Stephen Letwin, the CEO and President of IAMGOLD Corp (USA)(NYSE:IAG), called 3Q2016 performance, on financial as well as operating front, excellent. Net earnings surged $102 million over a year earlier and up $29 million from 2Q2016. Attributable gold production was 7% higher compared to the second quarter, with Essakane production jumping 17%. All-in sustaining costs came at $1,046 an ounce while cash costs amounted to $714 an ounce.
IAMGOLD CEO said that the company improved cash costs projection for this fiscal by minimizing it to a range of $740 ounce to $770 an ounce with reduced operating expenses among the reason. The company projects all-in sustaining costs to come in between $1,050 an ounce and $1,100 an ounce. Since year-to-date production stands at around 600,000 ounces, the management is confident to close this year at the top range of projection.
The third quarter witnessed several positive developments. IAMGOLD signed a deal with the government of Suriname to buy the Saramacca asset near Rosebel. It is a significant achievement for company, as the data shows Saramacca could turn out to be a big source of soft rock.
Letwin added that they closed $230 million financing, and also lessen debt by 23%. They have enhanced financial capability to internally fund growth. Speaking on the growth plans, the CEO said that they are having in place a potential growth profile. By 2020, the company is targeting production of 1 million ounces with all-in sustaining costs ranging in between $900 an ounce and $950 an ounce. It will be achieved by establishing on the assets they already own. The growth measures for these assets will be funded within from the company.
Turning to the development plans from existing mines of IAMGOLD, Rosebel is improving on its luster. Grade reconciliation has enhanced and the company is witnessing the advantages of performance optimization. The development focus at Rosebel is on obtaining additional sources of soft rock, and it is the reason the deal to acquire Saramacca is the noteworthy milestone. Past exploration indicate that Saramacca gold production could be between 0.5 million ounces and 1.4 million ounces.