Q: With the uptick in gold prices over the last several years,shouldnt BTO being making more progress in profits ,stock price etc.
5i Research Answer:
BTO is still feeling the impacts from lowered production guidance, construction delays in Mali and higher costs. It may take several quarters for investors to be more comfortable with it. The yield is high and the valuation quite attrative, but it essentially remains in the penalty box. It is debt-free with lots of cash, and we think is cheap enough to hold for an eventual recovery. Consensus does call for solid earnings growth in 2025.