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Yamana touts outstanding Canadian Malartic performance in Q1, ups dividend

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(Kitco News) - Yamana Gold (TSX:YRI; NYSE:AUY; LSE:AUY) reported Wednesday that its gold production in Q1 2021 was 201,117 ounces (5% increase over Q1 2020) and silver production was 2.13 million ounces (22% decrease over Q1 2020), both in line with plan. Gold equivalent production was 231,988 ounces.

The company said that Canadian Malartic and Minera Florida mines had standout quarters, producing 89,550 ounces and 20,818 ounces of gold, respectively, both above plan.

Canadian Malartic had an exceptional first quarter, producing 89,550 ounces of gold, which exceeded plan and greatly (by 38%) exceeded the comparative period in 2020, due to higher grades and recoveries from the ore found deeper in the Malartic pit.

At Jacobina, production reached an all-time monthly high in March, with total production in line with plan for the quarter.

Silver production of 1,309,103 ounces at Cerro Moro exceeded plan with mine sequencing during the quarter favouring mining of higher silver grade zones.

The company said it expects to continue its established trend of delivering stronger production in the second half of the year along with quarterly sequential increases in production.

Cash costs and all-in sustaining costs were $698 and $1,045 per GEO, respectively, which on a consolidated basis were in line or better than plan, and consistent with the comparative period.

Mine operating earnings of $149.5 million increased by $50.2 million or 51% in relation to the comparative prior year quarter. The company said that this increase is related to the strong precious metal price environment and strong operational performances from the mines resulting in higher gold production at comparable costs.

Net earnings were $54.7 million or $0.06 per share basic and diluted compares well to net earnings of $45.0 million or $0.05 per share basic and diluted a year earlier.

The company pointed out that quarterly dividend rate of $0.02625 per share (annual $0.105 per share) is 110% higher than the same quarter in 2020 and 425% higher than the same quarter in 2019.

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