UPDATE: Credit Suisse Raises PT to $22 on Yamana Gold, Maintains Outperform on Exploration Update
Credit Suisse reiterates its Outperform rating on Yamana Gold (NYSE: AUY) and raises its price target from $21 to $22 a share.
Credit Suisse comments, "Exploration success at flagship assets drove the DCF increase: We are now modelling an additional ~500koz of GEO production over the life of mine at El Penon and ~2Moz additional gold production at Chapada. The exploration success will allow current levels of production to be sustained at both assets, we previously had them depleting somewhat in 2016-2020. Dividend likely to increase this year (Credit Suisse est.) as Ernesto Pau-a-Pique and C1 Santa Luz come into production at year end, given AUY's history of growing dividends once new levels of sustainable cashflow are realized."
AUY closed at $16.08 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.