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IAMGOLD reports 8% production decline, turns to net profit in 2020

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(Kitco News) - IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) yesterday reported full-year 2020 attributable gold production from continuing operations of 653,000 ounces at cost of sales per ounce of $1,057, total cash costs per ounce produced of $984 and all-in sustaining costs per ounce sold of $1,232.

Therefore, the company’s gold production in 2020 declined by 8% over 2019 (710,000 ounces), cost of sales rose by 11% compared to 2019 ($950) and all-in sustaining costs grew by 8% over 2019 ($1,141).  

IAMGOLD’s gross profit was $250.3 million, up $180.7 million or 260% from the prior year. Net earnings from continuing operations attributable to equity holders were $38.5 million, or $0.08 per share, compared to net loss from continuing operations of $373.3 million, or $0.80 per share in the prior year.

Net cash from operating activities was $347.6 million, a 4% decrease over the prior year. Net cash from operating activities before changes in working capital was $368.1 million, consistent with the prior year.

In 2021, the company expects to produce between 630,000 to 700,000 ounces of gold, while concurrently advancing its growth platform in North America with major earthworks underway at Côté ahead of schedule.

President and CEO Gordon Stothart commented, "IAMGOLD's efforts in advancing our peer-leading growth platform took a significant step forward in 2020 with the commencement of construction of the Côté gold project in Canada, supported by both robust gold prices and nearly $1.5 billion in liquidity at year-end."

IAMGOLD is a mid-tier mining company with three gold mines on three continents, including the Essakane mine in Burkina Faso, the Rosebel mine in Suriname, and the Westwood mine in Canada. IAMGOLD aims to become a million-ounce gold producer as it executes on its growth strategy, including bringing Côté Gold, its fourth mine, online.

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