B2Gold Corp.

BTG Details

B2Gold Corp. (NYSE: BTG) is a gold mining company located in Vancouver that operates three gold mines: the Fekola mine in Mali, the Masbate mine in the Philippines, and the Otjikoto mine in Namibia. BTG also has a 50% stake in Columbia'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. It makes the most money from the Fekola mining segment. As of August 20, 2021, the company's market capitalization stood at USD 38.95 billion.

International Arbitration Proceedings against Mali: On June 24, 2021, Menankoto SARL, BTG's Malian subsidiary, formally commenced international arbitration proceedings against Mali under Article 36 of the Convention on the Settlement of Investment Disputes between States and Nationals of other states (ICSID Convention). In early March 2021, Menankoto was informed that the new permit would not be issued. A third company had been awarded new exploration permission encompassing the Menankoto Permit's boundary. Therefore, under the relevant legislation, the company believes it is entitled to permit renewal.

6MFY21 Results: The company reported an 11.79% decline in gold revenues to USD 725.29 million on sales of 402,401 oz of gold at an average price of USD 1,802 /oz during 6MFY21 (ended June 30, 2021) compared to USD 822.24 million on sales of 496,600 oz of gold at an average price of USD 1,656 /oz during 6MFY20. Total gold production of 211,612 oz and consolidated production of 197,380 oz in Q2FY21 were both 5% above budget. However, BTG witnessed a decline in net income to USD 172.81 million during 6MFY21 vs. USD 220.97 million during 6MFY20. 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.

Key Risks: In FY20, FY19, and FY18, the company's gold output from the Fekola mines accounted for 59.81%, 46.50%, and 46.04% of total gold production, respectively posing a high mining concentration risk. Any negative occurrence connected to the Fekola mine might significantly impact the company's operating and financial health.

FY21 Production Guidance by Mine (Source: Company Presentation, March 2021)

Outlook: BTG expects total gold output of 970 - 1,030 Koz in FY21, with cash operating expenses ranging from USD 500 - 540 /oz. The business expects to earn over USD 1.7 billion in revenue in FY21, assuming an average gold price of USD 1,800 /oz. BTG expects its operating cash flows to reach about USD 630 million in FY21.

Valuation: 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 share price decreased by 42.48% in the past 12 months and made a fresh 52-week low today. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 34.27. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 4.44. Considering the significant correction in the stock price, fluctuation in gold prices, growth potential, and current valuation, we recommend a "Buy" rating on the stock at the closing price of USD 3.67, down 0.54% as of August 20, 2021.

*All forecasted figures and Industry Information have been taken from REFINITIV.

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

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

Alteryx, Inc.

AYX Details

Alteryx, Inc. (NYSE: AYX) develops self-service data analytics platforms. The Alteryx APA software platform combines analytics, data science, and business process automation into a single self-service platform to help businesses accelerate digital transformation, enhance business outcomes, and increase worker efficiency. AYX had over 7,400 customers in over 90 countries as of June 30, 2021, including 770 Global 2000 businesses. It generates revenue by selling a subscription-based software platform and providing professional services like training and consulting.

Gaining the Snowflake Elite Partner Status: AYX announced on July 30, 2021, that it earned the Elite Technology Partner accreditation in the Snowflake Partner Network. By delivering uniform analytics for knowledge workers throughout an enterprise, AYX accelerates value from Snowflake, a data cloud provider, to business users.

Expanding Strategic Relationship with PwC: On July 29, 2021, AYX announced the worldwide extension of its partnership with PricewaterhouseCoopers (PwC) to assist businesses in the Asia-Pacific and Europe, the Middle East, and Africa (EMEA) regions, and the partnership has since extended to include nations across the Americas, Asia-Pacific, and Europe.

6MFY21 Results: The company reported a 16.46% rise in total revenue to USD 238.83 million during 6MFY21 (ended June 30, 2021) compared to USD 205.06 million during 6MFY20, due to increased post-contract support (PCS) and service revenues. However, AYX reported an increase in net losses to USD 84.10 million during 6MFY21 vs. USD 50.77 million during 6MFY20, resulting from an increase in operating expenses. As of June 30, 2021, its cash and cash equivalents (including short-term investments) were USD 661.88 million, with a total debt of USD 746.43 million.

World-wide Customer Base (Source: Investor Presentation, Q2FY21)

Key Risks: Each share of AYX's Class B common stock has ten votes as opposed to 1 vote per Class A common stock. As a result, as of June 30, 2021, Class B common stockholders, including the company's executive officers, directors, and holders of more than 5% of its common stock and their affiliates, together held a substantial majority of the voting power. This concentration of voting power constrains the ability of other shareholders to influence corporate matters.

Outlook: As of August 03, 2021, AYX expects its revenue for Q3FY21 to range between USD 121.0 – 124.0 million with annual recurring revenue (ARR) ranging from USD 572.0 – 575.0 million. Non-GAAP loss from operations is expected to be around USD 14.0 – 17.0 million.

Its FY21 revenue estimates range between USD 520.0 – 530.0 million, with an ARR of around USD 635.0 million as of December 31, 2021. Non-GAAP loss from operations is expected to range from USD 5.0 – 15.0 million.

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.

AYX Daily Technical Chart (Source: REFINITIV)

Stock Recommendation: AYX's share price declined 39.49% in the past nine months and is currently leaning towards the lower-band of the 52-week range of USD 66.66 to USD 154.83. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 39.87. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 86.07. Considering the company's track record, partnership extension agreements, international expansion, current valuation, and associated risks, we recommend a "Buy" rating on the stock at the closing price of USD 70.80, up 1.14% as of August 20, 2021.

*All forecasted figures and Industry Information have been taken from REFINITIV.

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

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

Disclaimer

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