Yamana Gold (YRI-T, AUY-N) reported a US$89.5-million profit for the fourth quarter of 2011, a 28% decrease from the same period a year ago, thanks to a one-time US$81-million impairment loss on investments.
On an adjusted basis, earnings came in at US$184 million or US$0.25 a share, a 7% increase over the comparable period.
The producer reported record-high mine operating earnings of US$297 million due to higher gold and silver realized prices and more concentrate sales volume. These higher prices helped rake in US$569 million in quarterly revenue, despite the company producing 3% less or 276, 918 gold equivalent oz. during the three months ending Dec. 31, 2011.
For the full year, Yamana had a record production of 1.1 million gold equivalent oz., a 5% boost over 2010. The company applauded its flagship operations El Penon in Chile and Gualcamayo in Argentina for its strong performances.
Revenue equalled US$2.2 billion, while yearly profit came in at US$548 million, a 17%-boost over 2010. Adjusted earnings amounted to US$713 million or US$0.96 a share, a 59% jump from 2010. Operating cash flow came at US$1.3 billion, a 48% increase from the previous year. The company ended the year with US$550 million in cash and equivalents, a US$220 million improvement over 2010.
The miner also boosted company-wide reserves by 11% in 2011, while growing inferred resources by 39% to more than 10 million oz.
For 2012, Yamana expects to continue enhancing its resources and production. It has targeted production of 1.2 million to 1.3 million gold equivalent oz. for the year, a 13% hike from last year’s output. The company says the boost will come mostly from the Mercedes gold-silver operation in Mexico, which kicked off production in mid-November 2011, and from the Minera Florida expansion in Chile, which will add to production in March.
Cash costs for the year are estimated to be under US$250 per gold equivalent oz. Last year’s costs totalled US$463 per oz.
In 2013, the company predicts output to be between 1.5 million and 1.7 million gold equivalent oz., a 43% increase from 2011’s level. That boost will come from a full year of production at C1 Santa Luz and Ernesto/Pau-a-Pique in Brazil, and from the Pilar and the Gualcamayo expansion.
By 2014, Yamana aims to grow production to 1.75 million gold equivalent oz.
On Feb. 22, the day it reported the 2011 results and reserve increase, Yamana also boosted its annual dividend by 10% to US$0.22 per share.
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