Yamana Gold Raises Dividend by Further 12%; Fourth Dividend Increase Announced by the Company in the Past Year for a Cumulative Increase of 250%

TORONTO, July 23, 2020 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or the “Company”) today announced it is increasing its annual dividend by a further 12% to $0.07 per share.

This is the fourth dividend increase in the past year and represents a cumulative increase of 250%. 

The Company will continue to take a gradual and progressive approach to dividend increases as its cash balances continue to grow from increasing cash flows and successful initiatives to monetize its portfolio of non-producing assets and financial instruments. 

At the new annual dividend rate, the dividend paid will be above $70 per gold equivalent ounce (“GEO”), in line with the Company's target of between $50 and $100 per GEO. 

The Company considers dividends an important component of returns on investment for shareholders. Since late 2006, when the Company first began paying dividends, it has paid in excess of $940 million in dividends, which compares very favourably to senior level peers. 

Further, the Company believes dividends impose a discipline on management in relation to a company’s financial resources and capital allocation. With current levels of cash flows and cash balances, the Company has sufficient financial flexibility to invest in its business, including its organic growth opportunities, while maintaining its dividend at the new level. As cash flows and cash balances increase, the Company will consider further increases in its dividend. 

With current levels of cash on hand, the Company would have sufficient available funds to fund its business and pay the new current dividend for several years independently of gold price.

About Yamana
Yamana Gold Inc. is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in the Americas.