By Paul Ploumis (ScrapMonster Author)

January 15, 2016 04:43:50 AM

(Kitco News) - Yamana Gold Inc. (TSX: YRI; NYSE: AUY) produced 1.275 million ounces of gold during 2015, which was within its guidance range, according to preliminary data reported by the company late Wednesday.

Silver output of 9.011 million ounces was slightly below expectations. Copper output of 131 million pounds was above Yamana’s forecast.

For 2016, Yamana said it expects to deliver gold production of between 1.23 million and 1.31 million ounces of gold. Silver production is projected at between 6.9 million and 7.2 million ounces, while copper production is projected at between 122 million and 125 million pounds. These numbers exclude any share of production from the company's 12.5% interest in Alumbrera.

Yamana also offered guidance for future years, including expected output of 1.29 million gold ounces in 2017 and 1.35 million in 2018.

“The company is targeting continuous production growth, and will continue to evaluate opportunities for optimizations and other operational improvements across its portfolio to further increase its production profile,” Yamana said.

Yamana listed a preliminary 2015 cash cost estimate of $596 per ounce of gold after by-product credits, above its guidance. The all-in sustaining cost was estimated at $844.

The revised baseline level for Yamana’s dividend was put at $0.02 per share annually beginning with the declaration and payment of the dividend for the first quarter of 2016.

“Given the cyclical nature and current volatility of the gold business, and the volatility in markets generally, the company strives to strike a proper balance between the financial discipline of paying a dividend and managing its business,” Yamana said. “In the context of today's markets, the current dividend level is considered too high.”

Sustaining capital in 2016 is expected to be $275 million, while expansionary capital is projected at $120 million. Yamana said it anticipates spending $82 million on exploration spending.

Yamana is a Canadian-based gold producer with production, development-stage properties, exploration properties, and land positions throughout the Americas, including Brazil, Argentina, Chile, Mexico and Canada.

Courtesy: Kitco News