Canada-based gold miner Iamgold Corp. (IAG: Quote,IMG.TO: Quote) on Monday reported a 29 percent decline in profit for the second quarter as higher mining costs offset double-digit revenue growth. However, adjusted earnings increased from last year. Looking ahead, the company reiterated its production outlook for fiscal 2012.
The company's attributable gold sales for the quarter rose 16 percent from last year to 212,000 ounces and gold production increased 9 percent to 204,000 ounces.
Gold margin increased by 5 percent to $856 per ounce as an increase in the average realized gold price offset the increase in mining costs. Average gold price increased 5 percent to $1,593 per ounce.
Meanwhile, Niobium sales for the quarter declined 8 percent from last year to 1.2 million kilograms.
Iamgold's second-quarter net earnings from continuing operations attributable to equity holders declined to $52.9 million or $0.14 per share from $74.5 million or $0.20 per share in the same prior year period.
Excluding the impact of items such as impairment of marketable securities and foreign exchange translation, adjusted net earnings from continuing operations rose to $74.0 million or $0.20 per share from $67.7 million or $0.18 per share in the prior-year quarter.
On average, eleven analysts polled by Thomson Reuters expected the company to earn $0.20 per share for the quarter. Analysts estimates typically exclude special items.
Revenues for the quarter grew 19 percent to $410.6 million from $345.7 million in the year-ago period, mainly due to higher gold sales and gold prices. Analysts had a consensus revenue estimate of $397.95 million.
Mining costs for the quarter increased 25 percent to $250.1 million.
Looking ahead to fiscal 2012, Iamgold reiterated its outlook for total attributable gold production in the range of 840,000 to 910,000 ounces and average gold price of $1,700 per ounce. Niobium production for the year is expected to be between 4.6 million and 5.1 million kilograms.
IAG closed Monday's trading at $11.23, down $0.24 or 2.09 percent on a volume of 1.42 million shares. In after-hours, the stock added $0.03 or 0.23 percent to $11.26.
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by RTT Staff Writer
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