By Brad Zigler
IAMGold's (IAG) net earnings shot up 169% to $33.3 million, or $0.11 per share, versus the second quarter of 2007 on a 35% increase in revenue. EPS beat Street estimates by a penny a share, or 10%.
Year-over-year, the company's average sale price for gold climbed from $660 an ounce to $878 for the quarter ending June 30. Production was pegged at 255,000 ounces at an average cost of $472 an ounce. IAMGold projects the full year's output of 950,000 ounces will now cost between $485 and $495 an ounce.
Investors reacted to the earnings surprise by taking IAMGold shares up 8 cents on the open to $5.49 a share, only to watch the stock sell off as much 2.2%, or 12 cents, as the reports of the company's narrowing margins were digested. By midday, prices had climbed back to the unchanged level at $5.41.
This year, IAMGoldshares have slipped 33.2% while the Market Vectors Gold Mining ETF (GDX) shed 24.9%. IAMGOLD makes up 2.9% of the ETF's underlying index.
IAMGOLD Corp. Vs. Market Vectors Gold Miners ETF