Canadian precious metals miner Yamana Gold on Monday reported strong second-quarter production results, with its output currently tracking above its revised guidance for the year.
The dual-listed miner produced 164 141 oz of gold and 2.01-million ounces of silver, for total gold equivalent ounce (GEO) output of 183 582 in the June quarter.
“Overall production and production from most mines exceeded plan and the production for the quarter implied in the company’s annual guidance,” Yamana stated in its second-quarter results announcement, noting that it would evaluate further updates to its guidance in the third quarter.
Yamana revised its guidance on April 30, to reflect the temporary suspension at Canadian Malartic, in Canada, and Cerro Moro, in Argentina. Its current 2020 guidance is to produce 786 000 oz of gold and 10.25-million ounces of silver, for GEO output of 890-million in the year.
The company on Monday updated its cost guidance, noting that the impacts of Covid-19 were now better understood. Its all-in sustaining cost guidance for the second half of the year would be in the range $1 020/GEO to $1 060/GEO.
Its AISC in the second quarter was $1 125/GEO.
Production is expected to weight into the second half of the year, with 54% of production expected in the last six months, compared with 46% in the first half.
The June quarter was highlighted by exceptional operational performances from Jacobina, in Brazil, El Peñón and Minera Florida, in Chile, as well as Canadian Malartic, all of which exceeded planned production targets.
Canadian Malartic resumed operations on April 15, following the government of Quebec’s decision to designate mining activities as an essential service. The ramp-up progressed faster than expected and mill throughput in May and June exceeded 60 000 t/d, partially offsetting the impacts from the downtime and lower production rates during the ramp-up in April.
Yamana said it continued to advance studies related to the underground mineral resources at Canadian Malartic, and it was continuing exploration efforts with ten diamond drill rigs to define and expand underground mineral resources.