IAG Stock: Why The Price Increased Today

By Amit Chowdhry ● Oct 18, 2021
  • The stock price of Iamgold Corp (NYSE: IAG) increased by over 4% during intraday trading today. This is why it happened.

The stock price of Iamgold Corp (NYSE: IAG) increased by over 4% during intraday trading today. Investors are responding positively to IAMGOLD providing preliminary operating results for the third quarter of 2021.

These are the highlights:

— The capital expenditures for Essakane, Rosebel, and Westwood in the third quarter totaled $67 million and $166 million for the nine months ended September 30, 2021. And it is expected that capital spending for the year at operations will be lower than the full-year guidance of $260 million mainly relating to the timing of spending on various capital improvements. 

— The capital expenditures for projects, including Côté Gold, totaled $72 million and $228 million in the third quarter and the nine months ended September 30, 2021, respectively, and are expected to be lower than the full-year guidance of $485 million. The Côté Gold project remains on track for commercial production in the second half of 2023.

— Cash, cash equivalents, and short-term investments totaled $748.3 million as of September 30, 2021.

— The Essakane mine continued to deliver strong results and achieved attributable gold production of 106,000 ounces, in line with the prior quarter, as increased throughput and improved recoveries offset the impact of lower grades. And the mill processed 3.3 million tonnes at an average grade of 1.33 g/t and achieved an average recovery of 83%, compared to 3.2 million tonnes at an average grade of 1.44 g/t and an average recovery of 81% in the second quarter.

— The mining activity achieved 15.2 million tonnes, in line with the second quarter, including 3.9 million tonnes of ore compared to 3.6 million tonnes of ore in the second quarter.

— The company is continuing to monitor the security situation and make appropriate precautionary adaptations. And the logistics of materials, supplies and gold shipments are being managed and have not been materially impacted to date. They are also continuing to engage with the relevant authorities and other partners in Burkina Faso in connection with security in the region around Essakane and its supply routes.

— The Rosebel mine performed in line with the updated plan and achieved attributable gold production of 40,000 ounces. And the mill processed 2.7 million tonnes at an average grade of 0.68 g/t and average recovery of 82%, compared to 2.2 million tonnes at an average grade of 0.52 g/t and average recovery of 83% in the second quarter. Rosebel had provided 21% of the mill feed at an average grade of 0.64 g/t and Saramacca provided 36% of the mill feed at an average grade of 0.76 g/t. The remaining 43% mill feed was from long term stockpiles.

— The tonnes mined totaled 11.1 million, 38% higher than in the second quarter, and included 1.4 million tonnes of ore, compared to 1.1 million tonnes of ore during the second quarter.

— The production continues to be impacted while the additional safety measures are implemented. And gold production in the third quarter of 7,000 ounces is 13% lower than in the second quarter. The mill processed 220,000 tonnes at an average grade of 1.11 g/t and average recovery of 92%, compared to 264,000 tonnes at an average grade 0.92 g/t and average recovery of 93% in the second quarter.

— The underground mining productivity rates, including the installation of ground support, is improving. And the underground mine produced 31,000 tonnes of ore, compared to 14,000 tonnes of ore in the second quarter. At Grand Duc 171,000 tonnes of ore were mined in the third quarter, compared to 273,000 in the second quarter.

— Due to the updated closure costs in respect of the Westwood mine and a preliminary update in Rosebel’s mine plan, the company is reviewing the carrying amount of the Westwood and Rosebel mines to determine whether an adjustment is necessary.

KEY QUOTES:

“We achieved attributable production of 153,000 ounces during the third quarter and are pleased that our total attributable production is trending towards the upper end of the guidance range. Essakane continues to deliver strong results and Rosebel is performing in line with the updated plan. Production at Westwood was lower than plan, although underground mine productivity is improving while we continue to prioritize implementing safety measures as part of the business recovery plan. The teams continue to respond and adapt successfully to the challenges we experienced in the first half of the year.”

— Gordon Stothart, President and CEO of IAMGOLD

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.