The Gold Report - Fri, May 12, 2017

IAMGOLD's Gross Profit Increases 438% in Q1

Among the Q1/17 financial results that IAMGOLD released were a 12% increase in gold production and a 438% gain in gross profits.

Stacks of gold coins

On May 9, IAMGOLD Corp. (IMG:TSX; IAG:NYSE) reported first quarter gross profits of $35 million, an increase of $28 million from Q1/16. The company also reported gold production of 214,000 ounces, a 23,000-ounce gain from the same quarter last year.

"It was an outstanding quarter," said Steve Letwin, president and CEO of IAMGOLD. "Gold production increased by 12% as all owner-operator sites recorded increases. Notably, Westwood doubled its production over the preceding year. Gross profit rose by 438% to $35 million due to higher sales volume and a slight increase in realized gold prices. Net operating cash flow also increased, and we strengthened our balance sheet by reducing our debt and extending the maturity date to 2025."

This news was noted by a pair of analysts. David Haughton with CIBC stated that IAMGOLD is continuing its positive momentum: "IAMGOLD reported a solid Q1 with adjusted EPS of $0.01, beating both our estimate of $0.00 and consensus of $-0.01. The beat in earnings was attributed to better cost performance across the key operations (except Sadiola), and higher production from Essakane and Westwood (on higher throughput)."

According to Haughton, "the good start to the year should be positively received, and continues to build on the positive momentum from last year."

Andrew Kaip, an analyst with BMO Capital Markets, noted that IAMGOLD's production was "slightly above our expectations. . .operating cash flow of $68M was above our estimate of $55M, while free cash flow of $22M was also ahead of our forecast for ($12M)."

Kaip also noted that "on the development front, the Cote Gold PFS is progressing and IAG continues to expect the delivery of the study to be completed by late Q2/17."

1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsor of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click below for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

Sign-up at (or for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or to post at our Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from is subject to the terms of our Privacy Policy and Disclaimer.

comments powered by Disqus

Detailed Quote Portal

symbol lookup | (TSX add :ca)

Membership Privileges

  • Investors Guru Small Cap Stock Observer - newsletter emailed monthly!
  • Featured Stock Profiles - emailed on occasion!
  • News by Email - as it's released, according to your My Preferences!
  • My Portfolio - login to view or update your holdings, or have it emailed daily!
  • My Watchlist & Alerts - login to view or update your stock radar list, and set price triggers for email alerts!
  • Bulletin Boards - no need to request boards, just Quote it! Social Sign-on & Share your ideas, observations & trends!
  • Find it all! Find it Fast! Comprehensive stock research webpages. No more endless clicking!

Email: (see Privacy Policy)
Password: (4-15 characters)
Username: (4-15, BB posts etc)

unsubscribe anytime

Bookmark and Share

 Subscribe in a reader

Our Mobile Site