30th Oct 2020 12:11
(Alliance News) - Yamana Gold Inc on Friday said it has increased its quarterly dividend after recording better-than-expected production in the third quarter of the year.
Yamana is a Canadian-based precious metals producer with significant gold and silver production, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina.
Yamana net earnings in the third quarter ended September 30 was down to USD55.6 million from USD201.3 million a year prior.
Adjusted net earnings were up to USD92.9 million from USD49.5 million a year before.
Revenue was up year-on-year to USD439.4 million from USD357.8 million.
Gold production was at 201,772 ounces, down from 209,923 ounces a year before but still above expectations. Yamana said this was underpinned by standout production from Jacobina in Brazil, Canadian Malartic, El Peñón in Chile, and Minera Florida also in Chile.
Silver production was at 3.0 million ounces, up from 2.5 million ounces a year prior.
Gold equivalent production was at 240,466 ounces, up slightly from 238,623 gold equivalent ounces a year before. This was due to strong gold and silver production the miner said.
Yamana increased its 2020 production guidance by 3% to 915,000 gold equivalent ounces from the previous guidance of 890,000 gold equivalent ounces, saying that the fourth quarter is expected to be the strongest production quarter of the year.
The miner declared a fourth quarter dividend of USD0.02625, up from USD0.010 a year prior, reflecting a 50% increase in annual payout.
The new annual dividend rate of USD0.105 is up four-fold in 18 months.
Yamana started trading in the Main Market of the London Stock Exchange in early October. The miner is also listed on the New York Stock Exchange and the Toronto Stock Exchange.
Yamana shares were up 2.3% at 429.50 pence each in London on Friday midday.
By Greg Roxburgh; [email protected]
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