Iamgold Posts Loss In 4Q; Gold Output Rises
The company listed a netloss of $17.7 million, or 4 cents per share, compared to a loss of $5.3million, or a penny, in the fourth quarter of 2016. The company citedhigher income-tax expenses of $31.3 million, partially offset by improvements in otherareas. Excluding special items, thecompany posted an adjusted net loss of $13.8 million, or 3 cents, comparedto adjusted earnings of $3.3 million, or a penny, in the same prior-yearperiod.
Iamgold reported that revenueswere $291.1 million, up $38.6 million from the prior-year periodprimarily due to higher sales volume at Westwood ($21 million) andEssakane ($4.8 million), and a higher realized gold price ($19.9 million),partially offset by lower sales at Rosebel ($7.6 million).
Gold production, includingjoint-venture operations, was 228,000 ounces in the fourth quarter, up 13,000ounces from a year ago. The increase was due to the continued ramp-upat Westwood and higher throughput at Essakane, partially offset bylower grades at Rosebel, Iamgold said.
Meanwhile, for full-year2017, net earnings were $501.6 million, or $1.08 per share,up $449 million from $52.6 million, or 13 cents, in 2016. Much of theturnaround was due to impairment reversals on the C??t?(C) gold project andthe Rosebel mine ($524.1 million).
Adjusted net earnings for2017 were $29.3 million, or 6 cents per share, up $25.4million from $3.9 million, or a penny, in 2016.
Full-year gold production was882,000 ounces in 2017, up 69,000 ounces from 2016. Iamgold said this was atthe top end of guidance. All-in sustaining costs of $1,003 an ounce were down$54 from 2016.
"Robust operatingperformance, including record production at Essakane, and continued costimprovements drove gross profit up 50% and we ended the year with $1billion in liquidity,” said Steve Letwin, president and chief executiveofficer.
The company’s 2018guidance is 850,000 to 900,000 ounces of gold production with all-in sustainingcosts between $990 and $1,070.
“Gold reserves rose 86% to14.5 million ounces, as significant increases at Rosebel and C??t?(C) Gold werefollowed by a 1.4 million-ounce reserve estimate at our Boto goldproject,” Letwin said. “Boto's recent pre-feasibility results indicate thepotential for a long-life, low-cost mine.”
The CEO added that thecompany last month secured exploration rights for Brokolonko near Saramacca,part of a consolidation strategy at Rosebel.
“In 2019, we expectproduction from Saramacca and potentially heap leaching at Essakane soonafter,” Letwin said. “A ramp-up to full production at Westwood isanticipated in 2020, followed by a potential production start at C??t?(C) Gold in2021."
By Allen SykoraFor Kitco News
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