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Iamgold posts stronger Q4 earnings on improved sales, lower costs

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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.

Quick facts: IAMGOLD Corp

Price: 4.69 CAD

TSX:IMG
Market: TSX
Market Cap: $2.19 billion
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