Yamana Gold Announces Fourth Quarter and Year End 2013 Results

NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Yamana Gold Inc. 
TSX SYMBOL:  YRI
NYSE SYMBOL:  AUY 
FEBRUARY 18, 2014 
Yamana Gold Announces Fourth Quarter and Year End 2013 Results 
TORONTO, ONTARIO--(Marketwired - Feb. 18, 2014) - 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.  
/T/ 
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 
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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
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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
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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
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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.                                                              
/T/ 
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.
Mapping 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
of $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: 
/T/ 
---------------------------------------------------------------------------- 
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.                      
/T/ 
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.  
/T/ 
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 
/T/ 
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. 
/T/ 
----------------------------------------------------------------------------
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
---------------------------------------------------------------------------- 
/T/ 
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:  
/T/ 
--  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. 
/T/ 
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.  
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Yamana Gold Inc.
Lisa Doddridge
Vice President, Corporate Communications and
Investor Relations
416-815-0220 or 1-888-809-0925 
INDUSTRY:  Manufacturing and Production - Mining and Metals 
SUBJECT:  ERN 
-0-
-0- Feb/19/2014 00:31 GMT
 
 
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