Yamana Gold Inc (NYSE: AUY) recently released its operational and financial report for the quarter ending June 30, 2021. The company reported robust cash flow and production, driven by all-time quarterly high production at Canadian Malartic and Jacobina on top of standout quarters from Florida, Minera, and El Penon.
In a separate report, the company reported remarkable progress on Jacobina’s phase 2 expansion. The company further released strong exploration results that expanded the operation’s mineral resources and supported the phased expansion, strengthening Jacobina’s exceptional long-term growth potential.
The company posted adjusted net earnings of $0.07 per basic diluted share ($70.7 million) in 2Q2021 while making $87.3 million in earnings before taxes, a significant increase from the $9.7 million in the comparative period. However, a non-cash accounting deferred income tax expense amounting to $ 145.3 million, mainly attributed to an increase in income in tax rates in Argentina as applied to Suyai and MARA, reduced earnings for the period.
Robust cash flows of $153.5 million were also attributed to operating activities, and cash flows from operating activities before net change in working capital of $ 167.8 million, with debt repayments and free cash flow before dividends of $51.2 million.
The company also reported cash and cash equivalents of $702 million with available credit of $750 million, giving it total available liquidity of $1.5 billion. Some $223 million available for the MARA project makes part of the cash balances. The remaining $478.6 million in cash and equivalents is expected to widen liquidity and suffice the company’s business and capital allocation objectives. With the production and costs consistent with the company’s plans, Yamana expects stronger third and fourth quarters.
Jacobina surpassed its production plan and made a record quarterly gold production of 47,503 ounces in 2Q2021. The mill throughput in the second quarter was also in line with the plan, with the recovery rates beating expectations. Throughput average per day was 7,500 tonnes in May, and around 7,200 tonnes per day, an increase of 5% from the first quarter.
Canadian Malartic also had an exceptional 2Q2021, with production surpassing the plan due to higher grade and recoveries from the ore discovered deeper in the Malartic pit.