Yamana Gold Inc.(AUY: Quote,YRI.TO: Quote,YAU.L) reported that its second-quarter net earnings were $43 million or $0.06 per share, compared with net earnings of $195 million or $0.26 per share for the second quarter of 2011. Net earnings were impacted by non cash impairment losses on available for sale investments and net unrealized foreign exchange losses recorded in the quarter.
Adjusted earnings were $135 million or $0.18 earnings per share in the second quarter of 2012, compared with $186 million or $0.25 per share in the same quarter of 2011.
Lower adjusted earnings was attributed to lower metal prices, lower volumes of copper and concentrate sold and lower equity earnings from the Company's investment in Alumbrera which although having produced 10.5 million pounds of copper attributable to Yamana during the second quarter, suspended export sales due to a new resolution in respect of repatriation of net proceeds from export sales in Argentina resulting in only 2.3 million pounds of copper sold attributable to Yamana.
Revenues were $536 million in the second quarter compared with $573 million in the same quarter of 2011. Lower revenues were mainly due to lower metal prices and lower volume of copper concentrate sales, modestly offset by increased sales of gold ounces contributed by the Mercedes mine, which was under construction during the comparative period.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share on revenues of $617.44 million for the quarter. Analysts' estimates typically exclude special items.
Production in 2012 is expected to be in the range of 1.2 to 1.3 million GEO. This will represent an increase from 2011 production of approximately 13%, most of which will come from Mercedes as production ramps up having completed commissioning. C1 Santa Luz and Ernesto/Pau-a-Pique are also expected to start production by the end of 2012.
Production in 2013 is expected to be in the range of 1.5 to 1.7 million GEO, most of which will come from a full year of production from C1 Santa Luz and Ernesto/Pau-a-Pique, the start up of Pilar, the processing of tailings at Minera Florida and the expansion of Gualcamayo.
By 2014, production is targeted to be at a sustainable level of approximately 1.75 million GEO.
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by RTT Staff Writer
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