Yamana Gold (TSX: YRI)(NYSE: AUY) shares climbed 5% after announcing strong results for its full year 2021. Further, it updated its guidance — not just for 2022 but through 2024 and the next decade.
- Yamana Gold stock declared its first dividend of US$0.03 per share. This will come to US$0.12 per year.
- The gold miner maintained its 2022 production guidance, achieving no less than 1,000,000 gold equivalent ounces.
- 2023 and 2024 guidance were increased to 1,030,000 and 1,060,000 respectively.
- Yamana gold stock expects production of 1.2 million gold equivalent ounces by 2028 from its Wasamac project alone.
What happened for Yamana gold stock?
Yamana gold stock announced a positive outlook for 2022, increasing its guidance for the next three years and the next decade as well. While the miner expects its mining production to drop compared to 2021 levels slightly in 2022, it maintains that through 2023 and 2024 its production will seriously increase.
That increase will reach one million gold equivalent ounces (GEO) in 2022, 1.03 million in 2023, and 1.06 million by 2024. Furthermore, the company looks to decrease costs by upping production in its lowest-cost operation, Jacobina. This will help improve overall cash flow and margins.
The stock also introduced its first decade-long outlook last year, expanding on it in this report. The company maintained that the 1.2 million GEO outlined last year remains a conservative target, and could reach as high as 1.5 million GEO.
What did Yamana gold management say?
Shares continued to climb after this news, and management remained confident that Yamana gold stock would continue to be able to fund even more operations in the near and long term. And analysts weighed in both before and after the announcement, happy with the results.
One such analyst upped the Yamana gold stock target even before the results, given its strong track record with guidance, exploration, and growth from its reserve. The stock is set to outperform and currently trades at $6.20 per share. Analysts give it a consensus target price of around $7 per share as of writing.
What’s next for Yamana gold stock?
Investors now have several reasons to look into Yamana gold stock. There are the stable and conservative growth estimates for not just 2022 but through to 2028 for exploration and production. There is tonnes of cash on the books to fund further growth. And it has several low-cost mines that can pick up production, at least in 2022 after announcing production may be less than 2021.
But, of course, there’s also a brand-new dividend. So, for shareholders of record on Mar. 31, you can pick up this payment on Apr. 14, 2022. That dividend comes to US$0.12 per share per year, or a yield of 1.93% as of writing.
Shares are up 2% in early morning trading on Friday and 9.5% in the last five days. Shares are up 12.2% in the last year.
