|New Threads Only:|
|New Threads & Replies:|
Forum List » Value Ideas and Strategies|
Share and discuss value investing ideas and investing strategies.
Yamana Gold Is the Go-To Gold Stock
Posted by: matsandalex (IP Logged)
Date: November 1, 2012 11:27AM
Yamana Gold (AUY) recently reported earnings that were well ahead of expectations. Third quarter earnings have been a disappointment for much of the market including tech, yet gold stocks have been able to buck the trend.
"Yamana hit record gold equivalent production in the third quarter totaling 310,490 ounces, and 11% increase over the 279,274 gold equivalent ounces produced in the third quarter of 2011. The company produced 266,374 ounces of gold and 2.2 million ounces of silver in the quarter."
What is most impressive is that Yamana has positioned itself as the low-cost gold producer that could be an attractive acquisition target. Cash costs were only $201 in the quarter and the company saw a deceleration in cost inflation. This is most likely due to the fact that base metal companies having been cutting capital expenditures putting some downward pressure on drills and other production tools.
When you factor in high gold prices of $1,479 per gold equivalent ounce you get a company that is poised to generate a lot of cash. The company generated a quarterly record of $612 million in revenues, a 10.3 percent increase over the same period last year.
With a strong growth profile ahead for 2013, the company is likely to be the go-to stock for hedge fund managers looking for gold mining stock exposure.
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.