Gold miner Iamgold this week released year end results that showed record increases in both revenues and gold production.
According to the company results for the full year ended 2008, revenues went up 28 percent to $869.6 million ( P 6 783 million ) while the outfit that operates a mine outside Francistown also announced an eighth straight annual dividend, totalling US $17.7 million.
Joseph Conway, the Chief Executive Officer of the company listed on the Toronto Stock Exchange (TSX), New York Stock Exchange (NYSE) and the Botswana Stock Exchange (BSE) said they are looking at establishing the company as a high quality operator.
“2008 was an outstanding year in terms of operational results achieving record revenues and record operating cash flow. Gold production exceeded guidance for 2008 while cash costs were on plan,” revealed Conway.
“We are very proud of the safety performance achieved by employees in 2008. Iamgold has taken the next step to establish itself as a high quality operator with a strong and effective management team.”
He added that the acquisition in early 2009 of the Essakane property in West Africa will expand the company’s resource base and further demonstrate the expertise in construction and development, in a region where they have been engaged for nearly 20 years.
However, the net loss for the full year was US $9.9 million, including a non-cash impairment charge of US $117.4 million, primarily related to the Buckreef project in Tanzania.
The net loss in 2007 was US $ 42.1 million, including an impairment charge of US $99.6 million for the Mupane property.
“Financial position remains very strong at year end with cash and cash equivalents (net of bank debt) and gold bullion at market of US $219 million, together with availability under a line of credit of US $80 million,” the company stated.
Meanwhile, the company stated that it was in record gold production of 997,000 ounces exceeding the January 2008 original projection by 8 percent with cash costs for 2008 at US $ 459 per ounce in line with January 2008 guidance.
To bolster its production output, Iamgold has acquired Orezone Resources Inc. (Essakane project), one of West Africa’s largest undeveloped gold properties. The transaction is expected to close on February 25, 2009.
Therefore, the gold reserves increased by 20 percent or 1.6 million ounces to 9.6 million ounces, which more than replaces the depletion in 2008.
A further 3.1 million ounces will be added to reserves with the Orezone Resources Inc. acquisition.
On the other hand, the Niobium reserves increased by 36 percent, to 137,800 tonnes, which represents an 18-year mine life at current production rates.
The company has also acquired 84.55 percent of the common shares of Euro Resources last year.