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Yamana Gold (AUY): Q1 EPS of $0.25 misses by $0.01. Revenue of $559M (+17.6% Y/Y) misses by...

Yamana Gold (AUY): Q1 EPS of $0.25 misses by $0.01. Revenue of $559M (+17.6% Y/Y) misses by $42M. (PR)
Comments (3)
  • First things first ... statement is wrong regarding EPS. Results were inline @ $0.25. I don't know where the $0.26 number came from.

     

    Second, revenue was lower because amount of copper processed was below normal due to rainy season that resulted in lower amount of ore processed. Not sure how analyst determine revenue number Q1, but 2nd, 3rd and 4th quarters will probably beat because copper revenue will average 10,000,000 lbs more per quarter than current Q1 results. Based on average price of $3.73 per pound, AUY will receive a revenue boost of 30,000,000 x $3.73 or around 112,000,000 million dollars for remaining three (3) quarters from CU sales. This should lead to a EPS add of approximately (0.65 x $112,000,000)/745,300,000 or $0.15 per share.
    1 May 2012, 08:05 PM Reply Like
  • Hello Gus! All your calculations have me cross eyed...! Put simply, where will the EPS of 0.15 you calculate put Yamana's share value by Dec 12? Thank you!
    2 May 2012, 04:29 AM Reply Like
  • yeti786 ...

     

    Analysts have forecasted AUY to have an earnings on $1.16 per share. With Growth in production and stable to higher gold price, my earnings number for AUY with CU adjustment included could exceed $1.30 per share and even higher next year (FY2013). With a P/E of 15 which would assume a PEG ratio of under 0.5, AUY stock price should be north of $20. If PEG ratio is greater than 0.5, stock has potential to go well beyond $20. If gold gets back to $1,750+ which is technically possible and probable, AUY numbers will be even better. With gold price at an average of $1,691 for Q1, AUY's margin was $1,404 per ounce. All of this assumes that AUY mining operations will continue without any issues.
    2 May 2012, 06:50 AM Reply Like
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