"The dividend reflects the level increased in the third quarter, which was a 100% increase over the previous level," the company said. "Yamana will continue to evaluate its dividend policy as it increases free cash flow and cash balances with the potential for further increases to its dividend."

The increased dividend came on the back of strong September-quarter earnings.

Yamana, which operates mines throughout the Americas, reported headline earnings 110% higher year-on-year at US$49.5 million or 5c per share, besting average Bay Street analyst forecasts for 2c per share.

Revenues in the period fell 16% to $357.8 million.

The company reported 36% higher net free cash flow of $99.9 million, exceeding the average of the three preceding quarters.

"Our operations continued to show strong performance during the third quarter," said CEO Daniel Racine. "We expect that to continue through the fourth quarter — historically our strongest — and beyond. This will have added financial benefits, including increased free cash flow, a stronger balance sheet, and greater financial flexibility to reinvest in the business, deliver growth, and increase returns."

Yamana said higher gold prices offset lower metal output. Yamana produced 209,923oz gold, down from 268,843oz a year earlier, as its 50% share of production from Canadian Malartic, Canada's largest gold mine, was lower, and production at Cerro Morro, Minera Florida and Chapada fell.

Silver production came in at 2.5Moz, down from 2.6Moz in the same period of last year.

Net debt decreased by $810.3 million during the quarter to $948.9 million.

Yamana's share price (TSX:YRI) is up more than 30% over the past year, closing 3% or C13c higher on Thursday at $4.44, which capitalises the company at $4.22 billion.