Iamgold swings to Q3 loss of US$72.5M; revenue rises to US$341.5

TORONTO – Iamgold Corp. (TXS:IMG) swung to a net loss in the third quarter as lower gold prices offset higher sales and lower production costs.

The Toronto-based miner, which reports in U.S. currency, said after markets closed Wednesday that its net loss attributable to shareholders in the three months ended Sept. 30 was US$72.5 million or 19 cents per share, compared with net income of US$25.3 million or seven cents a share in the same year-earlier period.

Revenue rose to US$341.5 million from $293.5 million as gold sales rose to 233,000 ounces from 195,000 in the prior-year period, but the average realized price per ounce fell to US$1,277 from US$1.334.

Total all-in sustaining costs fell year over year to US$1,017 per ounce from US$1,125, including US$1,115 per ounce for gold, down from US$1,207.

President and CEO Steve Letwin said the company is encouraged by “positive trends in production, costs and cash generation.”

“Cost reduction and disciplined capital spending remain a constant focus and are reflected in costs per ounce trending downwards for the third consecutive quarter. At $1,115 an ounce, all-in sustaining costs are down $69 an ounce from the first quarter of this year, moving us closer to our near-term goal of $1,100 an ounce.”

Meanwhile, Letwin said the company was on track to meet overall guidance as set out at the beginning of the year while narrowing production guidance to reflect performance expectations for the final quarter.

Meanwhile, he said the closing of the transaction to sell the company’s Niobec mine for US$530 million, a deal announced Oct. 3, will put Iamgold in a stronger position to continue investing in the profitable growth of its gold business.

“We expect a strong finish for 2014 and are targeting positive free cash flow at our owner-operated mines in 2015,” he said.