VANCOUVER (miningweekly.com) – Canadian midtier miner Iamgold has significantly increased gross earnings in the three months ended March, as higher output was underpinned by the Westwood mine, in Quebec, while lower costs dovetailed into higher realised prices, the company announced after market closed on Tuesday.

Toronto-headquartered Iamgold reported gross profit of $35-million, up $28.5-million from the comparable period a year earlier.

However, a loss of $20.2-million on the 6.75% senior unsecured notes in the quarter and a gain of $72.9-million on the sale of gold bullion in the same prior-year period resulted in a net loss of $18-million, or $0.04 a share, down from net earnings of $53.1-million, or $0.13 a share.

Removing special items, adjusted net earnings from continuing operations came in at $5.1-million, or $0.01 a share, beating Wall Street analysts forecasts of earnings of nil per share, and up $12.4-million, or $0.03 a share, from the first quarter of 2016.

Revenues for the quarter were $260.5-million, up $40.8-million, or 19%, from the same prior-year period, mainly owing to higher sales volumes at Westwood, Rosebel, in Suriname and Essakane, in Burkina Faso, and a 3.5% higher realised gold price at $1 230/oz.

Attributable gold output for the period was 214 000 oz, up 23 000 oz year-on-year, underpinned by improved production across the company’s portfolio of four operating mines in North and South America, and Africa.

Cost of sales during the quarter was $769/oz sold, down 7% year-on-year, with all-in sustaining costs at $992/oz sold, fell by 8% from the first quarter of 2016.

"We executed on several growth initiatives in the quarter, including the continuing ramp-up of Westwood production, buoyed by regulatory approval of the reopening of the mining block affected by the fall of ground two years ago; continuing high-grade drilling results at Saramacca; the acquisition of the remaining interest in the Siribaya project; a power purchase agreement at Essakane for the development of a 15 MW solar power project; and the advancement of the prefeasibility study for Côté Gold,” president and CEO Steve Letwin stated.

Iamgold's NYSE-listed equity rose 12% on Wednesday to $4.12 apiece.