Shares of Yamana Gold Inc. (NYSE:AUY) have been zero.46% decrease at $2.15 in after-hours buying and selling on Wednesday. The corporate beat analysts’ expectations on non-GAAP earnings for the primary quarter of 2019 by 1 cent, having posted 2 cents per share.
Income got here in at $407.1 million, down 10.5% from the prior-year quarter and lacking consensus estimates by $7.four million on account of decrease metallic costs. The typical realized gold worth declined 2% to $1,301 per ounce, the typical realized silver worth fell eight.three% to $15.52 per ounce and the typical realized worth of copper dropped 7% to $2.91 per pound.
Sturdy operations boosted the manufacturing of gold equal to 271,987 ounces, which was up almost 29% 12 months over 12 months. Manufacturing was composed of 235,958 ounces of gold, up 18.2%, and three.02 million ounces of silver, a 236% improve from the prior-year quarter. Copper manufacturing decreased 7.6% to 28.1 million kilos. The crimson metallic contributes about 18 to 19% to whole income.
Elevated manufacturing of equal gold lowered money prices by 5.three% to $666 per ounce offered and trimmed the all-in sustaining price by 6.1% to $930 per ounce.
Along with decrease metallic costs, the sharp decline in working money circulation after modifications in non-cash working capital, down 90% 12 months over 12 months, was attributable to cyclical first-quarter funds.
Yamana mentioned the corporate’s monetary scenario as of March 31 is robust with $695.four million in whole liquidity, of which 16% is offered in money readily available and securities and 84% in undrawn traces of credit score. The online debt is $1.77 billion.
The miner expects to additional energy its stability sheet on account of the sale of its Chapada open-pit, gold-copper mine in Brazil to Lundin Mining Corp. (TSX:LUN). The sale, which is predicted to shut within the third quarter, was introduced on April 15.
Wall Road issued an chubby suggestion score for shares of Yamana Gold, indicating the inventory is projected to outperform the market over the following 52 weeks. The typical goal worth of $three.02 per share was 39.eight% larger than Wednesday’s closing worth of $2.16.
Yamana’s inventory has fallen 28% over the previous 12 months via Might 1 to beneath the 200-, 100- and 50-day easy shifting common traces, underperforming the VanEck Vectors Gold Miners exchange-traded fund (GDX), a benchmark for the gold mining business, by 19%.
The closing worth on Wednesday was 10% above the 52-week low of $2 and 47% beneath the 52-week excessive of $three.23.
An uptrending 14-day relative energy index of 31.32 suggests the inventory is near oversold ranges.
Disclosure: I’ve no positions in any securities talked about.
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Concerning the writer:
If anyone asks what being a worth investor means, Alberto Abaterusso would reply, “The worth investor isn’t just the possessor of the safety that represents the corporate, however he’s the proprietor of that firm. As an proprietor of the corporate the worth investor is actively concerned within the dynamics of that firm and his first concern is how you can have gross sales progressively rising. Additionally, the worth investor might be probably the most demanding individuals on the planet regarding gross sales.”
Abaterusso is a contract author primarily based in The Netherlands. He primarily writes about gold, silver and treasured metals mining shares. His articles have additionally been extensively linked by standard websites, together with MarketWatch, Monetary Instances, 24hGold, Investopedia, Monetary.org, CNBS, MSN Cash, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.