YAMANA GOLD INC. (TSX:YRI) (NYSE:AUY) (“Yamana” or “the Company”)
is pleased to announce the declaration of commercial production at
Cerro Moro, a high-grade gold and silver mine in Santa Cruz,
Argentina.
Daniel Racine, Yamana’s Executive Vice President
and Chief Operating Officer, commented as follows: “We are pleased
that Cerro Moro, an operation that we expect to contribute
significantly to our production, has reached this important
commercial milestone. The project has been brought to this
stage on schedule and on budget, which reflects the significant
efforts by operations and technical services management since
construction began a few years ago.”
Jason LeBlanc, Yamana’s Senior Vice President,
Finance and Chief Financial Officer, commented as follows: “Cerro
Moro is expected to generate a disproportionate amount of cash flow
and free cash flow relative to the comparatively small-scale nature
of the operation. With the planned reduction in expansionary
capital spending and the anticipated strong margin to metal prices
at Cerro Moro, per prior guidance the step change in cash flow we
have planned is expected to begin in the second half of 2018 and be
more pronounced beginning in 2019.”
The first gold and silver doré production at
Cerro Moro was announced on May 16, 2018, and the ramp up to
commercial production was achieved as planned in the second quarter
of 2018.
There are several quantitative and qualitative
factors relating to a commercial production decision. Mostly, the
determination relates to the sustainability of and ultimate
profitability of an operation. In the case of Cerro Moro, the
factors included the sustainability of mining and throughput rates
above certain levels, recoveries consistent with design, and grades
at least consistent with mine plan. Mining rates are according to
plan, throughput has increased steadily since start-up and has been
consistent at rates well above seventy per cent of capacity,
recoveries for gold and silver have been consistently above ninety
per cent of design, grades are consistent with mine plan, mine
development, both for open pit and underground, is in line with
plan, and, in addition, the operation has successfully created a
high-grade stockpile of over six weeks in the process.
Cerro Moro is expected to deliver on 2018
production guidance with modest production in the second quarter of
2018 and nearly all of the expected 2018 production to be delivered
in the second half of the year. With the declaration of
commercial production, the focus is now on optimizing the operation
and ensuring operating costs reach guidance levels.
Qualified Persons
Scientific and technical information contained
in this press release relating Cerro Moro has been reviewed
and approved by Carlos Bottinelli (Manager, Technical
Services). Mr. Bottinelli 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 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 and optimization initiatives, 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 and
Corporate Communications416-815-02201-888-809-0925Email:
investor@yamana.com
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 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 continued advancements at Cerro
Moro. 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 financial expectations being met at Cerro Moro, the
impact of proposed optimizations at the Company's projects,
production, exploration, development, and expansion plans being
met, changes in national and local government legislation,
taxation, controls or regulations and/or changes in the
administration or 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, copper, silver and zinc),
currency exchange rates (such as 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 disposition, 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, 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 and 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 expected
financial and operational performance and results as at and for the
periods ended on the dates presented in the Company’s plans and
objectives and may not be appropriate for other purposes.
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