GOLD NEWS

IAMGOLD Q1 earnings almost triple on high gold price

Mid tier gold miner, IAMGOLD's Q1 earnings rose sharply as its new Essakane mine came on stream. Production outlook for current year cut on proposed sale of Ghana mines.

Posted: Thursday , 12 May 2011

REUTERS - 

Canadian mid-tier gold miner Iamgold Corp's first-quarter earnings almost tripled as it started production at its West African Essakane mine in Burkina Faso.

The company, however, cut its gold production outlook for the year to 950,000-1.05 million ounces, from its prior view of 1.1-1.2 million ounces, to reflect the proposed sale of its interest in two of its mines in Ghana.

January-March earnings rose to $162.3 million, or 41 cents a share, from $60.2 million, or 15 cents a share, a year ago.

Toronto-based Iamgold, which has mines in Canada, South America and Africa, posted an 80 percent rise in revenue at $432.5 million.

Adjusted earnings were 36 cents a share.

Analysts on average expected earnings of 32 cents a share on revenue of $410.4 million, according to Thomson Reuters I/B/E/S.

Quarterly gold production was 290,000 attributable ounces at a cash cost of $570-$580 per ounce.

Last month, Iamgold had agreed to sell its 18.9 percent interest in the Tarkwa and Damang gold mines in Ghana to Gold Fields , the world's fourth-largest gold producer, for $667 million in cash.

Shares of the miner closed at C$18.59 on Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Saumyadeb Chakrabarty)

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