Iamgold (NYSE: IAG) (TSX: IMG) has lowered total attributable gold production and capital expenditure guidance for 2020 due to the impact of the global covid-19 crisis.
The company lowered attributable gold production guidance to the range of 685,000 to 740,000 ounces, with capital expenditure guidance of $345 million.
Iamgold achieved target production in the first quarter with attributable gold production of 170,000 ounces, down 3,000 ounces from the same prior-year period, generating $44 million in operating cash flow.
Production at the end of the quarter was impacted by the covid-19 pandemic, including the self-confinement of Essakane mine in Burkina Faso and Rosebel mine in Suriname, and the placement of Westwood on care and maintenance following provincial directives in Canada.
“Iamgold benefited from strong revenues on higher gold prices in the quarter, notwithstanding the rapid onset of the covid-19 crisis toward the end of the quarter,” said Gordon Stothart, president and CEO.
Revenues from continuing operations were $274.5 million, up $23.5 million or 9% from the same prior-year period.
“Our gold margins improved 45% from one year ago, with production on plan, but lower sales volumes. We made good progress on waste stripping at Essakane, and are on track to achieve our 2020 run rate at Saramacca in the second half of the year, while Westwood has been steadily achieving production and cost targets,” Stothart said.
Iamgold’s stock was down 1.6% on the NYSE midday Tuesday. The company has a $1.75 billion market capitalization.