Why Yamana?
Growth across all key measures
- In mineral resources, production, cash flow
- Prudent and disciplined growth
- Quality and quantity of ounces
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Low cost cash producer
- Amongst the lowest in the industry
- Commitment to management of capital expenditures, operating costs and cost containment
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Sustainability
- Focused high quality asset portfolio in stable mining jurisdictions
- High returning internal growth opportunities
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Leverage to gold price
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Proven experience
- High performing management and operations teams with depth and track record
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Well positioned financially
- Focused on maximizing cash position / cash flow
- Committed to maintaining maximum flexibility to fund growth
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Why Gold?
Gold is considered a store of wealth. It is held by central banks and individuals as an investment and is considered a safe haven in turbulent economic times as well as a natural hedge against inflation and a declining dollar.
CEO’s Message (as at March 31, 2011)
In 2010, we delivered what we said we would, including growth in several ways. We completed the successful integration of our 2006 and 2007 acquisitions. We had record production, and our costs were amongst the lowest in the industry. We had record revenues, earnings and operating cash flow. We increased our free cash flow in excess of our funding needs and increased our dividend threefold during the year, making our dividend yield one of the most attractive in the industry. Our total proven and probable gold mineral reserves increased by 26 percent and our measured and indicated gold mineral resources were up by 12 percent over 2009 year end levels.
It gives me great satisfaction to report that 2010 was another milestone year for Yamana Gold.
Our 2011 results are also expected to be strong, and we are on track to deliver over 60 percent production growth by 2014, with additional growth potential. I see 2011 as a year in which Yamana will position itself to deliver steep significant production growth beginning in 2012. It is a positioning year for that production growth in which we will also continue to focus on strong operational and financial performance, mineral resource growth and our new opportunities from exploration.
We are forecasting production of 1.04-1.14 million gold equivalent ounces, with by-product cash costs below $250 per gold equivalent ounce. Our copper production from the Chapada mine is expected to be in the range of 145-160 million pounds. We are building four new mines and expect to increase our gold mineral reserves and mineral resources significantly in the course of the year. We are planning capital expenditures of $640 million, and have an exploration budget of $85 million. We expect our cash flow to continue to grow and to be in excess of our capital needs. After tripling our dividend in 2010, we have already announced our first quarter dividend of US$0.03 per share for 2011.
I am confident this trend relating to dividends will continue.
We are a fully-funded growth company generating free cash flow.
None of our achievements would be possible without the hard work of Yamana’s 8,500 plus employees. We appreciate the efforts that led to a successful 2010 and look forward to an even more successful 2011.