Managing Partner, VRS (Valuation & Research Specialists)

VRS (Valuation & Research Specialists)

Financial analyst specializing on corporate valuation. Long-term experience in analyzing and valuing listed and non listed companies in a wide range of business sectors in Europe, North America and internationally. Some of the sectors covered are financial services, industrials, high technology and real estate. Certified Equity Analyst by the Hellenic Capital Market Commission, Greece. Member of the Hellenic Association of Certified Securities Analysts (HACSA), Greece. Associate Member of the Chartered Institute for Securities & Investment (CISI), UK.

Specialties: Applying methods in corporate valuation, developing valuation models and writing equity research and valuation reports. Consulting services to companies with regard to their valuation drivers and potential corporate value, utilized in corporate deals such as mergers, acquisitions and sale of businesses. Specialized financial translations.

Managing Partner

Valuation & Research Specialists (VRS) is a boutique financial advisor with more than 17 years of experience in Corporate Valuation and Finance, and a diversified client base including some of the largest Companies in Greece.

Since 2002, VRS has completed more than 200 engagements in the areas of business valuation and financial analysis for more than 100 clients in a wide range of industries.

VRS has been honored to work with small and large private and publicly traded companies in Europe and overseas.

Boutique Financial Advisor

Equity Bottom-Up

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<h2>B2GOLD CORP.</h2>
<h3>Equity Research Flash Note</h3>
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<h3>Corporate &amp; Investment Highlights</h3>
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<li>B2Gold’s revenues for 2020 increased to $1,789 mn recording a major percentage hike of 54.80% compared to the revenues of 2019. All profitability indicators in 2020 (EBITDA, EBIT, EBT, EATAM) followed a similar, even higher, upward trend. Very strong operating performance in terms of total gold ounces produced and high aver- age gold prices in 2021 drive the Company to achieve high profitability. The estimates of revenues for 2021 range around $1,756mn while for the first nine months were $1,236mn.</li>
<li>B2Gold’s revenues come exclusively from the exploitation of its gold mines in Fekola (Mali), Masbate (Philip- pines) and Otjikoto (Namibia), accounting for an amount of 62%, 21% and 17% respectively of 2020 total reve- nues. In 2021 Masbate mine in the Philippines recorded an increase of 36.2% in its first three quarters revenues in comparison with revenues of last year while Fekola mine in Mali and Otjikoto mine in Namibia fell by 14.6% and 15.9% respectively.</li>
<li>EATAMfor2020amountedto$628mncomparedto$293mnof2019.Weexpectfor2021EATAMtodecreaseto $439mn due to increasing mining cost as a repercussion of Covid-19 pandemic, taking also into account that for the first nine months of 2021 EATAM stood at $283mn. For 2022, we expect EATAM to range broadly around $525mn.</li>
<li>Capital Expenditures (Capex) amounted to $354mn in 2020, compared to $316mn in 2019. During the first nine months of 2021 B2Gold has already spent $191mn for that purpose. Our estimates are that Capex for 2021 and 2022 will range around $295mn and $422mn respectively.</li>
<li>B2Gold’s EBITDA for 2020 rapidly increased to $1,352mn from $760mn of 2019. EBITDA reached $757mn for the first nine months of 2021, compared to 1,029mn during the first nine months of 2020. The reason for this downturn is the cost inflationary environment experienced in all mines of the Company. We expect EBITDA to range around $1,155mn for 2021 and $1,301mn for 2022.</li>
<li>Debt amounted to $75.9mn as of December 31st, 2020, compared to $236mn in 2019. More specifically, for 2020, the company’s debt was comprised of lease obligations amounting to $27.2mn (35.8% of the company’s to- tal debt) and equipment loans amounting to $48.7mn (64.2% of the company’s total debt). In the first 9 months of 2021, debt was reduced to $55mn, with lease obligations and equipment loans reaching $25.4mn (46.2% of total debt) and $29.6mn (53.8% of total debt) respectively.</li>
<li>In June 2021, the company begun arbitration proceedings against the Republic of Mali after unsuccessful dis- cussions regarding the renewal of the Menankoto exploration permit. According to the Company, the operations at the Fekola Mine, which is situated on a separate mining license 20 kilometers from the Menankoto Permit, continued its operations normally and have not been impacted by the dispute relating to the Menankoto Permit.</li>
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B2GOLD CORP.
Equity Research Flash Note




Corporate &amp; Investment Highlights

B2Gold’s revenues for 2020 increased to $1,789 mn recording a major percentage hike of 54.80% compared to the revenues of 2019. All profitability indicators in 2020 (EBITDA, EBIT, EBT, EATAM) followed a similar, even higher, upward trend. Very strong operating performance in terms of total gold ounces produced and high aver- age gold prices in 2021 drive the Company to achieve high profitability. The estimates of revenues for 2021 range around $1,756mn while for the first nine months were $1,236mn.
B2Gold’s revenues come exclusively from the exploitation of its gold mines in Fekola (Mali), Masbate (Philip- pines) and Otjikoto (Namibia), accounting for an amount of 62%, 21% and 17% respectively of 2020 total reve- nues. In 2021 Masbate mine in the Philippines recorded an increase of 36.2% in its first three quarters revenues in comparison with revenues of last year while Fekola mine in Mali and Otjikoto mine in Namibia fell by 14.6% and 15.9% respectively.
EATAMfor2020amountedto$628mncomparedto$293mnof2019.Weexpectfor2021EATAMtodecreaseto $439mn due to increasing mining cost as a repercussion of Covid-19 pandemic, taking also into account that for the first nine months of 2021 EATAM stood at $283mn. For 2022, we expect EATAM to range broadly around $525mn.
Capital Expenditures (Capex) amounted to $354mn in 2020, compared to $316mn in 2019. During the first nine months of 2021 B2Gold has already spent $191mn for that purpose. Our estimates are that Capex for 2021 and 2022 will range around $295mn and $422mn respectively.
B2Gold’s EBITDA for 2020 rapidly increased to $1,352mn from $760mn of 2019. EBITDA reached $757mn for the first nine months of 2021, compared to 1,029mn during the first nine months of 2020. The reason for this downturn is the cost inflationary environment experienced in all mines of the Company. We expect EBITDA to range around $1,155mn for 2021 and $1,301mn for 2022.
Debt amounted to $75.9mn as of December 31st, 2020, compared to $236mn in 2019. More specifically, for 2020, the company’s debt was comprised of lease obligations amounting to $27.2mn (35.8% of the company’s to- tal debt) and equipment loans amounting to $48.7mn (64.2% of the company’s total debt). In the first 9 months of 2021, debt was reduced to $55mn, with lease obligations and equipment loans reaching $25.4mn (46.2% of total debt) and $29.6mn (53.8% of total debt) respectively.
In June 2021, the company begun arbitration proceedings against the Republic of Mali after unsuccessful dis- cussions regarding the renewal of the Menankoto exploration permit. According to the Company, the operations at the Fekola Mine, which is situated on a separate mining license 20 kilometers from the Menankoto Permit, continued its operations normally and have not been impacted by the dispute relating to the Menankoto Permit.










B2Gold Corp

B2GOLD CORP: Equity Research Flash Note