Thank you, operator. Thank you all for joining us, and welcome to our first quarter 2021 conference call. With me today is Jason LeBlanc, our CFO; we have Yohann Bouchard and Gerardo Fernandez available to answer questions. I will start as always with health and safety.
Our total recordable injury rate was 0.42 in the first quarter of 2021. Both Minera Florida and El Peñón were the first and second underground mines in Chile to be recognized with the Seal of quality award, which certifies 100% compliance with COVID-19 prevention and controlled standard by the ACHS.
As the pandemic stretches into the second quarter, we continue to take every precaution to keep our people and communities safe and work closely with our community partners to support them in the fight against COVID-19.
As disclosed during the quarter, we have formally adopted a Board approved climate change strategy as a continuation of Yamana's commitment to low carbon future. The strategy is underpinned by the adoption of two high level targets: a science-based 2-degree Celsius target compared to pre-industrial levels and an aspirational net zero target by 2050. This is a fundamental year for the strategy during which we are determining greenhouse gases emission baseline, and laying out the ground work for GHG abatement pathways required to meet our 2-degree science-based target.
Turning now to our Q1 operational highlights. We had a strong production with just over 201,000 ounces of gold that by standout performances at Canadian Malartic and Minera Florida. It is also worth noting that in March Jacobina achieved on all-time monthly high production of 16,348 ounces of gold. We produced 2.12 million ounces of silver during the quarter underpinned by a strong performance from Cerro Moro. GEO production for the quarter was 231,988 ounces in line with plan.
We are maintaining our 2021 guidance of one million gold equivalent ounces, including 632,000 ounces of gold and 10 million ounces of silver at an all-in sustaining cost between $980 and $1,020 per GEO.
Our cash cost guidance is also unchanged at between $665 and $695 per GEO.
As with prior years, we expect stronger production and lower costs in the second half of the year with the fourth quarter being the highest production and lower cost quarter.
Our production result translated into strong financial performance. Net earnings during the quarter were $54.7 million or $0.06 per share.
While adjusted net earnings were $67.2 million or $0.07 per share. We generated strong cash flows with cash flows from operating activities before net change in working capital coming at $183.4 million. Free cash flow from before dividend and debt repayment was $676 million. Taking a closer look at the operation, Jacobina produced 43,102 ounces of gold during the quarter. Mill throughput for the quarter was above plan, with recovery rates and grade as expected. I'll talk more about the phase expansion at Jacobina in a moment. Shifting to El Peñón, GEO production for the quarter was 43,277 ounces, including 31,437 ounces of gold and 816,000 ounces of silver.
We continue to expect the second half of 2021 to account for 60% of the gold and silver production at El Peñón as higher grade zone come into production. Canadian Malartic had an exceptional quarter producing 89,550 ounces of gold, exceeding plan due to higher grades and recoveries from ore found deeper in the Malartic pit. Overburden removal at Barnat was completed as planned with topographic drilling and blasting on track to be completed by the third quarter of 2021. The transition from Malartic pit to the Barnat pit continues. Minera Florida had a great first quarter with production above plan, particularly during March. Linear development advanced well ahead of plan and exploration results continue to demonstrate extension of identified areas of mineralization and new discoveries. Production of 35,240 GEO at Cerro Moro was in line with plan, as the mine returned to more normalized activities following COVID-19-related challenge in 2020. Strong silver production of 1.31 million ounces was attributable to strong silver feed grades. The mine and processing plant are currently running at full capacity. The availability of personnel is expected to improve as we move to 2021. And the transition to underground ore will increase mining flexibility, particularly in the second half of the year, which is expected to account for higher gold production than the first half with the ore mill returning to reserve grades.
We have a number of compelling growth opportunities in our portfolio that we’re very excited about.
One of these is Wasamac project, which has proven and probable mineral reserve of 1.8 million ounces of gold supported by its 2018 feasibility study.
Following, an in-depth review of this study, we've identified opportunities to optimize the processing plant design, incorporated increased levels of automation in the underground mine and optimized the materials handling system to sustain a throughput of 7,000 ton per day. These opportunities support our vision of Wasamac as a low-cost operation with minimal impact on the environment and the neighboring communities, and they will be reflected in an update of the feasibility study schedule for competition in Q3 of 2021. Canadian Malartic, as we announced with our Q4 result, will transition from an open pit mine to an underground operation from 2023 to 2028 as we develop the Odyssey underground project. Odyssey is an outstanding project that will extend mine life at least 2039, with an average annual production of 545,000 ounces at a cash cost of approximately $630 per ounce. I spent a significant portion of my career working in the Abitibi District. On some of the provinces most successful gold project and from asset quality to mine plan, I believe Odyssey will tuck them all. Odyssey will enter production in 2023 and gradually ramp up to 2028, largely offsetting the corresponding decline in open-pit production as you can see here on that slide. Odyssey is expected to produce 932,000 ounces during the 2023 to 2028 ramp up period. And proceed that we derive from this production will significantly reduce our capital requirement.
Assuming the gold price used in the financial analysis for the project of $1,550 per ounce, the project capital would be cut in half. Furthermore, capital costs will be modest in any given years allowing to fully fund construction using Canadian Malartic's cash on hand and free cash flow generation with no external funding required. Staying with Odyssey, you may have noticed last night that we announced new results from our exploration campaigns for the project. The focus of exploration during Q1 was to provide support for an aggressive infill drilling program at East Gouldie, where 10 drill rigs completed 23,400 meters of drilling.
One of our drill old generated excellent result and new intercept located more than one kilometers from the East Gouldie mineralized resources reported at the end of the year. This is a noteworthy result because it opens the possibility for significant expansion of the East Gouldie zone for the east.
In addition, I will note that the infill drilling continues to generate excellent results as you can see on this slide. Results demonstrating consistent grade and width throughout the mineralized zone, further demonstrating the high quality of the inferred resource at East Gouldie. I would also note that the companies has developed an exploration program for the Camflo property which, given the proximity of Camflo to the Canadian Malartic mine is being considered for inclusion in the Canadian Malartic General Partnership exploration program. Camflo is a former underground mine that reduced 1.65 million ounces of gold over 27 years before closing in 1992.
Turning to Jacobina. Jacobina’s phase expansion continue to advance and will enhance the operations already low cost structure further benefiting from – benefiting margins. Jacobina all-in sustaining costs in Q1 were more than a $1,000 per ounce lower than average gold price during the quarter.
With the Phase 2 expansion, which will increase throughput to 8,500 tonnes per day and raise production to 230,000 ounces per year, costs are expected to decrease even further. The optimization is continuing to advance. We've identified opportunities to further optimize the result and recoveries achieve in Phase 1.
As part of this initiative, the Falcon concentrator and cyclones were installed during the quarter and the Knelson concentrator is scheduled to be installed in Q2, with an objective of optimizing gold recoveries at higher throughput rate.
We also have adopted a comprehensive life-of-mine tailings management strategy that reduces surface disposition of tailings, with underground tailings disposal as backfill. The company has initiated several studies to ensure long-term sustainability and reduce the environmental footprint of the operation. Test work conducted in 2020 confirmed that both paste backfill and hydraulic backfill are technically feasible options for disposal of tailings into the underground voids, thereby minimizing the quantity of tailings stored on surface.
Additionally, use of backfill is expected to improve underground stope stability and minimize the requirements to leave behind pillars in ore, resulting in increasing mining recovery and reduced dilution.
As a first step, we have decided to move forward with a hydraulic backfill plan project. Capital cost is estimated at $8 million and we are in the permitted phase right now. A conceptual study is underway to evaluate further opportunities for a dry stack tailings facility and/or a paste backfill plant in parallel to the hydraulic backfill plant, which could provide opportunities in the future for additional storage of tailings to support future mineral reserve development. MARA gold copper project has a significant asset valued at over $4 billion based on current metal price. It has attractive economics and the project is advancing. MARA is obtained – MARA obtained all the permits for advanced exploration works from the local authorities including programs of community participation and social consultation, to conduct field work for the feasibility study and collect additional information for the environmental assessment. Work in the field has begun with baseline and environmental study activities progressing during the quarter and drilling contractor mobilization completed in March. The drilling campaign aimed to collect sample for the geotechnical and metallurgical studies is currently progressing as planned. The full feasibility study in completion of the environmental and social impact assessment are expected in 2022. And with that, I will now turn it over to Jason who will go over our financial results in more detail.