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Yamana Gold News

Yamana Gold Profit Jumps 401%

Written by Luke Burgess
Posted November 5, 2008

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Yamana Gold (NYSE: AUY) reported a 401% increase in third-quarter net earnings, to $150.2 million, compared with $29.95 million a year earlier, after gold and copper production rose and the company's copper hedges increased in value.

Adjusted earnings, however, which exclude unrealized losses or gains on derivatives, fell to $31.5 million, from $65.6-million in the same period of 2007.

Yamana, which bought rival Meridian Gold and the smaller Northern Orion Resources in October 2007, increased revenue by 24% year-on-year, to $247.5 million, from the sale of 173,342 ounces of gold, 2.4 million ounces of silver, and 33.4-million pounds of copper.

The company's average net realized gold price during the quarter was $861 per ounce, an increase of 26% from an average net realized price of $686 an ounce during the quarter ended September 30, 2007.

The firm realized an average copper price on metal produced at its Chapada mine, of $3.45 per pound, compared with the average spot price of $3.48 per pound of copper.

Yamana is bringing two new mines into production in the second half of this year, and aims to lift production to as much as 2.2 million ounces a year by 2012.

Yamana, which includes byproduct credits from other metals in its calculations, reported third-quarter cash costs of $140 per gold-equivalent ounce produced (includes silver production), compared with minus $140/oz a year ago.

- luke

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