Yamana Gold Reports Strong First Quarter Production and Cash Flows; Increases Earnings and Further Reduces Net Debt; Raises Annual Dividend by a Further 25%

TORONTO, April 30, 2020 (GLOBE NEWSWIRE) — YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or “the Company”) is herein reporting its financial and operational results for the first quarter of 2020. The Company posted strong quarterly production and free cash flow while further reducing net debt.  The Company has updated its 2020 guidance a separate announcement relating to which will follow. FIRST QUARTER HIGHLIGHTSStrong Net Earnings and Cash Flow, Further Reduction in Net DebtNet earnings of $45.0 million or $0.05 per share basic and diluted compared to a net loss of $4.1 million or  nil per share basic and diluted a year earlier.⁽¹⁾Adjusted net earnings⁽¹⁾ of $47.2 million or $0.05 per share basic and diluted compared to adjusted net earnings of $24.0 million or $0.03 per share basic and diluted a year earlier.Strong quarterly cash flows from operating activities of $129.4 million, and cash flow from operating activities before net change in working capital of $164.6 million.Cash flows were all in line with or exceeded the average of the past four quarters, and exceeded all comparable cash flows in the first quarter of 2019.Net free cash flow⁽²⁾ of $91.1 million exceeded the average of the past four quarters by 14%, following exceptional operational performances in the first quarter, despite the challenges stemming from the pandemic.Net debt⁽³⁾ decreased by $20.0 million in the quarter due to the positive cash flow from operations. As of March 31, 2020, net debt⁽³⁾ was $869.1 million.Considering the receipt of funds from the completion of the Equinox Gold sale transaction that occurred on April 15, 2020, net debt⁽³⁾ at the end of the quarter was approximately $786.0 million on a pro forma basis.(All amounts are expressed in United States Dollars unless otherwise indicated)
(See end notes at the end of this press release)Production Exceeds Targets at Jacobina, El Peñón, and Minera FloridaGold production of 192,238 ounces was in line with plan, highlighted by exceptional performances from Jacobina, El Peñón, and Minera Florida, which all exceeded their production targets, and despite government-mandated temporary suspensions of operations at Cerro Moro and Canadian Malartic.Silver production of 2,730,851 ounces was in line with plan, following a strong performance from El Peñón, which exceeded its production target.Gold equivalent ounce (“GEO”)⁽⁴⁾ production of 221,746 ounces was in line with plan despite the GEO ratio being higher at 94.23 than that originally guided at 86.10.Costs Better Than PlanUnitary costs were better than plan during the first quarter, and comparable to the same period in 2019 despite lower production, with total cost of sales and cash costs⁽³⁾ of $1,141 and $694, respectively, compared to $1,160 and $691 in 2019.All-in sustaining costs (“AISC”)⁽³⁾ for the quarter were $1,032 per GEO sold compared to $973 per GEO sold in the same period in 2019.Annual Dividend Increased by a Further 25%Subsequent to quarter end, the Company increased its annual dividend by a further 25% to $0.0625 per share.This represents the third dividend increase announced by the Company in the past year, for a cumulative total increase of 213%.Jacobina Optimization Project Highlights