Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Iamgold (TSE:IMG) stock was down Monday despite announcing strong fourth-quarter production results.
The Toronto-based mid-tier gold miner said Q4 was its best quarter of the year for gold production, at 253,000 gold ounces compared to 222,000 ounces in the third quarter. However, production was down 20% from the same quarter in 2010.
Iamgold also produced 4.6 million kilograms of niobium. Capital expenditures for 2012 are budgeted at $880 million, nearly double the $460 million budgeted for last year.
Expansions are planned at Iamgold’s Essakane gold mine in Burkina Faso, the Rosebel mine in Surinam, the Sadiola joint venture in Mali, as well as continued development of the Niobec niobium mine and the Westwood gold project in Canada. The latter is expected to startup in the first quarter of 2013.
Iamgold is forecasting 2012 gold production at 840-910,000 ounces and niobium production this year at 4.6-5.1 million kilograms.
“The fourth quarter of 2011 was our best quarter of the year. The very strong production reflects productivity improvements across all of our operations and gives us excellent momentum going into 2012,” IAMGOLD President and CEO Steve Letwin said in a statement. ” I am extremely excited about the progress we are making at enhancing the value of Niobec and the prospects of exploiting our rare earth elements potential.”
