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Yamana (AUY) Closes Sale of Equinox Gold Shares & Warrants
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Yamana Gold Inc. recently declared that it has closed its previously-announced sale of 12,000,000 common shares of Equinox Gold and 6,000,000 warrants of Yamana to acquire Equinox’s common share to qualified purchasers for C$10 per unit or gross proceeds of C$120 million.
Notably, the shares and warrants were sold through Cormark Securities and Stifel GMP.
Each warrant entitles the holder to purchase one additional common share of Equinox, owned by Yamana, at an exercise price of C$13.50 for nine months expiring on Jan 15, 2021. Yamana will receive total gross proceeds of C$201 million in case all the warrants are exercised.
With the initial proceeds of C$120 million from the closure of the Equinox shares, the preliminary cash and net debt of Yamana, on a pro forma basis, were more than $400 million and around $790 million, respectively, at the end of the first quarter. Hence, this offers Yamana a solid financial position that complements its operating efficiency.
Shares of Yamana have surged 95.5% in the past year compared with 57% growth of the industry.
The company recently announced preliminary production results for first-quarter 2020.
In the first quarter, the company produced 192,238 ounces of gold and 2.73 million ounces of silver. Total gold equivalent ounces (GEO) produced in the quarter were 221,746.
Cost of operations in the first quarter was in line with the company’s expectations. Moreover, costs were favorably impacted in the quarter by foreign exchange swings. Overall, sales of gold and silver in the first quarter were roughly equal to production figures.
In fact, Yamana is likely to have witnessed a strong financial performance in the to-be-reported quarter, partly owing to net debt reduction.
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Kinross has a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 90.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have soared 74.4% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 45.1% for 2020. The company’s shares have gained 89.1% in a year.
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Yamana (AUY) Closes Sale of Equinox Gold Shares & Warrants
Yamana Gold Inc. recently declared that it has closed its previously-announced sale of 12,000,000 common shares of Equinox Gold and 6,000,000 warrants of Yamana to acquire Equinox’s common share to qualified purchasers for C$10 per unit or gross proceeds of C$120 million.
Notably, the shares and warrants were sold through Cormark Securities and Stifel GMP.
Each warrant entitles the holder to purchase one additional common share of Equinox, owned by Yamana, at an exercise price of C$13.50 for nine months expiring on Jan 15, 2021. Yamana will receive total gross proceeds of C$201 million in case all the warrants are exercised.
With the initial proceeds of C$120 million from the closure of the Equinox shares, the preliminary cash and net debt of Yamana, on a pro forma basis, were more than $400 million and around $790 million, respectively, at the end of the first quarter. Hence, this offers Yamana a solid financial position that complements its operating efficiency.
Shares of Yamana have surged 95.5% in the past year compared with 57% growth of the industry.
The company recently announced preliminary production results for first-quarter 2020.
In the first quarter, the company produced 192,238 ounces of gold and 2.73 million ounces of silver. Total gold equivalent ounces (GEO) produced in the quarter were 221,746.
Cost of operations in the first quarter was in line with the company’s expectations. Moreover, costs were favorably impacted in the quarter by foreign exchange swings. Overall, sales of gold and silver in the first quarter were roughly equal to production figures.
In fact, Yamana is likely to have witnessed a strong financial performance in the to-be-reported quarter, partly owing to net debt reduction.
Yamana Gold Inc. Price and Consensus
Yamana Gold Inc. price-consensus-chart | Yamana Gold Inc. Quote
Zacks Rank & Stocks to Consider
Yamana currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Kinross has a projected earnings growth rate of 41.2% for 2020. The company’s shares have surged 90.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have soared 74.4% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 45.1% for 2020. The company’s shares have gained 89.1% in a year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>