EX-99.1 2 ex99_1.htm IAMGOLD ANNOUNCES SECOND SUCCESSIVE RECORD QUARTERLY EARNINGS IAMGOLD ANNOUNCES SECOND SUCCESSIVE RECORD QUARTERLY EARNINGS


 
 
IAMGOLD ANNOUNCES SECOND SUCCESSIVE RECORD QUARTERLY EARNINGS
 
Highlights
 
n  
Net earnings for the second quarter of 2006 were a record $29.8 million or $0.17 per share compared to $2.4 million or $0.02 per share for the second quarter of 2005.
 
n  
Attributable gold production for the quarter was 158,000 ounces at a cash cost, as defined by the Gold Institute (“GI”), of $290/oz, compared to 114,000 ounces and $275/oz respectively for the second quarter of 2005.
 
n  
Operating cash flow for the quarter was $24.3 million, compared to $5.7 million for the second quarter of 2005.
 
n  
Debt of $22.8 million was repaid during the second quarter and the Company is now debt free.
 
n  
Cash, short-term deposits and gold bullion position at June 30, 2006 is $151.3 million with gold at cost and $193.5 million with gold at market value.
 
n  
Average gold spot price for the second quarter in 2006 was $628 per ounce in comparison to $427 per ounce for the same period in 2005.
 
n  
On April 25, 2006, the sale of the majority of the Company’s gold royalties was completed for gross proceeds of $21.9 million.
 
Consolidated Financial Resources Summary (US$000’s)
                           
     
Three Months Ended 
    
Six Months Ended 
  
     
June 30, 2006
 
 
June 30, 2005
 
 
June 30, 2006
 
 
June 30, 2005
  
Net earnings
  
$
29,838
  
$
2,375
  
$
49,689
  
$
10,118
  
Operating cash flow
  
$
24,276
  
$
5,680
  
$
46,070
  
$
14,213
  
Net earnings per share
                          
- basic and diluted
  
$
0.17
  
$
0.02
  
$
0.30
  
$
0.07
  
Operating cash flow per share
                          
- basic and diluted
  
$
0.14
  
$
0.04
  
$
0.28
  
$
0.10
  
Gold produced (oz) IMG share
    
157,655
    
114,334
    
280,933
    
220,737
  
GI cash cost (US$/oz)*
  
$
290
  
$
275
  
$
282
  
$
274
  
Average gold revenue (US$/oz)
  
$
621
  
$
428
  
$
591
  
$
428
  
* GI cash cost per ounce is a non-GAAP measure. Please refer to the Supplemental Information attached to the Management’s Discussion and Analysis for a reconciliation of GAAP.
 
1
 
Conference Call
 
A conference call to review the Corporation’s second quarter’s results will take place on Friday, August 11, 2006 at 11:00 a.m. EST. Local call-in number: 416-695-5259, N.A. toll-free: 1-877-888-4210 and Australia toll-free: 011-800-4222-8835. This conference call will also be audiocast on our website (www.iamgold.com).
 
A replay of this conference call will be available from 2:00 p.m. August 11-18, 2006 by dialing local: 416-695-5275, passcode: 7140 and N.A. toll-free: 1-888-509-0081, passcode: 7140. A replay will also be available on IAMGOLD’s website.
 
Management’s Discussion and Analysis of Financial Position & Results of Operations
 
(The following report dated August 11, 2006, should be read in conjunction with the Consolidated Financial Statements for June 30, 2006 and related notes thereto which appears elsewhere in this report. All monetary amounts in this MD&A are expressed in US$ unless otherwise indicated.)
 
Overview
 
On March 22, 2006, the Company acquired all of the issued and outstanding shares of Gallery Gold Limited (“GGL”). The financial results and financial position for GGL have been incorporated into the Company’s financial statements, including the results from the Mupane mine in Botswana.
 
Net earnings for the second quarter of 2006 were $29.8 million or $0.17 per share compared to $2.4 million or $0.02 per share for the second quarter of 2005. Net earnings for the first half of 2006 were $49.7 million or $0.30 per share compared to $10.1 million or $0.07 per share for the first half of 2005. The increase in earnings is mainly a result of higher gold prices, increased production and cost containment at the Sadiola and Yatela mines in Mali and production from the Mupane mine.
 
Operating cash flow for the second quarter of 2006 was $24.3 million or $0.14 per share compared to $5.7 million or $0.04 per share for the second quarter of 2005. Operating cash flow for the first half of 2006 was $46.1 million or $0.28 per share compared to $14.2 million or $0.10 per share for the first half of 2005. The increase is a result of higher gold prices, improved performance at the Sadiola and Yatela operations and dividend distributions received from the Tarkwa and Damang operations of $4.7 million and $8.5 million for the second quarter and year-to-date respectively. In addition, loan repayments of $4.2 million and $12.5 million were received from Tarkwa in the second quarter and year-to-date. These loan repayments are classified as cash flows from investing activities.

2
 
Summarized Financial Results
(in $000’s except where noted)
               
   
2006
  
2005
  
2004
  
   
2nd Qtr
  
1st Qtr
  
4th Qtr
  
3rd Qtr
  
2nd Qtr
  
1st Qtr
  
4th Qtr
  
3rd Qtr
  
Net earnings
    
29,838
    
19,851
    
6,178
    
4,198
    
2,375
    
7,743
    
2,897
    
908
  
Net earnings per share
                                          
- basic and diluted
    
0.17
    
0.13
    
0.04
    
0.03
    
0.02
    
0.05
    
0.02
    
0.01
  
Operating cash flow (deficiency)
    
24,276
    
21,794
    
18,002
    
1,828
    
5,680
    
8,533
    
(4,713
)
  
18,886
  
Operating cash flow (deficiency) per share
                                          
- basic and diluted
    
0.14
    
0.14
    
0.12
    
0.01
    
0.04
    
0.06
    
(0.03
)
  
0.13
  
Cash, short-term deposits
and gold bullion
                                          
(at cost)
    
151,275
    
133,323
    
94,374
    
90,799
    
88,572
    
84,361
    
85,436
    
93,017
  
(at market)
    
193,493
    
170,864
    
121,673
    
112,204
    
104,626
    
98,998
    
101,260
    
105,920
  
Gold produced (000 oz - IMG share)
    
158
    
123
    
117
    
109
    
114
    
106
    
119
    
99
  
Weighted average GI cash cost
                                          
($/oz - IMG share)*
    
290
    
271
    
276
    
281
    
275
    
273
    
253
    
255
  
Gold spot price ($/oz)**
    
628
    
554
    
485
    
439
    
427
    
427
    
434
    
401
  
* Weighted average Gold Institute cash cost per ounce is a non-GAAP measure. Please refer to the Supplemental Information to the Management’s Discussion and Analysis for reconciliations to GAAP.
** Average gold price as per the London pm fix.
 
IAMGOLD Attributable Production and Costs
           
   
2006
  
2005
  
   
2nd Qtr
 
1st Qtr
 
4th Qtr
 
3rd Qtr
 
2nd Qtr
 
1st Qtr
  
Production (000 oz)
                                      
Sadiola - 38%
    
52
    
42
    
43
    
44
    
43
    
38
  
Yatela - 40%
    
40
    
33
    
31
    
21
    
23
    
23
  
Tarkwa - 18.9%
    
33
    
36
    
32
    
33
    
37
    
35
  
Damang - 18.9%
    
11
    
12
    
11
    
11
    
11
    
10
  
Mupane - 100%
    
22
                                
Total production
    
158
    
123
    
117
    
109
    
114
    
106
  
Total cash cost ($/oz - IMG share)*
    
315
    
294
    
304
    
299
    
292
    
283
  
GI cash cost ($/oz - IMG share)*
    
290
    
271
    
276
    
281
    
275
    
273
  
* Cash costs per ounce are non-GAAP measures. Please refer to the Supplemental Information attached to the Management’s Discussion and Analysis for a reconciliation to GAAP.
 
Gold production at the five operating mines was 39% ahead of production from the second quarter of 2005 and 28% above the first quarter of 2006. This increase is mainly as a result of the addition of the Mupane mine and excellent performance at both the Sadiola and Yatela mines.
 
IAMGOLD’s attributable share of gold production in 2006 from the above five operating mines is forecast at 560,000 ounces for the full year, with an estimated total Gold Institute cash cost per ounce of $295 per ounce for the year, including Mupane from April 1, 2006.

3
 
Results of Operations
 
Mining Interests           
   
Three Months Ended
  
Six Months Ended
  
($000's)
  
June 30, 2006
  
June 30, 2005
  
June 30, 2006
  
June 30, 2005
  
Gold revenue
        
$
70,528
        
$
27,265
        
$
113,279
        
$
54,495
  
Mining costs
          
29,100
          
18,921
          
49,722
          
37,373
  
Depreciation and depletion
          
11,644
          
4,894
          
17,749
          
9,621
  
Earnings from mining interests
        
$
29,784
        
$
3,450
        
$
45,808
        
$
7,501
  
 
Mining interests includes the Company’s proportionate share of assets, liabilities and results of operations from its joint venture interests in the Sadiola and Yatela mines and the financial position and results of operations from the 100% owned Mupane mine from April 1, 2006.
 
The Company’s share of gold revenue in 2006 was 159% higher than the second quarter of 2005 and 108% higher on a year-to-date basis due to a 47% and 38% increase in gold price and a 73% and 49% increase in production for the respective periods in 2005. The increased production of 19% and 10% for the respective periods is a result of the acquisition of the Mupane mine and increased production at Sadiola and Yatela. The average gold revenue for the three mines was $620 per ounce in the second quarter of 2006 and $593 per ounce year-to-date compared to $428 per ounce in both the second quarter 2005 and year-to-date 2005. Average gold spot price for the second quarter in 2006 was $628 per ounce and $590 per ounce year-to-date in comparison to $427 per ounce for the same periods in 2005.
 
The Company’s mining costs of $29.1 million and $49.7 million in the second quarter of 2006 and year-to-date were 54% and 33% higher than the respective periods in 2005 as a result of the increased production and the addition of Mupane. Consolidated Gold Institute cash costs declined to $270 per ounce in the second quarter of 2006 and $260 per ounce year-to-date versus $276 per ounce and $278 per ounce for the same periods in 2005.
 
In December 2005, an audit assessment was received from the Department of Taxation in Mali for additional taxes and duties relating to the years 2003 and 2004 for the Sadiola and Yatela mines. Mine management and the joint venture partners disputed the claims but made a provision of $2.2 million (IAMGOLD share $0.9 million) for settlement of the claims in the year end 2005 accounts. An additional amount of $4.7 million (IAMGOLD share $1.8 million) for full settlement of the claim was recorded in the first quarter of 2006. Settlement of the claim was made in the second quarter.

4
 
Sadiola Mine (IAMGOLD interest—38%)
Summarized Results
100% Basis
   
2006
  
2005
  
   
2nd Qtr
 
1st Qtr
 
4th Qtr
 
3rd Qtr
 
2nd Qtr
 
1st Qtr
  
Tonnes mined (000t)
    
5,900
    
5,020
    
5,300
    
3,820
    
5,710
    
4,600
  
Ore milled (000t)
    
1,210
    
1,110
    
1,320
    
1,360
    
1,170
    
1,180
  
Head grade (g/t)
    
4.2
    
3.5
    
3.0
    
2.9
    
3.7
    
3.4
  
Recovery (%)
    
85
    
88
    
88
    
92
    
82
    
80
  
Gold production - 100% (000 oz)
    
136
    
111
    
112
    
116
    
113
    
101
  
Gold sales - 100% (000 oz)
    
131
    
111
    
116
    
117
    
110
    
102
  
Gold revenue ($/oz)*
    
628
    
553
    
485
    
439
    
427
    
429
  
Direct cash costs ($/oz)**
    
258
    
285
    
298
    
244
    
282
    
295
  
Production taxes ($/oz)**
    
36
    
33
    
30
    
26
    
25
    
26
  
Total cash costs ($/oz)**
    
294
    
318
    
328
    
270
    
307
    
321
  
Stockpile adjustments ($/oz)**
    
(37
)
  
(45
)
  
(39
)
  
(26
)
  
(46
)
  
(33
)
GI cash cost ($/oz)**
    
257
    
273
    
289
    
244
    
261
    
288
  
* Gold revenue is calculated as gold sales divided by ounces of gold sold.
** Cash costs per ounce are non-GAAP measures. Please refer to the Supplemental Information attached to the Management’s Discussion and Analysis for a reconciliation to GAAP.
 
Tonnages mined for the second quarter were 18% and 3% higher than achieved in the first quarter of 2006 and second quarter of 2005 as a result of higher stripping ratios and increased mining prior to the rainy season. The head grade of the ore provided to the mill was 20% and 14% higher than the first quarter of 2006 and second quarter of 2005 respectively due to a higher proportion of sulphide ore being processed. Sulphide feed to the mill constituted approximately 51% of the total feed at an average head grade of 5.1 g/t.
 
Direct cash costs, at $35.1 million, were higher than the $31.6 million recorded during the first quarter of 2006 and the $29.6 million during the second quarter of 2005 due to the higher level of tonnes mined. Per ounce cash costs were lower in the second quarter of 2006 at $257, primarily due to higher production and stable costs.
 
Metallurgical test work continued during the quarter on developing the optimal method for milling the deep sulphide ores. Also during the quarter, a $2.7 million expenditure was approved to increase the drilling density on the bands of footwall ore in the deep sulphides to convert ounces currently in the inferred category to the indicated category.
 
Additions to capital assets at Sadiola amounted to $2.6 million for the second quarter of 2006 and $4.0 million year-to-date. $0.9 million of the year-to-date amount was spent on the purchase of mining equipment, $0.8 million for the 115 house extension of the mine village and the remainder was spent on a variety of smaller capital projects. Exploration expenditures for the second quarter amounted to $0.4 million and $1.0 million year-to-date, of which $0.5 million was capitalized.
 
Profit distributions of $32.5 million and $42.5 million were made by Sadiola during the quarter and year-to-date, with IAMGOLD’s share being $12.4 million and $16.2 million for the respective periods. Operating cash flow at Sadiola was $26.3 million and $46.7 million for the second quarter of 2006 and year-to-date.

5
 
Yatela Mine (IAMGOLD interest—38%)
Summarized Results
100% Basis
           
   
2006
  
2005
  
   
2nd Qtr
 
1st Qtr
 
4th Qtr
 
3rd Qtr
 
2nd Qtr
 
1st Qtr
  
Tonnes mined (000t)
    
3,220
    
3,030
    
3,170
    
2,780
    
4,250
    
4,200
  
Ore stacked (000t)
    
810
    
820
    
820
    
720
    
800
    
810
  
Head grade (g/t)
    
4.9
    
4.5
    
4.0
    
2.8
    
2.5
    
2.6
  
Gold stacked (oz)
    
128
    
119
    
105
    
65
    
64
    
68
  
Gold production - 100% (000 oz)
    
100
    
82
    
78
    
54
    
57
    
58
  
Gold sales - 100% (000 oz)
    
100
    
87
    
80
    
48
    
55
    
62
  
Gold revenue ($/oz)*
    
627
    
555
    
487
    
438
    
428
    
428
  
Direct cash costs ($/oz)**
    
200
    
200
    
226
    
328
    
283
    
248
  
Production taxes ($/oz)**
    
38
    
36
    
31
    
24
    
26
    
29
  
Total cash costs ($/oz)**
    
238
    
236
    
257
    
352
    
309
    
277
  
Cash cost adjustments ($/oz)**
    
(21
)
  
(29
)
  
(36
)
  
(52
)
  
(3
)
  
(9
)
GI cash cost ($/oz)**
    
217
    
207
    
221
    
300
    
306
    
268
  
* Gold revenue is calculated as gold sales divided by ounces of gold sold.
** Cash costs per ounce are non-GAAP measures. Please refer to the Supplemental Information attached to the Management’s Discussion and Analysis for a reconciliation to GAAP.
 
Gold production for the second quarter of 2006 was 22% and 75% higher than production in the first quarter of 2006 and second quarter of 2005. Gold production for 2006 has been positively impacted by higher grades as mining has progressed to the higher grade portion of the orebody. Tonnes mined were 6% higher than the first quarter of 2006 due to increased mining for the pit cut back and 24% lower than the second quarter of 2005 due to less waste stripping, and access restrictions at the pit bottom.
 
Direct cash costs for the quarter were $19.9 million, which is higher than the $16.4 million recorded in the first quarter of 2006 and the $16.0 million in the second quarter of 2005. This increase is primarily a result of the increase in production and an increase in revenue-based costs. Gold Institute cash costs of $217 per ounce were 5% higher than the first quarter of 2006 and 30% lower than the second quarter of 2005 as a result of good performance on all fronts.
 
A pit cutback and deepening of the Yatela pit was approved in the first quarter and stripping commenced in May. The ultimate depth of the pit has not yet been finalized and is dependent upon the forecast price of gold for the remaining mine life. Current scenarios being analyzed have a projected mine life to 2009 and 2010.
 
Capital expenditures at Yatela totaled $0.4 million for the second quarter of 2006 and year-to-date.
 
During the quarter, Yatela settled the shareholder loans and made loan repayments of $26.0 million for the second quarter and $53.5 million year-to-date, with IAMGOLD’s share being $9.6 million and $19.4 million year-to-date. The Yatela operations are now debt free. Dividend distributions are expected to begin in the third quarter of this year. Operating cash flow at Yatela was $43.1 million and $66.6 million for the second quarter of 2006 and year-to-date. Effective July 4, 2006 Yatela will be subject to income tax at a rate of 35% upon expiry of the five year income tax-free period.

6
 
Mupane Mine (IAMGOLD interest—100%)
Summarized Results
100% Basis
       
   
2006
  
   
2nd Qtr
  
Tonnes mined (000t)
    
2,190
  
Ore milled (000t)
    
240
  
Head grade (g/t)
    
3.3
  
Recovery (oz)
    
87
  
Gold production - 100% (000 oz)
    
22
  
Gold sales - 100% (000 oz)
    
24
  
Gold revenue ($/oz)*
    
591
  
Direct cash costs ($/oz)**
    
401
  
Production taxes ($/oz)**
    
30
  
Total cash costs ($/oz)**
    
431
  
Stockpile adjustments ($/oz)**
    
(36
)
GI cash cost ($/oz)**
    
395
  
* Gold revenue is calculated as gold sales divided by ounces of gold sold.
** Cash costs per ounce are non-GAAP measures. Please refer to the Supplemental Information attached to the Management’s Discussion and Analysis for a reconciliation to GAAP.
 
Mupane was acquired on March 22, 2006 with the acquisition of GGL. The financial results of Mupane have been incorporated into the Company’s financial results from March 31, 2006.
 
On acquisition, the Company acquired forward sales contracts and gold call options and recorded liabilities relating to these contracts as follows:
 
             
Year
Forward
Sales oz
Average
Forward
Price (US$)
Liability
(US$M)
Call Options
(oz)
Average
Price (US$)
Liability
(US$M)
             
2006 (9 months)
58,332
402
11.3
-
-
-
2007
77,776
402
16.4
14,750
375
3.6
2008
77,776
402
17.9
-
-
-
2009
43,888
407
10.5
-
-
-
Total
257,772
403
56.1
14,750
375
3.6
 
The forward sales contracts are accounted for as normal purchase and sales whereby deliveries are recorded at their respective forward prices. On delivery of gold into the forward contracts, the related acquired liability is amortized and recorded into gold revenue. During the second quarter, 19,444 ounces of gold were delivered under forward sales contracts.
 
Gold revenue for the second quarter was $14.4 million and is comprised of the following:
 
Forward sales contracts
  
$
7,823
  
Spot sales
    
2,851
  
Forward sales liability amortization
    
3,677
  
   
$
14,351
  
 
7
 
During the second quarter, the company repurchased the call options for $3.4 million and extinguished the $3.6 million call option liability resulting in a gain of $0.2 million.
 
Mining in the second quarter focused on the Tau and Tholo pits. Mainly fresh sulphide ore was processed during the quarter.
 
Direct cash costs were $8.9 million and Gold Institute cash costs were $395 per ounce. All waste stripping is expensed at Mupane. Costs were higher in the second quarter due to increased reagent consumption associated with the processing of the fresh sulphide ore. Mining costs have also increased due to the higher cost associated with mining the fresh rock.
 
Project initiatives include the installation of a liquid oxygen plant in July and additional oxygen capacity in the fourth quarter. A new ball mill pinion and changes to the flotation circuit will take place in the third quarter.
 
Capital expenditures were $0.7 million for the second quarter of 2006. These expenditures include $0.4 million for the purchase of the oxygen plant with the remainder spent on smaller capital projects.
 
Operating cash flow at Mupane for the second quarter was $3.7 million.
 
During the quarter, bank debt of $16.3 million was repaid.
 
Working Interests
     
Three Months Ended  
    
Six Months Ended 
  
                           
($000's) 
      June 30, 2006      June 30, 2005      June 30, 2006    
June 30, 2005
  
Tarkwa
  
$
5,963
  
$
3,372
  
$
13,148
  
$
8,650
  
Damang
    
2,049
    
163
    
3,665
    
607
  
Earnings from working interests
  
$
8,012
  
$
3,535
  
$
16,813
  
$
9,257
  
 
The Company records on its consolidated statement of earnings, the proportionate share of the profits from its working interests in the Tarkwa mine and the Damang mine.
 
Earnings from working interests increased 127% in the second quarter and 82% on a year-to-date basis over the same periods in 2005 mainly as a result of higher gold prices and a lower effective tax rate. This improvement is offset by an increase in cash costs at both mines. Year-to-date costs for 2006 and 2005 include a non-cash and non-recurring increase to earnings relating to future taxes at Tarkwa and Damang of $1.9 million and $2.1 million (IMG share), respectively as a result of a general reduction of effective tax rates in Ghana from 29% to 25% in 2006 and 35% to 29% in 2005. Production at the mines was stable relative to the comparative periods in 2005.
 
The Company’s share of amortization and depreciation expense recorded in the determination of the above earnings are $2.0 million and $4.3 million for the second quarter of 2006 and year-to-date and $2.4 million and $5.0 million for the same periods in 2005.

8
 
Tarkwa Mine (IAMGOLD interest—18.9%)
Summarized Results
100% Basis
   
2006
  
2005
  
 
  
2nd Qtr
  
1st Qtr
  
4th Qtr
  
3rd Qtr
  
2nd Qtr
  
1st Qtr
  
Tonnes mined (000t)
    
22,090
   
23,850
   
22,410
   
24,060
   
21,870
   
21,120
 
Tonnes mined (000t)
                                      
- Pre-stripping
    
1,330
   
3,190
   
-
   
-
   
-
   
-
 
                                       
Heap Leach:
                                      
Ore crushed (000t)
    
4,260
   
4,370
   
4,030
   
4,140
   
4,220
   
4,060
 
Head grade (g/t)
    
1.2
   
1.2
   
1.2
   
1.2
   
1.3
   
1.2
 
Gold stacked (000 oz)
    
159
    
161
   
158
   
157
   
175
   
150
 
Recovery (%)
    
75
   
75
   
77
   
76
   
77
   
80
 
Gold production (000 oz)
    
120
   
120
   
111
   
120
   
136
   
126
 
                                       
CIL:
                                      
Ore milled (000t)
    
1,110
   
1,300
   
1,130
   
1,140
   
1,180
   
1,160
 
Head grade (g/t)
    
1.7
   
1.7
   
1.6
   
1.5
   
1.7
   
1.8
 
Recovery (oz)
    
97
   
97
   
98
   
97
   
98
   
97
 
Gold production (000 oz)
    
56
   
72
   
56
   
54
   
63
   
59
 
Total gold production & sales
- 100% (000 oz) 
     176    
192
   
167
   
174
   
199
   
185
  
                                       
Gold revenue ($/oz)*
    
626
   
552
   
482
   
437
   
429
   
428
 
Direct cash costs ($/oz)**
    
328
   
289
   
297
   
280
   
237
   
223
 
Production taxes ($/oz)**
    
19
   
17
   
14
   
13
   
13
   
13
 
Total cash costs ($/oz)**
    
347
   
306
   
311
   
293
   
250
   
236
 
Gold-in-process adjustments
($/oz)** 
    
(8
)
  
(2
)
  
(16
)
  
(3
)
   4    
2
 
GI cash cost ($/oz)**
    
339
   
304
   
295
   
290
   
254
   
238
 
* Gold revenue is calculated as gold sales divided by ounces of gold sold.
** Cash costs per ounce are non-GAAP measures. Please refer to the Supplemental Information attached to the Management’s Discussion and Analysis for a reconciliation to GAAP.
 
Gold production in the second quarter of 2006 was 8% and 13% lower than production in the first quarter of 2006 and second quarter of 2005 respectively. Tonnes mined remain at relatively high levels despite an increase in fleet downtime and heavy rainfall during the quarter. The decrease in gold production is a result of reduced feed to the mill. The reduction is primarily a function of a shortfall in the availability of hard ores to optimize the performance of the SAG mill. Pre-stripping at the Teberebie pit began earlier in 2006 in order to release sufficient ore, including hard ores, for the mill. This additional stripping is being capitalized.
 
Direct cash costs for the quarter were $57.8 million, which were higher than the $55.6 million and $47.1 million recorded in the first quarter of 2006 and the second quarter of 2005 as a result of higher fuel, cement and cyanide prices and an increase in maintenance costs for the mining fleet. Much of the mining fleet is of an age to incur maximum contracted maintenance rates. Gold Institute cash costs of $339 per ounce were 12% higher than the first quarter of 2006 and 33% higher than the second quarter of 2005.

9
 
Capital expenditures were $13.1 million and $29.1 million during the second quarter of 2006 and year-to-date. $5.1 million of the year-to-date amount was spent on leach pad expansion, $4.9 million was spent on the Teberebie pre-stripping, $5.7 million was spent on the mining fleet and the remaining was spent on other smaller capital projects.
 
Tarkwa made cash distributions of $35.0 million and $80.0 million for the second quarter of 2006 and year-to-date, with IAMGOLD’s share being $6.1 million and $16.3 million for the respective periods. $3.8 million of the year-to-date amount received is classified as a dividend, which is included in the Company’s operating cash flow and the remaining $12.5 million is classified as a loan repayment, which is classified as an investing activity. Cash balances at Tarkwa as at June 30, 2006 were $35.8 million. Further cash distributions will be dependant on a decision on the mill expansion.
 
Damang Mine (IAMGOLD interest—18.9%)
Summarized Results
100% Basis
           
   
2006
  
2005
  
 
  
2nd Qtr
  
1st Qtr
  
4th Qtr
  
3rd Qtr
  
2nd Qtr
  
1st Qtr
  
Tonnes mined (000t)
    
4,260
   
4,180
   
3,890
   
3,730
   
3,810
   
3,120
 
Tonnes mined (000t)
                                      
- Pit cut back
    
2,430
   
2,570
   
1,990
   
1,550
             
Ore milled (000t)
    
1,300
   
1,380
   
1,320
   
1,330
   
1,260
   
1,260
 
Head grade (g/t)
    
1.4
   
1.5
   
1.5
   
1.5
   
1.5
   
1.4
 
Recovery (%)
    
93
   
93
   
93
   
93
   
92
   
91
 
Gold production & sales
                                      
- 100%(000 oz)
    
56
   
62
   
60
   
57
   
58
   
54
 
Gold revenue ($/oz)*
    
628
   
550
   
481
   
438
   
428
   
429
 
Direct cash costs ($/oz)**
    
342
   
317
   
305
   
322
   
330
   
302
 
Production taxes ($/oz)**
    
19
   
17
   
14
   
13
   
13
   
13
 
Total cash costs ($/oz)**
    
361
   
334
   
319
   
335
   
343
   
315
 
Gold-in-process adjustments
    
 
  
 
    
 
    
 
    
 
    
 
  
 ($/oz)**
    
(11
) 
    11      11      36      0      36  
GI cash cost ($/oz)**
    
350
   
345
   
330
   
371
   
343
   
345
 
* Gold revenue is calculated as gold sales divided by ounces of gold sold.
** Cash costs per ounce are non-GAAP measures. Please refer to the Supplemental Information attached to the Management’s Discussion and Analysis for a reconciliation to GAAP.
 
Gold production in the second quarter of 2006 was 10% and 3% lower than production in the first quarter of 2006 and second quarter of 2005. The decrease in production is a result of lower throughput and grade. Tonnes mined continue to increase as a result of increased waste mined.
 
The primary source of ore for the quarter was from the Tomento satellite mine as the Amoanda pit nears depletion. As the main pit cut back progresses, more ore will be sourced from this area. The satellite Rex pit is also being readied for production.
 
Direct cash costs for the quarter were $19.1 million, which is comparable to the first quarter of 2006 and second quarter of 2005. Gold Institute cash costs were $350 per ounce in the second quarter of 2006 which has increased slightly from the first quarter of 2006 and the second quarter of 2005.

10

 
Capital expenditures were $8.3 million for the second quarter of 2006 and $16.4 million year-to-date. $12.1 million of the year-to-date amount was spent on the pit cut back and the remainder was spent on a variety of small capital projects.
 
Damang made profit distributions of $10.0 million and $25.0 million for the second quarter of 2006 and year-to-date, with IAMGOLD’s share being $2.8 million and $4.7 million for the respective periods and has been included in the Company’s operating cash flow. Cash balances at Damang as of June 30, 2006 were $18.9 million.
 
Royalty Interests

                           
     
Three Months Ended 
    
Six Months Ended 
  
($000's) 
    
June 30, 2006
    
June 30, 2005
      June 30, 2006    
June 30, 2005
  
Gold Royalties
                          
Revenue
  
$
166
  
$
817
  
$
83
  
$
1,523
  
Amortization
    
37
    
544
    
(24
) 
  
898
  
Diamond Royalties
                          
Revenue
    
1,261
    
1,457
    
3,074
    
3,014
  
Amortization
    
696
    
782
    
1,655
    
1,600
  
Earnings from Royalty Interests
  
$
694
  
$
948
  
$
1,526
  
$
2,049
  
 
 
On April 25, 2006, the Company sold the majority of its gold royalty interests for consideration of $21.9 million. Per the sale agreement, all royalty revenues accruing from the beginning of the year were for the benefit of the purchaser. As a result, earnings from royalty interests in the second quarter of 2006 are approximately 26% lower than the second quarter of 2005 and 26% on a year-to-date basis. On completion of the sale, the book value of the Company’s royalty interests were reduced by $7.8 million and goodwill was reduced by $12.9 million.
 
The Company continues to receive royalty revenue from the Diavik diamond mine in Canada and the Magistral gold mine in Mexico.
 
Corporate Administration and Exploration
 
Corporate administration of $3.7 million for the second quarter of 2006 and $6.3 million year-to-date is higher than the $1.7 million for the second quarter of 2005 and $3.7 million year-to-date due to general increases in costs and expenditures and the addition of a satellite office in Perth, Australia.
 
Exploration expenditures of $5.6 million in the second quarter of 2006 and $7.8 million year-to-date were higher than the $3.5 million expended in the second quarter of 2005 and the $4.6 million year-to-date for 2005. The increase is mainly a result of increased activities due to the acquisition of GGL. Certain development expenditures relating to the Quimsacocha project in Ecuador, the Buckreef project in Tanzania and the Mupane mine and surrounding area in Botswana are being capitalized and constitute $4.1 million of the year-to-date total. The exploration budget for the second half of 2006 is $16.1 million with $6.7 million being capitalized.
 
Cash Flow
 
Operating cash flow was $24.3 million for the second quarter of 2006 and $46.1 million year-to-date compared to $5.7 million and $14.2 million for the same periods in 2005. The increase in operating cash flow is a result of improved performances at the Sadiola and Yatela operations, increased gold prices, increased dividend distributions from the Tarkwa and Damang operations and the addition of operating activities resulting from the acquisition of GGL.

11
 
Financing cash flow was negative $22.3 million in the second quarter of 2006 and negative $25.6 million year-to-date compared to $0.7 million and negative $5.4 million for the respective periods in 2005. The change is mainly a result of debt repayments relating to the Mupane $16.3 million and Yatela of $6.6 million and the purchase of Mupane call options of $3.4 million.
 
Investing cash flow was negative $0.4 million in the second quarter of 2006 and $4.7 million year-to-date compared to negative $2.3 million and negative $6.0 million for the respective periods in 2005. The increase in cash flow is mainly a result of loan repayments received from Tarkwa of $4.2 million during the quarter and $12.5 million year-to-date. In respect of investing activities at the Sadiola, Yatela and Mupane operations, $1.9 million was expended during the second quarter of 2006 and $2.5 million year-to-date.
 
Liquidity and Capital Resources
 
 
The Company maintains a strong balance sheet and has sufficient liquidity and capital resources to fund its known commitments.
 
Working Capital
 
The Company’s consolidated working capital position is set out below (in $ million):
 
June 30, 2006
December 31, 2005
Working Capital
$
146.0
$
114.5
Current Ratio
  
4.0
  
5.0
 
Cash and Short-Term Deposits
 
Consolidated cash and short-term deposit balances totaled $102.3 million at June 30, 2006 compared to $61.4 million at year-end 2005, and can be segmented as follows (in $ millions):
 
June 30, 2006
December 31, 2005
Corporate cash and short-term deposits
$
90.9
$
53.4
Joint venture cash
  
11.4
  
8.0
Total
  
102.3
  
61.4
 
Joint venture cash represents the Company’s proportionate share of cash at the Sadiola and Yatela mines and forms part of the working capital at those operations. Cash balances exclude the Company’s proportionate share of cash balances held at the Tarkwa and Damang mines which equate to $6.8 million and $3.6 million respectively as at June 30, 2006 and $8.6 million and $7.7 million respectively as at December 31, 2005.
 
Corporate cash and short-term deposits increased by $16.7 million in the second quarter of 2006 and $37.5 million year-to-date compared to an increase of $9.9 million and $3.3 million in the same periods of 2005. Cash flows that determined these changes are shown below (in $ millions):

12
 
                     
     
Three Months Ended 
    
Six Months Ended 
  
     
June 30, 2006
    
June 30, 2005
    
June 30, 2006
    
June 30, 2005
  
Inflows
                          
Yatela cash receipts
  
$
9.8
  
$
3.3
  
$
19.4
  
$
3.3
  
Tarkwa cash receipts
    
6.1
    
4.7
    
16.3
    
4.7
  
Sadiola cash receipts
    
12.4
    
4.2
    
16.2
    
4.2
  
Cash proceeds from sale of gold royalties
    
13.9
    
–
    
13.9
    
–
  
Share issuances, net of share issue costs
    
0.9
    
2.4
    
9.4
    
3.5
  
Damang cash receipts
    
2.8
    
–
    
4.7
    
–
  
Royalties received, net of withholding taxes and gold bullion receipts
    
1.3
    
2
    
3
    
3.8
  
Interest income
    
0.3
    
0.2
    
1.2
    
0.4
  
Foreign exchange gain on cash balances
    
0.8
    
–
    
0.6
    
–
  
   
$
48.3
  
$
16.8
  
$
84.7
  
$
19.9
  
Outflows
                          
Repayment of Mupane loan
  
$
16.3
  
$
–
  
$
16.3
  
$
–
  
Dividends
    
–
    
–
    
8.9
    
–
  
Exploration, development and exploration administration
    
5.6
    
3.5
    
7.8
    
4.6
  
Corporate administration and taxes
    
2.8
    
1.9
    
5.1
    
3.5
  
Gallery Gold acquisition transaction costs, net of cash acquired
    
1.1
    
–
    
3.2
    
–
  
Purchase of call options
    
3.4
    
–
    
3.4
    
–
  
Working capital and other
    
1.3
    
1.5
    
1.4
    
1.2
  
Mupane mining assets
    
0.7
    
–
    
0.7
    
–
  
Other assets
    
0.4
    
–
    
0.4
    
–
  
   
$
31.6
  
$
6.9
  
$
47.2
  
$
16.6
  
Net inflow (outflow)
  
$
16.7
  
$
9.9
  
$
37.5
  
$
3.3
  
 
The impact on corporate cash balances resulting from the acquisition of GGL is as follows (in $millions):
 
 
Cash balance acquired    $ 0.9  
Purchase of Gallery options      (2.5 )
Transaction costs      (1.6 )
    $ (3.2 )
In addition, the Company paid $0.7 million in 2005 for transaction costs in respect of the acquisition of GGL.
 
Gold Bullion
 
At June 30, 2006, the accumulated gold bullion balance was 148,625 ounces at an average cost of $329 per ounce for a total cost of $48.9 million. The market value of the bullion was $91.2 million using a June 30, 2006 gold price of $614 per ounce.

13
 
Contractual Obligations
 
During the six month period ended June 30, 2006, the following changes occurred to the Company’s contractual commitments.
 
i)
The long-term debt of $6.9 million was repaid, and
 
ii)
On acquisition of Gallery Gold in the first quarter, the Company assumed $16.3 million of third party loans, all of which were repaid during the second quarter.
 
● ● ● ●
 
Some of the disclosures included in this interim report for the second quarter of 2006 represent forward-looking statements (as defined in the US Securities Exchange Act of 1934). Such statements are based on assumptions and estimates related to future economic and market conditions. While management reviews the reasonableness of such assumptions and estimates, unusual or unanticipated events may occur which render them inaccurate. Under such circumstance, future performances may differ materially from projections.
 
As at August 10, 2006, the number of shares issued and outstanding of the Corporation was 175.8 million.
 
For further information contact:
 
Joseph F. Conway    Grant A. Edey 
President & Chief Executive Officer    Chief Financial Officer 
Tel: 416-360-4710  North America  Toll-Free: 1-888-IMG-999    Fax: 416-360-4750 
Please note:
 
This entire press release may be accessed via fax, email, IAMGOLD’s website at www.iamgold.com and through CCN Matthews’ website at www.ccnmatthews.com. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov. If you wish to be placed on IAMGOLD’s email press release list, please contact us at info@iamgold.com.
 
14

Supplemental Information to the Management’s Discussion and Analysis
 
Non-GAAP Performance Measures
 
 
The Company has included cash cost per ounce data, which are non-GAAP performance measures, in order to provide investors with information about the cash generating capabilities and profitability of the Company’s mining operations and comparability to other gold producers. The Company reports total cash cost per ounce wherein the cash cost equals the sum of operating costs inclusive of production-based taxes and management fees. The Company also reports Gold Institute cash cost per ounce data in accordance with the Gold Institute Standard, which the Company believes most gold producers follow. GI cash cost equals total cash cost, as described previously, adjusted for the inclusion of certain cash costs incurred in prior periods or the exclusion of certain cash costs incurred in the current period related to future production such as stockpiling, gold in process and stripping costs. These measures differ from measures determined in accordance with GAAP and should not be considered in isolation or as a substitute for measures of performance or liquidity prepared in accordance with GAAP. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP.
 

                           
(in $000's except where noted)
  
2006
  
 
  
2005 
          
   
Q2
  
Q1
  
Q4
  
Q3
  
Q2
  
Q1
  
Net earnings from mining operations:
                                      
100% owned mine:
                                      
Mupane
  
$
871
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
Joint ventures:
                                      
Sadiola
    
10,545
   
4,463
 
$
1,846
  
$
3,328
  
$
1,632
  
$
1,427
  
Yatela
    
13,695
   
8,543
   
3,893
   
1,521
   
965
   
1,874
 
Working interests:
                                      
Tarkwa
    
5,963
   
7,185
   
2,828
   
2,259
   
3,371
   
5,278
 
Damang
    
2,049
   
1,616
   
831
   
292
   
164
   
444
 
As per segmented information
                                      
note to financial statements
  
$
33,123
  
$
21,807
  
$
9,398
  
$
7,400
  
$
6,132
  
$
9,023
  
Mupane (100%)
                                      
Gold revenue
  
$
14,351
                                
Mining costs:
                                      
Total cash costs
    
(9,602
)
                              
Stockpile movement
    
801
                               
Gold Institute cash costs
    
(8,801
)
  
-
   
-
   
-
   
-
   
-
 
Change in bullion inventory
    
(678
)
                              
Exploration expensed
    
(60
)
                              
Foreign exchange, interest and other
    
(110
)
                              
Other non-cash adjustments
    
-
                               
     
(848
)
  
-
   
-
   
-
   
-
   
-
 
Mining costs
    
(9,649
)
  
-
   
-
   
-
   
-
   
-
 
     
4,702
   
-
   
-
   
-
   
-
   
-
 
Depreciation
    
(4,243
)
                              
Income taxes
    
412
                               
Net earnings from Mupane
  
$
871
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
Gold production - 100% (000 oz)
    
22
                               
Total cash costs per ounce ($/oz)
  
$
431
                                
Gold Institute cash costs per
                                      
ounce ($/oz)
  
$
395
                                

15

                           
(in $000's except where noted)
  
2006
  
 
  
2005 
          
   
Q2
  
Q1
  
Q4
  
Q3
  
Q2
  
Q1
  
Sadiola (38% proportionate share):
                                      
Gold revenue
  
$
31,143
  
$
23,361
  
$
21,377
  
$
19,464
  
$
17,855
  
$
16,597
  
Mining costs:
                                      
Total cash costs
    
(15,212
)
  
(13,442
)
  
(13,963
)
  
(11,917
)
  
(13,202
)
  
(12,259
)
Stockpile movement
    
1,946
   
1,897
   
1,686
   
1,135
   
1,987
   
1,273
 
Gold Institute cash costs
    
(13,266
)
  
(11,545
)
  
(12,277
)
  
(10,782
)
  
(11,215
)
  
(10,986
)
Change in bullion inventory
    
299
   
21
   
(242
)
  
(20
)
  
147
   
(38
)
Exploration expensed
    
(53
)
  
(145
)
  
(50
)
  
(75
)
  
(181
)
  
(62
)
Foreign exchange, interest and other
    
439
   
(1,456
)
  
(3,797
)
  
(313
)
  
(1,157
)
  
(774
)
Other non-cash adjustments
    
24
   
25
   
133
   
132
   
131
   
340
 
     
709
   
(1,555
)
  
(3,956
)
  
(276
)
  
(1,060
)
  
(534
)
Mining costs
    
(12,557
)
  
(13,100
)
  
(16,233
)
  
(11,058
)
  
(12,275
)
  
(11,520
)
     
18,586
   
10,261
   
5,144
   
8,406
   
5,580
   
5,077
 
Depreciation
    
(3,113
)
  
(2,521
)
  
(3,283
)
  
(3,312
)
  
(3,094
)
  
(2,900
)
Income taxes
    
(4,928
)
  
(3,277
)
  
(15
)
  
(1,766
)
  
(854
)
  
(750
)
Net earnings from Sadiola
  
$
10,545
  
$
4,463
  
$
1,846
  
$
3,328
  
$
1,632
  
$
1,427
  
Gold production - 100% (000 oz)
    
136
   
111
   
112
   
116
   
113
   
101
 
Gold production - 38% (000 oz)
    
52
   
42
   
43
   
44
   
43
   
38
 
Total cash costs per ounce ($/oz)
  
$
295
  
$
318
  
$
328
  
$
270
  
$
307
  
$
321
  
Gold Institute cash costs per
                                      
ounce ($/oz)
  
$
257
  
$
273
  
$
289
  
$
244
  
$
261
  
$
288
  
 
                                       
Yatela (40% proportionate share):
                                      
Gold revenue
  
$
25,034
  
$
19,390
  
$
15,617
  
$
8,440
  
$
9,410
  
$
10,633
  
Mining costs:
                                      
Total cash costs
    
(9,487
)
  
(7,775
)
  
(8,032
)
  
(7,541
)
  
(6,998
)
  
(6,374
)
Cash cost adjustments:
                                      
Stockpile movement
    
835
   
1,175
   
(144
)
  
(1,879
)
  
(1,741
)
  
(429
)
Deferred stripping
    
(1,174
)
  
(939
)
  
1,538
   
3,199
   
1,766
   
249
 
Gold in process
    
1,163
   
738
   
(273
)
  
(194
)
  
49
   
382
 
     
824
   
974
   
1,121
   
1,126
   
75
   
202
 
Gold Institute cash costs
    
(8,663
)
  
(6,801
)
  
(6,911
)
  
(6,415
)
  
(6,924
)
  
(6,172
)
Change in bullion inventory
    
-
   
(531
)
  
(471
)
  
747
   
255
   
(611
)
Exploration expensed
    
(3
)
  
(8
)
  
-
   
-
   
-
   
-
 
Foreign exchange, interest and other
    
1,582
   
(358
)
  
(1,528
)
  
152
   
(129
)
  
(130
)
Other non-cash adjustments
    
190
   
176
   
98
   
75
   
153
   
(19
)
     
1,769
   
(721
)
  
(1,901
)
  
974
   
279
   
(760
)
Mining costs
    
(6,894
)
  
(7,522
)
  
(8,812
)
  
(5,441
)
  
(6,645
)
  
(6,932
)
     
18,140
   
11,868
   
6,805
   
2,999
   
2,765
   
3,701
 
Depreciation
    
(4,288
)
  
(3,584
)
  
(2,912
)
  
(1,478
)
  
(1,800
)
  
(1,827
)
Income taxes
    
(157
)
  
259
   
-
   
-
   
-
   
-
 
Net earnings (loss) from Yatela
  
$
13,695
  
$
8,543
  
$
3,893
  
$
1,521
  
$
965
  
$
1,874
  
Gold production - 100% (000 oz)
    
100
   
82
   
78
   
54
   
57
   
58
 
Gold production - 40% (000 oz)
    
40
   
33
   
31
   
21
   
23
   
23
 
Total cash costs per ounce ($/oz)
  
$
238
  
$
236
  
$
257
  
$
352
  
$
309
  
$
277
  
Gold Institute cash costs per
                                      
ounce ($/oz)
  
$
217
  
$
207
  
$
221
  
$
300
  
$
306
  
$
268
  

16

                           
(in $000's except where noted)
  
2006
  
 
  
2005 
          
   
Q2
  
Q1
  
Q4
  
Q3
  
Q2
  
Q1
  
Tarkwa (18.9% proportionate share):
                                      
Gold revenue
  
$
20,835
  
$
20,079
  
$
15,188
  
$
14,387
  
$
16,154
  
$
14,954
  
Mining costs:
                                      
Total cash costs
    
(11,555
)
  
(11,110
)
  
(9,801
)
  
(9,654
)
  
(9,384
)
  
(8,252
)
Gold in process
    
280
   
65
   
524
   
102
   
(183
)
  
(77
)
Gold Institute cash costs
    
(11,275
)
  
(11,045
)
  
(9,277
)
  
(9,552
)
  
(9,567
)
  
(8,329
)
Interest income (expense)
    
40
   
(33
)
  
(119
)
  
248
   
136
   
130
 
Mining costs
    
(11,235
)
  
(11,078
)
  
(9,396
)
  
(9,304
)
  
(9,431
)
  
(8,199
)
     
9,600
   
9,001
   
5,792
   
5,083
   
6,723
   
6,755
 
Depreciation
    
(1,776
)
  
(1,984
)
  
(1,756
)
  
(1,837
)
  
(1,898
)
  
(2,201
)
Income taxes
    
(1,861
)
  
168
   
(1,208
)
  
(987
)
  
(1,454
)
  
724
 
Net earnings from Tarkwa
  
$
5,963
  
$
7,185
  
$
2,828
  
$
2,259
  
$
3,371
  
$
5,278
  
Gold production - 100% (000 oz)
    
176
   
192
   
167
   
174
   
199
   
185
 
Gold production - 18.9% (000 oz)
    
33
   
36
   
32
   
33
   
37
   
35
 
Total cash costs per ounce ($/oz)
  
$
347
  
$
305
  
$
311
  
$
293
  
$
249
  
$
236
  
Gold Institute cash costs per
                                      
ounce ($/oz)
  
$
339
  
$
304
  
$
295
  
$
290
  
$
254
  
$
238
  
 
                                       
Damang (18.9% proportionate share):
                                      
Gold revenue
  
$
6,611
  
$
6,447
  
$
5,474
  
$
4,733
  
$
4,713
  
$
4,367
  
Mining costs:
                                      
Total cash costs
    
(3,805
)
  
(3,916
)
  
(3,631
)
  
(3,620
)
  
(3,778
)
  
(3,209
)
Gold in process
    
115
   
(128
)
  
(123
)
  
(388
)
  
(4
)
  
(311
)
Gold Institute cash costs
    
(3,690
)
  
(4,044
)
  
(3,754
)
  
(4,008
)
  
(3,782
)
  
(3,520
)
Exploration expensed
    
(101
)
  
(57
)
  
(107
)
  
(119
)
  
(63
)
  
(74
)
Interest income (expense)
    
146
   
19
   
(129
)
  
138
   
110
   
48
 
Mining costs
    
(3,645
)
  
(4,082
)
  
(3,990
)
  
(3,989
)
  
(3,735
)
  
(3,546
)
     
2,966
   
2,365
   
1,484
   
744
   
978
   
821
 
Depreciation
    
(268
)
  
(278
)
  
(250
)
  
(295
)
  
(481
)
  
(381
)
Income taxes
    
(649
)
  
(471
)
  
(403
)
  
(157
)
  
(333
)
  
4
 
Net earnings from Damang
  
$
2,049
  
$
1,616
  
$
831
  
$
292
  
$
164
  
$
444
  
Gold production - 100% (000 oz)
    
56
   
62
   
60
   
57
   
58
   
54
 
Gold production - 18.9% (000 oz)
    
11
   
12
   
11
   
11
   
11
   
10
 
Total cash costs per ounce ($/oz)
  
$
361
  
$
334
  
$
319
  
$
335
  
$
343
  
$
315
  
Gold Institute cash costs per
                                      
ounce ($/oz)
  
$
350
  
$
345
  
$
330
  
$
371
  
$
343
  
$
345
  

17

Total mining operations:
                          
Gold revenue
  
$
97,974
  
$
69,277
  
$
57,656
  
$
47,024
  
$
48,132
  
$
46,551
  
Mining costs:
                                      
Total cash costs
    
(49,661
)
  
(36,243
)
  
(35,427
)
  
(32,732
)
  
(33,362
)
  
(30,094
)
Total cash adjustments
    
3,966
   
2,808
   
3,208
   
1,975
   
1,874
   
1,087
 
Gold Institute cash costs
    
(45,695
)
  
(33,435
)
  
(32,219
)
  
(30,757
)
  
(31,488
)
  
(29,007
)
Other adjustments
    
1,715
   
(2,347
)
  
(6,212
)
  
965
   
(598
)
  
(1,190
)
Mining costs
    
(43,980
)
  
(35,782
)
  
(38,431
)
  
(29,792
)
  
(32,086
)
  
(30,197
)
     
53,994
   
33,495
   
19,225
   
17,232
   
16,046
   
16,354
 
Depreciation
    
(13,688
)
  
(8,367
)
  
(8,201
)
  
(6,922
)
  
(7,273
)
  
(7,309
)
Income taxes
    
(7,183
)
  
(3,321
)
  
(1,626
)
  
(2,910
)
  
(2,641
)
  
(22
)
Net earnings from all mines
  
$
33,123
  
$
21,807
  
$
9,398
  
$
7,400
  
$
6,132
  
$
9,023
  
Attributable production (000 oz)
    
158
   
123
   
117
   
109
   
114
   
106
 
Weighted average Total cash
                                     
costs per ounce ($/oz)
  
$
315
  
$
294
  
$
304
  
$
299
  
$
292
  
$
283
  
Weighted average Gold Institute
                                     
cash costs per ounce ($/oz)
  
$
290
  
$
271
  
$
276
  
$
281
  
$
275
  
$
273
  
 
18

 
Consolidated Statements of Earnings and Retained Earnings
(unaudited)
(United States Dollars in 000’s, except per share data)
 
For the period ended June 30, 2006

                   
   
Three months ended
  
Six months ended
  
   
June 30, 2006
 
June 30, 2005
 
June 30, 2006
 
June 30, 2005
  
                           
Revenue:
                          
Gold sales
  
$
70,528
  
$
27,265
  
$
113,279
  
$
54,495
  
Royalties
    
1,427
   
2,274
   
3,157
   
4,537
 
     
71,955
   
29,539
   
116,436
   
59,032
 
                           
Expenses:
                          
Mining costs
    
29,100
   
18,921
   
49,722
   
37,373
 
Depreciation and depletion
    
11,644
   
4,894
   
17,749
   
9,621
 
Amortization of royalty interests
    
733
   
1,326
   
1,631
   
2,488
 
     
41,477
   
25,141
   
69,102
   
49,482
 
     
30,478
   
4,398
   
47,334
   
9,550
 
Earnings from working interests
    
8,012
   
3,535
   
16,813
   
9,257
 
     
38,490
   
7,933
   
64,147
   
18,807
 
Other expenses (income):
                          
Corporate administration
    
3,700
   
1,715
   
6,346
   
3,669
 
Exploration
   
2,425
   
3,489
   
3,714
   
4,646
 
Foreign exchange
    
(194
)
  
(194
)
  
(20
)
  
(350
)
Investment income
    
(1,843
)
  
(118
)
  
(2,295
)
  
(209
)
     
4,088
   
4,892
   
7,745
   
7,756
 
Earnings before income taxes
    
34,402
   
3,041
   
56,402
   
11,051
 
Income taxes (recovery):
                          
Current
    
4,991
   
1,186
   
8,120
   
2,122
 
Future
    
(427
)
  
(520
)
  
(1,407
)
  
(1,189
)
     
4,564
   
666
   
6,713
   
933
 
Net earnings
    
29,838
   
2,375
   
49,689
   
10,118
 
Retained earnings, beginning of period
    
73,872
   
50,140
   
54,021
   
42,397
 
Retained earnings, end of period
  
$
103,710
  
$
52,515
  
$
103,710
  
$
52,515
  
                           
Number of common shares (000's)
                          
Average outstanding during period
   
175,693
   
146,482
   
163,848
   
146,075
 
Outstanding at end of period
   
175,804
   
146,796
   
175,804
   
146,796
 
                           
Net earnings per share (basic and diluted)
  
$
0.17
  
$
0.02
  
$
0.30
  
$
0.07
  
 
See accompanying notes to the consolidated financial statements.

19
 
Consolidated Balance Sheet
(unaudited)
(United States Dollars in 000’s, except per share data)
 
As at June 30, 2006

           
   
As at
  
As at
  
   
June 30, 2006
  
December 31, 2005
  
               
ASSETS
              
               
Current assets:
              
Cash and cash equivalents (note 3)
  
$
70,653
  
$
45,534
  
Short term deposits
    
31,658
   
15,823
 
Gold bullion
             
(market value $91,182; Dec. 31, 2005 - $76,139) (note 4)
    
48,964
   
48,840
 
Accounts receivable and other
   
24,681
   
20,267
 
Inventories
    
18,662
   
12,825
 
     
194,618
   
143,289
 
Ore stockpiles
    
34,180
   
17,941
 
Long-term receivables
   
16,073
   
13,600
 
Working interests
    
88,520
   
92,762
 
Royalty interests
    
42,067
   
51,482
 
Mining interests
    
189,199
   
70,716
 
Development
    
101,650
   
962
 
Other assets
    
10,719
   
3,347
 
Goodwill
    
133,922
   
74,886
 
   
$
810,948
  
$
468,985
  
               
LIABILITIES AND SHAREHOLDERS' EQUITY
              
               
Current liabilities:
              
Accounts payable and accrued liabilities
  
$
32,903
  
$
19,892
  
Current portion of forward sales liability
    
15,675
   
-
 
Dividends payable
    
-
   
8,870
 
     
48,578
   
28,762
 
Long-term liabilities:
              
Long-term portion of loans payable (note 5)
    
-
   
6,924
 
Future income tax liability
    
46,307
   
14,791
 
Asset retirement obligations
    
10,285
   
7,506
 
Long-term portion of forward sales liability
    
36,755
   
-
 
     
93,347
   
29,221
 
Shareholders' equity:
              
Common shares (Issued: 175,804,000 shares) (note 6(a))
    
560,666
   
352,606
 
Stock-based compensation (note 6(b))
    
4,955
   
4,671
 
Share purchase loans
    
(308
)
  
(296
)
Retained earnings
    
103,710
   
54,021
 
 
    
669,023
   
411,002
 
   
$
810,948
  
$
468,985
  
 
See accompanying notes to the consolidated financial statements.

20

 
Consolidated Statements of Cash Flows
(unaudited)
(United States Dollars in 000’s, except per share data)
 
For the period ended June 30, 2006

                   
   
Three months ended
 
Six months ended
  
   
June 30, 2006
  
June 30, 2005
  
June 30, 2006
  
June 30, 2005
  
                           
Operating activities:
                          
Net income
  
$
29,838
  
$
2,375
  
$
49,689
  
$
10,118
  
Items not affecting cash:
                          
Earnings from working interests, net of dividends
    
(5,379
)
  
1,190
   
(8,308
)
  
(4,532
)
Depreciation, depletion and amortization
    
12,506
   
6,233
   
19,543
   
12,138
 
Amortization of forward sales liability
    
(3,677
)
  
-
   
(3,677
)
  
-
 
Future income taxes
    
(427
)
  
(520
)
  
(1,407
)
  
(1,189
)
Stock-based compensation
    
848
   
209
   
1,344
   
398
 
Gain on sale of royalties and repurchase of call options
    
(1,352
)
  
-
   
(1,352
)
  
-
 
Unrealized foreign exchange losses (gains)
    
562
   
(225
)
  
731
   
(332
)
Change in non-cash operating working capital
                          
Current
    
(5,838
)
  
(3,516
)
  
(123
)
  
(1,506
)
Long-term
    
(2,805
)
  
(66
)
  
(10,370
)
  
(882
)
     
24,276
   
5,680
   
46,070
   
14,213
 
Financing activities:
                          
Issue of common shares, net of issue costs
    
894
   
2,371
   
9,431
   
3,537
 
Dividends paid
    
-
   
-
   
(8,870
)
  
(7,276
)
Repayments of non-recourse loans
    
(3,603
)
  
(1,703
)
  
(6,578
)
  
(1,707
)
Repayments of loans payable
    
(16,252
)
  
-
   
(16,252
)
  
-
 
Repurchase of call options
    
(3,363
)
  
-
   
(3,363
)
  
-
 
     
(22,324
)
  
668
   
(25,632
)
  
(5,446
)
Investing activities:
                          
Gallery Gold acquisition costs, net of cash acquired
   
(1,024
)
  
-
   
(3,170
)
  
-
 
(note 1)
                          
Mining interests
    
(1,872
)
  
(2,805
)
  
(2,533
)
  
(6,223
)
Development
    
(3,183
)
  
-
   
(4,106
)
  
-
 
Note receivable
    
2,324
   
806
   
4,475
   
734
 
Distributions received from working interests
    
6,275
   
-
   
12,550
   
-
 
Short term deposits
    
(16,323
)
  
-
   
(15,835
)
  
-
 
Gold bullion royalties
    
(112
)
  
(169
)
  
(124
)
  
(381
)
Proceeds from sale of royalty interests (note 2)
    
13,850
   
-
   
13,850
   
-
 
Other assets
    
(370
)
  
(138
)
  
(426
)
  
(142
)
     
(435
)
  
(2,306
)
  
4,681
   
(6,012
)
Increase in cash and cash equivalents
    
1,517
   
4,042
   
25,119
   
2,755
 
Cash and cash equivalents, beginning of period
    
69,136
   
36,093
   
45,534
   
37,380
 
Cash and cash equivalents, end of period
  
$
70,653
  
$
40,135
  
$
70,653
  
$
40,135
  
                           
Supplemental cash flow information:
                          
Interest paid
  
$
1,924
  
$
47
  
$
2,670
  
$
47
  
Income taxes
    
4,991
   
1,186
   
8,120
   
2,122
 
 
See accompanying notes to the consolidated financial statements.
 
21
 
Notes to Consolidated Statements
(unaudited)
(Tabular amounts in thousands of United States dollars except per share data)
 
The interim consolidated financial statements of IAMGOLD Corporation (“the Company”) have been prepared by management in accordance with accounting principles generally accepted in Canada, except they do not contain all the disclosures as required for annual financial statements. The interim consolidated financial statements have been prepared following the same accounting policies and methods of computation as the consolidated financial statements for the fiscal year ended December 31, 2005 except as noted. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto in the Company’s annual report for the year ended December 31, 2005. The results of operations for the six-month period are not necessarily indicative of the results to be expected for the full year.
 
1. Acquisition:
 
 
On March 22, 2006, the Company acquired all of the issued and outstanding shares of Gallery Gold Limited (“GGL”) in exchange for the issuance of 26,221,468 common shares. GGL, through its subsidiaries, owns a 100% interest in the Mupane gold mine in Botswana and a controlling interest in the Buckreef development project in Tanzania. The purchase price has been determined to be $202.3 million, including acquisition expenses of $2.5 million and the purchase of GGL common share options for $2.4 million.
 
The acquisition has been accounted for under the purchase method. The preliminary allocation of the fair value of the consideration to the fair value of the identifiable assets and liabilities on the closing date is set out below:
 
       
   
Fair Value
  
Assets and liabilities acquired:
        
Cash and cash equivalents
  
$
971
  
Accounts receivable and other
    
3,506
  
Inventories and stockpiles
    
13,932
  
Marketable securities
    
472
  
Mining interest
    
13,568
  
Exploration and development
    
96,582
  
Other assets
    
1,377
  
Goodwill
    
71,991
  
Accounts payable and other liabilities
    
(11,186
)
Loans payable
    
(16,589
)
Forward sales liability
    
(56,107
)
Gold call option
    
(3,604
)
Asset retirement obligation
    
(2,506
)
Future tax liability
    
(32,178
)
   
$
202,329
  
Consideration paid:
        
Issue of 26,221,468 common shares of the Company
  
$
197,448
  
Settlement of GGL common share options
    
2,402
  
Cost of acquisition
    
2,479
  
   
$
202,329
  
 
22

 
The forward sales liability is amortized and recorded as gold revenue when the forward sales contract is settled.
 
2. Royalty Sale:
 
 
On April 25, 2006, the Company closed a transaction with Battle Mountain Gold Exploration Corp. (“BMGX”) whereby the Company sold a portfolio of gold royalties to that corporation. The portfolio included royalties on the Williams, El Limon, Don Mario and Joe Mann mines and the Dolores development project. Total consideration for the sale was $21.9 million, consisting of $13.9 million in cash, 12 million common shares of BMGX valued at $6 million and a $2.0 million debenture of a 100% owned subsidiary of BMGX convertible into common shares of BMGX. The common shares carry certain restrictions as to their resale and have been recorded in marketable securities. The debenture has a term of two years, carries an interest rate of 6%, is convertible into BMGX shares at a rate of $0.50 per share and has been recorded in long-term receivables.
 
Goodwill attributable to the royalties sold of $12.9 million was written off at the time of the sale, resulting in a net after tax gain of $0.6 million on the sale of the royalties.
 
3. Cash and Cash Equivalents:
 
 
           
   
June 30, 2006
 
December 31, 2005
  
Corporate
        
$
59,282
        
$
37,576
  
Joint ventures
          
11,371
          
7,958
  
         
$
70,653
        
$
45,534
  
 
4. Gold Bullion:
 
 
As at June 30, 2006, the Company held 148,625 ounces of gold bullion at an average cost of $329 per ounce for a total cost of $48.9 million. The market value of this gold bullion, based on the market close price on June 30, 2006 of $614 per ounce was $91.2 million.
 
5. Loans Payable:
 
 
 
(a)
The Yatela loan (December 31, 2005-$6.9 million) was repaid in June 2006.
 
 
(b)
The Mupane loan of $16.2 million, acquired from GGL, was repaid in June 2006.
 
6. Share Capital:
 
(a) Authorized:
Unlimited first preference of shares, issuable in series
Unlimited second preference shares, issuable in series
Unlimited common shares
Issued and outstanding common shares are as follows:

23

     
 
Number of Shares
Amount
Issued and outstanding, December 31, 2005
147,648,127
$352,606
Shares issued on acquisition of GGL (note 1)
26,221,468
197,448
Exercise of options
1,905,234
10,372
Share bonus issued
14,330
122
Share purchase plan
14,867
118
Issued and outstanding, June 30, 2006
175,804,026
$560,666
 
(b) Stock-based compensation:
 
The Company has a comprehensive share option plan for its full-time employees, directors and officers and self-employed consultants. The options vest over three years and expire no longer than 10 years from the date of grant.
 
A summary of the status of the Company’s share option plan as of June 30, 2006 and changes during the six months then ended is presented below. All exercise prices are denominated in Canadian dollars.
 
           
   
Options
  
Weighted Average Exercise Price
  
Outstanding, January 1, 2006
    
4,076,242
        
$
6.62
  
Granted
    
1,455,000
          
10.63
  
Exercised
    
(1,905,234
)
        
5.71
  
Forfeited
    
(21,666
)
        
9.44
  
Outstanding, June 30, 2006
    
3,604,342
        
$
8.70
  
Options exercisable, June 30, 2006
    
1,601,842
        
$
7.00
  
 
The fair value of the options granted in 2006 has been estimated at the date of grant using a Black-Scholes option pricing model with the following assumptions: a weighted average risk-free interest rate of 5%, dividend yield of 1%, a weighted average volatility factor of the expected market price of the Company’s common stock of 37%; and a weighted average expected life of these options of 4 or 8 years. The estimated fair value of the options is expensed over the options’ vesting period of 3 years and recorded as stock-based compensation within shareholders’ equity. As options are exercised, these corresponding values are transferred to the common share account within shareholders’ equity. For the six months ended June 30, 2006, $1.1 million was recorded as compensation expense.
 
The Company has a share purchase plan for employees whereby the Company will match the participants’ contribution to purchase a maximum of 750,000 common shares. The plan was activated in 2005. $0.06 million was recorded as compensation expense and 14,867 restricted common shares were issued to employees during the six months ended June 30, 2006. Common shares issued under the share purchase plan are restricted for one year.
 
The Company has a share bonus plan for employees whereby a maximum of 600,000 common shares may be awarded. The Company awarded share bonuses totaling 6,940 shares for the six months ended June 30, 2006 to non-executive board members and recorded $0.1 million as compensation expense. The Company awarded 22,172 restricted common shares with a value of Cdn$0.2 million in 2004 and 77,700 restricted common shares with a value of Cdn$0.8 million in 2006 which are to be issued over a three-year vesting period, of which 7,390 shares were issued and $0.2 million was recorded as compensation expense for the six months ended June 30, 2006.
 
7. Segmented Information:
 
 
 
(a)
The preliminary allocation of the Company’s assets, liabilities, revenue and expenses to the appropriate reporting segments identified by the Company is as follows:
 
June 30, 2006
  
Mali
 
Ghana
 
Botswana
 
 
 
Exploration and 
Development
 
Corporate
 
Total
  
Cash and gold bullion
  
$
11,371
  
$
-
  
$
6,020
  
$
1,981
  
$
131,903
  
$
151,275
  
Other current assets
    
35,060
   
-
   
6,311
   
534
   
1,438
   
43,343
 
Long-term assets
    
93,431
   
-
   
181,868
   
94,775
   
98,576
   
468,650
 
Long-term assets related to working interests
          
147,680
   
-
   
-
   
-
   
147,680
 
   
$
139,862
  
$
147,680
  
$
194,199
  
$
97,290
  
$
231,917
  
$
810,948
  
Current liabilities
  
$
20,902
  
$
-
  
$
22,661
  
$
2,227
  
$
2,788
  
$
48,578
  
Long-term liabilities
    
8,046
   
-
   
48,954
   
32,157
   
4,190
   
93,347
 
   
$
28,948
  
$
-
  
$
71,615
  
$
34,384
  
$
6,978
  
$
141,925
  
                                       
 
                      
Exploration and 
              
December 31, 2005
    
Mali
 
 
Ghana
 
 
Botswana
 
 
Development
 
 
Corporate
 
 
Total
  
Cash and gold bullion
  
$
7,958
  
$
-
  
$
-
  
$
688
  
$
101,551
  
$
110,197
  
Other current assets
    
30,547
   
-
   
-
   
385
   
2,160
   
33,092
 
Long-term assets
    
102,007
   
-
   
-
   
962
   
70,805
   
173,774
 
Long-term assets related to working interests
          
151,922
   
-
   
-
   
-
   
151,922
 
   
$
140,512
  
$
151,922
  
$
-
  
$
2,035
  
$
174,516
  
$
468,985
  
Current liabilities
  
$
15,867
  
$
-
  
$
-
  
$
596
  
$
12,299
  
$
28,762
  
Long-term liabilities
    
14,461
   
-
   
-
   
-
   
14,760
   
29,221
 
   
$
30,328
  
$
-
  
$
-
  
$
596
  
$
27,059
  
$
57,983
  
                                       
 
                      
Exploration and  
              
Three months ended June 30, 2006
    
Mali
 
 
Ghana
 
 
Botswana
 
 
Development
 
 
Corporate
 
 
Total
  
Revenues
  
$
56,177
  
$
-
  
$
14,351
  
$
-
  
$
1,427
  
$
71,955
  
Earnings from working interests
    
-
   
8,012
   
-
   
-
   
-
   
8,012
 
Operating costs of mine
    
21,417
   
-
   
9,479
   
-
   
-
   
30,896
 
Depreciation, depletion and amortization
    
7,401
   
-
   
4,243
   
-
   
733
   
12,377
 
Exploration expense
    
55
   
-
   
60
   
2,425
   
-
   
2,540
 
Other expense
    
(421
)
  
-
   
82
   
56
   
3,450
   
3,167
 
Interest and investment expense
(income), net
    
(1,600
)
  
-
   
28
   
(11
)
  
(1,832
)
  
(3,415
)
Income taxes
    
5,086
   
-
   
(412
)
  
-
   
(110
)
  
4,564
 
Net earnings (loss)
  
$
24,239
  
$
8,012
  
$
871
  
$
(2,470
)
$
(814
)
$
29,838
  
                                       
                     
Exploration and  
              
Three months ended June 30, 2005
    
Mali
 
 
Ghana
 
 
Botswana
 
 
Development
 
 
Corporate
 
 
Total
  
Revenues
  
$
27,265
  
$
-
  
$
-
  
$
-
  
$
2,274
  
$
29,539
  
Earnings from working interests
    
-
   
3,535
   
-
   
-
   
-
   
3,535
 
Operating costs of mine
    
17,453
   
-
   
-
   
-
   
-
   
17,453
 
Depreciation, depletion and amortization
    
4,894
   
-
   
-
   
-
   
1,326
   
6,220
 
Exploration expense
    
181
   
-
   
-
   
3,489
   
-
   
3,670
 
Other expense
    
138
   
-
   
-
   
10
   
1,512
   
1,660
 
Interest and investment expense
(income), net
    
1,149
   
-
   
-
   
(3
)
  
(116
)
  
1,030
 
Income taxes
    
854
   
-
   
-
   
-
   
(188
)
  
666
 
Net earnings (loss)
  
$
2,596
  
$
3,535
  
$
-
  
$
(3,496
)
$
(260
)
$
2,375
  
 
24

               
Exploration and  
          
Six months ended June 30, 2006
  
Mali
 
Ghana
 
Botswana
 
Development
 
Corporate
 
Total
  
Revenues
  
$
98,928
  
$
-
  
$
14,351
  
$
-
  
$
3,157
  
$
116,436
  
Earnings from working interests
    
-
   
16,813
   
-
   
-
   
-
   
16,813
 
Operating costs of mine
    
40,071
   
-
   
9,479
   
-
   
-
   
49,550
 
Depreciation, depletion and amortization
    
13,506
   
-
   
4,243
   
-
   
1,631
   
19,380
 
Exploration expense
    
209
   
-
   
60
   
3,714
   
-
   
3,983
 
Other expense
    
1,485
   
-
   
82
   
70
   
6,256
   
7,893
 
Interest and investment expense
(income), net
    
(1,692
)
  
-
   
28
   
(11
)
  
(2,284
)
  
(3,959
)
Income taxes
    
8,104
   
-
   
(412
)
  
-
   
(979
)
  
6,713
 
Net earnings (loss)
  
$
37,245
  
$
16,813
  
$
871
  
$
(3,773
)
$
(1,467
)
$
49,689
  
                                       
                     
Exploration and   
              
Six months ended June 30, 2005
    
Mali
 
 
Ghana
 
 
Botswana
 
 
Development
 
 
Corporate
 
 
Total
  
Revenues
  
$
54,495
  
$
-
  
$
-
  
$
-
  
$
4,537
  
$
59,032
  
Earnings from working interests
    
-
   
9,257
   
-
   
-
   
-
   
9,257
 
Operating costs of mine
    
34,939
   
-
   
-
   
-
   
-
   
34,939
 
Depreciation, depletion and amortization
    
9,621
   
-
   
-
   
-
   
2,488
   
12,109
 
Exploration expense
    
244
   
-
   
-
   
4,646
   
-
   
4,890
 
Other expense
    
274
   
-
   
-
   
9
   
3,310
   
3,593
 
Interest and investment expense
(income), net
    
1,916
   
-
   
-
   
(7
)
  
(202
)
  
1,707
 
Income taxes
    
1,604
   
-
   
-
   
-
   
(671
)
  
933
 
Net earnings (loss)
  
$
5,897
  
$
9,257
  
$
-
  
$
(4,648
)
$
(388
)
$
10,118
  
 
 
(b)
The Company’s share of mining asset additions at its joint ventures for the six months ended June 30, 2006 is $1.9 million (2005 - $6.2 million).
 
The preliminary allocation of the goodwill arising from the acquisition of GGL to the Botswana and the exploration and development reporting segments is $38.3 million and $33.7 million respectively.
 
 
(c)
The Company’s $11.4 million share of cash at June 30, 2006 (December 31, 2005 - $7.9 million) in the joint ventures is not under the Company’s direct control. The Company’s share of joint venture cash flows for the period ended June 30, 2006 is as follows:
 
   
Three months ended
  
Six months ended
  
   
June 30, 2006
 
June 30, 2005
 
June 30, 2006
 
June 30, 2005
  
Cash flows from (used in) operations
    
27,243
    
5,306
  
$
44,397
  
$
14,030
  
Cash flows from (used in) financing
    
(5,059
)
  
(1,703
)
  
(8,034
)
  
(1,707
)
Cash flows from (used in) investments
    
1,113
    
(1,999
)
  
2,603
   
(5,489
)
 
 
 
 
 
25