TORONTO (miningweekly.com) – Midtier gold producer Yamana Gold has reported record production of 1.2-million gold-equivalent ounces (GEO) for 2012, an increase of 9% year-on-year as a number of operations performed better than expected.

The LSE-, NYSE- and TSX-listed company added that preliminary production results for the fourth quarter also pointed to record gold-equivalent production at 322 800 oz.

After by-product credits, the company produced gold-equivalent at a cash cost of about $245/oz.

“In 2012, we … further enhanced our growth profile with the addition of Cerro Moro to our project portfolio and increased the value returned to shareholders as dividends. We expect production growth throughout 2013 and 2014 with a goal to reach approximately 1.75-million GEO of sustainable production. Cerro Morro should, in time, add to that production level," chairperson and CEO Peter Marrone said in a statement.

Production this year is expected to be in the range of 1.44-million to 1.6-million GEO, an increase of at least 20% over 2012 production; however, it this lower than the company's previous expectations of between 1.48-million and 1.66-million GEO.

Yamana said the expected production increases would be owing to, in part, a full year of production at Mercedes, in Mexico, the ramp-up of the expansion project at Minera Florida, in Chile, the ramp-up of production at the Ernesto/Pau-a-Pique and C1 Santa Luz projects, in Brazil, and the start-up of production at Pilar, also in Brazil.

Production in 2014 is expected to increase by at least 33% from 2012 levels to a level in the range of 1.60-million to 1.77-million GEO. This increase is expected to come from a full year of production from the C1 Santa Luz, Ernesto/Pau-a-Pique and Pilar projects, the expansions at Gualcamayo and expansions at Suruca oxide and Corpo Sul at Chapada, in Brazil.

The company said capital expenditure for 2013 is expected to be $470-million.

Yamana’s TSX-listed stock traded up 4.41% at C$17.04 apiece on Thursday morning.