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IAMGOLD misses on 3Q earnings and revenue as production falters; confirms outlook

The mining company maintains full-year guidance on gold production and costs of gold sales
gold bars
IAMGOLD is a mid-tier mining company with four operating gold mines on three continents.

IAMGOLD Corp (TSX:IMG) (NYSE:IAG) reported a miss in third-quarter earnings per share and revenue because of lower production and pressure on margins, but the company reiterated its guidance for 2018 on gold output and the cost of sales.

The company said EPS came in at a loss of $0.01, against the consensus expectation of a gain of $0.01 and last year's gain of $0.07. Revenue reached $244.8 million, compared with $260.5 million in the same period a year ago and the consensus it would reach $301.19 million.

Gold production for the quarter stood at 208,000 ounces of gold, down 9,000 ounces from the same period in 2017. Gold sales hit 202,000 ounces, off by 8,000 ounces. The cost of sales reached $858/ounce of gold, up $63/ounce from the third quarter of last year.

READ: DRDGOLD eyes expansion of metals output in 2019 as it seeks to reduce risks and costs

"We maintain our full-year 2018 guidance for production of 850,000 to 900,000 attributable ounces and guidance for cost of sales of $765 to $815 per ounce, total cash costs of $750 to $800 per ounce produced, and all-in sustaining costs of $990 to $1,070 per ounce sold," said Steve Letwin, the president and CEO of IAMGOLD.

"As anticipated, the third quarter was weaker than the first half of the year with the gold margin under pressure and production at Rosebel (mine) on the lighter side," he said.

Shares of the company were off 2.2% at $3.55 in Wednesday's premarket in New York, after closing on Tuesday down 2.42% at $3.63. 

IAMGOLD is a mid-tier mining company with four operating gold mines on three continents.

A solid base of strategic assets in North and South America and West Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities.

The company is based in Toronto, Canada.

Reporting by Rene Pastor, contactable on [email protected] 

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