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IAMGOLD’s 4Q17 Earnings: The Major Highlights

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IAG’s revenue growth

IAMGOLD (IAG) generated revenues of $1.10 billion in 2017, which is growth of 11% year-over-year (or YoY). Higher sales volumes at Westwood, Essakane, and Rosebel—along with higher realized prices—led to this increase. More specifically, Westwood accounted for ~75% of the increase, as sales from the mine nearly doubled from the previous year. IAG’s attributable gold production was 882,000 ounces for 2017, 8.5% higher than 2016. Revenues in 4Q17 were also up by an impressive 15% YoY.

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IAG’s financial highlights

The company’s gold (GLD) margin for 2017 was $506 per ounce, $1 per ounce higher than the previous year. IAG’s net operating cash flow for 4Q17 was $65 million, which is slightly higher than 4Q16. The cash flow in 2017 totaled $295 million. Net earnings attributable to equity holders came in at $501.6 million, or $1.08 per share, which was higher than its earnings of $449 million or $0.95 per share in 2016. The increase was mainly due to impairment reversals and higher gross profit.

Peer New Gold (NGD) released its 4Q17 earnings on February 20. Its earnings per share of $0.06 beat market expectations by $0.05. Revenue of $193.5 million, on the other hand, missed estimates by $34 million. On January 17, Eldorado Gold (EGO) released in-line production results and suspended its dividends. Yamana Gold (AUY) reported its 4Q17 results on February 16, a miss on market expectations.

In the next few articles of this series, we’ll analyze the performance of IAMGOLD’s mines.

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