Derivatives loss sends Yamana net profit spiraling downward by 59% during the third quarter.

RENO, NV - Yamana Gold revenues fell 59% during the third quarter of this year from $150 million and 21 cents per share for the third-quarter 2008 to $60.8 million and 8-cents/ sh.

The Toronto-based company reported a $21 million loss of derivatives for the third-quarter 2009, compared to a gain of $138.9 million for derivatives for the same quarter a year ago.

During the third-quarter 2009 the company realized a foreign exchange gain of $15.1 million.

For the first nine months of this year, Yamana reported a net income of $156.45 million or 21-cents per share, a substantial decline from the $255.4 million or 37-cents per share in net earnings reported during the same period of 2008. The company also realized a forex gain of $87.8 million for the first nine months of this year.

During the third quarter of this year total production increased 34% to 314,707 gold equivalent ounces.

For the first nine months of this year, Yamana reported total production of 875,763 GEO, a 20% increase over the total production of 728,124 GEO reported for the same period a year ago.

Yamana's production plan is aimed for a range of 1.05 million to 1.1 million GEO this year, a 40% increase over 2008 output. Yamana officials say they are committed to sustainable production of at least 1.1 million GEO yearly and plan to increase this from 2010 onwards.

During this year Yamana also completed the 20-million tonnes per year expansion at its Chapada operation with the new mine fleet expected to begin operation during the fourth quarter.

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