IAMGOLD Corp (USA) (NYSE:IAG) Suriname Mine Workers Go On Strike

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IAMGOLD Corp (USA) (NYSE:IAG) reported that employees at its Rosebel Gold Mine located in Suriname have went on a strike over the matter of the process of laying off almost 10% of its employees. However, Rosebel has followed the legal process and has given a fair severance package, which more than 50% of the affected employees have already accepted.

The highlights

The layoffs were reported in a news release in the second week of October as a measure to further cut costs at Rosebel as required by the prevailing gold price environment. In the last couple of years, IAMGOLD has reduced overall costs and improved productivity by nearly $175 million and Rosebel has significantly contributed in this improved performance. Further cost cuts, however, are necessitated as the gold prices has continued to fall below $1,100 per ounce.

IAMGOLD Corp (USA) (NYSE:IAG) reported that Rosebel has produced nearly four million ounces of gold in first eleven years of operation. In the first three quarters of 2015, the unit has produced more than 210,000 ounces of yellow metal on an attributable basis at all-in sustaining price of $1,082 per ounce. IMGOLD’s 2015 yearly guidance for Rosebel unit to produce gold between 290,000 ounces and 300,000 ounces remains unchanged, which will be re-evaluated based on the length of the strike.

The profile

IAMGOLD Corp (USA) (NYSE:IAG) is a mid-tier mining firm with 4 operating gold mines spread in three continents. It boasts a solid platform of strategic assets in South and North America and West Africa is supported by exploration and development projects and continued evaluation of accretive acquisition opportunities. The company is in a robust financial position with extensive operational and management expertise. Recently, it confirmed the conclusion of expert evaluations of the seismic event in May 2015, the CSST, has approved the start of recovery and remediation tasks in the level 104 mining block.

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