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Yamana Reports $3 Million Operating Cash Flow for September Quarter |
11/03/2004 |
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Download this Press Release (PDF 90 KB)
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Yamana Gold Inc. (TSX: YRI; AMEX: AUY; LSE (AIM): YAU) reports net earnings
for the quarter ended September 30, 2004 of $6,000. This compares to a loss of $1.3
million for the comparable quarter ended August 31, 2003. Net earnings for the seven
month period ending September 30, 2004 are $2.0 million and net earnings on a proforma
basis for the nine month period ended September 30, 2004 are $3.1 million.
Yamana has changed is fiscal year end to December 31st and, accordingly, the current
year will be a 10 month period.
Basic and fully diluted net earnings per share are $NIL for the September quarter. This
compares to a loss of $0.06 per share in the comparative quarter ended August 31, 2003.
Earnings per share for the seven month period ending September 30, 2004 are $0.02 per
share. Pro-forma net earnings per share for the nine month period ended September 30,
2004 are $0.03 per share. Sales for the September quarter are $8.8 million. Pro-forma
sales for the nine month period ended September 30, 2004 are $31 million. The per share
calculations for the quarter for the current and previous fiscal year are based on weighted
average shares outstanding for the period of 95.8 million shares and 24.6 million shares
respectively.
Mine operating earnings are $2.5 million for the September quarter and $6.9 million for
the seven month period ended September 30, 2004. During the quarter, Yamana
produced 23,214 ounces of gold and sold 22,246 ounces of gold at an average sale price
of $401 per ounce. For the nine month period Yamana produced 74,225 ounces of gold
and sold 77,571 ounces of gold. Total average cash costs for the September quarter are
$225 per ounce produced and for the seven month period ended September 30, 2004 are
$208 per ounce produced. Processing of lower grade ore during the quarter was
anticipated in order to gain access to higher grade ore bodies and prospective exploration
areas beneath the existing mine workings at Fazenda Brasileiro.
Cash flow from operations for the quarter is $3 million representing $0.03 per share.
Cash flow from operations for the fiscal year to date (7 months) is $6 million
representing $0.06 per share. Pro-forma cash flow from operations for January and
February 2004, excluding movements in working capital is an additional $0.03 per share
for an aggregate pro-forma cash flow for the nine month period of $0.09 per share.
The cash balance as at September 30, 2004 is $24 million and working capital was $27.1
million. Available cash will increase as a result of the recently announced equity
financing.
Expenses for the September quarter include a non-cash expense of $1.3 million in stockbased
compensation representing $0.015 per share. An expense of $1 million was
recognized for shares issued to management in accordance with previously issued
subscription agreements for which shareholder approval was obtained at the last annual
meeting of shareholders. In addition, $0.3 million was recognized in connection with
stock options issued during the June quarter as the Company revised its estimate of
expected volatility rates resulting in an additional charge during the current quarter.
Yamana also recognized an exchange rate gain in the amount of $1.4 million during the
quarter. The gain was mainly generated on the revaluation of Canadian monetary net
assets to the US dollar exchange rate prevailing as at September 30, 2004. General and
administrative expenses on a per month basis are lower for the September quarter relative
to the June quarter. Yamana’s normalized general and administrative expenses are
expected to be lower in future periods due to non-recurring items that were recognized in
the June quarter.
The complete financial statements and Management Discussion and Analysis for the
quarter ended September 30, 2004 follow this announcement.
Pro-forma results and information are provided primarily for financial market reference
to show a full year of operations given the change in year end this year. Pro-forma
results assume the combination of earnings and cash flow for the seven month period
ending September 30, 2004 with the normalized earnings and cash flow of January and
February, 2004 that exclude year-end adjustments made in February that did not relate to
the January and February period. The pro-forma results are a non-GAAP (Generally
Accepted Accounting Principles) measure and are unaudited. Please see the note on non-
GAAP Measures contained at the end of Management’s Discussion and Analysis for the
quarter ended September 30, 2004 and contained in the annual report of the most recent
fiscal year end.
Yamana is a Canadian gold producer with significant gold production, gold and coppergold
development stage properties, exploration properties and land positions in all major
mineral areas in Brazil. Yamana expects to produce gold at intermediate company
production levels by 2006 in addition to significant copper production by 2007. Yamana
also holds gold exploration properties in Argentina. Company management plans to
build on this base by targeting other gold consolidation opportunities in Brazil and
elsewhere in Latin America.
For further information, contact
Peter Marrone
President & Chief Executive Officer
(416) 815-0220
E-mail: investor@yamana.com
Chuck Main
Chief Financial Officer
(416) 945-7354
E-mail: cmain@yamana.com
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, and Yamana's future plans are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Yamana does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change.
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