Iamgold 4Q loss narrows as revenue gets a boost from higher gold prices

Iamgold 4Q loss narrows, gold prices lift revenue

TORONTO — Gold mining company Iamgold Corp. said Wednesday that its fourth-quarter loss narrowed as higher gold prices lifted revenue 27 percent.

The Canadian company lost $47.4 million, or 13 cents per share, in the quarter compared to a loss of $96.4 million, or 33 cents per share, in the same quarter a year earlier.

The 2009 quarter included an $88.8 million noncash impairment charge to write down the Camp Caiman mining project in French Guiana, where it’s not sure development will push through.

Taking out the impairment charge, profit more than doubled to $41.4 million, or 11 cents per share, in the quarter. The adjusted earnings included a 4 cents per share charge related to asset retirement obligations and others.

Analysts were expecting a profit of 15 cents per share, according to Thomson Reuters.

Revenue rose to $265.3 million from $209.7 million.

The company said it produced 234,000 ounces of gold in the quarter at an average cost of $488 per ounce. It sold 233,000 ounces at an average price of $1,096 an ounce.

Strong sales of niobium, a chemical element used in steel production, also lifted results.

For the year, Iamgold said it earned $114.1 million, or 32 cents per share, compared with a loss of $9.9 million, or 3 cents per share, in 2008. Excluding impairments, 2009 earnings nearly doubled to $212.2 million, or 60 cents per share.

Revenue rose to $914.3 million from $869.6 million. Analysts were expecting $905 million.

Shares of Iamgold, based in Toronto, fell 23 cents, or 1.5 percent, to close at $15.04 on the New York Stock Exchange.