Tag Archives: Jacobina

Gold Fields looks to take over Yamana Gold in major M&A deal

31st May 2022Mining mergers and acquisitions, Precious metalsChris Griffith, El Peñón, Gold Fields, Jacobina, Lavra Velha, MARA, Minera Florida, Minera Florida and Lavra Velha, Odyssey, Peter Marrone, Salares Norte, South Deep, Wasmac, Yamana GoldDaniel Gleeson

Gold Fields and Yamana Gold have entered into a definitive agreement, under which Gold Fields will acquire all the outstanding common shares of Yamana pursuant to a plan of arrangement in a deal that could create a top three gold producer (by production).

Under the terms of the transaction, all outstanding Yamana shares will be exchanged at a ratio of 0.6 of an ordinary share in Gold Fields or 0.6 of a Gold Fields American depositary share for each Yamana share. The transaction, which has been unanimously approved by the Board of Directors of both Gold Fields and Yamana, implies a valuation for Yamana of $6.7 billion and represents a premium of 33.8% to the 10-day Volume-Weighted Average Price of Yamana’s shares on May 27.

Upon closing of the transaction, it is anticipated Gold Fields shareholders and Yamana shareholders will own approximately 61% and 39% of the combined group, respectively.

Based on 2021 production, the combined group would have a 3.4 Moz profile along with a 25-year reserve life. It would also benefit from the near-term growth of Gold Fields’ Salares Norte (Chile) and South Deep (South Africa) mines, and longer-term growth from Yamana’s Wasamac (Canada), Malartic Odyssey (Canada) and MARA (Argentina) projects as well as additional opportunities in Yamana’s high-quality exploration pipeline, the companies said.

Gold Fields and Yamana currently have 14 mines providing regional relevance across premier, rules-based mining jurisdictions including North America, South America, Africa and Australia, they said.

The deal would create the third largest gold company by gold production in 2024, and fourth largest by market capitalisation, according to the companies, but there is also a clear near-term path towards some 4 Moz of gold-equivalent steady-state annual production, Gold Fields said.

Wasamac, in feasibility study stage, is included within this, but beyond that, the company also outlined growth potential from Jacobina, El Peñón, Minera Florida and Lavra Velha, plus longer-term upside that included the development of MARA.

MARA, owned 56.25% by Yamana, is a joint venture with Newmont and Glencore. It is a brownfield operation leveraging existing Minera Alumbrera infrastructure that has 38.9 Moz of reserves.

A feasibility study on the project is expected to be completed by year end, with the report published in the March quarter of 2023.

Chris Griffith, Chief Executive Officer of Gold Fields, said about the combination: “Today we are announcing the acquisition by Gold Fields of Yamana, two companies with complementary portfolios, cultures and strategic priorities.

“The result is a combination with much greater capacity and potential value than the sum of its parts. Each company brings with it a unique set of skills and geological knowledge, enabling the combined group to enhance its assets more efficiently over the long-term than they could as separate companies.

“Like Gold Fields, Yamana is focused on operational delivery, disciplined capital allocation, portfolio management, maximising shareholder returns, and upholding leading sustainability, safety and ESG performance. These shared priorities are foundational to this transaction.”

Peter Marrone, Executive Chairman of Yamana Gold, added: “This is an outstanding opportunity for our shareholders, employees and the local communities in which we operate throughout the Americas. The transaction delivers an immediate and compelling premium for Yamana Shareholders, reflecting the inherent fair value of our assets, while also offering an opportunity to benefit from the creation of a new global gold producer with an attractive value proposition.

“The combination of Yamana and Gold Fields creates a world-class, globally diversified company with regional relevance across premier, rules-based mining jurisdictions that is underpinned by low cost, long life mines.”

The initial target for pre-tax synergies is approximately $40 million/y, anchored in operational integration, as well as potential financing synergies and a streamlining of overhead cost structures, they said.

The deal, which is subject to several approvals, is expected to close in the December quarter.

Yamana ups its climate action ante, considers further use of BEVs, automation

16th December 2021Automation, Environmental, Mine operation news, Mining industry recognition, Power supply for mines, Precious metals, Sustainable miningautomation, battery-electric vehicles, Brazil, Canadian Malartic Mine, Climate Action Strategy, El Peñón, Jacobina, Minera Florida, Odyssey, Quebec, Science Based Targets initiative, Wasamac, Yamana Gold IncDaniel Gleeson

Yamana Gold Inc has announced the outcome of its foundational work on its Climate Action Strategy, raising its climate action ambition by adopting a 1.5ºC target compared to pre-industrial levels and laying the groundwork for the incorporation of more renewable energy sources and battery-electric vehicles at its mines.

The foundational work began in early 2021 and Yamana previously indicated it would complete its work and establish science-based greenhouse gas (GHG) abatement targets by the end of the year. This has seen the company determine base year emissions, emissions forecasts, GHG abatement pathways for Scope 1 and 2 emissions, and physical and transition risks aligned with the Task Force on Climate-related Financial Disclosures (TCFD).

After conducting top-down and bottom-up GHG reduction opportunity assessments at each operation, Yamana has raised its ambition from a 2ºC-aligned target in early 2021 to a 1.5ºC target.

Work has been performed in conformance with evolving international best practice, including the GHG Protocol, Science-based Targets Initiative (SBTi) guidelines, and the Mining Association of Canada’s Towards Sustainable Mining Climate Change Protocol.

Based on the company’s analysis of a 1.5ºC temperature scenario, an annual emissions reduction of approximately 4.2% will be required until 2030. Yamana has concluded it will be able to meet these reduction targets by its 2030 target through a focus on efficient, high-grade underground mines and operating in jurisdictions that have a large proportion of available renewable, green electricity.

A newly signed power purchase agreement at its Minera Florida operation (Chile), scheduled to become effective in 2022, will provide 100% renewable electricity over the next five years. When coupled with similar agreements at Jacobina (Brazil, pictured) and El Peñon (Chile), approximately 85% of the company’s gold-equivalent ounces will be produced with renewable energy by the end of next year.

As part of its previously announced growth plans at Wasamac (Canada), Odyssey (Canada) and Jacobina (Brazil), Yamana is evaluating opportunities to further reduce its GHG emissions by investing in battery-electric vehicles, automation and other emerging technologies. Meanwhile, the company’s near-term growth in both Quebec and Brazil will leverage electrical grids that have a high proportion of green, renewable energy. Hydroelectric and other forms of non-fossil fuel energy constituted more than 99.9% of the Quebec grid energy in 2020, it said.

In 2022, the company will continue to refine its analysis and transition to a more operations-focused approach as it continues work to identify and assess additional opportunities to reduce GHG emissions. The company will also begin to define its Scope 3 GHG emissions, including those from its 50% owned Canadian Malartic Mine.

Yamana Gold evaluates Jacobina backfill plant, underground mine at Canadian Malartic

26th January 2021Mine operation news, Mineral processing, Mining equipment, Precious metals, Water managementAgnico Eagle, Brazil, Canada, Canadian Malartic, East Gouldie, East Malartic, Jacobina, Odyssey, Quebec, Yamana GoldDaniel Gleeson

Yamana Gold says it is evaluating the installation of a backfill plant at its Jacobina gold mine in Brazil (pictured) in a move that would reduce the asset’s environmental footprint, as well as extend the life of the operation’s existing tailings storage facility.

The backfill plant would allow up to 2,000 t/d of tailings to be deposited in underground voids, Yamana said in its 2021-2023 guidance and 10-year overview release.

The miner said the construction and operation of a backfill plant would also improve mining recoveries at the operation, resulting in increased conversion of mineral resources to mineral reserves.

Jacobina produced 44,165 oz of gold during the December quarter and an all-time high of 177,830 oz for 2020, the company reported in a separate release.

This was the seventh consecutive year of increasing production at the operation, a trend that is expected to continue in the coming years, Yamana said.

“Successful infill and exploration drilling in the Canavieiras and João Belo sectors during 2020 continues to generate significant growth potential,” the company added.

Production in 2021 is forecast to be in a similar range to the 177,830 oz recorded in 2020, Yamana said.

“The operation exceeded the targeted throughput rate of 6,500 t/d for the Phase 1 expansion, and it continues to identify and implement additional processing plant optimisations to further increase throughput, improve recoveries and reduce costs,” the company said. “Beyond further optimisations, the feasibility study for Jacobina’s Phase 2 expansion plans to increase throughput to 8,500 t/d and raise annual production to 230,000 oz remains on track for mid-2021.”

Yamana’s base case in its 10-year overview also included production from an underground mine at the Canadian Malartic operation in Quebec, Canada. This consists of the East Gouldie, Odyssey, and East Malartic zones, (collectively known as the Odyssey project).

Owned 50:50 by Yamana and Agnico Eagle, the Canadian Malartic open-pit mine exceeded its revised 2020 guidance, producing 568,000 oz of gold (on a 100% basis). Production last year was impacted by COVID-19 related restrictions on mining in Quebec and is forecast to increase in 2021 to 700,000 oz, with all-in sustaining costs projected to decline to $850-$885/oz, from $945/oz in 2020.

The Canadian Malartic open pit will be depleted in the first half of 2023, and waste rock and tailings will be deposited into the pit beginning in 2023, Yamana says.

This coincides with planned first production from the Odyssey South zone at the underground project, with the Upper East Gouldie zone expected to come online in 2027.

The most recent underground mineral resource for the project, which was published in February 2020, showed more than 10 Moz of gold (100% basis), including 9.6 Moz ounces of inferred mineral resources (100% basis) and 830,000 oz of indicated mineral resources (100% basis).

“In the interim, exploration results have been exceptional, improving economics and increasing confidence that the underground project will be a multi-hundred-thousand-ounce annual producer for decades,” Yamana said.

Key development milestones for the underground project over the next three years include the development of a ramp into the Odyssey, East Malartic, and East Gouldie zones, which will allow for tighter definition drilling to further expand the mineral resource base, along with headframe construction and shaft sinking, Yamana said.

A preliminary economic assessment for the project is expected to be completed in February.