Iamgold reports ‘solid’ third quarter results, names new president

The Essakane gold mine in Burkina Faso. (Image from Iamgold)

Iamgold (TSX: IMG) on Thursday reported its consolidated financial and operating results for the quarter ended September 30, during which the Toronto-based gold producer managed to increase operating cash flow by 28% over the previous quarter and 354% over the prior-year period.

The company, with mines operating in North and South America as well as West Africa, saw revenues rise to $274.4 million for the latest quarter, a 12% increase over the same quarter of last year. The revenue boost came from a higher gold price during the three-month period, offset by lower sales at its Westwood mine in Quebec, Rosebel mine in Suriname and Essakane mine in Burkina Faso.

Gross profit improved to $22.8 million from $7.5 million a year earlier, while net loss was narrowed down to $3 million compared to a loss of $9.5 million.

The revenue boost came from a higher gold price during the three-month period, offset by lower sales at its Westwood mine in Quebec, Rosebel mine in Suriname and Essakane mine in Burkina Faso

Attributable gold production, inclusive of joint venture operations, came in at 187,000 oz, down 21,000 oz from last year’s comparable quarter. The decrease in output was attributed to lower head grades and recoveries at Rosebel, which experienced a temporary suspension of mining activities, as well as lower grades at Westwood, lower throughput and recoveries at Sadiola, and the end of operations at Yatela, both in Mali.

Based on these results, Iamgold has confirmed its production and cost guidance for the fourth quarter this year. “We believe that the combination of strong Essakane performance, Saramacca ramp-up, stabilisation at Westwood, productivity improvements across all assets, and our exploration successes build the case for investment in Iamgold,” CEO Steve Letwin stated in the company’s Q3 release.

He also noted that that the Essakane mine had contributed to a strong second half, Westwood was progressing and that Rosebel continued to ramp back up to normal operations.

Meanwhile, the company has named Gordon Stothart as its new president. Stothart has been with Iamgold since late 2007 as executive VP and COO. Letwin will continue to serve as CEO.

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