7 Mar 2008dividend declaration● Neutral
Yamana declared its first-quarter 2008 dividend of US$0.01 per share, payable April 14, 2008 to holders of record on March 31, 2008. The amount is unchanged from prior quarters.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
23 Jan 2008resource reserve update▲ GoodMajor
Yamana reported a feasibility study for its C1 Santa Luz gold project in Bahia, Brazil: about 103,000 oz a year on average, capital cost US$139 million, cash cost US$390-410/oz, and production starting early 2010. Yamana says it has approved construction start-up. It also finished the Chapada pyrite acid market study and is moving to a final feasibility study (continuing that thread), and gave a first resource estimate for Bonanza and an update for Al Este at El Peñón (the Meridian mine), with more than one million oz of high-grade gold resource reported to date in the new North Block veins. These are study projections, not results.
24 Dec 2007dividend declaration● Neutral
Yamana declared its fourth-quarter dividend of US$0.01 per share, payable January 14, 2008 to holders of record at midnight on December 31, 2007. It is the same amount as the previous quarter's dividend.
20 Dec 2007business combination● NeutralMajor
Meridian shareholders approved the plan of arrangement under which Yamana will buy the remaining roughly 10% of Meridian shares for the same C$7.00 cash plus 2.235 Yamana shares each. It is expected to take effect December 31, 2007, with Meridian delisted from the TSX and NYSE during the week of January 1, 2008. This is the final step of the Meridian takeover, following the 90% already acquired.
26 Nov 2007drilling progress report▲ Good
Yamana gave an exploration update with new high-grade vein results at El Peñón (Chile, a Meridian asset now acquired), and drilling at Jacobina, Pilar de Goiás, Pau-a-Pique (Brazil) and Minera Florida (Chile). It states El Peñón production is expected to rise from over 420,000 gold equivalent ounces in 2008 to over 500,000 in 2010, and Jacobina from about 140,000 oz in 2008 to over 200,000 oz in 2009. These are company projections, not results.
5 Nov 2007business combination● NeutralMajor
Yamana filed the formal Business Acquisition Report on the Northern Orion and Meridian deals. It acquired 100% of Northern Orion (154,103,861 shares) effective October 13, 2007 for about 84 million Yamana shares plus C$154 thousand cash. It acquired 77,426,561 Meridian shares (about 76% fully diluted) effective October 12, 2007 for about 173 million Yamana shares and C$542 million cash. Both were funded from Yamana's existing US$700 million credit facilities maturing in 2012. This confirms the Northern Orion arrangement closed, resolving that open thread, and says Yamana has no current plans for material changes to its business.
5 Nov 2007business combination▲ GoodMajor
Yamana's Meridian offer (C$7.00 cash plus 2.235 Yamana shares per Meridian share) expired on November 2, 2007. Yamana has taken up shares so that it now owns 90,813,237 Meridian shares, about 90% of the company. It plans to buy the rest through a plan of arrangement on the same terms, which would make Meridian a wholly owned subsidiary, with completion expected by year end. This moves the Meridian takeover from tender to the final squeeze-out stage; the minimum tender condition was clearly met.
17 Oct 2007drilling progress report▲ Good
Yamana and Meridian jointly reported exploration results. At Gualcamayo (Argentina), the Amelia Ines/Magdalena satellite deposits now have 518,000 oz of measured and indicated resources (up 87,000 oz) and 170,000 oz inferred (up 73,000 oz). This resource estimate will be used for the AIM feasibility study targeted by year end, matching the year-end timing set in the August update. It also gave drilling results for Jacobina, El Peñón (Chile) and Mercedes (Mexico); the latter two are Meridian properties, shown here as part of the pending deal.
24 Sept 2007business combination▲ GoodMajor
Yamana and Meridian signed a support agreement: Yamana raised the cash part of its offer by C$0.50 to C$7.00 per Meridian share (share part unchanged at 2.235 Yamana shares), and Meridian's board unanimously recommends accepting it. This turns the contest into an agreed deal. The offer is extended to midnight October 12, 2007, and the minimum tender condition is now stated as 50.1% of Meridian shares on a fully diluted basis, down from 66 2/3% in earlier filings. Yamana says the cash will come from its existing debt facilities, and it will appoint three Meridian directors to its board on completion. About 24.4 million Meridian shares had been tendered as of September 19. The Northern Orion arrangement terms are unchanged and Yamana intends to close it soon after Meridian shares are successfully tendered.
21 Sept 2007dividend declaration● Neutral
Yamana declared its third-quarter dividend of US$0.01 per share, payable October 12, 2007 to holders of record on September 28, 2007. This continues the same quarterly dividend amount as the previous quarter.
12 Sept 2007business combination● NeutralMajor
Yamana extended its Meridian offer to 8:00 pm Toronto time on September 24, 2007, after it had been set to expire September 11. About 34.3 million Meridian shares, around 34% of those outstanding, have been tendered, still short of the 66 2/3% minimum condition, which is unchanged. Terms stay at C$4.00 plus 2.235 Yamana shares per Meridian share, and Yamana says no other bidder has emerged. It also announced an analyst day on October 10, 2007.
4 Sept 2007drilling progress report● Neutral
Yamana responded to an exploration update from Meridian, saying it contained nothing new and would not change its offer, which it called 'full, fair and final'. The release states the offer as C$4.00 plus 2.235 Yamana shares per Meridian share, expiring September 7, 2007, which is a higher cash amount than the C$3.15 in earlier filings, so the cash part of the bid had been raised at some point not shown in these filings. This continues the Meridian takeover contest; the filing does not report how many shares have been tendered.
22 Aug 2007production update▲ GoodMajor
Yamana received formal environmental approval for Gualcamayo in Argentina and made a construction decision for the main QDD deposit, resolving the open thread on the environmental assessment (submitted Dec 2006) and the QDD feasibility study due mid-2007. QDD initial capital is US$140.1 million, with a pre-tax return of 21.9%, and start-up is targeted for mid-2008. A scoping study on the Amelia Ines/Magdalena deposits projects about 1.6 million recoverable ounces from QDD plus these deposits over 10 years, with their fuller feasibility update now pushed from end of September to year end. The company plans more than 200,000 oz a year of gold, and these are projections, not results.
22 Aug 2007business combination▲ GoodMajor
Northern Orion shareholders voted in favour of Yamana's acquisition of Northern Orion by plan of arrangement, which Yamana calls a major step toward completing the Meridian deal. The Meridian offer has been extended to 8:00 p.m. on September 7, 2007 (from August 27) by a Notice of Variation and Extension dated August 14, 2007. The Northern Orion deal still needs at least 66 2/3% of Meridian shares tendered, and the final court order; the filing does not say whether those have happened.
20 July 2007business combination● Neutral
This is a second filing of the July 19, 2007 press release announcing the Northern Orion business combination agreement and Yamana's formal Meridian Gold offer, signed by the CFO. It repeats the same terms: 0.543 Yamana share per Northern Orion share, and 2.235 Yamana shares plus C$3.15 cash per Meridian share, with the Meridian offer open to August 27, 2007. It adds nothing new beyond the other copy.
20 July 2007business combination● NeutralMajor
This is the full legal Business Combination Agreement dated July 19, 2007 between Yamana and Northern Orion. It sets the deal up as a plan of arrangement under British Columbia law and follows a binding letter agreement of June 27, 2007. The visible text sets a completion deadline of December 31, 2007 and lists conditions, non-solicitation and termination fee sections; the exact terms in those sections are not visible in the excerpt. It is the formal document behind the terms announced in the press release of the same date.
20 July 2007business combination● NeutralMajor
Yamana and Northern Orion signed a definitive agreement under which Yamana will buy Northern Orion for 0.543 Yamana share per Northern Orion share, and Yamana filed its formal offer for Meridian Gold: 2.235 Yamana shares plus C$3.15 cash per Meridian share, open until August 27, 2007. This spells out the terms of the Meridian bid that the Northern Orion loan was arranged to fund. To complete both deals Yamana says it will issue about 309.8 million new shares (226.1M to Meridian holders, 83.7M to Northern Orion holders) and pay about US$305 million in cash, leaving existing Yamana holders with an expected 53.4% of the combined company. The Northern Orion deal is conditional on at least 66 2/3% of Meridian shares being tendered.
20 July 2007debt financing● NeutralMajor
Yamana signed a loan agreement dated July 19, 2007 with Northern Orion Resources for up to US$200 million, at LIBOR plus 2%, to be used only for the cash part of its offer for Meridian Gold shares. The loan is secured by the first 15,673,981 Meridian shares Yamana takes up (valued at US$400 million), can be drawn through December 31, 2007, and falls due at the earlier of 30 days after Yamana acquires 100% of Meridian or 12 months after first drawdown. It ties to a Business Combination Agreement between Yamana and Northern Orion of the same date and signals a new Meridian takeover offer; the visible text does not give the offer's terms.
20 July 2007business combination● Neutral
Yamana filed a formal Business Acquisition Report (dated December 22, 2006) on the Viceroy Exploration takeover. It says Yamana acquired 51,735,680 Viceroy shares (95%) for about 50,183,610 Yamana shares, effective October 13, 2006, and has begun compulsory acquisition of the rest. This formalises the Viceroy deal and Gualcamayo project already in the story, and says Yamana has no current plans for material changes to the business; it does not report the compulsory acquisition as finished.
26 June 2007dividend declaration▲ Good
Yamana declared a second-quarter dividend of US$0.01 per share, payable July 16, 2007 to shareholders of record on June 29, 2007.
7 June 2007drilling progress report● Neutral
Yamana said its shares are expected to move from London's AIM to the main market of the London Stock Exchange on June 12, 2007, with AIM trading cancelled at the same time. No new shares are being issued, the tickers stay the same (YAU, YRI, AUY), and the company states it has 354.2 million shares outstanding. The filing is labelled as a drilling update in its title, but the content is only about the listing.
24 May 2007drilling progress report▲ Good
Yamana reported five new drill holes at the Amelia Ines and Magdalena satellite deposits at Gualcamayo, with Magdalena hole QD-400 returning 4.90 g/t gold over 149.15 m and Amelia Ines hole QD-389 returning 2.65 g/t over 78.67 m. It says the QDD feasibility study is still due by end of June, with the satellite update by end of September, and QDD start-up still mid-2008; the company says the results suggest a larger, higher-grade deposit, but resources there are still from 2004 and drilling continues.
17 May 2007resource reserve update▲ GoodMajor
Yamana completed a scoping study for a Pyrite Project at Chapada to recover extra gold and copper and make sulphuric acid from tailings concentrate. It estimates capital cost of $194.8 million, a pre-tax return of about 20% (above 27% at current prices), and about 320,000 extra ounces of gold and 94 million pounds of copper over the mine life. It is proceeding to a marketing study and then a feasibility study. For Gualcamayo, the QDD open pit feasibility study is due in June, with a second phase on the Amelia Inés and Magdalena satellite deposits by the end of summer, and a resource update for the QDD lower west zone by year-end.
15 Mar 2007drilling result▲ Good
Yamana reported bottle-roll metallurgical tests at Gualcamayo: average gold recovery of 73.6% for Amelia Ines/Magdalena (21 tests) and 81.1% for the QDD Lower West underground target (16 tests), or 85.7% excluding one unoxidized sample. The company says it targets Amelia Ines/Magdalena production from Year 2 and QDD Lower West from Year 3, with feasibility work due in Q2 and Q3 2007 and a preliminary economic evaluation for Lower West later in 2007. These are management targets and not confirmed.
13 Feb 2007production update▲ GoodMajor
Yamana declared commercial production at its Chapada copper-gold mine effective Feb 11, 2007, resolving the open thread about reaching commercial production, which had been expected in Q1 2007. The mine made over 16,000 tonnes of concentrate in January and is expected to produce over 210,000 tonnes this year. A first overseas shipment of 10,800 tonnes (about 6.7 million pounds of copper and 9,300 ounces of gold) is in transit, and its revenue will now count in operating results. The copper is expected to cut Q1 cash costs per ounce of gold by about US$100 across Yamana's mines, and costs will be reported net of copper by-product credits going forward.
17 Jan 2007drilling progress report▲ GoodMajor
Yamana reported infill drilling at Gualcamayo, including hole 06QD-377 with 4.86 g/t gold over 24m inside 2.11 g/t over 84m, and says resources may support a larger operation than the planned 16,000 tonnes per day. It also reported a San Andrés (Honduras) measured and indicated resource of 1,290,000 ounces as of Oct 31, 2006, up 455,000 ounces (54%) from the 835,000 ounces when Yamana acquired the property on Feb 28, 2006, plus reserves of 499,000 ounces. Production at the East Ledge pit is about 80,000 ounces a year, and the company says it is monitoring a new mining law in Honduras that matters for expansion plans; Gualcamayo start-up is still planned for mid-2008.
20 Dec 2006regulatory community update▲ GoodMajor
Yamana said Minas Argentinas S.A., its wholly owned subsidiary acquired through the Viceroy deal, submitted the Environmental Impact Statement for the Gualcamayo project in San Juan, Argentina, the final submission needed for the mine development permit. The permit is expected in about four months, construction in mid-2007 for roughly 12 months, and start-up is still scheduled for mid-2008. The release also says the Viceroy take-over bid is complete and compulsory acquisition of the remaining Viceroy shares at 0.97 Yamana share each has begun, with Viceroy still a public company until that finishes.
7 Nov 2006resource reserve update▲ GoodMajor
Yamana released an updated feasibility study for its São Vicente project in Brazil. Mineral reserves rose 69% to 341,883 ounces, and the study supports a stand-alone open pit mine with an initial 5.3-year life and about 57,000 ounces of gold a year. Pre-production capital is estimated at US$43.6 million and the after-tax IRR at about 17% at US$550/oz gold. Yamana has made a positive construction decision, with completion scheduled for early to mid 2008. The release also gives drilling results at the Pau-a-Pique and Ernesto prospects on the same gold belt as São Francisco.
16 Oct 2006business combination▲ GoodMajor
Yamana said 49,035,591 Viceroy Exploration shares, 90.6% of those outstanding, were tendered to its offer of 0.97 of a Yamana share per Viceroy share, and it has accepted them for payment, with Yamana shares to be issued on October 18, 2006. The offer is extended to October 27, 2006 for the rest, and Yamana says it has started the steps to own 100% of Viceroy. This continues the Viceroy bid launched September 6, 2006 and is how Yamana is taking on the Gualcamayo project in Argentina mentioned in the production update the same day.
16 Oct 2006production update▲ GoodMajor
Yamana said it has started up its Chapada copper-gold mine, its largest. It expects to begin delivering copper and gold concentrate in November and to reach commercial production levels in Q1 2007, with 2007 and 2008 production guidance unchanged. Q3 2006 gold production was about 89,000 ounces from five other producing gold mines, including about 29,600 ounces at Sao Francisco (its first quarter of commercial production) and about 19,300 ounces at Jacobina. The release also says the Viceroy take-over bid is bringing the Gualcamayo project in Argentina.