IAMGOLD REPORTS 2012 OPERATING AND FINANCIAL RESULTS All amounts are expressed in U.S. dollars, unless otherwise indicated. Refer to the annual Management Discussion and Analysis (MD&A) and audited consolidated Financial Statements for more information.
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS 2012 OPERATING AND FINANCIAL RESULTS
All amounts are expressed in U.S. dollars, unless otherwise indicated.
Refer to the annual Management Discussion and Analysis (MD&A) and audited consolidated Financial Statements for more information.
Toronto, Ontario, February 20, 2013 – IAMGOLD Corporation (“IAMGOLD” or the “Company”) today reported consolidated financial and operating results for the year and fourth quarter ending December 31, 2012. Revenues of $1.7 billion for 2012 were virtually flat with the prior year, as margins rose slightly to $952 an ounce. Net earnings from continuing operations attributable to equity holders were $334.7 million ($0.89 per share) in 2012 compared to $391.3 million ($1.04 per share) in 2011. Excluding items not indicative of underlying operating performance, adjusted net earnings attributable to equity holders1 were $316.9 million ($0.84 per share) compared to $405.7 million ($1.08 per share) in 2011. The year-over-year earnings decline is the result of lower gold production and higher operating costs and increased exploration expenses, partly offset by higher gold prices. Operating cash flow before changes in working capital1 was $504.0 million ($1.34 per share) compared to $656.7 million ($1.75 per share) in the previous year.
For the fourth quarter 2012, adjusted net earnings1, excluding items not indicative of underlying operating performance, were $90.3 million ($0.24 per share), down 16% from the fourth quarter 2011. Operating cash flow before changes in working capital1 was $130.1 million ($0.35 per share) compared to $190.1 million ($0.51 per share) in the same prior year period.
“Operating performance was solid, but it needs to be better.” said President and CEO, Steve Letwin. “Despite the lower grades at our core gold assets and the disappointing performance at our joint venture operations, we achieved a level of production that wasn’t too far off the mark. Cash costs were in line with our latest guidance for 2012, but the outlook for 2013 reflects the challenges of mining and processing an increasing proportion of hard rock, particularly on the power side. We have a lot of work to do. Our recent share price is not acceptable, and we are determined to improve performance.
“We have to be more innovative in our assault on costs. This requires day-to-day cost containment along with big steps, such as our landmark deal with the Government of Suriname to partner with them to target satellite resources beyond the current concession at a significantly reduced power rate. Beyond 2013, which I’d characterize as a transitional year, we should see an operational reset – including the ramp-up at Westwood, the winding down of Mouska and Yatela, and the throughput expansion for hard rock processing at Essakane which should improve economies of scale.
“Reducing the unit costs associated with mining an increasing proportion of hard rock requires an investment in capacity expansion,” continued Mr. Letwin, “but we will not commit capital to projects, such as the throughput expansion at Rosebel, unless we’re confident they can meet our targeted returns on investment. While we’ve moved the vast majority of the resource from inferred to indicated in only six months at Côté Gold, we won’t need development capital there for another two years. Our financial position remains strong with $1 billion in cash and bullion and nearly $2 billion in liquidity.”
FOURTH FOURTH QUARTER 2012 HIGHLIGHTS
Financial Performance
- Revenues in the fourth quarter 2012 were $468.4 million, down 3% from the fourth quarter 2011. The decline was mainly due to a lower volume of gold sales.
- Cost of sales for the fourth quarter 2012 was $259.9 million, up 2% from the same prior year period due to the increasing cost of consumables and the impact of maturing ore deposits, partially offset by lower costs arising from lower production volumes.
- Net earnings attributable to equity holders were $84.6 million ($0.22 per share), down 37% from $133.6 million ($0.36 per share) in the same period 2011. Lower net earnings were mainly due to lower revenues, higher cost of sales, higher exploration costs and lower gains on sales of assets.
- Adjusting for items not indicative of underlying operating performance, adjusted net earnings1 were $90.3 million ($0.24 per share) compared to $107.8 million ($0.29 per share) in the same prior year period.
- Operating cash flow for the fourth quarter 2012 was $118.9 million ($0.32 per share), down from $205.5 million ($0.55 per share) in the same prior year period mainly due to lower revenues, higher exploration expenses, higher taxes paid and changes in non-cash working capital.
- Operating cash flow1 before changes in non-cash working capital items and long-term ore stockpiles, was $130.1 million ($0.35 per share) in the fourth quarter 2012 compared to $190.1 million ($0.51 per share) in the same quarter 2011.
Production, Cash Costs and Margins
Gold Operations
- Attributable gold production was 214,000 ounces in the fourth quarter 2012 compared to 253,000 ounces in the same period 2011. The decline was mainly due to lower grades at Essakane and the stockpiling of ore at Mouska for processing in 2013.
- Cash costs2 for the fourth quarter 2012 were $731 an ounce, compared to $643 an ounce in the same prior year period. Cash costs for IAMGOLD operated mines were $665 an ounce in the fourth quarter 2012 compared to $562 an ounce in the same quarter 2011.
- The gold margin2 in the fourth quarter 2012 was $973 per ounce, down marginally from the same period in 2011 as higher cash costs were partially offset by higher gold prices.
Niobium Operations
- Niobium production in the fourth quarter 2012 of 1.2 million kilograms was flat with the fourth quarter 2011.
- The operating margin2 in the fourth quarter 2012 was $15 per kilogram, down from $16 per kilogram in the same period 2011 due to the impact of increasing costs and the strength of the Canadian dollar.
FULL YEAR 2012 HIGHLIGHTS
Financial Performance
- Revenues were $1.7 billion in 2012, virtually flat with the prior year as the impact of a lower volume of gold sales ($111.2 million) was offset by a higher realized gold price ($98.8 million) and higher niobium revenues ($12.7 million).
- Cost of sales for 2012 was $948.0 million, up $56.2 million or 6% from the prior year. The increase is mainly related to higher costs associated with mining and processing an increasing proportion of harder rock at Essakane and Rosebel, as well as a longer haul distance at Rosebel. Depreciation expense year-over-year was marginally higher.
Our mines have three types of ore: soft rock, transition rock and hard rock, with the transition rock and hard rock progressively more energy intensive to process than soft rock. The following table shows how the mix of these three ore types is changing at both Essakane and Rosebel:
| Essakane Soft Transition Hard | Rosebel Soft Transition Hard | |
|---|---|---|
| 2012 | 66% 31% 3% | 31% 49% 20% |
| 2013E | 42% 37% 21% | 33% 35% 32% |
As our mines move to a mix with a much higher proportion of hard rock, the demand for power per tonne of ore processed will increase significantly. At Essakane and Rosebel, we expect the proportion of hard rock to approach 100% somewhere in the 2015-2016 time frame, at which time the number of kilowatt hours per tonne of ore processed is expected to be approximately two times greater for both mines.
This ore mix reflects the resources under the current mine plan. However, the Company has a robust near-mine exploration program underway at both Rosebel and Essakane and is actively exploring for soft rock resources in potential satellite deposits.
- Net earnings from continuing operations attributable to equity holders for 2012 were $334.7 million ($0.89 per share), down $56.6 million or 14% from the prior year. The decrease was mainly due to the higher cost of sales ($56.2 million), as noted above, and higher exploration expenses ($39.4 million), partially offset by higher foreign exchange gains ($18.8 million) and lower income tax expense ($21.6 million).
- Adjusted net earnings1 for 2012 were $316.9 million ($0.84 per share1), down $88.8 million ($0.24 per share) or 22% from the prior year.
- Operating cash flow for 2012 was $441.0 million ($1.17 per share), down $151.8 million or 26% from $592.8 million ($1.58 per share) in the prior year. The decrease in operating cash flow is mainly due to higher cost of sales ($56.2 million) and exploration expenses ($39.4 million), as well as higher income taxes paid ($73.5 million).
- Operating cash flow before changes in working capital1 for 2012 was $504.0 million ($1.34 per share1), down $152.7 million ($0.41 per share) or 23% from the prior year.
Financial Position
- Cash, cash equivalents and gold bullion (at market value) was $1,036.8 million at December 31, 2012, down $225.7 million from December 31, 2011. The decline was mainly due to the acquisition of the Côté Gold project ($485.7 million), capital expenditures related to mining assets and exploration and evaluation assets ($700.5 million), the payment of dividends ($106.9 million) and acquisitions of investments ($49.7 million), offset partially by cash generated from the issuance of senior unsecured notes ($650.0 million), operating activities ($441.0 million) and sale of investments ($28.2 million).
- As at December 31, 2012, no funds were drawn against the Company’s $750 million total unsecured revolving credit facilities.
Production, Cash Costs and Margins
Gold Operations
- Attributable gold production from continuing operations for 2012 was 830,000 ounces, down 66,000 ounces or 7% from the prior year. Gold production was lower, mainly the result of lower grades at Essakane (22,000 ounces) and Sadiola (21,000 ounces) as well as the stockpiling of ore at Mouska (20,000 ounces) for processing in 2013.
- Cash costs1 for 2012 were $715 per ounce, up $79 per ounce or 12% from the prior year. Cash costs at IAMGOLD operated mines was $637 per ounce, compared with $573 per ounce in 2011.Cash costs increased mainly due to lower grades, the processing of an increasing proportion of hard rock and inflationary cost pressures across all sites.
Niobium Operations
- Niobium production for 2012 was 4.7 million kilograms, up 2% from the prior year.
- The operating margin per kilogram of niobium2 for 2012 was $15 per kilogram, the same as the previous year.
All-in Sustaining Cost Metric
IAMGOLD is working with its fellow members of the World Gold Council in developing guidelines to better reflect the total cost of producing gold, including an all-in sustaining cost metric. As these guidelines have not been finalized, we have chosen not to present all-in sustaining costs as part of our 2013 guidance. The Company intends to adopt these guidelines once approved.
Reserves and Resources
Reserves and resources, excluding the discontinued operations of Mupane, Tarkwa and Damang in 2011, changed as follows:
- The Company is reporting total attributable proven and probable gold reserves of 11.3 million ounces at the end of 2012 compared to 13.3 million ounces at the end of 2011. Excluding the 2012 sale of Quimsacocha, which accounted for 1.7 million ounces, reserves are down slightly by 2% from 2011. In light of the feasibility study currently underway at Rosebel and due out shortly, it was appropriate for 2012 to reflect Rosebel's December 2011 reserves, net of the year's depletion. A positive reconciliation adjustment for actual production versus the 2011 resource model was observed in 2012. The reserves and resources for Rosebel will be reviewed and updated as part of the feasibility study.
- Total attributable measured and indicated gold resources (inclusive of reserves) increased by 24% or 4.4 million ounces to 22.6 million ounces at the end of 2012, mainly due to the acquisition and further infill and exploration drilling of Côté Gold.
- At the end of 2012, Niobium probable reserves were 1,768 million kilograms of contained niobium pentoxide (Nb2O5), up nominally from the prior year.
- In February 2012, the Company announced an inferred resource estimate of 466.8 million tonnes at an average grade of 1.65% Total Rare Earth Oxides (“TREO”) on the rare earth elements (“REE”) zone adjacent to its niobium mine. Subsequent to the Company’s diamond drilling in 2012, total indicated resources are now estimated at 531 million tonnes at an average grade of 1.64% TREO representing 8.7 billion kilograms of contained TREO. An inferred resource of 527 million tonnes at an average grade of 1.83% TREO representing 9.7 billion kilograms of contained TREO was delineated.
Commitment to Zero Harm Continues
- The Company regrets the drowning of a gardener employed at our exploration office in Ouagadougou, Burkina Faso in November 2012.
- Regarding Health and Safety, the frequency of all types of serious injuries (measured as DART rate3) across IAMGOLD for 2012 was 1.08 compared to 1.12 for the prior year, representing a 4% improvement over 2011.QUARTER 2012 RESULTS
CORPORATE DEVELOPMENTS AND OPERATING HIGHLIGHTS
Côté Gold
- On June 21, 2012, the Company completed the acquisition of all issued and outstanding common shares of Trelawney through a plan of arrangement (the "Transaction"). Under the terms of the Transaction, former shareholders of Trelawney received C$3.30 in cash for each common share of Trelawney held. The main asset acquired in this transaction is the Côté Gold project located adjacent to the Swayze Greenstone Belt in Northern Ontario, Canada.
On October 4, 2012, IAMGOLD announced a mineral resource update for the Côté Gold project which included all validated drill results as at August 1, 2012. The results showed a 274% increase in indicated resources and a substantial increase in total ounces compared to the last release (preacquisition) by Trelawney Mining in February 2012. On January 22, the Company announced another resource update including all validated drill results as at December 31, 2012. The result was a further increase in indicated resources, up 114% from the October 4, 2012 announcement. The indicated resource is now estimated at 269 million tonnes averaging 0.88 grams of gold per tonne for 7.61 million ounces. The inferred resource is estimated at 44 million tonnes, averaging 0.74 grams of gold per tonne. A positive attribute of the deposit is its accessibility for open-pit mining. The deposit locally outcrops at surface and on average is covered with less than six metres of barren overburden.
Senior Notes Offering
- On September 21, 2012, the Company completed the issuance of $650.0 million of senior unsecured notes bearing interest at 6.75% due in 2020. The Company intends to use the proceeds for general corporate purposes, including the funding of capital expenditures and exploration.
Disposal of Quimsacocha
- On November 14, 2012, the Company disposed of its interest in the Quimsacocha project in Ecuador to INV Metals Inc. ("INV Metals") through the disposal of all shares of its wholly-owned subsidiary IAMGOLD Ecuador S.A., in exchange for 231.3 million common shares of INV Metals. The Company holds approximately 47% of the issued and outstanding INV Metals shares immediately after the closing of the transaction.
Westwood
- The Westwood project in Quebec remains on track for a production start by the end of the first quarter 2013. Total gold production from Westwood in 2013, including the processing of ore stockpiled at Mouska, is expected to range between 130,000-150,000 ounces. The gradual ramp-up typical during the startup of an underground mine will result in higher unit costs in the first year of production. Subsequent to year-end, the depth of the shaft reached its interim target of 1,958 metres. Commercial production is projected to begin by October 2013. In October 2012, the union membership ratified a six year contract effective from December 1, 2011.
Essakane
- At the Essakane mine in Burkina Faso, the completion of the plant expansion to accommodate an increasing proportion of hard rock is expected by the end of 2013. The Company successfully negotiated an agreement with the Government of Burkina Faso on fiscal terms related to mine expansions, including a reduction in the import duty on expansion related-materials from 7.5% to 2.5%.
- Gold production is expected to range between 255,000-275,000 ounces in 2013, down from 315,000 ounces in 2012. Ore grades are expected to be 10-15% lower than the life of mine average, mainly due to the processing of lower-grade softer ore that had been stockpiled in the early years as the mine expansion gears up to process higher-grade ore. As we move into harder rock, the higher grades will help mitigate the impact of the higher energy consumption required to treat harder ore and improve grades in line with the life of mine average. The Company is also focused on bringing in softer ore from the Falagountou satellite resource, 8 kilometers east of the main pit.
- A contract was signed with employees allowing for a 5% increase over each of the next three years.
Rosebel
- At the Rosebel mine in Suriname, the Company completed the installation of a temporary pre-crusher, a larger pebble crusher, and an expanded gravity recovery circuit, all of which are having a positive impact on recoveries. Also, to address the transition to harder ore, a third ball mill is under construction and is expected to be brought into production at the end of the first quarter 2013. Further capacity expansion to address the increasing ore hardness will depend on the outcome of the feasibility study to be completed at the end of the first quarter 2013.Gold production in 2013 is expected to range between 365,000-385,000 ounces compared to 382,000 ounces in 2012, as grades are expected to remain fairly constant with some minor variation.
- On November 26, the President of Suriname announced that an agreement had been reached with IAMGOLD with respect to a joint venture that would target satellite resources beyond the current concession, with attractively priced power. Final approval by the National Assembly of the Republic of Suriname is expected in the near future.
Sadiola
- In Mali, the Company is reassessing its strategy with respect to its joint venture operations with AngloGold Ashanti. Until such time as an agreement is reached on how to proceed with the sulphide expansion project the Company is freezing capital expenditures related to the expansion. The expansion project is necessary to accommodate hard rock processing, as the existing mill was not designed to do so. While production at the joint venture operations was not disrupted by the conflict in Mali, the Company has reduced its exploration activity in more remote regions of the country.
Niobec
- The Company plans to complete the feasibility study for the Niobec expansion in the third quarter of 2013. The timing of capital spending related to the Niobec expansion project will depend on the
outcome of the study and will be aligned with the advancement of the permitting process. The permitting process should be finalized by 2014.
Rare Earth Elements
IAMGOLD continues to evaluate options for exploiting the large Rare Earth Elements (“REE”) resource near its Niobec mine operation.
SUMMARIZED FINANCIAL RESULTS
| Financial Position ($ millions, except where noted) | December 31, 2011 | ||||
|---|---|---|---|---|---|
| December 31, 2012 | Change | ||||
| Cash, cash equivalents, and gold bullion at market value at cost Total assets Long-term debt Available credit facilities | $ 1,262.5 $ 1,148.4 $ 4,393.8 $ - $ 350.0 | ||||
| $ | 1,036.8 | (18% | ) | ||
| $ | 910.4 | (21% | ) | ||
| $ | 5,376.2 | 22% | |||
| $ | 638.8 | - | |||
| $ | 750.0 | 114% |
Summary of Financial and Quarters ended Years ended Operating Results December 31, December 31,
| ($ millions, except where noted) | 2012 | Change | 2011 | 2012 | Change | 2011 | ||||
| Financial Data Revenues Cost of sales | $ 481.6 253.9 | $ 1,673.2 891.8 | ||||||||
| $ | 468.4 | (3% | ) | $ | 1,670.0 | - | ||||
| 259.9 | 2% | 948.0 | 6% | |||||||
| Gross earnings from mining operations | $ 227.7 | $ 781.4 | ||||||||
| $ | 208.5 | (8% | ) | $ | 722.0 | (8% | ) | |||
| Net earnings attributable to equity holders of IAMGOLD1 Basic net earnings per share ($/share)1 | $ 133.6 $ 0.36 | $ 391.3 $ 1.04 | ||||||||
| $ | 84.6 | (37% | ) | $ | 334.7 | (14% | ) | |||
| $ | 0.22 | (39% | ) | $ | 0.89 | (14% | ) | |||
| Adjusted net earnings attributable to equity holders of IAMGOLD1, 2 Basic adjusted net earnings per share ($/share)1,2 | $ 107.8 $ 0.29 | $ 405.7 $ 1.08 | ||||||||
| $ | 90.3 | (16% | ) | $ | 316.9 | (22% | ) | |||
| $ | 0.24 | (17% | ) | $ | 0.84 | (22% | ) | |||
| Operating cash flow1 Operating cash flow ($/share)1 | $ 205.5 $ 0.55 | $ 592.8 $ 1.58 | ||||||||
| $ | 118.9 | (42% | ) | $ | 441.0 | (26% | ) | |||
| $ | 0.32 | (42% | ) | $ | 1.17 | (26% | ) | |||
| Operating cash flow before changes in working capital1, 2 Operating cash flow before changes in working capital ($/share)1, 2 | $ 190.1 $ 0.51 | $ 656.7 $ 1.75 | ||||||||
| $ | 130.1 | (32% | ) | $ | 504.0 | (23% | ) | |||
| $ | 0.35 | (31% | ) | $ | 1.34 | (23% | ) |
1 Amounts represent results from continuing operations and do not include discontinued operations.
2 The Company has included the following non-GAAP measures: adjusted net earnings attributable to equity holders of IAMGOLD, adjusted net earnings per share, operating cash flow before changes in working capital per share. Refer to the Supplemental Information attached to this news release for reconciliation to GAAP measures.
KEY OPERATING STATISTICS
Quarters ended Years ended December 31, December 31,
| 2012 | Change | 2011 | 2012 | Change | ||||
| 263 248 253 | ||||||||
| 246 | (6% | ) | 881 | (8% | ) | |||
| 232 | (6% | ) | 827 | (8% | ) | |||
| 214 | (15% | ) | 830 | (7% | ) | |||
| $ | 1,704 | 4% | $ 1,638 $ 643 $ 995 | $ | 1,667 | 7% | ||
| $ | 731 | 14% | $ | 715 | 12% | |||
| $ | 973 | (2%) | $ | 952 | 4% | |||
| 1.2 1.3 $ 16 | ||||||||
| 1.2 | - | 4.7 | 2% | |||||
| 1.1 | (15%) | 4.7 | 2% | |||||
| $ | 15 | (6%) | $ | 15 | - |
2011
Key Operating Statistics – Gold mines
Gold sales – 100% (000s oz)1 953 Gold sales – Attributable (000s oz)1 896 Gold production – Attributable (000s oz)3 896 Average realized gold price ($/oz)1 $ 1,555 Total Cash cost ($/oz)1, 2 $ 636 Gold margin ($/oz)1, 2 $ 919
Key Operating Statistics – Niobec mine
Niobium production (millions of kg Nb) 4.6
Niobium sales (millions of kg Nb) 4.6 Operating margin ($/kg Nb)2 $ 15
1 Amounts represent results from continuing operations and do not include discontinued operations.
2 The Company has disclosed the following non-GAAP measures: adjusted net earnings attributable to equity holders of IAMGOLD, adjusted net earnings per share, operating cash flow before changes in working capital per share, total cash cost per ounce, gold margin per ounce, and operating margin per kilogram of niobium sold at the Niobec mine. Refer to the Non-GAAP performance measures section of the MD&A for reconciliation to GAAP measures.
3 Excludes attributable ounces from discontinued operations of nil for the year ended December 31, 2012 (year ended December 31, 2011: 76,000 ounces). Discontinued operations include Mupane, Tarkwa and Damang, which were sold in 2011.
ATTRIBUTABLE GOLD PRODUCTION AND CASH COSTS
The table below presents the gold production attributable to the Company along with the weighted average cash cost per ounce of production.
Gold Production (000s oz) Total Cash Cost1 ($/oz)
Quarters ended Years ended Quarters ended Years ended December 31, December 31, December 31, December 31,
| 2012 2011 2012 2011 2012 2011 2012 2011 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| IAMGOLD Operator Rosebel (95%) 100 104 382 385 $ 661 $ 598 $ 671 $ 616 Essakane (90%) 77 94 315 337 672 425 603 488 Doyon division2 (100%) - 19 4 24 - 1,044 137 1,076 | ||||||||||
| 100 | 382 | $ | 661 | $ | 671 | |||||
| 77 | 315 | 672 | 603 | |||||||
| - | 4 | - | 137 | |||||||
| 177 | 217 | 701 | 746 | $ | 665 | $ 562 | $ | 637 | $ 573 | |
| Joint Ventures Sadiola (41%) 27 28 100 121 $ 1,118 $ 1,023 $ 1,076 $ 816 Yatela (40%) 10 8 29 29 843 1,604 1,337 1,534 | ||||||||||
| 27 | 100 | $ | 1,118 | $ | 1,076 | |||||
| 10 | 29 | 843 | 1,337 | |||||||
| 37 36 129 150 $ 1,046 $ 1,146 $ 1,134 $ 954 | ||||||||||
| Continuing operations 214 253 830 896 $ 731 $ 643 $ 715 $ 636 | ||||||||||
| Discontinued operations3 | - | 76 | $ - | $ 847 | ||||||
| - | - | $ | - | $ | - | |||||
| Total | 214 | 253 | 830 | 972 | $ | 731 | $ 643 | $ | 715 | $ 653 |
| Continuing operations Cash cost excluding $ 632 $ 554 $ 624 $ 551 royalties Royalties 99 89 91 85 Total cash cost1 $ 731 $ 643 $ 715 $ 636 | $ 554 89 | $ 551 85 | ||||||||
| $ | 632 | $ | 624 | |||||||
| 99 | 91 | |||||||||
| $ | 731 | $ 643 | $ | 715 | $ 636 |
1 Total cash cost is a non-GAAP measure. Refer to the Supplemental Information section attached to the MD&A for reconciliation to GAAP measures.
2 In 2012, the mine, as planned, did not produce gold other than marginal gold derived from the mill clean-up process.
3 Discontinued operations include Mupane, Tarkwa and Damang which were sold in 2011.
FOURTH
FOURTH QUARTER 2012 OPERATIONS REVIEW
ROSEBEL MINE, SURINAME
Operating Performance
Attributable gold production of 100,000 ounces for the fourth quarter 2012 was 4% lower than the same prior year period, primarily as a result of lower grades, partially offset by higher recoveries. Recoveries have improved as a result of completion of the gravity circuit.
Total cash costs per ounce in the fourth quarter were higher than the same period in 2011 mainly due to higher labour, fuel and power costs. Higher labour costs reflect inflation and fuel costs were mainly higher due to the longer haulage distance.
CAPEX
During the fourth quarter 2012, Rosebel’s capital expenditures were $25.9 million and included advancing the third ball mill project ($11.7 million), resource development and near-mine exploration ($4.1 million) and other smaller projects ($10.1 million).
ESSAKANE MINE, BURKINA FASO
Operating Performance
Attributable gold production of 77,000 ounces was 18% lower than the same period in 2011, mainly due to processing of lower-grade ore partially offset by the increase in ore milled.
Total cash costs per ounce in the fourth quarter were higher than the same period in 2011 mainly due to the impact of lower grades on gold production, higher energy prices and upward pressure on the price of consumables.
CAPEX
During the fourth quarter 2012, Essakane’s capital expenditures were $80.4 million and included the expansion project ($47.4 million), capitalized stripping costs on the push-back of the pit ($21.6 million) and other smaller projects ($11.4 million).
DOYON DIVISION, CANADA
During the fourth quarter 2012, the site continued to stockpile ore which will be processed in the refurbished mill in 2013.
SADIOLA MINE, MALI
Operating Performance
Attributable gold production of 27,000 ounces for the fourth quarter 2012 was 4% lower than the prior year period due to lower grades, partially offset by higher throughput.
Total cash costs per ounce were higher in the fourth quarter than in the same quarter 2011 due to lower production, higher energy and the higher cost of consumables.
CAPEX
The Company’s attributable portion of capital expenditures during the fourth quarter 2012 was $14.5 million and included spending on the Sadiola sulphide project ($10.7 million) and various smaller sustaining capital projects ($3.8 million).
Sadiola did not distribute a dividend during the fourth quarter 2012.
YATELA MINE, MALI
Operating Performance
Attributable gold production of 10,000 ounces for the fourth quarter 2012 was 25% higher compared to the prior year period.
Total cash costs per ounce in the fourth quarter 2012 were lower compared to the fourth quarter 2011. As expected, the short-term non-capitalized waste stripping activities completed in the third quarter have improved the access to ore.
There were no significant capital expenditures year-to-date for both 2012 and 2011.
Yatela did not distribute a dividend during the fourth quarter 2012.
NIOBEC NIOBIUM MINE, CANADA
Operating Performance
Niobium production of 1.2 million kilograms in the fourth quarter 2012 was unchanged compared to the same period in 2011 as higher throughput and recovery was offset by lower Nb2O5 ore grades.
Niobium revenues decreased to $46.0 million in the fourth quarter 2012 compared to $47.7 million in the same period in 2011 due to lower sales volume partially offset by higher realized niobium prices. Operating margin during the fourth quarter 2012 was lower compared to the same prior year period due to the impact of increasing costs and the strength of the Canadian dollar.
CAPEX
In the fourth quarter 2012, capital expenditures were $24.1 million and included underground development ($4.0 million), process improvement ($4.7 million) and feasibility study ($5.3 million) and other smaller projects ($10.1 million).
ATTRIBUTABLE GOLD SALES VOLUME AND REALIZED GOLD PRICE
Gold sales (000s oz) Realized gold price ($/oz)
Quarters ended Years ended Quarters ended Years ended December 31, December 31, December 31, December 31,
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | ||
| 205 | 225 38 | 751 | 803 150 | $ | 1,703 | $ 1,631 $ 1,677 | $ | 1,667 |
| 41 | 130 | $ | 1,707 | $ | 1,666 | |||
| 246 | 263 | 881 | 953 | $ | 1,704 | $ 1,638 | $ | 1,667 |
2011
Operator Joint ventures1 Total sales from continuing operations 2,3 1 Attributable sales of joint ventures: Sadiola (41%) and Yatela (40%).
2 Attributable sales volume for the fourth quarters 2012 and 2011 were 232,000 ounces and 248,000 ounces, respectively, and for the years ended 2012 and 2011 were 827,000 ounces and 896,000 ounces respectively after taking into account 95% of the Rosebel sales and 90% of the Essakane sales.
3 Continuing operations exclude Mupane, Tarkwa and Damang which were sold in 2011 and are discontinued operations.
NIOBEC PRODUCTION, SALES AND OPERATING MARGIN
Quarters ended Years ended December 31, December 31,
| 2011 | 2011 | |||||||
| 2012 | Change | 2012 | Change | |||||
| Total operating material mined (000s t) Ore milled (000s t) Grade (% Nb O ) 2 5 Niobium production (millions of kg Nb) Niobium sales (millions of kg Nb) Operating margin ($/kg Nb)1 | 556 | 6% | 525 539 0.56 1.2 1.3 $ 16 | 2,155 | 3% | 2,087 2,113 0.57 4.6 4.6 $ 15 | ||
| 558 | 4% | 2,195 | 4% | |||||
| 0.56 | - | 0.55 | (4%) | |||||
| 1.2 | - | 4.7 | 2% | |||||
| 1.1 | (15%) | 4.7 | 2% | |||||
| $ | 15 | (6%) | $ | 15 | - |
1 Operating margin per kilogram of niobium at the Niobec mine is a non-GAAP measure. Refer to the Supplemental Information section attached to the MD&A for reconciliation to GAAP measures.