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Yamana Gold Inc. (NYSE: AUY) adopted a new strategy that could allow the company to reach their production goals. Yamana seeks to double their gold production output and, for reaching that quickly enough, the best way is to buy rivaling companies. Many of smaller gold miners currently suffer from the lack of funding. Yamana is one of the largest US gold producers, so their financial condition allows considering acquisitions as well as developing new mines.

"These unique times give us the opportunity to say, 'Can we get there more quickly'" Yamana's CEO, Peter Marrone commented. "That's the sweet spot for a company like ours."

The company expects to produce 2 million ounces of gold in four years based on their internal development rate. The opportunity to buy already operational assets would speed up this process significantly.

Before the announcement of competitor acquisition plans, the company had presented its capital expenditure guidance for the coming couple of years. The full article on that can be found here. But the fact is, if Yamana will actually acquire new assets, numbers in this guidance would have to be altered considering the size and production capabilities of the purchased assets.

The news announcement didn't bear details on what companies Yamana could possibly acquire and is there any talks going on at the moment. The company's stock didn't react to the news, however the price is likely to go up as the company will get to implementing these acquisition plans.

References:

www.yamana.com