Yamana Gold Announces Fourth Quarter and Year End 2013 Results

Yamana Gold Announces Fourth Quarter and Year End 2013 Results 
TORONTO, ONTARIO -- (Marketwired) -- 02/18/14 --   YAMANA GOLD INC.
(TSX: YRI) (NYSE: AUY) ("Yamana" or "the Company") today announced
its financial and operating results for the fourth quarter and year
end 2013.  


 
 
HIGHLIGHTS FOR THE YEAR 2013                                                
 
FINANCIAL -- Cash flow trend is positive in new price environment           
 
--  Revenue for the fourth quarter of $420.7 million and $1.84 billion for
    full year. 
--  Adjusted earnings(1) of $273.4 million or $0.36 per share for full year
    after adjusting for one time and non-cash items of $719.6 million; net
    loss(2) for full year of $446.2 million or $0.59 per share. 
--  Adjusted earnings of $36.7 million or $0.05 per share for the fourth
    quarter after adjusting for one time and non-cash items of $620.7
    million; net loss(2) for the fourth quarter of $583.9 million or $0.78
    per share. 
--  Cash flows from operating activities before changes in non-cash working
    capital(1) of $0.22 per share for the fourth quarter or $165.3 million
    and $0.94 per share for the full year or $707.9 million. 
--  Cash flows from operating activities after changes in non-cash working
    capital of $0.25 per share for the fourth quarter or $184.8 million and
    $0.87 per share for the full year or $653.1 million. 
--  General and administrative expenses of $135.3 million, a decrease of 7%
    year over year. 
 
OPERATIONAL -- Costs stabilizing at industry low levels                     
 
--  Production of 1.2 million gold equivalent ounces (GEO)(3), at all-in
    sustaining cash costs ("AISC")(1,4) on a co-product basis for the full
    year were $947 per GEO and $814 per GEO on a by-product basis. 
    --  Gold production of 1.03 million ounces 
    --  Silver production of 8.4 million ounces 
--  Production in the fourth quarter of 303,768 GEO at AISC of $935 per GEO
    on a co-product basis and $754 per GEO on a by-product basis. 
--  AISC on a co-product basis for the last three quarters was $924 per GEO,
    exceeding expectations of the cost containment initiative announced in
    the second quarter. 
--  Cash costs(1) for 2013 of $596 per GEO on a co-product basis and $410
    per GEO after by-product credits which is consistent with previous
    guidance. 
--  Cash costs for the fourth quarter of $647 per GEO on a co-product basis
    and $417 per GEO after by-product credits . 
 
(All amounts are expressed in United States dollars unless otherwise        
indicated, unaudited.)                                                      
 
1.  Refers to a non-GAAP measure. Reconciliation of non-GAAP measures are
    available at www.yamana.com/2013 
2.  Attributable to Yamana equity holders, after deducting non-controlling
    interest's share of non-recurring impairment charge. 
3.  GEO assumes gold plus the gold equivalent of silver using a ratio of
    50:1. 
4.  Includes cash costs, sustaining capital, corporate general and
    administrative expense and exploration expense. 
 
KEY STATISTICS                                                              
 
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                                    Three Months Ending       Twelve Months 
                                               Dec 31st     Ending Dec 31st 
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(In thousands of United States                                              
Dollars except for shares and per                                           
share amounts, unaudited)                2013      2012      2013      2012 
----------------------------------------------------------------------------
Revenue                               420,663   629,505 1,842,682 2,336,762 
Cost of sales excluding depletion,                                          
 depreciation and amortization       (239,030) (207,228) (900,789) (831,754)
Depletion, depreciation and                                                 
 amortization                        (111,520) (100,195) (401,115) (383,738)
General and administrative expenses   (29,800)  (39,000) (135,320) (145,856)
Impairment of mineral properties and                                        
 other assets                        (672,000)  (10,896) (682,273)  (67,684)
Exploration and evaluation expenses    (8,000)  (15,100)  (30,151)  (58,049)
Equity (losses)/earnings from                                               
 associate (Alumbrera)                 (5,086)   18,147    (3,905)   50,642 
Mine operating earnings                70,113   322,082   540,778 1,121,270 
Net (loss)/earnings (i)              (583,936)  169,161  (446,247)  442,064 
Net (loss)/earnings per share (i)       (0.78)     0.23     (0.59)     0.59 
Adjusted earnings                      36,719   197,368   273,358   694,333 
Adjusted earnings per share              0.05      0.26      0.36      0.93 
Cash flow from operating activities                                         
 after changes in non-cash working                                          
 capital                              184,845   367,881   653,135 1,158,057 
Per share                                0.25      0.49      0.87      1.55 
Cash flow from operating activities                                         
 before changes in non-cash working                                         
 capital                              165,315   298,064   707,861 1,044,946 
Per share                                0.22      0.40      0.94      1.40 
Average realized gold price per                                             
 ounce                                  1,277     1,692     1,408     1,670 
Average realized silver price per                                           
 ounce                                  20.63     31.37     23.73     30.46 
Average realized copper price per                                           
 pound                                   3.37      3.54      3.28      3.60 
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(i) Attributable to Yamana equity holders, after deducting non-controlling  
interest's share of non-recurring impairment charge.                        
 
PRODUCTION SUMMARY - FINANCIAL AND OPERATING SUMMARY                        
 
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                                     Three Months Ending       Twelve Months
                                                Dec 31st     Ending Dec 31st
----------------------------------------------------------------------------
                                          2013      2012      2013      2012
----------------------------------------------------------------------------
Total gold equivalent ounces -                                              
 produced                              303,768   322,990 1,197,559 1,201,010
  Gold produced                        260,187   276,373 1,029,863 1,019,969
  Silver produced (millions of                                              
   ounces)                                 2.2       2.3       8.4       9.0
Total gold equivalent ounces - sold    305,376   317,615 1,178,972 1,186,991
Total copper produced - Chapada                                             
 (millions of pounds)                     36.0      40.5     130.2     150.6
Total copper sold - Chapada (millions                                       
 of pounds)                               34.5      37.3     126.0     139.0
----------------------------------------------------------------------------
 
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                                     Three Months Ending       Twelve Months
                                                Dec 31st     Ending Dec 31st
----------------------------------------------------------------------------
(in GEO)                                  2013      2012      2013      2012
----------------------------------------------------------------------------
Co-product cash costs per gold                                              
 equivalent ounce                         $647      $517      $596      $525
  Cash cost per pound of copper -                                           
   Chapada                               $1.53     $1.38     $1.65     $1.40
By-product cash costs per gold                                              
 equivalent ounce                         $417      $198      $410      $230
All-in sustaining cash costs per GEO,                                       
 by-product basis                         $754       n/a      $814       n/a
All-in sustaining cash costs per GEO,                                       
 co-product basis                         $935       n/a      $947       n/a
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PRODUCTION BREAKDOWN                                                        
 
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                                     Three Months Ending       Twelve Months
                                                Dec 31st     Ending Dec 31st
----------------------------------------------------------------------------
(in GEO)                                  2013      2012      2013      2012
----------------------------------------------------------------------------
Chapada                                 29,817    32,498   110,618   128,171
El Penon                               101,364   128,119   467,523   462,496
Gualcamayo                              34,929    31,502   120,337   147,310
Jacobina                                19,519    28,337    73,695   116,863
Minera Florida                          30,513    32,797   118,590   105,679
Fazenda Brasiliero                      18,270    18,251    70,079    67,130
Mercedes(i)                             31,716    39,443   141,618   126,010
Ernesto/Pau-a-Pique(ii)                  9,707     1,274    27,571     1,274
C1 Santa Luz(ii)                         6,120         -    12,997         -
Pilar(ii)                               10,494         -    15,374         -
Alumbrera                               11,319    10,769    39,157    46,077
----------------------------------------------------------------------------
TOTAL                                  303,768   322,990 1,197,559 1,201,010
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(i)  Includes commissioning production of 8,959 GEO in January of 2012,     
     commercial production started on February 1, 2012.                     
(ii) Commissioning production as the mine is not yet in commercial          
     operation.                                                             

Financial Results for the year ended December 31, 2013  
Cash flows from operating activities before changes in non-cash
working capital for the year ended December 31, 2013 were $653.1
million compared to $1.16 billion for the year ended December 31,
2012. Cash flows from operating activities before changes in non-cash
working capital items for the year ended December 31, 2013 were
$707.9 million compared to $1.04 billion for the year ended December
31, 2012. Cash and cash equivalents as at December 31, 2013 were
$220.0 million compared to $349.6 million as at December 31, 2012. 
Net loss for the year 2013 was $446.2 million or $0.59 per share
compared with net earnings of $442.1 million or basic and diluted
earnings per share of $0.59 for the year 2012. Net loss for the year
includes an impairment charge of $574.2 million, net of taxes in
respect to certain mineral properties. Adjusted earnings were $273.4
million or $0.36 per share in 2013, compared with $694.3 million or
$0.93 per share in 2012. Lower adjusted earnings were mainly
attributed to the decline in metal prices and lower sales volume of
gold, copper and silver, combined with inflationary impacts on costs
and lower equity earnings from the Company's 12.5% of interest in
Alumbrera. 
Revenues were $1.84 billion in 2013 compared with $2.3 billion in
2012. Mine operating earnings were $540.8 million, compared with
$1.12 billion in 2012. Lower revenues and mine operating earnings
were due to lower metal prices and lower sales volumes of gold,
copper in concentrate and silver. Higher cost of sales, including
depletion, depreciation and amortization expenses, was mainly related
to higher cost inflation relative to that of 2012.  
The average realized gold price in 2013 was $1,408 per ounce versus
$1,670 per ounce in 2012 or 16% lower. The average realized copper
price was $3.28 per pound versus $3.60 per pound in 2012 or 9% lower.
The average realized silver price was $23.73 per ounce compared to
$30.46 per ounce in 2012 or 22% lower. 
Revenues for 2013 were generated from the sale of 925,496 ounces of
gold, 8.3 million ounces of silver and 126.0 million pounds of
copper, excluding Alumbrera which is accounted for as an equity
investment. This compares to sales, excluding Alumbrera, of 963,833
ounces of gold, 9.0 million ounces of silver and 139.0 million pounds
of copper in 2012. 
Cost of sales excluding depletion, depreciation and amortization for
2013 was $900.8 million compared with $831.8 million in the same
period of 2012. The increase in cost of sales was mainly due to
higher co-product cash costs as a result of inflationary pressures in
the countries where the Company operates. 
Depletion, depreciation and amortization ("DDA") expense for the year
2013 was $401.1 million, compared to $383.7 million in the same
period of 2012. The increase in DDA is attributable to higher levels
of depletable capital expenditures and higher cost ore bodies being
depleted. 
Other expenses including general and administrative, exploration and
evaluation, other operating and net finance expenses were $249.8
million in the year ended December 31, 2013, compared to $289.1
million in the year ended December 31, 2012. The net decrease in
other expenses is detailed below: 
General and administrative expenses were $135.3 million in 2013
compared to $145.9 million in the twelve months ended December 31,
2012. General and administrative expenses have declined mainly as a
result of the Company's cost containment initiative introduced in May
2013, and are expected to be maintained at these lower levels in
2014. 
Exploration and evaluation expenses were $30.2 million in 2013,
compared to $58.0 million incurred in 2012 as a result of the
Company's reduced focus on greenfield exploration. 
Other operating expenses were $78.1 million in the year compared to
$99.3 million in 2012. Lower other operating expenses reflect lower
impairment of investments in available-for-sale securities of $16.3
million for the year compared to $67.7 million in 2012, an $18.1
million write-off of long-term tax credits and a loss of $38.4
million incurred on the sale of non-core exploration properties with
no 2012 comparative.  
Net finance expenses were $6.3 million for the year compared with net
finance expenses of $53.5 million in the same period of 2012. Lower
net finance expense was mainly due to higher foreign exchange gains
in the amount of $17.7 million compared to a foreign exchange loss of
$25.9 million in the comparative period.  
Equity loss from associate was $3.9 million for 2013 compared with
earnings of $50.6 million in 2012. The equity loss was driven by
lower revenues as a result of lower metal prices and lower sales
volume of copper and gold concentrate due to lower production from
Alumbrera. Cash dividends from the Company's equity investment in
Alumbrera during 2013 were $27.9 million compared to $nil in 2012.
During the year, the Company also received loan proceeds of $44.6
million from Alumbrera. 
The Company recorded an income tax expense of $79.1 million in 2013
compared to $373.1 million in the same period of 2012. The decrease
in the income tax expense is a result of lower earnings relative to
the comparative year. The income tax provision for theyear ended
December 31, 2013 reflects a current income tax expense of $140.6
million compared to current tax expense of $265.5 million in 2012,
and a deferred income tax recovery of $61.5 million compared to
deferred tax expense of $107.6 million. The effective tax rate on
adjusted earnings for the year of 2013 was 30.0% compared to 25.0%
for 2012. 
Financial Results for the three months ended December 31, 2013  
Cash flows from operating activities before changes in non-cash
working capital for the quarter ended December 31, 2013 were $165.3
million, lower than the $298.1 million generated for the same period
of 2012. Lower cash flows from operating activities compared to that
of the same quarter in the prior year were mainly due to a decline in
revenue as a result of a decline in metal prices and lower sale
volumes. However, cash flows from operating activities before changes
in non-cash working capital were 10% above levels in the second
quarter when the Company's cost savings and containment program was
initiated. Cash flows from operating activities after taking into
effect changes in non-cash working capital items for the three month
period ended December 31, 2013 were inflows of $184.8 million,
compared to inflows of $367.9 million for the three month period
ended December 31, 2012, which reflects a decrease in trade
receivables.  
Net loss for the quarter was $583.9 million or $0.78 per share
compared with net earnings of $169.2 million or basic earnings per
share of $0.23 and diluted earnings per share of $0.22 for the three
months ended December 31, 2012. Net loss for the quarter includes an
impairment charge of 535.8 million, net of taxes in respect to
certain mineral properties. Adjusted earnings were $36.7 million or
$0.05 per share in the fourth quarter, compared with $197.4 million
or $0.26 per share in the fourth quarter of 2012. Lower adjusted
earnings were attributed to lower realized metal prices, lower volume
of metal sales, higher cash costs and an equity loss from the
Company's 12.5% of interest in Alumbrera.  
Revenues were $420.7 million in the fourth quarter compared with
$629.5 million in the fourth quarter of 2012. Mine operating earnings
were $70.1 million, compared with $322.1 million in the fourth
quarter of 2012. Lower revenues and mine operating earnings were
primarily due to lower metal prices in addition to lower volume of
gold and copper sales. Lower metal prices accounted for 58% of the
variance in revenues in comparison to the fourth quarter of 2012
representing approximately $0.16 per share in earnings. Lower cost of
sales, including depletion, depreciation and amortization expenses,
corresponded to lower sales volumes of gold and copper. 
Revenues for the fourth quarter were generated from the sale of
218,223 ounces of gold, 2.1 million ounces of silver and 34.5 million
pounds of copper, excluding Alumbrera which is accounted for as an
equity investment. This compares to sales, excluding Alumbrera, of
258,978 ounces of gold, 2.3 million ounces of silver and 37.1 million
pounds of copper in the three months ended December 31, 2012. 
The average realized price of gold in the fourth quarter of 2013 was
$1,277 per ounce compared to $1,692 per ounce in the same quarter of
2012, representing a decrease of 24%. The average realized price of
copper was $3.37 per pound compared to $3.54 per pound in the fourth
quarter of last year, representing a decrease of 5%, and the average
realized silver price was $20.63 per ounce compared to $31.37 per
ounce in the fourth quarter of 2012, representing a decrease of 33%. 
Cost of sales excluding depletion, depreciation and amortization for
the fourth quarter of 2013 was $239.0 million compared with $207.2
million in same quarter of 2012. Cost of sales excluding depletion,
depreciation and amortization was higher compared to the same period
in 2012 was mainly due to the higher co-product cash cost of
production. 
Depletion, depreciation and amortization ("DDA") expense for the
quarter was $111.5 million, compared to $100.2 million in the fourth
quarter of 2012. The increase was attributable to higher DDA at
Gualcamayo from AIM which contributed to production levels in 2013
and DDA from the tailings retreatment plant at Minera Florida which
also started to contribute to production in 2013. 
Other expenses including of general and administrative, exploration
and evaluation, other operating and net finance expenses were $62.7
million in the quarter, compared to $66.9 million in the three months
ended December 31, 2012. The net decrease in other expenses is
detailed below: 
General and administrative expenses were $29.8 million in the fourth
quarter compared to $39.0 million in the same quarter of 2012. It is
expected that general and administrative expenses will continue to be
maintained at current levels as a result of the cost containment
initiatives undertaken by the Company. 
Exploration and evaluation expenses were $8.0 million, compared to
$15.1 million incurred in the fourth quarter of 2012 as a result of
the Company's reduced focus on greenfield exploration relative to
2012. 
Other operating expenses were $47.1 million in the quarter compared
to $5.8 million in the fourth quarter of 2012. The increase in other
operating expenses primarily reflects a $38.4 million loss on sale of
non-core exploration properties during the quarter. 
Net finance income was $22.1 million mainly related to foreign
exchange gains in the quarter compared to net finance expenses of
$7.0 million in the fourth quarter of 2012. Foreign exchange gains
resulted from favourable exchange rates of country currencies with
which the Company settled its mine operating expenses compared to
foreign exchange losses in the comparative period of 2012. 
Equity loss from associate was $5.1 million for the quarter compared
with earnings of $50.6 million in the fourth quarter of 2012. The
lower equity earnings were mainly due to lower revenues as a result
of lower metal prices and lower sales volume of concentrate in
addition to higher co-product cash costs from Alumbrera. Lower volume
of concentrate produced was due to mining in lower grade areas. Cash
dividends from the Company's equity investment in Alumbrera received
in the quarter were $6.8 million compared to $nil in the fourth
quarter of 2012. 
The Company recorded an income tax recovery of $57.6 million in the
fourth quarter of 2013 compared to tax expense of $93.2 million in
the same quarter of 2012. The lower income tax expense in the fourth
quarter of 2013 is attributable to lower earnings relative to that of
the fourth quarter of 2012. The income tax provision for the fourth
quarter of 2013 reflects a current income tax expense of $40.7
million compared to tax expense of $46.8 million in the same quarter
of 2012, and a deferred income tax recovery of $98.3 million compared
to tax expense of $98.9 million. During the quarter, the exchange
rates of Brazilian Real and Argentinean Peso against the US Dollar
increased. As a result for local purposes, a reduction of $2.4
million relating to unrealized foreign exchange gain was recorded in
the deferred tax expense. The impact of these foreign exchange
movements on taxes are non-cash and as such excluded from adjusted
earnings. The adjusted tax rate for the fourth quarter of 2013 was
22.3% compared to 29.7% for the fourth quarter of 2012.  
Operating Results for the year ended December 31, 2013  
Total production for the Company was 1.20 million GEO comparable to
2012 production level of 1.20 million GEO. Total production for the
year consisted of 1.03 million ounces of gold and 8.4 million ounces
of silver, representing an increase of 1% in gold production and a 7%
decrease in silver production over the period of 2012. Total
production included the Company's attributable production from
Alumbrera of 39,157 ounces of gold and production during
commissioning from Ernesto/Pau-a-Pique, C1 Santa Luz and Pilar of
55,942 ounces of gold. This compares with total production in 2012 of
1.20 million GEO that consisted of 1.01 million ounces of gold and
9.0 million ounces of silver. The 2012 production also included
commissioning production of 12,094 GEO from Mercedes, Minera Florida
and Ernesto/Pau-a-Pique. 
Commercial production for the year consisted of 1.14 million GEO
compared with 1.19 million GEO produced in 2012. Commercial
production for 2013 consisted of 973,921 ounces of gold and 8.38
million ounces of silver, representing a 1% increase in gold
production and a 7% decrease in silver production over the commercial
production of 733,910 ounces of gold and 8.93 million ounces of
silver in 2012. 
By-product cash costs for the year averaged $410 per GEO, compared
with $230 per GEO in the same period of 2012. By-product cash costs
were impacted by a lower copper credit contribution due to lower
copper market prices and lower copper sales volume. The average
market price for copper in 2013 was 8% lower than the average of
2012. By-product cash costs for 2013 exceeded the Company's previous
guidance for a 2013 year-average of below $365 per GEO, which assumed
a copper price of $4.00 per pound compared to average market price
for the year of $3.32 per pound and the Company's average realized
price of $3.28 per pound. 
Co-product cash costs for the year were $596 per GEO compared with
$525 per GEO in 2012. 
Effective January 1, 2013, the Company began reporting all-in
sustaining cash costs, which seeks to represent total sustaining
expenditures of producing gold equivalent ounces from current
operations, based on by-product and co-product cash costs, including
cost components of mine sustaining capital expenditures, corporate
general and administrative expense excluding stock-based compensation
and exploration and evaluation expense. For 2013, all-in sustaining
cash costs were $814 per GEO on a by-product basis and $947 per GEO
on a co-product basis. Average all-in sustaining cash cost on a
co-product basis for the last three quarters was below $925 per GEO
meeting expectations of the cost containment initiative implemented
in the second quarter.  
Copper production for the year was 130.2 million pounds from the
Chapada mine, compared with 150.6 million pounds for the same period
of 2012. Chapada copper production was lower primarily as a result of
expected lower copper grade and recovery rate compared with 2012. A
total of 30.2 million pounds of copper produced from Alumbrera were
attributable to the Company in 2013, compared to 37.4 million pounds
for the year ended December 31, 2012. Total copper production for
2013 was 160.5 million pounds, compared with 188.0 million pounds in
2012. The new ore body, Corpo Sul, and the regrinding project at
Chapada are expected to contribute to future gold and copper
production. 
Co-product cash costs per pound of copper averaged $1.65 per pound
from the Chapada mine in 2013, compared with $1.40 per pound in the
year ended December 31, 2012. Co-product cash costs per pound of
copper for the year including the Company's interest in the Alumbrera
mine were $1.75 per pound compared to $1.48 per pound for the year
ended December 31, 2012. 
Operating Results for the three months ended December 31, 2013  
Total production for the fourth quarter of 2013 was 303,768 GEO, a
decrease of 6% from the 322,990 GEO produced in the fourth quarter of
2012. Total fourth quarter production consisted of 260,187 ounces of
gold and 2.2 million ounces of silver, compared to 276,373 ounces of
gold and 2.3 million ounces of silver produced in the same quarter of
2012. Total production included the Company's attributable production
from Alumbrera of 11,319 ounces of gold and production during
commissioning from Ernesto/Pau-a-Pique, C1 Santa Luz and Pilar of
26,321 ounces of gold.  
Commercial production for the fourth quarter comprised of 277,447 GEO
compared with 321,716 GEO produced in the fourth quarter of 2012.
Total commercial production consisted of 233,866 of gold and 2.2
million ounces of silver, compared to commercial production of
264,888 ounces of gold and 2.2 million ounces of silver in the same
quarter of 2012. The decrease in gold production was mainly due to
the decreased production levels from Chapada, Jacobina, El Penon,
Minera Florida and Mercedes, partly offset by increased production
levels from Gualcamayo and Alumbrera. 
By-product cash costs for the fourth quarter of 2013 averaged $417
per GEO, compared with $198 per GEO in the fourth quarter of 2012.
By-product cash costs were impacted by a lower copper credit
contribution from Chapada and Alumbrera due to the decline in the
copper price and lower copper sales volume. The average market price
for copper in the fourth quarter of 2013 was 9% lower than the
average of the same quarter in 2012.  
Co-product cash costs for the fourth quarter averaged $647 per GEO,
compared to $517 per GEO for the fourth quarter of 2012. Planned
lower grades at certain mines and higher input costs during the
quarter relative to the same quarter of 2012 impacted costs compared
to the three months ended December 31, 2012. In comparison to the
third quarter of 2013, production levels at El Penon and Mercedes
were tapered to contain increasing costs and better position those
mines for 2014. 
All-in sustaining cash costs were $754 per GEO on a by-product basis
well below the guidance level of $850 per GEO and $935 per GEO on a
co-product basis for the fourth quarter of 2013 in line with the
guidance level of $925 per GEO on a co-product basis. 
Copper production for the quarter was 36.0 million pounds from the
Chapada mine, compared with 40.5 million pounds for same quarter of
2012. Chapada copper production was lower primarily as a result of
expected lower copper grade compared to the fourth quarter of 2012. A
total of 9.6 million pounds of copper produced from Alumbrera were
attributable to the Company, compared with 8.5 million pounds for the
quarter ended December 31, 2012 mainly due to higher copper feed
grade. Total copper production for the fourth quarter of 2013 was
45.6 million pounds, compared with 49.0 million pounds in the fourth
quarter of 2012. 
Co-product cash costs per pound of copper averaged $1.53 per pound
from the Chapada mine compared to $1.38 per pound of copper in the
same quarter of 2012. Co-product cash costs per pound of copper for
the quarter including the Company's interest in Alumbrera were $1.58
per pound compared to $1.51 per pound for the fourth quarter of 2012. 
OPERATING MINES 
Charts providing a summary of mine-by-mine operating results are
presented at the end of this press release. 
Chapada, Brazil 
Chapada produced a total of 110,618 GEO contained in concentrate in
2013 compared with 128,171 GEO contained in concentrate in 2012. The
2013 production consisted of 104,096 ounces of gold and 326,087
ounces of silver compared with 119,655 ounces of gold and 425,805
ounces of silver contained in 2012. Chapada copper production was
130.2 million pounds in 2013 compared with production of 150.6
million pounds of copper in 2012. Production for the current year was
lower than 2012 as a result of anticipated lower grades and recovery
rates. 
By-product cash costs for 2013 were negative $1,296 per GEO, compared
with negative $1,865 per GEO for 2012. Higher by-product cash costs
per GEO was mainly due to the effect of lower copper sales volume and
lower average copper prices in 2013 compared to 2012 resulting in a
lower copper revenue by-product credit. Copper prices were 8% lower
in 2013 compared to 2012. 
Co-product cash costs were $400 per GEO in 2013, compared to $333 per
GEO in 2012. Co-product cash costs for copper were $1.65 per pound in
2013 versus $1.40 per pound in 2012.  
Chapada revenues for the year net of sales taxes and treatment and
refining costs were $504.2 million (2012 - $675.1 million). Revenues
included mark-to-market adjustments and provisional pricing
settlements in the year of negative $10.5 million (2012 - positive
$19.4 million). 
In the fourth quarter of 2013, Chapada produced a total of 29,817
GEO, which consisted of 28,223 ounces of gold and 79,696 ounces of
silver, contained in concentrate compared with 32,498 GEO, which
consisted of 30,121 ounces of gold and 118,874 ounces of silver
contained in concentrate in the same quarter of 2012. Chapada copper
production was 36.0 million pounds in the quarter compared with
production of 40.5 million pounds of copper in the fourth quarter of
2012. 
Production for the quarter was lower than the fourth quarter of 2012
as a result of the anticipated lower copper grades and recovery rates
for 2013 relative to 2012. Production for the second half of 2013 was
22% higher than the first half of the year, reflecting a pattern
similar to previous years. 
By-product cash costs for the quarter were negative $1,547 per GEO,
compared with negative $2,021 per GEO for the same quarter in 2012.
Higher by-product cash costs per GEO was mainly due to the effect of
lower copper sales volume and lower copper prices in the fourth
quarter of 2013 compared to 2012, resulting in a lower copper
by-product credit for the quarter. 
Co-product cash costs were $377 per GEO in the fourth quarter,
compared to $349 per GEO in the same quarter of 2012. Co-product cash
costs for copper were $1.53 per pound in the fourth quarter versus
$1.38 per pound in the same quarter of 2012.  
Chapada revenues for the quarter net of sales taxes and treatment and
refining costs were $135.6 million (Q4 2012 - $174.9 million).
Revenues included mark-to-market adjustments and provisional pricing
settlements in the quarter of positive $0.1 million (Q4 2012 -
positive $4.1 million). 
The Company is evaluating the level of profitable production with
minimal capital requirements. Initiatives planned for 2014 include
modifications to the grinding circuit, the installation of an in-pit
crusher to increase throughput, and the development of new ore bodies
including Corpo Sul. These opportunities provide the potential for
increased production at Chapada with Corpo Sul being the largest and
most prospective new opportunity that are planned to increase
production at Chapada towards sustainable future production levels of
at least 130,000 GEO and 130 million pounds of copper at an optimal
cost structure. 
Corpo Sul is a gold and copper deposit at the southwest end of the
main ore body of Chapada with mineral resources of higher average
grade ores especially near the current Chapada pit. Development and
geotechnical work, including the rock mechanics study, the
hydrogeological study and the mine study, continued in support of the
development of the new Corpo Sul area. Infill drilling at Corpo Sul
continues to support the view that ore from this deposit will be
higher grade in both copper and gold and thereby, when blended with
ore from the main pit, should increase overall gold and copper
production at the operation. 
Other opportunities under evaluation include Suruca and Arco Sul. 
El Penon, Chile 
In 2013, El Penon produced 467,523 GEO, which consisted of 338,231
ounces of gold and 6.5 million ounces of silver, representing an
increase from 462,496 GEO, which consisted of 317,557 ounces of gold
and 7.2 million ounces of silver in 2012. Production at El Penon is
expected to normalize to an average of approximately 440,000 GEO per
year. 
Co-product cash costs for 2013 were $485 per gold ounce, compared
with $440 per gold ounce in 2012. The increase in co-product cash
costs per GEO was mainly due to labour inflation partially offset by
higher gold feed grades.  
In the fourth quarter of 2013, El Penon produced 101,364 GEO, which
consisted of 68,246 ounces of gold and 1.7 million ounces of silver,
compared to 128,119 GEO, which consisted of 93,448 ounces of gold and
1.7 million ounces of silver in the same quarter of 2012. Production
decreased mainly as a result of normal sequencing in the mine plan
which called for mining in lower gold and silver grade areas. Silver
recoveries which vary according to the blending of ore being fed to
the mill also impacted production. 
Co-product cash costs were $593 per gold ounce, compared with $415
per gold ounce in the fourth quarter of 2012. The increase in
co-product cash costs per GEO was mainly due to labour inflation and
higher per-unit fixed cost as a result of lower GEO production. 
Mercedes, Mexico 
In 2013, Mercedes produced 141,618 GEO, which consisted of 129,327
ounces of gold and 614,562 ounces of silver, compared with 126,010
GEO, which consisted of 116,215 ounces of gold and 489,747 ounces of
silver in 2012. The production increase was driven by increased
tonnage of ore processed which was partly offset by lower gold feed
grades. 
Co-product cash costs averaged $496 per GEO which were 2% higher than
the average of $485 per GEO in 2012. Co-product cash costs increased
slightly due to higher mining costs per GEO associated with mining in
lower grade areas as part of the mine plan. 
Production of 31,716 GEO in the fourth quarter consisted of 28,821
ounces of gold and 144,715 ounces of silver, compared with 39,443
GEO, which consisted of 36,057 ounces of gold and 169,313 ounces of
silver in the fourth quarter of 2012. The lower quarterly production
was the result of normal mine sequencing in areas of lower gold and
silver grades. 
Co-product cash costs of $656 per GEO were 51% higher than $435 in
the same quarter of 2012. Higher co-product cash costs were due to
higher mining costs associated with mining in lower grade areas as
part of the mine plan. 
Development continued at the Barrancas zone, where the higher grade
Lagunas Norte vein, one of the newest discoveries at the mine, is
located. Production of the Barrancas zone started in the third
quarter of 2012. Confirmation of the width and grades of
mineralization by infill drilling at Lupita and the recent discovery
of high-grade mineralization at Rey del Oro that may be amenable to
underground mining methods have positively impacted measured and
indicated mineral resources. Development of Diluvio will commence in
2014. 
Gualcamayo, Argentina 
In 2013, Gualcamayo produced 120,337 ounces of gold compared with
147,310 ounces produced in 2012. Lower production was the result of
fewer tonnes processed and lower recovery rates, partly offset by
improved feed grade. Gualcamayo underwent a transition in 2013 as the
mine's open-pit operations at QDD Main transitioned to the new Phase
III, resulting in a decline in ore processed compared to that of
2012. Production at QDD Main Phase III began in August and ramp-up,
which has been slower than plan, continued into the fourth quarter
impacting the total tonnage. The QDD Lower West ("QDDLW") underground
mine also began to contribute to heap leach stacking. Completion of
the underground conveyor for QDDLW is expected in the second quarter
and production is expected to ramp up each quarter during 2014. 
Co-product cash costs in 2013 averaged $772 per ounce compared with
$536 per ounce in 2012. Co-product cash costs were impacted by the
inflationary pressures on the local cost escalation of labour,
operational services and contractors. 
Gualcamayo produced 34,929 ounces of gold in the fourth quarter
compared with 31,502 ounces produced in the fourth quarter of 2012.
Higher production was the result of feed from higher grade ore from
QDD Main Phase III, Amelia Ines ("AIM") and QDDLW underground which
was partially offset by lower recoveries from AIM and QDDLW ore.
Production at Gualcamayo for December and January averaged over
14,000 ounces per month, consistent with expected production levels
of the expanded operation. 
The metallurgy of the ore from AIM and QDDLW requires a longer
leaching cycle than that of QDD Main and will result in lower
recoveries. While planned,  improvements to the existing plant
including the installation of a filtering station and an increase in
the volume of treatment capacity are planned in 2014 to improve
recovery rates. 
Co-product cash costs were $825 per ounce in the fourth quarter
compared with $485 per ounce in the fourth quarter of 2012. Higher
co-product cash costs were mainly due to delays in the transition to
QDD Main Phase III, start-up of higher cost underground mining at
QDDLW and the duration of the leaching cycle. Higher cash costs were
further exacerbated by the effect of local inflationary pressure on
labour and services. 
Mining costs decreased by 10% from the third quarter and the trend is
expected to continue in the first quarter of 2014. Efforts are being
made to reduce development costs by transitioning the underground
mine development to be performed fully in-house by the second half of
2014. To date, most of the equipment has been delivered and the
Company is now operating with a planned reduction of contractors.
Additionally, the Company is looking at renting equipment for QDD
Main as a means of increasing equipment availability and reducing
maintenance and overhaul costs. Cash costs per ounce will however,
vary depending on the area from which ore is being sourced. Periods
with a higher proportion of ore sourced from the underground mine
will generate higher operating costs. 
The Company continues to have exploration success with the increase
of the sulphide resource at QDDLW and related areas including Rodado.
As the sulphide portion of the ore body grows, the Company is
continuing to progress with studies of the options for processing
these newly discovered resources. 
Jacobina, Brazil 
In 2013, Jacobina produced 73,695 ounces of gold, compared with
116,863 ounces of gold produced in 2012. Production was lower
resulting from lower throughput, lower feed grade and higher
dilution. Production at Jacobina met the revised goals set in the
first quarter of 2013 and more importantly the near term objective
for improvement of costs and underground development have been met,
and the longer term objective of development of higher grade areas is
in progress. 
Co-product cash costs averaged $1,174 per ounce for the year compared
with $747 per ounce in 2012 as a result of lower production volume in
2013.  
Gold production at Jacobina was 19,519 ounces in the fourth quarter,
compared with 28,337 ounces produced in the same quarter of 2012.
Production was lower resulting from lower feed grade, higher dilution
and lower tonnage processed. 
Co-product cash costs were $1,140 per ounce for the fourth quarter, a
decline from the beginning of the year as a result of the cost
containment initiatives implemented since the second quarter,
compared to co-product cash costs of $825 per ounce for the fourth
quarter of 2012. Higher co-product cash costs in the fourth quarter
compared to the same quarter last year reflect reduced production
volume but are expected to return to levels of approximately $800 to
$850 per ounce in the longer-term.  
The Company has taken an impairment charge of $55.0 million against
the carrying value of the goodwill allocated to the Jacobina mine in
the fourth quarter.  
Minera Florida, Chile 
In 2013, Minera Florida produced 118,590 GEO, which consisted of
99,000 ounces of gold and 979,514 ounces of silver, compared to
105,679 GEO, which consisted of 89,163 ounces of gold and 825,812
ounces of silver in 2012, representing an increase in GEO production
by 12%. Production at Minera Florida was as expected as the expansion
for the retreatment of historic tailings made a contribution in the
first of a five year planned production profile. Production in 2013
included commissioning production of 1,861 GEO from the tailings
retreatment plant.  
In addition, the mine produced and sold 5,997 tonnes of zinc in 2013,
compared with 5,381 tonnes of zinc produced and sold in 2012. Zinc is
accounted for as a by-product credit to cash costs. 
Co-product cash costs for the year were $747 per GEO compared with
$797 per GEO in 2012. The retreatment of the tailings has contributed
lower cost ounces to Minera Florida's production profile benefiting
from no mining costs. Additionally cash costs benefited from higher
credits from the sale of zinc resulting from an 11% increase in
volume of zinc sold and higher prices for zinc compared to 2012. 
In the fourth quarter of 2013, Minera Florida produced 30,513 GEO,
which consisted of 24,539 ounces of gold and 298,696 ounces of
silver, compared to 32,797 GEO, which consisted of 27,889 ounces of
gold and 245,383 ounces of silver in the fourth quarter of 2012.
Lower production was mainly attributed to lower feed grades and lower
recovery rates.  
Co-product cash costs for the quarter were $592 per GEO, representing
a 26% reduction, compared with $805 per GEO in the same quarter in
2012. In 2013, the Company initiated a plan of headcount reductions
and cost improvements that resulted in co-product cash costs per GEO
in the fourth quarter 22% lower than that of the third quarter and
35% lower than that of the second quarter. Production from the
tailings retreatment plant has also benefited from no mining costs
associated with the reprocessing of tailings material. 
The mine produced and sold 1,647 tonnes of zinc concentrate in the
quarter, compared with 1,353 tonnes of zinc concentrate produced and
sold in the fourth quarter of 2012. Higher credits from the sale of
zinc resulted from a 22% increase in volume of zinc sold compared to
the fourth quarter of 2012. 
OTHER MINES 
Fazenda Brasileiro, Brazil  
In 2013, Fazenda Brasileiro produced 70,079 ounces of gold compared
to 67,130 ounces of gold in 2012, representing a 4% year-over-year
increase and its second consecutive yearly increase. Co-product cash
costs averaged $808 per ounce for the year, representing a 7%
decrease from $872 per ounce in 2012.  
Production was 18,270 ounces of gold in the quarter compared to
18,251 ounces of gold in the same quarter of 2012.  
Co-product cash costs averaged $809 per ounce for the fourth quarter,
5% lower than $856 per ounce in the fourth quarter of 2012. In 2013,
the Company initiated a plan to reduce costs and now will return the
focus to the production growth objectives at Fazenda Brasileiro. 
The Company has continued to extend mine life since the operation was
acquired in 2003 with two and a half years of mine life remaining
based on the known mineral reserves at that time. The Company
continues infill and extension drilling at Fazenda Brasileiro with a
focus on finding additional mineral reserves and mineral resources. 
Alumbrera, Argentina  
The Company's interest in Alumbrera is accounted for as an equity
investment. The Company recorded a loss from its 12.5% interest in
Alumbrera of $3.9 million and $5.1 million for the year and three
months ended December 31, 2013, compared with earnings of $50.6
million and $18.1 million for the same periods of 2012. Decrease in
equity earnings was mainly due to lower revenues as a result of lower
metal prices and lower sales volume of the gold and copper
concentrate.  
The Company received cash distributions $27.9 million in 2013 of
which $6.8 million in the quarter ended December 31, 2013, compared
with $nil cash distribution in the 2012. 
Through its annual impairment testing, the Company has recorded an
impairment charge in the amount of $70.0 million in respect to its
12.5% interest in Alumbrera.  
Attributable production from Alumbrera was 39,157 ounces of gold and
30.2 million pounds of copper for 2013, compared with 46,077 ounces
of gold and 37.4 million pounds of copper for 2012. For the quarter,
attributable production from Alumbrera was 11,319 ounces of gold and
9.6 million pounds of copper. This compares with attributable
production of 10,769 ounces of gold and 8.5 million pounds of copper
in the fourth quarter of 2012.  
By-product cash costs per ounce of gold averaged negative $252 for
the year and negative $261 for the quarter ended December 31, 2013
compared with negative $1,203 and negative $2,012 per ounce for the
comparable periods in 2012. By-product cash costs were higher due to
the decrease in copper sale credit as a result of lower average
market prices for copper and lower volume of copper sales by
Alumbrera in 2013. Co-product cash costs per ounce for gold averaged
$364 and $313 for the year and quarter ended December 31, 2013,
compared with $308 and $343 per ounce for the same periods of 2012.
Co-product cash costs for copper averaged $2.21 per pound and $1.75
per pound for the year and quarter ended December 31, 2013, compared
with $1.81 per pound and $2.15 per pound for the comparable periods
of 2012.  
Ernesto/Pau-a-Pique, Brazil 
Ernesto/Pau-a-Pique was originally planned as a combination of an
open-pit operation at Ernesto and an underground operation at
Pau-a-Pique with a common plant. A plan has now been developed which
continues to include an underground operation at Pau-a-Pique but now
also contemplates a near-to-surface underground operation at Ernesto.
The Company continues to evaluate other opportunities including the
various satellite open-pit deposits already identified that could
further positively contribute to the operation. Commissioning
continued in the quarter from the underground Pau-a-Pique with less
ore from the first open-pit in Ernesto as an access ramp is being
developed in order to evaluate and better understand the near surface
underground ore body at Ernesto.  
Commissioning production was 27,571 ounces in 2013 and 9,707 ounces
for the fourth quarter, representing an increase of 46% from the
third quarter. During the fourth quarter, the Company continued to
address challenges associated with start-up. In 2013, a loss during
commissioning of $30.4 million was capitalized and netted to the
capital expenditures of the project. Completion of commissioning is
expected in the second quarter of 2014. 
As a result of the delayed start-up of operations and the decline in
the metal prices, the Company has taken an impairment charge of
$168.2 million, net of taxes against the carrying value of the
Ernesto/Pau-a-Pique mine in the fourth quarter.  
C1 Santa Luz, Brazil 
Commissioning began in mid-2013 which was delayed due to permitting,
availability of equipment and the need to ensure sufficient water
reserves for continuous operations. With permits in place and
sufficient water secured, C1 Santa Luz is continuing to ramp-up.
Process improvements will be a key factor to improve production at
the mine. 
The Company has developed and is now implementing certain processing
improvements which includes the introduction of a thickener and a
regeneration furnace. In addition, recoveries should improve as
mining transitions to fresh sulphide ore. During the commissioning
phase a stockpile was accumulated which will provide additional
flexibility increasing reliability for the operation as process
improvements are implemented and take hold. 
Commissioning production was 12,997 in 2013 and 6,120 ounces of gold
in the fourth quarter due to lower recoveries. In 2013, loss during
commissioning of $25.9 million was capitalized and netted to the
capital expenditures of the project. Completion of commissioning is
expected in the third quarter of 2014. 
Pilar, Brazil 
Commissioning began at the beginning of the third quarter and has
progressed more gradually than expected due to the decline in metal
prices and delays in equipment delivery. However, most of the delayed
equipment whose purpose is to improve dilution and productivity has
now arrived on site and now better positions the operation to meet
2014 expectations. This new low profile mining equipment is one of a
series of initiatives being implemented to increase mining
efficiencies at the operation and reduce dilution. The mine
infrastructure to support the new low profile equipment will be fully
operational in the second quarter. The Company is also evaluating
further opportunities including the potential for more selectively
mining the higher grade ore shoots that would have positive impact on
the operation as the in-situ grades are higher than the current
mineral reserve grade. Efforts are focused on an infill drilling
program that is currently underway to ensure these higher grade ore
shoots can be mined efficiently. 
Commissioning production for the fourth quarter was 10,494 ounces of
gold, representing an increase of 115% from the third quarter. Total
commissioning production for the year 2013 was 15,374 gold ounces. In
2013, loss during commissioning of $22.1 million was capitalized and
netted to the capital expenditures of the project. 
Underground development at Pilar continued to progress. The ore from
Caiamar, a satellite deposit, is expected to be processed at Pilar
with the higher grades offsetting the additional transportation
costs. Additionally, the Company has elected to take Maria Lazarus
through the development cycle on an expedited basis as the
exploration drilling results to date indicate possible contribution
to future production. Completion of commissioning is expected in the
third quarter of 2014. 
EXPLORATION 
Exploration at Yamana continues to be a key to unlocking value at
existing operations. The 2014 program will continue to focus on
finding higher quality ounces, those with the greatest potential to
most quickly generate cash flow allowing the Company to grow
prudently and profitably.  
The exploration expenditure for 2013 was $112.0 million. Exploration
expenditures included an infill program at Cerro Moro and Gualcamayo,
which added new mineral resources. Exploration will continue to focus
on mineral resource discovery and development as well as mineral
reserve growth at existing operations, development projects and on
new discoveries to continue developing the Company's project
pipeline. A total of 242,200 metres of drilling at 12 mines and
projects were completed as part of the 2013 exploration program.  
Consistent with the Company's cost containment initiatives and the
focus on ounces that can best contribute to cash flow, the Company
has evaluated its exploration program and where prudent has
reallocated funds to those programs delivering the most encouraging
results. 
The following summary highlights key updates from the exploration
program at the Company for 2013. 
Chapada, Brazil 
The focus of the 2013 exploration program at Chapada was the
completion of an infill program at Corpo Sul to further upgrade the
mineral resources to mineral reserves. The program at Chapada
included 3,545 metres in 51 holes with very favorable results. Closer
spaced drilling identified southwest trending high grade gold and
copper mineralized zones that will improve the average grade of the
Corpo Sul and Chapada deposits and add both copper pounds and gold
ounces to the mineral resource and mineral reserve inventory.
Exploration efforts at Chapada have resulted in increased gold and
copper mineral reserves for year end 2013 and have developed
important additional targets that will be tested in 2014. The Chapada
near mine exploration program investigated several targets including
Hidrothermalito Sul, South Mundinho, Suruca and Suruca West using
geophysics, geologic mapping and stream and outcrop geochemical
sampling to develop drill targets. 
Hidrothermalito Sul - Assay results received early in the fourth
quarter define drill intercepts of anomalous gold up to 12 metres in
length in several holes The Company is encouraged by these initial
results and will incorporate this information to develop new targets
to be tested in 2014. 
Suruca - Final assay results from the 50 by 50 metre infill drill
program are in hand and will be evaluated for mineral resource and
mineral reserve potential in 2014. 
Arco Sul - Arco Sul is a discovery made in late 2010 located in
Western Goias State, 260 kilometres southwest of Yamana's Chapada
mine. Grade shell models were constructed during the fourth quarter
utilizing a 1.5 g/t cut-off grade for the high grade envelopes and
0.5 g/t Au for the low grade envelopes for both the Lavrinha and
Vital deposits. A total of 16 mineral zones are defined at Lavrinha
and 11 at Vital. Mineral resources will be reported internally at a
1.5, 2.0 and 2.5 cut-off grade to help define deposit economics and
sensitivity. 
Ernesto/Pau-a-Pique, Brazil 
The 2013 exploration program included a total of 13,928 meters that
were completed in 95 drill holes investigating near-mine targets and
extensions. This program discovered several new mineral traps that
host potential ore grade gold mineralization which may lead to higher
production rates and extend the life of mine profile. Surface mapping
and geochemical sampling located the Upper, Bonus and Ponces Lacerda
traps, which are new discoveries on the surface, and drilling has
confirmed that the Upper and Bonus traps extend laterally and down
dip. 
Pilar, Brazil 
Underground mapping and sampling along with computer modeling of
drill data has identified moderate to high grade inferred resource
ore shoots that will be drill-tested from the surface during 2014 to
expand the mineral resource and mineral reserve base at Pilar. 
Maria Lazarus - The Maria Lazarus target is located 15 kilometres
west of the Pilar mine in the Guarinos greenstone belt. The Maria
Lazarus access ramp drilling was completed in October with 1,002
metres drilled in 13 holes. A geologic model of Maria Lazarus was
developed outlining eight identifiable units including
quartz-biotite-chlorite schist which hosts the majority of the gold
bearing quartz and quartz-albite vein mineralization at Maria
Lazarus. The mineral resource model was also developed into three
regions (south, central and north) and divided into five levels. The
mineral zones at Maria Lazarus dip 40-50 degrees and are thought to
be extractable using common underground mining techniques. 
Caiamar - Geologic work was focused on mapping the underground
exposures. M
apping identified two main phases of deformation via
thrust faulting and northwestern to southeastern structural movement. 
C1 Santa Luz, Brazil 
The 2013 exploration program was successful in identifying and
outlining a deep down dip extension to the C1 near-surface deposit
that will add important ounces and grade to the mineral resource
inventory. The new mineralization is thought to be of sufficient
width and grade to be economically extracted using common underground
mining techniques. An economic evaluation will be initiated in 2014. 
During the year, the near-mine and district exploration drill
programs completed 21,332 metres distributed in 66 holes. The near
mine program tested the up-dip extension of the southwestern deep
target and completed infill holes and tested the northern extensions
at Antas III. The regional program tested the Gravata and Rancho do
Carneiro targets. Results from both programs are in line with prior
results and are being evaluated for economic potential. 
Results of additional surveys to be performed to collect IP
Resistivity data at C1 and Magnetotellurics (MT) activity over the
meta-volcanic rocks to the west will be incorporated into the
exploration program for 2014. 
Cerro Moro, Argentina 
The focus of the 2013 exploration program was to develop and test new
targets that are both within and outside of the known mineralized
structural blocks. During the fourth quarter, 1,077 metres in five
holes were drilled to complete the 2013 exploration drill program.
This drilling tested the Carlita, Patricia and Margarita veins in an
effort to build and expand the known mineralization envelopes. The
final hole of the year drilled at the southeast end of the Margarita
system cut important gold and silver values directly beneath the
P0/P1 contact leaving the structure open to the southeast and to
depth. 
Following completion of the exploration drill program, the geology
department focused on end of year data compilation, local mapping and
sampling programs, development support activities, mineral resource
estimation and outlining the 2014 exploration program. 
Gualcamayo, Argentina 
Due to positive results returned from drill holes testing the Rodado
southwest and beneath QDDLW early in the year, exploration drilling
was focused on Rodado southwest. During the fourth quarter, two
diamond core rigs completed a total of 3,878 metres distributed in
nine holes positioned from two underground drill stations. Positive
assay results from these holes continued to expand the mineral
envelope of Rodado southwest and the potential ore body, which
remains open along strike and down dip. This deep mineralization is
unoxidized and found largely within hydrothermal and tectonic
breccia. A feasibility study is needed to determine the viability of
the mineral zones. 
El Penon, Chile 
The 2013 exploration program tested the limits of near-mine veins and
ore zones for extensions and probed the limits of the El Penon mine
complex for new discoveries. Both programs were successful in finding
new veins, such as the NW("north west")1, NW2 and NW3 structures
within the Providencia system and the a new vein structure referred
to as the Borde Oeste vein located one kilometer east of the Cerro
Martillo operations. Both discoveries will be subject to infill
drilling during 2014 to upgrade the mineral resources to mineral
reserves and find a spot in the life of mine production tables at El
Penon. 
Surface and underground based drill-testing of targets within the El
Penon mine area continued through the fourth quarter with 29,514
metres distributed in 95 holes completed, bringing the year 2013
drill totals to 93,333 metres completed in 298 holes. Exploration and
limited infill drill-testing of the NW1, NW2 and NW3 targets within
the Providencia structural trend continued along with a similarly
focused program on the newly discovered Borde Oeste trend. 
At the NW1, NW2 and NW3 northwest trending structures tested within
the Providencia system, narrow to moderate widths of moderate to high
grade gold and silver are being defined. 
In an effort to expand near-mine targets and develop new structures,
long horizontal holes have been completed. One hole to the west from
the south end of the Providencia tunnel cut three potential
structural extensions as evidenced by narrow high grade gold and
silver assay results. The final 0.5 metre intercept of moderate gold
and silver values is 300 meters south of the Pampa Campamento
structure. These intercepts will be followed up with both surface and
underground based drilling in the first quarter of 2014. 
Minera Florida, Chile 
The 2013 exploration program at Minera Florida tested numerous
targets within the Mina Este structural zone adjacent to the Milenium
complex and Tribuna northwest, Sorpresa and Peumo to the northwest,
and also executed a near-mine exploration program, testing surface
targets close to the Minera Florida mine complex. Exploration was
successful testing most of the targets for mineral resource
extensions, added new mineral resource ounces and developed new
target areas for testing in 2014. In the fourth quarter the program
completed 4,510 metres distributed in 29 holes . The program tested
targets within Mina Este such as Triangulo Mineralizado, Lisset and
PVO and additional targets including Tribuna, Victoria and Hallazgo.
Assay results continue to show positive results from most targets. As
an example, a hole drilled at the Triangulo Mineralizado target cut
10 mineral intercepts in the first 70 metres of the hole that are
characterized as narrow to moderately wide zones of potential ore
grade gold equivalent grades. 
The near-mine exploration program completed 3,069 metres in 13 holes
to test the down dip extensions of the Las Lauras-Fantasma and
Gasparin-Lazo-Polvorin structural system from surface based drill
locations. Results received to date are mixed. The structural trends
were cut by all of the drill holes yet grade continuity was not
firmly established. Evaluation of the results is on-going. 
Impairment 
The Company assesses at the end of each reporting period whether
there is any indication, from external and internal sources of
information, that an asset or cash generating unit ("CGU") may be
impaired. Impairment testing is performed using life of mine
after-tax cash flow projections. During the second quarter, the
Company updated its after-tax life of mine cash flow projections with
updated economic assumptions as a result of the decline in metal
prices towards the latter half of the second quarter of 2013. Based
on its assessment during the second quarter, the Company concluded
that there were no impairment charges in respect to its mineral
properties as at June 30, 2013 as a result of the decline in metal
prices at that time. Adverse changes in metal price assumptions were
partially offset by other inputs that resulted in lower costs and
updated mine plans. The recoverable values in the impairment
assessment in the second quarter were calculated assuming long-term
prices of $1,375 per ounce of gold and $3.00 per pound of copper. 
In early October of 2013, after the spot price for gold returned to
the $1,350 per ounce level, it started a continuous decline during
the fourth quarter and dipped below $1,200 per ounce by late
December. During the fourth quarter, the Company performed its
impairment test updating its life of mine after-tax cash flow
projections for updated reasonable estimates of future metal prices,
production based on current estimates of recoverable mineral reserves
and mineral resources, recent operating and exploration results,
exploration potential, future operating costs, capital expenditures,
inflation and long-term foreign exchange rates. The Company examined
future cash flows, the intrinsic value beyond proven and probable
mineral reserves, value of land holdings, as well as other factors,
which are determinants of commercial viability of each mining
property in its portfolio, and concluded that a total o
f $672.0
million ($563.9 million, net of taxes) of impairment charges should
be recognized. The impairment charges in the fourth quarter include
the following: 


 
 
-----------------------------------------------------------------------
-----
                                   For the periods ended December 31, 2013  
----------------------------------------------------------------------------
(in million dollars)                  Three months         Twelve months    
----------------------------------------------------------------------------
                                             After-tax             After-tax
                                 Impairment Impairment Impairment Impairment
----------------------------------------------------------------------------
Goodwill                               55.0       55.0       55.0       55.0
Ernesto/Pau-a-Pique                   175.0      168.2      175.0      168.2
Alumbrera (12.5% Interest)             70.0       70.0       70.0       70.0
Jeronimo(i)                           110.0       88.0      110.0       88.0
Exploration properties                262.0      182.8      272.3      193.0
----------------------------------------------------------------------------
Impairment on mineral properties      672.0      563.9      682.3      574.2
Less: Non-controlling interest                                              
 (43.3%) - Jeronimo                              -28.1                 -28.1
----------------------------------------------------------------------------
Impact on net earnings                           535.8                 546.1
----------------------------------------------------------------------------
(i)  The Company holds 56.7% interest in the Agua de La Falda ("ADLF")      
     project. The ADLF project is an exploration project which includes the 
     Jeronimo deposit and is located in northern Chile.                     

The Company expects there is further or additional value in these
properties over and above what they are being written down to but not
metal price assumptions used in the impairment testing. The valuation
of impairment is based on current forecasts for long-term metal
prices which have been influenced by the recent decline in spot
prices over the last nine months of 2013. These metal price
assumptions are then held constant over mine lives which in some
cases are in excess of fifteen years. The fair values in the
impairment assessment in the fourth quarter were calculated assuming
long-term prices of $1,300 per ounce of gold and $3.00 per pound of
copper. The historical three-year average gold price was
approximately $1,550 per ounce well in excess of the long-term gold
price assumption used in its impairment testing. The Company believes
that it is prudent to update its metal price assumption used in its
impairment testing to reflect current forecasts and it does not rely
on higher prices to drive its business plans, however, the Company
remains positive on the long-term price fundamentals for its metals.
The Company will continue to monitor the valuation of its assets and
the impact of changes in economic assumptions and mine plans on these
valuations. Higher prices in the future could result in greater
volatility in earnings, as the Company reassesses the fair value of
its mineral properties and could potentially reverse a portion or all
of the impairment charges taken. 
In addition to the impairment charges mentioned above, an additional
$10.3 million (before and net of taxes) related to minor exploration
properties was recognized during the year on the decision of not
proceeding with further exploration and/or disposition in the prior
quarters of 2013, bringing the impairment charges against mineral
properties for the year to a total of $682.3 million (574.2 million,
net of taxes).  
Further details of the 2013 fourth quarter and full year results can
be found in the Company's unaudited Management's Discussion and
Analysis and unaudited Consolidated Financial Statements at
http://www.yamana.com/Investors/FinancialCorporateReports.  


 
 
Q4 and Full Year 2013 Conference Call:                                      
 
Conference call information for Wednesday, February 19, 2013, 8:30 a.m. ET. 
 
Toll Free (North America):         1-800-355-4959                           
Toronto Local and International:   416-695-6616                             
Webcast:                           http://www.yamana.com/                   
 
Conference Call REPLAY:                                                     
 
Toll Free (North America):         1-800-408-3053           Passcode 9088417
Toronto Local and International:   905-694-9451             Passcode 9088417

The conference call replay will be available from 2:00 p.m. ET on
February 19, 2014 until 11:59 p.m. ET on February 27, 2014. 
For further information on the conference call or webcast, please
contact the Investor Relations Department at investor@yamana.com or
visit www.yamana.com. 
About Yamana 
Yamana is a Canadian-based gold producer with significant gold
production, gold development stage properties, exploration
properties, and land positions throughout the Americas including
Brazil, Argentina, Chile and Mexico. Yamana plans to continue to
build on this base through existing operating mine expansions,
throughput increases, development of new mines, the advancement of
its exploration properties and by targeting other gold consolidation
opportunities with a primary focus in the Americas. 


 
 
-----------------------------------------------------------------------
-----
Chile                                                                       
                                                            Gold     Silver 
                            Ore       Gold     Silver   Recovery   Recovery 
                      Processed  Grade g/t  Grade g/t         (%)        (%)
----------------------------------------------------------------------------
El Penon                                                                    
Total 2013            1,422,054       7.94     187.16       93.0       75.7 
Q4 2013                 352,276       6.46     183.42       93.0       80.3 
----------------------------------------------------------------------------
Q3 2013                 351,795       8.26     201.99       93.5       77.0 
Q2 2013                 356,607       8.66     187.09       92.6       71.2 
Q1 2013                 361,377       8.37     176.43       93.0       74.0 
Total 2012            1,415,292       7.47     199.21       93.5       80.0 
Q4 2012                 362,874       8.59     195.00       93.0       76.0 
Q3 2012                 361,544       7.72     196.33       93.3       78.1 
Q2 2012                 355,132       6.32     194.34       94.1       82.5 
Q1 2012                 335,741       7.19     212.02       93.5       82.9 
----------------------------------------------------------------------------
Minera Florida                                                              
Total 2013            1,754,785       2.45      32.02       76.1       57.2 
Q4 2013                 492,257       2.07      39.16       79.0       61.6 
----------------------------------------------------------------------------
Q3 2013                 448,820       2.27      23.92       78.0       56.0 
Q2 2013                 402,130       2.58      18.16       77.7       53.8 
Q1 2013                 411,578       2.98      45.84       69.0       56.3 
Total 2012              902,788       3.34      39.29       81.1       67.6 
Q4 2012                 222,440       3.53      46.90       81.6       69.8 
Q3 2012                 227,246       2.97      37.16       80.5       67.3 
Q2 2012                 224,107       3.15      43.31       80.8       69.6 
Q1 2012                 228,994       3.70      25.23       81.4       62.4 
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Chile                                                                       
                                     Silver                                 
                     Gold Ounces     Ounces        GEO             Cash Cost
                        Produced   Produced   Produced   GEO Sold    per GEO
----------------------------------------------------------------------------
El Penon                                                                    
Total 2013               338,231  6,464,623    467,523    466,093       $485
Q4 2013                   68,246  1,655,910    101,364     99,546       $593
----------------------------------------------------------------------------
Q3 2013                   87,968  1,768,205    123,333    130,014       $458
Q2 2013                   91,861  1,514,057    122,142    118,977       $451
Q1 2013                   90,155  1,526,451    120,684    117,557       $455
Total 2012               317,557  7,246,951 
   462,496    457,703       $440
Q4 2012                   93,448  1,733,573    128,119    127,431       $415
Q3 2012                   83,092  1,768,273    118,457    117,390       $422
Q2 2012                   68,275  1,848,501    105,245    104,872       $491
Q1 2012                   72,742  1,896,604    110,675    108,010       $442
----------------------------------------------------------------------------
Minera Florida                                                              
Total 2013                99,000    979,514    118,590    118,687       $747
Q4 2013                   24,539    298,696     30,513     29,732       $592
----------------------------------------------------------------------------
Q3 2013                   23,848    181,156     27,471     27,398       $762
Q2 2013                   23,962    131,029     26,582     26,462       $915
Q1 2013                   26,651    368,634     34,024     35,095       $744
Total 2012                89,163    825,812    105,679    107,198       $797
Q4 2012                   27,889    245,393     32,797     33,244       $805
Q3 2012                   19,994    210,297     24,200     24,371       $826
Q2 2012                   19,179    239,931     23,978     23,229       $811
Q1 2012                   22,101    130,191     24,705     26,354       $748
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Brazil                                                                      
                       Gold     Gold                   By-Product Co-Product
                  Ore Grade Recovery       GEO          Cash Cost  Cash Cost
            Processed   g/t       (%) Produced GEO Sold   per GEO    per GEO
----------------------------------------------------------------------------
Chapada                                                                     
Total 2013 21,347,439  0.26     57.9   110,618  102,018   ($1,296)      $400
Q4 2013     5,540,262  0.28     57.5    29,817   27,707   ($1,547)      $377
----------------------------------------------------------------------------
Q3 2013     5,682,276  0.27     58.3    30,917   28,249   ($1,367)      $358
Q2 2013     5,016,383  0.26     59.6    26,525   21,182     ($490)      $421
Q1 2013     5,108,519  0.23     56.0    23,358   24,882   ($1,769)      $463
Total 2012 21,591,482  0.29     59.4   128,172  121,030   ($1,865)      $333
Q4 2012     5,734,592  0.28     59.4    32,498   29,331   ($2,021)      $349
Q3 2012     5,566,744  0.30     58.6    33,610   29,883   ($1,659)      $341
Q2 2012     5,802,649  0.30     59.8    35,697   35,847   ($2,207)      $302
Q1 2012     4,487,496  0.29     59.6    26,367   25,969   ($1,473)      $348
----------------------------------------------------------------------------
Jacobina                                                                    
Total 2013  1,575,629  1.57     92.2    73,695   77,190               $1,174
Q4 2013       396,235  1.64     93.2    19,519   19,105               $1,140
----------------------------------------------------------------------------
Q3 2013       380,054  1.66     95.4    19,325   18,017               $1,029
Q2 2013       384,614  1.55     90.8    17,485   19,350               $1,270
Q1 2013       414,725  1.45     90.0    17,366   20,718               $1,276
Total 2012  2,104,683  1.84     93.8   116,863  114,786                 $747
Q4 2012       508,737  1.87     92.5    28,337   25,843                 $825
Q3 2012       545,578  1.81     94.4    30,028   31,385                 $768
Q2 2012       523,603  1.75     95.1    28,005   27,852                 $735
Q1 2012       526,765  1.94     93.0    30,493   29,706                 $666
----------------------------------------------------------------------------
Fazenda                                                                     
 Brasileiro                                                                 
Total 2013  1,103,248  2.17     91.1    70,079   69,193                 $808
Q4 2013       284,684  2.15     93.3    18,270   17,152                 $809
----------------------------------------------------------------------------
Q3 2013       292,696  1.97     90.0    16,717   17,573                 $724
Q2 2013       279,862  2.22     91.2    18,295   18,874                 $782
Q1 2013       246,006  2.36     89.8    16,797   15,594                 $920
Total 2012  1,048,489  2.22     89.5    67,130   66,805                 $872
Q4 2012       270,998  2.28     91.8    18,251   17,773                 $856
Q3 2012       255,769  2.52     89.6    18,601   20,448                 $803
Q2 2012       251,430  2.27     88.4    16,219   14,048                 $827
Q1 2012       270,292  1.84     88.1    14,059   14,536               $1,037
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Argentina                                                                   
                                      Gold       Gold       Gold            
                  Ore      Gold   Recovery     Ounces     Ounces  Cash Cost 
            Processed Grade g/t         (%)  Produced       Sold    per GEO 
----------------------------------------------------------------------------
Gualcamayo                                                                  
Total 2013  6,568,912      0.88       72.5    120,337    111,134       $772 
Q4 2013     1,561,180      1.61       43.7     34,929     34,264       $825 
----------------------------------------------------------------------------
Q3 2013     1,298,811      0.86       75.8     27,678     20,570       $919 
Q2 2013     1,915,698      0.51       87.2     27,553     27,770       $761 
Q1 2013     1,793,223      0.67       79.0     30,177     28,530       $584 
Total 2012  7,742,140      0.80       75.5    147,310    149,372       $536 
Q4 2012     2,002,170      0.66       75.8     31,502     33,568       $485 
Q3 2012     1,664,568      0.78       94.0     38,248     42,095       $669 
Q2 2012     1,977,398      0.90       71.6     38,297     33,832       $547 
Q1 2012     2,098,004      0.85       68.1     39,263     39,877       $436 
----------------------------------------------------------------------------
Alumbrera                                                                   
Total 2013  4,671,322      0.37       70.0     39,157     34,521      ($252)
Q4 2013     1,211,561      0.40       73.0     11,319      8,291      ($261)
----------------------------------------------------------------------------
Q3 2013     1,101,433      0.37       73.9      9,634     10,677      ($339)
Q2 2013     1,187,250      0.38       69.0      9,983      8,047      ($115)
Q1 2013     1,171,078      0.34       64.8      8,222      7,507      ($303)
Total 2012  4,962,373      0.40       71.0     46,077     43,580    ($1,203)
Q4 2012     1,305,186      0.36       71.0     10,769     13,546    ($2,012)
Q3 2012     1,271,732      0.45       72.8     13,633     18,566    ($2,254)
Q2 2012     1,218,825      0.44       71.2     12,359      3,242       $711 
Q1 2012     1,166,630      0.36       67.5      9,317      8,227    ($1,270)
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Mexico                                                                      
                                                            Gold     Silver 
                            Ore       Gold     Silver   Recovery   Recovery 
                      Processed  Grade g/t  Grade g/t         (%)        (%)
----------------------------------------------------------------------------
Mercedes                                                                    
Total 2013              670,867       6.16      79.39       94.5       34.4 
Q4 2013                 169,768       5.58      72.84       94.3       35.5 
----------------------------------------------------------------------------
Q3 2013                 171,556       5.83      68.66       94.1       29.4 
Q2 2013                 164,422       6.74      90.61       94.5       34.4 
Q1 2013                 165,122       6.54      86.09       95.0       39.0 
Total 2012              603,188       6.43      78.42       94.8       32.0 
Q4 2012                 164,285       7.38      85.17       95.8       39.0 
Q3 2012                 151,415       6.77      74.23       94.5       29.6 
Q2 2012                 151,425       5.53      70.63       94.9       30.8 
Q1 2012                 136,063       5.90      83.62       93.7       28.4 
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Mexico                                                                      
                                     Silver     
                            
                     Gold Ounces     Ounces        GEO             Cash Cost
                        Produced   Produced   Produced   GEO Sold    per GEO
----------------------------------------------------------------------------
Mercedes                                                                    
Total 2013               129,327    614,562    141,618    146,438       $496
Q4 2013                   28,821    144,715     31,716     33,062       $656
----------------------------------------------------------------------------
Q3 2013                   31,765    116,840     34,102     33,627       $478
Q2 2013                   35,701    176,205     39,226     37,593       $363
Q1 2013                   33,039    176,801     36,575     42,156       $519
Total 2012               116,215    489,747    126,010    126,515       $485
Q4 2012                   36,057    169,313     39,443     36,879       $435
Q3 2012                   31,497    110,817     33,713     31,835       $490
Q2 2012                   26,646    112,729     28,900     28,760       $499
Q1 2012                   22,016     96,887     23,953     29,041       $534
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Copper                                                                      
 Production                                                                 
                                    Copper     Copper     Copper  Cash costs
                   Ore    Copper  Recovery   Produced       Sold   per pound
             Processed Ore Grade        (%)   (M lbs.)   (M lbs.)  of copper
----------------------------------------------------------------------------
Chapada                                                                     
Total 2013  21,347,439      0.35      79.7      130.2        126       $1.65
Q4 2013      5,540,262      0.37      80.4         36       34.5       $1.53
----------------------------------------------------------------------------
Q3 2013      5,682,276      0.36      80.9       36.8       35.7       $1.48
Q2 2013      5,016,383      0.34      80.2       30.1       26.7       $1.76
Q1 2013      5,108,519      0.31      77.0       27.4       29.1       $1.90
Total 2012  21,591,482      0.39      82.2      150.6      139.0       $1.40
Q4 2012      5,734,592      0.40      81.1       40.5       37.3       $1.38
Q3 2012      5,566,744      0.40      80.6       39.4       37.1       $1.38
Q2 2012      5,802,649      0.38      83.3       40.4       37.4       $1.34
Q1 2012      4,487,496      0.36      84.0       30.3       27.3       $1.51
----------------------------------------------------------------------------
Alumbrera                                                                   
Total 2013   4,671,322      0.37      79.0       30.2       25.8       $2.21
Q4 2013      1,211,561      0.43      84.0        9.6        6.6       $1.75
----------------------------------------------------------------------------
Q3 2013      1,101,433      0.36      80.7        7.1        7.3       $2.45
Q2 2013      1,187,250      0.40      76.0        7.2        6.5       $2.40
Q1 2013      1,171,078      0.32      75.2        6.3        5.5       $2.40
Total 2012   4,962,373      0.40      84.0       37.4       35.4       $1.81
Q4 2012      1,305,186      0.30      85.0        8.5       11.1       $2.15
Q3 2012      1,271,732      0.44      85.1       10.4       14.8       $1.92
Q2 2012      1,218,825      0.45      85.9       10.5        2.3       $1.41
Q1 2012      1,166,630      0.40      79.4        8.0        7.2       $1.85
----------------------------------------------------------------------------

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release
contains "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. Except for statements of
historical fact relating to the Company, information contained herein
constitutes forward-looking statements, including any information as
to the Company's strategy, plans or future financial or operating
performance. 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
the Company's expectations in connection with the expected production
and exploration, development and expansion plans at the Company's
projects discussed herein being met, the impact of proposed
optimizations at the Company's projects, the impact of the proposed
new mining law in Brazil and the impact of general business and
economic conditions, global liquidity and credit availability on the
timing of cash flows and the values of assets and liabilities based
on projected future conditions, fluctuating metal prices (such as
gold, copper, silver and zinc), currency exchange rates (such as the
Brazilian Real, the Chilean Peso, the Argentine Peso, and the Mexican
Peso versus the United States Dollar),  
the impact of inflation, possible variations in ore grade or recovery
rates, changes in the Company's hedging program, changes in
accounting policies, changes in mineral resources and mineral
reserves, risk related to non-core mine dispositions, risks related
to acquisitions, changes in project parameters as plans continue to
be refined, changes in project development, construction, production
and commissioning time frames, risk related to joint venture
operations, the possibility of project cost overruns or unanticipated
costs and expenses, higher prices for fuel, steel, power, labour and
other consumables contributing to higher costs and general risks of
the mining industry, failure of plant, equipment or processes to
operate as anticipated, unexpected changes in mine life, final
pricing for concentrate sales, unanticipated results of future
studies, seasonality and unanticipated weather changes, costs and
timing of the development of new deposits, success of exploration
activities, permitting time lines, government regulation and the risk
of government expropriation or nationalization of mining operations,
environmental risks, unanticipated reclamation expenses, title
disputes or claims, limitations on insurance coverage and timing and
possible outcome of pending litigation and labour disputes, as well
as those risk factors discussed or referred to in the Company's
current and annual Management's Discussion and Analysis and the
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 expected financial
and operational performance and results as at and for the periods
ended on the dates presented in the Company's plans and objectives
and may not be appropriate for other purposes. 
CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF
MEASURED, INDICATED AND INFERRED MINERAL RESOURCES 
This news release uses the terms "mineral resource", "measured
mineral resource", "indicated mineral resource" and "inferred mineral
resource" are defined in and required to be disclosed by NI 43-101.
However, these terms are not defined terms under Industry Guide 7 and
are not permitted to be used in reports and registration statements
of United States companies filed with the Commission. Investors are
cautioned not to assume that any part or all of the mineral deposits
in these categories will ever be
 converted into mineral reserves.
"Inferred mineral resources" have a great amount of uncertainty as to
their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies, except in rare
cases. Investors are cautioned not to assume that all or any part of
an inferred mineral resource exists or is economically or legally
mineable. Disclosure of "contained ounces" in a mineral resource is
permitted disclosure under Canadian regulations. In contrast, the
Commission only permits U.S. companies to report mineralization that
does not constitute "mineral reserves" by Commission standards as in
place tonnage and grade without reference to unit measures.
Accordingly, information contained in this news release may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements under the United
States federal securities laws and the rules and regulations of the
Commission thereunder. 
NON-GAAP MEASURES 
The Company has included certain non-GAAP measures including
"Co-product cash costs per gold equivalent ounce", "Co-product cash
costs per pound of copper", "By-product cash costs per gold
equivalent ounce", "Adjusted Earnings or Loss and Adjusted Earnings
or Loss per share" to supplement its financial statements, which are
presented in accordance with International Financial Reporting
Standards ("IFRS"). The term IFRS and generally accepted accounting
principles ("GAAP") are used interchangeably throughout this MD&A,
except that 2010 financial data is presented in accordance with
previous Canadian GAAP.  
The Company believes that these measures, together with measures
determined in accordance with IFRS, provide investors with an
improved ability to evaluate the underlying performance of the
Company. Non-GAAP measures do not have any standardized meaning
prescribed under IFRS, and therefore they may not be comparable to
similar measures employed by other companies. The data is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared in
accordance with IFRS. 
Gold equivalent ounces assumes gold plus the gold equivalent of
silver using a ratio of 50:1. 
CASH COSTS 
The Company discloses "cash costs" because it understands that
certain investors use this information to determine the Company's
ability to generate earnings and cash flows for use in investing and
other activities. The Company believes that conventional measures of
performance prepared in accordance with International Financial
Reporting Standards ("IFRS") do not fully illustrate the ability of
its operating mines to generate cash flows. The measures, as
determined under IFRS, are not necessarily indicative of operating
profit or cash flows from operations. Average cash costs figures are
calculated in accordance with a standard developed by The Gold
Institute, which was a worldwide association of suppliers of gold and
gold products and included leading North American gold producers. The
Gold Institute ceased operations in 2002, but the standard remains
the generally accepted standard of reporting cash costs of production
in North America. Adoption of the standard is voluntary and the cost
measures presented herein may not be comparable to other similarly
titled measures of other companies. Cash costs include mine site
operating costs such as mining, processing, administration, royalties
and production taxes, but are exclusive of amortization, reclamation,
capital, development and exploration costs. Cash costs are computed
both on a co-product, by-product and all-in sustaining basis.  
Cash costs per gold equivalent ounce on a by-product basis is
calculated by applying zinc and copper net revenue as a credit to the
cost of gold production and as such the by-product gold equivalent
ounce cash costs are impacted by realized zinc and copper prices.
These costs are then divided by gold equivalent ounces produced. Gold
equivalent ounces are determined by converting silver production to
its gold equivalent using relative gold/silver metal prices at an
assumed ratio and adding the converted silver production expressed in
gold ounces to the ounces of gold production. 
Cash costs on a co-product basis are computed by allocating operating
cash costs to metals, mainly gold and copper, based on an estimated
or assumed ratio. These costs are then divided by gold equivalent
ounces produced and pounds of copper produced to arrive at the
average cash costs of production per gold equivalent ounce and per
pound of copper, respectively. Production of zinc is not considered a
core business of the Company; therefore, the net revenue of zinc is
always treated as a credit to the costs of gold production. 
All-in sustaining cash costs seeks to represent total sustaining
expenditures of producing gold equivalent ounces from current
operations, including by-product cash costs, mine sustaining capital
expenditures, corporate general and administrative expense excluding
stock-based compensation and exploration and evaluation expense. As
such, it does not include capital expenditures attributable to
projects or mine expansions, exploration and evaluation costs
attributable to growth projects, income tax payments, financing costs
and dividend payments. Consequently, this measure is not
representative of all of the Company's cash expenditures. In
addition, our calculation of all-in sustaining cash costs does not
include depletion, depreciation and amortization expense as it does
not reflect the impact of expenditures incurred in prior periods.
This performance measure has no standard meaning and is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures prepared in accordance with
GAAP. 
Cash costs per gold equivalent ounce and per pound of copper are
calculated on a weighted average basis. 
The measure of cash costs, along with revenue from sales, is
considered to be a key indicator of a company's ability to generate
operating earnings and cash flow from its mining operations. This
data is furnished to provide additional information and is a non-GAAP
measure. It should not be considered in isolation as a substitute for
measures of performance prepared in accordance with IFRS and is not
necessarily indicative of operating costs, operating profit or cash
flows presented under IFRS. 
ADJUSTED EARNINGS OR LOSS AND ADJUSTED EARNINGS OR LOSS PER SHARE 
The Company uses the financial measures "Adjusted Earnings or Loss"
and "Adjusted Earnings or Loss per share" to supplement information
in its consolidated financial statements. The Company believes that
in addition to conventional measures prepared in accordance with
IFRS, the Company and certain investors and analysts use this
information to evaluate the Company's performance. The presentation
of adjusted measures are not meant to be a substitute for net
earnings or loss or net earnings or loss per share presented in
accordance with IFRS, but rather should be evaluated in conjunction
with such IFRS measures. Adjusted Earnings or Loss and Adjusted
Earnings or Loss per share are calculated as net earnings excluding
(a) share-based payments and other compensation, (b) unrealized
foreign exchange (gains) losses related to revaluation of deferred
income tax asset and liability on non-monetary items, (c) unrealized
foreign exchange (gains) losses related to other items, (d)
unrealized (gains) losses on commodity derivatives, (e) impairment
losses and reversals, (f) deferred income tax expense (recovery) on
the translation of foreign currency inter-corporate debt, (g)
mark-to-market (gains) losses on share-purchase warrants, (h)
write-down of investments and other assets and any other
non-recurring adjustments. Non-recurring adjustments from unusual
events or circumstances are reviewed from time to time based on
materiality and the nature of the event or circumstance. Earnings
adjustments for the comparative period reflect both continuing and
discontinued operations. 
The terms "Adjusted Earnings (Loss)" and "Adjusted Earnings (Loss)
per share" do not have a standardized meaning prescribed by IFRS, and
therefore the Company's definitions are unlikely to be comparable to
similar measures presented by other companies. Management believes
that the presentation of Adjusted Earnings or Loss and Adjusted
Earnings or Loss per share provide useful information to investors
because they exclude non-cash and other charges and are a better
indication of the Company's profitability from operations. The items
excluded from the computation of Adjusted Earnings or Loss and
Adjusted Earnings or Loss per share, which are otherwise included in
the determination of net earnings or loss and net earnings or loss
per share prepared in accordance with IFRS, are items that the
Company does not consider to be meaningful in evaluating the
Company's past financial performance or the future prospects and may
hinder a comparison of its period-to-period profitability.
Reconciliations of Adjusted Earnings to net earnings are provided in
the Company's MD&A Section 5 "Overview of Annual Results" and Section
6 "Overview of Quarterly Results" for both the yearly and quarterly
reconciliations, respectively, found on the Company's website at
www.yamana.com. 
ADDITIONAL MEASURES 
The Company uses other financial measures the presentation of which
is not meant to be a substitute for other subtotals or totals
presented in accordance with IFRS, but rather should be evaluated in
conjunction with such IFRS measures. The following other financial
measures are used:  


 
 
--  Gross margin - represents the amount of revenues in excess of cost of
    sales excluding depletion, depreciation and amortization.  
--  Mine operating earnings - represents the amount of revenues in excess of
    cost of sales excluding depletion, depreciation and amortization and
    depletion, depreciation and amortization.  
--  Operating earnings - represents the amount of earnings before net
    finance income/expense and income tax expense.  
--  Cash flows from operating activities before changes in non-cash working
    capital - excludes the non-cash movement from period-to-period in
    working capital items including accounts receivable, advances and
    deposits, inventory, accounts payable and accrued liabilities. Cash
    flows from operating activities before changes in non-cash working
    capital per share is calculated by dividing the cash flows generated
    from operations before changes in non-cash working capital, as reported
    in the consolidated statement of cash flows, by the basic weighted
    average number of common shares outstanding of the corresponding period.

The terms described above do not have a standardized meaning prescribed
by IFRS, and therefore the Company's definitions are unlikely to be
comparable to similar measures presented by other companies. The
Company's management believes that their presentation provides useful
information to investors because gross margin excludes the non-cash
operating cost item (i.e. depreciation, depletion and amortization),
Cash flows from operating activities before changes in non-cash
working capital excludes the non-cash movement in working capital
items, mine operating earnings excludes expenses not directly
associate with commercial production and operating earnings excludes
finance and tax related expenses and income/recoveries. These, in
management's view, provide useful information of the Company's cash
flows from operations and are considered to be meaningful in
evaluating the Company's past financial performance or the future
prospects. 
Contacts:
Yamana Gold Inc.
Lisa Doddridge
Vice President, Corporate Communications and
Investor Relations
416-815-0220 or 1-888-809-0925
investor@yamana.com
 
 
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