NEW YORK (TheStreet) -- Yamana Gold (AUY) - Get Report  shares are slumping by 1.6% to $1.84 on Thursday morning, despite today's higher gold prices. 

Gold for February delivery is rising by 0.11% to $1,061 per ounce on the COMEX.

Even though gold futures were higher, gold is poised for a third consecutive annual loss, the Wall Street Journal reports.

Gold is projected to end this year down around 10.4%, the Journal noted.

Adding to this bearish sentiment, investors are expecting that gold futures won't see much gains heading into the new year since the Fed decided earlier this month to increase interest rates next year, for the first time in nine years. 

"Overall the headwinds for gold remain for next year, given interest rates and the dollar," said Xiao Fu, head of commodity markets strategy at BOCI Global Commodities Ltd, according to the Journal.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate YAMANA GOLD INC as a Sell with a ratings score of D. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly decreased to $77.90 million or 50.96% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • AUY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 49.47%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, YAMANA GOLD INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • YAMANA GOLD INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, YAMANA GOLD INC reported poor results of -$1.36 versus -$0.59 in the prior year.
  • Despite the weak revenue results, AUY has significantly outperformed against the industry average of 45.7%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: AUY