TORONTO - Iamgold Corp.'s (TSX:IMG) said Tuesday its earnings tripled during the first quarter on strong gold prices and higher sales, as it worked to move two of its delayed projects into production.
The Toronto-based miner, reporting in U.S. dollars, said Tuesday first-quarter earnings were US$34.4 million, 12 cents per share, from US$11.3 million or four cents a share a year ago.
The results were boosted by strong gold prices and a 42-per-cent rise in sales to $208 million from $146.4 million a year ago. But they missed analyst estimates of-- cents per share, according to Thomson Financial.
CEO Joe Conway, who is working to replace depleted reserves and boost output and benefit from record gold prices, said the company was determined to meet its production and cost guidance this year despite an increase in mining costs.
Iamgold maintained its full-year production guidance of 920,000 ounces of gold at cash costs of $455 to $470 per ounce.
The company is spending $500 million in a bid to double production within five years, but is facing opposition to its Camp Caiman mine planned for French Guiana, as well as delays in Ecuador, where the government has suspended mining activity for six months to pass new mining laws.
Conway acknowledged the delay at the Quimsacocha gold deposit in Ecuador was a setback, but expressed optimism about resolving any issues since Iamgold has "significant experience" in developing countries.
"Our team along with other industry participants has been meeting almost weekly with the President's advisory committee and I would say that it has been a very co-operative and collaborative effort to date," Conway said during a conference call Tuesday.
He also said the company was waiting for a response from French president Nicolas Sarkozy, who in January refused to grant final permits for construction at the Camp Caiman mine in France's largest overseas territory.
Iamgold has presented Sarkozy with an alternative plan for the mine, which involves "essentially moving the processing facility and reducing the footprint of the entire mine to just the mining activity, and then creating a buffer zone around the area that was concerning some people," Conway said.
He said Sarkozy "very clearly said: 'I'll consider it' and he appreciated the effort that we put into it in terms of looking at another alternative."
Still, Conway said, Iamgold continues seeking alternatives, "be it development or legal."
Iamgold has eight gold mines in North America, South America and Africa, along with two mines producing specialty metals.
During the quarter, the flagship Rosebel mine in Suriname produced 72,000 ounces of gold during the quarter, compared to 46,000 ounces in the prior year period, while the Mupane mine in Botswana produced 20,000 ounces of gold, an increase of' per cent.
Overall mining costs increased by $12.5 million during the quarter compared to the prior year period, and were higher than the 2008 cash costs guidance of $455 to $470 per ounce.
Average realized gold price rose to $899 per ounce compared with $648 per ounce in the first quarter of 2007. Iamgold sold 229,000 ounces of gold during the quarter, up from 227,000 ounces in the same period last year.
Gold production rose to 234,000 ounces at an average cash cost of $476 per ounce compared to 219,000 ounces at an average cash cost of $416 per ounce in the quarter last year.
On the TSX Tuesday, Iamgold shares rose 15 cents or 2.5 per cent to trade at $6.20.
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