TORONTO, Feb. 17, 2022 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or the "Company”) is herein reporting its financial and operational results for the fourth quarter and full year 2021. Record quarterly gold equivalent ounces ("GEO")(2) production from Yamana mines(4) of 281,388 GEO(2) significantly exceeded the previously provided quarterly guidance of 270,000 GEO(2) with exceptional gold production contributing to the strong performance. Record annual GEO(2) production from Yamana mines(4) of 1,011,180 GEO(2) also exceeded guidance of 1,000,000 GEO(2). Combined with low fourth quarter costs, including total cost of sales, cash costs(1) and all-in sustaining costs ("AISC")(1) of $1,091, $642 and $962 per GEO(2) respectively, the standout operating results generated an all-time quarterly record of $238.2 million in cash flows from operating activities from Yamana mines(4) and strong free cash flow before dividends and debt repayments(1) of $119.6 million.

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

Financial Results - Record Cash Flows, Increase to Mine Operating Earnings

Fourth quarter net earnings(3) of $109.7 million or $0.11 per share basic and diluted. Adjusted net earnings(1)(3) of $101.4 million or $0.11 per share basic and diluted.
Mine operating earnings of $189.4 million, an increase of 23% quarter-over-quarter.
Cash flows from operating activities reached an all-time quarterly record of $238.2 million from Yamana mines(4), increasing by 25% quarter-over-quarter. Cash flows from operating activities before net change in working capital increased 14% quarter-over-quarter to $230.8 million.
Free cash flow before dividends and debt repayments(1) of $119.6 million, an increase of 47% quarter-over-quarter.
Cash and cash equivalents totalled $525.0 million(8) and the Company has $750.0 million in available credit.
Three months ended December 31
(In millions of United States Dollars) 2021 2020
Net Free Cash Flow (1) $ 188.4 $ 118.9
Free Cash Flow before Dividends and Debt Repayments (1) $ 119.6 $ 61.8
Operating Results - Standout Quarters from Canadian Malartic, Jacobina and El Peñón, Exceptional Quarter from Cerro Moro

As guided, production was weighted at 53% for the second half of the year, with record fourth quarter production of 281,388 GEO(2) significantly exceeding the previously provided guidance of 270,000 GEO(2).
Record annual GEO(2) production from Yamana mines(4) of 1,011,180 GEO(2) exceeded annual guidance of 1,000,000 GEO(2). The full-year GEO(2) record was comprised of 884,793 ounces of gold and 9,169,289 ounces of silver.
Fourth quarter gold production of 240,718 ounces marks the highest all-time total production from Yamana mines(4), with the record-breaking production a result of the planned sequential quarter-over-quarter increases. Within the quarter, the planned sequential month-over-month increase in production resulted in December being a standout month. Of note, is the milestone on December 27, 2021 of the 6 millionth ounce poured at Canadian Malartic since the initial mill start-up in 2011.
Silver production of 3,142,781 ounces was underpinned by both El Peñón and Cerro Moro which recorded their highest quarterly silver production totals of the year.
El Peñón had its strongest production quarter of the year, with GEO(2) production of 67,901 exceeding plan and annual production of 226,330 GEO(2) exceeded guidance of 222,000 GEO(2)
Cerro Moro produced 58,078 GEO(2) during the quarter with 156,484 GEO(2) produced for the full year, an increase of 18% year-over-year.
Canadian Malartic had a strong fourth quarter producing 88,933 ounces of gold with annual production of 357,392 ounces, exceeding guidance of 350,000 ounces.
Jacobina had an exceptional fourth quarter and delivered record quarterly gold production of 48,228 ounces, and record full year gold production of 186,206 ounces, exceeding guidance of 175,000 ounces.
Fourth quarter total cost of sales, cash costs(1) and AISC(1) per GEO(2) of $1,091, $642, and $962 respectively, were the lowest quarterly costs of the year. For the year, total cost of sales, cash costs(1) and AISC(1) per GEO(2) of $1,132, $689 and $1,030 respectively, were all lower year-over-year.
Updated Mineral Reserves and Mineral Resources

On February 8, 2022, the Company announced its year-end 2021 mineral reserve and mineral resource estimates supporting its guidance and longer-term outlook. The Company replaced gold mineral reserves at each of its wholly-owned operations and by 130% over mined depletion, highlighting the sustainability and longevity of its mines.
As at December 31, 2021, the Company reports mineral reserves of 13.7 million ounces of gold, 111 million ounces of silver and 6.7 billion pounds of copper, relatively unchanged from the prior year.
Largely consistent with the prior year, the Company reports measured and indicated mineral resources of 14.5 million ounces of gold, 51 million ounces of silver, and 1.4 billion pounds of copper exclusive of mineral reserves.
The Company reports inferred mineral resources of 15.5 million ounces of gold, 63 million ounces of silver, and 2.13 billion pounds of copper. The large base of mineral resources provides the pipeline for future conversion to mineral reserves at existing operations and development projects and represents further growth opportunities at the Company’s generative exploration projects. Furthermore, a significant portion of these mineral resources could be converted to mineral reserves at higher metal price assumptions.
For additional details, please refer to the February 8, 2022 press release entitled "Yamana Gold reports updated mineral reserves and mineral resources underpinning increasing mine lives across its portfolio".
Capital Returns

On July 29, 2021, the Company announced a normal-course issuer bid (“NCIB”) to purchase up to 48,321,676 common shares of the Company, representing up to 5% of the Company’s then current issued and outstanding common shares, in open-market transactions through the facilities of the Toronto Stock Exchange, the New York Stock Exchange and alternative Canadian trading systems. The Company believes that from time to time the market price of its common shares does not represent their full value and growth prospects and views purchases of common shares as an attractive investment comparable to its investments in its portfolio of exploration and development stage assets. Since the commencement of the NCIB in July, the Company has repurchased, and subsequently cancelled, a total of 6,672,628 common shares for approximately C$35.6 million.
Health, Safety and Sustainable Development

The Company's Total Recordable Injury Rate in 2021 was 0.73(6) for our wholly-owned operations and exploration projects. The change from the full year 2020 results primarily reflects an increase in low-energy incidents. The Company initiated campaigns across all operations focused on reducing the most common injuries that have occurred in 2021.
As of February 11, 2022 more than 99%(7) of the Company's employees and contractors at its wholly-owned operations and exploration projects have received at least one dose of a COVID-19 vaccine and more than 94%(7) have received two doses. Approximately 55%(7) of workers have received a third dose booster shot.
The Company successfully completed the second year of a three-year implementation of the Mining Association of Canada’s Towards Sustainable Mining program and the World Gold Council’s Responsible Gold Mining Principles. The results of self-assessments confirm that significant progress was achieved in 2021 and the Company is well positioned to achieve conformance by Year 3.
The Company completed foundational work on its Climate Action Strategy and established greenhouse gas (“GHG”) abatement pathways for Scope 1 and 2 emissions. As a result, Yamana raised its climate action ambition from a 2ºC - aligned target in early 2021 to a 1.5ºC target, compared to pre-industrial levels. The annual rate of emissions reduction required to meet the 1.5ºC target in 2030 is estimated to be between 4% to 5% and is expected to require only a modest, incremental amount of investment. The Company is on track to produce approximately 85% of its GEO(2) using renewable energy by the end of 2022. Yamana will continue to assess opportunities to further improve GHG abatement efforts, including adoption of evolving technologies for its new mines.
In December the MARA project was recognized at the Silver and Gold Summit in Buenos Aires for their public participation program and efforts to engage and introduce communities to mining.
OPERATING RESULTS SUMMARY

For the three months ended December 31, 2021
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