Suncor Energy* (SU : TSX : $34.39), Net Change: -0.29, % Change: -0.84%, Volume: 8,700,154
Currently reading: "Of Mixed Feelings and Asset Sales" Suncor reported first quarter results, with earnings from continuing
operations of $0.13 per share, falling slightly below both Canaccord Adams’ and the consensus estimate of $0.15. Cash flow
was $0.72 per share, in line with Canaccord Adams’ estimate of $0.72 but below the analyst consensus of $0.76. Production,
however, beat expectations, averaging 564,600 boe/d in the quarter, above Canaccord Adams’ forecast of 539,300 boe/d and the
consensus forecast of 548,000 boe/d. Despite the beat, production was well below the 638,000 boe/d produced in the prior
quarter due to two upgrader fires and divestitures of several natural gas and oil assets. Notably during the quarter, Suncor
proceeded with divesting its non-core assets. In March, it completed both the sale of the majority of its U.S. Rockies upstream
assets for net proceeds of US$481 million (remaining assets were sold shortly after) and the sale of its Jedney/Blueberry natural
gas properties in B.C. for net proceeds of $383 million. Suncor also reached an agreement to sell its Rosevear and Pine Creek
natural gas properties in Alberta for $235 million and also reached an agreement to sell its Trinidad and Tobago assets for
US$380 million, both of which are expected to close in Q2/10. Remaining assets it plans to dispose of include other natural gas
assets in western Canada, and non-core North Sea assets (including the Netherlands), with expected proceeds to total between
$2-4 million. Going forward, Suncor lowered its 2010 production guidance to 608,000 boe/d from 644,000 boe/d stemming
from a downward revision to both oil sands guidance as well as natural gas guidance to include completed dispositions. The
company also indicated that it plans to sell additional North Sea assets and has increased the targeted divestitures in its
international business to 40,000 boe/d from 25,000 boe/d previously. Net of remaining divestitures, Suncor’s revised guidance
is 538,000 boe/d, which compares with Canaccord Adams' net of divestiture forecast of 548,200 boe/d. Canaccord Adams Oil &
Gas Analyst Terry Peters viewed the quarter as mixed and notes that he continues to expect the next two quarters to be impacted
by ongoing asset sales in addition to turnarounds in its oil sands business, at Buzzard and East Coast Canada, in addition to
refinery maintenance activities.

Yamana Gold* (YRI : TSX : $10.80), Net Change: -0.08, % Change: -0.74%, Volume: 6,861,406
Yamana Gold* (AUY : NYSE : US$10.57), Net Change: -0.22, % Change: -2.04%, Volume: 17,243,029
No sweating the small stuff. Despite seasonally high rainfall in Brazil and a Chilean earthquake, Yamana posted neutral Q1
results, as the price of gold continued to rally. The Q1/10 adjusted EPS of US$0.10 compared with Canaccord Adams’ estimate
of US$0.10 and consensus of US$0.115. There were no major surprises in the results as production results had been pre-released
on April 1, 2010. Overall gold production (continuing operations) of 239,838 oz at co-product cash costs of US$423/oz was in
line with Canaccord Adams' estimate of 240,000 oz at cash costs of 425/oz. The updated reserve estimate for Agua Rica shows
a 10% increase in Cu reserves and a 12% increase in Au reserves (9.5 billion pounds Cu, 6.5 Moz Au) versus previously
indicated guidance of a minimum 5% expected increase (January 26, 2010). Canaccord Adams Precious Metals Analyst Steven
Butler continues to value Agua Rica at US$750 million, still a discount to recent market transactions for Cerro Casale and El
Morro. Butler further commented that Q1/10 production was affected by seasonally high rainfall in Brazil, lower sequenced
head grades at a few mines and the interruption at Minera Florida due to the Chilean earthquake. As a result, he expects
production to improve through the year to total 1.087 Moz GEO at cash costs of US$392/GEO. There is no change to his 2010
EPS and CFPS estimates of US$0.78 and US$1.23, respectively. Butler remains bullish on the name based on relative valuation
and expected growth in production by 2012-2013. Upcoming catalysts include: 1) Pilar resource update/basic engineering (mid-
2010) and Caiamar official NI 43-101 resource (Q3/10); and 2) QDD Lower West feasibility study (H2/10).