Shares of B2Gold Corp. (BTG) were trading higher Tuesday, advancing as much as 3.6% to a session high of 2.88 after the Vancouver-based natural resources company received an upgrade from analysts at Dundee Capital Markets.

On Tuesday, Dundee analyst Ron Stewart raised B2Gold to "buy" from "neutral" and his price target on the stock to $4.50 from $4.25. The analyst applauded the fact that the company not only affirmed its recent forecasts but also said it expects production level to be at the top end of its 2016 guidance for 510,000 to 550,000 ounces in 2016. The company also added that it expects to be at the low end of its cost range of $560 to $595 per ounce range. (See also: Most Profitable Gold Mining Companies of 2016.)

“We have always liked B2 for its liquidity, leverage and low-cost profile; after updating its production profile we are more constructive on valuation,” Stewart said in a research note.

In that regard, while citing spot gold prices, the analyst noted that B2Gold trades at 1.89 times net asset value compared to other international producers that trade at 1.64 times net asset value. Accordingly, "B2Gold’s valuation is again at a reasonable level," the analyst contended.

B2Gold stock closed Tuesday at $2.86. Stewart's price target assumes additional premiums of 57%. Stewart pointed out that the company's production guidance for fiscal 2017 declined some 2.7%. He attributes the decline to lower grades at the company's Otjikoto mine in Namibia.

Stewart, meanwhile, doesn't believe that the guidance shortfall will impact the company’s balance sheet as B2Gold is poised to raise capital. As with other gold producers, shares of B2Gold have been under pressure, falling some 14% over the past month. The shares have risen 180% year-to-date compared with a 4.69% rise in the S&P 500 (SPX) index. (See also: Is Now the Right Time to Buy Gold Mining Stocks?)

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