YAMANA GOLD PRESENTATION Title Slide
Cautionary Statement CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This presentation contains “forward - looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company’s strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words s uch 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 Company’s expectations in connection with the projects and exploration programs discussed herein being met, the impact of gen eral 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, copper, silver and zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso and the Argentine Peso versus the United States Dollar), possible variations in ore grade or recovery rates, changes in the Company’s hedging program, changes in accounting policies, changes in the Company’s corporate mineral resources, risk related to non -core mine dispositions, changes in project parametres as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risk related to joint venture operations, the possibility of project cost overruns or 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 time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company’s annual Management’s Discussion and Analysis and Annual Information Form for the year ended December 31, 2 009 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 chang e, 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 op erational 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 appro priate for other purposes. 2
Our objective To realize value by continuing to build sustainable and reliable gold production through optimizing existing operations and expanding current, near- term and in-development production plans, developing new operations and advancing our exploration properties. 3
Stable jurisdictions Approximate GEO production by country 20% 30% 50% Brazil Chile Argentina 4
Four core themes Growth PRODUCTION PER SHARE GROWTH CASH FLOW PER SHARE GROWTH RESOURCE PER SHARE GROWTH VALUE PER SHARE GROWTH 5
Production growth 2010 Production (GEO) 286,000 267,409 253,263 239,837 Q1-10 Q2-10 Q3-10 Q4-10E 6
Q4 2010 preliminary production Mine (oz) Q4-10E FY 2010E 37,000 135,648 Chapada 114,000 428,134 El Peñón Q4 Production 36,000 134,901 Gualcamayo Highlights: 34,000 122,443 Jacobina December production at 32,000 105,556 Minera Florida - Minera Florida approx. 12,400 GEO 20,000 70,232 Fazenda Brasileiro Gualcamayo - 13,000 49,595 Alumbrera approx. 14,100 ozs. Au 286,000 1,046,509 TOTAL GEO 2,432,000 10,085,000 TOTAL SILVER 39,930,000 149,381,000 TOTAL COPPER (lbs) (1) 1. From Chapada only. 7
Production Strength in the second half 2010 GEO production: H1 H2* 219,000 208,922 77,405 66,929 67,972 66,637 59,652 58,244 54,807 45,904 37,161 33,071 Chapada El Peñón Gualcamayo Jacobina Minera Florida Fazenda Brasileiro 8 * H2 production includes Q3 actual and Q4E
Operating Mines Sustainable production base Brazil Chapada – Open pit operation utilizing a flotation circuit to produce a copper-gold concentrate Jacobina – Underground, sub-level open stoping operation processing ore through a CIP (carbon in pulp) circuit Fazenda Brasileiro – Underground sub-level, open stoping operation processing ore through a CIP circuit Chile El Peñón – Underground cut and fill operation, ore containing gold and silver processed through a Merrill Crowe circuit Minera Florida – Underground cut and fill and open stoping operation, ore containing gold and silver processed through conventional flotation and Merrill Crowe circuits Argentina Gualcamayo – open pit, heap leach operation 9
Production Proven track record of growth Annual GEO production: 2006-2010 1,046,509 1,025,677 854,980 430,694 146,828 2006 2007 2008 2009 2010E 10
Production Building value through growth Future Production (GEO) 1,700,000 + 1,675,000 1,325,000 1,145,000 2011E 2012E 2013E 2014E Silver production is reported as a gold equivalent at a ratio of 50:1 11
Organic production growth Established growth profile Production (GEO) +440,000 Production expected to be at an annual rate of 1.26 M 1.7 million GEO by 2014 with additional growth potential Change 2010/2014 62% Existing Advanced Operations Development Including Projects Expansions 12
Development Projects Brazil C1 Santa Luz – Open pit project, processing ore through a flotation and CIL (carbon in leach) circuit Pilar – Underground room and pillar project, processing ore through a gravity and CIL circuit Ernesto/Pau-a-Pique – Open pit and underground project processing ore through a gravity and CIL circuit Mexico Mercedes – Underground cut and fill project processing ore through a CIL and Merrill Crowe circuit 13
Reserves and Resources growth 2004-2009 In millions of GEO 36.5 14.7 M&I P&P 9.4 21.8 5.3 4.1 2004 2009 Over 280% growth in total mineral resources since 2004 (1,2) (1) Total mineral resources are inclusive of mineral reserves. Also includes mid-year mineral resource increases at Pilar and Gualcamayo (see Press release dated - Aug 4, 2010) 14 (2) Please refer to the Resources and Reserves table at the back of this presentation for further information. Silver has been treated as a gold equivalent at a 55:1 ratio
Mineral Reserve and Resource Growth 2010 - 2011 Already delivered: P Gualcamayo P Chapada P Agua Rica Pending - Other mines and projects : Mercedes Pilar Jacobina Fazenda Brasileiro 15
Operating Cash Flow Continuous growth Operating Cash Flow: 2010 YTD Operating $496M Cash Flow (1) 2010E Cash Costs: - $485M $411M Less than $125 per GEO 2011-2013 Cash $244M Costs: Less than $250 per GEO $40M 2006 2007 2008 2009 (1) Operating cash flow and cash costs are non – GAAP measures. A reconciliation of non-GAAP measures can be found at the end of this presentation 16
2010 An Important Year Demonstrated complete integration and digestion of acquisitions and building efforts of 2006-2007 Construction decision made on 3 projects Delivered value through record production at El Peñón and Jacobina Continued cost containment – low costs 17
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