"I also expect production costs to decline over the next few quarters as the full impact of all mining integration is completed. For a gold-bug, that's exactly what we want to see; a solid company that's emerging into a world-class developer, lowering its production costs as gold prices hit new highs. That means a higher stock price over time.

"The acquisitions of Meridian and Northern Orion provides Yamana seven producing mines, including two major expansions, five development stage projects and a target of 2.2 million ounces by 2012 on an organic basis or assuming no new acquisitions.

"Yamana Gold reported record revenue and mine-operating results in the third quarter, with total production of 131,366 ounces of gold, an increase of 48% over the last 12 months. Total production thus far in 2007 is 367,816 ounces. Third quarter earnings were $71.5 million dollars compared to $4.7 million dollars 12 months earlier -- pretty solid numbers.

"Over the next several months, if not sooner, we expect to see great companies such as Yamana do well as gold prices smash through their January 1980 highs over the next few months. Buy."