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Be the first with the news that moves the market- IAMGOLD (IMG) has successfully boosted profits in its latest quarterly report, despite COVID-19 related suspensions at its mining operations
- The company was forced to suspend its Westwood and Rosebel mining operations leading to a quarterly production of just 155,000 gold ounces, a 29,000 drop compared to the previous corresponding period
- Despite the drop in production, the company’s gross profit jumped to $56.3 million compared to just $6.6 million in last year’s same quarter
- IAMGOLD attributed the strong profits to decreases in operational costs and resulting higher revenues
- IAMGOLD (IMG) is down 1.4 per cent and is trading at C$6.80 per share
IAMGOLD (IMG) has successfully boosted profits in its latest quarterly report, despite COVID-19 related suspensions at its mining operations.
The company had its Westwood and Rosebel mines suspended during the quarter, with operations resuming on April 15 and July 24, respectively.
Despite the suspension, the company still managed to produce 155,000 gold ounces for the quarter, only slightly down on last year’s June quarter production of 184,000 ounces.
However due to significantly lower operating costs, the company posted larger revenues and improved profits for the quarter.
Quarterly revenue went from $246.5 million last year to $284.6 million this year, and the cost of sales jumped from $239.9 million last year to $228.3 million this year.
The higher revenue translated to $56.3 million in a gross profit for the quarter, significantly up from $6.6 million in last year’s corresponding period.
The CEO of IAMGOLD Gordon Stothart said this quarter delivered solid operating results, despite the effects of the COVID-19 pandemic.
“During the quarter, we have taken significant, proactive steps at each of our operations to establish protocols enabling us to deliver on our long-term strategy, while prioritising the health and safety of our workforce and host communities.
“Our strong financial position, with over $860 million in cash and short term investments, coupled with operating cash flows from our existing mines, enable us to take this important step forward executing on our best-in-class growth pipeline,” he said.
IAMGOLD (IMG) is down 1.4 per cent and is trading at $6.90 per share at 10:00 am EDT.
