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Yamana Gold's (AUY) Q1 Earnings In Line, Revenues Rise Y/Y

Yamana Gold Inc.AUY incurred net loss of $160.1 million or 17 cents per share in first-quarter 2018 compared to breakeven results recorded a year ago.

Barring one-time items, adjusted earnings came in at a penny per share, which was in line with the Zacks Consensus Estimate.

Revenues rose roughly 11.4% year over year to $449.7 million in the quarter.

Cost of sales was $259.2 million, up 8.9% from $238 million a year ago.

Yamana Gold Inc. Price, Consensus and EPS Surprise

Yamana Gold Inc. Price, Consensus and EPS Surprise | Yamana Gold Inc. Quote

Q1 Operational Highlights

Total gold production was 248,088 ounces (including Brio Gold) in the quarter, down 3.7% from 257,533 ounces a year ago.

Total of cost of sales for gold rose roughly 1.3% to $1,035 per ounce and all-in sustaining costs fell to $703 per ounce from $902 in the year-ago quarter.

Total silver production was 899,261 million ounces, down roughly 6.4% from 960,820 million ounces a year ago. Total of cost of sales for silver rose to $15.20 per ounce in the quarter from $15.14.

Financial Position

Cash flows from operating activities were $122.4 million for the quarter, up from $51.3 million a year ago.

Long-term debt rose around 2.7% year over year to $1,638.3 million at the end of first quarter.

Outlook

Per the company, gold production for the first quarter exceeded its plan, with mine site costs in-line with or better than expectations. It also reiterated production and cost guidance for 2018. The company continues to expect roughly 46% of total copper production and 47% of total gold production from Yamana Mines during the first half of the year.

Notably, the production weightings have not considered the company's latest mine, Cerro Moro, where the first ore was fed to the mill on Apr 25. Activities at Cerro Moro during the first quarter have positioned the company's operation to deliver on production expectations this year. Cerro Moro is progressing well with feed grades and milling rates are expected to ramp up through the second quarter. The company expects first dore in May 2018.

Price Performance

Shares of Yamana Gold have lost 8% in the past three months, underperforming the 2.1% decline recorded by its industry .

Zacks Rank & Stocks to Consider

Yamana Gold currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. STLD , Huntsman Corporation HUN and Kronos Worldwide Inc. KRO , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 24.6% over a year.

Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have rallied 19.6% over a year.

Kronos has an expected long-term earnings growth rate of 5%. Its shares have surged 38% over a year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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