I don't have an opinion on that specific transaction yet, what I'm saying is since part of the deal was paid in stock, it could have been much worse for Yamana. Only time will tell if it was ultimately a good deal or not. If gold stays that low for another 2-3 years, then I'm sure we can all agree it was a bad deal after all.
Since they paid a good chunk of it with the stock when it was above $7, you could easily argue that they got Osisko on the cheap...
Yes exactly, share price doesn't mean anything. What about splits and reverse splits?
Well guys, check what's happening with Goldcorp and Barrick. Surprise, surprise: major writedowns, and that's only because these two managements decided to be responsible and start cleaning their mess right away. It's the same, or possible even worse, with most PM companies. Also check CDE today, they're in a big mess. I'm really not a pumper, but I'm quite happy to have my main investment money with Yamana when I look at many other miners. Of course, if gold sinks it won't matter how responsible Yamana's management is. Also, that dilution doesn't look so bad after all at CAD$5.40 if it can help us get through the storm eh?
I agree with most of what you're saying but you guys on this board be careful, Yamana is also trading in CAD and the 8.25$ is in CAD, not USD. I see constant confusing here between the two currencies.
... is a total market meltdown. That the artificial support machine gets unplugged. I don't even care if it takes my PM stocks down with it, as this would be only short lived. We live in a big, giant artificial debt bubble and I hope it will burst soon. I want S&P 500 at under 1000, and the Dow at under 5000. That day will come, I just hope I knew when.
What I'd like from them is a quarter with overall profit instead of losses...
I'm certainly not a financial analyst but I'm personally quite satisfied with Yamana's latest results, although there is lot of room for improvement. Regarding write-downs, I know it sucks but I personally believe management is very competent about writing down devaluations right away instead of hiding them under the rug like most miners do. What I believe, and we'll only know if I'm right in the next few years, is that 90% of miners right now under report asset devaluations and shareholders will get a rude awakening when they find out the actual book value of these companies are actually worth 30% less than they believed. Yamana is very acting responsively about this. I think differently about their dividends, and I think they should be abolished. How can you report losses and keep dividends? The only shareholders happy about this are the medium term traders or "investors".
Well, when I wrote this gold was barely above USD$1200. We're still above that level, and oil is still low. Yamana still has its copper hedge at $3 last quarter. I don't think the sky is falling as much as many want to make us believe. The real question now is if Yamana's management will have another Christmas surprise for us. That's the big IF as far as I'm concerned.
I'm not sure what you're smoking but dilution when share price is low is never good. Same as share buyback when stock is very high. Ask Weight Watchers shareholders about that ;-) The reason I am not too worried about the last dilution is that it was no more than 7%, more than that and I'd probably not be long Yamana anymore.
Of course it was an oversimplification. I always laugh when people talk about cash on hand to evaluate what they think share price should be. I heard MCP has some good cash on hand by the way ;-)
Well, it's actually CAD$5.30 if you want to be precise, which was about USD$4.24 at the time the deal closed. The exchange rate is about CAD$1 for USD$0.80...