corporate summary...jul 29, 2020 · corporate summary july 2020. cautionary note regarding...

NYSE: AUY | TSX: YRI

CORPORATE SUMMARY

July 2020

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This presentation contains or incorporates by reference “forward-looking statements” and “forward-looking information” under applicableCanadian securities legislation within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to leverage ratios, informationwith respect to the Company’s strategy, plans, guidance, or future financial or operating performance, future dividend payments and strategies, continued advancements at Jacobina (including the potentialPhase 2 expansion and expected increases to production), Canadian Malartic, Cerro Moro, El Peñón, Minera Florida and Agua Rica, expected production and costs, the global economic impact of COVID-19 and itseffect on market conditions, the outlook for gold prices and upside potential, future share price performance, plans and objectives for future exploration and the potential for future additions to mineralresources and mineral reserves. Forward-looking statements are characterized by words such as “plan,” “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and othersimilar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable atthe date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially fromthose projected in the forward-looking statements. These factors include the impact of general domestic and foreign business, economic and political conditions, global liquidity and credit availability on thetiming of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilianreal, the Chilean peso, the Argentine peso, and the Canadian dollar versus the United States dollar), interest rates, possible variations in ore grade or recovery rates, changes in the Company’s hedgingprogram, changes in accounting policies, changes in Mineral Reserves (as defined herein) and Mineral Resources (as defined herein), and risks related to acquisitions and/or dispositions, changes in projectparameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks associated with infectious diseases, including COVID-19, nature andclimatic condition risks, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, potential impairment charges, higher prices for fuel, steel, power,labour and other consumables contributing to higher costs and general risks of the mining industry, including but not limited to, failure of plant, equipment or processes to operate as anticipated, unexpectedchanges in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success ofexploration activities, permitting timelines, environmental and government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisorsand consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage, timing and possible outcome of pending andoutstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, vulnerability of information systems and risks related to global financial conditions, as well as those riskfactors discussed or referred to herein and in the Company's Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and theCompany’s Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions,events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Therecan be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakesno obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not toplace undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial andoperational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives and may not be appropriate for other purposes.

Non-GAAP Measures:

The Company has included certain non-GAAP financial measures and additional line items or subtotals, which the Company believes that together with measures determined in accordance with IFRS, provide

investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may

not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of

performance prepared in accordance with IFRS. The non-GAAP financial measures included in this presentation include: Free cash flow, net free cash flow, net debt, cash costs per gold equivalent ounce sold,

all-in sustaining costs per gold equivalent ounce sold. Please refer to section 11 of the Company’s current second quarter Management’s Discussion and Analysis, and associated press release which is filed on

SEDAR and includes a detailed discussion of the usefulness of the non-GAAP measures. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and

certain investors and analysts use this information to evaluate the Company’s performance. In particular, management uses these measures for internal valuation for the period and to assist with planning and

forecasting of future operations.

Qualified Persons

Scientific and technical information contained in this presentation has been reviewed and approved by Sébastien Bernier (Senior Director, Geology and Mineral Resources). Sébastien Bernier P.Geo is an

employee of Yamana Gold Inc. and a "Qualified Person" as defined by Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral ProjectsData verification related to

certain scientific and technical information disclosed herein in connection with Yamana’s material properties can be found in the Company’s technical reports entitled “Technical Report on the El Peñón Mine,

Antofagasta Region (II), Chile” dated March 2, 2018, “NI 43-101 Technical Report, Jacobina Gold Mine, Bahia State, Brazil” dated December 31, 2019, and “Technical Report on the Mineral Resource and Mineral

Reserve Estimates for the Canadian Malartic Property” dated August 13, 2014 available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website. The information presented

herein was approved by management of Yamana Gold on July 23, 2020.

All amounts are expressed in United States dollars unless otherwise indicated.

Stifel had no involvement in the preparation of this presentation and, accordingly, makes no representation or warranty as to the accuracy or completeness of any of the information or data included therein

and expressly disclaims any and all liability relating to or resulting from use of this presentation.

CAUTIONARY NOTEREGARDING FORWARD-LOOKING STATEMENTS

2

3

THE UNCERTAIN GLOBAL ECONOMIC OUTLOOKIS SUPPORTIVE OF HIGHER GOLD PRICES(1)

1. See Cautionary Note Regarding Forward-Looking Information

Geopolitical

Uncertainty

The Uncertain Global Economic Outlook is Supportive of Higher Gold Prices

Socioeconomic

Uncertainty

Global Conflicts

Along Trade, Technology

and Currency

4


Unprecedented Fiscal

and Monetary Stimulus

Inflation RiskGovernment Debt

to GDP


2. Source: Bloomberg Market Data from July 25, 2020

3. Source: IMF, National authorities; and IMF staff estimates as of July 15, 2020. G20 aggregates are calculated using PPP adjusted GDP weights

4. Source : IMF, National authorities; and IMF staff estimates as of April 8, 2020

252%

156%

131%

115%

113%

110%

98%

96%

77%

74%

69%

65%

61%

96%

2020 Projected Debt as a % of GDP(4)

The Fed’s balance sheet has

expanded to over $7 trillion(2) and

other central bank balance sheets

are continuing to increase

Fiscal support by G20 countries in

response to the pandemic is now

$11 trillion(3), greater than during

the entire global financial crisis

Global growth will suffer from

the COVID-19 impact while debt

continues to increase

Encouraging higher inflation to

support the sustainability of

unprecedented high debt levels



Independent of all else and in the short to

medium term, the socioeconomic challenges that

follow from the pandemic are expected to result

in real interest rates remaining low to negative

Overall, this is highly supportive for gold

price

AN OVERWEIGHT ALLOCATION TO GOLD EQUITIES IS PRUDENT(1)


The economic backdrop is not meant to provide a pessimistic outlook,

but rather to underscore the importance of gold exposure for one’s portfolio

Valuation remains attractive relative

to the sector’s historic levels

Companies can pay dividends and have the ability

to increase dividends with growing free cash flow

Companies can create value for investors

by executing on catalysts

As an asset class, gold equities are now set to outperform

gold in either a rising or a flat gold price environment

How to best gain exposure: The investment case for gold equities

Valuation

Providing Returns

to Shareholders

Catalysts

Multiplier Effect

DOMINANT GOLD PRODUCERPORTFOLIO FOR THE CURRENT AND NEXT CYCLE(1)

s


2. Based on 2021 production guidance and estimated run rate for revenue contribution by metal and by country.

High Quality Diversified Portfolio with

Long Life Assets

Track Record of Consistency

Operating in Mining Friendly Jurisdictions

Strong Balance Sheet and

Increasing Free Cash Flows

Increased Dividend 4 Times in the Last

Year, Cumulatively Increasing Over 250%

PRODUCTION PLATFORM OF 1M GOLD EQUIVALENT OUNCES(1,2)

AT LOW ALL-IN SUSTAINING COSTS

87%

13%

Gold Silver

Revenue

by Metal(1,2)

WITH COMMITMENT TO HIGH QUALITY ESG MANAGEMENT

9

PRECIOUS METALS PORTFOLIOFIVE PRODUCING, LOW COST MINES(1)

Jacobina | BrazilComplex of underground mines

Production Platform(2)

Phase 1: 175koz

Phase 2: 230koz

Cerro Moro | ArgentinaOpen pit and underground mines

Production Platform(2) 200k GEO

Canadian Malartic | Canada (50%)Open pit mine

Production Platform(2) 330koz

El Peñón | ChileUnderground mine

Production Platform(2) 200k GEO

Minera Florida| ChileUnderground mine

Production Platform(2) 80 – 90koz


2. Production Platform is estimated production following 2020, for 2020 guidance please see the press release ‘Yamana Gold Provides Revised 2020 Production Outlook’ dated April 30, 2020.

PRECIOUS METALS PORTFOLIO

COMPANY OVERVIEW

1. See Cautionary Note Regarding Forward Looking Information.

2. A non-GAAP measure, additional line item or subtotal. A reconciliation of the IFRS measure to the non-GAAP measure can be found at www.yamana.com/Q22020.

3. Gold equivalent ounces (“GEO”) include gold plus silver at a ratio 98:85 for 2020 and 86.10:1 for 2021 and 2022, respectively.

4. Based on the production run rate for 2020 original guidance and 2019 year end mineral reserves and mineral resources.

5. As of December 31, 2019, further details including tonnes, grade and assumptions are presented in the full mineral reserves and mineral resources estimates commencing on slide 42.

6. Mineral resources are exclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

2021E 2022E2020E

890k GEO1.0M GEO 1.0M GEO

Gold 873k oz

Silver 11.0M oz

Gold 786k oz

Silver 10.25M oz

Gold 885k oz

Silver 10.0M oz

Production Guidance(1,3)

(+/-) 3% (+/-) 2% (+/-) 3%

510

566

1014

207

20Canadian Malartic (OP)

Canadian Malartic (including UG)

Mine Life Index(1,4,5,6)

Strategic Life Index considers current mine plans and may include both mineral reserves and mineral resources. It is

often more cost effective and technically efficient to progressively extend mine life when the mine development is

advancing particularly for underground mines.

2020 guidance was revised following the impact from temporary

government restrictions related to COVID-19 but currently tracking ahead

AISC(1,2) H2 2020

$1,020 to $1,060/GEO

Mineral Reserve Life Index in Years

Strategic Life Index in Years

10

Jacobina

El Peñón

Cerro Moro

Minera Florida

and evaluating an increase to the 2020

revised guidance

ESG PERFORMANCE

COMPANY OVERVIEW

1. Material issues report does not include the Canadian Malartic mine which as a separate company, to which we maintain a 50% ownership in, Canadian Malartic prepares a standalone annual sustainability report,

available at www.canadianmalartic.com.

2019 Material Issues Report(1)

Corporate ESG performance ranked in top 10% of peers by ISS (2019)

Included in Jantzi Social Index for 10 consecutive yearsStrong ESG Performance

Environment• All sites have Climate Change, Water

and Biodiversity Risk Assessments and

action plans

• 74% of water use reused or recycled

• 24% decrease in GHG Emissions – GHG

intensity is below peers

Social• Social License to Operate Index

indicates solid trust and acceptance

from our host communities

• 99% host country employment

• 91% host country procurement

• 43,000 beneficiaries of social programs

Governance• Board oversight of sustainability

topics

• Compensation linked to sustainability

performance

Health & Safety

• 24% decrease in TRIR over 3 years

• 41% decrease in LTIFR in 2018

• 28% below top performing peers in

TRIR

• Focus on leading indicators

Tailings• Direct reporting from tailings director

to CEO and Executive Chairman

• Regular reports to Board of Directors

• 2 annual dam safety external audits

• Regular internal safety audits

11

The company is well managed with a proper governance model in place to

be able to manage through ESG requirements and COVID-19

DELIVERING FINANCIAL PERFORMANCEPOSITIVE FREE CASH FLOW(3) AND EBITDA(2) GROWTH

12

1. Sensitivity is estimated from H2 2020 to H1 2021 and assuming a change from $1,750/oz gold price.2. A non GAAP measure, additional line item or subtotal, defined as revenue less cost of sales, G&A excluding stock based compensation, exploration expense.3. A non-GAAP measure, additional line item or subtotal. A reconciliation of the IFRS measure to the non-GAAP measure can be found at www.yamana.com/Q22020.4. See Cautionary Note Regarding Forward-Looking Information.

H1 2020 Full year sensitivity(1) from a

$100/oz change in gold

Average

Gold Price$1,647/oz

EBITDA(2)$343.7 M $100 M

Cash flow from operating

activitiesBefore change in net working capital

$282.4 M $70 M

Net Free Cash Flow(3)

$151.2 M $70 M

Strong financial performance despite temporary impacts from COVID-19 in part of Q1 and most of Q2

H2 production now expected to be higher than 54% of the annual weighting

Q4 expected to be exceptionally strong and the highest production,

lowest cost quarter(4)

13

FINANCIAL METRICS PER GEO IMPROVED Q2 OVER Q1DESPITE TEMPORARY SUSPENSIONS

Gross Margin(3) per GEOExcluding DDA

1. A non GAAP measure, additional line item or subtotal. A reconciliation of the IFRS measure to the non GAAP measure can be found at www.yamana.com/Q22020.

2. AISC Margin per GEO is defined as revenue per GEO less AISC per GEO.

3. Excludes costs associated with COVID-19 totaling $3.5M in Q1 2020 and $19.2M for Q2 2020.

Per GEO Sold Metrics Improved Q2 over Q1

Showing A Strong Set Up For H2 Financial Results

$909/oz

$1,002/oz

$500/oz

$600/oz

$700/oz

$800/oz

$900/oz

$1,000/oz

$1,100/oz

Q1 2020 Q2 2020

Free Cash Flow(1,3) per GEOBefore Dividends and Debt Repayment

AISC(1,2,3) Margin per GEO

$175/oz

$217/oz

$0/oz

$50/oz

$100/oz

$150/oz

$200/oz

$250/oz

Q1 2020 Q2 2020

$557/oz

$588/oz

$500/oz

$525/oz

$550/oz

$575/oz

$600/oz

Q1 2020 Q2 2020

CAPITAL ALLOCATIONFINANCIAL FLEXIBILITY(1)


Balance

Sheet

Management

Capital

Allocation

Focus

Increasing

Sustainable

Dividends

Low Capital

Organic

Growth

15

BALANCE SHEET MANAGEMENTFINANCIAL FLEXIBILITY

Low Leverage

Our target leverage ratio is 1.0x or better

Q2 2020 net debt(2)

decreased by a further $101M to $768M

1. See Cautionary Note Regarding Forward-Looking Information, assumes gold price of $1,750/oz and silver price of $18/oz.

2. A non-GAAP measure, additional line item or subtotal. A reconciliation of the IFRS measure to the non-GAAP measure can be found at www.yamana.com/Q22020.

Q2 cash and equivalents totaled $324.8M

$650M of available credit for $974.8M total liquidityStrong Cash Position

Investment Grade

Since our first public debt offering in 2014, we have maintained investment grade with Moody’s and

Fitch

Manageable Debt Maturities

No debt repayment due until 2022

After repaying debt due in 2022, year-end pro forma leverage ratio would be

close to 0x(1)

OPPORTUNITIES TO CREATE INCREASING VALUE FROM EXISTING ASSET PORTFOLIO(1)

161. See Cautionary Note Regarding Forward-Looking Information.

Jacobina phased expansion project

Canadian Malartic underground project

El Peñón existing processing capacity

Cerro Moro and Minera Florida further exploration success

Mine life enhancement

Generative exploration program

Creating value by advancing projects through

exploration, studies, optimizations, permitting

and community engagement

Developing assets through strategic

arrangements or monetizations such as the

recently accomplished sale of the royalty

portfolio, Equinox shares, and the JV for its

Suyai Project in Argentina

OPPORTUNITIES IN EXISTING ASSET PORTFOLIO

Value Creating

Opportunities

Additional Cash and Value Generation

From Strategic Opportunities

OR

Considering strategic alternatives

to realize returns

Expansionary capital is modest and future growth is expected to be fully funded by cash

on hand from free cash flows and monetization opportunities

VALUE CREATINGOPPORTUNITIES

17

Canadian Malartic Underground Large underground opportunity with over 10M ounces of mineral

resources (100% basis) to date(2)

Potential to support a multi-hundred thousand ounce annual

production platform for decades(1)

Jacobina Phased Expansion1,3

Phase 2 expansion would increase annual production from 175,000

ounces to 230,000 ounces with low capital requirements estimated

at $57M (BRL:USD of 4.0:1)

Further exploration potential which could increase mine life beyond

the current phase 2 base case of 14.5 years

El Peñón Excess Mill Capacity1,3

Excess plant capacity provides flexibility and potential to increase

annual production

Exploration discoveries support the Strategic Life of Mine of at least

10 years

Minera Florida Exploration Continuation of the recent exploration successes with the objective

to extend mine life and increase cash flows

Cerro Moro Exploration Continuation of the recent exploration successes with the objective

to extend mine life and increase cash flows

1. See Cautionary Note Regarding Forward-Looking Information and Company press releases dated September 9, 2019 regarding Canadian Malartic.

2. As at December 31, 2019. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Further details including tonnes and grade are presented in slides 42 – 45.

3. See Company press release dated May 19, 2020 regarding Jacobina and El Peñón exploration results.

Growth opportunities have the potential for a multiplying effect on the share price by both increasing value and increasing multiples

Our

objective

in the next

3 years is to

increase at least

one resource base

to 1.5M ounces upon

which to build a mine

plan for the next new

mine in the portfolio(1)

Exploration success supports dividend/cash-flow sustainability

18

FUTURE CASH GENERATION FROM STRATEGIC OPPORTUNITIES(1)

Agua Rica

Large low capital copper, gold project in Argentina with 28 year

mine life and annual production of 533M lbs of copper equivalent

Progressing completion of the integration to develop and operate

Agua Rica using the existing infrastructure in place at the

Alumbrera mine, which significantly de-risks the project


Strategic assets offer optionality to create value via development

or monetizations further strengthening financial position

Development Projects

Suyai high grade development ready project in Argentina with

annual gold production of 250,000 ounces

Monument Bay in Canada advancing the project with

internal technical and economic assessments considering

an underground mine

Ownership in a portfolio of exploration and future development projects

Strategic Investments

Equinox Gold (EQX-TSX) ownership of 7.2M shares

Nomad Royalty (NSR-TSX) 66.5M shares plus $10M convertible to

shares at $0.90

We have adopted a program of investing in junior companies with interesting prospects to ultimately

deliver value

DIVIDEND PHILOSOPHYCONTINUED SUSTAINABILITY


$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

Q3 2

006

Q1 2

007

Q3 2

007

Q1 2

008

Q3 2

008

Q1 2

009

Q3 2

009

Q1 2

010

Q3 2

010

Q1 2

011

Q3 2

011

Q1 2

012

Q3 2

012

Q1 2

013

Q3 2

013

Q1 2

014

Q3 2

014

Q1 2

015

Q3 2

015

Q1 2

016

Q3 2

016

Q1 2

017

Q3 2

017

Q1 2

018

Q3 2

018

Q1 2

019

Q3 2

019

Q1 2

020

Q3 2

020

Annualized Dividend Per Share

250% increase in

the dividend over the past year

$940 M paid since dividends were first introduced more than 13

years ago

• Track record of delivering cash returns to shareholders

• Maintained dividend payments throughout the construction of Cerro Moro and period of lower gold prices

• To ensure continued sustainability, Yamana has established a cash reserve fund to support current dividend rate for at least three years

• Targeting a dividend payout range of $50-$100 per GEO produced

• Currently paying over $70/GEO: potential for further increases

20

DELIVERING RETURNSOUTPERFORMANCE(1)

Share Performance

Dividends are important but one must consider more than just dividend yield to share

price

Our share price has outperformed, increasing 171%

since 2019

If one had invested in the first financing in 2003, the return

would be over 900%


Risk Adjusted

We offer an attractive low risk profile operating in high quality mining jurisdictions

in the Americas

Diversified by metal and by number of assets

Dividend Sustainability

Consistently paid a dividend since late 2006

Sustainability of dividend is as important as yield and we focus on that approach with our dividend reserve fund

which can support our dividend for a minimum of 3

years

21

INVESTMENT PROPOSITIONINFLECTION POINT TO GARNERING HIGHER MULTIPLES

Price to NAV


2. Sourced from FactSet Market data July 23, 2020. Peer group includes Agnico Eagle, Barrick Gold, Kirkland Lake Gold, Newmont

Trading at a Discount to Peers(1,2)

Yamana 1 Year

Ago

Yamana

Peer Group

Average

Highest Multiple

Peers

0.0x

1.0x

2.0x

Price to Cash Flow

Yamana

Rerating commenced

and is accelerating

We believe consensus is undervaluing a number of assets in our

portfolio, which results in the appearance of a higher P/NAV multiple

Yamana 1 Year

Ago

Yamana

Peer Group

Average

Highest Multiple

Peers

0x

2x

4x

6x

8x

10x

12x

14x

16x

22

INVESTMENT PROPOSITIONINFLECTION POINT TO GARNERING HIGHER MULTIPLES

Price to Revenue


2. Sourced from FactSet Market data July 23, 2020. Peer group includes Agnico Eagle, Barrick Gold, Kirkland Lake Gold, Newmont

Trading at a Discount to Peers(1,2)

Yamana 1 Year

Ago

Yamana

Peer Group

Average

Highest Multiple

Peers

0x

1x

2x

3x

4x

5x

6x

7x

EV to EBITDA

Rerating commenced

and is accelerating

Yamana 1 Year

Ago

Yamana

Peer Group

Average

Highest Multiple

Peers

0x

2x

4x

6x

8x

10x

12x

14x

16x

Rerating commenced

and is accelerating

23

Focus on investing in a gold company with assets in mining tolerant

jurisdictions, a commitment to high quality ESG management,a strong balance sheetand with capital allocation strategiesthat continue to pay

increasing dividends

APPENDIXTABLE OF CONTENTS

24

Slide

Responsible Gold Mining Principles 25

Strategic Opportunities 26 – 29

Mine by Mine Overview 30 – 34

Generative Exploration Program 35

2020 Outlook 36 – 38

Second Quarter Review 39 – 41

Mineral Reserve and Mineral Resource Estimates 42 – 45

RESPONSIBLE GOLD MINING PRINCIPLESADVANCING TOWARDS FULL COMPLIANCE

25

An over-arching framework that sets out clear expectations as to what constitutes responsible gold mining.

Designed to provide confidence to investors and supply chain participants that gold has been produced responsibly.

Implementing companies will be required to publicly disclose conformance and obtain external assurance on this.

Reflects the commitment of the world’s leading gold mining companies to responsible mining.

1. See Cautionary Note Regarding Forward-Looking Information and Company press releases dated September 9, 2019 regarding Canadian Malartic.

2. As at December 31, 2019. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Further details including tonnes and grade are presented in slides 42 - 45.

STRATEGIC OPPORTUNITIESCANADIAN MALARTIC

CANADIAN MALARTIC UNDERGROUND (50% Owned)

Strategic Upside(1)

Large underground opportunity with over 10M ounces of mineral resources (100% basis) to date(2)

Potential to support a multi-hundred thousand ounce annual production platform for decades(1)

26



STRATEGIC OPPORTUNITIESJACOBINA

27

JACOBINA

Strategic Upside(1,2)

Phase 2 expansion would increase annual production from 175,000 ounces to 230,000 ounces with

low capital requirements estimated at $57M

Further exploration potential which could increase mine life beyond the current phase 2 base case

of 14.5 years

STRATEGIC OPPORTUNITIESEL PEÑÓN



EL PEÑÓN

Strategic Upside(1,2)

Exploration discoveries support the Strategic Life of Mine of at least 10 years

Excess plant capacity provides flexibility and potential to increase annual production

STRATEGIC OPPORTUNITIESCERRO MORO AND MINERA FLORIDA


MINERA FLORIDACERRO MORO

Strategic Upside(1)

Continuation of the recent exploration successes with the objective to

extend mine life and increase cash flows

CANADIAN MALARTICSIGNIFICANT PRODUCTION AND CASH FLOWS(6)

30

1. A non-GAAP measure, additional line item or subtotal. A reconciliation of the IFRS measure to the non-GAAP measure can be found at www.yamana.com/q22020.


3. Mineral resources are exclusive of mineral reserves.

4. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

5. GEO include gold plus silver at a ratio of 86.02:1 2019.


7. Included in fourth quarter 2019, year-ended December 31, 2019 production figures are 3,137 gold ounces and in the first quarter of 2020 2,974 of pre-commercial production, related to the Company's 50% interest in the Canadian Malartic mine's Barnat deposit. Pre-commercial production ounces are excluded from

sales figures, although the pre-commercial production ounces that were sold during their respective period of production had their corresponding revenues and cost of sales capitalized to mineral properties.

CANADIAN MALARTIC CANADA

50% Yamana Owned

50%

Basis

Tonnes

(000’s)

Grade

(g/t)

Contained Ounces

(000’s)

Total Proven and Probable Mineral Reserves(2)

Gold 66,904 1.11 2,389

Total Measured and Indicated Mineral Resources(2,3,4)

Gold 14,713 1.79 847

Inferred Mineral Resources(2,3,4)

Gold 66,180 2.30 4,890

50% Basis Q3 2019 Q4 2019 Q1 2020 Q2 2020 2019

Gold Production (oz)(7) 81,572 85,042 64,763 56,785 334,596

Cost of Sales per GEO

Sold ($/GEO)1,007 1,039 1,192 1,359 1,011

Cash Cost per GEO Sold

($/GEO)608 627 717 753 601

AISC per GEO Sold

($/GEO)822 828 948 986 782

Sustaining Capital ($M) 14.4 13.5 12.3 8.1 45.1

Exploration Capital

($M)0.1 0.1 2.4 0.3 1.0

Expansion Capital ($M) 10.1 9.8 5.2 4.1 36.5

Gold

Open Pit Mine

Potential For a Future Underground Mine

(1,5)

(1,5)

(5)

JACOBINALONGER TERM SUSTAINABLE PRODUCTION(6)

31







JACOBINA BRAZIL

100% Yamana Owned

Tonnes

(000’s)

Grade

(g/t)

Contained Ounces

(000’s)


Gold 34,176 2.27 2,493


Gold 42,470 2.26 3,090


Gold 18,528 2.36 1,406

Q3 2019 Q4 2019 Q1 2020 Q2 2020

Gold Production (oz) 40,157 41,774 43,938 45,646

Cost of Sales per GEO Sold

($/GEO)917 799 781 771


($/GEO)544 529 513 510

AISC per GEO Sold

($/GEO)807 827 760 666

Sustaining Capital ($M) 6.7 8.2 6.7 4.7

Exploration Capital ($M) 1.5 2.7 2.0 0.7

Expansion Capital ($M) 8.7 6.9 4.3 3.6

2019

159,499

947

593

845

24.5

6.5

30.7

Gold

Complex of Underground Mines

(1,5)

(1,5)

(5)

CERRO MORODELIVERING HIGH GRADE GOLD AND SILVER(6)

32







CERRO MORO ARGENTINA100% Yamana Owned

Tonnes (000’s) Grade (g/t) Contained Ounces (000’s)


Gold 1,530 10.75 529

Silver 1,530 619.2 30,461


Gold 1,252 4.40 177

Silver 1,252 343.0 13,809


Gold 2,175 3.91 273

Silver 2,175 222.2 15,542

Q3 2019 Q4 2019 Q1 2020 Q2 2020

Production

(oz)

Gold 26,120 26,568 18,743 8,175

Silver 1,388,220 1,584,904 1,374,941 730,571

Cost of Sales per GEO sold ($/GEO) 1,402 1,456 1,640 1,507

Cash Cost per GEO sold ($/GEO) 748 811 929 1,017

AISC per GEO sold ($/GEO) 1,084 1,228 1,333 1,450




2019

120,802

6,322,864

1,293

725

969

23.5

16.2

3.7

Gold-Silver

Open Pit and Underground

(1,5)

(1,5)

(5)

EL PEÑÓNDELIVERING QUALITY PRODUCTION(6)

33







EL PEÑÓN CHILE100% Yamana Owned

Tonnes (000’s) Grade (g/t)Contained Ounces

(000’s)


Gold 6,397 4.45 916

Silver 6,397 147.0 30,238


Gold 7,276 2.81 658

Silver 7,276 93.7 21,911


Gold 18,276 1.25 735

Silver 18,276 43.9 25,786

Q3 2019 Q4 2019 Q1 2020 Q2 2020 2019

Production

(oz)

Gold 42,713 48,131 56,841 35,760 159,515

Silver 1,095,935 1,382,963 1,355,910 1,277,238 4,317,292

Cost of Sales per GEO sold ($/GEO) 1,134 1,062 944 998 1,209

Cash Cost per GEO sold ($/GEO) 690 562 606 667 726

AISC per GEO sold ($/GEO) 977 775 829 942 1,003

Sustaining Capital ($M) 8.5 7.6 7.6 6.6 30.8

Exploration Capital ($M) 5.7 2.8 2.6 3.8 18.1

Expansion Capital ($M) 0.3 0.3 - - 0.8

(1,5)

(1,5)

(5)

Gold-Silver

Underground Mine

MINERA FLORIDATRANSITIONING TO HIGHER GRADE ZONES(6)

34







MINERA FLORIDA CHILE

100% Yamana Owned

Tonnes

(000’s)

Grade

(g/t)

Contained Ounces

(000’s)


Gold 4,709 2.98 450


Gold 5,852 4.93 928


Gold 4,365 5.32 747

Q3 2019 Q4 2019 Q1 2020 Q2 2020

Gold Production (oz) 17,590 20,080 22,563 17,775

Cost of Sales per GEO Sold

($/GEO)1,677 1,450 1,387 1,404


($/GEO)1,069 1,005 861 907

AISC per GEO Sold ($/GEO) 1,485 1,411 1,102 1,234




2019

73,617

1,423

945

1,346

13.1

9.5

11.7

Gold

Underground Mine

(1,5)

(1,5)

(6)

FURTHER OPTIONALITY GENERATIVE EXPLORATION PROGRAM(1)


Identified a number of opportunities where there is already mineralization

Our objective in the next 3 years is to bring at least one of these to a resource base of 1.5M ounces

upon which to build a mine plan for the next new mine in the portfolio

Self Generation of Opportunities is the Best Way to Deliver Value and Returns

2020 OUTLOOK(1)

UPDATED GEO(2) RATIO IMPACTS


2. GEO include gold plus silver at a ratio of 98.85 for the revised 2020 guidance.

Gold’s exceptional performance has significantly increased the GEO(2) ratios observed in

the market, vis-a-vis our initial guidance

We have updated the GEO(2) ratio in our updated guidance from 86.10 to 98.85 to better

reflect current market pricing

Consequently, this increase in our GEO(2) ratio used in guidance has an impact of

approximately 17,000 GEO(2) of production

GEO

(000’s

)

Canadian

Malartic

COVID-19

Impact

Original

Guidance

Revised GEO

Ratio

Cerro Moro

COVID-19

Impact

(2)

(2)

(2)

2020 OUTLOOKPRODUCTION(2)

371. The Gold Equivalent Ounce ratio assumes 86.10 for the original 2020 guidance, and 98.85 for the revised 2020 guidance.


(000's ounces) 2019 Actual 2020 Original Guidance 2020 Revised Guidance

Gold Production 848 857 786

Silver Production 10,640 11,500 10,250

GEO production(i) 972 990 890

Gold Silver GEO(1)

(000’s ounces)2019

Actual

2020

Original

Guidance

2020

Revised

Guidance

2019

Actual

2020

Original

Guidance

2020

Revised

Guidance

2019

Actual

2020

Original

Guidance

2020

Revised

Guidance

Canadian

Malartic(50%)335 330 275 — — — 335 330 275

Jacobina 159 162 168 — — — 159 162 168

Cerro Moro 121 117 96 6,323 7,500 6,250 195 204 160

El Peñón 160 162 162 4,317 4,000 4,000 210 209 202

Minera Florida 74 86 85 — — — 74 86 85

Guidance revised to account for temporary government restrictions related to COVID-19 that

impacted part of Q1 and most of Q2

(1)

(1)

2020 OUTLOOK(2)

COST INDICATIONS AND ADDITIONAL GUIDANCE

381. A non GAAP measure, additional line item or subtotal. A reconciliation of the IFRS measure to the non GAAP measure can be found at www.yamana.com/q22020.


3. The Gold Equivalent Ounce ratio assumes 98.85 for the revised 2020 guidance.

During the current year, costs have been impacted as follows:

GEO(2) Ratio The new guidance GEO(3) ratio is 15% higher resulting in total costs being divided over

less GEO(2) ounces, increasing the overall cost per unit reported. The expected impact on AISC(1) is

an increase of $20/GEO(3).

Foreign Exchange The weaker than guided foreign exchange rates have resulted in a cost tail-

wind. The expected impact foreign exchange on AISC(1) is a decrease of $35/GEO(3).

COVID-19 In association with COVID-19, costs are also expected to be impacted primarily by the

lower GEO levels and unit cost impacts from the re-guided production but also the demobilization,

ramp-ups, and the temporary workforce safety measures put in place.

Additional Guidance Items:

Capital will be scaled to the new guidance platform, and benefit from natural spending deferrals

for both sustaining and expansionary capital expenditures. The expected reduction in capital spend

for the year is between $15M and 20M.

Total DDA is re-guided at $470M for 2020, in association with the reduction in quantities sold. The

revised guidance compares to initial guidance of $500M, and prior year DDA of $471.7M.

FINANCIAL PERFORMANCESECOND QUARTER HIGHLIGHTS

391. A non GAAP measure, additional line item or subtotal. A reconciliation of the IFRS measure to the non GAAP measure can be found at www.yamana.com/Q22020.

2. Certain non-cash and other items that may not be reflective of current and ongoing operations were $69.5 million or $0.07 per share for Q2 2020.

(In millions except per share figures) Q2 2020 Q2 2019 Change

Revenue $303.4 $463.5 $(160.1)

Cost of Sales excluding DD&A $126.3 $244.1 $(117.8)

Gross margin excluding DD&A $177.1 $219.4 $(42.3)

DD&A $76.3 $122.4 $(46.1)

G&A expense $25.4 $16.8 $8.6

Net earnings - $14.1 $(14.1)

Net earnings per share - $0.01 $(0.01)

Adjusted earnings per share(1,2) $0.07 $0.02 $0.05

Sustaining capital $26.5 $43.7 $(17.2)

Expansionary capital $13.9 $26.0 $(12.1)

Exploration capitalized/expensed $9.2/$2.9 $16.5/$2.7 $(7.3)/$0.2

FINANCIAL PERFORMANCESECOND QUARTER HIGHLIGHTS

401. A non-GAAP measure, additional line item or subtotal. A reconciliation of the IFRS measure to the non-GAAP measure can be found atwww.yamana.com/Q22020.

2. Adjusted for the $19.2 million in costs incurred in association with COVID-19.

$118.1millionCash flows from Operating Activities

Before Net Change in Working Capital(1)

$101.1million

Decrease in Net Debt(1)

Free Cash Flow before Dividends and Debt Repayments(1,2) $38.3M

5th Consecutive Quarter of Positive Free Cash Flow(1) Generation

FINANCIAL HIGHLIGHTS

Net debt(i) decreased by $101.1M in the quarter, as of June 30, 2020, net debt(i) was $768.0M.

Brought funds into treasury from the sale of Equinox Gold shares for C$120M and the sale of the

royalty portfolio, which included cash consideration of $10M.

In June, repaid $100M of the amount borrowed on the revolving credit facility as a precautionary

measure in March due to the uncertainty around the global pandemic. Expecting to repay the

remaining $100M by the end of the year.

FINANCIAL PERFORMANCECOVID-19 COSTS IN Q2

41

COVID-19 related costs, which are not included in AISC, can be divided into two major categories:

Temporary suspension and standby costs: Include costs associated with placing certain mines in

care and maintenance and subsequent ramp-up of those operations, and the underutilization of

labour and contractors in relation to the pre-COVID mine plans.

Other incremental COVID-19 costs: Other costs resulting from COVID-19 including community

support, additional personal protective equipment acquisitions, higher transportation costs, and

overtime costs resulting from lower headcount levels on site to accommodate social distancing.

(US Dollars in Millions) Temporary Suspension and

Standby Costs

Other Incremental

COVID-19 Costs

Total

Canadian Malartic 1.9 0.4 2.3

Jacobina 0.4 0.8 1.2

Cerro Moro 7.4 2.0 9.4

El Peñón 0.9 1.5 2.4

Minera Florida 2.7 1.2 3.9

Total 13.3 5.9 19.2

Temporary suspension and standby costs to be minimized prospectively for the balance of the year as

the mines return to full production levels anticipated at the beginning of the year

PROVEN AND PROBABLE MINERAL RESERVESAS OF DECEMBER 31, 2019

42*An agreement has been signed by Agua Rica, which is owned by Yamana Gold, and the owners of Alumbrera that would see the integration of the two projects

*

MEASURED, INDICATED AND INFERRED MINERAL RESOURCESAS OF DECEMBER 31, 2019

43

Corporate Summary

46

Investor Relations

200 Bay Street, Suite 2200

Toronto, Ontario

M5J 2J3

416-815-0220/1-888-809-0925

[email protected]

www.yamana.comNYSE: AUY | TSX: YRI

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