YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or “the Company”)
herein announces that pursuant to the order by the Government of
Quebec in relation to COVID-19 to temporarily restrict all
non-essential business until April 13, 2020, it has made the
decision to ramp down operations at its Canadian Malartic mine. The
decision follows discussions held today with representatives of the
Government of Quebec to obtain additional clarity in regard to the
order. The operation will be on care and maintenance and minimal
work will be taking place until the date specified in the
order.
Canadian Malartic, a 50-50 joint venture with
Agnico Eagle Mines Ltd., is demobilizing employees
and contractors in a safe and orderly manner leaving
a small number of employees on site to maintain property
and equipment and oversee all environmental responsibilities
and obligations. The operation remains in close communication
with the workforce and local communities, and it is taking all
necessary steps to ensure that all safety and
environmental protocols and procedures will be followed during
the care and maintenance period. The Company is supportive of
the province’s action and hopes to work with the province in
managing this process effectively.
A return to full capacity at Canadian Malartic
is expected to occur in an expedited manner as soon as
the temporary restriction is lifted.
Canadian Malartic is the largest gold mine
in Canada and a significant economic engine in northern
Quebec. The mine is a conduit of large employment and
infrastructure that can help the province in managing
this very challenging situation. The operation maintains
rigorous health and safety protocols to protect the
workforce and local communities from the impact of
COVID-19. These health and safety protocols are similar
to those established with local communities at the Company’s
South American mines.
Yamana has implemented heightened
levels of health screening, along with support services at
all of its mines. These actions
include temporarily restricting all employee travel,
temporarily shifting to remote work arrangements at our corporate
and regional offices, enhanced sanitization and
disinfecting at our mines and offices,
and implementing rigid requirements around social
distancing.
The Company is in regular contact with medical
experts and government authorities in every country
where it operates. If at any point the Company
determines that continuing operations poses an increased risk to
our workforce or local communities, the Company will reduce
operational activities up to and including care and maintenance and
management of critical environmental systems. There are
currently no suspected or confirmed cases of COVID-19 at
Canadian Malartic or any Yamana operation. The
Company continues to take every precaution to ensure the
safety of its employees, families, and
communities, and it is working closely
with its host communities to support their
needs through this difficult period.
As previously announced, the Government of
Argentina imposed a temporary
mandatory self-isolation period and travel
restriction until March 30, 2020. The Company has
temporarily demobilized operations at the Cerro Moro
mine during this period. Underground operations have been
reduced and Cerro Moro is provisionally operating largely from its
open pit operations and stockpiled material.
Guidance Update and
Liquidity
With reduced production coming from suspended or
reduced operations, along with other present day
uncertainties, the Company is withdrawing its 2020
guidance for production and costs. The Company will update
guidance once it has a better understanding of the actual duration
and impact of these uncertainties. The Company expects that any
suspended operation is well positioned to safely and efficiently
ramp-up in a timely manner once temporary suspensions cease. The
Company’s long-term value proposition remains unchanged, despite
these shorter-term disruptions.
The Company's other mines, representing
approximately 67 percent of the Company’s production outlook for
2020, continue operating in line with production targets for the
year.
The Company expects to meet its production
targets for the first quarter, which is typically its lowest
production quarter. The Company expects to produce
approximately 190,000 gold ounces and approximately
2.7 million silver ounces in the first
quarter, representing approximately 220,000 gold equivalent
ounces (based on a gold equivalent ratio which is above the ratio
assumed for guidance), which are above the Company’s production
targets. As previously guided, production is expected to be
weighted to the second half of 2020 although previous
guidance indicating a weighting of 54 percent in the
second half will now likely be higher.
As a precaution and given the current
uncertainty around the global pandemic, the Company drew down
$200 million of its $750 million revolving credit facility in March
2020. The Company currently has no plans to utilize these funds.
The Company has sufficient cash on hand, available credit and
liquidity to fully manage its business. At the present time,
the Company has no pending scheduled debt repayment or significant
capital commitments.
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 including
guidance and liquidity and 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 guidance, liquidity, 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.
All amounts are expressed in United States
Dollars unless otherwise indicated
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