(Correcting that all-in sustaining cost guidance for 2022 is USD1,080 per ounce.)
(Alliance News) - Yamana Gold Inc on Friday said it dug up a record amount of gold in the final quarter of 2021, resulting in record production for the full year as well and strong financial results.
Shares were up 8.0% at 356.50 pence in London on Friday afternoon.
Yamana is a Toronto-based miner operating in Canada, Brazil, Chile and Argentina. Its mines produced 281,388 gold equivalent ounces in the three months that ended December 31, up from 255,361 a year before and beating guidance of 270,000 ounces.
Gold equivalent is calculated using a ratio of gold and silver production, but Yamana said the increase was led by gold production, which at 240,718 ounces also was a record for the company.
For the year as a whole, Yamana produced 1.01 million gold equivalent ounces, up from 901,155 ounces in 2020 and slightly beating 2021 guidance of 1.00 million ounces. Looking ahead to 2022, Yamana said gold equivalent production will be no less than 1.00 million ounces again; however, it raised it further-out guidance to 1.03 million ounces in 2023 and 1.06 million in 2024.
Yamana booked net earnings of USD109.7 million in the final quarter of 2021, up 6.5% from USD103.00 million a year ago. For all of 2021, however, net earnings were USD147.5 million, down from USD203.6 million in 2020. The 2020 figure benefited from a USD191.0 million net reversal of mine property impairment.
Earnings per share were flat at USD0.11 in the fourth quarter on a year before. For 2021 as a whole, EPS shrank to USD0.15 from USD0.21.
Revenue rose 9.1% to USD503.8 million in the fourth quarter of 2021 from USD461.8 million a year before. In all of 2021, revenue totalled USD1.82 billion, up 16% from USD1.56 billion.
Average realised gold price was USD1,796 per ounce in the final quarter, down from USD1,875 a year before. All-in sustaining costs were USD1,091 per ounce, down from USD1,131 a year before. Yamana said it expects AISC of USD1,080 in 2022. Gold was quoted at USD1,897.40 on Friday afternoon in London.
Yamana declared a dividend of USD0.03 for the first quarter of 2022, implying a USD0.12 annual payout. Both are unchanged from 2021.
By Tom Waite; thomaslwaite@alliancenews.com
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