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.
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|
|
|
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 |
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- 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. |
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|
- 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 |
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Toll Free (North
America): |
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1-800-273-9672 |
Toronto Local and
International: |
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416-340-2216 |
Webcast: |
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www.yamana.com |
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Conference Call Replay |
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Toll Free (North
America): |
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1-800-408-3053 |
Toronto Local and
International: |
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905-694-9451 |
Passcode: |
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6784586 |
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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
Relations416-815-02201-888-809-0925Email:
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 optimization and expansion plans,
strategy, other plans or future financial or operating performance.
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, the impact of declaring commercial
production, 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 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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