TSX-listed Yamana Gold had reported 6% lower adjusted profit for the third quarter ended September 30, as lower metals prices and higher production costs on the company's strong production performance.
The miner, which is in the process of building three mines, reported record production during the period, lifting gold-equivalent production by 11% over last year’s comparable period to 310 490 oz.
The gold-equivalent production comprised of 266 374 oz of gold, and silver production comprised 2.2-million ounces, produced at a gold-equivalent cost of $201/oz, which had resulted in a cash margin of $1 479/oz.
The improved performance allowed the company to post record revenue of $612-million, 10% higher than the $555-million the company reported in the same comparable period a year earlier.
Yamana reported adjusted earnings, excluding one-off items of $178-million or $0.24 a share, slightly lower than the $190.26-million the company earned for the period a year earlier.
The company said at the end of the period it had over $1.15-billion in available funds, including cash and cash equivalents of $400-million.
"We delivered record revenue and production in the third quarter and year to date, which also resulted in strong cash flow. Our cash flow after changes in working capital reached record levels also.
“As production increases, and more production enter a commercial phase, that should translate into increasing cash flow. Our development projects continue to advance and delivery of additional future growth is in progress,” CEO Peter Marrone said.
He added that the company closed the acquisition of Extorre Gold, which was now being evaluated for its exploration and development contribution to Yamana.
The company’s stock changed hands at C$18.76 apiece on Monday.
Edited by: Creamer Media Reporter