Key Highlights of IAMGOLD’s 2Q16 Results



Growth in revenue

IAMGOLD (IAG) produced 197,000 ounces of gold in 2Q16, a fall of 2.5% year-over-year (or YoY) but a growth of 3% sequentially. As we’ll discuss later in this series, the YoY fall was mainly due to lower production at Westwood.

IAG’s attributable gold sales were 187,000 in 2Q16, lower than production mainly due to the timing of sales. The company’s revenue amounted to $233 million in 2Q16, a 3% growth YoY.

Higher gold prices during the quarter offset lower sales volumes, which led to a growth in revenues.

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Outlook remains unchanged

The company’s production in the first half was 388,000 ounces, which is 49% of the midpoint of its full-year guidance. IAG expects the production to pick up in the second half of the year, which might even help it beat the guidance.

For now, however, it expects kept its guidance unchanged at 770,000–800,000 ounces at all-in sustaining costs of $1,000–$1,100 per ounce.

Financial highlights

IAMGOLD’s gold margins for 2Q16 were $513 per ounce, a 36% rise YoY. Its net operating cash flows, on the other hand, rose by 80% YoY to $71.2 million.

New Gold (NGD) released its 2Q16 results on July 28, 2016. Its results were a slight beat on market expectations. Eldorado Gold’s (EGO) 2Q16 results, released on July 29, were a slight miss. AngloGold Ashanti (AU), on the other hand, will release its 2Q16 results on August 15, 2016.

The Sprott Gold Miners ETF (SGDM) invests in US-listed gold miners. Investors can also get exposure to gold by investing in the iShares Gold Trust ETF (IAU) and the SPDR Gold Shares ETF (GLD), which both track gold prices.

In the next few parts of this series, we’ll discuss IAMGOLD’s mines’ performances and outlook.


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