Americas-focused precious metals miner Yamana Gold has posted a strong production and financial performance in the third quarter.
The TSX-, NYSE- and LSE-listed miner achieved above plan gold and silver production. Gold production reached 201 772 oz, underpinned by "standout" production from the Jacobina, Canadian Malartic, El Peñón and Minera Florida operations.
Silver production of 3.04-million ounces was underpinned by "an exceptionally strong performance" from El Peñón, which greatly exceeded plan with mine sequencing favouring mining of higher silver grade zones.
The strong gold and silver production contributed to the production of 240 466 gold-equivalent ounces (GEOs).
All-in sustaining costs of $1 096/GEO were in line with yearly guidance, while total cost of sales of $1 186/GEO and cash costs of $723/GEO, were also in line with guidance.
Yamana reported net earnings of $92.2-million, or $0.10 a share, compared with the adjusted net earnings of $49.5-million, or $0.05 a share, reported for the third quarter of 2019.
Net earnings were $55.6-million, or $0.06 a share, compared with net earnings of $201.3-million, or $0.21 a share, in the prior comparable period.
Yamana notes that strong cash flows from operating activities of $215-million and cash flow from operating activities before net change in working capital of $199-million reflect the impact of strong production, strong precious metals prices and the positive impact of foreign exchange on the costs of the company.
"Cash flows from operating activities are at multiyear highs, which includes periods with considerably more production from mines that have since been divested or discontinued.
"Continuing with a recent trend, cash flow from operating activities and net free cash flow for the quarter exceeded the averages of such cash flows for the preceding three quarters by 52% and 103%, respectively, thereby further demonstrating the strength and resilience of the cash flow generation capacity of the company," it reports.
Net free cash flow of $185.5-million and free cash flow before dividends and debt repayments of $156.8-million, represent increases of 107% and 316% year-on-year.
Net debt decreased by $148.9-million to $619.1-million.
Yamana has declared a fourth-quarter dividend of $0.026 a share (annual $0.105 a share). This reflects a 50% increase in the company's annual dividend.