Yamana reports operating earnings of $5.3 million for the First Quarter 2006.
(all figures in US$ unless otherwise stated)
Yamana Gold Inc. (TSX: YRI; AMEX: AUY; LSE (AIM): YAU) is pleased to announce its financial and operating results for the quarter ended March 31, 2006.
The Company is pleased to provide the following highlights.
o Mine operating earnings of $5.2 million from operations for the quarter in the case of the Fazenda Nova Mine and the Fazenda Brasileiro Mine, and for one month (since acquisition date), in the case of the San Andr'es Mine.
o Operating earnings for the quarter of $5.3 million representing $0.03 per share.
o Cash flow from operations of $7.9 million before changes in non-cash working capital items representing $0.04 per share.
o Earnings of $5 million for the quarter adjusted for certain non-cash items including foreign exchange gains, an unrealized loss on commodity contracts and a future income tax expense on foreign currency translations.
o Total production from all mines owned by the Company in the quarter of 48,006 ounces (the Fazenda Nova Mine, the Fazenda Brasileiro Mine and the San Andr'es Mine) with average cash costs of $290 per ounce (for accounting purposes, only one month of operations is accounted for in respect of the San Andr'es Mine as the acquisition of the mine was completed end of February 2006).
o Revenue of $17.1 million from the sale of 30,920 ounces of gold at an average sale price of $552 per ounce, representing an increase of 29% in the average sale price over the comparative period ended March 31, 2005.
o Total pro forma production for the quarter from all mines including mines acquired through the RNC Gold and Desert Sun acquisitions of 75,035 ounces.
The Company is also please to provide some additional highlights of some of the milestones achieved during and since the end of the first quarter.
o Continued mining and began processing operations at the S~ao Francisco Mine and on track to declare commercial production at the S~ao Francisco Mine during the second quarter of 2006.
o Advanced the construction of Chapada and on track to begin production in the fourth quarter of 2006.
o Completed the acquisition of RNC Gold Inc. on February 28, 2006, thereby acquiring: the San Andr'es Mine and the La Libertad Mine.
o Completed the acquisition of Desert Sun Mining Corp. (subsequent to the quarter end on April 5, 2006), thereby acquiring the Jacobina Mine.
o Production from the Jacobina Mine was 8,200 ounces in April 2006 which is the first month in which the Jacobina Mine was integrated into Yamana's operations (operating and financial results relating to the Jacobina Mine will be reflected beginning in the second quarter of this year).
o Completed an equity financing (subsequent to the quarter end) for the issue of 17.4 million common shares for gross proceeds of C$200.1 million.
o Repaid outstanding senior secured note facility together with accrued interest and prepayment fees and expenses for a total of $116.4 million (subsequent to the quarter end) and thereby eliminating outstanding debt.
The following chart summarizes gold production and cash costs per ounce for the quarter ended March 31, 2006 with comparatives for the quarter ended March 31, 2005: http://www.yamana.com/ir/press/592006-1.pdf
