Yamana Gold Review

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Yamana Gold Inc. is a top-rated gold-producing company that is involved in other precious metal mining. The headquarter of the company is in Toronto and was started in 1994. It started getting involved in gold in 2003 after the restructuring of the company. Apart from mining, the company is also involved in processing, reclamation and exploration. Its services cut across Canada, America, Brazil, Argentina and Chile.

The company digs out significant amounts of gold and other precious metals and processes them, which is how it earned its spot. Yamana Gold is a famous gold mining stock, but you still need to know everything about the company if you want to invest. The best investors are the informed investors. So let us dive in and show you all you need to know about the company.

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Yamana Gold Portfolio

Yamana Gold Review

The company’s portfolio includes five long-life quality operations delivered by talented operators. Their mission is to increase gold production, which will lead to attractive growth opportunities and extend mine life. They also want to increase cash flow and value for their shareholders.

They acquired El Penon, an underground gold and silver mine, in 2007. The mine tremendously increased the company’s cash flow by exceeding production targets every time. They strongly believe in having generational mines in the company’s portfolio. A lot of gold mines usually have a short life of at most ten years. What they refer to as generational mines are mines that can sustain production for decades.

The company's management believes a mining company must have such mines in its portfolio. It builds consistency and steady growth without mishaps. Getting such mines is rare; that is why Yamana Gold boasts of having many of them, which is not the case with their peers. The mines are what generate cash flow; you should not overlook such details as an investor.

The Products Being Offered

Yamana Gold Review

The company is mainly known for producing gold. So their activities and services will primarily benefit people who rely on gold ores. But their production also includes copper and silver. They produce the precious metals in millions of ounces and supply them to metal smelters. The smelters use the products to meet different objectives.

Through the products, the company has been able to generate millions if not billions in revenues. It is also a publicly-traded company, meaning they have stocks listed on prominent exchange firms. The stocks are listed in New York Stock Exchange trades under the ticker AUY and Toronto Stock Exchange- YRI and London Stock Exchange. Yamana Gold has corporate structures in place that it uses for governance and management.

Yamana Gold Major Holders

Insiders own 0.36% of Yamana Gold shares. Shares held by the company are at 51.21% and have a share float of 51.4%. The company has a total of four hundred and eighty-eight share-holding institutions. There is a large number of investors in the company. The two leading institutional shareholders are Van Eck Associate Corporation and Vanguard Group Inc., with 108.45 million and 29.11 million shares, respectively. As of March 30, 2021, these two institutions were the major shareholders.

Responsible Mining

Yamana Gold Review

Yamana Gold is among the trendsetters for responsibly producing gold. They take responsible mining principles seriously. They have focused on reducing their consumption of non-renewable energy. The company also strives to minimize its environmental impact with its mining activities. Their principles cut across all their mining activities, from exploration to decommissioning.

Investors always want to know the environmental compliance of such companies before they put their assets into it. Understanding how Yamana Gold practices its responsible mining will help you decide if they are worth your trouble or not. The company has struggled to create shared benefits with the host communities of the years.

They understand their responsibilities as a mining company will impact the value of their stakeholders significantly. Yamana Gold is committed to showing their mining process is profitable and responsible.

Who Is Likely To Benefit From Yamana Gold?

Gold investors are the ones likely to benefit from the company. There are various reasons why people buy or invest in gold. Some buy it because they find gold to be a safe investment, while others do it to protect themselves against inflation. Some people would say that investing in gold might outpace inflation.

It doesn't matter why you want to invest in gold; the truth remains gold is very valuable. It may continue to be so even in the future because there are so many factors that influence the price of gold. There is more than one way you can invest in gold. You can buy shares of a mining company like Yamana Gold or buy the physical metal itself. You can also invest in exchange-traded funds (ETF) that own mining stocks. But before you invest, you should know that most of these options will not always follow the gold's price. The same has been witnessed with Yamana Gold.

Since the company's formation, their stock declined about 8%, while the price of gold went up nearly 370%. The reason is Yamana Gold piled a lot of debt because they wanted to acquire more mineral reserves. Even though the company destroyed shareholder value over the years, it's turning a great corner and is trying to increase the cash flow. This could make the company an absolute gold mine for people who want to invest.

Is The Company Stock A Buy?

Most analysts think that Yamana Gold (AUY) stock is currently overweight. They received a recommendation rating of 2.6; the stocks are not highly rated by any experienced analysts. However, some analysts advise investors to buy the stock; some recommend it as a hold, while others say it's overweight at the moment.

No one has rated Yamana Gold stock as n underweight. You should expect $0.02 in earnings for every share you buy. But world's greatest investors have made big money by buying cheap stocks and assets with huge upside potential. Yamana Gold is hitting a turning point that will make the company a free-cash-flow machine in the following years, depending on the price of gold. They the changes will reflect on their stocks.

That is something you need to think about when you want to buy the company’s stock today. Even though they don't appear on the top-rated stocks to buy right now, the company holds real potential. So if you are seeking a decent pick and a name in the industry segment, consider Yamana Gold because it has recently received substantial earnings estimate revisions.

Why Should You Invest In Yamana Gold?

Yamana Gold Review

Their track record shows a lot of consistency which is always a good thing for an investor. It means they can deliver results in the long run. The company focuses on increasing dividends that are sustainable to provide returns to its shareholders. You should always consider returns before putting your money on any company.

Yamana Gold has seen a growing free cash flow over the years; it shows the financial strength of the company and the steady growth. Their diverse portfolio can also be a reason why you consider the company a worthy investment. The portfolio is very diverse, and it includes long-life assets like the generational mines. You will feel more secure knowing you are banking your assets on a company not going under any time soon.

You should also consider that the company has an experienced management team, and they practice responsible mining. All these compelling reasons form a strong argument for why you should consider investing in Yamana Gold. At the end of the day, investment decisions are solely yours, and you need all the information you can get before making it.

Is Yamana Gold A Scam?

Yamana Gold Review

This million-dollar question asked by potential investors. You can take a breath because Yamana Gold is not a scam. It's a legit and genuine company that offers profits and value to its shareholders through exploration and mining activities. You can access all the company’s information online and on their website.

Their investment opportunity is in the form of gold stocks which are listed with major exchange firms. That goes to show that the company is genuine in all its operations and services. They have received different financial reports and commendations from well-established organizations over the years. You can also gauge their realness through the hundreds of stakeholders and investors in the company.

Manufacturers have also relied on the company to deliver precious metals, which they use to make different products. If the company were a scam in any way, it would be challenging for the manufacturers and investors to rely on them. Peter Marrone is the founder and the executive board chairman of the company. He is assisted by other key figures in the company whose information can all be accessed on the internet. They maintain transparent and open communications lines at all times.

Pros and Cons

You need an elaborate list with all the good and bad about the company. It gives a clear indication of what you are working with. It’s always wise to compare the positives and negatives to get an overall view of something.

Pros

  • The company has a sound corporate strategy and structure.
  • They understand their responsibilities as a mining company.
  • They have several generational and lucrative mines.
  • Their team of directors is very experienced.
  • It’s a very diverse and inclusive company.
  • They integrate hosting communities in their mining activities.

Cons

  • The stocks are not very highly rated by analysts.

Final Verdict

Yamana Gold is a solid company with valuable products. They are solely based on gold and other precious metal mining and processing. This is all the information you need on the company to form an option. But whether the company is for you or not is something you have to decide on your own. They have a rich portfolio with compelling benefits that can easily sway you to invest in the company.

Yamana Gold has received a lot of praise and commendation for what it is worth, but you have to consider its gold stock ratings before you buy. They continue to explore new fields to expand their operations and eventually increase free cash flow.

Although we do think that Yamana Gold is a solid company, we believe that there are better companies out there to make your investment with if you want to invest in precious metals.

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