Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Yamana Gold Inc. (USA) (AUY) Earnings: An Early Look

Page 1 of 2

Earnings season is in full swing, with huge numbers of companies having already given their latest numbers to investors, and Yamana Gold Inc. (USA) (NYSE:AUY) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Yamana Gold Inc. (USA) (NYSE:AUY)Lately, having a favorable low-cost structure has been essential for mining companies, with substantial cost pressures affecting the way mines do business. Yamana sports some of the most impressive cost figures in the industry. Let’s take an early look at what’s been happening with Yamana Gold over the past quarter and what we’re likely to see in its quarterly report on Wednesday.

Stats on Yamana Gold

Analyst EPS Estimate $0.25
Change From Year-Ago EPS 0%
Revenue Estimate $665 million
Change From Year-Ago Revenue 17%
Earnings Beats in Past 4 Quarters 3

Source: Yahoo! Finance.

Will Yamana Gold shine brighter this quarter?
Yamana hasn’t generated much optimism among analysts lately, with consensus earnings-per-share figures having come down by $0.03 for the just-ended quarter and by a full $0.25 for full-year 2013. Investors have been equally bearish, sending the stock down 17% just since mid-November.

Yamana leads the industry in arguably the most important metric in the mining industry: cash cost. With its latest figure of $201 per ounce, Yamana beats fellow low-cost leader Goldcorp Inc. (USA) (NYSE:GG) while still retaining more potential for production increases than its larger competitor. That has become extremely important, as many players have reined in expansion projects because of high costs and labor considerations.

But recently, gold and silver prices have fallen sharply. Despite strong central-bank purchasing activity in the past year and particularly high interest in SPDR Gold Trust (ETF) (NYSEARCA:GLD) and other exchange-traded gold bullion products, gold is now down 7% over the past year and more than 4% in just the past month.

Last week, Yamana provided a favorable update on its Cerro Moro development in Argentina. The report boosted Yamana’s estimate of indicated mineral resources by 44% and went into detail on how Yamana expects to expand the project. Yet with local Argentine political considerations having led Pan American Silver Corp. (USA) (NASDAQ:PAAS) to defer development of its Navidad mine recently, Yamana has to tread the complex political waters carefully.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!