Tax information for Osisko shareholders
On June 16, 2014, the shares of Osisko Mining Corporation (“Osisko”) were exchanged for C$2.09 in cash, 0.07264 shares of Agnico Eagle Mines Limited (“Agnico”), 0.26471 shares of Yamana Gold Inc. (“Yamana”) and 0.1 share of Osisko Gold Royalties Ltd., pursuant to the Plan of Arrangement. This exchange will result in a disposition of Osisko shares held by each Osisko shareholder for Canadian and US tax purposes. Accordingly, an Osisko shareholder may realize a gain (or loss) and may be subject to tax.
The foregoing is subject to the more detailed information set out in the May 1, 2014 management information circular of Osisko, a copy of which can be found on www.sedar.com under the 1797729 Ontario Inc (formerly Osisko Mining Corporation) profile.
1. Does Yamana have any concerns regarding possible changing political situations in South America?
Yamana has excellent government relations in Brazil, Chile, Argentina, Mexico and considers these countries partners in the Company’s success. Yamana is a leading employer in Brazil and employs approximately 11,000 individuals across South America and Mexico.
2. What is the company’s financial position?
Our financial position is solid. In 2012, revenues were a record $2.3 billion, an increase of 8% over 2011. We have a long established trend of cash flow generation. Operating cash flow was $1.04 billion or $1.40 per share. Yamana’s cash and available credit at the end of the year remained strong at $1.1 billion.
3. What is your production profile for 2013 and onwards?
Production in 2013 is estimated to be between 1.32 – 1.37 million gold equivalent ounces (GEO)1 .
Production in 2014 is estimated to be between 1.40 - 1:50 million GEO. Contributions will come from a full year of production from CI Santa Luz, Ernest Pau-a-Pique, Pilar, the Gualcamayo expansion, and the Suruca Oxide and Corpo Sul expansions at Chapada.
4. What is the longer-term plan for Yamana?
Our objective is to increase production to our new sustainable level from 2015 onward of 1.55 million ounces. The Company will evaluate the exceptional opportunity at our mines to further increase that production level.
After completing the current expansion phase, we shall focus on how best to continue growing across all measures and delivering the best value to shareholders.
5. What will happen to my shares held under the London Stock Exchange after July 30, 2013?
Each Yamana share that was listed on the LSE is held in the form of a CREST Depositary Interest (“CDI”). For each CDI, CREST holds a corresponding Yamana share through its account with the Depository Trust and Clearing Corporation (“DTCC”). When Yamana’s UK listing was cancelled on 30 July 2013, it did not automatically cancel these CDI positions. The CDI functionality will remain available for as long as CREST is able to hold the shares via its DTCC account and each CDI will continue to exist up until the point the LSE holder chooses to sell. At that point, CREST will effect a trade of the CDI holding on one of the other exchanges where Yamana shares continue to be traded.
6. I am receiving information from Yamana Gold from shares in a company that were converted into Yamana Gold Inc. How do I find out what my previous shares are worth now?
CST Trust Company is Yamana Gold’s transfer agent and they can answer your questions on the share exchange. They can be reached by phone at 416-682-3860 or 1-800-387-0825, or by email at firstname.lastname@example.org
7. Does Yamana pay a dividend?
Yamana currently pays a quarterly dividend of US$0.0375 per share.
8. Does Yamana have a Dividend Reinvestment Plan?
Currently, we do not have a Dividend Reinvestment plan in place.
9. Can I buy gold directly from the Company?
It is not possible to purchase gold directly from mining companies. Yamana sells its gold directly to large investment dealers at the spot market price.
10. Does Yamana participate in the (DRS) Direct Registration Program?
Yes, if you are a beneficial holder please contact your broker directly or if you are a registered holder please contact the Transfer Agent, CST Trust Company:
call toll-free: 1-800-387-0825
outside Canada & US: +1-416-682-3860
11. Who should Osisko shareholders contact for further information?
Shareholders who have questions are advised to contact the Information Agent:
Laurel Hill Advisory Group
North American Toll Free: 1-877-452-7184
Banks, Brokers or collect calls: 416-304-2011
(1) Silver production is treated as a gold equivalent at a ratio of 50:1.