YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the
Company”) herein announces fourth quarter and full year 2022
preliminary operating results. Production during the fourth quarter
totaled 264,891 gold equivalent ounces (“GEO”)(1) with full year
production of 1,005,770 GEO(1) exceeding annual guidance of
1,000,000 GEO(1). Full year all-in sustaining costs (“AISC”)(2) are
expected to be below $1,125 per GEO(1), generally in line with
guidance when adjusted for the impact of the higher gold-to-silver
ratio. The standout production results, which were realized despite
the gold-to-silver ratio being near an all-time high and
significantly above what was anticipated in guidance, are a
testament to the Company’s focus on operational excellence and
track record of execution despite inflationary conditions.
"As the Executive Chairman and founder of Yamana
Gold, I have always advocated for critical mass and scale to drive
success in the mining industry. With that said, I am incredibly
proud to see this philosophy being fully realized and demonstrated
through our proposed transaction with Pan American and Agnico
Eagle. I also find it greatly encouraging that this proposal has
received positive voting recommendations from both ISS and Glass
Lewis, the leading proxy advisory firms," commented Peter Marrone.
"Our strong fourth quarter and 2022 operational results are a
testament to our track record of operational excellence and
demonstrate how our portfolio and management punch well above their
weight. Despite the challenging macroeconomic backdrop and ongoing
corporate transactions, we have remained focused on consistently
delivering impressive results that will translate into strong cash
flows and financial strength for the combined companies. We have
achieved all of this whilst demonstrating an unwavering commitment
to ESG, which will continue to be critical to the success of the
combined companies and the wider industry. Together with the
integration of managements across both our and Pan American’s
organizations, our proposed transaction will be truly
transformational. As the shareholder vote rapidly approaches, I am
mindful that this could well be our last operational update, and at
this time would personally like to express my heartfelt thanks to
all the exceptional employees and management of Yamana who have,
with their dedication and commitment, once again proven to be what
drives value. Our greatest assets are the dedication, support,
efforts and results of our management and employees. I am proud of
all of you and delighted to have been associated with you."
FOURTH QUARTER AND FULL YEAR 2022
RESULTS HIGHLIGHTS
- Fourth quarter production of
264,891 GEO(1), comprised of 235,072 ounces of gold and 2.43
million ounces of silver. As expected and previously guided,
production in the second half of the year was comparable to that in
the first half, with the sequential increase in the fourth quarter
over the third quarter mirroring that realized in the second
quarter over the first quarter.
- Full year production of
1,005,770 GEO(1), including 894,820 ounces of
gold, exceeded guidance of 1,000,000 GEO(1) and 870,000
ounces of gold.
- Full year AISC(2) is expected to be
below $1,125 per GEO(1), generally in line with guidance when
adjusted for the impact of the higher gold-to-silver ratio. The
effect of a higher gold-to-silver ratio based on comparatively
lower silver-to-gold prices is to reduce GEO(1) produced,
although the production of underlying metals remain the same.
- Exploration in 2022 focused on
further defining new discoveries to underpin the Company’s pipeline
for growth and longevity and on replacing mining depletion at the
operations. Preliminary results are encouraging and suggest another
year of replacing mineral reserves and mineral resources at the
wholly owned operations. Notable results from the year include:
significant progress in converting inferred mineral resources to
indicated mineral resources at East Gouldie and Odyssey South, with
significant expansion potential and high levels of mineralization
continuity and consistency; an updated mineral resource model at
Wasamac leading to a 14% increase in gold mineral reserves; and at
Jacobina, strong growth in mineral resources in the new and
expanding João Belo Sul zone and the pending announcement of a
maiden inferred mineral resource for part of the Morro do Vento
Leste zone.
|
Fourth Quarter 2022 Preliminary Production |
Full Year 2022 Preliminary Production |
2022 Full Year Guidance |
GEO(1) Production |
264,891 |
1,005,770 |
1,000,000 |
Gold Production (oz.) |
235,072 |
894,820 |
870,000 |
Silver Production (oz.) |
2,433,413 |
9,201,700 |
9,500,000 |
Operational Highlights
- Gold production at Jacobina
continued to be strong, with 48,528 ounces of gold produced in the
fourth quarter and a record 195,427 ounces produced in the full
year, exceeding guidance of 195,000 ounces. The record production
results were driven by tonnes mined, which also reached all-time
highs, providing additional flexibility through the development of
stockpiles supporting the higher throughput expected from the
ongoing phased expansion. Production in 2022 increased for the
ninth consecutive year, a trend that is expected to continue in the
coming years, as a result of the phased expansion strategy and the
exploration programs aimed at generating significant value from the
remarkable geological upside of the property.
- El Peñón produced 59,288 GEO(1)
comprised of 47,461 ounces of gold and 960,009 ounces of silver
during the quarter with a particularly strong month of December
delivering 21,784 GEO(1). As planned, operations entered
higher-grade silver zones such as Fortuna, Providencia, Pampa
Campamento and Martillo Flats, which contributed to the higher
production results in the quarter. For the full year, production of
216,450 GEO(1) was largely in line with guidance.
- Canadian Malartic produced 86,439
ounces of gold (50% basis) during the fourth quarter. Canadian
Malartic recovery rates have continued to trend higher than
comparative periods, as anticipated from the processing of softer
Barnat ore. Full year production of 329,396 ounces of gold (50%
basis) exceeded guidance of 320,000 ounces.
- Minera Florida produced 25,475
ounces of gold during the quarter and 82,427 ounces of gold for the
year, in line with the previously provided guidance range.
- Cerro Moro delivered a strong
quarter, producing 45,161 GEO(1) comprised of 27,168 ounces of gold
and 1,473,404 ounces of silver. Full year production of 182,069
GEO(1) exceeded guidance of 169,000 GEO(1), with gold production of
108,240 ounces and silver production of 6.1 million ounces
exceeding guidance of 95,000 ounces and 5.3 million ounces,
respectively. Production continued to benefit from access to
additional mining faces, which supported the increase in mill feed
coming from higher-grade underground ore and stable
throughput.
Mine-by-Mine |
Fourth Quarter 2022 Preliminary Production |
Full Year 2022 Preliminary Production |
Gold (oz.) |
|
|
El Peñón |
47,461 |
179,331 |
Canadian Malartic (50%) |
86,439 |
329,396 |
Jacobina |
48,528 |
195,427 |
Cerro Moro |
27,168 |
108,240 |
Minera Florida |
25,475 |
82,427 |
Total Yamana |
235,072 |
894,820 |
Silver (oz.) |
|
|
El Peñón |
960,009 |
3,085,077 |
Cerro Moro |
1,473,404 |
6,116,624 |
Total Yamana |
2,433,413 |
9,201,700 |
GEO(1)Production |
264,891 |
1,005,770 |
Special Meeting of
Shareholders
Yamana would like to remind shareholders of the
upcoming special meeting of shareholders (the "Yamana Meeting")
scheduled to take place on January 31, 2023. The purpose of the
Yamana Meeting is to seek approval for the previously announced
arrangement involving the acquisition by Pan American Silver Corp.
(“Pan American”) of all of the issued and outstanding common shares
of the Company following the sale by Yamana of its Canadian assets,
including certain subsidiaries and partnerships which hold Yamana’s
interests in the Canadian Malartic mine, to Agnico Eagle Mines
Limited (“Agnico Eagle”), all by way of a plan of arrangement under
the Canada Business Corporations Act (the “Proposed
Transaction”).
For additional details please review the
Company’s management information circular and other meeting
materials which have been publicly filed and which are available
under Yamana’s issuer profile on www.sedar.com and are also
available on the Company’s website at www.yamana.com.
The board of directors of Yamana unanimously
recommends that Yamana shareholders vote IN FAVOUR of the Proposed
Transaction.
Shareholders of record on December 14, 2022 will
be eligible to vote at the Yamana Meeting. The Yamana Meeting will
be held at 1:00 p.m. (Toronto time) on January 31, 2023 at the
Design Exchange Toronto-Dominion Centre, 234 Bay Street, Toronto,
Ontario and online at:
Website:
https://web.lumiagm.com/497366151Password:
yamana2023 (case sensitive)
A special meeting of the shareholders of Pan
American to consider the arrangement is scheduled to be held
concurrently on January 31, 2023.
Shareholder Questions and Voting
Assistance
If you have questions about Yamana Meeting
matters, the voting instructions or require assistance completing
your proxy form, please contact the Company’s strategic advisor and
proxy solicitation agent, Laurel Hill, toll-free in North America
at 1-877-452-7184, outside North America at 1-416-304-0211, or by
email at assistance@laurelhill.com.
Arrangement Agreement with Pan American
- Pro Forma Guidance Assuming Completion of the
Transaction
Following the shareholders meetings to consider
the transaction, Pan American and Yamana plan to issue 2023
guidance for the combined entity, assuming the transaction is
approved. A date for the closing of the transaction has not been
determined at this time although it is expected to occur in the
first quarter.
Qualified Persons
Scientific and technical information contained
in this news release has been reviewed and approved by Sébastien
Bernier (P. Geo and Senior Director, Reserves and Resources).
Sébastien Bernier is an employee of Yamana Gold Inc. and a
"Qualified Person" as defined by Canadian Securities
Administrators' National Instrument 43 101 Standards of Disclosure
for Mineral Projects.
About Yamana
Yamana Gold Inc. is a Canadian-based precious
metals producer with significant gold and silver production,
development stage properties, exploration properties, and land
positions throughout the Americas, including Canada, Brazil, Chile
and Argentina. Yamana plans to continue to build on this base
through expansion and optimization initiatives at existing
operating mines, development of new mines, the advancement of its
exploration properties and, at times, by targeting other
consolidation opportunities with a primary focus in the
Americas.
FOR FURTHER INFORMATION PLEASE
CONTACT:
Investor Relations
416-815-02201-888-809-0925Email: investor@yamana.com
FTI Consulting (UK Public Relations)Sara Powell
/ Ben Brewerton+44 7974 201 715223 / +44 203 727 1000
END NOTES
(1) |
GEO assumes
gold ounces plus the gold equivalent of silver ounces. GEO
calculations for actuals are based on an average market gold to
silver price ratio for the relevant period of 81.61 for the three
months ended December 31, 2022, 82.94 for the year ended December
31, 2022 and a ratio of 72.00 for guidance periods. |
(2) |
A cautionary note regarding non-GAAP performance measures and
their respective reconciliations, as well as additional line items
or subtotals in financial statements is included in Section 11:
Non-GAAP Performance Measures and Additional Subtotals in Financial
Statements in the Company's MD&A for the three and nine months
ended September 30, 2022 and in the 'Non-GAAP Performance Measures'
of the associated press release dated October 27, 2022. |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This news release contains or incorporates by reference
“forward-looking statements” and “forward-looking information”
under applicable Canadian securities legislation and within the
meaning of the United States Private Securities Litigation Reform
Act of 1995. Forward-looking information includes, but is not
limited to information with respect to the Company’s strategy,
plans or future financial or operating performance, including plans
at its exploration projects; the expected fourth quarter and
full-year production and guidance; and the Yamana Meeting and the
Pan American special meeting of shareholders. Forward-looking
statements are characterized by words such as “plan", “expect”,
“budget”, “target”, “project”, “intend”, “believe”, “anticipate”,
“estimate” and other similar words, or statements that certain
events or conditions “may” or “will” occur. Forward-looking
statements are based on the opinions, assumptions and estimates of
management considered reasonable at the date the statements are
made, and are inherently subject to a variety of risks and
uncertainties and other known and unknown factors that could cause
actual events or results to differ materially from those projected
in the forward-looking statements. These factors include the
Company’s expectations in connection with the production and
exploration, development and expansion plans at the Company's
projects discussed herein being met, the impact of proposed
optimizations at the Company's projects, changes in national and
local government legislation, taxation, controls or regulations
and/or change in the administration of laws, policies and
practices, and the impact of general business and economic
conditions, global liquidity and credit availability on the timing
of cash flows and the values of assets and liabilities based on
projected future conditions, fluctuating metal prices (such as
gold, silver, copper and zinc), currency exchange rates (such as
the Canadian Dollar, the Brazilian Real, the Chilean Peso and the
Argentine Peso versus the United States Dollar), the impact of
inflation, possible variations in ore grade or recovery rates,
changes in the Company’s hedging program, changes in accounting
policies, changes in mineral resources and mineral reserves, risks
related to asset dispositions, risks related to metal purchase
agreements, risks related to acquisitions, changes in project
parameters as plans continue to be refined, changes in project
development, construction, production and commissioning time
frames, risks associated with infectious diseases, including
COVID-19, unanticipated costs and expenses, higher prices for fuel,
steel, power, labour and other consumables contributing to higher
costs and general risks of the mining industry, failure of plant,
equipment or processes to operate as anticipated, unexpected
changes in mine life, final pricing for concentrate sales,
unanticipated results of future studies, seasonality and
unanticipated weather changes, costs and timing of the development
of new deposits, success of exploration activities, permitting
timelines, government regulation and the risk of government
expropriation or nationalization of mining operations, risks
related to relying on local advisors and consultants in foreign
jurisdictions, environmental risks, unanticipated reclamation
expenses, risks relating to joint venture operations, title
disputes or claims, limitations on insurance coverage, timing and
possible outcome of pending and outstanding litigation and labour
disputes, risks related to enforcing legal rights in foreign
jurisdictions, as well as those risk factors discussed or referred
to herein and in the Company's Annual Information Form filed with
the securities regulatory authorities in all provinces of Canada
and available at www.sedar.com, and the Company’s Annual Report on
Form 40-F filed with the United States Securities and Exchange
Commission. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
The Company undertakes no obligation to update forward-looking
statements if circumstances or management’s estimates, assumptions
or opinions should change, except as required by applicable law.
The reader is cautioned not to place undue reliance on
forward-looking statements. The forward-looking information
contained herein is presented for the purpose of assisting
investors in understanding the Company’s expected fourth quarter
and full year operating results and production and may not be
appropriate for other purposes.
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