Yamana Gold Inc. said June 26 that its Cerro Moro gold-silver mine in Argentina achieved commercial production on schedule and on budget. The initial gold pour was completed in mid-May.
The company is now focusing on optimization and ensuring operating costs reach guidance levels.
Yamana said in May that it expected the operation to produce 85,000 ounces of gold and 3.75 million ounces of silver in 2018 and 125,000 ounces of gold and 6 million ounces of silver in 2019.
“Cerro Moro is expected to generate a disproportionate amount of cash flow and free cash flow relative to the comparatively small-scale nature of the operation,” Yamana CFO Jason LeBlanc said in a statement.
“With the planned reduction in expansionary capital spending and the anticipated strong margin to metal prices at Cerro Moro, per prior guidance the step change in cash flow we have planned is expected to begin in the second half of 2018 and be more pronounced beginning in 2019,” LeBlanc said.
