IAMGOLD’s Gross Profit Increases 438% in Q1

Source: The Gold Report   05/12/2017

Among the Q1/17 financial results that IAMGOLD released were a 12% increase in gold production and a 438% gain in gross profits.

On May 9, IAMGOLD Corp. (IMG:TSX; IAG:NYSE) reported first quarter gross profits of $35 million, an increase of $28 million from Q1/16. The company also reported gold production of 214,000 ounces, a 23,000-ounce gain from the same quarter last year.

“It was an outstanding quarter,” said Steve Letwin, president and CEO of IAMGOLD. “Gold production increased by 12% as all owner-operator sites recorded increases. Notably, Westwood doubled its production over the preceding year. Gross profit rose by 438% to $35 million due to higher sales volume and a slight increase in realized gold prices. Net operating cash flow also increased, and we strengthened our balance sheet by reducing our debt and extending the maturity date to 2025.”

This news was noted by a pair of analysts. David Haughton with CIBC stated that IAMGOLD is continuing its positive momentum: “IAMGOLD reported a solid Q1 with adjusted EPS of $0.01, beating both our estimate of $0.00 and consensus of $-0.01. The beat in earnings was attributed to better cost performance across the key operations (except Sadiola), and higher production from Essakane and Westwood (on higher throughput).”

According to Haughton, “the good start to the year should be positively received, and continues to build on the positive momentum from last year.”

Andrew Kaip, an analyst with BMO Capital Markets, noted that IAMGOLD’s production was “slightly above our expectations. . .operating cash flow of $68M was above our estimate of $55M, while free cash flow of $22M was also ahead of our forecast for ($12M).”

Kaip also noted that “on the development front, the Cote Gold PFS is progressing and IAG continues to expect the delivery of the study to be completed by late Q2/17.”

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( Companies Mentioned: IMG:TSX; IAG:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17439

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