Financial Management

You are a newly minted MBA and your boss came to you telling you that he has seen, in the BC Business Magazine (see attached), that a company called B2Gold Corporation (TSX Ticker: BTO) has a market capitalization of $5,750,000,000. Now, your boss is asking you to send her a memo, with the highlights of your analysis of the B2Gold company. You know that your boss, an immigrant himself, has a certain affinity for gold and she would be curious if it is more advantageous to invest in gold (e.g. jewellery) or buy B2Gold Stocks.

Hint: besides ratio analysis and predictions of future cash flows, your task would be greatly facilitated if your analysis would follow the format extensively explained in class (i.e. looking for the "golden nuggets", for the P/E and EPS ratios and comparing these ratios and analyzing the value drivers)

notablynaturalgas,lumberandpulp,globallyandinNorthmetalsandminerals,andsomepartsoftheagrifoodcomplex.Buoyantcom-America-willreducethecontributionofcommoditiesslowereconomicgrowth-TOp came out of the covid recession," Busi- "As we know too well from expefr, ness Council of B.C. senior policy advi- ence, commodity booms come and goa, sor Jock Finlayson and chief economist Continuing to build and diversify BrC. Ken Peacock wrote in a year-end conse ership and innovation of a next generf with a subtle warning, though: "in 2022 , tion of corporate tltans. MARKET CAP notablynaturalgas,lumberandpulp,globallyandinNorthmetalsandminerals,andsomepartsoftheagrifoodcomplex.Buoyantcom-America-willreducethecontributionofcommoditiesslowereconomicgrowth-TOp came out of the covid recession," Busi- "As we know too well from expefr, ness Council of B.C. senior policy advi- ence, commodity booms come and goa, sor Jock Finlayson and chief economist Continuing to build and diversify BrC. Ken Peacock wrote in a year-end conse ership and innovation of a next generf with a subtle warning, though: "in 2022 , tion of corporate tltans. MARKET CAP