Last updated on April 18, 2014 at 17:24 EDT

IAMGOLD delivers on 2011 guidance with strong 2011 fourth quarter production for gold and niobium; Provides guidance for 2012-2014

January 16, 2012

All amounts are expressed in US dollars, unless otherwise indicated.


TORONTO, Jan. 16, 2012 /PRNewswire/ – IAMGOLD Corporation (“IAMGOLD” or the “Company”) today announced the following:

        --  Gold production of 253,000 attributable ounces of gold in the
            fourth quarter of 2011;
        --  The Company's 2011 total year attributable gold production from
            continuing operations was 896,000 ounces (within the forecast
            range of 870,000 to 930,000 ounces), at an average cash cost
            within the guidance range of $620 to $650 per ounce;
        --  Including the Company's production from discontinued
            businesses, total year attributable gold production was 972,000
        --  In 2011, the Company produced 4.6 million kilograms of niobium
            (within the guidance of 4.5 to 5.0 million kilograms) with an
            average operating margin within the guidance range of $15 to
            $17 per kilogram;
        --  The Company expects attributable gold production for 2012 to be
            in the range of 840,000 and 910,000 ounces (excluding ore
            stockpiled at Mouska to be processed in 2013) at a cash cost of
            between $670 and $695 per ounce, including royalties of
            approximately $95 per ounce;
        --  The Company expects annual attributable gold production for
            2013 and 2014 to be in the range of 1 million to 1.1 million
            ounces, the increase coming primarily from the planned startup
            of the Westwood mine in Canada;
        --  The Company expects to produce between 4.6 million and 5.1
            million kilograms of niobium in 2012 at a margin of between $15
            and $17 per kilogram;
        --  Capital expenditures for 2012 are budgeted at $880 million,
            with a primary focus to advance and expand the Company's core
            long-life assets, including the following projects:
      o the expansion of the Essakane gold mine in Burkina Faso;
      o the continued development of the Westwood gold project in Canada
        for startup in Q1 2013;
      o the expansion of the Rosebel gold mine in Suriname;
      o the continued underground development of the Niobec niobium mine in
        Canada; and
      o the expansion of the Sadiola joint venture gold project in Mali to
        mine and process sulphide ore.

IAMGOLD’s President and CEO, Steve Letwin said, “The fourth quarter of
2011 was our best quarter of the year.  The very strong production
reflects productivity improvements across all of our operations and
gives us excellent momentum going into 2012. I am extremely excited
about the progress we are making at enhancing the value of Niobec and
the prospects of exploiting our rare earth elements potential.”


The Company announced fourth quarter attributable gold production of
253,000 ounces and 2011 total year attributable gold production of
972,000 ounces, including production from discontinued operations,
which was within the guidance range of 940,000 to 1,000,000 ounces.  
Cash costs are expected to fall within guidance of $620 to $650 per
ounce. In 2010, total year attributable gold production was 967,000
ounces at a cash cost of $574.

In 2011, IAMGOLD also produced 4.6 million kilograms of niobium at an
average margin within the guidance range of $15 to $17 per kilogram as
compared with 4.4 million kilograms produced at an average margin of
$18 per kilogram in 2010.

The Company refers to cash costs and margins, which are non-GAAP
performance measures, in order to provide investors with information
about the measures used by management to monitor the performance of its
mining assets. The information allows management to assess how well the
mines are performing relative to the plan and to prior periods, as well
as to assess the overall effectiveness and efficiency of the

IAMGOLD, in providing its production and capital spending profile for
years 2012 through 2014, has made several economic assumptions.  For
2012, the Company has assumed:

        --  an annual average gold price per ounce of $1,700;
        --  an annual average crude oil price per barrel of $90;
        --  U.S. dollar value of the Euro of 1.40; and
        --  Canadian dollar value of the U.S. dollar of $1.00.


    |  Attributable Gold  |Q42011| 2011 |  2012  |  2013  |      2014    |
    |     Production      |Actual|Actual|Forecast|Forecast|    Forecast  |
    |(thousands of ounces)|      |      |        |        |              |
    |Essakane (90%)       |    94|   337| 320-345|                       |
    |_____________________|______|______|________|                       |
    |Rosebel (95%)        |   104|   385| 370-395|                       |
    |_____________________|______|______|________|                       |
    |Westwood (100%)      |     -|     -|       -|                       |
    |_____________________|______|______|________|                       |
    |Mouska (100%)        |    19|    24|       -|                       |
    |_____________________|______|______|________|                       |
    |Sadiola (41%) and    |    36|   150| 150-170|                       |
    |Yatela (40%)         |      |      |        |                       |
    |_____________________|______|______|________|                       |
    |Total attributable   |   253|   896| 840-910|                       |
    |production from      |      |      |        |                       |
    |continuing gold      |      |      |        |                       |
    |operations           |      |      |        |                       |
    |_____________________|______|______|________|                       |
    |From discontinued    |     -|    76|       -|                       |
    |businesses           |      |      |        |                       |
    |Total attributable   |   253|   972| 840-910|1,000-1,100|1,000-1,100|
    |gold production      |      |      |        |           |           |
    |                     |      |      |        |           |           |
    |Niobium (millions of |   1.2|   4.6| 4.6-5.1|    4.6-5.1|    4.8-5.3|
    |kilograms)           |      |      |        |           |           |

Note:  For 2012 through 2014 the Company has assumed gold prices for
reserves at $1,200 and for resources at $1,400 per ounce.  For 2013 and
2014 the Company has assumed annual average crude oil prices of $95 and
$100 per barrel, a U.S. dollar value of the Euro of $1.35 and $1.35 and
a Canadian dollar value of the U.S. dollar of $1.00 and $1.05,

As has been the case in previous years, the Company expects weather
patterns to have a seasonal impact on the Rosebel operations in

Steve Letwin continued, “Building on the strength of our key assets and
the addition of production from Westwood, attributable gold production
in 2013 is expected to grow by approximately 20% from 2012. In
addition, we are actively looking for acquisitions that will create a
pipeline of production growth, with a focus on targets that can provide
a positive return on capital employed for our shareholders.”


For 2012, IAMGOLD’s planned capital expenditure program of $880 million
is focused on advancing and expanding its core long life assets. This
includes expansion of the Essakane and Rosebel mines, advancement of
the Westwood development project, expansion at the Sadiola joint
venture to mine and process sulphide ore underlying the Sadiola mine,
and the continued underground development of Niobec. The planned
capital allocation for 2012 includes approximately $100 million
rollover of unspent expansion capital from 2011 due to timing of the
projects, $120 million incremental expansion spending for Rosebel and
$65 million for capitalized stripping at Essakane and Sadiola.

Steve Letwin further commented that, “Our best returns will come from
investment in our current operations where we can leverage existing
infrastructure, geological knowledge, an experienced work force and
strong relationships with governments and communities in those
regions.  To that end we intend to invest approximately $2.7 billion in
these brownfield investments, which will be funded by a combination of
our strong cash and bullion position and robust cash flows from
operations, backed by our significant lines of credit.”

The following table of capital spending for 2012 assumes favourable
outcomes for the feasibility study to expand Essakane, for the
pre-feasibility study at Niobec and for the feasibility study to mine
and process the underlying sulphide ore at Sadiola. The Company has
projected capital spending plans of $900 million and $950 million for
2013 and 2014, respectively.

    |                         |  Capital   |                              |
    |               Site      |Expenditure |                 Details      |
    |                         |($ millions)|                              |
    |                         |  in 2012   |                              |
    |Westwood                 |         220|The project remains on track  |
    |                         |            |for startup in early 2013.    |
    |Essakane                 |         330|A favourable decision on the  |
    |                         |            |feasibility study is expected |
    |                         |            |in the first quarter.         |
    |Rosebel                  |         160|Primarily for expansion and   |
    |                         |            |resource development.         |
    |Niobec                   |          90|To advance the feasibility    |
    |                         |            |study, underground development|
    |                         |            |and other improvements.       |
    |Sadiola (IAMGOLD portion)|          70|Pending a favourable outcome  |
    |                         |            |of the current feasibility    |
    |                         |            |study of the Sulphides        |
    |                         |            |project.                      |
    |Other                    |          10|                              |
    |Total                    |         880|                              |


The Company’s exploration efforts remain focused in West Africa; select
countries of South America including Peru, Brazil, Colombia and
Suriname; and the province of Quebec in Canada.   With a strategic
mandate for organic growth, the Company uses a decentralized approach
supporting independent country offices spread out among the regions of
focus.  Building on the success of the 2011 program, the expected 2012
exploration spend of $130 million, of which $83 million is for
greenfield projects, is the most ambitious ever undertaken by IAMGOLD.

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 expected, estimated or planned gold and niobium production,
cash costs, margin expansion, capital expenditures and exploration
expenditures and 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 “project” 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 meet expected, estimated or
planned gold and niobium production, cash costs, margin expansion,
capital expenditures and exploration expenditures and 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.

IAMGOLD (www.iamgold.com) is a leading mid-tier gold mining company producing approximately one
million ounces annually from five gold mines (including current joint
ventures) on three 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 fax, e-mail, IAMGOLD’s
website at www.iamgold.com and through CNW Group’s website at www.newswire.ca. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.

Si vous désirez obtenir la version française de ce communiqué, veuillez
consulter le http://www.iamgold.com/French/Home/default.aspx


Source: PR Newswire