Iamgold Corp. has posted a profit of almost $479-million (U.S.) in the second quarter, thanks largely to sale of its interest in a couple of mines in Ghana earlier this year.
The net earnings of attributable to shareholders of $478.9-million amounted to $1.28 per share and compared with $29.5-million, or 8 cents a share, in the same 2010 quarter.
The results included a net gain of $402.6-million from the sale of the company's 18.8 per cent interest in the Tarkwa and Damang mines.
Adjusted net earnings from continuing operations attributable to equity shareholders, which excludes the Tarkwa and Damang mines as well as the Mupane mine reclassified as a discontinued operation, were $69.7-million, or 19 cents per share, compared to $19.3-million, or 5 cents in the second quarter of 2010.
Revenue from continuing operations were up 75 per cent to $345.7-million from $198.1, said Iamgold, which is based in Toronto.
"Overall, our second quarter results demonstrate solid progress in executing our strategy to maximize the value of the mines we own and operate," president and chief executive officer Steve Letwin said in a statement accompanying the results.
"In January, we said our plan was to divest our minority interest in the Tarkwa and Damang mines for proceeds in excess of $600-million and by the end of June we had closed the sale for gross proceeds of $667-million."
Mr. Letwin also noted that in the rising gold price environment Iamgold was able to achieve, so far this year, a 34 per cent expansion in gold margins despite a 16 per cent increase in year-over-year cash costs.
"All eyes are on containing costs throughout our operations and we are working on several initiatives to drive them down in the ensuing quarters," he said.
Iamgold is a mid-tier gold mining company producing approximately one million ounces annually from five gold mines, including joint ventures, in Africa, South America and Canada. It also operates Niobec, a niobium mine in Quebec.