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IAMGOLD aims to double credit facility

IAMGOLD (TSX: IMG) is in talks to double its credit facility to US$500 million to execute its growth strategy, the company said in its latest results.
IAMGOLD aims to double credit facility IAMGOLD aims to double credit facility IAMGOLD aims to double credit facility IAMGOLD aims to double credit facility IAMGOLD aims to double credit facility

Reports weaker third quarter, signals growth ahead

Staff reporter

It reported a weaker third quarter than the first half, with the gold margin "under pressure and production at Rosebel on the lighter side," president and CEO Steve Letwin said.

The company announced attributable gold production of 208,000 ounces, 9,000oz less than a year ago, while its all-in sustaining costs rose $117/oz to $1,086.

IAMGOLD has maintained its total production guidance for the year at 850,000-900,000oz attributable but revised the allocation, upping Essakane's and Sadiola's guidance but reducing Rosebel's to reflect lower mining tonnages and grades in the third quarter.

It has maintained its 2018 AISC forecast of $990-$1,070 per ounce sold.

Meanwhile, the company said it was "in advanced discussions with a syndicate of lenders" to increase its existing credit facility from $250 million to $500 million, to provide additional financial flexibility as it executed its growth strategy.

The company said its upcoming growth catalysts including the oxygen plant to improve recoveries at Essakane, a looming investment decision for the Boto gold project in Senegal, Saramacca production expected to begin in the second half of 2019 and a construction decision for the Côté gold project in Canada likely in the first half of next year.

It expects the facility to close before the end of 2018.

IAMGOLD's revenue was down $24 million compared with a year ago to $244.8 million while the net loss attributable to shareholders was $9.5 million or 2c per share, compared with net earnings of 7c/share in the third quarter of 2017.

"Our balance sheet remains strong, reserves continue to grow and our development projects are looking more robust than ever," Letwin said.

IAMGOLD shares are trading close to the lower end of the 52-week range of C$4.43-$8.20.

They closed down 12c yesterday to $4.76, to capitalise it at $2.2 billion.