Iamgold earnings fall on higher mining costs

Mon Aug 13, 2012 7:31pm EDT
 
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(Reuters) - Canada's Iamgold Corp IMG.TO said on Monday that its second-quarter earnings from continuing operations fell about 29 percent as it incurred higher mining costs.

The gold miner's earnings from continuing operations attributable to equity shareholders fell to $52.9 million, or 14 cents per share, from $74.5 million, or 20 cents per share, in the year-earlier period.

Adjusted earnings were $74 million, or 20 cents per share.

Analysts on average had expected earnings of 21 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 19 percent to $410.6 million driven by higher gold sales and gold prices.

Mining costs for the quarter rose 25 percent to $250.1 million.

In June, Iamgold closed its C$608 million ($612.19 million)takeover of Trelawney Mining, giving the Toronto-based miner control of the Cote Lake gold project in Northern Ontario.

Iamgold has operations in West Africa, South America and Canada.

Shares of the company closed at C$11.18 on the Toronto Stock Exchange on Monday.

(Reporting by Eileen Anupa Soreng in Bangalore; Editing by Gary Hill)