Momentum Stock Watch: Yamana Gold Inc. (AUY)

Company Profile:

Yamana Gold Inc. engages in the exploration and development of precious metal properties in Brazil, Argentina, Chile, Mexico, and Canada. It explores for gold, silver, and copper. It primarily holds interests in the Chapada, El Peñón, Gualcamayo, Mercedes, Canadian Malartic, Minera Florida, and Jacobina properties. The company was formerly known as Yamana Resources Inc. and changed its name to Yamana Gold Inc. in July 2003. Yamana Gold Inc. was founded in 1980 and is based in Toronto, Canada.

Recent News:

On Nov 17, 2016, the company announced that its wholly-owned subsidiary, Brio Gold Inc. has filed its final prospectus with, and obtained receipts in respect thereof from, the securities regulatory authorities in each of the provinces and territories of Canada in connection with the secondary offering of common shares in the capital of Brio Gold held by Yamana.

For the third quarter 2016, the company reported total gold production of 328,604 ounces, revenue of $464.3 million, net loss of $2.1 million or $0.00 per share, and adjusted earnings of $17.0 million or $0.02 per share.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

AUY’s strengths can be seen in its better growth and strong solvency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI stands at 39.83 with positive bias. We rate Yamana Gold Inc. (AUY) a BUY.