YAMANA GOLD INC. (TSX:YRI) (NYSE:AUY) (Yamana or the Company) is herein reporting its financial and operational results for the fourth quarter and full year 2017, and its Mineral Reserve and Mineral Resource estimates as at December 31, 2017.
FOURTH QUARTER HIGHLIGHTS
Total production for the fourth quarter was 259,606 ounces of gold from Yamana`s six producing mines (282,041 ounces of gold including attributable production (1) from Brio Gold Inc. ("Brio Gold")). The Company also produced 1.17 million ounces of silver and 34.7 million pounds of copper. Full year production from Yamanas mines exceeded guidance for all metals at 977,316 ounces of gold, 5.0 million ounces of silver, and 127.3 million pounds of copper.
Fourth quarter total cost of sales applicable to gold of $966 per ounce ($980 per ounce, including Brio Gold); cash costs on a co-product basis (2) of $660 per ounce ($672 per ounce, including Brio Gold); cash costs on a by-product basis (2) of $548 per ounce; all-in sustaining costs (AISC) (2) on a co-product basis of $899 per ounce ($925 per ounce, including Brio Gold); and AISC on a by-product basis (2) of $829 per ounce. For the year, co-product and AISC were either in line with or below guidance levels.
Net loss from continuing operations for the three months ended December 31, 2017, was $199.7 million, with $191.0 million or $(0.20) per share basic and diluted attributable to Yamana equityholders. A summary of certain non-cash and other items is included in the table on page two of this press release, the most notable of which is a non-cash impairment recognized on the re-measurement of Gualcamayo and related Argentinian exploration properties in association with their reclassification as assets held for sale.
Cash flows from operating activities for the fourth quarter were $158.5 million and cash flows from operating activities before income taxes paid, including $46.6 million in payments relating to Brazilian tax matters, and net change in working capital (2) were $170.3 million.
The balance sheet as at December 31, 2017, includes cash and cash equivalents of $148.9 million. Yamanas cash and cash equivalents , and available credit (excluding Brio Gold), are $129.6 million and $970.0 million, respectively, for total liquidity to the Company of $1.1 billion.
Peter Marrone, Yamanas Chairman and Chief Executive Officer, commented as follows: In 2017 we exceeded our production guidance for all metals and did so at costs in line with expectations. We continued to demonstrate the ability of our operations to generate cash flow while focusing our efforts on rightsizing the portfolio with an eye on longer term cash flow growth, which we expect to see with the addition of the low cost, high margin production from Cerro Moro. Throughout 2017 and into 2018 we advanced various initiatives to complement cash flow from operations, including the sale of certain exploration assets, refinancing a portion of our debt to extend the tenor of our fixed term debt profile, and initiating a program of strategic evaluation of our portfolio and certain monetization initiatives. We are in a strong financial position and are well positioned to deliver a step change in free cash flow in the second half of 2018 and more significantly into 2019 as Cerro Moro ramps up and we seek to maximize our cash return on invested capital.
(All amounts are expressed in United States dollars unless otherwise indicated.)
Attributable production includes production commensurate to the Company`s interest in Brio Gold, which for the fourth quarter and full year of 2017 was a weighted average of 55.1% and 65.5 %, respectively.
Refers to a non-GAAP financial measure or an additional line item or subtotal in financial statements. Reconciliations for all non-GAAP financial measures are available at www.yamana.com/Q42017 and in Section 14 of the Companys fourth quarter 2017 Managements Discussion & Analysis, which has been filed on SEDAR.
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