The stock, though, was off 7 cents to $8.43 on Tuesday morning, and it's down 1.7% year to date, compared with a 4.3% gain for the Standard & Poor's 500 Index.
Yamana and Agnico are operating Osisko's Malartic mine in Quebec. That is helping lead to higher production for Yamana, and because the production costs are lower in Malartic than for Yamana elsewhere, the company's production cost per gold ounce is coming down.
In the second quarter, Yamana's all-in sustaining cash costs, which include all expenditures related to producing gold such as capital expenditures, general and administrative and exploration expenses, dropped by 3.7% to $915 per ounce. Despite the drop, the company's cash profit per ounce fell by 13.3%, mainly because of a decline in the price of gold.
Overall, Yamana's second-quarter's adjusted earnings of 5 cents per share topped analysts' estimates by a penny. Revenue rose 4.7%, driven by a 12.3% increase in production.
Besides the higher production from the Malartic mine, Yamana's Gualcamayo project in Argentina doubled its quarterly output from last year as another underground mine started to produce. The company expects to further expand production from this project in the coming quarters.