IAMGOLD Corp. Reports Unaudited Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Production Guidance for the Second Half and Full Year 2014
Aug 13 14
IAMGOLD Corp. reported unaudited consolidated earnings and production results for the second quarter and six months ended June 30, 2014. For the quarter the company reported revenues of USD 288.6 million against USD 301.1 million a year ago. Earnings from mining operations were USD 42.3 million against USD 92.3 million a year ago. Net losses attributable to equity holders of the company were USD 16.0 million against USD 28.4 million a year ago. Net loss per share was USD 0.04 against USD 0.08 a year ago. Adjusted net earnings attributable to equity holders of the company were USD 8.8 million against USD 30.2 million a year ago. Adjusted net earnings per share were USD 0.02 against USD 0.08 a year ago. Net cash from operating activities was USD 96.8 million against USD 37.9 million a year ago. The decrease in revenue was mainly due to a lower average realized gold price (USD 13.9 million) and, excluding joint ventures, lower gold sales volume of 5,000 ounces (USD 6.3 million), partially offset by higher niobium sales volume (USD 7.4 million). The improvement net profit mainly related to impairment charges of marketable securities and associates in the same prior year period, lower income taxes, net derivative gains, lower write-down of receivables and lower exploration expenses. The increase in net cash from operating activities was mainly due to collecting cash on outstanding receivables (USD 24.0 million), paying less income taxes (USD 31.8 million) and managing vendor payment terms (USD 34.2 million), partially offset by lower earnings from operations.
For the six months, the company reported revenues of USD 567.9 million against USD 606.4 million a year ago. Earnings from mining operations were USD 97.3 million against USD 213.2 million a year ago. Net losses attributable to equity holders of the company were USD 12.3 million against USD 17.5 million a year ago. Net loss per share was USD 0.03 against USD 0.05 a year ago. Adjusted net earnings attributable to equity holders of the company were USD 20.7 million against USD 87.9 million a year ago. Adjusted net earnings per share were USD 0.05 against USD 0.23 a year ago. Net cash from operating activities was USD 124.9 million against USD 137.4 million a year ago. In the second quarter 2014, expenditures for exploration and project studies totaled USD 20.2 million, of which USD 11.5 million was expensed and USD 8.7 million capitalized. This compares to USD 23.2 million for the same period in 2013.
For the quarter, the company reported gold commercial production attributable of 197,000 oz against 214,000 oz a year ago. Gold production attributable was 206,000 oz against 224,000 oz a year ago. Compared to the second quarter 2013, production was down primarily due to lower grades at Rosebel resulting from a severe rainy season that impeded access to higher grade ore and expected lower production from Mouska as the mine reached its end of life.
For the six months, the company reported gold commercial production attributable of 368,000 oz against 402,000 oz a year ago. Gold production attributable was 378,000 oz against 412,000 oz a year ago.
Gold production in the second half of 2014 is expected to improve with access to improved grades at Rosebel, processing higher-grade hard rock at Essakane and the start of commercial production at Westwood, effective July 1, 2014.
The company is increasing its 2014 production guidance from a range of 4.7 million kilograms to 5.1 million kilograms of niobium to 5.2 million kilograms to 5.5 million kilograms of niobium and operating margins from a range of USD 15 kilogram to USD 17 kilogram to USD 17 kilogram to USD 19 a kilogram. The company announced that Westwood remains on track to produce between 100,000 and 120,000 ounces in 2014, including the contribution from Mouska.
IAMGOLD Corporation Announces Production Results for the First 30 Days of July
Jul 31 14
IAMGOLD Corporation declared commercial production at its Westwood Mine in the Abitibi region of Quebec effective July 1, 2014. The Westwood mine hoisted ore at an average of 1,075 tonnes per day for the first 30 days of July.
Gold Bullion Development Corp. Announces Signing of Custom Milling Agreement with IAMGOLD
Jul 14 14
Gold Bullion Development Corp. announced that it has signed a custom milling agreement with IAMGOLD to process ore from the Granada gold property at their Westwood Mill facilities. The officers of both companies have approved this agreement. The signing of this agreement is significant for the company and its shareholders as an efficient, direct, well-defined path to commercial gold production using Granada ore via implementation of the 'rolling start' concept. The agreement provides for and delineates the terms as follows: Receipt of Gold Bullion ore from the Granada project to be processed in 50,000 to 70,000 tonne batches three times per calendar year at the Westwood site. The annual target is set at 192,000 tonnes. The agreement anticipates that gold doré bars will be poured at the IAMGOLD mill, then transported by secure service to the Royal Canadian Mint for refining, with the finished product then sold as bullion to Scotia Mocatta, a division of Scotiabank Global Banking and Markets (Bank of Nova Scotia). An initial three-year term with access to additional milling years subject to CAPEX investment in the mill by Gold Bullion. Contract commencement is subject to the following: Gold Bullion obtaining its Certificate of Authorization from the proper Quebec authorities for open pit mining operations at Granada; IAMGOLD obtaining its Certificate of Authorization from the proper Quebec authorities for the processing of Gold Bullion's ore at their Westwood site; Certain CAPEX and OPEX deposit payments prepaid by Gold Bullion due when both Certificates of Authorization have been granted. The Gold Bullion Operations team first goal is to ship a trial-milling batch of 30,000 tonnes for milling in October 2014 prior to winter freeze up. Subsequent milling will continue in April 2015.