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Yamana Gold Reports Adjusted Profit In 4Q

(Kitco News) - Yamana Gold Inc. (TSX: YRI; NYSE: AUY) reversed to an adjusted profit in the fourth quarter, helped by higher prices of metals.

The company late Thursday reported adjusted earnings of $6.7 million, or a penny per share, a turnaround from an adjusted loss of $6.4 million, also a penny, in the fourth quarter of 2015. With an impairment charge, the net loss was $355.4 million, or 38 cents, compared to a net loss of $1.4 billion, or $1.53, in the year-ago period.

Revenue was $484.4 million, an increase of $45.3 million compared to the fourth quarter of 2015 due higher metal prices, partly offset by lower copper sales, Yamana said. The average gold and silver price rose to $1,210 and $17.17, respectively, compared to $1,102 and $14.62 in the fourth quarter of 2015. The copper price climbed to $2.48 a pound from $2.26.

Fourth-quarter production from continuing operations included 319,265 ounces of gold, 1.63 million ounces of silver and 36.9 million pounds of copper.

For full-year 2016, Yamana listed adjusted earnings of $43.3 million, or a nickel per share, compared to an adjusted loss of $64.5 million, or 8 cents, in 2015. The net loss was $290.8 million, or 31 cents, compared to a net loss of $1.7 billion, or $1.80, in 2015.

For the full year, the company listed gold production of 1.27 million ounces and silver output of 7 million, with these figures including nine months of production from Mercedes. Copper production was 115.5 million pounds.

For 2017, Yamana anticipates output of 1.14 million ounces of gold, including its stake in Brio Gold. All-in sustaining costs, on a co-product basis, are expected to be between $890 and $910.

The company’s biggest development product is Cerro Moro, expected to begin operating in the first half of 2018. The company said it sees a hiatus in significant expansionary capital after completion of Cerro Moro and the Barnat extension at the Canadian Malartic in 2018.

The board of directors declared a first quarter 2017 dividend of $0.005 per share. Shareholders of record at the close of business on March 31 will be entitled to this dividend on April 14.

Yamana also reported an increase in proven and probable reserves to 16.6 million ounces of gold, up from 15.4 million. This includes an 84.6 % share of Brio Gold reserves. Silver proven and probable reserves fell to 80.3 million from 94.3 million, while copper reserves rose to 3.3 million pounds from 3 million.

By Allen Sykora of Kitco News; asykora@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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