Yamana Gold (AUY) Produces First Gold & Silver At Cerro Moro
Zacks Investment Research | May 20, 2018 09:44PM ET
Yamana Gold Inc. (NYSE:AUY) declared the first gold and silver production at its Cerro Moro mine located in Santa Cruz province, Argentina. The mine is a high-grade gold and silver operation sourcing ore from a combination of open pit and underground mining. Production ramp up at the mine remains on track and the company expects commercial production in second-quarter 2018.
The mine is expected to produce 85,000 ounces of gold this year. Gold production is expected to increase to 125,000 ounces in 2019 and further to 130,000 ounces in 2020. Total cost of sales per ounce sold for gold is expected to be around $1,100 for 2018 while cash cost per unit and all-in sustaining cost (AISC) per unit are expected to be $510 and $650, respectively.
Silver production is expected to be roughly 3.8 million ounces in 2018 and increase to 6 million ounces in 2019 and 8.3 million ounces in 2020. Total cost of sales for silver is projected at $15.25 per ounce sold for 2018 at AISC of $9.15 per unit produced.
Per the company, most of the production of Cerro Moro is expected in the second half of 2018. Moreover, the mine’s production ramp up is currently in progress as the company is focused on ensuring mill throughput rates to reach its nameplate capacity of 1,000 tons per day. Yamana is also making efforts to optimize operation and ensure that operating costs reach guidance levels.
Yamana’s shares have lost 4.1% in the past three months, underperforming the Zacks Investment Research
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