- IAMGOLD (TSX:IMG) has met gold production targets during its first quarter, despite COVID-19’s impact on its operations
- The company’s mines produced 170,000 ounces in the first quarter, on track with its previous guidance
- At the Essakane and Rosebel mines, quarterly production remained uninterrupted, but both sites have now moved to self-confinement
- The company placed its Westwood mine under care and maintenance but it only remained suspended for six days
- IAMGOLD (IMG) is down 2.12 per cent, with shares trading for $5.09 and a market cap of $2.4 billion
IAMGOLD (TSX:IMG) has met gold production targets during its first quarter, despite COVID-19 disruptions.
The company’s mines met the 170,000 ounces target in the first quarter, but felt the pandemic’s impact in March.
While production was strong, IAMGOLD reported a quarterly net loss of C$34.4 million. The company attributes this to losses related its Rosebel power assets, rather than the pandemic’s direct impact.
Despite the strong performance, IAMGOLD has lowered the annual production guidance for the Westwood and Essakane Mines. Westwood’s guidance has reduced by 5,000 ounces and Essakane’s has reduced by 15,000 ounces.
Production during the first quarter remained uninterrupted at the Essakane and Rosebel mines, albeit with new distancing measure in place. Both sites have now moved to self-confinement, to limit any potential COVID-19 spread from or to neighbouring communities.
During the quarter, the company placed its Westwood mine under care and maintenance, due to local quarantine measures. However, the site only remained suspended for six days and therefore has not been materially impacted.
IAMGOLD’s newly appointed President and CEO, Gordon Stothart, pointed to the company’s ongoing cash flow, amid COVID-19’s challenging environment.
“IAMGOLD benefited from strong revenues on higher gold prices in the quarter, generating $44 million in operating cash flow, notwithstanding the rapid onset of the COVID-19 crisis toward the end of the quarter.
“In response to the global COVID-19 crisis, the IAMGOLD team has proved both agile and resilient, drawing upon our deep bench strength to manage efforts at each of our locations, and taking a collaborative approach to government and community relations,” he said.
IAMGOLD (IMG) is down 2.12 per cent, with shares trading for $5.09 at 12:05pm EDT.
