TORONTO, Feb. 17, 2022 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or the “Company”) herein provides 2022, 2023 and 2024 production guidance, 2022 cost guidance and an update to its ten-year outlook.

HIGHLIGHTS

The Company is maintaining its 2022 production guidance and expects production not to be less than 1,000,000 gold equivalent ounces ("GEO")(2). For 2023, the Company is increasing its production guidance from 1,000,000 GEO(2) to 1,030,000 GEO(2). The Company sees further near-term growth continuing in 2024 with production increasing to 1,060,000 GEO(2).

For 2022, the Company expects total cost of sales, cash costs(1) and AISC(1) not to exceed $1,215, $725 and $1,080 per GEO(2) respectively. Over the three-year guidance period, the Company is expecting the increase in GEO(2) production to have a positive impact on costs. In particular, the Company's lowest-cost operation, Jacobina, is a significant contributor to the increase in production over the guidance period, and consequently the Company anticipates this will drive down the average cost of production, improving overall margins and cash flow.

The Company introduced a inaugural longer-term, ten-year outlook last year to demonstrate the confidence it has in the sustainability of its production platform and in the long mine lives of its assets. Exploration successes have provided significant support for the ten-year outlook and those successes underpin that outlook this year with a greater certainty than when it was first introduced. The Company expects to provide a formal update on its longer-term ten-year outlook every other year to allow more time for exploration, mineral resource conversion and evaluation of the foregoing to longer-term production plans. The Company anticipates delivering the next update to its ten-year outlook in 2023, and expects it will increase its sustainable baseline annual production at current operations from 1,000,000 GEO(2) to at least 1,050,000 GEO(2) from 2025. Further, the growth potential of 1,200,000 GEO(2) outlined in the previously announced ten-year outlook remains a conservative target with preliminary evaluations identifying a number of opportunities which together could increase production to as high as 1,500,000 GEO(2) within the ten-year outlook horizon, and could meaningfully extend the production platform beyond the ten-year timeframe. The opportunities identified for growth to reach as high as 1,500,000 GEO(2) remain within the Company's existing portfolio of assets and are exclusive of further potential growth beyond this level from MARA, Suyai and opportunities within the generative exploration portfolio.

While the Company provides a ten-year outlook, its existing asset base has the potential to sustain production well beyond this timeframe. Canadian Malartic and Jacobina both have multi-decade mine lives, Wasamac has a strategic mine life of at least 15 years, and El Peñón and Minera Florida have a strong track record of mineral reserve replacement, and have actually grown mineral reserves in recent years. Cerro Moro also notably achieved mineral reserve replacement for the first time this year, establishing what we expect to be an ongoing trend, similar to the mineral reserves replacement cycle established at the Company’s more mature operations.

The Company remains well-positioned to fund all exploration, expansions, projects and opportunities identified in its guidance and decade-long outlook using available cash and cash flow from operations.
Three-Year Production Guidance

The following table presents the Company's total gold, silver and GEO(2) production expectation in 2022, 2023 and 2024, which demonstrates year-over-year production growth, starting at 1,000,000 GEO(2) and increasing to 1,060,000 GEO(2) by 2024. This 3% and 6% production growth exceeds the guidance provided last year and the budgets on which that guidance was based.

Due to mine development and sequencing for 2022, the Company expects a evenly weighted production weighting between the first half and the second half of the year, instead of a stronger second half weighting as was customary in prior years. However, the first quarter is expected to be the lowest production quarter of the year, as Jacobina ramps up to 8,500 tonnes per day ("tpd") and due to the temporary disruption to operations during the first three weeks of January at Minera Florida.

The following tables present actual production for 2021 and production guidance for 2022, 2023 and 2024. While the Company provides production guidance within a range of +/- 3% by mine and overall, the following presents the production levels by year in that range which management expects to meet or exceed for the particular year.

(000's ounces) 2021 Actual 2022 Guidance 2023 Guidance 2024 Guidance
Total gold production 885 870 910 930
Total silver production 9,169 9,500 8,650 9,400
Total GEO production(2) 1,011 1,000 1,030 1,060


(000's ounces)

Gold
2021 Actual 2022 Guidance 2023 Guidance 2024 Guidance
Canadian Malartic (50%) 357 320 330 340
Jacobina 186 195 230 230
Cerro Moro 80 95 95 95
El Peñón 176 170 165 165
Minera Florida 85 90 90 100
Total 885 870 910 930


(000's ounces)

Silver
2021 Actual 2022 Guidance 2023 Guidance 2024 Guidance
Cerro Moro 5,582 5,300 4,400 4,450
El Peñón 3,587 4,200 4,250 4,950
Total 9,169 9,500 8,650 9,400


(000's ounces)

GEO (2)
2021 Actual 2022 Guidance 2023 Guidance 2024 Guidance
Canadian Malartic (50%) 357 320 330 340
Jacobina 186 195 230 230
Cerro Moro 156 169 156 157
El Peñón 226 228 224 234
Minera Florida 85 90 90 100
Total 1,011 1,000 1,030 1,060
2022 Cost Guidance

The Company has assumed an expected average year-over-year consolidated cost impact in the range of 3% at its wholly owned operations, including the impact of inflation. At Canadian Malartic, costs are expected to increase over 2021 as reflected in the previously disclosed longer term mine plan, mostly due to lower production and increased strip ratio.

Cost pressures from inflation are expected to be moderate as the transitory impacts of commodity-linked consumables and COVID-related supply chain disruptions ease. At the Company’s operations, the impact of inflation on costs is expected to be partially offset by the related devaluation of local currencies, in which the majority of expenses are incurred. Furthermore, the Company has experienced a more modest exposure to inflation given the lower relative exposure to consumables at its portfolio of primarily lower tonnage underground operations and access to lower cost renewable energy versus carbon-based sources of power. At this time, the Company is not experiencing any significant inflationary pressure on capital costs, and the Company believes that its assumptions relating to forecast capital costs remain valid.

Over the three-year guidance period, the Company is expecting a 6% increase in GEO production that is anticipated to have a positive impact on consolidated costs. In particular, the Company's lowest-cost operation, Jacobina, is a significant contributor to the increase in production over the guidance period, and consequently the Company anticipates this will drive down the average cost of production, improving overall margins and cash flow.

The Company anticipates that it will continue to incur some costs in relation to COVID-19 in the near future. Total costs are expected to be approximately $10.0 million for 2022, or approximately $10 per GEO(2) sold on a consolidated basis. The bulk of the COVID-19 costs are expected at Cerro Moro and El Peñón, in relation to additional transportation, testing and sanitation requirements, at approximately $4.0 million and $3.0 million, respectively. COVID-19 costs are not included in the below disclosure as they are currently excluded from total cost of sales per GEO sold(2), cash costs(1) per GEO sold(2) and AISC(1) per GEO sold(2).

The following table presents actual costs for 2021 and cost guidance for 2022. While the Company provides cost guidance within a range of +/- 1.5% overall, with some mines having slightly wider and narrower ranges, the following presents the cost levels in those ranges which management expects to meet or be below for 2022.

Total cost of sales
per GEO sold (2) Cash costs (1)
per GEO sold (2) AISC (1)
per GEO sold (2)
2021
Actual 2022
Guidance 2021
Actual 2022
Guidance 2021
Actual 2022
Guidance
Canadian Malartic (50%) $ 1,135 $ 1,320 $ 647 $ 760 $ 901 $ 1,030
Jacobina $ 863 $ 845 $ 566 $ 555 $ 738 $ 760
Cerro Moro $ 1,332 $ 1,420 $ 848 $ 940 $ 1,228 $ 1,285
El Peñón $ 1,054 $ 1,170 $ 673 $ 660 $ 932 $ 885
Minera Florida $ 1,434 $ 1,280 $ 881 $ 740 $ 1,224 $ 1,135
Total(i) $ 1,132 $ 1,215 $ 689 $ 725 $ 1,030 $ 1,080
(i) Total AISC includes additional non-mine site specific costs primarily comprised of corporate G&A and exploration expenditures.

The following table presents expansionary capital, sustaining capital, and total exploration spending for 2021 and guidance for 2022 by mine:

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