TORONTO (miningweekly.com) – Canada's Yamana Gold on Tuesday reported a net income of $60,8-million for the third quarter, down from $150,2-million a year earlier, when the company recorded a large unrealised gain on commodity derivatives.

However, stripping out some one-off items, Yamana posted adjusted earnings of $88,3-million, well up from $31,5-million in the year-ago period.

The company produced 314 707 gold-equivalent (includes silver) ounces during the quarter – 34% higher than in the third quarter of 2008 - at an average cash cost of $349/oz, excluding by-product credits.

Revenue increased 50% year-on-year, to $333,2-million, boosted by higher production volumes and strong bullion prices.

Yamana, which bought rival Meridian Gold and the smaller Northern Orion Resources in October 2007, agreed in June this year to sell three noncore operating mines - San Andres, in Honduras, and the São Francisco and São Vicente mines in Brazil, to Canadian junior Aura Minerals.

The company has producing mines in Brazil, Chile and Argentina and is studying or starting up new operations in all three countries, as well as Mexico.

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