AUY - Yamana Gold: A Senior Producer To Buy On Dips
- Yamana Gold released an update on its Jacobina Mine earlier last month, highlighting the potential to move to Phase 2 at much lower costs than initially projected.
- Based on trials in Q2, the processing plant has shown it can operate well above 8,000 tonnes per day, reducing the need for an additional ball mill.
- Assuming a H2 2023 commissioning, Jacobina Phase 2 would add ~50,000 ounces of annual output to Yamana's production profile, translating to mid-single-digit production growth at minimal extra cost.
- Given Yamana's already enviable organic growth profile and a very reasonable valuation, I would view any dips below $4.05 as low-risk buying opportunities.
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Yamana Gold: A Senior Producer To Buy On Dips