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Yamana Gold Inc.YRI.TOCOMMENTSep 15, 2017Stock 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.
Trading cheaper than its peers. Has a good, low cost structure for its gold, but more leveraged than desired. Feels the street is looking for better consistency of generating free cash flow. Thinks the Brazilian assets that went into Brio was a bit of a difficult process to get off the books, and they still own shares of Brio and will slowly drift that out into the market. Feels there is an elevated level of execution risks. Have done a good job of trying to hive out some of the higher cost assets and try to refocus around 3 core assets. At this point, it’s a “wait and see” to restore confidence.