Management said it is “almost an inevitability” that gold will continue to rise in price, given ongoing economic uncertainty and fears of inflation driven by government spending.The company CEO speculates that gold prices of $2,000 to $2,500 an ounce are possible “within a couple of years.”
More importantly the company raised it's dividend following in the footsteps of Newmont Mining (NYSE:NEM). Yamana boosted its quarterly dividend by 5 cents a share, taking the company’s dividend to 20 cents a share. The current yield at Yamana is 1.2% compared with the 2.2% dividend yield of the S&P.
Yamana is a favorite gold mining stock holding of hedge fund manager Eric Sprott of Sprott Asset Management.