Yamana Gold (AUY) Ups Gold Production Target on Mine Exploration


Yamana Gold Inc.


AUY

recently provided an update on the Wasamac, Odyssey and Jacobina mine exploration projects.

Based in Quebec, Wasamac is a development-stage underground gold project. Yamana discovered a new shear zone at Wasamac, which provides exceptional exploration potential and offers scope to expand the mineral inventory. This will support the company’s plan to achieve annual gold production of 200,000 ounces over a mine life of 15 years. The estimate is higher than the approved development plan of an average 169,000 ounces per annum over a mine life of 10 years.

Odyssey underground project continues to progress well with exploration activities. Gold production from the Odyssey mine is expected to ramp up from 2023 to 2028 as the Canadian Malartic open pit operation winds down. The underground operation will be in full production from 2029 and is expected to produce 500,000 to 600,000 ounces gold annually on a 100% basis. This will extend Malartic’s mine life by 10 years to 2039. Yamana and

Agnico Eagle Mines Ltd.


AEM

each hold a 50% interest in the Canadian Malartic General Partnership, the owner and operator of the Canadian Malartic mine.

Yamana expects average annual gold production in Quebec, including production from Wasamac and the Odyssey underground mine to reach around 500,000 ounces by 2028, and will continue at this level through at least 2041.

At Jacobina mine, the Phase 2 expansion is progressing ahead of schedule, with permitting now expected by early 2022. This will increase Yamana’s second-phase expansion to a production level of 230,000 ounces per year for multi-decades.

The plant debottlenecking study at Minera Florida mine is progressing on schedule with the focus on increasing mine and plant throughput from 74,500 to 100,000 tons per month. This will increase gold production to 120,000 ounces per year.

Price Performance

Shares of Yamana Gold have declined 30.7% compared with a 16.6% fall of the

industry

.

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Zacks Rank & Key Picks

Yamana Gold currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are

Olin Corporation


OLN

and

Bunge Limite

d

BG

, each flaunting a Zacks Rank #1 (Strong Buy). You can see


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

Olin’s third-quarter 2021 adjusted earnings beat the Zacks Consensus Estimate, while revenues missed the same. It has an expected earnings growth rate of around 740% for the current fiscal year. The Zacks Consensus Estimate for current-year earnings has been revised 20.5% upward in the past 60 days.

Olin’s shares have surged 229% in the past year. The company has a long-term earnings growth of 56%.

Bunge’s third-quarter 2021 earnings and sales beat the respective Zacks Consensus Estimate. It has a trailing four-quarter earnings surprise of 105.7%, on average. The company has an estimated earnings growth rate of around 45% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 36%.

Bunge’s shares have appreciated 60% in the past year. It has a long-term earnings growth of 6.7%.


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