -3.6% | -2.5% | -2.5% | -3.6% |
| |
|---|
| Median (35 companies) | 1.0% | -27.8% | -43.3% | -39.1% | -21.4% |
|---|
| B2Gold Corp ($BTO) | - | 4.0% | 12.3% | 21.3% | 37.6% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | - | - | - | - | 7.6x |
| Orbit Garant Drilling Inc ($OGD) | 0.6x | 5.7x | 1.0x | 3.0x | 4.1x |
| Monument Mining Ltd ($MMY) | -3.3x | - | -4.4x | -1.3x | -1.0x |
| |
|---|
| Median (3 companies) | 0.6x | 5.7x | -1.7x | 0.8x | 4.1x |
|---|
| B2Gold Corp ($BTO) | 1.1x | 2.2x | 0.7x | 0.2x | -0.2x |
