According to an Oct. 16 research note, Yamana Gold Inc. (YRI:TSX; AUY:NYSE; YAU:LSE) produced 257 Koz gold in Q3/17 from six of its seven mines (excluding Brio). The quantity achieved surpassed BMO Capital Markets' expected 240 Koz "based on better-than-expected production from Chapada, Malartic and El Peñón, offset by lower production at Minera Florida," indicated analyst Andrew Kaip.
As for other metals, Yamana produced 37.1 Mlb copper, which beat BMO's anticipated 33.9 Mlb, Kaip added. It generated 1.43 Moz silver, which was in line with BMO's estimate.
About the Canadian miner's Q3 performance, Kaip concluded that "incorporating the stronger-than-expected production results is expected to have a positive impact to earnings."
Yamana's gold production for the first three quarters of 2017 is 717 Koz, Kaip noted. This represents about 76% of its 940 Koz gold production guidance for this year. Although the company increased its guidance for gold once already in 2017, it is "currently evaluating whether or not to increase production guidance for gold, silver and copper based on year-to-date production and an expected strong Q4/17," he wrote.
Kaip also noted that as of Sept. 30, Yamana had "approximately $125 million in cash."
This metals producer will report complete Q3/17 operational and financial results on Oct. 26 followed by a conference call on Oct. 27.
BMO Capital has a Market Perform rating and $3.25 per share price target for Yamana, whose shares are trading at around $2.64 per share.
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