Yamana Gold Inc. (USA)(NYSE:AUY) reported that net loss from continuing operations in 3Q2016 came at $0.00 per share compared to net loss of $0.11 per share in the same period, a year earlier. This increase in losses can be attributed to higher gold and silver prices, partially offset by reduced sales of copper and silver, considerably lower metal prices for copper.
The highlights
Net loss highlights the impact of lower depreciation, depletion and amortization resulting from the impairment linked to producing assets taken in 4Q2015. The firm was able to post cash of $33.6 million from the removal of Sandstorm warrants, and recognize a cumulative advancement of $18.2 million since getting the warrants in previous year.
Yamana Gold reported that adjusted earnings from continuing businesses were $17 million for the three months closed September 30, 2016, against adjusted loss of $16.5 million for the comparable period, a year earlier. Mine operating earnings in 3Q2016 came $91 million against $52.1 million in the same quarter, a year earlier.
Revenue in 3Q2016 came at $464.3 million compared to $424.4 million in the third quarter of 2015 led by higher average realized price for silver and gold, offset by lower copper and silver sales and a considerably lower price for copper. This revenue comprised of the revenues from 296,330 ounces of gold, copper sale of 22.1 million pounds and 1.5 million ounces of silver.
Cost of sales excluding DDA in 3Q2016 was $261.2 million against $248 million for the comparable period in FY2015. It was higher in the reported period due to increased cash expenses and foreign exchange impact of the appreciation of the Chilean Peso and Brazilian Real, partly offset by lower copper and silver sales volume.
Gross margin excluding DDA for 3Q2016 was $203.1 million against gross margin of $176.4 million in the same quarter of 2015, which came from a revenue jump of $39.9 million, partly offset by a surge in cost of sales discounting DDA of $13.2 million.
Yamana Gold reported that DDA expense in 3Q2016 was $112.1 million, lower than $124.3 million recorded in 3Q2015. This decline can be attributed to lower copper and silver sales volume.
