TORONTO, July 29, 2021 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the Company”) is herein reporting its financial and operational results for the second quarter of 2021. Strong cash flow and production during the quarter were underpinned by all-time quarterly high production at Jacobina and Canadian Malartic as well as standout quarters from Minera Florida and El Peñón.

In a separate announcement published today, the Company reported significant progress on the Phase 2 expansion of Jacobina as well as strong exploration results that expand the operation’s mineral resource inventory and support the phased expansion, underscoring Jacobina’s exceptional long-term growth potential and ability to further extend strategic mine life. For additional details, please see the press release titled: 'Yamana Gold Reports Significant Progress on Phase 2 Expansion at Jacobina and Strong Exploration Results for the Operation' available on the Company's website at www.yamana.com.

SECOND QUARTER HIGHLIGHTS

Financial Results - Strong Cash Flows Further Strengthen Cash Balances and Balance Sheet Driving Latest Increase in Dividend

Adjusted net earnings(2, 4) were $70.7 million or $0.07 per share basic and diluted.
Earnings before taxes of $87.3 million increased significantly in relation to the comparative period earnings before taxes of $9.7 million.
A non-cash accounting deferred income tax expense of $145.3 million, predominantly associated with an increase in income tax rates in Argentina as applied to certain non-producing assets (namely Suyai and MARA) reduced earnings for the period as under accounting principles, the difference between accounting carrying values and tax basis requires recalculation although not payment of deferred income taxes. Future cash payments associated with the deferred income tax liability are not expected. This has resulted in a net loss(4) for accounting purposes of $43.9 million or $0.05 per share basic and diluted although no cash impact.
Strong cash flows from operating activities of $153.5 million and cash flows from operating activities before net change in working capital(2) of $167.8 million with free cash flow before dividends and debt repayments(2) of $51.2 million.
With production and costs in line with plan for the first half of the year, the Company anticipates stronger production, lower unit costs, and increased cash flow in the third and fourth quarters.
Cash and cash equivalents of $702.0 million, and available credit of $750.0 million, for total available liquidity of approximately $1.5 billion. Cash balances include $223.4 million available for utilization by the MARA Project. The remainder of cash and cash equivalents of $478.6 million, along with further liquidity and incoming cash flows is expected to be more than sufficient to fully fund the Company's business and capital allocation objectives.
As announced today, the Company is raising its annual dividend to $0.12 per share, representing a nearly 15% increase from the previous level and a cumulative increase of 500% from the second quarter of 2019. The dividend increase reflects improved cash flows and increased cash balances, along with other realized and anticipated strengthening of the Company's financial position.
Three months ended June 30
(In millions of United States Dollars) 2021 2020
Net Free Cash Flow (2) $ 96.3 $ 60.3
Free Cash Flow before Dividends and Debt Repayments (2) $ 51.2 $ 38.2
Decrease in Net Debt (2) $ 22.8 $ 101.1
Operating Results - Record Production at Jacobina and Canadian Malartic, Standout Quarters from Minera Florida and El Peñón

Gold equivalent ounce ("GEO")(1) production was 241,341, including gold production of 217,402 ounces, and silver production of 1.63 million ounces.
Jacobina and Canadian Malartic production reached all-time quarterly highs, with total production of 47,503 and 92,106 ounces of gold, respectively.
Minera Florida also had a standout quarter, producing 23,813 ounces of gold.
El Peñón was ahead of plan for the first half of the year and is well positioned for the third and fourth quarters with approximately 57% of annual production for the operation expected in those quarters.
Cerro Moro produced 25,313 GEO(1), a significant increase versus the comparative prior year period of 15,451 GEO(1).
The Company remains well positioned to achieve guidance for the year of 1,000,000 GEO(1), underpinned by strong momentum at Jacobina, Canadian Malartic and Minera Florida, as well as an anticipated strong second half of the year at El Peñón and Cerro Moro, as previously guided.
Cash costs(2) and all-in sustaining costs ("AISC")(2) were $720 and $1,081 per GEO(1), respectively, which were in line with plan and as guided.
Year-to-date costs are in line with or better than plan, with minimal impact from inflationary pressures. The Company expects per GEO(1) costs to improve in the second half of the year as higher production is expected. Inflationary pressures have been mostly absent, although more recently the Company has begun observing inflationary pressures on certain consumables, namely steel which impacts grinding media costs, higher diesel and other oil-based derivative prices, as well as higher ammonium nitrate prices which impact the cost of explosives, among other less significant items. These higher prices, along with stronger foreign exchange rates than those realized earlier in the year, are expected to have an impact on costs and partially offset the per GEO(1) cost decreases resulting from higher production in the second half of the year, were they to persist for the balance of 2021. At this point, while the Company believes it is reasonable to assume that some of these inflationary pressures will persist for the balance of the year, their impact on the Company’s cost structure is uncertain, although it is not expected to be significant.
Health Safety and Sustainable Development

The Company's Total Recordable Injury Rate was 0.58(5) for the first six months of 2021.
Our climate action strategy advanced during the quarter with work to determine the baseline year and data compilation to develop abatement scenarios.
The Company was ranked 31st in Corporate Knights magazine list of Canada’s Best 50 Corporate Citizens and first amongst Canadian mining companies. The Best 50 rankings are generated based on an evaluation of 8 environmental metrics, 5 social metrics, 6 governance metrics and 3 economic factors.
The Company released its annual Material Issues Report and Global Reporting Initiative Report in June. These reports cover a variety of sustainability related topics and provides detailed data on the Company’s strong environmental, social and governance (ESG) performance.
Summary of Certain Non-Cash and Other Items Included in Net Loss (4)

(In millions of United States Dollars, except per share

see & read more on
https://www.yamana.com/English/investors/news/news-details/2021/Yamana-Gold-Reports-Strong-Second-Quarter-2021-Production-Results-and-Cash-Flows-Jacobina-and-Canadian-Malartic-Achieve-All-Time-Quarterly-High-Production-Minera-Florida-and-El-Pen-Post-Standout-Quarters/default.aspx

AND
TORONTO, July 29, 2021 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (“Yamana” or the “Company”) (TSX:YRI; NYSE:AUY; LSE:AUY) announces that it has increased its annual dividend by nearly 15% to $0.12 per share.

Shareholders of record at the close of business on September 30, 2021, will be eligible to receive payment of an increased dividend of $0.03 per share on October 14, 2021. The dividend is an “eligible dividend” for Canadian tax purposes.
This is the Company’s sixth dividend increase since the second quarter of 2019 representing a cumulative increase of 500%.