YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or the
“Company”) is pleased to announce it is in the advanced stages of
the application process with the Financial Conduct Authority
and the London Stock Exchange (“LSE”) for the admission
of the Company’s common shares to the standard
segment of the Official List and to trading on the LSE’s Main
Market.
Highlights
- Yamana is in the advanced stages of
the LSE listing process and intends for the Company’s common shares
to be admitted to the standard segment of the Official List and to
trading on the LSE’s Main Market in the next few months.
- In addition to its other listings
on the New York Stock Exchange and the Toronto Stock Exchange, the
Company believes that a listing on the LSE is well positioned to
bring European investors on to the Company’s share register.
- The LSE listing will provide all
investors access and exposure to:
- A large Canadian-based precious metals producer with
significant gold and silver production in established mining
jurisdictions in the Americas and a proven track record of new
discoveries and conversion of mineral resources to mineral
reserves.
- Five high-quality, long-life producing mines in mining-friendly
jurisdictions.
- A production platform of approximately 1 million gold
equivalent ounces (“GEO”)(1) in 2021 and 2022 with a low cost
structure.
- Strong and increasing free cash flow along with continued
future growth with low near-to-medium term capital
commitments.
- A strong value proposition based on trading multiples, a rising
cash flow profile, and a considerable net asset value base with
significant near-future improvement opportunities.
- A portfolio of well-advanced development projects, highly
prospective exploration properties and strategic investments
throughout the Americas that provide optionality for value creation
via development or asset monetizations that can further strengthen
the financial position of the Company.
- A commitment to the highest ESG (environmental, social and
governance) standards with a long track record of sustainable
development and environmental stewardship in the communities and
countries in which the Company operates.
- A strong balance sheet with net debt below $769 million with a
net debt(2) leverage ratio of 1.0x and trending below 0.5x in the
next few years.
- A track record of delivering cash returns to shareholders with
dividends which to date have accumulated to over $940 million since
dividends were first paid just over thirteen years ago and which,
more recently, increased three times in the last year for a
cumulative increase of more than 210%.
- The Company is not intending to
raise equity capital in conjunction with the LSE listing.
LSE Listing
By listing on the LSE, Yamana intends to become
the ‘investment of choice’ in London for those looking for exposure
to gold, supported by a strong, sustainable dividend.
Among the factors considered by the Company in
pursuing the listing, the Company noted that the LSE currently has
a limited number of sizeable pure-play gold producers with annual
production of 1 million ounces or more, all of which comes from
mines in established mining jurisdictions in the Americas with
supportive infrastructure and protocols relating to mining. Yamana
believes the LSE listing will provide UK and European investors
with greater, more local exposure to a new high-quality investment
choice of a type not currently available on the exchange.
Listing on the LSE will offer Yamana improved
liquidity and allow the Company to expand its share register with
an enlarged investor base.
Peter Marrone, Executive Chairman of
Yamana Gold, commented:
“This is an ideal time to be to be joining the
London market. Yamana is in as strong a position as it has ever
been, with a strong and rising cash flow profile, an outstanding
portfolio of producing mines and projects, and a number of
compelling opportunities to grow organically. We have the balance
sheet strength to advance these opportunities while continuing to
increase shareholder returns, as evidenced by the three increases
to our dividend over the past 12 months.
“Significant upside for gold equities remains,
driven by recent events and the macroeconomic backdrop. As an
Americas-focussed gold producer, with a first-class management team
and Board, alongside a healthy dividend yield, Yamana offers a new,
high-quality investment choice for the European investor looking
for long-term exposure to gold.
“Investing in gold is prudent at any time, but
investing in a multi-asset, multi-jurisdictional, sizeable and
diversified and high-quality gold producer, with a strong balance
sheet and a commitment to paying dividends, is better still.”
Daniel Racine, President and Chief
Executive Officer, added:
“We pride ourselves on operational excellence
and a whole-hearted commitment to the highest standards on
environmental, social, and governance behaviour. We believe these
qualities will resonate well with European and UK investors who
focus on the London market.”
Track Record of Operational Strength,
Financial Performance, Delivering Returns to Shareholders: A
Compelling Investment Case
Yamana’s diversified portfolio of five
high-quality, long-life mines in mining-friendly jurisdictions in
the Americas includes the Canadian Malartic Mine (Canada, 50%
interest), the Jacobina Mine (Brazil), the El Peñón Mine (Chile),
the Cerro Moro Mine (Argentina) and the Minera Florida Mine
(Chile).
In 2019, Yamana’s production platform was
approximately 1 million GEO at all-in-sustaining costs (“AISC”)(2)
below $980 per GEO. The Company delivered on financial results with
2019 highlights including $1,612.2 million in revenue and net
earnings of $225.6 million at an average gold price of $1,392 per
ounce. Cash flow from operating activities rose to $521.8 million,
a 29% year-over-year increase that contributed to a $771.1 million
decrease in net debt.
The Company views the payment of dividends as an
important mechanism to manage its capital base, create financial
discipline, and maximize returns for shareholders. The Company has
begun to report dividends on a GEO basis with a target range of $50
to $100 per GEO annually for shareholders.
Yamana’s strong financial and operational
performance has continued into 2020 with the Company continuing to
generate significant cash flows, reducing net debt and further
increasing financial flexibility. In its second quarter ended June
30, 2020, net debt decreased by approximately $100 million to below
$769 million. The Company’s cash position at the end of the second
quarter was in excess of $320 million.
The Company also continues to deliver on its
portfolio optimization strategy, which generates value from a
pipeline of development projects, exploration properties and other
strategic assets, notably the Agua Rica project (Argentina), the
Monument Bay project (Canada), the Suyai project (Argentina), and
interests in Equinox Gold (TSX:EQX; NYSE American:EQX) and Nomad
Royalty (TSX:NSR; OTCQX:NSRXF). These, and other assets in the
Company’s portfolio, provide Yamana with a high degree of
optionality to create long-term shareholder value via development
or through monetizations that can increase cash flow and further
strengthen the Company’s financial position.
Appointment of Legal Advisor, Corporate
Broker, and Public Relations
Yamana has engaged Memery Crystal LLP as its
legal advisors and retained Tavistock Communications Ltd. to
provide financial public relations and investor relations services
in the UK. The Company has engaged Velocity Trade Capital Ltd. as a
Canadian financial advisor and has initiated the process of
appointing UK corporate brokers.
About Yamana Gold
Yamana Gold Inc. is a Canadian-based precious
metals producer with significant gold and silver production,
development stage properties, exploration properties, and land
positions throughout the Americas, including Canada, Brazil, Chile
and Argentina. Yamana plans to continue to build on this base
through expansion and optimization initiatives at existing
operating mines, development of new mines, the advancement of its
exploration properties and, at times, by targeting other
consolidation opportunities with a primary focus in the
Americas.
FOR FURTHER INFORMATION PLEASE
CONTACT:
Investor Relations+1
416-815-02201-888-809-0925Email: investor@yamana.com
Tavistock (UK Public
Relations)Jos Simson / Charles Vivian / Emily
MossTelephone: +44 7899 870 450 / +44 7977 297 903 / +44 778 855
4035Email: yamana@tavistock.co.uk
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This news release contains or incorporates by reference
“forward-looking statements” and “forward-looking information”
under applicable Canadian securities legislation and within the
meaning of the United States Private Securities Litigation Reform
Act of 1995. Forward-looking information includes, but is not
limited to information with respect to the Company’s strategy,
plans or future financial or operating performance including
guidance and liquidity and the Company’s intentions with respect to
listing on the LSE. Forward-looking statements are
characterized by words such as “plan", “expect”, “budget”,
“target”, “project”, “intend”, “believe”, “anticipate”, “estimate”
and other similar words, or statements that certain events or
conditions “may” or “will” occur. Forward-looking statements are
based on the opinions, assumptions and estimates of management
considered reasonable at the date the statements are made, and are
inherently subject to a variety of risks and uncertainties and
other known and unknown factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. These factors include the UKLA not
approving the Company’s eligibility for listing, unforeseen impacts
on guidance, liquidity, cash flow, monetization initiatives, and
available residual cash, an inability to maintain a cash reserve
fund balance that can support current or future dividend increases,
the outcome of various planned technical studies, production and
exploration, development, optimizations and expansion plans at the
Company's projects, changes in national and local government
legislation, taxation, controls or regulations and/or change in the
administration of laws, policies and practices, and the impact of
general business and economic conditions, global liquidity and
credit availability on the timing of cash flows and the values of
assets and liabilities based on projected future conditions,
fluctuating metal prices (such as gold, silver and zinc), currency
exchange rates (such as the Brazilian Real, the Chilean Peso and
the Argentine Peso versus the United States Dollar), the impact of
inflation, possible variations in ore grade or recovery rates,
changes in the Company’s hedging program, changes in accounting
policies, changes in mineral resources and mineral reserves, risks
related to asset dispositions, risks related to metal purchase
agreements, risks related to acquisitions, changes in project
parameters as plans continue to be refined, changes in project
development, unanticipated costs and expenses, higher prices for
fuel, steel, power, labour and other consumables contributing to
higher costs and general risks of the mining industry, failure of
plant, equipment or processes to operate as anticipated, unexpected
changes in mine life, final pricing for concentrate sales,
unanticipated results of future studies, seasonality and
unanticipated weather changes, costs and timing of the development
of new deposits, success of exploration activities, permitting
timelines, government regulation and the risk of government
expropriation or nationalization of mining operations, risks
related to relying on local advisors and consultants in foreign
jurisdictions, environmental risks, unanticipated reclamation
expenses, risks relating to joint venture or jointly owned
operations, title disputes or claims, limitations on insurance
coverage, timing and possible outcome of pending and outstanding
litigation and labour disputes, risks related to enforcing legal
rights in foreign jurisdictions, as well as those risk factors
discussed or referred to herein and in the Company's Annual
Information Form filed with the securities regulatory authorities
in all provinces of Canada and available at www.sedar.com, and
the Company’s Annual Report on Form 40-F filed with the United
States Securities and Exchange Commission. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance
that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. The Company undertakes no
obligation to update forward-looking statements if circumstances or
management’s estimates, assumptions or opinions should change,
except as required by applicable law. The reader is cautioned not
to place undue reliance on forward-looking statements. The
forward-looking information contained herein is presented for the
purpose of assisting investors in understanding the Company’s
expected financial and operational performance and results as at
and for the periods ended on the dates presented in the Company’s
plans and objectives and may not be appropriate for other
purposes.
All amounts are expressed in United States Dollars unless
otherwise indicated.
- GEO includes gold plus silver converted to gold equivalent at a
ratio of 86.10 for the guidance period of 2021-2022.
- A cautionary note regarding non-GAAP performance measures as
well as detailed reconciliations are included in 'Section 10:
Non-GAAP Performance Measures' of the Company's Management,
Discussion and Analysis of Operations and Financial Conditions,
available on the Company's website at www.yamana.com, and on SEDAR
at www.sedar.com.
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