IAMGOLD Increases Dividend by 150% and Provides Update for Q2 2011
IAMGOLD Corporation ("IAMGOLD" or the "Company") (TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) today reported that it has increased its annual dividend payment by 150% from C$0.08 per share to C$0.20 per share. The next semi-annual dividend payment in the amount of C$0.10 per share will be paid on July 20, 2011 to shareholders of record as of the close of trading on July 5, 2011. The Company also reports that for the second quarter of 2011, gold production is less than expected and average cash costs are higher than expected.
IAMGOLD's Executive Vice President and Chief Operating Officer, Gord Stothart, commented, "Gold production during the second quarter was primarily impacted by a change in mining sequence resulting in a lower than planned grade at the Rosebel Mine in Suriname as well as a slower than expected crusher ramp up and some downtime at the Essakane Mine in Burkina Faso due to a brief water shortage just prior to the start of the rainy season. Despite these challenges we are expecting improved production in the second half of the year allowing us to meet our production guidance."
"Cost inflation has been experienced at all operations," continued Mr. Stothart. "The industry is experiencing higher costs for fuel, consumables and labour in all regions this year, as well as higher royalties commensurate with the higher gold prices. Even with these higher costs, and a conservative gold price assumption of $1,200 per ounce, we believe that the projected cash flow from our operations combined with our current cash position will fund our significant three-year $1.2 billion investment to expand production at our existing gold mines and further strengthen our balance sheet."
IAMGOLD's President and CEO, Steve Letwin said, "The dividend increase reflects the confidence the board and management have in the current and future cash flows for the Company. We have a superior combination of existing assets, empowered people, a strong balance sheet and attractive expansion opportunities. Our growth outlook is very positive."
Read the full news release here.