Yamana Gold Inc. published its financial and operational results for the second quarter 2017. The Company had a strong second quarter, both exceeding its plan for production, and achieving this at costs below those planned. As anticipated, the second quarter was stronger than the first quarter of the year.
Second Quarter 2017 Overview
Total production was 244,607 ounces of gold from Yamana’s six producing mines (275,437 ounces of gold including attributable production from Brio Gold Inc. («Brio Gold»)). Production from the Company’s six producing mines increased by 13% compared to the first quarter of 2017. The Company also produced 1.32 million ounces of silver, representing an increase of 22% compared to the first quarter of 2017, and 29.1 million pounds of copper, representing an increase of 10% compared to the first quarter of 2017.
Outlook for full year production expectations and guidance relating to the Company’s six producing mines is 940,000 ounces of gold. The Company had anticipated that 46% of gold production would be delivered in the first half of the year, with the balance delivered in the second half of the year. As at midyear, the Company has tracked 6% or approximately 30,000 ounces above the anticipated first-half weighting of production, and as such, the Company remains well positioned to achieve its stated production guidance for the year. The Company reiterates production and cost guidance across all metals for the year.
Net loss from continuing operations for the three months ended June 30, 2017, was $36.8 million, with $34.7 million attributable to Yamana equity holders, ($0.04 per share basic and diluted in both cases) which included non-cash tax unrealized foreign exchange loss of $25.1 million and $22.0 million of certain other provisions and write-downs.
Cerro Moro continues on budget and on schedule as construction advanced toward mechanical completion by end of 2017 and start-up of production in early 2018.
Agua Rica underwent initial studies relating to a smaller scale underground sub-level caving operation that contemplates a fully standalone operation. This scenario assumes capital costs substantially below estimates in the feasibility study for a larger open pit operation. The Company is evaluating the selection of financial advisors to advice on potential strategic alternatives.
| Three Months Ending Jun 30th | Six Months Ending Jun 30th
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| 2017 | 2016 | 2017 | 2016 |
| 37,363 | 40,264 | 75,091 | 76,867 |
Gualcamayo Mine (San Juan province) – Production Breakdown (Gold Ounces)
