IAMGOLD shares drop by a quarter
Toronto-based gold producer IAMGOLD (NYSE:IAG) has lost a quarter of its value this week after announcing on Monday that its 3Q revenues were $386.8 million, down from $431.9 million in the third quarter 2011.
The company started Monday at $14.91 and is currently trading at $11.39, a drop of 26%.
The company also lowered guidance. In 2013 IAMGOLD expects to produce 875,000 to 950,000 instead of 1.1 million ounces.
CEO Steve Letwin blamed the poor quarter on mines not directly operated by his company for the drag in revenues.
"We are performing well at the mines we own and operate. Year-to-date production and cash costs at these operations, which account for 85% of our production, are on target," said Letwin.
"In contrast, the performance of the mines not operated by us was disappointing and places us at the lower end of our production guidance. This clearly demonstrates the benefits of re-positioning our company to better leverage our expertise as operators."
Other notes were the following:
- Net earnings from continuing operations (attributable to equity holders) increased by 56% to $78.0 million ($0.21 per share) from $50.0 million ($0.13 per share) in the third quarter 2011.
- Excluding items not indicative of underlying operating performance, adjusted net earnings (attributable to equity holders) were $60.2 million ($0.16 per share) compared to $112.4 million ($0.30 per share) in the third quarter 2011. This was due mainly to lower gold sales, including 12,000 ounces produced late in the quarter and sold in October, and higher exploration expenses.
- Operating cash flow before changes in working capital was $114.3 million ($0.30 per share) compared to $174.1 million ($0.46 per share) for the third quarter 2011.
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