Iamgold posts P330 million loss

Staff Writer | Tuesday February 23, 2010 00:00

The loss came after the company announced a $88,8-million non-cash impairment charge related to its Camp Caiman project, in French Guiana.

The company, which owns Mupane Gold Mines near Francistown had warned in January that fourth-quarter earnings would be impacted on by the charge. Excluding some items, adjusted net earnings rose 152 percent year-on-year, to $41,4-million, compared with 16,4-million a year earlier.

Fourth-quarter production was 234 000 oz, at an average cash cost of $488/oz, and gold sales for the period of 233 000 oz, at an average price of $1 096/oz and strong niobium sales boosted revenue to $265,3-million in the quarter, compared with $209,6-million in the same period of 2008/Iamgold produced 939 000 oz in 2009, at an average cash cost of $461/oz, compared with 997 000 oz at 459/oz in 2008.

Apart from Botswana, the company has mines in Suriname, Canada, Mali and Ghana, and is scheduled to start up a new operation, Essakane, in Burkina Faso in August. It also has development projects in Canada, Ecuador and French Guiana.

However, the French government has refused to issue permits for the Camp Caiman project in French Guiana, prompting Iamgold to record the impairment charge on the project in the fourth quarter.

This year, the company expects to produce between 940 000 oz and one-million ounces as output ramps up at the Essakane project. 'Iamgold had a very good year in terms of profitability and production,' interim CEO Peter C Jones said in a statement.

Meanwhile , the company whose CEO Joseph Conway resigned last month said they may start interviewing for a potential new chief executive in March.The company has retained a top executive search firm, which is currently putting together a 'long list' of candidates, he told analysts and investors in a conference call.

'They will have a short list, ready for interviews, they say by the beginning of March,' he reported.

The company is looking for someone with experience in overseeing properties and prior experience in running a company similar in size to Iamgold, Jones said.