AUY is a BUY
Yamana Gold has been one of our favorites the past couple years. We think by the chart below AUY is ready to be bought. As you can see by Motley Fools comments below they agree.
“Yamana Gold (NYSE: AUY) takes the nod from this Fool as the best overall selection within the gold mining sector at this particular stage in the bull market.
With combined proven and probable reserves of gold, silver, and copper in the ground carrying a present market value of about $62 billion, Yamana’s modest $8.19 billion enterprise value is astonishing by comparison.
Incredibly, Monday’s closing share price of $10.53 was first achieved by the stock in April of 2006! Although Yamana’s share count has ballooned by 283% over the intervening period, massive value was generated by a corresponding 272% increase in gold reserves alongside an 80% surge in gold prices. More amazing still, the period in question also witnessed more than a tenfold increase in annual production — from just 112,506 ounces in 2005 to 1.2 million GEOs in 2009. As if on cue, Yamana announced a positive construction decision for the Ernesto/Pau-a-pique project Tuesday morning, as well as an optimized mine plan for the exciting Agua Rica copper/gold project in Argentina”
