Iamgold Posts Increase In Third-Quarter Profit
Iamgold Corp. (TSX: IMG; NYSE: IAG) late Tuesday reported that its third-quarter net profit rose to $30.8 million, or 7 cents per share, up from $17 million, or 4 cents, in the same quarter a year ago.
The company said the increase was mainly due to lower finance costs ($4.2 million), a gain on derivatives and warrants ($2.9 million), higher interest income ($1.7 million), gain on foreign exchange ($2 million), lower write-down of accounts receivable ($1.5 million), higher share of net earnings from investments ($1.1 million) and lower income tax expense ($9.3 million). All of this was partially offset by lower earnings from operations of $6.9 million.
Excluding special items, adjusted net earnings were $33.7 million, also 7 cents per share, up from $21.8 million, or a nickel, in the year-ago period.
Gold production was 217,000 ounces, up 7,000 from a year ago. The increase was due to the continued ramp-up at Westwood and higher grades and throughput at Rosebel, which more than offset the impact of lower ore grades at both Essakane and Sadiola, Iamgold said.
All-in sustaining costs per ounce sold fell 7% year-on-year to $969 due to lower sustaining capital expenditures.
Steve Letwin, president and chief executive officer, said the company was lowering of the top end of its 2017 guidance range for all-in sustaining costs by $40 an ounce to a narrower band of $1,000 to $1,040.
“Based on operating performance for the first nine months and our expectations for the final quarter, we are on track to meet our production and cost guidance for the year,” he said. Iamgold envisions producing 845,000 to 885,000 ounces of gold in 2017.
During the quarter, the company previously released reports increasing the reserves at the Rosebel and also listing an initial resource for the Saramacca deposit near Rosebel.
“The larger-than-expected resource estimate for Saramacca, together with its higher grades and significant expansion potential, added to the substantial resource increase at Rosebel,” Letwin said. “We continue to work at consolidating other concessions within an emerging gold district anchored by Rosebel. Westwood continues to ramp up. Heap leaching and satellite prospects could add years to Essakane's mine life, and Côté Gold is expected to be a long-life, low-cost mine heading towards development."