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.