YAMANA GOLD INC. (TSX: YRI; NYSE: AUY) (“Yamana” or the “Company”)
herein provides an update on its operations in Argentina and other
host counties, COVID-19 business preparedness activities, and on
the planned manner of convening the upcoming shareholder meeting
compliant with the Company’s social distancing policy designed to
combat the spread of COVID-19.
Update on Argentina
Following the mandatory social isolation declaration issued by
the government of Argentina in the late evening of March 19, and
after consultation with employees, various governmental agencies
and other stakeholders, the Company will be implementing a
temporary, partial demobilization of its workforce at its Cerro
Moro mine in Santa Cruz Province.
The mandatory social isolation declaration, among other matters,
significantly and immediately restricts travel, and imposes a
mandatory self-isolation of all persons in an effort to combat the
spread of COVID-19.
Between today and March 31, the day the mandatory self-isolation
period is scheduled to end, the Company will demobilize local
employees and contractors at Cerro Moro and continue to work with a
limited workforce comprised of employees and contractors primarily
from out of province. Underground operations will be reduced and
Cerro Moro will operate during this period largely from its open
pit operations and from stockpiled material. The Company plans to
maintain operations at the plant during this period consistent with
the Company's normal and national safety and health protocols.
Employees and contractors who come from Santa Cruz Province will
be demobilized and safely sent home in compliance with the
mandatory social isolation declaration. Other employees and
contractors will remain safely housed and provided for in the
Company’s permanent camp at site. Cerro Moro operates with a
large portion of employees and contractors who do not come from
Santa Cruz and who cannot immediately and safely be sent home.
Safety and environmental monitoring activities will also
continue at the mine over the self-isolation period. A return to
full capacity is expected to occur in an expedited manner once the
self-isolation period has concluded.
The Company is working with local communities and stakeholders
to manage its efforts with the health and safety of its employees
and contractors in mind and, as such, a more fulsome demobilization
and suspension of operations will be considered should that be
required.
These actions are not expected to have a meaningful impact on
the Company’s production and cash flows as Cerro Moro has performed
well so far in the quarter. Further, the first quarter had been
budgeted to be Cerro Moro’s lowest quarter in terms of production
and cash flows, and most of the Company’s other mines are
contributing significantly more cash flow, and with production
levels ahead of budget at most mines.
The Company’s efforts at its Agua Rica project in Catamarca will
similarly be gradually reduced on a temporary basis. Efforts at
Agua Rica are mostly corporate related as the Company advances the
feasibility study for the project and the effects of the mandatory
self-isolation declaration are not meaningful.
The decisions at Cerro Moro and Agua Rica are in accordance with
the new measures enacted by the government of Argentina along with
other important measures that Yamana considers necessary to prevent
the spread of COVID-19 and to protect its workforce while also
maintaining its operation effectively and safely, in full
compliance with environmental requirements. Yamana continues to
closely monitor developments around the outbreak of the COVID-19
virus and the Company is taking every precaution to ensure the
safety of its people and communities, and continuity of its
business.
Closely Monitoring Activities in Other Host
Countries
The Company is closely monitoring activities in all of the
countries in which it operates. In Chile, where the Company
operates the El Peñón and Minera Florida mines, no government
measures have been taken at this point that require a suspension or
demobilization of workforce or operations. Similarly, no government
measures have been taken in Bahia State in Brazil, where the
Company operates the Jacobina mine, or in the Canadian province of
Quebec, where the Canadian Malartic mine is operated under a joint
venture, that require a suspension or demobilization of workforce
or operations. The Company communicates regularly with
employees, contractors and local communities at these mines on
topics relating to COVID-19 and how best to protect against
infection.
Crisis Response Committee Formed in Early Phases of
COVID-19 Outbreak
Currently, none of the Company’s employees have been diagnosed
with the virus, and its mines are operating normally.
However, the Company formed a crisis response committee in the
early phases of the COVID-19 outbreak consisting of its senior
business and operational leaders to ensure it is in position to
take quick and decisive action in what remains a fluid and
fast-moving environment. Some of the decisions and actions
undertaken include: temporarily restricting all employee travel;
temporarily shifting to remote work arrangements at our corporate
and regional offices; increasing screening procedures at our mines,
including implementing rigid requirements around social distancing,
restricting visitors, temperature checks of all employees entering
our mines, and staggered meal times; increased cleaning and
disinfecting at all of our sites; and increasing staffing and
support at our existing on-site medical clinics as a precautionary
measure. Yamana is in active discussions with its workforce and
union representatives to ensure the Company has proper protocols in
place to ensure the safety of its employees and contractors.
Business Continuity and Interruption
Planning
In addition to Yamana’s normal contingency and redundancy
business planning, the Company began reviewing its entire supply
chain as part of its crisis committee activities to ensure
continuity of our supply chain, taking steps to ensure it has
sufficient supply of materials, in some cases setting up
alternative supply of key materials from in-country suppliers. The
Company has also reviewed and updated its business continuity
planning to minimize disruptions, in certain cases stockpiling
additional ore to ensure continuity of operations in the event of
an interruption. The crisis response committee is in constant
communication and consulting regularly with medical experts, our
employees, governmental representatives, and other stakeholders to
ensure we have the right plans and protocols in place.
Virtual Annual General Meeting
As part of its precautionary measures, the Company will be
changing the format of its 2020 Annual General Meeting (AGM) to a
virtual format. The AGM will still be held on April 30, 2020, at
11:00am EDT although without physical attendance of shareholders.
Further details on how to join the virtual AGM will be
communicated in the coming weeks.
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
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, the impact of
the coronavirus. 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 unforeseen impacts on cash flow, monetization
initiatives, and available residual cash, an inability to maintain
a cash reserve fund balance that can support current or future
dividend increases, the outcome of various planned technical
studies, production and exploration, development, optimizations and
expansion plans 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 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
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,
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 or jointly owned
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
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.
Yamana Gold (TSX:YRI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Yamana Gold (TSX:YRI)
Historical Stock Chart
From Apr 2023 to Apr 2024