IAMGOLD (IAG) Q4 2003 earnings summary

Executive summary

• 2003 gold production rose 45% to 421,000 oz following the Repadre combination; operating cash flow increased 62% to $30.6M and net earnings rose 173% to $15.0M YoY.

• The portfolio included interests in four West African gold mines, producing gold and diamond royalties, and advanced exploration projects; year-end cash and bullion totaled $114.0M.

Financial highlights

• Revenue was $101.1M in 2003, including $96.6M in gold sales and $4.5M in royalties, versus $89.8M in 2002.

• Net earnings were $15.0M, or $0.11 basic EPS and $0.10 diluted EPS, versus $5.5M, or $0.07 per share, in 2002.

• Q4 2003 revenue was $29.3M and net earnings were $5.2M, or $0.04 per share, versus a $1.5M loss in Q4 2002.

• Operating cash flow was $30.6M versus $18.9M in 2002; year-end cash and bullion totaled $114.0M versus $46.4M.

Outlook and guidance

• 2004 attributable production from the four operating mines was forecast at 445,000 oz, with direct cash cost of $215/oz and Gold Institute operating cash cost of $220/oz.

• Tarkwa was forecast to produce 595,000 oz in 2004 at $210/oz direct cash cost; commissioning of its new mill and transition to owner-operated mining were planned during the year.

• Sadiola was budgeted for 465,000 oz in 2004 at $210/oz direct cash cost; a decision on owner mining was expected, requiring $50M–$55M in capital if pursued.

• Yatela was budgeted for 275,000 oz in 2004 at $230/oz direct cash cost; Damang was expected to produce 265,000 oz at $210/oz as higher-grade ore was depleted.

• Royalty revenue in 2004 was expected to match or exceed 2003, supported by new royalty-bearing mines and increased Diavik production.