IAMGOLD Corp (NYSE:IAG) not really going anywhere profitable
IAMGOLD Corp (NYSE:IAG) reported a net loss in the Q2 and also announce that it had achieved 55% of the planned cost cuts. IAG officials said that they had achieved more than half of the estimated savings for the year. Consequently, they have reduced their guidance on the production cost of gold.
In the meantime, the company is also right on track with starting on commercial production at the Westwood mine located in Quebec, this fall. IAG is not the only gold miner to report a loss in the quarter. Almost all other Big North American companies have reported a net loss in the Q2 last week. Impairment charges and low prices of gold were the major culprits of the dismal performance.
The Q2 figures
IAG reported a net loss of $28.4M or 8 cents/share in comparison to the $52.9m net or 14 cents/share, net earnings that were reported in the same quarter, last year. The impairment charges were inclusive of $16.1M which was related to the drop in marketable-securities values and the $23.2m for equity-account investments in INV Metals and Glane Gold. The adjusted net earnings stood at $30.2M or 8 cents/share in comparison to the $75.3M or 20 cents for the same quarter in 2012.
Adjusted net earnings were $30.2 million, or 8 cents a share, compared to $75.3 million, or 20 cents, for the same quarter of 2012.Iamgold reported second-quarter revenue of $301.1 million that was down $63.4 million in the same period a year ago. The low sales volume was attributed to the lower output at Rosebel in Suriname and Essakane in Burkina.
There was difference between the production and sales timing. The company reported an operating-margin of $586/ounce for gold in the Q2 which was down from the $856 that it stood at, last year. The average realized-price of the yellow metals dropped from $1,593 to $1,373.