Spot Gold closed up over $20/oz, at approx. $930+/oz today amid another 4% sell off in the DOW which set a new low of 6594.
Yamana reported excellent YE results today:
Financial and Operating Highlights for the three-and twelve-month periods ended December 31, 2008 include:
- Revenues of $1.1 billion for the year.
- Net earnings of $179.4 million, or $0.25 per share, and $434.8 million or $0.63
per share, respectively.
- Total production from all mines of 254,774 gold equivalent ounces (GEO) and
982,897 GEO, respectively, in line with previously announced guidance.
- Average co-product cash cost of $383 per GEO and $384 per GEO, respectively, in
line with previously announced guidance. By-product cash costs for the year were
$136 per GEO.
Yesterday Yamana announced increased reserves: Proven and probable gold reserves increased to 19.4 million ounces as of December 31, 2008. Total new discovered proven and probable gold reserves totaled 2.5 million ounces in 2008. With approximately 1.0 million ounces having been mined in 2008, net gold reserves increased by approximately 1.5 million ounces, representing a net increase of eight percent. Total measured and indicated gold resources increased significantly to 15.7 million ounces, up 22 percent from 12.9 million ounces a year earlier. Approximately 7.9 million new ounces of gold were added across all categories before production, which exceeds the Company's previous expectation of 7.0 million new ounces. Discovery costs for proven and probable plus measured and indicated gold ounces were approximately US$12.00 per gold ounce which compares well to the industry average.
I currently own 8,000 Yamana Gold Warrants and would own more but I don't like the relatively short Feb., 2010 expiry date. I think Yamana and Iamgold are roughly equivalent in terms of their growth potential.
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I was in Minneapolis for a few days but I see
ReplyDeleteThe Fools are impressed with the Yamana potential. See http://www.fool.com/investing/general/2009/03/09/the-ramped-up-resurgence-of-yamana-gold.aspx
It certainly does look like the spot price of gold affects the Yamana stock price. Don't have time to do a definitive (backcasting) study on this...and in these uncertain times the relationship might change before the study is completed anyway!
ReplyDeleteThe spot price of gold is below $900 for the first time in a month. And still going down at this time...
ReplyDeleteI also think the price of gold has nowhere to go but up as the US and the rest of the world kick in their stimulus plans. So much for the future farther out...
Also, Jeff, maybe you have something because the broad-based indexes are also up smartly this morning. Maybe bad news is good for gold, and also for gold mining where the company has a lot of reserves.