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Iamgold (IAG) Posts Earnings in Q1, Sales Increase Y/Y

Iamgold Corp . IAG posted loss of $18 million or 4 cents per share in the first quarter of 2017, compared with a profit of $53.1 million or 13 cents recorded a year ago.

Barring one-time items, adjusted earnings came in at a penny per share for the quarter, compared with a loss of 2 cents a year ago. Earnings compared favorably with the Zacks Consensus Estimate of a loss of 2 cents.

Sales rose roughly 18.6% year over year to $260.5 million in the first quarter 2017. Sales benefitted from increased sales volume at Westwood, Rosebel and Essakane and a higher realized gold price.

Iamgold Corporation Price, Consensus and EPS Surprise

Iamgold Corporation Price, Consensus and EPS Surprise | Iamgold Corporation Quote

Operational Performance

Attributable gold production was 214,000 ounces for the quarter, up 12% year over year. Cost of sales was $225.5 million in the reported quarter, up 5.7% due to higher operating costs, higher depreciation and higher royalty expense. Margin per gold equivalent ounce sold was $464, up 5% year over year.

All-in sustaining costs fell to $992 per ounce in the quarter from $1,084 per ounce a year ago.

Financial Review

Net cash from operating activities was $68.3 million, up 32.9% from $51.4 million in the prior-year quarter. Cash and cash equivalents and restricted cash was $1,184.7 million for the reported quarter.

Outlook

The company expects gold production in 2017 to be 845,000 to 885,000 ounces. Also, total cash cost is expected to be between $740 and $780 per ounce. All-in sustaining cost is anticipated between $1,000 and $1,080 an ounce. Capital expenditures is expected to be around $250 million.

Price Performance

Iamgold has outperformed the Zacks categorized Mining-Gold industry in the last six months. The company's shares returned around 16% over this period, compared with roughly 10% gain recorded by the industry.

Zacks Rank & Key Picks

Iamgold currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the basic material space include BASF SE BASFY , The Chemours Company CC and Kronos Worldwide Inc KRO . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

BASF has expected long-term growth of 8.6%.

Chemours has expected long-term growth of 15.5%.

Kronos has expected long-term growth of 5%.

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BASF SE (BASFY): Free Stock Analysis Report

Kronos Worldwide Inc (KRO): Free Stock Analysis Report

Chemours Company (The) (CC): Free Stock Analysis Report

Iamgold Corporation (IAG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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