The Golden Yamana

Yamana Gold, a relatively new Canadian gold mining company that has recently been approved to be listed on NYSE starting January 12th 2007 under the symbol AUY is a company to watch out. AUY is currently traded on AMEX, and I believe that it is currently a BUY.

Yamana Gold started operations in 2003, primarily focused in Latin America (mainly Brazil and Argentina), and since then its stock price has gone up by a whopping 479.25%. However, in my opinion, even better news is that Yamana Gold still hasn't reached its full potential - its upward growth should continue in the upcoming weeks, months and years. Today, Yamana Gold has 6 operating mines and 3 mines in developmental stages. Since January 2006 Yamana produced approximately 250,000 ounces of gold and it looks to increase its gold production to 1 million ounce per year by 2008. Yamana reported 167% increase in gold production, 367% increase in sales and 545% increase in mine operating earnings in the third quarter of the fiscal year 2006 compared to the third quarter of the fiscal year 2005. In addition to increasing its gold production, it also looks to have significant copper production of 50 million lb. by 2007 and 90 million lb. by 2008. Yamana Gold declared its first dividend of 0.01 USD per share on October 13th 2006 and then again declared its fourth quarter dividend of 0.01 USD per share on December 15th 2006. This is an indication that Yamana's management believes in its future growth prospects and is confident on turning its revenue into profit. Furthermore, Yamana has a strong balance sheet. As of September 2006 its assets were 5 times its liability and it is continuously growing its assets by acquiring new mines.

Other than Yamana Gold's strong revenue growth, low debt and excellent future prospect, there is one more thing in its favor that is worth considering - the strong commodity market for gold and copper. In current times when the economy lives under the fear of inflation, people are buying more and more gold as a hedge against rising inflation and weakening US dollar. As for copper, there is continued demand from various industries such as telecommunications and electronics and this has created a shortage of copper supply in the commodity market. A further significant thing going for Yamana is that it faces less political risks since it operates mainly in Brazil and Argentina, which are the two most stable Latin American countries.

Bottom line, accelerating growth and huge market demand for gold and copper should carry Yamana Gold higher. So investors BUY "AUY" and watch it closely. I believe Yamana Gold should show you the golden way to a greener life.