PRECIOUS METALS

Yamana shares gain on 2019 performance

Canadian gold major's Jacobina and El Peñón mines deliver exceptional production results

Staff Reporter
Yamana Gold says the Jacobina mine is performing better than expected

Yamana Gold says the Jacobina mine is performing better than expected

The Toronto-headquartered company reported 2019 gold output of 900,339oz, with a strong December quarter profile of 221,595oz lifting total production above the top-end of its annual guidance of 899,000oz.

The Americas-focused company's strong December-quarter silver output of 2.97Moz was also enough to take the full-year total above guidance of 10Moz to 10.64Moz, the company said.

As a result, the full-year gold-equivalent (Au-eq) output of 1.024Moz also exceeded the annual guidance of 1,01Moz.

Yamana said the Jacobina mine in Brazil posted record quarterly production of 41,774oz gold and all-time-high full-year output at 159,499oz. This was more than the company's revised guidance of 152,000oz announced in June.

The El Peñón mine in Chile also posted its highest quarterly and yearly production since "rightsizing" the operation in late 2016, Yamana said. Gold output for the quarter was 48,131oz and full-year total came in at 159,515oz, above the expected 150,000oz.

The company said it expected all-in sustaining costs to be in line with prior estimates and adjustments, including about US$30/oz of Au-eq from the removal of production from Chapada in the second half of the year.

Yamana plans to release fourth-quarter and full-year 2019 financial results after the market closes on February 13.

Improving metals prices combined with the company's solid operational performance have prompted it to hike its dividend policy last month to C5c per share annually, effective from the current quarter. The company has in recent quarters divested assets in Argentina and Brazil as it seeks to increase its appeal to investors as a cash-generating, dividend-paying precious metals producer.

The company's equity (TSX:YRI) has rebounded in the past 12 months, gaining more than 53% to $4.99 on Wednesday, which capitalises it at $4.7 billion (US$3.6 billion).

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.