PRODUCTION INCREASED 11%, REVENUES INCREASED 37%, CASH FLOW INCREASED 73% AND ADJUSTED EARNINGS INCREASED 110%
(Based on IFRS and in
United States dollars unless otherwise specified)
TORONTO, May 3 /PRNewswire-FirstCall/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) ("Yamana" or "the Company") today announced its financial and operating results for the first quarter of 2011.
HIGHLIGHTS FOR THE FIRST QUARTER 2011
- Production of 267,368 per gold equivalent ounce (GEO)(1)(3)at cash costs of $14/GEO(1)(2) - Gold production of 221,489 ounces - Silver production of 2.3 million ounces - Generated cash margin of $1,373 per ounce(4) - Significant financial and operational increases over the first quarter of 2010 - Production increased 11% to 267,368 GEO with record production from El Penon - Revenues up 37% to $476 million - Net earnings up 11% to $0.20 per share - Adjusted earnings(1) up 110% to $0.21 per share - Cash flow generated from operations(1) up 73% to $0.38 per share - Cash balance increased to $460 million from $330 million, a 39% increase since 2010 year end - Announced value enhancing deal with respect to Agua Rica with Xstrata and Goldcorp
"Yamana's first quarter results continued to demonstrate our commitment to, and focus on, the delivery of predictable and reliable production and costs. We delivered production growth in the first quarter and record production from El Penon. Our cash costs continued to be one of the lowest in the industry" commented Peter Marrone, Chairman and CEO. "We continue to advance our new projects, the first of which, Mercedes, is expected to start production by the middle of 2012. C1 Santa Luz and Ernesto Pau-a-Pique will begin contributing by the end of 2012 and Pilar is expected to be in production in early 2013. All of the projects can be fully funded directly from our cash flow. These projects will contribute to our 60% production growth expected in the next three years."
--------------------- (1) Refers to a non-GAAP measure. Reconciliations can be found at the end of this press release. (2) Cash costs are shown on a by-product basis including Alumbrera unless otherwise noted. (3) Gold equivalent ounces include silver production at a ratio of 50:1. (4) Cash margin is the difference from the average realized gold price received in the period less the by-product cash costs.