London Stock Exchange welcomes Yamana Gold to the Main Market
London Stock Exchange today welcomes Yamana Gold Inc (LSE: AUY, TSX: YRI, NYSE: AUY), a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company’s shares were admitted to the Standard Segment of the Official List of the Financial Conduct Authority, at 8am on Tuesday 13 October 2020. The Company will maintain a primary listing on the Toronto Securities Exchange, as well as a listing on the New York Stock Exchange.
Yamana's diversified portfolio of five high-quality, long-life mines in mining-friendly jurisdictions in the Americas includes the Canadian Malartic Mine (Canada, 50% interest), the Jacobina Mine (Brazil), the El Peñón Mine (Chile), the Cerro Moro Mine (Argentina) and the Minera Florida Mine (Chile).
In 2019, Yamana's production platform was over 1 million gold equivalent ounces (“GEO”) at all-in-sustaining costs (“AISC”) below $980 per GEO. The Company delivered on financial results with 2019 highlights including $1,612.2 million in revenue and net earnings of $225.6 million at an average gold price of $1,392 per ounce. Cash flow from operating activities rose to $521.8 million, a 29% year-over-year increase that contributed to a $771.1 million decrease in net debt. In 2020, Yamana expects to produce 915,000 GEO and in 2021 and 2022 expects to deliver a production platform of 1 million GEO1.
Yamana views the payment of dividends as an important mechanism to manage its capital base, create financial discipline, and maximize returns for shareholders. Since April of 2019, the Company has announced increases to its annual dividend totalling 425%, with its dividend policy that balances free cash flow generation, yield and sustainability. The Company represents its dividend on a per GEO basis of production and recently, has increased its dividend to a new floor level of $100 per GEO annually. Further increases above the new floor will be based on cash flows and cash generation capacity. Consistent with its dividend policy and sustainability objectives, the Company has sufficient cash reserves on hand to support payment of the dividend at the increased level for three years.
Yamana's strong financial and operational performance has continued into 2020 with the Company continuing to generate significant cash flows and further increasing financial flexibility. In its October 7th announcement, the Company also disclosed that cash balances increased by a further $145 million as of the end of the third quarter to approximately $470 million from $325 million at the end of the second quarter.
Yamana also continues to deliver on its portfolio optimization strategy, which generates value from key organic growth projects at existing mines as well as a pipeline of development projects, exploration properties and other strategic assets, notably the Agua Rica project (Argentina), the Monument Bay project (Canada) and the Suyai project (Argentina). These, and other assets in the Company's portfolio, provide Yamana with a high degree of optionality to create long-term value via development or through monetizations that can increase cash flow and further strengthen the Company's financial position.
Peter Marrone, Chairman and Founder of Yamana Gold, commented:
“Yamana Gold is a unique opportunity for gold investors in London, backed by a strong, sustainable dividend. Today, we are delighted to be celebrating the Company’s London Stock Exchange listing. The London Stock Exchange is home to some of the world’s largest mining companies and we look forward to joining the ranks of the Tier 1 gold mining producers. It represents an important and timely strategic milestone as we look to the Company’s next significant phase of growth. The listing will provide us with a greater platform from which to access a larger global pool of investors to increase Yamana’s global profile.
“We believe Yamana will strongly appeal to this market as we offer investors access to a diversified, dividend paying responsible gold miner that boasts a strong growth pipeline in mining friendly jurisdictions.”
Yamana Gold has appointed Joh. Berenberg Gossler & Co. KG and Peel Hunt LLP as its nominated UK brokers and Tavistock as its UK public relations adviser. Memery Crystal LLP has acted as the UK legal adviser.
1. Gold plus silver at a ratio of approximately 98.85:1 in 2020 and 86.10 in 2021 and 2022.
(All amounts are expressed in United States Dollars unless otherwise indicated)