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Yamana Gold Inc. (AUY)

NYSE - Nasdaq Real Time Price. Currency in USD
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5.0000-0.1000 (-1.96%)
At close: 3:59PM EDT
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  • J
    Jazenevd
    The yield jumped, but it does not affect gold so far. On the other hand, it affects broad market. Change of scenery?
    In any case, mining stocks are one of the best groups to invest in inflationary environment.
  • F
    Fencer
    Gold and miners usually trade down a bit at the beginning during a market correction as profits are taken and weak hands sell. Price then goes up as buyers drive the price up. Question is how long before Gold and mining sector are taken higher as low valuations and high gold prices bring in the herd of risk averse traders who just sold off their tech stocks and need to reposition their portfolio in a inflationary environment. It does not take much to move the mining sector once demand starts to grow.
  • J
    Jazenevd
    Catamarca MARA news
    Detailed article in local press regarding lawsuit filed by Andalgala municipality seeking to stop Agua Rica. The suit is currently in federal court. One of specific demands is to annul agreement allowing using Alumbrera facilities for MARA project.
    The plaintiff also demands court injunction to stop MARA works, enabled in March, until court decision made. The official defendant in the suit is YMAD, mining agency representing Catamarca provincial government.
    So far, the court did not issue any injunctions, it is a good sign for MARA. However, some risk remains as long as the case is open, and, in case anti-mining side loses this case, it will likely open another one. In other words, MARA will always carry some extraneous political/legal risk. On the other hand, the project value is not priced in share price at the moment and so AUY holders have nothing to lose here, while gains can appear in future.
  • J
    Jazenevd
    Kind of nervous day so far, esp. for tech stocks. Gold sector is largely neglected.
  • J
    Jazenevd
    Every market pullback causes two internal quests/complaints in investor minds. First one appears while pullback continues: I bought too early. Second one appears after the same pullback ends: I could buy more. Both items are normal and indicate reasonable investment attitude.
  • J
    Jazenevd
    It was a lively market day, I was able to set personal record in number of daily transactions. Unfortunately, this sector got weaker as day progressed. However, this stock outperformed peers. It is another day tomorrow.
  • D
    D
    Glencore is the most likely buyer for MARA. With its present 25% ownership and experience with mega mines, it is in the catbird seat to buy out Yamana and possibly Newmont and make the investment to get this mega-mine opened. Glencore also owns critical infrastructure for the transportation and processing of the mines concentrate, this includes: the de-watering plant in Tucuman, the railway to Rosario, the loading docks, the ships to transport the concentrate to the plants where it is ultimately refined. It's a great buy for Glencore and a daunting task for Yamana and yes I own shares in both companies.

    $GLNCY, $NEM, AUY
    Bullish
  • D
    D
    Realistic near term growth potential for Yamana at Jacobina is huge.
    Jacobina is a mine that can grow at a far faster rate with adequate funding and build out. The paleo placer orebody extends over a 155km belt that Yamana controls in its entirety. The orebody has been compared to the prolific Whitwatersrand which has produced over two billion ounces of gold. Yamana has been expanding the mine incrementally and has only explored 10 km of the belt. Within the 10 km belt are reserves supporting 26 years of production at 180,000 oz per year expanding to 230,000 oz's in three years, 280,000 in 5 years. Recently, exploration has begun on another 11km's of the belt and results have confirmed that the gold bearing reefs contain similar or higher grade bulk tonnage deposits. Having read the technical reports, I believe that Jacobina will be explored and reveal one of the largest reserves of gold on the planet. The geo-magnetic targets are numerous and prolific.
  • J
    Jazenevd
    Catamarca MARA news
    Local press continues discussing of the interview that President of Yamana Argentina subsidiary gave to Argentina’s National News Agency last weekend. Following are excerpts to clarify present situation with the project. All quotes are translated from Spanish using google tools.
    Start of quote
    MARA, it should be noted, is in an exploration stage. This is the collection of data that will be used for a new environmental impact study so that "at this stage and for the next few years there will be no production tasks, no infrastructure construction, or ground movements." At the same time, this study is a step prior to the actual exploitation of the deposit. In this vein, it is estimated that the feasibility study will conclude by the end of 2021 and that if it prospers, the field in western Catamarca could enter production only at the end of 2026.
    End of quote
    In other words, it is mostly paperwork that has to be done correctly.
    Start of quote
    Bareta explained that the project is in the advanced exploration stage to establish “a new design through the program that will allow gathering this year the missing information on geology and biodiversity to see how to integrate the mineralized body of Agua Rica with the infrastructure of La Alumbrera 30 kilometers away ”.
    Being an integrated project, the proposal that Yamana hopes to offer would allow "reducing the environmental impact by using infrastructure and areas already impacted, in addition to adding work with renewable energies and designing greater operational water management programs to reduce any concern."
    End of quote
    The main goal is to reduce environmental impact to make the project acceptable for people living in the area.
    Start of quote
    The schedule
    • In 2022 the plan is to "work with the authorities of Catamarca on the incentives that the project needs and begin the environmental impact report."
    • By 2023, the partner companies will decide on the development that, if positive, would enable the construction phase in 2024 until the beginning of 2026, with the investment of US $ 2,800 million generating at least 3,000 jobs for its construction.
    • Agua Rica could enter the operating stage by the end of 2026 with a more permanent staff of between 1,100 and 1,500 direct and indirect workers.
    End of quote
    It is a gradual process, inevitable for a big project.
  • J
    Jazenevd
    AUY is a relatively good gold stock in terms of mineral assets and growth perspectives. Canadian mines provide safety while MARA promises growth in 2022, in investment sense. Frankly, when I bought this stock couple months ago, I expected to make a swing trade or few swing trades; I even made it once. Buying it relatively low, I could take sizable profits at the moment.
    However, looking at this now, after getting more familiar with the company/stock and taking into account portfolio and general market situation, I decided to keep it for more long term, until next year at least.
  • R
    Ryan
    7,209 call options set to expire in the money today. That’s 720,900 shares that may need to be purchased if stock ends above $5 today. With a 10 day day avg volume of 8.6M shares, that could cause a nice pop early next week.
  • J
    Jazenevd
    In total, market pullback was needed. It created buying opportunities and allowed some portion of hot air out. AUY did not drop much and gold didn’t drop much too. It will be another day tomorrow, uptrend is still in place.
  • M
    Magnetar
    With a billion shares float, this sinking ship will continue to fall until BK. Toxic asset. Sell.
    Bearish
  • J
    Jazenevd
    Perhaps, it makes sense to add more clarifications regarding MARA project value. First of all, more precise numbers will be supplied by feasibility study that will likely come by end of this year or beginning of the next year, if things go smoothly enough in Andalgala. Using 2019 pre-feasibility numbers, it seems that Yamana share could be around $4B at present metal prices. One can assume that in case MARA would be in production right now and adjustment for construction expense entered to balance sheet, let’s imagine it, then it could double AUY market cap, esp. because market prices tend to exceed intrinsic values in good times.
    However, MARA still has long road to production with risks and expenses. One can speculate that right now MARA impact on share price is about zero. Certainly it was exactly zero in 2016-2020, when the project was legally prohibited. Getting MARA value to share price will be a gradual process going along with the project progress to production. The first step is feasibility study, so far planned to be released in less than a year from now.
  • J
    Jazenevd
    Peter Marrone, executive chairman of Yamana Gold joined today Bloomberg to discuss the company's Q1 earnings, including future gold and silver production outlook. Marrone also discussed operations at their Jacobina mine in Brazil. The video interview can be found on Bloomberg site.
  • N
    NYSE
    Remember what old NYSE, the Grand Old Parr, wrote so long ago, the price target is $9.00.
  • J
    Jazenevd
    It was a good day. The sector showed resilience while the stock performed better than peers.
  • F
    FDM
    Given the conversations going on this board right now, let's ask a different question that I have brought up months ago. AUY is ripe for the pickings. Given what @D has proposed with selling off MARA amd using @Jazenevd's more conservative valuation of around $2.5B. If MARA sold off, the rest of the company could be had for less than $2.5B with $600M sitting on the balance sheet. How much longer til "she gone"??
  • D
    D
    Commodity markets have entered backwardation and pricing is at the most extreme level since 2007.
    This means that supplies are tight right now and delivery is difficult. Copper is known as "The metal with a PHD in economics". When its price skyrockets it is an extremely bullish sign. Copper & Silver have been on a pricing tear as we enter the Super Cycle and gold has appreciated 549% in the past five years. Yamana's reserves of these metals alone make it a screaming buy.
    Bullish
  • J
    Jazenevd
    Strictly off-topic
    From today’s Reuters article
    Start of quote
    A federal court in the United States has authorized the Internal Revenue Service (IRS) to serve a "John Doe Summons" on the crypto exchange Kraken, seeking identities of U.S. taxpayers who have used cryptocurrency, the Department of Justice said on Wednesday.
    The IRS is seeking information about taxpayers who conducted at least $20,000 worth of transactions in cryptocurrency from 2016 to 2020, the DOJ said in a statement.
    "Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer", acting Assistant Attorney General David Hubbert of the Justice Department's Tax Division said in the statement.
    End of quote