Stifel Canada on Thursday reiterated its buy rating on the shares of B2Gold (BTO.TO) and its C$11.50 price target following the company's third-quarter results.

"Impact: Negative from lower Q3 CFPS vs Street expectations, lower Goose guidance, and Fekola Regional permit delay. Although Q3 production was in-line with our forecast, cash flow generation was below Street expectations, which we attribute to cash-taxes and higher capex. Beyond Q3 results, we expect the market to react negatively to Goose guidance revision due to growing pains of a new mine ramp-up, along with delay on the Fekola Regional permit which BTO now expects before year-end. We recognize that investors are currently hyper-focused on news coming from West Africa (BTO shares have underperformed the GDXJ by >17% in the last 8-trading-days); however, Fekola is operating unaffected, the U.S. Embassy in Mali is not closed, and yesterday, U.S. Deputy Secretary of State provided an encouraging message (per social media post) after a conversation with Mali's Foreign Minister. BTO trades at 0.5x LT P/NAV; 3-year forward spot FCF yield of 30%," analyst Ingrid Rico wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 5.41, Change: -0.29, Percent Change: -5.09