YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the
Company”) is pleased to announce the outcome of its foundational
work on its Climate Action Strategy, announced on February 11,
2021, which describes the Company’s commitment to a low-carbon
future. The foundational work began in early 2021 and Yamana
previously indicated that it would complete its work and establish
science based greenhouse gas (“GHG”) abatement targets by end of
year. A summary of the work to date and abatement targets follows.
- Yamana has raised its climate
action ambition by adopting a 1.5ºC target compared to
pre-industrial levels.
- Foundational climate action work
has been completed successfully, including the determination of
base year emissions, emissions forecasts, GHG abatement pathways
for Scope 1 and 2 emissions, and physical and transition risks
aligned with the Task Force on Climate-related Financial
Disclosures (“TCFD”).
- Annual emissions reduction of
approximately 4.2% will be required until 2030 to meet a 1.5ºC
temperature scenario which the Company expects to meet by that
date.
- Yamana is on track to produce
approximately 85% of its gold equivalent ounces (“GEO”)(1) with
renewable energy by the end of 2022.
- Yamana will be able to meet the
targets with a modest, almost incremental amount of
investment.
- Yamana will continue to assess
further opportunities to improve on its goals of GHG abatement
including adoption of advancing technologies for its new
mines.
Foundational work completed in 2021 established
2019 as the base year for emissions(2), established emissions
forecasts until 2030 based on life-of-mine plans for its four
wholly-owned operations, and established the GHG abatement pathways
for Scope 1 and 2 emissions at the Company’s operations in
Argentina, Brazil and Chile. The foundational work, led by an
interdisciplinary Working Group in collaboration with operations
and with the involvement of respected third-party experts, also
identified and assessed physical and transitional risks at the
operations, including risk mitigation and financial impacts, as
part of the Company’s alignment with the recommendations of the
TCFD.
In addition to the 2ºC temperature scenario
compared to pre-industrial levels, emissions forecasts for the
well-below 2ºC and 1.5ºC temperature scenarios were also assessed.
The 1.5ºC scenario has become the gold standard target to
demonstrate commitment to a low-carbon future. After conducting
top-down and bottom-up GHG reduction opportunity assessments at
each operation, Yamana has raised its ambition from a 2ºC - aligned
target in early 2021 to a 1.5ºC target. Work has been performed in
conformance with evolving international best practice, including
the GHG Protocol, Science-based Targets Initiative (“SBTi”)
guidelines, and the Mining Association of Canada’s Towards
Sustainable Mining Climate Change Protocol.
Based on the Company’s analysis of a 1.5ºC
temperature scenario, an annual emissions reduction of
approximately 4.2% will be required until 2030. Details of the
Company’s reduction pathways including the modest investments that
will help achieve the 1.5ºC scenario target, will be available in
its TCFD report expected to be released February 2022. The Company
has concluded that it will be able to meet these reduction targets
by its 2030 target. The Company’s ability to meet the 1.5ºC
temperature scenario is in part the result of a focus on efficient,
high-grade underground mines and operating in jurisdictions that
have a large proportion of available renewable, green electricity.
A newly-signed power purchase agreement at Minera Florida,
scheduled to become effective in 2022, will provide 100% renewable
electricity over the next five years. When coupled with similar
agreements at Jacobina and El Peñon, approximately 85% of the
Company’s GEO will be produced with renewable energy by the end of
next year.
As part of its previously-announced growth plans
at Wasamac, Odyssey and Jacobina, Yamana is evaluating
opportunities to further reduce its GHG emissions by investing in
battery-electric vehicles, automation and other emerging
technologies. The Company’s near-term growth in both Quebec and
Brazil will leverage electrical grids that have a high proportion
of green, renewable energy. Hydroelectric and other forms of
non-fossil fuel energy constituted more than 99.9% of the Quebec
grid energy in 2020.
In 2022, the Company will continue to refine its
analysis and transition to a more operations-focused approach as it
continues work to identify and assess additional opportunities to
reduce GHG emissions. The Company will also begin to define its
Scope 3 GHG emissions, including those from its 50% owned Canadian
Malartic Mine. Yamana is proud of the work undertaken to date and
the positive trajectory that has been established to meet its
climate action commitments.
Qualified PersonsScientific and
technical information contained in this news release has been
reviewed and approved by Sébastien Bernier (P. Geo and Senior
Director, Geology and Mineral Resources). Sébastien Bernier is an
employee of Yamana Gold Inc. and a "Qualified Person" as defined by
Canadian Securities Administrators' National Instrument 43-101 -
Standards of Disclosure for Mineral Projects.
About YamanaYamana Gold Inc. is
a Canadian-based precious metals producer with significant gold and
silver production, 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 expansion and optimization initiatives
at existing operating mines, development of new mines, the
advancement of its exploration properties and, at times, by
targeting other consolidation opportunities with a primary focus in
the Americas.
FOR FURTHER INFORMATION, PLEASE
CONTACT:Investor Relations
416-815-02201-888-809-0925Email: investor@yamana.com
FTI Consulting (UK Public Relations)Sara Powell
/ Ben Brewerton+44 7931 765 223 / +44 203 727 1000
Peel Hunt LLP (Joint UK Corporate
Broker)Ross Allister / David McKeown / Alexander
AllenTelephone: +44 (0) 20 7418 8900
Berenberg (Joint UK Corporate
Broker)Matthew Armitt / Jennifer Wyllie / Detlir Elezi
Telephone: +44 (0) 20 3207 7800
Credit Suisse (Joint UK Corporate
Broker)Ben Lawrence / David Nangle Telephone: +44 (0) 20
7888 8888
END NOTES
(1) GEO assumes gold ounces
plus the gold equivalent of silver ounces using a ratio of 72.00
for future guidance periods. GEO calculations for actuals are based
on an average market gold to silver price ratio for the relevant
period. (2) 2019 was chosen as a more
representative base year, due to COVID-19 related production
interruptions in 2020, which altered production profiles.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This news release contains or incorporates by reference
“forward-looking statements” and “forward-looking information”
under applicable Canadian securities legislation and within the
meaning of the United States Private Securities Litigation Reform
Act of 1995. Forward-looking information includes, but is not
limited to information with respect to the Company’s strategy,
plans or future financial or operating performance, including
exploration drilling plans and results from the Company’s
generative program and potential to significantly extend mine lives
at the Company’s projects; expected permitting and commencement of
operations; expected fourth quarter production and guidance.
Forward-looking statements are characterized by words such as
“plan", “expect”, “budget”, “target”, “project”, “intend”,
“believe”, “anticipate”, “estimate” and other similar words, or
statements that certain events or conditions “may” or “will” occur.
Forward-looking statements are based on the opinions, assumptions
and estimates of management considered reasonable at the date the
statements are made, and are inherently subject to a variety of
risks and uncertainties and other known and unknown factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. These factors
include the Company’s expectations in connection with the
production and exploration, development and expansion plans at the
Company's projects discussed herein being met, the impact of
proposed optimizations at the Company's projects, changes in
national and local government legislation, taxation, controls or
regulations and/or change in the administration of laws, policies
and practices, and the impact of general business and economic
conditions, global liquidity and credit availability on the timing
of cash flows and the values of assets and liabilities based on
projected future conditions, fluctuating metal prices (such as
gold, silver, copper and zinc), currency exchange rates (such as
the Canadian Dollar, the Brazilian Real, the Chilean Peso and the
Argentine Peso versus the United States Dollar), the impact of
inflation, possible variations in ore grade or recovery rates,
changes in the Company’s hedging program, changes in accounting
policies, changes in mineral resources and mineral reserves, risks
related to asset dispositions, risks related to metal purchase
agreements, risks related to acquisitions, changes in project
parameters as plans continue to be refined, changes in project
development, construction, production and commissioning time
frames, risks associated with infectious diseases, including
COVID-19, unanticipated costs and expenses, higher prices for fuel,
steel, power, labour and other consumables contributing to higher
costs and general risks of the mining industry, failure of plant,
equipment or processes to operate as anticipated, unexpected
changes in mine life, final pricing for concentrate sales,
unanticipated results of future studies, seasonality and
unanticipated weather changes, costs and timing of the development
of new deposits, success of exploration activities, permitting
timelines, government regulation and the risk of government
expropriation or nationalization of mining operations, risks
related to relying on local advisors and consultants in foreign
jurisdictions, environmental risks, unanticipated reclamation
expenses, risks relating to joint venture operations, title
disputes or claims, limitations on insurance coverage, timing and
possible outcome of pending and outstanding litigation and labour
disputes, risks related to enforcing legal rights in foreign
jurisdictions, as well as those risk factors discussed or referred
to herein and in the Company's Annual Information Form filed with
the securities regulatory authorities in all provinces of Canada
and available at www.sedar.com, and the Company’s Annual Report on
Form 40-F filed with the United States Securities and Exchange
Commission. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
The Company undertakes no obligation to update forward-looking
statements if circumstances or management’s estimates, assumptions
or opinions should change, except as required by applicable law.
The reader is cautioned not to place undue reliance on
forward-looking statements. The forward-looking information
contained herein is presented for the purpose of assisting
investors in understanding the Company’s plans and objectives in
connection with its exploration programs and results of exploration
and its expected fourth quarter production and may not be
appropriate for other purposes.
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