Canadian gold miner Yamana Gold produced 248 177 gold-equivalent ounces (GEOs), 1.31-million ounces of silver and 31.1-million pounds of copper in the second quarter of this year.
Higher-than-expected output at its Chapada, Canadian Malartic, Jacobina and El Peñón operations, together with the favourable ramp-up at Cerro Moro, has the company well positioned to exceed previously provided guidance of 900 000 oz for the full year.
While the production plan for Gualcamayo this year is lower than previously indicated, total Yamana gold production including Gualcamayo is expected to also exceed previously provided guidance.
On a GEO basis, higher-than-plan gold production in the first half of the year more than offset slightly lower-than-plan silver production, such that cumulative precious metals production is expected to exceed guidance.
Silver production is expected to improve in the second half of this year, with higher silver grades at El Peñón and production increases from Cerro Moro.
Copper production was higher than plan for the second consecutive quarter and full-year copper production is expected to also exceed previously provided guidance of 120-million pounds.
The continuation of a strong operational performance, which has been in place since 2016 and extended into the first half of this year, is directly related to Yamana’s improved production platform and the benefits of completed optimisation plans at various mines.
Planned further improvements at all operations are expected to continue this trend in the second half of the year, the company stated.
Second-quarter costs for Yamana Mines included all-in sustaining costs (AISC) on a by-product basis of $694 per GEO; cash costs on a by-product basis of $489 per GEO; and total cost of sales of $986 per GEO.
Co-product costs and AISC for this year are expected to be within the previously guided ranges.
Costs are benefiting from higher production, operational efficiencies and the impact of the depreciation of local currencies, which began to positively impact costs late in the second quarter. Costs on a by-product basis are also anticipated to be within the previously guided ranges.
Net earnings from operations attributable to Yamana equity holders for the reporting period were $18-million, or $0.02 apiece, basic and diluted.
Meanwhile, the merger between Leagold Mining Corporation and Brio Gold closed on May 24, resulting in Yamana holding a 20.5% interest in Leagold, which is accounted for as an investment in an associate.
During the quarter, Yamana recognised a gain of $32-million in respect of this transaction, representing the increase in the equity consideration from Leagold between March 31 and the date the transaction closed and the change in the value of Brio Gold for the current period.