Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, March 28, 2008

Article Excerpt

YAMANA GOLD $15.35, symbol YRI on Toronto, reports that earnings excluding one-time items were $0.06 a share in the three months ended December 31, 2007, compared to nil per share a year earlier. (All figures except share price in U.S. dollars.) Cash flow per share rose to $0.07 from $0.01. Revenues more than tripled to $218.6 million from $60 million. Earnings rose even though operating costs were higher and the Brazilian real rose 20% against the U.S. dollar. Most of Yamana’s costs are in Brazil, while the metal it sells is priced in U.S. dollars. Lower copper prices also hurt profits. Despite the higher profits, the stock fell because its earnings failed to meet consensus expectations. However, Yamana’s recent acquisition of Meridian and Northern Orion, plus earlier acquisitions, will give it an estimated 1.3 million ounces of gold production in 2008, and up to 2.2 million ounces by 2012. The company could generate more than $2 billion in cash flow annually by…