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$5.54 -1.34 (-19.48%)
10/10/2008 4:01 PM

Yamana Gold, Inc. (USA) (AUY)

CAPS Rating:
****

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

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Recs

12

Avatar rd80 (99.65) Submitted: 6/20/07 6:57 PM : Outperform Start Price: $12.69 AUY Score: -14.50

I may be a little early with this one, but I believe there are four solid reasons Yamana, and gold in general, will outperform.
1. It's had a nice pullback
2. The gov't emphasizes 'core' inflation which has been benign. However, core inflation doesn't include food and energy, which have been going up quite a bit. Since most of us actually buy food, put gas in our cars and pay electric or gas bills, core inflation has been understating the true inflation rate. When that catches up, gold will perform well.
3. Sadly, I believe the dollar is in a long term decline.
4. China and other developing countries are likely to create demand for gold, both from their citizens buying it and from governments adding it to their reserves.

Yamana is supposed to be one of the most efficient gold producers out there.

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Avatar MGDG (33.01) Submitted: 6/23/07 5:38 AM

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Yep, Yamana is pretty efficient. Last Qtr. their net smelter cost for gold production was -$130 per ounce. Darn, all that copper keeps getting in the way of their gold production. Must be nice to be paid $130 per ounce to mine for gold.

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Avatar Investrman (< 20) Submitted: 12/04/07 10:01 PM

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Yamana has acquired MDG & NTO and did so without any debt added on their books, and poised to go after the likes of RIO or BHP in the future in my opinion. They are cash rich basis and have no debt and are doing better than ever. They are also connected to Silver too, not just gold, so them and through their subsidiaries today, long term they are going to reward stockholders handsomely.

One thing, is the uncertainty in the markets since the US banking/mortgage mess came public in August has affected all stocks basically too, so many prices have been below par as I see it.

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