Canadian miner Iamgold has lowered its 2020 attributable gold production guidance by 40 000 oz to a range of 645 000 oz to 700 000 oz, reflecting the suspension of operations at the Rosebel mine in response to Covid-19 being detected among workers.
Operations at the mine in Suriname were halted on June 12. The suspension was lifted on July 24, once national health authorities confirmed it was safe to do so.
The Toronto-listed miner, which on Wednesday published its second-quarter results, also revised up its 2020 cost of sales guidance to between $990/oz and $1 030/oz, from between $955/oz and $995/oz previously, owing to lower production volumes.
The 2020 all-in sustaining cost (AISC) an ounce was maintained at $1 195 to $1 245.
In the second-quarter, attributable production from continuing operations was 155 000 oz, down 29 000 oz from the same prior year period, and down 15 000 oz from the first quarter 2020. Attributable gold sales from continuing operations were 153 000 oz.
AISC for the quarter increased by 4% year-on-year to $1 189/oz.
CEO Gordon Stothart described the second-quarter operational performance as solid, with Iamgold generating $72.4-million in operating cash flow and revenue of $284.6-million.
Adjusted net earnings from continuing operations attributable to equity holders was $20.1-million, or $0.04 a share, compared with an adjusted net loss from continuing operations of $15.5-million, or $0.03 a share, in the same prior year period, and compared to adjusted net loss from continuing operations of $4.9-million, or $0.01 a share, in the first quarter 2020.
“These results were achieved despite the temporary suspension of mining activities at Westwood and Rosebel, with both operations back online as of April 15 and July 24, respectively, and the anticipated continued impact of the global Covid-19 crisis," Stothart commented.
Meanwhile, Iamgold also announced that CFO Carol Banducci planned to retire from the company on March 31 next year, after 13 years with the company.