Dallas, Texas 02/24/2014 (FINANCIALSTRENDS) – IAMGOLD Corp (USA) (NYSE:IAG) is the Canadian gold and precious metal producer who is facing some tough times over the past few weeks. In fact, the fall in shares prices have been close to half of the original stock price this producer held at the beginning of 2013.
Gold production dips
IAMGOLD Corp (USA)(NYSE:IAG) has seen a dip in production over the past few months. In 2013 the reported production was 835,000 valued at $1.15 billion. As with all other stocks in the bullion market the recent trend in the sector did affect the overall performance of
IAMGOLD Corp (USA)(NYSE:IAG) as well. This was noticeable as the company saw a drop in prices by 21% in the past one year. The primary reason of course was the drop in gold prices.
IAMGOLD Corp (USA)(NYSE:IAG) also reported an operations loss to the tune of $670 million. The value of loss was due to an impairment charge which was $888 million. The net loss for the company was $832.5 million, indicating an overall per share loss of $2.21.
2014 likely to hold promise
However, the dip in production does not appear to influence the production guidance given by IAMGOLD Corp (USA)(NYSE:IAG) for 2014. Accordingly, the guidance for production has been indicated at 385-900,000 ounces of gold in 2014. However, the mining and production company has also reported midpoint guidance at 867,500 ounces which related to an increase by 4% over the previous year. Therefore, the conclusion is that if it is able to control the costs of production it should see better prices and winning positions for 2014, in comparison to 2013.
IAMGOLD Corp (USA)(NYSE:IAG) is unlikely to see good cash flow over the next season, given that the gold prices are to the tune of $1300 for an ounce.
