Globe says Barrick, others seen eyeing Yamana

Yamana Gold Inc (C:YRI)
Shares Issued 699,678,540
Last Close 11/19/2008 $4.59
Thursday November 20 2008 - In the News

Also Barrick Gold Corp (C:ABX) In the News
Also Kinross Gold Corp (2) (C:K) In the News
Also Newmont Mining Corp of Canada Ltd (C:NMC) In the News

The Globe and Mail reports in its Thursday edition that with the markets in flux and shares trading for a fraction of where they were earlier this year, talk of consolidation is in the air. The Globe's Steve Ladurantaye writes that a report Wednesday, Canaccord Adams took a look at some companies it believes will be the target of takeover attempts in the coming months. Among these are Yamana Gold. Canaccord says Yamana is likely receiving a long look from rival producers Barrick Gold, Kinross Gold and Newmont Gold. Yamana is steadily increasing production, and its flagship El Penon mine in Chile would be a welcome addition to any gold miner's holdings. Action could heat up later this month, as the company gives analysts tours of its South American developments. The company's shares are down 60 per cent on the year. "Yamana still trades at a heavily discounted valuation, at only 4.1 times 2009 [estimated] cash flow versus sector average of 10.5 times," Canaccord says. The broker adds, "In periods of great market volatility, it takes strategic investors time to ascertain the true long-term value of assets. However, we believe strategic investors are about to draw a line in the sand on fundamental values."