Toronto, Canada-based gold producer,
) announced the commencement of operation at its gold processing
plant in Westwood, Quebec. IAMGOLD expects its first gold
production from the Westwood Mine by the end of March, which will
later be sold to a gold refinery by the second quarter of 2013.
IAMGOLD expects to produce roughly 140,000 ounces of gold in
2013, of which, 60,000 ounces of gold will come from the 30-year
old Mouska Mine and the remaining 80,000 ounces of gold from the
new Westwood Mine.
IAMGOLD announced a $100 million cost reduction program on Mar 4,
2013, in order to consolidate its already strong financial
position and improve its return on capital. IAMGOLD plans to
achieve this program through cost-cutting initiatives aimed at
reducing mine operating costs, exploration expenditures and mine
site and corporate general and administrative costs.
IAMGOLD has further segregated the total cost saving target (of
$100 million) in the Operations, Exploration and General and
Administrative (G&A) areas of the business. In the Operations
area, the company expects cost savings of $43 million. The
Exploration and General and Administrative at site are expected
to fetch savings of $40 million and $11 million, respectively,
whereas the Corporate G&A is expected to save $6 million in
IAMGOLD, one of the prominent gold mining companies along with
Agnico-Eagle Mines Ltd.
), released mixed fourth-quarter 2012 results last month.
The company's adjusted earnings (excluding one-time items) of
24 cents per share missed the Zacks Consensus Estimate of 27
cents. Earnings, as reported, fell to 22 cents per share from 35
cents per share a year ago due to lower revenues, higher cost of
sales, higher exploration costs and lower gains on sales of
Revenues came in at $468.4 million in the quarter, down 3%
from $481.6 million in the year-ago quarter, exceeding Zacks
Consensus Estimate of $459 million. The year-over-year decline
was due to lower volume of gold sales.
IAMGOLD expects gold production to be in the range of 875,000 to
950,000 ounces in 2013. This projection reflects lower grades at
Essakane and Rosebel, slower ramp up at Westwood and the expected
lower performance at Sadiola. The company expects total cash
costs, including royalties to increase to a range of between $850
and $925 per ounce for 2013.
IAMGOLD currently carries a short-term Zacks Rank #3
Other mining companies having favorable Zacks Rank are
Sandstorm Gold Ltd.
Seabridge Gold, Inc.
) with both carrying a Zacks Rank #2 (Buy).
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