AUY - Yamana Gold: Still Trading At A Discount To Fair Value
- Yamana Gold released its FY2021 Reserve & Resource statement last week, reporting another year of reserve growth, and ending the year with ~13.7 million ounces of gold reserves.
- Notably, this replacement of depletion was achieved without adjusting the company's gold price assumptions, with Yamana's gold price used to calculate reserves remaining well below spot prices at $1,250/oz.
- In addition to reserve growth, Yamana also saw resource growth at Canadian Malartic (50%) and Jacobina, the company's two primary assets.
- Based on what I believe to a fair value of more than $7.00 per share, I continue to see Yamana Gold as reasonably valued, and I would view sharp pullbacks as buying opportunities.
For further details see:
Yamana Gold: Still Trading At A Discount To Fair Value