TORONTO – The 27% drop in the gold price last year as well as declining sales hurt the bottom line at IamGold Corp. despite successful cost cutting measures. The company sold 740,000 oz of gold, generating revenues of $1.15 billion, but still suffered a net loss of $832.5 million or $2.21 per share in 2013. Compare those numbers to 2012 performance: 827,000 oz sold, revenues of $1.45 billion, net earnings of $334.7 million or $0.89 per share.
The company has also reported an adjusted net earnings figure of $137.3 million or $0.36 per share; however, this is a non-GAAP measure.
IamGold cut costs by $125 million last year, surpassing its target by 25%. Total cash costs were reduced at Rosebel thanks to the installation of a pebble crusher. Labour costs were cut by reducing staff and reliance on consultants. Improved dewatering, reduced truck maintenance and redesigned mine roads were also accomplished. A potable water system was installed at Essakane, eliminating the costs of bottled water. Closer to home at the Westwood mine in Quebec, fuel consumption was reduced and a tire management system implemented. Exploration expenses were cut $41 million and corporate savings of $9 million were accomplished in 2013.
IamGold also produces niobium from its Niobec mine in Quebec. It sold 4.9 million kg of niobium in 2013.
Mine-by-mine details are available at IamGold.com.