- Yamana Mines (TSX:YRI) has reported strong gold and silver production for the three months ending March 31, 2020
- The company’s portfolio of projects yielded a total of 192,238 ounces of gold and 2.73 million ounces of silver
- Yamana’s Cerro Moro mine in Argentina has recommenced operations, although the Canadian Malartic mine in Quebec is still under suspension
- While first quarter production has been promising, second quarter results are likely to be weaker
- Yamana Gold (YRI) is currently up 2.29 per cent to C$4.47 per share, with a market cap of $4.25 billion
Yamana Mines (TSX:YRI) has reported strong gold and silver production for the three months ending March 31, 2020.
Company’s operations in Canada, Brazil, Chile, and Argentina collectively produced 192,238 ounces of gold and 2.73 million ounces of silver.
Yamana’s Jacobina mine in northeast Brazil posted yet another consecutive quarter of record production, with 43,938 ounces of gold. Its El Peñón mine in Chile also exceeded production targets, with 42,230 ounces of gold and 1.355 million ounces of silver.
However, the star producer of the quarter was the Canadian Malartic mine, located in the Abitibi region of Quebec. Jointly owned with Agnico Eagle Mines, the project contributed 64,763 ounces of gold, despite temporarily shutting down on March 24.
The Canadian Malartic mine is still in a suspended state, due to the Quebec Government’s ban on all non-essential businesses. The government planned for the initial suspension period to expire on April 13, but has since extended it until May 4.
Yamana kept the site operationally ready, in preparation for a move back to full-scale production once the ban lifts.
On April 3, the Argentine Government declared mining an essential service, allowing Yamana’s Cerro Moro mine to resume full operations. A gradual return to normal business is now being undertaken, albeit with the implementation of new health, safety, and risk management policies.
While the first quarter of 2020 yielded strong results, the second quarter for the year is likely to be weaker.
Previous forecasts suggested that 46 per cent of production would occur in 2020’s first half, with an even split between first and second quarters. However, with the continued influence of COVID-19, Yamana is now expecting weaker results in the second quarter.
That said, the company is well capitalised, starting 2020 with C$158.8 million in cash and cash equivalents. $200 million has also been drawn down from its $750 million revolving credit facility as a precautionary measure.
Yamana Mines (YRI) is currently up 2.29 per cent to $4.47 per share at 11:39am EST.