Yamana Gold’s performance
Yamana Gold (AUY) stock has outperformed its peers (GDX) YTD (year-to-date). Until October 17, the stock has lost 14.7% against Agnico Eagle Mines’ (AEM), Kinross Gold’s (KGC), and IAMGOLD’s (IAG) stock declines of 20.3%, 33.8%, and 31.9%, respectively. AUY’s operational performance has been strong in 2018.
AUY’s Q2 2018 results
Yamana Gold’s (AUY) second-quarter results pleasantly surprised investors and analysts on several counts, including higher-than-expected production. Due to better-than-expected operational results, Yamana Gold feels that it’s well positioned to exceed its fiscal 2018 guidance of gold (GLD) and copper production. Much of the company’s production and cost improvement is due to the startup of its newest mine, Cerro Moro.
AUY plans to release its detailed third-quarter earnings report on October 26.
A Cerro Moro update
The company has repeatedly maintained that the start of the Cerro Moro mine could be a step toward a change in its operating cash flow generation from 2018 onward. Its balance sheet is also expected to become leaner as Cerro Moro comes online.
Its management’s delivery on this promise could go a long way toward rerating the stock even further. Attentive investors should be listening closely to management’s comments during the third-quarter earnings call for some upside from Cerro Moro.