Iamgold Reports 3Q Loss As Production Slips
(Kitco News)- IamgoldCorp. (TSX: IMG; NYSE: IAG) late Tuesday reported a loss for the third quarteras revenues came in lower than in the same period a year ago, with bothproduction and gold prices weaker but costs higher.
Thecompany listed an adjusted net loss $6.9 million, or a penny per share,compared to adjusted net earnings of $33.7 million, or 7 cents, in the sameperiod of 2017. The net loss was $9.5 million, or 2 cents, compared to netearnings of $30.8 million, or 7 cents, a year ago.
Revenuesof $244.8 million were a year-on-year decline of $24 million. Gold productionfell by 9,000 ounces to 208,000, with lower head grades reported at the Rosebeland Westwood mines, along with joint ventures. Meanwhile, the average realized price of gold fell to $1,207 from $1,284in the same quarter a year ago.
All-insustaining costs rose by $117 to $1,086 an ounce. The company said it hadhigher depreciation expenses, plus operating costs rose due to factors such asincreased maintenance and contractor costs resulting from higher mineproduction at Essakane, increased preventative maintenance at Rosebel, lump-sumpayments at Rosebel and Westwood as a result of a new labor agreement, andhigher energy costs.
“Asanticipated, the third quarter was weaker than the first half of the year withthe gold margin under pressure and production at Rosebel on the lighter side,”said Steve Letwin, president and chief executive officer.
Hewas upbeat about the company’s project pipeline, however, including the 51%increase in reserves at Saramacca, which the company announced in lateSeptember.
Iamgoldmaintained 2018 production guidance at 850,000 to 900,000 gold ounces butrevised the allocation.
Essakane'sguidance was revised to 390,000 to 405,000 ounces, compared to the previous380,000 to 395,000, reflecting higher throughput benefiting from increased millavailability.
Rosebel'sproduction guidance was revised to 280,000 to 295,000 ounces from the previousrange of 295,000 to 310,000 ounces, reflecting lower mining tonnages and headgrades in the third quarter.
Guidancefor Sadiola was revised to 55,000 to 65,000 ounces from the previously 50,000to 60,000. The company maintained guidance for all-in sustaining costs of $990to $1,070 per ounce for the full year.
Iamgoldsaid it is advanced discussions with lenders to increase the existing creditfacility from $250 million to $500 million to “provide additional financialflexibility as it executes its growth strategy.” Officials said the facility isexpected to close before year-end.
By Allen SykoraFor Kitco News
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asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. |