Tork, img has 38% so it looks like they get about 190m ozs times $150 profit cash or $28,500, 000 . looking go
Monday January 12, 7:32 pm Eastern Time
Company Press Release
SOURCE: IAMGOLD
Sadiola Gold Mine to Produce 500 000 Ounces in 1998 at a Direct Cash Cost of US$112 Per Ounce
MARKHAM, Ont., Jan. 12 IAMGOLD (IMG:TSE) announced today that in 1998 the Sadiola Hill Gold Mine in Mali, West Africa is expected to produce approximately 496,000 ounces of gold at a direct cash cost of US$112 per ounce and a total cash cost of US$133 per ounce (assuming a US$280 gold price). This year's expected production of 496,000 ounces represents an increase of almost 13% over the equivalent annualized output for 1997. The 364,729 ounces of gold produced by Sadiola in 1997 exceeded the expected production budget of 314,000 ounces by 16%. Furthermore, the 364,729 ounces were produced at a direct cash cost of US$107 per ounce which was 22% less than the expected cost in the 1997 budget.
''In its initial year of operation, the results achieved by SEMOS, the company established to build and operate the Sadiola mine, are outstanding,'' said IAMGOLD President and Chief Operating Officer Todd Bruce. ''Seldom has the mining industry seen a more successful mine development story in an emerging country, particularly when one considers that the mine not only commenced production ahead of schedule but also was completed under budget.'' IAMGOLD expects Sadiola to continue to operate at a profit in this low gold price environment.
Anglo American Corporation of South Africa, chosen by IAMGOLD to be its partner to design, construct and operate the mine, deserves the greatest credit for the remarkable performance of Sadiola to date.
Performance of Sadiola Gold Mine :
1997 Actual vs Budget and 1998 Expected
-------------------------------------------
March to December 1997 1998
----------------------------- Expected
Budget Actual(1)
-------------------------------------------------------------------------
Tons Milled (000's tpm) 314 369 367
Design Rate (000's tpm) 333 333 333
Stripping Ratio 0.4 0.4 0.9
Head Grade (g/t) 3.5 3.1 3.7
Gold Produced (ozs) 314,000 364,729 496,000
Plant Recovery (%) 92 96 95
Direct Cash Costs:
US$/t milled 13.90 10.60 12.70
US$/oz 139 107 112
Govt. (6%)/AAC (1%): (2)
US$/t milled 2.70 2.40 2.30(3)
US$/oz 27 25 21(3)
Total Cash Costs:
US$/t milled 16.60 13.00 15.00
US$/oz 166 132 133
-------------------------------------------------------------------------
1 The cost figures cover the period March to November 1997, as the
December 1997 figures are not yet available.
2 Government production taxes equal to 6% of net revenue and Anglo
American Corporation management fee equal to 1% of net revenue.
3 Spot price of gold US$280 per ounce.
Based on its first year of operating experience, the mine's indicative long term plan has been revised by SEMOS. The table on the following page summarizes the plan which reflects Sadiola building on the successes achieved in 1997. Over the eight year period from 1998 to 2005, Sadiola is expected to produce an average of 433,000 ounces of gold at an average direct cash cost of US$143 per ounce in comparison to the average expected at the time of IAMGOLD's IPO in March 1996 of 372,000 ounces at a direct cash cost of US$154 per ounce.
SEMOS has hedged 80,000 ounces at US$395 per ounce in 1998. In addition, for the years 2001 and 2002, SEMOS has hedged 80,000 ounces each year at US$400 per ounce. For the years 2003 and 2004, a further 40,000 ounces a year has been hedged at US$395 per ounce.
Semos 1998 Expected and Indicated Long Term Plan
(Costs in Unescalated CY 1998 Money Terms)
Calendar Years 1998 1999 to 2005
Average
Tonnes Mined t 000's 8,157 13,104
Tonnes Ore Treated
Oxide t 000's 4,400 3,589
Mixed t 000's 0 811
Total |
