YAMANA GOLD INC. (“Yamana” or the “Company”) (TSX:YRI; NYSE:AUY;
LSE:AUY) announces that it has increased its annual dividend by
nearly 15% to $0.12 per share.
Shareholders of record at the close of business
on September 30, 2021, will be eligible to receive payment of an
increased dividend of $0.03 per share on October 14, 2021. The
dividend is an “eligible dividend” for Canadian tax purposes.
This is the Company’s sixth dividend increase
since the second quarter of 2019 representing a cumulative increase
of 500%.
Yamana considers dividends an important
component of returns on investment for shareholders, and has
previously indicated that its policy is that as its cash flows and
cash balances increase, as its balance sheet continues to
improve, and as debt service decreases, the Company would evaluate
further increases of its dividend. The most recent dividend
increase reflects improved cash flows and increased cash balances,
along with other realized and anticipated balance sheet and
financial improvements. While the Company has relied over the last
several years on maintaining certain levels of cash on hand to
secure payment of the dividend independently of changes in
gold prices, with improvements in cash flows and certainty of
modest, manageable annual capital expenses for its growth projects,
with the completion of various definitive studies relating to those
growth projects, the Company has concluded that it is able to fund
its dividend at current or substantially lower gold prices. The
Company conducts sensitivities on its capital allocations,
including ability to fund and pay dividends, at various gold prices
as low as $1,350 per ounce.
Since late 2006, when the Company first began
paying dividends, it has paid more than $1 billion in dividends,
which compares very favourably to senior level peers.
Normal Course Issuer Bid
Concurrently, the Company also today announced
that it will make a normal-course issuer bid (“NCIB”) to purchase
up to 48,321,676 common shares of the Company representing up to 5%
of the Company’s current issued and outstanding common shares, in
open market transactions through the facilities of the Toronto
Stock Exchange (“TSX”), the New York Stock Exchange (the “NYSE”)
and alternative Canadian trading systems, subject to TSX approval.
The Company will be permitted to make purchases under the NCIB over
a period of twelve months commencing on August 4, 2021, and
expiring no later than August 3, 2022.
In accordance with TSX rules, any daily
purchases on the TSX under the NCIB are limited to a maximum of
654,276 common shares, which represents 25% of the average daily
trading volume of the common shares on the TSX for the six months
ended June 30, 2021, and, in addition, Yamana will not acquire per
day on the NYSE more than 25% of the average daily trading volume
for the four calendar weeks preceding the date of purchase,
subject, in both cases, to certain exceptions for block
purchases.
From time to time, when Yamana does not possess
material non-public information about itself or its securities, it
may enter into a pre-defined, automatic share purchase plan with
its broker to allow for the repurchase of shares at times when the
Company ordinarily would not be active in the market due to its own
internal trading blackout periods, insider trading rules or
otherwise. Any such plan entered into with Yamana’s broker will be
adopted in accordance with applicable Canadian securities laws and
the requirements of Rule 10b5-1 under the U.S. Securities Exchange
Act of 1934, as amended. Outside of these periods, common shares
will be repurchased in accordance with management’s discretion,
subject to applicable law.
The actual number of common shares that may be
purchased and the timing of such purchases will be determined by
the Company. Decisions regarding purchases will be based on market
conditions, share price, best use of available cash, and other
factors. Any common shares that are purchased under the NCIB will
be cancelled.
A copy of the Company’s Notice filed with the
TSX may be obtained by any shareholder without charge by contacting
the Company’s Senior Vice President, General Counsel and Corporate
Secretary.
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
FTI Consulting (UK Public
Relations)Sara Powell / Ben Brewerton+44 7931 765 223 /
+44 203 727 1000
Peel Hunt LLP (Joint UK Corporate
Broker)Ross Allister / David McKeown / Alexander
AllenTelephone: +44 (0) 20 7418 8900
Berenberg (Joint UK Corporate
Broker)Matthew Armitt / Jennifer Wyllie / Detlir Elezi
Telephone: +44 (0) 20 3207 7800
Credit Suisse (Joint UK Corporate
Broker)Ben Lawrence / David Nangle Telephone: +44 (0) 20
7888 8888
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This news release contains or incorporates by reference
“forward-looking statements” and “forward-looking information”
under applicable Canadian securities legislation within the meaning
of the United States Private Securities Litigation Reform Act of
1995. Forward-looking information includes, but is not limited to
information with respect to the Company's intentions to make an
NCIB to purchase its common shares and possibly entering into an
automatic share purchase plan in the future. 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 a change in plans in
connection with the Company possibly entering into an automatic
share purchase plan in connection with the NCIB at some point in
the future; the number of common shares ultimately repurchased
under the NCIB; 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, including market conditions, share
price and best use of available cash, 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
current intentions in connection with the NCIB and may not be
appropriate for other purposes.
(All amounts are expressed in United States Dollars unless
otherwise indicated.)
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