Dallas, Texas 02/28/2014 (FINANCIALSTRENDS) – IAMGOLD Corp (USA) (NYSE:IAG) reported losses from its fourth quarter operations ending December 31st, 2013 when it announced results last week. The firm reported a total of 10.1 million ounces of gold as proven reserves in comparison to 23.4 million ounces it had recorded as indicated resources on its books for the fiscal year 2013.
The firm had reported loss of $840 million from its 4Q operations, which translated into a $2.23 per share loss in 4Q. In contrast during 4Q12, the gold mining firm has reported income of $84.6 million. It had reported $0.22 per share in 4Q12. The huge losses reported were due to a substantive 38 percent dip in the firm’s revenue for the quarter to $247.2 million. The dip in revenue and the volume of sales for the firm was linked to the close to 26 percent dip in price of gold in the last quarter of 2013.
In order to arrest the trend of falling profitability, IAMGOLD Corp (USA) (NYSE:IAG) announced that it was cutting its annual expenses by close to 40 percent from FY12 levels to sustain operations in the low price of gold environment. The firm had set aside close to $400 million as capital expenditure after the reduction in its allocations.
Pointing out the silver linings around the bad quarter performance, IAMGOLD Corp (USA) (NYSE:IAG) President, Chief Executive Officer, Director has been quoted to have said that, “Amidst a $125 million company-wide cost reduction program that included a $41 million cut to the exploration plan for the year, the exploration and mine site geology teams made remarkable progress on a number of fronts. The attributable probable mineral reserves at Essakane increased by 25% after depletion from 3.3 to 4.1 million ounces, as additional resources were found.” The stock is down 7 percent since it reported 4Q results last week.