IAMGOLD goes from strength to strength

IAMGOLD has reported net earnings of US$84.5 million on revenues of $385.3 million for the quarter to June 30, 8.7% less than in the prior year period although 37% higher than in the March quarter.

The company produced 166,000oz of gold in the quarter, a 55.1% increase year-on-year and 9.9% increase over the March quarter. Its all-in sustaining cost (AISC) fell 15.4% from the prior year but was up 8.3% from the March quarter. However, higher gold prices saw its AISC margin improve to 30.8% from 27.7% in the previous quarter and 3% a year ago.

The company ended the quarter with $511.4 million of cash and $813.4 million of long-term debt.

IAMGOLD's Côté mine development in Ontario, Canada has achieved commercial production, achieving a record daily high throughput of 36,000tpd in July, and its other operations are performing well, with production guidance at Essakane in Burkina Faso and Westwood in Quebec, Canada increased to 495,000-540,000oz from the previous range of 430,000-490,000oz. It has also revised its AISC guidance down from $1780-1940/oz to $1700-1825/oz.

"We are very proud of our achievements during the first half of the year. Essakane and Westwood teams have continued to deliver strong operational results, which has positioned the company to beat our production and cost guidance targets set at the beginning of the year," said IAMGOLD chief executive Renaud Adams.

At the end of November, IAMGOLD intends to repurchase Sumitomo's 9.7% interest in Côté to return its interest to 70%. The company raised $300.2 million via a bought deal financing in May to obtain the funds to do this.

The value of shares in IAMGOLD has increased 45% so far this year. They are trading at $3.68, valuing the company at $2.1 billion.