TORONTO, ONTARIO for 2007 were $57.6 million or $0.20 per
share.
- Record quarterly operating cash flow at $56.6 million; a 90%
increase over the third quarter of 2007 (excluding contribution
from working interests).
- Achieved 965,000 ounces of annual production at an average
cash cost(2) of $423 per ounce for the year. Attributable gold
production was 253,000 ounces for the fourth quarter at an average
cash cost(2) of $427 per ounce.
- Strong cash and gold bullion position of $242.5 million,
valuing gold bullion at market.
- Agreement completed to sell the Sleeping Giant mine on
closure.
- Niobec revenues for the fourth quarter of 2007 were $30.1
million and $107.8 million for the year, and operating cash flow
was $16.0 million and $48.9 million respectively in 2007.
CONSOLIDATED FINANCIAL RESULTS SUMMARY
---------------------------------------------------------------------------
Three Months Ended Year Ended
December 31, December 31,
(unaudited) 2007 2006 2007 2006
(in $000's except where noted) $ $ $ $
---------------------------------------------------------------------------
Adjusted net earnings(1) 14,401 10,748 57,568 74,063
Net earnings (loss) 8,498 9,367 (42,060) 72,481
Basic and diluted adjusted net
earnings(1) per share 0.05 0.04 0.20 0.40
Basic and diluted net earnings
(loss) per share 0.03 0.04 (0.14) 0.39
Operating cash flow 56,627 (4,740) 117,129 75,211
Gold produced (000 oz - IMG share) 253 221 965 642
Cash cost ($/oz - IMG share)(2) 427 367 423 321
Gold Proven and Probable Resources
(000 oz - IMG share)(3) 7,975 9,696
Average realized gold price ($/oz) 787 619 693 607
---------------------------------------------------------------------------
(1) Adjusted net earnings and adjusted net earnings per share are non-GAAP
measures and represents net earnings (loss) without the impairment
charge accounted for in 2007. Please refer to Supplemental Information
attached to the MD&A for a reconciliation to GAAP.
(2) Cash cost per ounce is a non-GAAP measure. Please refer to Supplemental
Information attached to the MD&A for a reconciliation to GAAP.
(3) Refer to detailed information in the reserves and resources section of
the IAMGOLD website.
"On completing the integration of acquisitions from 2006, we now
have a stronger platform to continue to grow the business", said
Joseph Conway, President and CEO. "We also enhanced our management
team with the addition of key senior personnel with international
experience and proven track records in the industry. I am very
pleased with the achievement of meeting production and cost targets
at a time when many other in the industry have had less success.
While we were disappointed with the loss for the year, we delivered
a record operating cash flow and we have made significant progress
at our operations and most of our development projects. We will
continue to focus on progressing our development and exploration
projects, meeting production and cost targets and improving our
share price performance."
FINANCIAL RESULTS AND POSITION
Adjusted net earnings for 2007 were $57.6 million or $0.20 per
share, compared to adjusted net earnings of $74.1 million or $0.39
per share for 2006. Including impairment charges, the net loss for
the year was $42.1 million or $0.14 per share compared to net
earnings of $72.5 million or $0.39 per share for 2006. During 2007
impairment charges of $93.7 million and $5.9 million were recorded
related to the Mupane mine and the Doyon division respectively. The
value of our Mupane mine was recognized as a result of the decline
in the cash flows expected to be generated over the life of the
mine. Adjusted net earnings before impairment charges is a non-GAAP
measure. Please refer to the supplemental information attached to
the MD&A for the summarized calculation and reconciliation to
GAAP.
Adjusted net earnings for 2007 were below 2006 as a result of
cost pressures and the impact of acquisition purchase accounting.
In 2007, the Company successfully completed the transition from
non-operator to operator and created the necessary infrastructure
to support its multi-national operations. Exploration expenditures
increased as a result of the significant opportunities identified
within the Company's portfolio.
Adjusted net earnings for the fourth quarter of 2007 were $14.4
million or $0.05 per share, compared to adjusted net earnings of
$10.7 million or $0.04 per share in the fourth quarter of 2006. The
Company's depreciation expense increased by $3.5 million or $0.01
per share during the quarter due to the finalization of the Cambior
purchase equation. The Company was also required to fair value its
tax assets and liabilities which resulted in an $7.3 million or
$0.02 per share non-cash future tax expense being recorded during
the quarter.
Net earnings for the fourth quarter of 2007 were $8.5 million or
$0.03 per share, compared to net earnings of $9.4 million or $0.04
per share in the fourth quarter of 2006. An impairment charge of
$5.9 million or $0.02 per share was recorded in the fourth quarter
of 2007 related to resource development costs at the Doyon
division.
Cash flow from operating activities for the fourth quarter of
2007 were $56.6 million compared to cash flows used in operating
activities of $4.7 million for the same period in 2006. The
increase in the fourth quarter of 2007 is a result of higher
revenues following the acquisitions and gold price increases. This
was partially offset by higher operating costs of $40.8 million,
higher corporate and exploration expenses by $2.8 million and $1.7
million respectively, and a positive change in non-cash working
capital of $19.2 million. Niobec revenues for the fourth quarter of
2007 were $30.1 million and $107.8 million for the year. The Niobec
contribution to operating cash flow was $16.0 million in the fourth
quarter of 2007 and $48.9 million for the year. Cash flow from
operating activities for the complete year in 2007 were $117.1
million compared to $75.2 million in 2006.
IAMGOLD's policy has been to hold gold bullion to increase
shareholder value through the appreciation of gold. During 2007,
the Company's gold bullion holdings increased by 6,250 ounces to
154,954 ounces. The year over year appreciation of the value of
these ounces price equated to approximately $0.12 per share. The
Company continues to maintain a strong balance sheet. Cash and cash
equivalents, short-term deposits and gold bullion position totaled
$242.5 million as at December 31, 2007 with gold bullion valued at
market compared to $218.3 million at the end of 2006. For
accounting purposes, gold bullion is valued at cost in the
Company's consolidated balance sheet.
MINING COSTS AND PRODUCTION
The annual production of 965,000 ounces was in line with the
August revised guidance of 970,000 ounces for the year but lower
than the original guidance of 1,000,000 ounces. The primary reasons
for the slight shortfall were the heavier than normal rainfall
levels in Mali and Ghana lowering recovery and total tonnage
processed at the Sadiola mine, and fewer tonnes stacked and
processed at Tarkwa, and equipment availability at the Mupane mine.
This was partially offset by gains at the Rosebel, Yatela and
Sleeping Giant mines.
In 2007, the gold mining industry experienced a challenging year
facing cost pressures related to higher labour, fuel and
maintenance costs. According to the GFMS's 2007 Gold Survey (a
precious metal consultant), worldwide average cash costs have
increased 24% over the first nine months of 2007, and reached over
$400 per ounce in the third quarter of 2007.
Consolidated gold production cash costs were $423 per ounce in
2007, compared to $321 per ounce in 2006. This was in line with our
mid-year guidance for 2007 of $420 per ounce. The year over year
increase was mainly due to higher costs associated with royalties,
supplies, fuel and labour used in production. The increase in gold
price was favorable in terms of higher revenues reported, but the
gold price also increased royalty expenses by $13 per ounce which
are included in mining costs. The weakening of the US dollar
compared to Canadian dollar also increased cash costs for Canadian
based operations by approximately $7 per ounce.
Production and cash costs for the fourth quarter of 2007 were
253,000 ounces at $427 per ounce compared to 221,000 ounces and
$367 per ounce for the fourth quarter in 2006.
COSTS REDUCTION INITIATIVES
The Company has implemented numerous cost reduction initiatives
throughout the organization, including the following:
- Mill optimization and expansion programs at Rosebel
- New copper flotation circuit at Doyon
- Renegotiation of the mining contract and installation of a new
mill motor and oxygen plant at Mupane
- Installation of a gravity concentrator at Sadiola
- Process improvements to increase metallurgical recovery at
Niobec
Unit costs are a primary focus for the Company and other
continuous improvement initiatives at all levels are also being
implemented.
RECENT EVENTS
On October 9, 2007, an option agreement has been signed with
Cadiscor Resources Inc. ("Cadiscor"), granting them the right to
purchase the Sleeping Giant mine after the completion of mining and
processing for total consideration of up to C$7.0 million.
On January 31, 2008, the Government of France announced that it
would not grant the permits necessary to commence construction of
the Camp Caiman project. This was despite the fact that the Company
had fulfilled all of the technical, environmental and legal
requirements. On March 13, 2008, IAMGOLD met the President of
France. The President agreed to further dialogue regarding the
Company's interests in the region and to consider all reasonable
alternatives for mining projects which the Company may propose in
the future. All existing exploration permits remain in effect. The
Company continues to explore all development opportunities as well
as available remedies.
On February 6, 2008, the Company announced an $18.4 million
investment to expand the Rosebel mill. This expansion, in
conjunction with the mill optimization investment announced in
2007, allows for an increase in the annual life of mine production
from approximately 275,000 ounces per year to 300,000 -305,000
ounces per year and a reduction in direct cash costs of
approximately $35 per ounce over the life of mine. This is expected
to increase the annual mill throughput from 8.0 million tonnes of
ore to 8.9 million tonnes while adding sufficient operational
flexibility to increase throughput by a further 15% to 25% should
mine site and economic conditions support the use of the excess
capacity. The mill expansion eliminates the need for stockpiles,
and through the installation of extra leach tanks to increase
residence time, will boost metallurgical recovery from 94% to 95%.
Rosebel management are continuing with the review of a mine fleet
expansion to effectively utilize the excess mill capacity. The
investment planned in 2008 will improve production and lower cash
costs in 2009.
In March 2008, the Company issued 928,962 flow-through shares to
finance the Westwood project totaling C$8.5 million which will have
to be spent in 2008.
In February 2008, a joint venture interest related to the
Nyakafuru project in Tanzania was sold for $6.0 million. In
addition, a royalty of $10 per ounce is payable for each additional
gold resource ounce discovered above the current resource base, up
to a maximum royalty payment of $3.75 million.
OUTLOOK
IAMGOLD's attributable share of gold production in 2008 from the
actual operating mines is expected to be 920,000 ounces of gold at
a cash cost between $455 and $470 per ounce, including royalties
based on a forecast gold price of $700 per ounce, a $90 per barrel
of oil and a Canadian/US dollar exchange rate of 1.05.
Changes in these assumptions may have a material impact on cash
costs, financial position, and overall results of operations. The
sensitivity to a $100 per ounce rise in the gold price would
increase royalty expenses included in cash costs by approximately
$10 per ounce. Fuel is a key cost driver as it is used in
production during extraction and processing of ore, and, to
generate electric power for some operations. A $10 per barrel
change in oil prices could cause a change in cash costs of
approximately $6 per ounce. The Company operates three gold mines
in Canada and therefore a change in the Canadian/US exchange rate
by 10% would have an impact on cash costs of approximately $8 per
ounce.
In the Company's niobium mine, demand for ferroniobium, a
strengthening element used in the manufacturing of specialty steel
alloys, continues to increase, supported by growth in China, high
demand for pipeline steels, and favourable economic conditions.
Demand is expected to remain strong for at least the next two
years. Ferroniobium prices have increased to record levels during
2007 and continue to rise.
The Company will continue to focus on increasing reserves and
production organically and through acquisitions, as well as
focusing on containing and reducing cash costs at existing
operations.
Acquisitions opportunities will focus on economic returns,
including the ability to decrease the Company's long-term cost
structure. The investment criteria will be to increase production
by at least 75,000 to 100,000 ounces per annum, have demonstrated
exploration potential, and a geographic fit with the Company's
existing profile.
A conference call to review the Corporation's fourth quarter
results will take place on Friday, March 28, 2008 at 11:00 a.m.
EST. Local call-in number: 416-644-3414 and N.A. toll-free:
1-800-733-7571. This conference call will also be audiocast on our
website (www.iamgold.com).
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission (the "SEC")
permits mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms
in this press release, such as "mineral resources" , that the SEC
guidelines strictly prohibit us from including in our filings with
the SEC. U.S. investors are urged to consider closely the
disclosure in the IAMGOLD Annual Report on Form 40-F. A copy of the
2006 Form 40-F is available to shareholders, free of charge, upon
written request addressed to the Investor Relations Department.
Forward Looking Statement
This press release includes certain "Forward-Looking Statements"
within the meaning of section 21E of the United States Securities
Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included herein, including without
limitation, statements regarding potential mineralization and
reserves, exploration results and future plans and objectives of
IAMGOLD, are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from IAMGOLD's expectations are disclosed under the
heading "Risk Factors" and elsewhere in IAMGOLD documents filed
from time-to-time with the Toronto Stock Exchange, the United
States Securities and Exchange Commission and other regulatory
authorities.
To view the Management's Discussion and Analysis, please click
the following link:
http://media3.marketwire.com/docs/imgmda0328.pdf
To view the Financial Statements, please click the following
link:
http://media3.marketwire.com/docs/imgafs0328.pdf
A replay of this conference call will be available from 1:00
p.m. March 28 to April 4, 2008 by dialing local: 416-640-1917,
passcode: 2126086# and N.A. toll-free: 1-877-289-8525, passcode:
2126086#. A replay will also be available on IAMGOLD's website.
SUPPLEMENTAL INFORMATION TO THE MANAGEMENT'S DISCUSSION AND
ANALYSIS
NON-GAAP PERFORMANCE MEASURES
ADJUSTED NET EARNINGS
Adjusted net earnings and adjusted net earnings per share are
non-GAAP financial measures and represents net earnings (loss)
before impairment charges. Management believes that these measures
better reflect the Company's performance for the current period and
are a better indication of its expected performance in future
periods. Adjusted net earnings and adjusted net earnings per share
are intended to provide additional information, but do not have any
standardized meaning prescribed by GAAP and should not be
considered in isolation or a substitute for measures of performance
prepared in accordance with GAAP. These measures are not
necessarily indicative of net earnings (loss) or cash flows as
determined under GAAP. The following table provides a
reconciliation of adjusted net earnings to net earnings (loss) as
per the consolidated statement of earnings.
---------------------------------------------------------------------------
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Adjusted net earnings 14,401 10,749 57,568 74,063
Impairment charge-Mupane - - (93,725) -
Impairment charge-Doyon
development costs (5,903) - (5,903) -
Impairment charge-Other - (1,382) - (1,582)
---------------------------------------------------------------------------
Net earnings (loss) 8,498 9,367 (42,060) 72,481
---------------------------------------------------------------------------
CASH COSTS
The Company's MD&A often refers to cash costs per ounce, a
non-GAAP performance measure in order to provide investors with
information about the measure used by management to monitor
performance. This information is used to assess how well the
producing gold mines are performing compared to plan and prior
period, and also to assess the overall effectiveness and efficiency
of gold mining operations. "Cash cost" figures are calculated in
accordance with a standard developed by The Gold Institute, which
was a worldwide association of suppliers of gold and gold products
and included leading North American gold producers. The Gold
Institute ceased operations in 2002, but the standard is still an
accepted standard of reporting cash costs of gold production in
North America. Adoption of the standard is voluntary and the cost
measures presented herein may not be comparable to other similarly
titled measures of other companies. Costs include mine site
operating costs such as mining, processing, administration,
royalties and production taxes, but are exclusive of amortization,
reclamation, capital, development and exploration costs. These
costs are then divided by ounces of gold produced to arrive at the
total cash costs per ounce. The measure, along with sales, is
considered to be a key indicator of a company's ability to generate
operating earnings and cash flow from its mining operations.
These gold cash costs differ from measures determined in
accordance with GAAP. They are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP. These measures are not necessarily indicative of net earnings
or cash flow from operations as determined under GAAP.
The following table provides a reconciliation of total cash
costs per ounce produced for gold mines to the mining costs,
excluding depreciation, depletion and amortization as per the
consolidated statement of earnings.
-------------------------------------------------------------------------
Operating Gold Mines
-------------------------------------------------------------------------
Doyon Sleeping
Rosebel Division Giant Mupane
-------------------------------------------------------------------------
Fourth quarter ended
December 31, 2007
Mining costs, excluding
depreciation, depletion
and amortization 31,805 16,304 7,120 10,274
Adjust for:
By-product credit (26) (887) (189) (6)
Stock movement 818 3,463 277 978
Accretion expense (1,096) (496) 252 498
Foreign exchange,
interest and other 1,468 (203) 121 (1,050)
Cost attributed to
non-controlling interest (1,648) - - -
-------------------------------------------------------------------------
(484) 1,877 461 420
-------------------------------------------------------------------------
Cash costs - operating
mines 31,321 18,181 7,581 10,694
Cash costs - working
interests (3)
-------------------------------------------------------------------------
Total cash costs including
working interests
-------------------------------------------------------------------------
Gold production -
operating mines
(000 oz) (4) 77 34 18 23
Gold production - working
interests (000 oz) (3)
-------------------------------------------------------------------------
Total gold production
including working
interests (000 oz) (4)
-------------------------------------------------------------------------
Total cash costs ($/oz) 403 529 418 482
-------------------------------------------------------------------------
Others
--------------------------------------------------------------------------
Sadiola Yatela Total (1) Total (2)
--------------------------------------------------------------------------
Fourth quarter ended
December 31, 2007
Mining costs, excluding
depreciation, depletion
and amortization 17,544 8,052 91,099 23,080 114,179
Adjust for:
By-product credit (34) (14) (1,156)
Stock movement 14 - 5,550
Accretion expense (143) (363) (1,348)
Foreign exchange, interest
and other (1,044) (2,653) (3,361)
Cost attributed to
non-controlling interest - - (1,648)
--------------------------------------------------------------------------
(1,207) (3,030) (1,963)
--------------------------------------------------------------------------
Cash costs - operating mines 16,337 5,022 89,136
Cash costs - working
interests(3) 18,786
--------------------------------------------------------------------------
Total cash costs including
working interests 107,922
--------------------------------------------------------------------------
Gold production -
operating mines
(000 oz)(4) 40 22 214
Gold production - working
interests (000 oz)(3) 39
--------------------------------------------------------------------------
Total gold production
including interests
(000 oz) (4) 253
--------------------------------------------------------------------------
Total cash costs ($/oz) 406 231 427
--------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating Gold Mines
-------------------------------------------------------------------------
Doyon Sleeping
Rosebel Division Giant Mupane
-------------------------------------------------------------------------
Fourth quarter ended
December 31, 2006
Mining costs, excluding
depreciation, depletion
and amortization 20,290 10,787 3,528 11,390
Adjust for:
By-product credit (51) (162) (95) -
Stock movement (3,084) 80 (110) 1,333
Accretion expense (22) (214) (24) -
Foreign exchange, interest
and other (530) (90) (47) 23
Cost attributed to
non-controlling interest (830) - - -
-------------------------------------------------------------------------
(4,517) (386) (276) 1,356
-------------------------------------------------------------------------
Cash costs - operating mines 15,773 10,401 3,252 12,746
Cash costs - working
interests(3)
-------------------------------------------------------------------------
Total cash costs including
working interests
-------------------------------------------------------------------------
Gold production -
operating mines
(000 oz)(4) 38 23 8 24
Gold production - working
interests (000 oz)(3)
-------------------------------------------------------------------------
Total gold production including
working interests (000 oz)(4)
-------------------------------------------------------------------------
Total cash costs ($/oz) 415 444 433 538
-------------------------------------------------------------------------
---------------------------------------------------------------------------
Others
---------------------------------------------------------------------------
Sadiola Yatela Total (1) Total (2)
---------------------------------------------------------------------------
Fourth quarter ended
December 31, 2006
Mining costs, excluding
depreciation, depletion
and amortization 12,041 7,078 65,114 8,236 73,350
Adjust for:
By-product credit - - (308)
Stock movement 410 304 (1,067)
Accretion expense 535 184 459
Foreign exchange,
interest and other 1,565 429 1,350
Cost attributed to
non-controlling interest - - (830)
---------------------------------------------------------------------------
2,510 917 (396)
---------------------------------------------------------------------------
Cash costs - operating
mines 14,551 7,995 64,718
Cash costs - working
interests(3) 15,983
---------------------------------------------------------------------------
Total cash costs including
working interests 80,701
---------------------------------------------------------------------------
Gold production -
operating mines
(000 oz)(4) 50 34 177
Gold production - working
interests (000 oz)(3) 44
---------------------------------------------------------------------------
Total gold production
including interests
(000 oz) (4) 221
---------------------------------------------------------------------------
Total cash costs ($/oz) 293 234 367
---------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating Gold Mines
-------------------------------------------------------------------------
Doyon Sleeping
Rosebel Division Giant Mupane
-------------------------------------------------------------------------
Year ended December 31, 2007
Mining costs, excluding
depreciation, depletion
and amortization 124,762 67,761 24,650 49,554
Adjust for:
By-product credit (149) (2,504) (794) (225)
Stock movement 1,757 6,104 857 (1,199)
Accretion expense (1,208) (1,645) (950) (506)
Foreign exchange, interest and other (446) (437) 135 (686)
Cost attributed to non-controlling
interest (6,236) - - -
-------------------------------------------------------------------------
(6,282) 1,518 (752) (2,616)
-------------------------------------------------------------------------
Cash costs - operating mines 118,480 69,279 23,898 46,938
Cash costs - working interests (3)
-------------------------------------------------------------------------
Total cash costs including working
interests
------------------------------------------------------------------------
Gold production - operating mines
(000 oz) 263 131 67 86
Gold production - working interests
(000 oz) (3)
------------------------------------------------------------------------
Total gold production including
working interests (000 oz)
------------------------------------------------------------------------
Total cash costs ($/oz) 452 528 358 548
------------------------------------------------------------------------
Others
---------------------------------------------------------------------------
Sadiola Yatela Total (1) Total (2)
---------------------------------------------------------------------------
Year ended December 31, 2007
Mining costs, excluding
depreciation, depletion
and amortization 59,279 29,787 355,793 70,694 426,487
Adjust for:
By-product credit (99) (67) (3,838)
Stock movement (1,382) (304) 5,833
Accretion expense (272) (261) (4,842)
Foreign exchange, interest
and other (1,195) (3,004) (5,633)
Cost attributed to
non-controlling interest - - (6,236)
---------------------------------------------------------------------------
(2,948) (3,636) (14,716)
---------------------------------------------------------------------------
Cash costs - operating mines 56,331 26,151 341,077
Cash costs - working
interests(3) 67,155
---------------------------------------------------------------------------
Total cash costs including
working
interests 408,232
---------------------------------------------------------------------------
Gold production - operating
mines
(000 oz) 140 120 807
Gold production - working
interests
(000 oz) (3) 158
---------------------------------------------------------------------------
Total gold production including
working interests (000 oz) 965
---------------------------------------------------------------------------
Total cash costs ($/oz) 401 217 423
---------------------------------------------------------------------------
------------------------------------------------------------------------
Operating Gold Mines
------------------------------------------------------------------------
Doyon Sleeping
Rosebel Division Giant Mupane
------------------------------------------------------------------------
Year ended December 31, 2006
Mining costs, excluding
depreciation, depletion
and amortization 20,290 10,787 3,528 30,998
Adjust for:
By-product credit (51) (162) (95) -
Stock movement (3,084) 80 (110) 419
Accretion expense (22) (214) (24) -
Foreign exchange, interest and other (530) (90) (47) (184)
Cost attributed to non-controlling
interest (830) - - -
------------------------------------------------------------------------
(4,517) (386) (276) 235
------------------------------------------------------------------------
Cash costs - operating mines 15,773 10,401 3,252 31,233
Cash costs - working interests(3)
------------------------------------------------------------------------
Total cash costs including working
interests
------------------------------------------------------------------------
Gold production - operating mines
(000 oz) 38 23 8 65
Gold production - working interests
(000 oz)(3)
------------------------------------------------------------------------
Total gold production including
working interests (000 oz)
------------------------------------------------------------------------
Total cash costs ($/oz) 415 444 433 483
------------------------------------------------------------------------
---------------------------------------------------------------------------
Others
---------------------------------------------------------------------------
Sadiola Yatela Total (1) Total (2)
---------------------------------------------------------------------------
Year ended December 31, 2006
Mining costs, excluding
depreciation, depletion
and amortization 49,925 29,560 145,088 8,237 153,325
Adjust for:
By-product credit - - (308)
Stock movement 467 (226) (2,454)
Accretion expense 608 742 1,090
Foreign exchange, interest
and other 709 1,448 1,306
Cost attributed to
non-controlling
interest - - (830)
--------------------------------------------------------------------------
1,784 1,964 (1,196)
--------------------------------------------------------------------------
Cash costs - operating mines 51,709 31,524 143,892
Cash costs - working
interests(3) 62,042
--------------------------------------------------------------------------
Total cash costs including
working
interests 205,934
--------------------------------------------------------------------------
Gold production - operating
mines (000 oz) 190 141 465
Gold production - working
interests (000 oz)(3) 177
--------------------------------------------------------------------------
Total gold production including
working interests (000 oz) 642
--------------------------------------------------------------------------
Total cash costs ($/oz) 273 224 321
--------------------------------------------------------------------------
(1) Non-gold, Exploration and development, and Corporate segments.
(2) As per consolidated statement of earnings
(3) Related to working interests: Tarkwa and Damang mines.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(United States Dollars in 000s)
--------------------------------------------------------------------------
December 31, 2007 December 31, 2006
--------------------------------------------------------------------------
$ $
ASSETS
Current Assets:
Cash and cash equivalents 113,265 124,325
Short-term deposits - 39
Gold bullion (market value $129,193;
2006 $93,981) 53,982 49,012
Receivables and other current assets 77,221 65,942
Inventories 89,230 61,325
Current assets held for sale - 17,924
--------------------------------------------------------------------------
333,698 318,567
--------------------------------------------------------------------------
Other long-term assets 88,416 83,844
Working interests 112,478 87,086
Royalty interests 34,835 39,786
Mining assets 1,023,961 1,050,664
Exploration and development 225,473 200,588
Goodwill 361,648 464,975
Other intangible assets 15,103 -
Long-term assets held for sale - 33,166
--------------------------------------------------------------------------
1,861,914 1,960,109
--------------------------------------------------------------------------
2,195,612 2,278,676
--------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities 127,672 119,741
Dividends payable 17,625 17,570
Current portion of long-term
liabilities 32,430 69,960
Current liabilities relating to
assets held for sale - 9,240
--------------------------------------------------------------------------
177,727 216,511
--------------------------------------------------------------------------
Long-term liabilities:
Long-term debt 5,696 9,625
Future income and mining tax
liability 157,956 185,015
Asset retirement obligations 77,506 39,933
Accrued benefit liability 6,360 6,321
Long-term portion of forward sales
liability 10,472 28,346
Long-term liabilities relating to
assets held for sale - 15,862
--------------------------------------------------------------------------
257,990 285,102
--------------------------------------------------------------------------
Non-controlling interest 8,579 3,712
--------------------------------------------------------------------------
Shareholders' equity:
Common shares 1,633,119 1,625,994
Stock-based compensation 20,034 19,153
Warrants 24,391 24,403
Share purchase loans - (295)
Retained earnings 49,553 108,932
Accumulated other comprehensive
income (loss) 24,219 (4,836)
--------------------------------------------------------------------------
1,751,316 1,773,351
--------------------------------------------------------------------------
2,195,612 2,278,676
--------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(United States Dollars in 000s, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
-------------------------------------------------------------------------
$ $ $ $
Revenues 194,246 121,250 678,131 303,345
Expenses:
Mining costs, excluding
depreciation, depletion and
amortization 114,179 73,350 426,487 153,325
Depreciation, depletion and
amortization 38,063 19,229 117,581 50,084
-------------------------------------------------------------------------
152,242 92,579 544,068 203,409
-------------------------------------------------------------------------
42,004 28,671 134,063 99,936
Earnings from working interests 7,872 6,303 25,392 28,874
-------------------------------------------------------------------------
49,876 34,974 159,455 128,810
-------------------------------------------------------------------------
Other expenses (income):
Corporate administration 9,825 7,050 33,513 18,119
Exploration 9,740 8,036 28,446 15,213
Impairment charges 5,903 1,382 99,628 1,582
Interest expense 153 727 1,309 727
Foreign exchange 700 (216) 1,911 (55)
Non-hedge derivative loss (gain) 202 76 (549) 76
Investment income (2,334) (914) (5,884) (4,219)
Non-controlling interest 1,004 210 1,764 210
-------------------------------------------------------------------------
25,193 16,351 160,138 31,653
-------------------------------------------------------------------------
Earnings (loss) before income and
mining taxes 24,683 18,623 (683) 97,157
-------------------------------------------------------------------------
Income and mining taxes:
Current taxes 2,199 5,990 26,958 22,504
Future taxes 13,986 3,359 14,419 2,265
-------------------------------------------------------------------------
16,185 9,349 41,377 24,769
-------------------------------------------------------------------------
Net earnings (loss) from continuing
operations 8,498 9,274 (42,060) 72,388
Net earnings from discontinued
operations, net of tax - 93 - 93
-------------------------------------------------------------------------
Net earnings (loss) 8,498 9,367 (42,060) 72,481
-------------------------------------------------------------------------
Weighted average number of common
shares outstanding (000's)
Basic 293,715 241,729 293,284 186,485
Diluted 294,581 243,525 293,284 187,655
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic and diluted net earnings
(loss) from continuing operations
per share 0.03 0.04 (0.14) 0.39
Basic and diluted net earnings
(loss) per share 0.03 0.04 (0.14) 0.39
-------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(United States Dollars in 000s)
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
--------------------------------------------------------------------------
$ $ $ $
Net earnings (loss) 8,498 9,367 (42,060) 72,481
--------------------------------------------------------------------------
Other comprehensive income (loss),
net of tax:
Cumulative translation adjustment
Unrealized gain on translating
financial statements of net
investment in self-sustaining
foreign operations 3,020 (4,836) 29,883 (4,836)
--------------------------------------------------------------------------
Change in unrealized gains (losses)
on available-for-sale financial assets
Unrealized gains (losses) on
available-for-sale financial
assets 595 - (3,544) -
Reclassification adjustment for gains
and losses included in net
earnings/loss 5 - 1,444 -
--------------------------------------------------------------------------
600 - (2,100) -
--------------------------------------------------------------------------
Total other comprehensive income, net
of tax 3,620 (4,836) 27,783 (4,836)
--------------------------------------------------------------------------
Comprehensive income (loss) 12,118 4,531 (14,277) 67,645
--------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(Unaudited)
(United States Dollars in 000s)
--------------------------------------------------------------------------
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
--------------------------------------------------------------------------
$ $ $ $
Retained earnings, beginning of
period 58,480 117,135 108,932 54,021
Change in accounting policies,
related to financial
instruments 200 - 306 -
--------------------------------------------------------------------------
Restated balance, beginning of period 58,680 117,135 109,238 54,021
Net earnings (loss) 8,498 9,367 (42,060) 72,481
Dividends (17,625) (17,570) (17,625) (17,570)
--------------------------------------------------------------------------
Retained earnings, end of period 49,553 108,932 49,553 108,932
--------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(United States Dollars in 000s)
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
--------------------------------------------------------------------------
$ $ $ $
Operating activities:
Net earnings (loss) from continuing
operations 8,498 9,274 (42,060) 72,388
Disbursement in defined benefit
plans (197) (7,168) (2,285) (7,168)
Items not affecting cash:
Impairment charges 5,903 1,582 99,628 1,582
Earnings from working interests, net
of dividends (7,872) (6,304) (25,392) (19,424)
Depreciation, depletion and
amortization 35,885 19,085 117,581 50,084
Amortization of forward sales
liability (6,004) (3,871) (34,935) (11,322)
Future income and mining taxes 13,986 3,359 14,419 2,265
Stock-based compensation 295 778 2,855 3,016
Non-hedge derivative losses (gains) 203 76 (549) 76
Gain on sales of assets (637) 68 (1,527) (1,284)
Unrealized foreign exchange losses
(gains) 1,913 (1,275) 2,735 (622)
Accretion expenses - asset
retirement obligations, net of
disbursements 5,059 195 8,002 609
Future benefit expense 127 - 340 -
Non-controlling interest 1,004 210 1,764 210
Change in non-cash working capital (1,537) (20,749) (23,447) (15,119)
--------------------------------------------------------------------------
56,627 (4,740) 117,129 75,211
--------------------------------------------------------------------------
Investing activities:
Short-term deposits (16,183) 11,870 39 4,897
Mining assets (35,705) (11,138) (96,959) (15,012)
Exploration and development (4,899) (4,364) (23,179) (10,802)
Long-term ore stockpiles (9,586) 4,743 (9,586) (11,219)
Other assets (4,303) (758) (653) (2,829)
Note receivable - - - 4,475
Distributions received from working
interests - 6,276 - 25,100
Gold bullion royalties and gold
receivable - 3,875 - 3,718
Proceeds from sale of assets 1,047 999 15,251 14,849
Transaction costs and settlement of
options, net of cash
acquired from GGL and Cambior (173) 2,366 (173) (877)
--------------------------------------------------------------------------
(69,202) 13,869 (115,260) 12,300
--------------------------------------------------------------------------
Financing activities:
Proceeds from loan - 9,031 7,500 9,031
Repayment of long-term debt (3,644) (3,520) (36,694) (26,350)
Issue of common shares, net of issue
costs 596 1,939 5,089 11,524
Share purchase loan 295 - 295 -
Dividends paid - - (17,570) (8,870)
Repurchase of call options - - - (3,363)
--------------------------------------------------------------------------
(2,753) 7,450 (41,380) (18,028)
--------------------------------------------------------------------------
Net increase (decrease) in cash and
cash equivalents from
continuing operations (15,328) 16,579 (39,511) 69,483
Increase (decrease) in cash and cash
equivalents from
discontinued operations - - 28,451 (1,579)
--------------------------------------------------------------------------
Net increase (decrease) in cash and
cash equivalents (15,328) 16,579 (11,060) 67,904
Cash and cash equivalents, beginning
of period 128,593 107,746 124,325 56,421
--------------------------------------------------------------------------
Cash and cash equivalents, end of
period 113,265 124,325 113,265 124,325
--------------------------------------------------------------------------
Supplemental cash flow information:
Interest paid 169 (2,005) 1,400 665
Income and mining taxes paid 20,428 20,121 43,992 25,240
--------------------------------------------------------------------------
Please note:
This entire press release may be accessed via fax, e-mail,
IAMGOLD's website at www.iamgold.com and through Marketwire's
website at www.marketwire.com. All material information on IAMGOLD
can be found at www.sedar.com or at www.sec.gov.
Si vous desirez obtenir la version francaise de ce communique,
veuillez consulter le http://www.iamgold.com/fr/accueil.html.
Contacts: IAMGOLD Corporation: Lisa Doddridge Director, Investor
Relations (416) 360-4710 or Toll Free: 1-888-IMG-9999 Website:
www.iamgold.com Renmark Financial Communications Inc. John Boidman
(514) 939-3989 (514) 939-3717 (FAX) Email:
jboidman@renmarkfinancial.com Renmark Financial Communications Inc.
Henri Perron (514) 939-3989 (514) 939-3717 (FAX) Email:
hperron@renmarkfinancial.com Website: (514) 939-3717
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