Yamana Gold Inc.

Yamana said third-quarter gold production was over 216,000 ounces, silver production was over 2.2 million ounces, and GEO production was over 241,000 ounces. Earnings were $19.8 million, or $0.02 per share, and adjusted EPS was $0.05. Cash flow from operating activities before net change in working capital was $157.1 million, cash flow from operations was $164.7 million, and free cash flow before dividend and debt repayment was $24.4 million. Gross margin was described as strong, but no specific gross margin figure was given. On costs, management said higher gold-to-silver ratios increased unitary costs per GEO sold by over $27 per ounce versus plan, yet all-in sustaining costs are expected to be within the upper end of annual guidance when adjusted for that ratio effect. Cash and cash equivalents ended at $539.2 million, including $211.3 million available for MARA. Looking ahead, the company said Q4 operating cash flow should increase with higher production, production in the second half should be comparable to the first half, and annual production guidance remains achievable.

Daniel Racine emphasized operational execution, safety, ESG progress, and cash generation. He highlighted a total recordable injury rate of 0.85 for the first nine months of 2022 and noted improvements in ESG scores, including S&P CSA from 48 to 50, MSCI from BBB to A, and Sustainalytics to 21.2 from 24.7. Strategically, he stressed that the company is on track to meet annual guidance and that production should step up again in the fourth quarter.

The financial message was that results remained resilient despite inflation. Daniel Racine said underlying costs for metals sold were within plan, but the higher gold-to-silver ratio raised unit costs by over $27 per GEO versus plan; he also said commodity input inflation appears to have peaked in the second and third quarters. He pointed to $157.1 million of operating cash flow before working capital, $164.7 million of operating cash flow, $24.4 million of free cash flow before dividend and debt repayment, and $539.2 million of cash and cash equivalents at quarter-end, including $211.3 million for MARA.

There were no analyst questions during the call, so there was no Q&A debate over results or guidance. The only back-and-forth was management reiterating the Gold Fields deal rationale and the board’s unanimous recommendation. Peter Marrone also addressed concerns about structure, premium valuation, and Gold Fields’ production outlook, arguing the deal is fairly valued and strategically stronger as a combination.