Post says fund managers like B2Gold's growth prospects

2014-02-14 07:59 ET - In the News

The Financial Post reports in its Friday edition that Kevin MacLean and Jon Case at Sentry Investments say buy B2Gold (recently $2.96). The Post's Jonathan Ratner, writing in Buy & Sell, says the fund managers recently added to their existing B2Gold position in the Sentry Precious Metals Growth Fund. Mr. MacLean and Mr. Case like B2Gold's growth prospects as it is building a new mine using the cash flow generated from producing 400,000 ounces per year with costs below $1,000/ounce. "Companies that can grow within their own cash flow are exactly what we're looking for," Mr. Case said. "When that new mine is completed next year, you're going to see free cash flow ramp up dramatically." The managers believe B2Gold can generate roughly $200-million in annual cash flow starting around 2016. Mr. MacLean and Mr. Case figure B2Gold's biggest risk is political because its core assets are in the Philippines and Nicaragua. As can be expected, the Sentry Precious Metals Growth Fund has struggled recently, with a one-year performance of negative 37.76 per cent, but the pair are positioning the fund for a rebound. Mr. MacLean points to the fund's success with Semafo, Fortuna Silver Mines and Klondex Mines.