Canadian gold producer Yamana Gold (AUY) is seeking a listing in the UK, according to a report from the Financial Times. The company is currently listed in Toronto and New York.
The $5.3B company has applied for a standard listing and expects its shares to start trading on the London Stock Exchange in the next couple of months, according to the report.
“Our due diligence tells us that there is billions of dollars of capital available in London that we should be exploiting,” founder Peter Marrone explained to the Financial Times. “This is an ideal time to be joining.”
After Rangold Resources delisted last year, he believes there is a ‘void’ in London for a ‘pure-play’ gold company, – and says the company’s Americas focus (where it has five gold mines) and strong dividend record (paying almost $1B since 2007) will appeal to investors.
Year-to-date, the price of gold has surged just over 19%, while Yamana Gold has seen shares explode by 41%.
Analysts have a cautiously optimistic Moderate Buy consensus on AUY, with an average analyst price target of $5.19. Given the recent rally, that now indicates 7% downside potential from current levels. (See Yamana Gold’s stock analysis on TipRanks).
Canaccord Genuity analyst Carey MacRury reiterated a buy rating on the stock after Yamana Gold reported its second quarter results.
Yamana announced Q2/20 GEO production of 183.5koz, largely in line with MacRury’s estimate of 185.4koz. Gold production of 164.1koz and silver production of 2,008koz were also largely in line with estimates of 165.0koz and 2,133koz.
“Malartic and Jacobina performed better than our forecasts and were offset by lower production at Cerro Moro, El Penon and Minera Florida” the analyst explained.
Plus Yamana reiterated its 2020 production guidance with 54% of production expected in H2/20, after previously revising its guidance to reflect government-mandated restrictions related to COVID-19 at Canadian Malartic and Cerro Moro.
“With a better understanding of the impacts of COVID-19, Yamana updated its cost guidance for H2 to $1,020-$1,060 per GEO. The company expects Q4 to have the best cost profile, along with the highest production” MacRury noted.
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