TORONTO – IamGold says it has begun a program to reduce annual spending by US$100 million. Costs will be cut at operating mines, exploration projects, and across-the-board corporate and administrative venues.
The company said the cuts are necessary to preserve its financial position and improve its return on capital. IamGold ended 2012 with over US$1 billion in cash and gold bullion.
While improving operating efficiency and containing costs are ongoing priorities, IamGold has targeted cost reductions across all aspects of its global operations. These cost reductions will counter the cost pressure from inflation and an increasing amount of hard rock at Essakane and Rosebel. The higher proportion of hard rock at these operations increases the demand for power to grind and crush the ore.
President and CEO Steve Letwin said, “Our assault on costs will continue until we have exhausted all possible opportunities to reduce spending. Our management team is fully focused on meeting this goal and intends to report on our progress as we move forward.”
Information about IamGold’s five operating gold mines and a niobium producer is available at IamGold.com.