Win us with honest trifles

B2Gold (BTO.to) $BTG and its crazy G&A

Seriously The Clive, WTF?


Here’s a chart that maps out the quarterly G&A at B2Gold (BTO.to) (BTG):

For one thing, a G&A that runs at $7m a quarter, i.e. $2m a freakin month, is a nautical mile too high for this size of company. What is this, gold taps in the rest rooms or something? But for another, check out the main reason behind the spike to the staggering $13.094m just reported by BTO in 2q14. We quote directly from the MD&A:

In the six months ended June 30, 2014, G&A expenditures include discretionary cash bonus amounts totalling $3.8 million (Six months ended June 30, 2013 – $3.0 million).

In other words, BTO’s good about filing a $11.5m net loss, of which $3.8m is “discretionary cash bonus amounts”. That translates as “very large cheques for fat cats at the top”, just in case you weren’t aware.
The Clive, you’re taking the piss. Your normal G&A burn is stupidly expensive, your cash bonuses are a direct insult. And you file net losses, too. All this on top of the never-ending insider selling of stock by you and your directors. But Clive, we do agree on one thing; you obviously think the investment community is fucking stupid and permanently ready to be ripped off. The difference is that I don’t act on that obvious conclusion for my own ends.

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