Dan Wieman

Yamana Gold: Finding Value

I haven't looked lately, but Yamana has typically hedged only copper prices. Management counts copper as a sort of by-product from their Chapada mine and uses revenue here to offset productions costs. Their strategy in the past has always been to remain unhedged on the price of gold, and I haven't seen anything to indicate a change in that strategy.


On Feb 20 11:21 AM MateoJoe wrote:

> Dan,
> Good write up. I've owned since six and change and keep researching
> so your work is appreciated.
>
> One question: Do you or any other posters know how much of AUY's
> production is forward hedged?
>
> Thanks.

Yamana Gold: Finding Value

The press release linked above from Yamana indicates that they are forecasting $800/ounce in 2009 and $825/ounce in 2010.


On Feb 18 06:13 PM arlin wrote:

> I believe AUY's estimates are based on $700 gold.As already stated
> Energy is 25% of the cost of minning gold and its down from $147
> bbl to $35bbl,Also Auy is a Money maker in the currency swaps between
> their operations and selling gold in dollars, roughly 20%.

Yamana Gold: Finding Value

Thanks, silverwood.

Who knows what gold will do over the next couple of years. I know problems in the banking sector are only just beginning. With unemployment rising very rapidly, banks are now starting to deal with problems that usually occur in a down economy.

One would think that continuing government intervention and an unstable banking environment would only cause the price of gold to rise further.

On Feb 17 11:03 AM silverwood wrote:

> Dan, good analysis and very conservative. There is a strong possibility
> that gold can rise to $1200 and hold a floor of $1000 after that
> this year. That would make AUY a $20+ stock. I'm also glad to see
> someone who is commenting on a company that has some skin in the
> game...Disclosure: I currently hold shares of Yamana Gold. I am also
> long AUY.