Despite hefty gains in after-hours trading that hinted at a day of gains for IAMGOLD Corp. (NYSE: IAG), shares of the company dropped 7% today, a morning after the company released its second-quarter financial results.
The company reported second-quarter net earnings of $478.9 million, or $1.28 per share. On an adjusted basis, the company’s net earnings for the second quarter of 2011 were $69.7 million, or $0.19 per share, compared with $19.3 million or $0.05 per share, reported for the same period in the previous year.
IAMGOLD reported second-quarter revenue from continuing operations of $345.7 million, representing an increase of 75% over the same period in the previous year. The company’s gold margin increased 35% t0 $818 per ounce in the second quarter of 2011.
IAMGOLD’s attributable gold production in the second quarter of 2011 was 188,000, representing an increase 47% over the same period in the previous year. The company reported weighted average costs from continuing operations of $697 per ounce, compared with $593 per ounce reported in the second quarter of 2010.
At the end of the second quarter of 2011, the company had $1.2 billion in cash, cash equivalents and gold bullion, compared with $0.4 billion at the end of 2010. The increase was mainly due to the proceeds received from the sale of minority interest in the Tarkwa and Damang mines.
Steve Letwin, president and CEO of IAMGOLD, said that overall the company’s second-quarter results demonstrate solid progress in executing its strategy to maximize the value of the mines it owns and operates. Letwin further said that in a rising gold price environment the company was able to achieve 34% expansion in gold margins despite a 16% increase in cash costs.