Yamana Gold Q4 adjusted profit up on higher metal
TORONTO (Reuters) - Yamana Gold YRI.TO reported on Wednesday an 8 percent increase in fourth-quarter adjusted profit on higher precious metal prices and a boost in concentrate sales volume.
The Toronto-based gold miner also announced an 11 percent boost in its overall reserves and said it would increase its annual dividend by 10 percent to 22 cents.
On an adjusted basis, earnings for the quarter ended December 31, rose to $184.2 million, or 25 cents a share from $170.98 million or 23 cents per share. That was slightly above analyst expectations of 24 cents a share on revenue of $601.5 million, according to Thomson Reuters I/B/E/S.
Revenue rose 6 percent to $568.8 million, as the average realized gold price climbed more than 21 percent to $1,670 per ounce and the silver price rose 11 percent to $31.29.
For the full year, revenues rose to $2.2 billion from $1.7 billion in 2010 as the company boosted production by 5 percent to 1.1 million gold equivalent ounces. Production for the quarter rose to 276,918 gold equivalent ounces.
Net earnings for the quarter fell to $89.6 million, or 12 cents a share, as the miner was hit with an $81 million non-cash impairment charge on an investment. In the year ago period the company had net income of $125.6 million, or 17 cents a share.
Yamana operates mines in Argentina, Brazil, Chile and Mexico. In January, the company said it would boost production by 13 percent in 2012, as the Mercedes mine in Mexico ramps up to its commercial production rate.
Yamana boosted its overall reserves by 11 percent to 18.6 million gold equivalent ounces. That includes a 10 percent increase in gold ounces to 17 million ounces and a 28 percent jump in silver reserves to 82.9 million ounces. Continued...