|Bid||2.0400 x 800|
|Ask||2.0500 x 1400|
|Day's Range||2.0300 - 2.1250|
|52 Week Range||1.7800 - 3.2300|
|Beta (3Y Monthly)||0.48|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.02 (1.01%)|
|1y Target Est||N/A|
Gold and Miners Gain as Trade War Fear Makes a ComebackUS-China trade war escalatesThe US-China trade war just got more dangerous. After some optimism last week with the two sides appearing to approach some sort of agreement, markets seem to have
Yamana Gold (NYSE:AUY) stock fell following its quarterly report. The Toronto-based gold producer beat earnings estimates but missed on revenue. This left Yamana Gold stock falling back towards 52-week lows.Source: Shutterstock Yamana Gold has moved to stabilize its balance sheet in recent weeks. However, until the gold market sees significant upward price movements, both AUY and other gold stocks will see little traction.For its first quarter, the company reported earnings of two cents per share. This beat analyst estimates by one penny per share. AUY lost three cents per share in the first quarter of 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, revenues of $407.1 million missed expectations by $7.39 million. They also fell 10.5% from year-ago levels. Even worse, revenue fell short in a quarter where production exceeded analyst estimates. AUY stock fell by more than 3% in morning trading following the announcement. * 7 Energy Stocks to Buy to Light Up Your Portfolio During the quarter, Yamana Gold sold its Chapada copper and gold mine in Brazil to Lundin Mining (OTCMKTS:LUNMF) for over $1 billion. As our own Will Ashworth points out, this allows Yamana to bring down its $1.793 billion debt burden. Yamana Gold Is a Proxy for Gold PricesI agree with my colleague that this sale strengthens the balance sheet of AUY stock. Does it make AUY a buy? I'm not so sure.On the surface, the forward price-to-earnings (PE) ratio of around 14.9 appears reasonable. It looks even better when traders factor in predicted earnings increases. Wall Street expects profit growth to average about 40% per year over the next five years.Still, such forecasts tend not to guide gold stocks. Historically, Yamana Gold stock and the equities of peers such as Newmont Goldcorp (NYSE:NEM) and Lundin Mining tend to become proxies for gold prices. Unfortunately for Yamana Gold investors, gold prices have seen little traction over the last few years. AUY stock briefly surpassed $20 per share in 2012 as gold prices surged toward $2,000 per oz.However, the price of gold has not exceeded $1,400 per oz. since 2013. Consequently, it has remained range-bound since that year. Over the last 5.5 years, gold has bottomed at about $1,050 per oz. and has seen a top of around $1,375 per oz.This has left Yamana Gold stock trading in a range. As a result, the stock price trades at levels it saw in 2015. Now, with gold at around $1,275 per oz., AUY stock has traded between $2 per share and just above $3 per share for the last two years. Yamana Gold and the Looming BearGold tends to rise when investors lose confidence in the reserve currency, which remains the U.S. dollar. However, in the midst of a crisis, history shows that traders lose confidence in gold.At the height of the 2008 financial crisis, gold fell in value as investors flocked to the perceived safety of the U.S. dollar. Gold did not rise again until 2010 when investors started to want an alternative to the dollar. After about three years, the price of gold fell back to the range where it trades today.As things stand now, I don't see any catalyst that will take gold sufficiently higher. If history serves as a guide, a stock market swoon will become bearish for the dollar, and by extension, AUY stock. As long as investors retain their confidence in the dollar, neither gold nor gold stocks will break out of their respective ranges. The Bottom Line on Yamana Gold StockAfter earnings, expect little activity from AUY stock until it can rise out of its trading range. AUY sold off as the company missed revenue estimates despite increased production.On the surface, AUY looks increasingly solid. Selling the Chapada mine should reduce its debt. Moreover, the reasonable PE ratio and the high levels of profit growth predicted should presumably send Yamana Gold stock higher.Unfortunately, gold stocks tend to follow the price of gold. As gold has remained range-bound, so too has AUY stock. Even worse, no apparent catalyst has appeared that would take gold higher.If investors lost confidence in the dollar, both gold and Yamana Gold stock would become a screaming buy at current levels. However, as things stand now, things will likely get worse before conditions improve for AUY.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks to Buy to Light Up Your Portfolio * 10 Vice Stocks to Spice Up Your Portfolio * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post Yamana Gold Stock Is Stifled By the Range-Bound Gold Market appeared first on InvestorPlace.
Shares of Yamana Gold Inc. (AUY) were 0.46% lower at $2.15 in after-hours trading on Wednesday. Revenue came in at $407.1 million, down 10.5% from the prior-year quarter and missing consensus estimates by $7.4 million as a result of lower metal prices. The average realized gold price declined 2% to $1,301 per ounce, the average realized silver price fell 8.3% to $15.52 per ounce and the average realized price of copper dropped 7% to $2.91 per pound.
The Toronto-based company said it had a loss of less than 1 cent on a per-share basis. Earnings, adjusted for non-recurring costs, came to 3 cents per share. The results topped Wall Street expectations. ...
Yamana Gold: What to Expect from Its Q1 Results(Continued from Prior Part)Analysts’ sentimentAmong senior and intermediate gold miners (GDX) (GDXJ), Yamana Gold (AUY) is third based on the highest “buy” ratings from the analysts. Yamana
Yamana Gold: What to Expect from Its Q1 ResultsYamana GoldYamana Gold (AUY) is scheduled to release its first-quarter results on May 1 after the market closes. The company will hold a conference call on May 2. Analysts expect Yamana Gold’s
Checking In on Gold Miners Ahead of Their Q1 2019 Results(Continued from Prior Part)Analysts’ estimates for FCF Investors are usually interested in gold mining companies’ (GDX) (GDXJ) ability to generate FCF (free cash flow), as it helps them
Checking In on Gold Miners Ahead of Their Q1 2019 Results(Continued from Prior Part)Earnings estimates Many gold miners (RING) are set to release their first-quarter results shortly. Analysts expect Barrick Gold’s (GOLD) EBITDA to rise 6.2% YoY
Checking In on Gold Miners Ahead of Their Q1 2019 Results(Continued from Prior Part)Analysts’ forecasts Analysts’ revenue estimates for gold miners (GDX) are important to track as they give us a good idea about their gold price (GLD) outlook and
Newmont Mining Beats Q1 Earnings EstimatesNewmont Mining’s earnings beat estimatesNewmont Mining (NEM) released its Q1 2019 earnings on April 25 before the market opened. It held a conference call the same day at 9:00 AM EST. The company beat
What’s in the Cards for Newmont Mining’s Q1 Results?(Continued from Prior Part)Analysts’ expectations Analysts expect Newmont to report revenues of $1.83 billion for the first quarter. This estimate implies growth of 0.5% year-over-year. Its
Management believes the company will shine brightly in 2019. Will the first quarter indicate that the company is on its way to making that vision a reality?
I don't know if the management team at Yamana Gold (NYSE:AUY) thought about the ramifications of selling its Chapada copper and gold mine in Brazil other than substantially reducing its debt. However, it's impossible not to think AUY stock will be affected by the move. Source: Shutterstock In a good way. InvestorPlace - Stock Market News, Stock Advice & Trading TipsAUY is now more attractive to potential suitors. Here's why. The Details of the SaleLundin Mining (TSX:LUN) is the company that bought Chapada. It is paying $800 million in cash for the mine with as much as an additional $125 million based on the price of gold, and another $100 million payment for fulfilling a couple of other considerations. You can read about the specifics here. Who is Lundin Mining? * 7 Tech Stocks With Too Much Risk, Not Enough Upside It's a Toronto-based company with a market cap twice the size of Yamana's. It produces mostly base metals like copper, zinc, and nickel. In 2019, Lundun Mining's production guidance for gold was just 4%. The Chapada acquisition adds 59,000 tonnes of copper and 121,000 ounces of gold. Yamana had plans to expand the gold production at the mine. Lundin's expected to focus on growing the copper production. Lundin's on the lookout for assets to buy; Chapada nicely fits the bill. For Yamana, the cash will lower its debt from $1.7 billion to approximately $900 million, reducing its debt as a percentage of its market cap, from 77% before the sale to 43% after. Yamana Production Post-ChapadaWith the sale of the copper-gold mine, Yamana becomes a pure-play precious metals company, with 2019 gold equivalent output (85% gold, 15% silver) of 1 million ounces, increasing to 1.02 million ounces in 2020 and 2021. Not only does Yamana's balance sheet get stronger, but its free cash flow could also benefit from the deal. It expects its annual capital expenditures to fall by approximately $47 million over the next three years despite committing an additional $25 million annually to exploration. The company's focus for its individual mines is annual production of at least 130,000 ounces, which gives it the size and scale necessary to make the mine worthwhile from a capital investment and profitability perspective. After Chapada, it will have seven out of eight mines producing at least this amount with its Minera Florida gold and silver mine in Chile expected to go over the minimum once it carries out further exploration activities at the site. The Bottom Line on AUY StockThe sale of Chapada makes it both a hunter with the financial wherewithal to buy assets from struggling miners, and an attractive M&A candidate to bigger precious-metal producers such as Agnico Eagle Mines (NYSE:AEM) and others searching for growth. My InvestorPlace colleague discussed the M&A situation in February:This is what Aaron Levitt wrote:"For investors, this creates an interesting scenario. Already, many gold stocks have moved higher over the last year as prices for the precious metal have increased, profitability has improved and the situation in the sector isn't so dire…But now, with the majors starting to wheel and deal, and the middle tier firms being forced to think about acquisitions as well, the whole sector should start to trade at a bit of a buyout premium. This is sort of exactly what happened back in 2006/2007 when the last round of major gold stock M&A happened."I can't say what's going to happen to AUY stock tomorrow or the day after.What I do know is that long term, Yamana's sale of Chapada puts AUY stock in a much better light. At current prices, if a gold play is your thing, I'd say buy away. If it drops below $2, I'd buy some more. In this case, addition by subtraction makes Yamana a better buy. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post Recent Moves by Yamana Gold Put AUY Stock High up on the Buy List appeared first on InvestorPlace.
Shares of Yamana Gold Inc. (AUY) fell 2.73% to $2.49 per share on Monday after the Canadian miner announced it agreed to sell its Chapada open-pit, gold-copper mine in Brazil to L undin Mining Corp. (LUN.TO) for more than $1 billion. While the sale of Chapada, one of the company's main assets, will shrink total equivalent gold production by 12% to 15%, shareholders will benefit from share price appreciation. Warning! GuruFocus has detected 2 Warning Signs with AUY.
Yamana Gold (AUY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Canada's Lundin Mining Corp is looking to buy more mining assets, Chief Executive Marie Inkster told Reuters on Monday, after the company announced its purchase of a Brazilian copper-gold mine from Yamana Gold Inc for more than $1 billion. The Toronto-based company is seeking a project where exploration is complete, which it can take over and build, Inkster said. Lundin prefers a copper asset, but would also consider a zinc poly-metallic mine, with nickel a distant third option, she said.
Will Yamana’s Chapada Mine Sale Improve Shareholder Returns?(Continued from Prior Part)Dividends to doubleYamana Gold (AUY) announced today that it has agreed to sell its Chapada mine to Lundin Gold (LUNMF) for $1 billion. Due to this
Will Yamana’s Chapada Mine Sale Improve Shareholder Returns?Yamana Gold sells Chapada mine Today, Yamana Gold (AUY) announced that it has agreed to sell its fully owned Chapada mine to Lundin Gold (LUNMF) for $1 billion. Chapada is primarily a