Editor's note: This Stocks Under $10 alert was originally sent to subscribers Nov. 13 at 3:30 p.m. EST. It's being republished as a bonus for TheStreet.com and RealMoney.com readers. The author, Larsen Kusick, is part of TheStreet.com Stocks Under $10 Investment Team.


When we spot a great opportunity, we will occasionally review or even add a name that trades slightly above $10 to the Stocks Under $10 model portfolio. Yamana Gold ( AUY), currently trading at $11.28, looks like a strong prospect for the model portfolio on a pullback. So let's take a detailed look at this Toronto-based South American mine operator.

With its aggressive plan for production growth, Yamana is particularly interesting because of its combination of untapped in-ground assets and un-hedged position in gold. The company has six operating mines in Brazil and another in Honduras, along with a number of development-stage properties and land positions, mainly in Brazil.

The company's principal product is gold, but it also mines copper. Yamana's largest opportunity comes from its recently completed Chapada copper-gold mine, which is scheduled to begin production this month.

In terms of gold production, Yamana's numbers are astounding. During the first nine months of 2006, Yamana produced 246,829 ounces of gold, including 88,781 during its most recent quarter (ended Sept. 30). Management expects to achieve an annual production rate of 600,000 ounces of gold by the end of 2007, and reach an annual rate of 1 million ounces by late 2008.

These aggressive targets indicate the large amount of gold that Yamana has in its mines and land assets, as well as the lofty expectations of the company.

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