Yamana Gold Research Report - Competitor Review

This report reflects the research and analysis I've performed on this company. It is provided for informational purposes only and does not constitute personalized financial advice nor an endorsement or solicitation to purchase stock in this or any other company. Please do your own due diligence or hire a financial advisor before making any investment decisions.

AUY:US research report posted: 2007, July 15

Competitors I reviewed the following industry competitors:

Barricks - largest gold miner by reserves
     * Pros
          ** One of the lowest cost producers
          ** Eliminated hedge book (and payed a pretty penny doing so)
          ** Geographically diversified portfolio - owns 20+ mines in North/South America, Africa, Australia
          ** Positioned to grow production by 40% in the near future
     * Cons
          ** Return on Invested Capital (ROIC) 5-yr avg dismal 2.5%
          ** Will be very difficult to replace much less grow their 139 million oz gold reserves.
          ** Lower ROIC than peers
          ** Probably overpayed for the Placer Gold acquisition

Goldcorp - aggressive acquirer, low-cost producer
     * Pros
          ** Nice assets in Red Lake, Penasquito
     * Cons
          ** Have adapted a growth by acquisition strategy last 2 years
               *** possibly overpaying for acquisitions
               *** alienated former CEO Rob McEwen
          ** Breakneck acquisition pace makes it hard to streamline operations and achieve synergies

Agnico-Eagle - promising mid-tier producer
     * Pros
          ** Solid growth profile
          ** No hedging
          ** Minimal debt
          ** Assets located in politically stable areas.
          ** Strong management team.
          ** Shareholder-oriented.
     * Cons
          ** Currently a one-mine operation.

Kinross - low-cost, mid-tier
     * Pros
          ** Attractively valued
          ** Growth by acq.
     * Cons
          ** Probably overpaid for Bema Gold acq.
          ** Extremely dilutive (shares outstanding tripled from 2001-2004)
          ** Several of their mines are in declining production.

DISCLOSURE: Please see our portfolio page for all disclosures.

The Enlightened American

Yamana Gold Research Report - Competitor Review