Yamana Gold Inc. (NYSE: AUY) is scheduled to release its first-quarter earnings after the closing bell on Tuesday, May 3, 2011. Analysts, on average, expect the company to report earnings of 22 cents per share on revenue of $519.98 million. In the year ago period, the company reported earnings of 10 cents per share on revenue of $346.34 million.
Yamana Gold Inc. engages in the acquisition, exploration, development, and operation of gold properties. The Company has significant properties involved in gold production, and other precious metal production, development, exploration and land positions throughout the Americas including Brazil, Argentina, Chile and Mexico.
In the preceding fourth-quarter, the Toronto, Canada-based company's net income was $160.4 million, or 22 cents per share, compared to $36.2 million, or 5 cents per share, in the year-earlier period. On an adjusted basis, the company earned 23 cents a share in the latest quarter. Revenue surged 34 percent to $535.1 million from $399.8 million in the same quarter last year. Analysts, on average, expected the company to report earnings of 20 cents per share on revenue of $535.90 million.
At its last earnings call, Yamana said that it continues to expect total production for 2011 in a range of 1.04 million to 1.14 million gold equivalent ounces. "This was an exceptional year for Yamana. In addition to achieving record revenues, record earnings and record cash flow, we made construction decisions on three new development projects which will add to production starting in 2012. We will increase production by over 60% in the next four years, continuing to deliver," Chairman and CEO Peter Marrone said in a statement.
The company expects production to rise in 2012 and 2013 as its development projects start moving towards achieving full capacity. The company hopes to produce 1.20-1.33 million gold equivalent ounces in 2012 and 1.46-1.68 million ounces in 2013. 2014 production is targeted at more than 1.7 million GEO as development projects achieve full production or any further exploration successes and optimizations and expansions that are presently underway are completed. This represents production growth over four years of approximately 65% from 2010 production levels. This production growth does not include additional production from new projects, expansions and optimizations now under evaluation.
The company is pursuing further optimizations and expansions of current and planned mines that would further increase production, all of which are being evaluated in 2011. In November 2010, the company had said that its exploration program had found significant new resources at its Mercedes silver and gold project in Mexico, which will start production in 2012.
Gold reached record in April as investors sought to hedge financial assets against a weakening dollar and accelerating inflation. Gold advanced 32 percent in the past year and is set for its 11th annual gain. Gold has gained 7.7 percent this year, extending a decade- long advance, the best run since at least 1920, as the prospect of currency debasement and accelerating inflation fuel investor demand. Fed Chairman Ben S. Bernanke signaled recently that the U.S. central bank will maintain monetary stimulus. The central bank kept its target rate for overnight lending between banks at zero to 0.25 percent, while ending $600 billion of bond purchases on schedule in June. Fighting in Libya and sovereign-debt turmoil in Europe have also contributed to the rally this year.
Full Disclosure: None.
