IAMGOLD Q2 Loss Narrows, Miss Estimates - Update

(RTTNews) - Canadian gold producer IAMGOLD Corp. (IAG, IMG.TO), said Wednesday its second-quarter loss narrowed from last year, when it incurred one-time charges. Meanwhile revenue for the quarter dropped, hurt by lower gold sales volumes and prices, and operating costs for the yellow metal escalated.

IAMGOLD said its average realized gold price for the quarter dropped to $1,288 per ounce from $1,373 per ounce last year, and gold sales volume slipped to 192 thousand ounces from 201 thousand ounces.

Also weighing on results were cost of sales that rose by $37.5 million to $246.3 million.

The company had to contend with lower gold production in the quarter, due to poor grades at Rosebel mine stemming from harsh rainy season as well as weak output from the aging Mouska mine.

To return to growth, CEO Steve Letwin said the company is focused on improving efficiency and productivity across all operations.

IAMGOLD posted quarterly net loss to equity holders of $16 million or $0.04 per share, versus a loss of $28.4 million or $0.08 per share last year.

Results for the quarter included derivative gains of about $2 million, while the prior year recorded impairment charges of $39 million.

Excluding items, adjusted earnings for the quarter were $0.02 per share, compared with $0.08 per share in the prior year.

On average, 16 analysts polled by Thomson Reuters expected earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter slid to $288.6 million from $301 million last year, while analysts expected $274.6 million.

IAMGOLD stock closed Wednesday at $3.85, up $0.04 or 1.05%, on a volume of 5 million shares on the New York Stock Exchange. In Toronto, the stock closed at C$4.20, up C$0.03 or 0.72%.