Yamana Gold inc' USA AUY

1
Yamana Gold inc. USA (AUY)

• Timmy Meyer and Manu Narra

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About Yamana

• Canadian based gold producer
• Owns property in Argentina, Mexico, Chile, Brazil
  and Central America
• Produces gold and other precious metals at an
  intermediate company production level
• Has 4,468 employees
• Produced over 1 million gold equivalent ounces in
  2008 (289,574 in Q2, 2009)
• 10th largest gold producer

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Yamana Sector and Competitors

• Sector Basic Materials
• Industry Gold and Silver (mining)
• A few major competitors
• Barrick Gold Corp. USA (ABX)
• Goldcorp inc. (GG)
• Kinross Gold Corp. USA (KGC)

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Yamana Competitors

• Barrick, the largest gold mining company, paid
  5.6 billion this Q3 to pay off speculative gold
  sales it made in the past.
• Kinross has lowered their estimates for gold
  production.
• Yamana sets an industry low for the cost per
  ounce for the production of gold.

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SRI (Socially Responsible Investing)

• Committed to responsible growth
• Developed the Yamana Integrated Management System
  (SYG) a philosophy to achieve the greatest
  health and safety, community relationship,
  environmental and operational practices.
• By 2010 they plan to cut fossil fuel use, solid
  waste generation, fresh water consumption and
  power usage each by 10 from 2007.

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Stats from Google Finance

• 52 week 3.49 - 12.76
• Vol Avg. 19.39M
• Mkt cap 7.93B
• P/E 18.12
• Div/yield 0.01/0.37
• EPS 0.60
• Shares 733.21M
• Beta 0.94
• Inst. Own 49

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Yamana Reasons to Buy

• Rounded company that mines not only gold, but
  silver and copper too.
• Well established in South and Central America
  with 6 core operations, 3 other operations and
  5 development / exploration operations. Planning
  to maintain an outlook of at least 1.1 million
  gold equivalent ounces produced in 2010 and
  beyond
• Upgraded to outperform by BMO capital

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Yamana Reasons to Buy

• It is a gold stock
• Has uses other than being a currency, such as
  jewelry and industrial applications.
• It is a safe bet during political and
  economically uncertain times.
• When the value of paper currencies goes down, the
  price of gold generally rises (inflation).
• The price of gold has increased steadily.

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Recommendation

• Buy at market price
• Sell at the end of the quarter

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References

• http//www.yamana.com/
• http//www.google.com/finance?qNYSEAUY
• http//www.hoovers.com/yamana-gold/--ID__119590--/
  free-co-competitors.xhtml
• Many Articles from Christopher Barker on The
  Motley Fool, including
• http//msn.fool.com/investing/general/2009/11/02/t
  he-titans-of-gold-strike-again.aspx?logvisitysou
  rceeedmsnlnk0010001published2009-11-02
• http//www.fool.com/investing/general/2009/08/05/t
  he-incredible-irony-of-paltry-gold-profits.aspx
• http//www.bloomberg.com/apps/news?pid20601082si
  da0PdGVPnV8zc
• http//www.reuters.com/finance/stocks/keyDevelopme
  nts?rpc66symbolAUYtimestamp20091103212600