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News Details

Yamana Gold Announces Fourth Quarter and Full Year 2017 Results

02/15/2018

 Download PDF of French Release  

TORONTO, Feb. 15, 2018 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI) (NYSE:AUY) (“Yamana” or “the Company”) is herein reporting its financial and operational results for the fourth quarter and full year 2017, and its Mineral Reserve and Mineral Resource estimates as at December 31, 2017.

FOURTH QUARTER HIGHLIGHTS

Total production for the fourth quarter was 259,606 ounces of gold from Yamana's six producing mines (282,041 ounces of gold including attributable production (1) from Brio Gold Inc. ("Brio Gold")).   The Company also produced 1.17 million ounces of silver and 34.7 million pounds of copper.   Full year production from Yamana’s mines exceeded guidance for all metals at 977,316 ounces of gold, 5.0 million ounces of silver, and 127.3 million pounds of copper.

Fourth quarter total cost of sales applicable to gold of $966 per ounce ( $980 per ounce, including Brio Gold); cash costs on a co-product basis (2) of $660 per ounce ( $672 per ounce, including Brio Gold); cash costs on a by-product basis (2) of $548 per ounce; all-in sustaining costs (“AISC”) (2) on a co-product basis of $899 per ounce ( $925 per ounce, including Brio Gold); and AISC on a by-product basis (2) of $829 per ounce. For the year, co-product and AISC were either in line with or below guidance levels.

Net loss from continuing operations for the three months ended December 31, 2017, was $199.7 million, with $191.0 million or $(0.20) per share basic and diluted attributable to Yamana equityholders.  A summary of certain non-cash and other items is included in the table on page two of this press release, the most notable of which is a non-cash impairment recognized on the re-measurement of Gualcamayo and related Argentinian exploration properties in association with their reclassification as assets held for sale.

Cash flows from operating activities for the fourth quarter were $158.5 million and cash flows from operating activities before income taxes paid, including $46.6 million in payments relating to Brazilian tax matters, and net change in working capital (2) were $170.3 million

The balance sheet as at December 31, 2017, includes cash and cash equivalents of $148.9 million. Yamana’s cash and cash equivalents , and available credit (excluding Brio Gold), are $129.6 million and $970.0 million, respectively, for total liquidity to the Company of $1.1 billion

Peter Marrone, Yamana’s Chairman and Chief Executive Officer, commented as follows: “In 2017 we exceeded our production guidance for all metals and did so at costs in line with expectations.  We continued to demonstrate the ability of our operations to generate cash flow while focusing our efforts on rightsizing the portfolio with an eye on longer term cash flow growth, which we expect to see with the addition of the low cost, high margin production from Cerro Moro. Throughout 2017 and into 2018 we advanced various initiatives to complement cash flow from operations, including the sale of certain exploration assets, refinancing a portion of our debt to extend the tenor of our fixed term debt profile, and initiating a program of strategic evaluation of our portfolio and certain monetization initiatives.  We are in a strong financial position and are well positioned to deliver a step change in free cash flow in the second half of 2018 and more significantly into 2019 as Cerro Moro ramps up and we seek to maximize our cash return on invested capital.”

(All amounts are expressed in United States dollars unless otherwise indicated.)

  1. Attributable production includes production commensurate to the Company's interest in Brio Gold, which for the fourth quarter and full year of 2017 was a weighted average of 55.1% and 65.5 %, respectively.
  2. Refers to a non-GAAP financial measure or an additional line item or subtotal in financial statements.  Reconciliations for all non-GAAP financial measures are available at www.yamana.com/Q42017 and in Section 14 of the Company’s fourth quarter 2017 Management’s Discussion & Analysis, which has been filed on SEDAR.
 
Summary of Certain Non-Cash and Other Items Included in Net Earnings
 
(In United States Dollars, per share amounts may not add due to rounding, unaudited) Three Months
Ending Dec 31st
Twelve Months
Ending  Dec 31st
  2017   2016   2017   2016  
Non-cash unrealized foreign exchange (gains)/losses (1.2 ) 8.8   15.0   33.7  
Share-based payments/mark-to-market of deferred share units 3.7   (2.3 ) 12.8   14.2  
Mark-to-market on derivative contracts 14.2   -   15.3   -  
Mark-to-market on investment and other assets (0.5 ) 4.2   2.5   15.6  
Revision in estimates and liabilities including contingencies 1.9   8.2   (26.6 ) 17.3  
Impairment of mining and non-operational mineral properties 356.5   615.1   356.5   615.1  
Other provisions, write-downs and adjustments 5.9   2.3   33.9   (8.9 )
Non-cash tax unrealized foreign exchange losses/(gains) 11.6   50.8   9.9   (20.0 )
Income tax effect of adjustments (141.3 ) (325.0 ) (143.4 ) (332.9 )
TOTAL ADJUSTMENTS 250.7   362.1   275.9   334.1  
Increase/(Decrease) to net loss per share 0.26   0.38   0.29   0.35  
                 

Note: For the three months ended December 31, 2017, net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, would be adjusted by an increase of $244.2 million (2016 - $362.1 million), while an increase of $6.5 million (2016 - $nil) would adjust the earnings attributable to non-controlling interests.  For the twelve months ended December 31, 2017, net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, would be adjusted by an increase of $263.8 million (2016 - $334.1 million), while an increase of $11.9 million (2016 - $nil) would adjust the earnings attributable to non-controlling interests.

CONSTRUCTION AND DEVELOPMENT, STRATEGIC DEVELOPMENTS AND OPTIMIZATIONS

Cerro Moro:  The project remains on schedule and on budget  for completion at the end of the first quarter of 2018.  For the first quarter of 2018, the focus will move from construction to commissioning and operational readiness, with remaining construction works on piping, electrical, instrumentation installation staged to suit the commissioning plan, and the recruitment, onboarding and training of the operational staff aligned to the start of operations in the second quarter of 2018.

Chapada:  Opportunities to increase plant throughput are being considered, as is the development of the Sucupira deposit, in parallel to the previously disclosed studies to be undertaken in 2018 to assess a broader Suruca complex.  At Sucupira, 46 million tonnes at 0.27 grams per tonne (“g/t”) gold and 0.31% copper were upgraded to Mineral Reserve status, and a new mine plan is being evaluated to accelerate the timeline and bring forward production from the Sucupira deposit.    

Agua Rica:  Technical work and analysis for project development options continue, as do the review and consideration of various strategic alternatives, all in an effort to maximize value.  Based on Yamana’s own evaluation, and feedback from the strategic alternatives process, the Company believes that the previously disclosed underground scenario represents a viable alternative that should be advanced as soon as possible towards a pre-feasibility level, while concurrently pursuing various strategic alternatives.  As such, the Company has determined that it will undertake the work required to conduct a preliminary economic assessment during 2018, with a pre-feasibility study to follow in 2019. 

Gualcamayo:  Alternatives to maximize value are being pursued, including the rationalization of the mine’s production platform and cost structure, the extension of mine life through exploration focused on the oxide mineral resource and the advancement of the Deep Carbonate project.  Similar to the strategy leading to the sale of the Mercedes mine in Mexico during 2016, the Company has also considered the continuum of options for value maximization.   Such options weigh the prospect for internal advancement and management time and resources required against the opportunity for monetization, which would leave management and resources unencumbered for the pursuit of other internal projects. As the Company has decided to focus its efforts on assets that are better aligned with its strategic objectives, Gualcamayo has been classified as an asset held for sale. 

SUBSEQUENT EVENTS

Brio Gold:  In January 2018, Leagold Mining Corporation ("Leagold") announced that it intended to make an offer to acquire all of the issued and outstanding shares of Brio Gold (“Brio Shares”) on or before February 28, 2018 (the “Offer”).  Based on the share exchange ratio to be provided under the Offer, the Company would receive 58,115,953 shares of Leagold, representing approximately 22% ownership in the combined entity.  The Company entered into a support agreement endorsing a transaction with Leagold.  Pursuant to the agreement, the Company agreed to tender all of its Brio Shares and to hold the Leagold shares it receives pursuant to the Offer for a minimum period of 12 months, subject to certain exceptions.  The Offer provides the Company the opportunity to derive value from Brio Gold and the underlying Brio Gold assets as the combined entity has considerable present value and upside potential.

Refinancing of Debt:  During the fourth quarter of 2017, the Company completed an offering of $300 million of 4.625% senior notes due December 2027.  With these funds, on January 29, 2018, the Company redeemed $181.5 million of 6.97% senior notes due December 2019 at a price of 108.12.  These items have extended the tenor of the Company’s fixed term debt profile at lower average interest rates and improved financial flexibility.  During the first and second quarter of 2018, the Company has senior notes maturities of $73.6 million and $35.0 million, respectively, which will be retired as they come due.  Following the 2018 maturities, the Company’s next scheduled maturity of fixed rate debt of $84 million is not until March 2020.

Brazilian Tax Matters:  In the third quarter of 2017, the Company elected to participate in a program to settle all significant outstanding income tax assessments in Brazil ("Brazilian Tax Matters") and all income tax assessments relating to the Company’s Chapada mine.  On October 25, 2017, the program was formally enacted into law and the Company paid $76.7 million in the year ended December 31, 2017.  The final program created an option to either pay one lump sum of approximately $68 million in the first quarter of 2018, or a total of approximately $100 million plus interest in installments over twelve years.   The Company elected to proceed with the lump sum payment option, and on January 30, 2018 made the payment.  The income tax expense associated with the tax matters has been recorded in the Consolidated Statement of Operations for the year ended December 31, 2017.

YEAR END MINERAL RESERVES AND MINERAL RESOURCES SUMMARY

As at December 31, 2017.

Proven and Probable Mineral Reserves    
    Tonnes (000s) Grade (g/t) Contained oz. (000s)
  Gold 838,252 0.48 13,044
  Silver 11,433 184.6 67,855
    Tonnes (000s) Grade (%) Contained lbs (M)
  Copper 632,218 0.26 3,556
         
Measured and Indicated Mineral Resources    
    Tonnes (000s) Grade (g/t) Contained oz. (000s)
  Gold 654,230 0.83 17,396
  Silver 14,346 83.9 38,714
    Tonnes (000s) Grade (%) Contained lbs (M)
  Copper 277,649 0.22 1,344
         
Inferred Mineral Resources    
    Tonnes (000s) Grade (g/t) Contained oz. (000s)
  Gold 249,236 1.37 10,956
  Silver 30,080 57.0 55,157
    Tonnes (000s) Grade (%) Contained lbs (M)
  Copper 47,153 0.24 253
         

Additional details relating to the Company’s Mineral Reserve and Mineral Resource estimates as at December 31, 2017 are presented below.  For complete information relating to Yamana’s Mineral Reserve and Mineral Resource estimates as at December 31, 2016, refer to the Company’s press release issued on February 16, 2017.

Chapada, Brazil

As the result of the successful definition and expansion of the Sucupira mineral reserve, immediately adjacent to the main Chapada pit, gold and copper mineral reserves increased by 5% and 7%, respectively, over prior year, representing a significant overall improvement over depletion in 2017. Sucupira mineral reserves are 46 million tonnes grading 0.27 g/t gold and 0.31% copper.  Gold measured and indicated mineral resources increased by 48%, while copper increased by 99% compared to the prior year following the drilling for extensions of the mineral envelopes at Suruca, in addition to Sucupira and Baru.  Gold and copper inferred mineral resources decreased by 30% and 51%, respectively, as these were converted to indicated mineral resources.

The following chart summarizes the changes in gold mineral reserves at Chapada as at December 31, 2017 compared to the prior period.

Chart 1
Chart 1

The following chart summarizes the changes in copper mineral reserves at Chapada as at December 31, 2017 compared to the prior period.

Chart 2
Chart 2

El Peñón, Chile

Declines in gold and silver mineral reserves reflect production depletion in 2017 as well as adjustments to the mineral resource estimation methodology and updates to the cost structure for local currency appreciation, offset by the additions to mineral reserves via exploration and infill drilling.  As part of the new plan for El Peñón that started in 2017, a thorough review of the resource modelling, including estimation techniques and mine design parameters was completed, and validated with actual results during last year of production.  The revision better reflects both the geological behaviour of the narrow veins and the Company’s enhanced ability to efficiently mine narrower veins, as evidenced by production results in 2017 that exceeded guidance expectations taking advantage of mineral resources found outside the mineral reserves blocks.  The result of this detailed review will be covered by a new technical report that is being prepared for release in 2018. The net additions in mineral resources are sourced from numerous secondary vein structures in the east mine area including El Valle Este, Dorada Sur, Bonanza, Aleste, La Paloma and Discovery Wash in the core mine area. Most of the additions are contiguous to existing mine infrastructure. 

The higher proportion of narrower veins, the impetus for the right sizing of El Peñón in 2017, prompted a review of mineral resource estimation and reporting methodologies.  The new methodology uses a stope optimizer routine over the entire inventory of mineral resources, using economical parameters and mine design constrains, mainly minimum mining width and dilution.  The approach results in an overall smaller inventory, but with a higher prospectivity for transformation into mineral reserves in the future, through infill drilling and design optimizations.

The following chart summarizes the changes in gold mineral reserves at El Peñón as at December 31, 2017 compared to the prior period.

Chart 3
Chart 3

The following chart summarizes the changes in silver mineral reserves at El Peñón as at December 31, 2017 compared to the prior period.

Chart 4
Chart 4

Canadian Malartic including Odyssey, Canada (50%)

Gold mineral reserves reflect depletion associated with 2017 production.  Much of the mineral resource accretion in 2017 is associated with the East Malartic underground, which is being reported for the first time, and the South deposit at Odyssey. Additional drilling is required at Odyssey and East Malartic to convert inferred mineral resources to indicated.  Conversion drilling for East Malartic and Odyssey South can be undertaken from surface and this work is expected to commence in 2018.  However, the Odyssey internal zone is presenting a higher level of complexity and thus requires underground drilling access.  Preparation works to establish an exploration from surface is budgeted to commence in 2018.

The following chart summarizes the changes in gold mineral reserves at Canadian Malartic as at December 31, 2017 compared to the prior period.

Chart 5
Chart 5

Jacobina, Brazil

The Company successfully maintained gold mineral reserves, in line with 2016 despite production depletion in 2017.  In 2017 the Company completed drill testing of the Canavieiras Sul and Central deposits and the planned update to the block models and mineral reserve shapes.  With a reinterpretation of the Canavieiras mines, including a more conservative dilution assumption, the higher-grade Canavieiras mines now make up a smaller proportion of the total Jacobina mineral reserve, which, at year-end 2017 totaled 26 million tonnes grading 2.28 g/t gold, compared to 21 million tonnes grading 2.85 g/t gold in 2016.  The resultant dilution and mineral reserve grades are consistent with actual results achieved in 2017.  Gold measured and indicated mineral resources increased by 24% due to the reclassification from inferred mineral resources resulting from the infill drilling in 2017, while inferred mineral resources declined by 93% due to both the upgrading and the application of minimum mining widths to remove mineral resources contained in veins less than 1.5 metres in width.  Overall, the mineral inventory at Jacobina remains significant with mineral reserves of 1.9 million ounces supporting an approximate 13-year mine life with another 3.3 million ounces of measured and indicated mineral resources.

The following chart summarizes the changes in gold mineral reserves at Jacobina as at December 31, 2017 compared to the prior period.

Chart 6
Chart 6

Minera Florida, Chile

Gold mineral reserves increased by 5% compared to 2016, despite production depletion in 2017.  Areas within the newly acquired ground and existing mine complex are contributing to the mineral reserve replacement. These new areas include Las Pataguas, PVS, among others. Improvements in mine design parameters, including mining costs and dilution as a result of using split blasting extraction techniques, have had a positive impact on mineral reserves in the core mine areas.  Significant additions to the inferred mineral resources positions Minera Florida to convert these new discoveries into measured and indicated mineral resources and mineral reserves during 2018.

The following chart summarizes the changes in gold mineral reserves at Minera Florida as at December 31, 2017 compared to the prior period.

Chart 7
Chart 7

The following chart summarizes the changes in silver mineral reserves at Minera Florida as at December 31, 2017 compared to the prior period.

Chart 8
Chart 8

Gualcamayo, Argentina

Gold and silver mineral reserves reflect depletion associated with 2017 production.  The near-mine exploration drill program continued in the fourth quarter with modest results to date, mainly in Cerro Condor.  The district exploration program continued to map and collect rock chip samples, and based on positive results from the prospection, drilling was started at Sierra Alaya and Target D.  The shift in focus to district exploration will be carried forward into 2018 with drilling to continue in areas that can readily contribute to production.

Modeling of near mine drill program results during the second half of 2017, integrating geology and drill program assay results reveals that the orientation of the Potenciales mineralization dips back away from the pit wall and consequently has not added to mineral resources.  Additional work is expected to be completed during 2018 in order to evaluate the conversion of existing mineral resources to mineral reserves.

As a result of an updated methodology to define remaining mineral resources, measured and indicated mineral resources, and inferred mineral resources within the pit shell area, QDD and AIM zones were reduced compared to last year. 

The following chart summarizes the changes in gold mineral reserves at Gualcamayo as at December 31, 2017 compared to the prior period.

Chart 9
Chart 9


Cerro Moro, Argentina

Gold and silver mineral reserves were unchanged for the current year as the majority of 2017 drilling focused on delineation work at Zoe, Escondida Far West and Nini – areas that will be the focus of mining in 2018. On completion of infill drilling, the Company began conducting detailed mapping and sampling programs, identifying the presence of sulfide-rich black silica as key to the high-grade deposits in several of the targets on the property. This effort led to the discovery of Veronica, a new high grade near surface structure. Veronica is expected to add significant new inferred mineral resources in the short term. 

In addition to Veronica, drilling has identified other exploration targets in the near-mine area that will be targeted as part of the 2018 exploration program.  District exploration included surface work and target delineation in the La Henriette and on the newly acquired Mosquito project, covering the extension of the Escondida structure.

KEY STATISTICS
Key operating and financial statistics for the fourth quarter and full year 2017 are outlined in the following tables.

 
Financial Summary (including Brio Gold on a 100% basis unless otherwise indicated)
 
  Three Months
Ending Dec 31st
Twelve Months
Ending Dec 31st
(In millions of United States Dollars except for shares and per share amounts, unaudited) 2017   2016   2017   2016  
Revenue 478.8   484.4   1,803.8   1,787.7  
Cost of sales excluding depletion, depreciation and amortization (264.7 ) (284.1 ) (1,042.4 ) (1,029.0 )
Depletion, depreciation and amortization (100.9 ) (128.3 ) (426.8 ) (462.3 )
Total cost of sales (365.6 ) (412.4 ) (1,469.2 ) (1,491.3 )
Mine operating earnings (143.7 ) (639.3 ) 77.7   (414.9 )
General and administrative expenses (34.0 ) (29.9 ) (113.6 ) (100.2 )
Exploration and evaluation expenses (7.0 ) (3.0 ) (21.2 ) (14.9 )
Net earnings/(loss) from continuing operations (199.7 ) (355.4 ) (204.1 ) (290.8 )
Net earnings/(loss) attributable to Yamana Gold equityholders (191.0  ) (367.6  ) (194.4 ) (307.9 )
Net earnings/(loss) from continuing operations, attributable to Yamana Gold equityholders per share - basic and diluted (0.20 ) (0.37 ) (0.21 ) (0.31 )
Cash flow generated from continuing operations after changes in non-cash working capital 158.5   163.0   484.0   651.9  
Cash flow from operations before changes in non-cash working capital 122.3   147.7   498.0   626.6  
Revenue per ounce of gold 1,269   1,196   1,250   1,240  
Revenue per ounce of silver 16.46   17.11   16.80   17.06  
Revenue per pound of copper 2.36   2.02   2.36   1.92  
Average realized gold price per ounce 1,286   1,210   1,264   1,251  
Average realized  silver price per ounce 16.49   17.17   16.83   17.04  
Average realized copper price per pound 3.02   2.48   2.78   2.24  
1. For the three months ended December 31, 2017, the weighted average numbers of shares outstanding, basic and diluted, was 948,468 thousand
 

 

 
Production, Financial and Operating Summary
 
  Three Months
Ending Dec 31st
Twelve Months
Ending Dec 31st
Gold   2017   2016   2017   2016
Total cost of sales per ounce sold, excluding Brio Gold $ 966 $935 $ 1,023 $991
Total cost of sales per ounce sold $ 980 $1,004 $ 1,038 $1,008
Co-product cash costs per ounce produced, excluding Brio Gold $ 660 $635 $ 672 $650
Co-product cash costs per ounce produced, attributable $ 672 $667 $ 692 $665
All-in sustaining co-product costs per ounce produced, excluding Brio Gold $ 899 $900 $ 888 $905
All-in sustaining co-product costs per ounce produced, attributable $ 925 $928 $ 916 $911
Silver   2017   2016   2017   2016
Total cost of sales per ounce sold $ 13.26 $15.58 $ 13.63 $13.79
Co-product cash costs per ounce produced $ 8.86 $10.07 $ 10.01 $8.96
All-in sustaining costs per ounce produced, co-product basis $ 11.90 $14.48 $ 13.48 $12.65
Copper   2017   2016   2017   2016
Total cost of sales per copper pound sold $ 1.67 $1.80 $ 1.73 $1.93
Co-product cash costs per pound of copper produced - Chapada $ 1.51 $1.44 $ 1.54 $1.58
All-in sustaining costs per pound of copper produced - Chapada $ 1.67 $1.80 $ 1.74 $2.03
         
  Three Months
Ending Dec 31st
Twelve Months
Ending Dec 31 st
By-Product Costs   2017   2016   2017   2016
By-product cash costs per gold ounce produced, excluding Brio Gold $ 548 $553 $ 561 $611
All-in sustaining by-product costs per gold ounce produced, excluding Brio Gold $ 829 $870 $ 820 $925
By-product cash costs per silver ounce produced, excluding Brio Gold $ 7.44 $8.90 $ 8.58 $8.45
All-in sustaining by-product costs per silver ounce produced, excluding Brio Gold $ 11.05 $14.18 $ 12.65 $12.93
         

 

     
  Three Months
Ending Dec 31st
Twelve Months
Ending Dec 31 st
Gold Ounces 2017 2016 2017 2016
Chapada 36,578 40,358 119,852 107,301
El Peñón 39,401 55,764 160,509 220,209
Canadian Malartic (50%) 80,743 69,971 316,731 292,514
Jacobina 34,566 32,180 135,806 120,478
Minera Florida 23,540 25,675 90,366 104,312
Gualcamayo 44,778 44,840 154,052 164,265
Total production, excluding Brio Gold 259,606 268,788 977,316 1,009,079
Brio Gold (attributable to Yamana) 22,435 49,580 119,011 188,765
TOTAL 282,041 318,368 1,096,327 1,197,844
         
  Three Months
Ending Dec 31st
Twelve Months
Ending Dec 31 st
Silver Ounces 2017 2016 2017 2016
Chapada 71,520 78,020 252,748 259,444
El Peñón 1,052,423 1,454,293 4,282,339 6,020,758
Minera Florida 47,099 94,738 469,674 429,048
TOTAL 1,171,042 1,627,051 5,004,761 6,709,250
         

For a full discussion of Yamana’s operational and financial results, and Mineral Reserve and Mineral Resource estimates please refer to the Company’s fourth quarter 2017 Management’s Discussion & Analysis and Financial Statements, which have been filed on SEDAR and are also available on the Company’s website.

MANAGEMENT UPDATE

The Company is also announcing that Henry Marsden has been formally promoted to Senior Vice President, Exploration and that William Wulftange has retired from the Company. The transition process for Mr. Marsden began in October, 2017, and was consistent with the Company’s succession planning efforts and allowed for an orderly transition of responsibilitiesleading up to the formal retirement of Mr. Wulftange. Previously serving as Yamana’s Chief Geologist, Mr. Marsden was hired by Mr. Wulftange and has been with the Company since 2016. By promoting from within, Yamana was again able to draw on the depth of talent within the organization.

Mr. Marsden has over 30 years of exploration experience, including over 20 years as a consulting geologist working with a variety of clients and focusing on field exploration work.  He also played a key role in the discovery and advancement of several deposits including Rio Blanco and Pico Machay in Peru, and the Timmins West gold deposit in Timmins, Ontario where he was responsible for the first mineral resource which ultimately lead to mine construction.

Mr. Marsden will be responsible for the development, implementation and management of Yamana’s overall exploration strategy and activities, with a focus on expanding Mineral Reserves and Mineral Resources, as well as for forging partnerships with companies focused on early stage exploration opportunities. 

MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES

Mineral Reserves (Proven and Probable)
The following table sets forth the Mineral Reserve estimates for the Company’s mineral projects as at December 31, 2017.

  Proven Mineral
Reserves
Probable Mineral
Reserves
Total Proven &
Probable
Gold                  
  Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained
  (000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's)
Alumbrera (12.5%) 9,915 0.40 126 485 0.37 6 10,399 0.39 132
Canadian Malartic (50%) 24,990 0.95 760 65,509 1.15 2,429 90,499 1.10 3,189
Cerro Moro - - - 1,954 11.38 715 1,954 11.38 715
Chapada 312,360 0.18 1,788 368,790 0.21 2,500 681,150 0.20 4,287
El Peñón 1,062 5.90 201 3,332 5.25 563 4,394 5.41 764
Gualcamayo 6,570 1.26 267 3,678 1.90 224 10,248 1.49 491
Jacobina 18,161 2.34 1,365 7,681 2.13 527 25,842 2.28 1,892
Jeronimo (57%) 6,350 3.91 798 2,331 3.79 284 8,681 3.88 1,082
Minera Florida Ore 846 3.80 103 2,992 3.65 351 3,838 3.68 454
Minera Florida Tailings 1,248 0.94 38 - - - 1,248 0.94 38
Total Minera Florida 2,093 2.10 141 2,992 3.65 351 5,086 3.01 492
Yamana Gold Mineral Reserves 381,501 0.44 5,446 456,751 0.52 7,598 838,252 0.48 13,044
Upper Beaver (50%) - - - 3,996 5.43 698 3,996 5.43 698
Total Gold Mineral Reserves 381,501 0.44 5,446 460,747 0.56 8,296 842,248 0.51 13,742
Agua Rica 384,871 0.25 3,080 524,055 0.21 3,479 908,926 0.22 6,559
                   
Silver                  
  Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained
  (000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's)
Cerro Moro - - - 1,954 648.3 40,723 1,954 648.3 40,723
El Peñón 1,062 192.4 6,567 3,332 158.8 17,011 4,394 166.9 23,578
Minera Florida Ore 846 29.6 804 2,992 22.5 2,165 3,838 24.1 2,970
Minera Florida Tailings 1,248 14.5 584 - - - 1,248 14.5 584
Total Minera Florida 2,093 20.6 1,388 2,992 22.5 2,165 5,086 21.7 3,553
Total Silver Mineral Reserves 3,155 78.4 7,955 8,278 225.1 59,899 11,433 184.6 67,855
Agua Rica 384,871 3.7 46,176 524,055 3.3 56,070 908,926 3.5 102,246
                   
Copper                  
  Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained
  (000's) (%) lbs (mm) (000's) (%) lbs (mm) (000's) (%) lbs (mm)
Alumbrera (12.5%) 9,915 0.38 82 485 0.30 3 10,399 0.37 85
Chapada 302,492 0.25 1,642 319,327 0.26 1,829 621,819 0.25 3,471
Yamana Copper Mineral Reserves 312,407 0.25 1,724 319,812 0.26 1,832 632,218 0.26 3,556
Upper Beaver (50%) - - - 3,996 0.25 22 3,996 0.25 22
Total Copper Mineral Reserves 312,407 0.25 1,724 323,808 0.26 1,854 636,214 0.26 3,578
Agua Rica 384,871 0.56 4,779 524,055 0.43 5,011 908,926 0.49 9,790
                   
Zinc                  
  Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained
  (000's) (%) lbs (mm) (000's) (%) lbs (mm) (000's) (%) lbs (mm)
Minera Florida 2,093 0.96 44 2,992 1.05 69 5,086 1.01 114
Total Zinc Mineral Reserves 2,093 0.96 44 2,992 1.05 69 5,086 1.01 114
                   
Molybdenum                  
  Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained
  (000's) (%) lbs (mm) (000's) (%) lbs (mm) (000's) (%) lbs (mm)
Alumbrera (12.5%) 9,915 0.011 2.50 485 0.009 0.09 10,400 0.011 2.60
Total Moly Mineral Reserves 9,915 0.011 2.50 485 0.009 0.09 10,400 0.011 2.60
Agua Rica 384,871 0.033 279 524,055 0.030 350 908,926 0.031 629
                   

Mineral Resources (Measured, Indicated, and Inferred)
The following tables set forth the Mineral Resource estimates for the Company’s mineral projects as at December 31, 2017.

  Measured Mineral
Resources
Indicated Mineral
Resources
Total Measured &
Indicated
Gold                  
  Tonnes Grade  Contained Tonnes Grade  Contained Tonnes Grade  Contained
  (000's) (g/t)  oz. (000's) (000's) (g/t)  oz. (000's) (000's) (g/t)  oz. (000's)
Alumbrera (12.5%) 3,082 0.39 39 375 0.37 5 3,457 0.39 43
Arco Sul  -  -  - - - -  -  -  -
Canadian Malartic (50%) 2,037 1.33 87 11,086 1.59 566 13,123 1.55 653
Cerro Moro - - - 3,321 2.23 238 3,321 2.23 238
Chapada 54,815 0.12 204 301,538 0.27 2,600 356,353 0.24 2,804
El Peñón 312 8.56 86 1,116 6.47 232 1,428 6.92 318
Gualcamayo 10,784 2.00 692 21,949 2.25 1,585 32,733 2.16 2,277
Jacobina 33,494 2.20 2,370 13,554 2.04 889 47,048 2.15 3,258
Jeronimo (57%) 772 3.77 94 385 3.69 46 1,157 3.74 139
La Pepa 15,750 0.61 308 133,682 0.57 2,452 149,432 0.57 2,760
Lavra Velha - - - - - - - - -
Minera Florida 1,176 6.04 228 3,722 5.05 604 4,897 5.28 832
Monument Bay - - - 36,581 1.52 1,787 36,581 1.52 1,787
Suyai - - - 4,700 15.00 2,286 4,700 15.00 2,286
Yamana Gold Mineral Resources 122,221 1.05 4,108 532,009 0.78 13,289 654,230 0.83 17,396
Amalgamated Kirkland (50%) - - - 634 6.51 133 634 6.51 133
Anoki-McBean (50%) - - - 934 5.33 160 934 5.33 160
Hammond Reef (50%) 82,831 0.70 1,862 21,377 0.56 388 104,208 0.67 2,251
Upper Beaver (50%) - - - 1,818 3.45 202 1,818 3.45 202
Upper Canada (50%) - - - - - - - - -
Canadian Malartic Corporation Properties (50%) 82,831 0.70 1,862 24,763 1.11 882 107,594 0.79 2,745
Total Gold Mineral Resources 205,052 0.91 5,970 556,772 0.79 14,171 761,824 0.82 20,142
Agua Rica 27,081 0.14 120 173,917 0.14 776 200,998 0.14 896
                   
Silver                  
  Tonnes Grade  Contained Tonnes Grade  Contained Tonnes Grade  Contained
  (000's) (g/t)  oz. (000's) (000's) (g/t)  oz. (000's) (000's) (g/t)  oz. (000's)
Cerro Moro - - - 3,321 190.3 20,313 3,321 190.3 20,313
El Peñón 312 191.0 1,914 1,116 224.3 8,048 1,428 217.0 9,962
Minera Florida 1,176 41.5 1,570 3,722 28.0 3,347 4,897 31.2 4,916
Suyai  - -  - 4,700 23.0 3,523 4,700 23.3 3,523
Total Silver Mineral Resources 1,487 72.9 3,484 12,858 85.2 35,230 14,346 83.9 38,714
Agua Rica 27,081 2.4 2,042 173,917 2.9 16,158 200,998 2.8 18,200
                   
Copper                  
  Tonnes Grade  Contained Tonnes Grade  Contained Tonnes Grade  Contained
  (000's) (%)  lbs (mm) (000's) (%)  lbs (mm) (000's) (%)  lbs (mm)
Alumbrera (12.5%) 3,082 0.40 27 375 0.39 3 3,457 0.40 31
Chapada 54,815 0.19 233 219,377 0.22 1,080 274,192 0.22 1,313
Yamana Copper Mineral Resources 57,897 0.20 260 219,752 0.22 1084 277,649 0.22 1344
Upper Beaver (50%) - - - 1,818 0.14 6 1,818 0.14 6
Total Copper Mineral Resources 57,897 0.20 260 221,570 0.22 1,089 279,467 0.22 1,350
Agua Rica 27,081 0.45 266 173,917 0.38 1,447 200,998 0.39 1,713
                   
Zinc                  
  Tonnes Grade  Contained Tonnes Grade  Contained Tonnes Grade  Contained
  (000's) (%)  lbs (mm) (000's) (%)  lbs (mm) (000's) (%)  lbs (mm)
Minera Florida 1,176 2.32 60 3,722 1.69 139 4,897 1.84 199
Total Zinc Mineral Resources 1,176 2.32 60 3,722 1.69 139 4,897 1.84 199
                   
Molybdenum                  
  Tonnes Grade  Contained Tonnes Grade  Contained Tonnes Grade  Contained
  (000's) (%)  lbs (mm) (000's) (%)  lbs (mm) (000's) (%)  lbs (mm)
Alumbrera (12.5%) 3,082 0.014 0.93 375 0.012 0.10 3,457 0.014 1.03
Total Moly Mineral Resources 3,082 0.014 0.93 375 0.012 0.10 3,457 0.014 1.03
Agua Rica 27,081 0.049 29 173,917 0.037 142 200,998 0.039 172
                   

 

   
  Inferred Mineral
Resources
Gold      
  Tonnes Grade  Contained
  (000's) (g/t)  oz. (000's)
Alumbrera (12.5%) 108 0.29 1
Arco Sul 5,000 4.02 646
Canadian Malartic (50%) 35,039 2.05 2,306
Cerro Moro 4,427 1.96 279
Chapada 74,599 0.25 609
El Peñón 17,469 1.71 960
Gualcamayo 17,920 2.48 1,430