Yamana Gold Stock: How High Could it Go in 2023?

Yamana Gold Inc. (TSX:YRI) stock may still have room to run above its 52-week high, as the yellow metal continues its bull run.

| More on:

Yamana Gold (TSX:YRI) is a Toronto-based precious metal producer with a strong focus on gold production. Canada boasts more than a handful of the world’s top gold miners. This company is in that elite category. It is a worthwhile target for investors who are interested in holding gold as a hedge. Moreover, it should draw even more eyeballs when the spot price of gold is on a run, as it is currently.

Today, I want to discuss how high Yamana stock could climb in 2023. Let’s jump in.

How has Yamana performed over the past year?

Shares of Yamana Gold have climbed 52% year over year as of close on January 20. Meanwhile, the stock has jumped 4.7% in the first trading weeks of the new year. Indeed, this top gold stock reached a 52-week high during last week’s trading session. Could it challenge and even surpass the heights it reached in the first months of this decade?

Investors who want a more detailed look at the stock’s recent performance can play with the interactive stock price chart below.

Here’s why gold is gaining momentum in early 2023

There were many questions swirling around the future for gold when this decade began. The rise of cryptocurrencies had some analysts predicting that these alternative assets could legitimately challenge gold as a hedge for the long term. Those notions persisted even after gold reached all-time highs during the beginnings of the COVID-19 pandemic in the spring of 2020. Indeed, digital currencies also enjoyed a massive upswing in 2020 and especially in 2021.

Recent history has not been kind to the crypto space. Bitcoin, Ethereum, and other top crypto coins saw their valuations melt away steadily in the previous year. Crypto appeared to buckle under mainstream pressure, as well as conditions brought about by aggressive interest rate tightening from central banks around the world.

Meanwhile, gold has shined brighter than ever in the second half of 2022 and early 2023. The spot price of gold has climbed above US$1,900 per ounce for the first time since early 2022. Gold has benefited from uncertainty, as investors flock to the age-old safe haven. Some experts are sounding a cautious note on the yellow metal ahead of a crucial United States Federal Reserve meeting on February 1.

Should you be encouraged by Yamana’s potential in this market?

Investors can expect to see the company’s fourth-quarter and full-year 2022 earnings on February 15, 2023. It released its third-quarter FY2022 results on October 27, 2022.

Yamana posted adjusted net earnings of $44.5 million, or $0.05 per share — down from $73.7 million, or $0.08 per share. Moreover, revenue per ounce of gold fell to US$1,728 compared to US$1,789 in the third quarter of fiscal 2021. The higher price of gold will boost Yamana’s earnings nicely for the full year.

Yamana Gold: How high could it climb this year?

Shares of Yamana Gold currently possess a price-to-earnings ratio of 22. That puts this top gold stock in solid value territory compared to its industry peers. Better yet, the company is on track for strong earnings growth in the quarters ahead. Gold is still well positioned to benefit from positive technicals and increased safe-haven demand. That means that Yamana may have room to run in the months ahead.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Metals and Mining Stocks

Concept of multiple streams of income
Stocks for Beginners

Lock Up This 9.2% Dividend Yield From a Top Royalty Stock

Royalty stocks have a strong advantage when it comes to creating passive income for investors. But this one has the…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Is First Quantum Minerals Stock a Good Buy Right Now?

First Quantum is a TSX stock that trades 61% below all-time highs. However, the mining stock still trades at a…

Read more »

nugget gold
Metals and Mining Stocks

The Best Gold Stock to Invest $1,000 in Right Now

Here are two of the best Canadian gold stocks that can yield some eye-popping returns in the long run.

Read more »

nugget gold
Stocks for Beginners

The Ultimate Mining Stock to Buy With $1,000 Right Now

This mining stock just saw a drop, but don't let that keep you from diving in. This miner is due…

Read more »

A plant grows from coins.
Metals and Mining Stocks

Canadian Mining Stocks: Buy, Sell, or Hold?

Explore 2025’s top Canadian mining stocks – gold, uranium, and base metals offer big potential in a dynamic, commodity-driven market.

Read more »

farmer holds box of leafy greens
Metals and Mining Stocks

3 Reasons to Buy Nutrien Stock Like There’s No Tomorrow

Nutrien stock has lost 34% of its value just this year alone and looks incredibly cheap today. Yet, secular trends…

Read more »

Canada national flag waving in wind on clear day
Tech Stocks

Trump Trade: Canadian Stocks to Watch

With Trump returning to the presidency, there are some sectors that could boom in Canada, and others to watch. But…

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Invest $7,000 in This Dividend Stock for $672 in Passive Income

High yield can be an essential requirement when you need to start even a modestly sized passive income with a…

Read more »