Yamana Gold Inc (TSE:YRI) (NYSE:AUY) shares were on the move Friday after the company announced it had increased its three-year production guidance for its Jacobina gold mine in Brazil.
The Toronto-based miner increased its 2019 guidance to 150,000 ounces of gold for the year and its total life-of-mine production to over 170,000 ounces per year after 2021, noting in a release that it was “ahead of schedule” in its plans to boost output.
Shares of Yamana rose 3.7% in Toronto at C$3.35 and 3.2% in New York at US$2.56.
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At Jacobina, Yamana has implemented a two-phased plan to up production and improve the strategic life of mine. The first phase involves optimizing the plant to increase throughput to 6,500 tons per day by mid-2020.
The higher throughput should allow Jacobina to produce around 170,000 ounces per year, a 21% increase compared to the 145,000-ounce figure currently in place.
Phase 2 of the expansion plan should result in a larger plant capacity ranging from 7,500 to 8,500 tons per day, increasing Jacobina’s gold production to at least 200,000 ounces per year and up to 225,000 ounces per year by 2023 based on current mineral reserve grades, according to Yamana.
The second phase of the expansion project is expected to begin in 2021 or 2022 and subject to a prefeasibility study to optimize mining and production scenarios.
“Jacobina has improved significantly in the last several years across all measures, and it is now one of our higher quality, high value operations,” said Daniel Racine, CEO of Yamana.
“We believe that it is on the cusp of becoming a world class mine, particularly once a decision is made to proceed with the Phase 2 expansion, given strong production, production growth, increasing mineral inventory at improving grades, and continuous increases in cash flow.”
Yamana is a Canadian-based gold, silver and copper producer with a significant portfolio comprised of operating mines, development stage projects, and exploration and mineral properties throughout the Americas, mainly in Canada, Brazil, Chile and Argentina.
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