Topic: How To Invest

Power Growth Investor Hotline – Friday, April 22, 2022

Article Excerpt

YAMANA GOLD INC., $7.52, is a buy. The miner (symbol YRI on Toronto) owns and operates five gold mines, in Canada, Brazil, Chile and Argentina. This includes the Cerro Moro gold/silver mine in Argentina. It started up in mid-2018. Yamana now plans to seek better terms from its lenders including Bank of Nova Scotia and Citigroup. That’s after earning an upgrade from debt-rating service S&P Global Ratings. S&P has raised Yamana to investment grade (albeit its lowest investment-grade rating), citing an expectation that the company will maintain low debt levels over the next several years. It also upgraded its view on Yamana’s resilience to potential future declines in gold prices. Investors should note the company held cash of $525.0 million U.S. on December 31, 2021; and its debt of $772.8 million U.S. is a low 14% of its market cap. Like most gold stocks, Yamana is heavily influenced by gold prices. Still, the company’s positive cash flow and steady production—as well as its rising…