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Yamana Gold exceeds original 2020 production target, cuts debt by $323M

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(Kitco News) - Yamana Gold (TSX:YRI; NYSE:AUY; LSE:AUY) today announced strong fourth-quarter and full-year 2020 production and financial results.

The company said that fourth-quarter gold equivalent ounce (“GEO”) production was 255,361 GEO, including 221,659 ounces of gold and 2.59 million ounces of silver, with production during the quarter exceeding sales by over 7,000 ounces of gold due to timing of sales which is expected to normalize during 2021.

Full-year production was 901,155 GEO, including 779,810 ounces of gold and 10.37 million ounces of silver, which exceeds original guidance for the year for 890,000 GEO, and which, while below the set point of revised guidance of 915,000 GEO, was well within the plus or minus three per cent guidance range set by the company to account for COVID-19 related uncertainties.

The company added that GEO production for the year at Jacobina, El Peñón, Canadian Malartic, and Minera Florida were all well above plan and, notwithstanding the COVID-19 restrictions imposed near the end of the year in Argentina, GEO production at Cerro Moro in December was strong, exceeding the monthly average for the year.

Operating cash flow before net change in working capital for the quarter is expected to be the highest level by quarter for the year, exceeding operating cash flow before net change in working capital for the prior quarter of $199 million, and the prior three quarter average of $160 million.

Yamana said that its net debt declined further, by approximately $53 million from the third quarter, for a total decrease of $323 million for the year.

Yamana Gold 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.

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