Strong Second Quarter 2021 Production Results and Cash Flows TORONTO, July 29, 2021 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the Company”) is herein reporting its financial and operational results for the second quarter of 2021. Strong cash flow and production during the quarter were underpinned by all-time quarterly high production at Jacobina and Canadian Malartic as well as standout quarters from Minera Florida and El Pen.
In a separate announcement published today, the Company reported significant progress on the Phase 2 expansion of Jacobina as well as strong exploration results that expand the operation’s mineral resource inventory and support the phased expansion, underscoring Jacobina’s exceptional long-term growth potential and ability to further extend strategic mine life. For additional details, please see the press release titled: 'Yamana Gold Reports Significant Progress on Phase 2 Expansion at Jacobina and Strong Exploration Results for the Operation' available on the Company's website at www.yamana.com.
SECOND QUARTER HIGHLIGHTS
Financial Results - Strong Cash Flows Further Strengthen Cash Balances and Balance Sheet Driving Latest Increase in Dividend
- Adjusted net earnings(2, 4) were $70.7 million or $0.07 per share basic and diluted.
- Earnings before taxes of $87.3 million increased significantly in relation to the comparative period earnings before taxes of $9.7 million.
- A non-cash accounting deferred income tax expense of $145.3 million, predominantly associated with an increase in income tax rates in Argentina as applied to certain non-producing assets (namely Suyai and MARA) reduced earnings for the period as under accounting principles, the difference between accounting carrying values and tax basis requires recalculation although not payment of deferred income taxes. Future cash payments associated with the deferred income tax liability are not expected. This has resulted in a net loss(4) for accounting purposes of $43.9 million or $0.05 per share basic and diluted although no cash impact.
- Strong cash flows from operating activities of $153.5 million and cash flows from operating activities before net change in working capital(2) of $167.8 million with free cash flow before dividends and debt repayments(2) of $51.2 million.
- With production and costs in line with plan for the first half of the year, the Company anticipates stronger production, lower unit costs, and increased cash flow in the third and fourth quarters.
- Cash and cash equivalents of $702.0 million, and available credit of $750.0 million, for total available liquidity of approximately $1.5 billion. Cash balances include $223.4 million available for utilization by the MARA Project. The remainder of cash and cash equivalents of $478.6 million, along with further liquidity and incoming cash flows is expected to be more than sufficient to fully fund the Company's business and capital allocation objectives.
- As announced today, the Company is raising its annual dividend to $0.12 per share, representing a nearly 15% increase from the previous level and a cumulative increase of 500% from the second quarter of 2019. The dividend increase reflects improved cash flows and increased cash balances, along with other realized and anticipated strengthening of the Company's financial position.
https://www.globenewswire.com/news-release/2021/07/29/2271864/0/en/Yamana-Gold-Reports-Strong-Second-Quarter-2021-Production-Results-and-Cash-Flows-Jacobina-and-Canadian-Malartic-Achieve-All-Time-Quarterly-High-Production-Minera-Florida-and-El-Pe%C3%B1.html