Yamana Gold (TSX: YRI; NYSE: AUY) expects to exceed its previous 2018 production guidance of 900,000 oz. gold after achieving higher than expected production at its Chapada, Canadian Malartic, Jacobina and El Penon mines.
In total, the company produced 249,177 oz. gold in 2018’s second quarter, nearly 4,000 oz. gold more than in the same quarter of the previous year.
The company says higher than planned gold production offsets its lower than planned silver production.
It produced more than 1.3 million oz. silver in 2018’s second quarter. Production at El Penon dropped to 925,450 oz. silver compared to 1.18 million oz. silver the previous year, but the company made up the lost silver on its ramp-up at the Cerro Morro. The mine received first ore on April 25, 2018, and produced 9,644 oz. gold in the second quarter.
Yamana also exceeded its copper production guidance for the second quarter. It produced 31.1 million lb. copper from its Chapada mine, 2 million lb. higher than the same quarter of the previous year.
Production at Gualcamayo fell to 24,094 oz. gold compared to 37,363 oz. gold in the same quarter last year. The company is trying to sell the project, and, according to a CIBC research report, will consider other options including mine closure and further exploration if it doesn’t receive any attractive offers.
The company posted US$12.4 million in net earnings, a marked improvement over last year’s US$42.8 million loss.
Shares of Yamana Gold are currently trading at $3.95 with a 52-week range of $3.05 to $4.68. The company has a $3.4 billion market capitalization.
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