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Yamana enjoys record quarterly production from Jacobina and Canadian Malartic, shares up

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In the second quarter of 2021, Yamana Gold (TSX: YRI; NYSE: AUY; LSE: AUY) saw a boost in its financials thanks to strong production numbers, underpinned by all-time quarterly highs from Jacobina and Canadian Malartic as well as standout quarters from Minera Florida and El Peñón.

Earnings before taxes of $87.3 million increased significantly in relation to the comparative period earnings (before taxes) of $9.7 million. Adjusted net earnings came to $70.7 million or $0.07 per share.

Cash flows from operating activities generated in Q2 2021 were $153.5 million, and before net change in working capital, $167.8 million.

At quarter-end, the company had cash and cash equivalents of $702 million and available credit of $750 million, for total available liquidity of approximately $1.5 billion.

Improved cash flows and cash balances have allowed Yamana to raise its annual dividend to $0.12 per share, representing a nearly 15% increase from the previous level and a cumulative increase of 500% from Q2 2019.

The stronger financials are reflective of the company’s operational results for the quarter. Total gold-equivalent production was 241,341 ounces, including 217,402 gold ounces and 1.63 million silver ounces.

Production was elevated by the Jacobina and Canadian Malartic mines, both of which reached all-time quarterly highs with 47,503 and 92,106 ounces of gold respectively.

Minera Florida also had a standout quarter, producing 23,813 ounces of gold, while El Peñón was ahead of plan for the first half of the year. Cerro Moro also reported a significant improvement with gold-equivalent production of 25,313 ounces.

Given these results, Yamana is on track to achieve its yearly guidance of 1 million gold-equivalent ounces, with further improvement expected in the second half of the year.

In a separate news release on Thursday, the company announced it has made “significant progress” on the Phase 2 expansion of Jacobina, with strong exploration results that could expand the operation’s mineral resource inventory and support the phased expansion.

Shares of Yamana Gold surged 5.2% by 1 p.m. Toronto time following the Q2 results release. The company has a market capitalization of approximately C$5.5 billion.

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