UPDATE: HSBC Upgrades Yamana Gold Following Q3 EPS Forecast

In a report published Monday, HSBC Global Research analyst Patrick Chidley upgraded the rating on

from Underweight to Neutral, and raised the price target from $9.30 to $10.00. In the report, HSBC Global Research noted, “We forecast Q3 EPS of USD0.06 based on the estimated commercial production of 299k GEO (including Alumbrera) at by-product cash costs of USD386/GEO. We expect total production (including the commissioning Brazilian mines) of 320kGEO. Although Yamana anticipates commercial production at these mines by the year-end, we believe the commissioning process may extend into 2014, especially at the EPAP project, where the pace of the ramp-up is disappointing, mainly due to the delay in receiving the required underground mining permit for the Pau-a-Pique mine.” Yamana Gold closed on Friday at $9.37.