NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are down 2.56% to $5.72 in late-afternoon trading on Friday after the company reported an earnings miss for the fiscal 2016 second quarter. 

The company reported earnings of 1 cent per share, below analysts' expectations of 2 cents per share. Revenue rose 2% year-over-year to $466.5 million, slightly above analysts' estimates of $466.4 million. 

The profit miss was due to lower production at its Chapada mine, which suffered from mechanical issues and poor weather conditions. 

Separately, Yamana said that it will sell its Mercedes mine in Mexico to Premier Gold (PIRGF) for $140 million worth of cash and stock, which management will use to pay down debt. The deal is expected to close by September 30. 

Yamana's second-quarter results are overshadowing higher gold prices today. Gold for December delivery is up 1.53% to $1,361.70 per ounce on the COMEX this afternoon. 

Toronto-based Yamana is a gold and copper exploration company that operates seven mines and oversees several ongoing development projects in Brazil, Argentina and Chile.

(Yamana is held in David Peltier's Stocks Under $10 portfolio. See all of his holdings with a free trial.)

Separately, 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 as a Sell with a ratings score of D+. This is driven by some concerns, 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.

Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

You can view the full analysis from the report here: AUY

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