GOLD: Iamgold expects lower production, higher costs in 2019

TORONTO – Iamgold expects to produce  fewer gold ounces while incurring higher all in sustaining costs and total cash costs in 2019 compared to 2018, the company said in its year end production results and 2019 guidance. Iamgold produced 882,000 attributable ounces of gold in 2018, achieving the higher end of its production guidance.  However, the company expects its total cash costs and all in sustaining costs will also land at the higher end of its 2018 guidance, close to US$800 per oz. of gold produced and US$1,070 per oz. of gold sold. Despite a “significant increase” in reserves at its Essakane, Rosebel, Cote Gold and Boto Gold projects, as well as a maiden reserve estimate for its Saramacca gold project, the company expects it will produce fewer gold ounces in 2019, with attributable production ranging from 810,000 to 870,000 oz. gold. The company expects US$765 to US$815 per oz. gold total cash costs and US$1,030 to US$1,080 per oz. of gold all-in sustaining costs. The company expects lower production during the first half of 2019. It expects production will build and costs will come down in the second half of the year as it brings Saramacca online. The company expects to spend US$60 million on exploration in 2019, down from US$81 million in 2018. Shares of Iamgold are currently trading at $4.19 with a 52-week range of $3.64 to $8.20. The company has as $2 billion market capitalization. This story first appeared on www.NorthernMiner.com.