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Yamana Gold (TSX:YRI) beats revised guidance despite pandemic

Mining
TSX:YRI
13 July 2020 16:01 (EDT)
Yamana Gold Inc - Founder and Executive Chairman, Peter Marrone

Source: Young Mining Professionals

Yamana Gold (YRI) has posted its second quarter production results, with the company on track to exceed its revised COVID-19 guidance.

The company began the year with a production guidance of 857,000 equivalent gold ounces but has since re-estimated its guidance to around 786,000 ounces of expected production for the year.

The recalculation was the result of suspensions at the Canadian Malarctic and the Cerro Mondo mines, following the start of the coronavirus pandemic.

Thus far, Yamana gas produced 161,141 ounces of gold for the second quarter, and 2.01 million ounces of silver. The equivalent gold ounces produced for the quarter sits at 183,582.

The company stated that production from most individual mines exceeded its planned outputs for the quarter, resulting in better-than-expected production results.

This was done on the back of what Yamana Gold has called exceptional operational performances from its Jacobina, El Penon, Canadian Malarctic and Minera Florida mines.

The company also expects to see further improvements in production, better costs and significantly improved cash flows in the second half of 2020. Furthermore, 54 per cent of the company’s production is expected to occur in the second half of this year.

The company also drew down C$200 million in credit in March, when the pandemic first hit.

The company has revealed that in June it paid back $100 million of that debt, leaving it will an outstanding debt from that loan $100 million. The company’s net debt currently sits at just below $769 million, and it expects to repay the outstanding $100 million loan before the end of the year.

Yamana Gold (YRI) is up 1.7 per cent and is trading at $7.62 per share at 10:00 am EST. 

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