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Yamana Gold Inc. (AUY)

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Previous Close4.8900
Open4.8700
Bid0.0000 x 29200
Ask0.0000 x 34100
Day's Range4.5600 - 4.8500
52 Week Range2.2300 - 7.0200
Volume3,322,465
Avg. Volume14,957,067
Market Cap4.417B
Beta (5Y Monthly)1.65
PE Ratio (TTM)37.93
EPS (TTM)0.1210
Earnings DateN/A
Forward Dividend & Yield0.07 (1.40%)
Ex-Dividend DateDec 30, 2020
1y Target Est3.92
  • Yamana Gold Provides 2021-2023 Guidance and Ten-Year Overview
    GlobeNewswire

    Yamana Gold Provides 2021-2023 Guidance and Ten-Year Overview

    TEN-YEAR PRODUCTION OVERVIEW TEN-YEAR PRODUCTION OVERVIEW TORONTO, Jan. 25, 2021 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or the “Company”) herein provides 2021, 2022, and 2023 production guidance, 2021 cost guidance, and its 10-year production overview. The following table presents the Company's total gold, silver and gold equivalent ounces ("GEO") production expectations in 2021, 2022 and 2023. The Company notes that it guides on GEO production and costs based on a particular assumption of gold and silver prices. Although underlying gold and silver production does not change with the fluctuation in gold and silver prices, the change in the GEO ratio from such fluctuations may result in a different GEO production than that guided. The Company looks at production within a normal range of +/- 3%, and the guidance values noted below reflect the mid-point of this production range for the 2021-2023 period. The production profile for 2021 to 2023 shows sequential growth in gold production. Several growth opportunities are available, and in the near and medium-term the Company remains focused on optimizing the existing portfolio of five operating mines while also advancing studies for various expansion projects and longer term development assets. The Company expects to continue its established trend of delivering stronger production in the second half of the year, with approximately 53% of production slated for the second half, along with quarterly sequential increases in production. (000's ounces)2020 Actual2021Guidance2022Guidance2023GuidanceTotal gold production (i)780862870889Total silver production10,36610,0009,3608,000Total GEO production (i)9011,0001,0001,000 (i) GEO assumes gold ounces plus the equivalent of silver ounces using a ratio of 72:1 for 2021, 2022 and 2023. Included in full year 2020 production figures are 18,929 gold ounces of pre-commercial production, related to the Company's 50% interest in the Canadian Malartic mine's Barnat deposit. Pre-commercial production ounces are excluded from sales figures, although pre-commercial production ounces that were sold during their respective period of production had the corresponding revenues and cost of sales capitalized to mineral properties. The following table presents mine-by-mine production results for Yamana Mines for 2020 and expectations for 2021. (000's ounces)Gold SilverGEO2020Actual(ii)2021Guidance2020 Actual2021Guidance2020 Actual2021GuidanceCanadian Malartic (50%) (i)284350--284350Jacobina178175--178175Cerro Moro67905,4495,500132166El Peñón1611604,9174,500217222Minera Florida9087--9087Yamana Mines 78086210,36610,0009011,000 (ii) Included in full year 2020 production figures are 18,929 gold ounces of pre-commercial production, related to the Company's 50% interest in the Canadian Malartic mine's Barnat deposit. Pre-commercial production ounces are excluded from sales figures, although pre-commercial production ounces that were sold during their respective period of production had the corresponding revenues and cost of sales capitalized to mineral properties. Cost Outlook The Company anticipates that it will continue to incur some costs in relation to COVID-19 in the near future. Current expectation of pandemic related costs is that those costs will continue to be incurred during the first half of the year and begin to decrease in the second half of the year with a rollout of vaccinations expected in most countries in which the Company operates. With increasing numbers of the population receiving the vaccine, the Company would expect to see increasing immunity and decreasing caseloads, allowing for gradual easing of our COVID-related controls and associated costs toward the second half of 2021 as noted. Total costs are not expected to exceed approximately $20 million for the year. Similarly to 2020, COVID-19 costs are disclosed as part of mine operating earnings as temporary suspension, standby and other incremental COVID-19 costs and are excluded from cash costs and all-in sustaining costs (“AISC”). The expected decline in COVID-19 costs throughout the upcoming year also corresponds to the Company’s customary lower second half of the year costs, associated with higher production levels. The following table presents guidance ranges for 2021. (In US dollars)Cash costs per GEO sold(iii)2021 GuidanceAISC per GEO sold (iii) (iv)2021 GuidanceCanadian Malartic (50%) (i)635 - 675850 - 885Jacobina565 - 600735 – 765Cerro Moro790 - 8351,175 – 1,225El Peñón620 - 660835 - 870Minera Florida740 - 7851,065 – 1,105Yamana Mines655 - 695980 – 1,020 (iii) A cautionary note regarding non-GAAP financial measures and additional subtotals in financial statements are included in Section 12: Non-GAAP Performance Measures of this MD&A. Total cost of sales per GEO sold will be provided in conjunction with the Company’s annual results.(iv) Mine site AISC includes cash costs, mine site general and administrative expense, sustaining capital, capitalized exploration and expensed exploration. Consolidated AISC incorporates additional non-mine site costs including corporate general and administrative expense. The following table presents expansionary capital, sustaining capital and exploration spend expectations by mine for 2021: (In millions of US Dollars)Expansionary capital2021 GuidanceSustaining capital 2021 GuidanceTotal exploration2021 GuidanceCanadian Malartic (50%)$17.0$73.0$15.0Jacobina 29.0 19.0 12.0Cerro Moro 1.0 40.0 18.0El Peñón 1.0 31.0 18.0Minera Florida 17.0 19.0 11.0Other capital 1.0 1.0 -MARA (i) 15.0 - -Wasamac 5.0 - 11.0Generative exploration - - 18.0Other exploration and overhead - - 7.0Total$86.0$183.0$110.0 (i) Related to Yamana’s ownership in MARA of 56.25% Approximately 70% of the Company’s expected exploration spend is capital in nature. Capital expenditure values for 2021 do not include the cost to add to long-term ore stockpile balances at Canadian Malartic. These costs are estimated at $15.0 million for 2021 compared to $5.9 million for 2020, both on a 50% basis. The following table presents other expenditure expectations for 2021: (In millions of US Dollars)2021 GuidanceTotal DDA$ 470.0 – 500.0 Cash based G&A$72.0 Cash income taxes paid (i)$180.0 –200.0 (i) 2021 guidance for cash taxes paid is based on metal prices per the guidance assumption table. Further, cash taxes paid consider payments made in relation to prior years, as in certain jurisdictions, payments and true-ups related to a fiscal year’s taxes are settled in the next fiscal year. Guidance Assumptions Key assumptions, in relation to the above guidance, are presented in the table below. 2021 Sensitivity Impact 2020 Actual(i)2021 Guidance Change AISC/GEO EBITDA($Ms)Change inCash($Ms)GEO Ratio88.8672.00 Gold$1,770$1,800$50$5 41.034.0Silver$20.51$25.00$1.00($6)10.08.0USD-CAD1.341.285%($6)2.07.0USD-BRL5.165.255%($2)1.03.0USD-ARS70.65108.005%($2)1.02.0USD-CLP7927255%($4)3.04.0 (i) Actual metal prices and exchange rates shown in the table above are the average metal prices and exchange rates for the year ended December 31, 2020. The Company may enter into forward contracts or other risk management strategies, from time to time, to hedge against the risk of an increase in the value of foreign currencies in the jurisdictions in which the Company operates. Please refer to the Foreign Exchange Hedging Section of this release for further details. MINE BY MINE NEAR-TERM OUTLOOK Canadian Malartic (50%) Canadian Malartic exceeded its revised 2020 guidance, producing 284,000 ounces of gold. Production last year was impacted by COVID-19 related restrictions on mining in Quebec and is forecast to increase in 2021 to 350,000 ounces, with AISC projected to decline to $850-$885 per ounce from $945 per ounce in 2020. Mining is transitioning from the Canadian Malartic pit to the Barnat pit, which is now in commercial production, and 70% of the total tonnes mined in 2021 are expected to come from Barnat. The Canadian Malartic pit will be depleted in the first half of 2023, and waste rock and tailings will be deposited into the pit beginning in 2023. The operation continues to advance the underground project, which consists of the East Gouldie, Odyssey, and East Malartic zones, (collectively known as the Odyssey project). Key development milestones over the next three years include the development of a ramp into the Odyssey, East Malartic, and East Gouldie zones, which will allow for tighter definition drilling to further expand the mineral resource base, along with headframe construction and shaft sinking. First production from Odyssey is expected in 2023. These milestones are included in the production and cost outlooks provided above. A preliminary economic assessment for the project is expected to be completed in February 2021. Jacobina The Jacobina mine continues to be a standout performer, consistently exceeding expectations. Production in 2021 is forecast to be in a similar range to the all-time high recorded in 2020 at low AISC of $735-$765 per ounce. The operation exceeded the targeted throughput rate of 6,500 tonnes per day (“tpd”) for the Phase 1 expansion, and it continues to identify and implement additional processing plant optimizations to further increase throughput, improve recoveries, and reduce costs. Beyond further optimizations, the Feasibility Study for Jacobina’s Phase 2 expansion plans to increase throughput to 8,500 tpd and raise annual production to 230,000 ounces remains on track for mid-2021. In a separate initiative, Jacobina is evaluating the installation of a backfill plant that would allow up to 2,000 tpd of tailings to be deposited in underground voids. In addition to reducing the mine’s environmental footprint, a backfill plant would extend the life of the mine’s existing tailings storage facility and improve mining recovery, resulting in increased conversion of mineral resources to mineral reserves. El Peñón Overall GEO production in 2021 is forecast to be in line with production in 2020, but improvements to cost structure are expected to be realized in 2021, with cash costs expected to range between $620-$660 per GEO and AISC(1) forecast at between $835-$870 per GEO. The mine’s current production rate—the result of the right-sizing of the operation initiated in late 2016—increased cash flow while ensuring the long-term sustainability of the mine. Exploration successes over the last two years has resulted in an increase in mineral reserves, unlocking opportunities to incrementally increase production by leveraging excess processing capacity at El Peñón. The operation can process approximately 4,200 tpd, which represents upside of 20-30% above currently budgeted levels, with no additional capital expenditures required. 1. Refers to a non-GAAP financial measure. Minera Florida Minera Florida exceeded its full year production guidance, posting its highest production level since 2010 and the second highest since entering production in 1986.(1) Gold production is forecast to be at a similar level in 2021. The strategy at Minera Florida is to extend mine life and unlock opportunities for increased annual gold production following an approach similar to the approach taken at Jacobina. This includes focusing on mineral reserve development and generating an inventory of prepared mining areas to increase operational flexibility. The short-term focus is to achieve consistent throughput of 74,500 tonnes per month (“tpm”) from the underground mine while continuing improvements in the mine that will increase feed grade to align with mineral reserve grade and set the stage for further expansions. 1. Excluding gold production from the reclamation of historic tailings. Cerro Moro Production and costs in 2020 at Cerro Moro were significantly impacted by COVID-19 related restrictions on travel and work rosters. The mine and processing plant are currently running at full capacity, though COVID-19 continues to present a risk of further disruptions, particularly during the first half of the year. Exploration drilling and underground capital development were also delayed by COVID-19 in 2020. Hence, Cerro Moro is planning higher production in 2021, but will ramp-up gradually throughout the year as it mines new underground levels. Exploration drilling continues in the core mine area at Cerro Moro with positive results and opportunities to convert mineral resources into mineral reserves and generate new high-grade discoveries. The operation is evaluating construction of a heap leach operation, a lower-cost processing alternative that would allow for the processing of lower-grade mineral reserves, potentially extending mine life. The evaluation is in the early stages with a preliminary study completed and metallurgical lab testing currently underway. TEN-YEAR PRODUCTION OVERVIEW A graphic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4e5ea3bd-e322-4966-b94e-7c8baf50adfa 1. Production guidance for the period 2021 – 2023 reflects the mid-point of the production range of +/- 3%.2. Production from 2024 – 2030 is illustrative production profile.3. GEO assumes gold plus silver at a ratio of 72:1. Base Case Yamana has a strong 10-year base case outlook with a sustainable production platform of 1 million GEO per year through 2030. Production will be underpinned by continued operational success at the Company’s existing operations, which have consistently replaced mineral reserves above depletion. Robust exploration results are expected to drive incremental production growth at Minera Florida, which has a low-cost opportunity to increase capacity at its existing processing plant. The long-term strategy at Minera Florida is to increase monthly throughput from 74,500 tpm to 100,000 tpm with a corresponding production increase of up to 120,000 ounces of gold per year at AISC below $1,000 per ounce. At El Peñón, which recently completed its twenty-first year of production, the Company has a high degree of confidence that it will continue to replace mineral reserves through new discoveries and infill drilling on several major veins, thereby maintaining mine life visibility for at least another 10 years. The operation is targeting annual production of 260,000 GEO at AISC below $900 per GEO, with the production increase to be supported by the mine’s existing processing capacity of up to 4,200 tpd and no additional capital spending required. The base case assumes continuing exploration success at Cerro Moro, which will support a mine life extension. The Company is investing in exploration drilling on its large mine property and surrounding area, which together exceed 300,000 hectares, with efforts currently focusing on both the core mine area and new mineralized zones close to existing mineral reserves. Further upside is available from significant mineralization that has been identified at below current mineral reserve cut-off grades that could potentially be mined economically using lower-cost heap leach processing that would occur in parallel with the existing processing plant. The base case also includes the Canadian Malartic underground project, which represents the next evolution for Canada’s largest gold mine. First production is expected in 2023 from the Odyssey South zone with the Upper East Gouldie zone expected to come online in 2027. The most recent underground mineral resource for the project, which was published in February 2020, showed more than 10 million ounces of gold (100% basis), including 9,596,000 ounces of inferred mineral resources (100% basis) and 830,000 ounces of indicated mineral resources (100% basis). In the interim, exploration results have been exceptional, improving economics and increasing confidence that the underground project will be a multi-hundred thousand ounce annual producer for decades. The Company will provide an updated mineral resource and further details on the development for the underground project when it reports its fourth quarter and full year results on February 11, 2021. The base case scenario also includes the Jacobina Phase 2 expansion, which will increase throughput to 8,500 tpd and raise annual production to 230,000 ounces, a 28% increase from current levels. In addition, the Company plans to implement a Phase 3 expansion at Jacobina which, for a modest cost, would increase throughput to 10,000 tpd without the need for additional grinding capacity and raise annual production to 270,000 ounces by approximately 2027. The Company is well-positioned to fund all exploration, expansions, projects and opportunities identified in its guidance and decade-long outlook using available cash and cash flow from operations. Based on current forecasts, annual expansionary capital expenditures are expected to be in the range of $100 million and $125 million, on average, over the next four years, the result of which is that the Company will be well-positioned to manage all its capital allocation priorities, objectives and plans, including payment and increases in dividends. The Company forecasts that it should be able to sustain its dividend at the current rate even if the price of gold were to decline to significantly lower levels, and should be able to support and increase its dividend at the current price of gold as its cash balances increase. The Company notes that in addition to its cash balances and cash flows, it also has interests in securities, instruments and assets that can and, over time, will likely be monetized, which will further increase cash balances for redeployment to the Company’s capital allocation priorities, objectives and plans. Upside Case The Company’s upside case is for annual production to trend above 1 million GEO by mid-decade, reaching 1.2 million GEO by approximately 2028. The upside case is underpinned primarily by the newly acquired Wasamac project—a future underground mine located in Quebec’s Abitibi region just 100 kilometres away from Canadian Malartic. The project, which is expected to enter production in 2025, currently has a mineral reserve base of 1.8 million ounces of gold. Based on the 2018 Feasibility Study conducted by Wasamac’s previous owner, Monarch Gold, production is projected at 160,000 ounces of gold per year at a low AISC of $635 per ounce. Yamana believes there is considerable upside for future exploration success and mineral resource conversion, with the deposit remaining open at depth and along strike. The Company will target increasing the mineral inventory and perform optimizations to enhance the project’s value, advance engineering, and de-risk execution, leveraging the Company’s technical expertise and adhering to its disciplined capital approach. Additional Long-Term Upside The Company has a number of compelling development and exploration stage projects in its pipeline with the potential to drive significant long-term production upside towards the end of the current decade and beyond. These include the MARA project, one of the largest copper-gold projects in the world; the Suyai Project, a large gold project in Chubut Province, Argentina, that is projected to reach production of up to 250,000 ounces annually in its first eight years; and a number of advanced exploration projects in the Company’s generative exploration program, including Lavra Velha, Monument Bay, Jacobina Norte, and Borborema. Assuming just two of these projects, MARA and Suyai, are constructed within the next 10 years, annual production would almost double. FOREIGN EXCHANGE HEDGING As at December 31, 2020, the Company had zero-cost collar contracts, which allow the Company to participate in exchange rate movements between two strikes, as follows: Average call price(i)Average put strikeprice (i)Total (ii)Brazilian Real to USD January 2021 to June 2021R$3.85R$4.31R$ 93.0 million (i) R$ = Brazilian Reais(ii) Evenly split by month. In addition, as at December 31, 2020, the Company had forward contracts as follows: Average forward price (i)Total (ii)Brazilian Real to USD January 2021 to June 2021R$4.07R$ 93.0 million (i) R$ = Brazilian Reais(ii) Evenly split by month. Subsequent to December 31, 2020, the Company entered into new zero-cost collar contracts, which allow the Company to participate in exchange rate movements between two strikes, as follows: Average call price (i)Average put strikeprice (i)Total (ii)Brazilian Real to USD July 2021 to December 2022R$5.25R$5.71R$ 288.0 million (i) R$ = Brazilian Reais(ii) Evenly split by month. Additionally, the Company entered into new forward contracts as follows: Average forward price (i)Total (ii)Brazilian Real to USD July 2021 to December 2022R$5.49R$ 288.0 millionChilean Peso to USD February 2021 to December 2021CLP 736.80CLP 102.3 billionCanadian Dollar to USD February 2021 to December 2021C$1.27C$220.0 million (i) R$ = Brazilian Reais, CLP = Chilean Pesos, C$ = Canadian Dollars(ii) Evenly split by month. CORPORATE UPDATE CALL AND WEBCAST The Company will provide a corporate update webcast on Tuesday, January 26, 2021, from 10:00 am-12:00 pm ET (3:00-5:00 pm GMT) during which it will expand on its guidance and decade-long outlook, share its strategic priorities, and provide an operational update. The event will be accessible via conference call or webcast with further details below. Analysts and investors who intend to attend or who may not be able to attend the webcast are advised that a detailed presentation which will be relied upon for the webcast is available and can be accessed on the Company’s website at www.yamana.com. Details of Corporate Update Conference Call:Toll Free (North America):1-800-898-3989Toronto Local and International:416-406-0743Toll Free (UK)Passcode: Webcast:00-800422288357015536#www.yamana.com Conference Call Replay Toll Free (North America):1-800-408-3053Toronto Local and International:905-694-9451Toll Free (UK)Passcode:00-800336630524698827# The conference call replay will be available from January 26, 2021, until 11:59 p.m. ET (5:00 am GMT) on February 26, 2021. About YamanaYamana Gold Inc. is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in the Americas. FOR FURTHER INFORMATION PLEASE CONTACT:Investor Relations416-815-02201-888-809-0925Email: investor@yamana.com FTI Consulting (UK Public Relations)Sara Powell / Ben Brewerton +44 203 727 1000Email: Yamana.gold@fticonsulting.com Credit Suisse (Joint UK Corporate Broker)Ben Lawrence / David Nangle Telephone: +44 (0) 20 7888 8888 Joh. Berenberg Gossler & Co. KG (Joint UK Corporate Broker)Matthew Armitt / Jennifer Wyllie / Detlir EleziTelephone: +44 (0) 20 3207 7800 Peel Hunt LLP (Joint UK Corporate Broker)Ross Allister / David McKeown / Alexander AllenTelephone: +44 (0) 20 7418 8900 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference “forward-looking statements” and “forward-looking information” under applicable Canadian securities legislation and within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to information with respect to the Company’s strategy, plans or future financial or operating performance, changes to its dividend policy and dividend reporting, the implementation of a cash reserve fund in order to sustain dividend level independent of gold prices, the Company’s expectation that it will continue to generate cash flow and execute on monetization initiatives, some of which will support the cash reserve fund, or updates regarding mineral reserves and mineral resources. Forward-looking statements are characterized by words such as “plan", “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include unforeseen impacts on cash flow, monetization initiatives, and available residual cash, an inability to maintain a cash reserve fund balance that can support current or future dividend increases, the outcome of various planned technical studies, production and exploration, development, optimizations and expansion plans at the Company's projects, changes in national and local government legislation, taxation, controls or regulations and/or change in the administration of laws, policies and practices, and the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, silver and zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso and the Argentine Peso versus the United States Dollar), the impact of inflation, possible variations in ore grade or recovery rates, changes in the Company’s hedging program, changes in accounting policies, changes in mineral resources and mineral reserves, risks related to asset dispositions, risks related to metal purchase agreements, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development, unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisors and consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, risks relating to joint venture or jointly owned operations, title disputes or claims, limitations on insurance coverage, timing and possible outcome of pending and outstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, as well as those risk factors discussed or referred to herein and in the Company's Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company’s Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives and may not be appropriate for other purposes.

  • GlobeNewswire

    Yamana Gold Announces Preliminary 2020 Fourth Quarter and Full Year Production, Financial, and Corporate Results

    TORONTO, Jan. 25, 2021 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the Company”) today announced fourth quarter and full year preliminary 2020 production, financial, and corporate results. The strong results and strategic advances delivered during the year, and most recently the fourth quarter, further enhance the Company’s long-term resilience and growth prospects. Following this announcement, the Company will be providing its production guidance for 2021 through 2023 along with a 10-year production overview and strategic plan, which should be read in conjunction with this announcement. Yamana Gold President and Chief Executive, Daniel Racine, commented: “Two thousand twenty will be remembered as a year that challenged every dimension of our lives. We are focused on keeping our people and communities safe, sustaining our operations, and improving and growing our portfolio to further enhance the robustness and resilience of our business. We have benefitted from being a high cash generative business starting 2021 in a strong financial position, with cash balances at year end of $428 million, and net debt well below the level as at the beginning of year, with a reduction of net debt of $323 million. We had a very strong year for cash flow with a particularly strong cash flow finish in the fourth quarter, with cash flow in the fourth quarter exceeding the cash flow of the preceding quarter and the average of the three preceding quarters. Despite the challenging global operational environment, production outperformed expectations over the course of the year in almost all cases, with Jacobina, Canadian Malartic, El Peñón, and Minera Florida all producing above plan. While full year production of 901,155 gold equivalent ounces (“GEO”) was within our guidance tolerances, we had hoped to reach a higher level of production. COVID-19 related restrictions imposed in Argentina in December meant production at Cerro Moro was below our expectations although operational performance in December still exceeded the monthly average for the year. We remain confident in Cerro Moro as we recognize that it would have met our production goals in the quarter except for the unexpected, although necessary, pandemic related restrictions imposed in December. We note that these restrictions were the result of infections in the broader sense rather than directly affecting our operation. While we anticipate there may be some short-term operational challenges in Argentina over the next few months due to COVID-19, we expect to return to business as usual as the national vaccination program ramps up. We remain committed to our strategy of managing and growing a diversified portfolio in rules based and politically safe jurisdictions in the Americas, maximizing cash flow and creating financial resilience and maximize cash returns to shareholders by dividends as part of a broader capital allocation approach.” PRODUCTION HIGHLIGHTS Fourth quarter gold equivalent ounce (“GEO”) production of 255,361 GEO(1), including 221,659 ounces of gold and 2.59 million ounces of silver, with production during the quarter exceeding sales by over 7,000 ounces of gold due to timing of sales which is expected to normalize during 2021.Full year production of 901,155 GEO(1), including 779,810 ounces of gold and 10.37 million ounces of silver, which exceeds original guidance for the year for 890,000 GEO(1), and which, while below the set point of revised guidance of 915,000 GEO(1), was well within the plus or minus three per cent guidance range(2) set by the Company to account for COVID-19 related uncertainties (with all of the difference attributable to further changes to COVID-19 restrictions imposed in Argentina near the end of the year which impacted production at Cerro Moro).GEO(1) production for the year at Jacobina, El Peñón, Canadian Malartic, and Minera Florida were all well above plan and, notwithstanding the COVID-19 restrictions imposed near the end of the year in Argentina, GEO production at Cerro Moro in December was strong, exceeding the monthly average for the year.At Jacobina, production reached an all-time high and increased for the seventh consecutive year, and annual production at Minera Florida reached its highest level since 2010 and the second highest total since the mine entered production in 1986.(3) Fourth Quarter 2020 Preliminary ProductionFull Year 2020 Preliminary ProductionGEO(1) Production (oz.)255,361901,155Gold Production (oz.)221,659779,810Silver Production (oz.)2,586,66210,365,662 GEO includes gold plus silver at a ratio of 76.82 and 88.86 for the fourth quarter of 2020 and full year 2020, respectively.As stated in Yamana’s April 30, 2020, press release, the Company looked at production guidance within a range of plus or minus three per cent for the 2020 period. While the Company normally provides a smaller guidance range, the Company increased the range due to the uncertainties presented by COVID-19.Excluding gold production from the reclamation of historic tailings. FINANCIAL HIGHLIGHTS The Company continued to generate strong cash flows during the quarter, further strengthening its cash balances and balance sheet.Operating cash flow before net change in working capital for the quarter is expected to be the highest level by quarter for the year, exceeding operating cash flow before net change in working capital for the prior quarter of $199 million, and the prior three quarter average of $160 million, significantly supplementing the accumulated operating cash flow before net change in working capital for the prior three quarters of $481 million.Net debt declined further, by approximately $53 million from the third quarter, for a total decrease of $323 million for the year. Net debt reduction was impacted, as planned, by higher capital expenditures in the quarter than the preceding quarters as the result of timing caused by COVID-19 related delays, interest payments which are customarily paid in the second and fourth quarters, working capital movements associated with timing of collection of recoverable indirect tax credit and payments associated with prepaid expenditures and advances, and the working capital impact of production exceeding sales, which will normalize in 2021.Cash balances at year end were approximately $428 million after repayment of the drawn, but unused, revolving credit amount of $100 million (additional cash balances in excess of $220 million acquired on the integration of the Agua Rica project with the Minera Alumbrera plant and infrastructure, which resulted in the formation of the new MARA project, are not included in the cash balance number above, as they are intended to be used for the MARA project). CORPORATE HIGHLIGHTS A successful listing on the London Stock Exchange, offering investors a unique opportunity to access exposure to a gold mining company with a differentiated portfolio of high quality assets in the Americas.Acquired the Wasamac project and Camflo property from Monarch Gold.Completed the integration of the Agua Rica project with the Minera Alumbrera plant and infrastructure, which together are now known as the MARA project.The Company completed its exploration program ahead of schedule, notwithstanding delays caused by COVID-19, positioning Yamana well for continued growth over the medium to long-term.While the Company will update mineral reserves and mineral resources when it publishes its year-end results on February 11, 2021, overall mineral reserves and mineral resources are expected to be comparable to what was mined in 2020. Exploration at El Peñón and Jacobina are expected to fully replace depletion for the third year in a row, while continuing to demonstrate growth potential with new mineral resources.A second year of strong mineral resource growth at the Canadian Malartic underground project is also expected, demonstrating excellent long-term production potential. OPERATIONAL HIGHLIGHTS Jacobina produced 44,165 ounces of gold during the fourth quarter and an all-time high 177,830 ounces for the full year. It was the seventh consecutive year of increasing production, a trend that is expected to continue in the coming years. Successful infill and exploration drilling in the Canavieiras and João Belo sectors during 2020 continues to generate significant growth potential.El Peñón produced 55,529 GEO during the fourth quarter, including 43,512 ounces of gold and 922,954 ounces of silver. For the year, the operation produced 216,749 GEO, including 160,824 ounces of gold and 4.92 million ounces of silver. Mine sequencing in the fourth quarter resulted in lower gold feed grades but higher silver feed grades. Production is expected to shift back to higher gold grade sectors in 2021. Strong results from infill drilling on several major veins, including La Paloma and Pampa Campamento, are expected to provide new mineral reserves, while the discovery of the Colorada Sur vein provides an excellent base for further resource expansion.Canadian Malartic produced 86,371 ounces of gold (50% basis) during the quarter and 284,317 ounces (50% basis) for the year, the latter of which is nearly 10,000 ounces higher than original guidance provided in April. The operation processed a record 62,000 tonnes per day during the fourth quarter. Mining is transitioning from the Canadian Malartic pit to the Barnat pit, which is now in commercial production, and 70% of the total tonnes mined in 2021 are expected to come from Barnat.Minera Florida continued to perform exceptionally well, producing 26,352 ounces of gold during the quarter and 89,843 ounces for the year. Annual production at Minera Florida was the highest since 2010 and the second highest total since the mine entered production in 1986.(3) The operation continued to increase throughput at stable grades in the latest quarter, which reduced costs. Costs are expected to continue declining in 2021.Cerro Moro produced 42,943 GEO during the quarter, including 21,259 ounces of gold and 1,663,708 ounces of silver. For the year, the operation produced 132,415 GEO, including 66,995 ounces of gold and 5,448,561 ounces of silver. Fourth-quarter production was impacted by the high number of COVID-19 cases in Argentina, including an increase in cases in communities near the operation during the quarter. While the mine operated continuously during the quarter, travel protocols were tightened and rosters significantly reduced to protect the health and safety of employees and communities, especially near the end of the year. While production at Cerro Moro was below budget, production in the fourth quarter was the highest of the year and production in December was 15,121 GEO, which represents a significant improvement over prior months and quarters. Operational challenges related to COVID-19 are expected to continue in the first half of 2021, but the Company expects the situation to normalize as the vaccination program ramps up in Argentina. Positive infill drilling results at Martina and Naty are expected to contribute to new mineral reserves while several high-grade exploration intercepts in the core mine area have provided new discoveries for further exploration and potential growth. Mine-by-MineFourth Quarter 2020 Preliminary ProductionFull Year 2020 Preliminary ProductionGold (oz.) El Peñón43,512160,824Canadian Malartic (50%)86,371284,317Jacobina44,165177,830Cerro Moro21,25966,995Minera Florida26,35289,843Total Yamana 221,659779,810 Silver (oz.) El Peñón922,9544,917,101Cerro Moro1,663,7085,448,561Total Yamana 2,586,66210,365,662 Costs for the second half of the year are expected to be above the guided range of $1,020 to $1,060 per GEO. Costs were predominantly impacted by operational matters associated with the pandemic, particularly at Cerro Moro, which reduced production in relation to the revised guidance and consequently unitary costs assumed at those production levels. More detailed information relating to production and costs along with financial results, mineral reserve and mineral resource estimates will be provided on February 11, 2021. ADDITIONAL FINANCIAL CONSIDERATIONS – POTENTIAL IMPAIRMENT AT CERRO MORO AND POTENTIAL IMPAIRMENT REVERSAL AT EL PEÑÓN As required by International Financial Reporting Standards ("IFRS"), an assessment is made at each reporting date if indicators of impairment or impairment reversal are present for the Company’s assets, defined as cash generating units (“CGU”). In the event indicators are present, the carrying book value of these long-lived assets are compared to their estimated recoverable amounts. Recoverable amounts for operating mines are based on the estimated discounted future cash flow projections of that CGU, along with any value related to exploration potential of the mine and exploration land concession value. Any book value in excess of the recoverable amount in that comparison is impaired and reflected as a non-cash adjustment in the income statement in the period it is identified. Conversely, when an impairment has been previously taken on a CGU, and impairment reversal indicators are present, the same test is performed. If the recoverable value exceeds its current book value, a reversal of a previously taken impairment would be recognized. This was the case with the Jacobina mine. While the mine was impaired in 2014, in 2018, subsequent to improvements related to increased mineral reserves and mineral resources, meaningful operational enhancements, reduction in costs, and an increase in operating flexibility, the impairment was reversed. IFRS does not allow the write-up of assets unless it is a reversal of a prior impairment, however the reversal cannot exceed original book value, adjusted for depreciation that would have otherwise been taken had the impairment not occurred. As such, there may be assets whose recoverable amounts are well in excess of their respective carrying values; however IFRS does not allow for the recognition of this intrinsic value. The Company also references external consensus views of net asset values to assess the reasonableness of carrying values. For the fourth quarter of 2020, the Company believes there are indicators of impairment for Cerro Moro driven by the following: Country-specific matters such as the announcement on December 30, 2020, of the change to the export tax in Argentina to 4.3%, and its indefinite extension.Expected lower annual production in comparison with prior year guidance and expectations, particularly in 2021. A higher cost structure than previously anticipated and consistent with current costs being observed in the operation, which have exceeded those in the Company’s budget and guidance due to general cost pressures and inefficiencies.General operational challenges in relation to COVID-19.Delays in reaching previously targeted exploration results and mineral reserve and mineral resource additions. Despite promising recent results in core areas of the mine and newly discovered areas, the Company has been delayed in its goal of increasing mineral reserves and mineral resources in the operation. In contrast, the Company believes there are indicators of impairment reversal for El Peñon, which: Had a standout year and solid fourth quarter, with prolonged and sustained high production levels. Implemented operational improvements that have led to sustained cost reductions.Had significant exploration successes throughout the year. Impairment and impairment reversal testing for the period has not yet been concluded, and final results will be addressed in the Company's year-end financial statements. However, the Company currently anticipates that it will record a net pre-tax impairment reversal with the reversal amount at El Peñón exceeding the impairment amount at Cerro Moro. CORPORATE UPDATE CALL AND WEBCAST The Company will provide a corporate update webcast on Tuesday, January 26, 2021, from 10:00 am-12:00 pm ET (3:00-5:00 pm GMT) during which it will expand on its guidance and decade-long outlook, share its strategic priorities, and provide an operational update. The event will be accessible via conference call or webcast with further details below. Analysts and investors who intend to attend or who may not be able to attend the webcast are advised that a detailed presentation which will be relied upon for the webcast is available and can be accessed on the Company’s website at www.yamana.com. Details of Corporate Update Conference Call: Toll Free (North America):1-800-898-3989Toronto Local and International:416-406-0743Toll Free (UK)Passcode: Webcast:00-800422288357015536#www.yamana.com Conference Call Replay Toll Free (North America):1-800-408-3053Toronto Local and International:905-694-9451Toll Free (UK)Passcode:00-800336630524698827# The conference call replay will be available from January 26, 2021, until 11:59 p.m. ET (5:00 am GMT) on February 26, 2021. About YamanaYamana Gold Inc. is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in the Americas. FOR FURTHER INFORMATION, PLEASE CONTACT:Investor Relations+1 416-815-02201-888-809-0925Email: investor@yamana.com FTI Consulting (UK Public Relations)Sara Powell / Ben Brewerton +44 203 727 1000Email: Yamana.gold@fticonsulting.com Credit Suisse (Joint UK Corporate Broker)Ben Lawrence / David Nangle Telephone: +44 (0) 20 7888 8888 Joh. Berenberg Gossler & Co. KG (Joint UK Corporate Broker)Matthew Armitt / Jennifer Wyllie / Detlir Elezi Telephone: +44 (0) 20 3207 7800 Peel Hunt LLP (Joint UK Corporate Broker)Ross Allister / David McKeown / Alexander AllenTelephone: +44 (0) 20 7418 8900 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference “forward-looking statements” and “forward-looking information” under applicable Canadian securities legislation and within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to information with respect to the Company’s strategy, plans or future financial or operating performance, changes to its dividend policy and dividend reporting, the implementation of a cash reserve fund in order to sustain dividend level independent of gold prices, the Company’s expectation that it will continue to generate cash flow and execute on monetization initiatives, some of which will support the cash reserve fund, or updates regarding mineral reserves and mineral resources. Forward-looking statements are characterized by words such as “plan", “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include unforeseen impacts on cash flow, monetization initiatives, and available residual cash, an inability to maintain a cash reserve fund balance that can support current or future dividend increases, the outcome of various planned technical studies, production and exploration, development, optimizations and expansion plans at the Company's projects, changes in national and local government legislation, taxation, controls or regulations and/or change in the administration of laws, policies and practices, and the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, silver and zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso and the Argentine Peso versus the United States Dollar), the impact of inflation, possible variations in ore grade or recovery rates, changes in the Company’s hedging program, changes in accounting policies, changes in mineral resources and mineral reserves, risks related to asset dispositions, risks related to metal purchase agreements, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development, unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisors and consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, risks relating to joint venture or jointly owned operations, title disputes or claims, limitations on insurance coverage, timing and possible outcome of pending and outstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, as well as those risk factors discussed or referred to herein and in the Company's Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company’s Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives and may not be appropriate for other purposes. (All amounts are expressed in United States dollars unless otherwise indicated)

  • GlobeNewswire

    Yamana Gold Completes Acquisition of Wasamac Property and Camflo Property and Mill, and Begins Advancing Wasamac Development Plans

    TORONTO, Jan. 21, 2021 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or the “Company”) is pleased to announce the successful completion of Yamana’s acquisition of the Wasamac property and the Camflo property and mill from Monarch Gold Corporation (“Monarch”) through its acquisition of all of the issued and outstanding shares of Monarch (the “Monarch Shares”) not owned by Yamana under the previously-announced plan of arrangement (the “Arrangement”). In connection with the Arrangement, Monarch completed a spin-out to its shareholders, through newly formed Monarch Mining Corporation (“Monarch Mining”), of its other mineral properties and certain other assets and liabilities. The addition of the Wasamac project to Yamana’s portfolio further solidifies the Company’s long-term growth profile with a top-tier gold project in Quebec’s Abitibi region, a prolific mining district where Yamana has deep operational and technical expertise and experience. Additional details about Wasamac and Yamana’s initial plans for the asset include: Wasamac is located 15 kilometres west of Rouyn-Noranda in the Abitibi region of Quebec adjacent to the Trans-Canada highway and Ontario Northland rail line, and 100 kilometres from the Company’s 50%-owned Canadian Malartic mine.The project consists of a single, continuous shear zone with a consistent grade distribution and wide mining widths, making it amenable to simple, productive, and cost efficient underground bulk mining methods.The geological characteristics of the Wasamac ore body suggest it holds the potential to be an underground mine with the potential to achieve the same scale, grade, production, and costs as Yamana’s successful Jacobina mine in Brazil, and it possesses many parallels to the underground project at Canadian Malartic.The project has existing proven and probable mineral reserves of 1.8 million ounces of gold at 2.56 grams per tonne.(1) (See mineral reserve and mineral resource statement at the end of this press release.) Mineral resources and proven and probable mineral reserves are supported by a Feasibility Study(1) previously completed by Monarch in 2018 (the “Wasamac Feasibility Study”), and Yamana completed independent geological modelling, mineral resources and mineral reserves validations, among other extensive work, as part of its due diligence reviews to ensure greater levels of accuracy. There remains excellent potential for significant future exploration success and mineral resource conversion, with the deposit remaining open at depth and along strike.The currently defined deposit is situated at shallow depths in comparison to other Abitibi mines. Current known mineralization reaches a depth of approximately 800 metres, which offers the opportunity for ramp access at low relative up-front development costs over a relatively short development time frame.Yamana plans to build on the ongoing permitting and social licensing effort carried out by Monarch, applying the Company’s strong ESG framework and best practices, and leveraging the Company’s extensive experience in permitting and proven track record of building strong, respectful, and mutually beneficial relationships with the communities and governments wherever it operates.The Company will target increasing the mineral inventory and perform optimizations to further enhance the project’s value, advance engineering, and de-risk execution, leveraging Yamana’s technical expertise and adhering to the Company’s disciplined capital approach.Building off the work completed to date, Yamana plans to commence an exploration and infill drilling campaign and other studies to refine and expand upon the potential of Wasamac and its development alternatives.The Company plans to open a regional office in the coming months to support community engagement. Completion of the Arrangement Under the terms of the Arrangement, each former holder of Monarch Shares received, in exchange for each Monarch Share held immediately prior to the effective time of the Arrangement: (i) 0.0376 of a Yamana Share; (ii) C$0.192 in cash from Yamana; and (iii) 0.2 of a share of Monarch Mining. In aggregate, Yamana issued 11,608,195 Yamana Shares (the “Consideration Shares”) and approximately C$59.3 million in cash under the Arrangement to former Monarch shareholders as consideration for their Monarch Shares. Upon closing of the Arrangement, existing Yamana shareholders and former Monarch shareholders own approximately 98.8% and 1.2% of the issued and outstanding Yamana Shares, respectively. Monarch shareholders also received shares of Monarch Mining under the Arrangement. Yamana now owns 4,450,000 common shares of Monarch Mining, or approximately 6.7% of the outstanding common shares of Monarch Mining, and is entitled to acquire an additional 2,225,000 common shares of Monarch Mining upon the exercise of previously held Monarch warrants, representing a partially-diluted share ownership in Monarch Mining of approximately 9.8%. Yamana looks forward to participating in the value created from Monarch’s remaining pipeline of development and exploration projects. As Monarch is now a wholly-owned subsidiary of the Company, the Monarch Shares are anticipated to be de-listed from the Toronto Stock Exchange (“TSX”) at the beginning of next week. Yamana will also apply to the applicable securities regulators to have Monarch cease to be a reporting issuer and terminate the entity’s public reporting obligations. This release is being made jointly with Monarch, as Monarch currently remains a reporting issuer. The Company also plans to apply to the Financial Conduct Authority (the “FCA”) and London Stock Exchange plc (the “LSE”) respectively for the Consideration Shares issued under the Arrangement to be admitted to the standard listing segment of the Official List of the FCA and to trading on the main market for listed securities of the LSE (together, “Admission”). It is expected that Admission will become effective at 8:00 a.m. on 27 January 2021. An additional 388,759 Yamana Shares have been reserved for issuance to former Monarch warrantholders on exercise of their warrants. Following the issuance of the Consideration Shares, the Company’s issued share capital now consists of 964,260,851 common shares and the total number of voting rights in the Company is 964,260,851. This figure may be used by Shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change in their interest in, the Company under the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority. Further details regarding the Arrangement are set out in the management information circular of Monarch dated November 30, 2020, which is available on under Monarch’s profile on SEDAR at www.sedar.com. A copy of the early warning report of Yamana in connection with the acquisition of the Monarch Shares is available on SEDAR under Monarch’s SEDAR profile at www.sedar.com and can be obtained by contacting Yamana at the contact information below. Information for Former Monarch Shareholders Pursuant to the Arrangement, former Monarch shareholders are entitled to receive the above-noted cash and Share Consideration for each Monarch Share held prior to closing of the Arrangement. In order to receive such consideration in exchange for Monarch Shares, registered shareholders of Monarch must complete, sign, date and return the letter of transmittal that was mailed to each Monarch shareholder prior to closing. The letter of transmittal is also available under Monarch’s profile on SEDAR at www.sedar.com. For those shareholders of Monarch whose Monarch Shares are registered in the name of a broker, investment dealer, bank, trust company, trust or other intermediary or nominee, they should contact such nominee for assistance in depositing their Monarch Shares and should follow the instructions of such intermediary or nominee. For further details regarding the submission of the letters of transmittal, please refer to the Monarch management information circular dated November 30, 2020 available under Monarch’s profile on SEDAR at www.sedar.com, or questions may be directed to the depositary, Computershare Trust Company of Canada, at 1-800-564-6253 or via email at corporateactions@computershare.com. Mineral Reserve Statement, Wasamac deposit Proven Mineral ReservesProbable Mineral ReservesTotal Proven & Probable TonnesGradeContainedTonnesGradeContainedTonnesGradeContained (000’s)(g/t)oz. (000’s)(000’s)(g/t)oz. (000’s)(000’s)(g/t)oz. (000’s)Gold1,0282.668820,4272.561,67921,4552.561,767 Mineral Resource Statement, Wasamac deposit Measured Mineral ResourcesIndicated Mineral ResourcesTotal Measured & Indicated TonnesGradeContainedTonnesGradeContainedTonnesGradeContained (000’s)(g/t)oz. (000’s)(000’s)(g/t)oz. (000’s)(000’s)(g/t)oz. (000’s)Gold3,9902.5232325,8702.722,26529,8602.702,588 Inferred Mineral Resources TonnesGradeContained (000’s)(g/t)oz. (000’s)Gold4,1602.20294 To view all of the assumptions and the names of qualified persons who prepare the mineral reserve and mineral resource estimates, please refer to the Wasamac Feasibility Study available under Monarch’s profile on SEDAR at www.sedar.com. Qualified Persons Scientific and technical information contained in this news release has been reviewed and approved by Sébastien Bernier (P.Geo and Senior Director, Geology and Mineral Resources). Sébastien Bernier is an employee of Yamana Gold Inc. and a “Qualified Person” as defined by Canadian Securities Administrators’ National Instrument 43-101 - Standards of Disclosure for Mineral Projects. About YamanaYamana Gold Inc. is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in the Americas. FOR FURTHER INFORMATION PLEASE CONTACT:Investor Relations416-815-02201-888-809-0925Email: investor@yamana.com FTI Consulting (UK Public Relations)Sara Powell / Ben Brewerton +44 203 727 1000Email: Yamana.gold@fticonsulting.com Credit Suisse (Joint UK Corporate Broker)Ben Lawrence / David Nangle Telephone: +44 (0) 20 7888 8888 Joh. Berenberg Gossler & Co. KG (Joint UK Corporate Broker)Matthew Armitt / Jennifer Wyllie / Detlir Elezi Telephone: +44 (0) 20 3207 7800 Peel Hunt LLP (Joint UK Corporate Broker)Ross Allister / David McKeown / Alexander AllenTelephone: +44 (0) 20 7418 8900 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference “forward-looking statements” and “forward-looking information” under applicable Canadian securities legislation and within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to, information with respect to the expected timing for the de-listing of the Monarch Shares from the TSX, and Monarch ceasing to be a reporting issuer and the Company’s initial plans for the Wasamac project. Forward-looking statements are characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the ability of the parties to receive, in a timely manner and on satisfactory terms, the necessary regulatory approval and other expectations and assumptions concerning the Arrangement changing; the Company’s plans related to the Wasamac project changing; as well as those risk factors discussed or referred to herein and in the Company’s Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company’s Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. 1. For full details please refer to Monarch’s Feasibility Study titled “Feasibility Study of the Wasamac Project, Rouyn-Noranda, Quebec, Canada” dated December 3, 2018, with an effective date of November 1, 2018, available under Monarch’s profile on SEDAR at www.sedar.com.