Yamana Gold outlook still strong after guidance update
Gold stocks are expensive right now due to the extremely high price of gold. One of the more affordable stocks is Yamana Gold, which has been in a long-term downtrend until it broke trendline resistance a couple days ago.
Last week I reported on an upgrade of Yamana's productivity guidance. That guidance upgrade turned out to be a little too optimistic, and yesterday Yamana moderated it somewhat. However, the outlook for Yamana still looks good.
Production at the Minera Florida mine is returning to normal after interruptions due to labor disputes, and production at the Jacobina mine is increasing and expected to continue to increase for the next three years. The Chapada mine--which has been a bit of a drag on the company's bottom line--beat records for productivity this year, and the company just sold it for $800 million.
With rising productivity and a history of earnings beats, this looks like one of the stronger gold plays in the market right now. Yamana should get some analyst upgrades in the coming months, providing further upside catalysts. Unless gold prices suddenly collapse, I suspect that AUY will hold above the trendline.
Last week I reported on an upgrade of Yamana's productivity guidance. That guidance upgrade turned out to be a little too optimistic, and yesterday Yamana moderated it somewhat. However, the outlook for Yamana still looks good.
Production at the Minera Florida mine is returning to normal after interruptions due to labor disputes, and production at the Jacobina mine is increasing and expected to continue to increase for the next three years. The Chapada mine--which has been a bit of a drag on the company's bottom line--beat records for productivity this year, and the company just sold it for $800 million.
With rising productivity and a history of earnings beats, this looks like one of the stronger gold plays in the market right now. Yamana should get some analyst upgrades in the coming months, providing further upside catalysts. Unless gold prices suddenly collapse, I suspect that AUY will hold above the trendline.
Comment:
Up 5% today as gold prices surge on safehaven demand.
