IAMGOLD reports operating and financial results for the third quarter 2012
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TSX: IMG NYSE: IAG
TORONTO, Nov. 13, 2012 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") today reported its unaudited consolidated financial and operating results for the third quarter ended September 30, 2012. Revenues were $386.8 million compared to $431.9 million in the third quarter 2011. Net earnings from continuing operations (attributable to equity holders) increased by 56% to $78.0 million ($0.21 per share) from $50.0 million ($0.13 per share) in the third quarter 2011. Excluding items not indicative of underlying operating performance, adjusted net earnings1 (attributable to equity holders) were $60.2 million ($0.16 per share) compared to $112.4 million ($0.30 per share) in the third quarter 2011. This was due mainly to lower gold sales, including 12,000 ounces produced late in the quarter and sold in October, and higher exploration expenses. Operating cash flow1 before changes in working capital was $114.3 million ($0.30 per share) compared to $174.1 million ($0.46 per share) for the third quarter 2011.
President and CEO Steve Letwin commented, "We are performing well at the mines we own and operate. Year-to-date production and cash costs at these operations, which account for 85% 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.
"In many ways," continued Mr. Letwin, "we're ahead of the curve. We have a much more geo-politically balanced asset profile than we did a year ago and a solid pipeline of exploration and development projects. We are prudent about managing our capital spending, and with some of our expansion projects getting off to a later start this year, we've reduced our capital expenditure guidance for 2012. We have the capital available to fund a robust portfolio of projects with attractive rates of return. With gold production commencing at our Westwood project in the first quarter of next year, a pre-feasibility study at Côté Gold underway and expansion projects in West Africa, South America and Canada, we expect to nearly double production within five years."
THIRD QUARTER 2012 HIGHLIGHTS
Financial Performance and Position
Revenues were $386.8 million, down 10%, or $45.1 million from the same prior year period, mainly the result of lower gold sales volume.
Net earnings from continuing operations attributable to equity holders increased 56% to $78.0 million ($0.21 per share) from $50.0 million ($0.13 per share) in the same period in 2011.
Adjusting for items not indicative of underlying operating performance, adjusted net earnings were $60.2 million ($0.16 per share) compared to $112.4 million ($0.30 per share) in the same prior year period.
Operating cash flow was $97.6 million ($0.26 per share), compared to $174.5 million ($0.46 per share) in the same prior year period. Adjusting for the changes in non-cash working capital items, such as receivables, inventories and long-term stockpiles, operating cash flow before changes in working capital was $114.3 million ($0.30 per share).
The Company's cash, cash equivalents and gold bullion (at market value) position was $1,136.1 million at September 30, 2012, compared to $614.9 million at June 30, 2012.
On September 21, 2012, the Company completed the issuance of $650 million of senior unsecured notes bearing interest at 6.75% due 2020. The Company intends to use the proceeds for general corporate purposes, including the funding of capital expenditures and exploration.