A news release issued by Yamana Gold Incorporated today may be of interest to you as the company increased both proven and probable reserves as stated below:
proven and probable gold reserves increased to 19.4 million ounces as of December 31, 2008. Total new discovered proven and probable gold reserves totaled 2.5 million ounces in 2008. With approximately 1.0 million ounces having been mined in 2008, net gold reserves increased by approximately 1.5 million ounces, representing a net increase of eight percent. Total measured and indicated gold resources increased significantly to 15.7 million ounces, up 22 percent from 12.9 million ounces a year earlier. Approximately 7.9 million new ounces of gold were added across all categories before production, which exceeds the Company's previous expectation of 7.0 million new ounces. Discovery costs for proven and probable plus measured and indicated gold ounces were approximately US$12.00 per gold ounce which compares well to the industry average.
Yamana was trading at the $4.00 level back in November 2008 so it is good to see that it has doubled since then and closed today at $8.04. We expect Yamana to do well as and when gold prices make a challenge and beat their historic highs in US dollar terms. However in the short term gold producing stocks appear to remain under the spell of the DOW and are less influenced by gold prices at the moment. The US dollar remains strong so we think that Yamana will take a breather for now.
Yamana Gold has a market capitalization of $5.90 billion, a P/E ratio of 18.45, with 733.49 shares outstanding and closed yesterday at $8.04.
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, giving it lots of exposure to investors.
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