RE: excusesOk press release this am after an unjustified drop. I bought this stock as a play on the gold price because they are unhedged and as a possible takeover. Can someone please tell us how the market might react to this news. It doesn't seem so bad to me.......an overall increase but it seems investors react more "decline" than warranted sometimes.
Full release here: https://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGenerator&date=20051006&archive=cnw&slug=C8035
TORONTO, Oct. 6 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX: IMG, AMEX: IAG) is pleased to announce updated gold reserves and resources at the Tarkwa-Damang gold mine complex in Ghana in which the Company has an 18.9% ownership interest. Gold Fields Limited and the Government of Ghana hold a 71.1% interest and a 10% interest, respectively in both the Tarkwa and Damang mines.
Joe Conway, President and CEO of IAMGOLD commented on the gold reserves and resources, stating: "During the 12 month period to June 2005, assuming a US$375 per ounce gold price, a total of 488,000 of proved and probable gold reserves were added at the Damang mine, of which 92,000 ounces were added to IAMGOLD's account. Damang has demonstrated its potential to extend the mine life through exploration and optimization. Tarkwa's proved and probable reserves decreased by 1.3 million ounces, a 9% decrease in the IAMGOLD account. The modest decline in the Tarkwa reserve portion is due to the increasing costs of consumables as well as mine depletion. If reserves at Tarkwa were calculated at US$413, the reserves would actually have increased by 9%. However, even at a US$375 gold price, the impact on the mine life at Tarkwa is minimal."
Discussion on Reserves
The increase in proved and probable reserves from June 30, 2004 to June 30, 2005, at Damang, totaled 488,000 ounces of which 92,000 ounces are attributable to IAMGOLD, an increase of 56%. At Tarkwa, proved and probable reserves decreased by 1.3 million ounces during this same period, of which 250,000 ounces were from IAMGOLD's account, a 9% decline. Table 1 illustrates proved and probable reserves for both Tarkwa and Damang at June 30, 2004 at a US$350 per ounce gold price and at June 30, 2005 at a US$375 per ounce gold
price.
At current gold prices, there is potential to further expand reserves, mine life and annual production at both Tarkwa and Damang. If reserves at Tarkwa were calculated at a US$413 per ounce gold price versus US$375 per ounce, a 10% increase, the total reserve figure would increase by 2.6 million ounces of gold (488,376 ounces of gold to IAMGOLD's account) a 23% increase over current 2005 levels. Reserves at Damang, would also increase with a US$413 gold price, by 322,000 ounces, a 24% increase over current 2005 levels.
Discussion on Resources
At Tarkwa, measured and indicated resources (which include reserves) to IAMGOLD's account declined by 194,000 ounces from June 30, 2004 to June 30, 2005. At the Damang mine, measured and indicated resources (which include reserves) to IAMGOLD's account increased by about 77,000 ounces or 27%. Resources were determined on the basis of a US$450 per ounce gold price in the 2004 and 2005 periods. Table 3 illustrates measured, indicated and inferred resources for the Tarkwa and Damang gold mines as of June 30, 2005 compared to June 30, 2004.