• 9 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 10 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 10 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 11 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 12 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 12 hours VW Fails To Secure Critical Commodity For EVs
  • 13 hours Enbridge Pipeline Expansion Finally Approved
  • 14 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 15 hours OPEC Oil Deal Compliance Falls To 86%
  • 1 day U.S. Oil Production To Increase in November As Rig Count Falls
  • 1 day Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 1 day Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
Alt Text

Oil Markets Brace For Another Hurricane

Oil prices drew back this…

Alt Text

The New Challenger To Lithium Batteries

The lithium-ion battery is head…

Tommy Humphreys

Tommy Humphreys

Tommy Humphreys is the editor of CEO.CA, a blog focused on identifying talent and opportunities in natural resources investing. Humphreys' analysis and commentary can be…

More Info

Is This The Next Gold Major?

Is This The Next Gold Major?

CEO Stephen Letwin says IAMGOLD – one of the best-performing gold stocks so far in 2017 - is gunning to be a gold major.

Can IAMGOLD make the move from a mid-tier gold producer to a major? The company’s CEO sure thinks so.

In an expansive interview recently taped in Nelson, British Columbia, Stephen Letwin touches on everything from IAMGOLD’s recent upward surge and why gold majors are facing serious challenges to his own upbringing and what he’s learned about leadership. For investors in the gold space, there is a lot of red meat.

Originally a senior executive in the oil business, Letwin was headhunted for the IAMGOLD chief executive position in 2010. His family and friends were initially puzzled by his decision to leave an oil career that, by his own admission, had made him “a lot of money.”

“I got a lot of pushback from a lot of friends who said, 'Why would you take that risk?'” says Letwin. “I said, 'I've got about 10 to 15 years to do something, I'd like to go and try that.' As far as I could see, (IAMGOLD) is a great company with a great opportunity, and I took the risk, and it's turned out to be a great opportunity.”

Lately, that opportunity has been great for both the company and shareholders. In late 2015 and early 2016 the company’s shares were trading below $2 – for the first time in the company’s history. At publication time the stock is hovering around $6.50 and seems poised for even more of a run. The company has brought costs down from over $1300/oz. to around $1000. And, the reserve life of IAMGOLD’s existing mines has been extended via a careful strategy.

“We started to focus on finding more gold in and around our infrastructure as opposed to spending a lot of money trying to find large deposits in other countries or in the same country,” says Letwin. “And, what that did for us, frankly, is it moved us significantly towards adding reserves.”

As part of this strategy IAMGOLD recently announced the discovery of a new deposit near their Rosebel Gold Mine in Suriname called Saramacca.

“We believe there could be up to 2 million ounces in a very small defined area where we've been drilling,” explains Letwin. “This is a mine (Rosebel) that four years ago had a life expectancy of 2018, next year. We're now looking at what could be a 2030 mine life with all these extra resources. I think that's why we're the top performer here today, that's why we were the top performer last year, and I believe we're going to see some significant improvement in both our cost structure and our reserves going forward.”

IAMGOLD is planning to announce an initial resource estimate for the Saramacca deposit in September, but before that it plans to announce a reserves and resources update for the Rosebel mine concession towards the end of July.

“What we're hoping to communicate to the market towards the end of July is an update of reserves and resources for Rosebel, which we've promised for some time,” says Letwin, “and I think and believe that the market is going to react quite favourably to the fact that, without even considering Saramacca - this large discovery made south of our mill - this mine has got a life of its own without help.”

The July announcement will add to news flow that emerged in early June when IAMGOLD struck up a joint venture deal with Japan’s Sumitomo Metal Mining. Sumitomo is paying $195 million for a 30 percent undivided participating interest in IAMGOLD’s ownership interest in the Côté Gold Project in Ontario – an exciting development for Letwin.

“(Sumitomo) paid $195 million to get into Côté and they're committed to another $300+ million to develop it. This is a major success story for IAMGOLD.”

Ultimately, Letwin believes IAMGOLD can become a major gold producer. He would be pleased if the company is producing 1.5 million ounces within the next five years. In 2016 the company produced just over 800,000 oz.

“Can we become a major? We can!” declares Letwin. “I would like to see that done organically as opposed through acquisition.”

Interestingly, Letwin offers a candid assessment of the state of today’s major companies, like Barrick, Kinross and Agnico Eagle.

“I would tell you that the biggest challenge they have is depletion” explains Letwin. “They cannot replace what they're producing on a timely basis, and if you're looking at that as a gold investor, then we become extremely attractive.”

Letwin’s growth strategy has him excited about the future of IAMGOLD. But, it wasn’t always this way. Three years ago things were very different as IAMGOLD’s share price hovered around $2 and speculation mounted about Letwin’s future with the company.

“You become CEO and you're front and center, and the share price drops, and you have shareholders who are angry and you're at the front of the line - and you should be - when those redemptions are coming through…you grow up,” says Letwin. “It's hard not to take it personally, and to some extent you always take it personally or you wouldn't try and improve things.”

Letwin has been able to fight through those tough times and has IAMGOLD poised for some very interesting things. But, he’s taking it all in stride.

“The one thing you have to watch is don't drink too much of your own whiskey now and become overconfident,” says Letwin wisely. “We're seeing some good results, but it's measured and let's stick to the script and let's move this along without becoming too full of ourselves.”

Great advice for both investing and life. Watch the full interview with Stephen Letwin above.

By Jonathan Roth

Legal Disclaimer/Disclosure: This piece is an advertorial. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of CEO.CA only and are subject to change without notice. Oilprice.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.




Back to homepage

Leave a comment
  • agen bola terpercaya on July 25 2017 said:
    Your article is very useful and has real knowledge. It’s very helpful information. I will be waiting for your Agen Bola Terpercaya

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News