Dallas, Texas 11/13/2013 (Financialstrend) – The stock of mid cap gold mining firms like Canada based Yamana Gold, Inc. AUY (NYSE:AUY) and its Barrick’s have been under the pump over the last few weeks as investors and market watchers start to factor in the expected slackening for demand towards the end of the year and the continued uncertainty over the price of the yellow metal at the global stage.
The broad trends which have pushed down the gold mining company stock have been pretty easy to follow. Earlier this month, ratings agency TD downgraded the stock of Yamana Gold, Inc. AUY (NYSE:AUY). This pushed the stock into the red and it lost close to 3% during one day of trading on November 1. The downgrade pushed the firm rating from a previous Buy to the current Hold. It also reduced the price target for the stock from earlier $13 to current $12. The downgrade was explained by the rating agency as a on par assessment which has taken into consideration the current valuation of the stock and reflects the lowered expectations for the firm over the next couple of quarters. Readers should note that Yamana Gold, Inc. AUY (NYSE:AUY) had reported modest third quarter results recently. It had reported higher than expected earnings and had managed to ring in its operating costs effectively to keep cash burn in check in these testing times for the mining firms.
The market trackers have been stressing on the fact that the firm reduced its outlook for the next quarter and has brought down its forecast for the full year. Some analysts are even predicting that the gold producer might end up missing these reduced targets when it reports numbers for the full year in January next year. They cite the uncertain pace at which the company’s Argentina projects are coming up for their subdued view of the stock.