Yamana Gold Has Doubled From March: What to do Now?
Due to the economic uncertainties brought about by the coronavirus pandemic, investors have been looking to invest in safe-haven assets and gold has always been the asset of choice. As a result, the precious metal has gained considerably in 2020 so far, and consequently, it has also led to renewed interest in gold mining stocks. One of the notable gold stocks in the market is that of Yamana Gold (TSX: YRI) (NYSE:AUY) and here is a closer look at the company.
Strong Rally in 2020
The uncertainties in the market proved to be quite beneficial for the Yamana Gold stock. The selloff in the stock market in March had taken the price of gold to its highest in a decade. As a result, the Yamana stock surged to $9.29 a share from its 52 week low of $3.11 a share.
The company is involved in the production of both silver and gold. However, there are other factors to consider as well. Recently, Yamana bumped its dividend payout by as much as 50% and currently, the annual dividend yield is quite impressive at 1.94%.
Last month the company announced financial results for the third quarter and the numbers were impressive. Operating cash flow surged to as much as $215 million, which is the highest for Yamana since 2015.
On the other hand, the company managed to knock down its net debts by as much as $148.9 million. At this point, Yamana has emerged as a compelling option for many investors who are looking to invest in gold stocks.
In addition to the stellar performance in the third quarter, the company soon made another major announcement that must have come as a boost for many investors. Earlier in November, Yamana announced that it expanded its presence further in the Abitibi region in Canada through an acquisition.
The company announced that it reached an agreement with Monarch Gold Corporation by way of which it acquired the Camflo and Wasamac properties. The transaction was completed by way of both cash and shares that totaled C$152 million.
These are important acquisitions and further expand Yamana’s presence in Canada. It should be noted that the company is involved in the exploration of gold as well as silver in both South America and Canada. As the price of gold rises further, Yamana is in a strong position to benefit from the situation.
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