IAMGOLD Resumes Production At Rosebel Following Union Work Stoppage Due To COVID-19 Infections

IAMGOLD Corp (TSX: IMG) released to the market late Friday night that it has resumed operations at its Rosebel Gold Mine, located in Suriname. The operation was previously temporarily shutdown as a result of union pressures following seven employees contracting COVID-19, resulting in the union calling for a work stoppage.

The restart of operations follows the company receiving advice and confirmation from local medical experts on the handling of the disease. Both the company and the union, along with the local mediation board, “explicitly” agreed upon the resumption of operations.

The employee recall process has begun by IAMGOLD, with the firm seeing both employees and contractors return to site for milling operations as well as drilling. Material stockpiling has also restarted at the mill, with construction contractors also resuming work at the Saramacca mine.

The Rosebel Gold Mine produced a total of 64,000 ounces during the three month period ended March 31, 2020, at an all in sustaining cost of $1,248 per ounce. IAMGOLD produced approximately 170,000 ounces of gold during the first quarter, resulting in Rosebel accounting for roughly 37% of the firms production. Production figures for the operation are expected to see a decline across both the second and third quarters, given the timing of the shutdown. As such, quarterly financials are expected to be notably impacted by the production halt.

The company had previously guided for full year production of 250,000 to 270,000 ounces of production at Rosebel following the first quarter financials, an increase from previous guidance of 245,000 to 265,000 ounces. With IAMGOLD revising its Essakane and Westwood mining operations down 15,000 ounces and 5,000 to 10,000 ounces, respectively, Rosebel was the operation expected to close the gap in the downward revision. This revision was a result of the COVID-19 impact expected at Essakane and Westwood.

IAMGOLD last traded at $6.55 on the TSX.

Information for this briefing was found via Sedar and IAMGOLD Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.