Yamana Gold (AUY) Announces Buyback of Additional Shares


Yamana Gold Inc.


AUY

announced the repurchase of an additional 1,584,500 common shares under its normal course issuer bid. The company repurchased a cumulative total of 3,321,276 common shares for roughly C$18 million since the initiation of its share buyback program for up to 5% of the outstanding shares.

The company intends to be selective and opportunistic in terms of share buybacks expecting to enter market when allowed and at times when the trading range of its shares do not reflect the underlying value.

Yamana Gold is focused on increasing shareholders’ returns through capital returns program, and additional share buybacks will be determined based on market conditions, share price as well as best use of available cash in addition to further considerations. Common shares purchased under the normal course issuer bid will be cancelled.

The company, recently bolstered its financial strength by reducing debt through the completion of $500 million 10-year unsecured senior notes offering and redemption of existing notes.

Also, it has organic growth projects with high returns, including the Jacobina Phase 2 expansion, the Wasamac project and the Odyssey underground project at Canadian Malartic. The company plans to fund the projects with free cash generated and cash on hand.

Shares of Yamana Gold have declined 27.9% compared with 27.5% fall of the

industry

.

Zacks Investment Research

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Zacks Rank & Key Picks

Yamana Gold currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are

Nucor Corporation


NUE

,

Dow Inc.


DOW

and

Cabot Corporation


CBT

.

Nucor has a projected earnings growth rate of around 489.2% for the current year. The company’s shares have soared 170.9% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see


the complete list of today’s Zacks #1 Rank stocks here.

Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 36.5% in the past year. It currently holds a Zacks Rank #2 (Buy).

Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 39.7% in the past year. It currently carries a Zacks Rank #2.


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