Yamana Gold decides not to divest Brazilian operations after all
Canadian Yamana Gold (TSX:YRI) (NYSE:AUY) has decided to cancel plans to divest a bunch of its less favoured mines in Brazil, which grouped a year ago under a fully owned subsidiary named Brio Gold Inc.
In a statement late Monday, the Toronto-based company, which also operates in Chile, Mexico and Canada, said it would rather hold the assets for the foreseeable future.
“Current market conditions are not supportive of that marketed private placement on terms we would find acceptable,” Yamana said. It added that any deals it may be able to secure now would not be reflective of the true value of the assets, particularly in light of recent positive operational developments.
Brio Gold is expected to produce more 155,000 ounces of the precious metal next year from Fazenda Brasileiro and Pilar, adding eventually another 100,000 ounces a year from C1 Santa Luz, which is being evaluated for development potential.
Gold extended losses to hit the lowest levels of the session on Tuesday after data showed the U.S. economy grew less than initially expected in the third quarter, but still beat expectations.
February delivery on the Comex division of the New York Mercantile Exchange shed $5.00, or 0.46%, to trade at $1,075.60 an ounce during U.S. morning hours.