{"id":19816,"date":"2019-11-05T07:03:23","date_gmt":"2019-11-05T12:03:23","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=19816"},"modified":"2019-11-06T14:31:40","modified_gmt":"2019-11-06T19:31:40","slug":"yamana-gold-stock-moving-higher-yrito","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/yamana-gold-stock-moving-higher-yrito\/","title":{"rendered":"Why Yamana Gold Stock Could Keep Moving Higher"},"content":{"rendered":"<p><strong>Yamana Gold&#8217;s<\/strong> [stock_market_widget type=\"inline\" template=\"generic\" color=\"default\" assets=\"YRI.TO\" markup=\"(TSX: {symbol} {currency_symbol}{price} ({change_pct}))\" api=\"yf\"] latest results prove that <a href=\"https:\/\/capital10x.com\/old\/yamana-gold-get-better-yrito\/\">the company\u2019s turnaround<\/a> is here to stay. Though the gold miner stuttered a bit in the third quarter, it managed to provide enough evidence that it is pulling the right strings to boost its business.<\/p>\n<p>Let\u2019s take a closer look at the reasons why <a href=\"https:\/\/capital10x.com\/old\/yamana-gold-earnings-season-yrito\/\">Yamana stock<\/a> looks on track to rise higher even after gaining nearly 50% this year.<\/p>\n<h2>Yamana Is Gradually Getting Better<\/h2>\n<p>Yamana Gold\u2019s results will look like a mixed bag at first glance. The company\u2019s revenue was down nearly 16% year over year during the quarter to $357.8 million. This <a href=\"https:\/\/seekingalpha.com\/news\/3509422-yamana-gold-eps-beats-0_03-misses-revenue\">missed the Wall Street consensus<\/a> by nearly $15 million.<\/p>\n<p>Yamana\u2019s quarterly gold production came in at 238,600 ounces. However, production fell substantially on a year over year basis as gold output was down 22%. More specifically, <a href=\"https:\/\/capital10x.com\/old\/yamana-gold-get-better-yrito\/\">Yamana<\/a> recorded total gold production of nearly 210,000 ounces during the quarter as compared to almost 269,000 ounces a year ago.<\/p>\n<p>This reduction in output was a result of the sale of the Chapada mine that was completed in early July. The sale is having a positive impact on Yamana\u2019s cost profile, bottom line, and cash flow.<\/p>\n<p>Yamana\u2019s all-in sustaining costs increased to $1,039 an ounce as compared to $988 per ounce in the same period last year.<\/p>\n<p>However, Yamana was saved to some extent by favourable gold prices. The company managed to increase its adjusted net earnings to $49.5 million during the quarter as compared to $23.6 million in the prior-year period. Thanks to this, Yamana\u2019s net free cash flow nearly doubled to $100 million in the third quarter.<\/p>\n<p>This improved bottom line and cash flow performance can be attributed to the fact that Yamana enjoyed a gold price of $1,473 an ounce during the quarter. That was nearly 21% higher than the year-ago period. By comparison, the company\u2019s costs increased at a slower pace of only 5%. According to Yamana\u2019s press release:<\/p>\n<div class=\"su-quote su-quote-style-default\"><div class=\"su-quote-inner su-u-clearfix su-u-trim\">The change was largely driven by higher gross margins due to favorable metal price increases with stable costs across Yamana mines and a positive net change in working capital.<\/div><\/div>\n<p>However, for Yamana to sustain the momentum, the company needs to boost production to take advantage of higher gold prices.<\/p>\n<h2>What Next for Yamana Gold?<\/h2>\n<p>Analysts expect Yamana Gold\u2019s revenue to drop in the double digits this year, driven by the sale of Chapada. However, the 2020 revenue is <a href=\"https:\/\/finance.yahoo.com\/quote\/YRI.TO\/analysis?p=YRI.TO\">expected to decline<\/a> just 3.5%, which is not surprising as the comparisons will become more favourable.<\/p>\n<p>More importantly, the company\u2019s earnings are expected to pick up the pace next year. Analysts expect Yamana to deliver earnings of $0.19 per share as compared to an estimated $0.11 per share in 2019. This seems possible given the strength in gold prices, and also the fact that Yamana is taking steps to boost production.<\/p>\n<p>So, it would be a good idea for investors to keep holding Yamana stock because it seems capable of delivering more upside.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yamana Gold&#8217;s (TSX: YRI.TO) financial performance is expected to improve in the coming quarters, which is why investors should continue to hold the stock.<\/p>\n","protected":false},"author":8,"featured_media":14743,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[208,533,534],"class_list":{"0":"post-19816","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-metals","8":"tag-company-news","9":"tag-yamana-gold","10":"tag-yri"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 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