Shares of IAMGOLD (NYSE:IAG) slumped about 12% by 10:30 a.m. EDT on Tuesday. Weighing on the gold mining company's stock were its first-quarter results and outlook for the second half of 2019.
IAMGOLD reported an adjusted net loss of $2.2 million, or roughly $0.00 per share, for the first quarter. That came in below analysts' expectations for a profit of $0.01 per share.
The gold mining company experienced several challenges during the first quarter that negatively impacted production, which totaled 185,000 ounces of gold during the period. That's down 44,000 ounces from the year-ago period due to an increase in earthquake activity at the Westwood mine at the end of last year and lower ore grades at some other mines. Those production issues pushed the company's cash costs up 20% compared to the year-ago period to $885 per ounce.
Despite those issues, the company maintained its full-year production forecast of 810,000 to 870,000 ounces. Likewise, it affirmed its projection that costs would be between $765 to $815 an ounce. The company is working on several cost and productivity initiatives to help it achieve those two targets. However, it will review its guidance in the second quarter and update it if necessary.
IAMGOLD aims to be a self-funded, self-sustaining gold mining company. While it experienced some challenges during the first quarter, it remains on track with that strategy, which it believes will create shareholder value in the coming years. The company's stock price, however, could remain volatile, especially if it does reduce its full-year forecast next quarter.