Iamgold earns US$58.8 million in Q1

Although production was down slightly, Iamgold (IMG-T, IAG-N) saw net earnings rise 12% to US$58.8 million during the first quarter.

In fact, the company says it was the second best quarterly net earnings ever – at US16¢ per share — due mainly to a higher gold price and more gold and niobium sold.

Iamgold produced 206,000 oz. gold at an average cash cost of US$524 per oz. compared to 200,000 oz gold at a cash cost of US$456 per oz.

Niobium production increased 19% compared to the first quarter of 2009 to 1.2 million kg at cost of $19 per kg.

Revenues were up 27% to US$240.1 million while operating cash flow rose 26% to US$77.5 million.

The company has US$281.2 million in cash and gold bullion and US$332.1 million available in a credit facility, net of asset retirement guarantees for a total of US$613.3 million in available funds.

Although cash costs have risen a little, Iamgold still expects to achieve its 2010 production goal of 940,000-1 million oz. gold with cash costs between US$490-510 an oz.

Some of the production in the second half of the year will come from the company’s Essakane open pit gold project in Burkina Faso. Iamgold expects to start production in June which will be four to six weeks ahead of schedule. All equipment has been delivered to the site, village relocations have been completed, a tailing berm has been constructed and 2.5 million tonnes of ore was stockpiled as of March 31, 2010. Gold production is estimated at 480,000-490,000 oz. for the first year and a half and 318,000 oz. per year until 2018.

There were a few significant changes in production at Iamgold’s operations during the quarter.

The mill expansion at the Rosebel mine in Suriname drove production higher by 10,000 oz.

Iamgold shutdown its Doyon mine in Rouyn-Noranda, Que., in December 2009, causing a 27,000-oz. shortfall in gold production. Ore from the Mouska mine, which is part of the Doyon operation, is being stockpiled for the time being to process later in the year at a lower overall production cost.

Production at the Sadiola mine in Mali was down by 6,000 oz. because the company is now mining from lower grade pits near the main pit.

At the Yatela mine in Mali, gold production more than doubled to 14,000 oz. in the quarter as a result of the company processing higher gold grades from ore stacked in prior periods.

Production was about 4,000 oz. higher at the Tarkwa mine in Ghana where Iamgold recently installed a new carbon in leach plant.

Iamgold shares were down 30¢ in Toronto today to $18.55 per share on a trading volume of 3 million shares.