Yamana Gold Declares Fourth Quarter Dividend; Dividend Reflects New 50% Increase to Annual Dividend
October 29 2020 - 4:30PM
YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or the
“Company”) declares a fourth quarter dividend of $0.02625 per
share (annual $0.105 per share). Shareholders of record at the
close of business on December 31, 2020, will be entitled to receive
payment of this dividend on January 14, 2021. The dividend is
an “eligible dividend” for Canadian tax purposes.
The dividend reflects the previously announced
50% increase to the Company’s annual dividend. At the new rate of
$0.105 per share, the annual dividend will be 425% higher than just
18 months ago.
On a per gold equivalent ounce basis (“GEO”)(1),
the dividend rate is $100 per GEO, which is now the new dividend
floor. 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. The cash reserve fund
provides Yamana with the flexibility to pay the dividend
at the new floor for an extended period even in a
bottom of cycle gold price environment.
While the Company will continue to reflect its
dividend both on a per share basis and on a per ounce basis, it
will no longer be providing a range for its dividends on a per GEO
basis. Any increases above the new dividend floor will be based
entirely on cash flows and cash generation capacity of the
Company. As cash flows and cash
balances increase, the Company’s dividend
will rise correspondingly as a percentage of
cash flows and commensurate with increasing cash balances from
cash flows and sources that supplement cash flows.
About YamanaYamana Gold Inc. is
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. Yamana plans to continue to
build on this base through expansion and optimization initiatives
at existing operating mines, development of new mines, the
advancement of its exploration properties and, at times, by
targeting other consolidation opportunities with a primary focus in
the Americas.
FOR FURTHER INFORMATION PLEASE
CONTACT:Investor Relations and
Corporate Communications416-815-02201-888-809-0925Email:
investor@yamana.com
Tavistock (UK Public Relations)
Charles Vivian / Emily MossTelephone: +44 7977 297 903 / +44
778 855 4035Email:
yamana@tavistock.co.uk
Peel Hunt LLP (Joint UK Corporate
Broker)Ross Allister / David McKeown / Alexander
AllenTelephone: +44 (0) 20 7418 8900
Berenberg (Joint UK Corporate
Broker)Matthew Armitt / Jennifer Wyllie / Detlir Elezi
Telephone: +44 (0) 20 3207 7800
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This news release contains or incorporates by reference
“forward-looking statements” and “forward-looking information”
under applicable Canadian securities legislation and within the
meaning of the United States Private Securities Litigation Reform
Act of 1995. Forward-looking information includes, but is not
limited to information with respect to the Company’s expectation
that it has sufficient cash reserves on hand to support payment of
the dividend at the increased level for three
years, that the cash reserve fund will provide Yamana with the
flexibility to pay the dividend at the new floor for
an extended period, even in a
bottom of cycle gold price environment, and
that as cash flows and cash balances increase, the
Company’s dividend will rise correspondingly as a
percentage of cash flows and commensurate with increasing cash
balances from cash flows and sources that supplement cash flows.
. Forward-looking statements are characterized by words such
as “plan", “expect”, “budget”, “target”, “project”, “intend”,
“believe”, “anticipate”, “estimate” and other similar words, or
statements that certain events or conditions “may” or “will” occur.
Forward-looking statements are based on the opinions, assumptions
and estimates of management considered reasonable at the date the
statements are made, and are inherently subject to a variety
of risks and uncertainties and other known and unknown factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. These factors
include unforeseen impacts on cash flow, monetization initiatives,
available residual cash, an inability to maintain a cash reserve
fund balance that can support current or future dividend increases,
as well as those risk factors discussed or referred to herein and
in the Company's Annual Information Form filed with the securities
regulatory authorities in all provinces of Canada and available
at www.sedar.com, and the Company’s Annual Report on
Form 40-F filed with the United States Securities and Exchange
Commission. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update
forward-looking statements if circumstances or management’s
estimates, assumptions or opinions should change, except as
required by applicable law. The reader is cautioned not to place
undue reliance on forward-looking statements. The forward-looking
information contained herein is presented for the purpose of
assisting investors in understanding the Company’s dividend policy
and expected dividend levels and the bases therefore and may not be
appropriate for other purposes.
(All amounts are expressed in United States
Dollars unless otherwise indicated.)
- GEO assumes gold
ounces plus the gold equivalent of silver ounces using a ratio of
79.26 for the three months ended September 30, 2020, and 86.79 for
the three months ended September 30, 2019. GEO calculations are
based on an average realized gold to silver price ratio for the
relevant period.
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