- Shares in Iamgold (IMG) have climbed almost six per cent this morning after the company released its financial results for the third quarter of 2020
- Revenue grew from US$274.4 million (approximately C$358.6 million) in 2019 to a total of US$335.1 million (approximately C$438 million) this year
- Gross profit also grew to US$78.1 million (approximately C$102 million) compared to US$22.8 million (approximately C$29.8 million) in the same period last year
- Despite the strong results, the company has withdrawn both its production and capital expenditure guidance and expects to release new estimates in early 2021
- Iamgold (IMG) is currently up 5.96 per cent to C$4.98 per share
Shares in Iamgold (IMG) have climbed almost six per cent this morning after the company released its financial results for the third quarter of 2020.
For the three months ending September 30, 2020, the Toronto-based mining company generated US$335.1 million (approximately C$438 million), representing a 22 per cent increase compared to last year’s same-period total of US$274.4 million (approximately C$358.6 million).
The improved performance was largely due to a higher realised gold price, as well as higher sales volumes from its Essakane and Westwood operations. However, any further increase was held back by a decline in sales at the company’s Rosebel site.
Similarly, gross profit also grew to US$78.1 million (approximately C$102 million) compared to US$22.8 million (approximately C$29.8 million) in the third quarter of 2019.
Gordon Stothart, President and CEO of Iamgold, said the company performed well despite the challenging circumstances.
“In the quarter, we successfully completed our new bond issuance, lowering our interest costs, extending the maturity to 2028 and enhancing our financial flexibility with a cash balance of approximately US$900 million [approximately C$1.1 billion].
“This cash position, along with access to our largely undrawn US$500 million [around C$653.5 million] credit facility, brings our total liquidity to over US$1.4 billion [approximately C$1.84 billion], enabling us to cover our portion of Côté’s capital expenditures,” he added.
Gordon also noted that fourth quarter production will be underpinned by Essakane, as well as Saramacca’s contribution to Rosebel. This comes after an apparent seismic incident at Westwood earlier this week, which resulted in the suspension of operations.
Milling activities at Westwood are expected to resume in the next few days, while underground operations will remain closed for the time being.
Iamgold elected to withdraw both its production and capital expenditure guidance, with new estimates anticipated to be released early next year.
Iamgold (IMG) is currently up 5.96 per cent to C$4.98 per share at 11:24am EST.
