In a strong gold environment Yamana Gold (YRI-T, AUY-N, YAU-L) reported solid third quarter results, as production was up and cash costs remained low.
Net earnings for the quarter came in at US$60.8 million, or 8¢ per share. While not bad, the number would have been higher if it weren’t for a deferred tax provision that cost the company 3¢ per share – that amount does not affect operating profits and as it is limited to the third quarter will not affect future periods.
Adjusted earnings were US$88.3 million – a 180% increase from last years third quarter.
As for operating earnings from its mines, the company tallied US$136.4 million in that department — a 138% increase from last year.
Toronto-based Yamana brought in a tidy sum of US$333.2 million in revenues. That represents a 50% increase from revenues for the third quarter of last year.
The company finished the period with cash and cash equivalents of US$97.5 million – 5% more than it finished the second quarter with. Even better, that number has grown since the end of September – the point at which the third quarter ended – and is currently at US$130 million.
As for production, the company managed to turn out 314,707 gold equivalent oz. from its mines a 9% increase over last year. That production was realized at a cost of $349 per gold equivalent oz. – maintaining Yamana’s position as one of the industry lower cost gold producers.
“We continued to focus on cost containment and margin expansion this quarter, which has been reflected in our double digit revenue, cash flow and margin growth,” Chuck Main, Yamana’s executive vice president finance and chief financial officer said in a statement.
The company also said that much of its attention for the quarter was focused on its newest mine, Gualcamayo, in Argentina. Yamana declared commercial production on time at the mine and in its first full quarter of commercial production the mine is meeting expectations and exceeding guidance, the company said.
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