Why Yamana Gold measures reserves at $950 an ounce

Yamana held to its full year production targets which it cut in July to between 1.32 million and 1.37 million gold equivalent ounces from a previous forecast of 1.44 million ounces as it ramps up production at two new mines.

The Toronto-based company said all-in sustaining cash costs at its 8 operating mines in Brazil, Argentina and Mexico on a co-product basis were $888 per gold equivalent ounce, falling from above $1,000 at the start of the year.

$8 billion market cap Yamana uses conservative metrics to calculate gold reserves and resources and cut-off grades at its 20 properties, something that prompted a question from analyst Andrew Quail of Goldman Sachs during Wednesday's conference call.

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