Yamana Gold Inc.

Thank you all for joining us this morning. Before I turn the call over, I need to advise that certain statements made during this call today may contain forward-looking information and actual results could differ from the conclusions or projections in that forward-looking information, which include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the timing and amount of estimated future production, cost of production, capital expenditures, future metal prices, and the cost and timing of the development of new projects. For a complete discussion of the risks, uncertainties, and factors which may lead to actual financial results and performance being different from the estimates contained in the forward-looking statements, please refer to Yamana's press release issued yesterday announcing second quarter 2021 results, as well as the management's discussion and analysis for the same period and other regulatory filings in Canada and the United States. I would like to remind everyone that this conference call is being recorded and will be available for replay today at 12 p.m. Eastern Time. Replay information and the presentation slides accompanying this conference call and webcast are available on Yamana's website at Yamana.com. I will now turn the call over to Mr. Daniel Racine, President and CEO.

Daniel Racine Thank you, operator. Thank you all for joining us, and welcome to our second quarter 2021 conference call and webcast. Presenting with me today is Jason LeBlanc, our Chief Financial Officer, Yoann Bouchard, Chief Operating Officer, and Henry Marsden, Senior VP Exploration, will be available to answer questions. We'll start, as always, with health and safety. Our total recordable injury rate was 0.58 for the first six months of 2021. Earlier this year, we introduced our climate action strategy. Continue to advance the strategy during the quarter with work ongoing to determine baselines and gather data to develop abatement scenarios. The strategy is one pillar of our approach to ESG. Health and safety, environmental management, governance, and community engagement are all deeply rooted within our organization. We're proud to have been named one of Canada's Best 50 Canadian Corporate Citizens by Corporate Nights. Yamana ranked 31st overall and was the top-ranked Canadian mining company. The Best 50 rankings are based on a series of criteria, including eight environmental metrics, five social metrics, six government metrics, and three economic factors. To learn more about our ESG performance, I invite you to look at our latest material issue report and global reporting initiative report. Both are available on our website. Turning now to our Q2 operational highlights. We had a strong production with 217,402 ounces of gold led by standout performance at Jacobina, Canadian Malartic, El Pinon, and Minera Florida. Jacobina and Canadian Malartic, I'm pleased to note, both reach all-time quarterly heights. At Cerro Moro, production increased compared to the second quarter of last year. Both, but as we indicated previously, were expecting the mine to see much stronger results in the second half of this year. Produced 1.63 million ounces of silver during the quarter. Geo production was 241, 341 ounces. Quarterly cash costs were 720 per geo, and all in sustaining costs were 1,081 per geo, in line with plan. Our strong cash flow generation and increased cash balances continue to position us well to return cash to shareholders in the form of higher dividends. As reported yesterday, we are increasing our annual dividend to 12 cents per share, up nearly 15% from the previous dividend, and a 500% increase compared to Q2 2019. We also announced a normal course issuer bid that allows for the purchase of up to 5% of the company's issued and outstanding common shares over the next 12 months. First half production and costs were in line with our plan, set out at the beginning of the year. As with prior years, we expect Q4 to be the strongest quarter. I would like to remind everyone that we guided production to be a 57-53 split between the first half and the second half, and this is exactly what we have achieved in the first half. Taking a closer look at our operations, as mentioned, Jacobina posted record quarterly production of 47,503 ounces of gold. As you may have seen in our release yesterday updating progress on the phase expansion of Jacobina, average throughput for the quarter was 7,200 tons per day, up 5% over the prior quarter, with throughput averaging 7,500 tons per day for the entire month of May. I'll talk more about the phase expansion in a moment. At El Pinyon, GEO production for the quarter was 52,607 ounces, including 39,492 ounces of gold and 891,255 ounces of silver. We continue to expect planned production in Q3 and Q4, with the second half production to account for approximately 57% of the operation annual GEO production. The Canadian Monarchic had a record quarter. producing 92,106 ounces of gold, exceeding planned due to higher grades and recoveries from ore found deeper in the Malartic Pit. The operation remained on track to complete topographic drilling and blasting at the Barnet by the end of Q3 of 2021. Minera Florida was a standout performer during the quarter, production of 23,818 ounces of gold was above plan and higher than the same period in the prior year. NIR development continues to advance well ahead of plan, and exploration results continue to demonstrate extension of identified areas of mineralization and new discoveries. Production at Cerro Moro was 25,313 geo compared to 15,451 geo in the prior year period. This includes 14,488 ounces of gold, and silver production was at 736,820 ounces in the latest quarter. Challenging water condition limited travel and impacted shift change. However, the company took the opportunity during this time to fast-track certain health, safety, and other site improvements originally planned for the second half of the year, which will benefit future quarters. The transition to more male feed coming from the underground ore at higher grade than the open pit ore will continue through the second half of 2021. We have a number of compelling growth opportunities in our portfolio, and that we're very excited about. One of these is the phase expansion at Jacobina. We've made significant progress on phase two expansion to increase throughput to 8,500 tons per day and raise production to 230,000 ounces per year. The Jacobina plans to continue to exceed expectations. As mentioned, our success underscores the simplified approach that we are now taking to complete phase two. This includes the processing plan and tailing system, as well as operational improvement that de-risk the project, greatly reduce capex, and eliminate the needs to install an additional ball mill. While capital costs are expected to be only a fraction of the original estimated amount, not exceeding 15 to 20 million, the key takeaway in yesterday's update is the greater certainty and reduced risk as we now require incremental optimization and operational improvements to achieve the phase two throughput. Subject to the successful completion of required permit modification, we expect Jacobina to begin producing at the new 8,500 tons per day in the second half of 2023. As we advance Phase II, engineering for Phase III expansion to 10,000 tons per day will advance in parallel, with the planned modification originally planned for Phase II now considered adequate for the Phase III. A feasibility study for the Phase III is scheduled to be completed in 2023, and project commissioning is still on track for 2027. In addition to the Phase II update, we also disclosed strong exploration results at Jacobina yesterday. The results included exceptional drilling from Canavera Centrals and Morro de Vento, as well as the discovery of a new zone at Joe Bellosul, with 536,000 ounces of mineral resources. The results support the phase expansion and demonstrate Jacobina's exceptional long-term growth potential and ability to further extend strategic mine life. Turning now to Wazamak, our only-owned gold project in Quebec's prolific Abitibi-Témiscamingue region. We are excited to be growing our presence in Quebec, which is also home to our Canadian Malarté Corporation. Wazamak is a great project, and since acquiring it early this year, we have made it even better We've carried out several studies that have expanded reserve and average annual production while increasing throughput and plant nameplate capacity. As a result, we've made a decision to advance the project to construction. We expect to receive all permits and authorization by the third quarter of 2024. We have identified opportunities to improve ramp-up and decrease the processing plant construction period. Development will be fully funded from available cash and cash flows. Once development is completed, production will ramp up quickly and will achieve full production of approximately 200,000 ounces per year in year two and sustain that level for at least the next four years with costs well below the company's average. Wasamac has a reserve of 1.91 million ounces, along with indicated resources of 326,000 ounces and inferred resources of 258,000 ounces, with excellent additional exploration potential. We believe Wazamak will be a very long mine life of 15 years or more. Assuming this strategic mine life, NPV will be in the range of 850 to 900 million at 1850 gold price. Just 100 kilometers down the road from Wazamak is our Canadian Malartic Operation where we're advancing the Odyssey underground project with our partners. This is another outstanding project that will extend Canadian Malartic's mine life through at least 2039. The second quarter, we've completed overburden excavation and grouting to prepare for the construction of the production shaft and head frame. We've also made progress on the underground ramp. Development is ahead of schedule with approximately 764 linear meters completed this year, and 1,587 linear meters completed since the start. The exploration ramp is expected to take about two years to complete, with the first drilling platform established in early July. We have also completed construction of the shaft collar, and engineering is progressing on the head frame, hoist room, pace plant, power line, substation, the workshop, and the warehouse. Construction of the headframe and oyster room is slated to begin in the third quarter of 2021. And with that, I will turn it over to Jason.

Thank you, Daniel, and good morning, everyone. Turning now to our financial performance. Adjusted net earnings for the second quarter were $70.7 million, or $0.07 per share. Combined cash and cash equivalents at quarter end totaled $702 million, an increase of approximately 8% over December 31st year-end. This includes about $223 million that has been made available for the MARA project. Cash balances, along with further liquidity and cash flows, are more than sufficient to fully manage the company's business and capital allocation objectives, which includes further returns of capital to shareholders. We continue to generate robust cash flows with cash flows from operating activities increasing to $153.5 million in Q2 versus $129.4 million in the same period last year. Cash flows from operating activities before net change in working capital were $167.8 million, and free cash flow before dividends and debt repayments increased 34% year-over-year to $51.2 million. We expect cash flow to improve in the second half of the year, with Q4 expected to deliver the strongest performance in line with the production and costs. For Q3 and Q4, capital spending will be a little higher than the first half of the year as expected. For sustaining capital, we'll average about $50 million of spend per quarter. For expansionary CapEx, the average will be about $40 million per quarter, with about half that attributed to Odyssey. And for exploration, we'll spend between $25 and $30 million, with a 70-30 split between capital and OpEx. We continue to see a strong performance across our portfolio with production and cost tracking to plan. Our first half results are well aligned to our 2021 guidance released at the start of the year, which called for 53% of production to be weighted to the second half of the year. Our costs are also tracking in line for where they thought they would be at the end of Q2, and prospectively with minimal impact from inflationary pressures for the balance of the year. As noted, we expect stronger production and lower costs in the second half. Q4 is expected to be our strongest quarter, with the highest quarterly production and lowest quarterly costs, continuing a trend from previous years. And with that, I'll turn back over to Daniel.