(Reuters) - Shares of Canada’s Iamgold Corp IMG.TO plunged more than 16 percent on Wednesday, the day after the gold miner reported lower-than-expected quarterly earnings and cut its production target for 2013.
The Toronto-based company also said it expected 2012 production to be at the lower end of its target range and that it had cut capital spending by about 7 percent this year on delays at two major expansion projects.
Late on Tuesday, Iamgold reported a 47 percent drop in third-quarter earnings per share to 16 cents, excluding one-time items, well below the analysts’ average estimate of 25 cents, according to Thomson Reuters I/B/E/S.
The company cut its 2013 production target to a range of 875,000 to 950,000 ounces of gold from an earlier forecast of 1 million to 1.1 million ounces. It cited poor performance at its Sadiola mine in Mali and a slower ramp-up at the Westwood project in Quebec.
Iamgold said it expected output this year to be at the lower end of its 840,000-to-910,000-ounce target range, with cash costs near the high end of the $670-to-$695-per-ounce range.
Iamgold also revised its capital spending budget for 2012 lower on delays at Sadiola and at the Essakane expansion in Burkina Faso. It now expects to spend $750 million to $780 million in 2012, down from a previous estimate of $800 million to $840 million.
The miner said capital spending would also be lower in 2013.
Shares of Iamgold were down 16.1 percent at C$12.48 on the Toronto Stock Exchange on Wednesday morning. (Reporting by Julie Gordon; Editing by Lisa Von Ahn)