Iamgold Q3 earnings soar to almost $65M

By The Canadian Press

TORONTO - Higher gold prices and lower production costs helped Iamgold Corp. (TSX: IMG.TO) generate record earnings in the third-quarter.

The Toronto-based miner said Wednesday it earned profits of $64.9 million or 18 cents a share in the quarter ended Sept. 30, a 245 per cent increase over the 18.8 million or 4.6 cents a share the company earned in the same quarter last year.

Revenues were $235.2 million, up four per cent from $226.9 million last year.

"Iamgold's focus on delivering shareholder value produced outstanding results in the third quarter," president and CEO Joseph Conway said in a statement.

"Gold production reached 244,000 ounces at cash costs of $457 per ounce during the quarter, driven by record production once again from our flagship Rosebel mine (in Suriname), and continued extensions at the Doyon Division in Quebec," Conway said.

"As a result, we have recently increased our 2009 production guidance to between 940,000 and 950,000 ounces, up from 880,000 in January 2009," he added.

Gold production for the quarter was 244,000 ounces at an average cash cost of $457 per ounce, compared with 253,000 ounces - 232,000 ounces excluding Sleeping Giant mine closed in late 2008 - at an average cash cost of $481 per ounce in the third quarter of 2008, Iamgold said.

Lower cash cost per ounce in the third quarter of 2009 was primarily a result of "exceptional" productivity improvements at Rosebel, combined with royalty expense savings, the company said.

Conway said the company has also accelerated production at its Essakane project in Burkina Faso, which is on schedule for commercial production in August 2010 and is expected to contribute 480,000 to 490,000 ounces of gold before the end of 2011.

Exploration activities and new projects in the quarter focused on the company's key areas, namely West Africa, Quebec, the Guiana Shield, Brazil and the northern Andean regions of South America.

Capital expenditures in the quarter were $126.2 million, with the majority relating to construction of Essakane and the Westwood development project in Quebec, and mining fleet improvements at Rosebel.

In 2009, full year capital expenditures are now projected at $422.1 million, down slightly from the previous estimate of $448.4 million.

Iamgold shares were up 14 cents at $16.26 on volume of almost 1.8 million shares at midday on the Toronto Stock Exchange.