TSX-listed Yamana Gold expects stable to positive production growth, with gold and silver output forecast to increase to 955 000 oz and 12-million ounces, respectively, by 2020.
In the fourth-quarter and full-year results announcement on Thursday, the company stated that gold production would benefit from continued strong performance across the portfolio, led by production increases at Qubec-based Canadian Malartic, while silver production was expected to benefit from grade and production increases at Cerro Moro, Argentina, in line with current mine plans.
Copper production, all of which is from Chapada in Brazil, would remain constant throughout the guidance period, at about 120-million pounds a year.
Yamana exceeded its 2018 guidance for all three commodities, achieving 940 619 oz of gold (compared with an expected 920 000 oz), 8.02-million ounces of silver (compared with a guided 7.5-million ounces) and 129-million pounds of copper (compared with a targeted 125-million pounds).
Yamana’s gold equivalent ounce production for the fourth quarter amounted to 310 369 oz, including 270 193 oz of gold and 3.26-million ounces of silver. The company also produced 39-million pounds of copper.
For 2019, the miner said it would produce 940 000 oz of gold, ten-million ounces of silver and 120-million pounds of copper, whereas in 2020 and 2021, the company would produce 955 000 oz of gold, 12-million ounces of silver and 120-million pounds of copper.
Cash costs per unit sold for 2019 are expected to range between $640/oz and $680/oz for gold equivalents and between $1.60/lb and $1.80/lb for copper. The all-in sustaining costs per unit sold for 2019 should range between $920/oz and $960/oz for gold equivalents and $1.90/lb and $2.10/lb for copper.
Yamana noted that with the 2018 development and ramp-up of the high-grade Cerro Moro mine, it remained focused on optimising its existing portfolio of six operating mines, while also advancing studies for various expansion projects.
Further, with the completion of Cerro Moro, once the Canadian Malartic Extension project is completed there would be a significant reduction in expansionary capital.
Meanwhile, Yamana reported adjusted earnings of $26.2-million, or $0.03 a share, for the fourth quarter. The net loss attributable to equity holders for the same period, was $61.4-million, or $0.06 a share, including noncash and other items that are not necessarily reflective of current and ongoing operations.
Revenue for the three months increased to $483.4-million, from $478.8-million a year earlier, while full-year revenue remained stable at $1.80-billion.
The group’s full-year net loss attributable to equity holders widened to $297.7-million, from $198-million in 2017.