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Yamana Gold Inc.YRI.TOCOMMENTMay 30, 2014Stock price when the opinion was issued
As of Apr 03, 2023. Market Open.
They basically broke up the company to have the marginal Brazilian assets in Equinox. They sorted out their balance sheet.
A mid tier intermediate gold producer. Cash costs are good at about $6.50 an ounce. All-in costs are at about $9.50. These are below average of some of the senior producers. Asset base is largely in South America. 2 main assets El Penon and Chapada are located in Brazil and Chile. Had a disastrous 1st quarter with production missing expectations by about 10%. Also, didn’t give a whole lot of comfort that things were going to get better in the interim. Perhaps they will be able to make some of it up in the back half of the year. Also, in the 1st quarter, they made a joint venture bid with Agnico Eagle (AEM-T) for Osisko (OSK-T), which weighed on the share price as short-sellers shorted this company and bought Osisko. That pressure might be temporary. Thinks the weakness has been a bit overdone and he values this as somewhere around $6.