The shares of Canada’s Yamana Gold Inc. climbed after the company said it expects to produce 1.3 million gold equivalent ounces this year, an annual increase of up to 39%.
Total estimates include 10 million ounces of silver in each year, and Yamana also expects to produce 155 million to 160 million pounds of copper this year, rising to more than 160 million pounds in 2009.
Yamana's shares ended up 50 cents at $17.25 for a market value of $10.7 billion. The shares are up 34% this year, making it the second-best performer in Canada's main stock index behind NovaGold Resources Inc.
The company said production in 2007 was 773,000 ounces of gold and 8.6 million ounces of silver, (booked as 933,000 gold equivalent ounces), along with 123 million pounds of copper and 3,500 tonnes of zinc. Net cash costs are expected to average $285 to $295 per gold equivalent ounce this year and $290 to $310 next year.
Capital investments this year are budgeted at $575 million, with exploration planned in Brazil, Chile, Argentina, Mexico, Nicaragua, Peru and Nevada. (thestar)