IAMGOLD (IAG) Q4 2007 earnings summary

Executive summary

• 2007 gold production reached 965,000 oz, up 50% YoY, following the full-year contribution of operations acquired in 2006; production was in line with revised guidance but below the original 1 million oz target.

• Revenue rose 124% to $678.1M; adjusted net earnings were $57.6M, while reported net loss was $42.1M after impairment charges totaling $99.6M.

• Stronger operating cash flow and a $242.5M cash, deposits and bullion position supported continued mine investment, exploration and development.

Financial highlights

• Revenue $678.1M, up 124% YoY; earnings from mining operations $134.1M, up 34%; earnings from working interests $25.4M, down 12%.

• Adjusted net earnings $57.6M, or $0.20/share, versus $74.1M, or $0.39/share; net loss $42.1M, or $0.14/share, versus net earnings of $72.5M in 2006.

• Operating cash flow $117.1M, up 56% YoY; average realized gold price $693/oz, up 14%, and attributable cash cost $423/oz, up 32%.

• Q4 adjusted net earnings $14.4M, or $0.05/share, versus $10.7M; net earnings $8.5M, or $0.03/share, versus $9.4M; operating cash flow $56.6M versus a $4.7M outflow.

• Niobium revenue was $107.8M and operating cash flow $48.9M; total revenues including royalties and working interests were $678.1M.

Outlook and guidance

• 2008 attributable gold production forecast at 920,000 oz, with cash costs of $455–$470/oz; forecast assumptions include $700/oz gold, $90/barrel oil and C$/US$ of 1.05.

• 2008 gross margin forecast at $300M versus $277M in 2007; dependent on gold and ferroniobium prices and input costs.

• Planned 2008 exploration and development spending of $87.3M, with exploration focused on nine countries in South America and Africa.

• 2008 priorities include containing costs, increasing reserves and production through acquisitions and discovery, and progressing Quimsacocha, Westwood and Buckreef studies.