Where B2Gold Corp (NYSEMKT:BTG) Is Heading?

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B2Gold Corp (NYSEMKT:BTG)’s stock movement echoed the broader market weakness in the gold prices. The higher gains in equities coupled with the Federal Reserve Chair Janet Yellen’s comments sent the prices of yellow metal down.

Gold prices slide

The gold prices have been witnessing pressure over the last few weeks as investors’ appetite for the yellow metal appears diminishing in the wake of the expectations of interest rake hike by the Fed. Gold is likely to have a tough journey after the rate hike as the metal is incompetent to stand against yield-bearing assets like Treasury bonds.

Moreover, the market anticipation for the European Central Bank to further accelerate its stimulus efforts has also added to the weakness to gold prices across the globe. The divergence in monetary take of the two big economies, the U.S. and Europe, is believed to boost dollar while hurting the gold prices.

Earnings and costs

Meanwhile, market experts see the possibility of interest rate hike as inevitable. Such beliefs along with the strong equity markets are only indicative of the weakening of gold prices ahead. B2Gold Corp (NYSEMKT:BTG) had published its third quarter results last month. Despite the odds and weakening in the gold prices, the gold producer managed to report the earnings per share in line with the market consensus at $0.00. The revenues of the company came 21.2% higher at $139.25 million, which surpassed the analysts’ expectations by $1.22 million.

The company assured that it is on track to achieve its lower end 2015 production guidance. As per which, the company is expected to produce in between 500,000 and 540,000 ounces of golds. Further, the company is targeting to meet 2015 cost guidance of $630-$650 per ounce.

The stock of B2Gold Corp (NYSEMKT:BTG) ended the previous session 1.74% lower at $1.13.

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