By 2014, production is targeted to be 1.7 million GEO, which represents production growth over four years of approximately 65% compared to 2010 production levels. This production includes production from existing mines and projects currently in development for which construction decisions have been made, and it does not include any additional production from new projects, expansions and optimizations under current evaluation.
Further details of the 2011 first quarter results can be found in the Company's unaudited Management's Discussion and Analysis and unaudited Consolidated Financial Statements at
www.yamana.com, in the "Investors" section under "Financial and Corporate Reports".
TRANSITION TO IFRS
Effective the first quarter of 2011, the Company prepares its financial statements in accordance with International Financial Reporting Standards ("IFRS"). The comparative financial information of 2010 in this Management Discussion and Analysis has also been restated to conform to IFRS. This press release should be read in conjunction with Note 30 "Transition to IFRS" to consolidated financial statements.
To transition from Canadian GAAP to IFRS, the main adjustment to net earnings was the revaluation of deferred income tax assets and liabilities related to non-monetary items using current exchange rates rather than historical exchange rates as it was the case under Canadian GAAP. Under IFRS, the use of current exchange rates in the revaluation of deferred income tax assets and liabilities increases volatility in income tax expense and net earnings period to period. The calculation of Adjusted Earnings excludes foreign exchange gains and losses, therefore, the effect of revaluating deferred income tax assets and liabilities due to movements in foreign currencies is excluded from the Adjusted Earnings calculation.
January 1, 2011, the Company used the non-GAAP financial measure "cash flows from operating activities before changes in non-cash working capital" to supplement its consolidated financial statements. Coincident with the IFRS disclosure requirement for finance income received or expense paid and income tax paid to be presented as separate items in the statement of cash flows, the Company has determined to replace "cash flows from operating activities before changes in non-cash working capital" with "cash flows generated from operations before changes in non-cash working capital" by excluding finance income received and finance expense paid in the calculation of "cash flows generated from operations before changes in working capital". Finance income is now included in the determination of cash flows from investing activities and finance expense is now included in the determination of cash flows from financing activities. Additionally, in accordance with IFRS, the Company now reflects income taxes paid or received in the calculation of operation cash flows on a cash basis excluding any impact of movements in the income tax liability or receivable. While changes are effected to comply with the requirements of IFRS, every possible effort has been made to maintain consistency between the current composition of cash flows from operating activities and the version under Canadian GAAP to the extent possible. Management expects that the measure better reflects the Company's cash flow generating capabilities for investors.