Canadian miner Yamana has exceeded its fourth-quarter and full-year production guidance and is forecasting further near-term production growth.

The company produced 281 388 gold-equivalent ounces (GEOs) in the fourth quarter, significantly exceeding the previously provided quarterly guidance of 270 000 GEOs, with exceptional gold production contributing to the strong performance. Full-year output of 1.01-million GEOs also exceeded the guidance of one-million GEOs.

Combined with low fourth-quarter costs, including all-in sustaining costs of $962/oz, Yamana reported record quarterly cash flow of $238.2-million, compared with $181.5-million a year earlier. For the full year, cash flow increased from $617.8-million to $742.3-million.

Quarterly revenue of $503.8-million was booked and full-year revenue rose to $1.8-billion. Net earnings increased from $103-million to $109-million in the fourth quarter, but reduced from $203-million to $147.5-million in the full year. Adjusted net earnings for the respective periods were $101.4-million and $309-million.

The gold miner expects 2022’s production to be no less than one-million GEOs at an AISC of $1 080/GEO, but has increased its guidance for 2023 to 1.03-million GEOs, increasing to 1.06-million GEOs in 2024.

Over the three-year guidance period, a 6% increase in GEO production should have a positive impact on consolidated csots. In particular, the lowest-cost operation, Jacobina in Brazil, would be a significant contributor to the increase in production over the guidance period, driving down the average cost of production, improving margins and cash flow.

Yamana stated that it would update its ten-year outlook, first introduced in January 2021, next year. However, the company reaffirmed that output would be at least 1.05-million from 2025, with further growth potential to 1.2-million GEOs by 2028 being a “conservative target”. Production could increase to as high as 1.5-million GEOs within the ten-year framework by tapping opportunities in the company’s existing portfolio.