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Iamgold Reports 1Q Adjusted Loss As Output Declines

Kitco News

(Kitco News) - Iamgold Corp. (TSX: IMG; NYSE: IAG) late Monday an adjusted loss in a “challenging” first quarter as production and prices of precious metals both fell.

The adjusted loss was $2.2 million, zero cents per share, compared to adjusted earnings of $40.4 million, or 9 cents, in the same prior year period. Analysts reported that the consensus expectation was for earnings of a penny per share.

The company lists a net loss of $41.3 million, or 9 cents, per share, a turnaround from net earnings of $42.3 million, or 9 cents, in the year-ago quarter. Among the special items was an impairment charge of $12.5 million.

Iamgold reported that first-quarter revenue fell 20% year-over-year to $251 million as sales volume from several mines fell and the average realized gold price fell to $1,308 an ounce from $1,331 a year earlier.

Gold output came in at 185,000 ounces in the first quarter 2019, down 44,000 ounces from a year ago. Iamgold said the decrease was primarily due to increased seismicity at Westwood in December (loss of 25,000 ounces), lower head grades and throughput at Essakane (19,000 ounces) and lower head grades at the joint ventures (3,000 ounces). This was partially offset by higher recoveries at Rosebel (3,000 ounces). All-in sustaining costs per ounce rose 14% year-over-year to $1,086 an ounce.

"Despite a challenging first quarter, we are driving towards achieving a self-funded, self-sustaining operating model," said Steve Letwin, president and chief executive officer. “This encompasses our goal to reduce costs and increase margins, preserve cash, fund site capital expenditures within site cash flows, and work safely and responsibly.”

The company maintains its full-year 2019 production guidance of 810,000 to 870,000 ounces and its guidance for AISC at $1,030 to $1,080.

“Production remains on track for the year, with the first half lighter than the balance of the year, as anticipated, and we reinforce our 2019 annual production guidance,” Letwin said.

Development of Saramacca continues on schedule, with production expected to begin in the second half of the year, Iamgold said.

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