Iamgold Reports Higher 2Q Adjusted Profit
(Kitco News) - Iamgold Corp. (TSX: IMG; NYSE: IAG) reported a higher adjusted profit in the second quarter Wednesday, with revenue rising on higher gold prices even though sales dipped slightly.
Excluding special items, adjusted net earnings were put at $13.1 million, or 3 cents share, up from $4.3 million, or a penny, in the same quarter a year ago.
The company listed a net loss of $26.2 million, or 6 cents, compared to net earnings of $506.5 million, or $1.09, in the same prior-year period.
Revenues in the second quarter rose by $2.9 million to $277.4 million. The average realized price of gold rose to $1,299 an ounce from $1,251.
Gold production, including joint-venture operations, was 214,000 ounces between April and June. Iamgold said the decrease was due to lower throughput at Rosebel (4,000 ounces) and Essakane (4,000 ounces) due to the timing of planned mill maintenance, plus lower grades at Westwood (2,000 ounces), partially offset by higher throughput at the joint ventures (1,000 ounces). All-in sustaining costs per ounce sold were $1,077, up 10% from a year ago, the company said.
Steve Letwin, president and chief executive officer, said the company reaffirmed its 2018 production and cost guidance.
“The second quarter saw the completion of Essakane's pre-feasibility study for heap leaching, which demonstrated an economically viable project, including a significant increase in reserves,” he said. “The incremental ounces more than replace this year's expected annual depletion for the entire company, and Saramacca's reserves are yet to come.”
During the quarter, the company reported a 39% increase in reserves, before depletion, at Essakene. The prefeasibility study outlined a project that increases average annual output by 16% to 480,000 ounces compared to the previous mine plan, once heap leaching begins.
A mineral reserve estimate is expected for Saramacca in the second half of the year, with production expected to start in the second half of 2019.
By Allen SykoraFor Kitco News
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