Cost Reductions and Efficiency Improvements Take Hold
All monetary amounts are expressed in U.S. dollars, unless otherwise
indicated.
Refer to the interim Management Discussion and Analysis (MD&A) and
unaudited consolidated Financial Statements for more information.
TSX: IMG NYSE: IAG
TORONTO, Nov. 5, 2013 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") today reported its unaudited consolidated
financial and operating results for the third quarter ending September
30, 2013.
-
Reported net earnings attributable to equity holders of $25.3 million,
or $0.07 per share.
-
Net cash from operating activities before changes in working capital1 of $67.4 million, or $0.18 per share.
-
Cash, cash equivalent, gold bullion of $539.5 million at September 30,
2013.
-
Attributable gold production of 228,000 ounces, up 11% year-over-year.
-
Attributable gold sales of 195,000 ounces; commercial production of
185,000 ounces.
-
Total cash costs2,3 - gold mines4 of $807 per ounce; $793 per ounce year-to-date.
-
Total cash costs for IAMGOLD owned and operated mines of $735 per ounce;
$741 per ounce year-to-date.
-
All-in sustaining costs2 - gold mines of $1,216 per ounce.
-
On track to meeting $100 million cost reduction target with 77% achieved
to date.
-
Maintaining 2013 production guidance and previously lowered cost
guidance.
"We had a good quarter despite the challenging environment in our
industry," stated Steve Letwin, President and Chief Executive Officer.
"Prior to the drop in the gold price, in the first quarter we launched
a comprehensive program to reduce annual operating costs by $100
million without compromising employee safety or critical capabilities.
This program has been highly successful to date as costs have been
lowered by $77 million. As a result, our third quarter cash costs and
all-in sustaining costs were well within guidance and we expect to meet
our cost reduction targets for the year.
"Our priorities continue to be cost reduction, disciplined capital
allocation and cash preservation. This will give us the flexibility to
take advantage of opportunities that would deliver a robust return on
capital," continued Mr. Letwin. "While we remain optimistic about the
long-term prospects for gold, we are prudently planning for a lower
gold price environment. Accordingly, we are re-evaluating our capital
expenditure plans, initiating programs to lower working capital,
reviewing our dividend policy, reassessing our life-of-mine plans and
driving further cost reductions - all to create long-term value for our
shareholders."
THIRD QUARTER 2013 HIGHLIGHTS
Accounting for Joint Venture Interests
As a result of the adoption of International Financial Reporting
Standards ("IFRS") 11, Joint Arrangements, effective January 1, 2013,
we began accounting for our joint venture interests, Sadiola (41%) and
Yatela (40%), using the equity method of accounting instead of
proportionate consolidation. We now report earnings from these joint
ventures in the consolidated statements of earnings in one line as
share of net earnings (losses) from investments in associates and joint
ventures (net of income taxes). Although there is no change to net
earnings and earnings per share, individual line items such as
revenues, cost of sales and income tax expense were affected by
collapsing the impact of Sadiola and Yatela to one line. In addition,
consolidated net cash from operating activities, investing activities
and financing activities within the consolidated statements of cash
flows were impacted due to the differences in equity accounting as
compared to proportionate consolidation. Refer to note 2(c)(ii) of the
consolidated interim financial statements as at September 30, 2013 for
more information. We continue to present operational information about
our joint ventures, including, but not limited to gold production,
total cash costs, and all-in sustaining costs. For comparability, prior
year figures have been restated using the equity method of accounting.
Financial Performance
-
Revenues for the third quarter 2013 were $293.5 million, $42.7 million
lower from the same prior year period. The decrease was mainly due to a
lower average realized gold price ($61.4 million), partially offset by
a higher volume of gold sales ($18.4 million) and higher niobium sales
($0.3 million). The increase in sales volume was related to timing
differences between production and sales, whereby a portion of the gold
produced in the second quarter was sold in the third quarter. This
increase in sales volume was partially offset by lower production, as
expected, at Essakane due to lower grades.
-
Cost of sales for the third quarter 2013 was $218.3 million, up $33.1
million from the same prior year period. The increase was the result of
higher operating costs ($27.0 million) and higher depreciation expense
($9.7 million), partially offset by lower royalties arising from a
lower average realized gold price ($3.6 million). Operating costs were
higher primarily due to the planned processing of Mouska ore compared
to the same prior year period when Mouska ore was being stockpiled
($10.6 million), higher costs from increased mining activity and longer
hauling distances at Rosebel ($12.1 million) and increased mining and
processing of hard rock at Essakane ($6.0 million), partially offset by
lower operating costs at other sites ($1.7 million)
.
-
Reported net earnings attributable to equity holders for the third
quarter 2013 were $25.3 million ($0.07 per share), $52.7 million ($0.14
per share) lower than the third quarter 2012. The decrease was mainly
related to the combined impact of lower revenues and higher cost of
sales ($75.8 million) and IAMGOLD's share of higher net losses from
investments in associates and joint ventures ($13.1 million), partially
offset by lower exploration expenses ($18.4 million) and lower income
taxes ($21.1 million).
-
Adjusted net earnings attributable to equity holders1 for the third quarter 2013 were $26.2 million ($0.07 per share1), $33.8 million ($0.09 per share) lower than the same prior year
period.
-
Net cash from operating activities for the third quarter 2013 was $64.9
million, $30.9 million lower than the same prior year period. The
decrease was mainly due to the combined impact of lower revenues and
higher cost of sales ($75.8 million), partially offset by lower
exploration expenses ($18.4 million), lower income taxes paid ($9.9
million) and lower changes to non-cash working capital items and
non-current ore stockpiles ($5.7 million).
-
Net cash from operating activities before changes in working capital1 for the third quarter 2013 was $67.4 million ($0.18 per share1), $36.6 million ($0.10 per share) lower than the same prior year
period.
Financial Position
-
Cash, cash equivalents and gold bullion (at market value) was $539.5
million as at September 30, 2013, down $68.4 million from June 30,
2013. The decrease was mainly due to capital expenditures related to
mining assets ($109.7 million), primarily at Essakane, and dividends
paid ($52.2 million), partially offset by an increase in the market
value of gold bullion holdings due to a higher closing gold price
($18.1 million), net repayments from related parties ($6.1 million) and
net cash from operating activities ($64.9 million).
-
As at September 30, 2013, no funds were drawn against our $750 million
total unsecured revolving credit facilities.
Production, Costs and Margins
Gold Operations
-
Attributable gold production, inclusive of joint venture operations, was
228,000 ounces in the third quarter 2013, up 23,000 ounces or 11% from
the same prior year period. Gold production was higher due to
pre-commercial production from the Westwood mine (43,000 ounces) and
higher production at Mouska (2,000 ounces), partially offset by lower
grades, as expected, at Essakane (13,000 ounces), lower grades at
Sadiola (7,000 ounces) and lower throughput at Yatela (2,000 ounces).
-
Attributable sales volume, inclusive of joint ventures operations, for
the third quarter 2013 was 195,000 ounces compared to attributable gold
commercial production of 185,000 ounces. Sales in the third quarter
exceeded commercial production by 10,000 ounces mainly related to
Mouska (11,000 ounces) due to production in the second quarter 2013
which was sold early in the third quarter 2013. This was partially
offset by timing differences at our other operations.
-
Total cash costs2,3 - gold mines4 for the third quarter 2013 were $807 per ounce, up approximately 3%
from the second quarter of 2013 and up 14% from the same quarter in
2012. The year-over-year increase was mainly due to the impact of
expected lower grades and the increase in processing hard rock,
together with inflationary cost pressures across all sites. This was
partially offset by the continued benefits from our cost reduction
program.
-
All-in sustaining costs2 - gold mines for the third quarter 2013 were $1,216 per ounce sold, up
14% from the same prior year period. The increase is attributed to
lower grades and harder rock, along with the increase in sustaining
capital expenditures to support the higher hard rock capacity levels at
Rosebel and Essakane.
-
All-in sustaining costs net of the Niobec contribution were $1,134 per
ounce sold in the third quarter 2013, up 10% from the same prior year
period. The netting of the operating margin of Niobec less its
sustaining capital expenditures against all-in sustaining costs
recognizes the impact of Niobec`s predictable stream of cash flow on
our overall cost of production.
-
The gold margin1 for the third quarter 2013 was $527 per ounce, compared to $960 an
ounce in the third quarter 2012. This reflects a 20% decline in the
average realized gold price and a 14% increase in total cash costs over
this period.
Niobium Operation
-
Niobium production for the third quarter 2013 was 1.3 million kilograms,
up 8% from the same quarter 2012.
-
The operating margin2 increased by 19% to $19 per kilogram in the third quarter 2013 from $16
per kilogram in the same quarter 2012 reflecting improved operating
efficiencies.
Liquidity Planning
Although we remain optimistic about the long-term prospects for gold,
our priorities continue to be cost reduction, disciplined capital
allocation and cash preservation. Accordingly, we are re-evaluating
capital expenditure plans, initiating programs to lower working
capital, reviewing our dividend policy, reassessing our life-of-mine
plans and driving further cost reductions.
COST REDUCTION PROGRAM
In the first quarter 2013, before the drop in the gold price, we
announced a $100 million cost-reduction program. Our objective was to
reduce operating costs at sites by $54 million, exploration
expenditures by $40 million and corporate general and administrative
costs by $6 million. We continue to gain traction on the initiatives
stated in the second quarter and to implement new cost savings
initiatives throughout the company. At the end of the third quarter,
77% of planned reductions had been achieved, with savings of $38
million in Operations, $35 million in Exploration and $4 million in
Corporate. As we enter the 2014 budgeting process, it is our intention
to roll all sustainable cost reduction and productivity improvement
initiatives forward as embedded savings.
The following table indicates the cost savings realized as at September
30, 2013 with examples of new and ongoing initiatives.
Operations Examples
Target: $54 million
Realized year-to-date: $38 million
|
Reducing Power Costs and Consumption of Consumables
-
Reduced power rates at Rosebel.
-
Reduced cyanide consumption at Rosebel as a result of increased
throughput to the gravity circuit following the commissioning of the
third ball mill.
-
Reduced fuel consumption at Westwood with the implementation of a fuel
and waste oil management program.
-
Reduced consumption of energy and steel in the SAG and ball mill
grinding process at Essakane through the accelerated commissioning of
the pebble crusher.
Reducing Labour Costs
-
Implemented transition plan to replace more expats with nationals.
-
Reduced staffing requirements in mining and maintenance through business
process and operating efficiency improvements and improved contract
maintenance.
-
Replaced consultants with in-house technical services team.
Renegotiating Mining Camp Supply Contracts
-
Consolidated bus contracts for transporting workers to and from the
Essakane mine.
-
Negotiated price discounts from local suppliers at Essakane, such as
food and security.
Improving Operating Efficiencies and Reducing Maintenance Costs
-
Improved productivity at Rosebel through an aggressive dewatering
process of the pits during the rainy season combined with better
coordination of shifts for the drilling and blasting crews. Blasting
crews now perform their work immediately following the drilling of
holes, which has significantly reduced the need for redrilling and
enabled more holes to be drilled in the same period of time.
-
Reduced the frequency and cost of preventive truck maintenance through
the replacement of the oil renewal system.
-
Reduced maintenance costs through the redesign of mine roads, which are
improving tire life and reducing hauling cycle times.
-
Installed a potable water system at Essakane to provide safe drinking
water, thereby eliminating the need to purchase bottled water for the
operations.
-
Increased monitoring and management of tire wear at Westwood.
Exploration Examples
Target: $40 million
Realized year-to-date: $35 million
($14.1 million greenfield, $14.8 million brownfield, $5.6 million Côté
Gold, $0.5 million for other scoping and feasibility studies)
|
-
Downsized exploration teams by one-third, mainly in West Africa,
Suriname, Brazil and Canada.
-
Reduced drilling activities mainly in Mali, Burkina Faso, Peru and
Suriname.
-
Reprioritized projects and deferred others.
-
Deferred or redesigned certain study elements related to the Côté Gold
project and exploration program.
Corporate Examples
Target: $6 million
Realized year-to-date: $4 million
|
-
Reduced use of consultants.
-
Lowered stock based compensation.
-
Increased reliance on communications technology resulting in less
travel.
-
Reduced other general administration costs.
OPERATING HIGHLIGHTS AND CORPORATE DEVELOPMENTS
Westwood Revises Date for Commercial Production to Third Quarter 2014
Batch processing of ore from both Mouska and Westwood continued
throughout the third quarter, with Mouska producing 2,000 ounces and
Westwood 43,000 ounces, bringing combined total production to date to
101,000 ounces. While the ore from the Mouska mine is in commercial
production, the ore from Westwood is at pre-commercial levels. Until
Westwood achieves commercial production, the contribution from the sale
of ounces produced from Westwood will be netted against capital
expenditures. In total, the Westwood mill is expected to produce
between 130,000 and 150,000 ounces in 2013.
The date for commercial production of the Westwood mine has been revised
to the third quarter 2014 following a reassessment of the ramp-up of
the mine in light of previously disclosed events. The first
incident, reported in June of this year, involved a software
malfunction, which put the service hoist out of commission. The repair
work was completed and all costs are covered by the warranty.
Subsequently, in August we experienced a rock burst. There were no
injuries, but for safety reasons operations in that area of the mine
were suspended and this has temporarily blocked access to that portion
of the ore body.
Further evaluation of the impact of these events has resulted in
modifications necessary to safely realize the mine's full potential.
Our outlook for 2014 for the Westwood and Mouska mines combined is
expected to range between 100,000 and 120,000 ounces, with a ramp-up of
the Westwood mine to full capacity by the end of 2016. While the
timeline for reaching commercial production has changed, it does not
alter our long-term view of the mine plan, estimated mineral reserves
and resources, and life-of-mine throughput and production.
Until the Westwood mine achieves commercial production, the contribution
from the gold sold will be applied as a credit against mining assets in
the consolidated balance sheets. The revenues and associated costs from
the gold sold at Westwood after obtaining commercial production will be
reported in the consolidated statements of earnings.
Essakane Expansion to be Completed by Year-end
The plant expansion at Essakane to accommodate an increasing proportion
of hard rock is on track for completion by the end of 2013 and we
expect an increase in production levels in 2014 as a result. As
expected, ore grades in 2013 have been 10%-15% lower than the
life-of-mine average, mainly due to the processing of lower-grade,
softer ore stockpiled in prior years. Higher grades are expected in
2014 as the percentage of hard rock mined increases. The higher grades
will help to mitigate the impact of the higher energy consumption
required to treat harder ore. We are also exploring opportunities to
reduce our power costs, including connecting to the national power grid
in Ouagadougou.
Rosebel Developments
The previously announced joint venture agreement with the Government of
Suriname relating to areas outside the existing mining concession and
the new power agreements pertaining to our existing operations are
expected to extend the longevity of Rosebel and to enhance
profitability. The new power rates are expected to potentially reduce
costs at the site by up to $50 an ounce. With respect to the joint
venture agreement, we are working to acquire additional properties and
to further delineate the surrounding resources. To date, we have
identified a number of targets and have commenced discussions. With
respect to the expansion of our existing operation, the feasibility
study assessing a number of alternate expansion scenarios, and which
incorporates the new power agreements, is nearing completion.
Future Expansion and Development Projects on Hold
Our decision to commit to future expansion and development projects
continues to be conditional on a number of factors. While we are
currently exploring a number of alternatives for the Sadiola sulphide
project, we do not intend to proceed without a partner. For the Côté
Gold project, an attractive asset for our longer-term production
profile, we expect to have the required mining permits by the end of
2014, and, depending on the outcome of the pre-feasibility study at the
end of 2013, complete the feasibility study by mid-2015. The decision
to proceed with construction will depend on the project economics based
on the projected gold price. As part of the feasibility study for the
Niobec expansion, we are exploring multiple scenarios, including a
staged development approach. We continue to move forward with
permitting and are reviewing the development timeline in light of
current market conditions. The expected rate of return is attractive;
however, this project will remain on hold until we have a partner to
jointly fund the project. For all of these investments, our focus at
this time is on de-risking the projects with ongoing evaluation of
market conditions.
Yatela Mining Operations Suspended
On September 30, 2013, mining excavation activities were suspended at
the Yatela mine in Mali, our joint venture operation with AngloGold
Ashanti. The joint decision to suspend active mining activities at our
highest cost operation, which accounted for 3% of production
year-to-date, was the result of a combination of factors, including
miner safety in the pit, the drop in the spot price of gold and rising
costs. The decision has shortened the life of mining activities by
approximately six months from what was previously planned. However, the
processing of the ore previously mined will continue until the end of
2016.
Commitment to Zero Harm Continues
Regarding health and safety, the frequency of all types of serious
injuries (measured as DART rate5) for the third quarter 2013 was 1.06 compared to 1.12 for full year
2012, representing a 5% improvement.
SUMMARY OF FINANCIAL AND OPERATING RESULTS
|
|
|
|
|
|
|
Ended September 30
|
Three months
|
Nine months
|
|
2013
|
Change
|
20121
|
2013
|
Change
|
20121
|
Financial Results ($ millions, except where noted)
|
|
|
|
|
|
|
Revenues
|
$ 293.5
|
(13%)
|
$ 336.2
|
$ 899.9
|
(15%)
|
$1,054.8
|
Cost of sales
|
$ 218.3
|
18%
|
$ 185.2
|
$ 612.3
|
8%
|
$ 564.8
|
Earnings from mining operations2
|
$ 75.2
|
(50%)
|
$ 151.0
|
$ 287.6
|
(41%)
|
$ 490.0
|
Net earnings attributable to equity holders of IAMGOLD
|
$ 25.3
|
(68%)
|
$ 78.0
|
$ 7.8
|
(97%)
|
$ 250.1
|
Net earnings per share ($/share)
|
$ 0.07
|
(67%)
|
$ 0.21
|
$ 0.02
|
(97%)
|
$ 0.67
|
Adjusted net earnings attributable to equity holders of IAMGOLD2
|
$ 26.2
|
(56%)
|
$ 60.0
|
$ 117.6
|
(48%)
|
$ 226.8
|
Adjusted net earnings per share2 ($/share)
|
$ 0.07
|
(56%)
|
$ 0.16
|
$ 0.31
|
(48%)
|
$ 0.60
|
Net cash from operating activites
|
$ 64.9
|
(32%)
|
$ 95.8
|
$ 202.3
|
(36%)
|
$ 314.6
|
Net cash from operating activities before changes in working capital2
|
$ 67.4
|
(35%)
|
$ 104.0
|
$ 250.9
|
(30%)
|
$ 358.3
|
Net cash from operating activities before changes in working capital
($/share)2
|
$ 0.18
|
(36%)
|
$ 0.28
|
$ 0.67
|
(30%)
|
$ 0.95
|
Key Operating Statistics
|
|
|
|
|
|
|
Gold sales - attributable (000s oz)
|
195
|
4%
|
188
|
567
|
(5%)
|
595
|
Gold commercial production - attributable (000s oz)
|
185
|
(10%)
|
205
|
587
|
(5%)
|
616
|
Gold production - attributable (000s oz)3
|
228
|
11%
|
205
|
640
|
4%
|
616
|
Average realized gold price2 ($/oz)
|
$ 1,334
|
(20%)
|
$ 1,670
|
$ 1,438
|
(13%)
|
$ 1,653
|
Total cash costs2,4 - gold mines ($/oz)
|
$ 807
|
14%
|
$ 710
|
$ 793
|
12%
|
$ 708
|
Gold margin2 ($/oz)
|
$ 527
|
(45%)
|
$ 960
|
$ 645
|
(32%)
|
$ 945
|
All-in sustaining costs2,5 - gold mines ($/oz)
|
$ 1,216
|
14%
|
$ 1,065
|
$ 1,231
|
16%
|
$ 1,063
|
All-in sustaining costs - total6 ($/oz)
|
$ 1,134
|
10%
|
$ 1,032
|
$ 1,164
|
11%
|
$ 1,047
|
Niobium production (millions of kg Nb)
|
1.3
|
8%
|
1.2
|
3.7
|
6%
|
3.5
|
Niobium sales (millions of kg Nb)
|
1.1
|
(8%)
|
1.2
|
3.6
|
0%
|
3.6
|
Operating margin2 ($/kg Nb)
|
$ 19
|
19%
|
$ 16
|
$ 17
|
13%
|
$ 15
|
|
|
|
|
|
|
|
Financial Position ($ millions)
|
|
September 30, 2013
|
Change
|
December 31, 20121
|
Cash, cash equivalents, and gold bullion
|
|
|
|
|
|
|
at market value
|
|
$
|
539.5
|
(47%)
|
$
|
1,020.6
|
at cost
|
|
$
|
457.7
|
(49%)
|
$
|
894.2
|
Total assets
|
|
$
|
5,160.0
|
(3%)
|
$
|
5,295.6
|
Long-term debt
|
|
$
|
639.9
|
0%
|
$
|
638.8
|
Available credit facilities
|
|
$
|
750.0
|
0%
|
$
|
750.0
|
1
|
Balances related to 2012 have been reclassified as per note 2(c)(ii) of
the consolidated interim financial statements.
|
2
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of this news release for the reconciliation to GAAP.
|
3
|
Balances related to 2013 include Westwood pre-commercial production for
the three and nine months ended September 30, 2013 of 43,000 and 53,000
ounces, respectively.
|
4
|
The total cash costs computation does not include Westwood
pre-commercial production for the three and nine months ended
September 30, 2013 of 43,000 and 53,000 ounces, respectively.
|
5
|
By-product credits are included in the calculation of this measure.
Refer to the non-GAAP performance measures section of the MD&A for the
reconciliation to GAAP.
|
6
|
Total, as used with all-in sustaining costs, includes the impact of
niobium contribution, defined as the Niobec mine's operating margin and
sustaining capital on a per gold ounce sold basis. Refer to the All-in
sustaining cost table that follows in this news release.
|
ATTRIBUTABLE GOLD PRODUCTION AND TOTAL CASH COSTS
The table below presents the attributable gold production and total cash
costs per ounce of production to the Company.
|
|
|
|
|
|
|
|
|
|
Gold Production (000s oz)
|
Total Cash Costs1 ($/oz)
|
Ended September 30
|
Three months
|
Nine months
|
Three months
|
Nine months
|
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
Owner-operator
|
|
|
|
|
|
|
|
|
Rosebel (95%)
|
95
|
95
|
266
|
282
|
$ 729
|
$ 689
|
$ 730
|
$ 674
|
Essakane (90%)
|
64
|
77
|
191
|
238
|
736
|
594
|
732
|
580
|
Doyon division2 (100%)
|
2
|
-
|
48
|
4
|
1,048
|
-
|
838
|
137
|
|
161
|
172
|
505
|
524
|
735
|
644
|
741
|
627
|
Joint ventures
|
|
|
|
|
|
|
|
|
Sadiola (41%)
|
19
|
26
|
62
|
73
|
1,297
|
978
|
1,071
|
1,059
|
Yatela (40%)
|
5
|
7
|
20
|
19
|
1,204
|
1,324
|
1,251
|
1,587
|
|
24
|
33
|
82
|
92
|
1,280
|
1,050
|
1,115
|
1,169
|
Total commercial operations
|
185
|
205
|
587
|
616
|
807
|
710
|
793
|
708
|
Doyon division2 (100%)
|
43
|
-
|
53
|
-
|
-
|
-
|
-
|
-
|
|
228
|
205
|
640
|
616
|
807
|
710
|
793
|
708
|
Cash costs1, excluding royalties
|
|
|
|
734
|
623
|
718
|
620
|
Royalties
|
|
|
|
|
73
|
87
|
75
|
88
|
Total cash costs3
|
|
|
|
|
$ 807
|
$ 710
|
$ 793
|
$ 708
|
1
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
2
|
In 2012, the Mouska mine, as planned, did not produce gold other than
marginal gold derived from the mill clean-up process. In 2013, the
Westwood mill began processing Mouska ore. While the ore from Mouska is
commercial production, the ore from Westwood is at pre-commercial
levels. Until Westwood achieves commercial production, the Westwood
contribution from ounces sold will be netted against capital
expenditures.
|
3
|
The total cash costs computation does not include Westwood
pre-commercial production for the three and nine months ended
September 30, 2013 of 43,000 and 53,000 ounces, respectively.
|
GOLD SALES VOLUME AND REALIZED GOLD PRICE
|
|
|
|
|
|
|
Gold Sales1 (000s oz)
|
|
|
Average Realized Gold Price2 ($/oz)
|
Ended September 30
|
|
|
Three months
|
|
Nine months
|
|
|
Three months
|
|
|
Nine months
|
|
|
|
2013
|
2012
|
|
2013
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Owner-operator (100%)
|
|
|
182
|
170
|
|
520
|
546
|
|
$
|
1,336
|
|
$
|
1,674
|
|
$
|
1,433
|
|
$
|
1,654
|
Joint ventures3
|
|
|
26
|
31
|
|
82
|
89
|
|
|
1,317
|
|
|
1,645
|
|
|
1,470
|
|
|
1,648
|
Total
|
|
|
208
|
201
|
|
602
|
635
|
|
$
|
1,334
|
|
$
|
1,670
|
|
$
|
1,438
|
|
$
|
1,653
|
1
|
Attributable sales volume for the three months ended September 30, 2013
and 2012 was 195,000 and 188,000 ounces, respectively, and for the nine
months ended September 30, 2013 and 2012, was 567,000 and 595,000
ounces, respectively, after taking into account 95% of the Rosebel
sales and 90% of the Essakane sales.
|
2
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
3
|
Attributable sales of Sadiola (41%) and Yatela (40%).
|
ALL-IN SUSTAINING COSTS
The table below presents the Company's all-in sustaining costs per ounce
sold.
|
|
|
|
All-in Sustaining Costs1 ($/oz)
|
Ended September 30
|
Three months
|
Nine months
|
|
2013
|
2012
|
2013
|
2012
|
Owner-operator
|
|
|
|
|
Rosebel (95%)
|
$ 979
|
$ 923
|
$ 1,055
|
$ 920
|
Essakane (90%)
|
1,119
|
922
|
1,158
|
883
|
Doyon division (100%)
|
900
|
-
|
915
|
1,062
|
|
|
|
|
|
All-in sustaining costs - owner-operator
|
1,118
|
1,033
|
1,165
|
991
|
|
|
|
|
|
Joint ventures
|
|
|
|
|
Sadiola (41%)
|
1,809
|
1,129
|
1,526
|
1,256
|
Yatela (40%)
|
2,118
|
1,643
|
1,927
|
2,280
|
|
|
|
|
|
All-in sustaining costs - gold mines
|
1,216
|
1,065
|
1,231
|
1,063
|
Niobium contribution2
|
(82)
|
(33)
|
(67)
|
(16)
|
All-in sustaining costs - total3
|
$ 1,134
|
$ 1,032
|
$ 1,164
|
$ 1,047
|
1
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
2
|
Niobium contribution consists of Niobec mine's operating margin and
sustaining capital on a per gold ounce sold basis.
|
3
|
By-product credits are included in the calculation of this measure.
Refer to the non-GAAP performance measures section of the MD&A for the
reconciliation to GAAP.
|
|
CAPITAL EXPENDITURES1
Capital expenditures ("CAPEX") in the third quarter 2013 were $129.6
million and $537.2 million year-to-date, inclusive of joint ventures.
The following table shows the split between sustaining and
development/expansion CAPEX.
|
|
|
|
Ended September 30, 2013
|
Three months
|
|
Nine months
|
($ millions)
|
Sustaining
|
|
Development/
Expansion
|
|
Total
|
|
Sustaining
|
|
Development/
Expansion
|
|
Total
|
Gold segments
|
|
|
|
|
|
|
|
|
|
|
|
|
Rosebel2
|
$18.9
|
|
$0.3
|
|
$19.2
|
|
$ 81.6
|
|
$15.9
|
|
$ 97.5
|
|
Essakane2
|
27.7
|
|
39.3
|
|
67.0
|
|
88.5
|
|
141.0
|
|
229.5
|
|
Westwood
|
-
|
|
7.1
|
|
7.1
|
|
-
|
|
102.7
|
|
102.7
|
Total gold segments
|
46.6
|
|
46.7
|
|
93.3
|
|
170.1
|
|
259.6
|
|
429.7
|
Niobec
|
5.9
|
|
10.5
|
|
16.4
|
|
25.0
|
|
34.4
|
|
59.4
|
Corporate and other
|
3.5
|
|
-
|
|
3.5
|
|
3.7
|
|
-
|
|
3.7
|
Total capital expenditures, consolidated
|
56.0
|
|
57.2
|
|
113.2
|
|
198.8
|
|
294.0
|
|
492.8
|
Joint ventures3
|
10.6
|
|
5.8
|
|
16.4
|
|
29.8
|
|
14.6
|
|
44.4
|
|
$66.6
|
|
$ 63.0
|
|
$129.6
|
|
$ 228.6
|
|
$308.6
|
|
$537.2
|
1
|
Capitalized borrowing costs are not included.
|
2
|
On an attributable basis, Rosebel's (95%) and Essakane's (90%)
sustaining capital expenditures were $17.9 million and $25.0 million,
respectively for the three months ended September 30, 2013 and $77.4
million and $79.7 million, respectively for the nine months ended
September 30, 2013.
|
3
|
Attributable capital expenditures of Sadiola (41%) and Yatela (40%).
|
THIRD QUARTER 2013 OPERATIONS REVIEW
ROSEBEL MINE, SURINAME
Attributable gold production of 95,000 ounces for the third quarter 2013
was unchanged from the same quarter 2012 as slightly higher throughput
was offset by lower recoveries. Total mine production increased 7% from
the same prior year period as the expanded mining fleet was put into
production. Compared to the previous quarter, production was up 16% due
to a 7% increase in throughput and an 8% increase in grade.
Total cash costs of $729 per ounce produced were 6% higher than the same
period in 2012. The increase in total cash costs was mainly due to
increased labour costs, higher consumables and higher fuel costs from
longer hauls, partially offset by lower realized power rates resulting
from updated contract parameters, which included the impact of the gold
price. All-in sustaining costs of $979 per ounce sold were 6% higher
than the same prior year period mainly due to higher cash costs and
sustaining capital expenditures, partially offset by higher sales
volume due to timing of sales.
Sustaining capital expenditures for the third quarter 2013 were $18.9
million, an increase of $3.1 million from the same prior year period
primarily due to higher spending on mining equipment, partially offset
by lower resource development expenditures. Sustaining capital
expenditures in the third quarter 2013 included mining equipment ($9.0
million), pit optimization ($2.0 million), resource development ($2.6
million), capital spares ($2.4 million) and other sustaining capital
($2.9 million).
ESSAKANE MINE, BURKINA FASO
Attributable gold production of 64,000 ounces in the third quarter 2013
was 17% lower than the same prior year period. This was mainly due to
expected lower grades, partially offset by a 7% increase in throughput,
which was also up 9% from the previous quarter. The improved throughput
is the result of an expansion in crushing and milling capacities,
including the new pebble crusher installed in the previous quarter.
During the third quarter, stripping at Essakane continued as part of
Phase 2 of the push-back of the main pit.
Total cash costs in the third quarter 2013 were $736 per ounce produced,
up 24% from the same prior year period. The increase was mainly due to
the impact of lower grades, higher energy prices and consumption and
the upward pressure on consumable prices. All-in sustaining costs per
ounce sold were $1,119, up 21% from the same quarter 2012 mainly due to
higher cash costs and sustaining capital expenditures.
Sustaining capital expenditures for the third quarter 2013 were $27.7
million, an increase of $4.2 million from the same prior year period.
The increase is primarily due to higher capitalized stripping partially
offset by lower spending on mining equipment and resource development.
Third quarter 2013 sustaining capital expenditures included capitalized
stripping of $22.2 million and other sustaining capital ($5.5 million).
DOYON DIVISION, CANADA
The Doyon division includes the Mouska mine, which is scheduled to close
at the end of the first quarter 2014, and the Westwood mine. The
Westwood mill, which commenced production at the end of the first
quarter 2013, is batch processing ore stockpiled from the Mouska mine
and the new Westwood mine. Ore from the Mouska mine was batch processed
at the beginning of the third quarter 2013 to deplete the ore
stockpiles. Throughout the remainder of the period, ore was stockpiled
for the planned batch processing in the fourth quarter 2013.
While the ore from the Mouska mine is in commercial production, the ore
from the Westwood mine is in pre-commercial production. In the third
quarter 2013, the Westwood mill produced 2,000 ounces from the Mouska
ore and 13,000 ounces were sold. Gold sales exceeded production by
11,000 ounces due to production late in the second quarter being sold
early in the third quarter. Pre-commercial gold production from the
Westwood mine was 43,000 ounces during the third quarter 2013. The
resulting sales of 36,000 ounces and the related costs were netted
against capital expenditures.
Total cash costs of $1,048 per ounce and all-in sustaining costs of $900
per ounce for the third quarter 2013 are not comparable to the same
period in 2012 when ore was being stockpiled during the refurbishment
of the mill. All-in sustaining costs per ounce sold are less than
total cash costs per ounce produced for the third quarter 2013 as the
ounces sold were produced in the second quarter 2013 at a lower total
cash cost per ounce. Mouska produced 41,000 ounces in the second
quarter 2013 compared to 2,000 ounces in the third quarter 2013.
SADIOLA MINE, MALI
Attributable gold production of 19,000 ounces for the third quarter of
2013 was 27% lower than in the third quarter 2012. This was the result
of lower grades and recoveries, partially offset by higher throughput.
Total cash costs of $1,297 an ounce were 33% higher than the same prior
year period mainly due to lower production. The 12% decrease in
royalties reflected a lower average realized gold price. All-in
sustaining costs were $1,809 per ounce sold compared to $1,129 per
ounce in the same quarter 2012 due to higher cash costs and sustaining
capital expenditures.
Sustaining capital expenditures for the third quarter 2013 were $10.0
million, an increase of $5.6 million from the same prior year period
primarily due to higher capitalized stripping. Third quarter 2013
sustaining capital expenditures included capitalized stripping of $8.4
million and other sustaining capital ($1.6 million).
YATELA MINE, MALI
On September 30, 2013, mining excavation activities were suspended as a
result of a combination of factors, including miner safety in the pit,
the drop in the spot price of gold and rising costs. The decision has
shortened the life of the mining activities by about six months from
what was previously planned. However, the processing of the ore
previously mined will continue until the end of 2016.
Attributable gold production of 5,000 ounces for the third quarter 2013
was down 29% from the same prior year period. Total operating material
mined declined 53% from the same prior year period as the mine reached
the end of life.
Total cash costs per ounce produced were $1,204 in the third quarter
2013, down 9% from the same quarter 2012. This was due to lower
contractor costs and the impact of the impairment of inventories, which
reduced the net cost of gold produced. The 8% decrease in royalties
reflected a lower average realized gold price. All-in sustaining costs
were $2,118 per ounce sold compared to $1,643 per ounce in the same
quarter 2012 mainly due to the inclusion of the inventory write down
which is excluded from total cash costs, partially offset by lower cash
costs.
NIOBEC MINE, CANADA
Niobium production in the third quarter 2013 of 1.3 million kilograms
was up 8% from the previous year, due mainly to a 10% increase in
throughput.
Niobium revenues of $48.0 million in the third quarter 2013 were in line
with the same prior year period due to marginally higher sales prices,
partially offset by lower sales volume. The operating margin increased
to $19 per kilogram from $16 per kilogram in the same prior year period
due to decreased costs resulting from improved operating efficiencies.
Third quarter sustaining capital expenditures were $5.9 million. The
timing of further capital spending related to the Niobec expansion
project will be aligned with the advancement of permitting and the
feasibility study. Regardless of project economics related to the
expansion, we will not move forward without a partner to participate in
the funding.
Niobium is largely tied to the steel industry. The steel industry
continues to grow production, increasing by approximately 3% in the
first three quarters of 2013 compared to the first three quarters of
2012. Growth continues to be mainly due to China, with declines in
most other major steel producing regions, such as Europe, North America
and South Korea. Compared to the previous quarter, steel production in
the third quarter 2013 declined in Europe and the Commonwealth of
Independent States, but was stable in North America and China. Niobium
shipments worldwide declined year-over-year by approximately 14%. The
decline in niobium shipments has had a minimal effect on Niobec to
date, as prices and volumes continued to hold steady.
The Niobec mine's production for 2013 is expected to be between
4.7 million kilograms and 5.1 million kilograms with an operating
margin ranging between $15 and $17 per kilogram. The Company maintains
its capital expenditure guidance for the full year 2013 of $80 million.
EXPLORATION
We were active at development and greenfield exploration projects in
eight countries located in West Africa and North and South America for
the nine months ended September 30, 2013. In the third quarter 2013,
exploration expenditures totaled $18.7 million, of which $13.7 million
was expensed and $5.0 million capitalized. This compares to $42.1
million for the same period in 2012. Drilling activities from all
projects totalled approximately 47,400 metres (approximately 261,300
metres during the nine months ended September 30, 2013).
In light of our $100 million cost reduction initiative, we have
reprioritized our global exploration activities and lowered our 2013
outlook by $40 million. The reduction in exploration activities relates
to greenfield projects ($14.9 million), brownfield projects ($18.6
million) and the Côté Gold project ($6.5 million). The reduction in
Côté Gold spending reflects the deferral of some exploration costs into
future years, as well as a redesign of some study components. The
changes are not anticipated to impact the timing of the project.
Nevertheless, we plan to undertake significant greenfield exploration
campaigns on priority projects in Ontario, Brazil and Senegal, and
largely maintain planned resource development drilling programs at the
Rosebel, Essakane, Westwood and Niobec operations. The outlook for 2013
exploration expenditures is $96.4 million, down $2.6 million from that
presented in the second quarter 2013 and $50.8 million from
expenditures in 2012.
2013 OUTLOOK
Production and Cost Guidance Maintained for 2013
|
|
|
|
|
|
|
|
IAMGOLD Full Year Guidance
|
|
|
|
|
|
2013
|
Rosebel (000s oz)
|
|
|
|
|
|
365 - 385
|
Essakane (000s oz)
|
|
|
|
|
|
255 - 275
|
Doyon division1 (000s oz)
|
|
|
|
|
|
130 - 150
|
Total owner-operator production (000s oz)
|
|
|
|
|
|
750 - 810
|
Joint ventures (000s oz)
|
|
|
|
|
|
125 - 140
|
Total attributable production (000s oz)
|
|
|
|
|
|
875 - 950
|
|
|
|
|
|
|
|
Total cash costs2,3 - owner-operator ($/oz)
|
|
|
|
|
|
$750 - $800
|
Total cash costs - gold mines ($/oz)
|
|
|
|
|
|
$790 - $840
|
|
|
|
|
|
|
|
All-in sustaining costs2 - owner-operator ($/oz)
|
|
|
|
|
|
$1,100 - $1,200
|
All-in sustaining costs - gold mines ($/oz)
|
|
|
|
|
|
$1,150 - $1,250
|
|
|
|
|
|
|
|
Niobec production (millions of kg Nb)
|
|
|
|
|
|
4.7 - 5.1
|
Niobec operating margin2 ($/kg Nb)
|
|
|
|
|
|
$15 - $17
|
|
|
|
|
|
|
|
Effective tax rate (%)
|
|
|
|
|
|
38%
|
1
|
|
Doyon division production of 130,000 to 150,000 ounces includes Westwood
pre-commercial production. Associated contribution will be recorded
against its mining assets in the consolidated balance sheets.
|
2
|
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
3
|
|
The total cash costs computation does not include Westwood
pre-commercial production.
|
The success we had with our cost reduction program in the first half of
the year was behind our decision to lower our cost guidance at the end
of the second quarter. For the nine month period ending September 30,
2013, total cash costs for our owner-operator mines were $735 per ounce
compared to guidance of $750-$800 per ounce. Total cash costs2,3 - gold mines were $807 per ounce compared to guidance of $790-$840 per
ounce. And all-in sustaining costs2,3 - gold mines were $1,216 per ounce sold compared to guidance of $1,150
to $1,250 per ounce. Given the continued success of our cost reduction
program, with 77% of the target achieved to date, we are maintaining
our guidance for total cash costs and all-in sustaining costs.
As previously disclosed, depreciation expense is expected to increase in
2013 compared to 2012 as a result of capitalized stripping at Essakane
and higher depreciation of the additional mobile equipment at Essakane
and Rosebel. Depreciation is expected to be in the range of $175
million to $185 million, excluding Sadiola and Yatela, which are
accounted for as equity investments.
The outlook is based on assumptions for the remainder of the year using
an average realized gold price of $1,350 per ounce, C$/U.S.$ exchange
rate of 1.00, U.S.$ /€ exchange rate of 1.30 and average crude oil
price of $95 per barrel.
Effective Tax Rate
The effective tax rate for the three and nine months ended September 30,
2013 was mainly due to the limited tax deductibility on the impairment
of investments and other items. After normalizing earnings, the
effective adjusted tax rate for the nine months ended September 30,
2013 was 37%, slightly lower than the annual effective tax rate of 38%
given as guidance due to the geographical mix of income.
CAPITAL EXPENDITURES OUTLOOK1
We are maintaining our capital expenditure outlook for 2013 as set out
below. While Westwood's total capital expenditure outlook remains
unchanged, the allocation between sustaining and development/expansion
has been adjusted to reflect the revised date for commercial
production.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
|
|
|
Sustaining
|
|
|
Development/
Expansion
|
|
|
|
|
Total
|
Owner-operator
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rosebel
|
|
|
$
|
108
|
|
|
$
|
222
|
|
|
$
|
|
130
|
|
Essakane
|
|
|
|
100
|
|
|
|
200
|
|
|
|
|
300
|
|
Westwood
|
|
|
|
-
|
|
|
|
100
|
|
|
|
|
100
|
|
|
|
|
208
|
|
|
|
322
|
|
|
|
|
530
|
Niobec
|
|
|
|
31
|
|
|
|
49
|
|
|
|
|
80
|
Corporate
|
|
|
|
5
|
|
|
|
-
|
|
|
|
|
5
|
Total capital expenditures, consolidated
|
|
|
|
244
|
|
|
|
371
|
|
|
|
|
615
|
Joint ventures - Sadiola3 and Yatela
|
|
|
|
30
|
|
|
|
45
|
|
|
|
|
75
|
|
|
|
$
|
274
|
|
|
$
|
416
|
|
|
$
|
|
690
|
1
|
|
Capitalized borrowing costs are not included.
|
2
|
|
The feasibility study to determine the optimum mine plan scenario for
Rosebel, which incorporates the new reduced power rates, is nearing
completion. The associated capital program, if any, would depend on the
outcome of the feasibility study.
|
3
|
|
Attributable capital expenditures of $75 million include sustaining
capital expenditures, capitalized stripping costs and existing
commitments related to the ordering of long lead items in 2012 for the
Sadiola sulphide expansion project.
|
NON-GAAP PERFORMANCE MEASURES - ADJUSTED NET EARNINGS
Adjusted net earnings attributable to equity holders of IAMGOLD and
adjusted net earnings attributable to equity holders of IAMGOLD per
share are non-GAAP performance measures. Management believes that
these measures better reflect the Company's performance for the current
period and are a better indication of its expected performance in
future periods. Adjusted net earnings attributable to equity holders
of IAMGOLD and adjusted net earnings attributable to equity holders of
IAMGOLD per share are intended to provide additional information, but
are unlikely to be comparable to similar measures presented by other
issuers. These measures do not have any standardized meaning prescribed
by IFRS and should not be considered in isolation or a substitute for
measures of performance prepared in accordance with IFRS. Adjusted net
earnings attributable to equity holders of IAMGOLD represent net
earnings attributable to equity holders excluding certain impacts, net
of taxes, such as impairments or impairment reversals of investments in
associates and marketable securities, interest expense that is
unrelated to financing working capital, foreign exchange gains or
losses, unrealized derivative gains or losses, gains or losses on sales
of assets and marketable securities, write down of receivables,
restructuring charges, changes in estimates of asset retirement
obligations at closed sites, and the impact of significant changes in
tax laws for mining taxes. These measures are not necessarily
indicative of net earnings or cash flows as determined under IFRS. The
following table provides a reconciliation of earnings before income tax
expense as per the consolidated interim statements of earnings, to
adjusted net earnings attributable to equity holders of IAMGOLD.
|
|
|
|
|
Ended September 30
|
Three months
|
Nine months
|
($ millions, except where noted)
|
2013
|
20121
|
2013
|
20121
|
Earnings before income tax expense
|
$ 50.1
|
$ 130.4
|
$ 107.0
|
$ 417.5
|
Adjusted items:
|
|
|
|
|
Impairment (impairment reversal) of investments
|
(2.5)
|
1.2
|
64.2
|
20.7
|
Interest expense on senior unsecured notes
|
2.8
|
1.2
|
15.8
|
1.2
|
Foreign exchange losses (gains)
|
2.4
|
0.9
|
3.8
|
(9.6)
|
Unrealized derivative losses (gains)
|
(7.1)
|
(17.5)
|
14.5
|
(21.3)
|
Gains on sale of marketable securities
|
(0.8)
|
(7.2)
|
(0.8)
|
(16.5)
|
Losses (gains) on sale of assets
|
-
|
0.9
|
0.2
|
(1.3)
|
Write down of receivables2
|
0.7
|
-
|
12.9
|
-
|
Restructuring charges
|
0.1
|
-
|
1.5
|
-
|
Changes in estimates of asset retirement obligations at closed sites
|
-
|
-
|
(12.5)
|
0.5
|
|
(4.4)
|
(20.5)
|
99.6
|
(26.3)
|
Adjusted earnings before income taxes and non-controlling interests
|
45.7
|
109.9
|
206.6
|
391.2
|
Income tax expense
|
(22.6)
|
(43.7)
|
(87.5)
|
(140.9)
|
Tax impact of adjusted items
|
5.3
|
2.5
|
10.2
|
3.0
|
Non-controlling interests
|
(2.2)
|
(8.7)
|
(11.7)
|
(26.5)
|
Adjusted net earnings attributable to equity holders of IAMGOLD
|
$ 26.2
|
$ 60.0
|
$ 117.6
|
$ 226.8
|
Basic weighted average number of common shares outstanding (millions)
|
376.6
|
376.2
|
376.6
|
376.1
|
Adjusted net earnings attributable to equity holders of IAMGOLD per
share ($/share)
|
$ 0.07
|
$ 0.16
|
$ 0.31
|
$ 0.60
|
Effective adjusted tax rate (%)
|
38%
|
37%
|
37%
|
35%
|
1 Balances related to 2012 have been reclassified as per note 2(c) (ii)
of the consolidated interim financial statements.
2 Includes $0.3 million and $5.4 million related to the write down of
receivables at Yatela for the three and nine months ended September 30,
2013, respectively, which are reported on the consolidated statements
of earnings in share of net earnings (losses) from investments in
associates and joint ventures, net of income taxes.
NON-GAAP PERFORMANCE MEASURES - NET CASH FROM OPERATING
ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL
The Company makes reference to a non-GAAP performance measure for net
cash from operating activities before changes in working capital and
net cash from operating activities before changes in working capital
per share. Working capital can be volatile due to numerous factors
including build-up of inventories. Management believes that, by
excluding these items, this non-GAAP measure provides investors with
the ability to better evaluate the cash flow performance of the
Company.
The following table provides a reconciliation of net cash from operating
activities before changes in working capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended September 30
|
|
|
|
Three months
|
|
|
|
Nine months
|
($ millions, except where noted)
|
|
|
|
2013
|
|
|
|
20121
|
|
|
|
2013
|
|
|
|
20121
|
Net cash from operating activities per consolidated interim financial
statements
|
|
|
$
|
64.9
|
|
|
$
|
95.8
|
|
|
$
|
202.3
|
|
|
$
|
314.6
|
Adjusting items from non-cash working capital items and non-current ore
stockpiles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables and other current assets
|
|
|
|
3.3
|
|
|
|
6.9
|
|
|
|
0.3
|
|
|
|
(4.0)
|
|
Inventories and non-current ore stockpiles
|
|
|
|
8.8
|
|
|
|
25.2
|
|
|
|
29.6
|
|
|
|
63.4
|
|
Accounts payable and accrued liabilities
|
|
|
|
(9.6)
|
|
|
|
(23.9)
|
|
|
|
18.7
|
|
|
|
(15.7)
|
Net cash from operating activities before changes in working capital
|
|
|
$
|
67.4
|
|
|
$
|
104.0
|
|
|
$
|
250.9
|
|
|
$
|
358.3
|
Basic weighted average number of common shares outstanding (millions)
|
|
|
|
376.6
|
|
|
|
376.2
|
|
|
|
376.6
|
|
|
|
376.1
|
Net cash from operating activities before changes in working capital per
share ($/share)
|
|
|
$
|
0.18
|
|
|
$
|
0.28
|
|
|
$
|
0.67
|
|
|
$
|
0.95
|
1
|
|
Balances related to 2012 have been reclassified as per note 2(c)(ii) of
the consolidated interim financial statements.
|
End Notes (excluding tables)
(1)
|
|
This is a non-GAAP measure. Please refer to the reconciliation to GAAP
above in this news release.
|
(2)
|
|
This is a non-GAAP measure. Please refer to the non-GAAP performance
measures section of the MD&A for reconciliation to GAAP.
|
(3)
|
|
The total cash costs computation does not include Westwood
pre-commercial production for the three months ended September 30, 2013
of 43,000 ounces.
|
(4)
|
|
Gold mines, as used with total cash costs and all-in sustaining costs,
consist of Rosebel, Essakane, Mouska, Sadiola and Yatela on an
attributable basis.
|
(5)
|
|
The DART rate refers to the number of days away, restricted duty or job
transfer incidents that occur per 100 employees.
|
CONFERENCE CALL
A conference call will be held on Wednesday, November 6, 2013 at 8:30
a.m. (Eastern Standard Time) for a discussion with management regarding
IAMGOLD`s third quarter 2013 operating performance and financial
results. A webcast of the conference call will be available through
IAMGOLD`s website - www.iamgold.com.
Conference Call Information: North America Toll-Free: 1-866-551-3680 or
1-212-401-6760, passcode: 46619890#.
A replay of this conference call will be available from 5:00 p.m.
November 6th to December 4th, 2013. Access this replay by dialling: North America toll-free:
1-866-551-4520 or 1-212-401-6750, passcode: 289992#.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
All information included in this news release, including any information
as to the Company's future financial or operating performance, and
other statements that express management's expectations or estimates of
future performance, other than statements of historical fact,
constitute forward looking information or forward-looking statements
and are based on expectations, estimates and projections as of the date
of this news release. For example, forward-looking statements contained
in this news release are found under, but are not limited to being
included under, the headings "Third Quarter 2013 Highlights", Operating
Highlights and Corporate Developments", and "2013 Outlook", and
include, without limitation, statements with respect to: the Company's
guidance for production, total cash costs, all-in sustaining costs,
depreciation expense, effective tax rate, niobium production and
operating margin, capital expenditures, operations outlook, cost
management initiatives, development and expansion projects,
exploration, the future price of gold, the estimation of mineral
reserves and mineral resources, the realization of mineral reserve and
mineral resource estimates, the timing and amount of estimated future
production, costs of production, permitting timelines, currency
fluctuations, requirements for additional capital, government
regulation of mining operations, environmental risks, unanticipated
reclamation expenses, title disputes or claims and limitations on
insurance coverage. Forward-looking statements are provided for the
purpose of providing information about management's current
expectations and plans relating to the future. Forward-looking
statements are generally identifiable by, but are not limited to the,
use of the words "may", "will", "should", "continue", "expect",
"anticipate", "estimate", "believe", "intend", "plan", "suggest", "guidance", "outlook", "potential", "prospects", "seek",
"targets", "strategy" or "project" or the negative of these words or
other variations on these words or comparable terminology.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management, are inherently subject to significant business, economic
and competitive uncertainties and contingencies. The Company cautions
the reader that reliance on such forward-looking statements involve
risks, uncertainties and other factors that may cause the actual
financial results, performance or achievements of IAMGOLD to be
materially different from the Company's estimated future results,
performance or achievements expressed or implied by those
forward-looking statements, and the forward-looking statements are not
guarantees of future performance. These risks, uncertainties and other
factors include, but are not limited to, changes in the global prices
for gold, niobium, copper, silver or certain other commodities (such as
diesel, aluminum and electricity); changes in U.S. dollar and other
currency exchange rates, interest rates or gold lease rates; risks
arising from holding derivative instruments; the level of liquidity and
capital resources; access to capital markets, and financing; mining tax
regimes; ability to successfully integrate acquired assets;
legislative, political or economic developments in the jurisdictions in
which the Company carries on business; operating or technical
difficulties in connection with mining or development activities; laws
and regulations governing the protection of the environment; employee
relations; availability and increasing costs associated with mining
inputs and labour; the speculative nature of exploration and
development, including the risks of diminishing quantities or grades of
reserves; adverse changes in the Company's credit rating; contests over
title to properties, particularly title to undeveloped properties; and
the risks involved in the exploration, development and mining business.
With respect to development projects, IAMGOLD's ability to sustain or
increase its present levels of gold production is dependent in part on
the success of its projects. Risks and unknowns inherent in all
projects include the inaccuracy of estimated reserves and resources,
metallurgical recoveries, capital and operating costs of such projects,
and the future prices for the relevant minerals. Development projects
have no operating history upon which to base estimates of future cash
flows. The capital expenditures and time required to develop new mines
or other projects are considerable, and changes in costs or
construction schedules can affect project economics. Actual costs and
economic returns may differ materially from IAMGOLD's estimates or
IAMGOLD could fail to obtain the governmental approvals necessary for
the operation of a project; in either case, the project may not
proceed, either on its original timing or at all.
For a more comprehensive discussion of the risks faced by the Company,
and which may cause the actual financial results, performance or
achievements of IAMGOLD to be materially different from the company's
estimated future results, performance or achievements expressed or
implied by forward-looking information or forward-looking statements,
please refer to the Company's latest Annual Information Form, filed
with Canadian securities regulatory authorities at www.sedar.com, and filed under Form 40-F with the United States Securities Exchange
Commission at www.sec.gov/edgar.html. The risks described in the Annual Information Form (filed and viewable
on www.sedar.com and www.sec.gov/edgar.html, and available upon request from the Company) are hereby incorporated
by reference into this news release.
The Company disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new information,
future events or otherwise except as required by applicable law.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with six operating gold mines (including
current joint ventures) on three continents and one of the world's top
three niobium mines. A solid base of strategic assets in Canada, South
America and Africa is complimented by development and exploration
projects and continued assessment of accretive acquisition
opportunities. IAMGOLD is in a strong financial position with extensive
management and operational expertise.
Please note:
This entire news release may be accessed via fax, e-mail, IAMGOLD's
website at www.iamgold.com and through CNW Group's website at www.newswire.ca. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué, veuillez
consulter le http://www.iamgold.com/French/Home/default.aspx.
SOURCE IAMGOLD Corporation