[Ferro-Alloys.Com]Canadian miner Yamana Gold Inc reported a 6% fall in Q3 adjusted profit as lower metal prices and higher production costs outweighed strong gold sales volumes. The mid tier gold miner which is in the process of building 3 new mines, maintained its production outlook for the year and said its development projects are on time and on budget.

Mr Peter Marrone CEO of Yamana Gold said that costs are trending downward as the company ramps up output at new mines and as cost inflation in the mining sector eases. The truth is that there is a lessening of the pressures on the metal sector or perhaps extractive industries generally. But costs sometimes can be sticky so it takes a bit of time before that starts to reflect itself in better operating costs and better capital costs.

Yamana expects to finish construction at its Ernesto and Pau a Pique and C1 Santa Cruz mines in Brazil by the end of the year with commercial production by mid 2013. A third Brazilian development Pilar is set to start up in mid 2013.

That will help ramp up output from 1.2 million to 1.3 million ounces this year to 1.5 million to 1.7 million ounces in 2013.

• [Editor:editor]