Nov. 4, 2009 (Marketwire Canada) -- TORONTO, ONTARIO--(Marketwire - Nov. 4, 2009) -
For a full explanation of results, the unaudited interim Consolidated Financial Statements, Management Discussion and Analysis, and mine statistics, please see the Company's website www.iamgold.com. All amounts are expressed in US dollars, unless otherwise indicated.
IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX:IMG) (NYSE:IAG) (BOTSWANA:IAMGOLD) today reported financial and operating results for the third quarter ending September 30, 2009, with record net earnings of $64.9 million or $0.18 per share.
"IAMGOLD's focus on delivering shareholder value produced outstanding results in the third quarter," said Joseph Conway, President & CEO, "Gold production reached 244,000 ounces at cash costs of $457 per ounce during the quarter driven by record production once again from our flagship Rosebel mine, and continued extensions at the Doyon Division in Quebec. As a result, we have recently increased our 2009 production guidance to between 940,000 and 950,000 ounces up from 880,000 in January 2009. We also continue to focus on the future, having accelerated production at our Essakane project, which is on schedule for commercial production in August 2010, contributing an estimated 480,000 to 490,000 ounces of gold before the end of 2011 and investing in promising exploration properties in our regions of focus."
Q3 2009 HIGHLIGHTS
- Record net earnings of $64.9 million ($0.18 per share)
- Record operating cash flow of $89.3 million ($0.24 per share(1))
- Lower average cash cost(2) of $457 per ounce and gold production of 244,000 ounces
- Record production at Rosebel of 106,000 attributable ounces at a cash cost(2) of $403 per ounce
- Increased 2009 production guidance to between 940,000 and 950,000 ounces, an increase of 60,000 to 70,000 ounces compared to original guidance
- A continued strong financial position with $466.7 million in available funds
- Approval by the Societe D'Exploitation Des Mines D'Or De Sadiola ("SEMOS"), owner of the Sadiola gold mine in Mali, West Africa, to proceed with the $9 million (on a 100% basis) Sadiola deep sulphide feasibility study, and tentative agreement to acquire up to additional 6% interest in Sadiola
(1) Operating cash flow per share is a non-GAAP measure and is calculated by
dividing the consolidated cash flow from operating activities by the
weighted average number of common shares outstanding in the period.
(2) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to GAAP
measure.
Third quarter gold sales of 244,000 ounces at an average realized gold price of $961 per ounce, resulted in revenues of $235.2 million and record net earnings of $64.9 million ($0.18 per share), compared to $18.8 million ($0.06 per share) for the prior year period. This result includes positive adjustments for a foreign exchange gain due mainly to the strengthening Canadian dollar and future tax recovery.
Operating cash flow from third quarter activities was $89.3 million ($0.24 per share), up from $72.1 million ($0.24 per share) in the third quarter of 2008. Higher revenues and improvements in cash mining costs were partially offset by increased spending on exploration.
Gold production for the third quarter of 2009 was 244,000 ounces at an average cash cost of $457 per ounce. This compares to production of 253,000 ounces (232,000 ounces excluding Sleeping Giant mine closed in late 2008) at an average cash cost of $481 per ounce in the third quarter of 2008. Lower cash cost per ounce in the third quarter of 2009 is primarily a result of productivity improvements at Rosebel combined with royalty expense savings.
With nine months of solid operating results and exceptional productivity improvements at Rosebel, the Company raised its 2009 production guidance by 30,000 ounces to between 940,000 and 950,000 ounces at cash costs of between $460 and $470 per ounce (from June 2009 guidance of 910,000 to 920,000 ounces at $460 to $470 per ounce and an original 880,000 ounces at between $470 and $480 per ounce).
The Company's objective to maintain high standards in health and safety continued, with a reduction of 49% in the frequency of lost time accidents and modified duty injuries, as compared to the first nine months of 2008.
2009 Expenditures Fully Funded - Balance Sheet Remains Strong
The Company's cash and gold bullion (at market value) position remains strong with $343.7 million available at September 30, 2009. In addition, the availability under the credit facility at September 30, 2009 was $123.0 million, for a total of $466.7 million of available funds. The credit facility availability increased during the quarter as the Company repaid $40.0 million previously drawn down.
Capital expenditures in the quarter were $126.2 million, with the majority relating to construction of the Essakane and Westwood development projects and mining fleet improvements at Rosebel.
In 2009, full year capital expenditures are now projected at $422.1 million, down slightly from the previous estimate of $448.4 million. The decrease is mainly due to lower expenditures at Niobec partially offset by earlier purchase of the Rosebel equipment.
With $466.7 million in available funds, the Company is well funded for the development and exploration of its pipeline of gold projects.
Rosebel Mine - Record Production Continues
At the Rosebel mine in Suriname, the recent completion of the mill expansion continued to drive results during the third quarter as the mill again operated at above its nameplate capacity of 11 million tonnes per annum achieving record mill throughput 37% higher than the prior year period. This resulted in record production of 106,000 ounces (on a 95% basis) in the quarter, an increase of 29% over the prior year period.
In addition, the new and enhanced mining fleet, and introduction of contractor mining for long haul pits combined to achieve increased mine production.
The higher gold production at Rosebel combined with royalty expense savings were key contributors to the 19% decrease in average cash cost to $403 per ounce versus the same period in 2008.
Doyon Division Mines - Mouska Mine Life Extended into early 2012
The operating team at the Doyon division continue to achieve better than expected results and the Mouska mine life has now been extended to early 2012 with production of between 20,000 and 25,000 ounces per year from high grade mineralization delineated during 2009. As announced in the second quarter of 2009, the Doyon mine life was extended to the end of 2009.
Niobec Niobium Mine - Paste Backfill & Mill Expansion on Track
Niobium production for the third quarter was 982,000 kilograms compared to 1,154,000 kilograms in the third quarter of 2008. The decrease in niobium production was mainly as a result of mechanical problems in the converter leading to lower conversion of niobium oxide concentrate to ferroniobium. Niobium oxide concentrate inventories are expected to return to normal levels during the fourth quarter.
In June 2009, the Company approved expenditures of $46.9 million and began work on a mill expansion and paste backfill plant at the Niobec niobium mine. The mill expansion will increase mill throughput by 24% and is scheduled to be completed during the third quarter of 2010 with expenditures of $6.5 million in 2009 and $21.5 million in 2010. The paste backfill project will enable near complete extraction of the ore body at lower levels of the mine by using mill tailings mixed with binding material significantly reducing the need for natural ore pillars. Construction of the paste backfill plant and associated underground infrastructure is expected to be completed during the second quarter of 2010 with expenditures of $8.1 million in 2009 and $10.8 million in 2010.
Sadiola - Approval to Proceed with Deep Sulphide Feasibility Study and Offer to Purchase IFC Share in Sadiola
In November, the Company announced approval by the Societe D'Exploitation Des Mines D'Or De Sadiola ("SEMOS") to proceed with a $9 million (on a 100% basis) Sadiola deep sulphide feasibility study.
