) along with its subsidiary, Rosebel Gold Mines (RGM), will
develop and operate a solar power project in Suriname. The
project with an installed capacity of 5 megawatts will cost
IAMGOLD around $12 million to $14 million, including site access
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IAMGOLD is fulfilling a prior commitment to the Government of
Suriname through this green project. The deal had chopped the
company's power costs. The project started commercial production
The solar power project is slated to be operational from the
beginning of the third quarter of 2014. The Solar Project will be
managed and operated by Rosebel Gold Mines. The equipment will be
connected to the local power grid.
During the course of mining for gold, the transition process from
soft rock to harder rock deposits requires a higher amount of
power to crush and grind the ore. This solar project will
help meet the mine's requirement and lower RGM's operating costs,
while freeing up existing power capacity for use by other
customers in Suriname.
IAMGOLD had reported big drops in third-quarter revenues and
earnings, due to lower prices for gold and higher operating
costs. Net earnings plunged 68% to $25.3 million or 7 cents per
share in the quarter. Revenues fell 13% to $293.5 million from
$336.2 million as lower gold prices were only partially offset by
a higher volume of sales.
Reducing energy costs will provide a boost to IAMGOLD' margins.
Given that some South American countries have high solar
irradiance levels along with limited grid infrastructure,
partnerships of this kind between mining companies and
governments could be useful to assist long-term development in
mining and energy sphere. Furthermore, with increasing energy
costs, it is a wise move to shift to renewable energy sources.
IAMGOLD currently maintains a Zacks Rank #3 (Hold). Some
better-ranked stocks in the mining-gold sector include
Golden Star Resources, Ltd.
Agnico Eagle Mines Ltd.
AngloGold Ashanti Ltd.
). While Golden Star Resources carries a Zacks Rank #1 (Strong
Buy), Agnico Eagle and Agnico Eagle hold a Zacks Rank #2