Yamana Gold Announces Strong Second Quarter 2019 Results

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Algemeen advies 26/07/2019 16:53
TORONTO, July 25, 2019 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or “the Company”) is herein reporting its financial and operational results for the second quarter 2019. Second quarter results include strong gold and silver production highlighted by a second straight quarter of record production at Jacobina. Additional highlights include:
•A 7% year-on-year increase in GEO(1) (2) production to 257,556, including 232,863 ounces of gold and 2.17 million ounces of silver.
•In-line cost guidance, including all-in sustaining costs (“AISC”)(3) of $941 per GEO and cash costs(3) of $670 per GEO.
•Net earnings attributable to Yamana equity holders of $14.1 million or $0.01 per share basic and diluted. Adjusted net earnings(3) were $19.8 million or $0.02 per share basic and diluted.
•Cash flow from operating activities of $147.6 million and cash flows from operating activities before net change in working capital(3) of $156.0 million.
•Increase in free cash flow as follows:

Three months ended June 30
(In millions of United States Dollars) 2019 2018
Net Free Cash Flow(3) $ 122.9 $ 48.0
Free Cash Flow before Dividends and Debt Repayments(3) $ 51.2 $ (41.7 )
Decrease (Increase) in Net Debt(3) $ 13.1 $ (38.6 )

The Company continues to anticipate a strong second half and remains on track to meet its 2019 guidance.

“This was one of the more important and exciting quarters in Yamana’s history,” said Daniel Racine, President and Chief Executive Officer of Yamana. “We have embarked on a new era, significantly improving our balance sheet and financial flexibility, which will allow us to pursue our organic growth opportunities at a time when the metal price cycle appears to be turning.”

Cash flows from operating activities of $147.6 million and cash flows from operating activities before change in net working capital(3) of $156.0 million in the latest quarter include amortization of deferred revenue of $24.9 million related to deliveries under the Company’s copper advanced sales program. Deliveries under the program began in the third quarter of 2018 and concluded at the end of the current reporting period. If not for the timing difference of cash proceeds attributable to this transaction, cash flows from operating activities before net change in working capital would have been higher by these amounts during the quarters as follows:

(All amounts are expressed in United States Dollars unless otherwise indicated.)

(1) GEO includes gold plus silver with silver converted to a gold equivalent at a ratio of 87.98:1 for the second quarter. The GEO ratio is calculated based on average market prices.
(2) Yamana mines include Canadian Malartic, Jacobina, Cerro Moro, El Peñón, Minera Florida, and Chapada.
(3) The Company has included certain non-GAAP performance measures in this press release. Detailed reconciliations for the cash flow metrics can be found at the end of this press release. The $13.1 million reduction in net debt for the period includes cash and cash equivalents classified as held for sale of $3.8 million.

(In millions of United States Dollars, unless otherwise noted) Three Months Ended
Impact due to copper advanced sales program March 31,
2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 June 30,
2019 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(1) $ 206.4 $ 157.5 $ 86.6 $ 115.8 $ 103.2 $ 156.0 $ —
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(2) $ 81.4 $ 157.5 $ 128.3 $ 149.1 $ 128.3 $ 180.9 $ —

(1) 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/Q22019 and in Section 10 of the Company’s second quarter 2019 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.

The Company's Total Recordable Injury Frequency Rate in the second quarter was 0.6(i), a 40% decrease compared to second quarter of 2018. Yamana was included in the Jantzi Social Index for the 10th consecutive year in 2019. The Index consists of 50 Canadian companies that pass a broad screening of Environmental, Social, and Governance ("ESG") criteria. During the quarter, Yamana published its annual sustainability Material Issues Report, which outlines the Company's health, safety, environment, and community performance in 2018 compared to previous years. The Company also published the Global Reporting Initiative ("GRI") Index, which is available on the Company's website: www.yamana.com.

(i) Calculated on 200,000 hours worked and includes employees and contractors.

During the quarter, the Company arranged for the sale of Cerro Moro silver concentrate inventory containing approximately 17,000 ounces of gold and 815,000 ounces of silver, which is included in second quarter revenue. Inventory and throughput silver grade at Cerro Moro has been normalized and furnace usage has returned to designed levels.

The Company has significantly improved its financial flexibility, allowing it to fund organic growth and value creating opportunities, such as the phased expansion of Jacobina and the Agua Rica project, using cash flow from operations. The Company has also taken steps to improve its balance sheet, allocating all upfront cash consideration from the Chapada sale towards retiring outstanding debt.

In addition, the Company has aligned its general and administrative (“G&A”) costs to its remaining portfolio of assets, simplifying its organizational structure, and further strengthening its balance sheet and financial flexibility. Yamana expects 2019 G&A expenses on a cash basis to be lowered to $68.0 million compared with previous guidance of $75.0 million, implying a run rate of approximately $60.0 million per year on an ongoing basis. Further reductions are anticipated through optimizations and cost reduction initiatives.

The balance sheet as of June 30, 2019, included cash and cash equivalents of $90.2 million and available credit of $615.0 million, for total liquidity of $705.2 million. Subsequent to quarter end, the amount of $385 million, representing the outstanding amount under the Company’s revolving credit facility, was repaid in full, the result of which is that cash and cash equivalents increased to $505.2.million and available credit increased to $1.0 billion.

see & read more on
https://www.yamana.com/English/investors/news/news-details/2019/Yamana-Gold-Announces-Strong-Second-Quarter-2019-Results/default.aspx

And
TORONTO, July 25, 2019 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or the “Company”) announced its previously approved 100% increase in its annual dividend to $0.04 and further declares a third quarter 2019 dividend of $0.01 per share. Shareholders of record at the close of business on September 30, 2019, will be entitled to receive payment of this dividend on October 15, 2019. The dividend is an “eligible dividend” for Canadian tax purposes.



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