Shares of Yamana Gold (AUY) gained 2.1% on Friday after the company reported its fourth-quarter earnings. Adjusted net earnings of $0.11 surpassed analysts’ expectations of $0.09 but remained flat year-over-year.
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Yamana is a Canada-based precious metals producer. It has significant gold and silver production and development stage properties, exploration properties, and land positions.
During the quarter, the company earned revenue of $503.8 million, up 9.1% from the same quarter last year. However, the figure missed the consensus estimate of $513.1 million. In the fourth quarter, Yamana sold 242,486 oz of gold and 2,709,252 oz of silver, compared to 213,439 oz of gold and 2,294,546 oz of silver in the last year’s quarter.
Also, the total cost of sales, cash costs and AISCper GEO came in at $1,091, $642 and $962, respectively, during the quarter, compared to $1,131, $675 and $1,076 in the fourth quarter of 2020.
The company reported an all-time high quarterly cash flow from operating activities of $238.2 million from Yamana mines, up 31.2% year-over-year.
Guidance
Yamana maintains its 2022 production guidance and expects production not to be less than 1,000,000 gold equivalent ounces (GEO). For 2023, it has raised its production guidance from 1,000,000 GEO to 1,030,000 GEO. The company sees further near-term growth continuing in 2024 with production increasing to 1,060,000 GEO.
For 2022, the company expects the total cost of sales, cash costs and AISC not to exceed $1,215, $725 and $1,080 per GEO, respectively.
Stock Rating
Overall, the Street has a bullish outlook on the stock with a Strong Buy consensus rating based on 6 Buys and 2 Holds. The average Yamana price target of $6.10 implies upside potential of about 24.2% from current levels.
Blogger Opinion
TipRanks data shows that financial blogger opinions are 100% Bullish on AUY, compared to a sector average of 69%.
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