Iamgold announces plan to reduce yearly costs by $100m
TORONTO (miningweekly.com) – Canadian gold producer Iamgold this week announced it wanted to reduce company-wide costs by $100-million a year, in order to reinforce its already strong financial position and to improve its return on capital.
The company said it had initiated a programme of cost-cutting initiatives aimed at reducing mine operating costs, exploration expenditures and mine site as well as corporate, general and administrative costs.
The company ended 2012 with more than $1-billion in cash and gold bullion on hand.
"We have a long track record of generating attractive returns on capital employed. The need for a robust return on capital is not a new concept at Iamgold, and we continue to approve only projects that will generate a return surpassing our risk adjusted cost of capital,” president and CEO Steve Letwin said.
He added the company’s recent share price performance was unacceptable. “We are determined to intensify our return on capital and improve our operating performance. In this period of lower gold prices and rising costs we have launched an aggressive cost reduction programme to remove $100-million from our 2013 plan."
The company said it was targeting cost reductions across all aspects of its global operations to counter the cost pressure from inflation and an increasing amount of hard rock at its Essakane mine, in Burkina Faso, and at Rosebel mine, in Suriname. The higher proportion of hard rock at these operations increased the demand for power to grind and crush the ore.
The company’s TSX-listed share price had fallen by 45% since the start of the year. On Friday, however, Iamgold’s stock closed 5.47% higher at C$6.75 apiece.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
EIMS is an independent specialised environmental consulting firm offering the full spectrum of environmental management services across all sectors...
VISIT SHOWROOM
CMTS is a leading, well-established EC&I contractor with 37+ years of mining and industrial experience. We execute full-scope EC&I projects with...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
