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IAMGOLD Corp. Message Board

  • bluecheese4u bluecheese4u Feb 20, 2013 8:27 PM Flag

    IAMGOLD reports 2012 operating and financial results

    IAMGOLD reports 2012 operating and financial results

    Download this News Release (PDF 1.03 MB)

    TSX: IMG NYSE: IAG

    All amounts are expressed in U.S. dollars, unless otherwise indicated.
    Refer to the annual Management Discussion and Analysis (MD&A) and audited consolidated Financial Statements for more information.

    TORONTO, Feb. 20, 2013 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") today reported consolidated financial and operating results for the year and fourth quarter ending December 31, 2012. Revenues of $1.7 billion for 2012 were virtually flat with the prior year, as margins rose slightly to $952 an ounce. Net earnings from continuing operations attributable to equity holders were $334.7 million ($0.89 per share) in 2012 compared to $391.3 million ($1.04 per share) in 2011. Excluding items not indicative of underlying operating performance, adjusted net earnings attributable to equity holders1 were $316.9 million ($0.84 per share) compared to $405.7 million ($1.08 per share) in 2011. The year-over-year earnings decline is the result of lower gold production and higher operating costs and increased exploration expenses, partly offset by higher gold prices. Operating cash flow before changes in working capital1 was $504.0 million ($1.34 per share) compared to $656.7 million ($1.75 per share) in the previous year.

    For the fourth quarter 2012, adjusted net earnings1, excluding items not indicative of underlying operating performance, were $90.3 million ($0.24 per share), down 16% from the fourth quarter 2011. Operating cash flow before changes in working capital1 was $130.1 million ($0.35 per share) compared to $190.1 million ($0.51 per share) in the same prior year period.

    "Operating performance was solid, but it needs to be better." said President and CEO, Steve Letwin . "Despite the lower grades at our core gold assets and the disappointing performance at our joint venture operations, we achieved a level of production that wasn't too far off the mark. Cash costs were in line with our latest guidance for 2012, but the outlook for 2013 reflects the challenges of mining and processing an increasing proportion of hard rock, particularly on the power side. We have a lot of work to do. Our recent share price is not acceptable, and we are determined to improve performance.

    "We have to be more innovative in our assault on costs. This requires day-to-day cost containment along with big steps, such as our landmark deal with the Government of Suriname to partner with them to target satellite resources beyond the current concession at a significantly reduced power rate. Beyond 2013, which I'd characterize as a transitional year, we should see an operational reset - including the ramp-up at Westwood, the winding down of Mouska and Yatela, and the throughput expansion for hard rock processing at Essakane which should improve economies of scale.

    "Reducing the unit costs associated with mining an increasing proportion of hard rock requires an investment in capacity expansion," continued Mr. Letwin, "but we will not commit capital to projects, such as the throughput expansion at Rosebel, unless we're confident they can meet our targeted returns on investment. While we've moved the vast majority of the resource from inferred to indicated in only six months at Côté Gold, we won't need development capital there for another two years. Our financial position remains strong with $1 billion in cash and bullion and nearly $2 billion in liquidity."


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    FOURTH QUARTER 2012 HIGHLIGHTS

    --------------------------------------------------------------------------------

    Financial Performance

    --------------------------------------------------------------------------------

    Revenues in the fourth quarter 2012 were $468.4 million, down 3% from the fourth quarter 2011. The decline was mainly due to a lower volume of gold sales.
    Cost of sales for the fourth quarter 2012 was $259.9 million, up 2% from the same prior year period due to the increasing cost of consumables and the impact of maturing ore deposits, partially offset by lower costs arising from lower production volumes.
    Net earnings attributable to equity holders were $84.6 million ($0.22 per share), down 37% from $133.6 million ($0.36 per share) in the same period 2011. Lower net earnings were mainly due to lower revenues, higher cost of sales, higher exploration costs and lower gains on sales of assets.
    Adjusting for items not indicative of underlying operating performance, adjusted net earnings1 were $90.3 million ($0.24 per share) compared to $107.8 million ($0.29 per share) in the same prior year period.
    Operating cash flow for the fourth quarter 2012 was $118.9 million ($0.32 per share), down from $205.5 million ($0.55 per share) in the same prior year period mainly due to lower revenues, higher exploration expenses, higher taxes paid and changes in non-cash working capital.
    Operating cash flow1 before changes in non-cash working capital items and long-term ore stockpiles, was $130.1 million ($0.35 per share) in the fourth quarter 2012 compared to $190.1 million ($0.51 per share) in the same quarter 2011.

    Production, Cash Costs and Margins

    --------------------------------------------------------------------------------

    Gold Operations

    Attributable gold production was 214,000 ounces in the fourth quarter 2012 compared to 253,000 ounces in the same period 2011. The decline was mainly due to lower grades at Essakane and the stockpiling of ore at Mouska for processing in 2013.
    Cash costs2 for the fourth quarter 2012 were $731 an ounce, compared to $643 an ounce in the same prior year period. Cash costs for IAMGOLD operated mines were $665 an ounce in the fourth quarter 2012 compared to $562 an ounce in the same quarter 2011.
    The gold margin2 in the fourth quarter 2012 was $973 per ounce, down marginally from the same period in 2011 as higher cash costs were partially offset by higher gold prices.

    Niobium Operations
    Niobium production in the fourth quarter 2012 of 1.2 million kilograms was flat with the fourth quarter 2011.
    The operating margin2 in the fourth quarter 2012 was $15 per kilogram, down from $16 per kilogram in the same period 2011 due to the impact of increasing costs and the strength of the Canadian dollar.

    iamgoldDOTcom/English/News/News-Releases/News-Release-Details/2013/IAMGOLD-reports-2012-operating-and-financial-results/defaultDOTaspx

    Slides
    iamgoldDOTcom/files/presentations/Q4%202012%20Presentation%2002%2021%202013_v001_k9a64j.pdf

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    • This is good stuff. Cash, gold bullion, and cash equivalents are over $1B. 20M+ oz M&I and a solid balance sheet is excellent value at this price point. The massive Niobium reserves are really not even factored into IAG shareprice whatsoever IMO. Then you have a substantial amount of REEs too. When I bought into IAG 5-6 years ago I never had the slightest idea they would have an REEs.

      This gold raid is just #$%$ in the wind, nothing is going to stop the gold bull market until prices get truly juicy and overpowering. Hell, $1600 doesn't even bring any marginal production online. Many juniors are break even at $1600 and can't develop or expand. Same with silver. $30-50 silver didn't bring any new silver. If what I learned in Econ 101 is true, PM production will not increase until prices are substantially higher.

      I'd like to see IAG pick up a great mine or land package in the ~$200-300M range and move the needle over 1M ozs right now and increase cash flow. Something with low operating and capital costs in a non-Commie jurisdiction.

      Sentiment: Strong Buy

      • 2 Replies to pm_guru_1
      • I'm right there with you. You're a lot like me. I like the cash, and I like the amount you think they can spend to make a value acquisition right now. It's a great time to trade paper for gold anything.

        Their costs are a little high by industry standards. Kinross is overlooked right now for their cost being in the $700's which is pretty darn good these days. The majority of gold miners seem to be operating in $900's for cost per ounce.

        Since the management change, KGC's value has increased, but that's not reflected in its SP. KGC may be the best value in the sector right now. They are set up to under-promise and over-perform. IAG needs to follow their lead in that one, so the "#&^)@%" analysts don't have a field day with negative reviews of reports released, like what has happened so often in IAG's, and KGC's past.

        IAG has the niobium and REE resources which sets them apart... IAG will rise to the top again as the POG will be soaring soon. An announcement that the US Dollar has been downgraded is only a short amount of time away, and will probably be the event that drives the PM shorts to go long, sending PM prices leaping to new highs.

        Weak hands barfing up their holdings now never understood why they had their PM positions in the first place. Those who understand are holding fast, and buying if they can. This window of opportunity here will be closing soon.

        GLTA IAG longs

        Sentiment: Strong Buy

      • Doesn't matter. None of the metrics. Numbers numbers, it's just sell sell sell these Peeces O #$%$. Buy DUST if ya wanna make some money.

        Sentiment: Strong Sell

 
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