Following the release of its financial and operating results for the second quarter, Yamana Gold Inc. (AUY, Financial) closed Monday at $3.10 per share, rising 1.97%.
The stock is now trading above the 200, 100 and 50-SMA lines and the current share price is just in the middle of the 52-week range of $2.40 to $3.80 per share. The market capitalization is $2.96 billion.
Even though the company is not trading at its lowest prices, the gold miner presents a good opportumity. Its assets are likely to surpass the production of metal estimated for full fiscal 2018.
In the second quarter, the miner delivered 248,177 ounces of gold equivalent, of which 97% is attributable output and 31.1 million pounds of copper. The miner is projecting to exceed 900,000 ounces of gold. That is the level of output the company is predicting to milk from its mines in Chapada and Jacobina in Brazil, Canadian Malartic in Canada, El Peñón and Minera Florida in Chile and Cerro Moro in Argentina.
The Canadian mid-tier gold producer is also forecasting to exceed the total production of metal for the entire year of 2018. The total production of the company includes the output from Gualcamayo in Argentina.
Further catalysts to watch for the remainder of 2018 are nestled in the production of silver and copper. As the company proceeds mining the metal from higher ore grade at El Peñón, the production of the grey metal will increase in the second part of 2018. A big contribution to silver production will also be given by higher output expected at Cerro Moro.
Concerning the production of the red metal, Yamana Gold anticipates going well beyond the initial forecast of 120 million pounds.
The company billed metal customers for $431.5 million, a nearly 1% increase from the comparable of 2017. The quarterly turnover backed an adjusted net profit of 2 cents per share, which was on par with expectations.
In addition, the company closed the second quarter of fiscal 2018 with $114.4 million in cash on hand and securities, with a $765 million line of credit and net debt valued $1.58 billion.
During the quarter, the company realized $1,304 from the sale of one ounce of gold, $16.53 from the sale of one ounce of silver and $3.09 from the sale of one pound of copper.
If the second part of 2018 is positive to commodities, shareholders of Yamana Gold should significantly benefit since the company will likely place higher volumes of metal on the market.
(Disclosure: I have no positions in any security mentioned in this article.)
