Yamana Gold Inc. (USA) (NYSE:AUY) Reports 33% Growth In Gold Production In 1Q2015

Yamana Gold Inc. (USA) (NYSE:AUY) reported 33% increase in gold production from 1Q2014. It highlights improved operational performance as the company’s focus shifts to high quality growth. The flagship assets Canadian Malartic, Chapada and El Peñón accounted for 150,780 ounces of gold in the quarter. The co-product AISC was in forecast range at $896 per ounce of gold.

Expert breakdown of the AUY candlestick chart.

The performance

Yamana recorded 26% growth in operating cash flows compared from 1Q2014. It is excluding the changes made in non-cash working capital. The cash flows for the first quarter came at $2.0 million. The capital expenditures declined 45% in 1Q2015. The operational performance in 1Q was as per the expectations, continuing the positive momentum started in the second half of 2014.

Yamana’s primary portfolio reflects low cost and high stability structure, offering an opportunity for quest of high quality growth. The flagship assets continue to account most considerably to cash flow and production, forming the platform on which Yamana’s other assets can create value.

The developments

In 1Q2015, considerable progress was reported at enhancing the future outlook for Yamana’s subsidiary firm Brio Gold Inc. It is doing well with its plans for underway public event in 3Q2015. Moreover, Yamana met the outstanding balance on existing revolving credit facility by almost $200 million, as par with its previously stated debt reduction plan. The divestiture of Brio Gold and repayment of debt are expected to strengthen Yamana’s strong financial position.

Yamana Gold Inc. (USA) (NYSE:AUY) is well positioned in the industry to achieve sequential QOQ product growth. The focus will remain on maintain low cost structure in the upcoming quarters. The set plan of balancing cash flow generation, cost reductions and production growth will help to maximize returns. It is anticipated to add considerable value for the shareholders in the future. Overall, the strong performance is expected to continue in coming quarters.

About the Author

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.

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