Sumary of Why This Penny Gold Stock Cracked Today:
- To make matters worse, IAMGOLD also expects to spend a lot more than originally estimated on a key project under development.
- So what IAMGOLD is projecting its Q2 gold production to be only 139,000 ounces, down a little more than 10% from the year-ago period.
- Low production from its Westwood mine in Canada and Rosebel mine in Suriname is to blame.
- IAMGOLD has three operating mines, so it’s worrisome to see production hiccups and cost overruns at two of its mines at the same time.
- Rosebel, the larger of the two mines, faced several headwinds during the quarter, including inclement weather, COVID-19 restrictions, and a union-led work stoppage finally resolved in May through a collective bargaining agreement.
- Thanks to a weaker-than-expected Q2, IAMGOLD has downgraded its full-year guidance as well, and it’s a pretty sharp downward revision.
- Metric Original Guidance Revised Guidance Gold production (ounces) 630,000-700,000 565,000-605,000 Cash cost (per ounce sold) $930-$980 $1,115-$1,150 AISC (per ounce sold) $1,230-$1,280 $1,395-$1,435 Data: IAMGOLD.
- IAMGOLD expects to begin full production at Côté by 2024, which could boost its annual gold-production capacity to one million ounces.