Yamana Gold (AUY) Reports Q3 EPS of $0.10
Yamana Gold (NYSE: AUY) reported Q3 EPS of $0.10, versus $0.03 reported last year. Revenue for the quarter came in at $0 versus the consensus estimate of $461.98 million.
- Adjusted net earnings(1) of $92.9 million or $0.10 per share basic and diluted compared to adjusted net earnings of $49.5 million or $0.05 per share basic and diluted a year earlier.
- Net earnings were $55.6 million or $0.06 per share basic and diluted compared to net earnings of $201.3 million or $0.21 per share basic and diluted a year earlier.(1)
- Strong cash flows from operating activities of $215.0 million and cash flow from operating activities before net change in working capital of $199.0 million reflect the impact of strong production, strong precious metals prices and the positive impact of foreign exchange on the costs of the Company.
- If adjusted for margins associated with the sales of Barnat pre-commercial production of approximately $13.5 million which are disclosed as a credit to expansionary capital and investing cash outflows, and for the $8.6 million of costs incurred in association with COVID-19, normalized cash flows from operating activities and normalized cash flows from operating activities before net change in working capital(3) would have been approximately $237.1 million and $221.1 million, respectively.
- Cash flows from operating activities is at multi-year highs which includes periods with considerably more production from mines that have since been divested or discontinued.
- To ensure consistency of and prospects for cash flows, the Company compares cash flows in a particular quarter with the average of cash flows in the preceding three quarters. This measure is looked at on a rolling basis quarter over quarter. Continuing with a recent trend, cash flow from operating activities and net free cash flow(3) for the quarter exceeded the averages of such cash flows for the preceding three quarters by 52% and 103%, respectively, thereby further demonstrating the strength and resilience of the cash flow generation capacity of the Company.
- Net free cash flow(2) of $185.5 million and free cash flow before dividends and debt repayments(2) of $156.8 million, representing increases of 107% and 316% from the comparative prior year quarter.
- Net debt(3) decreased by $148.9 million to $619.1 million, which advances and the Company’s objective of achieving a positive net cash(3) position which is now well ahead of schedule. The Company ended the quarter with a leverage ratio of under 0.8x, ahead of schedule in relation to the Company's previously stated objectives.
- As at September 30, 2020, the Company had cash and cash equivalents of $474.2 million, an increase of $149.4 million from June 30, 2020. The Company has sufficient cash on hand and liquidity through its current balances and incoming cash flows to fully manage its business and fund growth without having to borrow. This includes, but is not limited to obligations related to the Jacobina plant expansions, development of the Odyssey underground project at Canadian Malartic, generative exploration, development of the integrated Agua Rica and Alumbrera project, and further balance sheet improvements, while having excess funds to dedicate to possible other opportunities and dividend increases.
- With its preliminary operating results reported in October, the Company increased its 2020 production guidance to 915,000 gold equivalent ounces ("GEO")(4) from the previous guidance of 890,000 GEO, representing an increase of 3%. Gold production and silver production guidance have increased from previous guidance by approximately 1% and 6%, respectively.
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