YAMANA GOLD INC. (TSX:YRI) (NYSE:AUY) (“Yamana” or “the Company”)
is herein reporting its financial and operational results for the
fourth quarter and full year 2017, and its Mineral Reserve and
Mineral Resource estimates as at December 31, 2017.
FOURTH QUARTER HIGHLIGHTS
Total production for the fourth quarter was
259,606 ounces of gold from Yamana's six producing mines (282,041
ounces of gold including attributable production (1) from Brio Gold
Inc. ("Brio Gold")). The Company also produced 1.17
million ounces of silver and 34.7 million pounds of
copper. Full year production from Yamana’s
mines exceeded guidance for all metals at 977,316 ounces of gold,
5.0 million ounces of silver, and 127.3 million pounds of
copper.
Fourth quarter total cost of sales applicable to
gold of $966 per ounce ($980 per ounce, including Brio Gold); cash
costs on a co-product basis (2) of $660 per ounce ($672 per ounce,
including Brio Gold); cash costs on a by-product basis (2) of $548
per ounce; all-in sustaining costs (“AISC”) (2) on a co-product
basis of $899 per ounce ($925 per ounce, including Brio Gold); and
AISC on a by-product basis (2) of $829 per ounce. For the year,
co-product and AISC were either in line with or below guidance
levels.
Net loss from continuing operations for the
three months ended December 31, 2017, was $199.7 million, with
$191.0 million or $(0.20) per share basic and diluted attributable
to Yamana equityholders. A summary of certain non-cash and
other items is included in the table on page two of this press
release, the most notable of which is a non-cash impairment
recognized on the re-measurement of Gualcamayo and related
Argentinian exploration properties in association with their
reclassification as assets held for sale.
Cash flows from operating activities for the
fourth quarter were $158.5 million and cash flows from operating
activities before income taxes paid, including $46.6 million in
payments relating to Brazilian tax matters, and net change in
working capital (2) were $170.3 million.
The balance sheet as at December 31, 2017,
includes cash and cash equivalents of $148.9 million. Yamana’s cash
and cash equivalents , and available credit (excluding Brio Gold),
are $129.6 million and $970.0 million, respectively, for total
liquidity to the Company of $1.1 billion.
Peter Marrone, Yamana’s Chairman and Chief
Executive Officer, commented as follows: “In 2017 we exceeded our
production guidance for all metals and did so at costs in line with
expectations. We continued to demonstrate the ability of our
operations to generate cash flow while focusing our efforts on
rightsizing the portfolio with an eye on longer term cash flow
growth, which we expect to see with the addition of the low cost,
high margin production from Cerro Moro. Throughout 2017 and into
2018 we advanced various initiatives to complement cash flow from
operations, including the sale of certain exploration assets,
refinancing a portion of our debt to extend the tenor of our fixed
term debt profile, and initiating a program of strategic evaluation
of our portfolio and certain monetization initiatives. We are
in a strong financial position and are well positioned to deliver a
step change in free cash flow in the second half of 2018 and more
significantly into 2019 as Cerro Moro ramps up and we seek to
maximize our cash return on invested capital.”
(All amounts are expressed in United States dollars unless
otherwise indicated.)
- Attributable production includes production commensurate to the
Company's interest in Brio Gold, which for the fourth quarter and
full year of 2017 was a weighted average of 55.1% and 65.5 %,
respectively.
- Refers to a non-GAAP financial measure or an additional line
item or subtotal in financial statements. Reconciliations for
all non-GAAP financial measures are available at
www.yamana.com/Q42017 and in Section 14 of the Company’s
fourth quarter 2017 Management’s Discussion & Analysis, which
has been filed on SEDAR.
|
Summary of Certain Non-Cash and Other Items Included in Net
Earnings |
|
(In United States Dollars, per share amounts may not add due to
rounding, unaudited) |
Three Months Ending Dec 31st |
Twelve Months Ending Dec
31st |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Non-cash unrealized foreign exchange (gains)/losses |
(1.2 |
) |
8.8 |
|
15.0 |
|
33.7 |
|
Share-based payments/mark-to-market of deferred share units |
3.7 |
|
(2.3 |
) |
12.8 |
|
14.2 |
|
Mark-to-market on derivative contracts |
14.2 |
|
- |
|
15.3 |
|
- |
|
Mark-to-market on investment and other assets |
(0.5 |
) |
4.2 |
|
2.5 |
|
15.6 |
|
Revision in estimates and liabilities including contingencies |
1.9 |
|
8.2 |
|
(26.6 |
) |
17.3 |
|
Impairment of mining and non-operational mineral properties |
356.5 |
|
615.1 |
|
356.5 |
|
615.1 |
|
Other provisions, write-downs and adjustments |
5.9 |
|
2.3 |
|
33.9 |
|
(8.9 |
) |
Non-cash tax unrealized foreign exchange losses/(gains) |
11.6 |
|
50.8 |
|
9.9 |
|
(20.0 |
) |
Income tax effect of adjustments |
(141.3 |
) |
(325.0 |
) |
(143.4 |
) |
(332.9 |
) |
TOTAL ADJUSTMENTS |
250.7 |
|
362.1 |
|
275.9 |
|
334.1 |
|
Increase/(Decrease) to net loss per share |
0.26 |
|
0.38 |
|
0.29 |
|
0.35 |
|
|
|
|
|
|
|
|
|
|
Note: For the three months ended December 31,
2017, net earnings from continuing operations, attributable to
Yamana Gold Inc. equityholders, would be adjusted by an increase of
$244.2 million (2016 - $362.1 million), while an increase of $6.5
million (2016 - $nil) would adjust the earnings attributable to
non-controlling interests. For the twelve months ended
December 31, 2017, net earnings from continuing operations,
attributable to Yamana Gold Inc. equityholders, would be adjusted
by an increase of $263.8 million (2016 - $334.1 million), while an
increase of $11.9 million (2016 - $nil) would adjust the earnings
attributable to non-controlling interests.
CONSTRUCTION AND DEVELOPMENT, STRATEGIC
DEVELOPMENTS AND OPTIMIZATIONS
Cerro Moro: The project
remains on schedule and on budget for
completion at the end of the first quarter of 2018. For the
first quarter of 2018, the focus will move from construction to
commissioning and operational readiness, with remaining
construction works on piping, electrical, instrumentation
installation staged to suit the commissioning plan, and the
recruitment, onboarding and training of the operational staff
aligned to the start of operations in the second quarter of
2018.
Chapada: Opportunities to
increase plant throughput are being considered, as is the
development of the Sucupira deposit, in parallel to the previously
disclosed studies to be undertaken in 2018 to assess a broader
Suruca complex. At Sucupira, 46 million tonnes at 0.27 grams
per tonne (“g/t”) gold and 0.31% copper were upgraded to Mineral
Reserve status, and a new mine plan is being evaluated to
accelerate the timeline and bring forward production from the
Sucupira deposit.
Agua Rica: Technical work
and analysis for project development options continue, as do
the review and consideration of various strategic
alternatives, all in an effort to maximize value. Based on
Yamana’s own evaluation, and feedback from the strategic
alternatives process, the Company believes that the previously
disclosed underground scenario represents a viable alternative that
should be advanced as soon as possible towards a pre-feasibility
level, while concurrently pursuing various strategic alternatives.
As such, the Company has determined that it will undertake
the work required to conduct a preliminary economic assessment
during 2018, with a pre-feasibility study to follow in
2019.
Gualcamayo: Alternatives
to maximize value are being pursued, including the rationalization
of the mine’s production platform and cost structure, the extension
of mine life through exploration focused on the oxide mineral
resource and the advancement of the Deep Carbonate project.
Similar to the strategy leading to the sale of the Mercedes mine in
Mexico during 2016, the Company has also considered the continuum
of options for value maximization. Such options weigh
the prospect for internal advancement and management time and
resources required against the opportunity for monetization, which
would leave management and resources unencumbered for the pursuit
of other internal projects. As the Company has decided to focus its
efforts on assets that are better aligned with its strategic
objectives, Gualcamayo has been classified as an asset held for
sale.
SUBSEQUENT EVENTS
Brio Gold: In January
2018, Leagold Mining Corporation ("Leagold") announced that it
intended to make an offer to acquire all of the issued and
outstanding shares of Brio Gold (“Brio Shares”) on or before
February 28, 2018 (the “Offer”). Based on the share exchange
ratio to be provided under the Offer, the Company would receive
58,115,953 shares of Leagold, representing approximately 22%
ownership in the combined entity. The Company entered into a
support agreement endorsing a transaction with Leagold.
Pursuant to the agreement, the Company agreed to tender all of its
Brio Shares and to hold the Leagold shares it receives pursuant to
the Offer for a minimum period of 12 months, subject to certain
exceptions. The Offer provides the Company the opportunity to
derive value from Brio Gold and the underlying Brio Gold assets as
the combined entity has considerable present value and upside
potential.
Refinancing of Debt:
During the fourth quarter of 2017, the Company completed an
offering of $300 million of 4.625% senior notes due December
2027. With these funds, on January 29, 2018, the Company
redeemed $181.5 million of 6.97% senior notes due December 2019 at
a price of 108.12. These items have extended the tenor of the
Company’s fixed term debt profile at lower average interest rates
and improved financial flexibility. During the first and
second quarter of 2018, the Company has senior notes maturities of
$73.6 million and $35.0 million, respectively, which will be
retired as they come due. Following the 2018 maturities, the
Company’s next scheduled maturity of fixed rate debt of $84 million
is not until March 2020.
Brazilian Tax Matters: In
the third quarter of 2017, the Company elected to participate in a
program to settle all significant outstanding income tax
assessments in Brazil ("Brazilian Tax Matters") and all income tax
assessments relating to the Company’s Chapada mine. On
October 25, 2017, the program was formally enacted into law and the
Company paid $76.7 million in the year ended December 31,
2017. The final program created an option to either pay one
lump sum of approximately $68 million in the first quarter of 2018,
or a total of approximately $100 million plus interest in
installments over twelve years. The Company elected to
proceed with the lump sum payment option, and on January 30, 2018
made the payment. The income tax expense associated with the
tax matters has been recorded in the Consolidated Statement of
Operations for the year ended December 31, 2017.
YEAR END MINERAL RESERVES AND MINERAL RESOURCES
SUMMARY
As at December 31, 2017.
Proven and Probable Mineral
Reserves |
|
|
|
|
Tonnes (000s) |
Grade (g/t) |
Contained oz. (000s) |
|
Gold |
838,252 |
0.48 |
13,044 |
|
Silver |
11,433 |
184.6 |
67,855 |
|
|
Tonnes (000s) |
Grade (%) |
Contained lbs (M) |
|
Copper |
632,218 |
0.26 |
3,556 |
|
|
|
|
|
Measured and Indicated Mineral
Resources |
|
|
|
|
Tonnes (000s) |
Grade (g/t) |
Contained oz. (000s) |
|
Gold |
654,230 |
0.83 |
17,396 |
|
Silver |
14,346 |
83.9 |
38,714 |
|
|
Tonnes (000s) |
Grade (%) |
Contained lbs (M) |
|
Copper |
277,649 |
0.22 |
1,344 |
|
|
|
|
|
Inferred Mineral Resources |
|
|
|
|
Tonnes (000s) |
Grade (g/t) |
Contained oz. (000s) |
|
Gold |
249,236 |
1.37 |
10,956 |
|
Silver |
30,080 |
57.0 |
55,157 |
|
|
Tonnes (000s) |
Grade (%) |
Contained lbs (M) |
|
Copper |
47,153 |
0.24 |
253 |
|
|
|
|
|
Additional details relating to the Company’s
Mineral Reserve and Mineral Resource estimates as at December 31,
2017 are presented below. For complete information relating
to Yamana’s Mineral Reserve and Mineral Resource estimates as at
December 31, 2016, refer to the Company’s press release issued on
February 16, 2017.
Chapada, Brazil
As the result of the successful definition and
expansion of the Sucupira mineral reserve, immediately adjacent to
the main Chapada pit, gold and copper mineral reserves increased by
5% and 7%, respectively, over prior year, representing a
significant overall improvement over depletion in 2017. Sucupira
mineral reserves are 46 million tonnes grading 0.27 g/t gold and
0.31% copper. Gold measured and indicated mineral resources
increased by 48%, while copper increased by 99% compared to the
prior year following the drilling for extensions of the mineral
envelopes at Suruca, in addition to Sucupira and Baru. Gold
and copper inferred mineral resources decreased by 30% and 51%,
respectively, as these were converted to indicated mineral
resources.
The following chart summarizes the changes in
gold mineral reserves at Chapada as at December 31, 2017 compared
to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/ebca65a1-0d32-4a81-b6b2-29ebeacbf778
The following chart summarizes the changes in
copper mineral reserves at Chapada as at December 31, 2017 compared
to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/70118cdb-f42c-4975-a473-d040d6d55a67
El Peñón, Chile
Declines in gold and silver mineral reserves
reflect production depletion in 2017 as well as adjustments to the
mineral resource estimation methodology and updates to the cost
structure for local currency appreciation, offset by the additions
to mineral reserves via exploration and infill drilling. As
part of the new plan for El Peñón that started in 2017, a thorough
review of the resource modelling, including estimation techniques
and mine design parameters was completed, and validated with actual
results during last year of production. The revision better
reflects both the geological behaviour of the narrow veins and the
Company’s enhanced ability to efficiently mine narrower veins, as
evidenced by production results in 2017 that exceeded guidance
expectations taking advantage of mineral resources found outside
the mineral reserves blocks. The result of this detailed
review will be covered by a new technical report that is being
prepared for release in 2018. The net additions in mineral
resources are sourced from numerous secondary vein structures in
the east mine area including El Valle Este, Dorada Sur, Bonanza,
Aleste, La Paloma and Discovery Wash in the core mine area. Most of
the additions are contiguous to existing mine
infrastructure.
The higher proportion of narrower veins, the
impetus for the right sizing of El Peñón in 2017, prompted a review
of mineral resource estimation and reporting methodologies.
The new methodology uses a stope optimizer routine over the entire
inventory of mineral resources, using economical parameters and
mine design constrains, mainly minimum mining width and
dilution. The approach results in an overall smaller
inventory, but with a higher prospectivity for transformation into
mineral reserves in the future, through infill drilling and design
optimizations.
The following chart summarizes the changes in
gold mineral reserves at El Peñón as at December 31, 2017 compared
to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/4ed93b7c-dade-4ede-b606-c506fa28c477
The following chart summarizes the changes in
silver mineral reserves at El Peñón as at December 31, 2017
compared to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/5be4e7da-f511-4713-86b4-721afe7a442c
Canadian Malartic including Odyssey, Canada
(50%)
Gold mineral reserves reflect depletion
associated with 2017 production. Much of the mineral resource
accretion in 2017 is associated with the East Malartic underground,
which is being reported for the first time, and the South deposit
at Odyssey. Additional drilling is required at Odyssey and East
Malartic to convert inferred mineral resources to indicated.
Conversion drilling for East Malartic and Odyssey South can
be undertaken from surface and this work is expected to commence in
2018. However, the Odyssey internal zone is presenting a
higher level of complexity and thus requires underground drilling
access. Preparation works to establish an exploration from
surface is budgeted to commence in 2018.
The following chart summarizes the changes in
gold mineral reserves at Canadian Malartic as at December 31, 2017
compared to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/1f67a21e-9c5d-487d-ac97-595e5920227c
Jacobina, Brazil
The Company successfully maintained gold mineral
reserves, in line with 2016 despite production depletion in
2017. In 2017 the Company completed drill testing of the
Canavieiras Sul and Central deposits and the planned update to the
block models and mineral reserve shapes. With a
reinterpretation of the Canavieiras mines, including a more
conservative dilution assumption, the higher-grade Canavieiras
mines now make up a smaller proportion of the total
Jacobina mineral reserve, which, at year-end 2017 totaled 26
million tonnes grading 2.28 g/t gold, compared to 21 million tonnes
grading 2.85 g/t gold in 2016. The resultant dilution and
mineral reserve grades are consistent with actual results achieved
in 2017. Gold measured and indicated mineral resources
increased by 24% due to the reclassification from inferred mineral
resources resulting from the infill drilling in 2017, while
inferred mineral resources declined by 93% due to both the
upgrading and the application of minimum mining widths to remove
mineral resources contained in veins less than 1.5 metres in
width. Overall, the mineral inventory at Jacobina remains
significant with mineral reserves of 1.9 million ounces supporting
an approximate 13-year mine life with another 3.3 million ounces of
measured and indicated mineral resources.
The following chart summarizes the changes in
gold mineral reserves at Jacobina as at December 31, 2017 compared
to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/42ff2f57-e012-40d2-a20d-be6f73a50fd9
Minera Florida, Chile
Gold mineral reserves increased by 5% compared
to 2016, despite production depletion in 2017. Areas within
the newly acquired ground and existing mine complex are
contributing to the mineral reserve replacement. These new areas
include Las Pataguas, PVS, among others. Improvements in mine
design parameters, including mining costs and dilution as a result
of using split blasting extraction techniques, have had a positive
impact on mineral reserves in the core mine areas.
Significant additions to the inferred mineral resources positions
Minera Florida to convert these new discoveries into measured and
indicated mineral resources and mineral reserves during 2018.
The following chart summarizes the changes in
gold mineral reserves at Minera Florida as at December 31, 2017
compared to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/17ac0511-9af3-45aa-b748-e6d3d1d04ada
The following chart summarizes the changes in
silver mineral reserves at Minera Florida as at December 31, 2017
compared to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/8e2ad724-6e1f-446c-b4c2-ea8a3e433971
Gualcamayo, Argentina
Gold and silver mineral reserves reflect
depletion associated with 2017 production. The near-mine
exploration drill program continued in the fourth quarter with
modest results to date, mainly in Cerro Condor. The district
exploration program continued to map and collect rock chip samples,
and based on positive results from the prospection, drilling was
started at Sierra Alaya and Target D. The shift in focus to
district exploration will be carried forward into 2018 with
drilling to continue in areas that can readily contribute to
production.
Modeling of near mine drill program results
during the second half of 2017, integrating geology and drill
program assay results reveals that the orientation of the
Potenciales mineralization dips back away from the pit wall and
consequently has not added to mineral resources. Additional
work is expected to be completed during 2018 in order to evaluate
the conversion of existing mineral resources to mineral
reserves.
As a result of an updated methodology to define
remaining mineral resources, measured and indicated mineral
resources, and inferred mineral resources within the pit shell
area, QDD and AIM zones were reduced compared to last
year.
The following chart summarizes the changes in
gold mineral reserves at Gualcamayo as at December 31, 2017
compared to the prior
period.http://www.globenewswire.com/NewsRoom/AttachmentNg/b941de80-c5be-467a-bd9f-6980e781fd43
Cerro Moro, Argentina
Gold and silver mineral reserves were unchanged
for the current year as the majority of 2017 drilling focused on
delineation work at Zoe, Escondida Far West and Nini – areas that
will be the focus of mining in 2018. On completion of infill
drilling, the Company began conducting detailed mapping and
sampling programs, identifying the presence of sulfide-rich black
silica as key to the high-grade deposits in several of the targets
on the property. This effort led to the discovery of Veronica, a
new high grade near surface structure. Veronica is expected to add
significant new inferred mineral resources in the short
term.
In addition to Veronica, drilling has identified
other exploration targets in the near-mine area that will be
targeted as part of the 2018 exploration program. District
exploration included surface work and target delineation in the La
Henriette and on the newly acquired Mosquito project, covering the
extension of the Escondida structure.
KEY STATISTICSKey operating and financial
statistics for the fourth quarter and full year 2017 are outlined
in the following tables.
|
Financial Summary (including Brio Gold on a 100% basis
unless otherwise indicated) |
|
|
Three Months Ending Dec 31st |
Twelve Months Ending Dec 31st |
(In millions of United States Dollars except for shares and per
share amounts, unaudited) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Revenue |
478.8 |
|
484.4 |
|
1,803.8 |
|
1,787.7 |
|
Cost of sales excluding depletion, depreciation and
amortization |
(264.7 |
) |
(284.1 |
) |
(1,042.4 |
) |
(1,029.0 |
) |
Depletion, depreciation and amortization |
(100.9 |
) |
(128.3 |
) |
(426.8 |
) |
(462.3 |
) |
Total cost of sales |
(365.6 |
) |
(412.4 |
) |
(1,469.2 |
) |
(1,491.3 |
) |
Mine operating earnings |
(143.7 |
) |
(639.3 |
) |
77.7 |
|
(414.9 |
) |
General and administrative expenses |
(34.0 |
) |
(29.9 |
) |
(113.6 |
) |
(100.2 |
) |
Exploration and evaluation expenses |
(7.0 |
) |
(3.0 |
) |
(21.2 |
) |
(14.9 |
) |
Net earnings/(loss) from continuing operations |
(199.7 |
) |
(355.4 |
) |
(204.1 |
) |
(290.8 |
) |
Net earnings/(loss) attributable to Yamana Gold equityholders |
(191.0 |
) |
(367.6 |
) |
(194.4 |
) |
(307.9 |
) |
Net earnings/(loss) from continuing operations, attributable to
Yamana Gold equityholders per share - basic and diluted |
(0.20 |
) |
(0.37 |
) |
(0.21 |
) |
(0.31 |
) |
Cash flow generated from continuing operations after changes in
non-cash working capital |
158.5 |
|
163.0 |
|
484.0 |
|
651.9 |
|
Cash flow from operations before changes in non-cash working
capital |
122.3 |
|
147.7 |
|
498.0 |
|
626.6 |
|
Revenue per ounce of gold |
1,269 |
|
1,196 |
|
1,250 |
|
1,240 |
|
Revenue per ounce of silver |
16.46 |
|
17.11 |
|
16.80 |
|
17.06 |
|
Revenue per pound of copper |
2.36 |
|
2.02 |
|
2.36 |
|
1.92 |
|
Average realized gold price per ounce |
1,286 |
|
1,210 |
|
1,264 |
|
1,251 |
|
Average realized silver price per ounce |
16.49 |
|
17.17 |
|
16.83 |
|
17.04 |
|
Average realized copper price per pound |
3.02 |
|
2.48 |
|
2.78 |
|
2.24 |
|
1. For the three months ended December 31, 2017, the
weighted average numbers of shares outstanding, basic and diluted,
was 948,468 thousand |
|
|
Production, Financial and Operating Summary |
|
|
Three Months Ending Dec 31st |
Twelve Months Ending Dec 31st |
Gold |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Total cost of sales per ounce sold, excluding Brio Gold |
$966 |
$935 |
$1,023 |
$991 |
Total cost of sales per ounce sold |
$980 |
$1,004 |
$1,038 |
$1,008 |
Co-product cash costs per ounce produced, excluding Brio Gold |
$660 |
$635 |
$672 |
$650 |
Co-product cash costs per ounce produced, attributable |
$672 |
$667 |
$692 |
$665 |
All-in sustaining co-product costs per ounce produced, excluding
Brio Gold |
$899 |
$900 |
$888 |
$905 |
All-in sustaining co-product costs per ounce produced,
attributable |
$925 |
$928 |
$916 |
$911 |
Silver |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Total cost of sales per ounce sold |
$13.26 |
$15.58 |
$13.63 |
$13.79 |
Co-product cash costs per ounce produced |
$8.86 |
$10.07 |
$10.01 |
$8.96 |
All-in sustaining costs per ounce produced, co-product basis |
$11.90 |
$14.48 |
$13.48 |
$12.65 |
Copper |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Total cost of sales per copper pound sold |
$1.67 |
$1.80 |
$1.73 |
$1.93 |
Co-product cash costs per pound of copper produced - Chapada |
$1.51 |
$1.44 |
$1.54 |
$1.58 |
All-in sustaining costs per pound of copper produced - Chapada |
$1.67 |
$1.80 |
$1.74 |
$2.03 |
|
|
|
|
|
|
Three Months Ending Dec 31st |
Twelve Months Ending Dec 31st |
By-Product Costs |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
By-product cash costs per gold ounce produced, excluding Brio
Gold |
$548 |
$553 |
$561 |
$611 |
All-in sustaining by-product costs per gold ounce produced,
excluding Brio Gold |
$829 |
$870 |
$820 |
$925 |
By-product cash costs per silver ounce produced, excluding Brio
Gold |
$7.44 |
$8.90 |
$8.58 |
$8.45 |
All-in sustaining by-product costs per silver ounce produced,
excluding Brio Gold |
$11.05 |
$14.18 |
$12.65 |
$12.93 |
|
|
|
|
|
|
|
|
|
Three Months Ending Dec 31st |
Twelve Months Ending Dec 31st |
Gold Ounces |
2017 |
2016 |
2017 |
2016 |
Chapada |
36,578 |
40,358 |
119,852 |
107,301 |
El Peñón |
39,401 |
55,764 |
160,509 |
220,209 |
Canadian Malartic (50%) |
80,743 |
69,971 |
316,731 |
292,514 |
Jacobina |
34,566 |
32,180 |
135,806 |
120,478 |
Minera Florida |
23,540 |
25,675 |
90,366 |
104,312 |
Gualcamayo |
44,778 |
44,840 |
154,052 |
164,265 |
Total production, excluding Brio Gold |
259,606 |
268,788 |
977,316 |
1,009,079 |
Brio Gold (attributable to Yamana) |
22,435 |
49,580 |
119,011 |
188,765 |
TOTAL |
282,041 |
318,368 |
1,096,327 |
1,197,844 |
|
|
|
|
|
|
Three Months Ending Dec 31st |
Twelve Months Ending Dec 31st |
Silver Ounces |
2017 |
2016 |
2017 |
2016 |
Chapada |
71,520 |
78,020 |
252,748 |
259,444 |
El Peñón |
1,052,423 |
1,454,293 |
4,282,339 |
6,020,758 |
Minera Florida |
47,099 |
94,738 |
469,674 |
429,048 |
TOTAL |
1,171,042 |
1,627,051 |
5,004,761 |
6,709,250 |
|
|
|
|
|
For a full discussion of Yamana’s operational
and financial results, and Mineral Reserve and Mineral Resource
estimates please refer to the Company’s fourth quarter 2017
Management’s Discussion & Analysis and Financial Statements,
which have been filed on SEDAR and are also available on the
Company’s website.
MANAGEMENT UPDATE
The Company is also announcing that Henry
Marsden has been formally promoted to Senior Vice President,
Exploration and that William Wulftange has retired from the
Company. The transition process for Mr. Marsden began in October,
2017, and was consistent with the Company’s succession planning
efforts and allowed for an orderly transition of
responsibilitiesleading up to the formal retirement of Mr.
Wulftange. Previously serving as Yamana’s Chief Geologist, Mr.
Marsden was hired by Mr. Wulftange and has been with the Company
since 2016. By promoting from within, Yamana was again able to draw
on the depth of talent within the organization.
Mr. Marsden has over 30 years of exploration
experience, including over 20 years as a consulting geologist
working with a variety of clients and focusing on field exploration
work. He also played a key role in the discovery and
advancement of several deposits including Rio Blanco and Pico
Machay in Peru, and the Timmins West gold deposit in Timmins,
Ontario where he was responsible for the first mineral resource
which ultimately lead to mine construction.
Mr. Marsden will be responsible for the
development, implementation and management of Yamana’s overall
exploration strategy and activities, with a focus on expanding
Mineral Reserves and Mineral Resources, as well as for forging
partnerships with companies focused on early stage exploration
opportunities.
MINERAL RESERVE AND MINERAL RESOURCE
ESTIMATES
Mineral Reserves (Proven and Probable)The
following table sets forth the Mineral Reserve estimates for the
Company’s mineral projects as at December 31, 2017.
|
Proven Mineral Reserves |
Probable Mineral Reserves |
Total Proven & Probable |
Gold |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
Alumbrera (12.5%) |
9,915 |
0.40 |
126 |
485 |
0.37 |
6 |
10,399 |
0.39 |
132 |
Canadian Malartic (50%) |
24,990 |
0.95 |
760 |
65,509 |
1.15 |
2,429 |
90,499 |
1.10 |
3,189 |
Cerro Moro |
- |
- |
- |
1,954 |
11.38 |
715 |
1,954 |
11.38 |
715 |
Chapada |
312,360 |
0.18 |
1,788 |
368,790 |
0.21 |
2,500 |
681,150 |
0.20 |
4,287 |
El Peñón |
1,062 |
5.90 |
201 |
3,332 |
5.25 |
563 |
4,394 |
5.41 |
764 |
Gualcamayo |
6,570 |
1.26 |
267 |
3,678 |
1.90 |
224 |
10,248 |
1.49 |
491 |
Jacobina |
18,161 |
2.34 |
1,365 |
7,681 |
2.13 |
527 |
25,842 |
2.28 |
1,892 |
Jeronimo (57%) |
6,350 |
3.91 |
798 |
2,331 |
3.79 |
284 |
8,681 |
3.88 |
1,082 |
Minera Florida Ore |
846 |
3.80 |
103 |
2,992 |
3.65 |
351 |
3,838 |
3.68 |
454 |
Minera Florida Tailings |
1,248 |
0.94 |
38 |
- |
- |
- |
1,248 |
0.94 |
38 |
Total Minera Florida |
2,093 |
2.10 |
141 |
2,992 |
3.65 |
351 |
5,086 |
3.01 |
492 |
Yamana Gold Mineral Reserves |
381,501 |
0.44 |
5,446 |
456,751 |
0.52 |
7,598 |
838,252 |
0.48 |
13,044 |
Upper Beaver (50%) |
- |
- |
- |
3,996 |
5.43 |
698 |
3,996 |
5.43 |
698 |
Total Gold Mineral Reserves |
381,501 |
0.44 |
5,446 |
460,747 |
0.56 |
8,296 |
842,248 |
0.51 |
13,742 |
Agua Rica |
384,871 |
0.25 |
3,080 |
524,055 |
0.21 |
3,479 |
908,926 |
0.22 |
6,559 |
|
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
Cerro Moro |
- |
- |
- |
1,954 |
648.3 |
40,723 |
1,954 |
648.3 |
40,723 |
El Peñón |
1,062 |
192.4 |
6,567 |
3,332 |
158.8 |
17,011 |
4,394 |
166.9 |
23,578 |
Minera Florida Ore |
846 |
29.6 |
804 |
2,992 |
22.5 |
2,165 |
3,838 |
24.1 |
2,970 |
Minera Florida Tailings |
1,248 |
14.5 |
584 |
- |
- |
- |
1,248 |
14.5 |
584 |
Total Minera Florida |
2,093 |
20.6 |
1,388 |
2,992 |
22.5 |
2,165 |
5,086 |
21.7 |
3,553 |
Total Silver Mineral Reserves |
3,155 |
78.4 |
7,955 |
8,278 |
225.1 |
59,899 |
11,433 |
184.6 |
67,855 |
Agua Rica |
384,871 |
3.7 |
46,176 |
524,055 |
3.3 |
56,070 |
908,926 |
3.5 |
102,246 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
Alumbrera (12.5%) |
9,915 |
0.38 |
82 |
485 |
0.30 |
3 |
10,399 |
0.37 |
85 |
Chapada |
302,492 |
0.25 |
1,642 |
319,327 |
0.26 |
1,829 |
621,819 |
0.25 |
3,471 |
Yamana Copper Mineral Reserves |
312,407 |
0.25 |
1,724 |
319,812 |
0.26 |
1,832 |
632,218 |
0.26 |
3,556 |
Upper Beaver (50%) |
- |
- |
- |
3,996 |
0.25 |
22 |
3,996 |
0.25 |
22 |
Total Copper Mineral Reserves |
312,407 |
0.25 |
1,724 |
323,808 |
0.26 |
1,854 |
636,214 |
0.26 |
3,578 |
Agua Rica |
384,871 |
0.56 |
4,779 |
524,055 |
0.43 |
5,011 |
908,926 |
0.49 |
9,790 |
|
|
|
|
|
|
|
|
|
|
Zinc |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
Minera Florida |
2,093 |
0.96 |
44 |
2,992 |
1.05 |
69 |
5,086 |
1.01 |
114 |
Total Zinc Mineral Reserves |
2,093 |
0.96 |
44 |
2,992 |
1.05 |
69 |
5,086 |
1.01 |
114 |
|
|
|
|
|
|
|
|
|
|
Molybdenum |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
Alumbrera (12.5%) |
9,915 |
0.011 |
2.50 |
485 |
0.009 |
0.09 |
10,400 |
0.011 |
2.60 |
Total Moly Mineral Reserves |
9,915 |
0.011 |
2.50 |
485 |
0.009 |
0.09 |
10,400 |
0.011 |
2.60 |
Agua Rica |
384,871 |
0.033 |
279 |
524,055 |
0.030 |
350 |
908,926 |
0.031 |
629 |
|
|
|
|
|
|
|
|
|
|
Mineral Resources (Measured, Indicated,
and Inferred)The following tables set forth the Mineral
Resource estimates for the Company’s mineral projects as at
December 31, 2017.
|
Measured Mineral Resources |
Indicated Mineral Resources |
Total Measured & Indicated |
Gold |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
Alumbrera (12.5%) |
3,082 |
0.39 |
39 |
375 |
0.37 |
5 |
3,457 |
0.39 |
43 |
Arco Sul |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Canadian Malartic (50%) |
2,037 |
1.33 |
87 |
11,086 |
1.59 |
566 |
13,123 |
1.55 |
653 |
Cerro Moro |
- |
- |
- |
3,321 |
2.23 |
238 |
3,321 |
2.23 |
238 |
Chapada |
54,815 |
0.12 |
204 |
301,538 |
0.27 |
2,600 |
356,353 |
0.24 |
2,804 |
El Peñón |
312 |
8.56 |
86 |
1,116 |
6.47 |
232 |
1,428 |
6.92 |
318 |
Gualcamayo |
10,784 |
2.00 |
692 |
21,949 |
2.25 |
1,585 |
32,733 |
2.16 |
2,277 |
Jacobina |
33,494 |
2.20 |
2,370 |
13,554 |
2.04 |
889 |
47,048 |
2.15 |
3,258 |
Jeronimo (57%) |
772 |
3.77 |
94 |
385 |
3.69 |
46 |
1,157 |
3.74 |
139 |
La Pepa |
15,750 |
0.61 |
308 |
133,682 |
0.57 |
2,452 |
149,432 |
0.57 |
2,760 |
Lavra Velha |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Minera Florida |
1,176 |
6.04 |
228 |
3,722 |
5.05 |
604 |
4,897 |
5.28 |
832 |
Monument Bay |
- |
- |
- |
36,581 |
1.52 |
1,787 |
36,581 |
1.52 |
1,787 |
Suyai |
- |
- |
- |
4,700 |
15.00 |
2,286 |
4,700 |
15.00 |
2,286 |
Yamana Gold Mineral Resources |
122,221 |
1.05 |
4,108 |
532,009 |
0.78 |
13,289 |
654,230 |
0.83 |
17,396 |
Amalgamated Kirkland (50%) |
- |
- |
- |
634 |
6.51 |
133 |
634 |
6.51 |
133 |
Anoki-McBean (50%) |
- |
- |
- |
934 |
5.33 |
160 |
934 |
5.33 |
160 |
Hammond Reef (50%) |
82,831 |
0.70 |
1,862 |
21,377 |
0.56 |
388 |
104,208 |
0.67 |
2,251 |
Upper Beaver (50%) |
- |
- |
- |
1,818 |
3.45 |
202 |
1,818 |
3.45 |
202 |
Upper Canada (50%) |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Canadian Malartic Corporation Properties (50%) |
82,831 |
0.70 |
1,862 |
24,763 |
1.11 |
882 |
107,594 |
0.79 |
2,745 |
Total Gold Mineral Resources |
205,052 |
0.91 |
5,970 |
556,772 |
0.79 |
14,171 |
761,824 |
0.82 |
20,142 |
Agua Rica |
27,081 |
0.14 |
120 |
173,917 |
0.14 |
776 |
200,998 |
0.14 |
896 |
|
|
|
|
|
|
|
|
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
Cerro Moro |
- |
- |
- |
3,321 |
190.3 |
20,313 |
3,321 |
190.3 |
20,313 |
El Peñón |
312 |
191.0 |
1,914 |
1,116 |
224.3 |
8,048 |
1,428 |
217.0 |
9,962 |
Minera Florida |
1,176 |
41.5 |
1,570 |
3,722 |
28.0 |
3,347 |
4,897 |
31.2 |
4,916 |
Suyai |
- |
- |
- |
4,700 |
23.0 |
3,523 |
4,700 |
23.3 |
3,523 |
Total Silver Mineral Resources |
1,487 |
72.9 |
3,484 |
12,858 |
85.2 |
35,230 |
14,346 |
83.9 |
38,714 |
Agua Rica |
27,081 |
2.4 |
2,042 |
173,917 |
2.9 |
16,158 |
200,998 |
2.8 |
18,200 |
|
|
|
|
|
|
|
|
|
|
Copper |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
Alumbrera (12.5%) |
3,082 |
0.40 |
27 |
375 |
0.39 |
3 |
3,457 |
0.40 |
31 |
Chapada |
54,815 |
0.19 |
233 |
219,377 |
0.22 |
1,080 |
274,192 |
0.22 |
1,313 |
Yamana Copper Mineral Resources |
57,897 |
0.20 |
260 |
219,752 |
0.22 |
1084 |
277,649 |
0.22 |
1344 |
Upper Beaver (50%) |
- |
- |
- |
1,818 |
0.14 |
6 |
1,818 |
0.14 |
6 |
Total Copper Mineral Resources |
57,897 |
0.20 |
260 |
221,570 |
0.22 |
1,089 |
279,467 |
0.22 |
1,350 |
Agua Rica |
27,081 |
0.45 |
266 |
173,917 |
0.38 |
1,447 |
200,998 |
0.39 |
1,713 |
|
|
|
|
|
|
|
|
|
|
Zinc |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
Minera Florida |
1,176 |
2.32 |
60 |
3,722 |
1.69 |
139 |
4,897 |
1.84 |
199 |
Total Zinc Mineral Resources |
1,176 |
2.32 |
60 |
3,722 |
1.69 |
139 |
4,897 |
1.84 |
199 |
|
|
|
|
|
|
|
|
|
|
Molybdenum |
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
Alumbrera (12.5%) |
3,082 |
0.014 |
0.93 |
375 |
0.012 |
0.10 |
3,457 |
0.014 |
1.03 |
Total Moly Mineral Resources |
3,082 |
0.014 |
0.93 |
375 |
0.012 |
0.10 |
3,457 |
0.014 |
1.03 |
Agua Rica |
27,081 |
0.049 |
29 |
173,917 |
0.037 |
142 |
200,998 |
0.039 |
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred Mineral Resources |
Gold |
|
|
|
|
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
Alumbrera (12.5%) |
108 |
0.29 |
1 |
Arco Sul |
5,000 |
4.02 |
646 |
Canadian Malartic (50%) |
35,039 |
2.05 |
2,306 |
Cerro Moro |
4,427 |
1.96 |
279 |
Chapada |
74,599 |
0.25 |
609 |
El Peñón |
17,469 |
1.71 |
960 |
Gualcamayo |
17,920 |
2.48 |
1,430 |
Jacobina |
1,595 |
2.24 |
115 |
Jeronimo (57%) |
1,118 |
4.49 |
161 |
La Pepa |
37,900 |
0.50 |
620 |
Lavra Velha |
3,934 |
4.29 |
543 |
Minera Florida |
7,284 |
5.26 |
1,231 |
Monument Bay |
41,946 |
1.32 |
1,781 |
Suyai |
900 |
9.90 |
274 |
Yamana Gold Mineral Resources |
249,236 |
1.37 |
10,956 |
Amalgamated Kirkland (50%) |
1,187 |
5.32 |
203 |
Anoki-McBean (50%) |
1,263 |
4.70 |
191 |
Hammond Reef (50%) |
251 |
0.72 |
6 |
Upper Beaver (50%) |
4,344 |
5.07 |
708 |
Upper Canada (50%) |
6,049 |
4.50 |
876 |
Canadian Malartic Corporation Properties (50%) |
13,094 |
4.71 |
1,984 |
Total Gold Mineral Resources |
262,330 |
1.53 |
12,940 |
Agua Rica |
642,110 |
0.12 |
2,444 |
|
|
|
|
Silver |
|
|
|
|
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
Cerro Moro |
4,427 |
101.3 |
14,415 |
El Peñón |
17,469 |
59.7 |
33,506 |
Minera Florida |
7,284 |
28.4 |
6,661 |
Suyai |
900 |
21.0 |
575 |
Total Silver Mineral Resources |
30,080 |
57.0 |
55,157 |
Agua Rica |
642,110 |
2.3 |
48,124 |
|
|
|
|
Copper |
|
|
|
|
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
Alumbrera (12.5%) |
108 |
0.21 |
1 |
Chapada |
47,046 |
0.24 |
252 |
Yamana Copper Mineral Resources |
47,153 |
0.24 |
253 |
Upper Beaver (50%) |
4,344 |
0.20 |
19 |
Total Copper Mineral Resources |
51,497 |
0.24 |
272 |
Agua Rica |
642,110 |
0.34 |
4,853 |
|
|
|
|
Zinc |
|
|
|
|
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
Minera Florida |
7,284 |
1.33 |
214 |
Total Zinc Mineral Resources |
7,284 |
1.33 |
214 |
|
|
|
|
Molybdenum |
|
|
|
|
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
Alumbrera (12.5%) |
108 |
0.004 |
0.01 |
Total Moly Mineral Resources |
108 |
0.004 |
0.01 |
Agua Rica |
642,110 |
0.034 |
480 |
|
|
|
|
Mineral Reserve and Mineral Resource
Reporting Notes1. Metal Prices and Cut-off
Grades:
|
|
|
|
|
|
Mine |
|
Mineral
Reserves |
|
Mineral
Resources |
|
|
|
|
|
|
|
Anoki-McBean (50%) |
|
N/A |
|
$1,200 Au,
cut-off grade at 2.5 g/t Au |
|
|
|
|
|
|
|
Amalgamated
Kirkland (50%) |
|
N/A |
|
$1,200 Au,
cut-off grade at 2.5 g/t Au |
|
|
|
|
|
|
|
Alumbrera
Deposit (12.5%) |
|
$1,250 Au,
$2.91 Cu. Underground cut-off at 0.5% Cueq. Metallurgical
recoveries are 87.85% for Cu and 72.31% for Au. |
|
0.5% Cueq
within economic envelope |
|
|
|
|
|
|
|
Bajo El
Durazno Deposit (12.5% - Part of Alumbrera Projects) |
|
$1,250 Au,
$2.91 Cu. Open pit cut-off at 0.3 g/t Aueq within pit.
Metallurgical recoveries are 72.83% for Cu and 66.75% for Au. |
|
0.2 g/t
Aueq within economic envelope |
|
|
|
|
|
|
|
Arco
Sul |
|
N/A |
|
2.5 g/t Au
cut-off |
|
|
|
|
|
|
|
Canadian
Malartic (50%) |
|
$1,200 Au,
cut-off grades range from 0.334 to 0.374 g/t Au.Metallurgical
recoveries for Au range from 87% to 96.7% depending on
zone. |
|
$1,200 Au,
cut-off grades range from 0.35 g/t Au inside pit and 1.0 g/t Au
outside or below pit. Cut-off grade Odyssey Underground at
1.0 g/t Au and East Malartic Underground at 1.25 g/t Au (MSO). |
|
|
|
|
|
|
|
Cerro
Moro |
|
$950 Au and
$18.00 Ag, Open pit cut-off at 3.4 g/t Aueq and Underground cut-off
at 6.2 g/t Aueq. Metallurgical recoveries are 95% for Au and
93% for Ag. |
|
1.0 g/t
Aueq cut-off |
|
|
|
|
|
|
|
Chapada |
|
$1,250 Au,
$3.00 Cu; $4.36 NSR cut-off at $4.06 / t (Main Pit, Corpo Sul, Cava
Norte and Sucupira). Cut-off grade 0.21 g/t Au based on $1,300 /
ounce Au (Suruca Oxide). Cut-off grade 0.3 g/t Au based on
$900 / ounce Au (Suruca Sulphide). Metallurgical recoveries
for Suruca Oxide are dependent on zone and average 85% for
gold. |
|
$1,600 /
ounce Au Au, $4.00 / lb Cu (Chapada pits and Suruca SW). 0.2
g/t Au cut-off for oxide and 0.3 g/t Au cut-off for sulphide in
Suruca Gold Project. |
|
|
|
|
|
|
|
El
Peñón |
|
$1,250 Au,
$18.00 Ag, Variable cut-off for Underground ranging from 3.48 g/t
Aueq to 4.31 g/t Aueq dependent on zone. Reserves based on
economic revenue. Metallurgical recoveries for Au ranges from 82%
to 97% and Ag ranges from 56% to 95% dependent on zone. |
|
$1,600 Au,
$24.00 Ag, Variable cut-off for Underground ranging from 2.71 g/t
Aueq to 2.82 g/t Aueq dependent on zone. Cut-off grade for
tailings at 0.50 g/t Aueq and for low grade stock at 0.80 g/t
Aueq. Metallurgical recoveries: Underground 95% Au and 86.5%
Ag. Tailings 60% Au and 20% Ag. Low grade stock 75% Au
and 70% Ag. |
|
|
|
|
|
|
|
Gualcamayo |
|
$1,250
Au, Reserves based on economic revenue with variable
cut-offs.Metallurgical recoveries for Au open pit ore are 49% and
61% for Au underground ore. |
|
Open pit
resources based $1,500 Au resource pit with cut-offs
dependent on zone. 1.00 g/t Au Cut-off UG material
outside of the the resource pit shell. |
|
|
|
|
|
|
|
Hammond
Reef (50%) |
|
N/A |
|
$1,400 Au,
Open pit cut-off 0.32 g/t Au West Pit and 0.34 g/t Au East
Pit. |
|
|
|
|
|
|
|
Jacobina |
|
$1,200 Au;
1.2 g/t Au cut-off. Metallurgical recovery for Au is 96%. |
|
0.5 g/t Au
cut-off based on $1,600 Au price and a minimum width of 1.5 m,
96.5% metallurgical recovery and incremental mining cost. |
|
|
|
|
|
|
|
Jeronimo
(57%) |
|
$900 Au,
2.0 g/t Au cut-off. Metallurgical recovery for Au is 86%. |
|
2.0 g/t Au
cut-off |
|
|
|
|
|
|
|
La
Pepa |
|
N/A |
|
$780 Au,
0.30 g/t Au cut-off |
|
|
|
|
|
|
|
Lavra
Velha |
|
N/A |
|
$1300 Au,
$3.50 Cu and 0.2g/t Au, 0.1% Cu cut-offs |
|
|
|
|
|
|
|
Minera
Florida |
|
$1,250 Au,
$18.00 Ag, $1.25 Zn. Reserves based on a 2.17 g/t Aueq
cut-off. Metallurgical recoveries are 90.81% for Au, 51.63%
for Ag and 57.36% for Zn. |
|
2.50 g/t
Aueq cut-off |
|
|
|
|
|
|
|
Monument
Bay |
|
N/A |
|
$1,200 Au,
0.4 and 0.7 g/t cut-off for open pit and 4.0 g/t Au cut-off for
underground. |
|
|
|
|
|
|
|
Suyai |
|
N/A |
|
5.0 g/t Au
cut-off |
|
|
|
|
|
|
|
Upper
Beaver (50%) |
|
$1,200 Au,
$2.75 Cu. Reserves based on NSR cut-off of C$125.00/t.
Metallurgical recoveries are 95% for Au and 80% to 90% for Cu. |
|
$1,200 Au
and $2.75 Cu. Resources based on NSR cut-off of
C$95.00/t. Metallurgical recoveries are 95% for Au and 90%
for Cu. |
|
|
|
|
|
|
|
Agua
Rica |
|
$1,000 Au,
$2.25 lb Cu, $17.00 g/t Ag, $12.00 lb Mo. Metallurgical recoveries
are 84.9% for Cu, 52.7% for Au, 67.6% for Ag, 65.9% for Zn, and
68.0% for Mo. |
|
0.2% Cu
cut-off |
|
|
|
|
|
|
|
2. All Mineral Reserves and Mineral Resources have been
calculated in accordance with the standards of the Canadian
Institute of Mining, Metallurgy and Petroleum and NI 43-101, other
than the estimates for the Alumbrera mine which have been
calculated in accordance with the JORC Code which is accepted under
NI 43-101. |
|
|
|
|
|
|
|
3. All Mineral Resources are reported exclusive of
Mineral Reserves. |
|
|
|
|
|
|
|
4. Mineral Resources which are not Mineral Reserves do
not have demonstrated economic viability. |
|
|
|
|
|
|
|
5. Mineral Reserves and Mineral Resources are reported as
of December 31, 2017. |
|
|
|
|
|
|
|
6. For the qualified persons responsible for the Mineral
Reserve and Mineral Resource estimates, see the qualified
persons list below. |
|
|
|
|
|
|
|
Property |
|
Qualified Persons for Mineral
Reserves |
|
Qualified Persons for Mineral
Resources |
|
|
|
|
Canadian Malartic |
|
Donald Gervais, P. Geo., Canadian Malartic GP |
|
Donald Gervais, P. Geo., Canadian Malartic GP |
|
Chapada |
|
Luiz Pignatari, EDEM Engenharia |
|
Luiz Pignatari, EDEM Engenharia . Felipe
Machado de Araujo, Member of Chilean Mining Commission, Mineral
Resources Coordinator Brazil, Yamana Gold Inc. |
|
El Peñón |
|
Sergio Castro, Yamana Gold Inc. |
|
Jorge Camacho, Yamana Gold Inc. Marcos Valencia A. P.Geo.,
Registered Member of Chilean Mining Commission, Corporate Manager
R&R, Andes/Mexico, Yamana Gold Inc. |
|
FOURTH QUARTER 2017 CONFERENCE CALL
The Company will host a conference call and
webcast on Friday, February 16, 2018 at 9:00 a.m. ET.
Fourth Quarter and Full Year 2017
Conference Call Details
Toll Free (North
America):
1-866-223-7781
Toronto Local and International:
416-340-2218Webcast:
www.yamana.com
Conference Call Replay
Toll Free (North
America):
1-800-408-3053 Toronto
Local and International:
905-694-9451 Passcode:
7856108
The conference call replay will be available
from 12:00 p.m. ET on February 16, 2018 until 11:59 p.m. ET on
March 3, 2018.
Qualified Persons
Other than as set forth herein, William
Wulftange, P.Geo., exploration consultant, has reviewed and
confirmed the scientific and technical information contained within
this press release and serves as the Qualified Person as defined in
National Instrument 43-101.
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 continued drilling at the Odyssey deposit, the Company’s
strategy, plans or future financial or operating performance, the
outcome of the legal matters involving the damages assessments and
any related enforcement proceedings. 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 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.
CAUTIONARY NOTE TO UNITED STATES INVESTORS
CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL
RESOURCES
This news release uses the terms “Mineral
Resource”, “Measured Mineral Resource”, “Indicated Mineral
Resource” and “Inferred Mineral Resource” are defined in and
required to be disclosed by National Instrument 43-101.
However, these terms are not defined terms under Industry Guide 7
and are not permitted to be used in reports and registration
statements of United States companies filed with the
Commission. Investors are cautioned not to assume that any
part or all of the mineral deposits in these categories will ever
be converted into Mineral Reserves. “Inferred Mineral
Resources” have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases. Investors are cautioned not to
assume that all or any part of an Inferred Mineral Resource exists
or is economically or legally mineable. Disclosure of
“contained ounces” in a Mineral Resource is permitted disclosure
under Canadian regulations. In contrast, the Commission only
permits U.S. companies to report mineralization that does not
constitute “Mineral Reserves” by Commission standards as in place
tonnage and grade without reference to unit measures.
Accordingly, information contained in this news release may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements under the
United States federal securities laws and the rules and
regulations of the Commission thereunder.
NON-GAAP FINANCIAL MEASURES AND ADDITIONAL LINE
ITEMS AND SUBTOTALS IN FINANCIAL STATEMENTS
The Company has included certain non-GAAP
financial measures to supplement its Consolidated Financial
Statements, which are presented in accordance with IFRS, including
the following:
- Cash costs per ounce of gold produced on a co-product and
by-product basis;
- Cash costs per ounce of silver produced on a co-product and
by-product basis;
- Co-product cash costs per pound of copper produced;
- All-in sustaining costs per ounce of gold produced on a
co-product and by-product basis;
- All-in sustaining costs per ounce of silver produced on a
co-product and by-product basis;
- All-in sustaining co-product costs per pound of copper
produced;
- Net debt;
- Net free cash flow;
- Average realized price per ounce of gold sold;
- Average realized price per ounce of silver sold; and
- Average realized price per pound of copper sold.
The Company believes that these measures,
together with measures determined in accordance with IFRS, provide
investors with an improved ability to evaluate the underlying
performance of the Company. Non-GAAP financial measures do
not have any standardized meaning prescribed under IFRS, and
therefore they may not be comparable to similar measures employed
by other companies. The data is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Management's determination of the components of
non-GAAP and additional measures are evaluated on a periodic basis
influenced by new items and transactions, a review of investor uses
and new regulations as applicable. Any changes to the
measures are duly noted and retrospectively applied as
applicable.
CASH COSTS AND ALL-IN SUSTAINING
COSTSThe Company discloses “cash costs” because it
understands that certain investors use this information to
determine the Company’s ability to generate earnings and cash flows
for use in investing and other activities. The Company
believes that conventional measures of performance prepared in
accordance with IFRS do not fully illustrate the ability of its
operating mines to generate cash flows. The measures, as
determined under IFRS, are not necessarily indicative of operating
profit or cash flows from operating activities. Cash costs
figures are calculated in accordance with a standard developed by
The Gold Institute, which was a worldwide association of suppliers
of gold and gold products and included leading North American gold
producers. The Gold Institute ceased operations in 2002, but
the standard remains the generally accepted standard of reporting
cash costs of production in North America. Adoption of the standard
is voluntary and the cost measures presented herein may not be
comparable to other similarly titled measures of other
companies.
The measure of cash costs, along with revenue
from sales, is considered to be a key indicator of a company’s
ability to generate operating earnings and cash flows from its
mining operations. This data is furnished to provide
additional information and is a non-GAAP financial measure.
The terms co-product and by-product cash costs per ounce of gold or
silver produced, co-product cash costs per pound of copper
produced, co-product and by-product AISC per ounce of gold or
silver produced and co-product AISC per pound of copper produced do
not have any standardized meaning prescribed under IFRS, and
therefore they may not be comparable to similar measures employed
by other companies. Non-GAAP financial measures should not be
considered in isolation as a substitute for measures of performance
prepared in accordance with IFRS and is not necessarily indicative
of operating costs, operating profit or cash flows presented under
IFRS.
By-Product and Co-Product Cash
CostsCash costs include mine site operating costs such as
mining, processing, administration, production taxes and royalties
which are not based on sales or taxable income calculations, but
are exclusive of amortization, reclamation, capital, development
and exploration costs. The Company believes that such measure
provides useful information about the Company’s underlying cash
costs of operations. Cash costs are computed on a weighted
average basis, net of by-product sales and on a co-product basis as
follows:
Cash costs of gold and silver on a
by-product basis - shown on a per ounce basis.
- The attributable cost for each metal is calculated net of
by-products by applying copper and zinc net revenues, which are
incidental to the production of precious metals, as a credit to
gold and silver ounces produced, thereby allowing the Company’s
management and stakeholders to assess net costs of precious metal
production. These costs are then divided by gold and silver
ounces produced.
Cash costs of gold and silver on a
co-product basis - shown on a per ounce basis.
- Costs directly attributed to gold and silver will be allocated
to each metal. Costs not directly attributed to each metal will be
allocated based on the relative value of revenues which will be
determined annually.
- The attributable cost for each metal will then be divided by
the production of each metal in calculating cash costs per ounce on
a co-product basis for the period.
Cash costs of copper on a co-product
basis - shown on a per pound basis.
- Costs attributable to copper production are divided by
commercial copper pounds produced.
By-Product and Co-Product
AISCAll-in sustaining costs per ounce of gold and silver
produced seeks to represent total sustaining expenditures of
producing gold and silver ounces from current operations, based on
co-product costs or by-product costs, including cost components of
mine sustaining capital expenditures, corporate general and
administrative expense excluding stock-based compensation, and
exploration and evaluation expense. All-in sustaining costs
do not include capital expenditures attributable to projects or
mine expansions, exploration and evaluation costs attributable to
growth projects, income tax payments, financing costs and dividend
payments. Consequently, this measure is not representative of
all of the Company's cash expenditures. In addition, the
calculation of all-in sustaining costs does not include depletion,
depreciation and amortization expense as it does not reflect the
impact of expenditures incurred in prior periods.
All-in sustaining co-product costs reflect
allocations of the aforementioned cost components on the basis that
is consistent with the nature of each of the cost component to the
gold, silver or copper production activities. Similarly,
all-in sustaining by-product costs reflect allocations of the
aforementioned cost components on the basis that is consistent with
the nature of each of the cost component to the gold and silver
production activities but net of by-product revenue credits from
sales of copper and zinc.
A reconciliation of total cost of sales of gold,
silver and copper sold (cost of sales excluding depreciation,
depletion and amortization, plus depreciation, depletion and
amortization) per the Consolidated Financial Statements to
co-product cash costs of gold produced, co-product cash costs of
silver produced, co-product cash costs of copper produced,
co-product AISC of gold produced, co-product AISC of silver
produced, co-product AISC of copper produced, by-product cash costs
of gold produced, by-product cash costs of silver produced,
by-product AISC of gold produced and by-product AISC of silver
produced is provided in Section 14: of the MD&A for the
three and twelve months ended December 31, 2017 and comparable
period of 2016 which has been filed on SEDAR.:
NET DEBT
The Company uses the financial measure "Net
Debt", which is a non-GAAP financial measure, to supplement
information in its Consolidated Financial Statements. The
Company believes that in addition to conventional measures prepared
in accordance with IFRS, the Company and certain investors and
analysts use this information to evaluate the Company’s
performance. The non-GAAP financial measure of net debt does
not have any standardized meaning prescribed under IFRS, and
therefore it may not be comparable to similar measures employed by
other companies. The data is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS.
Net Debt is calculated as the sum of the current
and non-current portions of long-term debt net of the cash and cash
equivalent balance as at the balance sheet date. A
reconciliation of Net Debt is provided in Section 14: of the
MD&A for the three and twelve months ended December 31, 2017
and comparable period of 2016 which has been filed on SEDAR.:
NET FREE CASH FLOWThe Company
uses the financial measure "Net Free Cash Flow", which is a
non-GAAP financial measure, to supplement information in its
Consolidated Financial Statements. Net Free Cash Flow does not have
any standardized meaning prescribed under IFRS, and therefore it
may not be comparable to similar measures employed by other
companies. The Company believes that in addition to
conventional measures prepared in accordance with IFRS, the Company
and certain investors and analysts use this information to evaluate
the Company’s performance with respect to its operating cash flow
capacity to meet non-discretionary outflows of cash. The
presentation of Net Free Cash Flow is not meant to be a substitute
for the cash flow information presented in accordance with IFRS,
but rather should be evaluated in conjunction with such IFRS
measures. Net Free Cash Flow is calculated as cash flows from
operating activities of continuing operations adjusted for advance
payments received pursuant to metal purchase agreements,
non-discretionary expenditures from sustaining capital expenditures
and interest and financing expenses paid related to the current
period. A reconciliation of Net Free Cash Flow is provided in
Section 14: of the MD&A for the three and twelve months
ended December 31, 2017 and comparable period of 2016 which has
been filed on SEDAR.:
AVERAGE REALIZED METAL
PRICES
The Company uses the financial measures "average
realized gold price", "average realized silver price" and "average
realized copper price", which are non-GAAP financial measures, to
supplement in its Consolidated Financial Statements. Average
realized price does not have any standardized meaning prescribed
under IFRS, and therefore they may not be comparable to similar
measures employed by other companies. The Company believes
that in addition to conventional measures prepared in accordance
with IFRS, the Company and certain investors and analysts use this
information to evaluate the Company’s performance vis-à-vis average
market prices of metals for the period. The presentation of
average realized metal prices is not meant to be a substitute for
the revenue information presented in accordance with IFRS, but
rather should be evaluated in conjunction with such IFRS
measure.
Average realized metal price represents the sale
price of the underlying metal before deducting sales taxes,
treatment and refining charges, and other quotational and pricing
adjustments. Average realized prices are calculated as the
revenue related to each of the metals sold, i.e. gold, silver and
copper, divided by the quantity of the respective units of metals
sold, i.e. gold ounce, silver ounce and copper pound.
Reconciliations of average realized metal prices to revenue
provided in Section 14: of the MD&A for the three and
twelve months ended December 31, 2017 and comparable period of 2016
which has been filed on SEDAR.:
ADDITIONAL LINE ITEMS OR SUBTOTALS IN
FINANCIAL STATEMENTS
The Company uses the following additional line
items and subtotals in the Consolidated Financial Statements as
contemplated in IAS 1: Presentation of Financial Statements:
- Gross margin excluding depletion, depreciation and
amortization — represents the amount of revenue in excess
of cost of sales excluding depletion, depreciation and
amortization. This additional measure represents the cash
contribution from the sales of metals before all other operating
expenses and DDA, in the reporting period.
- Mine operating earnings — represents the
amount of revenue in excess of cost of sales excluding depletion,
depreciation and amortization and depletion, depreciation and
amortization.
- Operating earnings — represents the amount of
earnings before net finance income/expense and income tax
recovery/expense. This measure represents the amount of
financial contribution, net of all expenses directly attributable
to mining operations and overheads. Finance income, finance
expense and foreign exchange gains/losses are not classified as
expenses directly attributable to mining operations.
- Cash flows from operating activities before income
taxes paid and net change in working capital — excludes
the payments made during the period related to income taxes and tax
related payments and the movement from period-to-period in working
capital items including trade and other receivables, other assets,
inventories, trade and other payables. Working capital and
income taxes can be volatile due to numerous factors, such as the
timing of payment and receipt. As the Company uses the
indirect method prescribed by IFRS in preparing its statement of
cash flows, this additional measure represents the cash flows
generated by the mining business to complement the GAAP measure of
cash flows from operating activities, which is adjusted for income
taxes paid and tax related payments and the working capital change
during the reporting period.
- Cash flows from operating activities before net change
in working capital — excludes the movement from
period-to-period in working capital items including trade and other
receivables, other assets, inventories, trade and other
payables. Working capital can be volatile due to numerous
factors, such as the timing of payment and receipt. As the
Company uses the indirect method prescribed by IFRS in preparing
its statement of cash flows, this additional measure represents the
cash flows generated by the mining business to complement the GAAP
measure of cash flows from operating activities, which is adjusted
for the working capital change during the reporting period.
The Company’s management believes that their
presentation provides useful information to investors because gross
margin excluding depletion, depreciation and amortization excludes
the non-cash operating cost item (i.e. depreciation, depletion and
amortization), cash flows from operating activities before net
change in working capital excludes the movement in working capital
items, mine operating earnings excludes expenses not directly
associate with commercial production and operating earnings
excludes finance and tax related expenses and
income/recoveries. These, in management’s view, provide
useful information of the Company’s cash flows from operating
activities and are considered to be meaningful in evaluating the
Company’s past financial performance or the future prospects.
Yamana Gold (NYSE:AUY)
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Yamana Gold (NYSE:AUY)
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