Yamana Reports 4Q Loss, Projects Higher Gold Output
(Kitco News) -Yamana Gold Inc. (TSX:YRI; NYSE: AUY) late Thursday reported a net loss for the fourth quarter, dueto a large impairment charge, and listed guidance calling for higher goldoutput over the next three years.
The company posted afourth-quarter net loss from continuing operations, attributable toshareholders, of $191 million, or 20 cents per share. This compares to a lossof $367.6 million, or 37 cents, in the same period a year earlier.
The company listedadjustments to income, attributable to shareholders, totaling $244.2 million(versus $362.1 million in the year-ago period). The most notable adjustment inthe fourth quarter was a non-cash impairment for the re-measurement ofGualcamayo and related exploration properties due to their reclassification asassets held for sale, Yamana said.
Cash flow from operatingactivities was $158.5 million.
Fourth-quarter productionwas 259,606 ounces of gold from Yamana's six producing mines, excluding thecompany’s share in Brio Gold Inc. This was down from 268,788 in the fourthquarter of 2016.
Yamana also produced 1.17million ounces of silver, down from 1.63 million a year ago, and 34.7 millionpounds of copper.
In the October-December period, all-in sustaining costs on a co-product basis were $899 per ounce. On aby-product basis, AISC were $829 per ounce.
The company listed anaverage realized gold price of $1,286 an ounce in the fourth quarter, up from$1,210 in the year-ago period. The silver price was $16.49 an ounce, down from$17.17, while the average copper price rose to $3.02 per pound from $2.48.
“In 2017 we exceeded our production guidance for all metals anddid so at costs in line with expectations,” said Peter Marrone, chairman andchief executive officer. Full-year output includes 977,316 ounces of gold, 5 million ounces of silver and127.3 million pounds of copper.
Marrone said the company is looking forward to the addition of the“low-cost, high-margin” production from Cerro Moro in Argentina. The project remains on schedule and on budget forcompletion at the end of the first quarter, Yamana said.
Excluding Brio and Gualcamayooutput, the company projected 2018 guidance of 900,000 gold ounces, 8.15million silver ounces and 120 million copper ounces. Precious-metals output isexpected to increase over the next two years to 970,000 gold ounces and 12.95million silver ounces in 2020.
Gold production is expected to rise mostly as a result ofincreases at Canadian Malartic, Jacobina, Minera Florida, and with newproduction from Cerro Moro, Yamana said. Silver production is expected toincrease more significantly, in percentage terms, than gold almost entirely asa result of the ramp-up of Cerro Moro. Copper production is expected toremain constant over the next three years, Yamana said.
For full-year 2017, Yamanareported a loss of $194.4 million, or 21 cents per share, compared to a loss of$307.9 million, or 31 cents, in 2016. Special charges in 2017 totaled $263.8million, while these were $334.1 million in 2016.
Yamana declareda first-quarter dividend of $0.005 pershare to be paid around April 13 to shareholders of record at the close ofbusiness on March 29.
By Allen SykoraFor Kitco News
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