TSX: IMG NYSE: IAG
All amounts are expressed in U.S. dollars, unless otherwise indicated.
Refer to the annual Management Discussion and Analysis (MD&A) and
audited consolidated Financial Statements for more information.
TORONTO, Feb. 20, 2013 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") today reported consolidated financial and
operating results for the year and fourth quarter ending December 31,
2012. Revenues of $1.7 billion for 2012 were virtually flat with the
prior year, as margins rose slightly to $952 an ounce. Net earnings
from continuing operations attributable to equity holders were $334.7
million ($0.89 per share) in 2012 compared to $391.3 million ($1.04 per
share) in 2011. Excluding items not indicative of underlying operating
performance, adjusted net earnings attributable to equity holders1 were $316.9 million ($0.84 per share) compared to $405.7 million ($1.08
per share) in 2011. The year-over-year earnings decline is the result
of lower gold production and higher operating costs and increased
exploration expenses, partly offset by higher gold prices. Operating
cash flowbefore changes in working capital1 was $504.0 million ($1.34 per share) compared to $656.7 million ($1.75
per share) in the previous year.
For the fourth quarter 2012, adjusted net earnings1, excluding items not indicative of underlying operating performance,
were $90.3 million ($0.24 per share), down 16% from the fourth quarter
2011. Operating cash flow before changes in working capital1 was $130.1 million ($0.35 per share) compared to $190.1 million ($0.51
per share) in the same prior year period.
"Operating performance was solid, but it needs to be better." said
President and CEO, Steve Letwin. "Despite the lower grades at our core
gold assets and the disappointing performance at our joint venture
operations, we achieved a level of production that wasn't too far off
the mark. Cash costs were in line with our latest guidance for 2012,
but the outlook for 2013 reflects the challenges of mining and
processing an increasing proportion of hard rock, particularly on the
power side. We have a lot of work to do. Our recent share price is not
acceptable, and we are determined to improve performance.
"We have to be more innovative in our assault on costs. This requires
day-to-day cost containment along with big steps, such as our landmark
deal with the Government of Suriname to partner with them to target
satellite resources beyond the current concession at a significantly
reduced power rate. Beyond 2013, which I'd characterize as a
transitional year, we should see an operational reset - including the
ramp-up at Westwood, the winding down of Mouska and Yatela, and the
throughput expansion for hard rock processing at Essakane which should
improve economies of scale.
"Reducing the unit costs associated with mining an increasing proportion
of hard rock requires an investment in capacity expansion," continued
Mr. Letwin, "but we will not commit capital to projects, such as the
throughput expansion at Rosebel, unless we're confident they can meet
our targeted returns on investment. While we've moved the vast majority
of the resource from inferred to indicated in only six months at Côté
Gold, we won't need development capital there for another two years.
Our financial position remains strong with $1 billion in cash and
bullion and nearly $2 billion in liquidity."
FOURTH QUARTER 2012 HIGHLIGHTS
Financial Performance
-
Revenues in the fourth quarter 2012 were $468.4 million, down 3% from
the fourth quarter 2011. The decline was mainly due to a lower volume
of gold sales.
-
Cost of sales for the fourth quarter 2012 was $259.9 million, up 2% from
the same prior year period due to the increasing cost of consumables
and the impact of maturing ore deposits, partially offset by lower
costs arising from lower production volumes.
-
Net earnings attributable to equity holders were $84.6 million ($0.22
per share), down 37% from $133.6 million ($0.36 per share) in the same
period 2011. Lower net earnings were mainly due to lower revenues,
higher cost of sales, higher exploration costs and lower gains on sales
of assets.
-
Adjusting for items not indicative of underlying operating performance,
adjusted net earnings1 were $90.3 million ($0.24 per share) compared to $107.8 million ($0.29
per share) in the same prior year period.
-
Operating cash flow for the fourth quarter 2012 was $118.9 million
($0.32 per share), down from $205.5 million ($0.55 per share) in the
same prior year period mainly due to lower revenues, higher exploration
expenses, higher taxes paid and changes in non-cash working capital.
-
Operating cash flow1 before changes in non-cash working capital items and long-term ore
stockpiles, was $130.1 million ($0.35 per share) in the fourth quarter
2012 compared to $190.1 million ($0.51 per share) in the same quarter
2011.
Production, Cash Costs and Margins
Gold Operations
-
Attributable gold production was 214,000 ounces in the fourth quarter
2012 compared to 253,000 ounces in the same period 2011. The decline
was mainly due to lower grades at Essakane and the stockpiling of ore
at Mouska for processing in 2013.
-
Cash costs2 for the fourth quarter 2012 were $731 an ounce, compared to $643 an
ounce in the same prior year period. Cash costs for IAMGOLD operated
mines were $665 an ounce in the fourth quarter 2012 compared to $562 an
ounce in the same quarter 2011.
-
The gold margin2 in the fourth quarter 2012 was $973 per ounce, down marginally from the
same period in 2011 as higher cash costs were partially offset by
higher gold prices.
Niobium Operations
-
Niobium production in the fourth quarter 2012 of 1.2 million kilograms
was flat with the fourth quarter 2011.
-
The operating margin2 in the fourth quarter 2012 was $15 per kilogram, down from $16 per
kilogram in the same period 2011 due to the impact of increasing costs
and the strength of the Canadian dollar.
FULL YEAR 2012 HIGHLIGHTS
Financial Performance
-
Revenues were $1.7 billion in 2012, virtually flat with the prior year
as the impact of a lower volume of gold sales ($111.2 million) was
offset by a higher realized gold price ($98.8 million) and higher
niobium revenues ($12.7 million).
-
Cost of sales for 2012 was $948.0 million, up $56.2 million or 6% from
the prior year. The increase is mainly related to higher costs
associated with mining and processing an increasing proportion of
harder rock at Essakane and Rosebel, as well as a longer haul distance
at Rosebel. Depreciation expense year-over-year was marginally higher.
Our mines have three types of ore: soft rock, transition rock and hard
rock, with the transition rock and hard rock progressively more energy
intensive to process than soft rock. The following table shows how the
mix of these three ore types is changing at both Essakane and Rosebel:
|
|
|
|
|
|
|
| Essakane | Rosebel |
Soft | Transition | Hard | Soft | Transition | Hard |
2012
|
66%
|
31%
|
3%
|
31%
|
49%
|
20%
|
2013E
|
42%
|
37%
|
21%
|
33%
|
35%
|
32%
|
As our mines move to a mix with a much higher proportion of hard rock,
the demand for power per tonne of ore processed will increase
significantly. At Essakane and Rosebel, we expect the proportion of
hard rock to approach 100% somewhere in the 2015-2016 time frame, at
which time the number of kilowatt hours per tonne of ore processed is
expected to be approximately two times greater for both mines.
This ore mix reflects the resources under the current mine plan.
However, the Company has a robust near-mine exploration program
underway at both Rosebel and Essakane and is actively exploring for
soft rock resources in potential satellite deposits.
-
Net earnings from continuing operations attributable to equity holders
for 2012 were $334.7 million ($0.89 per share), down $56.6 million or
14% from the prior year. The decrease was mainly due to the higher cost
of sales ($56.2 million), as noted above, and higher exploration
expenses ($39.4 million), partially offset by higher foreign exchange
gains ($18.8 million) and lower income tax expense ($21.6 million).
-
Adjusted net earnings1 for 2012 were $316.9 million ($0.84 per share1), down $88.8 million ($0.24 per share) or 22% from the prior year.
-
Operating cash flow for 2012 was $441.0 million ($1.17 per share), down
$151.8 million or 26% from $592.8 million ($1.58 per share) in the
prior year. The decrease in operating cash flow is mainly due to higher
cost of sales ($56.2 million) and exploration expenses ($39.4 million),
as well as higher income taxes paid ($73.5 million).
-
Operating cash flow before changes in working capital1 for 2012 was $504.0 million ($1.34 per share1), down $152.7 million ($0.41 per share) or 23% from the prior year.
Financial Position
-
Cash, cash equivalents and gold bullion (at market value) was $1,036.8
million at December 31, 2012, down $225.7 million from December 31,
2011. The decline was mainly due to the acquisition of the Côté Gold
project ($485.7 million), capital expenditures related to mining assets
and exploration and evaluation assets ($700.5 million), the payment of
dividends ($106.9 million) and acquisitions of investments ($49.7
million), offset partially by cash generated from the issuance of
senior unsecured notes ($650.0 million), operating activities ($441.0
million) and sale of investments ($28.2 million).
-
As at December 31, 2012, no funds were drawn against the Company's $750
million total unsecured revolving credit facilities.
Production, Cash Costs and Margins
Gold Operations
-
Attributable gold production from continuing operations for 2012 was
830,000 ounces, down 66,000 ounces or 7% from the prior year. Gold
production was lower, mainly the result of lower grades at Essakane
(22,000 ounces) and Sadiola (21,000 ounces) as well as the stockpiling
of ore at Mouska (20,000 ounces) for processing in 2013.
-
Cash costs1 for 2012 were $715 per ounce, up $79 per ounce or 12% from the prior
year. Cash costs at IAMGOLD operated mines was $637 per ounce, compared
with $573 per ounce in 2011.Cash costs increased mainly due to lower
grades, the processing of an increasing proportion of hard rock and
inflationary cost pressures across all sites.
Niobium Operations
-
Niobium production for 2012 was 4.7 million kilograms, up 2% from the
prior year.
-
The operating margin per kilogram of niobium2 for 2012 was $15 per kilogram, the same as the previous year.
All-in Sustaining Cost Metric
IAMGOLD is working with its fellow members of the World Gold Council in
developing guidelines to better reflect the total cost of producing
gold, including an all-in sustaining cost metric. As these guidelines
have not been finalized, we have chosen not to present all-in
sustaining costs as part of our 2013 guidance. The Company intends to
adopt these guidelines once approved.
Reserves and Resources
Reserves and resources, excluding the discontinued operations of Mupane,
Tarkwa and Damang in 2011, changed as follows:
-
The Company is reporting total attributable proven and probable gold
reserves of 11.3 million ounces at the end of 2012 compared to 13.3
million ounces at the end of 2011. Excluding the 2012 sale of
Quimsacocha, which accounted for 1.7 million ounces, reserves are down
slightly by 2% from 2011. In light of the feasibility study currently
underway at Rosebel and due out shortly, it was appropriate for 2012 to
reflect Rosebel's December 2011 reserves, net of the year's depletion.
A positive reconciliation adjustment for actual production versus the
2011 resource model was observed in 2012. The reserves and resources
for Rosebel will be reviewed and updated as part of the feasibility
study.
-
Total attributable measured and indicated gold resources (inclusive of
reserves) increased by 24% or 4.4 million ounces to 22.6 million ounces
at the end of 2012, mainly due to the acquisition and further infill
and exploration drilling of Côté Gold.
-
At the end of 2012, Niobium probable reserves were 1,768 million
kilograms of contained niobium pentoxide (Nb2O5), up nominally from the prior year.
-
In February 2012, the Company announced an inferred resource estimate of
466.8 million tonnes at an average grade of 1.65% Total Rare Earth
Oxides ("TREO") on the rare earth elements ("REE") zone adjacent to its
niobium mine. Subsequent to the Company's diamond drilling in 2012,
total indicated resources are now estimated at 531 million tonnes at an
average grade of 1.64% TREO representing 8.7 billion kilograms of
contained TREO. An inferred resource of 527 million tonnes at an
average grade of 1.83% TREO representing 9.7 billion kilograms of
contained TREO was delineated.
Commitment to Zero Harm Continues
-
The Company regrets the drowning of a gardener employed at our
exploration office in Ouagadougou, Burkina Faso in November 2012.
-
Regarding Health and Safety, the frequency of all types of serious
injuries (measured as DART rate3) across IAMGOLD for 2012 was 1.08 compared to 1.12 for the prior year,
representing a 4% improvement over 2011.
CORPORATE DEVELOPMENTS AND OPERATING HIGHLIGHTS
Côté Gold
-
On June 21, 2012, the Company completed the acquisition of all issued
and outstanding common shares of Trelawney through a plan of
arrangement (the "Transaction"). Under the terms of the Transaction,
former shareholders of Trelawney received C$3.30 in cash for each
common share of Trelawney held. The main asset acquired in this
transaction is the Côté Gold project located adjacent to the Swayze
Greenstone Belt in Northern Ontario, Canada.
On October 4, 2012, IAMGOLD announced a mineral resource update for the
Côté Gold project which included all validated drill results as at
August 1, 2012. The results showed a 274% increase in indicated
resources and a substantial increase in total ounces compared to the
last release (pre-acquisition) by Trelawney Mining in February 2012. On
January 22, the Company announced another resource update including all
validated drill results as at December 31, 2012. The result was a
further increase in indicated resources, up 114% from the October 4,
2012 announcement. The indicated resource is now estimated at 269
million tonnes averaging 0.88 grams of gold per tonne for 7.61 million
ounces. The inferred resource is estimated at 44 million tonnes,
averaging 0.74 grams of gold per tonne. A positive attribute of the
deposit is its accessibility for open-pit mining. The deposit locally
outcrops at surface and on average is covered with less than six metres
of barren overburden.
Senior Notes Offering
-
On September 21, 2012, the Company completed the issuance of $650.0
million of senior unsecured notes bearing interest at 6.75% due in
2020. The Company intends to use the proceeds for general corporate
purposes, including the funding of capital expenditures and
exploration.
Disposal of Quimsacocha
-
On November 14, 2012, the Company disposed of its interest in the
Quimsacocha project in Ecuador to INV Metals Inc. ("INV Metals")
through the disposal of all shares of its wholly-owned subsidiary
IAMGOLD Ecuador S.A., in exchange for 231.3 million common shares of
INV Metals. The Company holds approximately 47% of the issued and
outstanding INV Metals shares immediately after the closing of the
transaction.
Westwood
-
The Westwood project in Quebec remains on track for a production start
by the end of the first quarter 2013. Total gold production from
Westwood in 2013, including the processing of ore stockpiled at Mouska,
is expected to range between 130,000-150,000 ounces. The gradual
ramp-up typical during the startup of an underground mine will result
in higher unit costs in the first year of production. Subsequent to
year-end, the depth of the shaft reached its interim target of 1,958
metres. Commercial production is projected to begin by October 2013. In
October 2012, the union membership ratified a six year contract
effective from December 1, 2011.
Essakane
-
At the Essakane mine in Burkina Faso, the completion of the plant
expansion to accommodate an increasing proportion of hard rock is
expected by the end of 2013. The Company successfully negotiated an
agreement with the Government of Burkina Faso on fiscal terms related
to mine expansions, including a reduction in the import duty on
expansion related-materials from 7.5% to 2.5%.
-
Gold production is expected to range between 255,000-275,000 ounces in
2013, down from 315,000 ounces in 2012. Ore grades are expected to be
10-15% lower than the life of mine average, mainly due to the
processing of lower-grade softer ore that had been stockpiled in the
early years as the mine expansion gears up to process higher-grade ore.
As we move into harder rock, the higher grades will help mitigate the
impact of the higher energy consumption required to treat harder ore
and improve grades in line with the life of mine average. The Company
is also focused on bringing in softer ore from the Falagountou
satellite resource, 8 kilometers east of the main pit.
-
A contract was signed with employees allowing for a 5% increase over
each of the next three years.
Rosebel
-
At the Rosebel mine in Suriname, the Company completed the installation
of a temporary pre-crusher, a larger pebble crusher, and an expanded
gravity recovery circuit, all of which are having a positive impact on
recoveries. Also, to address the transition to harder ore, a third ball
mill is under construction and is expected to be brought into
production at the end of the first quarter 2013. Further capacity
expansion to address the increasing ore hardness will depend on the
outcome of the feasibility study to be completed at the end of the
first quarter 2013.Gold production in 2013 is expected to range between
365,000-385,000 ounces compared to 382,000 ounces in 2012, as grades
are expected to remain fairly constant with some minor variation.
-
On November 26, the President of Suriname announced that an agreement
had been reached with IAMGOLD with respect to a joint venture that
would target satellite resources beyond the current concession, with
attractively priced power. Final approval by the National Assembly of
the Republic of Suriname is expected in the near future.
Sadiola
-
In Mali, the Company is reassessing its strategy with respect to its
joint venture operations with AngloGold Ashanti. Until such time as an
agreement is reached on how to proceed with the sulphide expansion
project the Company is freezing capital expenditures related to the
expansion. The expansion project is necessary to accommodate hard rock
processing, as the existing mill was not designed to do so. While
production at the joint venture operations was not disrupted by the
conflict in Mali, the Company has reduced its exploration activity in
more remote regions of the country.
Niobec
-
The Company plans to complete the feasibility study for the Niobec
expansion in the third quarter of 2013. The timing of capital spending
related to the Niobec expansion project will depend on the outcome of
the study and will be aligned with the advancement of the permitting
process. The permitting process should be finalized by 2014.
Rare Earth Elements
-
IAMGOLD continues to evaluate options for exploiting the large Rare
Earth Elements ("REE") resource near its Niobec mine operation.
SUMMARIZED FINANCIAL RESULTS
|
|
|
|
|
|
|
Financial Position ($ millions, except where noted) | December 31, 2012 | Change |
December 31, 2011
|
Cash, cash equivalents, and gold bullion
|
|
|
|
|
|
| $ | 1,036.8 | (18%) |
$
|
1,262.5
|
| $ | 910.4 | (21%) |
$
|
1,148.4
|
Total assets
| $ | 5,376.2 | 22% |
$
|
4,393.8
|
Long-term debt
| $ | 638.8 | - |
$
|
-
|
Available credit facilities
| $ | 750.0 | 114% |
$
|
350.0
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Financial and Operating Results |
Quarters ended
December 31,
|
Years ended
December 31,
|
($ millions, except where noted) | 2012 | Change |
2011
| 2012 | Change |
2011
|
Financial Data |
|
|
|
|
|
|
|
|
|
|
Revenues
| $ | 468.4 | (3%) |
$
|
481.6
| $ | 1,670.0 | - |
$
|
1,673.2
|
Cost of sales
|
| 259.9 | 2% |
|
253.9
|
| 948.0 | 6% |
|
891.8
|
Gross earnings from mining
operations
| $ | 208.5 | (8%) |
$
|
227.7
| $ | 722.0 | (8%) |
$
|
781.4
|
Net earnings attributable to equity
holders of IAMGOLD1 | $ | 84.6 | (37%) |
$
|
133.6
| $ | 334.7 | (14%) |
$
|
391.3
|
Basic net earnings per share
($/share)1 | $ | 0.22 | (39%) |
$
|
0.36
| $ | 0.89 | (14%) |
$
|
1.04
|
Adjusted net earnings attributable
to equity holders of IAMGOLD1, 2 | $ | 90.3 | (16%) |
$
|
107.8
| $ | 316.9 | (22%) |
$
|
405.7
|
Basic adjusted net earnings per
share ($/share)1,2 | $ | 0.24 | (17%) |
$
|
0.29
| $ | 0.84 | (22%) |
$
|
1.08
|
Operating cash flow1 | $ | 118.9 | (42%) |
$
|
205.5
| $ | 441.0 | (26%) |
$
|
592.8
|
Operating cash flow ($/share)1 | $ | 0.32 | (42%) |
$
|
0.55
| $ | 1.17 | (26%) |
$
|
1.58
|
Operating cash flow before
changes in working capital1, 2 | $ | 130.1 | (32%) |
$
|
190.1
| $ | 504.0 | (23%) |
$
|
656.7
|
Operating cash flow before
changes in working capital
($/share)1, 2 | $ | 0.35 | (31%) |
$
|
0.51
| $ | 1.34 | (23%) |
$
|
1.75
|
1
|
Amounts represent results from continuing operations and do not include
discontinued operations.
|
2
|
The Company has included the following non-GAAP measures: adjusted net
earnings attributable to equity holders of IAMGOLD, adjusted net
earnings per share, operating cash flow before changes in working
capital per share. Refer to the Supplemental Information attached to
this news release for reconciliation to GAAP measures.
|
KEY OPERATING STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
Quarters ended
December 31,
|
Years ended
December 31,
|
| 2012 | Change |
2011
| 2012 | Change |
2011
|
Key Operating Statistics - Gold mines |
|
|
|
|
|
|
|
|
|
|
Gold sales - 100% (000s oz)1 |
| 246 | (6%) |
|
263
|
| 881 | (8%) |
|
953
|
Gold sales - Attributable (000s oz)1 |
| 232 | (6%) |
|
248
|
| 827 | (8%) |
|
896
|
Gold production - Attributable (000s oz)3 |
| 214 | (15%) |
|
253
|
| 830 | (7%) |
|
896
|
Average realized gold price ($/oz)1 | $ | 1,704 | 4% |
$
|
1,638
| $ | 1,667 | 7% |
$
|
1,555
|
Total Cash cost ($/oz)1, 2 | $ | 731 | 14% |
$
|
643
| $ | 715 | 12% |
$
|
636
|
Gold margin ($/oz)1, 2 | $ | 973 | (2%) |
$
|
995
| $ | 952 | 4% |
$
|
919
|
Key Operating Statistics - Niobec mine |
|
|
|
|
|
|
|
|
|
|
Niobium production (millions of kg Nb)
|
| 1.2 | - |
|
1.2
|
| 4.7 | 2% |
|
4.6
|
Niobium sales (millions of kg Nb)
|
| 1.1 | (15%) |
|
1.3
|
| 4.7 | 2% |
|
4.6
|
Operating margin ($/kg Nb)2 |
$
| 15 | (6%) |
$
|
16
|
$
| 15 | - |
$
|
15
|
1
|
Amounts represent results from continuing operations and do not include
discontinued operations.
|
2
|
The Company has disclosed the following non-GAAP measures: adjusted net
earnings attributable to equity holders of IAMGOLD, adjusted net
earnings per share, operating cash flow before changes in working
capital per share, total cash cost per ounce, gold margin per ounce,
and operating margin per kilogram of niobium sold at the Niobec mine.
Refer to the Non-GAAP performance measures section of the MD&A for
reconciliation to GAAP measures.
|
3
|
Excludes attributable ounces from discontinued operations of nil for the
year ended December 31, 2012 (year ended December 31, 2011: 76,000
ounces). Discontinued operations include Mupane, Tarkwa and Damang,
which were sold in 2011.
|
ATTRIBUTABLE GOLD PRODUCTION AND CASH COSTS
The table below presents the gold production attributable to the Company
along with the weighted average cash cost per ounce of production.
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gold Production (000s oz) | Total Cash Cost1 ($/oz) |
|
Quarters ended
December 31,
|
Years ended
December 31,
|
Quarters ended
December 31,
|
Years ended
December 31,
|
| 2012 |
2011
| 2012 |
2011
| 2012 |
2011
| 2012 |
2011
|
IAMGOLD Operator |
|
|
|
|
|
|
|
|
|
|
|
|
Rosebel (95%)
| 100 |
104
| 382 |
385
| $ | 661 |
$
|
598
| $ | 671 |
$
|
616
|
Essakane (90%)
| 77 |
94
| 315 |
337
|
| 672 |
|
425
|
| 603 |
|
488
|
Doyon division2 (100%)
| - |
19
| 4 |
24
|
| - |
|
1,044
|
| 137 |
|
1,076
|
| 177 |
217
| 701 |
746
| $ | 665 |
$
|
562
| $ | 637 |
$
|
573
|
Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
Sadiola (41%)
| 27 |
28
| 100 |
121
| $ | 1,118 |
$
|
1,023
| $ | 1,076 |
$
|
816
|
Yatela (40%)
| 10 |
8
| 29 |
29
|
| 843 |
|
1,604
|
| 1,337 |
|
1,534
|
| 37 |
36
| 129 |
150
| $ | 1,046 |
$
|
1,146
| $ | 1,134 |
$
|
954
|
Continuing operations | 214 |
253
| 830 |
896
| $ | 731 |
$
|
643
| $ | 715 |
$
|
636
|
Discontinued operations3 | - |
-
| - |
76
| $ | - |
$
|
-
| $ | - |
$
|
847
|
Total | 214 |
253
| 830 |
972
| $ | 731 |
$
|
643
| $ | 715 |
$
|
653
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost excluding
royalties
|
|
|
|
| $ | 632 |
$
|
554
| $ | 624 |
$
|
551
|
Royalties
|
|
|
|
|
| 99 |
|
89
|
| 91 |
|
85
|
Total cash cost1 |
|
|
|
| $ | 731 |
$
|
643
| $ | 715 |
$
|
636
|
1 Total cash cost is a non-GAAP measure. Refer to the Supplemental
Information section attached to the MD&A for reconciliation to GAAP
measures.
2 In 2012, the mine, as planned, did not produce gold other than marginal
gold derived from the mill clean-up process.
3 Discontinued operations include Mupane, Tarkwa and Damang which were
sold in 2011.
FOURTH QUARTER 2012 OPERATIONS REVIEW
ROSEBEL MINE, SURINAME
Operating Performance
Attributable gold production of 100,000 ounces for the fourth quarter
2012 was 4% lower than the same prior year period, primarily as a
result of lower grades, partially offset by higher recoveries.
Recoveries have improved as a result of completion of the gravity
circuit.
Total cash costs per ounce in the fourth quarter were higher than the
same period in 2011 mainly due to higher labour, fuel and power costs.
Higher labour costs reflect inflation and fuel costs were mainly higher
due to the longer haulage distance.
CAPEX
During the fourth quarter 2012, Rosebel's capital expenditures were
$25.9 million and included advancing the third ball mill project ($11.7
million), resource development and near-mine exploration ($4.1 million)
and other smaller projects ($10.1 million).
ESSAKANE MINE, BURKINA FASO
Operating Performance
Attributable gold production of 77,000 ounces was 18% lower than the
same period in 2011, mainly due to processing of lower-grade ore
partially offset by the increase in ore milled.
Total cash costs per ounce in the fourth quarter were higher than the
same period in 2011 mainly due to the impact of lower grades on gold
production, higher energy prices and upward pressure on the price of
consumables.
CAPEX
During the fourth quarter 2012, Essakane's capital expenditures were
$80.4 million and included the expansion project ($47.4 million),
capitalized stripping costs on the push-back of the pit ($21.6 million)
and other smaller projects ($11.4 million).
DOYON DIVISION, CANADA
During the fourth quarter 2012, the site continued to stockpile ore
which will be processed in the refurbished mill in 2013.
SADIOLA MINE, MALI
Operating Performance
Attributable gold production of 27,000 ounces for the fourth quarter
2012 was 4% lower than the prior year period due to lower grades,
partially offset by higher throughput.
Total cash costs per ounce were higher in the fourth quarter than in the
same quarter 2011 due to lower production, higher energy and the higher
cost of consumables.
CAPEX
The Company's attributable portion of capital expenditures during the
fourth quarter 2012 was $14.5 million and included spending on the
Sadiola sulphide project ($10.7 million) and various smaller sustaining
capital projects ($3.8 million).
Sadiola did not distribute a dividend during the fourth quarter 2012.
YATELA MINE, MALI
Operating Performance
Attributable gold production of 10,000 ounces for the fourth quarter
2012 was 25% higher compared to the prior year period.
Total cash costs per ounce in the fourth quarter 2012 were lower
compared to the fourth quarter 2011. As expected, the short-term
non-capitalized waste stripping activities completed in the third
quarter have improved the access to ore.
There were no significant capital expenditures year-to-date for both
2012 and 2011.
Yatela did not distribute a dividend during the fourth quarter 2012.
NIOBEC NIOBIUM MINE, CANADA
Operating Performance
Niobium production of 1.2 million kilograms in the fourth quarter 2012
was unchanged compared to the same period in 2011 as higher throughput
and recovery was offset by lower Nb2O5 ore grades.
Niobium revenues decreased to $46.0 million in the fourth quarter 2012
compared to $47.7 million in the same period in 2011 due to lower sales
volume partially offset by higher realized niobium prices. Operating
margin during the fourth quarter 2012 was lower compared to the same
prior year period due to the impact of increasing costs and the
strength of the Canadian dollar.
CAPEX
In the fourth quarter 2012, capital expenditures were $24.1 million and
included underground development ($4.0 million), process improvement
($4.7 million) and feasibility study ($5.3 million) and other smaller
projects ($10.1 million).
ATTRIBUTABLE GOLD SALES VOLUME AND REALIZED GOLD PRICE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gold sales (000s oz) | Realized gold price($/oz) |
|
Quarters ended
December 31,
|
Years ended
December 31,
|
Quarters ended
December 31,
|
Years ended
December 31,
|
| 2012 |
2011
| 2012 |
2011
| 2012 |
2011
| 2012 |
2011
|
Operator
| 205 |
225
| 751 |
803
| $ | 1,703 |
$
|
1,631
| $ | 1,667 |
$
|
1,553
|
Joint ventures1 | 41 |
38
| 130 |
150
| $ | 1,707 |
$
|
1,677
| $ | 1,666 |
$
|
1,566
|
Total sales from continuing operations 2,3 | 246 |
263
| 881 |
953
| $ | 1,704 |
$
|
1,638
| $ | 1,667 |
$
|
1,555
|
1
|
Attributable sales of joint ventures: Sadiola (41%) and Yatela (40%).
|
2
|
Attributable sales volume for the fourth quarters 2012 and 2011 were
232,000 ounces and 248,000 ounces, respectively, and for the years
ended 2012 and 2011 were 827,000 ounces and 896,000 ounces respectively
after taking into account 95% of the Rosebel sales and 90% of the
Essakane sales.
|
3
|
Continuing operations exclude Mupane, Tarkwa and Damang which were sold
in 2011 and are discontinued operations.
|
NIOBEC PRODUCTION, SALES AND OPERATING MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
Quarters ended
December 31,
|
Years ended
December 31,
|
| 2012 | Change |
2011
| 2012 | Change |
2011
|
Total operating material mined (000s t)
| 556 | 6% |
525
| 2,155 | 3% |
2,087
|
Ore milled (000s t)
| 558 | 4% |
539
| 2,195 | 4% |
2,113
|
Grade (% Nb2O5)
| 0.56 | - |
0.56
| 0.55 | (4%) |
0.57
|
Niobium production (millions of kg Nb)
| 1.2 | - |
1.2
| 4.7 | 2% |
4.6
|
Niobium sales (millions of kg Nb)
| 1.1 | (15%) |
1.3
| 4.7 | 2% |
4.6
|
Operating margin ($/kg Nb)1 | $ | 15 | (6%) |
$
|
16
| $ | 15 | - |
$
|
15
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Operating margin per kilogram of niobium at the Niobec mine is a
non-GAAP measure. Refer to the Supplemental Information section
attached to the MD&A for reconciliation to GAAP measures.
|
|
|
EXPLORATION
IAMGOLD was active on 20 initiatives at mine sites, near mine and
greenfields exploration projects in eight countries of West Africa and
North and South America for the year ended December 31, 2012.
Exploration expenditures totaled $152.3 million, of which $112.7
million was expensed and $39.6 million capitalized. Exploration
expenditures in 2012 were $43.7 million higher than in 2011 due to a
larger exploration program and the drilling activity on the Côté Gold
Project following its acquisition in June 2012. Drilling activities on
all projects totaled approximately 681,500 metres for the year.
The Company plans to spend $142.2 million on exploration in 2013. The
reduction from 2012 is due to reduced exploration activities in West
Africa, relative to 2012, partially offset by increased programs in
Brazil, Colombia and ongoing exploration and feasibility work at the
Côté Gold project of $23.8 million. The Company also plans to carry out
mine site resource development programs at Rosebel, Essakane, Niobec
and Westwood. Approximately 458,000 metres of reverse circulation and
diamond drilling is planned for 2013.
2013 OUTLOOK
|
|
IAMGOLD Full Year Guidance | 2013 |
Rosebel (000s oz)
|
365 - 385
|
Essakane (000s oz)
|
255 - 275
|
Doyon division (000s oz)1 |
130 - 150
|
Total owner-operated production (000s oz)
|
750 - 810
|
Joint ventures (000s oz)
|
125 - 140
|
Total attributable production (000s oz) | 875 - 950 |
|
|
Owner-operated total cash cost ($/oz)2 |
$810 - $880
|
Consolidated total cash cost ($/oz)2 |
$850 - $925
|
|
|
Niobec production (millions of kg Nb)
|
4.7 - 5.1
|
Niobec operating margin ($/kg Nb)2 |
$15 - $17
|
|
|
Effective tax rate (%)
|
38%
|
1
|
Doyon division production of 130,000 - 150,000 ounces includes Westwood
non-commercial production of 40,000 to 50,000 ounces. Associated
contribution will be recorded against its mining assets on the
consolidated balance sheet.
|
2 |
Cash cost per ounce and operating margin per kilogram of niobium sold at
the Niobec mine are non-GAAP measures. Refer to the Non-GAAP
performance measures section of the MD&A for reconciliation to GAAP
measures.
|
|
|
The outlook is based on 2013 full year assumptions for average realized
gold price of $1,700 per ounce, $C/$US exchange rate of 1.00, $US/€
exchange rate of 1.25 and average crude oil price of $95 per barrel.
Gold Production and Cash Costs
IAMGOLD expects 2013 gold production to be in the range of 875,000 to
950,000 ounces. The forecast reflects lower grades at Essakane and
Rosebel, slower ramp up at Westwood and the expected lower performance
at Sadiola. Total cash costs, including royalties, for 2013 are
expected to increase to a range of between $850 and $925 an ounce.
Approximately one-third of the increase in cash costs per ounce is
attributed to inflation while another third reflects the impact of
lower ore grades on production costs. The balance of the expected
year-over-year increase is due to both the transition to harder ore at
the Company's mature mines and the higher unit costs at Westwood
attributed to lower production in its first year of operation. The
growing proportion of harder ore drives up stripping ratios and labour
costs and exerts a greater demand on crushing and grinding capacity,
which in turn increases energy consumption and the use of reagents.
With respect to the Doyon division, the Westwood processing facility is
on track to begin gold production by the end of March 2013. The mine
site is projected to be producing gold by October 2013 at levels which
adhere to the Company's definition of commercial production. The
contribution from the gold produced in the interim period will be
applied as a credit against mining assets in the consolidated balance
sheet. This will lower net cash from operating activities and lower net
cash used in investing activities. The contribution from the gold
produced from the stockpiled ore at Mouska will be reported on the
consolidated income statement.
Niobium Production
The Company expects to produce between 4.7 and 5.1 million kilograms of
niobium in 2013 at a margin of between $15 and $17 a kilogram.
Depreciation
Depreciation expense is expected to increase in 2013 compared to 2012
with the commencement of commercial production at the Westwood mine and
higher depreciation of capitalized stripping at Essakane.
Capital Expenditures
The Company reduced its capital expenditure forecast for 2013 as set out
below mainly due to the delayed approval of the Sadiola sulphide
project and the deferral of capital spending at Niobec. For Niobec, the
timing of capital spending will be aligned with the advancement of
permitting and the completion of the feasibility study.
| $ Millions |
Rosebel
|
1301 |
Essakane
|
300
|
Westwood
|
100
|
Niobec
|
80
|
Joint ventures
|
502 |
Corporate and other
|
5
|
|
|
1 |
The $130 million is not related to the expansion. The capital
expenditures for the expansion will be provided upon completion of the
feasibility study, expected at the end of the first quarter 2013.
|
2 |
The $50 million is related to sustaining capital expenditures,
capitalized stripping costs on the push-back of the pit, and existing
commitments related to the sulphide expansion project. The Company is
freezing additional capital commitments for the expansion project until
an agreement is reached with AngloGold Ashanti on how to proceed with
the project.
|
|
|
END NOTES (excluding tables)
(1)
|
Adjusted net earnings attributable to equity holders of IAMGOLD,
adjusted net earnings attributable to equity holders of IAMGOLD per
share, operating cash flow from continuing operations before changes in
working capital and operating cash flow from continuing operations
before changes in working capital per share are non-GAAP financial
measures. Please refer to the reconciliation to GAAP measures above in
this news release.
|
(2)
|
Cash cost per ounce, gold margin per ounce, operating margin per
kilogram of niobium at the Niobec mine are non-GAAP measures. Please
refer to the Supplemental Information section attached to the MD&A for
reconciliation to GAAP measures.
|
(3)
|
The DART rate refers to the number of days away, restricted duty or job
transfer incidents that occur per 100 employees.
|
|
|
CONFERENCE CALL
A conference call will be held on Thursday, February 21 at 8:30 a.m.
(Eastern Standard Time) for a discussion with management regarding the
Company's 2012 fourth quarter and full year operating performance and
financial results. A webcast of the conference call will be available
through the Company's website - www.iamgold.com.
Conference Call Information: North America Toll-Free: 1-866-206-0240 or
1-646-216-7111, passcode: 57846322#
A replay of this conference call will be available from 5:00 p.m.
February 21 to March 21, 2013. Access this replay by dialling: North
America toll-free: 1-866-206-0173 or 1-646-216-7204, passcode: 278951#
Forward Looking Statement
This news release contains forward-looking statements. All statements,
other than of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements
regarding expected, estimated or planned gold and niobium production,
cash costs, margin expansion, capital expenditures and exploration
expenditures and statements regarding the estimation of mineral
resources, exploration results, potential mineralization, potential
mineral resources and mineral reserves) are forward-looking statements.
Forward-looking statements are generally identifiable by use of the
words "may", "will", "should", "continue", "expect", "anticipate",
"outlook", "guidance", "estimate", "believe", "intend", "plan" or
"project" or the negative of these words or other variations on these
words or comparable terminology. Forward-looking statements are subject
to a number of risks and uncertainties, many of which are beyond the
Company's ability to control or predict, that may cause the actual
results of the Company to differ materially from those discussed in the
forward-looking statements. Factors that could cause actual results or
events to differ materially from current expectations include, among
other things, without limitation: changes in the global prices for
gold, niobium, copper, silver or certain other commodities (such as
diesel, aluminum and electricity); changes in U.S. dollar and other
currency exchange rates, interest rates or gold lease rates; risks
arising from holding derivative instruments; the level of liquidity and
capital resources; access to capital markets, financing and interest
rates; mining tax regimes; ability to successfully integrate acquired
assets; legislative, political or economic developments in the
jurisdictions in which the Company carries on business; operating or
technical difficulties in connection with mining or development
activities; laws and regulations governing the protection of the
environment; employee relations; availability and increasing costs
associated with mining inputs and labour; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of reserves; adverse changes in the Company's
credit rating; contests over title to properties, particularly title to
undeveloped properties; and the risks involved in the exploration,
development and mining business. With respect to development projects,
IAMGOLD's ability to sustain or increase its present levels of gold
production is dependent in part on the success of its projects. Risks
and unknowns inherent in all projects include the inaccuracy of
estimated reserves and resources, metallurgical recoveries, capital and
operating costs of such projects, and the future prices for the
relevant minerals. Development projects have no operating history upon
which to base estimates of future cash flows. The capital expenditures
and time required to develop new mines or other projects are
considerable, and changes in costs or construction schedules can affect
project economics. Actual costs and economic returns may differ
materially from IAMGOLD's estimates or IAMGOLD could fail to obtain the
governmental approvals necessary for the operation of a project; in
either case, the project may not proceed, either on its original timing
or at all.
Notes to Investors Regarding the Use of Resources
Cautionary Note to Investors Concerning Estimates of Measured and
Indicated Resources
This news release uses the terms "measured resources" and "indicated
resources". We advise investors that while those terms are recognized
and required by Canadian regulations, the United States Securities and
Exchange Commission (the "SEC") does not recognize them. Investors are
cautioned not to assume that any part or all of mineral deposits in
these categories will ever be converted into reserves.
Cautionary Note to Investors Concerning Estimates of Inferred Resources
This news release also uses the term "inferred resources". We advise
investors that while this term is recognized and required by Canadian
regulations, the SEC does not recognize it. "Inferred resources" have a
great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will ever
be upgraded to a higher category. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Investors are cautioned
not to assume that part or all of an inferred resource exists, or is
economically or legally mineable.
Scientific and Technical Disclosure
IAMGOLD is reporting mineral resource and reserve estimates in
accordance with the CIM guidelines for the estimation, classification
and reporting of resources and reserves.
Cautionary Note to U.S. Investors
The SEC limits disclosure for U.S. reporting purposes to mineral
deposits that a company can economically and legally extract or
produce. IAMGOLD uses certain terms in this news release, such as
"measured," "indicated," or "inferred," which may not be consistent
with the reserve definitions established by the SEC. U.S. investors
are urged to consider closely the disclosure in the IAMGOLD Annual
Reports on Forms 40-F. You can review and obtain copies of these
filings from the SEC's website at http://www.sec.gov/edgar.shtml or by contacting the Investor Relations department. The Canadian
Securities Administrators' National Instrument 43-101 ("NI 43-101")
requires mining companies to disclose reserves and resources using the
subcategories of "proven" reserves, "probable" reserves, "measured"
resources, "indicated" resources and "inferred" resources. Mineral
resources that are not mineral reserves do not demonstrate economic
viability.
A mineral reserve is the economically mineable part of a measured or
indicated mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant factors
that demonstrate, at the time of reporting, that economic extraction
can be justified. A mineral reserve includes diluting materials and
allows for losses that may occur when the material is mined. A proven
mineral reserve is the economically mineable part of a measured mineral
resource demonstrated by at least a preliminary feasibility study. A
probable mineral reserve is the economically mineable part of an
indicated, and in some circumstances, a measured mineral resource
demonstrated by at least a preliminary feasibility study. A mineral
resource is a concentration or occurrence of natural, solid, inorganic
material, or natural, solid fossilized organic material including base
and precious metals in or on the Earth's crust in such form and
quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a mineral resource are
known, estimated or interpreted from specific geological evidence and
knowledge. A measured mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate
application of technical and economic parameters, to support production
planning and evaluation of the economic viability of the deposit. The
estimate is based on detailed and reliable exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes
that are spaced closely enough to confirm both geological and grade
continuity. An indicated mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed
and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for geological
and grade continuity to be reasonably assumed. An inferred mineral
resource is that part of a mineral resource for which quantity and
grade or quality can be estimated on the basis of geological evidence
and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes.
Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
Investors are cautioned not to assume that part or all of an inferred
resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical and economic study of
the selected development option for a mineral project that includes
appropriately detailed assessments of realistically assumed mining,
processing, metallurgical, economic, marketing, legal, environmental,
social and governmental considerations together with any other relevant
operational factors and detailed financial analysis, that are
necessary to demonstrate at the time of reporting that extraction is
reasonably justified (economically mineable). The results of the study
may reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the development
of the project. The confidence level of the study will be higher than
that of a pre-feasibility study.
A pre-feasibility study is a comprehensive study of a range of options
for the technical and economic viability of a mineral project that has
advanced to a stage where a preferred mining method, in the case of
underground mining, or the pit configuration, in the case of an open
pit, is established and an effective method of mineral processing is
determined. It includes a financial analysis based on reasonable
assumptions on mining, processing, metallurgical, economic, marketing,
legal, environmental, social and governmental considerations and the
evaluation of any other relevant factors which are sufficient for a
qualified person, acting reasonably, to determine if all or part of the
Mineral Resource may be classified as a Mineral Reserve.
Gold, Niobium and TREO Technical Information and Qualified
Person/Quality Control Notes
The mineral resource estimates contained in this news release have
been prepared in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101") and
JORC. The "Qualified Person" responsible for the supervision of the
preparation and review of all resource and reserve estimates for
IAMGOLD Corporation is Réjean Sirois, Eng., Vice President, Geology &
Resources for G Mining Services Inc. Réjean worked for 25 years with
IAMGOLD Corporation and has an excellent knowledge of all the
operations and projects. He is considered a "Qualified Person" for the
purposes of National Instrument 43-101 with respect to the
mineralization being reported on. The technical information has
been included herein with the consent and prior review of the
above noted Qualified Person. The Qualified person has verified the
data disclosed, and data underlying the information or opinions
contained herein.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a leading mid-tier gold producer with five operating gold mines
(including current joint ventures) on three continents. In the Canadian
province of Québec, the Company also operates Niobec Inc., one of the
world's top three producers of niobium, and owns a rare earth element
resource close to its niobium mine. IAMGOLD is well positioned for
growth with a strong financial position and extensive management and
operational expertise. To grow from this strong base, IAMGOLD has a
pipeline of development and exploration projects and continues to
assess accretive acquisition opportunities. IAMGOLD's growth plans are
strategically focused in certain regions in Canada, select countries in
South America and Africa.
Please note:
This entire news release may be accessed via fax, e-mail, IAMGOLD's
website at www.iamgold.com and through CNW Group's website at www.newswire.ca. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué, veuillez
consulter le http://www.iamgold.com/French/Home/default.aspx.
1. | CONSOLIDATED FINANCIAL STATEMENTS (BALANCE SHEETS, STATEMENTS OF
EARNINGS, STATEMENTS OF COMPREHENSIVE INCOME, AND STATEMENTS OF CASH
FLOWS) |
IAMGOLD CORPORATION Consolidated Balance Sheets |
|
|
|
(Audited: In millions of U.S. dollars)
|
| December 31, 2012 |
December
31, 2011
|
Assets |
| $ |
$
|
Current assets |
|
|
|
|
Cash and cash equivalents
|
| 813.5 |
1,051.6
|
|
Gold bullion (market value $223.3; 2011 - $210.9)
|
| 96.9 |
96.8
|
|
Income tax receivable
|
| 25.0 |
26.3
|
|
Receivables and other current assets
|
| 160.6 |
132.3
|
|
Inventories
|
| 305.1 |
239.1
|
|
| 1,401.1 |
1,546.1
|
Non-current assets |
|
|
|
|
Deferred income tax assets
|
| 55.4 |
41.4
|
|
Investments in associates
|
| 56.1 |
16.3
|
|
Mining assets
|
| 2,713.3 |
1,881.6
|
|
Exploration and evaluation assets
|
| 533.3 |
356.5
|
|
Goodwill
|
| 256.7 |
256.7
|
|
Other non-current assets
|
| 360.3 |
295.2
|
|
| 3,975.1 |
2,847.7
|
|
| 5,376.2 |
4,393.8
|
Liabilities and Equity |
|
|
|
Current liabilities |
|
|
|
|
Accounts payable and accrued liabilities
|
| 252.3 |
206.0
|
|
Income tax payable
|
| 62.2 |
109.2
|
|
Dividends payable
|
| 48.6 |
47.0
|
|
Current portion of asset retirement obligations
|
| 7.4 |
6.3
|
|
Current portion of other non-current liabilities
|
| 2.6 |
6.6
|
|
| 373.1 |
375.1
|
Non-current liabilities |
|
|
|
|
Deferred income tax liabilities
|
| 285.6 |
256.4
|
|
Long-term debt
|
| 638.8 |
-
|
|
Asset retirement obligations
|
| 250.7 |
215.9
|
|
Other non-current liabilities
|
| 23.2 |
17.5
|
|
| 1,198.3 |
489.8
|
|
| 1,571.4 |
864.9
|
Equity |
|
|
|
Equity attributable to equity shareholders of the Company: |
|
|
|
Common shares
|
| 2,315.8 |
2,308.6
|
|
Contributed surplus
|
| 26.7 |
19.9
|
|
Retained earnings
|
| 1,343.2 |
1,104.9
|
|
Accumulated other comprehensive income
|
| 42.4 |
41.1
|
|
| 3,728.1 |
3,474.5
|
Non-controlling interests |
| 76.7 |
54.4
|
|
| 3,804.8 |
3,528.9
|
|
| 5,376.2 |
4,393.8
|
|
|
|
|
IAMGOLD CORPORATION Consolidated Statements of Earnings |
|
|
|
|
|
(In millions of U.S. dollars, except per share amounts)
|
| Fourth quarter ended December 31 (Unaudited) | Year ended December 31 (Audited) |
|
| 2012 |
2011
| 2012 |
2011
|
|
| $ |
$
| $ |
$
|
Revenues |
| 468.4 |
481.6
| 1,670.0 |
1,673.2
|
Cost of sales
|
| 259.9 |
253.9
| 948.0 |
891.8
|
General and administrative expenses
|
| 15.5 |
16.5
| 58.3 |
54.2
|
Exploration expenses
|
| 35.8 |
21.0
| 112.7 |
73.3
|
Other
|
| 4.1 |
12.1
| 4.8 |
25.7
|
Operating costs |
| 315.3 |
303.5
| 1,123.8 |
1,045.0
|
Earnings from operations |
| 153.1 |
178.1
| 546.2 |
628.2
|
Share of net earnings (loss) from investments in associates (net of
income tax)
| 3.5 |
(1.6)
| 12.0 |
(1.6)
|
Finance costs
|
| (11.2) |
(1.4)
| (18.5) |
(7.1)
|
Foreign exchange gains (losses)
|
| 2.2 |
4.0
| 10.7 |
(8.1)
|
Interest income, derivatives and other investment gains
|
| (0.6) |
26.6
| 20.2 |
37.6
|
Earnings from continuing operations before income and mining taxes |
| 147.0 |
205.7
| 570.6 |
649.0
|
Income taxes
|
| (52.4) |
(59.9)
| (199.4) |
(221.0)
|
Net earnings from continuing operations |
| 94.6 |
145.8
| 371.2 |
428.0
|
Net earnings from discontinued operations
|
| - |
-
| - |
415.3
|
Net earnings |
| 94.6 |
145.8
| 371.2 |
843.3
|
Net earnings from continuing operations attributable to: |
|
|
|
|
|
Equity holders of IAMGOLD Corporation
|
| 84.6 |
133.6
| 334.7 |
391.3
|
|
Non-controlling interests
|
| 10.0 |
12.2
| 36.5 |
36.7
|
|
Net earnings from continuing operations
|
| 94.6 |
145.8
| 371.2 |
428.0
|
Net earnings attributable to: |
|
|
|
|
|
|
Equity holders of IAMGOLD Corporation
|
| 84.6 |
133.6
| 334.7 |
806.6
|
|
Non-controlling interests
|
| 10.0 |
12.2
| 36.5 |
36.7
|
|
Net earnings
|
| 94.6 |
145.8
| 371.2 |
843.3
|
Weighted average number of common shares outstanding (in millions)
|
|
|
|
|
|
|
Basic
|
| 376.2 |
375.9
| 376.2 |
374.9
|
|
Diluted
|
| 376.9 |
377.1
| 376.9 |
376.5
|
Earnings from continuing operations per share ($ per share)
|
|
|
|
|
|
|
Basic
|
| 0.22 |
0.36
| 0.89 |
1.04
|
|
Diluted
|
| 0.22 |
0.35
| 0.89 |
1.04
|
Earnings per share ($ per share)
|
|
|
|
|
|
|
Basic
|
| 0.22 |
0.36
| 0.89 |
2.15
|
|
Diluted
|
| 0.22 |
0.35
| 0.89 |
2.14
|
|
|
|
|
|
|
|
IAMGOLD CORPORATION Consolidated Statements of Comprehensive Income |
|
|
|
|
|
(In millions of U.S. dollars)
|
| Fourth quarter ended December 31 (Unaudited) | Year ended December 31 (Audited) |
|
| 2012 |
2011
| 2012 |
2011
|
|
| $ |
$
| $ |
$
|
Net earnings |
| 94.6 |
145.8
| 371.2 |
843.3
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
Net unrealized change in fair value of available-for-sale financial
assets, net of tax
|
| (4.2) |
(0.3)
| 8.2 |
4.2
|
Net realized change in fair value and impairment of available-for-sale
financial assets, net of tax
|
| (6.3) |
0.5
| (6.9) |
(6.4)
|
|
| (10.5) |
0.2
| 1.3 |
(2.2)
|
Other
|
| (2.3) |
(0.8)
| (2.3) |
(0.8)
|
Total other comprehensive loss |
| (12.8) |
(0.6)
| (1.0) |
(3.0)
|
Comprehensive income |
| 81.8 |
145.2
| 370.2 |
840.3
|
|
|
|
|
|
|
Comprehensive income from continuing operations
| 81.8 |
145.2
| 370.2 |
425.0
|
Comprehensive income from discontinued operations
| - |
-
| - |
415.3
|
Comprehensive income |
| 81.8 |
145.2
| 370.2 |
840.3
|
Comprehensive income attributable to: |
|
|
|
|
|
Equity shareholders of IAMGOLD Corporation
|
| 71.8 |
133.0
| 333.7 |
803.6
|
|
Non-controlling interests
|
| 10.0 |
12.2
| 36.5 |
36.7
|
|
| 81.8 |
145.2
| 370.2 |
840.3
|
|
|
|
|
|
|
|
|
|
|
|
|
IAMGOLD CORPORATION Consolidated Statements of Cash Flows |
|
|
|
(In millions of U.S.dollars)
|
| Fourth quarter ended December 31 (Unaudited) | Year ended December 31 (Audited) |
|
| 2012 |
2011
| 2012 |
2011
|
|
| $ |
$
| $ |
$
|
Operating activities: |
|
|
|
|
|
Net earnings from continuing operations
| 94.6 |
145.8
| 371.2 |
428.0
|
Adjustments for:
|
|
|
|
|
|
|
Finance costs
|
| 11.2 |
1.4
| 18.5 |
7.1
|
|
Depreciation expense
| 36.5 |
44.8
| 163.9 |
156.8
|
|
Changes in estimates of asset retirement obligations at closed sites
|
| 4.8 |
10.7
| 5.3 |
23.0
|
|
Income tax expenses
|
| 52.4 |
59.9
| 199.4 |
221.0
|
|
Unrealized impact of foreign exchange on cash and cash equivalents
|
| (0.6) |
(3.8)
| (5.1) |
11.4
|
|
Other non-cash items
|
| 3.5 |
(17.3)
| (10.7) |
(21.8)
|
Adjustments for cash items
|
| (0.7) |
(3.4)
| (4.5) |
(8.3)
|
Movements in non-cash working capital items and non-current stockpiles
|
| (11.2) |
15.4
| (63.0) |
(63.9)
|
Cash generated from operating activities
| 190.5 |
253.5
| 675.0 |
753.3
|
Income tax paid
|
| (71.6) |
(48.0)
| (234.0) |
(160.5)
|
Net cash from operating activities | 118.9 |
205.5
| 441.0 |
592.8
|
Investing activities: |
|
|
|
|
|
Mining assets
|
|
|
|
|
|
|
Capital expenditures
|
| (207.1) |
(112.9)
| (698.3) |
(265.4)
|
|
Sales proceeds
|
| 0.5 |
0.7
| 2.5 |
1.0
|
Additions to exploration and evaluation assets
|
| - |
(35.3)
| (2.2) |
(130.8)
|
Acquisition of the Côté Gold project
|
| - |
-
| (485.7) |
-
|
Other investing activities
|
| 6.6 |
91.9
| (29.6) |
(95.0)
|
Proceeds from disposals of non-core assets
|
| - |
15.0
| - |
737.4
|
Net cash from (used in) investing activities | (200.0) |
(40.6)
| (1,213.3) |
247.2
|
Financing activities: |
|
|
|
|
|
Gross proceeds from long-term debt
|
| - |
-
| 650.0 |
-
|
Proceeds from issue of share capital
|
| 0.6 |
1.8
| 5.4 |
54.7
|
Dividends paid
|
| (1.7) |
(4.9)
| (106.9) |
(80.1)
|
Interest paid
| (0.8) |
(0.7)
| (3.1) |
(2.9)
|
Payment of long-term debt transaction costs
|
| (1.5) |
-
| (11.6) |
-
|
Other financing activities
|
| 0.2 |
-
| (4.7) |
0.1
|
Net cash from (used in) financing activities | (3.2) |
(3.8)
| 529.1 |
(28.2)
|
Unrealized impact for foreign exchange on cash and cash equivalents | 0.6 |
3.8
| 5.1 |
(11.4)
|
Net cash used in discontinued operations |
| - |
-
| - |
(19.6)
|
Reclassification of cash to assets held for sale | 0.4 |
-
| - |
-
|
Increase (decrease) in cash and cash equivalents | (83.3) |
164.9
| (238.1) |
780.8
|
Cash and cash equivalents, beginning of period
| 896.8 |
886.7
| 1,051.6 |
270.8
|
Cash and cash equivalents, end of the year | 813.5 |
1,051.6
| 813.5 |
1,051.6
|
2.a. | NON-GAAP FINANCIAL MEASURES - ADJUSTED NET EARNINGS (UNAUDITED) |
Adjusted net earnings from continuing operations attributable to equity
shareholders and adjusted net earnings from continuing operations
attributable to equity shareholders per share are non-GAAP financial
measures. Management believes that these measures better reflect the
Company's performance for the current period and are a better
indication of its expected performance in future periods. Adjusted net
earnings from continuing operations attributable to equity shareholders
and adjusted net earnings from continuing operations attributable to
equity shareholders per share are intended to provide additional
information, but do not have any standardized meaning prescribed by
IFRS, are unlikely to be comparable to similar measures presented by
other issuers, and should not be considered in isolation or a
substitute for measures of performance prepared in accordance with
IFRS. Adjusted net earnings from continuing operations attributable to
equity shareholders represent net earnings from continuing operations
attributable to equity shareholders excluding certain impacts, net of
tax, such changes in estimates of asset retirement obligations
including unrecognized tax benefits, unrealized derivative gain or
loss, gain/loss on sale of marketable securities and assets, foreign
exchange gain or loss, executive severance costs, as well as the impact
of significant change in tax laws for mining taxes, and unrealized gain
on foreign exchange translation of deferred income and mining tax
liabilities. These measures are not necessarily indicative of net
earnings or cash flows as determined under IFRS. The following table
provides a reconciliation of net earnings from continuing operations
attributable to equity shareholders as per the unaudited condensed
consolidated interim statement of earnings, to adjusted net earnings
from continuing operations attributable to equity shareholders.
|
|
|
|
|
|
|
|
|
|
Quarters ended
December 31,
|
Years ended
December 31,
|
($ millions, except for number of shares and per share amounts)
| 2012 | 2011 | 2012 | 2011 |
Earnings from continuing operations before income taxes and
non-controlling interests | $ | 147.0 |
$
|
205.7
| $ | 570.6 |
$
|
649.0
|
Adjusted items:
|
|
|
|
|
|
|
|
|
|
● Interest expense on senior unsecured notes
|
| 11.2 |
|
-
|
| 11.2 |
|
-
|
|
● Foreign exchange loss / (gain)
|
| (2.2) |
|
(4.0)
|
| (10.7) |
|
8.1
|
|
● Unrealized loss / (gain) on derivative instruments
|
| 5.1 |
|
(16.8)
|
| (16.2) |
|
2.2
|
|
● Gain on sale of marketable securities
|
| (9.0) |
|
(0.8)
|
| (25.5) |
|
(8.9)
|
|
● Impairment of marketable securities
|
| 3.4 |
|
1.6
|
| 24.1 |
|
1.6
|
|
● Loss / (gain) on sale of assets
|
| 2.1 |
|
(13.4)
|
| 0.8 |
|
(25.1)
|
|
● Changes in estimates of asset retirement obligations at closed
sites
|
| 4.8 |
|
10.7
|
| 5.3 |
|
23.0
|
|
| 15.4 |
|
(22.7)
|
| (11.0) |
|
0.9
|
Adjusted earnings from continuing operations before income taxes and non-controlling interests | $ | 162.4 |
$
|
183.0
| $ | 559.6 |
$
|
649.9
|
|
● Income tax expenses
|
| (52.4) |
|
(59.9)
|
| (199.4) |
|
(221.0)
|
|
● Tax impact of adjusted items
|
| (9.7) |
|
(3.1)
|
| (6.8) |
|
13.5
|
|
● Non-controlling interests
|
| (10.0) |
|
(12.2)
|
| (36.5) |
|
(36.7)
|
Adjusted net earnings from continuing operations attributable to equity holders of IAMGOLD | $ | 90.3 |
$
|
107.8
| $ | 316.9 |
$
|
405.7
|
Basic weighted average number of common shares outstanding (in millions)
|
| 376.2 |
|
374.9
|
| 376.2 |
|
374.9
|
Basic adjusted net earnings from continuing operations attributable to equity holders of IAMGOLD per share ($/share) | $ | 0.24 |
$
|
0.29
| $ | 0.84 |
$
|
1.08
|
2.b. | NON-GAAP FINANCIAL MEASURES - OPERATING CASH FLOWS FROM CONTINUING
OPERATIONS BEFORE CHANGES IN WORKING |
| CAPITAL (UNAUDITED) |
The Company makes reference to a non-GAAP measure for operating cash
flow from continuing operations before changes in working capital and
operating cash flow from continuing operations before changes in
working capital per share. This measure is defined as cash generated
from continuing operations excluding changes in working capital.
Working capital can be volatile due to numerous factors including
build-up of inventories. Management believes that, by excluding these
items from continuing operations, this non-GAAP measure provides
investors with the ability to better evaluate the cash flow performance
of the Company.
The following table provides a reconciliation of operating cash flow
from continuing operations before changes in working capital:
|
|
|
|
|
|
|
|
|
|
|
Quarters ended
December 31,
|
|
Years ended
December 31,
|
($ millions, except for number of shares and per share amounts)
| 2012 | 2011 |
| 2012 | 2011 |
Cash flow generated from continuing operating activities per the audited consolidated annual financial statements | $ | 118.9 |
$
|
205.5
|
| $ | 441.0 |
$
|
592.8
|
Adjusting items from non-cash working capital items and
long-term ore stockpiles:
|
|
|
|
|
|
|
|
|
|
-
Receivables and other current assets
|
| 3.1 |
|
32.9
|
|
| 1.4 |
|
47.8
|
-
Inventories and long-term ore stockpiles
|
| 3.2 |
|
(18.4)
|
|
| 72.9 |
|
65.7
|
-
Accounts payable and accrued liabilities
|
| 4.9 |
|
(29.9)
|
|
| (11.3) |
|
(49.6)
|
Operating cash flow from continuing operations before changes in working capital | $ | 130.1 |
$
|
190.1
|
| $ | 504.0 |
$
|
656.7
|
Basic weighted average number of common shares
outstanding (in millions)
|
| 376.2 |
|
374.9
|
|
| 376.2 |
|
374.9
|
Basic operating cash flow from continuing operations before changes in working capital per share ($/share) | $ | 0.35 |
$
|
0.51
|
| $ | 1.34 |
$
|
1.75
|
2.c. |
|
| NON-GAAP FINANCIAL MEASURES - GOLD MARGIN (UNAUDITED) |
This news release refers to gold margin per ounce of gold, a non-GAAP
performance measure, in order to provide investors with information
about the measure used by management to monitor the performance of its
gold assets. The information allows management to assess how well the
gold mines are performing relative to the plan and to prior periods, as
well as assess the overall effectiveness and efficiency of gold
operations.
In periods of rising gold prices it becomes profitable to process
lower-grade ore. Such a decision will typically result in an increase
in cash costs per ounce, but it is equally important to recognize that
margins also increase at an equal or even faster rate. While mining
lower grade ore results in less gold being processed in any given
period, over the long-run it allows us to optimize the production of
profitable gold, thereby maximizing our total financial returns over
the life of the mine. IAMGOLD's exploitation strategy, including
managing cutoff grades, mine sequencing, and stockpiling practices, is
designed to maximize the total value of the asset given conservatively
derived assumptions for key economic parameters going forward. At the
same time, the site operating teams seek to achieve the best
performance in terms of cost per tonne mined, cost per tonne processed
and overheads.
The gold margin per ounce of gold does not have any standardized meaning
prescribed by IFRS, is unlikely to be comparable to similar measures
presented by other issuers, and should not be considered in isolation
or a substitute for measures of performance prepared in accordance with
IFRS.
The following table provides a reconciliation of gold margin per ounce
of gold for the gold operating mine (continuing operations) to gold
realized price less cash costs per ounce.
|
|
|
|
|
|
|
|
|
|
|
Quarters ended
December 31,
|
|
Years ended
December 31,
|
|
| 2012 |
|
2011
|
| 2012 |
|
2011
|
|
| $/oz |
|
$/oz
|
| $/oz |
|
$/oz
|
Realized gold price
|
| 1,704 |
|
1,638
|
| 1,667 |
|
1,555
|
Cash cost for continuing operations
|
| 731 |
|
643
|
| 715 |
|
636
|
Gold margin
|
| 973 |
|
995
|
| 952 |
|
919
|
|
|
|
|
|
|
|
|
|
2.d. | NON-GAAP FINANCIAL MEASURES - CASH COSTS (UNAUDITED) |
This news release often refers to cash costs per ounce, a non-GAAP
performance measure in order to provide investors with information
about the measure used by management to monitor performance. This
information is used to assess how well the producing gold mines are
performing compared to plan and prior periods, and also to assess the
overall effectiveness and efficiency of gold mining operations. "Cash
cost" figures are calculated in accordance with a standard developed by
The Gold Institute, which was a worldwide association of suppliers of
gold and gold products and included leading North American gold
producers. The Gold Institute ceased operations in 2002, but the
standard is still an accepted standard of reporting cash costs of gold
production in North America. Adoption of the standard is voluntary and
the cost measures presented herein may not be comparable to other
similarly titled measures of other companies. Costs include mine site
operating costs such as mining, processing, administration, royalties,
production taxes, and attributable realized derivative gain or loss,
but are exclusive of amortization, reclamation, capital, exploration
and development costs. These costs are then divided by the Company's
attributable ounces of gold produced to arrive at the total cash costs
per ounce. The measure, along with sales, is considered a key
indicator of a company's ability to generate operating earnings and
cash flow from its mining operations.
These gold cash costs do not have any standardized meaning prescribed by
Canadian GAAP and differ from measures determined in accordance with
GAAP. They are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. These measures are not
necessarily indicative of net earnings or cash flow from operations as
determined under GAAP.
The following tables provide a reconciliation of total cash costs per
ounce produced for gold mines to the mining costs, excluding
depreciation, depletion and amortization as per the unaudited interim
consolidated statement of earnings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended December 31, 2012 |
| Operating Gold Mines | Other |
($ millions, except where noted) (unaudited) |
| Rosebel |
| Essakane |
| Doyon Division |
| Sadiola |
| Yatela |
| Total |
| Other1 |
| Total2 |
Cost of sales, excluding depreciation, depletion, amortization
|
| $ | 77.6 |
| $ | 63.5 |
| $ | 1.0 |
| $ | 40.2 |
| $ | 9.1 |
| $ | 191.4 |
| $ | 32.6 |
| $ | 224.0 |
Adjust for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By-product credit (excluded from mining costs)
|
|
| (0.2) |
|
| (0.2) |
|
| (0.1) |
|
| (0.1) |
|
| - |
|
| (0.6) |
|
|
|
|
|
|
|
Stock movement
|
|
| (7.0) |
|
| (3.6) |
|
| - |
|
| (3.0) |
|
| (0.7) |
|
| (14.3) |
|
|
|
|
|
|
|
Other mining costs
|
|
| (1.0) |
|
| (1.2) |
|
| (0.9) |
|
| (6.6) |
|
| (0.1) |
|
| (9.8) |
|
|
|
|
|
|
|
Cost attributed to non-controlling interests
|
|
| (3.4) |
|
| (5.8) |
|
| - |
|
| - |
|
| - |
|
| (9.2) |
|
|
|
|
|
|
|
| $ | (11.6) |
| $ | (10.8) |
| $ | (1.0) |
| $ | (9.7) |
| $ | (0.8) |
| $ | (33.9) |
|
|
|
|
|
|
Total cash costs - operating mines
|
| $ | 66.0 |
| $ | 52.7 |
| $ | - |
| $ | 30.5 |
| $ | 8.3 |
| $ | 157.5 |
|
|
|
|
|
|
Attributable gold production - operating mines (000s oz )
|
|
| 100 |
|
| 77 |
|
| - |
|
| 27 |
|
| 10 |
|
| 214 |
|
|
|
|
|
|
Total cash costs ($/oz)
|
| $ | 661 |
| $ | 672 |
| $ | - |
| $ | 1,118 |
| $ | 843 |
| $ | 731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2012 | Operating Gold Mines | Other |
($ millions, except where noted) (unaudited) | Rosebel |
| Essakane |
| Doyon Division |
| Sadiola |
| Yatela |
| Total |
| Other1 |
| Total2 |
Cost of sales costs, excluding depreciation, depletion, amortization
| $ | 274.4 |
| $ | 217.4 |
| $ | 8.4 |
| $ | 111.2 |
| $ | 48.8 |
| $ | 660.2 |
| $ | 126.3 |
| $ | 786.5 |
Adjust for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By-product credit (excluded from mining costs)
|
| (0.7) |
|
| (0.9) |
|
| (0.5) |
|
| (0.2) |
|
| - |
|
| (2.3) |
|
|
|
|
|
|
|
Stock movement
|
| 0.8 |
|
| 2.7 |
|
| (2.2) |
|
| (1.0) |
|
| 0.4 |
|
| 0.7 |
|
|
|
|
|
|
|
Other mining costs
|
| (4.9) |
|
| (8.1) |
|
| (5.2) |
|
| (2.1) |
|
| (10.5) |
|
| (30.8) |
|
|
|
|
|
|
|
Cost attributed to non-controlling interests
|
| (13.5) |
|
| (21.1) |
| - |
|
| - |
|
|
| - |
|
| (34.6) |
|
|
|
|
|
|
| $ | (18.3) |
| $ | (27.4) |
| $ | (7.9) |
| $ | (3.3) |
| $ | (10.1) |
| $ | (67.0) |
|
|
|
|
|
|
Total cash costs - operating mines
| $ | 256.1 |
| $ | 190.0 |
| $ | 0.5 |
| $ | 107.9 |
| $ | 38.7 |
| $ | 593.2 |
|
|
|
|
|
|
Attributable gold production - operating mines (000s oz )
|
| 382 |
|
| 315 |
|
| 4 |
|
| 100 |
|
| 29 |
|
| 830 |
|
|
|
|
|
|
Total cash costs ($/oz)
| $ | 671 |
| $ | 603 |
| $ | 137 |
| $ | 1,076 |
| $ | 1,337 |
| $ | 715 |
|
|
|
|
|
|
|
Fourth quarter ended December 31, 2011 | Operating Gold Mines | Other |
($ millions, except where noted) (unaudited) | Rosebel |
| Essakane |
| Doyon Division |
| Sadiola |
| Yatela |
| Total |
| Other1 |
| Total2 |
Cost of sales, excluding depreciation, depletion, amortization
|
$
|
66.2
|
|
$
|
47.8
|
|
$
|
22.7
|
|
$
|
29.6
|
|
$
|
14.7
|
|
$
|
181.0
|
|
$
|
29.5
|
|
$
|
210.5
|
Adjust for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By-product credit (excluded from mining costs)
|
|
(0.4)
|
|
|
(0.5)
|
|
|
(0.4)
|
|
|
(0.1)
|
|
|
0.1
|
|
|
(1.3)
|
|
|
|
|
|
|
|
Stock movement
|
|
4.6
|
|
|
(0.2)
|
|
|
(2.4)
|
|
|
(1.1)
|
|
|
(0.8)
|
|
|
0.1
|
|
|
|
|
|
|
|
Other mining costs
|
|
(4.9)
|
|
|
(2.4)
|
|
|
(0.5)
|
|
|
(0.2)
|
|
|
(1.5)
|
|
|
(9.5)
|
|
|
|
|
|
|
|
Cost attributed to non-controlling interests
|
|
(3.3)
|
|
|
(4.5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(7.8)
|
|
|
|
|
|
|
|
$
|
(4.0)
|
|
$
|
(7.6)
|
|
$
|
(3.3)
|
|
$
|
(1.4)
|
|
$
|
(2.2)
|
|
$
|
(18.5)
|
|
|
|
|
|
|
Total cash costs - operating mines
|
$
|
62.2
|
|
$
|
40.2
|
|
$
|
19.4
|
|
$
|
28.2
|
|
$
|
12.5
|
|
$
|
162.5
|
|
|
|
|
|
|
Attributable gold production - operating mines (000s oz )
|
|
104
|
|
|
94
|
|
19
|
|
|
28
|
|
|
8
|
|
|
253
|
|
|
|
|
|
|
|
Total cash costs ($/oz)
|
$
|
598
|
|
$
|
425
|
|
$
|
1,044
|
|
$
|
1,023
|
|
$
|
1,604
|
|
$
|
643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2011 | Operating Gold Mines | Other |
($ millions, except where noted) (unaudited) | Rosebel |
| Essakane |
| Doyon Division |
| Sadiola |
| Yatela |
| Total |
| Other1 |
| Total2 |
Cost of sales, excluding depreciation, depletion, amortization
| $ |
248.7
|
|
$
|
191.9
|
|
$
|
37.8
|
|
$
|
98.1
|
|
$
|
46.5
|
|
$
|
623.0
|
|
$
|
114.9
|
|
$
|
737.9
|
Adjust for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By-product credit (excluded from mining costs)
|
|
(1.1)
|
|
|
(1.1)
|
|
|
(1.2)
|
|
|
(0.3)
|
|
|
-
|
|
|
(3.7)
|
|
|
|
|
|
|
|
Stock movement
|
|
9.1
|
|
|
(0.7)
|
|
|
(5.6)
|
|
|
1.0
|
|
|
(0.8)
|
|
|
3.0
|
|
|
|
|
|
|
|
Other mining costs
|
|
(7.1)
|
|
|
(7.2)
|
|
|
(5.6)
|
|
|
(0.2)
|
|
|
(1.4)
|
|
|
(21.5)
|
|
|
|
|
|
|
|
Cost attributed to non-controlling interests
|
|
(12.5)
|
|
|
(18.3)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(30.8)
|
|
|
|
|
|
|
| $ |
(11.6)
|
|
$
|
(27.3)
|
|
$
|
(12.4)
|
|
$
|
0.5
|
|
$
|
(2.2)
|
|
$
|
(53.0)
|
|
|
|
|
|
|
Total cash costs - operating mines
| $ |
237.1
|
|
$
|
164.6
|
|
$
|
25.4
|
|
$
|
98.6
|
|
$
|
44.3
|
|
$
|
570.0
|
|
|
|
|
|
|
Attributable gold production - operating mines (000s oz )
|
|
385
|
|
|
337
|
|
|
24
|
|
|
121
|
|
|
29
|
|
|
896
|
|
|
|
|
|
|
Total cash costs ($/oz)
| $ |
616
|
|
$
|
488
|
|
$
|
1,076
|
|
$
|
816
|
|
$
|
1,534
|
|
$
|
636
|
|
|
|
|
|
|
2.e. | NON-GAAP FINANCIAL MEASURES - CASH COSTS (UNAUDITED)
|
2.e. |
|
| NON-GAAP FINANCIAL MEASURES - UNIT OPERATING MARGIN PER KILOGRAM OF NIOBIUM FOR THE NIOBEC MINE (UNAUDITED) |
|
|
|
|
The Company's News Release refers to operating margin per kilogram of
niobium at the Niobec mine, a non-GAAP performance measure, in order to
provide investors with information about the measure used by management
to monitor the performance of its non-gold asset, the Niobec mine. The
information allows management to assess how well the Niobec mine is
performing relative to the plan and to prior periods, as well as,
assess the overall effectiveness and efficiency of the operations. The
operating margin per kilogram of niobium does not have any standardized
meaning prescribed by Canadian GAAP, are unlikely to be comparable to
similar measures presented by other issuers, and should not be
considered in isolation or a substitute for measures of performance
prepared in accordance with GAAP.
The following table provides a reconciliation of operating margin per
kilogram of niobium at the Niobec mine to revenues, and mining costs as
per the unaudited consolidated interim statement of earnings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions, except where noted) |
| Quarters ended December 31, |
| Year ended December 31, |
| 2012 |
|
2011
|
| 2012 |
|
2011
|
Revenues from the Niobec mine
|
| $ | 46.0 |
|
$
|
47.7
|
| $ | 190.5 |
|
$
|
177.8
|
Mining costs from the Niobec mine
|
| $ | (28.8) |
|
$
|
(28.5)
|
| $ | (117.9) |
|
$
|
(111.2)
|
Other mining costs
|
|
| (0.2) |
|
|
0.9
|
|
| (0.2) |
|
|
0.9
|
Operating margin
|
| $ | 17.0 |
|
$
|
20.1
|
| $ | 72.4 |
|
$
|
67.5
|
Sales volume (millions of kg Nb)
|
|
| 1.1 |
|
|
1.3
|
|
| 4.7 |
|
|
4.6
|
Operating margin ($/kg Nb) |
| $ | 15 |
|
$
|
16
|
| $ | 15 |
|
$
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suriname - Rosebel Mine (IAMGOLD interest - 95%) Summarized Results 100% Basis |
|
|
|
|
Years ended December 31,
|
| 2012 | Change |
2011
|
Total operating material mined (000s t)
| 55,165 | 4% |
53,122
|
Capital waste mined (000s t)
| 1,996 | - |
-
|
Strip ratio1 | 3.1 | 3% |
3.0
|
Ore milled (000s t)
| 12,817 | - |
12,862
|
Head grade (g/t)
| 1.0 | - |
1.0
|
Recovery (%)
| 96 | 2% |
94
|
Gold production - 100% (000s oz)
| 402 | (1%) |
406
|
Attributable gold production - 95% (000s oz)
| 382 | (1%) |
385
|
Gold sales - 100% (000s oz)
| 393 | 1% |
390
|
Gold revenue ($/oz)2 | $ | 1,666 | 7% |
$
|
1,555
|
Cash cost excluding royalties ($/oz)
| $ | 576 | 9% |
$
|
528
|
Royalties ($/oz)
| $ | 95 | 8% |
$
|
88
|
Total cash cost ($/oz)3 | $ | 671 | 9% |
$
|
616
|
1
|
Strip ratio is calculated as waste divided by ore mined.
|
2
|
Gold revenue per ounce is calculated as gold sales divided by ounces of
gold sold.
|
3
|
Total cash cost per ounce is a non-GAAP measure. Refer to the Non-GAAP
performance measures section of the MD&A for reconciliation to GAAP
measures.
|
|
|
|
|
|
|
|
|
Burkina Faso - Essakane Mine (IAMGOLD interest-90%) Summarized Results 100% Basis |
|
|
|
|
|
|
|
|
Years ended December 31,
|
| 2012 |
| Change |
|
2011
|
Total operating material mined (000s t)
| 11,739 |
| (35%) |
|
18,015
|
Capital waste mined (000s t)
| 24,614 |
| 169% |
|
9,152
|
Strip ratio1 | 2.8 |
| 65% |
|
1.7
|
Ore milled (000s t)
| 10,762 |
| 35% |
|
7,977
|
Head grade (g/t)
| 1.1 |
| (27%) |
|
1.5
|
Recovery (%)
| 92 |
| (3%) |
|
95
|
Gold production - 100% (000s oz)
| 350 |
| (7%) |
|
375
|
Attributable gold production - 90% (000s oz)
| 315 |
| (7%) |
|
337
|
Gold sales - 100% (000s oz)
| 351 |
| (7%) |
|
379
|
Gold revenue ($/oz)2 | $ | 1,668 |
| 7% |
|
$
|
1,553
|
Cash cost excluding royalties ($/oz)
| $ | 520 |
| 28% |
|
$
|
407
|
Royalties ($/oz)
| $ | 83 |
| 2% |
|
$
|
81
|
Total cash cost ($/oz)3 | $ | 603 |
| 24% |
|
$
|
488
|
1
|
Strip ratio is calculated as waste divided by ore mined.
|
2
|
Gold revenue per ounce is calculated as gold sales divided by ounces of
gold sold.
|
3
|
Total cash cost per ounce is a non-GAAP measure. Refer to the Non-GAAP
performance measures section of the MD&A for reconciliation to GAAP
measures.
|
|
|
|
|
|
|
|
Canada - Doyon Division (IAMGOLD interest - 100%) Summarized Results 100% Basis |
|
|
|
|
|
|
|
|
Years ended December 31,
|
|
| 2012 |
| Change |
|
2011
|
Total operating material mined (000s t)
|
| 71 |
| 25% |
|
57
|
Gold production - 100% (000s oz)
|
| 4 |
| (83%) |
|
24
|
Gold sales - 100% (000s oz)
|
| 7 |
| (79%) |
|
34
|
Gold revenue ($/oz)1 |
| $ | 1,678 |
| 10% |
|
$
|
1,523
|
Cash cost excluding royalties ($/oz)
|
| $ | 100 |
| (90%) |
|
$
|
1,038
|
Royalties ($/oz)
|
| $ | 37 |
| (3%) |
|
$
|
38
|
Total cash cost ($/oz)2 |
| $ | 137 |
| (87%) |
|
$
|
1,076
|
1
|
Gold revenue per ounce is calculated as gold sales divided by ounces of
gold sold.
|
2
|
Total cash cost per ounce is a non-GAAP measure. Refer to the Non-GAAP
performance measures section of the MD&A for reconciliation to GAAP
measures.
|
|
|
|
|
|
|
|
Mali - Sadiola Mine (IAMGOLD interest - 41%) Summarized Results 41% Basis |
|
|
|
|
|
|
|
|
Years ended December 31,
|
|
| 2012 |
| Change |
|
2011
|
Total operating material mined (000s t)
|
| 9,703 |
| 8% |
|
8,957
|
Capital waste mined (000s t)
|
| 3,506 |
| 32% |
|
2,653
|
Strip ratio1 |
| 10.4 |
| 4% |
|
10.0
|
Ore milled (000s t)
|
| 1,902 |
| (4%) |
|
1,979
|
Head grade (g/t)
|
| 1.8 |
| (5%) |
|
1.9
|
Recovery (%)
|
| 89 |
| (5%) |
|
94
|
Attributable gold production - 41% (000s oz)
|
| 100 |
| (17%) |
|
121
|
Attributable gold sales - 41% (000s oz)
|
| 101 |
| (17%) |
|
121
|
Gold revenue ($/oz)2 |
| $ | 1,664 |
| 6% |
|
$
|
1,565
|
Cash cost excluding royalties ($/oz)
|
| $ | 975 |
| 35% |
|
$
|
722
|
Royalties ($/oz)
|
| $ | 101 |
| 7% |
|
$
|
94
|
Total cash cost ($/oz)3 |
| $ | 1,076 |
| 32% |
|
$
|
816
|
1
|
Strip ratio is calculated as waste divided by ore mined.
|
2
|
Gold revenue per ounce is calculated as gold sales divided by ounces of
gold sold.
|
3
|
Total cash cost per ounce is a non-GAAP measure. Refer to the Non-GAAP
performance measures section of the MD&A for reconciliation to GAAP
measures.
|
|
|
Mali - Yatela Mine (IAMGOLD interest - 40%) Summarized Results 40% Basis |
|
|
Years ended December 31,
|
| 2012 |
| Change |
|
2011
|
Total operating material mined (000s t)
| 8,277 |
| 22% |
|
6,797
|
Strip ratio1 | 12.0 |
| 54% |
|
7.8
|
Ore crushed (000s t)
| 1,090 |
| (3%) |
|
1,126
|
Head grade (g/t)
| 1.1 |
| 10% |
|
1.0
|
Attributable gold stacked - 40% (000s oz)
| 35 |
| (8%) |
|
38
|
Attributable gold production - 40% (000s oz)
| 29 |
| - |
|
29
|
Attributable gold sales - 40% (000s oz)
| 29 |
| - |
|
29
|
Gold revenue ($/oz)2 | $ | 1,676 |
| 7% |
|
$
|
1,571
|
Cash cost excluding royalties ($/oz)
| $ | 1,238 |
| (14%) |
|
$
|
1,438
|
Royalties ($/oz)
| $ | 99 |
| 3% |
|
$
|
96
|
Total cash cost ($/oz)3 | $ | 1,337 |
| (13%) |
|
$
|
1,534
|
1
|
Strip ratio is calculated as waste divided by ore mined.
|
2
|
Gold revenue per ounce is calculated as gold sales divided by ounces of
gold sold.
|
3
|
Total cash cost per ounce is a non-GAAP measure. Refer to the Non-GAAP
performance measures section of the MD&A for reconciliation to GAAP
measures.
|
Canada - Niobec Mine (IAMGOLD interest - 100%) Summarized Results 100% Basis |
|
|
Years ended December 31,
|
|
| 2012 |
| Change |
|
|
2011
|
Total operating material mined (000s t)
|
| 2,155 |
| 3% |
|
|
2,087
|
Ore milled (000s t)
|
| 2,195 |
| 4% |
|
|
2,113
|
Grade (% Nb2O5)
|
| 0.55 |
| (4%) |
|
|
0.57
|
Niobium production (millions of kg Nb)
|
| 4.7 |
| 2% |
|
|
4.6
|
Niobium sales (millions of kg Nb)
|
| 4.7 |
| 2% |
|
|
4.6
|
Operating margin ($/kg Nb)1 | $ | 15 |
| - |
|
$
|
15
|
1
|
Operating margin per kilogram of niobium at the Niobec mine is a
non-GAAP measure. Refer to the Non-GAAP performance measures section
of the MD&A for reconciliation to GAAP measures.
|
SOURCE: IAMGOLD Corporation
<p> <b>Bob Tait, </b>VP Investor Relations, IAMGOLD Corporation<br/> Tel: (416) 360-4743 Mobile: (647) 403-5520 </p> <p> <b>Laura Young</b>, Director, Investor Relations, IAMGOLD Corporation<br/> Tel: (416) 933-4952 Mobile: (416) 670-3815 </p> <p> Toll-free: 1-888-464-9999 <a href="mailto:info@iamgold.com">info@iamgold.com</a> </p>