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« Gold and the US Dollar | Main | Kinross Gold Corporation Up 19.33% today! »

Yamana Gold Incorporated: Performance Comparison and Financial Results

Yamana Chart 07nov08

"The global economy is currently experiencing one of the most unsettled times in recent history. With the severe correction in the capital markets, and illiquidity in the credit markets, a sociopolitical and economic shift of incredible proportions is taking place,"

"In the context of this environment, successful companies will be the ones that are able to maintain flexibility, continue to generate cash flow, preserve capital and maximize cash balances. At Yamana, our goal has consistently been to complement sustainable production growth with increases in cash flow, always with an eye toward preservation of cash.” said Peter Marrone, Chairman and CEO of Yamana Gold.

Yamana’s 52-week high is $19.93 and yesterday this stock closed at $4.67 registering a loss of around 70%. This is really disappointing as we expected Yamana Gold to fare a lot better.

Gold is hanging there at $732.30 and is about 15% down so far this year. However as we can see from the above chart other stocks such as Agnico-Eagle, Kinross Gold, Barrick Gold and Newmont Mining have fared a little better as they are down around the 50% mark. If this is an aberration from the norm then Yamana Gold would be a buy at this level. However the turmoil continues and we are reluctant to put cash on the line at the moment.

Recent highlights of Yamana’s performance are listed below:

Highlights for the three- and nine-month periods ended September 30, 2008 include:

- Total revenue of $247.5 million and $940.5 million respectively.
- Mine operating earnings of $44.4 million (after a non-recurring mark-to-market adjustment and inventory adjustment) and $414.6 million respectively.
- Net earnings of $150.2 million, or $0.21 per share, and $255.4 million, or $0.37 per share respectively.
- Cash flow from operations of $100.2 million, or $0.14 per share, and $414.3 million, or $0.60 per share respectively, before changes in non-cash working capital.
- Adjusted earnings of $31.5 million, or $0.05 per share, and $257.9 million, or $0.38 per share respectively.
- Total production of 235,406 gold equivalent ounces (GEO) and 728,124 GEO respectively.
- Average cash costs after by-product credits of $140 per GEO and $(40) per GEO respectively.
- Copper production of 44.4 million pounds and 130.2 million pounds respectively.
To read the results in full please click this link.

Yamana Gold has a market capitalisation of $3.27 billion, a P/E ratio of 10.72, with 699.21 shares outstanding.

Yamana Gold Incorporated trades as AUY on the New York Stock Exchange and as YRI on Toronto Stock Exchange and as YAU on the London Stock Exchange.

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Reader Comments (3)

I realize that gold prices have dropped. Have the fundamentals changed with in Yamana itself? If you were willing to buy calls an the stock just a few months ago at 12 and 13, and you believe Gold is going to rise. What has changed with in this company that makes you nervous at these levels? I know missing there number last quarter hurt. However, most were missing their numbers. Why is yamana at this price... 70 percent off from your last buy... making you nervous? That certainly doesn't seem like it bodes well fro our Jan. calls

November 7, 2008 | Unregistered CommenterGAry

sorry..not a great typer

November 7, 2008 | Unregistered CommenterGAry

Here we are to informe you, gold people, that im closing out short positions on HL (using a option spread low-risk strategy) with a profit of 45% in less than a week. GLD options short position are down 10% and improving.

I think Gold related securities are now NOT suitable for wealth preservation: only for speculation/directional trading.

November 7, 2008 | Unregistered CommenterChimera

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