Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Yamana Gold (TSX: YRI; NYSE: AUY) announced Monday that the company’s first quarter production was within guidance. As well, the Cerro Moro operation in Argentina will be resuming operations after a temporary shutdown due to the covid-19 pandemic.
For the quarter, the miner reported gold production of 192,238 ounces and silver production of 2.73 million ounces. The Jacobina, El Peñón and Minera Florida mines all exceeded their production targets, Yamana said, with Jacobina posting another quarterly record production of 43,938 gold ounces.
Gold production was 192,238 ounces and silver production was 2.73 million ounces
Yamana previously said that 46% of production would occur in the first half of the year, which it expected to be evenly split between the first and second quarters based on the gold equivalent ounce (GEO) ratio forecast in its original production guidance. Total GEO production during the quarter was 221,746, the company said.
“Production in the first quarter achieved this target. Due to the impact of covid-19, the company expects the second quarter to be weaker than previously anticipated, after which the company expects a resumption of normal operations in the second half of the year,” Yamana said in a media release.
The miner also said it expects to formally update its guidance for the balance of this year and for 2021 and 2022 when it releases its first quarter results on April 30.
During the quarter, Yamana paid dividends of approximately $10 million.
Yamana’s stock traded up 4.7% on Monday on the NYSE. The company has a $3.08 billion market capitalization.
