Yamana Lists 1Q Net Loss Due To Non-Cash Charges; Output Tops Guidance
(Kitco News) - Yamana GoldInc. (TSX: YRI; NYSE: AUY) late Wednesday reported that gold production in thefirst quarter exceeded the company’s expectations, although Yamana ended upwith a net loss mainly due to non-cash special items.
The net lossattributable to Yamana shareholders was $160.1 million, or 17 cents per share.However, Yamana listed $170.2 million in non-cashcharges, with the biggest a $174 million (before taxes)non-cash accounting carrying value reduction tied to company’s interest in BrioGold.
Yamana’s earnings report said theadjustments amounted to 18 cents per share, meaning the company had adjustedincome of a penny per share. BMO Capital Markets and Credit Suisse bothsaid the adjusted figure was in line with consensus estimates.
Gold-equivalent production fromYamana Mines in the first quarter was 211,246 ounces, including 199,555ounces of gold and 899,261 ounces of silver. Total goldproduction was 248,088 ounces when including attributable productionfrom Gualcamayo andBrio Gold Inc. The company alsoproduced 30.4 million pounds of copper.
“Goldproduction exceeded plan for the first quarter with mine site costs in linewith or better than plan,” Yamana said in its earnings statement. “The companyreiterates production and cost guidance for 2018, and continues to expectapproximately 47% of total gold production from Yamana mines and 46% of totalcopper production to be delivered in the first half of the year.”
Thisproduction weighting is before factoring in the company’s newest mine, CerroMoro, where first ore was fed to the mill on April 25, Yamana said.
“Thestart-up is progressing well with milling rates and feed grades expected toramp up through the second quarter, with first dor?(C) expected in May,” Yamanasaid, adding that Cerro Moro “is expected to contribute meaningfully” toYamana’s planned growth at costs significantly below the current average coststructure.
The averagerealized gold price rose to $1,328 from $1,220 in the first quarter of 2017.All-in sustaining costs, on a byproduct basis, at Yamana mines fell to $703from $902 a year ago.
Yamana also declared a second-quarterdividend of $0.005 per share. Shareholders of record at the close ofbusiness on June 29will be entitled to receive payment of this dividend on July 13,the company said.
By Allen SykoraFor Kitco News
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