Picture: El Peñon. Yamana Home site.
Yamana Gold (NYSE: AUY)
This article is an update of my preceding article on Yamana Gold published on December 22, 2015.
Today, January 14, 2016, Yamana Gold released the preliminary operational results for the year 2015 and 2016-2018 outlook.
1 - Actual Total Gold Production for Yamana for 4Q'15 and 2015.
|Gold Segment||Total|| |
|Fazenda Brazileiro||(61,000) Brio||-||-||-||-|
Graph 2015 Production Snapshot
Note: Chapada mine is producing copper also -- 131 M Lbs in 2015.
Price of Gold per Oz:
|AUY Realized gold price $||1,104||1,122||1,196||1,217||1,199||1,276|
Q3'15 Financial Snapshot and revenues estimated for 4Q'15.
|Gold Production Oz||345,871||325,897||298,818||304,874|
in M lbs
|Realized gold price $||1,104||1,122||1,196||1,217|
|Mine operating earnings $ million||-||49.7||58.4||40.2|
Adjusted operating cash flow before change in non-cash working capital
Cash and Cash equivalent
Dividend per share
Shares outstanding (diluted)
Yamana Gold released its production estimate for 2015 today and the production numbers quite positive with a potential revenue up 4% quarter over quarter, despite a depressed price of gold just barely above $1,100/ Oz.
However, the big issue that may affect the stock today is the following:
As part of a regular evaluation of the Company's dividend, the Company has decided to revise its policy and approach to dividends. Given the cyclical nature and current volatility of the gold business, and the volatility in markets generally, the Company strives to strike a proper balance between the financial discipline of paying a dividend and managing its business. In the context of today's markets, the current dividend level is considered too high.
The revised baseline level is now $0.02 per share annually beginning with the declaration and payment of the first quarter 2016 dividend.
Finally, I like the steady stream of production through 2018, it makes me more confident that it is only a down cycle for the company which will survive.
I recommend accumulating the stock at or under $1.65.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in AUY over the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.