Yamana Gold Inc (NYSE:AUY) Pronounces The Sale Of Gualcamayo Mine


Yamana Gold Inc (NYSE:AUY) is a company that focuses on gold production activities. It carries out its business operations in Canada. The business guru today disclosed details regarding the sale of its Gualcamayo Mine.

Yamana’s and its business transactions

Market observers applauded the business for its entry into its latest definitive purchase agreement. It is in this deal that Yamana sells out a huge deal of its interest in the Gualcamayo mine. Mineros S.A is the buyer of this mine situated in San Juan Province.

Yamana seems quite flexible in its dealings with Mineros. It outlines that it is willing to let Mineros purchase interest of up to 51% from the La Pepa project. Mineros has the choice to make the purchase over a period of four years. Later on it could pay the remaining upon the pronouncement of the call option.

The Sale Transaction in question provides immediate value and payments. It also provides future value and payments. The Company seeks to focus a great deal of its attention towards progressive projects and operations. It sees the certainty of the projects as a major factor to consider.

This is certainty in terms of the capital requirements, longer life, costs and production. The Company acknowledges the two NSRs. It seeks to preserve a substantial upside value from the structure.

A close outlook

Yamana’s third quarter results are impressive. The business guru unveiled these operational and financial results today outlining they will consider them in strategizing for the future.

The substantial reduction in the non-cash accounting carrying value is something the company looks into with a lot of seriousness. The final figure stood at about $75.0 million factoring in the after-tax. Market observers supported the sale of this Gualcamayo mine in large numbers.

Reports show that the company produced gold and copper in significant amounts from the mines. In fact, it harvested about 28.6 million pounds of copper. It ended up with 246,788 ounces of gold which is impressive.

Yamana says that its yearly silver production guidance currently stands at about 7.55 million ounces .That is a decline considering that it initially stood at 8.15 million ounces.