Yamana Gold Exceeds 2018 Production Guidance at Costs in Line With Expectations
Press Release
TORONTO, Jan. 14, 2019 — YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or “the Company”) herein announces that fourth quarter and full year production results for 2018 exceeded production guidance for all metals.
FOURTH QUARTER AND 2018 OPERATIONAL HIGHLIGHTS
- Strong production momentum continued into the fourth quarter and for the full year 2018. Fourth quarter and full year 2018 production results from Yamana’s six mines are presented in the following tables.
| Yamana Mines (1) (excluding Gualcamayo) |
Fourth Quarter 2018 Preliminary Production |
Full Year 2018 Preliminary Production |
2018 Full Year Guidance |
| GEO(2) Production (oz.) | 310,400 | 1,041,300 | 1,013,000 |
| Gold Production (oz.) | 270,200 | 940,600 | 920,000 |
| Silver Production (m oz.) | 3.265 | 8.023 | 7.55 |
| Copper Production (m lbs.) | 39.0 | 129.0 | 125.0 |
- Gold equivalent ounce (“GEO”) (2) production from Yamana Mines (1) for the fourth quarter was 310,400, including 270,200 ounces of gold and 3.26 million ounces of silver. Total Yamana gold production (3) (including Gualcamayo) was 292,500 ounces. The Company also produced 39.0 million pounds of copper with the Chapada mine delivering on a strong fourth quarter.
- Full year gold and copper production from Yamana Mines exceeded the higher guidance levels set in October of last year while full year silver production exceeded the lower guidance provided at that time. Original guidance set in February 2018 was for 900,000 ounces of gold, 120 million pounds of copper, and 8.15 million ounces of silver.
(All amounts are expressed in United States dollars unless otherwise indicated.)
- Yamana Mines include Chapada, El Peñón, Canadian Malartic, Jacobina, Cerro Moro and Jacobina.
- Gold equivalent ounces (“GEO”) include gold plus silver at a ratio of 81.3, 79.6, and 72:1 for the fourth quarter of 2018, full year 2018, and full year 2018 guidance per guidance provided in press release on February 15, 2018, respectively.
- Total Yamana production includes attributable production from Gualcamayo.
| Mine-by-Mine | Fourth Quarter 2018 Preliminary Production |
Full Year 2018 Preliminary Production |
||
| Gold (oz.) | ||||
| Chapada | 40,800 | 121,000 | ||
| El Peñón | 38,000 | 151,900 | ||
| Canadian Malartic (50%) | 84,700 | 348,600 | ||
| Jacobina | 37,100 | 144,700 | ||
| Cerro Moro | 45,100 | 92,800 | ||
| Minera Florida | 24,500 | 81,600 | ||
| Yamana Mines (1) | 270,200 | 940,600 | ||
| Gualcamayo (attributable) | 22,300 | 92,300 | ||
| Total Yamana (3) | 292,500 | 1,032,900 | ||
| Silver (oz.) | ||||
| El Peñón | 1,187,000 | 3,904,000 | ||
| Cerro Moro | 2,078,000 | 4,119,000 | ||
| Yamana Mines (1) | 3,265,000 | 8,023,000 | ||
| Copper (m lbs.) | ||||
| Chapada | 39.0 | 129.0 | ||
| (1) Includes production on a pro rata basis for the fourth quarter and full-year of 2018 as the sale of Gualcamayo closed on December 14, 2018. | ||||
- Production for all metals was delivered at costs in line with or better than guidance for the full year.
- More detailed information relating to production and costs along with financial results, Mineral Reserve and Mineral Resource estimates, and guidance for 2019 to 2021 will be provided on February 14, 2019.
- Also in the fourth quarter of 2018, the Company completed the previously announced sale of the Gualcamayo mine in Argentina to Mineros S.A. The Company received consideration with a total value of approximately $85 million, which includes cash proceeds of $30 million, $30 million in additional payments related to the advancement of the Deep Carbonates project, and royalties related to metal production at Gualcamayo and the Deep Carbonates project. The consideration received offers significant upside in the case of new oxide discoveries, higher gold prices and/or development of the Deep Carbonates project, thereby preserving considerable optionality. The transaction also includes an option for Mineros to acquire up to a 51% interest in the La Pepa project in Chile.
WORLD GOLD COUNCIL COST REPORTING
The Company also announces that it has adopted the standard for reporting all-in sustaining costs (“AISC”) presented by the World Gold Council (“WGC”). Yamana, along with other companies, worked with the WGC to create a standard for AISC reporting that is expected to result in a consistent reporting of costs for all WGC member companies that adopt the standard. The Company is implementing this change effective for reporting periods after January 1, 2019.
GOLD EQUIVALENT DISCLOSURE
Throughout 2018, the Company provided gold equivalent ounce (“GEO”) production and cost metrics that were in addition to detailed information relating to both gold and silver production and costs. Beginning with 2019 guidance and continuing with subsequent financial and operating results reports, Yamana will use GEO metrics for the Company’s primary operational statistics.
In order to maintain transparency, the Company will continue to provide detailed operational key performance indicators for gold and silver production as part of its quarterly disclosures within the Management Discussion and Analysis reports filed on SEDAR and EDGAR.
FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS RELEASE
The Company will release its complete fourth quarter and full year 2018 operational and financial results after market close on Thursday, February 14, 2019 followed by a conference call and webcast on Friday, February 15, 2019 at 9:00 a.m. ET.
| Fourth Quarter and Full Year 2018 Conference Call Details | ||
| Toll Free (North America): | 1-800-273-9672 | |
| Toronto Local and International: | 416-340-2216 | |
| Webcast: | www.yamana.com | |
| Conference Call Replay | ||
| Toll Free (North America): | 1-800-408-3053 | |
| Toronto Local and International: | 905-694-9451 | |
| Passcode: | 6784586 | |
The conference call replay will be available from 12:00 p.m. ET on February 15, 2019 until 11:59 p.m. ET on March 1, 2019.
About Yamana
Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions throughout the Americas including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through existing operating mine expansions, throughput increases, development of new mines, the advancement of its exploration properties and, at times, by targeting other gold consolidation opportunities with a primary focus in the Americas.
FOR FURTHER INFORMATION PLEASE CONTACT:
Investor Relations
416-815-0220
1-888-809-0925
Email: investor@yamana.com
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