Globe says it's worth panning for Yamana Gold

2009-01-06 08:55 ET - In the News

The Globe and Mail reports in its Tuesday, Jan. 6, edition that Yamana Gold tumbled 73 cents to finish Monday in Toronto at $8.52 (all figures Canadian unless otherwise stated).

The Globe's Allan Robinson writes in the Eye On Equities column the stock has a one-year range of $4.29 to $19.79. TD Securities analyst Steven Green notes that Yamana has completed a $135-million equity financing and secured an additional $200-million (U.S.) revolving credit facility in addition to its existing $300-million facility.

The analyst says Yamana now has ample liquidity. Nonetheless, Mr. Green downgraded his rating to "buy" from "action buy list." As well, he lowered his price target to $11 (U.S.) from $12 (U.S.).

The Globe reported on Oct. 1 that Sprott Asset Management manager Peter Hodson had gone on a shopping spree, "snapping up bargains" like Yamana. It was then trading at $8.75. Mr. Hodson said, "It's a candy store opportunity if you believe in a market recovery."

The Globe's Scott Adams tagged Yamana stock as being good and cheap in the Number Cruncher column on Sept. 25 when it was trading at $10.64. The Globe's BNN Market Call column was bullish on Yamana on Aug. 26 when it was trading at $11.40.