Blackmont: Yamana Offers the Best Combination of Risk and Reward

It looks like 2008 is going to be one busy year for Yamana Gold Inc. (AUY).

Last week, the gold miner provided updates on a slew of projects, ranging from its Chapada mine, where preliminary studies justified a feasibility study for extraction of an additional 320,000 ounces of gold and 94 million pounds of copper, to the El Penon mines where resources have been expanded by an additional 259,000 ounces on new resources.

Yamana also indicated that the C1-Santa Luz feasibility study shows higher production of 103,000 ounces per year, but at higher cash costs of about $400 per ounce.

In a note to clients, Blackmont analyst Richard Gray said:

The consistent achievement of milestones that the company has earmarked (mine start-ups, delivering on targeted production and costs, advancing exploration projects to construction) will define Yamana as a proven developer and builder of mines, more so than as a simply the successful acquirer of companies.

He told clients that Yamana represents one of the gold sector's best combinations of risk and reward, and maintained his "buy" rating and C$22 price target on the stock.

Comments

[MajorMac666:]

Yamana is just ok when you do a side by side with Bullion Monarch Mining, now trading on OTCBB, symbol BULM, at under a $1 US with assets very close to those of Royal Gold. BULM should be and likely will be at $15 in a few months or less. Company just authorized a $1mil. stock repurchase and anounced $0.02 per share profit for qtr. on 40,000,000 share outstanding, and NO debts. But most of you fear OTCBB, so sorry.

T. Deels

2008 Jan 27 11:22 PM

[WHITEBADGER:]

this is for T Deels. Where do you get further info, like financials on BULM?

Whitebadger

2008 Jan 31 09:18 AM

[Jonny82:]

BULM.ob is a hidden gem. Thanks MajorMac.

Apr 04 10:02 PM