AUY - Earnings call transcript Q4 2020

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Operator

Thank you all for joining us this morning.

Before I turn the call over, I need to advise that certain statements made during this call today may contain forward-looking information, and actual results could differ from the conclusions or projections in that forward-looking information, which include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the timing and amount of estimated future production, cost of production, capital expenditures, future metal prices and the cost and timing of the development of new projects.

For a complete discussion of the risks, uncertainties, and factors, which may lead to actual financial results and performance being different from the estimates contained in the forward-looking statements, please refer to Yamana's press release issued yesterday, announcing fourth quarter 2020 results as well as the management's discussion and analysis for the same period and other regulatory filings in Canada and the United States. I would like to remind everyone that this conference call is being recorded, and will be available for replay today at 12:00 PM Eastern Time. Replay information and the presentation slides accompanying this conference call and webcast are available on Yamana's Web site at yamana.com. the to turn now will call Mr. over I Racine, President CEO. and Daniel

Daniel Racine

with for Thank Development. and and Presenting Financial Jason Officer; Operator. VP and you, Corporate [sic], and VP joining our year-end today Senior LeBlanc, you call. Yohann quarter Thank VP Chief fourth Gerardo all us, Fernandez, Finance Senior are our welcome conference Senior [Bouchard] me Operation; to our

Senior and VP Senior For Development Exploration; injury [Greg relation, XXXX. Marsden, the a of in Q&A available. our Safety, portion, our That X.XX Fort] with environment, decline be VP also more our Health, always, health, Sustainable XXXX. Henry will [Ph], recordable as XXX% and than was represents and Starting rate safety, community since

protocol our days operate to a lab and mine. improve and is combat have At contractor the by Malartic, to refine and to testing before trained continue third-party seven test Canadian installed The a staffed allowing week. we lab site employees enter COVID-XX. they We technician

also in you We fight slide. the in milestone as closely providing recognition communities on host see supplies. COVID-XX, against in our nation support and with them equipment achieved to some the and XXXX, We notable to the can critical continue engage

announcement As commitment strategy, formally further future. will to low-carbon yesterday, underscoring transitioning seen you in adopted have our Yamana's have we a climate to a

effort targets. operates. are safety sustainable short, ensure action determine will that XXXX. baseline wherever net-zero to by two Working to of XXXX, it and part reduction of environmental gas work long-range and development our achieve degree Our Yamana long-term action in establish target and medium, target, of targets by adoption operationally-focused an has our a our underpinned as targets, multi-disciplinary a to these two strategy its aspirational the history emission practical health and prioritizing emission by long Climate performed, protection our of by achieve the This supported is Celsius greenhouse science-based are and help Group, to target. be efforts and people, a fundamental The supported

extension strategy Our climate business of this is a approach. natural

Turning in the now of great to most years. showed challenging unprecedented we highlights, the and resilience XXXX

We high Minera flow. where while performance health moving delivered above pandemic Florida, of strong hit. producing our the the safety and increased to that deliver in strong quickly ensure continue people financial all ESG El the Jacobina, Malartic, with into translated free operational performance and Peñón, to community cash plan. And We Canadian and performance

significant of a we objective fact, financial ratio bottom-of-cycle In when X.X per our raise now debt $X,XXX. is to further This GEO EBITDA our by us gold supporting delivered assuming achieved price extension. an our $XXX basis, share. exploration XX%, updates flexibility, completed to program, additional our below a and per of dividend life $X.XXX our mine of per dividend net We GEO. to allowing increased On floor

completed an this continued outstanding increased to monetizing certain towards on project Abitibi in project in District. such pipeline, gold Argentina, Option development. our Wasamac We Gold, Suyai and Agreement added presence Quebec's step portfolio, we We our important to the royalty believe Monarch assets acquiring as our is optimize project and which prolific brining an portfolio, which to our our

project. is Rica the an with that known also what is] integration [there milestone We [Ph] as Agua now completed of Minera Alumbrera, MARA important the

level, asset the doubles highlighted study project, asset we net net net note post At prices $X billion. current current well as that at was determined asset pre-accessibility value value below level. significant we While to the value metal

will In that with more We life the profile, low-capital robust realize is excellent and we this we value intensity, from outline and this production and begin be are how suggesting long improve models; not project. project impressive should low-cost we quarters, intend a gold to to this that in is copper returns. saying large what inventory, next an several are

to project the is and Exchange, We high-quality in the with on of exposure Europe, advance positive our that which a the Americas. listing before, Asia, permit London investor offering portfolio in yesterday, provided have to didn't we these news. which exposures us the investor Stock received asset have raising our completed Middle profile U.K., while the And our East, we finally, to

GEO million an was capital per East more $XXX we to flow tailings. a XX% Moro the standout Barnat GEO depletion ounces of Minera continues the gold fourth performance XXX,XXX to XXXX. was be as increased our guidance. above the which ounces underpinned Yohann of ounces, to was historic gold, Argentina, gold also seven Malartic XX% we capital remarks. during the ounces from a will which now production XXXX, about of of proceeding in and from gold X.X XXX,XXX an significant being our Cash price. Cerro less of sustaining minus-plus Full-year ounces underground the continues production, basis. tons produced $X.XX tightening be development, more addition project Florida. the share. get standout, range at and original the strong were is XX,XXX commercial production were silver. XX,XXX during our in increasing mineral ounces more with coming a Taking national since and in to Costs production trend a Peñón. XXX,XXX phase. cost of a a a mineral of El million of XXX,XXX The And excited well is XX.XX seen quarter Gouldie $XXX.X of measures QX, produced production the at the Malartic We gold, million the discuss and million. of $X,XXX safety producing the and or doesn't XX% the reserve ounces Canadian inventory project talk Silver total not year GEO of a classified mined we to a $XXX.X Florida we to of mine underground XXX,XXX was in expected in cost million earning revised and of of during his working was in increase flow ounces dividend repayment quarter as on transition Full-year and at the $X.XX reminder, XX,XXX in Net Jason in production change ounces we activities of within East -- of in on are during XX,XXX excluding above silver. Barnat exceptionally all-time the at could ounces for Malartic, the XXX,XXX to from ounces net perform for ounces. and and part share, record before benefit all-in Canadian of but costs million, for gold, due Barnat in ounces Wasamac XX,XXX about. plan, modestly was producing at our full-year, moment, QX yesterday, from QX ounces our inferred ounces guidance GEO Canadian $XX.X you Cash at for X% second of operation. ounces, per operating of exceeding will years including have year. pit with very quarter the by the pit exceptionally announcement It production costs before Canadian and $XXX construction was Jacobina gold commercial from believe GEO XXXX production in Turning continue well, X% of variance production ounces highest from basis production level from project we per is and X.XX ounces is entered million from production going The are of minus favorable Minera straight for include reclamation quarter. of GEO Jacobina consolidated net come cash coming from that that with Malartic. million. and look revenue XXX,XXX debt Barnat. cash detail the since were X.XX expected going flow This Jacobina, resources including XX,XXX at GEO silver. highest closer XX,XXX the from production gold produced production basis. the as of purchase $XXX.X to XXX,XXX including result, activities silver. XXXX, was gold replaced will continue. our to at XXX,XXX production million Minera per Peñón in XX.XXX result quarter mineral the adjusted resources, of in was reported Odyssey forecast Florida is for operating GEO, into Gouldie X.XX ounces El declining mineral ounces including on delivered of including Free million or from

during are of the Despite the highest half continue rosters Operation impact the to the program plant restriction first in from XXXX company to with particularly production were to Escondida protect employees communities. and QX, challenges transition in of protocols and the as the pit Far stringent underground Zoe, open at ore the a safety This QX from situation While underground ore continued Escondida of the in Central, to year. Escondida and but tightened December. Cerro mills] coming travel expects the ramps Moro during operated restriction, was [Ph] quarter in expected coming was and and ore related significantly continuously the health continue up most of than reduced vaccination of this mines. COVID-XX is grade in the to to West will the normalize The West, [more Argentina. higher XXXX,

XXX,XXX return next XX This in retain expect million XXX,XXX to second two year ounces with year our that XXX,XXX in XXXX ounces trending and of years. XXXX X three of gold silver, percent of level X.X of gold per and production higher the and GEO half production year of is million for -- each of ounces occur expected years silver. to Fifty year X we the to expect the and of million We forecasting we of production production following quarter. this and million of gold ounces two are the silver. In ounces XXXX, ounces in of production

the groundwork disclosed add we pipeline. for our $XX period an on from noticed, all-in period steady cost that by $XXX you we guidance, mine see have $X,XXX. three-year production confidence I beyond this to as with year a our cash state forecast. $XXX/GEO in We ranging underscores flow to between significant would and see while that decision three-year as advanced As that project cost did growth sustaining may mine we cash a

The Malartic. XXXX that modestly the flow. Argentina commercial expansionary in classified was at to overall Our measure was safety net capital from little there and national higher all-in of Barnat also aforementioned to result as above cost at and cash and lower the general being sustaining Canadian was in cost forecast due production production impact Barnat neutral, modestly

it our ounces the million billion another of now and pounds operating ounces million Agua gold, our and Alumbrera. Wasamac our announced of reserve increased Turning successful newly was mine. addition updated that's Rica acquired replacement of X.X at and copper. to Of million project between to here recently year XX.X is silver, resources, with of agreement really and the given for pipeline of reserve depletion the adjustment of to Reserve reserve to note more which resources reserve integration added X.X our and our overall, XXX mineral of

subtotal. project as company We have included MARA of part our XX% the our of of share

We more also our will to gold. call gold reserve, XX.X Yohann successfully over detail XX.X reserves measured pipeline. with project ounces. million In and resources climbed turn And of some million and inferred to I increased the now the on category, to provide indicated to that, resources, ounces

Yohann Bouchard

depletion using five reserves you, recording $XXXX Or Daniel. Good. Thank assumption gold which are replaced and we Daniel of added as changed prior reminder mentioned of a price from Well, mines per operating ounce we as ounces. year. our not has our

the all increases the success with exploration. see that So, you here reflect

resources And ounces. inferred and we by by of million measure almost ounces gold. X.X increased also resources We dedicated XXX,XXX increased

Malartic geotechnical Barnat our about reserve was pit XXXX. depletion only of XX% basis, a at pit The open This and equivalent life will reserves mine-by-mine bottom profile at the was XXXX. with the We Well, which resources on XXX,XXX basis, have XXX,XXX by Canadian open XXX,XXX mining was pit pit on a a production the the in Barnat increasing a from a Malartic. gold. Canadian is mining of the during additional had This net The pit optimization, to to will design in offering underground ounces ounces open stability. months. and optimized ounces now transition by mine look is six from depletion closer improve of partially starting offset

more be development and to operation in I in moment. the standup El with here El will increasing exciting detail a Peñón with in average resources proceeding will and a despite about Jacobina I underground and Odyssey included note total. about but project, moment, well are Jacobina opportunities talk year talk MARA a these our the straight in and of also We Peñón third as continue grade. throughput increasing extending reserves they not mine reserve life as is from reserve that

some With the from clear copper base, a Daniel the by reserve the now such which zones East with due minerals will to perception as COVID promising integration, £X.X adding mentioned model to from drilling value diamond includes of certain billion earlier. completion and there is XXXX. XXXX, significant unlock path further of Disruption investigated in new Suyai and of in resources for grade but be depth of Gouldie and high prevented during

of a with base will development addition XX for provide I a XX and positive lower interim. a the existing the These as in short the the operation resources our say recent the resources our time, year study outlook significant reserve on conducted procured two Well, production in foundation extension for all by quick ounces would of this now supported a several has included announced solid first development years in pipeline on for in are natural I further concept move and summary, earlier projects. In decrease testing. outlook in Results mythological update quality statement. and completed grade positive XXXX. and mine are been year

Since announced, we case for base underground issue Odyssey the base the So past project. X the at is home to positive XXXX. GEO least construction sustain had of was through the of billion decision

said XXXX reserves year including pipeline outlook. have moment not MARA Mineral replacement for we giving successful exceed Jacobina Wasamac and GEO disclosing that Reverse and does that And that X of a in at also reserve going ago, We on. our that increase on an another update case now confidence us million is bases can

While Central. parallel gold to reverse reserve as This adding reduced reefs million a total X.X grade of increased year Average grade by is result increase replacement or Jacobina reserve conservative the reef to Jacobina an ounces a LU rate with ounces. fourth of we Canavieiras of at slightly high lower XX% reserve of of XXX,XXXX XXX%. average has as grade in the

for increased mineral plant year. also last reserve our ounces resources increased not by XXX,XXX and per XXXX. at per to The of combined These We resource drills Jacobina Phase beyond tons expansion and opportunities XXX,XXX year. ounces day, X X,XXX compared further are

year. close XXXX we're by with third phase XX,XXX potential elevating Specifically, production ton to XXX,XXX that a would increase per day ounces for now of expansion

year-end third for convert El straight in Velha of inferred replacing inferred ounces So, new added of South. in drilling to of continue increase Juan high XXX,XXX ounces veins new resulting XXXX at to XXX,XXX end while resources the XXXX reserve depletion reserve slight another reserve XXXX. so year, average will grade. reserves the The quality year compared a to reserves successful such Peñón adding at the to to as zones has resources at a stood

our XXXX, Gold Silver XX% increased and sources and are XX by XX% from outlook. included and For resources in these production measure dedicated resources of respectively, subset inferred gold increased inferred a XX% and years

to this exploration XX-years something on and remarkable rolling opportunities This success life. resources is relies leveraging the positive where production of ongoing to plan rates. been accounting result the resource able average maintain to potential and converted XXXX by lowered grade. higher a reserve the supported which year has is the Although outlook, existing up production are unlock that were reserves by that mine grade, the ramp in capacity. operation achieve XX years XX as really does The reserve our average subset to numbers our to for support is similar processing reserve year-end than the expression is mine the This to included throughout resources success

million project, XXX% increased the close on a ounces gold. of we had over Now than years. now alone, at to only six ounces million a of XX last look basis Odyssey closer to taking more year have our In the underground X resources period

requirements and growth, a XXXX expenditure CapEx been the million modest flow As production to important expected from until mentioned, sources potential ounces at with ounces It is sensitivity of cash Sustaining that spanned gold can and expected X.X will to beyond from period requirements. to only the construction is construction areas has about forecast of sustaining to expected to mine below. have month. project that using this cash you estimated life per has is the all Initial capital estimated as XXX,XXX XXXX be $XXX year basis, the XXX% significantly note $XX.X about is million. extend years expansion the cash see capital significant that, of and free estimate XXXX our ramp-up are generation. year from Gold cost ounces project per which This cash reduce be CapEx hand Other per a report capital robot with through in XXX,XXX of is XX% at economics XXXX. technical during year. billion per XXX,XXX higher on to fully completed during $XXX.X than of included over million to at of eight $X.XX a table original on is XXX,XXX ounce, ounces period to founded is XXXX external or production

I upside. great for future like So, potential said,

will strike outlook Odyssey and East XXX% the Gouldie Gouldie the in base million X.X case profile, Gouldie South XXX% East underground extension opportunities Internal we're growth to rate forward in for resources updating with Zone future the aggressively advancing, of project two production X long-term zone average an to project zone continues Odyssey to of resources on well, is East mining. as per the ounces you look and GEO XXXX and we along to present XXXX, X.XX basis, target. these East grams drill by for course to million ton. In expand our to to drill test exceed transition at providing continuing Malartic inferred and Our Odyssey adapt, also of increased the We Wasamac opportunities of

the of Gold The we of summary heavily As in team January a is our was future about by stakeholders transition this this already for quick in summary, involved been as a complete XX and quick has company, exploration local the year. did communicating excellent with operation. Yamana plan

We in open a support show office XXXX project very study to Monarch to a economics. upcoming Wasamac the months complete regional our in good engagements, facilities is community oil the expect and that

an also mining the opportunities study going and have turn I year. that complete Gerardo we're gold to it third to impact to to objectives, update model. geology to recovery. the technology that, Please, look, evaluate cost the low quarter underground discuss to updates MARA will on environment we're block project. throughput the corporate we're the as now this looking going We begun it expect and and The operation. at sheet to on achieve blue will over And refine communities, optimize And with also and a the establish potential minimize following of by maximize Wasamac

Gerardo Fernandez

joint in to a completed series year, aspects, relationships a the step between unique on others, with and project, morning, a technical the have a for project Agua from and among advance stakeholders team good and milestone also in steps our quality Yamana the last the of important only its of the These of country. signing to high development, development advance Alumbrera taken project. to joint another the and but Glencore which last venture not of Yohann, creation This and In key the you, and Rica region we concept is permitting several mature included the MARA Newmont. integration the agreement of the and December partners Thank everyone. key with the

next the now MARA the partners JV creation. such, local continue place of the development the with As all to value to stages in allow advance project and agreements and to to the has stakeholders,

technical significant have and and study, to the On of the opportunities demonstrating the the study. mitigate a series front, part project of ongoing improvements completed XXXX feasibility feasibility to studies risk we in relation optimize as

environmental years, two next the our is the the study, project, For assessment. impact continue improving purpose to feasibility and advancing

we high a X.X copper basis basis, XXX of million lowest results price. life. XXX MARA's also campaign are sustaining study. and or shows and equivalent over on capital the relatively CSR start procurement and similar in have gold, of working programs, our and serve judicial communication communities the the all regulations. cooperation currently production million COVID-XX second copper copper, reserves aspects drilling also to to amongst a mobilization the license requires the at and of site mine scale, the million ounce in approvals with we're needed leverage The project the our tons our XXX% of of be stakeholders. at equivalent and the projects. support of with a to to year support execution strengthening We our the ranked the a costs and curve this to internal financial provision through or and On the long continue target since personnel of social local silver of XXX% expected now, And development our ounce cost relation administrative in XX.X feasibility is low significant of received per intensity global open strong MARA and and the of of robust planning asset, world for is capital billion per XXX,XXX year, in quartile tons the to over quality proven probable project front MARA copper the

for ton the billion, for of NPV of using an of have the discount rate and project we in X%, copper per shown $X $X.X the gold. As has past $X,XXX

of an consider which see return over NPV of underpins near We can you and the the at XX% an value reference, if rate, internal $X which export copper can rate is we high an of especially discount For prices quality a see billion. metals, strong in market. this current project, for X% both

on project please project, development the the that strategic MARA a value of of the through information the within perhaps represent Yamana whether or website. vehicle. or more things considered is a All partnerships For development this visit opportunity, project, public significant our

to is best the the this the project that, to discuss to cycle. value us Jason general financials. with it for advance feasibility, now now, and way over maximize permitting And development will in For I to to hand its

Jason LeBlanc

and Thank morning good you, everyone. Gerardo,

financial for $XXX.X Turning QX, rose $XXX.X million the during million, period from XXXX, now to compared per to our period. performance $XXX share margins revenue $X.XX the of share also million excluding were in $X.XX the were compared quarter basis, earlier year the XX% $XX.X $XXX earnings million quarter an On per Gross last million XX% per adjusted a or or $X.XX earlier. versus in a share same with increase. $X.XX year per $XXX.X Earnings DD&A in share, was million to year.

recent and as QX to the increased during expansionary XXX% spend capital QX to spend sustaining, of last Our similar higher XX% our because of compared XX%, during to QX just was past. COVID, and expiration ability spending respectively timing anticipated but year, than the

timing with since flow activities $XXX.X capital mines production activities considerably items working generation. several from divested. exceeding were cash would in already before flow, and I the QX Despite mentioned multi-year flow QX to operating impacted year. QX, includes higher from there impact cash were normalize will periods is highs. million movements the was which I interest in strong Cash been are million. the quarter-to-quarter, $XXX.X quarter-over-quarter change which flows flow cash at in timing working note have production the while in And that this higher of paid this and that QX, now also flows, of operating from the that sales capital but CapEx, during Turning comparison generation cash net cash payments,

was early our cash balance $XXX increased balances facility, we revolving drawn the during repayment from of the outstanding credit by in a on QX COVID, During which although million QX, year. $XX saw million after the unused

targeted With below of our growing the achieved bottom balances, underscores growth expected one of flexibility of objectives. when price which to debt-to-EBITDA our and Those lastly of Malartic and which supporting our a per growth significant opportunities maintaining and XXXX our a maintaining we our capital ratio growing capital financial supporting current the needs, our include will cash and conservative our assuming leverage gold cash, and dividend, investment cycle balances growing With have Jacobina, with term a continue policy, increase cash flows. and we three objective at flexibility. financial sustainable allocation leverage ounce, including net cash

million. charts and has at free on QX This flow Agua QX other of MARA few year-end Upon year-end. of were in financial the a to a and XXX% accounts interest acquired XXXX Rica a total our is $XXX consolidate profile includes Cash our project. the the financial our MARA flows We'll of of with repayments Turning debt This by Yamana equivalents totaling venture we'll as flow partners integration in these and a the results the cash for the minority shareholder. joint available $XXX.X before $XXX.X now cash balance operating Alumbrera, highlights, and XXX% interest. utilization $XXX controlling XXXX. cash million, show with cash XX.XX% show MARA for with year dividends at million of cash than perspectively of now in more million XX.XX% integration, than higher

prior following reposition impacts For Cerro consolidated Cerro as our our the Moro plans. in national than cost forecast due costs measures Argentina and costs this Moro were in performed within at production December. would all-in and the At higher costs sustaining anticipated, been impact of safety to quarter, cash have modestly had and not

would impacted production classified In addition, we commercial Barnat would at production positively as and costs. had more have be anticipated Malartic from Canadian that

a treated no on a there net higher to as compared that However, cash flow pre-commercial capital with from cash production Barnat flows. was significant impact was generated benefit capital. The million plan. result the reduced by expansionary margin The XXXX, reduction expected was at the $XX than expansionary further in

program, long-term from term spend Moro, look $XXX for capital expiration, $XXX Taking this number shorter forecasting 'XX exploration project Monument XXXX, as Of announcement, at directed are that That million and up million. January, cash a higher of Peñón and million net at results the of opportunity we which related expansionary capital million The janitor impairment were million construction the impairment a guided than of results. mine in in exploration, asset. impairment export strongly Peñón, pre-tax it As Velha. what then, we included. includes the the our a exploration Cerro Cerro Odyssey reversal the Cerro the spend guidance in we hadn't capital quite XXth El by net million impairments the updated in we early-stage expectations, the we still expecting will but capital a our we at across and represented Cerro prior flow. at of believe value with Moro although advanced be in $XXX success back note El is being resulted to projects, as in such reversal QX the approved taxes but perspective initially preliminary Bay At reversal production year, from of also Moro. of challenges $XXX performance $XXX exploration was total ended recent these spending especially significantly on January compared million of both expansionary was El $XXX result, towards and and to spending Moro, Lavra and is for a our result impact Peñón, impairment opposite costs now At $XX reversal. sustaining Despite the factors strong this

these of at mine we'll years. large mineral for production support a projects with our ounces confident of inventory at goal to advance rate We are least to longer-term gold enough an eight annual of XXX,XXX one a least

for budget with to also exploration mine Our million Moro, our to extend the I operation in allocates the underscoring our commitment at to back life. $XX this that, Cerro to confidence the over turn And call mineral final ability will and Daniel some resource expand remarks. operation its and

Daniel Racine

believe near-term We existing circumstances In we've initiative, resilience and strong growth would at with decades. expansion, the extremely drive like Odyssey, positioned the coupled who our that mine, highlight the for once exploration well Thank you, perform closing, Jacobina Jason. our for I under and of upside challenging our ourselves secure like MARA again exceptionally results. well long-term will with Wasamac, to phase the long-time to people

our raise, question. with with cash flexibility we'll balances return it, As rise that, increase take our these our your while flow allowing to to And happy Operator? to to financial future. us project and advance continue invest in cash be and continuing

Operator

Thank you.

[Operator from will questions of the telephone Ralph Instructions] first ahead. Please is Profiti take go from The lines. Capital. Eight question now We

open. now is Your line

Ralph Profiti

those taking you maintain per you sort sources, good for reserve the of some early. do like up at [NBNA] tons in day kind everyone. XX But of [indiscernible] strategic been now very the potential the tailings which finding about that on Vento? Phase how XX,XXX think would can context Morro And of as about has I years. talks Hi, you know see thoughts, you the sort questions. I'm X particularly, Thanks life, this my Do morning, of capacity? Daniel, ore near in do Jacobina, in think about [Ph] wondering mine dependent it's scenario expansion just high-level unit of has

Daniel Racine

in Phase that's expansion so have as make day. for Ralph. of we to that your for do that resources Yohann and morning, the per were still years by good that X six XXXX, we mentioned tonnage, will what aiming wanted away sure XX,XXX not our we reserve for done for doing X. Yes, question. expansion, Thank we're then increase impacted Phase -- we tones Well, and to you

production at XX, with like almost increase production. time, no Phase reach needed or So increase There's mill the with work in continue we'll new just the with an for underground. development it's then we And X, in But and did X, optimize for that probably, Phase to mill. capital able to the do Phase basically we'll with new we'll be X, slowly the mill. update years tonnage three

continue to maintain life, drill. So we will reserve our that's target is that always so why to

year good bit we want on exploration the what with that very increased an the exactly the budget actual coming to we for maintain in reserve that, production. a have had the than years, in higher to a past We

and tons is exactly Phase backfill per that a system, the will with a do tailings, X, we system the backfill Regarding X,XXX day. now

we we want right So tons tailings. any maintain is the to the will at production per now, day tons go new X,XXX life don't And to back anything mill, the put -- any extremely tailings, want through the will mine backfill to that. long that that we mill reduce maintain of underground above the our as

have us actual maintain tailing areas that's of but in even already future, production. important many can the if the increase for that other that have the the to mine We we tailings know life we we

you And if We're So issue all target increase right to target, depth. don't in finding all our grid production our of life, in by the we one, exploration. expanding being even any you all at are is have future. better, we to and then maintain mine what so said, always XX-years is on new production, getting the that many reefs successful are in see these go we

Ralph Profiti

quite that level, Yes, the clearer Wasamac much your now, Malartic, all standalone changed at Canadian you're thinking with thanks. on this economics at property, and clear versus high now Malartic? seeing got that's on has Canadian it, robust At integration a economics

Daniel Racine

We're our to but No, number have both, priority not really is standalone. studying one really.

And reduced we be if to then the backfill underground We site, of The we standalone XXX% leave also, the significantly. why backfill, to a main and open advantage have stoped, room to system have ore want backfill put that recover we XX% having the for mill. the going we're of is if at and Ralph. reason will

mostly start all you can't system reserve and have your the reserve, recovery of reserve. have developing you these pillars lot at we you're then -- in high but the fill backfill So you a will stope we this know and when resource zones, all increase leave to year. with And this have a of drilling

So, long day In travel, lot was underground milling. then of it now it's site lot we're facility the production day. the that that study to a a a you than each higher study we're for assume us in thinking than make revised a custom have distance doing. to thinking a MARA a And per operation, right also sense more X,XXX tons

Ralph Profiti

you, yes. I got see now, Thank Daniel. it. that I

Operator

next MacLean you. of is Don Thank from Capital. question The Paradigm

now Please go Your ahead. is open. line

Don MacLean

on the the done $X,XXX, guys, line value with then the think resources have or What fact that maybe might half those instead it for and and if in I what the not with to because Could a on uses Yohann congratulations cutoff. just about the other the Gouldie is underground, behind, was, $X,XXX one happen What's mine, I'll projected expect existing area exploration. my an been the work talk left resource? why for world creation to the Henry wanted, $X,XXX this the good maybe to on And the of, a Malartic can a continue I talk Canada. morning, life happen only it bit was and that's start tremendous East years? sense we XX is good you lot it that, that Well, half of just we if for considers that of of multi-decade a XXXX. with gold resources maybe of is about outlook

Daniel Racine

had question. have. to we Good Don. morning. we To start to do you, what use Thank the study -- Good

we're them. mined seven the Malartic that's be South million this sure zone we that to that the first You we define healthy position down But but know life production budget have Gouldie build mine. at going than the million from be can the the underground mine drill time. and first for Gouldie end exploration at seven now more defined mine to a increase driving we other Right going the Malartic. And with as year define better that to we drill Underground, East the we're And ounces, assume now ounces, to we're tighten also on rest. by on drilling will to all more of as the good ramp this a East in year will Odyssey to be focusing

use if the ore quality even wanted resources -- drilled we have -- the -- and best resources, we quality So, we rest. tighter but that PE to was it's we use not best than the a the

is we think have right meters. and in And the with included this XXX now half it increase to will lot Malartic resources only the then we down Malartic, at East a resources then I the time study have And then So including only why is of also East only this of future. actually.

years. multi-decades, We huge in future XX potential that that the So there will all to know is than increase say. it you more be like

Don MacLean

of case or prevented it an it cutoff of density drill that was a economic Gouldie lack East is -- it from… is So

Daniel Racine

This basically economic not is cutoff, Don, drilling. an it's

Don MacLean

was so Okay, East cutoff? -- an no of but more Malartic economic what's

Daniel Racine

we the and too. because open and first deep ramp, all And East and shaft does then zones. the too. directions Malartic is grade will of more better we go East increase with three eventually the down ramp, quite Malartic Just with Malartic depth, as a asserted can depth Odyssey also will shaft depth you East mine access it's deeper. East down but the And level of the Gouldie, Gouldie than with access so on But the ounces then the go East

we're being away of that production So but years years away -- at I'm seven you the in of number fully one, understand sure priority eight Malartic.

to of now planning things them lot going drill not that but will are enough during nothing the no to basically a they are drill we change right into put as position a related, these or cutoff they're mine So years with them more, production. the

Don MacLean

Great.

And financials is a it been Thanks and has missed has might years decision or Moro all options be it's interested your at as My your within Okay. your Yamana, for to multiple are to important been seeing always into the you both progressed. as reserves plans Peter Yamana. -- fit for though is how the integration taken resources it's you question going those it might other is maybe Have the great and another progressed, into place not changed There watching I integrate has plans significant We've narrowed Daniel. question? buyers, project. for and Have it's this that project. and time be about step. guess it your

Daniel Racine

MARA. options have it start There But I'll Gerardomade his in many course. the presentation. stay it, answer and we for then right part maybe is now, the on it to can to of Gerardo add clear but

this to but have We the of complete or facility most the importantly, permitting the to phase. continue year, that next by study year the study, do in end

reduce of our and XX%. with the right It's company study, a and clear option. copper that more permit to still copper it will be all We're can maintain one we we his sell don't a priority have form goals that don't if finalized And completing complete still for own be which because then why it, we permit it, We but was that bring will open. what our will we the because the think also to we our facility we I facility option partner, key not have option. do involved. will limiting do can an said, have we or our can the change we management will now, we the access one we like, stake options we latest use the it go and financial to what but If an look all now. production. we'll condemnation it's bring, Now we to of best That's company significant then a keep to study one is the number some is site but drilling get, to get like is have

Don MacLean

to pre-production. can crisis, the the is self-funded, would - that Malartic to want the keep long, is I I is but going you. open of about underground we ounces question, gold Malartic great. Maybe just occupy include and these pit? tell odd flow if and if it be don't wondering XXX self-funded us, from one cash underground we thousand the be of kinds some everybody for Okay, this last think Maybe Thank too the Jason

Jason LeBlanc

be on kind to mentioned if spot kind CapEx you absolutely, XXXX of toggle over to the that of you the the a the gold going flow underground generation multiples that a pricing, it would multiple it's there. cover of cash and be integrated that's case, and further to Yes, compared needs

So subsidize to all construction that the unique so. the think a period of construction there the over it's production I having ultimate project, attribute

Don MacLean

to at a the from cash it net if contribute stay from to we of net free continue will still prices? Yamana, these kinds Malartic flow free So, project, cash flow

Daniel Racine

Yes, very nice.

it's pretty, to prices. say Don, pretty robust So, I these would

both. You kind do can of

to have costs pit going all construction underground. the from the open contribution the net on You're of that

we at prices see the study even of the so but cost today. here that's the So more XXXX,

Don MacLean

Okay, great.

very Thank guys. you. Thank you Okay. much

Daniel Racine

Thank you.

Operator

The next from Please question go ahead. Mike Parkin National Bank. is of

is open. now line Your

Mike Parkin

Hi, guys.

underground, Just smaller wanted or communicated? XX-year numbers previously the plan still the on was does to confirm assuming Odyssey the newest it is of include that the kind scale

Daniel Racine

the or the It's including Mike. you today. yesterday presentation new morning, Good saw numbers

Mike Parkin

But does it also include…

Daniel Racine

then But still between or and does stockpile, grade include other -- happen low now that end the numbers. new at things said we XX—year, top we of potential and will on when Malartic might presented the of of upside change, construction, like but that a it's our lot with

Mike Parkin

factored about my that actually in if the stockpile was next there? that question was Okay,

Daniel Racine

No.

Mike Parkin

-- of a a have factor low what price joint do you and you in gold -- have sense grade stockpile? that see venture want sense to to of partnership okay, the would Do

Daniel Racine

speakers]… It gold decided price study. not be it of can now. [multiple have the know we time actual this The for but the -- there But, in -- included at include you in future, might we this

Mike Parkin

XXXX? That's Okay.

Daniel Racine

yes. XXXX, Yes, at

Mike Parkin

it All Thanks guys. right, me super. very from Okay, that's much.

Daniel Racine

Mike. you, Thank

Operator

from Thank go of is Jackie BMO ahead. Please The question next you. Przybylowski Capital Markets.

line Your now is open.

Jackie Przybylowski

that program like exploration category? you one higher been be of Malartic more drilling is for the of with into that priority Or, guess and a step Most you have at us infill much. drill my point? the can prioritizing helpful ore very would testing drilling I Thanks M&I already have out delineated answered. sort you any what of this to would are questions some you clarification give the bodies still are sense just move boundaries underground XXXX,

Daniel Racine

morning, Good question. Henry, Jackie. one? answer why that don't Good you

Henry Marsden

of for that Sure, Gouldie. about budget There million Jackie. majority yes. is $XX on Thanks, exploration. The East infill is

and centers indicated zone. But is $X category. looking we there that take will at be the will of We to be looking million XX-meter it to extensions about then

plunge up especially So, east open, the up as east to well. somewhat remains down to zone the the plunge wide and

is but to a is significant there indicated So, main to get component category. push of both the stuff aspects, definitely

Jackie Przybylowski

me. from it very Thanks Okay. That's much.

Henry Marsden

you. Thank

Operator

John Very the Independent Thank from go Instructions] Tumazos you. John of is following Please And question ahead. [Operator Tumazos Research.

open. now is line Your

John Tumazos

Thank you.

ones best the thinking acquisitions am already are the you Sometimes have. the I of project. MARA

Now the fund you participation copper a part participation of or, copper, part of partner that rebounded, sell keep and to copper going are to that a it, reduce financing, selling a entire the gold stake and is CapEx? stream structure of you to is going likes instead stream, copper copper it a keep or your your as prices you where a gold the likely gold forward or gold do bigger there have

Daniel Racine

more mentioned gold right are option not a Good going own then, at Good morning, about a up lot that's going And And copper project earlier are that the in question. And of is of company. It's I there's it important important. and on rush John. we and like with MARA. XX.XX%, becoming do we so is more you that why to anything.

the good mentioned continue then right and the to option. one plus But We the the will are study have will these evaluate the company option, the in we you options permitting further future. now deeply and for do what's best all all

complete what see study FEA done to well course now. needs now, permitting, will to But going be right stay and on to the have We what the it's we and right happen.

John Tumazos

you. Thank

Gerardo Fernandez

add. This Gerardo may Just, John, if is I Fernandez.

of have XX% to have to range like in that consider project most production a up also you would that likely think I XX%. projected

to needs of not the that financed capital. partner by the So amount be the XXX% is a

John Tumazos

you. Thank

Operator

from Peel Huff Please is Thank you. ahead. The of Hunt. go Tim next question

is line now open. Your

Tim Huff

mean, just I deal got Moro those Florida for know, of in but of allocating would of Yes. obviously were of exploration focus? order, terms supposed mine sort Minera Malartic your I a exploration but you're the find. lot aiming how El would rank to what coming lot you mean, those it's but eventually. for Cerro Thank spend it on three towards prioritize you depends an 'XX three you perspective, How I it on year? a in if Peñón extension. work this focusing from good and That's a exploration to you've year, you're Jacobina, been you. life know and a I of

Daniel Racine

big good a us for Good sure. big, important big mine question. They're Well, Malartic Tim. for is project. all afternoon,

more future, the that's in into one. to increase convert into throughput production. Jacobina we important, the So of already the years resources, want many This is has we if that's can confidence less maybe the an important also important. but

is I then study feasibility key think huge to know extension. year, a one We want this because build want our to, there to update of we Wasamac is potential we and mine. that

success priority our really don't do exploration when then in we Even we past after few with what very COVID-XX, they be in a years, question. extended the asked budget at question, at strategic the the XX Peñón in XX Malartic. already budget answered with mind have year Canadian mine. and of you El Peñón exploration carry you El above it's the last we we and our great Peñón El life exploration, come years put in we So ideas. years. have team the and we to see with And the often in along the years

important it's built Peñón is paid is As fully fully El for.

So from we're and And there, each healthy but lot a at find that at generated cost. then it's ounces finding any of are are we there mine. ounces they cash flow a budget, there free low

the our we that really don't and for it's of all be the define. mines and time generative by So exploration program we each to When priority. at it we comes money exploration spend go spend needs on

a budget We like mind. - They're in our have for total any but all from priority it's important a them. exploration, not of a really

Tim Huff

one that's SBT. degree climate that you establishing new Yes, last just you've action of enough. one, initiative And mentioned fair established that the two

is do baseline aim it you the specific is gas that greenhouse by cost you year? this what of and that establishing in establish, to schedules ideas pathways And 'XX, expect do to have to ultimate projects? and You've abatement those the but mentioned end more the done operations, sort you're trying of of the want initial of

Daniel Racine

our mine, I we're going our Tim. this together. working year. targets, target put group that to each target. specific Yes, defined have to mentioned, That's That's for Like

but this, So our want know correct, target. if I more don't to on that's, that's have you

Jason LeBlanc

Daniel. the a what or thanks a year have to work have and on all pathways. said, of those so end plan, XXXX place to is foundational is Yes, is year just can really the the we missions, centric Daniel preliminary that Tim, Hi that year in Tim, planning by operations the abatement build

Tim Huff

done. much Okay. it great. very That's well That's for and Thanks me.

Jason LeBlanc

you, Thank Tim.

Operator

questions Mr. Thank registered meeting this to no Racine. back further you. the at There I'll are turn time. over

Daniel Racine

safe. Well, for thank on Bye-bye. our and in to Thank you, care take quarter everyone Please today. forward We updating April. look Operator. you joining stay you us first

Operator

at Thank you. The Please We for thank ended. time. lines disconnect participation. this now conference has your you your

Yamana Gold (AUY) 12 Feb 212020 Q4 Earnings call transcript