TORONTO, Feb. 14, 2019 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or “the Company”) is herein reporting its financial and operational results for the fourth quarter and full year 2018, and its Mineral Reserve and Mineral Resource estimates as at December 31, 2018.

FOURTH QUARTER HIGHLIGHTS

Gold equivalent ounce (“GEO”)(1) production from Yamana Mines(2) for the fourth quarter was 310,369, including 270,193 ounces of gold and 3.26 million ounces of silver. Total Yamana gold production(3) was 292,484 ounces. The Company also produced 39.0 million pounds of copper.

Full year GEO production from Yamana Mines was 1,041,350, including 940,619 ounces of gold and 8.02 million ounces of silver. Full year copper production was 129.2 million pounds.

Full year gold and copper production from Yamana Mines exceeded the higher guidance levels set in October of last year while full year silver production exceeded the lower guidance provided at that time. Original guidance set in February 2018 was for 900,000 ounces of gold, 120 million pounds of copper and 8.15 million ounces of silver.

Fourth quarter costs for Yamana Mines included all-in sustaining costs (“AISC”) on a by-product basis(4) of $656 per GEO; cash costs on a by-product basis(4) of $418 per GEO; and total cost of sales of $1,019 per GEO. Full year costs for Yamana Mines included AISC on a by-product basis(4) of $699 per GEO; cash costs on a by-product basis(4) of $448 per GEO; and total cost of sales of $1,028 per GEO, which was in line with or better than guided ranges for the cost metrics. Refer to page 18 of this press release for additional information on costs by metal on a co-product and by-product basis. Going forward, reported cost metrics and cost guidance will reflect a change to the presentation methodology. Specifically, the Company, as an active member of the World Gold Council, has adopted the updated version of the Guidance Note on AISC, among other changes, that are detailed in Section 2 of the Company’s fourth quarter 2018 Management’s Discussion & Analysis, which has been filed on SEDAR. In the Company’s 2019-2021 Outlook press release, issued on February 14, 2019, cost metrics for 2018 have been restated for the updated methodology to facilitate direct comparisons.

(All amounts are expressed in United States dollars unless otherwise indicated.)
1.Gold equivalent ounces include gold plus silver at a ratio of 81.3:1 for Q4 2018 and 79.6:1 for the full year 2018.
2.Yamana Mines include Chapada, El Peñón, Canadian Malartic, Minera Florida, Jacobina and Cerro Moro.
3.Total Yamana production includes production from Gualcamayo.
4.Refers to a non-GAAP financial measure or an additional line item or subtotal in financial statements. Please see the discussion included at the end of this press release under the heading “Non-GAAP Financial Measures and Additional Line Items and Subtotals in Financial Statements”. Reconciliations for all non-GAAP financial measures are available at www.yamana.com/Q42018 and in Section 11 of the Company’s fourth quarter 2018 Management’s Discussion & Analysis, which has been filed on SEDAR.

Adjusted Earnings(4) for the three months ended December 31, 2018 excluding certain items (see below), were $26.2 million or $0.03 per share. Net loss attributable to Yamana equity holders for the same period, was $61.4 million or $0.06 per share basic and diluted. This includes certain non-cash and other items that may not be reflective of current and ongoing operations, which reduced the Company’s net income by $87.6 million, or $0.09 per share basic and diluted.

Cash flows from operating activities for the fourth quarter were $114.7 million and cash flows from operating activities before net change in working capital(4) were $115.8 million. Fourth quarter cash flows were net of amortization of deferred revenue, $33.3 million of which related to deferred revenue recognized attributable to deliveries under the Company’s copper advanced sales program during the quarter. Deliveries under the Company's copper advanced sales program began during the third quarter 2018 and will continue until mid-2019. If not for the timing difference of cash proceeds attributable to this transaction, the Company’s cash flows from operating activities before net change in working capital would have been higher by those amounts during the quarter as follows:

(In millions of US Dollars, unless otherwise noted) For the three months ended
Illustration of impact due to copper advanced sales program March 31, 2018 June 30, 2018 September 30,
2018 December 31, 2018 March 31, 2019(6) June 30, 2019(6) Cumulative impact
Copper pounds to be delivered per contract (millions) 13.2 10.7 8.2 8.2 40.3
Cash flows from operating activities before net change in working capital (5) $ 206.4 $ 157.5 $ 86.6 $ 115.8 n/a n/a
Impact due to copper advanced sales program (125.0 ) — 41.7 33.3 25.1 24.9 —
Cash flows from operating activities before net change in working capital, normalized for the copper advanced sales program (5) $ 81.4 $ 157.5 $ 128.3 $ 149.1 n/a n/a

5.Refers to a non-GAAP financial measure or an additional line item or subtotal in financial statements. Please see the discussion included at the end of this press release under the heading “Non-GAAP Financial Measures and Additional Line Items and Subtotals in Financial Statements”. Reconciliations for all non-GAAP financial measures are available at www.yamana.com/Q42018 and in Section 11 of the Company’s fourth quarter 2018 Management’s Discussion & Analysis, which has been filed on SEDAR. Adjusted operating cash flows are adjusted for payments not reflective of current period operations and advance payments received pursuant to metal purchase agreements.
6.For illustration purposes only; the Company intends to provide information each subsequent period reflecting the impact due to the copper advanced sales program over its term.

A non-cash impairment reversal of $150.0 million in respect of Jacobina was recognized following the significant increase in mineral reserves and mineral resources, which extends the life of the mine, and other operational improvements. The reversal was offset by non-cash accounting impairments of $151.0 million in respect of Minera Florida and $45.0 million in respect of goodwill on the acquisition of Canadian Malartic. No indicators of impairment or reversal were identified for the other operating mine sites. In addition, the current quarter includes an income tax expense of $33.3 million incurred and payable at the end of the year, following an administrative interpretation of relevant tax legislation and approach by Brazilian tax authorities under that tax legislation in December. The expense was unexpected, not consistent with the Company's interpretations of the tax legislation and inconsistent with past practice. The Company has made the payment so as to avoid penalties and interest but in respect of which, the Company is pursuing legal recourse and remedies. Adjustments to net earnings during the periods noted below are as follows:

Summary of Certain Non-Cash and Other Items Included in Net Loss
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Yamana Gold Provides 2019-2021 Outlook



02/14/2019

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TORONTO, Feb. 14, 2019 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or the “Company”) herein provides 2019, 2020 and 2021 production, and 2019 cost guidance.

2019-2021 PRODUCTION AND COST OUTLOOK

The following table presents the Company's total gold equivalent ounce ("GEO") production expectations for Yamana Mines in 2019, 2020 and 2021.

2018 Actual 2019 Guidance 2020 Guidance 2021 Guidance
Total Gold Equivalent Production (oz.)(1,2) 1,041,300 1,060,000 1,100,000 1,100,000
1.GEO includes gold plus silver with silver converted to a gold equivalent at a ratio of 79.6:1 for 2018 and a forecast ratio of 82.5:1 for 2019, 2020 and 2021.
2.Excluding copper and any attribution from Yamana’s interest in Leagold Mining Corporation and Gualcamayo (sold in 2018).

The Company’s GEO production guidance includes contribution from gold and silver with silver converted to gold-equivalent production at a ratio of 82.5:1 across the guidance period. In addition, for each of 2019, 2020, and 2021 the Company is guiding for 120 million pounds of copper production.
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Yamana Gold Declares First Quarter Dividend
TORONTO, Feb. 14, 2019 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or the “Company”) declares a first quarter 2019 dividend of $0.005 per share. Shareholders of record at the close of business on March 29, 2019 will be entitled to receive payment of this dividend on April 12, 2019. The dividend is an “eligible dividend” for Canadian tax purposes.