The company remains in the first of a planned
two-phase capital improvement project.
Yamana
Gold Inc. (YRI:TSX; AUY:NYSE; YAU:LSE) announced in a news release its revised guidance for Jacobina in Brazil
and an update on its plan to boost production there.
Management increased production guidance for 2019 to 152,000 ounces of
gold from 145,000 ounces. Guidance for 2020 and 2021 remain 160,000 and
170,000 ounces, respectively.
In terms of 2019 costs, the company forecasts a cash cost of $700 and an
all-in sustaining cost of $890, both per gold equivalent ounce sold. The
remaining capital costs to complete the phase 1 expansion are about $3.4
million, with around $2 million to be spent in 2019 and the rest in 2020.
These numbers only reflect upside from the phase 1 expansion, a modest
plant optimization that is underway. The goal is to increase sustainable
production at Jacobina to 6,500 tons per day. Because the project is ahead of
schedule and, consequently, throughput already is now up to an average of
6,182 tons per day, Yamana was able to increase its production guidance for
this year.
The company intends to release an updated mineral reserve estimate for
Jacobina in Q3/19, which could reflect increased grades. If it does,
production in phase 1 could exceed the annual 170,000 gold ounces guided to
for 2021.
Subsequently, Yamana will carry out its planned phase 2 expansion program
for Jacobina.
In other news, the producer expects to lower its 2019 general and
administrative (G&A) expenses to $68 million versus previous guidance of
$75 million, resulting from the sale of Chapada (closing in the next few
weeks) and a subsequently smaller presence in Brazil. G&A expenses in
2020 should stay at about $60 million, thereby yielding $15 million of
per-year savings.
[NLINSERT]
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and
provides services to Streetwise Reports as an independent contractor. She or
members of her household own securities of the following companies mentioned
in the article: None. She or members of her household are paid by the
following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors
of Streetwise Reports: None. Click here
for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not
of Streetwise Reports or its officers. The information provided above is for
informational purposes only and is not a recommendation to buy or sell any
security.
4) The article does not constitute investment advice. Each reader is
encouraged to consult with his or her individual financial professional and
any action a reader takes as a result of information presented here is his or
her own responsibility. By opening this page, each reader accepts and agrees
to Streetwise Reports' terms of use and full legal disclaimer.
This article is not a solicitation for investment. Streetwise Reports does
not render general or specific investment advice and the information on
Streetwise Reports should not be considered a recommendation to buy or sell
any security. Streetwise Reports does not endorse or recommend the business,
products, services or securities of any company mentioned on Streetwise
Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers,
employees or members of their families, as well as persons interviewed for
articles and interviews on the site, may have a long or short position in
securities mentioned. Directors, officers, employees or members of their
immediate families are prohibited from making purchases and/or sales of those
securities in the open market or otherwise from the time of the interview or
the decision to write an article until three business days after the
publication of the interview or article. The foregoing prohibition does not
apply to articles that in substance only restate previously published company
releases.
