AUY - Yamana to expand Jacobina mine for lower than expected capex
Yamana Gold (AUY +5.2%) opens higher after edging Q2 earnings estimates, raising its quarterly dividend by 14% to $0.03/share, and reporting "significant progress" on the Phase 2 expansion of the Jacobina mine. Q2 EBIT rose to $87.3M from $9.7M in the same period last year. Q2 gold production jumped 32% Y/Y to 217,402 oz., while silver output fell 19% to 1.63M oz.; Jacobina and Canadian Malartic gold production reached all-time quarterly highs of 47.5K and 92.1K oz., respectively. Q2 all-in sustaining costs of $1,081/oz. met company guidance. Yamana said it now sees capex for the expansion of its Jacobina mine in Brazil at $15M-$20M, compared with the original estimate of $57M. The company said trials at Jacobina showed that the processing plant could consistently achieve daily operating throughput above 8K mt/day, significantly exceeding Phase 1 nameplate capacity, after the plant achieved 7,500 mt/day in May.
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Yamana to expand Jacobina mine for lower than expected capex