Yamana Gold Incorporated, a class act in the gold sector, have just announced that their Total production for Q2 2008 was 260,000 gold equivalent ounces comprised of 205,000 ounces of gold and 2.8 million ounces of silver, representing a 9.5% increase quarter over quarter.

Referring to the companies strategic outlook Yamana had this to say:

“Yamana has previously guided that its production range is expected to be 1.95 to 2.5 million GEO in 2012. Based on existing resources, sustainable production of 1.95 million GEO is supported for and from 2012. Assuming all planned projects are developed as planned and on schedule, the maximum production is expected to increase to the higher end of the range. Based on existing resources and proposed increases at projects now being evaluated, the Company has formed a strategic objective of 2.2 million gold equivalent ounces in 2012. As the Company matures its projects, increases its resources and continues with feasibility work, the Company will upgrade its strategic plan into a more formalized mine plan for each project under evaluation.”

Cash costs after by-product credits were reported as being negative US$81 per gold equivalent ounces for the second quarter of 2008. This is largely due to the company’s copper production for the quarter, which came in at around 44.8 million pounds.

For disclosure purposes we do hold Yamana Gold in our portfolio as part of our core position and we also trade it from time to time in our trading account.

Yamana Gold Incorporated trades as AUY on the NYSE and as YRI in Toronto.

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