Proactiveinvestors United Kingdom Iamgold https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Iamgold RSS feed en Sun, 21 Jul 2019 16:38:54 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - IAMGOLD Corp fails to inspire Mackie Research ]]> https://www.proactiveinvestors.co.uk/companies/news/117094/iamgold-corp-fails-to-inspire-mackie-research-117094.html Mackie Research can't see any reason to own shares in gold miner IAMGOLD (TSE:IAG, NYSE:IAG).

It has released a note on the firm, which operates four mines in three continents, following its third quarter report yesterday, which said the company was making "excellent progress" in further reducing all-in sustaining costs.

For 2015, the firm now guides for all-in sustaining costs to be between $1,075 and $1,175 from $1,050 to $1,150 per ounce.

For the third quarter, all in costs were $1,027 an ounce - compared to $1,076/oz in the second quarter and $1,115/oz in the third quarter of 2014.

Gold output in the quarter was 197,000 ounces, with record production from the Essakane mine in Burkina Faso - up 29% from Q3/14. Overall group sales were 186,000 ounces of the yellow metal.

Revenue was $207.6 million, down 28% from the same period last year, mainly due to lower sales volume at Westwood and Rosebel due to lower production, a lower realised gold price, the closure of Mouska in 2014, and lower royalties following the sale of the Diavik royalty asset.

The net loss was $85.0 million ($0.22 per share), up $0.5 million from the same period last year.

Mackie analysts had this to say on the statement: "An absence of any initiative other than to “protect” cash does not generate any excitement or potential for an equity re-rating.

"While there is much attention paid to a working capital position that is US$800 million, we also note there is US$930 million of debt and long-term provisions.

"With a high all-in-sustaining-cost (AISC) of US$1,027/oz, there is little working margin at current gold prices, and operations are slowly consuming the balance sheet."

It also reckons the financials were "messy".

EPS was a loss of US$0.22, and even if losses on oil hedges are thrown out, the EPS loss was still US$0.12, says analyst Barry Allan.

Mackie had expected a loss of US$0.03.

IAMGOLD shares are today down 6.52% in Toronto at C$2.15.

Mackie rates the shares 'hold' targeting C$2.40.

]]>
Wed, 04 Nov 2015 13:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/117094/iamgold-corp-fails-to-inspire-mackie-research-117094.html
<![CDATA[News - IAMGOLD offers to buy-out remainder of EURO Ressources ]]> https://www.proactiveinvestors.co.uk/companies/news/116669/iamgold-offers-to-buy-out-remainder-of-euro-ressources-116669.html IAMGOLD (NYSE:IAG, TSE:IMG) has made an offer to buy-out the remainder of EURO Ressources.

It is proposed that IAMGOLD will pay €2.84 per share to take full control of the company. At that price the offer is pitched at a premium of 32% to the French company’s price on Friday.

The North American company already owns 86% of EURO Ressources, a Paris listed company which owns royalty rights to production from IAMGOLD’s 95% owned Rosebel gold mine in Suriname.

IAMGOLD, at the start of last year, deferred an expansion project at Rosebel.

The mine began production in 2004 and since then nearly 4mln ounces of produced gold has been subject to the EURO Ressources royalty arrangement. IAMGOLD highlights there could be a possible 3.1mln ounces of remaining at Rosebel

Steve Letwin, IAMGOLD chief executive, in a statement, described the offer as “attractive” in the context of volatile gold prices and the equity market environment.

“Given the pre-defined life of EURO's royalty interests, EURO shareholders have a unique opportunity to realize an above average return on their investment," Letwin said.

He added that the takeover would simplify the ownership structure of the Rosebel gold mine and would reduce the mine’s costs.

Earlier this month, IAMGOLD announced plans to reduce the Rosebel work force by 10% in order to cut costs.

]]>
Mon, 26 Oct 2015 13:16:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/116669/iamgold-offers-to-buy-out-remainder-of-euro-ressources-116669.html
<![CDATA[News - Iamgold to sell Diavik royalty stream to Sandstorm for $56.8 mln ]]> https://www.proactiveinvestors.co.uk/companies/news/106040/iamgold-to-sell-diavik-royalty-stream-to-sandstorm-for-568-mln-60600.html Iamgold (TSE:IMG), a Canadian gold producer, has agreed to sell the company's Diavik diamond royalty stream to Sandstorm Gold (TSE:SSL), a gold streaming and royalty company, for C$56.8 million.

Sandstorm has agreed to pay $52.5 million in cash on closing and three million warrants exercisable after for up to five years after initial production from the Diavik Diamond Mine's A21 pipe, at an exercise price of $4.50, Toronto-based Iamgold said in a statement today.

The royalty covers a property in the Northwest Territories that includes the Diavik Diamond Mine, which is owned 60 percent by Rio Tinto (NYSE:RIO) and 40 percent by Dominion Diamond (TSE:DDC).

The Diavik Mine is Canada's largest diamond mine, located on a 20 square kilometre island at Lac de Gras, Northwest Territories, approximately 300 kilometres from Yellowknife.

Diavik began producing diamonds in January 2003, and has since produced more than 90 million carats  from three kimberlite pipes.

"Given the quality of the Diavik Diamond Royalty we received very strong interest in the sale, which resulted in a satisfactory outcome for both parties," Iamgold’s chief executive officer Steve Letwin said in the statement.

"As a result of this sale, the previously completed sale of Niobec and ongoing initiatives to conserve cash, Iamgold is left in a very strong financial position with the ability to invest further in its existing portfolio of assets and to consider acquisition opportunities that will contribute to positive cash flow.”

Sandstorm said the deal with Iamgold will add $7 to $8 million per year in cash flow to its portfolio.

Sandstorm gained 3.5 percent to C$4.17 at 2:34 a.m. in Toronto, while Iamgold fluctuated and was trading at C$2.65, down 0.4 percent.

]]>
Mon, 23 Mar 2015 14:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/106040/iamgold-to-sell-diavik-royalty-stream-to-sandstorm-for-568-mln-60600.html
<![CDATA[News - Iamgold posts stronger Q4 earnings on improved sales, lower costs ]]> https://www.proactiveinvestors.co.uk/companies/news/105568/iamgold-posts-stronger-q4-earnings-on-improved-sales-lower-costs-59963.html Iamgold (TSE:IMG), a Canadian producer of gold focused on South America and Africa, reported better-than-expected earnings in the fourth quarter, buoyed by higher sales of attributable gold and lower all-in sustaining costs. Shares advanced.

Net earnings attributable to shareholders climbed to $26.7 million, or $0.07 per share, from $3.5 million, or a penny per share, a year earlier, the Toronto-based company said in a statement late yesterday.

Adjusted earnings were $0.03 compared with $0.05 in the year-earlier period. That beat the $0.01 average estimate of 12 analysts polled by Capital IQ.

Revenue from continuing operations improved to $272.5 million from $195.1 million as attributable gold sales rose to 234,000 ounces from 173,000, although the average realized price fell to $1,201 an ounce from $1,273.

Fourth-quarter attributable gold production totalled 241,000 ounces, up 7 percent quarter-over-quarter and higher for the third straight quarter due to improving grades at Essakane and Rosebel; all-in sustaining costs of $1,021 per ounce were lower for fourth consecutive quarter.

Shares rose 3.1 percent to C$2.99 at 10:12 a.m. in Toronto, paring losses over the past six months to 33 percent.

The company said it expects to produce 820,000 to 860,000 ounces of gold in 2015, and sees a ramp-up in production at Westwood in its first full year of commercial production; all-in sustaining costs for 2015 are forecast at $1,075-$1,175 per ounce.

Iamgold said total attributable proven and probable gold reserves fell 15 percent year-over-year to 8.6 million ounces of gold at the end of 2014.

"The exploration and mine site geology teams made remarkable progress on a number of fronts and are developing a strong pipeline of growth projects, during a time when they, along with their colleagues across the Company have been required to focus on doing more with less,” chief executive officer Steve Letwin said in the statement.

]]>
Thu, 19 Feb 2015 10:32:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/105568/iamgold-posts-stronger-q4-earnings-on-improved-sales-lower-costs-59963.html
<![CDATA[News - Iamgold retains “sell” rating at Dundee on cash flow challenges at current higher gold prices ]]> https://www.proactiveinvestors.co.uk/companies/news/105201/iamgold-retains-sell-rating-at-dundee-on-cash-flow-challenges-at-current-higher-gold-prices-59462.html Iamgold (TSE:IMG), a producer of gold in Suriname and Burkina Faso, had its “sell” rating and C$3.00 price target retained at Dundee Capital Markets in the wake of reporting fourth-quarter operating results that were better than expected, and providing 2015 guidance that met estimates.

“Following 2014's cost reduction initiatives and the ramp up of Westwood, we forecast Iamgold has the potential to realize a declining cost profile,” analyst Josh Wolfson wrote in a research note to investors today.

“Although we still project Iamgold will be challenged to generate net cash at current higher gold prices, the company is comfortably positioned in the interim with a healthy cash balance.”

In the fourth-quarter, Toronto-based Iamgold achieved production of 241,000 ounces, 4 percent above Dundee’s estimate of 231,000 ounces, largely driven by better realized results at Rosebel (estimated 94,000 ounces versus 86,000 ounces).

Preliminary fourth-quarter costs of $825 per ounce were 3 percent below Dundee’s estimate of $849 per ounce.

For the full 2014 year, Iamgold produced 844,000 ounces at total cash costs of $845-865 per ounce, achieving revised guidance of 835,000-855,000 ounces (previously 835,000-900,000 ounces) at $825-875 per ounce.

Iamgold provided 2015 guidance for 820,000-860,000 ounces at total cash costs of $850-900 per ounce. Dundee’s previous estimates had been 842,000 ounces at $839 per ounce.

Despite a greater proportion of lower cost Westwood production in 2015, Iamgold said it is forecasting a modest 2 percent rise in costs year-over-year. Dundee said this forecast is driven by higher costs at Essakane and Rosebel, where harder rock is being processed.

With successful ramp-up of the Westwood mine, Iamgold has the potential to deliver lower future costs. Dundee said it forecast Iamgold's fully loaded costs of $1,350 per ounce in 2015, decreasing closer to $1,300 per ounce thereafter.

Despite the tailwind of recently increasing gold prices, Dundee estimates Iamgold will be challenged to generate net cash.

“Nonetheless, we forecast no near term financial challenges for Iamgold, given its healthy liquidity of a reported $333 million in cash and bullion as of year-end,” Wolfson wrote.

“We note that although Iamgold will realize $500 million from the sale of Niobec, bond covenants require IMG to utilize $450 million of sale proceeds towards business development or acquisitions within 12 months, otherwise remaining funds must be utilized to redeem outstanding bonds at par (currently trading at 79.00).”

Also today, National Bank downgraded Iamgold to “sector perform”, saying fourth-quarter operational results and 2015 guidance were largely in line but “broader valuation-driving tailwinds” have eased.

Separately, the miner said late yesterday that a rock burst at its Westwood mine in Quebec caused an underground collapse, but no employees were injured and production continues uninterrupted.

Shares of Iamgold were down 9 percent at C$3.51 at 2:22 p.m. in Toronto.

]]>
Fri, 23 Jan 2015 14:44:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/105201/iamgold-retains-sell-rating-at-dundee-on-cash-flow-challenges-at-current-higher-gold-prices-59462.html
<![CDATA[News - Iamgold to trim capital spending 30%, says to benefit from cheap oil, high gold prices ]]> https://www.proactiveinvestors.co.uk/companies/news/105180/iamgold-to-trim-capital-spending-30-says-to-benefit-from-cheap-oil-high-gold-prices-59434.html Iamgold (TSE:IMG), a producer of gold in Suriname and Burkina Faso, said it expects its spending will be cut by about 30 percent and output will shrink, but costs will also be lower.

The Toronto-based miner said in a statement today that it’s benefiting from improved efficiency at its mines, lower oil prices, higher gold prices and the strengthened U.S. dollar compared with the Canadian dollar and euro.

The 2015 capital spending budget has been set at between $220 million and $240 million, down from $325 million last year.

Iamgold estimates all-in sustaining costs for 2015 to be in the range of $1,075 and $1.175 per ounce of gold overall. That would be down from a revised 2014 estimate of between $1,100 and $1,120 per ounce of all-in sustaining costs overall, which is below the $1,150 per ounce cost at the low end of its previous guidance.

The miner said it expects 2015 attributable gold production in the range of 820,000 and 860,000 ounces. The midpoint of the range would be slightly below the 844,000 ounces produced in 2014.

“Our strategy is to build on our achievements in 2014 to optimize the performance of our operations and to continue focusing on cost reduction, disciplined capital spending and cash preservation," Steve Letwin, chief executive officer of Iamgold, said in the statement.

Gold futures climbed 9.9 percent in January to $1,301.40 an ounce as of 12:29 p.m. on the Comex in New York, heading for the biggest monthly gain in three years.

]]>
Thu, 22 Jan 2015 14:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/105180/iamgold-to-trim-capital-spending-30-says-to-benefit-from-cheap-oil-high-gold-prices-59434.html
<![CDATA[News - Iamgold's Q3 misses, but Westwood mine key to long-term outlook, says Dundee ]]> https://www.proactiveinvestors.co.uk/companies/news/104193/iamgolds-q3-misses-but-westwood-mine-key-to-long-term-outlook-says-dundee-58140.html Iamgold (TSE:IMG) shares fell sharply Thursday, a day after the company reported third quarter adjusted earnings below estimates, hurt by lower gold prices and higher cash costs.

The company swung to a third quarter loss of 19 cents a share from a profit of 7 cents per share a year earlier. On an adjusted basis, earnings were breakeven, below consensus estimates of 4 cents per share.

Dundee Capital Markets said that despite the miss, its first impression of the results are slightly positive. The gold miner reported third quarter equity production of 225,000 ounces, 5 percent below Dundee's estimate, while total cash costs were $851 an ounce, in line with the brokerage firm's view.

The company said operating results were largely impacted by weaker production at its Essakane mine due to harder ore processed, and at Rosebel on account of lower grades, a problem which Dundee says is concerning.

Iamgold also reduced the upper end of its annual guidance, and now expects production in the range of 835,000 to 855,000 ounces, down from 835,000 to 900,000 ounces previously. The company stood by its total cash costs guidance of $825 to $875 per ounce.

"We calculate Iamgold generated its first quarter of positive free cash flow since 1Q12 ($13.8MM), although this was aided by temporary lower capital spending, higher consolidated gold sales than production, and low cash taxes," Dundee analyst Josh Wolfson wrote in a report released to clients this morning.

"Net debt improved to $480MM (2Q:$530MM), benefiting from FCF, but also materially due to a working capital inflow of $26MM, and investing income of $15MM (excl. capex). 

The analyst said that key to the company's long-term outlook is its ability to successfully ramp-up production at its Westwood mine, and sustain financial liquidity.

"While we continue to forecast material cash consumption at current gold prices (corp. fully loaded costs are $1,250-$1,300/oz), Westwood initial commercial production results and aggressive cost cutting measures in our view are incrementally positive," he added.

Total cash costs at Westwood were $772 per ounce during the quarter, 7 percent below Dundee's estimate of $808 an ounce, and at the low end of second half 2014 total cash cost guidance. As development ramp up continues, costs are expected to trend downwards, Wolfson said.

The Dundee analyst has a sell rating on the stock, and a price target of C$2.75. Shares fell 5.5 percent on Thursday to C$2.05 in Toronto as of 12:55pm ET. 

]]>
Thu, 13 Nov 2014 13:13:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/104193/iamgolds-q3-misses-but-westwood-mine-key-to-long-term-outlook-says-dundee-58140.html
<![CDATA[News - Iamgold to trim executive team by 40%, more cost-cutting measures ahead ]]> https://www.proactiveinvestors.co.uk/companies/news/104130/iamgold-to-trim-executive-team-by-40-more-cost-cutting-measures-ahead-58051.html Iamgold (TSE:IMG) advanced in early trading after the Canadian mid-sized gold miner said it will slash the size of its executive team by 40 percent and take other cost-cutting steps in the wake of slumping gold prices.

Shares were up 2.4 percent at $2.16 at 10.02 a.m. in Toronto, paring this year’s drop to 39 percent.

Three senior vice-presidents, including the heads of project and corporate development, will be leaving the company, Toronto-based Iamgold said in a statement late yesterday.

The company has also decided to reduce a number of its corporate memberships, including withdrawal from the World Gold Council.

Slumping precious metals prices were forcing miners to carry out cost-cutting initiatives across entire organisations. The gold price had recently hit its lowest since April 2010, falling below critical support levels on freefalling oil prices and U.S.-dollar strength.

Iamgold said it is targeting a 10 percent reduction in corporate general and administrative costs in 2015 as well as productivity and cost reduction initiatives at its Rosebel mine in Suriname and its Essakane mine in Mali.

"We are determined to make this company a stronger competitor in the gold industry," Iamgold’s chief executive officer Steve Letwin said in the statement.

 

 

 

]]>
Tue, 11 Nov 2014 10:22:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/104130/iamgold-to-trim-executive-team-by-40-more-cost-cutting-measures-ahead-58051.html
<![CDATA[News - Iamgold sells Niobec mine to Aaron Regent-led consortium for US$500 mln ]]> https://www.proactiveinvestors.co.uk/companies/news/103522/iamgold-sells-niobec-mine-to-aaron-regent-led-consortium-for-us500-mln-57212.html Iamgold (NYSE:IAG) (TSE:IMG) has reached a deal to sell its Niobec mine in Quebec, one of the world's three niobium producers, to a group of companies led by Toronto-based Magris Resources, for US$500 million in cash. 

Magris is headed by Aaron Regent, a mining veteran who has previously been CEO of two major Canadian miners -- Barrick Gold (TSE:ABX), and Falconbridge, a copper and nickel producer that was later sold to Xstrata.

The sale of the mine, which is located in the Saint-Honore-de-Chicoutimi region, also includes the adjacent rare earth element deposit. Iamgold will get another US$30 million once the rare earths deposit goes into commercial production, making the total value of the Niobec deal worth US$530 million. 

The US$500 million cash payment will be payable at closing. A 2 percent gross proceeds royalty will also be paid out on any rare earth element production, Iamgold said.

"This sale unlocks the value of Niobec for our shareholders, positions Iamgold as a pure gold play and significantly improves our liquidity, which provides us with the opportunity to further improve the grade and cost structure of our portfolio of gold assets," said president and chief executive officer, Steve Letwin in a statement released prior to market open on Friday.

Niobec was acquired by Iamgold in 2006 as part of a larger transaction, and has been a steady contributor to its operating cash flow ever since. 

Niobium is mainly used in the form of ferro-niobium to produce high strength, low alloy steel, for use in automotive, structural and pipeline applications, and demand is seen increasing as the U.S. currently imports 100% of its niobium needs.  Current annual demand is between 80,000 and 100,000 tonnes, growing at a rate of 4 to 6 percent per year. 

Iamgold said the sale will give it additional cash to invest in the growth of its gold portfolio, as part of its efforts to be free cash flow positive at its owner-operated gold mines, including capital spending. 

However, the gold giant emphasized that it will take a disciplined approach to investment, seeking out only "appropriately-sized opportunities" that improve its overall cost structure and cash flow generation. If there are no such opportunities, the company would instead consider reducing its debt load.

Aside from Magris Resources, the group of buyers of Niobec includes Hong Kong-based investor CEF Holdings, which is owned 50 percent by Cheung Kong Limited and 50 percent by CIBC, and Singapore-based investment manager Temasek.

Iamgold, after receiving the $500 million in proceeds, will have liquid assets of over $800 million, in addition to the $500 million in unused credit facilities.

The company said based on current estimates, the deal is expected to result in a gain of about $50 to $60 million. It is anticipated to close in the fourth quarter, subject to regulatory approvals.

Iamgold shares hit a 52-week low of $2.94 on Thursday and closed just above that at $3.04. Shares fell by almost 1 percent in early deals Friday, to C$3.01 in Toronto.

]]>
Fri, 03 Oct 2014 09:54:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/103522/iamgold-sells-niobec-mine-to-aaron-regent-led-consortium-for-us500-mln-57212.html
<![CDATA[News - Iamgold hits 5-week high as Q2 loss narrows, revenue tops ]]> https://www.proactiveinvestors.co.uk/companies/news/102808/iamgold-hits-5-week-high-as-q2-loss-narrows-revenue-tops-56156.html Iamgold Corp. (TSE:IMG), a Canadian producer of gold focused on Suriname and Burkina Faso, rose to the highest in five weeks after reporting a narrower net loss as revenue beat estimates.

Shares rose as high as C$4.45, the lowest intraday price since July 10 and were trading at C$4.39, up 4.5 percent, at 10:23 a.m. in Toronto.

Net loss narrowed to $16 million, or $0.04 loss per share, in the April-to-June period, from a net loss of $28.4 million, or $0.08 loss per share, in the year-earlier period, the Toronto, Ontario-based company said in a statement late yesterday.

Adjusted earnings were $0.02 per share. That missed the $0.03 average estimate of 16 analysts.

Revenue dropped to $288.6 million from $301.1 million as both sales volume and average realized price for gold fell from a year earlier. That result surpassed Bay Street's consensus of $274.6 million.

Iamgold said its average realized gold price for the quarter dropped to $1,288 per ounce from $1,373 per ounce last year, and gold sales volume slipped to 192 thousand ounces from 201 thousand ounces.

Also weighing on results was cost of sales that rose by $37.5 million to $246.3 million.

The company had to contend with lower gold production in the quarter, due to poor grades at Rosebel mine stemming from harsh rainy season as well as weak output from the aging Mouska mine.

To return to growth, Chief Executive Officer Steve Letwin said the company is focused on improving efficiency and productivity across all operations.

"We are confident that we will meet guidance for the year," he said. "With Niobec continuing to demonstrate operational excellence, we raised guidance for both niobium production and operating margins."

 

 

]]>
Thu, 14 Aug 2014 10:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/102808/iamgold-hits-5-week-high-as-q2-loss-narrows-revenue-tops-56156.html
<![CDATA[News - Iamgold stock sheds after 2014 guidance predicts higher total cash costs ]]> https://www.proactiveinvestors.co.uk/companies/news/99526/iamgold-stock-sheds-after-2014-guidance-predicts-higher-total-cash-costs-51474.html Iamgold Corp (TSE:IMG) declined more than 9% on Wednesday, after predicting higher total cash costs for this year, and cutting capital expenditures by 40% to $400 million. 

The news came as the company announced production results and preliminary cash costs for 2013, as well as guidance for 2014. 

It said preliminary total cash costs last year were approximately $800 an ounce, at the lower end of guidance of $790 to $840 per ounce. All-in sustaining costs are expected at $1,235 an ounce, within guidance of $1,150 to $1,250 an ounce.

For 2014, however, the gold producer is anticipating total cash costs in the range of $825 to $875 an ounce, and steady all-in sustaining costs in the range of $1,150 to $1,250 an ounce.

The company also posted production of 835,000 gold ounces in 2013, lower than in 2012, and said it is forecasting between 835,000 and 900,000 ounces this year.

President and CEO, Steve Letwin, said: "Early in the year we established three critical priorities - cost reduction, disciplined capital allocation and cash preservation - that placed the emphasis squarely on economic returns as the predominant driver of our business decisions. We have made excellent progress on all three.

"We finished 2013 with cash costs near the bottom of the guidance range, which, midway through the year had been revised downward following excellent traction with our $100 million cost reduction program. All-in sustaining costs are within guidance, we continue to be disciplined around capital spending and we ended the year with approximately $380 million in cash and bullion and $750 million in undrawn credit facilities.

"Our persistent efforts to preserve cash, cut costs and tighten capital spending are paying off despite our lower production this year as we focus on profitable ounces."

The chief executive said the company's 2014 production guidance reflects the planned ramp up in production at its Westwood mine in the second half of the year, and the post-expansion ramp up anticipated at Essakane beginning in the first quarter.

Iamgold is planning to continue with costs reduction efforts, including efforts to reduce working capital. It is expecting some variation in costs throughout the year. 

"We will challenge our operations to seek further productivity gains to temper cost escalations that have been the norm in our industry," said Letwin. The company, with six operating gold mines in Canada, South America and Africa, held cash and equivalents and gold bullion of $380 million at year-end 2013.

Shares of the gold miner declined more than 9% on Wednesday afternoon, to $4.09. 

]]>
Wed, 22 Jan 2014 14:03:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/99526/iamgold-stock-sheds-after-2014-guidance-predicts-higher-total-cash-costs-51474.html
<![CDATA[News - Iamgold to spend $36 mln for 70% interest in Solvista property; Solvista soars ]]> https://www.proactiveinvestors.co.uk/companies/news/99119/iamgold-to-spend-36-mln-for-70-interest-in-solvista-property-solvista-soars-50808.html Iamgold Corp. (TSE:IMG), the Canadian gold producer operating in Suriname and Burkina Faso, rose to the highest in a week after agreeing to earn up to a 70 percent interest in a Solvista Gold Corp. (CVE:SVV) property.

Iamgold gained 0.8 percent to C$3.72 at 3:09 p.m. in Toronto after reaching C$3.79, the highest intraday price since Dec. 12. Shares of Solvista more than doubled to 17 Canadian cents before trading at 11.5 Canadian cents, up 44 percent.

Solvista agreed that Iamgold will have the right to earn a 70 percent interest in Solvista's Caramanta project, located in Colombia's Mid-Cauca Belt, for $36 million, Toronto-based Solvista said in a statement today.

Iamgold can earn an initial 51 percent interest in the project by investing a total of $18 million in qualifying expenditures, which includes $900,000 of cash payments to Solvista, over a maximum five-year period commencing on Dec. 16, with Iamgold as the project operator. 

Iamgold can also earn an additional 19 percent interest in the project, for a total 70 percent interest, by investing a further $18 million in qualifying expenditures over a maximum three-year period following the completion of the initial 51 percent earn-in.

Solvista and Iamgold may enter into a joint venture to hold and advance the project upon completion of Iamgold's 51 percent or 70 percent earn-in, according to the statement.

]]>
Wed, 18 Dec 2013 15:48:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/99119/iamgold-to-spend-36-mln-for-70-interest-in-solvista-property-solvista-soars-50808.html
<![CDATA[News - Iamgold suspends dividends due to weak gold price ]]> https://www.proactiveinvestors.co.uk/companies/news/99004/iamgold-suspends-dividends-due-to-weak-gold-price-50660.html "While our outlook for gold over the long term is optimistic, in light of the current gold price we are suspending the dividend to preserve our balance sheet," said president and CEO Steve Letwin in a statement late Wednesday.
"We are on target to reduce costs by $100 million this year and will continue to look for further reductions next year.  This decision to suspend the dividend allows us to conserve cash and ensure we maintain the flexibility we need to take advantage of opportunities when they arise."
Precious metals miners across the industry have engaged in aggressive cost-cutting programs this year to survive the current gold price environment, which has seen the price of the yellow metal tumble about 25% year-to-date.
Miners -- ranging from large to small -- have cut operational and administrative costs so as to conserve cash, with many mines becoming uneconomical to run under a price of $1,250 an ounce. These measures have included cutting mining contractors, reducing staff, renegotiating contracts and halting dividends.
Gold futures for February delivery on the Comex are currently trading around $1,234 an ounce amid tapering fears, with the Federal Reserve set to soon start to scale back its support for the U.S. economy. The $85-billion-a-month Fed program has boosted the price of gold in the past years and sustained its bull run, with gold now set to post its first annual loss since 2000.
Iamgold, which has a portfolio of assets in Canada, South America and Africa, has six operating gold mines, including one of the world's top three niobium mines. The company noted that it continues to maintain $750 million in undrawn, unsecured credit facilities.
Shares of Iamgold were down 2.8% just minutes before the opening bell, at $3.73. So far this year, the stock has tumbled nearly 67%. The S&P/TSX Global Mining Index has shed over 24% year-to-date. ]]>
Thu, 12 Dec 2013 09:28:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/99004/iamgold-suspends-dividends-due-to-weak-gold-price-50660.html
<![CDATA[News - Iamgold rises on plan to build solar project in Suriname ]]> https://www.proactiveinvestors.co.uk/companies/news/98726/iamgold-rises-on-plan-to-build-solar-project-in-suriname-50221.html Iamgold Corp. (TSE:IMG), a Canadian gold producer, rose in morning trading after saying it will build a 5-megawatt solar power project in Suriname, South America, for as much as $14 million.

Iamgold shares rose 2.1 percent to C$4.41 at 9:33 a.m. in Toronto. The stock has lost more that three fifths of its market value since the beginning of the year.

Toronto-based Iamgold said in a statement today that its subsidiary Rosebel Gold Mines N.V. will fund the development and operation of the project, which is expected to operate at the start of the third quarter.

"As Rosebel transitions from mining soft rock to harder rock deposits we need an increased amount of power to crush and grind the ore to facilitate the gold extraction," Chief Executive Officer Steven Letwin said in the statement. 

The solar project will be managed and operated by RGM, a 70-30 joint venture between Iamgold and the government of Suriname.


]]>
Wed, 27 Nov 2013 09:49:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/98726/iamgold-rises-on-plan-to-build-solar-project-in-suriname-50221.html
<![CDATA[News - Iamgold and AngloGold slowly dismantle Mali mine ]]> https://www.proactiveinvestors.co.uk/companies/news/97377/iamgold-and-anglogold-slowly-dismantle-mali-mine-48074.html Iamgold Corporation (TSE:IMG) (NYSE:IAG) announced Monday that its joint venture with AngloGold Ashanti (NYSE:AU) (LON:AGD) and the government of Mali has decided to suspend mining excavation activities at the Yatela mine in Mali, effective September 30, 2013.   

The joint venture, the Société d'Exploration des Mines d'Or de Yatela S.A, in which both Toronto-based gold producer Iamgold and South Africa-based gold miner AngloGold Ashanti hold a 40 per cent stake, with the remainder being held by the government of Mali, operates the mine situated over 600 kilometres north-west of the Malian capital of Bamako.

The decision was reached, the company said, as a result of a combination of factors, including miner safety in the pit, the drop in the spot price of gold and the reduction in profit margin. 

"It has been extraordinarily difficult to extend the life of mine at Yatela given this environment of rising costs and falling gold prices,” said executive VP and COO of Iamgold, Gord Stothart.

“We recognize the contribution of the contracted and employed Malian mine workers to the Yatela mine, however, we and our partners believe that this is the best decision at this time as the mining activities at Yatela are no longer capable of making a positive contribution to any of our stakeholders.  

"We will now be able to turn more of our attention to the mines and projects which we are more confident can make a positive contribution."

While the process of gradual dismantling of the site is planned for September 30, 2013, the company advised in its statement that the processing of heap leach pads and ore already mined will continue until the end of 2016, as “the end of the mining activities does not yet mean the end of the mine.”

Nonetheless, as a consequence of the decision, contractual arrangements with Yatela's mining contractors will be concluded. AngloGold Ashanti, as the mine operator, will focus on compliance with all regulations governing the reduction of staff.  

Iamgold said that Yatela's community development activities will not be affected, mentioning in its statement that “a new plan for social development focusing on the expansion and marketing of community development and current socio-economic projects is being developed.”

The Yatela SA Mine project started in 1997, with the mining license issued in 2000 and the first gold poured in 2001. The initial expected life of mine was six years, and thus its closure was forecast to occur in 2007. The discovery of additional economically exploitable deposits extended the life of the mine and led Yatela SA to defer the closure date several times.

Shares in Iamgold had dropped 20 cents in morning trading in Toronto the morning of the announcement, hitting $5.36 as of 9.50am EST. Shares in AngloGold Ashanti were trading up in New York this morning, adding 44 cents to hit $13.02.

]]>
Mon, 16 Sep 2013 10:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/97377/iamgold-and-anglogold-slowly-dismantle-mali-mine-48074.html
<![CDATA[News - IAMGOLD reports 91% drop in profit; moves to cut costs ]]> https://www.proactiveinvestors.co.uk/companies/news/94807/iamgold-reports-91-drop-in-profit-moves-to-cut-costs-43606.html  

IAMGOLD Corp (TSE:IMG) (NYSE:IAG) took a beating at the hands of a softening gold market and lowered production to post a 91 per cent drop in profit for the first quarter of the year.

The Toronto-based gold miner reported net earnings of US$10.9 million, for earnings per share of 3 cents, compared to the US$119.2 million or 22 cents per share recorded in the same quarter a year ago.

Adjusted earnings for the quarter ending March 31, 2013 were reported as $57.7 million or 15 cents per share, a fall from the year ago figures of $91.6 million or 24 cents a share.

Revenue for the first quarter declined to $305.3 million from $354.1 million for the same period a year ago, a fall of 14 per cent. The drop is due to the lower volume of gold sales and production. The company said 188,000 ounces of gold was produced for the quarter compared to 207,000 ounces for the same time a year ago, a result of lower grades at the Essakane mine in Burkina Faso and the Sadiola mine in Mali.

Attributable sales were also down, with the first quarter of 2013 recording sales of 171,000 ounces compared to attributable sales volume of 195,000 ounces in the year ago period. The quarter’s average realized price of $1,631 per ounce was also down on the equivalent figure of $1,704 per ounce a year ago. 

Earnings per share were a penny up on analysts’ expectations, which were for a profit of 14 cents per share, although revenue was well down on expectations of $381.3 million.

The company also included in the announcement of the quarterly figures an update on the $100 million cost-reduction program announced in March, designed to counter the cost pressure of inflation and expenses associated with specific sites. Plans call for a reduction of $43 million in operations, $40 million from exploration expenditures and roughly $11 million from mine site and $6 million from corporate general and administrative costs.

“With the initiation of our $100 million cost reduction program before the drop in gold prices and our history of disciplined capital allocation, IAMGOLD was well ahead of the curve in responding to the challenges in our industry,” president and chief executive Steve Letwin said in a company statement released with the figures.

"We are very encouraged with cash costs coming in at $787 an ounce, $63 below the bottom of our guidance, and we will revisit our cost guidance in the second quarter. At the same time, our continued focus on maintaining a strong balance sheet gives us the option of deferring capital expenditures apart from what is essential to sustaining the current operations. 

“We will move forward only with expansion and development projects that meet our criteria for delivering attractive returns. The traction we are making on the cost front together with our renewed commitment to capital discipline points to a positive outlook ahead.”

Shares in the company were trading down this morning on the TSX, losing 14 cents from a previous close of $5.39 per share, a drop of more than 2 per cent.

 

]]>
Wed, 08 May 2013 09:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/94807/iamgold-reports-91-drop-in-profit-moves-to-cut-costs-43606.html
<![CDATA[News - Iamgold higher after start-up of new Westwood plant; provides detailed cost cutting plan ]]> https://www.proactiveinvestors.co.uk/companies/news/93766/iamgold-higher-after-start-up-of-new-westwood-plant-provides-detailed-cost-cutting-plan-41877.html

Shares of Iamgold Corp (TSE:IMG) (NYSE:IAG) advanced Thursday after the company announced the start up of its gold processing plant at the Westwood mine in Quebec, and provided a breakdown of its cost reduction program for this year. 

Earlier this month, the mid-tier gold mining company, which operates five gold mines on three continents, announced it had started a program to cut annualized spending by $100 million. The cost-cutting initiatives are aimed at reducing mine operating costs, exploration expenditures and mine site and corporate general and administrative costs. 

The company provided more detail of the program in its statement Thursday, identifying $43 million of potential cost savings in operations, $40 million in exploration, $11 million in general and administration at site, and $6 million in corporate general and admin costs. It plans to provide "regular updates" on achieving these targets. 

Meanwhile, the gold miner also announced today that the new Westwood plant is expected to produce around 140,000 ounces of gold this year - with 60,000 ounces from the stockpiled ore at the 30-year old adjacent Mouska mine, and 80,000 ounces from the new Westwood mine. 

The first gold pour, which is expected at the end of March, will likely be sold to a refinery in the second quarter of 2013, it said. 

"The same in-house engineering team who constructed Essakane [in Burkina Faso], has now completed the development of the Westwood Mine and refurbishment of the old Doyon plant to process Westwood ore," said the company in its release, citing president and CEO, Steve Letwin.

"The team's success increases our confidence in our capability to meet our 2013 production guidance."

Shares of Iamgold picked up by more than 4 percent on Thursday morning to $7.38 in Toronto. 

]]>
Thu, 21 Mar 2013 10:42:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/93766/iamgold-higher-after-start-up-of-new-westwood-plant-provides-detailed-cost-cutting-plan-41877.html
<![CDATA[News - IAMGOLD shares drop 3% after spending cut announcement ]]> https://www.proactiveinvestors.co.uk/companies/news/93394/iamgold-shares-drop-3-after-spending-cut-announcement-41235.html

IAMGOLD Corp. (TSE:IMG) (NYSE:IAG) shares dropped 3 percent after the mid-tier gold mining company announced it had started a program to cut annualized spending by $100 million.

The stock dropped to C$6.6 at 11:33 a.m. in Toronto, after retreating to as low as C$6.35 earlier in the day.

The cost-cutting initiatives aimed at reducing mine operating costs, exploration expenditures and mine site and corporate general and administrative costs, the Toronto-based company said in a statement today.

The company operates five gold mines on three continents. The shares have tumbled 43 percent this year.

]]>
Mon, 04 Mar 2013 11:41:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/93394/iamgold-shares-drop-3-after-spending-cut-announcement-41235.html
<![CDATA[News - Iamgold shares sink as Q3 results miss, lowers FY 2013 outlook ]]> https://www.proactiveinvestors.co.uk/companies/news/91198/iamgold-shares-sink-as-q3-results-miss-lowers-fy-2013-outlook-37307.html  

Toronto-based Iamgold (TSE:IMG) (NYSE:IAG) saw its shares fall over 16 per cent Wednesday after it reported third quarter results that fell short of analysts’ expectations as gold sales and production dropped and exploration expenses increased.

Shares of the company fell $2.40 as at about 11:45 a.m. EDT, trading at $12.48, as the company also lowered its 2013 production forecast. 

The gold miner said that net earnings from continuing operations attributable to equity holders increased 56 per cent to $78.0 million or 21 cents per share, from $50.0 million or 13 cents per share a year earlier.

The company said the increase was mainly related to one-time items, including higher derivative gains on commodity and foreign exchange contracts, lower income taxes and lower foreign exchange losses.

Adjusting earnings, which the company said excluded items not indicative of underlying operating performance, were $60.2 million or 16 cents per share, compared to $112.4 million or 30 cents per share in the year-ago quarter.

Revenues were $386.8 million, down 10 per cent, mainly the result of lower gold sales volume, Iamgold said.

Analysts polled by Thomson Reuters expected adjusted earnings per share of 24 cents on $427 million in revenue.

"We are performing well at the mines we own and operate,” said president and CEO Steve Letwin.

“Year-to-date production and cash costs at these operations, which account for 85 per cent of our production, are on target. In contrast, the performance of the mines not operated by us was disappointing and places us at the lower end of our production guidance. 

“This clearly demonstrates the benefits of re-positioning our company to better leverage our expertise as operators.”

Gold production fell to 205,000 ounces, compared to 222,000 ounces in the year-ago period. 

Total cash costs were $710 per ounce, up from $674 per ounce a year earlier, mainly due to the impact of lower grades on gold production, the company said.

Cash costs at Iamgold-operated sites were $644 per ounce, up from $602 per ounce in the third quarter of 2011.

Gold margin was $960 per ounce, down from $1,001 per ounce in the same quarter last year, reflecting flat gold prices year-over-year and an increase in cash costs.

Looking ahead, Iamgold said it is reducing its capital expenditure forecast for 2013, with details to be communicated at a later date. 

The company also revised its 2013 gold production forecast lower to between 875,000 and 950,000 ounces. This compares to its previous forecast for overall gold production of between 1.0 and 1.1 million ounces.

Iamgold has operations in West Africa, South America and Canada. Its two largest operations are the Rosebel mine in Suriname and the Essakane mine in Burkina Faso.

 

]]>
Wed, 14 Nov 2012 11:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/91198/iamgold-shares-sink-as-q3-results-miss-lowers-fy-2013-outlook-37307.html
<![CDATA[News - Tolima Gold and Iamgold ink $1 mln joint venture for Ancal ]]> https://www.proactiveinvestors.co.uk/companies/news/90211/tolima-gold-and-iamgold-ink-1-mln-joint-venture-for-ancal--35703.html  

Tolima Gold Inc. (CVE:TOM) Tuesday announced that it has inked a preliminary option and joint venture deal worth U.S.$1 million, with Iamgold Corp. (TSE:IMG) (NYSE:IAG).

Under the terms of the letter agreement, Iamgold will have the option to acquire up to a 70-per-cent interest in 26 mining properties comprising Tolima's Ancal gold project, for the further joint development of the properties.

Iamgold, one of Tolima’s largest shareholders with a 13 per cent stake, has agreed to pay two equal installments of $500,000, the first one upon signing of the deal and the second on March 29, 2013.

“We are very pleased to have a company like Iamgold, with its gold exploration, development and production experience, participating in the Ancal project,” said Tolima CEO Jamie Lopez.

“Results to date suggest that the Ancal project has significant potential and Iamgold's participation in the project supports our views about such potential.” 

Tolima said that Iamgold can earn a 51-per-cent interest in the properties within 30 months of the date of the agreement, spending at least $6 million on exploration.

Iamgold can earn a further nine-per-cent interest in the properties by spending at least $6 million of additional exploration expenses, within two years of the exercise of the 51-per-cent option.

Additionally, Iamgold can earn a further 10-per-cent interest in the properties by completing a feasibility study within three years of the exercise of the nine-per-cent option.

Tolima said that the first $3 million of exploration investment is firm, and has to be paid in cash to Tolima, even if Iamgold does not exercise the first option. 

It added that Iamgold will be the operator of the properties with the oversight of a management committee appointed by both parties.

Tolima’s properties include the Remedios project, located in the Remedios/Segovia mining district in the Antioquia Department of Colombia, with over 11,500 hectares of exploration ground, two mines and an operating gold processing and recovery plant with a capacity of 100 tonnes per day.

Its Ancal project in the Marmato/Caramanta district of Colombia, includes more than 28,000 hectares of exploration ground. 

Finally, Tolima’s Nortol project is located in the Tolima Department of Colombia and includes more than 48,000 hectares of exploration ground and the Papayo mine, which is being rehabilitated. 

The company said it is continuing to explore opportunities for the acquisition of additional mining interests in prospective mining districts in Colombia.

 

]]>
Tue, 09 Oct 2012 11:13:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/90211/tolima-gold-and-iamgold-ink-1-mln-joint-venture-for-ancal--35703.html
<![CDATA[News - IAMGOLD exits Ecuador with sale of Quimsacocha to INV Metals ]]> https://www.proactiveinvestors.co.uk/companies/news/87241/iamgold-exits-ecuador-with-sale-of-quimsacocha-to-inv-metals-30837.html INV Metals Inc. (TSE:INV) Thursday agreed to acquire the Quimsacocha Project in Ecuador from IAMGOLD Corp. (TSE:IMG) (NYSE:IAG) for approximately $30 million in INV stock.

This will make IAMGOLD the largest shareholder in INV with a 20 percent stake.

The acquisition of Quimsacocha will transform INV Metals from a junior exploration company to an advanced-stage development company with excellent exploration potential on the project as well as other exploration projects in Brazil and Namibia.

The Quimsacocha Project is located approximately 30 km southwest of the city of Cuenca, Azuay Province, Ecuador.

The Indicated Mineral Resource is estimated at 3.3 million ounces gold within 32.6 million tonnes grading 3.2 grams per tonne (g/t) gold, 22 g/t silver and 0.20% copper. The Inferred Mineral Resource is estimated at 0.2 million ounces gold within 2.3 million tonnes grading 2.2 g/t gold, 27 g/t silver and 0.22% copper, both at an NSR cut-off value of US$22 per tonne, equivalent to approximately a 0.4 g/t gold cut-off.

"This transaction is a transformational event for the company and its shareholders and has the potential to enable the company to become a gold producer in the shortest possible time frame," INV Metals chairman Terry MacGibbon said.

"The acquisition of an advanced exploration property with over 3.3 million ounces of high-grade gold for expected consideration of $30 million is anticipated to add significant value to INV Metals."

Following the closing of the acquisition, the Company will immediately begin the update of all previous engineering, environmental and technical work carried out on the project, which was in the pre-feasibility stage prior to the suspension of field work in 2009.

INV Metals has retained Roscoe Postle Associates to assist with the due diligence process, complete updated mineral resource estimates and prepare a technical report in respect of the project.

The completion of engineering and other essential studies will allow the company to develop a plan and time table to bring the property to the feasibility stage. The company will also initiate, after the closing of the acquisition, an aggressive $15 million exploration program to expand the known resources and search for additional gold discoveries.

INV said that typically, this type of high sulphidation gold deposit occurs in clusters within a large alteration system, which is present on the property. The Quimsacocha Project already has well defined, high priority, untested targets for the discovery of additional gold deposits as well as associated copper porphyry deposits at depth.

"The company believes that the economics of the project have potential to prove to be positive within the current Ecuadorian fiscal regime. All of the relevant permits are in place to allow for the commencement of advanced exploration on the property immediately following the closing of the acquisition," INV's MacGibbon added.

Quimsacocha deposit is a high sulphidation epithermal gold-copper-silver deposit with a high grade core surrounded by a lower grade shell within Upper Miocene volcanic flows and volcaniclastics.

The deposit is a flat lying, north-south striking, cigar shaped body which is considered to be amenable to both open pit and underground mining scenarios.

The first known exploration on the project area was carried out by the United Nations in the late 1970s in search of base metal anomalies. COGEMA acquired the property in 1991 and in 1993 entered into an exploration joint venture with Newmont Mining Corp. and TVX Gold, who subsequently withdrew. IAMGOLD acquired the property in 1999, prior to which a total of 9,450 metres had been drilled.

The property is subject to a payment to COGEMA of US$2 for each ounce of gold contained in proven and probable reserves plus the indicated and measured resources defined by a feasibility study, commencing on the date a formal production decision is made and a 5 per cent net profit interest royalty in the event any operations are carried out on the property.

INV intends to retain all of Ecuador Subco's management, exploration and social teams, including the geologist who discovered the Quimsacocha deposit.

Closing of the acquisition is subject to the completion of an equity offering to raise not less than $20 million and the receipt of shareholder and regulatory approvals.

INV Metals has re-scheduled its annual and special meeting to August 15, 2012 to consider the acquisition, among other matters.

Following closing of the deal, IAMGOLD will have the right to appoint one director to INV' board and for so long as IAMGOLD holds 20 per cent of INV Metals' issued and outstanding common shares, IAMGOLD will have a right to nominate one director to INV Metals' board and the right to maintain its pro rata shareholding.

INV Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil and Namibia.

Currently, INV's primary assets are its option to acquire 50 per cent of the Rio Novo property, located in Brazil, and its option to acquire 50 per cent of the Kaoko property, located in Namibia.

]]>
Thu, 21 Jun 2012 09:49:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/87241/iamgold-exits-ecuador-with-sale-of-quimsacocha-to-inv-metals-30837.html
<![CDATA[News - Iamgold to buy Trelawney Mining for C$585 mln ]]> https://www.proactiveinvestors.co.uk/companies/news/85717/iamgold-to-buy-trelawney-mining-for-c585-mln-28325.html Iamgold Corp (TSE:IMG) (NYSE:IAG) Friday announced that it has agreed to buy Trelawney Mining and Exploration (CVE:TRR) for $585 million in cash, adding the Côté Lake gold deposit in northern Ontario to its mining portfolio.

Under the terms of the agreement, Trelawney shareholders will receive $3.30 in cash for each share held for a total of $585 million based on 177.37 million shares outstanding, with an enterprise value of $505 million net of cash, the company said.

The deal price represents a premium of 36.6 percent over Trelawney's 20-day volume weighted average price for the period ending April 26, 2012, and is roughly 42 percent higher than Trelawney's closing price yesterday.

Trelawney is a Canadian junior mining and exploration company that is developing the Côté Lake deposit, where it said the resource is estimated to contain 0.9 million ounces of indicated gold and 5.9 million ounces of inferred gold.

The transaction is expected to close by the end of June.

"The acquisition of Trelawney creates a larger and more geographically balanced portfolio of long-life gold assets for Iamgold," said the company’s president and CEO Stephen Letwin.

"This transaction provides an accretive return on invested capital as we are effectively redeploying the cash proceeds from the sale of non-core assets last year into a Canadian gold project that significantly strengthens our future gold production profile.

"This is consistent with our strategy to invest in development projects that we own and operate so we can derive maximum benefit from leveraging our operational and development expertise."

Iamgold said the deal will increase its inferred resources by 95 percent, while measured and indicated resources will rise by five percent.

The company said that there is significant exploration and expansion potential near the current resource at Côté Lake, a large 516 square kilometre land package.

In late February, Trelawney announced an updated mineral resource estimate for Côté Lake, comprising 35 million tonnes at 0.82 grams per tonne (g/t) gold for 0.93 million ounces of indicated resources, and 204 million tonnes at 0.91 g/t gold for 5.94 million ounces of inferred resources.

Iamgold said mineralization at Côté Lake has been intersected over a strike length of 1,200 metres, a horizontal width of 100 to 300 metres and a depth extent of more than 500 metres.

"This project has the potential to become a large bulk tonnage operation, with significant economies of scale at competitive cash costs," said Iamgold executive VP and COO Gordon Stothart.

"We believe the project has the potential and scale to significantly contribute to our future production and growth profile."

Iamgold, which has operations in North America, South America and Africa, produced 972,000 ounces of gold for the full-year fiscal 2011.

Its 95 percent-owned Rosebel mine in Suriname in South America produced 385,000 ounces of gold, while its Essakane mine in Mali, Africa produced 337,000 ounces of gold.

The 41 percent-owned Sadiola mine and the 40 percent-owned Yatela mines, each located in Mali, produced a combined total of 150,000 ounces of gold.

]]>
Fri, 27 Apr 2012 09:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/85717/iamgold-to-buy-trelawney-mining-for-c585-mln-28325.html
<![CDATA[News - Iamgold nearly doubles 2012 budget despite 20% drop in Q4 production ]]> https://www.proactiveinvestors.co.uk/companies/news/82819/iamgold-nearly-doubles-2012-budget-despite-20-drop-in-q4-production-23526.html Iamgold (TSE:IMG)(NYSE:IAG) nearly doubled its 2012 budget for capital expenditures on Monday, despite reporting a 20 percent drop in fourth quarter production.

For the full year fiscal 2012, the mid-tier gold producer said it expects to spend a total of about $880 million, mainly on the expansion and development of its 90 percent-owned Essakane mine in Burkina Faso, and its wholly-owned Westwood project in Quebec. Its budget in 2011 was only $460 million.

Iamgold president and CEO, Steve Letwin, said: "Our best returns will come from investment in our current operations where we can leverage existing infrastructure, geological knowledge, an experienced work force and strong relationships with governments and communities in those regions. 

"To that end we intend to invest approximately $2.7 billion in these brownfield investments, which will be funded by a combination of our strong cash and bullion position and robust cash flows from operations, backed by our significant lines of credit."

Still, the company produced about 22.5 percent less gold during the fourth quarter of 2011 than it did in the same period a year ago. For the more recent period, Iamgold reported production of about 253,000 ounces of gold, excluding discontinued operations, compared to about 310,000 ounces of gold a year earlier.

For the full year fiscal 2011, Iamgold produced 972,000 ounces of gold. It expects cash costs to be within its previously guided range of $620 to $650 per ounce. In 2010, the company produced 967,000 ounces of gold at a cash cost of $574 per ounce.

Its 95 percent-owned Rosebel mine in Suriname produced 385,000 ounces of gold in 2011, while its Essakane mine produced 337,000 ounces of gold. The 41 percent-owned Sadiola mine and the 40 percent-owned Yatela mines, each located in Mali, produced a combined total of 150,000 ounces of gold.

The company also produced 4.6 million kilograms of niobium during 2011, including 1.2 million kilograms during the fourth quarter. In 2010, it produced 4.4 million kilograms of the soft metal, at cash costs of $18 per kilogram. Iamgold anticipates average cash costs for 2011 to fall within its previously guided range of $15 to $17 per kilogram.

Looking forward, the Toronto-based company said it expects its 2012 total gold production to be between 840,000 and 910,000 ounces. The Essakane mine is expected to produce between 320,000 and 345,000 ounces of gold, while the Rosebel mine is expected to hit gold production between 370,000 and 395,000 ounces.

The Sadiola and Yatela mines are expected to produce a combined total between 150,000 and 170,000 ounces of gold.

Niobium production is expected in the range of 4.6 to 5.1 million kilograms for 2012.

For the full year fiscal 2013, overall gold production is expected between 1.0 and 1.1 million ounces, with
niobium production in the range of 4.6 to 5.1 million kilograms.

Letwin continued: "Building on the strength of our key assets and the addition of production from Westwood, attributable gold production in 2013 is expected to grow by approximately 20% from 2012.

"In addition, we are actively looking for acquisitions that will create a pipeline of production growth, with a focus on
targets that can provide a positive return on capital employed for our shareholders."

In Toronto, Iamgold shares shed 2.08 percent to $16.98, as of 11:08 am EDT. In 2011, the company's stock fell 8.85 percent.

]]>
Mon, 16 Jan 2012 13:24:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/82819/iamgold-nearly-doubles-2012-budget-despite-20-drop-in-q4-production-23526.html
<![CDATA[News - Iamgold strikes initial deal to expand Rosebel gold mine ]]> https://www.proactiveinvestors.co.uk/companies/news/82382/iamgold-strikes-initial-deal-to-expand-rosebel-gold-mine-22792.html Iamgold Corp. (TSE:IMG) said Wednesday it has struck an initial agreement with the Government of Suriname to expand its Rosebel gold mine.

The heads of agreement, a non-binding document outlining the main components of the deal, follows the framework agreement announced earlier this year.

Details were not disclosed in the statement, but the deal establishes the key elements for a definitive agreement to significantly expand the Rosebel operation.

"Reaching an initial agreement on the terms and conditions necessary for the expansion of Rosebel is a pivotal moment for us,” chief executive, Steve Letwin said in a press release.

"The next steps are to work expeditiously towards the conclusion of a definitive agreement and to complete a feasibility study."

The Toronto miner said it is evident that both parties are committed to hammering out an arrangement that would be beneficial to both Suriname and Iamgold.

Iamgold said it is focused toward finalizing a deal sometime in 2012.

The Rosebel gold mine, which is an open pit mine, rests in the mineral rich Brokopondo district in the north-east of Suriname, South America.

Rosebel began operations in 2004, and produced nearly 400,000 ounces of gold in 2010. It is 95 percent owned by Iamgold, and five percent by the Suriname government.

Earlier last month, the gold miner reported quarterly profits rose 34 percent to $50 million up from $37.4 million a year earlier. Excluding one-time items, adjusted earnings came in at $112.5 million.

The company also reported an 84 percent rise in sales, to $431.9 million, for the quarter, on the sale of 231,000 ounces of gold.

Iamgold has also been investing heavily in other companies. Very recently, it has acquired a 14 percent stake in Colombia Crest Gold Corp (CVE:CLB) for $3.42 million, a 10.4 percent interest in Bellhaven Copper and Gold (CVE:BHV) for $6.05 million, and most recently, a 13.2 percent interest in Tolima Gold (CVE:TOM) for $10 million.

]]>
Wed, 21 Dec 2011 14:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/82382/iamgold-strikes-initial-deal-to-expand-rosebel-gold-mine-22792.html
<![CDATA[News - Iamgold boosts dividend by 25% ]]> https://www.proactiveinvestors.co.uk/companies/news/82096/iamgold-boosts-dividend-by-25-22327.html Iamgold (TSE:IAM) (NYSE:IAG) announced Friday that its board of directors has approved a 25 percent increase to its annual dividend.

The company, which pays out the dividend on a semi-annual basis, said it increased the payment to $0.25 per share, from $0.20 per share.

This increase is the third that the company has made in the last year, during which time its dividend payout has more than quadrupled.

"Our strong cash flow allows us to invest in both growing the business and increasing dividends," said president and CEO, Steve Letwin.

"IAMGOLD has a strong balance sheet and a focused portfolio of assets that generates significant operating cash flow.

"This is our third dividend increase in the last twelve months, which reflects the confidence we have in the current and future cash flows for the company."

Early last month, the gold miner posted third quarter profits of $50.0 million, up 34 percent from $37.4 million in the same period last year. Adjusted for certain one-time items, earnings nearly tripled to $112.5 million.

The company reported an 84 percent increase in revenues, to $431.9 million, for the quarter, on the sale of 231,000 ounces of gold.

Iamgold has also been investing heavily in other companies. In the last month alone, it acquired a 14 percent interest in Colombia Crest Gold Corp for $3.42 million, a 10.4 percent interest in Bellhaven Copper and Gold for $6.05 million, and most recently, a 13.2 percent interest in Tolima Gold for $10.0 million.

Iamgold said it will pay its next dividend, in the amount of $0.125 per share, on January 5, 2012, to shareholders on record as of December 20, 2011.

In New York, shares of the Toronto-based company rose 2.55 percent to $19.33, as of 12:18 pm EDT.

]]>
Fri, 09 Dec 2011 13:04:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/82096/iamgold-boosts-dividend-by-25-22327.html
<![CDATA[News - IAMGOLD boosts stake in Merrex Gold ]]> https://www.proactiveinvestors.co.uk/companies/news/78032/iamgold-boosts-stake-in-merrex-gold-15341.html IAMGOLD (TSE:IMG) (NYSE:IAG) announced after market Thursday it has further increased its investment in Bedford, Nova Scotia-based Merrex Gold (CVE:MXI) to just over 15%.

IAMGOLD, a mid-tier gold mining company with properties in Africa, South America and Canada, said it purchased 3.5 million common shares and 1.75 million common share purchase warrants of Merrex, under a $1.75 million private placement agreement.

Each common share purchase warrant entitles the Toronto, Ontario-based company to purchase one common share of Merrex for $0.75 each, until September 2012.

IAMGOLD now owns over 16.6 million commons shares of Merrex, or 13.98%. Should the company exercise its 1.75 million share purchase warrants, it would have a 15.22% interest in Merrex Gold.

IAMGOLD said it does not intend to acquire Merrex Gold, which has zinc properties in Nova Scotia and gold projects in Mali, West Africa.

]]>
Fri, 10 Jun 2011 10:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/78032/iamgold-boosts-stake-in-merrex-gold-15341.html
<![CDATA[News - IAMGOLD reports huge niobium resource boost, potential to increase production at Niobec ]]> https://www.proactiveinvestors.co.uk/companies/news/77405/iamgold-reports-huge-niobium-resource-boost-potential-to-increase-production-at-niobec-14292.html Toronto-based gold miner IAMGOLD Corp (TSE:IMG)(NYSE:IAG) released Wednesday the results of a preliminary economic assessment (PEA) on the company's Niobec niobium mine in Quebec, revealing a whopping 691% increase in measured and indicated resources.

The mine is now projected to host 1.93 billion kilograms of measured and indicated niobium pentoxide, plus another 1.24 billion inferred kilograms of the metal, which is used to produce specialty steel for the manufacturing of cars, pipelines and structural steel products.

According to recent research, global demand for niobium has grown at a compound annual growth rate of 10% from 2000 to 2010, driven by strong economic growth in emerging markets and by the global increase in steel production, particularly from China.

The preliminary report, which looked at changing the existing underground mine to another two alternate methods, suggested that Niobec also has the potential for a threefold increase in annual niobium production from current levels, to 15 million kilograms per year.

The project, with a mine life in excess of 40 years at the expanded production rate, was estimated to have an after-tax net asset value in the range of $1.6 to $2.0 billion, with an internal rate of return between 21% to 24%.

"Niobec is a unique and highly attractive asset for IAMGOLD, as it is the only North American producer of niobium and one of only three producers globally," said president and CEO Steve Letwin.

"Early in 2011, we initiated a strategic plan to unlock the value of Niobec and our other assets for which the market was not attributing fair value.

"The results of this study demonstrate the value of Niobec and confirm our belief in its long-term potential."

Indeed, the company said that the increased niobium margins estimated in the study, at $28 per kilogram, are consistent on a percentage basis with realized margins from its gold business, "making Niobec analogous to over 20 million ounces of gold equivalent resources".

The $28 per kilogram operating margin represents a 50% increase from the current $18 per kilogram, based on higher metal prices and lower operating costs.

In addition, the company has initiated exploration and metallurgical test work to evaluate the potential of an under-explored rare earth element zone, which could no doubt unlock additional value.

Each mining scenario used in the PEA report was designed to provide sufficient ore to feed a an expanded processing circuit, capable of processing 10 million tonnes per year, versus the current 2.2 million tonnes per year.

IAMGOLD's shares rose more than 8% on Wednesday, to trade at $20.20 as of 10:02am EST.




]]>
Wed, 04 May 2011 10:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/77405/iamgold-reports-huge-niobium-resource-boost-potential-to-increase-production-at-niobec-14292.html
<![CDATA[News - IamGold to sell 19% interest in Tarkwa and Damang mines to Gold Fields ]]> https://www.proactiveinvestors.co.uk/companies/news/77173/iamgold-to-sell-19-interest-in-tarkwa-and-damang-mines-to-gold-fields-13873.html IamGold Corp (TSE:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) said Friday that it has agreed to sell its near 19% stake in the Tarkwa and Damang gold mines in Ghana to South African mining giant Gold Fields for $667 million.

"This sale is the first of several strategic initiatives to create value for our shareholders," said president and CEO Steve Letwin.
"We cannot fully leverage our skills and experience in developing and operating mines if we are not the operator and have a minority interest in the mine."

After the deal closes, IamGold will have more than $1 billion in cash, equivalents and gold bullion, as well as a $350 million undrawn credit facility, giving the company financial flexibility to grow its business.

In 2010, gold production attributable to IamGold from the Tarkwa mine was 139,000 ounces, while attributable production from the Damang mine was 43,000 ounces.

As a result of the sale, the company said it plans to announce an update of its production and cash costs forecast in its first quarter news release.

The deal, which is expected to close no later than the end of July, is subject to the approval of Gold Fields' shareholders.

]]>
Fri, 15 Apr 2011 08:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/77173/iamgold-to-sell-19-interest-in-tarkwa-and-damang-mines-to-gold-fields-13873.html
<![CDATA[News - IAMGOLD gains on higher revenue, gold prices in Q4 ]]> https://www.proactiveinvestors.co.uk/companies/news/76449/iamgold-gains-on-higher-revenue-gold-prices-in-q4-12592.html IAMGOLD Corp (TSE:IMG)(NYSE:IAG) reported Friday that it swung to a profit in the fourth quarter, benefiting from higher gold prices and strong production.

For the three months ending December 31, 2010, the company, which has operations across Africa and the Americas, posted net earnings of $144.5 million, or $0.39 per share, compared to a loss of $47.4 million, or $0.13 per share, in the prior year period.

Adjusted earnings were $0.39 per share, compared to $0.15 per share  a year earlier.

"We had an excellent fourth quarter, with a 35% increase in gold production the key driver behind record highs in net earnings and cash flow," said president and CEO Steve Letwin.

Revenues rocketed 73% during the most recent quarter to $459.0 million. The increase was due to higher gold prices and a 35% rise in gold output to 315,000 attributable ounces, as commercial production began at the company's Essakane project in Burkina Faso last July. The average realized gold price for the quarter rose to $1,379 from $1,096 in the year-ago period.

The company sold 347,000 gold ounces in Q4 2010 - a 49% increase from 233,000 ounces a year earlier.
These feats were partially offset by higher cash costs at $574 per ounce versus $488 per ounce during the fourth quarter of 2009.

Total proven and probable reserves at year-end 2010 improved by 13% year-over-year to 16.4 million ounces of gold. Iamgold, which also produces niobium, saw niobium reserves rise by 34% at year end to 243.8 million kilograms.

"With our strong performance in 2010 and a 13% increase in gold reserves, we are on track to achieving our production target of 1.1 to 1.2 million ounces of gold for the year," added Letwin.

"We continue to assess the business alternatives to unlocking the value of our niobium asset, and together with our focus on organic growth, are powerful drivers of future performance and improved shareholder returns."

For the full year 2010, the company's net earnings rose by 145% to $279.8 million, or $0.75 per share, on revenues of $1.2 billion - a 28% year-over-year increase.

At December 31, 2010, cash and equivalents stood at $411.3 million. Iamgold rose nearly 3% in pre-market trading to $20.30.

]]>
Fri, 25 Feb 2011 08:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/76449/iamgold-gains-on-higher-revenue-gold-prices-in-q4-12592.html
<![CDATA[News - IAMGOLD to acquire majority stake in Avnel's Fougadian exploration permit in southwest Mali ]]> https://www.proactiveinvestors.co.uk/companies/news/75219/iamgold-to-acquire-majority-stake-in-avnels-fougadian-exploration-permit-in-southwest-mali-10596.html IAMGOLD (NYSE: IAG) and Avnel Gold Mining (TSX:AVK) said Monday they have signed a joint venture agreement, under which IAMGOLD will have the option to acquire up to an initial 51% interest in Avnel's Fougadian exploration permit in southwest Mali.

During 2006 and 2007, Avnel conducted a soil geochemical sampling programme at the site, when several significant gold and arsenic anomalies were delineated, Avnel said.

One of the corridors on which the 14 anomalies found falls continues onto the 387 sq km Kalana Exploitation Permit, which is in the second year of an option agreement between IAMGOLD and Avnel. The Kalana Permit is held by Avnel through its 80% interest in Société d'Exploitation des Mines d'Or de Kalana.

The Fougadian Exploration Permit covers an area of 75 sq. km. to the south of the main Kalana Exploitation Permit area and abutting it.

IAMGOLD said it is focused on delineating a bulk mineable resource around the Kalana Mine. The company is currently undertaking an on-going work program at Kalana and its surroundings in the northwest of Avnel's Kalana Permit, and has also conducted an airborne geophysics study for the whole Fougadian permit in the fourth quarter last year, for which results are still ongoing.

At Fougadian, Avnel said it found that the Avnel-1 anomaly is the largest in terms of gold and arsenic values, and extends for almost 4 km in a north-south direction and for 1.5 km in an east-west direction. The anomaly is defined by an area where values generally exceed 32ppb Au and attain a maximum of 1731ppb Au.  Of the 50 holes drilled at the target, 15 or 30% intersected values above 1g/t Au.

Under the terms of the joint venture between the two companies, IAMGOLD will fully fund the expenses for the Fougadian exploration permit and, once it establishes a qualifying mineral resource of not less than 250,000 oz of gold, it may earn a 51% interest, of Avnel's 90% stake, in the permit.

Once IAMGOLD conducts a pre-feasibility study, the company can increase its holding in the property to 65%, after which it will develop a mining operation.

IAMGOLD was up 0.24% in after hours trading on the New York Stock Exchange.

]]>
Mon, 06 Dec 2010 13:18:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/75219/iamgold-to-acquire-majority-stake-in-avnels-fougadian-exploration-permit-in-southwest-mali-10596.html
<![CDATA[News - IAMGOLD Reports Lower Q3 Profit; Cuts Production Guidance For 2010 ]]> https://www.proactiveinvestors.co.uk/companies/news/74711/iamgold-reports-lower-q3-profit-cuts-production-guidance-for-2010-9842.html

For the third quarter, IAMGOLD (TSX: IMG, NYSE:IAG) reported lower earnings as it sold less gold during the quarter.  The company also downgraded its production forecast because of a problem with its grinding mill at its Essakane mine.

 The company reported third quarter profits of 40.8 million, or 11 cents per share, a decrease of $24.1 million from $64.9 million, or 18 cents per diluted share, for the same period in 2009. 

Revenues were $254.1 million in the third quarter, an 8% year-over-year increase due to an increase in gold prices.  Although gold production was up 5%, ounces sold were down 11% mainly due to the Essakane production ramp profile and mid-September start of batch processing at Mouska.

Adjusted net earnings, which consist of mainly foreign exchange adjustments, came in at $50.0 million, or 13 cents per share, compared to adjusted net earnings of $51.7 million, or 14 cents per share, for the year-ago period.

The results fell short of analyst expectations of 21 cents per share on revenue of $286 million. 

For the third quarter, gold production reached 256,000 ounces, an increase of 66,000 ounces from the third quarter of 2009. The higher production was largely attributable to the company’s  newly commissioned Essakane mine, which produced 42,000 ounces during the period, and a milling campaign at its Mouska mine, which contributed 13,000 ounces of output. 

In addition, the company’s Rosebel mine in Suriname increased output to 101,000 ounces in the third quarter from 82,000 ounces in the second, which more than offset lower production at the Yatela and Tarkwa mines.

Cash costs averaged $577 per ounce in the third quarter, an improvement over second quarter’s $635 per ounce.  The improvement was mainly due to increased production during the period. 

Subsequent to the end of the third quarter, the Essakane mine experienced electrical problems with its grinding mill, prompting the company to revise its production guidance downwards.  Compared to the previous guidance of a range between $0.98 million and $1 million ounces, the company now expects to produce between $0.94 million and $0.97 million ounces for fiscal 2010. 

As a result of the lower expected production, the company also revised its expected average cash costs from a range of between $530 and $550 per ounce to a range of between $565 and $585 per ounce.

Since the announcement, the company’s shares fell 4.6% to $18.47 as of 3:36 pm ET.  

]]>
Fri, 05 Nov 2010 20:06:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/74711/iamgold-reports-lower-q3-profit-cuts-production-guidance-for-2010-9842.html
<![CDATA[News - IAMGOLD`s Q2 gold production down, but revises 2010 guidances upward ]]> https://www.proactiveinvestors.co.uk/companies/news/73710/iamgolds-q2-gold-production-down-but-revises-2010-guidances-upward--7560.html Gold mining company IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) (BOTSWANA: IAMGOLD) has reported its second quarter results for the period ending 30 June 2010, reporting gold production of 190,000 attributable ounces at an average cash cost of $623 per ounce, a decrease of 24% versus the second quarter of 2009.

The decline was mainly the result of the closure of the Doyon mine in December 2009, including the stockpiling of ore at the Mouska mine for batch processing later in the year. In addition, planned lower grades at Rosebel, Yatela, Sadiola and Mupane also contributed to the decrease.

The Toronto-based company reported strong niobium production though of 1.1 million kilograms, an 18% increase over 2009, and an operating margin (of $19 per kilogram.
Still, revenues were $214.0 million for the period, a 5% decrease from Q2 2009 mainly due to a decrease in gold sales.

IAMGOLD nevertheless revised its initial 2010 production guidance for gold upward from a range of 940,000 to 1,000,000 ounces at a cash cost between $490 and $510 per ounce to a range of between 980,000 and 1,010,000 ounces at a cash cost between $530 and $550 per ounce. It also raised its 2010 niobium production guidance to a range of between 4.5 million and 4.7 million kilograms. These changes reflect the higher realized costs in the second quarter and management's confidence in the capability of the mines to deliver robust production at lower cash costs.

"The price of gold has remained strong throughout 2010 and has enabled us to realize healthy margins and maintain an excellent balance sheet, even with higher cash costs during the second quarter,” said interim president and CEO Peter C. Jones.

Higher unit cash costs were primarily the result of temporarily reduced grades at Rosebel due to heavy rainfall, causing a re-sequencing of ore mining in the quarter, a higher waste stripping ratio and lower grades at the Sadiola and Yatela operations, as well as higher royalty costs due to a higher realized gold price, according to Jones.

The second quarter also marked a significant transition for the company, as it began processing material at its new Essakane mine in Burkina Faso, six months ahead of the original target of year-end 2010.

At its Westwood project in Quebec, shaft sinking remains on plan to achieve a depth of 1,220 metres by year end. The exploration and ore delineation drilling programs continue to validate prior resource models. Commercial production at Westwood is expected to commence in early 2013.

In addition to these two projects, the Sadiola sulphide project feasibility study is underway and a construction decision is expected by the fourth quarter of 2010.

IAMGOLD continues its exploration efforts, evidenced by the fact that it has increased its exploration budget for the year by $9.1 million. The company will focus its explorations on West Africa, select countries of South America, and the provinces of Quebec and Ontario, Canada. It has planned more than 300 kilometres of drilling on about 20 project and development sites - the most the mining company has ever drilled.

At 30 June 2010, the company had $577.9 million in available funds and cash, cash equivalents and gold bullion (at market) were $227.9 million.  IAMGOLD also made operating cash flow of $51.4 million, an increase of 32% compared to Q2 2009.


The market did not seem fazed by its results, as IAMGOLD`s share price went down almost 3% to $17.37. IAMGOLD is a mid-tier gold mining company producing approximately one million ounces annually from seven gold mines on three continents.


]]>
Wed, 11 Aug 2010 20:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/73710/iamgolds-q2-gold-production-down-but-revises-2010-guidances-upward--7560.html
<![CDATA[News - IAMGOLD could hit the magic 1 million ounce mark in 2010 ]]> https://www.proactiveinvestors.co.uk/companies/news/71973/iamgold-could-hit-the-magic-1-million-ounce-mark-in-2010-3811.html IAMGOLD (TSX: IMG; NYSE: IAG) reported gold production of 939,000 ounces and Niobium production of 4.1 million kilograms for the 12 month period ended 31 December 2009 (FY 2009).  The unaudited numbers were 7% higher than original guidance given by the mid-tier gold producer.  Higher production was driven by the company’s flagship mine, Rosebel, which produces in just over 400,000 ounces of gold. 


"IAMGOLD enters 2010 confident it will continue to grow and deliver the same type of impressive results as seen in 2009," said Peter C. Jones, IAMGOLD's Interim President and CEO. "The Company consistently delivered results with expected total gold production of 939,000 ounces, at the same time as crystallizing our growth pipeline.”


The company reiterated its most recent guidance for FY 2009 average cash cost per ounce of $460 to $470. 

IAMGOLD also reported a one off non-cash impairment charge of $85 to $100 million on its Camp Caiman project in French Guiana. IAMGOLD issued a preliminary request for indemnification to the Prefect of French Guiana in the amount of €275 million (in September 2009) after the company received no assurance from the French authorities that a final mining framework would permit development of Camp Caiman.


Looking ahead through 2010, IAMGOLD expect production to be between 940,000 ounces and 1 million ounces of gold, driven by the Essakane Project which is expected to move into commercial production in August 2010. Essakane is expected to produce 315,000 per annum at full capacity.


IAMGOLD also expects cash costs to rise to between $490 and $515 per ounce and has earmarked $373 million for capital expenditure and $60 million for exploration. IAMGOLD’s forecasts are based on $1000/ounce gold, $75/barrel oil and a exchange rate of C$1.10/U.S$1.00

]]>
Thu, 21 Jan 2010 14:11:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/71973/iamgold-could-hit-the-magic-1-million-ounce-mark-in-2010-3811.html
<![CDATA[News - IAMGOLD says Westwood study supports annual gold production of up to 200,000 ounces ]]> https://www.proactiveinvestors.co.uk/companies/news/71749/iamgold-says-westwood-study-supports-annual-gold-production-of-up-to-200000-ounces-3340.html IAMGOLD Corporation (TSX: IMG, NYSE: IAG) has announced the results from an updated preliminary assessment study on its wholly owned Westwood development project in Quebec, confirming its capability to produce 180,000 to 200,000 oz of gold per year under industry average cash costs in what the company called one of the lowest political risk jurisdictions in the world.


The study estimated the capital costs at US$315 million to complete the development and put the annual gold production at 191,000 oz at an average grade of 7.3 g/t (grammes per tonne) during the first five years of production at an average cash cost of US$352/oz and total capex (capital expenditures) at US$230 million. The pre-tax internal rate of return (IRR) was calculated at 11.3% using a gold price of US$850/oz and a Canadian/US dollar exchange rate of 1.15.


Capital expenditures are expected to amount to US$86 million and US$102 million in 2009 and 2010 respectively, while exploration and development drilling will total 84,000 metres.


Main activities planned for 2010 include development work including 11,000 metres of lateral and vertical excavation, an additional 2,000 tonnes bulk sample to test mining methods, installation of production and service hoists and completion of surface facilities, exploration drilling at 30,000 metres and valuation and definition drilling at 41,000 metres.


The inferred mineral resource at Westwood stand at 9.4 Mt (million tonnes) grading at 11.4 g/t for 3.43 Moz (million ounces), while the indicated resource amounts to 313,000 tonnes at 6.9 g/t for 70,000 oz, making for a net recoverable gold resource of 2.97 Moz over a 16 year mine life.


IAMGOLD said it was on schedule and on budget for commercial production in early 2013.

]]>
Mon, 21 Dec 2009 14:35:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/71749/iamgold-says-westwood-study-supports-annual-gold-production-of-up-to-200000-ounces-3340.html
<![CDATA[News - IAMGOLD gains traction in Ecuador, reports record earnings ]]> https://www.proactiveinvestors.co.uk/companies/news/71444/iamgold-gains-traction-in-ecuador-reports-record-earnings-2921.html By Dorothy Kosich, Mineweb.com

As IAMGOLD CEO Joseph Conway delivered a conference call presentation Wednesday including his company's record earnings, Ecuador's President Rafael Correa signed the mining law reform that could help IAMGOLD and other companies set the stage for gold, copper and silver production.

IAMGOLD says it is ready to resume activity at the Quimsacocha gold, silver and copper project. Once an authorization is received from the Ecuadorian government, a feasibility study and an environmental assessment are expected within 12 months.

Over a 7.5-year mine life, Quimsacocha is expected to produce 202,000 ounces of gold, one million ounces of silver and 9.3 million pounds of copper annually. IAMGOLD hopes to begin first production in 2012, the same time Correa said Ecuador will begin mineral exports.

IAMGOLD, Kinross Gold, and Corriente Resources have Ecuador's three largest mining projects.  The new Mining Law signed Wednesday stresses responsible mining and provides for taxation including a royalty rate of not less than 5% on gold production.

Meanwhile, Conway told analysts IAMGOLD achieved record net earnings of $64.9 million or 18-cents per share during the third quarter. Another record was achieved by the Rosebel mine in Suriname which recorded record production for the quarter of 106,000 gold ounces, a 29% increase over 2008.

Because of the Rosebel production and the extended life of the Doyon gold mine in Quebec, the company increased its gold production guidance to between 940,000 and 950,000 ounces for this year compared to the second-quarter update of between 910,000 and 920,000 ounces.  Despite the Rosebel record production, IAMGOLD's production during the third quarter actually dropped by 9,000 ounces or 4% to 244,000 ounces. For the first nine months of this year, overall gold output dropped from 742,000 ounces in 2008 to 705,000 thousand ounces. Lower gold production was reported at Mupane and Sadiola due to lower gold grades.

Regarding the Sadiola project, IAMGOLD also has the approval of the Societe D'Explotation Des Mines D'Or De Sadiola to proceed with a $9 million deep sulphide feasibility study of the project. If the results are positive, construction would begin in 2011. IAMGOLD has also reached a tentative agreement with the IFC to purchase its 6% interest in the project for $16 million. AngloGold Ashanti and the Republic of Mali may also elect to buy their proportionate share of the IRC interest. The IFC's 6% share represents 1,000 ounces of gold.

Meanwhile, niobium production declined 15% to 982,000 kilograms during the third quarter of this year as a result of mechanical problems in the converter at the Niobec Niobium Mine in Quebec this year to 982,000 kilograms as a result of mechanical problems in the converter leading to lower conversion of niobium oxide concentrate to ferroniobium at the Niobec Niobium Mine in Quebec.  For the first nine months of this year production decline 14% to 2.87 million kilograms.

Niobium is used as an alloying agent, predominantly in the steel production industry.

FINANCIALS

IAMGOLD reported net earnings of $64.9 million or 18-cents per share during the third quarter, a 245% increase over the $18.8 million and 6-cents/sh reported during the same quarter a year ago.

For the first nine months of this year, IAMGOLD reported a net income of $170.8 million or 46-cents per share, an 87% increase over the $86.5 million or 29-cents/sh reported during the first nine months of 2008. Income during the third-quarter 2009 included higher forex gains primarily from Canadian dollars, higher derivative gain and other items.

]]>
Thu, 05 Nov 2009 09:50:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/71444/iamgold-gains-traction-in-ecuador-reports-record-earnings-2921.html
<![CDATA[News - IAMGOLD & Avnel in option deal for Kalana gold mine in Mali ]]> https://www.proactiveinvestors.co.uk/companies/news/70802/iamgold-avnel-in-option-deal-for-kalana-gold-mine-in-mali-2145.html IAMGOLD Corp (TSX: IMG; NYSE: IAG) announced an option deal with Avnel Gold Mining Ltd (TSX: AVK) which will allow it to acquire an initial 51 percent interest in Avnel’s 80 percent holding of the company controlling the Kalana gold mine in Mali, West Africa.

The project is located in southwest Mali and consists of the Kalana mine, an operating underground gold mine, and an exploration property covering 387.4 square kilometres with a 30 year mining exploitation permit. The title is held by Societe d'Exploitation de Mines d'Or de Kalana, which is 80 percent controlled by Avnel and the remainder by the Malian government.

The deal allows IAMGOLD to earn an initial 51 percent in Avnel's share of the project by spending US$11 million on exploration activities at the site over a three-year period and by delivering a NI 43-101 resource calculation of at least 2 million ounces of gold as well as proceeding with a feasibility study.

IAMGOLD has the option to increase its interest to 65 or 70 percent upon delivering a feasibility study that supports the development of a gold mine at the exploration site.

In connection with entering into the option agreement, IAMGOLD will pay Avnel US$1 million in cash and Avnel will issue IAMGOLD warrants to acquire up to 2 million common shares of Avnel at an exercise price of C$0.45 per share.

There has been a long history of gold exploration and mining on the Kalana project that focused on rich, narrow, shallow-dipping quartz veins that occur within a broader mineralized system. This broader system, and other satellite zones on the property, have not been evaluated in systematic detail and will be the focus of IAMGOLD's exploration program, the company said.

IAMGOLD is planning to carry out an initial US$2.5 million drill program in the first year of the agreement that includes at least 6,500 metres of drilling. This initial program will be designed to test the extent and nature of gold mineralization in the halo of high grade veins that are currently being exploited at the Kalana gold mine, as well as other mineralized structures in the mine area.

]]>
Tue, 11 Aug 2009 15:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/70802/iamgold-avnel-in-option-deal-for-kalana-gold-mine-in-mali-2145.html
<![CDATA[News - IAMGOLD announces increased production guidance for 2009 ]]> https://www.proactiveinvestors.co.uk/companies/news/70493/iamgold-announces-increased-production-guidance-for-2009-1701.html IAMGOLD Corp (TSX: IMG; NYSE: IAG)  has increased its production forecast for 2009 by 30,000 to 40,000 ounces above the previous estimate to approximately 910,000 to 920,000 ounces of gold,  primarily reflecting productivity increases at Rosebel in Suriname and the extended life of the Doyon mine in Canada, partly offset by lower grades at Mupane in Botswana.

It estimates an average cash cost of US$460-US$470 per ounce for 2009, a decrease of US$10, mainly due to improvements at Rosebel.

"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.

IAMGOLD expects full year niobium production from the Niobec mine in Quebec of 4,200 to 4,400 tonnes. The slight decrease from previous production guidance primarily reflects slightly lower grades and recoveries due to higher silica content in the ore.

Capital expenditures are expected to be US$448 million for 2009.

Greenfields exploration expenditures remain forecast at US$34 million.

]]>
Thu, 18 Jun 2009 13:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/70493/iamgold-announces-increased-production-guidance-for-2009-1701.html
<![CDATA[News - IAMGOLD increases probable gold reserve at Essakane project by 8 pct, construction ahead of schedule ]]> https://www.proactiveinvestors.co.uk/companies/news/70476/iamgold-increases-probable-gold-reserve-at-essakane-project-by-8-pct-construction-ahead-of-schedule--1674.html IAMGOLD Corp (TSX: IMG; NYSE: IAG) has increased probable reserves at its 90 percent owned Essakane gold project in Burkina Faso, West Africa, by 8 percent and said construction progress is ahead of schedule and on budget with initial production now expected in August 2010.

Added delineation drilling and improved mine design has led to the increase in probable reserves to 3.37 million ounces and to an additional 201,000 ounces of in-pit indicated resources from the nearby Falagountou deposit.

Construction progress at Essakane is ahead of schedule and on budget with initial production now expected in August 2010, to contribute up to an estimated 375,000(2) ounces of gold in its first 12 months with lower than life-of-mine production costs.

The company is working on a new mining schedule and operating cost estimate based on the new block model and pit design. Project expenditures to date are US$177 million with outstanding commitments of US$59 million. IAMGOLD expects total capital expenditures of approximately US$219 million in 2009 and US$131 million in 2010, with a total capital cost for the project of US$422 million.

Work has started on a US$2.3 million exploration program at Essakane that marks the beginning of a multi-year initiative. This program is independent of the mine construction and capital investment, and considered part of the company's near-mine exploration programs, the company said.

Regional exploration work will commence on the 1,248 square kilometre concession block in the fourth quarter of 2009 starting with 10,000 metres of aircore drilling on the projected extensions of known mineralized trends, and expanded regional survey coverage.

]]>
Mon, 15 Jun 2009 14:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/70476/iamgold-increases-probable-gold-reserve-at-essakane-project-by-8-pct-construction-ahead-of-schedule--1674.html
<![CDATA[News - IAMGOLD launches share offer to raise at least CDN$300 mln for Essakane, other projects ]]> https://www.proactiveinvestors.co.uk/companies/news/70005/iamgold-launches-share-offer-to-raise-at-least-cdn300-mln-for-essakane-other-projects--1071.html
If the over-allotment option the company has granted to the underwriters is fully exercised, the issue could raise CDN $345.14 million.

The funding will replace substantially all of the previously proposed Essakane project debt facility and related gold hedging requirements, the company said in a statement.]]>
Tue, 10 Mar 2009 12:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/70005/iamgold-launches-share-offer-to-raise-at-least-cdn300-mln-for-essakane-other-projects--1071.html
<![CDATA[News - IAMGOLD ups proven and probable gold reserves to 9.6 million ounces ]]> https://www.proactiveinvestors.co.uk/companies/news/69944/-iamgold-ups-proven-and-probable-gold-reserves-to-96-million-ounces-0999.html
"We are very pleased to announce that 2008 was an excellent year for IAMGOLD in terms of reserve renewal at all of our continuing operations,” said Joseph Conway, President & CEO of IAMGOLD. "For 2009, we have planned aggressive drill programs for Rosebel, Westwood, Niobec and Sadiola which we expect will continue to build our reserve profile. The completion of our transaction with Orezone, scheduled for February 25th, increases our reserves by more than 30% related to the Essakane project in Burkina Faso, bringing our reserves to 12.7 million ounces. All of these positive developments will continue to deliver value for our shareholders."


Total measured and indicated gold resources, including reserves, edged slightly higher, to 22.8 million ounces.

IAMGOLD’s target is to reach 1.8 million ounces of annual gold production by 2012.

]]>
Mon, 23 Feb 2009 00:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/69944/-iamgold-ups-proven-and-probable-gold-reserves-to-96-million-ounces-0999.html
<![CDATA[News - IAMGOLD’s commitment to West Africa may mean more acquisitions ]]> https://www.proactiveinvestors.co.uk/companies/news/69829/iamgolds-commitment-to-west-africa-may-mean-more-acquisitions-0865.html
IAMGOLD stated that the appointment was part of a wider initiative to push forward its growth strategy in West Africa, where the company already generates around half of its total gold production from five mines located in Botswana, Mali and Ghana.

"We are pleased to have an experienced mining executive join us to further establish our presence in West Africa. Brian further expands our executive team and has the mining expertise and experience to deliver on our aggressive growth objectives in Africa," commented Joseph Conway, IAMGOLD's President & CEO.

IAMGOLD will soon complete the acquisition of Orezone Resources, which will add the 4 million ounce Essakane Gold Project in Burkina Faso to its portfolio. IAMGOLD will have a 90% interest in the project, with the remaining 10% held by the Burkina Faso Government.  Essakane is anticipated to produce 300,000 ounces of gold per annum for nine years when it moves into production towards the end of 2010.  

IAMGOLD has set a target of 1.8 million ounces of gold production by 2012, which would firmly place it among the top tier of global gold producers. The company is no stranger to acquisitions and aggressive growth targets, and the reiteration of its commitment to West Africa could mean other acquisitions will be in the pipeline.

Potential targets may include Keegan Resources (TSX: KGN) which continuing to drill at the 1.7 million ounce Esaase Gold Property in Ghana, or possibly Cluff Gold (LSE: CLF) which has already defined an inferred resource of 1.4 million ounces at the Baomahun Gold Project in Sierra Leone.




]]>
Thu, 08 Jan 2009 00:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/69829/iamgolds-commitment-to-west-africa-may-mean-more-acquisitions-0865.html
<![CDATA[News - IAMGOLD completes sale of Sleeping Giant mine to Cadiscor ]]> https://www.proactiveinvestors.co.uk/companies/news/69731/iamgold-completes-sale-of-sleeping-giant-mine-to-cadiscor-0760.html IAMGOLD Corp said it completed the previously announced sale of the Sleeping Giant mine, related milling facilities, and the Flordin property claims to Cadiscor Resources Inc as of October 31 2008. As a result of the sale, IAMGOLD holds 5,185,715 common shares of Cadiscor, representing approximately 12.0 percent of the issued share capital.

It also holds 1 million common share purchase warrants exercisable at US$0.47 per common share, expiring December 31, 2010 and US$3.5 million worth of convertible loan notes.
If IAMGOLD were to exercise all warrants and fully convert the debenture, IAMGOLD would control an aggregate of 13,632,524 common shares of Cadiscor, representing approximately 26.3 percent of the enlarged capital.

The Sleeping Giant mine commenced production in 1993 and produced over 960,000 ounces of gold and 1.3 million ounces of silver from 2.63 million tonnes grading 11.44 g/t Au.

]]>
Mon, 15 Dec 2008 00:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/69731/iamgold-completes-sale-of-sleeping-giant-mine-to-cadiscor-0760.html
<![CDATA[News - IAMGOLD to buy Orezone and spin off all assets except Burkina Faso’s Essakane into new exploration company ]]> https://www.proactiveinvestors.co.uk/companies/news/69705/iamgold-to-buy-orezone-and-spin-off-all-assets-except-burkina-fasos-essakane-into-new-exploration-company-0733.html IAMGOLD Corp is acquiring Orezone Resources Inc in a recommended all-share deal valuing Orezone at US$139 million which will see Orezone’s Essakane gold project in Burkina Faso become an IAMGOLD asset and Orezone’s other assets spun off into a separate entity, the companies said in a joint statement.


Orezone’s exploration assets, including Bombore, will be spun out into a new exploration company, called  ‘New Orezone’, together with CDN$10 million in cash. Each Orezone shareholder will receive 0.08 of an IAMGOLD share and a pro rata share of New Orezone for each Orezone share held.  
IAMGOLD will, on completion of the transaction, hold a 16.6 percent interest in New Orezone following the distribution of New Orezone shares to Orezone shareholders.


IAMGOLD will acquire and finance development of the Essakane project, one of West Africa's largest undeveloped gold reserves. It is currently in advanced discussions with project lenders to provide US$160 to $220 million for the Essakane project financing.


IAMGOLD will provide Orezone an immediate CDN$20 million equity financing at CDN$0.28 per share, subject to regulatory approvals, via the purchase of 71.4 million common shares of Orezone on a private placement basis.


The transaction is very accretive to IAMGOLD shareholders on a net asset value and reserves per share basis, as well as an earnings and cash flow per share basis when Essakane is in production, the statement said.


The deal represents a value of approximately CDN$0.49 per Orezone share based on the closing price of IAMGOLD on the TSX on December 10 2008, representing a 91 percent premium using 30-day volume weighted average share prices.


In aggregate, holders of a total of 5.1 percent of Orezone common shares have agreed to vote in favour of the transaction, including the board of directors and 3.5 percent shareholder Minquest Capital.
There are currently 295.6 million IAMGOLD common shares outstanding and 357.8 million Orezone common shares outstanding. Upon completion of the transaction, Orezone shareholders will own approximately 9 percent or 28.6 million shares of the resulting 324.3 million IAMGOLD shares outstanding.


Orezone will call a special meeting of shareholders to be held in February 2009 to approve the transaction.  The agreement includes a non-solicit clause and provides for the payment of a CDN$4 million break fee.


IAMGOLD chairman and CEO Joseph Conway said: "This transaction represents excellent value and takes us a large step towards our stated goal of 1.8 million ounces annual gold production by 2012, while lowering our average cash cost by $40 to $50 per ounce. IAMGOLD is uniquely positioned in the current markets with a solid cash position, low debt, record cash flow and the financial capacity to finance the construction of Essakane, a second flagship gold mine for IAMGOLD."


Construction at Essakane commenced in September of this year for a mine that will contribute average gold production of over 300,000 ounces per year over a minimum nine-year mine life at an average cash operating cost of US$358 per ounce, using a US$600 per ounce gold price and US$85 ber barrel oil price. Full production is anticipated in late 2010, requiring a remaining capital expenditure of approximately US$350 million.


IAMGOLD also announced today that it will establish a corporate office based in Dakar, Senegal.

"IAMGOLD's long history and depth of knowledge in West Africa gives us a unique competitive advantage. We are on track for production of almost 400,000 ounces of gold from West Africa this year alone. With the acquisition of Essakane and the establishment of a West African operations office, we will solidify our position as the major player in this very favourable mining region," said Conway.

]]>
Thu, 11 Dec 2008 00:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/69705/iamgold-to-buy-orezone-and-spin-off-all-assets-except-burkina-fasos-essakane-into-new-exploration-company-0733.html