TORONTO, ONTARIO -- (Marketwire) -- 06/18/09 -- IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD) today announced updated guidance for 2009 production, costs, capital expenditure and exploration.
Assumptions used in the updated 2009 guidance include a gold price of $900 per ounce and a fuel price of $55 per barrel. All dollar amounts are expressed in US dollars, unless otherwise indicated.
HIGHLIGHTS
- Full year gold production for 2009 is expected to be 910,000 to 920,000 ounces at an average cash cost(1) of between $460 and $470 per ounce
- Full year niobium production from the Niobec mine is expected to be 4,200 to 4,400 tonnes with operating margins of between $20 and $22 per kilogram
- Capital expenditures are expected to be $448 million for 2009
- Greenfields exploration expenditures remain forecast at $34 million for 2009
"We have had an excellent start to 2009 with outstanding productivity improvements at several mines and an extension of the Doyon mine life. We're extremely pleased to announce this improved production guidance with lower cash costs," commented President & Chief Executive Officer Joseph Conway. "We will continue to pursue opportunities to optimize our operations and development projects for the remainder of 2009. We have already announced investments to improve cash flows from Niobec, our niobium mine in Quebec and we are working to achieve significant improvements at our joint venture mines in West Africa."
2009 Production Guidance
In 2009, IAMGOLD now projects production of approximately 910,000 to 920,000 ounces of gold, an increase of 30,000 to 40,000 ounces over previous guidance. This increased 2009 production guidance primarily reflects productivity increases at Rosebel and the extended life of the Doyon mine into Q3 2009, partly offset by lower grades at Mupane.
Cash cost is expected to average between $460 and $470 per ounce for the full year 2009, a decrease of $10 per ounce from previous guidance. This decreased 2009 cash cost guidance primarily reflects productivity improvements at Rosebel.
Niobium production from the Niobec mine is now forecast at approximately 4,200 to 4,400 tonnes for 2009. The slight decrease from previous production guidance primarily reflects slightly lower grades and recoveries due to higher silica content in the ore.
The Niobec operating margin is now expected in the $20 to $22 per kilogram range.
