The spot price of gold has enjoyed significant momentum on the back of the COVID-19 pandemic. However, the yellow metal has encountered some resistance at the $1,750 per ounce mark. The next few months will determine how strong this ceiling is. Predictably, gold mining stocks have been on a huge roll.
Yamana Gold (TSX:YRI)(NYSE:AUY) has been one of the best performers in 2020. Shares of Yamana have climbed 45% in 2020 as of mid-afternoon trading on May 19. The stock is up a stunning 173% year over year. It released its first quarter 2020 results on April 30.
Adjusted net earnings rose to $47.2 million or $0.05 per share compared to $24 million or $0.03 per share in the prior year. It achieved strong quarterly cash flows from operating activities of $129 million. Cash flows were in line or exceeded the average of Yamana’s previous four quarters.
Gold production hit 192,238 ounces, which was in line with Yamana’s plan. Silver production of 2.7 million ounces also met expectations.
Yamana increased its annual dividend by 25% to $0.0625 per share. It now pays out a quarterly distribution of $0.0125 per share.
This represents a 1.1% yield. Yamana stock last had a favourable price-to-earnings ratio of 18 and a price-to-book value of 1.2. Moreover, Yamana also boasts an excellent balance sheet. This is a top Canadian gold stock that offers a little bit of income. If gold can continue to gain momentum Yamana can challenge its 52-week highs.
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