Where Will Yamana Gold Inc. Be in 3 Years?
Like most of its peers, Yamana Gold (NYSE: AUY) has struggled to create shareholder value over the long term. While most gold stocks have been handily beaten by the returns of the S&P 500 in the last five- and 10-year periods, the company's shares rank at the bottom of nearly every comparison. Total returns of negative-85% and negative-74% in those respective periods will do that.
Remarkably, despite the awful historical performance of Yamana Gold stock, it has some of the best growth prospects in the industry. Several mines new and old are slated to increase gold and silver production in the next two years, which should increase companywide production of each precious metal by at least double digits. Growing production should also result in growing cash flow, making it easier to reduce debt and potentially increase its dividend -- if selling prices cooperate.
The nearly overnight turnaround in the company's prospects begs the question, where will Yamana Gold be in three years?
Source: Fool.com
