Yamana Gold Inc. (AUY,YRI.TO,YAU.L) reported that its third-quarter net earnings were $59.97 million or $0.08 per share, compared with net earnings of $115.77 million or $0.16 per share in the year ago quarter.
Net earnings for the third quarter of 2012 were impacted by an increase in the Chilean tax rate, enacted in late September which affects the tax rates on both current and deferred income taxes.
Adjusted earnings were $178 million or $0.24 earnings per share in the third quarter of 2012, compared to $190 million or $0.26 per share in the same quarter of 2011. Analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.
Lower adjusted earnings was attributed to lower metal prices, primarily copper and silver prices, partly offset by higher volume of gold sales and increased equity earnings from the Company's interest in Alumbrera.
Revenues for the quarter were $611.81 million compared to $555.21 million in the same quarter of 2011. Three analysts had consensus revenue estimate of $613.89 million for the quarter.
Higher revenues were mainly due to higher sales volume of gold from the production of the new Mercedes mine, which was under construction during the comparative period, partly offset by lower metal prices and lower volume of copper concentrate sales.
Total production was 310,490 gold equivalent ounces or GEO for the third quarter, including the Company's attributable production from the Alumbrera mine of 13,633 GEO and production during commissioning of the tailings re-treatment project at Minera Florida of 1,861 GEO, compared with production of 279,274 GEO for the quarter ended September 30, 2011.
Copper production for the third quarter was 39.4 million pounds from the Chapada mine, compared with 41.4 million pounds for the third quarter 2011.
Production in 2012 is expected to be in the range of 1.175 to 1.310 million GEO with a target level exceeding 1.2 million GEO.
Production in 2013 is expected, to be in the range of 1.48 to 1.66 million GEO with a target level exceeding 1.5 million GEO.
By 2014, production is targeted to be at a sustainable level of over 1.7 million GEO with a target of approximately 1.75 million GEO.
Development capital expected to be spent in 2012 remains to be below $665 million as planned.
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