UPDATE 2-Yamana Gold misses 2013 output target, but shares jump

Mon Feb 10, 2014 12:13pm EST
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TORONTO Feb 10 (Reuters) - Yamana Gold Inc reported 2013 production that missed its forecasts on Monday, but said the problems that caused the shortfall were resolved by the end of the year and its shares jumped after the news.

The Toronto-based miner, which has operations in Mexico, Brazil, Chile and Argentina, had warned in October that it could miss its 2013 production target but did not give a revised forecast.

Yamana said issues at some of its new mines weighed on output. It produced about 1.2 million gold equivalent ounces in 2013, below its July forecast of between 1.32 and 1.37 million gold equivalent ounces.

Gold stocks were broadly higher on Monday as last week's weak U.S. jobs report pushed the precious metal up for a second trading day, but Yamana outperformed its peers.

"It had underperformed peers over the last couple weeks, so it looks like some of the negative news had been priced in," said Dundee Capital Markets analyst Josh Wolfson.

Along with the disappointing production figure, Wolfson said Yamana's costs were higher than he had expected. Yamana said its all-in sustaining cash costs were about $814 per gold equivalent ounce in 2013 on a by-product basis.

Spot bullion traded near $1,275 an ounce on Monday.

The miner emphasized that its performance had improved at several sites during the fourth quarter.   Continued...