Iamgold Reports Adjusted Loss For Fourth Quarter
(Kitco News) - Iamgold Corp. (TSX: IMG; NYSE: IAG) late Wednesday reported an adjusted loss for the fourth quarter of $16.1 million, or 3 cents per share, compared to a year-ago adjusted loss of $13.8 million, also 3 cents.
The fourth-quarter net loss was $34.8 million, or 7 cents per share, compared to a loss of $17.7 million, or 4 cents, in the year-ago period. The company blamed the bigger loss mainly on a lower gross profit, higher finance and exploration costs and higher foreign-exchange losses.
Revenues for the fourth quarter came in at $274.3 million, a year-on-year decline of $16.8 million primarily due to lower sales volume at Westwood and Essakane, plus a lower realized gold price, Iamgold said. The company received an average of $1,233 per gold ounce, down from $1,277 in October-December 2017.
Production rose to 231,000 ounces from 228,000, although sales dipped to 220,000 from 230,000. All-in sustaining costs rose to $1,123 from $1,071.
For full-year 2018, Iamgold posted adjusted net earnings of $29.8 million, or 6 cents per share, up from 29.3 million, also 6 cents, in 2017. However, there was net loss of $28.2 million, or 6 cents, compared to net earnings of $501.6 million, or $1.08 per share, in 2017. The decrease in net earnings was primarily due to reversals of impairment charges on the Côté gold project and the Rosebel mine totaling $524.1 million in the prior year, Iamgold said.
"In addition to achieving guidance on 2018 production at 882,000 attributable ounces of gold [same as 2017] and on 2018 all-in sustaining costs at $1,057 per ounce sold, we increased proven and probable reserves by 23% and delivered robust feasibility studies for both the Côté gold and Boto gold projects, all while maintaining a strong balance sheet,” said Steve Letwin, president and chief executive officer.
Guidance for 2019 is for 810,000 to 870 gold ounces at AISC of $1,030 to $1,080 an ounce, the company said.
As of Dec. 31, proven and probable gold reserves were 17.9 million ounces, up 23% from the end of 2017. Measured and indicated resources (including reserves) were 27.9 million ounces and inferred resources were 8.7 million ounces, up 13% and down 1%, respectively, from the end of 2017.