Higher gold and silver prices in the March quarter helped the company generate net earnings of US$45 million, versus a $4.1 million loss for the same period in 2019, on lower year-on-year production of 192,238oz (214,438oz) gold and 2.7 million ounces (3Moz) silver. Net free cash flow was up 570% yoy to $91.1 million in the latest period.
Yamana operations in Canada and Argentina were impacted by government COVID-19 shutdowns in the March quarter, while mines in Brazil and Chile exceeded guidance.
Total gold-equivalent output for the March 2020 quarter was 221,746oz at AISC of $1,032/oz. Yamana altered full-year guidance to 890,000oz gold-equivalent versus 990,000oz previously, without updating its cost outlook.
"The company continues to assess the impact of COVID-19 on costs in relation to guidance assumptions previously provided in February, and expects to provide revised cost guidance at a later date," it said.
"The company expects there to be an impact as it develops ways to manage efforts with communities and mine sites, particularly in the second quarter."
Yamana maintains it can produce 1Moz gold-equivalent in 2021 and 2022.
Its market value is C$6.4 billion (US$4.36 billion) at $6.63, near the upper end of its $2.41-$6.97 12-month price range.