YAMANA GOLD INC. (Form: 6-K, Received: 05/02/2018 17:34:50)

As at (In thousands)

March 31,

2018

December 31,

2017

Total carrying amount of liabilities for cash-settled arrangements ( Note 13(c))

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Month of May 2018

Commission File Number 001-31880

Yamana Gold Inc.

(Translation of registrant’s name into English)

Royal Bank Plaza, North Tower, 200 Bay Street, Suite 2200, Toronto, ON M5J 2J3

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:



Form 20-F o		Form 40-F ý

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

INCORPORATION BY REFERENCE

The Registrant’s Management’s Discussion and Analysis of Operations and Financial Condition for the Three Months Ended March 31, 2018, included as Exhibit 99.1 of this Form 6-K and the Condensed Consolidated Interim Financial Statements as of and for the Three Months Ended March 31, 2018, included as Exhibit 99.2 of this Form 6-K (Commission File No. 001-31880), furnished to the Commission on May 2, 2018, are incorporated by reference into each of the Registration Statements on Form S-8 (Commission File No. 333-159047, File No. 333-148048 and File No. 333-145300, respectively), the Registration Statement on Form F-3D (Commission File No. 333-217016), the Registration Statement on Form F-10 (Commission File No. 333-224029) and the Registration Statement on Form F-10/F-4 (Commission File No. 333-224038) of the Registrant, Yamana Gold Inc.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



		YAMANA GOLD INC.

Date:	May 2, 2018	By:	"Jason LeBlanc"
			Jason LeBlanc
			Senior Vice President, Finance and Chief Financial Officer

EXHIBIT INDEX



Exhibits
Number		Description of Exhibit

99.1		Management’s Discussion and Analysis of Operations and Financial Condition for the Three Months Ended March 31, 2018

99.2		Condensed Consolidated Interim Financial Statements as of and for the Three Months Ended March 31, 2018

EXHIBIT 99.1

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

OPERATIONS AND FINANCIAL CONDITION

FOR THE THREE MONTHS ENDED MARCH 31, 2018

CONTENTS



		Page
1:	Highlights and Relevant Updates	2
2:	Core Business, Strategy and Outlook	7
3:	Review of Financial Results	8
4:	Operating Segments Performance	12
5:	Construction, Development and Exploration	20
6:	Financial Condition and Liquidity	24
7:	Economic Trends, Business Risks and Uncertainties	27
8:	Contingencies	29
9:	Critical Accounting Policies and Estimates	29
10:	Non-GAAP Financial Measures and Additional Subtotals in Financial Statements	30
11:	Disclosure Controls and Procedures	36

MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATIONS AND FINANCIAL CONDITION

This Management’s Discussion and Analysis of Operations and Financial Condition ("MD&A") should be read in conjunction with the Company’s condensed consolidated interim financial statements for the three months ended March 31, 2018 and the most recently issued annual consolidated financial statements for the year ended December 31, 2017 ("Consolidated Financial Statements"). All figures are in United States Dollars ("US Dollars") unless otherwise specified and are in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”).

The Company has included certain non-GAAP financial measures, 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 MD&A include:


•	Cash costs per ounce of gold produced on a co-product and by-product basis;


•	Cash costs per ounce of silver produced on a co-product and by-product basis;


•	Co-product cash costs per pound of copper produced;


•	All-in sustaining costs per ounce of gold produced on a co-product and by-product basis;


•	All-in sustaining costs per ounce of silver produced on a co-product and by-product basis;


•	All-in sustaining co-product costs per pound of copper produced;


•	Net debt;


•	Net free cash flow;


•	Average realized price per ounce of gold sold;


•	Average realized price per ounce of silver sold; and


•	Average realized price per pound of copper sold.

Definitions and reconciliations associated with the above metrics can be found in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.

Cautionary statements regarding forward-looking information and mineral reserves and mineral resources are included in this MD&A.

1. HIGHLIGHTS AND RELEVANT UPDATES

OVERVIEW OF FIRST QUARTER


•	The Company exceeded gold production plan for the first quarter with mine site costs in line with or better than plan.


•	Production and cash flows are expected to increase quarter-over-quarter at most mines, and as customary, more notably in the second half of the year due to mine plans, logistics and the impact on production of the rainy season in the first quarter. For 2018, this trend is to be further accentuated by the start up of Cerro Moro. The Company reiterates its production and cost guidance.


•	Cerro Moro has been commissioned, and first ore was fed to the ball mill on April 25, 2018. The start up is progressing well with milling rates and feed grades expected to ramp up through the second quarter and with first doré expected in May. These developments are expected to provide a step change increase in production and cash flows.

•

At Chapada, the Company continues to advance various value creation opportunities. First, improvements and optimizations at the main Chapada operation are being advanced. These are set out in three phases. Phase 1 targets plant optimization for further copper and gold recovery increases. Pilot plant work has been demonstrating potential further increases in copper and gold recovery of up to 2%; Phase 2 contemplates plant expansion to achieve a throughput capacity of up to 32 million tonnes per annum. Phase 3 contemplates a pit wall pushback to access sucupira ore, which is expected to provide additional tonnes at higher grades. Second, by evaluating the broader Suruca Complex opportunities (oxides/sulphides). Lastly, by focusing on Chapada's exploration program, with the objective of identifying higher-grade copper and gold opportunities that are proximal to the mine, this includes completing infill drilling of the Sucupira and Baru deposits and advancing district scale targets. Refer to Section 5: Construction, Development and Exploration of this MD&A for additional details.


•	Continuation of the exploration programs started early in 2018 with the objective of advancing important exploration discoveries at the Company's existing operations, which is expected to generate mineral reserve and mineral resource growth during the year. An exploration update will be included with results for the second quarter of 2018.

| 2


•	The Company's financial position strengthened during the quarter following:


◦	The completion of the previously announced sale of its 50% indirect interest in certain jointly owned exploration properties of the Canadian Malartic Corporation for cash proceeds of $162.5 million, realizing a net gain of $39.0 million ;


◦	The early redemption of $181.5 million of the 6.97% senior notes due December 2019, which extended the tenor of the Company's fixed term profile at lower average interest rates and improved financial flexibility; and


◦	The receipt of $125.0 million from the copper advanced sales program in exchange for approximately 40.3 million pounds of copper to be delivered in the second half of 2018 and first half of 2019.

all of which lead to a further decrease of Net Debt ⁽ⁱⁱⁱ⁾ by $163.5 million compared to December 31, 2017, notwithstanding capital expenditures while Cerro Moro was in development. This results in an improved balance sheet coincident with the start-up of Cerro Moro. Net Debt is expected to further decline over the next several years as a result of cash flows generated from strategic initiatives.


•	On April 12, 2018, Brio Gold's shareholders approved the take-over bid by Leagold by way of a statutory plan of arrangement. Upon completion of the transaction, and following the recently announced planned equity issue by Leagold, Yamana will own approximately 20.5% of Leagold.


•	Significant events having an accounting or cash flow impact during the period that are not reflective of ongoing operations include:

◦

A non-cash accounting carrying value reduction totalling $168.2 million ($174.0 million before tax) in respect of the Brio Gold Inc. ("Brio Gold") transaction. The business combination of Brio Gold and Leagold, which received approval by Brio Gold shareholders on April 12, 2018, prompted a move to carry the Company’s interest in Brio Gold at market prices for the related shares as at March 31, 2018. This accounting adjustment does not reflect the ultimate impact to the Company, which will be based on the consideration value from the share prices when the Arrangement closes in the second quarter. Additionally, the adjustment to the carrying value of the Company's Brio Gold shares does not reflect the accretion to value that is anticipated as the combined entity will create an impressive mid-tier gold producer with assets in two proven mining jurisdictions, a strong production platform, built-in potential for growth and a proven management team well positioned to deliver future value increases.


◦	A final payment of $67.9 million relating to the recently settled Brazilian tax matters was made in January 2018 as disclosed in the Company's Annual Management Discussion and Analysis for the year ended December 31, 2017.

OPERATING

•

Gold production for Yamana Mines ^(viii) increased by 11% at costs below or in line with the first quarter of 2017. Gold production for Yamana Mines including Gualcamayo also increased from the comparative quarter in 2017 by 4% . Individual mine quarterly results over the first quarter of 2017 included increases of 20% at El Peñón, 19% at Chapada, 17% at Canadian Malartic, and 7% at Jacobina. The decrease of 15% at Minera Florida, which is the Company's smallest mine, was more than compensated by the aforementioned increases. Gualcamayo production totalling 23,846 ounces of gold (included as attributable below, along with Brio Gold) was above budget and as expected, lower than the 37,728 ounces of gold in the comparative period in 2017.



	For the three months ended March 31,
	2018		2017
Gold
Production - Yamana Mines (ounces) (vii)	199,555		177,918
Production - attributable (ounces) (i)	248,088		257,533
Sales - Yamana Mines (ounces) (vii)	198,501		179,485
Sales - consolidated (ounces)	270,931		267,916
Per ounce data (ii)
Revenue	$	1,310	$	1,209
Average realized price (iii)(iv)	$	1,328	$	1,220
Average market price (v)	$	1,330	$	1,219
Total cost of sales - Yamana Mines (vi) (vii)	$	1,035	$	1,022
Total cost of sales - Attributable (vi)	$	1,086	$	1,056
Co-product cash costs - Yamana Mines (iii) (vii)	$	667	$	661
Co-product cash costs - Attributable (iii)	$	724	$	712
Co-product AISC - Yamana Mines (iii) (vii)	$	881	$	927
Co-product AISC - Attributable (iii)	$	928	$	936
By-product cash costs - Yamana Mines (iii) (vii)	$	444	$	565
By-product AISC - Yamana Mines (iii) (vii)	$	703	$	902


•	Silver production and sales were comparable to the first quarter of 2017, at costs below or in line with the same period.

| 3



	For the three months ended March 31,
	2018		2017
Silver
Sales (ounces)	1,060,761		1,169,058
Production (ounces) (vii)	899,261		960,820
Per ounce data (ii)
Revenue	$	16.50	$	17.28
Average realized price (iii)(iv)	$	16.93	$	17.29
Average market price (v)	$	16.75	$	17.42
Total cost of sales (vi)	$	15.20	$	15.14
Co-product cash costs (iii)	$	10.88	$	10.36
Co-product AISC (iii)	$	13.83	$	14.24
By-product cash costs (iii)	$	8.01	$	9.00
By-product AISC (iii)	$	11.58	$	13.72


•	Copper production increased by 15% at lower costs compared to the first quarter of 2017, exceeding expectations.



	For the three months ended March 31,
	2018		2017
Copper
Sales (millions of pounds)	30.3		25.2
Production (millions of pounds)	30.4		26.5
Per pound data (ii)
Revenue	$	2.56	$	2.35
Average realized price (iii)(iv)	$	3.13	$	2.57
Average market price (v)	$	3.16	$	2.65
Total cost of sales (vi)	$	1.71	$	1.79
Co-product cash costs (iii)	$	1.51	$	1.78
Co-product AISC (iii)	$	1.65	$	2.13


(i)	Attributable production is determined on a weighted-average basis with respect to ownership of Brio Gold Inc. ("Brio Gold") common shares during the period, which for the first quarter of 2017 was a weighted average of 53.6% (March 31, 2017 - 83.1%) totalling 24,687 ounces of gold (March 31, 2017 - 41,886 ) and includes Gualcamayo's production of 23,846 (March 31, 2017 - 37,728 ).


(ii)	Cost of sales are per ounce sold and cash costs and AISC are per ounce produced.


(iii)	A cautionary note regarding non-GAAP financial measures and their respective reconciliations, as well as additional subtotals in financial statements are included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.


(iv)	Realized prices based on gross sales compared to market prices for metals may vary due to the timing of the sales.


(v)	Source of information: Bloomberg.


(vi)	Cost of sales consists of the sum of cost of sales excluding Depletion, Depreciation and Amortization ("DDA") plus DDA.


(vii)	Beginning January 1, 2018, silver production and related KPIs for Chapada and Minera Florida no longer meet the minimum significance threshold in accordance with the Company's policy.


(viii)	Yamana Mines includes Chapada, El Peñón, Canadian Malartic, Jacobina, Minera Florida and Cerro Moro, excluding Gualcamayo as it is an asset held for sale.

HEALTH, SAFETY, ENVIRONMENT AND CORPORATE RESPONSIBILITY


•	Health and safety are core to our values evidenced by our continued commitment to the "One Team, One Goal: Zero" vision for sustainability, which reflects the Company's commitment to zero harm to employees, the environment and communities near mine operations.

•

The Company deeply regrets the fatal motor-vehicle accident involving two employees of a local contractor at Gualcamayo Mine, Argentina. All operations and exploration sites reviewed the incident to ensure that employees in similar conditions understand the risk and that the safety controls both exist and are functioning. These fatalities are included in the Company's Total Recordable Injury Frequency Rate of 0.72* for the first quarter of 2018, which is comparatively low by industry standards.

* Calculated on 200,000 hours worked and includes employees and contractors.

| 4

FINANCIAL


•	Revenue for the three months ended March 31, 2018 , was higher due to the increase of gold and copper prices by 8% and 22% , respectively over the comparative period. Furthermore, revenue benefited from an additional 5 million pounds of copper sales, representing a 20% increase over the same period in 2017.


•	Net loss attributable to the Company's equityholders for the quarter ended March 31, 2018 was $160.1 million or $0.17 per share basic and diluted, compared to a net loss of $0.0 million or $0.00 per share basic and diluted for the three months ended March 31, 2017 .

•

Net loss was affected by, among other things, non-cash and certain items that may not be reflective of current and ongoing operations for a total of $170.2 million or $0.18 per share, compared to net loss of $0.17 per share. The more notable non-cash items are related to the Brio Gold operating and non-operating accounting impairments. (See Section 3: Review of Financial Results of this MD&A for additional details).



	For the three months ended March 31,
(In millions of US Dollars; unless otherwise noted)	2018			2017 (iii)
Revenue	$	449.7		$	403.5
Cost of sales excluding DDA	(259.2		)	(238.0		)
Gross margin excluding DDA	$	190.5		$	165.5
Depletion, depreciation and amortization	(104.1		)	(106.0		)
Impairment of mining properties	(103.0		)	—
Mine operating (loss)/earnings	$	(16.6	)	$	59.5
General and administrative	(26.2		)	(25.3		)
Exploration and evaluation	(3.8		)	(4.0		)
Other income/(expenses)	25.3			(18.6		)
Impairment of non-operating mining properties	(71.0		)	—
Net finance expense	$	(39.6	)	$	(29.8	)
Net loss before income taxes	$	(131.9	)	$	(18.2	)
Income tax (expense)/recovery, net	$	(28.7	)	$	19.2
Net (loss)/earnings	$	(160.6	)	$	1.0

Attributable to:
Yamana Gold Inc. equityholders	$	(160.1	)	$	—
Non-controlling interests	(0.5		)	1.0
	$	(160.6	)	$	1.0
Per share data
Net (loss)/earnings - basic and diluted	$	(0.17	)	$	—
Dividends declared per share	$	0.005		$	0.005
Dividends paid per share	$	0.005		$	0.005
Weighted average number of common shares outstanding (in thousands)
Basic	948,711			947,901
Diluted	948,711			947,901
Cash flows (i)
Cash flows from operating activities	$	122.4		$	51.3
Cash flows from operating activities before net change in working capital (ii)	$	206.4		$	117.2
Cash flows from/(used in) investing activities	$	14.7		$	(128.8	)
Cash flows (used in)/from financing activities	$	(142.5	)	$	85.2


(i)	For further information on the Company's liquidity and cash flow position, refer to Section 6: Financial Condition and Liquidity of this MD&A.

(ii)

A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A. Consistent with previous years, cash flows and working capital in the first quarter are the lowest due to cyclical factors, such as the seasonal impact on production during the rainy season early in the year, incremental production ramp-up and settlement of year-end accruals and payables.


(iii)	The Company has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated except for certain hedging requirements. Refer to Note 3: Recent Accounting Pronouncements to the Company's Condensed Consolidated Interim Financial Statements.

| 5


•	Net free cash flow for the three months ended March 31, 2018 , increased from the prior-year comparative period as follows:



(In millions of US Dollars)	For the three months ended March 31,
Net free cash flow (i) (ii)	2018			2017
Cash flows from operating activities before income taxes paid and net change in working capital	$	290.4		$	125.6
Income taxes paid	(16.1		)	(8.4		)
Payments made related to the Brazilian tax matters	(67.9		)	—
Cash flows from operating activities before net change in working capital (ii)	$	206.4		$	117.2
Net change in working capital	(84.0		)	(65.9		)
Cash flows from operating activities	$	122.4		$	51.3
Less: Advance payments received on metal purchase agreement and unearned revenue	(127.8		)	(4.4		)
Add: Payments made related to the Brazilian tax matters	67.9			—
Less: Non-discretionary items related to the current period
Sustaining capital expenditures	(39.8		)	(51.1		)
Interest and other finance expenses paid	(14.2		)	(18.9		)
Net free cash flow	$	8.5		$	(23.1	)


(i)	For further information on the Company's liquidity and cash flow position, refer to Section 6: Financial Condition and Liquidity of this MD&A.

(ii)

A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A. Net Free Cash Flow is adjusted for payments not reflective of current period operations, advance payments received pursuant to metal purchase agreements, non-discretionary expenditures from sustaining capital expenditures and interest and financing expenses paid related to the current period.

Balance Sheet and Liquidity


•	As at March 31, 2018 , the Company had cash and cash equivalents of $129.3 million and available credit of $827.8 million , for total liquidity of approximately $1.0 billion .



As at, (In millions of US Dollars)	March 31, 2018		December 31, 2017
Total assets	$	8,342.4	$	8,763.3
Total long-term liabilities (iii)	$	3,429.4	$	3,535.3
Total equity	$	4,117.5	$	4,447.3
Working capital (i)	$	110.9	$	58.7
Cash and cash equivalents (iii)	$	129.3	$	148.9
Debt (current and long-term) (iii)	$	1,674.6	$	1,857.7
Net debt (ii) (iii)	$	1,545.3	$	1,708.8


(i)	Working capital is defined as the excess of current assets over current liabilities, which includes the current portion of long-term debt and assets and liabilities of disposal groups held for sale. Current assets and current liabilities at March 31, 2018 include Gualcamayo and Brio Gold, which have been classified as disposal groups held for sale.


(ii)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.


(iii)	Amounts attributable to Brio Gold are not included as at March 31, 2018, as they are presented as current assets and liabilities of an asset held for sale.

CAPITAL EXPENDITURES



For the three months ended March 31,	2018		2017		2018		2017		2018		2017		2018		2017
	Sustaining and other				Expansionary				Exploration				Total (iii)
Chapada (i)	$	4.5	$	11.3	$	0.4	$	3.7	$	0.7	$	0.7	$	5.6	$	15.7
El Peñón	7.7		9.8		—		—		3.2		4.8		$	10.9	$	14.6
Canadian Malartic (i)	14.0		10.1		5.2		1.9		2.1		2.2		$	21.3	$	14.2
Jacobina	3.0		5.5		2.7		4.4		1.0		0.7		$	6.7	$	10.6
Minera Florida	3.1		5.6		2.7		1.3		3.9		1.9		$	9.7	$	8.8
Cerro Moro	—		—		47.3		34.5		1.5		0.8		$	48.8	$	35.3
Other Mines (iv)	7.4		8.4		11.8		10.0		2.5		4.9		$	21.7	$	23.3
Other (ii)	0.1		0.4		5.1		5.0		1.9		1.5		$	7.1	$	6.9
	$	39.8	$	51.1	$	75.2	$	60.8	$	16.8	$	17.5	$	131.8	$	129.4


(i)	Capital expenditures for Chapada and Canadian Malartic do not include $9.4 and $8.6 million in long-term stockpile additions respectively, which are presented as Investing Activities in the Condensed Consolidated Interim Statement of Cash Flows.


(ii)	Included in Other is $4.1 million (2017 - $4.5 million ) of capitalized interest for the period.


(iii)	Net of movement in accounts payable as applicable for projects under construction and including applicable borrowing costs.


(iv)	Other Mines is a reportable operating segment effective January 1, 2018, which includes Gualcamayo and Brio Gold. Comparatives have been aggregated to conform to the change in presentation adopted in the current period.

| 6

2. CORE BUSINESS, STRATEGY AND OUTLOOK

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions throughout the Americas including in Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through existing operating mine expansions and optimization initiatives, development of new mines, the advancement of its exploration properties and, at times, by targeting other gold consolidation opportunities with a primary focus in the Americas. The Company is listed on the Toronto Stock Exchange (trading symbol "YRI") and the New York Stock Exchange (trading symbol "AUY").

The Company’s principal mining properties comprise the Chapada and Jacobina mines in Brazil; the El Peñón and Minera Florida mines in Chile, the Canadian Malartic mine (50% interest) in Canada and the Cerro Moro mine in Argentina. The Company’s portfolio also includes the Gualcamayo mine in Argentina and a controlling interest in Brio Gold, with mining properties in Brazil, both of which are classified as assets held for sale.

Over the years, the Company has grown through phases of strategic acquisitions to upgrade its portfolio and by pursuing organic growth to increase production and cash flow. The Company is currently focusing on numerous internal value generating opportunities and the Company’s current key objectives include:


•	Delivering operational results and execution, and advancing near-term and ongoing optimizations at Yamana’s five remaining mines, soon to be six producing mines;


•	Maximization of cash return on invested capital, first on producing and then non-producing assets:


◦	Within the producing portfolio, attention remains on the growth of mineral reserves and resources to improve production and extend mine lives, throughput increases, metal grade and recovery improvements, and cost reductions that are expected to improve margins and cash flow returns.

◦

For non-producing assets, the focus is on improving net asset values through exploration, drilling and technical / financial reviews. Over time, the company will also consider strategic alternatives to drive returns from non-producing assets such as advancing and converting them into producing assets, developing the assets through a joint venture or other strategic arrangements, or through monetization;


•	Advancing Cerro Moro with the production ramp-up to commence in the second quarter of 2018;


•	Continuing balance sheet and financial performance improvements. The Company continues to target a leverage ratio of 1.5 or better. Opportunities to reduce leverage below this target will be considered. As a point of reference, over the first ten years of the Company's existence through 2014, the historical average of the Company was a leverage ratio of approximately 0.8;


•	Improving the efficiency of all operations with a focus on optimizing free cash flow from mine plans that can deliver consistent and predictable results and, in the case of Canadian Malartic, Jacobina, and Minera Florida, a focus on production growth opportunities;


•	Increasing overall mineral reserves and mineral resources;


•	Advancing the Company’s organic pipeline through exploration targeted on the most prospective properties, including:


◦	Chapada, Minera Florida, Canadian Malartic (Odyssey) and Cerro Moro as a result of new discoveries at each site,


◦	Minera Florida, El Peñón, Chapada, and Jacobina with the objective to increase mine life while improving grade and to deliver potential for production increases through further delineation and infill drilling;


•	Maximizing value from the long-life Chapada mine and vast exploration opportunities by pursuing expansion initiatives; and


•	Pursuing the above with health and safety as are core to our values, evidenced by our continued commitment to the "One Team, One Goal: Zero" vision for sustainability, which reflects the Company's commitment to zero harm to employees, the environment and communities near mine operations.

The Company continued to make progress against all of these objectives through the end of the first quarter of 2018.

Consistent with the above objectives, the Company continues to evaluate its medium-term development opportunities. The Company foresees that after the completion of Cerro Moro and the Canadian Malartic Extension project, there will be a significant reduction in expansionary capital. This, when considered with the production growth at Cerro Moro and growth within the existing portfolio, positions the Company well to deliver on near-term step changes in cash flow and net free cash flow. The net effect also positions the Company well to execute on its corporate objective to both reduce net debt and increase cash balances. This cash harvesting phase is expected to commence in 2018 and continue for at least the next several years.

The Company is focused on improving cash flows and returns on invested capital. In that context, the Company’s development opportunities are to be managed within the framework of the balance sheet objectives. In addition to the usual project gating items, project scheduling and expenditures will be sequential so as not to interfere with the Company’s balance sheet objectives and also the period of cash flow harvesting. Monetization of certain assets or other strategic alternatives may ultimately provide additional flexibility to both the balance sheet and project timing.

| 7

Recent and current initiatives, which have or will further advance this commitment, include the following:


•	Planned cash flow increases which are expected as the Company continues to deliver operational improvements and advance its development stage projects, most notably Cerro Moro which remains on budget and on schedule for start-up the second quarter of 2018.

•

The recent sale of the jointly owned exploration properties of the Canadian Malartic Corporation and copper advanced sale program provides further financial flexibility over the medium term and have allowed for the repaying of outstanding indebtedness. Yamana is committed to advancing its project pipeline with the sequencing established to manage balance sheet strength while also ensuring the pipeline is well positioned in those countries and jurisdictions where the Company has the most familiarity.


•	The Company is advancing on several monetization initiatives as part of ongoing strategic and technical reviews of its asset portfolio.


◦	The Company previously announced the strategic review and alternatives for development of Agua Rica, which is a feasibility stage copper-gold asset wholly owned by Yamana.

◦

In the case of other assets, the Company considers the contribution to cash flows from those assets and whether or not the possible monetization of or other strategic alternatives for those assets may deliver more value than the immediate cash flows that they generate. In line with the review, the Company initiated a plan of sale for its Gualcamayo mine in Argentina late in 2017. In the meantime, mining operations continue efforts to right-size production at Gualcamayo. Further options under consideration include various harvesting options that would maximize cash flows and consider the significant exploration long-term potential at Gualcamayo.

◦

The Company supported the offer presented with respect to Brio Gold and agreed to support the combination of Brio Gold and Leagold, which achieves various corporate objectives. In particular, the Company retains exposure to a combined entity that will create an impressive mid-tier gold producer with assets in two excellent jurisdictions, a strong production platform, built-in potential for growth and a proven management team well positioned to deliver future value increases.

3. REVIEW OF FINANCIAL RESULTS

FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2018

Net Earnings/(Loss)

•

Net loss attributable to Yamana Gold Inc. equityholders, for the three months ended March 31, 2018 was $160.1 million or $0.17 per share basic and diluted, compared to a net loss of $0.0 million or $0.00 per share for the three months ended March 31, 2017 . Net loss resulted mainly from a non-cash accounting fair value adjustment totalling $168.2 million ($ 174.0 million before tax) recorded during the period in respect of Brio Gold ( Note 4: Divestitures to the Company's Condensed Consolidated Interim Financial Statements). In summary, net earnings/(loss) and net earnings/(loss) per share were affected by, among other things, the following non-cash and certain items that may not be reflective of current and ongoing operations totalling $170.2 million or $0.18 per share, compared to net loss of $0.17 per share. The Company refers to the following items, which may be used to adjust or reconcile input models in consensus estimates:



	For the three months ended March 31,
(In millions of US Dollars; unless otherwise noted)	2018			2017
Non-cash unrealized foreign exchange losses	$	3.3		$	2.2
Share-based payments/mark-to-market of deferred share units	0.8			3.2
Mark-to-market on derivative contracts (iii)	(10.1		)	0.4
Mark-to-market on investment and other assets	1.0			3.7
Revision in estimates and liabilities including contingencies	5.2			1.5
Gain on sale of assets	(39.3		)	—
Impairment of mining and non-operational mineral properties relating to Brio Gold	174.0			—
Financing costs paid on early note redemption	14.7			—
Reorganization costs	4.0			—
Other provisions, write-downs and adjustments (i)	6.5			3.9
Non-cash tax on unrealized foreign exchange losses/(gains)	4.8			(27.2		)
Income tax effect of adjustments	5.3			3.2
Total adjustments - increase to earnings (ii)	$	170.2		$	(9.1	)
Total adjustments - increase to earnings per share	$	0.18		$	—


(i)	The balance includes, among other things, the reversal of certain provisions such as tax credits and legal contingencies.

| 8


(ii)	For the three months ended March 31, 2018, net earnings attributable to Yamana Gold Inc. equityholders, were impacted by a decrease of $170.2 million (March 31, 2017 - $9.1 million ).

(iii)

On January 1, 2018 the Company adopted IFRS 9 Financial Instruments. Under the transitional provisions of IFRS 9, the Company has restated the comparative period for certain hedging requirements. Specifically, under IFRS 9, changes in time value on the Company's zero-cost collars, which were taken to profit or loss under IAS 39: Financial Instruments: Recognition and Measurement, are now recognized in OCI as a cost of hedging rather than in profit or loss. Accordingly, the results of the comparative period have been adjusted to remove time value movements from profit or loss, and the comparative adjustments above have been adjusted accordingly.

Revenue


•	Revenue for the three months ended March 31, 2018 was $449.7 million , compared to $403.5 million in the same period in 2017.



For the three months ended March 31,	2018						2017
	Quantity sold		Revenue per ounce/pound		Revenue (In millions of US Dollars)		Revenue (In millions of US Dollars)
Gold (i)	270,931	oz	$	1,310	$	354.9	$	324.0
Silver	1,060,761	oz	$	16.50	17.5		20.2
Copper (i)	30,252,869	lbs	$	2.56	77.3		59.3
Revenue (iii)					$	449.7	$	403.5



For the three months ended March 31,	2018							2017
	Quantity sold		Average realized price		Revenue (In millions of US Dollars)			Revenue (In millions of US Dollars)
Gold (i)	270,931	oz	$	1,328	$	359.8		$	326.7

Silver	973,257	oz	$	16.84	16.4			19.2
Silver subject to metal sales agreement (ii)	87,504	oz	$	17.88	1.6			1.0
	1,060,761	oz	$	16.93

Copper (i)	28,335,873	lbs	$	3.19	90.4			60.0
Copper subject to metal sales agreement (ii)	1,916,996	lbs	$	2.31	4.4			4.7
	30,252,869	lbs	$	3.13
Gross revenue					$	472.6		$	411.6
(Deduct)/add:
- Treatment and refining charges of gold and copper concentrate					(9.3		)	(7.8		)
- Sales taxes					(5.6		)	(4.1		)
- Metal price adjustments related to concentrate revenue					(8.1		)	3.8
Revenue (iii)					$	449.7		$	403.5


(i)	Includes payable copper and gold contained in concentrate.


(ii)	Balances represent the metals sold under the metal sales agreements.

(iii)

As discussed in Note 3: Recent Accounting Pronouncements to the Company's Condensed Consolidated Interim Financial Statements, the Company adopted IFRS 15 Revenue from Contracts with Customers on January 1, 2018. Under IFRS 15, the Company is required to account for the financing component on its streaming arrangements, under which, revenue is increased by an imputed interest amount, with a corresponding increase to finance expense each period. The amount of this adjustment in the three months ended March 31, 2018 was $1.6 million. In accordance with the transition provisions of IFRS 15, revenue in the comparative period has not been restated.

•

Revenue in the three months ended March 31, 2018 increased by $46.2 million over the comparative period, of which, $44.1 million was attributable to changes in metal prices, $15.0 million attributable to changes in the volume of metals sold, partially offset by increases in deductions to revenue in the period, as set out in the above table. Metal price adjustments of $8.1 million during the period are more than offset by finance income from derivatives presented separately in net finance expense.


•	Changes attributable to metal prices were driven by increases of 8% and 22% in both gold and copper prices, respectively, over the comparative period. The increase attributable to changes in the quantity of metals sold predominantly relates to copper sales increasing by 20% or 5 million pounds from the comparative period.

Cost of Sales

•

Cost of sales excluding DDA for the three months ended March 31, 2018 was $259.2 million , compared to $238.0 million for the same period in 2017. Cost of sales excluding DDA for the quarter was higher than that of the same period in 2017, primarily as a result of higher sales quantities in the quarter and the appreciation of local currencies. Despite these increases, per unit costs for Yamana Mines remained relatively unchanged.

| 9


•	Total DDA expense for the three months ended March 31, 2018 was $104.1 million , comparable to the $106.0 million for the same period in 2017. DDA expense excluding Brio Gold and Gualcamayo for the three months ended March 31, 2018 was $82.1 million , compared to $76.3 million the same period in 2017.

Mine Operating Earnings/loss


•	Mine operating loss for the three months ended March 31, 2018 was $16.6 million following the non-cash fair value adjustment on the operating portion of the Company's investment in Brio Gold, compared to earnings of $59.5 million for the same period in 2017.

Expenses and Other Income


•	General and administrative expenses of $26.2 million for the three months ended March 31, 2018 were comparable to expenses of $25.3 million for the same period in 2017. Excluding Brio Gold, Gualcamayo and share-based expenses, general and administrative expenses were $20.3 million, compared to $18.3 million in the same period of 2017.


•	Exploration and evaluation expenses were $3.8 million for the three months ended March 31, 2018 , comparable to the $4.0 million for the same period in 2017.

•

The Company recorded other income of $25.3 million for the three months ended March 31, 2018 , compared to other expenses of $18.6 million for the same period of 2017. The change is mainly due to the gain on sale of certain Canadian exploration properties recorded in the current period. Refer to Note 4: Divestitures to the Company's Condensed Consolidated Interim Financial Statements for further discussion.


•	Net finance expense was $39.6 million for the three months ended March 31, 2018 , compared to $29.8 million for the same period in 2017. The movement in net finance expense is mainly due to the impact the one-time financing cost on the early debt redemption.


•	Impairment of non-operating mining properties of $71.0 million for the three months ended March 31, 2018 relates to the non-cash carrying value reduction on the non-operating portion of the Company's investment in Brio Gold, with no comparative in the same period of 2017.

Income Tax Recovery/Loss

•

The Company recorded an income tax expense of $28.7 million for the three months ended March 31, 2018 (March 31, 2017 - $19.2 million recovery ). The income tax provision reflects a current income tax expense of $26.5 million and a deferred income tax expense of $2.2 million , compared to a current income tax expense of $10.4 million and a deferred income tax recovery of $29.6 million for the three months ended March 31, 2017.

•

The effective tax rate is subject to a number of factors including the source of income between different countries, different tax rates in the various jurisdictions, the non-recognition of tax assets foreign currency exchange movements, mining taxes, changes in tax laws and the impact of specific transactions and assessments. The consolidated effective tax rate was negative 21.8% on the loss before tax for the three months ended March 31, 2018, compared to an effective tax rate of 76.5% for the same period of the prior year.


•	The increase in income tax expense for the quarter is mainly due to the following:


◦	No recognition of deferred tax assets and losses relating to assets held for sale and non-operating entities for $78.7 million, compared to $10.7 million for the comparative period. This was mainly related to a deferred tax asset generated on the impairment of Brio Gold that was not recognized;


◦	A foreign exchange expense of $4.8 million relating to the weakening of the Brazilian Real and Argentinean Peso against the US Dollar compared to a recovery of $27.2 million recorded in the comparative period; and


◦	A tax expense of $14.5 million relating to the sale of Canadian exploration properties.


•	See Note 8: Income Taxes to the Company's Condensed Consolidated Interim Financial Statements for a breakdown of the foreign exchange charged to the income tax expense. Readers are also encouraged to read and consider the tax related risk factors and uncertainties in the Company’s Annual Information Form and Annual Management Discussion and Analysis for the year ended December 31, 2017.

| 10

QUARTERLY FINANCIAL SUMMARY



For the three months ended	Mar. 31,			Dec. 31,			Sep. 30,		Jun. 30,			Mar. 31,		Dec. 31,			Sep. 30,			Jun. 30,
(In millions of US Dollars, unless otherwise noted)	2018			2017			2017		2017			2017		2016			2016			2016
Revenue (i) (ii)	$	449.7		$	478.8		$	493.4	$	428.1		$	403.5	$	484.4		$	464.3		$	438.0
Attributable to Yamana equity holders:
Net (loss)/earnings from continuing operations (iii)	$	(160.1	)	$	(188.6	)	$	45.7	$	(39.9	)	$	—	$	(355.0	)	$	(2.1	)	$	30.3
Per share - basic and diluted	$	(0.17	)	$	(0.20	)	$	0.05	$	(0.04	)	$	—	$	(0.37	)	$	—		$	0.03
Net (loss)/earnings (iii)	$	(160.1	)	$	(188.6	)	$	45.7	$	(39.9	)	$	—	$	(367.6	)	$	(11.8	)	$	34.8
Per share - basic and diluted	$	(0.17	)	$	(0.20	)	$	0.05	$	(0.04	)	$	—	$	(0.39	)	$	(0.01	)	$	0.04


(i)	Revenue consists of sales net of sales taxes.

(ii)

On January 1, 2018, the Company adopted IFRS 15 Revenue from Contracts with Customers. In accordance with the transition requirements in IFRS 15, prior period numbers are not restated. The impact to the Company's revenue of applying IFRS 15 in the three months ended March 31, 2018, was an increase of $1.6 million. Accordingly, had the Company not applied IFRS 15, revenue for the three months ended March 31, 2018 would have been $448.1 million.

(iii)

On January 1, 2018, the Company adopted IFRS 9 Financial Instruments. In accordance with the transition requirements in IFRS 9, the Company has restated the 2017 comparative periods for certain hedging requirements. Specifically, under IFRS 9, changes in time value on the Company's zero-cost collars, which were taken to profit or loss under IAS 39: Financial Instruments: Recognition and Measurement, are now recognized in OCI as a cost of hedging rather than in profit or loss. Accordingly, the 2017 comparative periods have been restated for this change; however, the 2016 quarterly results have not been restated.

| 11

4. OPERATING SEGMENTS PERFORMANCE

YAMANA MINES

CHAPADA, BRAZIL

Chapada is an open pit gold-copper mine, located northwest of Brasília in the Goías state, Brazil.



	For the three months ended March 31,
Operating and Financial Information	2018			2017
Operating (iv)
Ore mined (tonnes)	6,528,117			5,175,517
Waste mined (tonnes)	6,810,917			7,132,992
Ore processed (tonnes)	5,688,738			5,614,753
Gold
Production (ounces) (iii)	22,753			19,089
Sales (ounces) (iii)	23,643			21,406
Feed grade (g/t)	0.22			0.21
Concentrate grade (g/t)	12.37			11.51
Recovery rate (%)	57.3			49.2
Total cost of sales per ounce sold (ii)	$	488		$	462
Co-product cash costs per ounce produced (i)	$	416		$	514
All-in sustaining co-product costs per ounce produced (i)	$	462		$	634
DDA per ounce sold	$	99		$	61
Copper
Production (millions of pounds)	30.4			26.5
Sales (millions of pounds)	30.3			25.2
Feed grade (%)	0.31			0.29
Concentrate grade (%)	24.11			23.32
Recovery rate (%)	77.4			73.0
Total cost of sales per pound of copper sold (ii)	$	1.71		$	1.79
Co-product cash costs per pound of copper produced (i)	$	1.51		$	1.78
All-in sustaining co-product costs per pound of copper produced (i)	$	1.65		$	2.13
DDA per pound sold	$	0.31		$	0.21
Concentrate
Production (tonnes)	57,191			51,589
Sales (tonnes)	59,519			50,626
Treatment and refining charges (millions of $)	$	(9.3	)	$	(7.8	)
Metal price adjustments related to concentrate revenue (millions of $)	$	(8.1	)	$	3.8

Financial (millions of US Dollars)
Revenue	$	105.9		$	85.2
Cost of sales excluding DDA	(51.6		)	(48.7		)
Gross margin excluding DDA	$	54.3		$	36.5
DDA	(11.7		)	(6.7		)
Mine operating earnings	$	42.6		$	29.8
Capital expenditures
Sustaining and other	4.5			11.3
Expansionary	0.4			3.7
Exploration	0.7			0.7


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.


(ii)	Quantities sold include quantity adjustment on provisional and final invoice settlements.


(iii)	Contained in concentrated/Payable contained in concentrate.


(iv)	Beginning January 1, 2018, silver production and related KPIs for Chapada no longer meet the minimum significance threshold in accordance with the Company's policy.

Chapada exceeded expectations for both gold and copper in the first quarter of 2018, and production of gold and copper increased by 19% and 15% , respectively, leading to higher revenues and operating earnings over the prior year.

| 12

For gold and copper, the production increases over the same period in 2017 were attributable to significantly higher process recoveries. Modifications to the flotation circuit, notably in the fourth quarter of 2017, have delivered a marked improvement in process recoveries for both gold and copper. Importantly, these improvements are being experienced across the different ore types and with higher pyrite content. Other optimizations have been initiated to further improve recoveries.

In line with seasonal trends and the Company's guidance, gold and copper production at Chapada are expected to be back-end year loaded as heavier rains in the earlier part of the year adversely affected drilling and blasting rates and, in turn mining rates.

All per unit costs for gold and copper benefited from higher metal production, compared to the first quarter of 2017. For costs of sales per ounce and pound, the benefit of higher production was offset by higher DDA. Additionally, co-product AISC decreased, in part due to lower cash costs and lower planned sustaining capital expenditures during the quarter.

At Chapada, the Company continues to advance various value creation opportunities. First, improvements and optimizations at the main Chapada operation are being advanced. These are set out in three phases. Phase 1 targets plant optimization for further copper and gold recovery increases. Pilot plant work has been demonstrating potential further increases in copper and gold recovery of up to 2%; Phase 2 contemplates plant expansion to achieve a throughput capacity of up to 32 million tonnes per annum. Phase 3 contemplates a pit wall pushback to access sucupira ore, which is expected to provide additional tonnes at higher grades. Second, by evaluating the broader Suruca Complex opportunities (oxides/sulphides). Lastly, the goals of the 2018 exploration program at Chapada are to focus on identifying near mine inferred mineral resources, both oxide and sulphide, targeting higher grade gold to improve current gold feed grade going forward, and follow up on regional targets to outline future opportunities for growth. Work completed in the first quarter was focused on Suruca, Santa Cruz and Hidrotermalito. At Suruca, drilling continues to expand the gold sulphide mineral resource and other higher grade areas. At Santa Cruz, work was completed on expanding the known extent of the mineralization. At Hidrotermalito, drilling is defining oxide mineral resources and testing the potential of a Copper-Gold sulphide system below the current oxide mineralization.

Refer to Section 5: Construction, Development and Exploration of this MD&A for additional details.

| 13

EL PEÑÓN, CHILE

El Peñón is a high grade gold-silver underground mine located approximately 160 kilometres southeast of Antofagasta in northern Chile.



	For the three months ended March 31,
Operating and Financial Information	2018			2017
Operating
Ore mined (tonnes)	213,403			223,204
Ore processed (tonnes)	257,844			228,923
Gold
Production (ounces)	40,391			33,637
Sales (ounces)	41,349			34,564
Feed grade (g/t)	5.07			4.80
Recovery rate (%)	94.8			95.1
Total cost of sales per ounce sold	$	1,270		$	1,097
Co-product cash costs per ounce produced (i)	$	837		$	763
All-in sustaining co-product costs per ounce produced (i)	$	984		$	977
DDA per ounce sold	$	394		$	327
Silver
Production (ounces)	899,261			960,820
Sales (ounces)	973,257			998,460
Feed grade (g/t)	123.62			152.61
Recovery rate (%)	85.5			85.0
Total cost of sales per silver ounce sold	$	15.11		$	15.03
Co-product cash costs per silver ounce produced (i)	$	10.88		$	10.58
All-in sustaining co-product costs per silver ounce produced (i)	$	12.81		$	13.55
DDA per ounce sold	$	4.60		$	4.47

Financial (millions of US Dollars)
Revenue	$	71.2		$	60.0
Cost of sales excluding DDA	(46.5		)	(37.2		)
Gross margin excluding DDA	$	24.7		$	22.8
DDA	(20.8		)	(15.8		)
Mine operating earnings	$	3.9		$	7.0
Capital expenditures
Sustaining and other	7.7			9.8
Expansionary	—			—
Exploration	3.2			4.8


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.

El Peñón exceeded production expectations for gold during the first quarter of 2018. Processing rates and gold grades were consistent with the averages of the three preceding quarters. Production in the comparative period of 2017 had been negatively impacted by downtime associated with a labour strike. With respect to silver and compared to previous quarters, the mine sequencing is in relatively higher gold stopes, leading to lower feed grades. Silver production is expected to align to the mine plan in the following quarters.

Gold costs during the quarter were impacted by an 8% appreciation of the Chilean Peso relative to the US Dollar, which represented approximately $58 per ounce. These items also affected operating earnings. Despite the higher co-product cash costs over the comparative period of 2017, AISC were only modestly higher due to the lower expected development activities in the quarter.

The goals of the 2018 exploration program at El Peñón are to continue to expand measured, indicated & inferred mineral resources, test extensions of main veins, and continue to drill secondary structures near the mine infrastructure. Work completed in the first quarter was focused primarily on upgrading resources at Cerro Martillo Central Sur, Aleste Sur-Sur, Providencia and Dorada FW West with infill drilling.

| 14

CANADIAN MALARTIC (50% interest), CANADA

Canadian Malartic is an open pit gold mine, located in the Abitibi region of Quebec, Canada. It began production in 2011 and was jointly acquired by the Company (50%) and its partner, Agnico Eagle Mines Limited (50%) in 2014.



	For the three months ended March 31,
Operating and Financial Information	2018			2017
Operating
Ore mined (tonnes)	3,301,457			2,701,939
Waste mined (tonnes)	5,514,300			5,261,597
Ore processed (tonnes)	2,509,908			2,432,579
Gold
Production (ounces)	83,403			71,382
Sales (ounces)	81,117			66,543
Feed grade (g/t)	1.17			1.03
Recovery rate (%)	88.1			88.7
Total cost of sales per ounce sold	$	970		$	1,027
Co-product cash costs per ounce produced (i)(ii)	$	567		$	556
All-in sustaining co-product costs per ounce produced (i)	$	748		$	716
DDA per ounce sold	$	381		$	479

Financial (millions of US Dollars)
Revenue	$	109.4		$	82.4
Cost of sales excluding DDA	(47.8		)	(36.5		)
Gross margin excluding DDA	$	61.6		$	45.9
DDA	(30.9		)	(31.9		)
Mine operating earnings	$	30.7		$	14.0
Capital expenditures
Sustaining and other	14.0			10.1
Expansionary	5.2			1.9
Exploration	2.1			2.2


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.


(ii)	Net of the CAD currency hedge impact for the period.

Canadian Malartic had a strong start to the year. The mine delivered record quarterly production and exceeded expectations for the first quarter in 2018 at 17% higher production, compared to the same quarter in 2017. Higher mill feed grades at 1.17 g/t, also a quarterly record for Canadian Malartic, drove the increase to production and operating earnings. All per unit costs were in line with budget and expectations higher than the comparative period due to higher contractor and fuel costs.

The goals of the 2018 exploration program at Canadian Malartic are to continue to drill Odyssey and East Malartic targets to expand mineral resources and transfer from inferred to measured and indicated category, and to continue to look for potential to expand in pit mineral reserves.

Drilling in the first quarter was primarily focused on infill drilling at Odyssey's South Zone and work to better understand the structural controls of the mineralization. Recent drilling at Odyssey has confirmed the mineral resources tonnage and grade in the central portion of the zone, and has extended the zone along strike and closer to surface. Definition and expansion drilling will continue in the coming quarters to increase confidence in the grade and zone geometry. Exploration at the East Malartic targets is ongoing following the significant intercepts from the 2017 program.

| 15

JACOBINA, BRAZIL

Jacobina is a complex of underground gold mines located in the Bahia state, Brazil.



	For the three months ended March 31,
Operating and Financial Information	2018			2017
Operating
Ore mined (tonnes)	527,897			477,909
Ore processed (tonnes)	502,589			477,953
Gold
Production (ounces)	34,525			32,126
Sales (ounces)	33,500			33,256
Feed grade (g/t)	2.21			2.17
Recovery rate (%)	96.7			96.4
Total cost of sales per ounce sold	$	977		$	1,021
Co-product cash costs per ounce produced (i)	$	705		$	693
All-in sustaining co-product costs per ounce produced (i)	$	798		$	871
DDA per ounce sold	$	261		$	328

Financial (millions of US Dollars)
Revenue	$	43.8		$	40.4
Cost of sales excluding DDA	(24.0		)	(23.0		)
Gross margin excluding DDA	$	19.8		$	17.4
DDA	(8.7		)	(10.9		)
Mine operating earnings	$	11.1		$	6.5
Capital expenditures
Sustaining and other	$	3.0		$	5.5
Expansionary	2.7			4.4
Exploration	1.0			0.7


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.

Jacobina delivered record first-quarter production and exceeded production expectations in the first quarter of 2018 as strong production momentum throughout last year carried into 2018.

Production was 7% higher compared to the same quarter in 2017 mainly from a higher processing rate. Development efforts continue to be well advanced with approximately 8 to 10 months of inventory developed underground and a surface stockpile of approximately 60,000 tonnes.

Costs at Jacobina for the first quarter of 2018 were below plan and guidance, contributing to higher operating earnings. Compared to the same quarter of 2017, the improved operating efficiency, higher production, and cost containment initiatives where offset by higher secondary development costs associated with the stockpile and stope development, allowing future processing flexibility.

Plant optimization initiatives continue at Jacobina. In the second quarter, the Company expects to complete Phase 2 of these efforts with completion of an advanced control system. Phase 3 studies are underway for a plant optimization, which would provide the processing capacity of 6,500 tpd, resulting in the planned production objective of 150,000 ounces per year.

The goals of the 2018 exploration program at Jacobina are to improve quality of mineral resources near mine by identifying opportunities for higher grade ore near infrastructure, and explore the broader land package. The focus of work in the first quarter was primarily testing potential targets at Serra de Córrego and Canavieiras that are believed to potentially host higher grade mineralization and infill drilling at João Belo, Morro do Vento and Canavieiras Central. As well, regional surface exploration has identified favourable targets in the northern portion of the claim block for follow up work in the future.

| 16

MINERA FLORIDA, CHILE

Minera Florida is an underground gold mine located south of Santiago in central Chile.



	For the three months ended March 31,
Operating and Financial Information	2018			2017
Operating (ii)
Ore mined (tonnes)	181,097			180,189
Ore processed (tonnes)	203,043			391,101
Gold
Production (ounces)	18,483			21,685
Sales (ounces)	18,893			23,716
Feed grade (g/t)	3.12			2.08
Recovery rate (%)	90.9			82.9
Total cost of sales per ounce sold	$	1,507		$	1,342
Co-product cash costs per ounce produced (i)	$	981		$	903
All-in sustaining co-product costs per ounce produced (i)	$	1,147		$	1,185
DDA per ounce sold (ii)	$	531		$	447

Financial (millions of US Dollars)
Revenue	$	25.1		$	30.2
Cost of sales excluding DDA	(18.4		)	(22.1		)
Gross margin excluding DDA	$	6.7		$	8.1
DDA	(10.0		)	(11.0		)
Mine operating loss	$	(3.3	)	$	(2.9	)
Capital expenditures
Sustaining and other	3.1			5.6
Expansionary	2.7			1.3
Exploration	3.9			1.9


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.


(ii)	DDA per ounce is higher as DDA was allocated over a smaller number of ounces compared to the same period in 2017. DDA is comparable to the first quarter in 2017.


(iii)	Beginning January 1, 2018, silver production and related KPIs for Minera Florida no longer meet the minimum significance threshold in accordance with the Company's policy.

Operations at Minera Florida continue to transition from the core mine to the newer high-grade zones, which are expected to provide the foundation for the Company’s longer term strategic production objective of 130,000 oz per year. In the near term, including for 2018, this transition is expected to impact production as efforts are redirected to exploration and mine development activities. This is already reflected in the production guidance for Minera Florida and the first quarter production results reflect this transition. The Company reiterates its 2018 guidance for Minera Florida with production scheduled to be back-end year loaded. Production in the first quarter of 2017 benefited from higher processing rates associated with the processing of tailings.

The first half of 2018 is expected to be heavily focused on the preparation and development of those new areas resulting in higher expected production the second half of the year. As such, production for the quarter was lower than the comparative period of 2017, which resulted in lower revenues.

Compared to the first quarter of 2017, all per unit costs for gold were impacted by the lower production as fixed costs and DDA were allocated over a smaller number of ounces and reflected the impact of the appreciation of the Chilean Peso.

The goals of the 2018 exploration program for Minera Florida are to expand measured, indicated and inferred mineral resources by following up recent success at Las Pataguas, PV Sur, Tribuna Este, Los Patos & Volga, and complete regional program to identify new veins near mine. Infill drilling in the first quarter continued to intercept mineralization at PV Sur, Pataguas and Fantasma while near mine exploration drilling has intercepted mineralization on Don Mario (PV Sur area) and Don Leopoldo (Patagua area). Regional work is ongoing to identify new vein targets for drilling in 2018.

| 17

CERRO MORO, ARGENTINA

Cerro Moro is the Company’s newest high grade underground and open pit gold-silver mine, located in Santa Cruz, Argentina.



	For the three months ended March 31,
(Millions of US Dollars)	2018		2017
Capital expenditures
Sustaining and other	$	—	$	—
Expansionary	47.3		34.5
Exploration	$	1.5	$	0.8

Cerro Moro has been commissioned, and first ore was fed to the ball mill on April 25, 2018. The start up is progressing well with milling rates and feed grades expected to ramp up through the second quarter and with first doré expected in May.

During the first quarter of 2018:


•	The project successfully transitioned from Construction to Commissioning in the first quarter.


•	Cold commissioning of the ball mill was completed in March 2018, and water tests were conducted through all sections of the plant during March and into April.


•	Recruitment, onboarding and training of the operational staff commenced in 2017 and is aligned to the scheduled ramp-up of operations in the second quarter of 2018.


•	Underground and open-pit mining operations continue to track according to plan with the open pit activities in the Escondida Central pit being directed to the stockpiles.


•	Construction expenditures for 2018 totalled $47.3 million year to date. The Company expects the balance of the total planned construction expenditures for 2018 of approximately $61 million to be spent in the first half of 2018. The project remains on budget.

The goals of the 2018 exploration program for Cerro Moro are to continue to expand measured & indicated mineral resources, add inferred mineral resources within the core mine, and develop new targets for 2019 with a surface exploration program. Focus on the first quarter was on discovering new inferred mineral resources, with drilling completed on the Veronica vein and of scout drilling on six other near mine targets. Regional work is ongoing to generate future targets for follow up drilling.

| 18

OTHER MINES

GUALCAMAYO, ARGENTINA

Gualcamayo is an open pit, underground mine using heap leach processing in the province of San Juan, Argentina. As the Company has decided to focus its efforts on assets that are better aligned with its strategic objectives, Gualcamayo has been classified as an asset held for sale.



	For the three months ended March 31,
	2018 (ii)		2017
Ore mined (tonnes)	1,035,855		1,718,595
Waste mined (tonnes)	1,518,733		3,359,433
Ore processed (tonnes)	1,059,400		1,619,544
Gold
Production (ounces)	23,846		37,728
Sales (ounces)	25,867		38,196
Feed grade (g/t)	1.39		1.14
Recovery rate (%)	47.0		57.4
Total cost of sales per gold ounce sold	$	1,393	$	1,152
Co-product cash costs per gold ounce produced (i)	$	923	$	810
All-in sustaining co-product costs per gold ounce produced (i)	$	1,019	$	841


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(ii)	Only $8.7 million of DDA on processed inventory sold during the quarter was recorded. DDA in respect of the period is nil as Gualcamayo is an asset held for sale.

Gold production at Gualcamayo was above expectations. First quarter production reflects the higher grade and lower processing rates, in line with the right-sizing plans at Gualcamayo to deliver a more sustainable production base, better cost structure and to generate a more significant contribution to free cash flows. Production was impacted by a 6-day suspension of operations in order to allow a thorough investigation to be conducted and to deal with employee morale. The investigation included a review of the incident to ensure that employees in similar conditions understand the risk and that the safety controls both exist and are functioning. The cost containment initiatives and the final reduction in headcount were offset by the lower production, which resulted in higher per unit costs for the quarter compared to the first quarter in 2017.

With the depletion of mineable inventory in the near-term, near mine and district exploration prospects require time to explore and potentially develop. In light of this, the Company concluded that the best option was to right-size the operation in an effort to maximize mine cash flows through the remainder of the oxide mineral reserve life. In late 2017, the Company also initiated a plan of sale, which in conjunction with an expression of interest in Gualcamayo satisfied the conditions for the asset held for sale classification. While this course continues to be pursued, on a parallel basis the Company is executing on the right-sizing strategy. This may include an eventual depletion of the oxide resource with a move towards a care and maintenance plan for the asset and further evaluations on a number of prospective oxide targets that are proximal to the mine as well as additional studies on the Deep Carbonate project. If, during the course of 2018, the Company does not receive a sale price that adequately reflects the strategic value of the asset, then the Company would move ahead with the latter options.

The goals of the 2018 exploration program for Gualcamayo are to convert inferred mineral oxide resources to measured and indicated mineral resources and discover new inferred mineral oxide resources proximal to the mine. The majority of the first quarter was spent testing targets with potential to expand current known inferred mineral resources at Target D, Pirrotina and the Sierra Alaya area.

BRIO GOLD, BRAZIL

Brio Gold operates independently with several gold producing, development and exploration stage properties in Brazil. The Company owned 63.0 million common shares of Brio Gold as March 31, 2018, representing in the aggregate approximately 53.6% of the issued and outstanding Brio Gold common shares or approximately 52.8% on a fully diluted basis (refer to Note 4: Divestitures , to the Company's Condensed Consolidated Interim Financial Statements). As discussed below, Brio Gold is a disposal group held for sale.

| 19



	For the three months ended March 31,
	2018		2017
Total gold production from Brio Gold mines (ounces)	46,058		50,539
Attributable to Yamana (ounces) (i)	24,687		41,886
Attributable to non-controlling interest (ounces)	21,371		8,653
Total gold sales (ounces)	46,563		50,235
Brio mines total cost of sales per gold ounce sold	$	1,177	$	1,085
Brio mines co-product cash costs per gold ounce produced (ii)	$	991	$	842
Brio mines all-in sustaining co-product costs per gold ounce produced (ii)(iii)	$	1,224	$	1,057


(i)	Attributable production is determined on a weighted-average basis with respect to ownership of Brio Gold common shares during the period, which for 2018 was a weighted average of 53.6% (March 31, 2017 - 83.1%).


(ii)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Subtotals in Financial Statements of this MD&A.


(iii)	Excludes Brio Gold head-office G&A.

In January 2018, Leagold Mining Corporation provided an indication to make an offer to acquire all of the issued and outstanding shares of Brio Gold on or before February 28, 2018. The Company entered into a support agreement endorsing a transaction with Leagold.

On February 16, 2018, Leagold further announced that it had reached an agreement with Brio Gold under which, the previously announced proposed take-over bid by Leagold will now be completed on a Brio Board-supported basis by way of a statutory plan of arrangement. Under the terms of the transaction, Leagold will acquire all of the outstanding shares of Brio Gold in exchange for i) 0.922 of a Leagold share and ii) 0.4 of a Leagold share purchase warrant (“Leagold Warrant”) for each Brio share outstanding, representing an implied price of C$2.90 per Brio Share. Each Leagold Warrant will entitle the holder thereof to purchase one Leagold share at a price of C$3.70 for a period of two years following completion of the transaction.

On April 12, 2018, Brio Gold's shareholders approved the take-over bid by Leagold. Upon completion of the transaction, and following the recently announced planned equity issue by Leagold, Yamana will own approximately 20.5% of Leagold. The transaction is expected to be completed in the second quarter of 2018.

5. CONSTRUCTION, DEVELOPMENT AND EXPLORATION

CONSTRUCTION AND DEVELOPMENT

The following highlights key updates during the first quarter of 2018, in respect to certain of the Company's development projects.

CHAPADA, BRAZIL

The Company continues to advance its exploration program with the objective of identifying higher-grade copper and gold opportunities that are proximal to the Chapada mine, completing infill drilling of the Sucupira and Baru deposits and advancing district scale targets. Mineralization has been identified along a 15-kilometre trend with numerous prospective areas under consideration for further drilling. An exploration update relating to this will be included with results for the second quarter of 2018. Infill drilling in the Baru area is expected to reduce stripping ratios for the Sucupira deposit and drilling on oxide mineralization, such as Hidrotermalito, brings to bear the potential for heap leaching opportunities. Additionally, there are significant near mine sulphide targets that the Company is pursuing to supplement the existing mine plan. Notwithstanding the focus on the exploration potential to discover higher-grade copper and gold areas, the Company has also advanced numerous projects that are expected to further enhance returns from the Chapada mine.

To this end, the Company has completed studies and evaluations on several of the development opportunities at Chapada. These opportunities range in scope from plant optimization initiatives to enhance copper and gold recoveries, to plant expansions to bring forward cash flows, and pit wall pushbacks to expose higher-grade zones. The completed study work included third party review of capital estimates and the inclusion of a significant contingency. The study results justify progressing the opportunities to the next stage(s) of evaluation and development.

Given the nature of the opportunities, the projects can be considered on their own or as part of a phased development plan. This flexibility in approach allows the Company to balance the maximization of value at Chapada, with the allocation of capital across the broader Company portfolio. Primary, however, is that the Company’s development opportunities are to be managed within the framework of the balance sheet objectives.

The Company is outlining the opportunities, such as how it envisages their phasing, the expected production benefit, estimates for capital expenditures, and approximate timing based on the current level of engineering and logistical factors such as permitting. The Phase 1- Plant

| 20

Optimization Work, as described below, has been approved with associated capital expenditures estimated at $9 million. Engineering is being advanced for Phases 2 and 3, an expansion of the Chapada mill and pushback of the Chapada pit wall to expose higher grade Sucupira ores, respectively. While review of these projects is progressing through the evaluation process, importantly, the Company does not anticipate the allocation of expansionary capital for these projects before 2021.

Based on the work completed to date, the Company estimates the phased plan will provide the foundation to sustain annual production in the range of 100,000 to 110,000 ounces of gold (not including contributions to gold production from identified higher grade areas of Suruca, which is a gold-only ore body) and 150 to 160 million pounds of copper until at least 2034, and represents an opportunity to deliver significant cash flow increases and cash flow returns on invested capital. This represents an increase to the production outlook, as recently disclosed in the Chapada NI 43-101 Technical Report dated March 21, 2018. Further project details are expected to be available in early 2019 with the completion of the Feasibility Study. A development decision for Phase 2 is expected to follow in 2020.

Illustrative Timeline:

Phase 1 - Plant Optimization Work Targeting Further Copper and Gold Recovery Improvements

During prior plant optimization projects in 2016 and 2017, which together have delivered an approximate 4% increase to both gold and copper recoveries, the Company determined that further optimizations would allow for additional gold and copper recovery improvements.

In late 2017 and through the first quarter of 2018, pilot plant flotation tests were conducted at Chapada that indicated scope for an additional 1.5% to 2.0% increase in gold and copper recoveries with the increase achievable through modifications to the cleaner tailings stream and the addition of new cells in the rougher/scavenger circuit. The Company plans to start the implementation of the Phase 1 - Plant Optimization Work in 2018 with completion expected by the second quarter of 2019. Expansionary capital is estimated at $9 million.

Phase 2 - Plant Expansion

Studies have been completed on expanding the Chapada processing plant capacity up to 32 million tonnes per annum (“Mtpa”) from the current capacity of 23 Mtpa. These studies concluded that higher throughput can be achieved with the current flotation feed size of approximately 280 microns via the installation of the following new equipment: an additional ball mill, high pressure grinding rolls (HPGR), a pebble crushing circuit, an additional Vertimill and additional cells in the flotation circuit.

The expansion of the mineral resource inventory in 2017, the realized and further expected improvements to gold and copper recoveries via Phase 1, and the inclusion of the existing and growing low-grade ore stockpiles for which recovery improvements also apply were factored into the analysis for the plant expansion. At year-end 2017, the low-grade stockpiles totalled 88 million tonnes with grades estimated at 0.23% copper and 0.17 g/t gold.

| 21

A feasibility study has been initiated for the Phase 2 plant expansion and is expected to be completed in early 2019. Expansionary capital for the plant expansion is currently estimated at approximately $140 million (which includes a significant contingency), with no significant expenditures expected before 2021 as suggested on the illustrative timeline.

Phase 3 - Pit Wall Pushback to Access Sucupira

Current production at Chapada is sourced entirely from the main Chapada area, which includes the Corpo Principal, Cava Norte, and Corpo Sul pits. Future production is also expected to include the Sucupira deposit for which 46 million tonnes of Proven and Probable mineral reserves grading 0.27 g/t gold and 0.31% copper were included with the year-end 2017 mineral resource statement. The Company is evaluating opportunities to access additional higher-grade mineralization from Sucupira via a series of pushbacks on the north wall of the Chapada pit. This plan contemplates an additional 43 million tonnes of Sucupira mineralization grading 0.24 g/t gold and 0.36% copper. While the series of pushbacks necessitate the movement of certain surface infrastructure, importantly, the expansion does not require significant fleet additions as mining rates already exceed plant capacity. A feasibility study for Phase 3 is scheduled for completion in 2019. Based on current studies and the illustrative timeline, expected capital for the relocation of certain surface infrastructure is estimated at approximately $100 million with spending expected from 2024 to 2025. The first delivery of ore from Sucupira to the Chapada plant is expected in 2026, subject to positive feasibility study and a decision to proceed in 2023.

Suruca - Gold-Only Oxide and Sulphide Development Opportunity

Concurrent with the multi-phase plan for Chapada, development of the gold-only Suruca oxides is being evaluated as a standalone heap leach operation for which a feasibility study has been completed, and separately as part of an integrated plan with the sulphide mineralization. The integrated scenario includes processing of the oxides through a heap leach and processing of the gold-only sulphides through a CIL plant. Evaluation of the integrated option is progressing, including an exploration program designed to test known extensions of the sulphide mineralization. The Company expects to continue this exploration program through 2019. Results from the 2017 program and initial drilling as part of the 2018 program are showing extensions of the sulphide deposit to the west and in select, previously undrilled areas along the east flank of the deposit.

Under evaluation is a CIL plant with processing capacity of 8,000 tonnes per day (“tpd”) up to 13,000 tpd, which would add meaningfully to gold production in the broader Chapada complex. Suruca, either the standalone oxide or sulphide ore bodies, or the integrated scenario, is under consideration as a gold-only opportunity independently of the other opportunities at the main Chapada operations.

CANADIAN MALARTIC (50% interest), CANADA

The Canadian Malartic Extension Project is continuing according to plan and on budget. Expansionary capital expenditures for the mine extension in 2018 are forecast to be approximately $37.0 million (on a 50% basis). During the first quarter of 2018, a temporary bridge was completed, overload (new road bed foundation) preparation continued and backfill of the historically mined Buckshot pit was essentially completed. Production activities at Barnat are scheduled to begin in late 2019.

OTHER OPTIMIZATION AND MONETIZATION INITIATIVES

A number of project re-evaluations are underway with a goal of surfacing value from non-strategic or non-producing assets including Agua Rica, Suyai, La Pepa and Don Sixto, all of which have well-defined delineated mineral reserves and/or mineral resources. Notable progress relating to some of these initiatives include, but are not limited to the following:

AGUA RICA, ARGENTINA

The Company continues to advance its alternatives for the development of the Agua Rica project. These alternatives include technical work and analysis for project development options for Agua Rica, as well as the review and consideration of various strategic alternatives all in an effort to maximize value. In terms of the technical reviews, considerable effort has been undertaken to advance the two development scenarios, one a large-scale open pit integrated operation and the other a smaller scale standalone operation. The large-scale open pit scenario contemplates an integration with the neighboring Alumbrera mine in which the Company holds a 12.5% interest. Under this scenario, the Company projects a mine life in excess of 22 years at average annual production levels of approximately 440 million pounds of copper, 109 thousand ounces of gold, 14 million pounds of molybdenum and 1.6 million ounces of silver for the first 10 years post ramp up. The smaller scale standalone scenarios being considered include an open pit mine, and underground mine and a combined open pit and underground mine. The underground scenario employs the application of sub-level caving. For this scenario, based on conceptual level studies, the Company currently projects a mine life in excess of 28 years at average annual production levels of approximately 149 million pounds of copper, 43 thousand ounces of gold,

| 22

3.9 million pounds of molybdenum and 363 thousand ounces of silver for the first 10 years post ramp up. A feasibility study update was completed for the open pit scenario in 2016 and, as such, this scenario is technically advanced and development ready. Technical studies continue to advance the lower throughput standalone scenarios towards completion of a preliminary economic assessment in 2018 and a pre-feasibility study in 2019. These studies will be completed concurrently with the review of the various strategic alternatives. The Company sees the lower throughput standalone scenario as a compelling development opportunity, notably on account of the marked decrease in development capital while still maintaining the longer term optionality for a large-scale open pit operation in due course.

AGUA DE LA FALDA, CHILE ( 56.7% )

The Company continues to pursue strategic and monetization initiatives for the 56.7% held Agua De La Falda joint venture with Codelco, located in northern Chile. The historical Jeronimo Feasibility Study focused on maximizing production from the sulfide deposits. The Company completed the study of a low capital start-up project based on the remaining oxide inventory with positive results, and is evaluating exploration plans on the highly prospective claims surrounding the mine. Agua De La Falda has installed processing capacity and infrastructure.

EXPLORATION

Exploration on the most prospective properties is a key to unlocking and creating value for shareholders. The 2018 exploration program focuses on finding higher quality ounces, improving mine grade and generating additional cash flow, infill drilling to replace production by upgrading existing mineral resources and exploring the Yamana property portfolio for new exploration targets. For exploration updates relating to operating mines during the year, refer to Section 4: Operating Segments Performance of this MD&A. The following is a summary of the exploration and evaluation expenditures for the current and comparative periods:



	For the three months ended March 31,
(In millions of US Dollars)	2018		2017
Exploration and evaluation capitalized (i)	$	16.8	$	17.5
Exploration and evaluation expensed (ii)	3.8		4.0
Total exploration and evaluation expenditures	$	20.6	$	21.5


(i)	Capitalized exploration and evaluation costs are reflected in property, plant and equipment in the Condensed Consolidated Interim Balance Sheets as part of the additions to mining property costs not subject to depreciation for near-mine exploration and tangible exploration and evaluation assets with probable future economic benefits.


(ii)	Expensed exploration and evaluation costs are reported in the Condensed Consolidated Interim Statements of Operations for the period.

| 23

6. FINANCIAL CONDITION AND LIQUIDITY

BALANCE SHEET REVIEW



As at, (In millions of US dollars)	March 31, 2018			December 31, 2017
Cash and cash equivalents	$	129.3		$	148.9
Current assets	906.4			839.4
Non-current assets	7,436.0			7,923.9
Total assets	$	8,342.4		$	8,763.3
Current liabilities (excluding current portion of debt)	685.5			670.7
Non-current liabilities (excluding long-term debt)	1,791.1			1,787.6
Debt (current and long-term)	1,674.6			1,857.7
Total liabilities	$	4,151.2		$	4,316.0
Total shareholders' equity	4,134.7			4,313.4
Non-controlling interests	(17.2		)	133.9
Total equity	$	4,117.5		$	4,447.3

Working capital (i)	$	110.9		$	58.7
Net debt (ii)	$	1,545.3		$	1,708.8


(i)	Working capital is defined as the excess of current assets over current liabilities, which includes the current portion of long-term debt and assets and liabilities held for sale.


(ii)	A cautionary note regarding non-GAAP financial measures and their respective reconciliations, as well as additional subtotals in financial statements is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.

Total assets were $8.3 billion as at March 31, 2018, 5% lower than as at December 31, 2017, primarily attributable to assets sold during the period partly offset by amounts capitalized in the period arising from the ongoing construction of the Cerro Moro mine in Argentina. The Company’s asset base is primarily comprised of non-current assets such as property, plant and equipment and goodwill, reflecting the capital intensive nature of the mining business and previous growth through acquisitions. Other significant assets include inventories, indirect taxes recoverable (consisting of value added taxes in the jurisdictions in which the Company operates), advances and deposits, and cash and cash equivalents.

Total liabilities as at March 31, 2018 were $4.2 billion , lower by 4% from December 31, 2017, primarily attributable to lower debt.

Cash and cash equivalents were $129.3 million as at March 31, 2018 , compared to $148.9 million as at December 31, 2017 . The sources and uses of cash during the first quarter of 2018 are explained below. Working capital was $110.9 million as at March 31, 2018 , compared to $58.7 million as at December 31, 2017 . Notable movements in working capital from December 31, 2017 include decreases resulting from the repayment of trade payables and income taxes payable mainly related to the Brazilian Tax Matters and timing of tax payments. These are partly offset by lower inventory and trade receivable balances compared to the same period in 2017. The Company notes that it has $114.9 million in stockpile inventory, currently classified as Property, Plant and Equipment, as it is not expected to be processed within one year, but is readily available for processing. As aforementioned, the Company expects its net cash position and working capital to increase in 2018.

Total debt was $ 1.67 billion (excluding Brio Gold, an asset held for sale) as at March 31, 2018 , compared to $ 1.86 billion as at December 31, 2017 . Net debt as at March 31, 2018 was $1.55 billion or 10% lower, compared to $1.71 billion as at December 31, 2017 . The Company's debt maturity profile reflects small amounts of near term maturities and an extended weighted average tenor of debt. Following the early redemption of the 2019 notes and the 2018 maturities, the Company's next scheduled maturity fixed rate debt is not until March 2020. Based on its current credit rating, the Company expects that it can refinance the existing long-term debt in similar or more favourable terms to support the execution of the Company's business strategy.

LIQUIDITY

Management is of the view that planned growth, development activities, expenditures and commitments will be sufficiently funded by working capital, recent monetization and financing transactions, future operating cash flows and available credit facilities.

As at March 31, 2018, the financial resources available to the Company in meeting its financial obligations include its positive working capital as noted above and $827.8 million from its revolving credit facility. The Company will, from time to time, repay balances outstanding on its revolving credit with operating cash flow and cash flow from other sources. Additionally, the Company intends to renew the credit facility either before or upon maturity in 2021.

| 24

For the three months ended March 31, 2018 , cash flows from operating activities were $122.4 million and are expected to remain positive and increase in the foreseeable future. The Company expects its cash flows from operations will increase organically, subject to prevailing metal prices, in the following quarters. Refer to Section 7: Economic Trends, Business Risks and Uncertainties of this MD&A for a detailed discussion of market price risk. Consistent with previous years, cash flows and working capital in the first quarter are the lowest due to cyclical factors, such as the seasonal impact on production during the rainy season early in the year, incremental production ramp-up and settlement of year-end accruals and payables.

The Company’s near-term financial obligations include repayment obligations within one year of long-term debt of $36.0 million , construction and service contract commitments of $542.8 million and sustaining capital expenditures of approximately $130 million in 2018. The Company’s expansionary and exploration capital expenditures are discretionary which allow management a reasonable degree of flexibility in managing its financial resources. Further information with regards to ongoing sustaining capital expenditures can be found in the Section 1: Highlights and Relevant Updates of this MD&A and commitments by year can be found below.

The Company's continuous commitment to balance sheet and cost improvement will further strengthen its financial position, and is highlighted by the following initiatives completed during 2017 or expected in 2018:


•	The completion of the previously announced sale of its 50% indirect interest in certain jointly owned exploration properties of the Canadian Malartic Corporation for cash proceeds of $162.5 million;


•	The early redemption of $181.5 million of the 6.97% senior notes due December 2019, which extended the tenor of the Company's fixed term profile at lower average interest rates and improved financial flexibility.


•	The receipt of $125.0 million from the copper advanced sales program in exchange for approximately 40.3 million pounds of copper to be delivered in the second half of 2018 and first half of 2019.

•

Although the Brio transaction does not bring immediate cash, the investment in the combined entity will create an impressive mid-tier gold producer with assets in two excellent jurisdictions, a strong production platform, built-in potential for growth and a proven management team well positioned to deliver future value increases. Following the one year hold period, this investment provides the Company with a significant monetization potential.


•	Pursuing alternatives to maximize value at Gualcamayo, in parallel with advancing monetization efforts.

Additionally, through the planned completion of the Cerro Moro mine resulting in lower capital expenditures and expected step-change in cash flow beginning in 2018, the Company is well-positioned to drive reduction in net debt and manage its debt repayments.

SOURCES AND USES OF CASH

The following table summarizes cash inflows and outflows for the following periods:



	For the three months ended March 31,
(In millions of US Dollars)	2018			2017
Cash flows from operating activities	$	122.4		$	51.3
Cash flows from operating activities before net change in working capital (i)	$	206.4		$	117.2
Cash flows from/(used in) investing activities	$	14.7		$	(128.8	)
Cash flows (used in)/from financing activities	$	(142.5	)	$	85.2


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 10: Non-GAAP Financial Measures and Additional Subtotals in Financial Statements of this MD&A.

Operating Activities

Cash flows from operating activities before net change in working capital for the three months ended March 31, 2018 were $206.4 million , compared to $117.2 million for the three months ended March 31, 2017 . The increase is related to advanced payments of $127.8 million received on metal purchase agreements, compared to the prior year, partly offset by higher tax payments including those related to the Brazil Tax Matters of $67.9 million . The most notable movement in net change in working capital is a decrease in trade and other payables due to the timing of payments during the year.

| 25

Investing Activities

Cash flows from investing activities were $14.7 million for the three months ended March 31, 2018 , compared to outflows of $128.8 million for the three months ended March 31, 2017 . The net cash inflows resulted from the cash proceeds on the disposition of the Canadian exploration properties, partly offset by additional capital expenditures mainly from the continued development of Cerro Moro and Canadian Malartic. Total capital expenditures for the three months ended March 31, 2018 , were $131.8 million , compared to capital expenditures of $129.4 million , for the same period in 2017. Acquisition of property plant and equipment includes $9.4 million in long-term stockpile additions at Chapada and Canadian Malartic of $8.6 million.

Financing Activities

Cash flows used in financing activities were outflows of $142.5 million for three months ended March 31, 2018 , compared to inflows of $85.2 million for three months ended March 31, 2017 . Cash flows used in financing activities arose from the net repayment of debt in the current period, compared to net proceeds in the same period of 2017.

CAPITAL RESOURCES

The capital of the Company consists of items included in shareholders’ equity, and debt obligations net of cash and cash equivalents as follows:



As at (In millions of US dollars)	March 31, 2018			December 31, 2017
Shareholders’ equity	$	4,117.5		$	4,447.3
Debt	$	1,674.6		$	1,857.7
	5,792.1			6,305.0
Less: Cash and cash equivalents	$	(129.3	)	$	(148.9	)
	5,662.8			6,156.1

In order to maintain or adjust its capital structure, the Company, upon approval from its Board of Directors, may issue shares, pay dividends, or undertake other activities as deemed appropriate under the specific circumstances.

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments. The following table summarizes the remaining contractual maturities of the Company’s financial liabilities, and operating and capital commitments at March 31, 2018, shown on an undiscounted basis:



(In millions of US Dollars)	Within 1 year		Years 2 and 3		Years 4 and 5		After 5 years		Total (ii)
Mine operating/construction and service contracts and other	$	542.8	$	544.9	$	127.8	$	0.7	$	1,216.2
Long-term debt principal repayments (i)	36.0		85.9		367.7		1,196.9		1,686.5
Decommissioning, restoration and similar liabilities	12.1		35.7		75.8		451.5		575.1
	$	590.9	$	666.5	$	571.3	$	1,649.1	$	3,477.8


(i)	Excludes interest expense.


(ii)	Additionally, as at March 31, 2018, the Company had outstanding letters of credit in the amount of $18.7 million (C$25.1 million) representing guarantees for reclamation obligations relating to the Company’s share of mining interest in Canadian Malartic.

OUTSTANDING SHARE DATA

The Company is authorized to issue an unlimited number of common shares at no par value and a maximum of eight million first preference shares. There are no first preference shares issued or outstanding. The table below summarizes the Company's common shares and securities convertible into common shares as at the following dates:

| 26



As at	April 30, 2018	March 31, 2018
Common shares issued and outstanding	948,892	948,858
Share options outstanding	1,828	1,828
Restricted share units	2,684	2,680

7. ECONOMIC TRENDS, BUSINESS RISKS AND UNCERTAINTIES

Exploration, development and mining of precious metals involve numerous risks as a result of the inherent nature of the business and global economic trends that could have a significant impact on its profitability and levels of operating cash flows.

The Company manages its exposure to these risks in accordance with its Risk Management Policy. Readers are also encouraged to read and consider the risk factors and related uncertainties in the Company’s Annual Information and Annual Management Discussion and Analysis for the year ended December 31, 2017. Such risk factors could materially affect the future operating results of the Company and could cause actual events to differ materially from those described in forward-looking statements. There were no significant changes to those risks or to the Company's management of exposure during the three months ended March 31, 2018, except as noted below:

METAL PRICE RISK

Gold Price Two-Year Trend ( LBMA p.m. price: USD per ounce of gold) Copper Price Two-Year Trend ( LME Cash: USD per pound of copper)

Gold Price - Market Update

For the quarter ended March 31, 2018, spot gold prices averaged $1,330 per ounce, representing an increase of 8% , compared to $1,219 per ounce in the first quarter of 2017. Prices ranged between $1,308 and $1,355 per ounce during the first quarter of 2018.

Gold prices were supported above $1,300 per ounce during the first quarter, benefiting from the cross currents affecting global markets including trade war concerns and equity market uncertainty. Gold prices sold off in anticipation of Federal Open Market Committee (“FOMC”) meeting before ramping up towards the end of the quarter. The US Federal Reserve (“US Fed”) increased the US Fed Funds rate by 0.25% in March, as expected, and indicated two additional increases in 2018. In the short-term, gold prices will likely be driven by the changing sentiment as to the monetary policy path of the US Fed, increased rhetoric over tariffs, and equity market performance.

Other central banks have also begun to tighten monetary policy and while higher interest rates and inflationary pressures may weigh on gold, the prospect of other central banks increasing rates should temper US Dollar strength. The amount of global debt added over the past several years is significant and the prospect of rising global interest rates may pose refinancing challenges and this may prove to be supportive for gold. Global ETF holdings are edging higher and other central banks continue to be net buyers with Russia and Kazakhstan being the most notable.

Copper Price - Market Update

For the quarter ended March 31, 2018, spot copper prices averaged $3.16 per pound, representing an increase of 19% , compared to $2.65 per pound in the first quarter of 2017 . Prices ranged between $2.97 and $3.26 per pound in the first quarter of 2018.

Copper prices moved lower in the first quarter after peaking in the fourth quarter of 2017. Concerns about trade wars, higher US interest rates and a stronger dollar weighed on industrial metals during the quarter. Copper prices should be supported as the market is moving towards balance with supply growth slowing as fewer new mines are expected to begin operations over the medium term.

| 27

The Company currently uses forward and option contracts to economically hedge against the risk of declining copper prices for a portion of its forecast copper concentrate sales. As at March 31, 2018, the Company had 26.8 million pounds of copper forward contracts in place to August 2018 at an average sales price of $3.13 per pound. The Company also had 22.5 million pounds of copper option contracts for production in the second quarter of 2018, which provide a minimum price of $2.85 per pound and a maximum price of $3.33 per pound. This production represents approximately seventy-five per cent of planned copper production in the period of the copper option contracts.

CURRENCY RISK

US Dollar - Market Update

The following summarizes the movement in key currencies vis-à-vis the US Dollar (source: Bloomberg ):

The Canadian Dollar, Chilean Peso and the Brazilian Real strengthened against the US Dollar during the quarter ended March 31, 2018, while the Argentine Peso weakened. The US Fed increased the Fed Funds rate by 0.25% in March and indicated that they expect two additional increases during 2018. However, this will be dependent on economic growth and with other central banks beginning to increase rates this could lead to a weaker US Dollar.



	For the three months ended March 31,
	2018	2017	% (i)
Average Exchange Rate
USD-CAD	1.2651	1.3239	-4.4	%
USD-BRL	3.245	3.1402	3.3	%
USD-ARG	19.7062	15.6642	25.8	%
USD-CLP	602.03	655.68	-8.2	%



	March 31, 2018	March 31, 2017	% (i)		December 31, 2017	% (i)
Period-end Exchange Rate
USD-CAD	1.2884	1.3318	-3.3	%	1.2571	2.5	%
USD-BRL	3.3063	3.1220	5.9	%	3.3085	-0.1	%
USD-ARG	20.1402	15.3875	30.9	%	18.6232	8.1	%
USD-CLP	604.73	660.17	-8.4	%	615.44	-1.7	%


(i)	Positive variance represents the US Dollar increase in value relative to the foreign currency.

As at March 31, 2018, the Company had zero-cost collar contracts totalling R$450 million (R$ = Brazilian Reais) evenly split by month from April 2018 to June 2019 with Brazilian Real to US Dollar average call and put strike prices of R$3.15 and R$3.47 per US Dollar, respectively, allowing the Company to participate in exchange rate movements between those two strikes. The Company also had forward contracts totalling C$45 million (C$ = Canadian Dollars) evenly split by month from April 2018 to December 2018 with Canadian Dollar to US Dollar forward rates of C$1.25 per US Dollar.

| 28

8. CONTINGENCIES

Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. Certain conditions may exist as of the date the Consolidated Financial Statements are issued that may result in a loss to the Company, but which will be resolved only when one or more future events occur or fail to occur. The impact of any resulting loss from such matters affecting the Consolidated Financial Statements of the Company may be material.

Canadian Malartic

On August 2, 2016, Canadian Malartic General Partnership (“CMGP”), a general partnership jointly owned by the Company and Agnico Eagle Mines Limited (the "Partnership"), was served with a class action lawsuit with respect to allegations involving the Canadian Malartic mine. The complaint is in respect of "neighbourhood annoyances" arising from dust, noise, vibrations and blasts at the mine. The plaintiffs are seeking damages in an unspecified amount as well as punitive damages in the amount of $20 million. The class action was certified in May 2017. In November 2017, a declaratory judgment was issued allowing the Partnership to settle individually with class members for 2017. The plaintiffs have since announced that they intend to file an application for leave to appeal this declaratory judgment. On December 11, 2017, hearings were completed in respect of certain preliminary matters, including the Partnership's application for partial dismissal of the class action. The Company and the Partnership will take all necessary steps to defend themselves from this lawsuit.

On August 15, 2016, the Partnership received notice of an application for injunction relating to the Canadian Malartic mine, which had been filed under the Environment Quality Act (Quebec). A hearing related to an interlocutory injunction was completed on March 17, 2017 and a decision of the Superior Court of Quebec dismissed the injunction. An application for permanent injunction is currently pending. The Company and the Partnership have reviewed the injunction request, consider the request without merit and will take all reasonable steps to defend against this injunction. These measures include a motion for the dismissal of the application for injunction, which has been filed and will be heard at a date to be determined. While at this time the potential impacts of the injunction cannot be definitively determined, the Company expects that if the injunction were to be granted, there would be a negative impact on the operations of the Canadian Malartic mine, which could include a reduction in production.

On June 1, 2017, the Partnership was served with an application for judicial review to obtain the annulment of a governmental decree. The Partnership is an impleaded party in the proceedings. The applicant seeks to obtain the annulment of a decree authorizing the expansion of the Canadian Malartic mine. The Company and the Partnership have reviewed the application for judicial review, consider the application without merit and will take all reasonable steps to defend against this application. The hearing on the merits is scheduled to take place in October 2018. While the Company believes it is highly unlikely that the annulment will be granted, the Company expects that if the annulment were to be granted, there would be a negative impact on the operations of the Canadian Malartic mine, which could include a reduction in anticipated future production.

For additional information refer to the latest available Company's Annual Information Form.

9. CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company's Condensed Consolidated Interim Financial Statements are prepared in accordance with IAS 34 Interim Financial Reporting ("IAS 34"). The significant accounting policies applied and recent accounting pronouncements are described in Note 3 and Note 5 to the Company's Consolidated Annual Financial Statements for the year ended December 31, 2017 and in Note 3: Recent Accounting Pronouncements to the Company's Condensed Consolidated Interim Financial Statements.

In preparing the Condensed Consolidated Interim Financial Statements in accordance with IAS 34, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses for the period. Critical accounting estimates represent estimates that are uncertain and for which changes in those estimates could materially impact the Company's Condensed Consolidated Interim Financial Statements. Actual future outcomes may differ from present estimates. Management reviews its estimates and assumptions on an ongoing basis using the most current information available.

The critical judgments and key sources of estimation uncertainties in the application of accounting policies during the quarter ended March 31, 2018 are consistent with those disclosed in Note 4: Critical Judgements and Estimation Uncertainties to the Company's Consolidated Annual

| 29

Financial Statements for the year ended December 31, 2017, except as noted below (Details of these new requirements as well as their impact on the Company’s Consolidated Financial Statements are described in Note 3: Recent Accounting Pronouncements to the Company's Condensed Consolidated Interim Financial Statements):

IFRS 15 Revenue from Contract with Customers ("IFRS 15")

On January 1, 2018, the Company adopted IFRS 15 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. The cumulative effect of initially applying IFRS 15 has been recognized as an adjustment to the opening deficit at January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under IFRS 15, while prior period amounts have not been restated and continue to be reported under the accounting standards in effect for those periods. The Company expects the impact of the adoption of IFRS 15 to be immaterial to net earnings on an ongoing basis.

IFRS 9 Financial Instruments ("IFRS 9")

On January 1, 2018, the Company adopted IFRS 9 (2014). IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated in the Condensed Consolidated Interim Financial Statements, with the exception of certain aspects of hedge accounting.

10. NON-GAAP FINANCIAL MEASURES AND ADDITIONAL SUBTOTALS IN FINANCIAL STATEMENTS

The Company has included certain non-GAAP financial measures to supplement its Condensed Consolidated Interim Financial Statements, which are presented in accordance with IFRS, including the following:


•	Cash costs per ounce of gold produced on a co-product and by-product basis;


•	Cash costs per ounce of silver produced on a co-product and by-product basis;


•	Co-product cash costs per pound of copper produced;


•	All-in sustaining costs per ounce of gold produced on a co-product and by-product basis;


•	All-in sustaining costs per ounce of silver produced on a co-product and by-product basis;


•	All-in sustaining co-product costs per pound of copper produced;


•	Net debt;


•	Net free cash flow;


•	Average realized price per ounce of gold sold;


•	Average realized price per ounce of silver sold; and


•	Average realized price per pound of copper sold.

The Company believes that these measures, 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. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.

For definitions and descriptions of the non-GAAP measures reconciled below and additional subtotals in financial statements, refer to Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of the Company's MD&A for the year ended December 31, 2017.

CASH COSTS AND ALL-IN SUSTAINING COSTS

Beginning January 1, 2018, silver production and related KPIs for Chapada and Minera Florida no longer meet the minimum significance threshold in accordance with the Company's policy.

| 30


i)	Reconciliation of Cost of Sales per the Consolidated Financial Statements to Co-Product Cash Costs and Co-Product AISC, and By-Product Cash Costs and By-Product AISC:



Co-product Cash Cost & AISC	For the three months ended March 31, 2018												For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total (incl. Brio Gold)			Total Gold (incl. Brio Gold)			Total Silver (vi) (vii)			Total Copper			Total (incl. Brio Gold)			Total Gold (incl. Brio Gold)			Total Silver (vi) (vii)			Total Copper
Cost of sales excluding DDA (i)	$	259.2		$	206.6		$	10.2		$	42.4		$	238.0		$	186.5		$	11.6		$	39.9
DDA	104.1			89.7			4.6			9.8			105.9			95.3			5.0			5.6
Total cost of sales	$	363.3		$	296.3		$	14.8		$	52.2		$	343.9		$	281.8		$	16.6		$	45.5
DDA	(104.1		)	(89.7		)	(4.6		)	(9.8		)	(105.9		)	(95.3		)	(5.0		)	(5.6		)
Inventory movement	(8.9		)	(6.6		)	(0.5		)	(1.8		)	7.3			3.9			(0.4		)	3.8
Treatment and refining charges (ii)	9.2			1.3			—			7.9			7.8			1.1			—			6.7
Commercial and other costs	(0.3		)	(0.1		)	—			(0.2		)	(1.9		)	(0.4		)	—			(1.5		)
Overseas freight for Chapada Conc.	(2.9		)	(0.6		)	—			(2.3		)	(2.2		)	(0.4		)	—			(1.8		)
Total co-product cash cost	$	256.3		$	200.6		$	9.7		$	46.0		$	249.0		$	190.7		$	11.2		$	47.1
G&A, excl., shared-based compensation (iii)	19.8			18.8			0.8			0.2			21.7			17.4			0.9			3.4
Sustaining capital expenditures (iv)	39.7			34.4			1.7			3.6			51.1			38.9			3.1			9.1
Exploration and evaluation expense (iii)	3.0			2.6			0.1			0.3			4.1			3.1			0.2			0.8
Total co-product AISC	$	318.8		$	256.4		$	12.3		$	50.1		$	325.9		$	250.1		$	15.4		$	60.4
Commercial oz and lb produced				269,458			899,261			30,396,585						266,186			1,079,108			26,519,865
Commercial oz and lb sold				270,931			973,257			30,252,861						267,916			1,093,897			25,203,607
Cost of sales excl. DDA per oz and lb sold				$	763		$	10.51		$	1.40					$	696		$	10.57		$	1.58
DDA per oz and lb sold				$	331		$	4.68		$	0.33					$	356		$	4.57		$	0.22
Total cost of sales per oz and lb sold				$	1,094		$	15.20		$	1.73					$	1,052		$	15.14		$	1.79
Co-product cash cost per oz and lb produced				$	745		$	10.88		$	1.51					$	716		$	10.36		$	1.78
Co-product AISC per oz and lb produced				$	952		$	13.83		$	1.65					$	940		$	14.24		$	2.13

| 31



Co-product Cash Cost & AISC	For the three months ended March 31, 2018									For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Chapada Total (vii)			Chapada Gold			Chapada Copper			Chapada Total			Chapada Gold			Chapada Silver		Chapada Copper
Cost of sales excluding DDA (i)	$	51.6		$	9.2		$	42.4		$	48.7		$	8.6		$	0.2	$	39.9
DDA	11.7			2.3			9.4			6.6			1.3			—		5.3
Total cost of sales	$	63.3		$	11.5		$	51.8		$	55.3		$	9.9		$	0.2	$	45.2
DDA	(11.7		)	(2.3		)	(9.4		)	(6.6		)	(1.3		)	—		(5.3		)
Inventory movement	(2.2		)	(0.4		)	(1.8		)	4.7			0.9			—		3.8
Treatment and refining charges (ii)	9.2			1.3			7.9			7.8			1.1			—		6.7
Commercial and other costs	(0.3		)	(0.1		)	(0.2		)	(1.9		)	(0.4		)	—		(1.5		)
Overseas freight for Chapada Conc.	(2.9		)	(0.6		)	(2.3		)	(2.2		)	(0.4		)	—		(1.8		)
Total co-product cash cost	$	55.4		$	9.4		$	46.0		$	57.1		$	9.8		$	0.2	$	47.1
G&A, excl., shared-based compensation (iii)	0.3			0.1			0.2			0.1			—			—		0.1
Sustaining capital expenditures (iv)	4.5			0.9			3.6			11.2			2.2			—		9.0
Exploration and evaluation expense (iii)	0.4			0.1			0.3			0.4			0.1			—		0.3
Total co-product AISC	$	60.6		$	10.5		$	50.1		$	68.8		$	12.1		$	0.2	$	56.5
Commercial oz and lb produced				22,753			30,396,585						19,089			55,926		26,519,865
Commercial oz and lb sold				23,643			30,252,861						21,406			23,859		25,203,607
Cost of sales excl. DDA per oz and lb sold				$	389		$	1.40					$	401		$	7.33	$	1.58
DDA per oz and lb sold				$	99		$	0.31					$	61		$	1.12	$	0.21
Total cost of sales per oz and lb sold				$	488		$	1.71					$	462		$	8.45	$	1.79
Co-product cash cost per oz and lb produced				$	416		$	1.51					$	514		$	3.69	$	1.78
Co-product AISC per oz and lb produced				$	462		$	1.65					$	634		$	4.53	$	2.13



Co-product Cash Cost & AISC	For the three months ended March 31, 2018												For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	El Peñón Total			El Peñón Gold			El Peñón Silver			Malartic Gold			El Peñón Total			El Peñón Gold			El Peñón Silver			Malartic Gold
Cost of sales excluding DDA (i)	$	46.4		$	36.2		$	10.2		$	47.8		$	37.1		$	26.6		$	10.5		$	36.5
DDA	20.8			16.3			4.5			30.9			15.8			11.3			4.5			31.8
Total cost of sales	$	67.2		$	52.5		$	14.7		$	78.7		$	52.9		$	37.9		$	15.0		$	68.3
DDA	(20.8		)	(16.3		)	(4.5		)	(30.9		)	(15.8		)	(11.3		)	(4.5		)	(31.8		)
Inventory movement	(2.9		)	(2.4		)	(0.5		)	(0.6		)	(1.3		)	(0.9		)	(0.4		)	3.2
Total co-product cash cost	$	43.5		$	33.8		$	9.7		$	47.2		$	35.8		$	25.7		$	10.1		$	39.7
G&A, excl., shared-based compensation (iii)	—			—			—			1.1			—			—			—			1.2
Sustaining capital expenditures (iv)	7.6			5.9			1.7			14.0			9.8			7.0			2.8			10.1
Exploration and evaluation expense (iii)	—			—			—			—			0.3			0.2			0.1			0.1
Total co-product AISC	$	51.1		$	39.7		$	11.4		$	62.3		$	45.9		$	32.9		$	13.0		$	51.1
Commercial oz produced				40,391			899,261			83,403						33,637			960,820			71,382
Commercial oz sold				41,349			973,257			81,117						34,564			998,460			66,543
Cost of sales excl. DDA per oz sold				$	876		$	10.51		$	590					$	770		$	10.56		$	548
DDA per oz sold				$	394		$	4.60		$	381					$	327		$	4.47		$	479
Total cost of sales per oz sold				$	1,270		$	15.11		$	970					$	1,097		$	15.03		$	1,027
Co-product cash cost per oz produced				$	837		$	10.88		$	567					$	763		$	10.58		$	556
Co-product AISC per oz produced				$	984		$	12.81		$	748					$	977		$	13.55		$	716

| 32



Co-product Cash Cost & AISC	For the three months ended March 31, 2018						For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Gualcamayo Gold			Minera Florida Gold (vii)			Gualcamayo Gold			Minera Florida Total			Minera Florida Gold			Minera Florida Silver
Cost of sales excluding DDA (i)	$	22.6		$	18.4		$	29.9		$	22.0		$	21.2		$	0.8
DDA	13.4			10.0			14.1			11.0			10.6			0.4
Total cost of sales	$	36.0		$	28.4		$	44.0		$	33.0		$	31.8		$	1.2
DDA	(13.4		)	(10.0		)	(14.1		)	(11.0		)	(10.6		)	(0.4		)
Inventory movement	(0.6		)	(0.3		)	0.7			(1.2		)	(1.2		)	—
Total co-product cash cost	$	22.0		$	18.1		$	30.6		$	20.8		$	20.0		$	0.8
G&A, excl., shared-based compensation (iii)	—			—			(0.1		)	—			—			—
Sustaining capital expenditures (iv)	2.3			3.1			1.2			5.6			5.4			0.2
Exploration and evaluation expense (iii)	—			—			—			0.4			0.4			—
Total co-product AISC	$	24.3		$	21.2		$	31.7		$	26.8		$	25.8		$	1.0
Commercial oz produced	23,846			18,483			37,728						21,685			62,362
Commercial oz sold	25,867			18,893			38,196						23,716			71,578
Cost of sales excl. DDA per oz sold	$	875		$	976		$	783					$	895		$	11.84
DDA per oz sold	$	518		$	531		$	369					$	447		$	5.87
Total cost of sales per oz sold	$	1,393		$	1,507		$	1,152					$	1,342		$	17.71
Co-product cash cost per oz produced	$	923		$	981		$	810					$	925		$	12.85
Co-product AISC per oz produced	$	1,019		$	1,147		$	841					$	1,195		$	16.78



Co-product Cash Cost & AISC	For the three months ended March 31, 2018												For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Jacobina Gold			Brio Total			Corp. Office & Other Total			Corp. Office & Other Gold			Jacobina Gold			Brio Total			Corp. Office & Other Total			Corp. Office & Other Gold
Cost of sales excluding DDA (i)	$	24.0		$	48.3		$	—		$	—		$	23.0		$	40.7		$	—		$	—
DDA	8.7			6.6			2.2			1.6			10.9			13.8			1.9			1.5
Total cost of sales	$	32.7		$	54.9		$	2.2		$	1.6		$	33.9		$	54.5		$	1.9		$	1.5
DDA	(8.7		)	(6.6		)	(2.2		)	(1.6		)	(10.9		)	(13.8		)	(1.9		)	(1.5		)
Inventory movement	0.3			(2.6		)	—			—			(0.8		)	1.9			—			—
Total co-product cash cost	$	24.3		$	45.7		$	—		$	—		$	22.2		$	42.6		$	—		$	—
G&A, excl., shared-based compensation (iii)	0.2			5.2			13.1			12.3			0.2			3.4			16.9			12.7
Sustaining capital expenditures (iv)	3.0			5.1			0.2			0.1			5.5			7.2			0.3			0.2
Exploration and evaluation expense (iii)	—			0.4			2.1			2.0			—			0.2			2.8			2.1
Total co-product AISC	$	27.5		$	56.4		$	15.4		$	14.4		$	27.9		$	53.4		$	20.0		$	15.0
Commercial oz and lb produced	34,525			46,057									32,126			50,540
Commercial oz and lb sold	33,500			46,563									33,256			50,235
Cost of sales excl. DDA per oz and lb sold	$	716		$	1,037								$	693		$	810
DDA per oz and lb sold	$	261		$	141								$	328		$	275
Total cost of sales per oz and lb sold	$	977		$	1,177								$	1,021		$	1,085
Co-product cash cost per oz and lb produced	$	705		$	991								$	693		$	842
Co-product AISC per oz and lb produced	$	798		$	1,224								$	871		$	1,057

| 33



Co-product Cash Cost & AISC	For the three months ended March 31, 2018						For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Corporate Office & Other Silver			Corporate Office & Other Copper			Corporate Office & Other Silver			Corporate Office & Other Copper
Cost of sales excluding DDA (i)	$	—		$	—		$	—		$	—
DDA	0.1			0.4			0.1			0.3
Total cost of sales	$	0.1		$	0.4		$	0.1		$	0.3
DDA	(0.1		)	(0.4		)	(0.1		)	(0.3		)
Total co-product cash cost	—			—			—			—
G&A, excl., shared-based compensation (iii)	0.8			—			0.9			3.3
Sustaining capital expenditures (iv)	—			—			—			0.1
Exploration and evaluation expense (iii)	0.1			—			0.2			0.6
Total co-product AISC	$	0.9		$	—		$	1.1		$	4.0



Co-product Cash Cost & AISC	For the three months ended March 31, 2018									For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total Gold (including Brio Gold)			Brio Gold (Attributable to Non-controlling Interests)			Total Gold (attributable to Yamana Gold equityholders)			Total Gold (including Brio Gold)			Brio Gold (Attributable to Non-controlling Interests)			Total Gold (attributable to Yamana Gold equityholders)
Cost of sales excluding DDA (i)	$	206.6		$	(22.4	)	$	184.2		$	186.5		$	(5.9	)	$	180.6
DDA	89.7			(3.0		)	86.7			95.3			(2.2		)	93.1
Total cost of sales	$	296.3		$	(25.4	)	$	270.9		$	281.8		$	(8.1	)	$	273.7
DDA	(89.7		)	3.0			(86.7		)	(95.3		)	2.2			(93.1		)
Inventory movement	(6.6		)	1.2			(5.4		)	3.9			(1.5		)	2.4
Treatment and refining charges (ii)	1.3			—			1.3			1.1			—			1.1
Commercial and other costs	(0.1		)	—			(0.1		)	(0.4		)	—			(0.4		)
Overseas freight for Chapada Conc.	(0.6		)	—			(0.6		)	(0.4		)	—			(0.4		)
Total co-product cash cost	$	200.6		$	(21.2	)	$	179.4		$	190.7		$	(7.4	)	$	183.3
G&A, excl., shared-based compensation (iii)	18.8			(2.4		)	16.4			17.4			(0.6		)	16.8
Sustaining capital expenditures (iv)	34.4			(2.4		)	32.0			38.9			(1.4		)	37.5
Exploration and evaluation expense (iii)	2.6			(0.2		)	2.4			3.1			0.3			3.4
Total co-product AISC	$	256.4		$	(26.2	)	$	230.2		$	250.1		$	(9.1	)	$	241.0
Commercial oz and lb produced	269,458						248,088			266,186						257,533
Commercial oz and lb sold	270,931						249,326			267,916						259,149
Cost of sales excl. DDA per oz and lb sold	$	763					$	739		$	696					$	697
DDA per oz and lb sold	$	331					$	348		$	356					$	359
Total cost of sales per oz and lb sold	$	1,094					$	1,086		$	1,052					$	1,056
Co-product cash cost per oz and lb produced	$	745					$	724		$	716					$	712
Co-product AISC per oz and lb produced	$	952					$	928		$	940					$	936

| 34



Co-product Cash Cost & AISC	For the three months ended March 31, 2018															For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total Gold (incl. Brio Gold)			Brio Gold			Total Gold - Yamana Mines (incl.) Gualcamayo			Gualcamayo Gold			Total Gold - Yamana Mines (v)			Total Gold (incl. Brio Gold)			Brio Gold			Total Gold - Yamana Mines (incl.) Gualcamayo			Gualcamayo Gold			Total Gold - Yamana Mines (v)
Cost of sales excluding DDA (i)	$	206.6		$	(48.3	)	$	158.3		$	(22.6	)	$	135.7		$	186.5		$	(40.6	)	$	145.9		$	(29.9	)	$	116.0
DDA	89.7			(6.5		)	83.2			(13.4		)	69.8			95.3			(13.8		)	81.5			(14.1		)	67.4
Total cost of sales	$	296.3		$	(54.8	)	$	241.5		$	(36.0	)	$	205.5		$	281.8		$	(54.4	)	$	227.4		$	(44.0	)	$	183.4
DDA	(89.7		)	6.5			(83.2		)	13.4			(69.8		)	(95.3		)	13.8			(81.5		)	14.1			(67.4		)
Inventory movement	(6.6		)	2.6			(4.0		)	0.6			(3.4		)	3.9			(2.0		)	1.9			(0.7		)	1.2
Treatment and refining charges (ii)	1.3			—			1.3			—			1.3			1.1			—			1.1			—			1.1
Commercial and other costs	(0.1		)	—			(0.1		)	—			(0.1		)	(0.4		)	—			(0.4		)	—			(0.4		)
Overseas freight for Chapada Conc.	(0.6		)	—			(0.6		)	—			(0.6		)	(0.4		)	—			(0.4		)	—			(0.4		)
Total co-product cash cost	$	200.6		$	(45.7	)	$	154.9		$	(22.0	)	$	132.9		$	190.7		$	(42.6	)	$	148.1		$	(30.6	)	$	117.5
G&A, excl., shared-based compensation (iii)	18.8			(5.2		)	13.6			—			13.6			17.4			(3.4		)	14.0			0.1			14.1
Sustaining capital expenditures (iv)	34.4			(5.1		)	29.3			(2.3		)	27.0			38.9			(7.2		)	31.7			(1.2		)	30.5
Exploration and evaluation expense (iii)	2.6			(0.5		)	2.1			—			2.1			3.1			(0.2		)	2.9			—			2.9
Total co-product AISC	$	256.4		$	(56.5	)	$	199.9		$	(24.3	)	$	175.6		$	250.1		$	(53.4	)	$	196.7		$	(31.7	)	$	165.0
Commercial oz and lb produced	269,458						223,401						199,555			266,186						215,647						177,918
Commercial oz and lb sold	270,931						224,368						198,501			267,916						217,681						179,485
Cost of sales excl. DDA per oz and lb sold	$	763					$	706					$	684		$	696					$	670					$	646
DDA per oz and lb sold	$	331					$	371					$	351		$	356					$	375					$	376
Total cost of sales per oz and lb sold	$	1,094					$	1,076					$	1,035		$	1,052					$	1,045					$	1,022
Co-product cash cost per oz and lb produced	$	745					$	694					$	667		$	716					$	687					$	661
Co-product AISC per oz and lb produced	$	952					$	896					$	881		$	940					$	912					$	927

| 35



By-product Cash Cost & AISC	For the three months ended March 31, 2018															For the three months ended March 31, 2017
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total Gold - Yamana Mines (v)			Total Gold - Gualcamayo			Total Gold - Yamana Mines (incl. Gualcamayo) (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Gold - Gualcamayo			Total Gold - Yamana Mines (incl. Gualcamayo) (v)			Total Silver (vi)			Total Copper
Cost of sales excluding DDA (i)	$	135.7		$	22.6		$	158.3		$	10.2		$	42.4		$	115.9		$	29.9		$	145.8		$	11.6		$	39.9
DDA	69.8			13.4			83.2			4.6			9.8			67.4			14.1			81.5			5.0			5.6
Total cost of sales	$	205.5		$	36.0		$	241.5		$	14.8		$	52.2		$	183.3		$	44.0		$	227.3		$	16.6		$	45.5
DDA	(69.8		)	(13.4		)	(83.2		)	(4.6		)	(9.8		)	(67.4		)	(14.1		)	(81.5		)	(5.0		)	(5.6		)
Inventory movement	(3.4		)	(0.6		)	(4.0		)	(0.5		)	(1.8		)	1.3			0.6			1.9			(0.4		)	3.8
Treatment and refining charges (ii)	1.3			—			1.3			—			7.9			1.1			—			1.1			—			6.7
Commercial and other costs	(0.1		)	—			(0.1		)	—			(0.2		)	(0.4		)	—			(0.4		)	—			(1.5		)
Overseas freight for Chapada Conc.	(0.6		)	—			(0.6		)	—			(2.3		)	(0.4		)	—			(0.4		)	—			(1.8		)
By-product credits from Chapada copper revenue	(87.8		)	—			(87.8		)	(5.2		)	—			(61.2		)	0.5			(60.7		)	(4.5		)	—
Chapada copper co-product cash cost	43.4			—			43.4			2.6			(46.0		)	44.1			—			44.1			3.1			(47.1		)
Total by-product cash cost	$	88.5		$	22.0		$	110.5		$	7.1		$	—		$	100.4		$	31.0		$	131.4		$	9.8		$	—
G&A, excl., shared-based compensation (iii)	18.1			—			18.1			1.1			—			17.4			(0.1		)	17.3			1.1			—
Sustaining capital expenditures (iv)	30.5			2.2			32.7			2.0			—			39.0			1.2			40.2			3.7			—
Exploration and evaluation expense (iii)	3.2			—			3.2			0.2			—			3.6			—			3.6			0.3			—
Total by-product AISC	$	140.3		$	24.2		$	164.5		$	10.4		$	—		$	160.4		$	32.1		$	192.5		$	14.9		$	—
Commercial oz and lb produced	199,555			23,846			223,401			899,261						177,918			37,728			215,646			1,079,108
Commercial oz and lb sold	198,501			25,867			224,368			973,257						179,485			38,196			217,681			1,093,897
Cost of sales excl. DDA per oz and lb sold	$	684		$	875		$	706		$	10.51					$	646		$	783		$	670		$	10.57
DDA per oz and lb sold	$	351		$	518		$	371		$	4.68					$	376		$	369		$	375		$	4.57
Total cost of sales per oz and lb sold	$	1,035		$	1,393		$	1,076		$	15.20					$	1,022		$	1,152		$	1,044		$	15.14
By-product cash cost per oz and lb produced	$	444					$	495		$	8.01					$	565					$	610		$	9.00
By-product AISC per oz and lb produced	$	703					$	737		$	11.58					$	902					$	893		$	13.72


(i)	Cost of sales includes non-cash items including the impact of the movement in inventory.


(ii)	Costs directly attributed to a specific metal are allocated to that metal. Costs not directly attributed to a specific metal are allocated based on relative value. As a rule of thumb, the relative value is 80% copper, 20% gold and silver at Chapada (2017 - 80% copper and 20% gold and silver). TCRC’s are defined as treatment and refining charges.


(iii)	Chapada's general and administrative expense and exploration expense are allocated reflecting costs incurred on the related activities at Chapada. G&A and exploration expenses of all other operations are allocated based on the relative proportions of consolidated revenues from gold and silver sales.


(iv)	Chapada's sustaining capital expenditures are allocated reflecting costs incurred on the related activities at Chapada. Sustaining capital expenditures of all other operations are allocated based on the relative proportions of consolidated revenues from gold and silver sales.


(v)	Total Gold (from Yamana Mines) equals to "Total Gold" less Brio Gold Mines and Gualcamayo in this table. Information related to GAAP values of cost of sales excluding DDA, DDA and total cost of sales are derived from the Consolidated Statements of Operations and Note 21(b) Operating Segments, Information about Profit and Loss , to the Company's Condensed Consolidated Interim Financial Statements.


(vi)	Quantities sold for the purpose of determining cost of sales per silver ounce sold exclude silver sales for Canadian Malartic, as silver is considered a by-product for the mine, and therefore all costs are allocated to gold production.


(vii)	Beginning January 1, 2018, silver production and related KPIs for Chapada and Minera Florida no longer meet the minimum significance threshold in accordance with the Company's policy.

NET DEBT



As at, (In millions of US Dollars)	March 31, 2018		December 31, 2017
Debt
Non-current portion	$	1,638.3	$	1,747.7
Current portion	36.3		110.0
Total debt	$	1,674.6	$	1,857.7

Less: Cash and cash equivalents	129.3		148.9
Net debt	$	1,545.3	$	1,708.8

AVERAGE REALIZED METAL PRICES



For the three months ended March 31,	2018								2017
(In millions of US Dollars; unless otherwise noted)	Total		Gold		Silver		Copper		Total			Gold			Silver		Copper
Revenue	$	449.7	$	354.9	$	17.5	$	77.3	$	403.5		$	324.0		$	20.2	$	59.3
Treatment and refining charges of concentrate	9.3		1.2		0.3		7.8		7.8			1.1			—		6.7
Sales taxes	4.9		3.1		—		1.8		4.1			2.5			—		1.6
Metal price adjustments related to concentrate revenue	8.1		—		0.2		7.9		(3.8		)	(0.9		)	—		(2.9		)
Other adjustments	0.6		0.4		—		0.2		—			—			—		—
Gross revenue	$	472.6	$	359.6	$	18.0	$	95.0	$	411.6		$	326.7		$	20.2	$	64.7

Commercial gold/silver ounces, million pounds of copper sold			270,931		1,060,761		30.3					267,916			1,169,058		25.2
Revenue per gold/silver ounce, pound of copper sold			$	1,310	$	16.50	$	2.56				$	1,209		$	17.28	$	2.35
Average realized price per gold/silver ounce, pound of copper sold			$	1,328	$	16.93	$	3.13				$	1,220		$	17.29	$	2.57

11. DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported to senior management, including the Company’s Chairman and Chief Executive Officer and Senior Vice President, Finance and Chief Financial Officer, on a timely basis so that appropriate decisions can be made regarding public disclosure. The Company’s system of disclosure controls and procedures includes, but is not limited to, our Timely Disclosure and Confidentiality Policy, our Code of Conduct, our Insider Trading Policy, our Corporate Controls Policy, the effective functioning of our Audit Committee and procedures in place to systematically identify matters warranting consideration of disclosure by the Audit Committee.

As at the end of the period covered by this Management’s Discussion and Analysis, management of the Company, with the participation of the Chairman and Chief Executive Officer and the Senior Vice President, Finance and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures as required by applicable rules of the Canadian Securities Administrators (or Canadian securities regulatory authorities) and the U.S. Securities and Exchange Commission (or the SEC). The evaluation included documentation review, inquiries and other procedures considered by management to be appropriate in the circumstances. Based on that evaluation, the Chairman and Chief Executive Officer and the Senior Vice President, Finance and Chief Financial Officer have concluded that, as of the end of the period covered by this Management’s Discussion and Analysis, the disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) were effective to provide reasonable assurance that information required to be disclosed in the Company’s annual filings and interim filings and other reports filed or submitted under applicable securities laws, is recorded, processed, summarized and reported within time periods specified by those laws and that material information is accumulated and communicated to management of the Company, including the Chairman and Chief Executive Officer and the Senior Vice President, Finance and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

| 36

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of the Company is responsible for establishing and maintaining effective "internal control over financial reporting" as such term is defined in the rules of the Canadian Securities Administrators and the SEC. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting for external purposes in accordance with IFRS. The Company’s internal control over financial reporting includes:


•	Maintaining records, that in reasonable detail, accurately and fairly reflect our transactions and dispositions of the assets of the Company;


•	Providing reasonable assurance that transactions are recorded as necessary for preparation of our Consolidated Financial Statements in accordance with generally accepted accounting principles;


•	Providing reasonable assurance that receipts and expenditures are made in accordance with authorizations of management and the directors of the Company; and


•	Providing reasonable assurance that unauthorized acquisition, use or disposition of Company assets that could have a material effect on the Company’s Consolidated Financial Statements would be prevented or detected on a timely basis.

The Company’s internal control over financial reporting may not prevent or detect all misstatements because of inherent limitations. Additionally, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to changes in conditions or deterioration in the degree of compliance with the Company’s policies and procedures.

CHANGES IN INTERNAL CONTROLS

During the period ended March 31, 2018 , there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

LIMITATIONS OF CONTROLS AND PROCEDURES

The Company’s management, including the Chairman and Chief Executive Officer and the Senior Vice President, Finance and Chief Financial Officer, believe that any disclosure controls and procedures or internal controls over financial reporting, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any systems of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

This report provides a discussion and analysis of the financial condition and results of operations (“Management’s Discussion and Analysis”) to enable a reader to assess material changes in financial condition between March 31, 2018 and December 31, 2017 and results of operations for the periods ended March 31, 2018 and March 31, 2017 .

This Management’s Discussion and Analysis has been prepared as of May 2, 2018 . The condensed consolidated interim financial statements prepared in accordance with IFRS as issued by IASB follow this Management’s Discussion and Analysis. This Management’s Discussion and Analysis is intended to supplement and complement the unaudited condensed consolidated interim financial statements and notes thereto as at and for three months ended March 31, 2018 (collectively the “Financial Statements”). You are encouraged to review the Financial Statements in conjunction with your review of this Management’s Discussion and Analysis. This Management’s Discussion and Analysis should be read in conjunction with both the Financial Statements and the annual audited consolidated financial statements for the year ended December 31, 2017, as well as the most recent Annual Information Form for the year ended December 31, 2017 on file with the Securities Commissions of all of the provinces in Canada and which are included in the 2017 Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Certain notes to the Financial Statements are specifically referred to in this Management’s Discussion and Analysis. All Dollar amounts in the Management’s Discussion and Analysis are in US Dollars, unless otherwise specified.

| 37

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This Management’s Discussion and Analysis contains or incorporates by reference “forward-looking statements” and “forward-looking information” under applicable Canadian 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 information with respect to the Company’s strategy, plans or future financial or operating performance, the outcome of the legal matters involving the damages assessments and any related enforcement proceedings. Forward-looking statements are characterized by words such as “plan,” “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar 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 at the 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 from those projected in the forward-looking statements. These factors include the Company’s expectations in connection with the production and exploration, development and expansion plans at the Company's projects discussed herein being met, the impact of proposed optimizations at the Company's projects, changes in national and local government legislation, taxation, controls or regulations and/or change in the administration of laws, policies and practices, and the impact of general business and economic conditions, global liquidity and credit availability on the timing 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 Brazilian Real, the Chilean Peso and the Argentine Peso versus the US Dollar), the impact of inflation, possible variations in ore grade or recovery rates, changes in the Company’s hedging program, changes in accounting policies, changes in mineral resources and mineral reserves, risks related to asset disposition, risks related to metal purchase agreements, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes 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 of exploration activities, permitting timelines, government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisors and consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, risks relating to joint venture operations, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending and outstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, as well as those risk factors 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 the Company’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. There can 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 undertakes no 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 to place 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 and operational 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.

CAUTIONARY STATEMENT REGARDING MINERAL RESERVES AND MINERAL RESOURCES

Scientific and technical information contained in this Management’s Discussion and Analysis relating to operations at Chapada, Canadian Malartic and Jacobina has been reviewed and approved by Yohann Bouchard (Senior Vice President, Operations); relating to operations at El Peñón, Cerro Moro, Minera Florida and Gualcamayo has been reviewed and approved by Carlos Bottinelli (Manager, Technical Services); and relating to exploration has been reviewed and approved by Henry Marsden (Senior Vice President, Exploration). Each of Messrs. Bouchard, Bottinelli and Marsden 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 Projects.

Readers should refer to the Annual Information Form of the Company for the year ended December 31, 2017 and other continuous disclosure documents filed by the Company since January 1, 2018 available at www.sedar.com , for further information on mineral reserves and mineral resources, which is subject to the qualifications and notes set forth therein.

CAUTIONARY STATEMENT TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MINERAL RESERVES AND MINERAL RESOURCES

| 38

This Management’s Discussion and Analysis has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “Commission”) and contained in Industry Guide 7 (“Industry Guide 7”). Under Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report mineral reserves, the three-year historical average price is used in any mineral reserve or cash flow analysis to designate mineral reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101. However, these terms are not defined terms under Industry Guide 7 and are not permitted to be used in reports and registration statements of United States companies filed with the Commission. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a mineral resource is permitted disclosure under Canadian regulations. In contrast, the Commission only permits U.S. companies to report mineralization that does not constitute “mineral reserves” by Commission standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this Management’s Discussion and Analysis may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the Commission thereunder.

*************

| 39

EXHIBIT 99.2

CONDENSED CONSOLIDATED

INTERIM FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2018

CONTENTS



		Page
	Condensed Consolidated Interim Statements of Operations	2
	Condensed Consolidated Interim Statements of Comprehensive (Loss) Income	3
	Condensed Consolidated Interim Statements of Cash Flows	4
	Condensed Consolidated Interim Balance Sheets	5
	Condensed Consolidated Interim Statements of Changes in Equity	6
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS:
1:	Nature of Operations	7
2:	Basis of Preparation and Presentation	7
3:	Recent Accounting Pronouncements	7
4:	Divestitures	11
5:	Revenue	13
6:	Other (Income) Expenses	16
7:	Finance Income and Expense	17
8:	Income Taxes	17
9:	(Loss)/Earnings Per Share	17
10:	Supplementary Cash Flow Information	18
11:	Financial Instruments	19
12:	Inventories	23
13:	Selected Composition Notes	24
14:	Property, Plant and Equipment	26
15:	Long-Term Debt	27
16:	Share Capital	27
17:	Share-Based Payments	28
18:	Non-Controlling Interests	29
19:	Capital Management	29
20:	Operating Segments	29
21:	Contractual Commitments	31
22:	Contingencies	31
23:	Subsequent Events	32
24:	Guarantor Subsidiaries Financial Statements	32

YAMANA GOLD INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31,



(In millions of US Dollars except for shares and per share amounts)	2018			2017 (restated)
Revenue (Note 5)	$	449.7		$	403.5
Cost of sales excluding depletion, depreciation and amortization	(259.2		)	(238.0		)
Gross margin excluding depletion, depreciation and amortization	$	190.5		$	165.5
Depletion, depreciation and amortization	(104.1		)	(106.0		)
Impairment of mining properties ( Note 4)	(103.0		)	—
Mine operating (loss)/earnings	$	(16.6	)	$	59.5

Expenses
General and administrative	(26.2		)	(25.3		)
Exploration and evaluation	(3.8		)	(4.0		)
Other income/(expenses) (Note 6)	25.3			(18.6		)
Impairment of non-operating mining properties (Note 4)	(71.0		)	—
Operating (loss) earnings	$	(92.3	)	$	11.6
Finance income (Note 7)	11.1			1.2
Finance expense (Note 7)	(50.7		)	(31.0		)
Net finance expense	$	(39.6	)	$	(29.8	)
Loss before taxes	$	(131.9	)	$	(18.2	)
Current income tax expense ( Note 8)	(26.5		)	(10.4		)
Deferred income tax (expense)/recovery ( Note 8)	(2.2		)	29.6
Income tax (expense)/recovery	$	(28.7	)	$	19.2
Net (loss)/earnings	$	(160.6	)	$	1.0

Attributable to:
Yamana Gold Inc. equityholders	$	(160.1	)	$	—
Non-controlling interests	(0.5		)	1.0
Net (loss)/earnings	$	(160.6	)	$	1.0

(Loss)/earnings per share attributable to Yamana Gold Inc. equityholders ( Note 9)
(Loss)/earnings per share - basic and diluted	$	(0.17	)	$	—

Weighted average number of shares outstanding (in thousands) ( Note 9)
Basic	948,711			947,901
Diluted	948,711			947,901

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements.

| 2

YAMANA GOLD INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

FOR THE THREE MONTHS ENDED MARCH 31,



(In millions of US Dollars)	2018			2017 (restated)
Net (loss)/earnings	$	(160.6	)	$	1.0

Other comprehensive income, net of taxes
Items that may be reclassified subsequently to profit or loss:
Available-for-sale financial assets
- Reclassification adjustments related to available-for-sale financial assets	—			5.1
Cash flow hedging reserve
- Increase in fair value of hedging instruments	8.1			28.7
- Decrease in fair value of hedging instruments	(7.3		)	(6.5		)
- Reclassification of (gains)/losses recorded in earnings	(0.1		)	—
- Tax Impact on fair value of hedging instruments	(2.3		)	(4.7		)
Cost of hedging reserve
- Changes in fair value	2.1			(6.9		)
	$	0.5		$	15.7
Items that will not be reclassified to profit or loss:
Changes in the fair value of equity investments at FVOCI	(0.2		)	—
Total other comprehensive income	$	0.3		$	15.7
Total comprehensive (loss)/income	$	(160.3	)	$	16.7

Attributable to :
Yamana Gold Inc. equityholders	$	(159.0	)	$	13.9
Non-controlling interests	(1.3		)	2.8
Total comprehensive (loss)/income	$	(160.3	)	$	16.7

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements.

| 3

YAMANA GOLD INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31,



(In millions of US Dollars)	2018			2017 (restated)
Operating activities
Loss before taxes	$	(131.9	)	$	(18.2	)
Adjustments to reconcile loss before taxes to net operating cash flows:
Depletion, depreciation and amortization	104.1			106.0
Share-based payments ( Note 17)	0.8			3.2
Finance income ( Note 7)	(11.1		)	(1.2		)
Finance expense ( Note 7)	50.7			31.0
Mark-to-market on sales of concentrate and price adjustments on unsettled invoices	8.6			(2.1		)
Mark-to-market on fair value through profit or loss instruments	1.0			3.7
Impairment of mineral properties (Note 4(a))	174.0			—
Amortization of deferred revenue on metal purchase agreements	(3.8		)	(3.4		)
Gain on sale of Canadian Exploration Properties (Note 4(c))	(39.0		)	—
Other non-cash expenses ( Note 1 0(d))	10.2			2.9
Decommissioning, restoration and similar liabilities paid	(1.0		)	(0.7		)
Advanced payments received on metal sales	127.8			4.4
Cash flows from operating activities before income taxes paid and net change in working capital	290.4			125.6
Income taxes paid	(16.1		)	(8.4		)
Payments made related to the Brazilian tax matters	(67.9		)	—
Cash flows from operating activities before net change in working capital	$	206.4		$	117.2
Net change in working capital ( Note 10(b))	(84.0		)	(65.9		)
Cash flows from operating activities	$	122.4		$	51.3
Investing activities
Acquisition of property, plant and equipment ( Note 14)	$	(149.8	)	$	(129.4	)
Proceeds on disposition of Canadian Exploration Properties (Note 4(c))	162.5			—
Proceeds on disposition of investments and other assets	4.3			18.3
Acquisition of investments and other assets	(2.4		)	—
Cash from (used in) other investing activities	0.1			(17.7		)
Cash flows from/(used in) investing activities	$	14.7		$	(128.8	)
Financing activities
Dividends paid ( Note 16(b))	$	(4.8	)	$	(4.8	)
Interest and other finance expenses paid	(14.2		)	(18.9		)
Financing costs paid on early note redemption	(14.7		)	—
Proceeds from Brio Gold Inc. private placement and rights offering ( Note 4(a))	—			14.8
Repayment of term loan and notes payable ( Note 15)	(380.4		)	(25.9		)
Proceeds from term loan and notes payable ( Note 15)	270.0			120.0
Proceeds from other financing activities	1.6			—
Cash flows (used in)/from financing activities	$	(142.5	)	$	85.2
Effect of foreign exchange of non-US Dollar denominated cash and cash equivalents	0.2			0.8
(Decrease)/Increase in cash and cash equivalents	$	(5.2	)	$	8.5
Cash and cash equivalents, beginning of period	$	148.9		$	97.4
Cash and cash equivalents classified as held for sale, beginning of period (Note 4)	$	6.3		$	—
Cash and cash equivalents, end of period	$	150.0		$	105.9
Cash and cash equivalents reclassified as held for sale (Note 4)	$	(20.7	)	$	—
Cash and cash equivalents, excluding amounts classified as held for sale, end of period	$	129.3		$	105.9

Supplementary cash flow information ( Note 1 0).

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements.

| 4

YAMANA GOLD INC.

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

AS AT,



(In millions of US Dollars)	March 31, 2018			December 31, 2017 (restated)
Assets
Current assets:
Cash and cash equivalents (Note 10(c))	$	129.3		$	148.9
Trade and other receivables	19.6			38.6
Inventories ( Note 1 2)	125.6			163.5
Other financial assets (Note 13(a))	7.9			13.2
Other assets (Note 13(b))	113.4			119.4
Assets held for sale (Note 4)	510.6			355.8
	$	906.4		$	839.4
Non-current assets:
Property, plant and equipment ( Note 14)	6,800.6			7,259.7
Other financial assets (Note 13(a))	17.6			26.1
Deferred tax assets	89.6			97.8
Goodwill and intangibles	448.3			449.5
Other assets (Note 13(b))	79.9			90.8
Total assets	$	8,342.4		$	8,763.3

Liabilities
Current liabilities:
Trade and other payables	$	267.6		$	345.4
Income taxes payable	18.8			91.8
Other financial liabilities ( Note 13(c))	101.7			203.1
Other provisions and liabilities ( Note 13(d))	144.2			56.7
Liabilities relating to assets held for sale (Note 4)	263.2			83.7
	$	795.5		$	780.7
Non-current liabilities:
Long-term debt ( Note 15)	1,638.3			1,747.7
Decommissioning, restoration and similar liabilities	226.8			258.2
Deferred tax liabilities	1,148.2			1,147.1
Other financial liabilities ( Note 13(c))	83.6			85.7
Other provisions and liabilities ( Note 13(d))	332.5			296.6
Total liabilities	$	4,224.9		$	4,316.0

Equity
Share capital ( Note 16)
Issued and outstanding 948,858,214 common shares (December 31, 2017 - 948,524,667 shares)	$	7,634.8		$	7,633.7
Reserves	12.0			19.7
Deficit	(3,512.1		)	(3,340.0		)
Attributable to Yamana Gold Inc. equityholders	$	4,134.7		$	4,313.4
Non-controlling interests ( Note 18)	(17.2		)	133.9
Total equity	$	4,117.5		$	4,447.3
Total liabilities and equity	$	8,342.4		$	8,763.3

Contractual Commitments and Contingencies (Notes 21 and 22) .

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements.

Approved by the Board



“Peter Marrone”	“Richard Graff”
PETER MARRONE	RICHARD GRAFF
Director	Director

| 5

YAMANA GOLD INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED MARCH 31,




	Share capital		Equity reserve			Hedging reserve			Cost of hedging reserve			Available -for-sale reserve			Fair value through OCI reserve			Other reserve			Total reserves			Deficit			Total equity attributable to Yamana shareholders			Non- controlling interest			Total equity
Balance as at January 1, 2017 as previously reported	$	7,630.5	$	17.8		$	0.2		$	—		$	(3.5	)	$	—		$	(2.5	)	12.0			$	(3,130.3	)	$	4,512.2		$	67.8		$	4,580.0
Adjustment from adoption of IFRS 9 (Note 3 (a)(ii))	—		—			—			2.3			—			—			—			2.3			(2.3		)	—			—			—
Restated balance as at January 1, 2017	7,630.5		17.8			0.2			2.3			(3.5		)	—			(2.5		)	14.3			(3,132.6		)	4,512.2			67.8			4,580.0
Total comprehensive income
Net earnings	—		—			—			—			—			—			—			—			—			—			1.0			1.0
Other comprehensive income, net of income tax	—		—			14.9			(6.1		)	5.1			—			—			13.9			—			13.9			1.8			15.7
	—		—			14.9			(6.1		)	5.1			—			—			13.9			—			13.9			2.8			16.7
Transactions with owners
Divestment of Brio Gold shares ( Note 4(a))	—		—			—			—			—			—			—			—			—			—			14.8			14.8
Issued on vesting of restricted share units	1.0		(1.0		)	—			—			—			—			—			(1.0		)	—			—			—			—
Restricted share units ( Note 17)	—		1.0			—			—			—			—			—			1.0			—			1.0			1.7			2.7
Dividend reinvestment plan	0.1		—			—			—			—			—			—			—			—			0.1			—			0.1
Dividends (Note 16(b))	—		—			—			—			—			—			—			—			(4.8		)	(4.8		)	—			(4.8		)
Restated balance as at March 31, 2017 *	$	7,631.6	$	17.8		$	15.1		$	(3.8	)	$	1.6		$	—		$	(2.5	)	$	28.2		$	(3,137.4	)	$	4,522.4		$	87.1		$	4,609.5
Restated balance as at December 31, 2017*	$	7,633.7	$	18.0		$	6.0		$	(4.1	)	$	1.0		$	—		$	(1.2	)	$	19.7		$	(3,340.0	)	$	4,313.4		$	133.9		$	4,447.3
Adjustments on initial application of:
IFRS 15 (Note 3(a)(i))	—		—			—			—			—			—			—			—			(16.4		)	(16.4		)	—			(16.4		)
IFRS 9 (Note 3(a)(ii))	—		—			—			—			(1.0		)	(7.8		)	—			(8.8		)	8.8			—			—			—
Adjusted balance as at January 1, 2018	$	7,633.7	$	18.0		$	6.0		$	(4.1	)	$	—		$	(7.8	)	$	(1.2	)	$	10.9		$	(3,347.6	)	$	4,297.0		$	133.9		$	4,430.9
Total comprehensive loss
Net loss	$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	(160.1	)	$	(160.1	)	$	(0.5	)	$	(160.6	)
Other comprehensive income, net of income tax	$	—	$	—		$	(1.6	)	$	2.9		$	—		$	(0.2	)	$	—		$	1.1		$	—		$	1.1		$	(0.8	)	$	0.3
	—		—			(1.6		)	2.9			—			(0.2		)	—			1.1			(160.1		)	(159.0		)	(1.3		)	(160.3		)
Transactions with owners
Impairment	—		—			—			—			—			—			—			—			—			—			(150.0		)	(150.0		)
Issued on vesting of restricted share units ( Note 16(a))	1.0		(1.0		)	—			—			—			—			—			(1.0		)	—			—			—			—
Vesting restricted share units ( Note 17)	—		1.0			—			—			—			—			—			1.0			—			1.0			0.2			1.2
Dividend reinvestment plan ( Note 16(a))	0.1		—			—			—			—			—			—			—			—			0.1			—			0.1
Dividends (Note 16(b))	—		—			—			—			—			—			—			—			(4.8		)	(4.8		)	—			(4.8		)
Balance as at March 31, 2018	$	7,634.8	$	18.0		$	4.4		$	(1.2	)	$	—		$	(8.0	)	$	(1.2	)	$	12.0		$	(3,512.1	)	$	4,134.7		$	(17.2	)	$	4,117.5

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements.

| 6

YAMANA GOLD INC.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the Three Months Ended March 31, 2018

(With Comparatives as at December 31, 2017 and for the Three Months Ended March 31, 2017)

(Tabular amounts in millions of US Dollars, unless otherwise noted)

1. NATURE OF OPERATIONS

Yamana Gold Inc. (the “Company” or “Yamana”) is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions throughout the Americas including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through existing operating mine expansions and optimization initiatives, development of new mines, the advancement of its exploration properties and, at times, by targeting other gold consolidation opportunities with a primary focus in the Americas.

The address of the Company’s registered office is 200 Bay Street, Suite 2200, Royal Bank Plaza North Tower Toronto, Ontario, Canada, M5J 2J3. The Company is listed on the Toronto Stock Exchange (Symbol: YRI) and The New York Stock Exchange (Symbol: AUY).

These Condensed Consolidated Interim Financial Statements are comprised of the Company, its subsidiaries, and its 50% interest in the Canadian Malartic mine, which is accounted for as a joint operation.

2. BASIS OF PREPARATION AND PRESENTATION

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board (“IASB”). Accordingly, certain disclosures included in the Company’s annual consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRSs”) as issued by the IASB have been condensed or omitted. These Condensed Consolidated Interim Financial Statements should be read in conjunction with the Company’s last annual consolidated financial statements as at and for the year ended December 31, 2017, which include information necessary or useful to understanding the Company’s business and financial statement presentation. In particular, the Company’s significant accounting policies were presented in Note 3: Significant Accounting Policies to the Consolidated Financial Statements as at and for the year ended December 31, 2017.

The accounting policies applied in the preparation of these Condensed Consolidated Interim Financial Statements are consistent with those applied and disclosed in the Company’s Consolidated Financial Statements as at and for the year ended December 31, 2017, with the exception of the application of certain new and amended IFRSs issued by the IASB, which were effective from January 1, 2018. Those new and amended IFRSs that had a significant impact on the Company’s Condensed Consolidated Interim Financial Statements are described in Note 3: Recent Accounting Pronouncements .

In preparing these Condensed Consolidated Interim Financial Statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenue and expenses. Actual results may differ from these estimates.

The critical judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied and disclosed in Note 4: Critical Judgements and Estimation Uncertainties to the Company’s Consolidated Financial Statements as at and for the year ended December 31, 2017, except for those related to the determination of assets held for sale and discontinued operations related to the reclassification of Brio Gold as a disposal group held for sale, and those related to revenue recognition. These new critical judgements and key sources of estimation uncertainty are disclosed in Note 4: Divestitures and Note 5: Revenue , respectively to the Company's Condensed Consolidated Interim Financial Statements.

3. RECENT ACCOUNTING PRONOUNCEMENTS


(a)	Application of New and Revised IFRSs

The Company has adopted the following new IFRSs that had an impact on these Condensed Consolidated Interim Financial Statements:

| 7


i.	IFRS 15 Revenue from Contracts with Customers ("IFRS 15")

On January 1, 2018, the Company adopted IFRS 15. IFRS 15 is based on the principle that revenue is recognized when control of a good or service is transferred to a customer. The Company adopted IFRS 15 using the cumulative effect method applied to those contracts that were not completed as of January 1, 2018. The cumulative effect of initially applying IFRS 15 has been recognized as an adjustment to the opening deficit at January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under IFRS 15, while prior period amounts have not been restated and continue to be reported under the accounting standards in effect for those periods.

The adoption of IFRS 15 did not have a significant impact on the Company's condensed consolidated interim financial statements, with the exception of adjustments to the metal streaming arrangements as discussed below, and the addition of new disclosures, which are included in Note 5: Revenue .

Under IFRS 15, where consideration is received in advance of the Company's performance of its obligation, there is an inherent financing component in the transaction. When the period between receipt of consideration and revenue recognition is greater than one year, the Company is required to determine whether the financing component is significant to the contract. The Company performed this assessment for its metal streaming arrangements with Sandstorm Gold Ltd ("Sandstorm") and Altius Minerals Corporation ("Altius") that existed at the date of initial application of IFRS 15, and determined that the financing component was significant to each of these arrangements.

Accordingly, in accounting for each of the arrangements under IFRS 15, the transaction price is increased by an imputed interest amount and a corresponding amount of interest expense recognized in each period. The Company recorded a net increase of $16.4 million to the opening deficit balance as of January 1, 2018 due to the cumulative impact of adopting IFRS 15, as a result of adjustments to the deferred revenue balances associated with the Company's metal streaming arrangements. The adjustments resulted from a change in draw down rates resulting from the adjustment to the transaction price to reflect the financing component.

In accordance with the requirements in IFRS 15, the disclosure of the impact of adoption on the Company’s condensed consolidated interim statement of operations and condensed consolidated interim balance sheet as at and for the three months ended March 31, 2018 was as follows:

Condensed consolidated interim statement of operations (extract)



For the three months ended March 31, 2018	As reported			Balances without adoption of IFRS 15			Effect of change
Revenue	$	449.7		$	446.7		$	3.0
Gross margin excluding DDA	$	190.5		$	187.5		$	3.0
Mine operating (loss) earnings	$	(16.6	)	$	(19.6	)	$	3.0

Finance expense	(50.7		)	(45.7		)	(5.0		)
Net finance expense	$	(39.6	)	$	(34.6	)	$	(5.0	)

Net loss	$	(160.6	)	$	(158.6	)	$	(2.0	)

Condensed consolidated interim balance sheet (extract)



As at March 31, 2018	As reported			Balances without adoption of IFRS 15			Effect of change
Liabilities
Current liabilities:
Other provisions and liabilities	$	144.2		$	144.2		$	—

Non-current liabilities:
Other provisions and liabilities	332.5			$	314.1		$	18.4
Total liabilities	$	4,224.9		$	4,206.5		$	18.4

Equity
Deficit	$	(3,512.1	)	$	(3,493.7	)	$	(18.4	)
Total equity	$	4,117.5		$	4,135.9		$	(18.4	)
Total liabilities and equity	$	8,342.4		$	8,342.4		$	—

| 8

The above changes are attributable to accounting for the financing component in the Company's streaming arrangements, as discussed above, and the financing component on the advanced copper purchase agreement entered into in January 2018. Refer to Note 13(d): Other Provisions and Liabilities to the Company's Condensed Consolidated Interim Financial Statements.


ii.	IFRS 9 Financial Instruments ("IFRS 9")

On January 1, 2018, the Company adopted IFRS 9 (2014). IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated with the exception of certain aspects of hedge accounting.

The following summarizes the significant changes in IFRS 9 compared to the current standard:


a.	Classification and Measurement of Financial Assets

IFRS 9 contains three principal classification categories for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVOCI”) and fair value through profit or loss (“FVTPL”). The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Management reviewed and assessed the Company’s existing financial assets as at January 1, 2018 based on the facts and circumstances that existed at that date and concluded that the initial application of IFRS 9 has had the following impact on the Company’s financial assets as regards their classification and measurement:


•	Financial assets measured at FVTPL under IAS 39 Financial Instruments: Recognition and Measurement ("IAS 39") continue to be measured as such under IFRS 9;


•	Financial assets classified as Loans and Receivables under IAS 39 that were measured at amortized cost continue to be measured at amortized cost under IFRS 9;

•

Investments in equity securities that were classified as available-for-sale under IAS 39 have been classified at FVOCI, pursuant to the irrevocable election available in IFRS 9. Under IFRS 9, all realized and unrealized gains and losses are recognized permanently in OCI with no reclassification to profit or loss. Accordingly, impairment losses of $8.8 million on equity securities that the Company continued to own at January 1, 2018 that were previously recognized in profit or loss were reclassified from opening deficit to the fair value through OCI reserve on January 1, 2018.


b.	Impairment of Financial Assets

IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial recognition. The adoption of the expected credit loss impairment model did not have a significant impact on the carrying amounts of the Company's financial assets on the transition date given the Company transacts exclusively with large international financial institutions and other organizations with strong credit ratings and the negligible historical level of customer default.


c.	Hedge Accounting

IFRS 9 changes the requirements for hedge effectiveness and consequently for the application of hedge accounting. The IAS 39 effectiveness test is replaced with a requirement for an economic relationship between the hedged item and hedging instrument, and for the ‘hedged ratio’ to be the same as that used by the entity for risk management purposes. Certain restrictions that prevented some hedging strategies and hedging instruments from qualifying for hedge accounting were removed under IFRS 9. Generally, the mechanics of hedge accounting remain unchanged.

All of the Company’s existing hedging relationships that qualified for hedge accounting under IAS 39 were assessed upon adoption of IFRS 9 and these have continued to qualify for hedge accounting under IFRS 9. The Company also reassessed economic hedges that did not qualify for hedge accounting under IAS 39. IFRS 9 has enabled the Company to apply hedge accounting to copper derivative contracts, thus reducing the volatility of reported net income. These positions previously did not qualify for hedge accounting as component hedging was not permitted under IAS 39.

The Company enters into zero-cost collars, which consist of a combination of purchased and written (sold) options to reduce the impact of the variability of the US Dollar amount of foreign currency denominated operating expenditures caused by changes in currency exchange rates. Under IAS 39, the Company separated the intrinsic value and time value of these contracts, designating only the change in intrinsic value as the hedging instrument. As a result, any variability in the intrinsic value was taken to OCI and any variability in the time value was taken to profit

| 9

or loss. Under IFRS 9, the Company will continue to separate the intrinsic value and time value of these contracts, designating only the change in intrinsic value as the hedging instrument as allowed under the exception provided in IFRS 9. However, under IFRS 9, changes in time value are recognized in OCI as a cost of hedging rather than in profit or loss, resulting in a reduction in profit or loss volatility.

Effect of adjustments arising from application of IFRS 9 hedge accounting requirements

Retrospective application of the costs of hedging approach has had the following effects on the amounts presented for 2017:

Condensed consolidated statement of operations (extract)



For the three months ended March 31, 2017	As originally presented			IFRS 9 Adjustments		Restated
Expenses
Finance income	1.2			—		1.2
Finance expense	(37.9		)	6.9		(31.0		)
Net finance expense	$	(36.7	)	$	6.9	$	(29.8	)

Loss before tax	(25.1		)	6.9		(18.2		)
Net (loss)/earnings	$	(5.9	)	$	6.9	$	1.0

Attributable to:
Yamana Gold Inc. equityholders	(6.1		)	6.1		—
Non-controlling interest	0.2			0.8		1.0
Net loss/(earnings)	$	(5.9	)	$	6.9	$	1.0

Loss/(earnings) per share attributable to Yamana Gold Inc. equityholders
(Loss)/earnings per share - basic and diluted	$	(0.01	)	$	0.01	$	—

Condensed consolidated statement of comprehensive income (extract)



For the three months ended March 31, 2017	As originally presented			IFRS 9 Adjustments			Restated
Net loss (earnings)	$	(5.9	)	$	6.9		$	1.0

Items that may be reclassified subsequently to profit or loss
Cost of hedging reserve - changes in fair value	—			(6.9		)	(6.9		)
Total other comprehensive income	$	22.6		$	(6.9	)	$	15.7
Total comprehensive income	$	16.7		$	—		$	16.7

The application of the costs of hedging approach resulted in the Company recognizing $2.1 million of changes in the time value on the Company's zero-cost collar option contracts in OCI rather than in profit or loss as a finance expense in the three months ended March 31, 2018.

Refer to Note 5: Revenue and Note 11: Financial Instruments for a description of the new accounting policies applied by the Company as a result of adoption of these new IFRS standards.


iii.	Adoption of other narrow scope amendments to IFRSs and IFRS Interpretations

The Company also adopted other amendments to IFRSs, as well as the Interpretation IFRIC 22 Foreign Currency Transactions and Advance Consideration, which were effective for accounting periods beginning on or after January 1, 2018. The impact of adoption was not significant to the Company's Condensed Consolidated Interim Financial Statements.


(b)	New and Revised IFRSs not yet Effective

Certain pronouncements have been issued by the IASB that are mandatory for accounting periods after December 31, 2018. Pronouncements that are not applicable to the Company have been excluded from this note.

| 10

IFRS 16 Leases ("IFRS 16")

IFRS 16 requires lessees to recognize assets and liabilities for most leases. It is effective for annual reporting periods beginning January 1, 2019. The Company is currently assessing the impact of the adoption of this Standard. Project activities launched to date include the development of a project plan, project team structure, staff training, development of process tools for lease identification and roll-out of the data gathering phase, and the initiation of a search for a software solution for lease information management.

4. DIVESTITURES


(a)	Brio Gold

On December 23, 2016, the Company closed its offering of purchase rights pursuant to which the Company has transferred common shares ("Brio Gold Shares") of Brio Gold to Yamana shareholders. A total of 17,324,507 Brio Gold Shares owned by the Company were transferred pursuant to the transactions at a price of C$3.25 per share for aggregate proceeds of $40.7 million (C$54.1 million) to the Company. The proceeds, net of transaction costs, were recorded as non-controlling interests in the consolidated statement of changes in equity. As a result of the completion of these transactions, Brio Gold became a public reporting company with shares listed on the Toronto Stock Exchange.

On March 6, 2017, the Company announced that it had completed a secondary offering by private placement of 6 million common shares of its holding of Brio Gold Shares. The Company sold the Brio Gold Shares at C$3.35 per share for total proceeds of $14.8 million (C$20.1 million) to an arm's length institutional shareholder.

On June 2, 2017, the Company announced that it had completed a further secondary offering by private placement of 27 million common shares of its holding of Brio Gold Shares. The Company sold the Brio Gold Shares at C$3.00 per share for total proceeds of $56.7 million (C$76.7 million) through a syndicate of underwriters.

During the fourth quarter of 2017, restricted share units held by Brio Gold management vested, further diluting the Company's interest in Brio Gold.

As at December 31, 2017, Yamana continued to be the controlling shareholder of Brio Gold, holding approximately 53.6% of the issued and outstanding shares.

On January 23, 2018, Leagold Mining Corporation (“Leagold”) announced its intention to make an offer to acquire all of the issued and outstanding shares of Brio Gold on or before February 28, 2018. In connection with the offer, Yamana entered into a support agreement with Leagold (the “Lock-up Agreement”), pursuant to which, Yamana agreed to tender all its Brio Gold Shares and to hold the Leagold shares received as consideration for a minimum period of 12 months, subject to certain exceptions. The Lock-up Agreement applied whether Leagold completed the transaction by way of the offer or by way of an alternative transaction.

On February 16, 2018, Leagold further announced that it had reached an agreement with Brio Gold under which, the previously announced proposed take-over bid by Leagold would now be completed on a Brio Board-supported basis by way of a statutory plan of arrangement (the “Arrangement”). Under the terms of the Arrangement, Leagold will acquire all of the outstanding shares of Brio Gold in exchange for i) 0.922 of a Leagold share and ii) 0.4 of a Leagold share purchase warrant (“Leagold Warrant”) for each Brio share outstanding, representing an implied price of C$2.90 per Brio Share as of that date. Each Leagold Warrant will entitle the holder thereof to purchase one Leagold share at a price of C$3.70 for a period of two years following completion of the transaction.

Following the Brio Gold shareholders approval of the Arrangement on April 12, 2018, Brio Gold obtained order from the Ontario Superior Court of Justice (Commercial List) with respect to the Arrangement on April 17, 2018.

Immediately prior to the classification to assets and liabilities held for sale, the carrying amount of Brio Gold was re-measured to its recoverable amount, being its fair value less costs of disposal ("FVLCD") using the share price of Leagold per the TSX (C$2.86 per Leagold share). This is a level 1 measurement as per the fair value hierarchy. As a result, the Company recorded an impairment loss of $145.0 million in relation to Brio Gold immediately prior to the classification to assets and liabilities held for sale. The $145.0 million is the net of a $270.4 million gross asset impairment, of which $125.4 million is related to the non-controlling interests of Brio Gold. The Company re-measured Brio Gold to its recoverable amount, determined using the closing share price of Leagold per the TSX (C$2.61 per Leagold share) as at March 31, 2018. The Company recorded an additional impairment loss of $23.2 million in relation to the Brio Gold held for sale assets. The $23.2 million is the net of a $47.8

| 11

million gross asset impairment, of which $24.6 million is related to the non-controlling interests of Brio Gold. The net after-tax impairment loss recognized in the statement of operations for the three months ended March 31, 2018 totalled $168.2 million, which is net of a $5.8 million deferred income tax recovery.

The transaction is expected to close in the second quarter of 2018. Upon completion of the Arrangement, and following the recently announced planned equity issue by Leagold, Yamana will own approximately 20.5% of Leagold.

Brio Gold is presented in the "Other Mines" reportable operating segment.

Critical Judgements in Applying Accounting Policies

Determination of Assets Held for Sale and Discontinued Operations

The Company concluded that the assets and liabilities of Brio Gold met the criteria for classification as held for sale. Accordingly, the assets and liabilities of Brio Gold, as applicable, were presented separately in the Company's condensed consolidated interim balance sheet under current assets and current liabilities, respectively.

Management applies judgement to determine whether a component of the Company that either has been disposed of, or is classified as held for sale, meets the criteria of a discontinued operation. The key area that involves management judgement in this determination is whether the component represents a separate major line of business or geographical area of operation. This determination applied to Brio Gold, as it is a component of the Company. Given that the Company will continue to operate in Brazil after the disposal of Brio Gold and based on quantitative analysis performed, the Company concluded that Brio Gold is not a separate major line of business or geographical area of operation, thus it is not considered a discontinued operation.


(b)	Gualcamayo and Related Argentinian Exploration Properties

As part of its ongoing strategic and technical reviews of its asset portfolio, in December 2017 the Company committed to a formal plan to dispose of the Gualcamayo mine and related exploration properties in Argentina (“Gualcamayo”) and initiated an active program to sell Gualcamayo. As the sale was considered highly probable, at December 31, 2017 the assets and liabilities of Gualcamayo were classified as assets and liabilities (a disposal group) held for sale and presented separately under current assets and current liabilities, respectively. Immediately prior to the classification to assets and liabilities held for sale, the carrying amount of Gualcamayo was re-measured to its recoverable amount, being its FVLCD, the estimate of which, was supported by various sources including a formal bid received by the Company, external valuation reports and comparable trading company multiples. As a result, the Company recorded an impairment loss of $356.5 million in relation to Gualcamayo in the year ended December 31, 2017. As at March 31, 2018, there was no further write-down as the carrying amount of the disposal group did not fall below its fair value less costs to sell.

The Company continues to focus on the sale process and a sale transaction continues to be expected in 2018.

Gualcamayo is presented in the "Other Mines" reportable operating segment.


(c)	Canadian Exploration Properties

On March 29, 2018, the Company completed the sale of certain jointly owned exploration properties of the Canadian Malartic Corporation (“CMC”) including the Kirkland Lake and Hammond Reef properties (the “Canadian Exploration Properties”) to Agnico Eagle Mines Limited (“Agnico”) for total cash consideration of $162.5 million. The Transaction was structured as a sale of assets by CMC (in which the Company holds a 50% indirect interest) pursuant to which Agnico acquired all of the Company's indirect 50% interest in the Canadian exploration assets of CMC.

At December 31, 2017, the sale was considered highly probable and accordingly, the assets and liabilities of the Canadian Exploration Properties were classified as assets and liabilities held for sale and presented separately under current assets and current liabilities, respectively. No impairment loss was recognized on reclassification to held for sale, as the FVLCD was higher than the carrying amount of the assets based on the sales price in the agreement. Upon sale, the Company recognized a gain of $39.0 million , which is included in other income (expenses) in the statement of operations for the three months ended March 31, 2018.

| 12

The Canadian Exploration Properties were presented in the Canadian Malartic reportable operating segment.

The components of assets and liabilities held for sale at March 31, 2018 and December 31, 2017 relating to the above disposal groups are as follows:



	March 31, 2018								December 31, 2017
	Brio Gold		Gualcamayo			Total			Canadian Exploration Properties		Gualcamayo		Total
Assets
Current assets:
Cash and cash equivalents	$	17.5	$	3.2		$	20.7		$	—	$	6.3	$	6.3
Trade and other receivables	3.7		—			3.7			—		—		—
Inventories	38.2		68.7			106.9			—		78.4		78.4
Other financial assets	6.6		0.8			7.4			—		—		—
Other assets	14.9		16.7			31.6			—		15.7		15.7
	80.9		89.4			170.3			—		100.4		100.4
Property, plant and equipment	192.1		133.2			325.3			98.4		130.8		229.2
Other financial assets	0.7		—			0.7			0.8		—		0.8
Deferred tax assets	7.6		(0.3		)	7.3			—		—		—
Goodwill and intangibles	—		1.4			1.4			24.0		1.4		25.4
Other assets	5.6		—			5.6			—		—		—
Total assets held for sale	$	286.9	$	223.7		$	510.6		$	123.2	$	232.6	$	355.8

Liabilities
Current liabilities:
Trade and other payables	$	46.0	$	31.6		77.6			$	0.4	$	45.0	$	45.4
Income taxes payable	4.0		—			4.0			—		—		—
Other financial liabilities	19.4		1.5			20.9			—		2.4		2.4
Other provisions and liabilities	8.4		8.0			16.4			0.1		7.8		7.9
	77.8		41.1			118.9			0.5		55.2		55.7
Long-term debt	72.8		—			72.8			—		—		—
Decommissioning, restoration and similar liabilities	37.2		25.4			62.6			0.6		26.5		27.1
Deferred tax liabilities	0.3		(3.6		)	(3.3		)	—		—		—
Other provisions and liabilities	10.8		1.4			12.2			—		0.9		0.9
Total liabilities relating to assets held for sale	$	198.9	$	64.3		$	263.2		$	1.1	$	82.6	$	83.7
Net assets held for sale	$	88.0	$	159.4		$	247.4		$	122.1	$	150.0	$	272.1
Non-controlling interest on assets held for sale	$	35.9	$	—		$	35.9		$	—	$	—	$	—

5. REVENUE

The Company has recognized the following amounts relating to revenue in the condensed consolidated interim statement of operations:



	Three months ended March 31,
	2018			2017
Revenue from contracts with customers (a)	$	457.8		$	399.7
Revenue from other sources
Provisional pricing adjustments on concentrate sales	(8.1		)	3.8
	$	449.7		$	403.5


(a)	Disaggregation of Revenue from Contracts with Customers

The following table disaggregates revenue from contracts with customers by metal and source mine. The table also includes a reconciliation of the disaggregated revenue from contracts with customers with disaggregated revenue reported in Note 20: Operating Segments to the Company's Condensed Consolidated Interim Financial Statements.

| 13



Three months ended March 31, 2018	Chapada			El Peñón		Canadian Malartic		Jacobina		Minera Florida		Other mines		Total
Gold	28.8			55.1		107.8		43.8		25.1		94.3		354.9
Silver	—			16.1		1.6		—		—		—		17.7
Copper	85.2			—		—		—		—		—		85.2
Total revenue from contracts with customers	$	114.0		$	71.2	$	109.4	$	43.8	$	25.1	$	94.3	$	457.8
Provisional pricing adjustments	(8.1		)	—		—		—		—		—		(8.1		)
Total segment revenue	$	105.9		$	71.2	$	109.4	$	43.8	$	25.1	$	94.3	$	449.7



Three months ended March 31, 2017	Chapada		El Peñón		Canadian Malartic		Jacobina		Minera Florida		Other mines		Total
Gold	24.6		41.5		82.4		40.4		28.9		105.3		323.1
Silver	0.4		18.5		—		—		1.3		—		20.2
Copper	56.4		—		—		—		—		—		56.4
Total revenue from contracts with customers	$	81.4	$	60.0	$	82.4	$	40.4	$	30.2	$	105.3	$	399.7
Provisional pricing adjustments	3.8												3.8
Total segment revenue	$	85.2	$	60.0	$	82.4	$	40.4	$	30.2	$	105.3	403.5


(b)	Accounting Policies and Significant Judgements

The policies described below have been applied in the preparation of the revenue numbers for the three months ended March 31, 2018. In the comparative period, revenue was accounted for in accordance with the revenue policy disclosed in the Company’s Annual Consolidated Financial Statements as at and for the year ended December 31, 2017.

Gold and Silver

The Company sells gold and silver in bullion and doré form to customers, which are all major financial institutions.

Revenue is recognized when control of the gold or silver has transferred to the customer. For bullion sales, this is typically at the point in time when the bullion is credited to the metal account of the customer. For doré sales, this is typically at the point in time when the doré is shipped from the mine. Following the crediting of gold or silver to a customer’s metal account or the shipment of doré, the customer has legal title to, physical possession of, and the risks and rewards of ownership of the metal, and therefore, the ability to direct the use of, and obtain substantially all of the remaining benefits from, the metal.

Revenue is measured at the transaction price agreed under the contract and excludes any amounts collected on behalf of third parties. Payment of the transaction price is due immediately when the metal is transferred to the customer. A receivable is recognized when the metal is transferred to the customer, as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Metal Concentrate

The Company sells concentrate from its Chapada mine in Brazil. The concentrate is sold to independent smelting companies for extraction of the metal contents, which are predominantly copper, with small quantities of gold and silver.

Revenue from concentrate sales is recognized when control of the concentrate has transferred to the customer, which is typically upon loading of the concentrate onto the shipping vessel for shipment to the customer. At this point in time, the customer has the significant risks and rewards of ownership of the concentrate, and is committed to accept and pay for the concentrate. Although legal title does not pass until receipt of the first provisional payment, the fact that under the contract the customer has the right to process the concentrate as soon as it is received, indicates that the customer has obtained control of the concentrate prior to the transfer of title - i.e. the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the concentrate.

Concentrate sales include provisional pricing features whereby the price is provisional at the time of sale, with the final sales price based on the market price at a future specified date and the final physical attributes (i.e. quantity of contained metals) of the concentrate determined after further processing and assessment. The price adjustments associated with changes in market price and the physical attributes of the concentrate

| 14

give rise to variability in the consideration the Company will receive from the customer. The variability associated with the change in market prices is accounted for separately as a derivative.

At the point in time that control of the concentrate transfers to the customer, the Company recognizes revenue and a receivable (the latter, because the Company has determined it has an unconditional right to the consideration). Revenue is measured at the amount the Company expects to be entitled to - being the estimate of the price expected to be received upon final invoice (at the end of the quotational period) using the most recently determined estimate of metal quantity and the estimated forward price. The receivable is measured at fair value through profit or loss, and is marked to market through earnings each period prior to final settlement. The period between provisional and final invoicing is typically 3 to 4 months. The Company presents changes in the fair value of the receivable arising from provisionally priced contracts in the revenue line in the statement of operations.

Streaming arrangements and Advanced metal sales

From time to time, the Company enters into arrangements with customers pursuant to which, the Company receives consideration in advance of the delivery of metals.

Under advanced metal sales, the Company receives advanced consideration against the delivery of a fixed quantity of a specified metal over a specified period.

The Company has entered into the following advanced metal sales agreements:


•	On January 10, 2018, the Company entered into an advanced metal sales agreement pursuant to which, the Company received advanced consideration of $125.0 million in exchange for approximately 40.3 million pounds of copper to be delivered in the second half of 2018 and the first half of 2019.

Under streaming arrangements, the Company receives advanced consideration against the delivery of a portion of future metal production referenced to the mine(s) of the Company specified in the contract. In addition to the advanced consideration, the Company may also receive a cash payment as metals are delivered to the customer.

The Company has entered into the following streaming arrangements:

•

On October 27, 2015 the Company entered into three metal purchase agreements with Sandstorm pursuant to which, the Company received advanced consideration of $170.4 million against future deliveries of silver production from Cerro Moro, Minera Florida and Chapada, copper production from Chapada, and gold production from Agua Rica. In addition to the advanced consideration, the Company receives cash payments equal to 30% of market price at the date of delivery.


•	On March 31, 2016, the Company entered into a copper purchase agreement with Altius, pursuant to which, the Company received advanced consideration of $61.1 million against future deliveries of copper produced by the Company's Chapada mine in Brazil. In addition to the advanced consideration, the Company receives cash payments equal to 30% of the market price at the date of delivery.

The Company recognizes the advanced consideration as deferred revenue and recognizes the amounts in revenue as it satisfies its performance obligations to deliver metal to the customer over the life of the contract. In contracts for the delivery of gold or silver bullion, this is typically at the point in time when the metal is credited to the metal account of the customer. For copper sales, this is at the point in time when the copper, in the form of copper warrants, is delivered to the customer. Following the crediting of gold or silver to a customer’s metal account or the delivery of copper warrants, the customer has legal title to, physical possession of, and the risks and rewards of ownership of the metal, and therefore, the ability to direct the use of, and obtain substantially all of the remaining benefits from, the metal.

The Company determines the amortization of deferred revenue to the statement of operations on a per unit basis. In advanced metal sales arrangements, this is over the fixed number of ounces specified in the contract. In streaming arrangements, the estimated total quantity of metal expected to be delivered to the customer over the term of the contract is used. Subsequent changes to expected deliveries result in an adjustment to revenue in the year of change to retroactively adjust for the new number of ounces or pounds expected to be delivered under the contract.

Where consideration is received in advance of the Company’s performance of its obligation, there is an inherent financing component in the transaction. When the period between receipt of consideration and revenue recognition is greater than one year, the Company determines whether the financing component is significant to the contract.

| 15

Where a contract is determined to have a significant financing component, the transaction price is adjusted to reflect the financing. The discount rate used in adjusting the promised amount of consideration is the rate that would be reflected in a separate financing transaction between the Company and the customer at contract inception. This rate is not subsequently adjusted for any other changes over the contract term.

The accretion of the interest expense is recognized in the finance expense line in the statement of operations, unless capitalized to assets under construction in accordance with the Company’s policy on capitalized borrowing costs.

The Company estimates the current portion of deferred revenue based on quantities anticipated to be delivered over the next twelve months.

Critical Judgements in Applying Accounting Policies and Key Sources of Estimation Uncertainty

Application of Variable Consideration Constraint

The Company determines the amortization of deferred revenue to the statement of operations on a per unit basis using the expected quantity of metal (ounces for gold and silver and pounds for copper) that will be delivered over the term of the contract, which is based on geological reports and the Company’s LOM plan at contract inception. As subsequent changes to the expected quantity of metal to be delivered triggers a retrospective adjustment to revenue, management is required to estimate the ounces or pounds to be included in the denominator that will be sufficient such that subsequent changes are not expected to result in a significant revenue reversal. Accordingly, management includes reserves and portion of resources, which management is reasonably confident are transferable to reserves, in the calculation. With this approach, the Company considers that it is highly probable that changes in subsequent reserve and resource estimates will not result in a significant revenue reversal of previously recognized revenue.

6. OTHER (INCOME)/EXPENSES



For the three months ended March 31,	2018			2017
Change in provisions	$	5.2		$	1.5
Write-down of other assets	1.6			(2.5		)
Gain on sale of Canadian Exploration Properties (Note 4(c))	(39.0		)	—
Business transaction costs	1.6			1.8
(Gain)/loss on sale of assets	(0.5		)	0.7
Mark-to-market gain on deferred share units	(0.2		)	(0.3		)
Net loss on investments	1.0			3.7
Reorganization costs	2.4			0.5
Other expenses (i)	2.6			13.2
Other (income)/expenses	$	(25.3	)	$	18.6

(i) Included in other expenses in the prior year were $7.7 million of expenses related to standby costs incurred during El Peñón's suspension of operations associated with the collective bargaining negotiation.

| 16

7. FINANCE INCOME AND EXPENSE



For the three months ended March 31,	2018			2017 (restated)
Interest income	$	0.9		$	1.2
Unrealized gain on derivatives	10.2			—
Finance income	$	11.1		$	1.2

Unwinding of discounts on provisions	$	(5.0	)	$	(5.0	)
Interest expense on long-term debt	(18.5		)	(17.6		)
Fees on extinguishment of long-term debt	(14.7		)	—
Unrealized loss on derivatives	—			(3.1		)
Net foreign exchange loss	(3.3		)	(2.2		)
Amortization of deferred financing, bank, financing fees and other (i)	(9.2		)	(3.1		)
Finance expense	$	(50.7	)	$	(31.0	)
Net finance expense	$	(39.6	)	$	(29.8	)


(i)	Included in other finance expense during the current period is $5.0 million of non-cash interest expense related to the financing component of deferred revenue contracts (see Note 3(a)(i): Recent Accounting Pronouncements to the Company's Condensed Consolidated Interim Financial Statements).

8. INCOME TAXES



For the three months ended March 31,	2018		2017
Income tax expense/(recovery) is represented by:
Current income tax expense	$	26.5	$	10.4
Deferred income tax expense/(recovery)	2.2		(29.6		)
Net income tax expense/(recovery)	$	28.7	$	(19.2	)

Income tax expense is recognized based on management's best estimate of the average annual income tax rate expected for the full financial year multiplied by the pre-tax income of the interim reporting period.

The income tax rate for the three months ended March 31, 2018 was negative 21.8% (2017 - 76.5%). Included in deferred taxes is the loss on translation of tax balances of $4.8 million (2017 - recovery of $27.2 million), the tax of $14.5 million (2017 - nil) on the disposition of the Canadian Exploration Properties, the non-recognition of deferred tax assets on losses in non-profitable entities of $78.7 million (2017 - $10.7 million) and the deductible local foreign exchange losses of $13.4 million (2017 - taxable local foreign exchange gains of $14.4 million).

9. (LOSS)/EARNINGS PER SHARE

(Loss)/earnings per share is based on the weighted average number of common shares of the Company outstanding during the year. The diluted (loss)/earnings per share reflects the potential dilution of common share equivalents, such as outstanding share options, in the weighted average number of common shares outstanding during the year, if dilutive.



For the three months ended March 31,	2018			2017 (restated)
Weighted average number of common shares (in thousands) - basic	948,711			947,901
Weighted average number of dilutive share options (i)	—			—
Weighted average number of dilutive Restricted Share Units (i)	—			—
Weighted average number of common shares (in thousands) - diluted (i)	948,711			947,901

Attributable to Yamana Gold Inc. equityholders
(Loss)/earnings per share - basic and diluted
Net (loss)/earnings	$	(160.1	)	$	—
(Loss)/earnings per share - basic and diluted	$	(0.17	)	$	—

| 17


(i)	Effect of dilutive securities - the potential shares attributable to 884 share options ( 2017 - 876 share options) and 779,811 restricted share units ( 2017 - 481,953 restricted share units) were anti-dilutive for the three month period ended March 31, 2018 .

10. SUPPLEMENTARY CASH FLOW INFORMATION


(a)	Non-Cash Investing and Financing Transactions



For the three months ended March 31,	2018		2017
Interest capitalized to assets under construction	$	4.1	$	4.5
Issue of common shares on vesting of restricted share units ( Note 16(a))	$	1.0	$	1.0

(b) Net Change in Working Capital



For the three months ended March 31,	2018			2017
Net decrease/(increase) in:
Trade and other receivables	$	7.0		$	3.3
Inventories	(6.8		)	(11.0		)
Other assets	(21.2		)	(23.5		)
Net (decrease)/increase in:
Trade and other payables	(51.2		)	(34.8		)
Other liabilities	(1.3		)	(6.8		)
Movement in above related to foreign exchange	(10.5		)	6.9
Net change in working capital (i)	$	(84.0	)	$	(65.9	)


(i)	Change in working capital is net of items related to Property, Plant and Equipment.


(c)	Cash and Cash Equivalents



As at	March 31, 2018		December 31, 2017
Cash at bank	$	128.9	$	146.7
Bank short-term deposits	0.4		2.2
Total cash and cash equivalents (i)	$	129.3	$	148.9


(i)	Cash and cash equivalents consist of cash on hand, cash on deposit with banks, bank term deposits and highly liquid short-term investments with terms of less than 90 days from the date of acquisition.

(d) Other Non-Cash Expenses/(Recoveries)



For the three months ended March 31,	2018			2017
Write off / (recoveries) of assets	$	5.0		$	(4.4	)
Revaluation of employees' pension plan	3.7			5.3
Provision on indirect taxes	(2.9		)	(2.8		)
Legal expenses	3.7			1.7
Other expenses	0.7			3.1
Total non-cash expenses	$	10.2		$	2.9

| 18

11. FINANCIAL INSTRUMENTS


(a)	Financial Assets and Financial Liabilities by Categories



As at March 31, 2018	Financial assets at amortized cost		FVOCI - equity instruments		FV - Hedging Instruments		Mandatorily at FVTPL - others		Other financial liabilities at amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	—	$	129.3	$	—	$	129.3
Trade and other receivables	6.3		—		—		—		—		6.3
Receivables from provisional copper sales	—		—		—		13.3		—		13.3
Investments in equity securities	—		6.4		—		—		—		6.4
Warrants	—		—		—		1.8		—		1.8
Derivative assets - Hedging instruments	—		—		—		—		—		—
Derivative assets - Non-hedge	—		—		—		2.6		—		2.6
Other financial assets	14.6		—		—		—		—		14.6
Total financial assets	$	20.9	$	6.4	$	—	$	147.0	$	—	$	174.3

Financial liabilities
Total debt	$	—	$	—	$	—	$	—	$	1,674.6	$	1,674.6
Accounts payable and accrued liabilities	—		—		—		—		267.6		267.6
Derivative liabilities - Hedging instruments	—		—		3.0		—		—		3.0
Derivative liabilities - Non-hedge	—		—		—		—		—		—
Other financial liabilities	—		—		—		—		146.0		146.0
Total financial liabilities	$	—	$	—	$	3.0	$	—	$	2,088.2	$	2,091.2



As at December 31, 2017	Loans and receivables		Available-for-sale		Fair value through profit or loss		Derivative instruments in designated hedge accounting relationships		Other financial liabilities at amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	148.9	$	—	$	—	$	148.9
Trade and other receivables	8.1		—		—		—		—		8.1
Receivables from provisional copper sales	—		—		30.5		—		—		30.5
Investments in equity securities	—		4.6		—		—		—		4.6
Warrants	—		—		2.6		—		—		2.6
Derivative assets - Hedging instruments	—		—		—		6.7		—		6.7
Derivative assets - Non-hedge	—		—		2.5		—		—		2.5
Other financial assets	22.9		—		—		—		—		22.9
Total financial assets	$	31.0	$	4.6	$	184.5	$	6.7	$	—	$	226.8

Financial liabilities
Total debt	$	—	$	—	$	—	$	—	$	1,857.7	$	1,857.7
Accounts payable and accrued liabilities	—		—		—		—		345.3		345.3
Derivative liabilities - Hedging instruments	—		—		—		5.7		—		5.7
Derivative liabilities - Non-hedge	—		—		8.5		—		—		8.5
Other financial liabilities	—		—		—		—		164.6		164.6
Total financial liabilities	$	—	$	—	$	8.5	$	5.7	$	2,367.6	$	2,381.8


(b)	Fair Value of Financial Instruments


i)	Fair value measurements of financial assets and liabilities measured at fair value

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments that are measured at fair value:

| 19


Level 1:	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

The levels in the fair value hierarchy into which the Company’s financial assets and liabilities that are measured and recognized on the Condensed Consolidated Interim Balance Sheets at fair value on a recurring basis were categorized as follows:



	March 31, 2018						December 31, 2017
	Level 1 input		Level 2 input		Aggregate fair value		Level 1 input		Level 2 input		Aggregate fair value
Assets
Cash and cash equivalents	$	129.3	$	—	$	129.3	$	148.9	$	—	$	148.9
Receivables from provisional copper sales	—		13.3		13.3		—		30.5		30.5
Equity securities (Note 13(a))	6.4		—		6.4		4.6		—		4.6
Warrants (Note 13(a))	—		1.8		1.8		—		2.6		2.6
Derivative related assets (Note 13(a))	—		2.6		2.6		—		9.3		9.3
	$	135.7	$	17.7	$	153.4	$	153.5	$	42.4	$	195.9
Liabilities
Derivative related liabilities ( Note 13(c))	$	—	$	3.0	$	3.0	$	—	$	14.2	$	14.2
	$	—	$	3.0	$	3.0	$	—	$	14.2	$	14.2

At March 31, 2018, there were no financial assets and liabilities measured and recognized at fair value on a non-recurring basis.

There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2018. At March 31, 2018, there were no financial assets or liabilities measured and recognized on the Condensed Consolidated Interim Balance Sheets at fair value that would be categorized as Level 3 in the fair value hierarchy.


ii)	Valuation Methodologies Used in the Measurement of Fair Value for Level 2 Financial Assets and Financial Liabilities

Receivables from Provisional Copper Sales

The Company's copper concentrate sales are subject to provisional pricing with the final selling price adjusted at the end of the quotational period. At the end of each reporting period, the Company's accounts receivable relating to these contracts are marked-to-market based on quoted forward prices for which an active commodity market exists.

Warrants

The fair value of warrants is calculated using the Black-Scholes option pricing model, which uses a combination of quoted prices and market-derived inputs, including volatility estimates.

Derivative Related Assets and Liabilities

The fair value of derivative instruments is determined using either present value techniques or option pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs. The Company continues to monitor the potential impact of the recent instability of the financial markets, and will adjust its derivative contracts for credit risk based upon the credit default swap spread for each of the counterparties as warranted.


iii)	Carrying Value Versus Fair Value

Set out below is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those whose carrying amounts are a reasonable approximation of fair value:

| 20



		March 31, 2018				December 31, 2017
	Financial instrument classification	Carrying amount		Fair value (i)		Carrying amount		Fair value (i)
Debt
Senior unsecured notes	Other financial liabilities at amortized cost	$	1,499.5	$	1,490.5	$	1,754.8	$	1,751.5


(i)	The Company's senior unsecured notes are accounted for at amortized cost, using the effective interest rate method. The fair value required to be disclosed is determined by discounting the future cash flows by a discount factor based on an interest rate of 5% which reflects the Company's own credit risk.

Management assessed that the fair values of trade and other receivables, accounts payable and accrued liabilities, and other financial assets and liabilities approximate their carrying amounts, largely due to the short-term maturities of these instruments. Derivative assets and liabilities are already carried at fair value.


c)	Financial Instruments and Related Risks

Market risk is the risk that changes in market factors, such as foreign exchange, commodity prices or interest rates will affect the value of the Company's financial instruments. Market risks are managed by either accepting the risk or mitigating it through the use of derivatives and other economic hedges. As at March 31, 2018 there are no substantial changes to the market risk described in Note 16: Financial Instruments to the Company's Consolidated Annual Financial Statements.

The Company manages its exposure to fluctuations in commodity prices, and foreign exchange rates by entering into derivative financial instruments from time to time, in accordance with the Company's risk management policy. Details of these contracts are included in Note 16: Financial Instruments to the Company's Consolidated Annual Financial Statements. The Company did not enter into any new contracts during the quarter.


d)	New Accounting Policies

The below new accounting policies have been applied in the preparation of these Condensed Consolidated Interim Financial Statements.

Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, except as described below.

•

The Company has taken an exemption not to restate comparative information for prior periods with respect to classification and measurement (including impairment) requirements. Therefore, comparative periods have been restated only for retrospective application of the cost of hedging approach for the time value of option contracts. Differences in the carrying amounts of financial assets and financial liabilities resulting from the adoption of IFRS 9 are recognized in retained earnings/(deficit) and reserves as at January 1, 2018. Accordingly, the information presented for 2017 does not generally reflect the requirements of IFRS 9 but rather those of IAS 39.


•	The following assessments have been made on the basis of the facts and circumstances that existed at the date of initial application.


◦	The determination of the business model within which a financial asset is held.


◦	The designation and revocation of previous designations of certain financial assets and financial liabilities as measured at FVTPL.


◦	The designation of certain investments in equity instruments not held for trading as at FVOCI.


•	Changes to hedge accounting policies have been applied prospectively except for the cost of hedging approach for the time value component of options, which has been applied retrospectively to hedging relationships that existed on or were designated after January 1, 2017.


•	All hedging relationships designated under IAS 39 at December 31, 2017 met the criteria for hedge accounting under IFRS 9 at January 1, 2018 and are therefore regarded as continuing hedging relationships.


i)	Classification and Measurement of Financial Assets

On initial recognition, a financial asset is classified as measured at: amortized cost; FVOCI - debt investment; FVOCI - equity investment; or FVTPL. The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.

| 21

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:


•	it is held within a business model whose objective is to hold assets to collect contractual cash flows; and


•	its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:


•	it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and


•	its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition.

The following accounting policies apply to the subsequent measurement of financial assets.



Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses (see ii) below). Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. Refer to iii) below for derivatives designated as hedging instruments.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.


ii)	Impairment

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the credit risk on the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to twelve month expected credit losses. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized.

For trade receivables that are classified as financial assets at amortized cost, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables.


iii)	Derivative Instruments and Hedge Accounting

The Company uses derivative financial instruments to hedge its exposure to exchange rate fluctuations on foreign currency operating expenses and capital expenditures.

| 22

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivative hedging instruments to forecasted transactions. Hedge effectiveness is assessed based on the degree to which the cash flows from the derivative contracts are expected to offset the cash flows of the underlying transaction being hedged.

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in fair value is recognized in other comprehensive income, net of tax. For hedged items other than the purchase of non-financial assets, the amounts accumulated in other comprehensive income are reclassified to the consolidated statements of operations when the underlying hedged transaction, identified at contract inception, affects profit or loss. When hedging a forecasted transaction that results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the measurement of the initial carrying amount of the asset or liability.

Any ineffective portion of a hedge relationship is recognized immediately in the consolidated statements of operations. The Company has elected to exclude the time value component of options and the forward element of forward contracts from the hedging relationships, with changes in these amounts recorded in other comprehensive income and treated as a cost of hedging. For hedged items other than the purchase of non-financial assets, the cost of hedging amounts is reclassified to the consolidated statements of operations when the underlying hedged transaction affects profit or loss. When hedging a forecasted transaction that results in the recognition of a non-financial asset, the cost of hedging is added to the carrying amount of the non-financial asset.

When derivative contracts designated as cash flow hedges are terminated, expired, sold or no longer qualify for hedge accounting, hedge accounting is discontinued prospectively. Any amounts recorded in other comprehensive income up until the time the contracts do not qualify for hedge accounting remain in other comprehensive income. Amounts recognized in other comprehensive income are recognized in the consolidated statements of operations in the period in which the underlying hedged transaction is completed. Gains or losses arising subsequent to the derivative contracts not qualifying for hedge accounting are recognized in the period incurred in the consolidated statements of operations.

If the forecasted transaction is no longer expected to occur, then the amounts accumulated in other comprehensive income are reclassified to the consolidated statement of operations immediately.

12. INVENTORIES



As at,	March 31, 2018			December 31, 2017
Product inventories	$	30.4		$	35.6
Work in process	7.7			14.1
Ore stockpiles	127.9			126.6
Materials and supplies	74.5			93.7
	$	240.5		$	270.0
Less: non-current ore stockpiles included in property, plant and equipment (Note 14)	$	(114.9	)	$	(106.5	)
	$	125.6		$	163.5

The inventory balance at December 31, 2017 includes $40.6 million of inventories related to Brio Gold. Due to the classification of Brio Gold as a disposal group held for sale in the current period, the balance at March 31, 2018 excludes inventories related to Brio Gold. Refer to Note 4: Divestitures to the Company's Condensed Consolidated Interim Financial Statements.

The amount of inventories recognized as an expense during the three months ended March 31, 2018 was $ 259.2 million ( 2017 - $238.0 million ) and is included in cost of sales excluding depletion, depreciation and amortization. For the three months ended March 31, 2018 , a total charge of $4.6 million was recorded to adjust inventory ( 2017 - $1.7 million recovery) which is included in cost of sales excluding depletion, depreciation and amortization.

| 23

13. SELECTED COMPOSITION NOTES


(a)	Other Financial Assets



As at,	March 31, 2018		December 31, 2017
Derivative related assets	$	2.6	$	9.3
Royalty and other receivables	12.7		21.0
Investments in financial securities (i)	8.2		7.2
Other	2.0		1.8
	$	25.5	$	39.3
Current	$	7.9	$	13.2
Non-current	17.6		26.1
	$	25.5	$	39.3


(i)	Investments in financial securities include equity securities and warrants with a cost of $17.8 million (December 31, 2017 - $16.4 million ) and a fair value of $8.2 million (December 31, 2017 - $7.2 million ).


(b)	Other Assets



As at,	March 31, 2018		December 31, 2017
Income tax recoverable and installments	$	22.8	$	23.1
Tax credits recoverable (i)	104.6		118.8
Advances and deposits	52.2		53.1
Other long-term advances	13.7		15.2
	$	193.3	$	210.2
Current	$	113.4	$	119.4
Non-current	79.9		90.8
	$	193.3	$	210.2


(i)	Tax credits recoverable consist of sales taxes which are recoverable either in the form of a refund from the respective jurisdictions in which the Company operates or against other taxes payable and value-added tax.


(c)	Other Financial Liabilities



As at,	March 31, 2018		December 31, 2017
Royalty payable (i)	$	16.1	$	18.1
Payable related to purchase of mineral interests (ii)	10.8		10.8
Severance accrual	32.9		32.0
Deferred share units/performance share units liability (Note 17)	19.5		21.0
Accounts receivable financing credit (iii)	40.3		54.1
Current portion of long-term debt (Note 15)	36.3		110.0
Derivative related liabilities	3.0		14.2
Other	26.4		28.6
	$	185.3	$	288.8
Current	$	101.7	$	203.1
Non-current	83.6		85.7
	$	185.3	$	288.8

(i)

Included in Royalty payable is an agreement with Miramar Mining Corporation (“Miramar” acquired by Newmont Mining Corporation) for a Proceeds Interest of C$15.4 million . The agreement entitles Miramar to receive payment of this interest over time calculated as the economic equivalent of a 2.5% net smelter return royalty on all production from the Company’s mining properties held at the time of Northern Orion entering into the agreement, or 50% of the net proceeds of disposition of any interest in the Agua Rica property until the Proceeds Interest of C$15.4 million is paid. Since inception, partial payments of $6.0 million and appreciation of the US Dollar have resulted in the liability being measured at $5.6 million as at March 31, 2018. Also included in Royalty payable is $10.5 million of amounts payable by Canadian Malartic.


(ii)	Payable related to purchase of the remaining interests in Agua Fria.


(iii)	Accounts receivable financing credit is payable within 30 days from the proceeds on concentrate sales.

| 24


(d)	Other Provisions and Liabilities



As at,	March 31, 2018		December 31, 2017
Other taxes payable	$	14.2	$	15.8
Provision for repatriation taxes payable (i)	22.9		22.9
Provision for taxes	21.4		24.4
Deferred revenue on metal streaming arrangements - Altius ( ii )	60.4		57.5
Deferred revenue on metal streaming arrangements - Sandstorm ( iii)	171.3		158.5
Deferred revenue on advanced metal sales - other ( iv)	127.0		—
Other provisions and liabilities	59.5		74.2
	$	476.7	$	353.3
Current	$	144.2	$	56.7
Non-current	332.5		296.6
	$	476.7	$	353.3


(i)	The Company is subject to additional taxes in Chile on the repatriation of profits to its foreign shareholders. Total taxes in the amount of $ 22.9 million ( December 31, 2017 - $22.9 million ) have been accrued on the assumption that the profits will be repatriated.


(ii)	On March 31, 2016 , the Company entered into a metal streaming arrangement with Altius, pursuant to which, the Company received advanced consideration of $61.1 million against future deliveries of copper produced by the Company's Chapada mine in Brazil. The advanced consideration is accounted for as deferred revenue, with revenue recognized when copper is delivered to Altius.

The following table summarizes the changes in deferred revenue:



	2018
Balance as at January 1, 2018	$	57.5
Adjustment on initial adoption of IFRS 15 (Note 3(a)(i))	3.4
Adjusted balance at January 1, 2018	$	60.9
Recognition of revenue during the year	(0.5		)
	$	60.4
Current portion	$	2.4
Non-current portion	58.0
Balance as at March 31, 2018	$	60.4

(iii)

On October 27, 2015 the Company entered into three metal streaming arrangements with Sandstorm pursuant to which, the Company received advanced consideration of $170.4 million against future deliveries of silver production from Cerro Moro, Minera Florida and Chapada, copper production from Chapada, and gold production from Agua Rica. The advanced consideration is accounted for as deferred revenue, with revenue recognized when the respective metals are delivered to Sandstorm.

The following table summarizes the changes in deferred revenue:



	2018
Balance as at January 1, 2018	$	158.5
Adjustment on initial adoption of IFRS 15 (Note 3(a)(i))	13.0
Adjusted balance at January 1, 2018	$	171.5
Recognition of revenue during the year	(0.2		)
	$	171.3
Current portion	$	4.8
Non-current portion	166.5
Balance as at March 31, 2018	$	171.3

(iv)

On January 10, 2018, the Company entered into an advanced metal sales agreement pursuant to which, the Company received advanced consideration of $125.0 million in exchange for approximately 40.3 million pounds of copper to be delivered in the second half of 2018 and the first half of 2019. The advanced consideration is accounted for as deferred revenue, with revenue recognized as copper is delivered to the counterparty. As the Company received consideration more than a year in advance of completion of delivery, the Company has accounted for the financing component in the transaction. Accordingly, in the three months to March 31, 2018, the Company recognized an interest expense of $2.0 million, with a corresponding increase to the deferred revenue balance.

| 25

14. PROPERTY, PLANT AND EQUIPMENT



	Mining property costs subject to depletion (i)			Mining property costs not subject to depletion (ii)			Land, building, plant & equipment			Total
Cost, January 1, 2017	$	5,860.4		$	5,982.0		$	2,745.2		$	14,587.6
Additions	231.9			317.9			94.1			643.9
Reclassification, transfers and other non-cash movements (iii)	99.5			(24.1		)	(29.1		)	46.3
Change in decommissioning, restoration and similar liabilities	47.4			0.5			—			47.9
Disposals	1.0			(10.1		)	(28.4		)	(37.5		)
Reclassified as held for sale (Note 4)	(109.9		)	(129.8		)	(92.6		)	(332.3		)
Cost, December 31, 2017	$	6,130.3		$	6,136.4		$	2,689.2		$	14,955.9
Additions	26.5			102.4			20.9			149.8
Reclassification, transfers and other non-cash movements (iii)	18.4			(16.9		)	10.4			11.9
Change in decommissioning, restoration and similar liabilities	(2.3		)	—			—			(2.3		)
Reclassified as held for sale (Note 4)	(161.1		)	(106.9		)	(180.1		)	(448.1		)
Disposals	—			—			(3.1		)	(3.1		)
Cost, March 31, 2018	$	6,011.8		$	6,115.0		$	2,537.3		$	14,664.1

Accumulated depletion and depreciation, January 1, 2017	$	3,569.4		$	2,081.2		$	1,370.7		$	7,021.3
Depletion and depreciation for the year	224.9			—			212.5			437.4
Impairment	129.7			146.3			80.5			356.5
Disposals	—			(2.9		)	(13.0		)	(15.9		)
Eliminated on reclassification as held for sale (Note 4)	(49.8		)	—			(53.3		)	(103.1		)
Accumulated depletion and depreciation, December 31, 2017	$	3,874.2		$	2,224.6		$	1,597.4		$	7,696.2
Depletion and depreciation for the period	56.8			—			43.5			100.3
Impairment (iv)	90.7			78.3			101.4			270.4
Eliminated on reclassification as held for sale (Note 4)	(97.0		)	—			(105.5		)	(202.5		)
Disposals	—			1.1			(2.0		)	(0.9		)
Accumulated depletion and depreciation, March 31, 2018	$	3,924.7		$	2,304.0		$	1,634.8		$	7,863.5
Carrying value, December 31, 2017	$	2,256.1		$	3,911.8		$	1,091.8		$	7,259.7
Carrying value, March 31, 2018	$	2,087.1		$	3,811.0		$	902.5		$	6,800.6


(i)	The following table shows the reconciliation of capitalized stripping costs incurred in the production phase:



As at,	March 31, 2018			December 31, 2017
Balance, beginning of period	$	402.3		$	285.3
Additions	14.3			135.2
Amortization	(9.3		)	(18.2		)
Reclassified as held for sale (Note 4)	(105.2		)	—
Balance, end of period	$	302.1		$	402.3


(ii)	Mining property costs not subject to depletion include: capitalized mineral reserves and exploration potential acquisition costs, capitalized exploration & evaluation costs, capitalized development costs, assets under construction, capital projects and acquired mineral resources at operating mine sites.


(iii)	Reclassification, transfers and other non-cash movements includes $ 18 million ( 2017 - $54.2 million ) in ore stockpile inventory which is not expected to be processed within the next twelve months for a cumulative balance at March 31, 2018 of $114.9 million (December 31, 2017 - $106.5 million).


(iv)	During the period, the Company recognized impairment charges on the Brio Gold mineral interests. Balance includes the amount in relation to the non controlling interest of Brio Gold. Refer to Note 4: Divestitures to the Company's Condensed Consolidated Interim Financial Statements for additional details.

| 26

15. LONG-TERM DEBT



As at,	March 31, 2018			December 31, 2017
$300 million senior debt notes, issued December 4, 2017	$	296.9		$	297.5
$500 million senior debt notes, issued June 30, 2014	496.3			496.2
$300 million senior debt notes, issued June 10, 2013	295.2			295.1
$500 million senior debt notes , issued March 23, 2012	411.1			484.6
$270 million senior debt notes , issued December 18, 2009 (iv)	—			181.4
$1 billion revolving facility (ii)	172.2			27.0
$75 million revolving facility (iii)	—			72.6
Long-term debt from 50% interest of Canadian Malartic	2.9			3.3
Total debt	$	1,674.6		$	1,857.7
Less: current portion of long-term debt (Note 13(c))	(36.3		)	(110.0		)
Long-term debt (i)	$	1,638.3		$	1,747.7


(i)	Balances are net of transaction costs of $11.9 million, net of amortization ( December 31, 2017 - $14.3 million ).


(ii)	During the three months ended March 31, 2018, the Company drew $270.0 million and repaid $125.0 million on its revolving facility. The Company will, from time to time, repay balances outstanding on its revolving credit facility and intends to renew the facility upon maturity in 2021.

(iii)

Balance relates to Brio Gold's revolving facility. There were no draw downs or repayments in the quarter. As Brio Gold has been classified as a disposal group held for sale, the revolving credit balance has been reclassified to the liabilities associated with assets held for sale line of the balance sheet at March 31, 2018. Refer to Note 4: Divestitures to the Company's Condensed Consolidated Interim Financial Statements.


(iv)	On January 29, 2018, the Company redeemed $181.5 million of 6.97% senior notes due December 2019 at a make-whole price of 108.12.

The following is a schedule of long-term debt principal repayments, which includes corporate debt, the revolving facilities, and debt assumed from the 50% interest in Canadian Malartic:



	Long-term debt
2018	$	36.0
2019	1.8
2020	84.1
2021	175.0
2022	192.7
2023	261.2
2024	635.7
2025	—
2026	—
2027	300.0
	$	1,686.5

16. SHARE CAPITAL


(a)	Common Shares Issued and Outstanding

The Company is authorized to issue an unlimited number of common shares at no par value and a maximum of eight million first preference shares. There were no first preference shares issued or outstanding as at March 31, 2018 (December 31, 2017 : nil ).



	For the three months ended			For the year ended
	March 31, 2018			December 31, 2017
	Number of common shares			Number of common shares
Issued and outstanding - 948,858,214 common shares	Number of common shares	Amount		Number of common shares	Amount
(December 31, 2017 - 948,524,667 common shares):	(In thousands)	(In millions)		(In thousands)	(In millions)
Balance, beginning of year	948,525	$	7,633.7	947,798	$	7,630.5
Issued on vesting of restricted share units	304	1.0		591	2.9
Dividend reinvestment plan (i)	29	0.1		136	0.3
Balance, end of period	948,858	$	7,634.8	948,525	$	7,633.7

| 27

(i)

The Company has a dividend reinvestment plan to provide holders of common shares a simple and convenient method to purchase additional common shares by electing to automatically reinvest all or any portion of cash dividends paid on common shares held by the plan participant without paying any brokerage commissions, administrative costs or other service charges. As at March 31, 2018 , a total of 19,354,845 shares have subscribed to the plan.


(b)	Dividends Paid and Declared



For the three months ended March 31,	2018		2017
Dividends paid	$	4.8	$	4.8
Dividends declared in respect of the period	$	4.8	$	4.7
Dividend paid (per share)	$	0.005	$	0.005
Dividend declared in respect of the period (per share)	$	0.005	$	0.005

17. SHARE-BASED PAYMENTS

The total expense relating to share-based payments includes accrued compensation expense related to plans granted in the current period, plans granted in the prior period and adjustments to compensation associated with mark-to-market adjustments on cash-settled plans, as follows:



For the three months ended March 31,	2018			2017
Accrued expense on equity-settled compensation plans	$	1.1		$	1.0
Accrued expense on cash-settled compensation plans	(0.2		)	0.7
Total expense for instruments granted	$	0.9		$	1.7
Compensation expense for Brio Gold	0.2			1.7
Mark-to-market change on cash-settled plans	(0.3		)	(0.2		)
Total expense recognized as compensation expense	$	0.8		$	3.2

The following table summarizes the equity instruments outstanding related to share-based payments.



As at (In thousands)	March 31, 2018	December 31, 2017
Share options outstanding (i)	1,828	1,831
Restricted share units ("RSU") (ii)	2,680	1,474
Deferred share units ("DSU") (iii)	4,419	4,288
Performance share units ("PSU") (iii)	3,259	2,521


(i)	During the three months ended March 31, 2018, no share options were granted, and 3,394 share options expired.


(ii)	During the three months ended March 31, 2018, the Company granted 1,663,490 RSUs with a weighted average grant date fair value of C$4.15 per RSU; 153,907 RSUs were cancelled or forfeited; and a total of 299,958 RSUs vested and the Company credited $1.0 million (2017 - $1.0 million) to share capital in respect of RSUs that vested during the period.

(iii)

During the three months ended March 31, 2018, the Company granted 130,470 DSUs and recorded an expense of C$0.5 million. During the first quarter of 2017, the Company entered into a derivative contract to mitigate the volatility of share price on DSU compensation, effectively locking in the exposure of the Company for 3 million DSUs (approximately 80% of outstanding DSUs) at a value of C $3.5002 per share. For the three months March 31, 2018, the Company recorded a mark-to-market gain on DSUs of $1.2 million and a mark-to-market loss on the DSU hedge of $0.9 million.


(iv)	During the three months ended March 31, 2018, 1,214,412 PSU units were granted and 476,624 PSU units vested. The PSU plan has an expiry date on December 31, 2020 and had a fair value of C$2.90 per unit at March 31, 2018.

| 28

18. NON-CONTROLLING INTERESTS



As at,	March 31, 2018			December 31, 2017
Agua De La Falda S.A. (i)	$	18.7		$	18.7
Brio Gold Inc. (ii)	(35.9		)	115.2
	$	(17.2	)	$	133.9


(i)	The Company holds a 56.7% interest in the Agua De La Falda ("ADLF") project along with Corporación Nacional del Cobre de Chile ("Codelco"). The ADLF project is an exploration project that includes the Jeronimo Deposit and is located in northern Chile.

(ii)

The Company held approximately 53.6% of the issued and outstanding shares of Brio Gold as at March 31, 2018 (December 31, 2017 - 53.6% ). During the quarter ended March 31, 2018, Leagold Mining Corporation ("Leagold") announced that it had reached an agreement with Brio Gold under which, Leagold will acquire all of the outstanding shares of Brio Gold by way of a statutory plan of arrangement, which is expected to close in the second quarter of 2018. Refer to Note 4: Divestitures to the Company's Condensed Consolidated Interim Financial Statements for further discussion.

19. CAPITAL MANAGEMENT

The Company’s objectives in managing capital are to ensure sufficient liquidity to pursue its strategy of organic growth combined with strategic acquisitions, to ensure the externally imposed capital requirements relating to its long-term debt are being met, and to provide returns to its shareholders. The Company defines capital that it manages as net worth, which is comprised of total shareholders’ equity and debt obligations (net of cash and cash equivalents). Refer to Note 16: Share Capital and Note 15: Long-term Debt, respectively, to the Company's Condensed Consolidated Interim Financial Statements for a quantitative summary of these items.

The Company manages its capital structure and makes adjustments to it in light of general economic conditions, the risk characteristics of the underlying assets and the Company’s working capital requirements. In order to maintain or adjust its capital structure, the Company, upon approval from its Board of Directors, may issue shares, pay dividends, or undertake other activities as deemed appropriate under the specific circumstances. The Board of Directors reviews and approves any material transactions out of the ordinary course of business, including proposals on acquisitions or other major investments or divestitures, as well as capital and operating budgets. The Company has not made any changes to its policies and processes for managing capital during the year.

The Company has the following externally imposed financial covenants on certain of its debt arrangements:


(a)	Tangible net worth of at least $2.3 billion .


(b)	Maximum net total debt (debt less cash) to tangible net worth of 0.75 .


(c)	Leverage ratio (net total debt/EBITDA) to be less than or equal to 3.5 :1.

Not meeting these capital requirements could result in a condition of default by the Company. As at March 31, 2018 , the Company has met all of the externally imposed financial covenants.

20. OPERATING SEGMENTS

The Company bases its operating segments on the way information is reported and used by the Company's chief operating decision maker ("CODM"), being the Company's senior management team. The results of operating segments are reviewed by the CODM in order to make decisions about resources to be allocated to the segments and to assess their performance.

The Company considers each of its individual operating mine sites and its mine under construction (Cerro Moro) as reportable segments for financial reporting purposes. In addition to these reportable segments, the Company aggregates and discloses the financial results of other operating segments with similar economic characteristics as reviewed by the CODM, including exploration properties and corporate entities, under "Corporate and Other".

The following changes have been made to Company's reportable segments since December 31, 2017:


•	The Company's mine under construction (Cerro Moro), which was included in "Corporate and Other" at December 31, 2017, is now a separate reportable segment. The project has successfully transitioned from construction to the commissioning phase and the assets associated with Cerro Moro now comprise over 11% of the Company's total assets.

| 29


•	The CODM reviews the results of operating mines that the Company does not intend to manage in the long-term and for which a disposal plan has been initiated, as one operating segment. Accordingly, Gualcamayo and Brio Gold, which were separate reportable operating segments at December 31, 2017 are now grouped into one reportable operating segment, "Other Mines".

Comparatives have been adjusted to conform to the change in presentation adopted in the current period.


(a)	Information about Assets and Liabilities



As at March 31, 2018	Chapada		El Peñón		Canadian Malartic		Jacobina		Minera Florida		Cerro Moro		Other Mines		Corporate and Other (i)		Total
Total assets	$	776.2	$	698.8	$	1,746.3	$	788.6	$	329.9	$	961.9	$	510.6	$	2,530.1	$	8,342.4
Total liabilities	$	222.8	$	176.1	$	448.3	$	158.5	$	102.5	$	86.0	$	263.7	$	2,764.6	$	4,222.5



As at December 31, 2017	Chapada		El Peñón		Canadian Malartic		Jacobina		Minera Florida		Cerro Moro		Other Mines		Corporate and Other (i)		Total
Total assets	$	798.2	$	828.4	$	1,869.6	$	783.3	$	458.0	$	897.6	$	811.3	$	2,316.9	$	8,763.3
Total liabilities	$	318.0	$	221.5	$	436.4	$	162.0	$	147.8	$	75.5	$	203.5	$	2,751.3	$	4,316.0


(i)	"Corporate and other" includes Agua Rica ($ 1.1 billion) (December 31, 2017 - $ 1.1 billion), other advanced stage development projects, exploration properties and corporate entities.


(b)	Information about Profit or Loss



For the three months ended March 31, 2018	Chapada			El Peñón			Canadian Malartic			Jacobina			Minera Florida			Other Mines			Corporate and other			Total
Revenue (ii)	$	105.9		$	71.2		$	109.4		$	43.8		$	25.1		$	94.3		$	—		$	449.7
Cost of sales excluding depletion, depreciation and amortization	(51.6		)	(46.5		)	(47.8		)	(24.0		)	(18.4		)	(70.8		)	(0.1		)	$	(259.2	)
Gross margin excluding depletion, depreciation and amortization	$	54.3		$	24.7		$	61.6		$	19.8		$	6.7		$	23.5		$	(0.1	)	$	190.5
Depletion, depreciation and amortization	(11.7		)	(20.8		)	(30.9		)	(8.7		)	(10.0		)	(20.0		)	(2.0		)	$	(104.1	)
Impairment of mining properties	$	—		$	—		$	—		$	—		$	—		(103.0		)	$	—		$	(103.0	)
Segment income/(loss)	$	42.6		$	3.9		$	30.7		$	11.1		$	(3.3	)	$	(99.5	)	$	(2.1	)	$	(16.6	)
Other expenses (i)																						(115.3		)
Loss before taxes																						$	(131.9	)
Income tax expense																						(28.7		)
Net loss																						$	(160.6	)



For the three months ended March 31, 2017 (restated)	Chapada			El Peñón			Canadian Malartic			Jacobina			Minera Florida			Other Mines			Corporate and other			Total
Revenue (ii)	$	85.2		$	60.0		$	82.4		$	40.4		$	30.2		$	105.3		$	—		$	403.5
Cost of sales excluding depletion, depreciation and amortization	(48.7		)	(37.2		)	(36.5		)	(23.0		)	(22.1		)	(70.5		)	—			(238.0		)
Gross margin excluding depletion, depreciation and amortization	$	36.5		$	22.8		$	45.9		$	17.4		$	8.1		$	34.8		$	—		$	165.5
Depletion, depreciation and amortization	(6.7		)	(15.8		)	(31.9		)	(10.9		)	(11.0		)	(27.9		)	(1.8		)	(106.0		)
Impairment of mining properties	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Segment income/(loss)	$	29.8		$	7.0		$	14.0		$	6.5		$	(2.9	)	$	6.9		$	(1.8	)	$	59.5
Other expenses (i)																						(77.7		)
Loss before taxes																						$	(18.2	)
Income tax recovery																						19.2
Net earnings																						$	1.0

(i)

Other expenses are comprised of general and administrative expense of $26.2 million ( 2017 - $25.3 million ), exploration and evaluation expense of $3.8 million ( 2017 - $4.0 million ), net finance expense of $39.6 million ( 2017 - $29.8 million ), other operating (income) expenses of $(25.3) million ( 2017 - $18.6 million ) and expenses related to impairment of non-operating mineral properties of $71.0 million (2017 - $nil). Refer to Note 4: Divestitures to the Company's Condensed Consolidated Interim Financial Statements for additional details.

| 30

(ii)

Intersegment sales are eliminated in the above information reported to the Company's CODM. For the three months ended March 31, 2018, intersegment purchases included $388.8 million of gold, silver and copper purchased by the Company's corporate office from the Company's producing mines (2017 - $343.1 million ) and revenue related to the sale of these metals to third parties was $388.8 million (2017 - $343.1 million ).



Capital expenditures	Chapada		El Peñón		Canadian Malartic		Jacobina		Minera Florida		Cerro Moro		Other Mines		Corporate and other		Total
For the three months ended March 31, 2018	$	5.6	$	10.9	$	21.3	$	6.7	$	9.7	$	48.8	$	21.7	$	7.1	$	131.8
For the three months ended March 31, 2017	$	15.7	$	14.6	$	14.2	$	10.6	$	8.8	$	35.3	$	23.3	$	6.9	$	129.4

21. CONTRACTUAL COMMITMENTS

Construction and Service Contracts



As at,	March 31, 2018		December 31, 2017
Within 1 year	$	542.8	$	515.3
Between 1 to 3 years	544.9		501.7
Between 3 to 5 years	127.8		150.0
After 5 years	0.7		—
	$	1,216.2	$	1,167.0

Operating Leases

The Company leases office premises under non-cancellable operating leases. The total of future minimum lease payments under non-cancellable operating leases are as follows:



As at,	March 31, 2018		December 31, 2017
Within 1 year	$	2.0	$	2.1
Between 1 and 5 years	8.4		8.6
After 5 years	5.4		6.1
	$	15.8	$	16.8

22. CONTINGENCIES

Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. Certain conditions may exist as of the date the financial statements are issued that may result in a loss to the Company, but which will be resolved only when one or more future events occur or fail to occur. The impact of any resulting loss from such matters affecting these Consolidated Financial Statements of the Company may be material.

Canadian Malartic

On August 2, 2016, Canadian Malartic General Partnership (“CMGP”), a general partnership jointly owned by the Company and Agnico Eagle Mines Limited (the "Partnership"), was served with a class action lawsuit with respect to allegations involving the Canadian Malartic mine. The complaint is in respect of "neighbourhood annoyances" arising from dust, noise, vibrations and blasts at the mine. The plaintiffs are seeking damages in an unspecified amount as well as punitive damages in the amount of $ 20 million. The class action was certified in May 2017. In November 2017, a declaratory judgment was issued allowing the Partnership to settle individually with class members for 2017. The plaintiffs have since announced that they intend to file an application for leave to appeal this declaratory judgment. On December 11, 2017, hearings were completed in respect of certain preliminary matters, including the Partnership's application for partial dismissal of the class action. The Company and the Partnership will take all necessary steps to defend themselves from this lawsuit.

| 31

23. SUBSEQUENT EVENTS


(a)	Shareholder Supported Take-over Bid for Brio Gold Inc.

24. GUARANTOR SUBSIDIARIES FINANCIAL STATEMENTS

The obligations of the Company under the senior debt notes and revolver facility are guaranteed by the following 100% owned subsidiaries of the Company (the ‘‘guarantor subsidiaries’’): Mineração Maracá Industria e Comércio S.A., Jacobina Mineração e Comércio Ltda., Minera Meridian Limitada, Minera Florida Limitada, Yamana Chile Rentista de Capitales Mobiliarios Limitada, Yamana Argentina Holdings B.V., and Yamana Malartic Canada Inc. All guarantees by the guarantor subsidiaries are joint and several, and full and unconditional, subject to certain customary release provisions contained in the indenture (as supplemented) governing the senior debt notes. Based on the domestic regulations of jurisdictions of the subsidiaries, collection of funds in the form of dividend or loan payments would be subject to customary repatriation restrictions.

The following tables outline separate condensed financial information related to the issuer, and the guarantor and non-guarantor subsidiaries and as set out in the Condensed Consolidated Interim Balance Sheets as at March 31, 2018 and December 31, 2017 and the Condensed Consolidated Interim Statements of Operations, Condensed Consolidated Interim Statements of Comprehensive Loss and Condensed Consolidated Interim Statements of Cash Flows for the three months ended March 31, 2018 and March 31, 2017 . For the purposes of this information, the financial information of the Company and the guarantor subsidiaries reflect investments in subsidiary companies on an equity accounting basis and are in compliance with Rule 3-10 of Regulation S-X. As provided for under Rule 3-10 of Regulation S-X the Company’s basis is “pushed down” to the applicable subsidiary columns.

| 32

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS



As at March 31, 2018	Yamana Gold Inc. (parent)		Guarantor subsidiaries		Non-guarantors			Eliminations and reclassifications			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	104.4	$	15.3	$	9.6		$	—		$	129.3
Trade and other receivables	13.3		5.5		0.8			—			19.6
Inventories	9.3		112.2		4.1			—			125.6
Other financial assets	3.9		0.8		3.2			—			7.9
Other assets	3.1		85.0		25.3			—			113.4
Assets held for sale	—		—		510.6			—			510.6
Intercompany receivables	—		119.8		9.5			(129.3		)	—
	$	134.0	$	338.6	$	563.1		$	(129.3	)	$	906.4
Non-current assets:
Property, plant and equipment	$	24.1	$	3,550.6	$	3,225.9		$	—		$	6,800.6
Investment in associates	4,434.5		164.3		—			(4,598.8		)	—
Other financial assets	13.1		4.2		0.3			—			17.6
Deferred tax assets	73.0		13.9		2.7			—			89.6
Goodwill and intangibles	34.0		408.8		5.5			—			448.3
Other assets	—		40.7		39.2			—			79.9
Intercompany receivables	1,416.5		—		—			(1,416.5		)	—
Total assets	$	6,129.2	$	4,521.1	$	3,836.7		$	(6,144.6	)	$	8,342.4
Liabilities
Current liabilities:
Trade and other payables	$	37.5	$	165.9	$	64.2		$	—		$	267.6
Income taxes payable	—		17.0		1.8			—			18.8
Other financial liabilities	38.0		55.4		8.3			—			101.7
Other provisions and liabilities	102.7		9.5		32.0			—			144.2
Liabilities relating to assets held for sale	—		—		263.2			—			263.2
Intercompany payables	129.3		—		—			(129.3		)	—
	$	307.5	$	247.8	$	369.5		$	(129.3	)	$	795.5
Non-current liabilities:
Long-term debt	$	1,636.7	$	1.6	$	—		$	—		$	1,638.3
Decommissioning, restoration and similar liabilities	—		189.1		37.7			—			226.8
Deferred tax liabilities	5.5		559.4		583.3			—			1,148.2
Other financial liabilities	19.5		39.6		24.5			—			83.6
Other provisions and liabilities	25.3		70.6		236.6			—			332.5
Intercompany payables	—		1,606.1		(189.6		)	(1,416.5		)	—
Total liabilities	$	1,994.5	$	2,714.2	$	1,062.0		$	(1,545.8	)	$	4,224.9
Equity
Equity attributable to Yamana Gold Inc. shareholders	$	4,134.7	$	1,806.9	$	2,756.0		$	(4,562.9	)	$	4,134.7
Non-controlling interests	—		—		18.7			(35.9		)	(17.2		)
Total equity	$	4,134.7	$	1,806.9	$	2,774.7		$	(4,598.8	)	$	4,117.5
Total liabilities and equity	$	6,129.2	$	4,521.1	$	3,836.7		$	(6,144.6	)	$	8,342.4

| 33



As at December 31, 2017*	Yamana Gold Inc. (parent)		Guarantor subsidiaries		Non-guarantors			Eliminations and reclassifications			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	98.2	$	24.9	$	25.8		$	—		$	148.9
Trade and other receivables	24.4		10.2		4.0			—			38.6
Inventories	11.8		109.0		42.7			—			163.5
Other financial assets	2.6		—		10.6			—			13.2
Other assets	3.1		89.1		27.2			—			119.4
Assets held for sale	—		123.2		232.6			—			355.8
Intercompany receivables			125.9		19.1			(145.0		)	—
	$	140.1	$	482.3	$	362.0		$	(145.0	)	$	839.4
Non-current assets:
Property, plant and equipment	$	24.4	$	3,556.5	$	3,678.8		$	—		$	7,259.7
Investment in associates	4,554.2		177.5		—			(4,731.7		)	—
Other financial assets	17.3		4.7		4.1			—			26.1
Deferred tax assets	73.0		14.7		10.1			—			97.8
Goodwill and intangibles	34.8		409.1		5.6			—			449.5
Other assets	—		44.6		46.2			—			90.8
Intercompany receivables	1,486.4		—		—			(1,486.4		)	—
Total assets	$	6,330.2	$	4,689.4	$	4,106.8		$	(6,363.1	)	$	8,763.3
Liabilities
Current liabilities:
Trade and other payables	$	49.7	$	191.5	$	104.2		$	—		$	345.4
Income taxes payable	—		87.0		4.8			—			91.8
Other financial liabilities	121.4		56.7		25.0			—			203.1
Other provisions and liabilities	1.0		11.6		44.1			—			56.7
Liabilities relating to assets held for sale	—		1.1		82.6			—			83.7
Intercompany payables	145.0		—		—			(145.0		)	—
	$	317.1	$	347.9	$	260.7		$	(145.0	)	$	780.7
Non-current liabilities:
Long-term debt	$	1,673.2	$	1.9	$	72.6		$	—		$	1,747.7
Decommissioning, restoration and similar liabilities	—		185.8		72.4			—			258.2
Deferred tax liabilities	5.5		553.8		587.8			—			1,147.1
Other financial liabilities	21.0		38.7		26.0			—			85.7
Other provisions and liabilities	—		70.4		226.2			—			296.6
Intercompany payables	—		1,743.0		(256.6		)	(1,486.4		)	—
Total liabilities	$	2,016.8	$	2,941.5	$	989.1		$	(1,631.4	)	$	4,316.0
Equity
Equity attributable to Yamana Gold Inc. shareholders	$	4,313.4	$	1,747.9	$	3,099.0		$	(4,846.9	)	$	4,313.4
Non-controlling interests	—		—		18.7			115.2			133.9
Total equity	$	4,313.4	$	1,747.9	$	3,117.7		$	(4,731.7	)	$	4,447.3
Total liabilities and equity	$	6,330.2	$	4,689.4	$	4,106.8		$	(6,363.1	)	$	8,763.3

*Comparatives in respect of certain intercompany balances have been reclassified to conform to the change in presentation adopted in the current period.

| 34

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS



For the three months ended March 31, 2018	Yamana Gold Inc. (parent)			Guarantor subsidiaries			Non-guarantors			Eliminations and reclassifications			Consolidated
Revenue	$	375.1		$	460.4		$	98.1		$	(483.9	)	$	449.7
Cost of sales excluding depletion, depreciation and amortization	(375.8		)	(292.0		)	(73.3		)	481.9			(259.2		)
Gross margin excluding depletion, depreciation and amortization	$	(0.7	)	$	168.4		$	24.8		$	(2.0	)	$	190.5
Depletion, depreciation and amortization	(1.7		)	(82.0		)	(20.4		)	—			(104.1		)
Impairment of mining properties	—			—			(103.0		)	—			(103.0		)
Mine operating (loss)earnings	(2.4		)	86.4			(98.6		)	(2.0		)	(16.6		)
Expenses (i)
General and administrative	$	(15.1	)	$	(1.6	)	$	(9.5	)	$	—		$	(26.2	)
Exploration and evaluation	(0.2		)	(1.1		)	(2.5		)	—			(3.8		)
Equity (loss)/income from associates	(143.2		)	(12.9		)	—			156.1			—
Other income/(expenses)	1.4			32.4			(8.5		)	—			25.3
Impairment of non-operating mining properties	—			—			(71.0		)	—			(71.0		)
Operating (loss)/income	(159.5		)	103.2			(190.1		)	154.1			(92.3		)
Finance income (i)	43.0			19.4			48.2			(99.5		)	11.1
Finance expense	(41.9		)	(49.7		)	(55.6		)	96.5			(50.7		)
Net finance (expense)/income	1.1			(30.3		)	(7.4		)	(3.0		)	(39.6		)
(Loss)/earnings before taxes	(158.4		)	72.9			(197.5		)	151.1			(131.9		)
Income tax (expense)/recovery	(2.2		)	(36.1		)	9.6			—			(28.7		)
Net (loss)/earnings	(160.6		)	36.8			(187.9		)	151.1			(160.6		)

Attributable to:
Yamana Gold Inc. equityholders	(160.6		)	36.8			(187.4		)	151.1			(160.1		)
Non-controlling interests	—			—			(0.5		)	—			(0.5		)
Net (loss)/earnings	(160.6		)	36.8			(187.9		)	151.1			(160.6		)

Total other comprehensive (loss)/income	0.3			—			(1.9		)	1.9			0.3
Total comprehensive (loss)/income	(160.3		)	36.8			(189.8		)	153.0			(160.3		)

(i) Balances are net of intercompany movements in the respective classifications which are eliminated on consolidation.

| 35



For the three months ended March 31, 2017	Yamana Gold Inc. (parent)			Guarantor subsidiaries			Non-guarantors			Eliminations and reclassifications			Consolidated
Revenue	$	348.6		$	367.1		$	106.9		$	(419.1	)	$	403.5
Cost of sales excluding depletion, depreciation and amortization	(339.4		)	(248.6		)	(69.4		)	419.4			(238.0		)
Gross margin excluding depletion, depreciation and amortization	$	9.2		$	118.5		$	37.5		$	0.3		$	165.5
Depletion, depreciation and amortization	(1.6		)	(76.2		)	(28.2		)	—			(106.0		)
Impairment of mining properties	—			—			—			—			—
Mine operating earnings	$	7.6		$	42.3		$	9.3		$	0.3		$	59.5
Expenses (i)
General and administrative	(14.1		)	(2.5		)	(8.7		)	—			(25.3		)
Exploration and evaluation	(0.2		)	(1.8		)	(2.0		)	—			(4.0		)
Equity (loss)/income from associates	(6.2		)	(1.2		)	—			7.4			—
Other income/(expenses)	(4.3		)	(15.8		)	1.5			—			(18.6		)
Impairment of non-operating mining properties	—			—			—			—			—
Operating (loss)/income	$	(17.2	)	$	21.0		$	0.1		$	7.7		$	11.6
Finance income (i)	30.9			17.6			27.5			(74.8		)	1.2
Finance expense	(14.6		)	(43.5		)	(43.6		)	70.7			(31.0		)
Net finance (expense)/income	$	16.3		$	(25.9	)	$	(16.1	)	$	(4.1	)	$	(29.8	)
(Loss)/earnings before taxes	$	(0.9	)	$	(4.9	)	$	(16.0	)	$	3.6		$	(18.2	)
Income tax recovery/(expense)	1.9			8.1			9.2			—			19.2
Net earnings/(loss)	$	1.0		$	3.2		$	(6.8	)	$	3.6		$	1.0

Attributable to:
Yamana Gold Inc. equityholders	$	1.0		$	3.2		$	(7.8	)	$	3.6		$	—
Non-controlling interests	$	—		$	—		$	1.0		$	—		$	1.0
Net earnings/(loss)	$	1.0		$	3.2		$	(6.8	)	$	3.6		$	1.0

Total other comprehensive income/(loss)	$	15.7		$	—		$	13.0		$	(13.0	)	$	15.7
Total comprehensive income/(loss)	$	16.7		$	3.2		$	6.2		$	(9.4	)	$	16.7

(i) Balances are net of intercompany movements in the respective classifications which are eliminated on consolidation.

| 36

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS



For the three months ended March 31, 2018	Yamana Gold Inc. (parent)			Guarantor subsidiaries			Non-guarantors			Eliminations and reclassifications			Consolidated
Operating activities
(Loss)/earnings before taxes	$	(158.4	)	$	72.8		$	(197.3	)	$	151.0		$	(131.9	)
Adjustments to reconcile (loss)/earnings before taxes to net operating cash flows:
Depletion, depreciation and amortization	1.7			82.0			20.4			—			104.1
Share-based payments	0.6			—			0.2			—			0.8
Equity loss/(income) from associate	143.3			12.9			—			(156.2		)	—
Finance income	(43.0		)	(19.4		)	(48.2		)	99.5			(11.1		)
Finance expense	41.9			49.7			55.6			(96.5		)	50.7
Mark-to-market on sales of concentrate and price adjustments on unsettled invoices	8.6			—			—			—			8.6
Mark-to-market on fair value through profit or loss instruments	1.0												1.0
Impairment of mineral properties	—			—			174.0						174.0
Amortization of deferred revenue on metal purchase agreements	—			(3.8		)	—			—			(3.8		)
Gain on sale of Canadian Exploration Properties	—			(39.0		)	—			—			(39.0		)
Other non-cash expenses	—			6.9			3.3			—			10.2
Decommissioning, restoration and similar liabilities paid				(0.9		)	(0.1		)				(1.0		)
Advanced payments received on metal sales	127.8			—			—			—			127.8
Cash flows from/(used in) operating activities before income taxes paid and net change in working capital	$	123.5		$	161.2		$	7.9		$	(2.2	)	$	290.4
Income taxes paid	—			(15.8		)	(0.3		)				(16.1		)
Payments made related to the Brazilian tax matters	—			(67.9		)	—			—			(67.9		)
Cash flows from/(used in) operating activities before net change in working capital	$	123.5		$	77.5		$	7.6		$	(2.2	)	$	206.4
Net change in working capital	(22.7		)	(40.1		)	(8.8		)	(12.4		)	(84.0		)
Intercompany movement in operations	(19.6		)	6.2			13.4			—			—
Cash flows from/(used in) operating activities	$	81.2		$	43.6		$	12.2		$	(14.6	)	$	122.4
Investing activities
Acquisition of property, plant and equipment	$	(0.2	)	$	(71.6	)	$	(73.4	)	$	(4.6	)	$	(149.8	)
Proceeds on disposition of Canadian Exploration Properties	—			162.5			—			—			162.5
Proceeds on disposition of investments and other assets	4.3			—			—			—			4.3
Acquisition of investments and other assets	(2.4		)	—			—			—			(2.4		)
Cash from (used in) other investing activities	—			0.1			—			—			0.1
Cash flows from/(used in) investing activities	$	1.7		$	91.0		$	(73.4	)	$	(4.6	)	$	14.7
Financing activities
Dividends paid	$	(4.8	)	$	—		$	—		$	—		$	(4.8	)
Interest and other finance expenses paid	(14.2		)										(14.2		)
Financing costs paid on early note redemption	(14.7		)	—			—			—			(14.7		)
Repayment of term loan and notes payable	(380.4		)										(380.4		)
Proceeds from term loan and notes payable	270.0												270.0
Proceeds from other financing activities	—			—			1.6			—			1.6
Proceeds/(repayments) of intercompany financing activities	67.1			(143.9		)	57.6			19.2			—
Cash flows from/(used in) financing activities	$	(77.0	)	$	(143.9	)	$	59.2		$	19.2		$	(142.5	)
Effect of foreign exchange on non-US Dollar denominated cash and cash equivalents	0.3			(0.3		)	0.2			—			0.2
(Decrease)/Increase in cash and cash equivalents	$	6.2		$	(9.6	)	$	(1.8	)	$	—		$	(5.2	)
Cash and cash equivalents, beginning of period	$	98.2		$	24.9		$	25.8		$	—		$	148.9
Cash and cash equivalents classified as held for sale, beginning of period	$	—		$	—		$	6.3		$	—		$	6.3
Cash and cash equivalents, end of period	$	104.4		$	15.3		$	30.3		$	—		$	150.0
Cash and cash equivalents, classified as held for sale, end of period	$	—		$	—		$	(20.7	)	$	—		$	(20.7	)
Cash and cash equivalents, excluding amounts classified as held for sale, end of period	$	104.4		$	15.3		$	9.6		$	—		$	129.3

| 37



For the three months ended March 31, 2017	Yamana Gold Inc. (parent)			Guarantor subsidiaries			Non-guarantors			Eliminations and reclassifications			Consolidated
Operating activities
(Loss)/earnings before taxes	$	(0.9	)	$	(22.5	)	$	1.5		$	3.7		$	(18.2	)
Adjustments to reconcile (loss)/earnings before taxes to net operating cash flows:
Depletion, depreciation and amortization	1.6			76.2			28.2			—			106.0
Share-based payments	1.4			—			1.8			—			3.2
Equity loss/(income) from associate	6.3			1.2			—			(7.5		)	—
Finance income	(30.9		)	(17.6		)	(27.5		)	74.8			(1.2		)
Finance expense	14.6			43.5			43.6			(70.7		)	31.0
Mark-to-market on sales of concentrate and price adjustments on unsettled invoices	(2.1		)	—			—			—			(2.1		)
Mark-to-market on fair value through profit or loss instruments	3.7			—			—			—			3.7
Amortization of deferred revenue on metal purchase agreements	—			(3.4		)	—			—			(3.4		)
Other non-cash expenses	—			2.1			0.8						2.9
Decommissioning, restoration and similar liabilities paid	—			(0.7		)	—			—			(0.7		)
Advanced payments received on metal sales	4.4			—			—			—			4.4
Cash flows from/(used in) operating activities before income taxes paid and net change in working capital	$	(1.9	)	$	78.8		$	48.4		$	0.3		$	125.6
Income taxes paid	—			(8.4		)	—			—			(8.4		)
Payments made related to the Brazilian tax matters	—			—			—			—			—
Cash flows from/(used in) operating activities before net change in working capital	$	(1.9	)	$	70.4		$	48.4		$	0.3		$	117.2
Net change in working capital	(17.6		)	(42.4		)	3.0			(8.9		)	(65.9		)
Intercompany movement in operations	4.1			(16.1		)	12.0			—			—
Cash flows from/(used in) operating activities	$	(15.4	)	$	11.9		$	63.4		$	(8.6	)	$	51.3
Investing activities
Acquisition of property, plant and equipment	$	(2.6	)	$	(80.9	)	$	(42.7	)	$	(3.2	)	$	(129.4	)
Proceeds on disposition of investments and other assets	18.3			—			—			—			18.3
Acquisition of investments and other assets	—			—			—			—			—
Cash from (used in) other investing activities	1.1			(18.8		)	—			—			(17.7		)
Cash flows from/(used in) investing activities	$	16.8		$	(99.7	)	$	(42.7	)	$	(3.2	)	$	(128.8	)
Financing activities
Dividends paid	$	(4.8	)	$	—		$	—		$	—		$	(4.8	)
Interest and other finance expenses paid	(18.9		)	—			—			—			(18.9		)
Financing costs paid on early note redemption	—			—			—			—			—
Proceeds from Brio Gold Inc. private placement and rights offering	14.8			—			—			—			14.8
Repayment of term loan and notes payable	(25.9		)	—			—			—			(25.9		)
Proceeds from term loan and notes payable	120.0			—			—			—			120.0
Proceeds/(repayments) of intercompany financing activities	(85.0		)	84.2			(11.0		)	11.8			—
Cash flows from/(used in) financing activities	$	0.2		$	84.2		$	(11.0	)	$	11.8		$	85.2
Effect of foreign exchange on non-US Dollar denominated cash and cash equivalents	0.3			0.3			0.2			—			0.8
(Decrease)/Increase in cash and cash equivalents	$	1.9		$	(3.3	)	$	9.9		$	—		$	8.5
Cash and cash equivalents, beginning of period	$	35.1		$	29.5		$	32.8		$	—		$	97.4
Cash and cash equivalents classified as held for sale, beginning of period	$	—		$	—		$	—		$	—		$	—
Cash and cash equivalents, end of period	$	37.0		$	26.2		$	42.7		$	—		$	105.9
Cash and cash equivalents, classified as held for sale, end of period	$	—		$	—		$	—		$	—		$	—
Cash and cash equivalents, excluding amounts classified as held for sale, end of period	$	37.0		$	26.2		$	42.7		$	—		$	105.9

*************

| 38