Key Highlights of IAMGOLD’s 3Q16 Results



Growth in revenue

IAMGOLD (IAG) produced 210,000 ounces of gold in 3Q16, a rise of 7% year-over-year (or YoY) and quarter-over-quarter. We’ll discuss the production at each of its sites separately later in the series.

IAG’s attributable gold sales were 212,000 in 3Q16, slightly higher than its production, mainly due to the sale of gold contained in carbon at Essakane. The company’s revenue amounted to $282 million in 3Q16, an impressive rise of 36% YoY.

Higher gold prices and higher production at IAG’s Westwood, Essakane, and Rosebel mines led to this top line growth.

Article continues below advertisement

Hoping to achieve higher end guidance

The company’s production in the first nine months of 2016 was 598,000 ounces. The company is confident in achieving the higher end of its production guidance of 770,000–800,000 ounces in 2016. IAG had earlier guided for stronger production in the second half of the year.

Financial highlights

IAMGOLD’s gold margin for 3Q16 was $612 per ounce, up $282 per ounce YoY. Its net operating cash flow, on the other hand, was $126.6 million, compared to just $9.8 million in 3Q15.

New Gold (NGD) released its 2Q16 results on October 27, 2016. Its results slightly beat market expectations. Eldorado Gold’s (EGO) 2Q16 results, released on October 27, were a slight miss. AngloGold Ashanti (AU) will release its 3Q16 results on November 14, 2016.

The Sprott Gold Miners ETF (SGDM) invests in US-listed gold miners. Investors can also gain 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 outlooks.


More From Market Realist