Toronto, Canada — MININGREVIEW.COM — 11 August 2008 – IAMGOLD Corporation – a mid-tier gold producer with annual production of close to 1 million oz from eight operations in North America, South America and Africa – has posted a huge rise in net earnings and operating cash flow in the second quarter of 2008, and has increased its gold production outlook.
A press release issued here revealed that net earnings had increased by 169% to US $33.3 million (R250 million) or US$0.11 per share in the second quarter of 2008, compared to adjusted net earnings of US$12.4 million (R93 million) or $0.04 per share for the same period in 2007.
The company also reported a 219% increase in operating cash flow to US$44.9 million (R337 million) in the June quarter of 2008, compared to US$14.1 million (R106 million) in the second quarter of 2007.
Turning to production, the press release said output in the second quarter of 2008 had been 255 000 oz at an average cash cost of US$472/oz. The company added that it had increased its original production outlook by 30 000 oz and was expected to produce 950 000 attributable ounces in 2008, representing a rise of 3% above the original guidance. The increase was due mainly to production gains at the mines which the company operated, and was based on a revised cash cost of US$485-$495/oz.
Exploration and development expenditures were US$17.4 million (R130 million) during the second quarter of 2008. The cash and gold bullion position of US$295.7 million (R2.2 billion) continued to be strong.
IAMGOLD president and CEO Joseph Conway commented: “We continue to deliver growth in revenues, net earnings and cash flow, as reported during the current quarter. Our cash costs and increased production guidance demonstrate our focus on cost improvement and production initiatives.”