Iamgold First-Quarter Profit, Production Rise
(Kitco News) - Iamgold Corp. (TSX: IMG; NYSE: IAG) late Mondayreported that its first-quarter profit rose, helped by higher output and goldprices combined with lower costs per ounce.
Net earnings were $42.3million, or 9 cents per share, a turnaround from a net loss of $18 million, or4 cents, in the same period a year ago.
Excluding special items, adjustedearnings came in at $40.4 million, also 9 cents per share, up from adjustedincome of $5.1 million, or a penny, in the year-ago period.
Iamgold reported thatJanuary-March revenues rose to $314.5 million from $260.5 million a year ago.
"Earlier in the year,we said our priorities were to meet expectations and to execute a robust set ofgrowth projects,” said Steve Letwin, president and chief executive officer. “Goldproduction in the quarter was up year-over-year, with Essakane and Westwood settingrecord highs. All-in sustaining costs of $953 an ounce were down $118 an ouncefrom the fourth quarter of last year.”
Gold production totaled 229,000ounces, up 15,000 ounces from the prior-year period. Iamgold said the increasewas due to higher grades at Essakane (16,000 more ounces) and higher grades andthe continued ramp-up at Westwood (10,000 ounces), partially offset by lowergrades at Rosebel (9,000 ounces) and lower throughput at joint ventures (2,000ounces).
All-in sustaining costs of$953 per ounce were down $39 from the same quarter of 2017. Meanwhile, theaverage realized price of gold rose to $1,331 from $1,230 an ounce.
“Annual production andcost guidance remains unchanged and our growth projects are firmly on track,”Letwin said. “At Essakane, the world’s largest hybrid solar/thermal power plantwas completed, and the pre-feasibility study for a heap leaching project, aspart of our expansion of the mine, is nearing completion. In the second half ofthis year, we expect to have a mineral reserve estimate for Saramacca and acompleted feasibility study for our Boto gold project. With recent resourceestimates for our Monster Lake and Eastern Borosi projects, nearly all of ouradvanced greenfield projects have confirmed a resource."
Iamgold maintained its full-year production and cost guidance for 2018. Second-quarteroutput is expected to be down from the first quarter and to trend upward in thesecond half of the year. The second-quarter total is expected to reflect theimpact of scheduled mill maintenance at Rosebel and Essakane and the seasonalrains at Rosebel, Iamgold said.
For Kitco News
Follow @AllenSykora
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.