Why Yamana Gold Inc. Shareholders Have Something to Worry About
Yamana Gold Inc. (NYSE: AUY) sees better days ahead for its investors. With the upcoming completion of its Cerro Moro project in Argentina, the company has clearly visible gold and silver production growth on the horizon. That output increase should supply the gold miner with a growing stream of cash flow, which will help get the company's balance sheet into better shape. That improvement would do wonders for its stock, which has crashed more than 80% over the past five years due to the impact of weaker precious metals prices on its financial situation.
That said, while the Yamana Gold's plan makes sense, it needs precious metal prices to cooperate. Given their unpredictability, that should be a major concern for investors, especially since the company's financials aren't yet back on solid ground.
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Source: Fool.com
