IAMGOLD Corporation has reported its unaudited consolidated financial and operating results for the third quarter ended September 30, 2012. Revenues were $386.8 million compared to $431.9 million in the third quarter 2011.
Net earnings from continuing operations (attributable to equity holders) increased by 56% to $78.0 million ($0.21 per share) from $50.0 million ($0.13 per share) in the third quarter 2011.
Excluding items not indicative of underlying operating performance, adjusted net earnings1 (attributable to equity holders) were $60.2 million ($0.16 per share) compared to $112.4 million ($0.30 per share) in the third quarter 2011. This was due mainly to lower gold sales, including 12,000 ounces produced late in the quarter and sold in October, and higher exploration expenses. Operating cash flow1 before changes in working capital was $114.3 million ($0.30 per share) compared to $174.1 million ($0.46 per share) for the third quarter 2011.
President and CEO Steve Letwin commented, “We are performing well at the mines we own and operate. Year-to-date production and cash costs at these operations, which account for 85% of our production, are on target. In contrast, the performance of the mines not operated by us was disappointing and places us at the lower end of our production guidance. This clearly demonstrates the benefits of re-positioning our company to better leverage our expertise as operators.
“In many ways,” continued Mr. Letwin, “we’re ahead of the curve. We have a much more geo-politically balanced asset profile than we did a year ago and a solid pipeline of exploration and development projects. We are prudent about managing our capital spending, and with some of our expansion projects getting off to a later start this year, we’ve reduced our capital expenditure guidance for 2012. We have the capital available to fund a robust portfolio of projects with attractive rates of return. With gold production commencing at our Westwood project in the first quarter of next year, a pre-feasibility study at Côté Gold underway and expansion projects in West Africa, South America and Canada, we expect to nearly double production within five years.”