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Yamana Gold's (AUY) Q4 Earnings Beat, Revenues Decline Y/Y

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Yamana Gold Inc. incurred net loss of $191 million or 20 cents per share in fourth-quarter 2017, narrower than $367.6 million or 37 cents recorded a year ago. Barring one-time items, adjusted earnings came in at 6 cents per share, which topped the Zacks Consensus Estimate of 3 cents.

Revenues fell roughly 1.2% year over year to $478.8 million in the quarter.

Cost of sales was $264.7 million, down 6.8% from $284.1 million a year ago.  

Full-Year Results

For 2017, Yamana Gold incurred net loss of $194.4 million or 21 cents per share, compared with net loss of $307.9 million or 31 cents recorded a year ago.

Revenues inched up 0.9% year over year to $1,803.8 million.

Yamana Gold Inc. Price, Consensus and EPS Surprise

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

Q4 Operational Highlights

Total gold production was 282,041 ounces (including Brio Gold) in the quarter, down 11.4% from 318,368 ounces a year ago.

Total of cost of sales for gold fell roughly 2.4% to $980 per ounce and all-in sustaining costs (AISC) fell to $925 per ounce from $928 in the year-ago quarter.

Total silver production was 1.17 million ounces, down roughly 28% from 1.63 million ounces a year ago. Total of cost of sales for silver fell to $13.26 per ounce in the quarter from $15.58.

Financial Position

Cash flows from operating activities (after considering the net changes in working capital) were $158.5 million for the quarter, down from $163 million a year ago.

Long-term debt rose around 11% year over year to $1,747.7 million at the end of 2017.

Outlook

Yamana Gold expects Cerro Morro to start operations in early 2018 and meaningfully contribute to EBITDA and cash flows in 2018 and beyond. The company expects to produce 900,000 ounces of gold, 8.15 million ounces of silver and 120 million pounds of copper in 2018.

Total cost of sales is expected to be between $1,010 and $1,030 per ounce for gold, $15-$15.25 per ounce for silver and $1.80-$1.85 per pound for copper. AISC (by product) for gold is expected in the range of $725-$745 per ounce.

Price Performance

Shares of Yamana Gold have moved up 18.2% in the past three months, outperforming the 2.9% decline recorded by its industry.

 


 

Zacks Rank & Key Picks

Yamana Gold currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Steel Dynamics, Inc. (STLD - Free Report) , The Mosaic Company (MOS - Free Report) and United States Steel Corporation (X - Free Report) , 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 46.5% over the last six months.

Mosaic has an expected long-term earnings growth rate of 9.5%. Its shares have moved up 28% over the past six months.

U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have rallied 91.9% over the last six months.

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