True Value Proposition Corporate S ummary May 2015 TS X: YRI | NYS E: AUY
Cautionary Note Regarding Forward-looking S tatement CAUTIONARY NOTE REGARDING FORWARD-LOOKING S TATEMENTS : This present at ion cont ains “ forward-looking st at ement s” wit hin t he meaning of t he Unit ed S t at es Privat e S ecurit ies Lit igat ion Reform Act of 1995 and applicable Canadian securit ies legislat ion. Except for st at ement s of hist orical fact relat ing t o t he Company, informat ion cont ained herein const it ut es forward-looking st at ement s, including any informat ion as t o t he Company’ s st rat egy, plans or fut ure financial or operat ing performance. Forward-looking st at ement s are charact erized by words such as “ plan,” “ expect ” , “ budget ” , “ t arget ” , “ proj ect ” , “ int end,” “ believe” , “ ant icipat e” , “ est imat e” and ot her similar words, or st at ement s t hat cert ain event s or condit ions “ may” or “ will” occur. Forward-looking st at ement s are based on t he opinions, assumpt ions and est imat es of management considered reasonable at t he dat e t he st at ement s are made, and are inherent ly subj ect t o a variet y of risks and uncert aint ies and ot her known and unknown fact ors t hat could cause act ual event s or result s t o differ mat erially from t hose proj ect ed in t he forward-looking st at ement s. These fact ors include t he Company’ s expect at ions in connect ion wit h t he expect ed product ion and explorat ion, development and expansion plans at t he Company’ s proj ect s discussed herein being met, the impact of proposed opt imizat ions at t he Company’ s proj ect s, t he impact of t he proposed new mining law in Brazil and t he impact of general business and economic condit ions, global liquidit y and credit availabilit y on t he t iming of cash flows and t he values of asset s and liabilit ies based on proj ect ed fut ure condit ions, fluct uat ing met al prices (such as gold, copper, silver and zinc), currency exchange rat es (such as t he Brazilian Real, the Chilean Peso, t he Argent ine Peso, and t he Mexican Peso versus t he Unit ed S t at es Dollar), possible variat ions in ore grade or recovery rat es, changes in t he Company’ s hedging program, changes in account ing policies, changes in mineral resources and mineral reserves, risk relat ed t o non-core mine disposit ions, risks relat ed t o acquisit ions, changes in proj ect paramet ers as plans cont inue t o be refined, changes in proj ect development, const ruct ion, product ion and commissioning t ime frames, risk relat ed t o j oint venture operat ions, t he possibilit y of proj ect cost overruns or unant icipat ed cost s and expenses, higher prices for fuel, st eel, power, labour and ot her consumables cont ribut ing t o higher cost s and general risks of t he mining indust ry, failure of plant , equipment or processes t o operat e as ant icipat ed, unexpect ed changes in mine life, final pricing for concent rat e sales, unant icipat ed result s of fut ure st udies, seasonalit y and unant icipat ed weat her changes, cost s and t iming of t he development of new deposit s, success of explorat ion act ivit ies, permit t ing t ime lines, government regulat ion and t he risk of government expropriat ion or nat ionalizat ion of mining operat ions, environment al risks, unant icipat ed reclamat ion expenses, t it le disput es or claims, limit at ions on insurance coverage and t iming and possible out come of pending lit igat ion and labour disput es, as well as t hose risk fact ors discussed or referred t o in t he Company’ s current and annual Management ’ s Discussion and Analysis and t he Annual Informat ion Form for t he year ended December 31st , 2014 filed wit h t he securit ies regulat ory aut horit ies in all provinces of Canada and available at www.sedar.com, and t he Company’ s Annual Report on Form 40-F for t he year ended December 31 st , 2014 filed wit h t he Unit ed S t at es S ecurit ies and Exchange Commission. Alt hough t he Company has at t empt ed t o ident ify import ant fact ors t hat could cause act ual act ions, event s or result s t o differ mat erially from t hose described in forward-looking st at ement s, t here may be ot her fact ors t hat cause act ions, event s or result s not t o be ant icipat ed, est imat ed or int ended. There can be no assurance t hat forward-looking st at ement s will prove t o be accurat e, as act ual result s and fut ure events could differ mat erially from t hose ant icipat ed in such st at ement s. The Company undert akes no obligat ion t o updat e forward-looking st at ement s if circumst ances or management ’ s est imat es, assumpt ions or opinions should change, except as required by applicable law. The reader is caut ioned not t o place undue reliance on forward-looking st at ement s. The forward-looking informat ion cont ained herein is present ed for t he purpose of assist ing invest ors in underst anding t he Company’ s expect ed financial and operat ional performance and result s as at and for t he periods ended on t he dat es present ed in t he Company’ s plans and obj ect ives and may not be appropriat e for ot her purposes. 2
2015 Overview Priorit ies and Focus • Meeting and exceeding production plan • Meeting cost plan • Continuing cost containment and improvement initiatives through optimizations and efficiencies, including G&A • Maximizing cash flow and free cash flow • Advancing exploration discoveries at our mines • Increasing and improving quality of resources and reserves • Advancing Cerro Moro to production in 2017 (with construction decision made) • Advancing several other near development stage proj ects to expand pipeline • Maximizing value in secondary portfolio, dormant assets and advancing exploration activities including Brio Gold and Agua Rica • Capitalizing on exceptional Canadian platform to derive value from organic and external opportunities including Pandora, CHL, Kirkland Lake, Hammond Reef, and Mega Precious (pending completion of acquisition announce April 24, 2015) 3
Focus on Quality Ounces How one looks at Y amana Other Value Creation Assets: • Agua Rica • Hammond Reef • Kirkland Lake • Pandora • Mega Precious Met als (pending complet ion of acquisit ion announced April 24, 2015) 4
Operations Overview Q1 2015 Production Gold (ounces) 304,874 S ilver (ounces) 2.5M Copper (lbs Chapada) 26.8M Costs Gold S ilver Cash Costs (1) per ounce $654 $7.10 Co-Product Cash Costs (1) per ounce $696 $7.71 ustaining Cash Costs (1,2) per ounce All-in S $893 $10.45 ustaining Cash Costs (1,2) per ounce Co-Product All-in S $896 $10.55 Co-Product Cash Costs per pound of copper (Chapada) $1.81 1. A non-GAAP measure. A reconciliation of which can be found at www.yamana.com/Q12015 in accordance with previous Canadian GAAP for public entities. 2. Includes cash costs, sustaining capital, corporate general and administrative expense, and exploration expense. 5
Q1 Operations Highlights • Quarterly gold production increased 33% year-over-year, driven by: 20% 9% 15% Increase in Increase in Increase in production at production at production at Gualcamayo Chapada Minera Florida 25% 67.9koz Increase in Record production at production at Jacobina with 23% Canadian Malartic lower cash costs 1 1. A non-GAAP measure. A reconciliation of which can be found at www.yamana.com/Q12015 in accordance with previous Canadian GAAP for public entities. 6
Focus on Primary Portfolio • Innovative plan to reclaim value at 300 $824/ oz Brio Gold Cash Costs 1 250 • Other cornerstone assets offer Gold Ounces (000s) potential to further enhance company $801/ oz 200 value by producing quality ounces at Cash Costs 1 better margins 150 • Flagship assets (Canadian Malartic, Chapada, and El Peñón) constitute top- 100 $592/ oz tier assets with significant production Cash Costs 1 and co-product cash costs of 50 $592/ oz of gold 0 Q1 Continuing to enhance our primary portfolio of cornerstone assets 7 1. Co-Product cash costs. A non-GAAP measure. A reconciliation of which can be found at www.yamana.com/Q12015 in accordance with previous Canadian GAAP for public entities.
Q1 Operations S napshot Brazil Chapada • 9% increase in gold production reflects Cash Costs (1,2) Production contribution of Corpo S ul 22,360 oz. Au ($193)/ oz. Au • Commissioning of in-pit crusher continued $1.81/ lb (3) 26.8M lbs Cu • Co-product gold cash costs decreased 9% 2015 Guidance 120,000 oz. Au ($595)/ oz. Au $1.70/ lb (3) 120M lbs Cu Jacobina • 25% increase in production year-over-year Cash Costs (2) Production • Cash costs 23% lower year-over-year 18,591 oz. Au $962 • Focus remains on quality ounces with sustainable margins 2015 Guidance 110,000 oz. Au $680 1. Cash Costs on a by-product basis. 8 2. A non-GAAP measure. A reconciliation of which can be found at www.yamana.com/Q12015 in accordance with previous Canadian GAAP for public entities. 3. Copper cash costs on a co-product basis
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