** At least 3 brokerages cut PT on Yamana Gold’s U.S. and Canadian listed shares after the gold miner announced divestiture of its Chapada mine in Brazil
** Co sold its Brazilian copper-gold mine asset to Lundin Mining Corp for more than $1 bln to repay debt and improve financial flexibility
** Canaccord Genuity says “the Chapada sale addresses near-term concerns about the company’s balance sheet and reinforces a precious-metals focus, however it comes at a heavy cost of divesting a significant long-lived asset,” maintaining a buy rating and trimming PT to C$4.25
** Analysts at 8 Capital cut PT to C$4.50 and maintained “buy” adding that while the Chapada sale would drive de-leveraging, it becomes dilutive to Yamana’s Net Asset Value
** BMO here on Yamana's sale to Lundin, "It is never advisable for a precious metal miner to sell an asset valued at a 5% discount rate to a base metal miner using a 10% discount rate for the purchase price," cutting PT on its U.S. stock to $2.30
** Yamana up 2.8% on TSX and 5.5% on NYSE this year (Reporting by Ahmed Farhatha)
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