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Joining me on the conference call today are Steve Letwin, President and CEO of IAMGOLD; Gord Stothart, Executive Vice President and Chief Operating Officer; Craig MacDougall, Senior Vice President, Exploration; Brian Trnkus, Vice President, Finance, who's filling in for our CFO, Carol Banducci, who is traveling today; and Tim Bradburn, Associate General Counsel and Corporate Secretary.Our remarks today will include forward-looking statements. I'll refer you to the cautionary language regarding forward-looking information and our disclosure documents, and advise you that the same cautionary language applies to our remarks during the call. We have prepared slides which can be viewed via our website. This call is being recorded for playback purposes. Now I'll turn the call over to our President and CEO, Steve Letwin. Stephen Joseph James Letwin Thanks, Bob, and good morning, everyone. While our result in the second quarter were in line with our expectations, we expect the pace of our development and expansion projects pick up in the second half, and we're confident we'll meet guidance for 2012. Sustaining profitability requires quality projects and greater control over what we do. As you know, 85% of our production comes from mines that we own and operate and 4 years with Côté Gold in our portfolio, we expect to move back closer to 95%. We're excited about our newest addition and with our year end resource update, we're targeting the conversion of a significant portion of the Côté Gold inferred deposit to the indicated category. I've always said our return on capital employed will be the key measure driving our strategies as opposed to growth at any cost. And I think more and more, we're going to hear companies that are industry-aligned with that thinking. On Slide 5, recapping our second performance. Our adjusted net earnings were $74 million or $0.20 a share, up 9% from the second quarter of 2011. This is before taking into account foreign exchange translation, lower valuations of our marketable securities and other items that don't measure how well we're operating the business.
Revenues were up 19% year-over-year due to a higher volume of gold sales along with higher gold prices. Our operating cash flow from continuing operations and before changes in working capital were $72.4 million or $0.19 a share compared to $76.4 million or $0.20 a share the same quarter last year. You'll note that the $70.4 million final tax payments for 2011, which was fully approved for last year and had a $0.19 per share impact, was paid in the second quarter of 2012 and reduced our cash flow per share by $0.19. Because it's been previously accrued, it did not affect our earnings for the second quarter, and Brian is going to explain that more in a moment.Our gold margins of $856 an ounce in the second quarter increased by $38 from the same quarter in 2011, as the increase in gold prices offset the increase in cost. Our attributable gold production was 204,000 ounces in the quarter at 9% from 188,000 ounces in the same quarter in 2011, and the increase was primarily the result of having effectively addressed the technical issues at Essakane that limited production in 2011. While the tonnage of ore mined at Rosebel was impacted by seasonal rains, recoveries are improving with the near completion of the expanded gravity circuit. And at Sadiola we're taking steps to improve throughput and recoveries following some technical and mechanical issues, and Gord will talk more about that. On the next slide, we'll talk about key initiatives, and I'll say a few words about them, but leave Gord to provide a more complete overview. At Essakane, construction of the expanded plant got off the ground in the first week of July, following excellent progress in our negotiations with the government of Burkina Faso. The mining code in that country was designed well before there were any operating mines, and did not contemplate mine expansions. So that's why we had such lengthy negotiations with the government. We're covering everything from import duties on expansion-related equipment to more timely reimbursement of value-added taxes. We've had good talks with the government of Suriname as well. I'm going to be meeting with President again in September. And from what I'm seeing so far, I'm optimistic we'll have a signed definitive agreement in place by end of this year. We can then move ahead with the concept study to further define the expansion potential of the satellite resources. Read the rest of this transcript for free on seekingalpha.com