| | | (Paul I see you held this in the past 3/2010 so thought you might be familiar w/ the company)
Made a small Buy in Yamana Gold (AUY). This is a starter position, never owned it but was looking for another gold miner to add to my stable of gold stocks (GFI & GOLD). I had B2Gold Corp (BTG) on my list but AUY came out w/ earnings (and increased div by 25%) so decided to buy AUY.
AUY has a similar market cap as BTG w/ most of their properties located in Brazil. BTG assets are situated in Nicaragua, Colombia, Namibia and Uruguay. There may/could be political risk owning either of these companies and that was one reason I avoided investing outside US, Canada and Mexico (ie buying Barrick Gold)
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Yamana Gold EPS beats by $0.02, beats on revenue
Apr. 30, 2020 7:21 AM ET|About: Yamana Gold Inc. (AUY)|
Yamana Gold (NYSE: AUY): Q1 Non-GAAP EPS of $0.05 beats by $0.02; GAAP EPS of $0.05 beats by $0.03.
Revenue of $356.5M (-12.4% Y/Y) beats by $4.28M.
Press Release
Yamana lowers its forecast for full-year gold and silver production due to virus-related mining operation suspensions, now expecting 786K oz. of gold and 10.3M oz. of silver from previous guidance of 857K oz. gold and 11.5M oz. silver.
The miner expects the resumption of normal operations during H2, with the new H2 production percentage amounting to 55% of the annual total.
Meanwhile, the miner anticipates better cash flow and margins partly due to stronger gold prices.
Yamana says Q1 net free cash flow was $91.1M, exceeding the average of the past four quarters by 14%.
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2021 estimates could be as high as $0.47/share w/ consensus of $0.25/share Based on the consensus, PE is 18 but if the high end target is reached (w/ higher gold prices) could see a 10 PE.
dividend yield of 1.3%
Yamana Gold (NYSE: AUY) declares $0.015625/share quarterly dividend, 25% increase from prior dividend of $0.0125.
Forward yield 1.32%
Payable July 14; for shareholders of record June 30; ex-div June 29.
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I sold 50% of my HL (bought 8/2019 @ $1.55/share) at $2.62/share and plan to move the proceeds into AUY and/or BTG. My first buy was in AUY @ $4.67/share.
The value proposition is to acquire shares in a dividend gold miner that has potential for growth (I am anticipating higher gold prices perhaps to $3K/oz based on a April 21, 2020 BofA analyst report)
AUY can be a low cost producer since (1) wages in Brazil lower than US and (2) fuel prices at multi year lows largest expense in mining. BTG has similar prospect so have them on watch list too.
EKS |
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