Yamana Gold Inc. is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Chile, Argentina, Mexico and Central America.
Yamana is essentially embodiment of the vision of Peter Marrone, a lawyer who was formerly a Managing Director of Investment Banking at Canaccord Capital.
Yamana began operations with its Chapada mine in Brazil in 2003. As the bull market in gold progressed over the last few years, Peter went on an acquisition spree. He bought Desert Sun Mining, and then acquired Meridian Gold and Northern Orion Resources for $4.8 billion.
As a result, he has created a geographically diversified mining company which produced about 1 million gold equivalent ounces in 2008.
Yamana is focused on operations in North and South America, as shown in the map below:
As Yamana grew organically and through acquisitions, the market questioned whether the sum would be greater than the parts; indeed there was questions marks on whether some of the parts would work!
Yamana has answered its critics by undertaking prudent and disciplined growth. It has executed its operational plan well, leading to a low cash costs at $ 383 per gold equivalent ounce in 2008.
It has a strong balance sheet with a total cash and available credit of $420 million at year end and net debt of $ 385 million.
(all properties at Dec 31, 2008)
(all properties at Dec 31, 2008)
In the first quarter of 2009 ended March 31, Yamana had revenues of US$ 224.3 million. Net earning were US$ 86 million or 12 cents per share. Cashflow from operations was $ 78 million before changes in non-cash working capital items. Average co-product cash costs were US$ 379.
The Price/Earnings Ratio is currently 14.62, based on a 12 month trailing EPS of $ 0.82.
Yamana is poised to grow production to 2 million gold equivalent ounces by 2012. With low cash costs and the prospect of rising gold prices, it is well positioned to benefit from this bull market in gold.
For more information, please visit the Company website at:
Acamar's Exploration Profiles is intended to provide factual and timely research on general economic trends, opinions about trends in specific industry sectors, information on specific companies, references to other publications and reports that may be of interest to investors, and information on general trading strategies. Acamar Asia Consultants Inc. ("Acamar Asia") is not a registered investment dealer or adviser, and is a subsidiary of Acamar Advisors Inc.
Although the statements of facts in this report have been obtained from and are based upon sources Acamar Asia believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions and estimates included in this report constitute Acamar Asia's judgment as of the date of this report and are subject to change without notice. Acamar Asia makes no warranties, express or implied, as to results to be obtained from use of information in this report, and makes no express or implied warranties of merchantability or fitness for a particular purpose or use.
This report is for informational purposes only and is not intended to be advice, or an offer or a solicitation with respect to the purchase or sale of any security. This report does not take into account the investment objectives, financial situation or particular needs of any particular person. Investors are advised that investing in securities entails certain risks, and they should obtain individual financial advice and undertake extensive due diligence based on their own particular circumstances before making any investment decisions.
Acamar Asia may from time to time perform corporate communications or other services for companies mentioned in this report. Acamar Asia and/or its principals may be compensated for such services, in the form of fees and/or options. In addition, Acamar Asia or any individuals preparing this report may at any time have a position in any securities or options of issuers mentioned in this report. Directors, shareholders or employees of Acamar Asia may be a director or officer of a company mentioned in this report.