B2Gold (BTG) is a Vancouver-based mining company with properties in Africa and the Philippines; the stock was also my Top Pick in 2020 and it rose 40% last year, notes Mark Skousen, editor of Forecasts & Strategies.
The fundamentals are extremely strong, with profit margins of nearly 40% that help to maximize its cash flows. B2Gold has generated $365 million in cash. Long-term debt is small at only $49 million.
B2Gold is the highest-yielding gold mining stock in the industry, yielding nearly 3% — and likely to increase. It expects to produce 1 million ounces of gold in 2020, and should do even better in 2021. Despite a selloff after the election, the fundamentals are still strong.
Revenues, earnings and dividends have all risen sharply in the past year and should have positive results when it reports in February. In my mind, B2Gold is deeply undervalued, selling for less than 10 times earnings.
There is political risk with its largest mine in Mali, Africa (there was a coup last year), but so far it's been manageable, largely because the government is part owner. The stock was up 40% last year but could do even better this year.
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