IAMGOLD Reports Record Revenues, Earnings and Cash Flow for 2011
All amounts are expressed in U.S. dollars, unless otherwise indicated
Refer to the annual management discussion and analysis (MD&A) and
audited consolidated financial statements for more information.
TSX: IMG NYSE: IAG
TORONTO, Feb. 23, 2012 /CNW/ - IAMGOLD Corporation ('IAMGOLD' or the 'Company') today reported its consolidated financial results and operating information for the year and fourth quarter ended December 31, 2011. During 2011, the Company generated a record $1.7 billion in revenues from continuing operations supported by an average realized gold price of $1,555 per ounce. Net earnings attributable to equity shareholders, including the earnings from discontinued operations, were a record $806.7 million ($2.15 per share), an increase of 207% compared to 2010. Net earnings from continuing operations attributable to equity shareholders were $391.3 million ($1.04 per share), an increase of 81% over 2010.The Company had cash, cash equivalents and gold bullion at market price of $1.3 billion as of December 31, 2011, with operating cash flow from continuing operations of $589.9 million in 2011, an increase of 70% from $347.8 million in 2010.
For the fourth quarter of 2011, net earnings from continuing operations attributable to equity shareholders were $133.6 million ($0.36 per share), an increase of 22% compared to the fourth quarter of 2010, and operating cash flow from continuing operations of $204.8 an increase of 2% compared to the fourth quarter of 2010.
'In 2011, realized gold prices reached new highs, which allowed us to post strong revenues, gold margins(2) of over $900 per ounce, as well as significantly higher earnings and cash flows,' said Steve Letwin, President and CEO of IAMGOLD. 'More importantly, 2011 was a successful year on many strategic fronts as we profitably divested of a number of non-core gold properties, moved forward on several brownfield expansion projects, uncovered the potential value of Niobec, and have identified what we believe to be the largest deposit of rare earth elements outside of China.'
Mr. Letwin continued, 'In 2012, our gold business will be focused on growth through expansion of our existing projects, the most extensive exploration program in the Company's history and potential accretive acquisitions. Of equal priority will be our initiatives to improve productivity, enabling us to maximize our margins in this high gold price environment. In addition, we will move ahead to expand Niobec and to find alternative ways to maximize the value of our REE resource, both with the ultimate goal of developing these businesses in a way that delivers the best shareholder returns.'
------------------------------
FOURTH QUARTER 2011 HIGHLIGHTS
------------------------------
-- Net earnings from continuing operations attributable to equity
shareholders of $133.6 million ($0.36 per share) increased by
22%, compared to $109.9 million ($0.29 per share) in the fourth
quarter of 2010.
-- Adjusted net earnings from continuing operations attributable
to equity shareholders1 of $108.5 million ($0.29 per share1)
decreased by 9% from $119.2 million ($0.32 per share) in the
fourth quarter of 2010, mainly the result of fewer ounces of
gold sold.
-- Operating cash flow from continuing operations before changes
in working capital1 was $189.4 million ($0.50 per share1)
compared to $190.8 million ($0.51 per share) in the fourth
quarter of 2010.
-- Gold production from continuing operations of 253,000
attributable ounces in the fourth quarter of 2011 was flat with
the same quarter in 2010. Cash costs1 were $643 per ounce in
the fourth quarter of 2011 compared to cash costs of $536 per
ounce during the fourth quarter of 2010. At IAMGOLD operated
sites, the average cash cost per ounce was $562 in the fourth
quarter of 2011 compared to $469 per ounce in the fourth
quarter of 2010.
-- With increases in dividends announced in June and December
2011, the Company's annual dividend payment is $0.25 per share,
representing a 317% increase over the payout rate at the
beginning of 2010. Dividends of $47.0 million were paid in
January 2012.
-- IAMGOLD continued to deliver on its strategy to divest of
non-core assets with the disposal of its investment in two
royalties, including the Magistral gold royalty on properties
in Mexico, for $15.0 million.
------------------------------
FULL YEAR 2011 HIGHLIGHTS
------------------------------
Financial Performance
------------------------------
-- Net earnings attributable to equity shareholders were a record
$806.7 million ($2.15 per share) during 2011, compared to
$262.6 million ($0.71 per share) in 2010. The sale of the
Tarkwa and Damang mines in Ghana and the Mupane mine in
Botswana bolstered net earnings by $415.3 million.
-- Record net earnings from continuing operations attributable to
equity shareholders were $391.3 million ($1.04 per share) an
increase of 81% over 2010, and record operating cash flow from
continuing operations of $589.9 million in 2011, an increase of
70% from prior year, both fuelled by record revenues of $1.7
billion, up 53% from $1.1 billion in 2010.
-- Record adjusted net earnings from continuing operations
attributable to equity shareholders1 of $406.4 million ($1.08
per share1), increased by 82% from $223.2 million ($0.60 per
share) in 2010. The increase was mainly the result of a record
gold margin per ounce2 which increased from $726 to $919 as
metal price increases more than offset the increases in costs.
See the Adjusted Net Earnings reconciliation on page 18 for
further details.
-- Record operating cash flow from continuing operations before
changes in working capital1 of $653.8 million ($1.74 per
share1), increased by 66% compared to $393.4 million ($1.06 per
share) in 2010. See the Operating cash flow from continuing
operations before changes in working capital reconciliation on
page 19 for further details.
-- IAMGOLD delivered on its strategy to divest profitably of the
following non-core assets which provided $737.4 million of cash
in 2011:
o In December 2011, the Company disposed of its investment in two
royalties, including the Magistral gold royalty on properties in
Mexico, for proceeds of $15.0 million and a gain of $12.4 million
net of tax.
o In August 2011, the Company completed the disposition of its Mupane
gold mine in Botswana for total proceeds of $34.2 million,
resulting in net cash proceeds of $6.6 million and a gain of $5.3
million, net of tax.
o In June 2011, the Company completed the sale of its 18.9% interests
in the Tarkwa and Damang gold mines in Ghana, West Africa to Gold
Fields Limited for cash proceeds of $667.0 million, resulting in a
gain of $402.8 million, net of tax.
o In February 2011, the Company disposed of the La Arena project in
Peru, for proceeds of $48.8 million resulting in a gain of
$10.5 million, net of tax.
Financial Position
------------------------------
-- Financial position with cash, cash equivalents and gold bullion
(at market) was at its highest level during the year at
$1.3 billion as of December 31, 2011 compared to $0.4 billion
at December 31, 2010. Operating cash flow during 2011 funded
investments at operating, exploration and development sites
while proceeds from disposals on non-core assets strengthened
the Company's position for strategic growth initiatives in the
gold space.
-- In 2012, the Company plans to incur approximately $880 million
in capital expenditures, which includes $38 million capitalized
exploration. In addition, the Company is projecting $93
million in expensed exploration for 2012.
-- In February 2012, the Company increased its $350.0 million
unsecured revolving credit facility to a four-year, $500.0
million unsecured revolving credit facility. The Company also
increased its revolving facility for the issuance of letters of
credit to $75.0 million.
-- In February 2012, Niobec Inc., a wholly-owned subsidiary of the
Company, entered into a four-year $250.0 million unsecured
revolving credit facility to be used for general corporate
requirements including working capital requirements and
expansion of existing facilities of Niobec.
Production, Cash Costs and Margins
------------------------------
Gold Operations
-- Attributable gold production of 896,000 ounces from continuing
operations in 2011 increased 23% compared to 728,000
attributable ounces in 2010. Total attributable gold
production including discontinued operations was 972,000 ounces
(967,000 ounces in 2010).
-- Weighted average cash costs1 from continuing operations were
$636 per ounce in 2011, compared to $534 per ounce in 2010.
Cash costs at IAMGOLD-operated sites were $573 per ounce
compared to $482 per ounce in 2010.
-- Gold margin2 increased by 27% from $726 per ounce during 2010
to $919 per ounce during 2011 as price increases more than
offset the increases in costs.
Niobec Mine
Niobium production of 4.6 million kilograms increased by 0.2 million kilograms in 2011 compared to 2010, at an operating margin(3 )of $15 per kilogram, compared to $18 per kilogram in 2010. Notwithstanding a higher average price sold, the lower operating margin was due to lower grades and higher costs resulting from mine re-sequencing to align to future plan changes in mining approach, higher prices of consumables and a stronger Canadian dollar.
Reserves and Resources
------------------------------
At the end of 2011, the Company is reporting a decrease in reserves of 0.7 million ounces, or 5%, to 13.3 million ounces. At the end of 2011, total attributable measured and indicated resources of 18.2 million ounces of gold (inclusive of reserves) were consistent with the prior year. The amounts exclude the discontinued operations of Mupane, Tarkwa and Damang. (The Company issued a separate news release on its Reserves and Resources on February 23, 2012).
At the end of 2011, Niobium probable reserves increased by 616% to 1,746 million kilograms of contained niobium pentoxide (Nb(2)O(5)) compared to the prior year.
IAMGOLD announced on February 2nd, 2012 (see News Release) that an inferred resource of 466.8 million tonnes at an average grade of 1.65% Total Rare Earth Oxides ('TREO') was estimated on the rare earth elements ('REE') zone adjacent to its Niobec niobium mine as a result of its 2011 exploration drilling program.
Development and Expansion Projects
------------------------------
The Company issued a separate news release entitled IAMGOLD Releases Update on its Capital Development Projects on February 23, 2012 with updates on its development and expansion projects.
Outlook for Growth
------------------------------
As previously disclosed in January 2012, and in the Company's annual MD&A, IAMGOLD expects:
-- Attributable gold production for 2012 to be in the range of
840,000 to 910,000 ounces at a cash cost1of between $670 and
$695 per ounce.
-- Annual attributable gold production for 2013 and 2014 to be in
the range of 1.0 million to 1.1 million ounces, the increase
coming primarily from the planned start-up of the Westwood mine
in Canada in 2013;
-- Annual niobium production of between 4.6 million and
5.1 million kilograms in 2012 at an operating margin3 of
between $15 and $17 per kilogram. Production is planned to grow
to between 4.8 million and 5.3 million kilograms by 2014;
-- Capital expenditures for the Company's gold assets of
$790 million in 2012, $580 million in 2013, and $410 million in
2014, with a primary focus to advance and expand the Company's
core long-life assets, including the following projects:
o the expansion of the Essakane gold mine in Burkina Faso;
o the continued development of the Westwood gold project in Canada
for start-up in early 2013;
o the expansion of the Rosebel gold mine in Suriname; and
o the expansion of the Sadiola joint venture gold project in Mali to
mine and process sulphide ore.
-- Capital expenditures for Niobec are $90 million in 2012, $120
million in 2013 and $250 million in 2014. These amounts
include pre-production capital for the Niobec mine expansion of
$90 million and $220 million in 2013 and 2014, respectively.
For more detailed information on 2012 to 2014 assumptions used and sensitivity analysis, refer to the Company's annual MD&A.
------------------------------
REVIEW OF FOURTH QUARTER 2011 RESULTS
------------------------------
Financial Performance
------------------------------
Revenues from continuing operations in the fourth quarter of 2011 were $481.6 million, a 9% increase from $440.9 million in the fourth quarter of 2010, primarily due to higher realized gold prices. Realized prices rose 19% to $1,638 per ounce in the fourth quarter of 2011 versus $1,381 per ounce in the fourth quarter of 2010.
Net earnings from continuing operations attributable to equity shareholders were $133.6 million ($0.36 per share) during the fourth quarter of 2011, compared to $109.9 million ($0.29 per share) in the fourth quarter of 2010.
Adjusted net earnings from continuing operations attributable to equity shareholders(1) were $108.5 million ($0.29 per share(1)), down 9% from $119.2 million ($0.32 per share) in the fourth quarter of 2010, mainly the result of lower ounces of gold sold.
Operating cash flow from continuing operations in the fourth quarter of 2011 was $204.8 million compared to $201.1 million in the fourth quarter of 2010. Operating cash flow from continuing operations before changes in working capital(1) in the fourth quarter of 2011 was $189.4 million ($0.50 per share(1)), in line with the fourth quarter of 2010.
Commitment to Zero Harm Continues
The importance of continually striving for Zero Harm is a core value for IAMGOLD. The Company strives to eliminate all injuries through a commitment to safety leadership at all levels, daily engagement of its employees in health and safety, and by fostering a culture of finding and eliminating hazards.
------------------------------
SUMMARIZED FINANCIAL RESULTS
------------------------------
(in $millions) December Change December
31, 2011 31, 2010
Financial Position $ $
Cash, cash equivalents and gold bullion
-- at market 1,262.5 207% 411.3
value
-- at cost 1,148.4 269% 311.2
Total assets 4,349.7 27% 3,431.1
Equity 3,528.9 28% 2,758.1
(in $millions, except Fourth Fourth
where noted) quarter quarter Year Year
ended ended ended ended
December December December December
31, 2011 Change 31, 2010 31, 2011 Change 31, 2010
Results of Continuing $ $ $ $
Operations
Revenues 481.6 9% 440.9 1,673.2 53% 1,097.1
Mining costs 264.6 3% 256.3 914.8 41% 649.4
including
depreciation,
depletion
and amortisation
Earnings from mining 217.0 18% 184.6 758.4 69% 447.7
operations
Net earnings from 133.6 22% 109.9 391.3 81% 215.9
continuing operations
attributable to
equity shareholders
Basic earnings from 0.36 24% 0.29 1.04 79% 0.58
continuing operations
attributable to
equity shareholders
per share ($/share)
Net earnings 133.6 8% 124.1 806.7 207% 262.6
attributable to
equity shareholders
Basic net earnings 0.36 9% 0.33 2.15 203% 0.71
attributable to
equity shareholders
per share ($/share)
Adjusted net earnings 108.5 (9%) 119.2 406.4 82% 223.2
from continuing
operations
attributable to
equity shareholders
(a)
Basic adjusted net 0.29 (9%) 0.32 1.08 80% 0.60
earnings from
continuing operations
attributable to
equity shareholders
per share ($/share)
(a)
Cash Flows
Operating cash flow 204.8 2% 201.1 589.9 70% 347.8
from continuing
operations
Operating cash flow 189.4 (1%) 190.8 653.8 66% 393.4
from continuing
operations
before changes in
working capital(a)
Operating cash flow 0.50 (2%) 0.51 1.74 64% 1.06
from continuing
operations before
changes in working
capital per share
($/share)(a)
(a) Adjusted net earnings from continuing operations attributable to
equity shareholders of the Company, adjusted net earnings from
continuing operations attributable to equity shareholders per
share, operating cash flow from continuing operations before
changes in working capital and operating cash flow from continuing
operations before changes in working capital per share are non-GAAP
measures. Refer to the Supplemental Information attached to the
end of this news release for reconciliation to GAAP measures.
Key Operating Fourth Fourth
Statistics quarter quarter Year Year
ended ended ended ended
December December December December
31, 2011 Change 31, 2010 31, 2011 Change 31, 2010
Gold mines
(Continuingoperations)
Gold sales (000oz)(a) 263 (9%) 289 953 29% 738
Average realized gold 1,638 19% 1,381 1,555 23% 1,260
price ($/oz)
Attributablegold
production (000 oz)
Continuing operations 253 (1%) 255 896 23% 728
Discontinued - (100%) 60 76 (68%) 239
operations
Total 253 (20%) 315 972 1% 967
Cashcost from 643 20% 536 636 19% 534
continuing operations
($/oz)(b)
Goldmarginfrom 995 18% 845 919 27% 726
continuing operations
($/oz)(b)
Niobec mine -
Operating results
Niobium sales 1.3 30% 1.0 4.6 7% 4.3
(millions of kg Nb)
Niobium production 1.2 20% 1.0 4.6 5% 4.4
(millions of kg Nb)
Operating margin ($/kg 16 (6%) 17 15 (17%) 18
Nb)(b)
(a) Gold sales include 100% sales of Rosebel, Essakane and the Doyon
division, 41% of sales from Sadiola, and 40% of sales
from Yatela. Attributable sales for the fourth quarters of 2011 and
2010 were 248,000 ounces and 273,000 ounces, respectively,
and for 2011 and 2010, 896,000 ounces and 706,000 ounces,
respectively, after taking into account 95% of the Rosebel
sales and 90% of the Essakane sales.
(b) Cash cost per ounce, gold margin per ounce, and operating margin
per kilogram of niobium at the Niobec mine are non-GAAP
measures. Refer to the Supplemental Information attached to the
end of this news release for reconciliation to GAAP measures.
------------------------------
ATTRIBUTABLE GOLD PRODUCTION, CASH COST AND
GOLD MARGIN PER OUNCE
------------------------------
The table below presents the gold production attributable to the Company along with the weighted average cash cost per ounce of production and the gold margin.
Gold TotalCash Gold TotalCash
Production Cost(a) Product Cost(a)
FourthquarterendedDecember Yearended December 31
31
2011 2010 2011 2010 2011 2010 2011 2010
IAMGOLD (000 oz) (000 oz) $/oz $/oz (000 (000 oz) $/oz $/oz
Operator oz)
Rosebel 104 119 598 449 385 395 616 484
(95%)
Essakane 94 80 425 414 337 122 488 429
(90%)
Doyon 19 18 1,044 843 24 33 1,076 655
division
(100%)[3]
217 217 562 469 746 550 573 482
Joint
Ventures
Sadiola 28 29 1,023 785 121 118 816 653
(41%)
Yatela (40%) 8 9 1,604 1,379 29 60 1,534 780
36 38 1,146 924 150 178 954 696
Continuing 253 255 643 536 896 728 636 534
operations
Discontinued - 60 - 738 76 239 847 695
operations
Total 253 315 643 574 972 967 653 574
Continuing
operations
Cash cost 554 475 551 475
excluding
royalties
Royalties 89 61 85 59
Cash cost(a) 643 536 636 534
Gold margin from continuing
operations
Realized gold 1,638 1,381 1,555 1,260
prices
Cash cost 643 536 636 534
Gold margin(a) 995 845 919 726
(a) Cash cost per ounce and gold margin per ounce are a non-GAAP
measures. Refer to the Supplemental
Information attached to the end of this news release for
reconciliation to GAAP measures.
------------------------------
OPERATIONS
------------------------------
ROSEBEL MINE, SURINAME
Attributable gold production during the fourth quarter of 2011 was 104,000 ounces, 13% lower than the same quarter in the prior year, primarily due to lower grades.
Cash costs per ounce(1 )in the fourth quarter of 2011 were 33% higher than the same quarter in 2010. Labour costs were higher due to inflationary factors in the Surinamese economy and higher global oil prices led to increased cost of hauling and thermal power. In addition, royalties increased with rising gold prices.
ESSAKANE MINE, BURKINA FASO
Attributable production during the fourth quarter of 2011 was 94,000 ounces, compared to 80,000 ounces during the fourth quarter of 2010. During the fourth quarter of 2011, the mine achieved record throughput which was above nameplate capacity.
Cash costs per ounce(1) of $425 in the fourth quarter of 2011 were higher compared to the fourth quarter of 2010 mainly due to higher energy prices, upward pressure on consumable prices and higher royalties due to higher gold prices and an increased royalty rate. During the fourth quarter, the site capitalized 9.2 million tonnes of waste in relation to a capital stripping campaign which began in 2011.
DOYON DIVISION, CANADA
As a cost savings initiative, the ore mined from Mouska had been stockpiled and batch processing commenced in the third quarter and was completed in the fourth quarter of 2011. Ore will be stockpiled throughout 2012 for processing in 2013 as the mill is shut-down and refurbished in preparation for processing ore from the Westwood mine.
SADIOLA MINE, MALI
Attributable gold production of 28,000 ounces for the fourth quarter of 2011 was slightly lower than the prior year period as a result of lower grades.
Cash costs per ounce(1) in the fourth quarter of 2011 were 30% higher than the fourth quarter in 2010 primarily as a result of higher energy costs, higher consumables costs, higher labour costs from a revised mining contract finalized in the fourth quarter of 2010, and increased royalties from higher realized gold prices. During the fourth quarter, the site capitalized 2.7 million attributable tonnes of waste in relation to a capital stripping campaign which began in 2011.
Sadiola distributed a dividend of $8.2 million to IAMGOLD during the fourth quarter of 2011.
YATELA MINE, MALI
Attributable gold production of 8,000 ounces was slightly lower than the same period in the prior year. After completing the mining of the bottom of the main pit in early 2010, mine production shifted to a longer-haul satellite pit, which resulted in lower grades and higher waste stripping.
Cash costs per ounce(1 )during the fourth quarter of 2011 were significantly higher than the same quarter in the prior year mainly the result of a high strip ratio.
------------------------------
GOLD SALES VOLUME AND REALIZED GOLD PRICE
------------------------------
The following table presents the total ounces of gold sold from continuing operations and the realized gold price per ounce.
Fourth Quarter ended December 31 Year ended December 31
Realized Realized
Gold sales gold price Gold sales gold price
(000 oz) ($/oz) (000 oz) ($/oz)
2011 2010 2011 2010 2011 2010 2011 2010
Operator 225 250 1,631 1,383 803 562 1,553 1,275
Joint ventures 38 39 1,677 1,367 150 176 1,566 1,211
Total sales 263 289 1,638 1,381 953 738 1,555 1,260
from continuing
operations(a)
(b)
(a) Gold sales include 100% sales of Rosebel, Essakane and the
Doyon division, 41% of sales from Sadiola, and 40%
of sales from Yatela. Attributable sales for the fourth
quarters of 2011 and 2010 were 248,000 ounces and 273,000
ounces, respectively, and for 2011 and 2010, 896,000 ounces
and 706,000 ounces, respectively, after taking into
account 95% of the Rosebel sales and 90% of the Essakane
sales.
(b) Continuing operations exclude Mupane, Tarkwa and Damang which
are discontinued operations. Gold sales from
discontinued operations for 2011 and 2010 were 79,000 ounces
and 181,000 ounces, respectively.
------------------------------
NIOBEC OPERATING RESULTS
------------------------------
Fourth Quarter ended December Year ended December 31
31
2011 Change 2010 2011 Change 2010
Niobium production 1.2 20% 1.0 4.6 5% 4.4
(millions of kg
Nb)
Niobium sales 1.3 30% 1.0 4.6 7% 4.3
(millions of kg
Nb)
Operating margin 16 (6%) 17 15 (17%) 18
($/kg Nb)(a)
a) Operating margin per kilogram of niobium at the Niobec Mine is a
non-GAAP measure. Refer to the
Supplemental Information attached to the end of this news release
for reconciliation to GAAP measures.
Niobium production and sales during the fourth quarter of 2011 were 20% and 30% higher respectively than the same period last year. Higher production resulted from increased mill throughput reflecting improved utilization of the mill expansion that was completed in late 2010. The operating margin per kilogram(3) of niobium decreased by $1 per kilogram in the fourth quarter of 2011 compared to the same period in 2010. Notwithstanding the higher average price sold, the lower operating margin was due to lower grades and higher costs resulting from higher prices of consumables and a stronger Canadian dollar.
Niobium production during 2011 was 5% higher compared to the prior year. The operating margin per kilogram of niobium decreased by $3 per kilogram in 2011 compared to the same period in 2010.
------------------------------
EXPLORATION
------------------------------
Based on positive exploration results, the Company has confirmed its commitment to organic growth by approving an aggressive corporate exploration budget of $130.6 million in 2012, a 20% increase over the $108.6 million expended in 2011. The 2012 corporate exploration program is the most ambitious ever undertaken by IAMGOLD, and the Company plans to carry out approximately 670,000 metres of core and reverse circulation drilling across 20 early to late stage exploration projects and the Company's four mines and development projects (nearly 495,000 metres completed in 2011). The drilling in 2012 includes a minimum of 2,750 metres on the Rare Earth Element ('REE') Project in Quebec, prior to planning and commencement of more detailed resource evaluation work.
END NOTES
(1) Adjusted net earnings attributable to equity shareholders of
the Company, adjusted net earnings attributable to equity
shareholders per share, cash cost per ounce, operating cash
flow from continuing operations before changes in working
capital and operating cash flow from continuing operations
before changes in working capital per share are non-GAAP
measures. Please refer to the Supplemental information section
attached to the end of this news release for reconciliation to
GAAP measures.
(2) Gold margin per ounce is a non-GAAP measure. Please refer to
the Supplemental Information section attached to the end of
this news release for reconciliation to GAAP measures.
(3) Operating margin per kilogram of niobium at the Niobec mine is
a non-GAAP measure. Please refer to the Supplemental
information section attached to the end of this news release
for reconciliation to GAAP measures.
CONFERENCE CALL
A conference call will be held on February 24, 2012 at 8:00 a.m. (Eastern Standard Time) for a discussion with management regarding the Company's operating performance and financial results for the fourth quarter and full-year 2011. A webcast of the conference call will be available through the Company's website - www.iamgold.com.
Conference Call Information: North America Toll-Free: 1-866-551-1530 or 1-212-401-6700, passcode: 34138884#
A replay of this conference call will be available from 6:00 p.m. February 24th to March 24th, 2012. Access this replay by dialling: North America toll-free: 1-866-551-4520 or 1-212-401-6750, passcode: 279271#
Forward Looking Statement
This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words 'may', 'will', 'should', 'continue', 'expect', 'anticipate', 'estimate', 'believe', 'intend', 'plan' or 'project' or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to meet expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets and other risks disclosed in IAMGOLD's most recent Form 40-F/Annual Information Form on file with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. IAMGOLD uses certain terms in this presentation, such as 'measured,' 'indicated,' or 'inferred,' which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in the IAMGOLD Annual Reports on Forms 40-F. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml or by contacting the Investor Relations department.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a leading mid-tier gold mining company producing approximately one million ounces annually from 5 gold mines (including current joint ventures and investments in associates) on 3 continents. In the Canadian province of Quebec, the Company also operates Niobec Inc., which produces more than 4.5 million kilograms of niobium annually, and owns a rare earth element resource close to its niobium mine. IAMGOLD is uniquely positioned with a strong financial position and extensive management and operational expertise. To grow from this strong base, IAMGOLD has a pipeline of development and exploration projects and continues to assess accretive acquisition opportunities. IAMGOLD's growth plans are strategically focused in West Africa, select countries in South America and regions of Canada.
Please note:
Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le http://www.iamgold.com/French/Home/default.aspx.
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SUPPLEMENTALINFORMATION
1. CONSOLIDATED FINANCIAL STATEMENTS (BALANCE SHEETS, STATEMENTS OF
EARNINGS, STATEMENTS OF COMPREHENSIVE INCOME, AND STATEMENTS OF
CASH FLOWS) - YEAR-ENDED DECEMBER 31 IS AUDITED AND FOURTH QUARTER
ENDED DECEMBER 31 IS UNAUDITED
2. NON-GAAP FINANCIAL MEASURES (UNAUDITED)
a. ADJUSTED NET EARNINGS
b. OPERATING CASH FLOWS FROM CONTINUING OPERATIONS BEFORE
CHANGES IN WORKING CAPITAL
c. GOLD MARGIN
d. CASH COSTS
e. UNIT OPERATING MARGIN PER KILOGRAM OF NIOBIUM FOR THE NIOBEC
MINE
------------------------------
1. CONSOLIDATED FINANCIAL STATEMENTS (BALANCE SHEETS, STATEMENTS OF
EARNINGS,
STATEMENTS OF COMPREHENSIVE INCOME, AND STATEMENTS OF CASH FLOWS)
IAMGOLD CORPORATION
Consolidated Balance Sheets
(Audited;In thousands of U.S. December December January
dollars) 31, 2011 31, 2010 1, 2010
Assets $ $ $
Current assets
Cash and cash equivalents 1,051,613 270,779 191,374
Gold bullion (market value
$210,874;
December 31, 2010 - $140,551;
January 1, 2010 -$108,749) 96,795 40,411 40,408
Receivables and other current 155,919 81,848 82,912
assets
Inventories 239,127 204,716 160,897
1,543,454 597,754 475,591
Non-current assets
Investments in associates 16,259 246,122 232,438
Mining assets 1,881,581 1,788,703 1,624,511
Exploration and evaluation assets 356,494 306,215 174,661
Goodwill 256,689 267,978 267,978
Other non-current assets 295,245 224,333 174,735
2,806,268 2,833,351 2,474,323
4,349,722 3,431,105 2,949,914
Liabilities and Equity
Current liabilities
Accounts payable and accrued 205,951 158,410 140,462
liabilities
Income and mining taxes payable 86,743 52,416 33,485
Dividends payable 46,988 31,324 24,507
Current portion of asset 6,366 4,511 7,119
retirement obligations
Current portion of other 6,577 6,825 5,819
non-current liabilities
352,625 253,486 211,392
Non-current liabilities
Deferred income and mining tax 234,814 216,784 206,944
liabilities
Asset retirement obligations 215,854 182,910 112,094
Other non-current liabilities 17,514 19,804 13,031
468,182 419,498 332,069
820,807 672,984 543,461
Equity
Equity attributable to equity
shareholders of the Company:
Common shares 2,308,633 2,255,498 2,201,528
Contributed surplus 19,869 18,789 12,302
Retained earnings 1,104,884 383,602 151,758
Fair value reserve 41,151 43,267 17,659
3,474,537 2,701,156 2,383,247
Non-controlling interests 54,378 56,965 23,206
3,528,915 2,758,121 2,406,453
4,349,722 3,431,105 2,949,914
IAMGOLD CORPORATION
Consolidated Statements of Earnings
Fourth
(In thousands of U.S. dollars, quarterended Yearended
except per share amounts) December31 December31
(Unaudited) (Audited)
2011 2010 2011 2010
$ $ $ $
Revenues 481,605 440,913 1,673,187 1,097,072
Mining costs 264,579 256,291 914,818 649,355
General and administrative 16,505 13,602 54,246 48,718
expenses
Exploration expenses 21,050 13,964 73,326 45,870
Other 1,394 538 2,637 (565)
Operating costs 303,528 284,395 1,045,027 743,378
Earnings from operations 178,077 156,518 628,160 353,694
Share of net loss from (1,635) - (1,635) -
investments in associates (net
of income tax)
Finance costs (1,469) (1,620) (7,131) (5,980)
Foreign exchange gains 4,059 (2,772) (8,040) (7,788)
(losses)
Interest income, derivatives 26,648 17,967 37,636 31,499
and other investment gains
Earnings from continuing 205,680 170,093 648,990 371,425
operations before income and
mining taxes
Income and mining tax expenses (59,915) (49,756) (220,996) (138,291)
Net earnings from continuing 145,765 120,337 427,994 233,134
operations
Net earnings from discontinued - 14,153 415,320 46,711
operations
Net earnings 145,765 134,490 843,314 279,845
Net earnings from continuing
operations attributable to:
Equity shareholders of the 133,639 109,903 391,344 215,910
Company
Non-controlling interests 12,126 10,434 36,650 17,224
Net earnings from continuing 145,765 120,337 427,994 233,134
operations
Net earnings attributable to:
Equity shareholders of the 133,639 124,056 806,664 262,621
Company
Non-controlling interests 12,126 10,434 36,650 17,224
Net earnings 145,765 134,490 843,314 279,845
Weighted average number of
common shares outstanding
attributable
to equity shareholders of the
Company (in thousands)
Basic 375,870 372,795 374,947 371,392
Diluted 377,142 374,395 376,520 373,255
Earnings from continuing
operations attributable to
equity shareholders
of the Company per share ($
per share)
Basic 0.36 0.29 1.04 0.58
Diluted 0.35 0.29 1.04 0.58
Earnings attributable to
equity shareholders of the
Company per share ($ per
share)
Basic 0.36 0.33 2.15 0.71
Diluted 0.35 0.33 2.14 0.70
IAMGOLD CORPORATION
Consolidated Statements of Comprehensive Income
Fourth
(In thousands of U.S. dollars) quarterended Yearended
December31 December31
(Unaudited) (Audited)
2011 2010 2011 2010
$ $ $ $
Net earnings 145,765 134,490 843,314 279,845
Other comprehensive income (loss),
net of tax:
Net change in fair value of (244) 19,254 4,242 43,926
available-for-sale financial
assets, net of tax
Net change in fair value of 525 (9,544) (6,358) (18,318)
available-for-sale financial assets
and
impairment transferred to the
statement of earnings, net of tax
281 9,710 (2,116) 25,608
Other (881) (949) (881) (949)
Total other comprehensive income (600) 8,761 (2,997) 24,659
(loss), net of tax
Comprehensive income 145,165 143,251 840,317 304,504
Comprehensive income from 145,165 129,098 424,997 257,793
continuing operations
Comprehensive income from - 14,153 415,320 46,711
discontinued operations
Comprehensive income 145,165 143,251 840,317 304,504
Comprehensive income attributable
to:
Equity shareholders of the 133,039 132,817 803,667 287,280
Company
Non-controlling interests 12,126 10,434 36,650 17,224
145,165 143,251 840,317 304,504
IAMGOLD CORPORATION
Consolidated Statements of Cash Flows
Fourth
(In thousands of U.S.dollars) quarter ended Year ended
December 31 December 31
(Unaudited) (Audited)
2011 2010 2011 2010
$ $ $ $
Operating activities:
Net earnings from continuing 145,765 120,337 427,994 233,134
operations
Adjustments for:
Finance costs 1,469 1,620 7,131 5,980
Depreciation, depletion and 44,768 32,011 156,797 116,607
amortisation
Changes in estimates of 10,769 40,979 23,048 40,979
asset retirement
obligations
at closed sites
Income and mining tax 59,915 49,756 220,996 138,291
expenses
Unrealized foreign exchange (3,744) (1,020) 11,438 (686)
loss (gain) on cash and
cash equivalents
Other non-cash items (17,471) (11,676) (21,940) (15,374)
Adjustments for cash items (3,387) (1,555) (8,300) (8,579)
Movements in non-cash working 15,356 10,377 (63,907) (45,528)
capital items and long-term
ore stockpiles
Cash generated from operating 253,440 240,829 753,257 464,824
activities
Interest paid (663) (670) (2,894) (2,686)
Income and mining taxes paid (48,004) (39,000) (160,459) (114,300)
Net cash fromoperating 204,773 201,159 589,904 347,838
activities
Investing activities:
Acquisition of mining assets (112,091) (35,397) (264,326) (256,622)
Acquisition of exploration (35,315) (27,675) (130,818) (112,045)
and evaluation assets
Short-term investments 169,887 - - -
Other investing activities (77,966) 8,766 (94,954) 22,271
Net cash proceeds from 15,000 - 737,406 -
disposals of non-core assets
Net cash from(used in) (40,485) (54,306) 247,308 (346,396)
investing activities
Financing activities:
Proceeds from loan - - - 50,000
Repayment of debt - - - (50,000)
Financing costs - - - (2,365)
Issuance of shares, net of 1,786 901 54,724 54,652
issue costs
Dividends paid (4,887) (1,670) (80,141) (31,684)
Other financing activities 21 22 106 451
Net cash from (used in) (3,080) (747) (25,311) 21,054
financing activities
Impact of foreign exchange on 3,744 1,020 (11,438) 686
cash and cash equivalents
Net cash from (used in) - 10,998 (19,629) 56,223
discontinued operations
Increase in cash and cash 164,952 158,124 780,834 79,405
equivalents
Cash and cash equivalents, 886,661 112,655 270,779 191,374
beginning of period
Cash and cash equivalents, 1,051,613 270,779 1,051,613 270,779
end of the year
2. a. NON-GAAP FINANCIAL MEASURES ‒ ADJUSTED NET EARNINGS (UNAUDITED)
Adjusted net earnings from continuing operations attributable to equity shareholders and adjusted net earnings from continuing operations attributable to equity shareholders per share are non-GAAP financial measures. Management believes that these measures better reflect the Company's performance for the current period and are a better indication of its expected performance in future periods. Adjusted net earnings from continuing operations attributable to equity shareholders and adjusted net earnings from continuing operations attributable to equity shareholders per share are intended to provide additional information, but do not have any standardized meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other issuers, and should not be considered in isolation or a substitute for measures of performance prepared in accordance with IFRS. Adjusted net earnings from continuing operations attributable to equity shareholders represent net earnings from continuing operations attributable to equity shareholders excluding certain impacts, net of tax, such changes in estimates of asset retirement obligations including unrecognized tax benefits, unrealized derivative gain or loss, gain/loss on sale of marketable securities and assets, foreign exchange gain or loss, executive severance costs, as well as the impact of significant change in tax laws for mining taxes, and unrealized gain on foreign exchange translation of deferred income and mining tax liabilities. These measures are not necessarily indicative of net earnings or cash flows as determined under IFRS. The following table provides a reconciliation of net earnings from continuing operations attributable to equity shareholders as per the unaudited condensed consolidated interim statement of earnings, to adjusted net earnings from continuing operations attributable to equity shareholders.
Adjusted net earnings from continuing operations attributable to equity shareholders
(in $ millions, except for number of Fourth quarter ended Yearended
shares and per December 31 December31
share amounts)
2011 2010 2011 2010
$ $ $ $
Net earnings from continuing 133.6 109.9 391.3 215.9
operations
attributable to equity shareholders
Executive severance costs - - - 0.8
Foreign exchange loss/(gain) (6.0) 0.2 6.1 5.2
Derivative loss/(gain) (15.7) (1.7) 3.4 0.6
Gain on sales of marketable (1.9) (13.2) (8.9) (22.1)
securities
Gain on sales of assets (9.2) (3.7) (25.1) (3.7)
Changes in estimates of asset 16.7 30.0 25.7 30.0
retirement obligations
including unrecognized tax benefits
Higher/(Lower) taxes from - (5.1) 5.5 (5.1)
significant change in mining tax
laws
Unrealized loss/(gain) on foreign
exchange translation of
deferred income and mining tax
liabilities (9.0) 2.8 8.4 1.6
(25.1) 9.3 15.1 7.3
Adjusted net earnings from
continuing operations
attributable to equity shareholders 108.5 119.2 406.4 223.2
Basic weighted average number of
common shares
outstanding (in millions) 375.9 372.8 374.9 371.4
Basic adjusted net earnings from
continuing operations
attributable to equity shareholders
($/share) 0.29 0.32 1.08 0.60
2. b. NON-GAAP FINANCIAL MEASURES ‒ OPERATING CASH FLOWS FROM
CONTINUING OPERATIONS BEFORE CHANGES IN WORKING
CAPITAL (UNAUDITED)
The Company makes reference to a non-GAAP measure for operating cash flow from continuing operations before changes in working capital and operating cash flow from continuing operations before changes in working capital per share. This measure is defined as cash generated from continuing operations excluding changes in working capital. Working capital can be volatile due to numerous factors including build-up of inventories. Management believes that, by excluding these items from continuing operations, this non-GAAP measure provides investors with the ability to better evaluate the cash flow performance of the Company.
The following table provides a reconciliation of operating cash flow from continuing operations before changes in working capital:
(in $ millions, except where noted) Fourth quarterended Yearended
December31 December 31
2011 2010 2011 2010
$ $ $ $
Cash generated from operating 204.8 201.1 589.9 347.8
activities (continuing operations)
Adjusting items from non-cash working
capital items and long-term ore
stockpiles:
Accounts receivable and other 32.9 2.9 47.8 (20.3)
assets
Inventories and long-term (18.4) 8.0 65.7 73.7
stockpiles
Accounts payable and accrued (29.9) (21.2) (49.6) (7.8)
liabilities
Operating cash flow from continuing 189.4 190.8 653.8 393.4
operations before changes in
working capital
Basic weighted average number of 375.9 372.8 374.9 371.4
common shares outstanding
(in millions)
Basic operating cash flow from 0.50 0.51 1.74 1.06
continuing operations before
changes in working capital per share
($/share)
2. c. NON-GAAP FINANCIAL MEASURES - GOLD MARGIN (UNAUDITED)
This news release refers to gold margin per ounce of gold, a non-GAAP performance measure, in order to provide investors with information about the measure used by management to monitor the performance of its gold assets. The information allows management to assess how well the gold mines are performing relative to the plan and to prior periods, as well as assess the overall effectiveness and efficiency of gold operations.
In periods of rising gold prices it becomes profitable to process lower-grade ore. Such a decision will typically result in an increase in cash costs per ounce, but it is equally important to recognize that margins also increase at an equal or even faster rate. While mining lower grade ore results in less gold being processed in any given period, over the long-run it allows us to optimize the production of profitable gold, thereby maximizing our total financial returns over the life of the mine. IAMGOLD's exploitation strategy, including managing cutoff grades, mine sequencing, and stockpiling practices, is designed to maximize the total value of the asset given conservatively derived assumptions for key economic parameters going forward. At the same time, the site operating teams seek to achieve the best performance in terms of cost per tonne mined, cost per tonne processed and overheads.
The gold margin per ounce of gold does not have any standardized meaning prescribed by IFRS, is unlikely to be comparable to similar measures presented by other issuers, and should not be considered in isolation or a substitute for measures of performance prepared in accordance with IFRS.
The following table provides a reconciliation of gold margin per ounce of gold for the gold operating mine (continuing operations) to gold realized price less cash costs per ounce.
Fourth quarter ended Year ended
December31 December 31
2011 2010 2011 2010
$/oz $/oz $/oz $/oz
Realized gold price 1,638 1,381 1,555 1,260
Cash cost for continuing operations 643 536 636 534
Gold margin 995 845 919 726
2. d. NON-GAAP FINANCIAL MEASURES - CASH COSTS (UNAUDITED)
This news release often refers to cash costs per ounce, a non-GAAP performance measure in order to provide investors with information about the measure used by management to monitor performance. This information is used to assess how well the producing gold mines are performing compared to plan and prior periods, and also to assess the overall effectiveness and efficiency of gold mining operations. 'Cash cost' figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is still an accepted standard of reporting cash costs of gold production in North America. Adoption of the standard is voluntary and the cost measures presented herein may not be comparable to other similarly titled measures of other companies. Costs include mine site operating costs such as mining, processing, administration, royalties, production taxes, and attributable realized derivative gain or loss, but are exclusive of amortisation, reclamation, capital, exploration and development costs. These costs are then divided by the Company's attributable ounces of gold produced to arrive at the total cash costs per ounce. The measure, along with sales, is considered a key indicator of a company's ability to generate operating earnings and cash flow from its mining operations.
These gold cash costs do not have any standardized meaning prescribed by Canadian GAAP and differ from measures determined in accordance with GAAP. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These measures are not necessarily indicative of net earnings or cash flow from operations as determined under GAAP.
The following tables provide a reconciliation of total cash costs per ounce produced for gold mines to the mining costs, excluding depreciation, depletion and amortisation as per the unaudited interim consolidated statement of earnings.
Fourth quarter
ended December
31, 2011
(in $millions,
except where
noted)
(unaudited)
OPERATING GOLD MINES OTHER
Rosebel Essakane Doyon Sadiola Yatela Total Other Total
(a) Division (b)
$ $ $ $ $ $ $ $
Mining costs, 66.2 47.8 11.1 29.6 14.7 169.4 28.8 198.2
excluding
depreciation,
depletion and
amortisation
Adjust for:
By-product (0.4) (0.5) (0.4) (0.1) 0.1 (1.3)
credit
(excluded from
mining costs)
Stock movement 4.6 (0.2) (2.4) (1.1) (0.8) 0.1
Other mining (4.9) (2.4) 11.1 (0.2) (1.5) 2.1
costs
Cost attributed (3.3) (4.5) - - - (7.8)
to
non-controlling
interests
(4.0) (7.6) 8.3 (1.4) (2.2) (6.9)
Cash costs - 62.2 40.2 19.4 28.2 12.5 162.5
operating mines
Attributable gold 104 94 19 28 8 253
production -
operating mines
(000 oz)
Total cash costs 598 425 1,044 1,023 1,604 643
($/oz)
Year ended
December 30, 2011
(in $millions,
except where
noted)
(unaudited)
OPERATING GOLD MINES OTHER
Rosebel Essakane Doyon Sadiola Yatela Total Other Total
(a) Division (b) (c)
$ $ $ $ $ $ $ $
Mining costs, 248.7 191.9 37.8 98.1 46.5 623.0 114.9 737.9
excluding
depreciation,
depletion and
amortisation
Adjust for:
By-product (1.1) (1.1) (1.2) (0.3) - (3.7)
credit
(excluded from
mining costs)
Stock movement 9.1 (0.7) (5.6) 1.0 (0.8) 3.0
Other mining (7.1) (7.2) (5.6) (0.2) (1.4) (21.5)
costs
Cost attributed (12.5) (18.3) - - - (30.8)
to
non-controlling
interests
(11.6) (27.3) (12.4) 0.5 (2.2) (53.0)
Cash costs - 237.1 164.6 25.4 98.6 44.3 570.0
operating mines
Attributable gold 385 337 24 121 29 896
production -
operating mines
(000 oz)
Total cash costs 616 488 1,076 816 1,534 636
($/oz)
(a) Commercial production started July 16, 2010
(b) Niobium, Exploration and evaluation and Corporate segments
(c) As per note 24 of the Company's consolidated financial statements
Fourth quarter ended December 31, 2010
(in $ millions, except where noted) (unaudited)
OPERATING GOLD MINES OTHER
Rosebel Essakane Doyon Sadiola Yatela Total Other Total
(a) Division (b)
$ $ $ $ $ $ $ $
Mining costs, 63.2 42.1 19.4 25.7 11.5 161.9 21.8 183.7
excluding
depreciation,
depletion and
amortisation
Adjust for:
By-product (0.2) (0.1) (1.3) (0.1) (0.1) (1.8)
credit
(excluded from
mining costs)
Stock movement (5.3) (5.1) (2.9) (1.0) 0.8 (13.5)
Other mining (1.1) (0.2) 0.2 (2.0) (0.2) (3.3)
costs
Cost attributed (2.8) (3.6) - - - (6.4)
to
non-controlling
interests
(9.4) (9.0) (4.0) (3.1) 0.5 (25.0)
Cash costs - 53.8 33.1 15.4 22.6 12.0 136.9
operating mines
Attributable gold 119 80 18 29 9 255
production -
operating mines
(000 oz)
Total cash cost 449 414 843 785 1,379 536
($/oz)
Year ended December 31, 2010
(in $ millions, except where noted) (unaudited)
OPERATING GOLD MINES OTHER
Rosebel Essakane Doyon Sadiola Yatela Total Other Total
(a) Division (b) (c)
$ $ $ $ $ $ $ $
Mining costs, 211.2 48.2 28.7 78.4 46.6 413.1 80.1 493.2
excluding
depreciation,
depletion and
amortisation
Adjust for:
By-product (0.4) (0.1) (2.1) (0.2) (0.1) (2.9)
credit
(excluded from
mining costs)
Stock movement (6.0) 11.2 (2.5) 0.6 0.8 4.1
Other mining (3.7) (0.9) (2.2) (1.9) (0.5) (9.2)
costs
Cost attributed (10.0) (5.8) - - - (15.8)
to
non-controlling
interests
(20.1) 4.4 (6.8) (1.5) 0.2 (23.8)
Cash costs - 191.1 52.6 21.9 76.9 46.8 389.3
operating mines
Attributable gold 395 122 33 118 60 728
production -
operating mines
(000 oz)
Total cash cost 484 429 655 653 780 534
($/oz)
(a) Commercial production started July 16, 2010.
(b) Niobium, Exploration and evaluation and Corporate segments.
(c) As per note 24 of the Company's consolidated financial statements.
2. e. NON-GAAP FINANCIAL MEASURES - UNIT OPERATING MARGIN PER KILOGRAM OF NIOBIUM FOR THE NIOBEC MINE (UNAUDITED)
The Company's News Release refers to operating margin per kilogram of niobium at the Niobec mine, a non-GAAP performance measure, in order to provide investors with information about the measure used by management to monitor the performance of its non-gold asset, the Niobec mine. The information allows management to assess how well the Niobec mine is performing relative to the plan and to prior periods, as well as, assess the overall effectiveness and efficiency of the operations. The operating margin per kilogram of niobium does not have any standardized meaning prescribed by Canadian GAAP, are unlikely to be comparable to similar measures presented by other issuers, and should not be considered in isolation or a substitute for measures of performance prepared in accordance with GAAP.
The following table provides a reconciliation of operating margin per kilogram of niobium at the Niobec mine to revenues, and mining costs as per the unaudited consolidated interim statement of earnings.
(in $ millions, except where Fourth quarter ended Yearended
noted) December 31 December 31
2011 2010 2011 2010
$ $ $ $
Revenues from the Niobec mine 47.7 39.2 177.8 158.7
Mining costs per consolidated 198.2 183.7 737.9 493.2
statement of earnings
Mining costs from gold mines as (169.4) (161.9) (623.0) (413.1)
per cash cost reconciliation
Other mining costs (1.2) 0.5 (4.6) (0.7)
Mining costs from the Niobec mine 27.6 22.3 110.3 79.4
Operating margin 20.1 16.9 67.5 79.3
Sales volume (millions of kg Nb) 1.3 1.0 4.6 4.3
Operating margin ($/kg Nb) 16 17 15 18
IAMGOLD Corporation
CONTACT: Bob Tait, VP Investor Relations, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (647) 403-5520
Laura Young, Director, Investor Relations, IAMGOLD Corporation
Tel: (416) 933-4952 Mobile: (416) 670-3815
Toll-free: 1 888 464-9999 info@iamgold.com
