Iamgold said it now expects to produce between 780,000 and 815,000 ounces of gold in 2015, down from its previous production guidance range of 820,000 and 860,000 ounces for the year.
The gold mining company said the lower guidance is due to a "localized seismic event" on May 26, 2015 at its Westwood Mine in Quebec. The company said it is still confident in the long-term viability of the mine, but expects the mine's second quarter production to be "slightly below" its first quarter production of 208,000 ounces.
"Safety is our number one priority," Iamgold President and CEO Steve Letwin said. "We and the other companies mining underground in the region know that this district is prone to seismic activity and we are taking the necessary measures to keep our excellent safety record intact. Westwood is still in its infancy and similar to mines in the area, we expect it to have growing pains as we gain operational experience in this mining environment."
TheStreet Ratings team rates IAMGOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate IAMGOLD CORP (IAG) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself."