Company Profile

Yamana is a Canadian gold producer with significant gold production, gold development properties, exploration properties, and land positions throughout North and South America. Yamana is producing gold at intermediate company production levels in addition to significant copper production. Company management plans to continue to build on this base through growth in resources, production, cash flow and earnings.

2006 Achievements

• Cash balance of $69.7 million as at December 31, 2006 and cash flow from operations of $38.5 million (before changes in non-cash working capital items) for the year.
• Total gold production of 314,000 ounces for 2006 with 283,000 ounces as commercial production.
• Achieved average cash costs of $326 per ounce of commercial production from São Francisco, Jacobina, San Andrés, Fazenda Nova and Fazenda Brasileiro.
• Commenced commercial production at São Francisco and began production at Chapada which began commercial production on February 11, 2007.
• Completed an equity financing for the issue of 17.4 million common shares for gross proceeds of C$200.1 million.
• Repaid outstanding senior secured note facility together with accrued interest thereby eliminating outstanding debt, four years earlier than maturity.
• Entered into $200 million revolving line of credit with two major global lenders.
• Declared first dividend to shareholders, effective September 29, 2006, of $0.01 per share.
• Moved stock listing in the United States from the American Stock Exchange to the New York Stock Exchange, improving visibility and stimulating U.S. demand for stock.
• Finalized smelter off-take agreements for the sale of copper concentrate from the Chapada mine which achieved commercial production status in February 2007.
• Completed the acquisition of RNC Gold Inc. for $53 million, then divested La Libertad Mine and Cerro Querra, achieving a net cost of $28 million for the San Andrés operating mine in Honduras.
• Acquired Desert Sun Mining Corp. for $632 million which added the Jacobina operating mine in addition to 155 kilometres of exploration concessions along the strike length of the Bahia Gold Belt.
• Developed expansion plan for the Jacobina Mine which facilitates increasing production levels from under 100,000 ounces per year to over 200,000 ounces by 2009.
• Acquired Viceroy Exploration Ltd. for $549 million adding Gualcamayo as an advanced-stage feasibility project and expanding Yamana's operations into Argentina.
• Share appreciation of 99% from C$7.69 at close on December 30, 2005 to C$15.31 at close on December 29, 2006, maintaining Yamana's position as the leading share price performer among its peers on the TSX.

Near-Term Goals

• Focus on organic growth 
• Development of properties 
• Exploration opportunities 
• Results driven management style 
• Develop strategic targets with concurrence of groups 
• Deliver results according to expectations of strategic plan 
• Entrepreneurial mining company approach in the context of a larger company 
• Targeted Americas focus 
• Geographical friendliness to industry and mining 
• Developed infrastructure with manageable and modest capital costs 
• Sustainability, community, environmental, health and safety priorities