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Yamana Gold is an interesting part of the precious metals industry. Rather than selling precious metals to the public, they own and operate mines in South America and Canada. The company is publicly owned and traded, with listings on the Toronto, New York, and London stock exchanges.
So what do you need to know before you get started? Is this a company worth investing with? What are the risks of purchasing stocks from a mining company?
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Yamana is a mining company that is based in Canada. They are the owner of multiple mines not just in Canada, but also in several countries in South America. In addition to their ongoing mining operations, they are developing new mining projects for the future.
The company has existed since 1994. It was first listed publicly in Toronto's stock exchange in 1995. As the company continued making profits and expanding, it went on to be listed on the New York and London stock exchanges. It is one of the largest global mining companies with a public ownership.
In 2003, the company went through a major restructuring process. During this overhaul, a new CEO was appointed. There was also a merger with a Brazilian mining company, which gave Yamana access to all of that company's projects and revenue.
Following the 2003 merger, the company used its new resources to develop the Chapada mine. This became a lucrative source of income once production started. After that, there were mergers with more than half a dozen other mining companies, all of which expanded Yamana's global reach.
From 2009 to 2016, the company's mines produced at least one million ounces of gold every single year. In 2016, Brio Gold became a subsidiary of Yamana, rather than being an unnamed part of the larger company. This company took on the responsibility of managing most of Yamana's Brazilian mines.
A few years ago, the company was criticized for the amount of debt it was in, as well as the compensation packages for executives. Shareholders believed that the operation was not keeping their needs in mind. In order to solve the issues and shore up the stock price, the company replaced the CEO and sold two of its mines in 2018.
There has been recognition of the company's corporate citizenship. In fact, they have been named as one of the best corporate citizens in Canada. That's especially interesting because mining operations are often subject to greater environmental scrutiny and concern.
Mines and Other Projects
The company's main purpose is to operate mines in different countries. All of the company's current mines are gold mines, while several of them also yield silver or other materials. There are also a variety of past projects that concluded once the mine ran out of assets.
There are five mines that are currently in operation.
One is the Malartic mine, which is situated in Quebec, Canada. It produces gold and silver. Yamana purchased this in 2014 with another company and owns a 50 percent share of the mined minerals. This mine is an open pit that smelts bars of silver and gold.
There is another gold and silver mine that is situated in the Atacama Desert in Chile. It came with a merger that Yamana made in 2007, when they purchased the company Meridian Gold. Most of the mining is done underground and is meant to target particular veins.
One mine is called the Minera Florida, which produces gold, silver, and zinc. It is situated in the Santiago area of Chile. Like the previous mine, this came into Yamana's possession when they purchased Meridian Gold. Most of the mining is done underground.
There is a Brazilian gold mine called the Jacobina mine. The company acquired this in 2006 as part of a merger with the company Desert Sun Mining. The mining is generally done underground, with ore being processed on site and bars being created.
The final mine is an Argentinian mine that produces gold and silver. It is the most recent acquisition of Yamana. The company has owned the mine since 2012, when they merged with the last owner, but it only began producing gold in 2018. This is a combination of an underground and open pit system that creates bars on site.
The company has had quite a few prior operations over the years. Some of the mines were closed because their resources were exhausted, while others were sold.
The Chapada mine was sold to help cover the company's debt in 2019. Prior to that, it had spent twelve years producing copper, silver, and gold.
Also sold in 2019 was the Gualcamayo mine. This helped to cover the rest of the company's debt and secure the price for anxious shareholders. It was a gold mine that had been operated for a decade prior to being sold.
Yamana used to be the operator of a Brazilian mine called the Fazenda Brasileiro. In fact, this was the first mine that the company operated. However, in 2017, the company gave up control to the subsidiary Brio Gold.
A gold and silver mine in Mexico was a development project of Meridian Gold. When Yamana acquired that company, they began production in that mine in 2012. In 2016, the company sold the mine to another mining corporation.
The Fazenda Nova Mine was developed exclusively by Yamana. However, the mine was small enough that it had a very short lifespan. After removing ample resources, the company ceased production and has put it into ongoing maintenance.
A mine located in Mato Grosso, Brazil was part of the 2003 restructuring. The company spent three years developing this mine after acquiring it. It was operated starting in 2006. In 2009, the company sold it to another corporation.
Is Yamana a Scam?
Yamana Gold is not a scam. The company has been in business since 1994 and has been publicly traded since 1995. It is one of the largest mining companies in the world, and it has ongoing projects in multiple countries. The company employs multiple people who help to evaluate the market and develop new projects.
Even though the company is not a scam, though, there are some things to take into consideration.
One is that you can't actually purchase precious metals here. Instead, you have the option of purchasing stock in the company itself. This will let you receive a share of the profits, but it also means you'll be subject to market volatility.
You also need to consider the competition. There are alternative mining companies that you might purchase stock in instead. You'll need to be confident that Yamana's ongoing projects are worth the investment.
Overall, this is a solid investment if you want to get involved in the precious metals industry on the ground floor. But it's not the best place to go if you want to purchase actual precious metals or investigate alternative assets.
Pros & Cons of Yamana
Yamana is one of the largest mining companies in the world, with active operations in four countries. While they don't sell precious metals to the public, they do have shares available for public purchase. If you want to invest in stocks, you might consider this.
For those who want to invest in the alternative assets themselves, though, you won't find what you're looking for here. This is strictly an opportunity for those who want to buy stocks and earn dividends with each quarter.
When it comes to making an investment in precious metals, our top recommendation is below.
They became our #1 after doing extensive research. Feel free to keep doing your own research, or you can visit Yamana below!