Yamana Gold Inc. TSX: YRI - Q4 earnings + Annual report. RECORD REVENUE, RECORD EARNINGS, RECORD CASH FLOW & RECORD PRODUCTION

Production mining companies are in for massive moves.  This has been the expectation of this blog for some time now.  And 2011 is going to be a big year.  We have tracked AXR.TO go from a $4 stock to $8, FVI.TO go from a $2 to a $5, SBB.TO go from a $3 to a $6, GPR go from a $1 to a $3, the list can go on.

So of the bigger players such as Yamana Gold Inc are starting to report earnings.  This was released after the bell on Wednesday.  See full report here.

Highlights quoted from report are as follows:

HIGHLIGHTS FOR THE FOURTH QUARTER 2010

    -   Record revenues of $535 million, more than 34% higher than the same
        quarter in 2009
    -   Net earnings of $160 million or $0.22 per share, more than 340%
        higher than the same quarter in 2009
    -   Record Adjusted Earnings of $173 million or $0.23 per share(1), an
        increase of more than 70% from the same quarter in 2009
    -   Record fourth quarter operating cash flow of $265 million, $0.36 per
        share,(1) an increase of 71%
    -   Production of 286,682 gold equivalent ounces (GEO)(1)(2) in the
        fourth quarter at cash costs of negative $34 per GEO, which included
        record production at El Penon of 113,800 GEO

HIGHLIGHTS FOR THE FULL YEAR 2010

    -   Record full year revenues of $1.7 billion, an increase of 43% over
        2009
    -   Record net earnings of $451 million or $0.61 per share, an increase
        of more than 130% from 2009
    -   Record Adjusted Earnings of $451 million or $0.61 per share, 30%
        higher than 2009
    -   Record full year operating cash flow of $747 million, or $1.01 per
        share, representing an increase of 51%
    -   Record production from continuing operations for the year of
        1,047,191 GEO at cash costs of $50 per GEO
    -   Positive construction decisions made on three projects during 2010;
        Ernesto/Pau-a-Pique, QDD Lower West at Gualcamayo and Pilar. These
        projects are on track for production start-up in 2012/2013
    -   Cash and cash equivalents of $330 million at December 31, 2010, an
        increase of $160 million from 2009
    -   Debt decreased in 2010 by $45 million

The way I decided to play these annual announcements is via options.

Option expiration March 19th contract.
Strike price: $13
Premium paid: $0.15
Current premium: $0.19

Above, the vertical line is the expiration date, and the horizontal lines are the likely targets based on fib projects of wave 1.  The key is how the market will react to the annual report tomorrow. Given the fact that they made record profits on record production etc.... The market has only one way to take this..... very bullish especially with the fact that silver and gold prices are still hanging around their highs.