Topic: How To Invest

Stock Pickers Digest Hotline – Friday, January 5, 2018

Article Excerpt

YAMANA GOLD INC., $4.03, symbol YRI on Toronto, operates six gold mines, in Canada, Mexico, Brazil, Chile and Argentina. It also holds 79.3% of Brio Gold (symbol BRIO on Toronto); that firm owns three of its own mines in Brazil. In addition, Yamana holds the Canadian Malartic mine in a 50/50 joint venture with Agnico Eagle (symbol AEM on Toronto). The partnership also holds some exploration sites, including the Kirkland Lake and Hammond Reef properties. Agnico Eagle will now buy those exploration prospects from Yamana for $162.5 million. The transaction will not affect the Canadian Malartic mine. Under the agreement, if Agnico Eagle sells either the Kirkland Lake or Hammond Reef property within 24 months of the sale, Yamana will receive a portion of any increase in net proceeds. Like all gold firms, Yamana’s shares are heavily influenced by the direction of gold prices. Still, its positive cash flow and rising production give it speculative appeal. OUR RECOMMENDATION: Yamana Gold is a buy. Yamana Gold recent…

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