Yamana Gold Inc.
Yamana Gold Inc. (NYSE: AUY) is a Canadian precious metals producer that generates a substantial amount of gold and silver. It also engages in discovering, extracting, processing, and reclamation of precious metals and other allied operational activities. The Canadian Malartic mine in Canada (50% interest), the Jacobina mine in Brazil, the El Peón and Minera Florida mines in Chile, and the Cerro Moro mine in Argentina are the company's primary mining properties. The MARA project in Argentina (56.25% interest) and the Wasamac project in Canada are two of the company's major projects.
Why Should Investors Book Profit?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
AUY's share price has inclined 40.82% in the past three months and is currently leaning towards the higher band of the 52-week range of USD 3.70 to USD 5.76. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 4.79.
Considering the company's declining profitability, margin stress, weak liquidity profile, current valuation and associated risks. we recommend a "Sell" rating on the stock at the closing price of USD 5.52%, traded flat, as of March 11, 2022.
Three-Year Technical Price Chart (March 11, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.