Merrex Gold, Inc. and IAMGOLD Corp. Provide Update on 2014 Exploration Plan, Siribaya Gold Project
Feb 28 14
Merrex Gold, Inc. and project operator and JV partner IAMGOLD Corporation have finalized the 2014 exploration plan for the Siribaya Gold Project. The 2014 exploration plan includes 30,250 metres of drilling budgeted at USD 1.75 million and is designed to test priority targets identified by geochemical termite sampling. Greater emphasis will be placed on targets occurring within the western permits (Kambaya and Siribaya West), while those located further east will be further refined and prioritized (Kofia to Diarindi). Termite mound infill sampling to 100m x 100m centres over the Diakha prospect and over a possible northeast striking mineralized structure on the Kambaya permit. 7,750 metres of RC drilling over the Diakha and Kono prospects. 10,000 metres of AC drilling initially at Kono with additional AC drilling to test the Hafia, Liberta and Guia geochemical anomalies. 12,500 metres of shallow auger drilling over gold geochemical anomalies and trends located in the eastern half of the project area. Complete geological mapping over Diakha and Kono. The Siribaya camp is open with crews currently engaged in geological mapping and geochemical sampling. The first phase of drilling on the Diakha prospect will begin in March. IAMGOLD is funding the USD 1.75 million 2014 program and has agreed to extend the payment deadline for all joint venture exploration contributions to December 31, 2014 providing Merrex with additional time to finance.
IAMGOLD Corp. Announces Unaudited Consolidated Earnings and Operating Results for the Fourth Quarter and Full Year Ended December 31, 2013; Reports Impairment Charges for the Fourth Quarter of 2013; Provides Production and Capital Spending Guidance for the Full Year of 2014
Feb 19 14
IAMGOLD Corp. announced unaudited consolidated earnings and operating results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company’s revenues were $247.2 million compared with $398.6 million a year ago, $151.4 million lower than the same prior year period. The decrease was mainly due to lower gold sales volume and a lower average realized gold price. Net losses attributable to equity holders were $840.3 million or $2.23 per basic and diluted share compared to net earnings of $84.6 million or $2.2 per basic and diluted share for the same prior year period, mainly due to after-tax impairment charges on goodwill and mining assets and the other factors noted below explaining the year- over-year variance. Adjusted net earnings attributable to equity holders for the fourth quarter 2013 were $19.7 million or $0.05 per share compared with $89.8 million or $0.24 per share in the same prior period 2012. Net cash from operating activities was $44.0 million, $56.7 million lower than the same prior year period. The decrease was mainly due to lower revenues partially offset by lower exploration expenses and lower income taxes paid. Loss from operations was $873.6 million compared to earnings from operations of $132.7 million a year ago. Loss before income tax expense was $976.8 million compared to earnings before income tax expense of $147.2 million a year ago. For the quarter, the company reported adjusted net earnings per share of $0.05. Capital expenditures were $131.4 million.
For the year, the company’s revenues were $1,147.1 million compared with $1,453.4 million a year ago, $306.3 million lower than the prior year, mainly due to a lower realized gold price and lower gold sales volume, partially offset by higher niobium revenues. Net losses attributable to equity holders were $832.5 million or $2.21 per basic and diluted share compared to net earnings of $334.7 million or $0.89 per basic and diluted share in 2012. The decrease mainly related to the $772.8 million of after-tax impairment charges recorded in the fourth quarter, lower revenue ($306.3 million), higher cost of sales, higher share of net losses from associates and joint ventures, impairment of investments and lower gains on sale of marketable securities, partially offset by lower income taxes and lower exploration expenses. Adjusted net earnings attributable to equity holders were $137.3 million or $0.36 per share compared with $315.6 million or $0.84 per share a year ago, down $178.3 million from the prior year. Net cash from operating activities was $246.3 million, down $169.0 million from 2012. The decrease was mainly due to lower revenues partially offset by lower exploration expenses and lower income taxes paid. Loss from operations was $670.2 million compared to earnings from operations of $503.6 million a year ago. Loss before income tax expense was $869.8 million compared to earnings before income tax expense of $564.7 million a year ago. Capital expenditures were $668.6 million.
The company reported production results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported gold sales - attributable was 173,000 oz against 232,000 oz a year ago. Gold commercial production - attributable was 175,000 oz against 214,000 oz a year ago. Gold production - attributable was 195,000 oz against 214,000 oz a year ago. Average realized gold price was $1,273 million oz against $1,704 million oz a year ago.
For the year, the company reported gold sales - attributable was 740,000 oz against 827,000 oz a year ago. Gold commercial production - attributable was 762,000 oz against 830,000 oz a year ago. Gold production - attributable was 835,000 oz against 830,000 oz a year ago. Average realized gold price was $1,399 million oz against $1,667 million oz a year ago.
The company reported impairment of goodwill and mining assets of $888.1 million and write-down of assets of $113.8 million for the fourth quarter of 2013.
The company provided production and capital spending guidance for the full year of 2014. The company is forecasting gold production in the range of 835,000 to 900,000 ounces for 2014. Production is expected to build throughout the year starting with a range of between 175,000 and 195,000 ounces in the first quarter. With the plant expansion completed at Essakane, the new processing line will be milling higher-grade hard rock and we expect a ramp up in the second half of the year, resulting in an approximate 25% increase in 2014 production for this operation. The second half of the year is expected to see a lift in production from Westwood as well, as it ramps up from the first half which will mainly focus on underground development. Rehabilitation of the zone impacted by the rockburst at Westwood in 2013 is on schedule, with access now being established to all of the affected sublevels. Close to 80% of gold production in 2014 at the Doyon division is expected in the second half of the year. Mouska production will be limited in preparation for closure at the end of the first quarter 2014. As a result, production from the Doyon division will be lower in the first half of the year. Production at the joint venture operations is expected to be lower in 2014 as Yatela nears the end of its mine life.
The company is targeting capital spending of $400 million for 2014. Depreciation expense is expected to increase in 2014 compared to 2013 with the commencement of commercial production at the Westwood mine, higher amortization of capitalized stripping at Essakane, and the completion of the Essakane plant expansion. Depreciation expense is expected to be in the range of $225 million to $235 million.
Iamgold Corporation Announces Minority of Employees at the Sadiola and Yatela Mines in Mali Embarked on Strike over the Issue of Redundancy Pay Packages
Feb 12 14
IAMGOLD Corporation announced that effective February 10, 2014 a minority of employees at the company's joint venture Sadiola and Yatela mines in Mali embarked on a strike over the issue of redundancy pay packages. At this stage, production at both mines is proceeding as normal. IAMGOLD's joint venture partner at these two mines, AngloGold Ashanti Limited oversees the local operations and remains in dialogue with employees and their representatives, including the National Section of Mines and Industries, known locally as SECNAMI, in order to find a solution suitable to all stakeholders. The more focused scope of operation at Sadiola was necessitated by the lower bullion price and is aimed at improving the mine's viability. Unfortunately, however, it will affect employees of the joint venture, as well as those employed by the mining contractor, LTA Mali. The joint venture partners will also continue to engage all stakeholders; a Life-of-Mine Forum has been established to continuously inform employees of both mines, their respective unions and representatives from host communities, on developments relating to the mines' respective futures.