Yamana Gold production guidance up by 3%
Yamana Gold Inc announces strong preliminary third quarter results, with gold production of 201,772 ounces and silver production of 3.04 million ounces. Total gold equivalent production was 240,466 ounces. Jacobina, El Peñón, Minera Florida, and Canadian Malartic all enjoyed standout quarters.
With
overall production, and production at most of the Company’s mines, currently
tracking ahead of plan, and in some cases well ahead of plan, the Company
increases its 2020 production guidance from the previous guidance of 890,000
GEO to 915,000 GEO, representing an increase of 3%.
Gold production and silver production guidance have increased from previous guidance by approximately 1% and 6%, respectively. More specific mine-by-mine and metal-by-metal information will be provided with the Company’s financial results at the end of the month.
The Company continued to generate strong cash flows in the quarter which strengthened its cash balances and balance sheet. Cash balances at quarter end increased by a further $145 million from $325 million at the end of the second quarter to approximately $470 million.
The strong results position the Company well for an even stronger fourth quarter and continued production growth over the next several years. Furthermore, the Company has low capital commitments over the near-to-medium term, which together with Yamana’s rising production profile, cash flows, and cash balances, provide significant financial flexibility to pursue all of its capital allocation objectives, including further dividend increases.
As a result, the Company is announces that it is raising its annual dividend by a further 50% to $0.105 per share, effective for the fourth quarter of 2020. At the new rate, the dividend will be 425% higher than the dividend level just 18 months ago. Furthermore, as the Company has established a policy of representing the dividend on a per GEO basis, with the objective of maintaining the dividend at between $50 to $100 per GEO this increase positions the dividend at the high end of the range at $100 per ounce.
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