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Yamana Gold Inc.YRI.TOCOMMENTJul 29, 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.
This is a management team that made a lot of mistakes in past cycles. Made some bad acquisitions. Over promised and under delivered. Nobody really liked them 5-7 years ago. They fixed that along with some of their production issues. Did better acquisitions. You now have a company that has very high leverage to the price of gold. Feels that GoldCorp (G-T) is the best senior, followed by Agnico (AEM-T) and then followed by this company. In the next gold cycle, it will do very well. You need the gold sector to move and right now it doesn’t seem to be doing a whole lot.