Yamana Gold Inc. (NYSE: AUY) is having an incredible day in the market today, and for good reason. The company announced a key partnership aimed at using blockchain to improve the supply chain surrounding gold. Today, we’ll talk about the announcement, what we’re seeing from the stock, and what we’ll be watching for with regard to AUY ahead.
AUY Gains On Partnership
As mentioned above, Yamana Gold is having an overwhelmingly strong day in the market today after announcing that it has entered into a partnership with Emergent Technology Holdings LP. The goal of the partnership is to use blockchain technology to improve the gold supply chain. The technology would essentially trace the provenance of Conflict-Free Gold from mines to refineries and through vaults.
Through the use of the blockchain, smart contracts will be administered among the parties involved in the delivery of gold-bearing material. This participants include miners, refineries, logistics providers and insurance companies. The goal here is to simplify and automate supply chain traceability of the conflict-free gold it delivers to refineries. In a statement, Peter Marrone, CEO and Chairman at AUY, had the following to offer:
Yamana is committed to mining metals ethically and responsibly. One element of this is our commitment that all of our gold can be verified as conflict free… While our conformance with the Conflict-free Gold Standard is independently attested to each year, we see significant efficiencies, value and potential for greater assurance by tracking title and provenance of gold on a blockchain data network throughout the gold value-chain. We began working with Emergent in early 2016 and the platform they have developed proves provenance, assuring buyers and investors that the gold they buy is from responsible sources. A digitized supply chain process will improve efficiency and transparency.
What We’re Seeing From The Stock
As investors, one of the first lessons we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive as AUY moves toward the blockchain to further ensure transparency in sourcing. So, it’s not surprising to see strong gains in the value of the stock today. Currently (11:32), Yamana Gold shares are trading at $3.26 each after a gain of $0.18 per share or 5.68% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AUY. In particular, we’re interested in following the story surrounding the company’s work with Emergent Technology to bring gold supply to the blockchain. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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