BMO Research is forecasting "production of about 200koz gold for [the newly restructured subsidiary] Brio Gold assets in 2015, and estimates total project NPV for the assets at about $180 million (spot and 10%), or about 5% of AUY total."
"Yamana trades at 2.2x NPV (spot and 10%), compared to the senior average of 2.3x. The price target stands at $6, representing a P/NPV target of 3.0x. The progress on attempting to realize value from non-core assets is encouraging. However, this process may be difficult in the current metal price environment," analysts added.
Notably, gold and silver fell for a second day today as the dollar strengthened for the first time this week and investors speculated that cheap oil prices will keep inflation in check, Bloomberg reports.
Gold for February delivery on the Comex fell 0.98% to $1,217.40 an ounce by 10:01 a.m. in New York.
Separately, TheStreet Ratings team rates YAMANA GOLD INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAMANA GOLD INC (AUY) a SELL. This is driven by multiple weaknesses, 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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."