B2Gold Corp.

BTG Details

B2Gold Corp. (NYSE: BTG) is a Canada-based gold mining company that operates three gold mines: the Fekola mine in Mali, the Masbate mine in the Philippines, and the Otjikoto mine in Namibia. It also has a 50% stake in Colombia's Gramalote project and an 81% stake in Burkina Faso's Kiaka project. Mali, Burkina Faso, Namibia, Uzbekistan, and Finland are among the company's other exploratory regions. As of October 01, 2021, the company's market capitalization stood at USD 3.60 billion.

Payment of Dividend: On September 14, 2021, BTG declared a quarterly dividend of USD 0.04 per common share, paid on September 29, 2021 (initially payable on September 30, 2021) to shareholders of record on September 22, 2021, equating to USD 0.16 per share on an annual basis.

Q2FY21 Results: The company reported a 17.86% decline in gold revenue to USD 362.99 million in Q2FY21 (ended June 30, 2021) compared to USD 441.94 million in Q2FY20, attributable to a decline in sales volume partially offset by favorable pricing. In Q2FY21, total gold production of 211,612 oz and consolidated production of 197,380 oz both exceeded the budget by 5%. Net income for Q2FY21 decreased to USD 68.46 million from USD 124.45 million reported in Q2FY20. As of June 30, 2021, the company had cash and cash equivalents of USD 382.14 million, with a total debt of USD 93.52 million.

FY21 Production Guidance by Mine (Source: Corporate Presentation, September 2021)

Key Risks: Prices of gold and other metals on the global market, which are highly volatile and uncontrollable, significantly impact BTG's business. Hence, any unfavorable movement in their prices could negatively impact its financials. In addition, BTG's principal assets are located in Canada, Mali, the Philippines, Namibia, Colombia, and Burkina Faso, thus making it vulnerable to exchange rate fluctuations. Therefore, any unfavorable movement in the exchange rates could harm the company's financials.

Outlook:

FY21 Consolidated Guidance (Source: Corporate Presentation, September 2021)

Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

BTG Daily Technical Chart (Source: REFINITIV)

Stock Recommendation: BTG's stock price decreased 39.46% in the past nine months and is currently leaning towards the lower band of its 52-week range of USD 3.30 to USD 7.14. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 35.66. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 4.27. Considering the significant correction in the stock price, strong balance sheet, current valuation, and associated risks, we recommend a "Buy" rating on the stock at the closing price of USD 3.39, down 0.88% as of October 01, 2021.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached. 

Bandwidth Inc.

BAND Details

Bandwidth Inc. (NASDAQ: BAND) operates as a global enterprise cloud communications company. It provides communications platform-as-a-service (CPaaS), allowing businesses to develop, scale, and operate voice and text communications services across any mobile app, connected device, or enterprise. Companies such as Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use BAND's APIs to embed voice, text messaging, and emergency services to their software and applications. The US represented 88.60% of BAND's total revenue in Q2FY21.

Adding Value for Zoom's Customers: On September 15, 2021, BAND partnered with Zoom phone provider exchange as a charter member, providing a "Bring Your Own Carrier" (BYOC) solution to Zoom's enterprise customers. BAND offers more choices and flexibility to customers when transitioning to the cloud with Zoom. 

Empowering PropTech Companies: On September 09, 2021, BAND announced that several innovative property technology (PropTech) companies have chosen BAND's messaging and communications platform to eliminate friction and improve the customer experience in the critical steps of a real estate transaction. BAND platform allows PropTech companies to increase communications without needing a deep understanding of telecom industry rules and standards.

Q2FY21 Results: The company reported YoY growth of 57.13% in total revenues to USD 120.66 million in Q2FY21 (ended June 30, 2021) from USD 76.79 million in Q2FY20, primarily due to the acquisition of Voxbone S.A. and increased demand for all CPaaS services. CPaaS segment, which accounted for 87.06% of the total revenue in Q2FY21, reported YoY growth of 56.60%. In Q2FY21, BAND's active CPaaS customers surged by 60.58% YoY to 3,051 vs. 1,900 in Q2FY20. As a result, net loss for Q2FY21 reduced to USD 6.93 million from USD 20.64 million in Q2FY20. As of June 30, 2021, the company had cash and cash equivalents of USD 309.62 million and total debt of USD 472.47 million.

Key Risks: In Q2FY21, the top 10 enterprise clients contributed the majority of BAND's revenue. The loss of any of these key customers could harm the company's financials. Furthermore, BAND operates in the cloud communications industry and competes directly with more prominent players with higher financial and operational resources at their disposal. As a result, any advanced innovation or superior product development by competitors could have a negative impact on the company's operations.

Outlook: In Q3FY21, BAND anticipates generating revenue in the range of USD 123.6 – 124.6 million, with CPaaS revenue ranging between USD 106.1 – 107.1 million. It also forecasts its non-GAAP EPS to the tune of USD 0.07 – 0.09. For FY21, BAND expects clocking revenue in the range of USD 484.8 – 486.8 million, comprising CPaaS revenue of USD 418.4 – 420.4 million. In FY21, non-GAAP EPS is expected to be around USD 0.71 – 0.75.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

 (Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

BAND Daily Technical Chart (Source: REFINITIV)

Stock Recommendation: BAND's stock price decreased 36.53% in the past three months and is currently leaning towards the lower band of its 52-week range of USD 86.41 to USD 198.61. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 24.46. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 110.09. Considering the significant correction in stock price, a surge in top-line, positive outlook, and associated risks, we recommend a "Buy" rating on the stock at the current price of USD 87.39, down 3.20% as of October 01, 2021, 10:54 AM ET.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.