IamGold to sell Niobec mine

President and chief executive Steve Letwin of IamGold (TSX: IMG) told the Denver Gold Forum that he is confident the company can sell its Niobec mine in Quebec within the next six to 12 months for about $500 million after taxes.

"We've had this asset for sale aggressively for the last six to 12 months, and I would tell you that my optimism for us being able to sell it is very high," he said, adding that he estimates "we should be able to have put this to bed" within the next six months.

The mining executive conceded that Niobec is IamGold's "best performing mine" and a "great asset" that throws off about $100 million to $110 million in EBITDA a year yet has modest sustaining capital costs of between US$25 and US$30 million a year.

But he said the challenge is that it would cost the company about $750 million to extend the mine life beyond its current eight years.

Read the complete article at NorthernMiner.com/news/iamgold-to-sell-niobec