IAMGOLD (NYSE:IAG) has followed the path of a number of gold miners this quarter, falling in earnings even though gold prices had soared during the quarter, pointing to higher costs.
Net earnings came in at $35.7 million, or $0.10 a share, down from the same quarter last year, when they earned $44.1 million, or $0.12 a share.
Adjusted net earnings reached $39.1 million, or $0.11 a share, a gain of 24 percent over last year when they had adjusted net earnings of $31.5 million, or $0.09 a share.
Most of the drop in earnings came from closing its Doyon mine in December 2009. Other major factors were the lower quality of ore grade at Yatela, Rosebel, Sadiola and Mupane, which lowered production but raised costs.
Gold production for the quarter was 190,000 attributable ounces at an average cash cost of $623 an ounce. That was down 24 percent from last year.
Guidance for gold production was raised from 940,000 to 1,000,000 ounces at a cash cost between $490 and $510 an ounce to a range from 980,000 and 1,010,000 ounces at a cash cost between $530 and $550 an ounce.
Niobium production estimates were also increased to a range of 4.5 million to 4.7 million kilograms.
Revenue for the quarter dropped to $214 million, a 5 percent decline from last year as gold sales fell.
IAMGOLD closed at $17.32 in New York, dropping $0.57, or 3.19 percent.
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