Update: Yamana Gold Suspends C1 Santa Luz But Hits Record Production - Bull Thesis Impacted
- Yamana Gold has just announced C1 Santa Luz Ramp-Up Will Be Suspended While Pilar is on Schedule and the company hit record monthly production.
- When I last opined on Yamana, I had highlighted the projects in Brazil as potential sources of strong production in 2014 and did not anticipate C1 Santa Luz activity suspension.
- The decision to temporarily suspend ramp-up activities at C1 Santa Luz falls in line with Yamana’s focus on maximizing cash flow rather than production only.
- Near-term my bullish outlook is further weakened but over the long-term it is strengthened as C1 Santa Luz will become a sustainable operation when gold prices rebound.