Yamana Gold Share Discussion Threads

[jonwig] 21/11/2008 08:51

Gold producing stocks are well and truly in the dog box with Yamana Gold Incorporated suffering more than most, so we contacted Yamana regarding their performance and they replied this morning. Their reply is printed here in full, exactly as we received it.

Thank you for your interest in Yamana Gold. We encourage looking at stock performance on a relative basis. When comparing our performance with that of our peers, it is clear that there has been significant pressure across the board. Stock performance is a reaction to the recent state of the market; gold equities have been trading quite closely to the markets, and less closely to the commodity. Having said that, Yamana has been sold off slightly more than most and we are just as frustrated as you are, as we are shareholders as well. A possible reason for this may be the effect of the large transaction we completed last year. Some have a view that it takes one year for full integration of operations and people, and though we don't agree, as we have fully integrated already, this may have an effect. We have also heard that the transaction resulted in more hedge funds and momentum players holding our stock. With current market conditions, hedge funds are liquidating their positions, which impacts Yamana's share price.

We remain committed to delivering value to our shareholders. Yamana continues to be one of the lowest cash cost companies in the industry and we are uniquely positioned with a declining cost structure and increasing production all in gold. We have the stability of the jurisdictions in which we mine. Most of our 2009 and 2010 production estimates are based on mines that are or will be built by the end of this year. We are well positioned with cash, cash equivalents, and growth both in production and cash flow, and other valuable assets. We have many upcoming positive events expected for the end of this year and we are currently on track to deliver on these milestones.

We hope this answers your questions.

Best Regards,
Investor Relations
Yamana Gold Inc.

Yamana Gold has a market capitalisation of $2.52 billion, a P/E ratio of 8.26, with 699.21 shares outstanding and closed yesterday at $3.60.

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.

[swebb99] 21/11/2008 08:42

Well it all got too tempting for me. It looks like this has been massively oversold to me and I've bought a few.

[hectorp] 19/11/2008 19:20

I assume the copper side is keeping it back, but that could mask the overall quality of the play.

[jonwig] 19/11/2008 19:15

With market volatility as a backdrop, analysts at Canaccord Adams have identified a number of potential takeover targets in the mining space as well as their possible buyers. Three names in particular stand out among the targets: Yamana Gold Inc., HudBay Minerals Inc., and Uranium One Inc.

Yamana has been a very aggressive buyer in the last few years, but analyst Steve Butler figures it is turning into an attractive target because of its production growth, discounted valuation, and outstanding El Penon asset. Yamana is trading at just 4.1 times estimated cash flow for 2009 compared to a sector average of 10.5 times, he noted. Possible buyers include Barrick Gold Corp., Kinross Gold Corp. and Newmont Mining Corp., all of which are big investors in the Americas.

[dasv] 19/11/2008 15:06

"for a loss we cannot explain"

[chrismcglone] 05/11/2008 17:07

re my post no.674,....it may have turned again.

Sooner than expected.

Can't wait until New Year to make my resolution for 2009. I must stop making predictions!

[dasv] 05/11/2008 11:08

This for me is the key takeaway point from the results:-

"Quarter over quarter, Yamana's copper hedges may be represented as either a liability or an asset based on the level of copper prices at that time versus hedged copper prices. In either case, the liability or value of the asset remains unrealized and is reflected only as a mark-to-market adjustment in financial results. Yamana's copper hedges represented a liability up until the end of the third quarter, and then became an asset with a significant value of over $100 million as copper prices declined after quarter-end. Yamana took the opportunity to monetize the longer-term portion of that asset and realized proceeds of approximately $47 million, further strengthening the Company's cash position, while maintaining the majority of its shorter-term contracts. Further, on a quarterly basis, the Company may be impacted by provisional accounting as final pricing for concentrate sales is calculated two or three months after shipment. This causes a delay in the impact of price movements for copper and gold concentrate sold in the following quarter. This impact from the provisional accounting on unsettled invoices may create variability in receivables and cash flow, quarter over quarter, however this tends to become normalized over the course of a longer period. The Company is impacted from time to time by these mark-to-market gains (or losses) from its copper hedge program, although this is a non-cash item, and does not impact, positively or negatively, the operating profit of the Company."

YAU's copper hedges from previous quarters are being marked to market in this quarter. Barring this item results are OK.

[hectorp] 05/11/2008 09:16

Look very positive also due to USD appreciation etc..
I see 15p spread over here, anyone buying would want to get the US market price with a tighter spread, though I'm sure the price will move up by 2.30.

[mad jack mcmad] 05/11/2008 07:44

3rd quarter results

[hectorp] 04/11/2008 15:29

Still long here also Kinross and CEY ( in gold) and some kys too.

[chrismcglone] 02/11/2008 16:48

The market has turned.

Bet against it at your peril.

[hectorp] 31/10/2008 21:26

You will be proven wrong.

[buywell2] 31/10/2008 10:56

Now you see why the CEO sold

buywell2 - 29 Aug'08 - 10:34 - 564 of 671 edit


I can't help but think that GOLD has further to fall soon

Depends on the dollar, which in turn depends on Russia at the moment

Gustav in the gulf also might have a say

Still Gold has the potential to fall circa 40% from $1000 highs

When did the CEO sell some stock ?

He must also think GOLD is toppy

[hectorp] 31/10/2008 10:53

I bought Yau on Tuesday ( on the US market , as AUY. ) I'm already sitting on around 100 cents a share rally. But gold is weak again since yesterday so may make little headway before next week.
But yes! Gold mining shares fell most and strongest over the last 8 weeks ( over 40%) whereas the other sectors have taken much longer to fall 40%. THis implies ( and you can see with the 50 day MA which almost exactly corresponds with the recent falling share price resistance ) that current test of resistance should be seen at 424 pence or very close to. That is some ground to make up simply on a volatility basis.
In brief, gold even side-tracking here should see a rise of a further 100p or better to test resistance. Gold rallying, is a better story still.
H.

[chrismcglone] 31/10/2008 09:50

Time to buy now H.

Risk now well on the side of upside.

[hectorp] 30/10/2008 18:27

Gold down $10 but YAU chart does look interesting ( support etc)

[hectorp] 30/10/2008 08:26

Thanks JAck thats very helpful.

Yamana starting to move up now in UK trading.

[mad jack mcmad] 29/10/2008 21:59

On the positive side, Goldcorp Inc., Yamana Gold Inc. and Northgate Minerals Corp. will benefit from copper hedges. Yamana in particular is in a good position after hedging all of its 2008 copper production at about US$3.00 a pound.

[mad jack mcmad] 29/10/2008 15:00

I've still got an average cost of £4 for these, but nice to see it moving up again..

[hectorp] 29/10/2008 14:50

Oh.. up 16% since I bought yesterday.

[hectorp] 28/10/2008 20:57

Ho- I got in at a very good time it seems. lol Same Kinross.

[hectorp] 28/10/2008 17:06

Its up the noo !
Bought a few K YAU ( bought as and also some K ( Kinross).
Added to my CEY this AM.