Yamana Gold Inc. (NYSE:AUY) Stock Moves in a Range: A Good Buy Now?

Yamana Gold Inc. (NYSE:AUY) is moving in range after announcing various studies in its wholly-owned Wasamac project located in the Abitibi-Temiscamingue region in Quebec, which corroborates diligent reviews carried by Yamana on the purchase of the project at the beginning of this year.

The results form the company’s new feasibility level studies and baseline financial and technical aspects of the project, underpinning the decision to advance the Wasamac project to production. Most importantly, the studies’ results are consistent with Yamana’s conclusion on the diligence reviews regarding the purchase of the project, and in some instances, they are better than its conclusions.

Results show mineral reserves of around 1.91 million gold ounces at an average of 2.56 g/t gold grade for the initial ten-year mine life. In the first year, there will be a production ramp-up followed by sustained production of around 200,000 gold ounces yearly in the next four years. Thus, the average life of mine gold production annually will be 169,000 ounces in the initial ten-year mine life. So in the coming months, AUY is a stock to watch.

Market Reaction:

On Wednesday, AUY stock gained 1.45% at $4.20 with more than 15.23 million shares, compared to its average volume of 11.44 million shares. The stock has moved within a range of $4.1000 – 4.220 opening the trade at $4.11. Over the past 52-week, the stock has been trading within a range of $4.1000 – 4.2200.

Madison Hall

After graduating from the University of Buffalo, Madison gained a real interest in the markets. She tends to be a swing trader and enjoys Pilates and yoga in her downtime.