(Kitco News)- Yamana Gold Inc. (TSX: YRI; NYSE: AUY) late Thursday reported a dip inits third-quarter profit but hiked guidance for gold and copper production infull-year 2018.
The company also announced an agreement to sell itsinterest in the Gualcamayo mine in Argentina to Colombia-based Mineros S.A.
Excluding specialitems, adjusted earnings were $23.6 million, or 2 cents per share, compared to$29.1 million, or 4 cents, in the same quarter a year ago.
On a net basis, thecompany listed a loss of $81.3 million, or 9 cents per share, compared to a netprofit of $45.7 million, or a nickel, in the same quarter a year ago. Among thespecial items is a non-cash accounting carrying value reduction totaling $75million on an after-tax basis ($89 million on a gross basis) relating to thesale of the Gualcamayo mine.
Gold-equivalent production from YamanaMines for the third quarter was 279,464 ounces, including 246,788 ouncesof gold and 2.55 million ounces of silver. Output in the same period a year agowas 223,272 ounces of gold and 1.09 million ounces of silver. Copper productionfell to 28.6 million pounds from 37.1 million.
While gold and silver output was up, however,prices were down. The average realized gold price fell to $1,213 an ounce from$1,278, while the average silver price fell to $15.14 from $16.66.
The company uppedits full-year guidance for production for Yamana Mines to 920,000 ounces ofgold from 900,000 previously, citing strong production through the first ninemonths of 2018. In particular, Cerro Moro, which had its first fullquarter of commercial production in the third quarter, had run rates already atthe levels needed to meet guidance both for 2018 and 2019, Yamana said.
Full-year silverproduction guidance was trimmed to 7.55 million ounces from original 8.15million due to lower-than-planned output from El Pe????n. Nevertheless, thehigher gold production means gold-equivalent output should exceed the initiallyguided 1.013 million ounces, the company said. Yamana also increased its full-yearguidance for copper to approximately 125 million pounds from 120 million.
Yamana maintained aquarterly dividend of $0.005 per share that will be payable on Jan. 11 toshareholders of record as of Dec. 28.
For sale of the Gualcamayo mine to MinerosS.A., Yamana will receive $30 million in cash at closing, another $30 milliononce commercial production is declared on the Deep Carbonates project, as wellas net smelter return royalties on future production. Yamana put the totalvalue of the deal at $85 million, adding that the sale is expected to close inthe fourth quarter.
Yamana also gave Mineros an option to acquireup to a 51% interest in the La Pepa project in Chile, with a call option forthe other 49%.
By Allen SykoraFor Kitco News
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