Yamana Gold, Inc. (USA) (NYSE:AUY)

CAPS Rating: 3 out of 5

The Company is an intermediate gold producer engaged in the acquisition, exploration, development and operation of mineral properties in Brazil, Argentina, Honduras and Nicaragua.


Player Avatar DarthMaul09 (29.82) Submitted: 11/15/2011 12:56:14 AM : Outperform Start Price: $13.99 AUY Score: -130.32

The biggest risk for the miners that operate in South America is political and not economic. The likely rise in the price of the precious metals will make some of these companies very profitable and when that happens, windfall profit taxes will become very appealing to the local politicians. The trick will be to keep the local workers happy and make any government intervention difficult because it would adversely affect these workers and the local economy. Expanding the dividend and paying their workers bonuses bases on the rising price of the metals would seem like a good start.

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