Shares of IAMGOLD (TSX: IMG) (NYSE: IAG) slumped more than 12% at market open on Tuesday following its Q1 results release, bringing its market capitalization down to $1.2 billion. The Toronto-based gold miner reported an adjusted net loss of $2.2 million, or roughly $0 per share, falling short of analysts' expectations of $0.01 per share.
According to the company, it had a challenging first quarter. Q1 gold production totalled 185,000 ounces, down 44,000 ounces from the same period last year as a result of increased seismic activity at the Westwood mine in December 2018 and lower ore grades at some of its other operations.
These not only had a negative impact on sales volume in the quarter, but also pushed the company's cash costs up 20% compared to Q1 2018 to $884/oz. All-in sustaining costs (AISC) were also 14% higher than the same period last year at $1,086/oz.
Despite the latest results, the company remains optimistic and maintained its full-year production guidance of 810,000-870,000 ounces, as well as its forecasts for cash costs ($790-$840) and AISC ($1,030-$1,080).
IAMGOLD currently has three main operations: the Essakane mine in Burkina Faso, the Rosebel mine in Suriname and the Westwood mine in Canada. Altogether the three mines produced 173,000 ounces in the first quarter, compared to 214,000 ounces in Q1 2018.