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Iamgold (IAG) Posts Earnings in Q1, Sales Increase Y/Y

Zacks

Iamgold Corp. IAG posted loss of $18 million or 4 cents per share in the first quarter of 2017, compared with a profit of $53.1 million or 13 cents recorded a year ago.

Barring one-time items, adjusted earnings came in at a penny per share for the quarter, compared with a loss of 2 cents a year ago. Earnings compared favorably with the Zacks Consensus Estimate of a loss of 2 cents.

Sales rose roughly 18.6% year over year to $260.5 million in the first quarter 2017. Sales benefitted from increased sales volume at Westwood, Rosebel and Essakane and a higher realized gold price.

Iamgold Corporation Price, Consensus and EPS Surprise

Iamgold Corporation Price, Consensus and EPS Surprise | Iamgold Corporation Quote


Operational Performance

Attributable gold production was 214,000 ounces for the quarter, up 12% year over year. Cost of sales was $225.5 million in the reported quarter, up 5.7% due to higher operating costs, higher depreciation and higher royalty expense. Margin per gold equivalent ounce sold was $464, up 5% year over year.

All-in sustaining costs fell to $992 per ounce in the quarter from $1,084 per ounce a year ago.

Financial Review

Net cash from operating activities was $68.3 million, up 32.9% from $51.4 million in the prior-year quarter. Cash and cash equivalents and restricted cash was $1,184.7 million for the reported quarter.

Outlook

The company expects gold production in 2017 to be 845,000 to 885,000 ounces. Also, total cash cost is expected to be between $740 and $780 per ounce. All-in sustaining cost is anticipated between $1,000 and $1,080 an ounce. Capital expenditures is expected to be around $250 million.

Price Performance

Iamgold has outperformed the Zacks categorized Mining-Gold industry in the last six months. The company’s shares returned around 16% over this period, compared with roughly 10% gain recorded by the industry.



Zacks Rank & Key Picks

Iamgold currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the basic material space include BASF SE BASFY, The Chemours Company CC and Kronos Worldwide Inc KRO. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BASF has expected long-term growth of 8.6%.

Chemours has expected long-term growth of 15.5%.

Kronos has expected long-term growth of 5%.

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