IAMGOLD Corporation ("IAMGOLD" or the "Company")
(TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) today
reported that it has increased its annual dividend payment by 150% from
C$0.08 per share to C$0.20 per share. The next semi-annual dividend
payment in the amount of C$0.10 per share will be paid on July 20, 2011
to shareholders of record as of the close of trading on July 5, 2011.
The Company also reports that for the second quarter of 2011, gold
production is less than expected and average cash costs are higher than
expected.
IAMGOLD's Executive Vice President and Chief Operating Officer, Gord Stothart, commented,
"Gold production during the second quarter was primarily impacted
by a change in mining sequence resulting in a lower than planned grade
at the Rosebel Mine in Suriname as well as a
slower than expected crusher ramp up and some downtime at the Essakane Mine in Burkina Faso due to a brief water
shortage just prior to the start of the rainy season. Despite these
challenges we are expecting improved production in the second half of
the year allowing us to meet our production guidance."
"Cost inflation has been experienced at all operations,"
continued Mr. Stothart. "The industry is
experiencing higher costs for fuel, consumables and labour
in all regions this year, as well as higher royalties commensurate with
the higher gold prices. Even with these higher costs, and a
conservative gold price assumption of $1,200 per ounce, we believe that
the projected cash flow from our operations combined with our current
cash position will fund our significant three-year $1.2 billion
investment to expand production at our existing gold mines and further
strengthen our balance sheet."
IAMGOLD's President and CEO, Steve Letwin
said, "The dividend increase reflects the confidence the board and
management have in the current and future cash flows for the Company.
We have a superior combination of existing assets, empowered people, a
strong balance sheet and attractive expansion opportunities. Our growth
outlook is very positive."
For purposes of subsection 89(14) of the Income Tax Act, the Company
designates all dividends payable on July 20, 2011 to be eligible
dividends.
Forward Looking Statement
This news release contains forward-looking statements. All statements,
other than of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements
regarding the estimation of mineral resources, exploration results,
potential mineralization, potential mineral resources and mineral
reserves) are forward-looking statements. Forward-looking statements
are generally identifiable by use of the words "may",
"will", "should", "continue", "expect",
"anticipate", "estimate", "believe",
"intend", "plan" or "guidance" or the
negative of these words or other variations on these words or
comparable terminology. Forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond the
Company's ability to control or predict, that may cause the actual
results of the Company to differ materially from those discussed in the
forward-looking statements. Factors that could cause actual results or
events to differ materially from current expectations include, among other
things, without limitation, failure to establish estimated mineral
resources, the possibility that future exploration results will not be
consistent with the Company's expectations, changes in world gold
markets and other risks disclosed in IAMGOLD's most recent Form
40-F/Annual Information Form on file with the United States Securities
and Exchange Commission and Canadian provincial securities regulatory
authorities. Any forward-looking statement speaks only as of the date
on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement.
About IAMGOLD
IAMGOLD (www.iamgold.com) is
a leading mid-tier gold mining company producing approximately one
million ounces annually from 8 gold mines (including current joint
ventures and investments in associates) on 3 continents. IAMGOLD is
uniquely positioned with a strong financial position and extensive management
and operational expertise. To grow from this strong base, IAMGOLD has a
pipeline of development and exploration projects and continues to
assess accretive acquisition opportunities. IAMGOLD's growth plans are
strategically focused in West Africa, select countries in South America
and regions of Canada. IAMGOLD also operates Niobec,
a niobium mine in the Canadian province of Quebec.
Please note:
This entire news release may be accessed via IAMGOLD's website at www.iamgold.com and
through Marketwire's website at www.marketwire.com.
All material information on IAMGOLD can be found at www.iamgold.com.
Si vous desirez
obtenir la version francaise de ce
communique, veuillez consulter le http://www.iamgold.com/French/Home/default.aspx.
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