IAMGOLD (IAG) Reports Fall of Ground at Westwood Mine

Zacks

IAMGOLD Corporation IAG announced that a localized event (fall of ground) occurred at its Westwood mine in Quebec on May 26. The company reported that none of the employees were injured during the mishap and all were evacuated once the fallen ground material was removed.

Gold production at the mine remained unaffected as Westwood had enough stockpiles and has progressed underground development to the extent that it has many operating underground stopes from which to mine. Mining was stopped in the affected areas and the Westwood emergency response team was immediately deployed. Government authorities, including the provincial safety authorities CSST, and local stakeholders have been notified.

In the first quarter of 2015, Westwood produced 22,000 ounces of gold, at par with expectations. Total cash costs were $1,130 per ounce produced and all-in sustaining costs were $1,507 per ounce sold.

Gold production at the Westwood mine is anticipated in the range of 110,000 ounces to 130,000 ounces for 2015, with the first and fourth quarters accounting for about 40% and the second and third quarters for roughly 60%. The variability is due to mine sequencing within a single sector, as mining focuses on the lower grade lenses in the first and last quarters and the higher grade lenses in the second and third quarters. IAMGOLD expects that Westwood will have some variability in its quarterly production until the operation ramps up to full capacity over the next four years.

Westwood's all-in sustaining costs for 2015 are expected to be in the range of $1,100 to $1,175 per ounce sold.

Currently, IAMGOLD carries a Zacks Rank #3 (Hold).

Better-ranked gold mining companies include Primero Mining Corp. PPP, Newmont Mining Corporation NEM and Richmont Mines Inc. RIC. While Primero Mining sports a Zacks Rank #1 (Strong Buy), Newmont and Richmont Mines hold a Zacks Rank #2 (Buy).

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