Off The Wire
Yamana Gold Trims GEO Guidance After Sale Of Mine
(Kitco News) - Yamana Gold Inc. (TSX: YRI; NYSE: AUY) trimmed its 2019 production guidance for gold-equivalent ounces Wednesday due to the previously announced sale of the Chapada copper and gold mine.
Officials now expect 2019 output of 1.01 million gold-equivalent ounces, down from 1.06 million previously. Gold production guidance was trimmed to 899,000 ounces from 940,000.
Second-quarter output was 257,556 gold-equivalent ounces, which officials said exceeded plan. Preliminary costs were said to be within the previous guidance range for the quarter.
The company said gold output of 232,863 ounces and silver production of 2.2 million ounces were both above plan. Yamana also produced 31.2 million pounds of copper.
“The company continues to anticipate a strong second half and remains on track to meet its full-year 2019 guidance,” Yamana said. “Consistent with previous guidance, the company expects to report positive free cash flow in the second quarter. Free cash flow is expected to increase in the second half of the year, as operating results will be aided by recently announced reductions in general and administrative expenses and lower interest expense due to anticipated debt reduction.
“The company will also have less investment in long-term stockpile following the disposition of the Chapada mine.”