Upside for Yamana Gold after Its Q3 Earnings



Yamana Gold’s third-quarter earnings

Yamana Gold (AUY) released its third-quarter results before the markets opened on October 26. The company held a conference call the same day. Yamana Gold’s EPS of $0.02 beat the consensus estimate by $0.01. The company’s revenues of $416.8 million missed the consensus expectations by ~11%.

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Peers’ earnings

Many of Yamana Gold’s peers (GDX) have announced their third-quarter results. Barrick Gold (ABX), Goldcorp (GG), and Agnico Eagle Mines (AEM) released their results on October 24. While Goldcorp missed analysts’ estimates by a wide margin, Barrick Gold registered a slight beat. Agnico Eagle Mines reported third-quarter earnings beat and also increased its production guidance for 2018.

Newmont Mining (NEM) reported its results on October 25. The company’s results were a mixed bag. Newmont Mining’s earnings beat analysts’ expectations, while the revenues missed the estimates.

Production guidance 

Due to higher-than-expected production year-to-date, Yamana Gold increased its gold and copper production for 2018 and reduced its silver production. While issues at Yamana Gold’s El Penon mine are behind the guidance reduction for silver, the continued well ramp-up of its Cerro Moro mine is behind gold’s production guidance upgrade.

In this series, we’ll discuss Yamana Gold’s results. We’ll also see how analysts’ sentiment for the company changed and how much valuation upside is likely in the stock.


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