Comprehensive Strategic Analysis of B2Gold Mining Corporation

This report provides a comprehensive strategic analysis of B2Gold, a Canadian gold mining company. It begins with an overview of B2Gold's evolution, including key milestones such as its IPO and acquisitions. The customer profile section identifies the company's target market, primarily jewelry stores and banks, and analyzes their purchasing motivations and demographics. The report then examines B2Gold's corporate, business, functional, and international strategies, including its focus on market needs and customer preferences. A detailed financial profile follows, assessing the company's liquidity, solvency, and profitability ratios, highlighting areas of strength and weakness. The operating model is then analyzed, focusing on resources, value drivers, and cost drivers. The report concludes with insights into B2Gold's financial health, customer focus, and the need for strategic adjustments to enhance profitability and market position. The analysis is supported by financial data and industry insights.

STRATEGIC ANALYSIS

Table of Contents
Overview..........................................................................................................................................3
Customer Profile..............................................................................................................................3
Company Strategy...........................................................................................................................5
Financial Profile...............................................................................................................................6
Operating Model..............................................................................................................................8
Company Conclusions.....................................................................................................................9
References......................................................................................................................................10

Overview
B2 Gold is a Canadian company which is a gold mining company which is based in
Vancouver, British Columbia. The company was founded in the year 2007 and the key
milestones in their evolution started when the company was listed on the Toronto Venture
Exchange, which raised $100 million in its IPO. In the year 2009, it bought the Central Sun
mining and acquired La Libertad mine in Nicaragua. Further, the company also bought CGA
mining an Australian Gold Miner for $1.1 billion. The overall mines that are acquired by the B2
gold were five major mines with an annual production of 631000 ounces (B2. Gold Overview,
2019).
Customer Profile
The B2 Gold Company is famous for its business in gold and the company is from
Vancouver. The company does its major mining's from Mali, Philippines, and Namibia, etc. The
company does its sales majorly by exporting their products as well they also have their clients
which they deal with. As the company has five different gold mines which produce tonnes of
gold every year, to clear the gold mined the company aims to export their products all over the in
bulk quantities (B2, Gold News, 2019). The company aims to reduce the cost of production and
to improve sales in the market. Their biggest customers are the jewelry stores and the banks who
wish to keep some amount of gold as their reserves. Various jewelry stores which not only deal
in Canada as well as in the different parts of the world are the biggest customers of the B2 Gold
Company (B2. Gold-Vision, 2018).

The company persists of a wide demographic profile where the people of all age groups,
overall there are 5242 employees out of which 13% are female and 22% is covered by senior
citizens further 97% of the employment is through a local community of Canada have easier
access of work. As the company is performing its business operations all around the people of
different countries were also employed to have easier access to the markets of their respective
countries. The real GDP growth forecast states that 13.4% of the GDP has been acquired by the
mining sector of Canada, further in the year 2020 it is expected to fall yet mining sector is
contributing a major part in the Canadian economy. The company is also contributing and
focusing on protecting the environment by reducing the carbon footprints, management of the
environment and the support of local communities making the decisions (B2. Gold
Responsibility, 2018). B2 Gold also follows the code of ethics and conduct and also takes care of
the needs of the stakeholders to protect the environment. One of the basic motivations of the
customers to purchase the amount of gold is to increase their investment in gold and to earn more
and more profits as well as to use gold as jewelry (B2. Gold, 2018).

Company Strategy
The strategy of the company is to enhance and successfully explore and acquire of
development stage with the precious metals and the properties. The company follows different
strategies according to the different aspects and the area.
Corporate Strategies: The corporate strategy In terms of the corporate strategies the business is
committed towards the conservation of biodiversity with the assistance of integrated planning.
The corporate structure of the company includes a wide variety of the departments and the
employees associated with them (Sykora. 2019).
Business: The business-level strategies are the strategies that are bifurcated into the three major
parameters which are cost leadership, differentiation and the focus on the market. Amongst the
three the main strategy that has been followed by the company is the focus of the market. Since
the cost of digging the gold is high and the differentiation is possible at its least, B2 Gold focuses
on the needs and the preferences of the customers (Nangolo, 2018).

Functional: In terms of the functional approach B2 gold focuses on the effectiveness of the
operations. The B2 Gold manufactures the gold with the help of the mining site. The marketing
of gold is done with the help of the outlets in Canada. The management of the material is done
with the help of the team of the wide range of experts. The research and the development
department of the B2 Gold Company allow the company (Cuffe, 2017).
International: In terms of the international strategy the, the B2 gold has a wide range of the
opportunities to expand the business in the gulf and the South East Asian countries, where the
gold mines are easily available and the cost of the manufacturing is low.
Financial Profile
The financial position of the B2 Gold Company tends to depict the overall position of the
company with the help of the ratio analysis. The ratios have been analyzed based on the different
parameters such as profitability, efficiency, liquidity, and solvency to have an in-depth
understanding.
Liquidity Ratios 2018 2018
Current Ratio Current Assets 363031 1.75
Current Liabilities 207250
Quick Ratio Quick Assets 129060 0.62
Current Liabilities 207250
The liquidity position of the company depicts the current ratio at 1.75 as well as the quick
ratio at 0.62. Ideally, the current ratio stands at 2:1 whereas the quick ratio tends to be 0.62. The
current ratio depicts the ability of the company to make the debt payments, however, the current
liabilities have decreased in comparison from the previous year. The quick ratio which is also

known as the acid test ratio is only 0.62 which needs immediate improvement (Morning Star,
2018).
Solvency ratios 2018 2018
Debt to Equity Debt 454527 0.28
Equity 1610947
Times interest coverage ratio EBIT 160959 5.07
Interest Expense 31754
Debt to Total Assets Debt 454527 0.18
Total Assets 2547804
The solvency position of the B2 Gold is a balance as the ability of the company to pay
back the interest and finance costs. The debt to the total assets of the company is again depicting
the smooth position of the company, by financing the assets with the help of the equity. Overall
when observed the solvency position of the company is sound and the company can take more
initiatives to run the business efficiently (B2, Gold Company, 2019).
Profitability 2018 2018
Net Profit Net income 28938 2.36%
Net sales 1225061
Return on Equity Net income 28938 1.80%
Net Equity 1610947
Operating profit margin Operating profit 171943 14%
Net sales 1225061
Total Asset turnover Net Sales 1225061 0.47
Average total Assets 2616480.5
The profitability ratios of the company determine the ability to generate enough profits
that are made available to the shareholders. The net profit ratio of the company is 2.36%
concerning the sales of 2.36%. The investors look for the net profit ratio to derive the share of

the profits that are available to them after the payment of all the expenses. The net profit is too
shallow for the company. The return on equity, on the other hand, is the ratio which determines
the share left for the shareholders. The shareholders are getting a return of only 1.80% and this is
a critical situation for the company and the company must take necessary steps to bring the
company back in the position. The operating margin is still better at 14% but that alone cannot
make the performance of the company smooth, hence, the company needs to review its policies
and the procedures. One of the ways to bring back the profit is to diversify the product and cut
out the selling and administrative expenses by 10%. The overall financial health of the company
is not satisfactory.
Operating Model
Operating model of any company is the visual representation that derives the presentation
of how the company is operating is business with what variety of the resources such as the cost
drivers and the value drivers. From the graph, it can be observed that the B2 Gold company's
model in terms of the mines owned by it from the period of 2012 to 2018.

With the assistance of Caliber and the consolidated Nicaraguan supervisory crew
concentrating on the El Limon and La Libertad mines and different chances, B2Gold will
concentrate on proceeding to improve capable creation at our other existing mines in Mali,
Namibia and the Philippines just as propelling our amazing pipeline of advancement and
investigation ventures, as described president and CEO of B2Gold."Likewise, B2Gold will keep
on pursuing extra Greenfield and propelled investigation openings (Cuffe, 2017).
Company Conclusions
From the overall analysis of the company, it can be stated that the overall financial health
of the company is smooth and sound. The overall needs and the preferences of the customers and
the stakeholders are taking into consideration. This business sector has a huge impact on any
other sector as well and it moves up and down in the overall economy of Canada. Hence, to
maintain the market share and consistency in the business the B2 Gold company needs to
manage the assets wisely and the work on the weaknesses effectively. From the overall analysis
it can be stated that the financially the company is not that string and the company needs to dwell
itself with the hard core rules to bring back the company on the right platform. The

References
Andrews, M. (2019). B2Gold not fussed at M&A. Australia's Paydirt, 1(269), 62.
B2, Gold Company, (2019). Annual Report. Retrieved from
https://www.b2gold.com/_resources/financials/Final-FS-as-filed-on-SEDAR-Q4-
2017.pdf
B2, Gold News, (2019). B2Gold and Calibre Mining Join Forces in Nicaragua - Calibre Mining
to Acquire El Limon and La Libertad Gold Mines - B2Gold to Become Calibre's Largest
Shareholder. Retrieved from https://www.b2gold.com/news/2019/index.php?
content_id=795
B2. Gold Overview, (2019). Overview. Retrieved from https://www.b2gold.com/corporate/about/
B2. Gold responsibility, (2018). Responsible Mining Report. Retrieved from
https://www.b2gold.com/corporate/responsible-mining-report/
B2. Gold Vision, (2018). Vision & Values. Retrieved from
https://www.b2gold.com/corporate/vision_values/
B2. Gold, (2018). Corporate Social Responsibility. Retrieved from
https://www.b2gold.com/corporate-responsibility/
Cuffe, S. (2017). Nicaragua's Golden Rule? As Nicaragua's government doubles down on
transnational gold extraction, the stage is set for grassroots resistance. NACLA Report on
the Americas, 49(4), 436-440.

Morning Star, (2018). Financials. Retrieved from http://financials.morningstar.com/balance-
sheet/bs.html?t=BTG&region=usa&culture=en-US
Nangolo, E. K. (2018). An analysis on creating a balance between economic transformation and
investment in Namibia's mining industry (Doctoral dissertation, University of Cape
Town).
Sykora. A., (2019). B2Gold To Sell Nicaraguan Mines To Calibre, Become Biggest Shareholder.
Retrieved from https://www.kitco.com/news/2019-07-02/B2Gold-To-Sell-Nicaraguan-
Mines-To-Calibre-Become-Biggest-Shareholder.html