Gold Fields may sell smaller mines after Osisko acquisition
The Johannesburg-based gold miner is shifting focus to advancing its new Salares Norte mine in Chile.
Yamana Gold Inc. (TSX: YRI) (NYSE: AUY) on Wednesday reported preliminary Q2 production results and updated the company’s full-year guidance to reflect its sale of the Chapada copper-gold mine in April to Lundin Mining.
Second quarter production reached 257,556 gold-equivalent ounces, comprising 232,863 ounces of gold and 2.17 million ounces of silver, which Yamana says exceeded plans.
Yamana attributed the company’s strong second quarter results to the Jacobina mine in Brazil, which recorded its second straight quarter of record gold production (at 38,951 ounces) and 11th straight quarter of production exceeding 30,000 ounces.
Last month, the company lifted its production guidance for the Jacobina mine, while hinting that it is “on the cusp of becoming a major mine” with expansion studies under way that could take production to 170,000 ounces a year by 2021.
Most of Yamana’s other operations — the 50%-owned Canadian Malartic mine in Quebec, the Cerro Moro mine in Argentina and the El Peñón mine in Chile — posted strong Q2 results as well. Only the Minera Florida mine in Chile was negatively impacted by reduced productivity during wage negotiations, the company said.
Yamana remains on track to reach its full-year guidance, which has been reduced to 1.01 million gold-equivalent ounces (including 899,000 oz gold) from 1.06 million (including 940,000 oz gold), to account for the Chapada sale, which closed on July 5. The mine produced 29,019 oz gold and 31,230 Mlb copper in Q2.
