West African rains dampen Iamgold’s output

All in all, 2003 was a productive year for Iamgold (IMG-T), which cranked out 421,000 attributable ounces at a weighted cash cost of US$225 per oz.

Still, output was 2% lower and cash costs 5% higher than mid-year predictions, which were revised themselves from earlier forecasts. Iamgold attributes the recent setback to unexpectedly heavy rains and higher fuel costs in the latter half of the year.

Iamgold has interests in four mines in two West African countries. Sadiola, in which it owns 38%, and Yatela, in which it owns 40% and which is 25 km to the north, are in Mali, whereas Tarkwa and Damang, in each of which the company holds 18.9% stakes, is in Ghana. The Ghanian mines were acquired through the January 2003 merger with Repadre Capital.

Sadiola was the biggest contributor to the year, accounting for 172,000 oz. of Iamgold’s production. Cash costs totalled US$213 per oz.

The Yatela mine added 87,000 oz. to the company’s account at a cash cost of US$244 per oz. Like Sadiola, the mine employs open-pit, heap-leach techniques to produce its gold.

The remaining interest in Sadiola is divided among AngloGold (AU-N), with 38%, the government, with 18%, and International Finance Corp., with 6%. As for Yatel, AngloGold holds 40%, and the government, 20%.

AngloGold also acts as operator at both mines.

Combined, Tarkwa and Damang contributed 162,000 oz., with the former accounting for 105,00 oz. The weighted cash cost was US$226 per oz.

Although part of the same mining complex, Tarkwa and Damang are physically separate, comprising three distinct processing circuits. Both are open pits, but Tarkwa employs heap-leaching technology to treat the ore.

Gold Fields (GFI-N) holds 71.1% interests and runs the open-pit operations. The remaining interest is held by the government, on a carried basis.

In 2004, Iamgold expects the mines to contribute 440,000 oz. to its account, at a weighted cash cost of US$220 per oz.

Iamgold will release its 2003 financial results on March 4.

Iamgold’s balance sheet includes US$100 million in cash and bullion.