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Yamana Gold inc. USA (AUY)

Timmy Meyer and Manu Narra. Yamana Gold inc. USA (AUY). About Yamana. Canadian based gold producer Owns property in Argentina, Mexico, Chile, Brazil and Central America Produces gold and other precious metals at an intermediate company production level Has 4,468 employees

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Yamana Gold inc. USA (AUY)

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  1. Timmy Meyer and Manu Narra Yamana Gold inc. USA (AUY)

  2. About Yamana • Canadian based gold producer • Owns property in Argentina, Mexico, Chile, Brazil and Central America • Produces gold and other precious metals at an intermediate company production level • Has 4,468 employees • Produced over 1 million gold equivalent ounces in 2008 (289,574 in Q2, 2009) • 10th largest gold producer

  3. Yamana: Sector and Competitors • Sector: Basic Materials • Industry: Gold and Silver (mining) • A few major competitors: • Barrick Gold Corp. USA (ABX) • Goldcorp inc. (GG) • Kinross Gold Corp. USA (KGC)

  4. Yamana: Competitors • Barrick, the largest gold mining company, paid $5.6 billion this Q3 to pay off speculative gold sales it made in the past. • Kinross has lowered their estimates for gold production. • Yamana sets an industry low for the cost per ounce for the production of gold.

  5. SRI (Socially Responsible Investing) • Committed to responsible growth • Developed the Yamana Integrated Management System (SYG) – a philosophy to achieve the greatest health and safety, community relationship, environmental and operational practices. • By 2010 they plan to cut fossil fuel use, solid waste generation, fresh water consumption and power usage each by 10% from 2007.

  6. Stats from Google Finance • 52 week: 3.49 - 12.76 • Vol Avg.: 19.39M • Mkt cap: 7.93B • P/E: 18.12 • Div/yield: 0.01/0.37 • EPS: 0.60 • Shares: 733.21M • Beta: 0.94 • Inst. Own: 49%

  7. Yamana: Reasons to Buy • Rounded company that mines not only gold, but silver and copper too. • Well established in South and Central America with 6 core operations, 3 “other” operations and 5 development / exploration operations. Planning to maintain an outlook of at least 1.1 million gold equivalent ounces produced in 2010 and beyond • Upgraded to outperform by BMO capital

  8. Yamana: Reasons to Buy • It is a gold stock: • Has uses other than being a currency, such as jewelry and industrial applications. • It is a safe bet during political and economically uncertain times. • When the value of paper currencies goes down, the price of gold generally rises (inflation). • The price of gold has increased steadily.

  9. Recommendation • Buy at market price • Sell at the end of the quarter

  10. References • http://www.yamana.com/ • http://www.google.com/finance?q=NYSE:AUY • http://www.hoovers.com/yamana-gold/--ID__119590--/free-co-competitors.xhtml • Many Articles from Christopher Barker on The Motley Fool, including: • http://msn.fool.com/investing/general/2009/11/02/the-titans-of-gold-strike-again.aspx?logvisit=y&source=eedmsnlnk0010001&published=2009-11-02 • http://www.fool.com/investing/general/2009/08/05/the-incredible-irony-of-paltry-gold-profits.aspx • http://www.bloomberg.com/apps/news?pid=20601082&sid=a0PdGVPnV8zc • http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=AUY&timestamp=20091103212600

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