All amounts are expressed in US dollars,
unless otherwise indicated.
TORONTO, June 29, 2015 /CNW/ - IAMGOLD
Corporation ("IAMGOLD" or the "Company") announces that
following an intensive review of the impact of a localized seismic
event that took place on May 26, 2015
at the Company's Westwood Mine in Quebec, IAMGOLD remains confident in the
long-term viability of the mine. In the short-term, however,
the Company's Q2 2015 production is expected to be slightly below
the production of 208,000 ounces in Q1 2015 and this has led to a
downward revision of the Company's production guidance to a range
of 780,000 to 815,000 ounces for 2015. Although the cost
impact is still being assessed, the lower production guidance is
expected to adversely impact Westwood's production costs.
The review confirmed the Westwood mine's positive attributes of:
- a continued ability to operate following the May seismic
event;
- an average grade of measured and indicated resources of over 11
g/t gold, as previously disclosed (see news release dated
February 18, 2015);
- its anticipated long mine life of approximately 20 years;
- an exploration upside;
- location in the prolific Abitibi region of Quebec;
- the potential to be IAMGOLD's lowest cost mine when ramped up
to full production;
- excellent reconciliation on grade, recovery and dilution;
and
- a strong mine management and workforce with over 30 years of
experience at Westwood's
predecessor mines: Doyon and Mouska.
IAMGOLD's President and CEO, Steve
Letwin said, " Safety is our number one
priority. We and the other companies mining underground
in the region know that this district is prone to seismic activity
and we are taking the necessary measures to keep our excellent
safety record intact. Westwood is still in its infancy and similar
to mines in the area, we expect it to have growing pains as we gain
operational experience in this mining environment.
"Our current focus is to invest further in the development of
the mine to ensure a safe operation and to optimize Westwood's long-term production profile.
A recent visit by investors and my own visit to Westwood last week have strengthened my
confidence that we have the experience and the quality of mine
management in place to develop Westwood's high grade potential to become our
lowest cost mine and a strong contributor to IAMGOLD's long-term
future."
GOLD PRODUCTION GUIDANCE FOR 2015
The initial assessment of the May seismic event was inconclusive
regarding the impact of the event on annual production for
Westwood and, therefore, guidance
was not changed at that time. Further investigation has
shown that the extent of the seismic event will have a more
significant impact on 2015 production than originally
indicated.
Full-year production guidance for Westwood was originally provided as a range
from 110,000 to 130,000 ounces of gold and that range has now been
changed to 60,000 to 75,000 ounces of gold. This
adjustment is slightly offset by the expectation of an additional
10,000 ounces of attributable gold production from the Company's
joint venture mines in Mali.
The impact of these two adjustments to the Company's
attributable annual production guidance is a net reduction of
40,000 ounces or 4.9% to the bottom end of the range and 45,000
ounces or 5.2% to the top end of the guidance range.
The revised guidance for attributable gold production for 2015, as
shown on the following table, is now a range of 780,000 to 815,000
ounces.
|
|
|
|
IAMGOLD 2015
Guidance
|
New
|
Previous
|
|
Rosebel (000s
oz)
|
290 -
300
|
290 -
300
|
|
Essakane (000s
oz)
|
360 -
370
|
360 -
370
|
|
Westwood (000s
oz)
|
60 -
75
|
110 -
130
|
|
Total owner-operator
production (000s oz)
|
710 –
745
|
760 -
800
|
|
Joint ventures (000s
oz)
|
70
|
60
|
|
Total attributable
production (000s oz)
|
780 -
815
|
820 -
860
|
|
|
|
|
|
The Westwood team, working with
external experts, have commenced an action plan to complete the
analysis of the seismic event and have put together a
rehabilitation and recovery plan for the zones affected.
Mining continues in the unaffected areas.
Qualified Persons
The technical information in this
news release was reviewed by Craig
MacDougall, P.Geo., Senior Vice President, Exploration for
IAMGOLD. Mr. MacDougall is a Qualified Person as defined by
National Instrument 43-101.
CAUTIONARY STATEMENT ON
FORWARD-LOOKING
INFORMATION
All information included in this news
release, including any information as to the Company's future
financial or operating performance, and other statements that
express management's expectations or estimates of future
performance, other than statements of historical fact, constitute
forward looking information or forward-looking statements and are
based on expectations, estimates and projections as of the date of
this news release. For example, forward-looking statements
contained in this news release are found under, but are not
limited to being included under, the headings "2015 Production and
Cost Guidance, 2015 Capital Expenditure Forecast and 2015
Exploration Plan", and include, without limitation, statements with
respect to: the Company's guidance for production, total cash
costs, all-in sustaining costs, depreciation expense, effective tax
rate, capital expenditures, operations outlook, cost management
initiatives, development and expansion projects, exploration, the
future price of gold, the estimation of mineral reserves and
mineral resources, the realization of mineral reserve and mineral
resource estimates, the timing and amount of estimated future
production, costs of production, permitting timelines,
currency fluctuations, requirements for additional capital,
government regulation of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage. Forward-looking statements
are provided for the purpose of providing information about
management's current expectations and plans relating to the future.
Forward-looking statements are generally identifiable by, but are
not limited to the, use of the words "may", "will", "should",
"continue", "expect", "anticipate", "assumption", "forecast",
"estimate", "believe", "intend", "plan", "suggest",
"guidance", "outlook", "potential", "prospects", "seek", "targets",
"strategy" or "project" or the negative of these words or other
variations on these words or comparable terminology.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
Company cautions the reader not to place any reliance whatsoever on
forward-looking information or forward-looking statements. Forward-
looking information and forward-looking statements involve
risks, uncertainties and other factors that may cause the actual
financial results, performance or achievements of IAMGOLD to be
materially different from the Company's estimated future results,
performance or achievements expressed or implied by those
forward-looking statements, and the forward-looking statements are
not guarantees of future performance. These risks, uncertainties
and other factors include, but are not limited to, changes in the
global prices for gold, copper, silver or certain other commodities
(such as diesel and electricity); changes in U.S. dollar and other
currency exchange rates, interest rates or gold lease rates; risks
arising from holding derivative instruments; the level of liquidity
and capital resources; access to capital markets, and financing;
mining tax regimes; ability to successfully integrate acquired
assets; legislative, political or economic developments in the
jurisdictions in which the Company carries on business; operating
or technical difficulties in connection with mining or development
activities; laws and regulations governing the protection of the
environment; employee relations; availability and increasing costs
associated with mining inputs and labour; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of reserves; adverse changes in the Company's
credit rating; contests over title to properties, particularly
title to undeveloped properties; and the risks involved in the
exploration, development and mining business. With respect to
development projects, IAMGOLD's ability to sustain or increase its
present levels of gold production is dependent in part on the
success of its projects. Risks and unknowns inherent in all
projects include the inaccuracy of estimated reserves and
resources, metallurgical recoveries, capital and operating costs of
such projects, and the future prices for the relevant minerals.
Development projects have no operating history upon which to base
estimates of future cash flows. The capital expenditures and time
required to develop new mines or other projects are considerable,
and changes in costs or construction schedules can affect project
economics. Actual costs and economic returns may differ materially
from IAMGOLD's estimates or IAMGOLD could fail to obtain the
governmental approvals necessary for the operation of a project; in
either case, the project may not proceed, either on its original
timing or at all.
For a more comprehensive discussion of the risks faced by the
Company, and which may cause the actual financial results,
performance or achievements of IAMGOLD to be materially different
from the company's estimated future results, performance or
achievements expressed or implied by forward-looking information or
forward-looking statements, please refer to the Company's latest
Annual Information Form, filed with Canadian securities regulatory
authorities at www.sedar.com, and filed under Form 40-F with the
United States Securities Exchange Commission at
www.sec.gov/edgar.shtml. The risks described in the Annual
Information Form (filed and viewable on www.sedar.com and
www.sec.gov/edgar.shtml, and available upon request from the
Company) are hereby incorporated by reference into this news
release.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise except as required by
applicable law.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four
operating gold mines on three continents. A solid base of strategic
assets in North and South America
and West Africa is complemented by
development and exploration projects and continued assessment of
accretive acquisition opportunities. IAMGOLD is in a strong
financial position with extensive management and operational
expertise.
Please note:
This entire news release may be accessed via fax, e-mail, IAMGOLD's
website at www.iamgold.com and through CNW Group's website at
www.newswire.ca. All material information on IAMGOLD can be found
at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué,
veuillez consulter le
http://www.iamgold.com/French/Home/default.aspx.
SOURCE IAMGOLD Corporation