IAMGOLD Corporation
TSX : IMG
NYSE : IAG
BOTSWANA : IAMGOLD

IAMGOLD Corporation

August 14, 2007 19:30 ET

IAMGOLD 2007 Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2007) - IAMGOLD Corporation (TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) -

All amounts are expressed in US dollars, unless otherwise indicated.

SECOND QUARTER HIGHLIGHTS:

- Revenue was $167.3 million.

- Average gold realized price was $660 per ounce.

- Attributable gold production was 251,000 ounces.

- Gold Institute (GI) cash cost(i) of production was $408 per ounce.

- Operating cash flow was $14.1 million.

- An impairment charge at the Mupane mine totaled $93.7 million and results in a net loss for the second quarter of 2007 of $81.4 million or $0.28 per share. Excluding this non-cash charge, net earnings would have been $12.4 million or $0.04 per share.

- In June, the Company announced a revised resource estimate for the Westwood project which resulted in a 128% increase to the resource.

- Cash, short term deposits and gold bullion position as at June 30, 2007 was $189.5 million valuing gold bullion at market.

- Capital expenditures totaled $20.4 million.

- Corporate exploration expenditures were $14.3 million.

- In July, the Company initiated a $26 million expansion and optimization of its Rosebel milling operations to maintain throughput and improve efficiency.



CONSOLIDATED FINANCIAL RESULTS SUMMARY
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
(unaudited) 2007 2006 2007 2006
(in $000's except where noted) $ $ $ $
---------------------------------------------------------------------------
Net earnings (loss) (81,370) 29,838 (70,085) 49,689

Net earnings (pre-impairment)(i) 12,355 29,838 23,640 46,689
Net earnings (loss) per share
- basic and diluted ($/share) (0.28) 0.17 (0.24) 0.30
Net earnings per share (pre-impairment)
- basic and diluted ($/share) 0.04 0.17 0.08 0.30
Operating cash flow 14,062 24,276 30,714 46,070
Gold produced IMG share (oz) 251,000 158,000 470,000 281,000
GI cash cost ($/oz)(i) 408 290 412 282
Average realized gold price ($/oz) 660 621 654 591
---------------------------------------------------------------------------
(i) Gold Institute cash cost per ounce is also a non-GAAP measure. Please
refer to Supplemental Information attached to the MD&A for a
reconciliation to GAAP. Net earnings (pre-impairment) is a non-GAAP
measure.


A conference call to review the Corporation's second quarter results will take place on Wednesday, August 15, 2007 at 11:00 a.m. EST. Local call-in number: 416-644-3421 and N.A. toll-free: 1-800-732-9303. 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 15 to August 22, 2007 by dialing local: 416-640-1917, passcode: 21240381# and N.A. toll-free: 1-877-289-8525, passcode: 21240381#. A replay will also be available on IAMGOLD's website.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

The following Management's Discussion and Analysis ("MD&A"), dated August 14, 2007, should be read in conjunction with the MD&A for the year ended December 31, 2006, the Company's annual audited consolidated financial statements, the notes relating thereto, the supplementary financial information included in the Company's annual report, and the unaudited interim consolidated financial statements and notes contained in this report. The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). All figures in this MD&A are expressed in US dollars, unless stated otherwise.

OVERVIEW

IAMGOLD Corporation ("IAMGOLD" or "IMG" or the "Company") is an established mid-tier gold mining and exploration company. Following the acquisition of Gallery Gold Limited and Cambior Inc. in 2006, IAMGOLD's interests include eight operating gold mines, a diamond royalty, a niobium producer, and exploration projects located throughout Africa and the Americas. Its advanced exploration projects include the Camp Caiman project in French Guiana, the Quimsacocha project in Ecuador, the Buckreef project in Tanzania and the Westwood project in Quebec. IAMGOLD's securities trade on the Toronto, New York, and Botswana stock exchanges.

The Company incurred a net loss for the second quarter of 2007 of $81.4 million or $0.28 per share including an impairment charge of $93.7 million related to the Mupane mine, compared to net earnings of $29.8 million or $0.17 per share for the second quarter of 2006. Excluding the impairment at Mupane, net earnings would have been $12.4 million or $0.04 per share. Net loss for the first half of 2007 was $70.1 million or $0.24 per share compared to net earnings of $49.7 million or $0.30 per share for the first half of 2006. Excluding the Mupane write-down, net earnings for the first half would have been $23.6 million or $0.08 per share. Revenues in 2007 benefited from stronger gold prices but were offset by higher operating costs at the mining operations. The impairment charge at Mupane is attributable to a reduction in expected cash flows from this mine.

Operating cash flow for the second quarter of 2007 was $14.1 million compared to $24.3 million in the second quarter of 2006. Operating cash flow for the first half of 2007 was $30.7 million compared to $46.1 million for the first half of 2006. The decrease is a result of lower earnings and no dividends being received from Tarkwa and Damang during the second quarter of 2007, due to reinvestment of cash in operations.

The Company's cash, short-term deposit and gold bullion position totaled $189.5 million as at June 30, 2007 with gold bullion valued at market.

ACQUISITIONS

Cambior Inc.

On November 8, 2006, the Company acquired all of the issued and outstanding shares of Cambior Inc. ("Cambior"). The preliminary purchase price has been determined to be $1.1 billion, including transaction costs of $4.6 million. The Company has made a preliminary allocation of this price to the individual assets acquired and is in the process of determining the final allocation with the assistance of third party consultants.



SUMMARIZED FINANCIAL RESULTS
---------------------------------------------------------------------------
2007 2006 2005
---------------------------------------------------------------------------
(in $000's
except
where
noted) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
---------------------------------------------------------------------------
$ $ $ $ $ $ $ $

Net
earnings
(loss) (81,370) 11,285 9,367 13,425 29,838 19,851 6,178 4,198
Net
earnings
(loss) per
share -
basic and
diluted (0.28) 0.04 0.04 0.08 0.17 0.13 0.04 0.03

Operating
cash flow 14,062 16,652 2 17,919 24,276 21,794 18,002 1,828

Cash,
short-term
deposits
and gold
bullion
(at cost) 141,818 159,256 173,376 170,231 151,275 133,323 110,197 90,799
(at market)189,538 208,649 218,345 210,331 193,493 170,864 137,496 112,204

Gold
produced
(000 oz -
IMG share) 251 219 219 140 158 123 117 109

Weighted
average GI
cash cost
($/oz -
IMG
share)(i) 408 416 368 329 290 271 276 281

Gold spot
price
($/oz)(ii) 667 650 613 622 628 554 485 439
---------------------------------------------------------------------------

(i) Weighted average Gold Institute cash cost per ounce is a non-GAAP
measure. Please refer to the Supplemental Information attached to the
MD&A for reconciliation to GAAP.
(ii) Average gold price as per the London Gold PM fix.



IAMGOLD ATTRIBUTABLE PRODUCTION AND COSTS

The table below presents the production attributable to IAMGOLD's ownership
in its operating gold mines along with the weighted average cost of
production.

---------------------------------------------------------------------------
2007 2006
---------------------------------------------------------------------------
Production (000 oz) Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
Sadiola-38% 34 31 50 46 52 42
Yatela-40% 33 35 34 33 40 33
Mupane-100% 24 17 24 19 22 -
Rosebel-95% 69 46 38(1) - - -
Doyon-100% 34 31 23(1) - - -
Sleeping Giant-100% 18 17 8(1) - - -
Tarkwa-18.9% 32 33 34 33 33 36
Damang-18.9% 7 9 10 9 11 12
---------------------------------------------------------------------------
Total production 251 219 219 140 158 123
---------------------------------------------------------------------------
Total cash cost(i)
($/oz-IMG share) 425 436 389 348 315 294
GI cash cost(i)
($/oz-IMG share) 408 416 368 329 290 271
---------------------------------------------------------------------------

(1) For the period November 8, 2006 to December 31, 2006.
(i) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.


Gold production at the operating mines in the second quarter of 2007 was 59% ahead of production compared to the second quarter of 2006. The increase in 2007 is mainly a result of the addition of production from the Rosebel, Doyon and Sleeping Giant mines, offset by a reduction at the Sadiola mine.

Gold production in the first half of 2007 was 67% ahead of production compared to the first half of 2006 mainly due to the addition of production from the Mupane, Rosebel, Doyon and Sleeping Giant mines, offset by a reduction at the Sadiola mine.

Gold cash costs, as defined by the Gold Institute ("GI") for all gold mines, were $408 per ounce during the second quarter of 2007 compared to $290 per ounce during the second quarter of 2006 and $416 per ounce during the first quarter of 2007. GI costs were $412 per ounce during the first half of 2007 compared to $282 per ounce during the same period in 2006.

The Company's attributable share of gold production in 2007 from the above operating mines is expected to be approximately 970,000 ounces of gold at a Gold Institute cash cost in the range of $410 to $420 per ounce, including royalties based on a gold price of $650 per ounce. The expected production decreased mainly due to the lower recovery at Sadiola, lower head grades at Damang and lower first quarter production at Mupane due to fewer tonnes processed and lower head grades. The increase in the expected unit GI costs is driven by the lower production, higher drilling, processing, fuel and labour costs and royalties to be paid.

MARKET TRENDS

IAMGOLD generates revenues from the sale of gold and ferroniobium and a royalty interest in a diamond mine.

During the first half of 2007, the gold price displayed considerable volatility and traded between $608 and $691 per ounce. The closing price as at June 30, 2007 was $651 per ounce. Gold price averaged $667 per ounce during the second quarter of 2007 and $658 per ounce during the first half of 2007 compared to $628 and $590 per ounce in the same period respectively in 2006.

Niobium is a strengthening element used in the manufacturing of specialty steel alloys. Demand is rising strongly, supported by growth in China, high demand for pipeline steels, and favorable economic conditions worldwide. Demand is expected to remain strong for the foreseeable future. Ferroniobium prices, like demand, have increased to record levels during the second quarter of 2007 and continue to rise.



RESULTS OF OPERATIONS

MINING AND WORKING INTERESTS
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
($ 000's) 2007 2006 2007 2006
$ $ $ $
---------------------------------------------------------------------------
Revenues 167,306 71,955 313,664 116,436
Mining costs 113,451 29,100 211,797 49,722
Depreciation and depletion 28,734 12,377 52,172 19,380
---------------------------------------------------------------------------
Earnings from mining interests 25,121 30,478 49,695 47,334
---------------------------------------------------------------------------
Tarkwa 6,174 5,963 11,553 13,148
Damang 139 2,049 1,044 3,665
---------------------------------------------------------------------------
Earnings from working interests 6,313 8,012 12,597 16,813
---------------------------------------------------------------------------
Total earnings from mining and
working interests(1) 31,434 38,490 62,292 64,147
---------------------------------------------------------------------------
Net earnings (loss) as per financial
statements (81,370) 29,838 (70,085) 49,689
---------------------------------------------------------------------------

(1) Non-GAAP measure: The Company reports total earnings from mining and
working interests. This is an additional information and it should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP.


Mining interests include 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, results of operations from the 100% owned Mupane, Doyon, Sleeping Giant and Niobec mines, and the 95% owned Rosebel mine.

The working interests owned by the Company are an 18.9% interest in each of two Ghanaian registered companies, Gold Fields Ghana Limited (owns the Tarkwa mine) and Abosso Goldfields Limited (owns the Damang mine).

During the second quarter of 2007, the Company's consolidated mining revenues were 133% higher than the second quarter of 2006. The increase in 2007 was attributable to an increase in the average gold price and higher gold production with the inclusion of the Rosebel, Doyon and Sleeping Giant mines. Also contributing to the rise in revenues were higher sales of ferroniobium. The average gold revenue recorded for all gold mines was $660 per ounce in the second quarter of 2007 compared to $621 per ounce during the second quarter of 2006. The average gold revenue for all gold mines was $654 per ounce during the first half of 2007 compared to $591 per ounce during the first half of 2006. Revenues for the first half of the year were $313.7 million compared to $116.4 for the first half of 2006. The increase is due to acquisitions and the higher gold price.

The Company's mining costs of $113.5 million in the second quarter of 2007 and $211.8 million, in the first half of 2007 were higher than in 2006 as a result of the acquisition of mines in 2006 and general increases to the input costs of operations.

The net loss for the six month period was $70.1 million compared to net earnings of $49.7 million for the first half of 2006. The loss is primarily attributable to the impairment of the Mupane asset.



Sadiola Mine (IAMGOLD interest - 38%)
Summarized Results
100% Basis
---------------------------------------------------------------------------
2007 2006
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
Total material mined (000t) 7,742 7,597 7,295 5,221 5,894 5,022
Ore milled (000t) 1,048 1,030 1,181 1,320 1,210 1,110
Head grade (g/t) 4.0 3.6 4.9 3.1 4.2 3.5
Recovery (%) 79 78 77 93 85 88
Gold production - 100% (000 oz) 89 83 131 121 136 111
Gold sales - 100% (000 oz) 92 89 127 127 131 111
Gold revenue ($/oz)(i) 666 652 614 626 628 553
Direct cash costs ($/oz)(ii) 474 443 309 268 259 285
Production taxes ($/oz)(ii) 42 42 36 39 36 33
Total cash cost ($/oz)(ii) 516 485 345 307 295 318
Cash cost adjustments ($/oz)(ii) (110) (76) (52) (38) (38) (45)
GI cash costs ($/oz)(ii) 406 409 293 269 257 273
---------------------------------------------------------------------------

(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(ii) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.


Gold production at the Sadiola mine, located in Mali, on a 100% basis, was 89,000 ounces during the second quarter of 2007 compared to 136,000 ounces during the second quarter of 2006 due to less ore milled, lower grade and lower recovery. Tonnages mined in the second quarter of 2007 were 31% higher than the second quarter of 2006 due to better equipment availability and the addition of mining equipment. Ore milled decreased by 13% in the second quarter of 2007 compared to the second quarter of 2006 due to the processing of more complex soft sulphide ore during the quarter. The soft sulphide material processed in the second quarter of 2007 came from the high grade stockpile and had different metallurgical characteristics than the soft sulphide material treated in 2006. In order to process this material, throughput was reduced to increase leach residence time and additional reagents were added, mainly peroxide and cyanide. The resulting recovery was lower in the second quarter 2007 and resulted in recovery of less than 70% in June. Some of the poor recovery was due to base metal contamination of the carbon in the CIP circuit which caused poor elution efficiency. For the remainder of the year, a mixture of oxide ore and lower grade soft sulphide ore will be fed to the plant in order to improve the recovery and gold production.

Direct cash costs, on a 100% basis, in the second quarter of 2007, at $42.1 million, were higher than the $35.1 million recorded during the second quarter of 2006. This is a result of the increase in mined tonnage in 2007 and due to processing the more metallurgical complex soft sulphide tonnes in the plant. The material treated in the second quarter was more expensive to treat due to the additional reagents required. In 2007, 47% of the mill feed was sulphide material versus 51% in 2006. The stripping ratio was 3.1 in the second quarter of 2007 versus 3.5 in the same quarter of 2006. The lower stripping ratio was due to an increase in ore mined during the quarter which came mainly from the satellite pits. The GI cash costs per ounce at $406 were higher than the $257 in the second quarter of 2006 due to the increase in mined tonnes, higher consumables costs and fewer ounces of gold produced. The GI cash costs per ounce were $407 during the first half of 2007 compared to $265 during the same period of 2006.

Work continued on the deep sulphide project during the quarter with the completion of a phase 8 drilling program. This new information will be used for the feasibility study model. Metallurgical testwork also continued with the focus on bio-oxidation of a flotation concentrate.

Dividend distributions of $11.2 million were made by Sadiola during the second quarter of 2007, with IAMGOLD's share being $4.3 million ($22.5 million and $8.6 million respectively for the first half of 2007).

Capital expenditures on a 100% basis during the second quarter of 2007 were $2.2 million and $4.5 million for the first half of 2007, and were spent on drilling of the deep sulphide zone and the costs associated with installing a gravity concentrator in the mill circuit.



Yatela Mine (IAMGOLD interest - 40%)
Summarized Results
100% Basis
---------------------------------------------------------------------------
2007 2006
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
Total operating material mined
(000t) 780 877 1,151 1,126 2,291 3,035
Capitalized waste mined pit
cutback (000t) 3,478 3,348 3,402 2,416 928 -
Ore crushed (000t) 842 716 907 670 810 820
Head grade (g/t) 5.0 3.3 3.9 3.0 4.9 4.5
Gold stacked (000 oz) 136 75 101 64 128 119
Gold production - 100% (000 oz) 83 88 85 84 100 82
Gold sales - 100% (000 oz) 80 90 83 84 100 87
Gold revenue ($/oz)(i) 666 651 618 621 627 555
Direct cash costs ($/oz)(ii) 117 204 262 228 200 200
Production taxes ($/oz)(ii) 38 40 36 37 38 36
Total cash cost ($/oz)(ii) 155 244 298 264 238 236
Cash cost adjustments ($/oz)(ii) 72 (64) (64) (25) (21) (29)
GI cash costs ($/oz)(ii) 227 180 234 239 217 207
---------------------------------------------------------------------------

(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(ii) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.


Gold production of the Yatela mine, located in Mali, on a 100% basis, was 83,000 ounces for the second quarter of 2007 and was 17% lower than the second quarter of 2006. The decrease in gold production was the result of less gold being stacked during the first quarter 2007 than the first quarter 2006. Stacked tonnage was 6% higher in the second quarter of 2007 as a result of increased availability of the crushing and stacking equipment. Mining tonnage increased to 4.3 million tonnes for the second quarter of 2007 as a result of increased waste mining from deepening the pit.

Direct cash costs, on a 100% basis, for the second quarter of 2007 were $9.7 million, which is lower than the $19.9 million recorded in the second quarter of 2006. The decrease is a result of a required change in accounting policy for stripping at the Yatela operations. (See "Changes in Canadian Accounting Policies"). As a result of the recent guidance under Canadian GAAP, stripping costs associated with the deepening of the Yatela pit are now being capitalized and prior accumulated deferred stripping balances are being amortized over the units of production to be exposed by that stripping.

Gold Institute cash costs of $227 per ounce were 5% higher in the second quarter of 2007 compared to the second quarter of 2006 as a result of lower gold production and the change in accounting policy for stripping.

Capital expenditures on a 100% basis, at Yatela totaled $10.8 million for the second quarter of 2007 and $21.1 million for the first half of 2007 and were mainly spent on capitalized waste stripping and the construction of leach pads.

Dividend distributions of $40.0 million were made by Yatela to its shareholders during the second quarter of 2007 with IAMGOLD's share being $16.0 million.



Mupane Mine (IAMGOLD interest-100%)
Summarized Results
100% Basis
---------------------------------------------------------------------------
2007 2006
Q2 Q1 Q4 Q3 Q2
---------------------------------------------------------------------------
Total material mined (000t) 2,423 2,075 2,036 1,928 2,167
Ore milled (000t) 233 183 228 220 240
Head grade (g/t) 3.7 3.3 3.6 3.0 3.3
Recovery (%) 87 86 90 89 87
Gold production - 100% (000 oz) 24 17 24 19 22
Gold sales - 100% (000 oz) 23 19 19 21 24
Gold revenue ($/oz)(i) 617 606 618 589 591
Direct cash costs ($/oz)(ii) 482 635 503 497 401
Production taxes ($/oz)(ii) 30 29 26 34 30
Total cash cost ($/oz)(ii) 512 664 529 531 431
Cash cost adjustments ($/oz)(ii) (67) (14) 9 (12) (36)
GI cash cost ($/oz)(ii) 445 650 538 519 395
---------------------------------------------------------------------------

(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(ii) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.



As at June 30, 2007, the outstanding Mupane forward sales contracts were as
follows:
-------------------------------------------------------------
Year Forward Sales Average Forward Liability
oz Price ($/oz) ($000)
-------------------------------------------------------------
2007 38,888 403 8,409
2008 77,776 402 17,874
2009 43,888 407 10,472
-------------------------------------------------------------
Total 160,552 404 36,755
-------------------------------------------------------------


The Mupane forward sales contracts are accounted for as normal purchase and sales contracts whereby deliveries are recorded at their respective forward prices. On delivery of gold into the Mupane forward contracts, the related acquired liability is amortized and recorded into gold revenue. In the second quarter of 2007, 19,663 (38,888 during the first half of 2007) ounces of gold were delivered under forward sales contracts.



Revenues were $14.3 million in the second quarter of 2007 and are comprised
of the following:
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
(in $000) June 30, 2007 June 30, 2007
---------------------------------------------------------------------------
$ $
---------------------------------------------------------------------------
Spot sales 2,215 2,215
Forward sales contracts 7,912 15,647
Silver sales 53 172
Forward sales liability amortization 4,108 8,031
---------------------------------------------------------------------------
14,288 26,065
---------------------------------------------------------------------------


Gold production for the second quarter of 2007 totaled 24,000 ounces, which was a 9% increase from the second quarter of 2006 mainly due to higher mill head grades despite lower tonnage milled.

In the second quarter of 2007, 2.4 million tonnes were mined which was 12% higher than the second quarter of 2006. The increase in mined tonnage was due to increased mining equipment availability and utilization.

A new PSA oxygen plant was installed at the end of the first quarter of 2007 and was commissioned during the second quarter of 2007.

A reorganization of the mining department occurred in April, resulting in the day to day operations of the mining contractor coming under the direction and supervision of Mupane staff. Mine production and efficiency has improved as a result of this change.

Direct cash costs of $11.7 million in the second quarter of 2007 were higher than the $10.8 million spent in the first quarter of 2007 and the $8.9 million spent during the second quarter of 2006 due to higher tonnes mined and increased mining and milling costs. Gold Institute cash costs for the second quarter of 2007 were 13% higher than the second quarter of 2006 at $445 per ounce, and was a result of the unfavourable conditions mentioned above. The GI cost per ounce was $530 during the first half of 2007.

Capital expenditures for the first half of 2007 were $0.6 million and were mainly spent on the purchase of the new oxygen plant and raising the tailings dam.

Due to the under performance of the Mupane mine over the last year, a review of all aspects of the operation was completed during the second quarter of 2007. In addition, the exploration programs carried out in the area around the Mupane mine over the last year have been rigourously reviewed. The exploration results have been disappointing and the decision has been taken to restrict the future exploration program and to lay-off the majority of the exploration personnel.

The long-term mine plan has been updated, takes into account only known mineralization and incorporates current unit operating costs. The result is an impairment charge to the Mupane operations of $93.7 million in total. The $93.7 million consists of a reduction of goodwill of $32.8 million, a reduction of $8.0 million to long term assets (stockpiles) and a reduction of $52.9 million in the carrying value of the Mupane mine.

Net estimated future cash flows from the Mupane mine were calculated, on an undiscounted basis, based on best estimates of future gold production, which were established using long-term gold prices. Future expected operating costs, capital expenditures and asset retirement obligations were based on the life of mine plan. The fair value was calculated by discounting the estimated future net cash flows using a single interest rate, commensurate with the risk. Management's estimate of future cash flows is subject to risks and uncertainties, therefore changes could occur. The Mupane mine is expected to continue operations to mid 2010 including the processing of stockpiled ore.

The decrease in estimated production did not have any impact on the accounting treatment for the Mupane forward sales contracts which are accounted for as normal purchase and sales contracts, whereby deliveries are recorded at their respective forward prices.



Rosebel Mine (IAMGOLD interest-95%)
Summarized Results
100% Basis
--------------------------------------------------------------------------
2007 2006
Q2 Q1 Q4(1)
--------------------------------------------------------------------------
Total material mined (000t) 8,168 7,205 5,382
Ore milled (000t) 1,949 1,522 1,173
Head grade (g/t) 1.2 1.0 1.1
Recovery (%) 93 89 92
Gold production - 100% (000 oz) 71 48 40
Gold sales - 100% (000 oz) 71 48 43
Gold revenue ($/oz)(i) 660 653 625
Direct cash costs ($/oz)(ii) 401 440 358
Royalties ($/oz)(ii) 66 63 58
Total cash cost ($/oz)(ii) 466 505 416
GI cash cost ($/oz)(ii) 466 505 416
--------------------------------------------------------------------------
(1) For the period November 8 to December 31, 2006.
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(ii) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.


During the second quarter of 2007, the Rosebel mine produced, on a 100% basis, 71,000 ounces of gold at a Gold Institute cash cost of $466 per ounce and 119,000 ounces at a GI cash cost of $482 per ounce during the first half of 2007. Production and costs of the first quarter of 2007 were adversely affected by a three week strike at site. The strike was settled and the mine workers accepted a three year labour agreement. Mining during the second quarter took place in higher grade areas of the pits and activities were impacted, as anticipated, by the rainy season. Production results were positively impacted by the higher recovery due to higher grade of the material mined. Unit costs were positively impacted by the higher grade but remained higher than normal due to the rainy season. The unit cost was also negatively impacted by a higher fuel price, higher cost for tires and higher maintenance costs. Unit costs will decrease in comparison with the first and second quarter due to the dry season starting in the third quarter.

In July, the Company initiated a $26 million investment at Rosebel which consists of the installation of an additional ball mill, leaching tanks and equipment. The ball mill is currently owned by the Company and will be relocated from Guyana. This project will allow Rosebel to maintain current milling rates even with the higher hard rock ratios that will be experienced in the future as mining progresses deeper into the pits. The investment will also optimize various areas of the mill that were originally designed to 12,000 tpd and will result in better recovery. The project is expected to be completed in 2008 and generate a significant internal rate of return in excess of 20%.

Capital expenditures amounted to $5.7 million during the second quarter of 2007 and $10.2 million for the first half of 2007 and were mainly related to purchases of equipment and capitalized exploration expenditures.



Doyon Division (IAMGOLD interest-100%)
Summarized Results
100% Basis
--------------------------------------------------------------------------
2007 2006
Q2 Q1 Q4(1)
--------------------------------------------------------------------------
Ore milled (000t) 173 147 114
Head grade (g/t) 6.5 6.8 6.7
Recovery (%) 96 96 96
Gold production - 100% (000 oz) 34 31 23
Gold sales - 100% (000 oz) 28 33 23
Gold revenue ($/oz)(i) 664 655 629
Direct cash costs ($/oz)(ii) 460 508 403
Royalties ($/oz)(ii) 50 56 48
Total cash cost ($/oz)(ii) 510 564 451
Stockpile adjustment (ii) 23 (55) -
GI cash cost ($/oz)(ii) 533 509 451
--------------------------------------------------------------------------
(1) For the period November 8 to December 31, 2006.
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(ii) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.


During the second quarter of 2007, gold production of the Doyon division was 34,000 ounces compared to 31,000 ounces during the first quarter of 2007. During the first quarter of 2007, the new copper flotation circuit was commissioned at the Doyon mill, one month ahead of schedule and was fully operational during the second quarter and resulted in an increase in ore milled and gold production. Additionally, metallurgical results have exceeded expectations. Stockpiles of gold-copper ores that were generated at the end of the first quarter during the commissioning period for the new circuit were partially processed and should be entirely processed by the end of the third quarter. Total cash costs per ounce were 10% lower than the first quarter of 2007 due to the increase in ore milled and despite a 6% strengthening in the Canadian dollar. Gold Institute cash costs were $533 per ounce compared to $509 incurred in the first quarter of 2007. The increase is mainly due to the treatment of ore stockpiles and the strengthening of the Canadian dollar.

Operational activities were executed as planned despite the continuing challenging ground conditions at the Doyon mine and the shortage of qualified labour in the North Western Quebec region. Capital expenditures amounted to $4.1 million during the second quarter of 2007 and $10.0 million during the first half of 2007, and were mainly related to underground infrastructure and development, purchases of equipment and the Westwood-Mooshla exploration project which continue to generate encouraging results as disclosed in recent press releases.



Sleeping Giant Mine (IAMGOLD interest-100%)
Summarized Results
100% Basis
--------------------------------------------------------------------------
2007 2006
Q2 Q1 Q4(1)
--------------------------------------------------------------------------
Ore milled (000t) 43 45 22
Head grade (g/t) 13.1 12.0 11.1
Recovery (%) 98 97 97
Gold production - 100% (000 oz) 18 17 8
Gold sales - 100% (000 oz) 17 17 8
Gold revenue ($/oz)(i) 666 655 629
Direct cash costs ($/oz)(ii) 318 371 429
Total cash costs ($/oz)(ii) 318 371 429
Stockpile adjustments ($/oz)(ii) (20) (41) 17
GI cash cost ($/oz)(ii) 298 330 446
------------------------------------------------------------------------
(1) For the period November 8 to December 31, 2006.
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(ii) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.


During the second quarter of 2007, gold production totaled 18,000 ounces at a Gold Institute cash cost of $298 per ounce and 17,000 ounces at a GI cost of $330 per ounce during the first quarter of 2007. These improved results are related to higher headgrade and recovery during the second quarter of 2007. Production and unit cost exceeded expectations in the first half of the year. Operational results continue to be positively impacted by improved productivity due to the training program for young miners, by lower dilution in certain areas of the mine, and better grade and improved sequencing of mining activities. Unit cost was negatively impacted by the strengthening of the Canadian dollar. Gold Institute costs are expected to increase in the third quarter as draw downs of broken ore inventory start in some of the shrinkage stopes and due to the mining of lower grade areas.

Capital expenditures at Sleeping Giant totaled $0.1 million during the first half of 2007 related to underground exploration. There should be no capital expenditures in the second half of the year.

Unionized employees of the Sleeping Giant mine voted during the second quarter of 2007 for the renewal of their collective agreement for a period of three years.

Niobec Mine

Sales and production at the Niobec mine in the second quarter of 2007 were higher than the first quarter of 2007. Higher production was the result of the optimization program initiated in 2005 and improved productivity.

Operating cash flow during the second quarter of 2007 before changes in non-cash working capital totaled $11.2 million as a result of higher prices and sales compared to $8.8 million during the first quarter of 2007. Favorable market conditions will support current prices for the foreseeable future. Demand and prices continue to exceed expectations.

In preparation for a shaft deepening program planned in 2008, investments in a new hoist and headframe extension were initiated in the first quarter of 2007 and should be completed during the fourth quarter of 2007. All activities to the new hoist installation continue to progress as planned.

Capital expenditures at the Niobec mine totaled $5.7 million during the second quarter of 2007 and $8.2 million during the first half of 2007, and were mainly due to the shaft deepening program and continued productivity optimization initiatives.



Tarkwa Mine (IAMGOLD interest - 18.9%)
Summarized Results
100% Basis
---------------------------------------------------------------------------
2007 2006
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
Total operating material
mined (000t) 21,841 24,165 21,639 21,653 22,089 23,848

Capitalized waste mined -
Teberebie pit cutback
(000t) 6,679 4,569 4,596 2,712 1,327 3,192

Heap Leach:
-----------
Ore crushed (000t) 4,212 4,375 4,230 4,200 4,260 4,370
Head grade (g/t) 1.0 1.0 1.1 1.1 1.2 1.2
Gold stacked (000 oz) 141 141 154 152 166 161
Gold production (000 oz) 101 104 110 110 120 120

Mill:
-----
Ore milled (000t) 1,431 1,519 1,350 1,330 1,110 1,300
Head grade (g/t) 1.5 1.6 1.7 1.5 1.7 1.7
Recovery (%) 97 97 97 97 97 97
Gold production (000 oz) 69 71 68 64 56 72
Total gold production &
sales - 100% (000 oz) 170 174 179 174 176 192
Gold revenue ($/oz)(i) 669 650 611 623 626 552
Direct cash costs
($/oz)(ii) 366 371 344 347 328 289
Production taxes
($/oz)(ii) 20 19 18 19 19 17
Total cash cost
($/oz)(ii) 386 390 363 366 347 306
Gold-in-process
adjustments ($/oz)(ii) (57) (15) (23) (3) (8) (2)
GI cash cost ($/oz)(ii) 329 375 340 363 339 304
---------------------------------------------------------------------------
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(ii) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.


Gold production at the Tarkwa mine, located in Ghana, on a 100% basis, was 170,000 ounces in the second quarter of 2007, 3% lower than production in the second quarter of 2006 mainly due to lower head grade.

In addition, 6.7 million tonnes of capitalized waste, associated with waste stripping at the Teberebie pit, were mined in the second quarter of 2007 versus 1.3 million tonnes in the same quarter of 2006. Capitalized waste stripping is being carried out at Teberebie in order to provide sufficient feed of hard ores for the mill grinding circuit.

Total cash costs, on a 100% basis, for the second quarter of 2007 were $65.8 million, which were higher than the $61.1 million recorded in the second quarter of 2006. The increase in direct cash costs was the result of higher fuel, maintenance, cyanide and cement costs and, additional costs of power generation.

Gold Institute cash costs of $329 per ounce in the second quarter of 2007 were 3% lower than the second quarter of 2006 due to gold-in-process adjustments.

Capital expenditures, on a 100% basis, totaled $58.8 million during the second quarter of 2007 and $79.8 million during the first half of 2007, and were mainly spent on waste stripping at the Teberebie pit, expansion of the CIL plant, the north heap leach expansion, the expansion of the secondary mining fleet and costs associated with the joint venture power generation project.

During the first half of 2007, Tarkwa did not make any cash distributions compared to $35.0 million during the second quarter of 2006 ($85.0 million during the first half of 2006), as all internal cash flows were retained to fund the mill expansion. Cash balances at Tarkwa as at June 30, 2007 were $29.1 million (March 31, 2007 - $32.4 million and December 31, 2006 - $20.8 million). Future cash distributions will be dependant on timing of expenditures for the mill expansion and the north heap leach facility.



Damang Mine (IAMGOLD interest - 18.9%)
Summarized Results
100% Basis
---------------------------------------------------------------------------
2007 2006
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
Total operating material mined
(000t) 4,636 4,371 5,411 5,087 4,262 4,176
Capitalized waste mined
- Pit cut back (000t) 2,745 3,767 2,859 2,370 2,430 2,570
Ore milled (000t) 1,242 1,384 1,326 1,320 1,300 1,380
Head grade (g/t) 1.1 1.2 1.3 1.2 1.4 1.5
Recovery (%) 91 92 93 93 93 93
Gold production & sales - 100%
(000 oz) 39 48 52 48 56 62
Gold revenue ($/oz)(i) 669 649 612 622 628 550
Direct cash costs ($/oz)(ii) 572 443 434 406 342 317
Production taxes ($/oz)(ii) 20 19 18 19 19 17
Total cash costs ($/oz)(ii) 592 462 452 425 361 334
Gold-in-process adjustments
($/oz)(ii) (8) 4 7 23 (11) 11
GI cash cost ($/oz)(ii) 584 466 459 448 350 345
---------------------------------------------------------------------------
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(ii) Cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the MD&A for reconciliation to
GAAP.


Gold production of the Damang mine located in Ghana, on a 100% basis, in the second quarter of 2007, was 30% lower than production in the second quarter of 2006. The decrease in production is a direct result of lower milled tonnage, grade and recovery. Gold head grade to the plant was 21% lower during the second quarter of 2007 than the second quarter of 2006 resulting from the depletion of the Amoanda pit which provided higher grade material to the mill in the second quarter 2006. The Damang main pit cutback has accessed higher grade ore, but at lower volumes than were supplied by the Amoanda pit in 2006. To make up the difference in ore volume, lower grade stockpile material was added to the mill feed. Milling throughput and grade was also affected by a mechanical failure of the primary crusher. During the period of crusher repairs, lower grade and softer stockpile material was fed to the plant. Recovery was lower during the second quarter of 2007 due to availability problems in the CIL circuit. Operational tonnes mined increased by 9% in the second quarter of 2007 compared to the second quarter of 2006, due to more waste mining, mainly in the high strip ratio Tomento pits. The operating strip ratio increased in the second quarter of 2007 to 6.1 from 3.8 in the second quarter of 2006.

Total cash costs, on a 100% basis for the second quarter of 2007 were $23.2 million, which is higher than the $20.1 million recorded in the second quarter of 2006. Gold Institute cash costs increased to $584 per ounce in the second quarter of 2007 compared to $350 per ounce during the second quarter of 2006 due to increased operating tonnage mined, additional on-site power generation costs, higher consumable costs and the decrease in gold production.

Capital expenditures, on a 100% basis, were $8.8 million for the second quarter of 2007 and $17.8 million in the first half of 2007 mainly spent on the Damang Pit Cutback, raising the East tailings storage facility and on the construction of a 7th CIL tank.

Damang did not make any cash distributions in the first half of 2007 compared to $10.0 million during the second quarter of 2006 ($25.0 million during the first half of 2006) as all funds were retained to finance the pit deepening. Cash balances at Damang as of June 30, 2007 were $12.5 million (March 31, 2007 - $17.1 million and December 31, 2006 - $17.3 million).

ROYALTY INTERESTS

Revenues from royalty interests were $2.0 million in the second quarter of 2007 compared to $1.4 million in the second quarter of 2006 ($4.1 million and $3.2 million during the first half of 2007 and 2006 respectively). Royalty revenues are primarily derived from the Diavik royalty interest. Minor amounts were received in 2006 from the Magistral mine in Mexico from production resulting from the rinsing of the leach pads.



EXPLORATION AND DEVELOPMENT
---------------------------------------------------------------------------
2007 2006
($000's) Q2 Q1 Q4 Q3 Q2 Q1
$ $ $ $ $ $
---------------------------------------------------------------------------
Mine exploration
Capital 5,369 5,346 1,690 262 162 71
Expense (included in
mining costs) 2,523 2,751 3,020 100 115 154
---------------------------------------------------------------------------
7,892 8,097 4,710 362 277 225
---------------------------------------------------------------------------
Corporate Exploration
Capital-development 8,796 6,113 4,366 2,332 3,183 923
Exploration expense 5,465 3,253 5,016 3,094 2,425 1,289
---------------------------------------------------------------------------
14,261 9,366 9,382 5,426 5,608 2,212
---------------------------------------------------------------------------
Total exploration and
development
Capital 14,165 11,459 6,056 2,594 3,345 994
Expense 7,988 6,004 8,036 3,194 2,540 1,443
---------------------------------------------------------------------------
22,153 17,463 14,092 5,788 5,885 2,437
---------------------------------------------------------------------------


During the first half of 2007, significant changes were made to the structure of the exploration group in order to rationalize the Company's exploration effort. The regional exploration office in Val-d'Or, Canada was closed along with the Perth, Australia office which previously hosted the exploration and project development groups. Exploration activities in Argentina were also suspended, and the Mendoza office is scheduled for closure in the fourth quarter.

MINE EXPLORATION

In the second quarter of 2007, the Company spent $7.9 million in exploration activities at the mines compared to $0.3 million during the second quarter of 2006 ($16.0 million during the first half of 2007 compared to $0.5 million in the first half of 2006). Capitalized exploration expenditures mainly included work at Westwood (Doyon), Rosebel and Sadiola.

Westwood

In June 2007, IAMGOLD announced results of additional holes from its Westwood underground exploration program which confirmed the existence of three mineralized zones. Westwood is located near the Company's Doyon infrastructure within the Cadillac belt in the Abitibi region of northwest Quebec. In 2007, over $5.0 million will be spent on this program to develop the resource and advance the exploration drift. The Company's Project Development group has undertaken a scoping study to evaluate options on further development of this project and results from this study are expected in August 2007. The resource estimate for Westwood identified an inferred resource of 14.1 million tonnes at an average grade of 7.3 g/t Au, indicating 3.3 million ounces of gold.

Omai Mine

The Omai open pit gold mine in Guyana was closed in September, 2005 following depletion of the reserves. The Company investigated the potential for an underground operation at the site and the results of this assessment were negative. Closure activities associated with the depleted open pit mine continue. The Company is continuing to pursue other opportunities in the region.

DEVELOPMENT PROJECTS

Capitalized expenditures under development projects in the above table totaled $14.3 million during the second quarter of 2007 compared to $5.6 million during the second quarter of 2006 ($23.6 million during the first half of 2007 compared to $7.8 million during the first half of 2006). They mainly included expenditures on the Camp Caiman, Quimsacocha, La Arena and Buckreef projects. Corporate exploration expenses are related to the generation of new prospects and evaluation of early stage exploration properties.

Camp Caiman Project

The Camp Caiman gold project is located in French Guiana, an overseas territory of France that is situated on the northeastern coast of South America between Brazil and Suriname. The project lies about 45 kilometres southeast of the capital city of Cayenne. IAMGOLD holds a 30 square kilometre mining concession for the project that is valid for a period of 25 years.

The Camp Caiman deposit contains probable mineral reserves of 12.3 million tonnes at a grade of 2.8 g/t Au, representing 1.1 million ounces of gold. This reserve base has the potential of being further enhanced by regional exploration on concessions held by the Company.

On May 18, 2007, the Company received a positive recommendation from the commission heading the public hearing process for the approval of construction and operating permit applications. In mid-June 2007, the Company received a further positive review from the government agency ("Comite Departemental de l'Environnement et des Risques Sanitaires et Technologiques") responsible for environmental health matters. On August 9, 2007, the Company received notification from the Prefecture that given the importance of the project, a formal response to the operating permit application could be delayed until November 18, 2007

Quimsacocha

The Quimsacocha project is located 30 kilometres southwest of Cuenca in southern Ecuador. IAMGOLD holds a 12,500 hectare block of mining concessions for the project. The deposit contains an indicated resource of 33 million tonnes at a grade of 3.2 g/t Au, representing 3.35 million ounces of gold. The prefeasibility study for this project has been initiated in conjunction with various other required studies and is expected in 2008. Exploration of targets outside the known resource continued in the second quarter and will be ongoing throughout 2007.

La Arena

The La Arena gold project is located near Huamachuco, Peru, 480 kilometres northwest of Lima. IAMGOLD holds a 21,971 hectare mining concession pertaining to the project. The project consists of two adjacent deposits, an epithermal gold deposit and a copper gold porphyry deposit. The combined deposits contain total measured and indicated resources of 139.7 million tonnes at a grade of 0.4 g/t Au, representing 1.997 million ounces of gold, and a copper grade of 0.35% representing 5.4 million tonnes of copper.

A prefeasibility study was completed in November 2006. This study is being reviewed internally, and a determination on how the Company will proceed is expected during the third quarter.

Buckreef

The Buckreef gold project is located south of Geita, Tanzania within the Sarama Greenstone Belt. The project covers approximately 45 kilometres of strike length of the Rwamagaza Shear Zone. Five separate deposits have been identified, and the aggregate measured and indicated resource base contains 1.0 million ounces of gold within 16.7 million tonnes at a grade of 1.9 g/t Au.

ASSETS HELD FOR SALE

An agreement was reached on February 13, 2007 with Bosai Minerals Group Co. Ltd. ("Bosai") with an effective date of December 31, 2006 whereby Bosai purchased the bauxite assets in a transaction that included the assumption of $17.7 million of third party debt by Bosai. The net proceeds from the sale of $28.5 million were received on March 21, 2007.

CORPORATE ADMINISTRATION

Corporate administration expenses in the second quarter of 2007 were $9.2 million compared to $3.7 million during the second quarter of 2006 ($16.4 million and $6.3 million during the first half of 2007 and 2006 respectively). The increase is primarily due to the acquisitions in 2006, of Gallery and Cambior which have resulted in a significant increase to corporate activities and staffing levels as the Company transitions into an operating company. Expenses in the second quarter of 2007 include $1.2 million and $0.8 million in the second quarter of 2006 ($1.8 million and $1.3 million during the first half of 2007 and 2006 respectively) of non-cash charges related to stock-based compensation granted to employees.

Income and Mining Taxes

The Company is subject to income and mining taxes in the jurisdictions where it operates. During the second quarter of 2007, income and mining taxes totaled $4.9 million which is similar to the expenses incurred during the second quarter of 2006. Income and mining taxes were $13.4 million and $6.7 million during the first half of 2007 and 2006 respectively. The increase is mainly due to the Yatela mine which became taxable on July 1, 2006 upon expiration of a tax holiday, to the acquisition of Cambior in November 2006 and GGL in March 2006 and partially offset by lower income tax at Sadiola mine primarily due to lower earnings.

Cash Flow

Operating cash flow was $14.1 million for the second quarter of 2007 compared to $24.3 million for the second quarter of 2006. Cash flow from operating activities was $30.7 million during the first half of 2007 compared to $46.1 million during the first half of 2006. Lower operating cash flow is a result of lower earnings and no dividends being received for Tarkwa and Damang in 2007.

During the second quarter of 2007, cash flow used in investing activities was $28.7 million compared to $0.4 million for the second quarter of 2006. Cash flow used in investing activities was $2.2 million during the first half of 2007 compared to cash flow from investing activities of $4.7 million during the first half of 2006. The higher cash flow used in 2007 is mainly due to increases in investments in mining and exploration activities. These investments are reduced, on a year-to-date basis, by the sale of Bauxite operations and redemption of short-term deposits.

Investments in mining assets are mainly related to purchases of equipment at Rosebel mine, underground infrastructure and development at the Doyon and Niobec divisions, and capitalized deferred stripping at Yatela. Investments in exploration and development are mainly related to the development of Camp Caiman, Quimsacocha, La Arena and Buckreef.

Cash flow used in financing activities was $2.8 million in the second quarter of 2007 compared to $22.3 million in the second quarter of 2006. Cash flow used in financing activities was $37.3 million during the first half of 2007 compared to $25.6 million during the first half of 2006. The decrease in cash flow used in financing activities during the second quarter of 2007 is attributable to lower debt repayments and no repurchase of call options in 2007.

Discretionary cash and short-term deposits increased by $3.5 million during the second quarter of 2007 and decreased by $17.6 million during the first half of 2007 (Q2 2006 - increase of $16.7 million; First half of 2006 - increase of $37.5 million). Items that affect discretionary cash and are not presented in the Company's cash flow relate to distributions received from the Company's joint ventures and working interests and are as follows:



---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
($000) $ $ $ $
---------------------------------------------------------------------------
Tarkwa cash receipts - 6,074 - 16,330
Damang cash receipts - 2,835 - 4,725
Sadiola cash receipts 4,275 12,400 8,550 16,200
Yatela cash receipts, net of repayments 16,000 9,800 16,000 19,440
---------------------------------------------------------------------------
20,275 31,109 24,550 56,695
---------------------------------------------------------------------------

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash, short-term deposit and gold bullion position totaled
$189.5 million as at June 30, 2007 with gold bullion valued at market. This
amount provides the Company with a high level of liquidity and capital
resources and will be more than sufficient to fund its known commitments.
In addition, the Company is currently under negotiations to complete a
credit facility arrangement which will be beneficial in assisting with its
growth initiatives.

WORKING CAPITAL

---------------------------------------------------------------------------
June 30, 2007 December 31, 2006
---------------------------------------------------------------------------
Working Capital ($000) 124,220 102,056
Current Ratio 1.8 1.5
---------------------------------------------------------------------------

Cash and Cash Equivalents and Short Term Deposits
---------------------------------------------------------------------------
($000) June 30, 2007 December 31, 2006
$ $
---------------------------------------------------------------------------
Discretionary cash and short term deposits 76,348 93,975
Joint venture cash 16,458 30,389
---------------------------------------------------------------------------
Total 92,806 124,364
---------------------------------------------------------------------------


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 $5.5 million and $2.4 million respectively as at June 30, 2007 and $3.9 million and $3.3 million respectively as at December 31, 2006.

Gold Bullion

At June 30, 2007, the accumulated gold bullion balance was 148,704 ounces at an average cost of $330 per ounce for a total cost of $49.0 million. The market value of the bullion was $96.7 million using the June 30, 2007 gold price of $651 per ounce (December 31, 2006 - $94.0 million).

CREDIT FACILITY

Following the acquisition of Cambior on November 8, 2006, the Company assumed a credit facility consisting of a non-revolving term loan and a revolving credit facility.

The term loan balance outstanding as at June 30, 2007 was $11.0 million which take into consideration the scheduled repayments of $3.5 million during the first and second quarter of 2007.

The outstanding $14.0 revolving credit facility was also repaid during the first quarter of 2007. As at June 30, 2007, the $30.0 million revolving portion of the credit facility was unutilized except for $10.9 million in letters of credit issued to guarantee asset retirement obligations. The Company is in the process of securing a new credit facility to replace the current facility.

GOLD SALES AND COMMITMENTS

Risk Factors

IAMGOLD is subject to various financial and operational risks that could have a significant impact on profitability and levels of operating cash flow. Financial risks are related to commodity prices, currency and access to capital markets, and are described in the MD&A of the Company's 2006 annual report.

The Company has a policy of not hedging its future gold production. As such, it is exposed to movement in gold prices.

As at June 30, 2007, the Company's remaining gold sales commitments assumed following the acquisition of Cambior were 22,311 ounces of gold to be delivered in 2007 at $350 per ounce and the estimated fair value of $6.8 million was recognized on the balance sheet as they are treated as non-hedge instruments. The change in market value during the first half of 2007 was included in the earnings statement as a non-hedge derivative loss totaling $1.0 million. On delivery of gold into the forward contracts, the related marked-to-market value is amortized into gold revenue.

As at June 30, 2007, the Mupane sales contracts, totaling 160,552 ounces of gold at a price of $404 per ounce, are accounted for as normal purchase and sales contracts 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 of 2007, 19,663 ounces of gold were delivered under these forward sales contracts (38,888 ounces during the first half of 2007).

The estimated fair value of the Company's gold forward sales, calculated using forward rates considering market prices, interest rate, gold lease rate and volatilities, was as follows:



---------------------------------------------------------------------------
June 30, December
2007 31, 2006
($000) $ $
---------------------------------------------------------------------------
Fair value of non-hedge derivatives (gold and foreign
exchange) (Cambior) 6,789 16,409
Fair value of normal sales (Mupane) 43,292 53,040
---------------------------------------------------------------------------
Estimated mark-to-market value 50,081 69,449
---------------------------------------------------------------------------
Recognized on the balance sheet:
Non-hedge derivates (gold and foreign exchange)
(Cambior) 6,789 16,409
Forward sales liability-Normal sales (Mupane) 36,755 44,785
---------------------------------------------------------------------------
43,544 61,194
---------------------------------------------------------------------------
Off-balance sheet-net fair value of forwards 6,537 8,255
---------------------------------------------------------------------------


The Company also had 25,000 ounces of gold receivable as at June 30, 2007, valued at $16.5 million related to the prior disposal of a project. The loss resulting from the change in the market price for the gold receivable during the second quarter of 2007 was $0.3 million (gain of $0.5 million for the first half of 2007).

Other Commitments

The Company's commitments to complete facilities decreased from $11.8 million as at December 31, 2006 to $7.5 million at the end of June 2007 mainly due to the Camp Caiman project.

DISCLOSURE

As of the end of the second quarter of 2007 of IAMGOLD, an evaluation was carried out under the supervision of and with the participation of IAMGOLD's management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the design and operation of disclosure controls and procedures were effective as of June 30, 2007, the end of the period covered by this report, to ensure that material information relating to IAMGOLD and its consolidated subsidiaries would be made known to them by others within those entities.

There were no changes in the Company's internal control over financial reporting that occurred during the three months ended June 30, 2007, that have materially affected, or are reasonably likely to materially affect the Company's internal control over financial reporting.

CHANGES IN CANADIAN ACCOUNTING POLICIES

FINANCIAL INSTRUMENTS, COMPREHENSIVE INCOME AND HEDGES

Effective January 1, 2007, IAMGOLD adopted the new Canadian Institute of Chartered Accountants ("CICA") accounting standards related to: Section 1530, "Comprehensive Income", Section 3855, "Financial Instruments-Recognition and Measurement", and Section 3865, "Hedges".

Section 3855 "Financial Instruments-Recognition and Measurement"

Financial assets must be classified into one of the four following categories:

- Held-to-maturity investments (measured at cost);

- Loans and receivables (measured at amortized cost);

- Held for trading assets (measured at fair value with changes in fair value recognized in earnings immediately);

- Available-for-sale assets, including investments in equity securities, held-to-maturity investments that an entity elects to designate as being available for sale and any financial asset that does not fit into any other category (measured at fair value with changes in fair value accumulated in other comprehensive income until the asset is sold).

Financial liabilities, which include long-term debt and other similar instruments, must be accounted for at amortized cost, except for those classified as held for trading, which must be measured at fair value.

Section 1530 "Comprehensive Income"

According to Section 1530, comprehensive income is defined as net earnings and other comprehensive income and represents all changes in equity during a period, from transactions and events from non-owners sources. Accumulated other comprehensive income will include the unrealized gains/losses on the translation of self-sustaining foreign operations and unrealized gains/losses on financial assets which are classified as available-for-sale.



Impact:

On January 1, 2007, these changes in accounting policies required the
following adjustments:
---------------------------------------------------------------------------
Balance Balance
December 31, January 1,
2006 Adjustments 2007
($000) $ $ $
---------------------------------------------------------------------------
Assets
Other long-term assets-Debenture
receivable 2,000 280 2,280
Other long-term assets-Marketable
securities 9,379 2,310 11,689
Other long-term assets-Gold
receivable 15,281 (42) 15,239
Other long-term assets-Embedded
derivative - 148 148

Liabilities
Future income and mining tax
liability 185,015 199 185,214

Shareholders' equity
Comprehensive income
Retained earnings 108,932 106 109,038
Cumulative translation adjustment (4,836) 4,836 -
Other comprehensive loss - (2,445) (2,445)
---------------------------------------------------------------------------


Marketable securities and debenture receivable are classified as available-for-sale assets and are measured at fair value using the last quoted price when available or a valuation technique such as the Black-Scholes pricing model. Unrealized gains or losses are reported as a separate component of other comprehensive income. When realized, they are recorded in net earnings.

Gold receivable is considered a hybrid instrument composed of a receivable and an embedded derivative that must be accounted for separately. The receivable is accounted for as an interest bearing receivable, with accrued interest charged to earnings. The embedded derivative is marked-to-market at each balance sheet date based on the change in gold price with the variation charged to earnings under "non-hedge derivative gain or loss".

Long-term debt is accounted for at amortized cost, using the effective interest method which did not have any impact on its carrying value on the adoption date.

Adjustments to future income and mining tax liability reflect the tax impact of the previous adjustments.

During the second quarter of 2007, a decrease, net of income tax, in the fair value of marketable securities and debenture totaling $2.4 million ($3.5 million for the first half of 2007) was reflected in "accumulated other comprehensive loss". An unrealized gain on translation of the net investment in self-sustaining foreign operations totaling $13.5 million for the second quarter of 2007 ($15.1 million for the first half of 2007) was classified under other comprehensive income. The decrease of the gold receivable embedded derivatives totaling $0.3 million for the second quarter of 2007 (increase of $0.5 million for the first half of 2007) was accounted for as a non-hedge derivative gain/loss in the statement of earnings.

STRIPPING COSTS

EIC-160 - "Stripping Costs incurred in the production phase of a mining operation" requires that stripping costs be expensed unless the stripping activity can be shown to represent a betterment to the mineral property which requires such costs be capitalized. Any capitalized stripping costs or any opening existing balance should be amortized over the reserves that directly benefit from the stripping activity on a units of production basis. The application of this accounting treatment began on January 1, 2007 and was applied on a prospective basis.

There are capitalized stripping costs related to Yatela mine for which a pit cutback of the main pit was approved in 2006. As a result of the pit deepening, the life of Yatela will be extended to 2010 rather than closing in 2007 as previously planned. Amortization is based on the estimated additional reserves of the pit deepening using the units-of-production method.



Reconciliation of capitalized stripping costs in 2007 is as follows:
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2007 June 30, 2007
($000) $ $
---------------------------------------------------------------------------

Beginning balance 12,286 9,459
Stripping costs capitalized 3,574 7,036
Amortization (1,339) (1,974)
---------------------------------------------------------------------------

Ending balance 14,521 14,521
---------------------------------------------------------------------------


FUTURE ACCOUNTING CHANGES

Financial instruments-disclosures and presentation:

The CICA issued new accounting standards: 3862-Financial instruments - disclosures, and 3863-Financial instruments - presentation which will be effective for IAMGOLD on January 1, 2008. The new sections replace Section 3861-Financial instruments - disclosure and presentation, and require the disclosure of additional qualitative and quantitative information that enable users to evaluate the significance of financial instruments for the entity's financial position and performance and the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the balance sheet date, and how the entity manages those risks.

Capital disclosures:

On December 1, 2006, the CICA issued the new accounting standard: 1535-Capital disclosures which will be effective for IAMGOLD on January 1, 2008. Section 1535 specifies the disclosure of information that enables users of the Company's financial statements to evaluate the entity's objectives, policies and processes for managing capital such as qualitative information about its objectives, policies and processes for managing capital, summary quantitative data about what the entity manages as capital, whether the entity has complied with any capital requirements and, if it has not complied, the consequences of non-compliance.

Inventories:

In June 2007, the CICA issued Section 3031-Inventories which replaces Section 3030 and establishes standards for the measurement and disclosure of inventories. This section applies to fiscal years beginning on or after January 1, 2008. The main features of the new section are: Measurement at the lower of cost and net realizable value; Cost of items that are not ordinarily interchangeable, and goods and services produced and segregated for specific projects, assigned by using a specific identification of their individual costs; Consistent use of either first-in first-out or weighted average cost formula to measure the cost of other inventories; Reversal of previous write-downs to net realizable value when there is a subsequent increase in the value of inventories. This new section also provides for additional disclosure. The Company is currently evaluating the effect that the adoption of Section 3031 will have on its consolidated results of operations and financial condition.

FORWARD LOOKING STATEMENTS

Certain statements in this document constitute "forward looking statements" within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934.

Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others; economic, business and political conditions, decreases in the market, the price of gold, hazards associated with mining, labour disruptions, changes in government, exchange rates, currency devaluations; inflation and other macro-economic factors. These forward looking statements speak only as of the date of this document.

The Company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

US Investors Should Note

The US Securities and Exchange Commission ("SEC") permits mining companies, in their filings with the SEC to disclose only those mineral deposits that a company can economically and legally extract or produce. The Company may use certain terms in its publications such as "resources" that are prescribed by Canadian regulatory policy and guidelines but are not provided for in the SEC guidelines on publications and filings.

As at August 13, 2007, the number of shares issued and outstanding of the Company was 293,336,522. In addition there were 19,992,000 warrants exercisable for 8,396,640 shares and 6,584,986 share options outstanding.

Please note:

This entire press release may be accessed via fax, email, IAMGOLD's website at www.iamgold.com and through Marketwire's website at www.marketwire.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.

Si vous desirez obtenir la version francaise de ce communique, veuillez consulter le http://www.iamgold.com/fr/accueil.html.

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 ("GI") 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 relating to current period production 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) 2007 2006
----------------------------------------------------
----------------------------------------------------
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net Earnings (Loss)
from Gold mining
operations
-------------------
100% Owned Mines
Rosebel (95%) 2,538 1,651 (1,064) - - -
Doyon 1,716 3,227 2,155 - - -
Sleeping Giant 1,208 1,900 (440) - - -
Mupane (100,062) (5,731) (2,441) (1,351) 871 -
OMAI Gold (1,660) (2,097) (2,259) - - -
Joint ventures:
Sadiola (38%) 3,015 4,791 10,280 9,734 10,545 4,463
Yatela (40%) 7,612 7,162 8,236 5,197 13,696 8,543
----------------------------------------------------
Subtotal Working Mines (85,633) 10,903 14,467 13,580 25,112 13,006

Working Interests:
Tarkwa (18.9%) 6,174 5,378 5,503 4,814 5,963 7,185
Damang (18.9%) 139 905 798 944 2,049 1,616
----------------------------------------------------
Subtotal Working
Interests 6,313 6,283 6,301 5,758 8,012 8,801
----------------------------------------------------
----------------------------------------------------
As per Segmented
information note
to financial
statements (79,320) 17,186 20,768 19,338 33,124 21,807
----------------------------------------------------
----------------------------------------------------



(in $000's except where noted) 2007 2006
--------------------------------------------
--------------------------------------------
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Rosebel
-------
Gold revenue 46,945 31,236 26,974 - - -
Mining costs:
Total cash costs (33,311) (24,065) (16,654) - - -
By-product credit 42 33 51 - - -
--------------------------------------------
Gold Institute cash costs (33,269) (24,032) (16,603) - - -
--------------------------------------------
Change in bullion inventory 297 (30) (3,084) - - -
Exploration expensed (735) (358) (242) - - -
Foreign exchange and interest (773) (621) (530) - - -
Other non-cash adjustments (37) (36) (22) - - -
--------------------------------------------
(1,248) (1,045) (3,878) - - -
--------------------------------------------
Total Mining Costs (34,517) (25,077) (20,481) - - -
--------------------------------------------
12,428 6,159 6,493 - - -
Depreciation and depletion (7,597) (5,407) (4,220) - - -
(Income taxes) recovery (1,999) 1,006 (3,127) - - -
Non-controlling interest (294) (107) (210) - - -
--------------------------------------------
Net Earnings (Loss) 2,538 1,651 (1,064) - - -
--------------------------------------------
--------------------------------------------
Gold production (000 oz) 71 48 40 - - -
Gold production - 95% (000 oz) 69 46 38 - - -
Total cash costs ($/oz) 466 505 415 - - -
GI cash costs ($/oz) 466 505 415 - - -
--------------------------------------------
--------------------------------------------
Doyon
-----
Gold revenue 18,717 21,562 14,267 - - -
Mining costs:
Total cash costs (18,216) (17,666) (10,568) - - -
By-product credit 670 279 162 - - -
Cash cost adjustments:
Stockpile movement (802) 1,691 4 - - -
--------------------------------------------
Gold Institute cash costs (18,348) (15,696) (10,402) - - -
Change in bullion inventory 2,572 (811) 80 - - -
Exploration expensed - 2 (886) - - -
Foreign exchange and interest (53) (158) (90) - - -
Other non-cash adjustments (384) (352) (214) - - -
--------------------------------------------
2,135 (1,319) (1,110) - - -
--------------------------------------------
Total Mining costs (16,213) (17,015) (11,512) - - -
--------------------------------------------
2,504 4,547 2,755 - - -
Depreciation and depletion (1,799) (1,232) (469) - - -
(Income and mining taxes)
recovery 1,011 (88) (131) - - -
--------------------------------------------
Net Earnings 1,716 3,227 2,155 - - -
--------------------------------------------
--------------------------------------------
Gold production (000 oz) 34 31 23 - - -
Total cash costs ($/oz) 510 564 445 - - -
GI cash costs ($/oz) 533 509 444 - - -
--------------------------------------------
--------------------------------------------


(in $000's except
where noted) 2007 2006
-------------------------------------------------
-------------------------------------------------
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Sleeping Giant
--------------
Gold revenue 10,923 11,326 4,685 - - -
Mining costs:
Total cash costs (5,820) (6,525) (3,216) - - -
By-product credit 208 213 95 - - -
Cash cost adjustments:
Stockpile movement 353 693 (132) - - -
--------------------------------------------------
Gold Institute cash
costs (5,259) (5,619) (3,253) - - -
Change in bullion
inventory 426 (120) (110) - - -
Exploration expensed (255) (171) - - - -
Foreign exchange and
interest 11 8 (47) - - -
Other non-cash
adjustments (857) (98) (24) - - -
--------------------------------------------------
(675) (381) (181) - - -
--------------------------------------------------
Total Mining costs (5,934) (6,000) (3,434) - - -
--------------------------------------------------
4,989 5,326 1,251 - - -
Depreciation and
depletion (3,536) (3,150) (1,638) - - -
(Income and mining
taxes) recovery (245) (276) (53) - - -
--------------------------------------------------
Net Earnings (Loss) 1,208 1,900 (440) - - -
--------------------------------------------------
--------------------------------------------------
Gold production (000 oz) 18 17 8 - - -
Total cash costs ($/oz) 318 371 416 - - -
GI cash costs ($/oz) 298 330 433 - - -
--------------------------------------------------
--------------------------------------------------
Mupane
------
Gold revenue 14,233 11,658 12,017 12,595 14,351 -
Mining costs:
Total cash costs (12,439) (11,462) (12,540) (9,902) (9,602) -
By-product credit 53 119 - - - -
Cash cost adjustments:
Stockpile movement 1,611 251 (207) 217 801 -
--------------------------------------------------
Gold Institute cash
costs (10,775) (11,092) (12,747) (9,685) (8,801) -
Change in bullion
inventory (1,648) (1,083) 1,333 (236) (678) -
Exploration expensed (281) (159) (128) (90) (60) -
Foreign exchange and
interest 72 70 23 (97) (110) -
Other non-cash
adjustments (731) (73) - - - -
--------------------------------------------------
(2,588) (1,245) 1,228 (423) (848) -
--------------------------------------------------
Total Mining costs (13,363) (12,337) (11,519) (10,108) (9,649) -
--------------------------------------------------
870 (679) 498 2,487 4,702 -
Depreciation and
depletion (7,207) (5,052) (4,453) (3,648) (4,243) -
Impairment Loss (93,725) - - - - -
(Income and mining
taxes) recovery - - 1,514 (190) 412 -
--------------------------------------------------
Net Earnings (Loss) (100,062) (5,731) (2,441) (1,351) 871 -
--------------------------------------------------
--------------------------------------------------
Gold production (000 oz) 24 17 24 19 22 -
Total cash costs ($/oz) 512 664 529 531 431 -
GI cash costs ($/oz) 445 650 538 519 395 -
--------------------------------------------------
--------------------------------------------------


(in $000's except
where noted) 2007 2006
--------------------------------------------------------
--------------------------------------------------------
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Sadiola (38%
proportionate
share):
-------------
Gold revenue 23,273 21,979 29,627 30,145 31,143 23,361
Mining costs:
Total cash costs (17,387) (15,253) (17,148) (14,123) (15,212) (13,442)
By-product credit 20 23 - - - -
Cash cost
adjustments:
Stockpile
movement 3,482 2,283 2,746 1,204 1,946 1,897
Gold in process 217 101 (150) 574 - -
--------------------------------------------------------
Gold Institute
cash costs (13,668) (12,846) (14,552) (12,345) (13,266) (11,545)
Change in
bullion
inventory (382) (712) 410 (264) 299 21
Exploration
expensed (52) (1) (3) (9) (53) (145)
Foreign
exchange
and interest (963) 180 1,565 161 439 (1,456)
Other non-cash
adjustments (43) (43) 536 21 24 25
--------------------------------------------------------
(1,440) (576) 2,508 (91) 709 (1,555)
--------------------------------------------------------
Total Mining
costs (15,108) (13,422) (12,044) (12,436) (12,557) (13,100)
--------------------------------------------------------
8,165 8,557 17,583 17,709 18,586 10,261
Depreciation
and depletion (1,757) (1,618) (3,223) (2,786) (3,112) (2,521)
(Income and
mining taxes)
recovery (3,393) (2,148) (4,080) (5,189) (4,929) (3,277)
--------------------------------------------------------
Net Earnings 3,015 4,791 10,280 9,734 10,545 4,463
--------------------------------------------------------
--------------------------------------------------------
Gold production
- 100% (000 oz) 89 83 131 121 136 111
Gold production
- 38% (000 oz) 34 31 50 46 52 42
Total cash
costs ($/oz) 516 485 345 307 295 318
GI cash costs ($/oz) 406 409 293 269 257 273
--------------------------------------------------------
--------------------------------------------------------
Yatela (40%
proportionate
share):
--------------
Gold revenue 21,311 23,529 20,462 20,914 25,034 19,390
Mining costs:
Total cash costs (5,172) (8,613) (10,153) (8,918) (9,487) (7,775)
By-product credit 13 24 - - - -
Cash cost
adjustments:
Stockpile
movement (1,067) 25 (152) 250 835 1,175
Gold in process 645 (1,234) 510 (1,803) 1,163 738
Deferred
stripping (1,974) - 1,799 2,408 (1,174) (939)
--------------------------------------------------------
Gold Institute
cash costs (7,555) (9,798) (7,996) (8,063) (8,663) (6,801)
Change in
bullion
inventory 293 (304) 304 - - (531)
Exploration
expensed (20) - - - (3) (8)
Foreign
exchange
and interest (561) 220 86 (205) 1,582 (358)
Other non-cash
adjustments 58 (162) 184 191 191 176
--------------------------------------------------------
(230) (246) 574 (14) 1,770 (721)
--------------------------------------------------------
Total Mining
costs (7,785) (10,044) (7,422) (8,077) (6,893) (7,522)
--------------------------------------------------------
13,526 13,485 13,040 12,837 18,141 11,868
Depreciation
and depletion (1,122) (1,114) (1,008) (3,744) (4,288) (3,584)
(Income and
mining taxes)
recovery (4,792) (5,209) (3,796) (3,896) (157) 259
--------------------------------------------------------
Net Earnings 7,612 7,162 8,236 5,197 13,696 8,543
--------------------------------------------------------
--------------------------------------------------------
Gold production
- 100% (000 oz) 83 88 85 84 100 82
Gold production
- 40% (000 oz) 33 35 34 33 40 33
Total cash costs
($/oz) 155 244 298 265 238 236
GI cash costs
($/oz) 227 180 234 239 217 207
--------------------------------------------------------
--------------------------------------------------------


(in $000's except
where noted) 2007 2006
---------------------------------------------------------
---------------------------------------------------------
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Tarkwa (18.9%
proportionate
share):
--------------
Gold revenue 21,554 21,415 20,652 20,455 20,835 20,079
Mining costs:
Total cash costs (12,433) (12,851) (12,262) (12,020) (11,555) (11,110)
Cash cost
adjustments:
Gold in process 1,827 513 756 121 280 65
---------------------------------------------------------
Gold Institute
cash costs (10,606) (12,338) (11,506) (11,899) (11,275) (11,045)
Foreign
exchange
and interest 52 (11) 60 (198) 40 (33)
---------------------------------------------------------
52 (11) 60 (198) 40 (33)
---------------------------------------------------------
Total Mining
costs (10,554) (12,349) (11,446) (12,097) (11,235) (11,078)
---------------------------------------------------------
11,000 9,066 9,206 8,358 9,600 9,001
Depreciation
and depletion (2,255) (1,904) (1,876) (1,862) (1,776) (1,984)
(Income and
mining taxes)
recovery (2,571) (1,784) (1,827) (1,682) (1,861) 168
---------------------------------------------------------
Net Earnings 6,174 5,378 5,503 4,814 5,963 7,185
---------------------------------------------------------
---------------------------------------------------------
Gold production
100% (000 oz) 170 174 179 174 176 192
Gold production
18.9% (000 oz) 32 33 34 33 33 36
Total cash
costs ($/oz) 386 390 363 366 347 306
GI cash costs
($/oz) 329 375 340 363 339 304
---------------------------------------------------------
---------------------------------------------------------
Damang (18.9%
proportionate
share):
--------------
Gold revenue 4,967 5,947 5,971 5,699 6,611 6,447
Mining costs:
Total cash
costs (4,394) (4,234) (4,407) (3,898) (3,805) (3,916)
Cash cost
adjustments:
Gold in process 57 (37) (70) (209) 115 (128)
---------------------------------------------------------
Gold Institute
cash costs (4,337) (4,271) 4,477) (4,107) (3,690) (4,044)
Exploration
expensed (135) (142) (28) (65) (101) (57)
Foreign
exchange and
interest 6 (17) 13 5 146 19
---------------------------------------------------------
(129) (159) (15) (60) 45 (38)
---------------------------------------------------------
Total Mining
costs (4,466) (4,430) (4,492) (4,167) (3,645) (4,082)
---------------------------------------------------------
501 1,517 1,479 1,532 2,966 2,365
Depreciation
and depletion (299) (291) (316) (247) (268) (278)
(Income and
mining taxes)
recovery (63) (321) (365) (341) (649) (471)
---------------------------------------------------------
Net Earnings
(Loss) 139 905 798 944 2,049 1,616
---------------------------------------------------------
---------------------------------------------------------
Gold production
100% (000 oz) 39 48 52 48 56 62
Gold production
18.9% (000 oz) 7 9 8 9 11 12
Total cash costs
($/oz) 592 462 452 425 361 334
GI cash cost ($/oz) 584 466 459 448 350 345
---------------------------------------------------------
---------------------------------------------------------


(in $000's except
where noted) 2007 2006
---------------------------------------------------------
---------------------------------------------------------
Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
TOTAL GOLD
MINING
OPERATIONS
-----------
Gold revenue 161,923 148,652 134,655 89,808 97,974 69,277
Mining costs:
Total cash
costs (109,172) (100,669) (86,948) (48,861) (49,661) (36,243)
By-product
credit 1,006 691 308 - - -
Cash cost
adjustments 4,349 4,286 5,104 2,762 3,966 2,808
----------------------------------------------------------
Gold
Institute
cash costs (103,817) (95,692) (81,536) (46,099) (45,695) (33,435)
Minings costs
OMAI (1,660) (2,097) (2,259) - - -
Change in
bullion
inventory 1,558 (3,060) (1,067) (500) (379) (510)
Exploration
Expensed (1,478) (829) (1,287) (164) (217) (210)
Foreign
exchange
and interest (2,209) (329) 1,080 (334) 2,097 (1,828)
Other
non-cash
adjustments (1,994) (764) 460 212 215 201
----------------------------------------------------------
(5,783) (7,079) (3,073) (786) 1,716 (2,347)
----------------------------------------------------------
Total Mining
costs (109,600) (102,771) (84,609) (46,885) (43,979) (35,782)
----------------------------------------------------------
52,323 45,881 50,046 42,923 53,995 33,495
Depreciation
and depletion (25,572) (19,768) (17,203) (12,287) (13,687) (8,367)
Impairment Loss (93,725) - - - - -
(Income and
mining taxes)
recovery (12,052) (8,820) (11,865) (11,298) (7,184) (3,321)
Non-controlling
interest (294) (107) (210) - - -
----------------------------------------------------------
Net Earnings
(Loss) - Gold
mining
operations (79,320) 17,185 20,768 19,338 33,124 21,807
----------------------------------------------------------
----------------------------------------------------------
Attributable
Production
(000's oz) 251 219 220 140 158 123
Weighted
average total
cash costs
per ounce ($/oz) 425 436 390 348 315 294
Weighted
average Gold
Institute
cash costs per
ounce ($/oz) 408 416 367 329 290 271
----------------------------------------------------------
----------------------------------------------------------


CONSOLIDATED BALANCE SHEETS
(Unaudited)
(United States Dollars in 000s)
---------------------------------------------------------------------------
June 30, 2007 December 31, 2006
---------------------------------------------------------------------------
$ $

ASSETS
Current Assets:
Cash and cash equivalents (note 5) 92,764 101,500
Short term deposits 42 22,864
Gold bullion (market value $96,732;
December 31, 2006 $93,981) (note 6) 49,012 49,012
Receivables and other 73,719 65,942
Inventories 65,531 61,325
Current assets held for sale (note 4) - 17,924
---------------------------------------------------------------------------
281,068 318,567

Other long-term assets 74,048 83,844
Working interests 99,683 87,086
Royalty interests 37,682 39,786
Mining assets 991,421 1,050,664
Exploration and development 219,847 200,588
Goodwill (note 7) 420,870 464,975
Long-term assets held for sale (note 4) - 33,166
---------------------------------------------------------------------------
1,843,551 1,960,109
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2,124,619 2,278,676
---------------------------------------------------------------------------
---------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities 112,733 119,741
Dividends payable - 17,570
Current portion of long-term liabilities 44,115 69,960
Current liabilities relating to assets
held for sale (note 4) - 9,240
---------------------------------------------------------------------------
156,848 216,511
---------------------------------------------------------------------------
Long-term liabilities:
Long-term debt 7,210 9,625
Future income and mining tax liability 168,318 185,015
Asset retirement obligations 43,331 39,933
Accrued benefit liability 3,962 6,321
Long-term portion of forward sales liability 19,575 28,346
Long-term liabilities relating to assets
held for sale (note 4) - 15,862
---------------------------------------------------------------------------
242,396 285,102
---------------------------------------------------------------------------
Non-controlling interest 4,113 3,712
--------------------------------------------------------------------------
Shareholders' equity:
Common shares (note 9) 1,629,473 1,625,994
Stock-based compensation 19,674 19,153
Warrants 24,393 24,403
Share purchase loans (323) (295)
Retained earnings 38,953 108,932
Accumulated other comprehensive income
(note 10) 9,092 (4,836)
---------------------------------------------------------------------------
1,721,262 1,773,351
---------------------------------------------------------------------------
2,124,619 2,278,676
---------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements.


CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(United States Dollars in 000s, except per share data)
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Revenues 167,306 71,955 313,664 116,436

Expenses:
Mining costs 113,451 29,100 211,797 49,722
Depreciation, depletion, and
amortization 28,734 12,377 52,172 19,379
---------------------------------------------------------------------------
142,185 41,477 263,969 69,102
---------------------------------------------------------------------------
25,121 30,478 49,695 47,334
Earnings from working interests 6,313 8,012 12,597 16,813
---------------------------------------------------------------------------
31,434 38,490 62,292 64,147
---------------------------------------------------------------------------
Other expenses (income):
Corporate administration 9,223 3,700 16,354 6,346
Exploration 5,465 2,425 8,718 3,714
Impairment Charge (note 3) 93,725 - 93,725 -
Foreign exchange (106) (194) 782 (20)
Non-hedge derative loss (gain)
(note 12b) (40) - 484 -
Investment income (626) (1,843) (1,484) (2,295)
Non-controlling interest 294 - 401 -
---------------------------------------------------------------------------
107,935 4,088 118,980 7,745
---------------------------------------------------------------------------
Earnings (loss) before income
and mining taxes (76,501) 34,402 (56,688) 56,402
---------------------------------------------------------------------------

Income and mining taxes (recovery):
Current taxes 9,852 4,991 17,832 8,120
Future taxes (4,983) (427) (4,435) (1,407)
---------------------------------------------------------------------------
4,869 4,564 13,397 6,713
---------------------------------------------------------------------------
Net earnings (loss) (81,370) 29,838 (70,085) 49,689
---------------------------------------------------------------------------

Weighted average number of common
Shares outstanding (000's) (note 9g)
Basic 293,042 175,693 292,920 163,848
Diluted 293,042 176,334 292,900 175,804
---------------------------------------------------------------------------
Basic and diluted net earnings
(loss) per share (0.28) 0.17 (0.24) 0.30
---------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements.


CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(Unaudited)
(United States Dollars in 000s)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Retained earnings,
beginning of period 120,323 73,872 108,932 54,021
Change in accounting policies,
related to financial
instruments (note 1) - - 106 -
---------------------------------------------------------------------------
Restated balance, beginning of period 120,323 73,872 109,038 54,021
Net earnings (loss) (81,370) 29,838 (70,085) 49,689
---------------------------------------------------------------------------
Retained earnings, end of period 38,953 103,710 38,953 103,710
---------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(United States Dollars in 000s)

---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Net earnings (loss) (81,370) 29,838 (70,085) 49,689
---------------------------------------------------------------------------
Other comprehensive income
(loss), net of tax:
Cumulative translation adjustment
Unrealized gain on translation of
the net investment in
self-sustaining foreign
operations 13,468 - 15,063 -
Change in unrealized gains
(losses) on available-for-sale
financial assets - -
Unrealized loss on
available-for-sale
financial assets-debenture
receivable (320) - (680) -
Unrealized loss on
available-for-sale
financial assets-marketable
securities (2,243) - (3,126) -
Income tax impact 153 - 280 -
---------------------------------------------------------------------------
(2,410) - (3,526) -
---------------------------------------------------------------------------
Total other comprehensive income,
net of tax (note 10) 11,058 - 11,537 -
---------------------------------------------------------------------------
Comprehensive income (loss) (70,312) 29,838 (58,548) 49,689
---------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements.


CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(United States Dollars in 000s)
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Operating activities:
Net earnings (loss) (81,370) 29,838 (70,085) 49,689
Settlement of accrued benefit
liability (2,071) - (2,071) -
Items not affecting cash:
Impairment charge (note 3) 93,725 - 93,725 -
Earnings from working interests,
net of dividends (6,313) (5,379) (12,597) (8,308)
Depreciation, depletion and
amortization 28,734 12,506 52,172 19,543
Depreciation and depletion
deferred stripping and other 1,651 - 2,436 -
Amortization of forward
sales liability (4,108) (3,677) (8,031) (3,677)
Gain on non-hedge
derivatives and other assets (5,626) - (10,339) -
Gain on sale of royalties and
repurchase of call options - (1,352) - (1,352)
Stock-based compensation 1,217 848 1,795 1,344
Unrealized foreign exchange losses 1,216 562 825 731
Accretion expenses - asset
retirement obligations, net of
disbursements 1,942 182 2,661 274
Future benefit expenses 148 - 148 -
Non-controlling interest 294 - 401 -
Future income taxes (4,983) (427) (4,435) (1,407)
Change in non-cash working capital (10,394) (8,825) (15,891) (10,767)
---------------------------------------------------------------------------
14,062 24,276 30,714 46,070
---------------------------------------------------------------------------
Investing activities:
Transaction costs, net of cash
acquired (note 2) - (1,024) - (3,170)
Mining assets (20,405) (1,872) (39,283) (2,533)
Exploration and development (8,796) (3,183) (14,909) (4,106)
Note receivable - 2,324 - 4,475
Distributions received from
working interests - 6,275 - 12,550
Short term deposits (2) (16,323) 22,822 (15,835)
Gold bullion royalties - (112) - (124)
Other assets 87 (370) 118 (426)
Proceeds from disposal of
assets (note 4) 462 - 29,098 -
Proceeds from sale of
royalty interests - 13,850 - 13,850
---------------------------------------------------------------------------
(28,654) (435) (2,154) 4,681
---------------------------------------------------------------------------
Financing activities:
Issue of common shares, net of
issue costs 770 894 2,146 9,431
Dividends paid - - (17,570) (8,870)
Proceeds from loan - - 7,500 -
Repayment of long-term debt (3,618) (19,855) (29,372) (22,830)
Repurchase of call options - (3,363) - (3,363)
---------------------------------------------------------------------------
(2,848) (22,324) (37,296) (25,632)
---------------------------------------------------------------------------
Net increase (decrease) in cash
and cash equivalents (17,440) 1,517 (8,736) 25,119
Cash and cash equivalents,
beginning of period 110,204 69,136 101,500 45,534
---------------------------------------------------------------------------
Cash and cash equivalents, end of
period 92,764 70,653 92,764 70,653
---------------------------------------------------------------------------
Supplemental cash flow
information:
Interest paid 268 1,924 1,015 2,670
Income taxes paid (received) 1,788 (5,155) 4,667 (2,026)
---------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited. All amounts are in thousands of United States Dollars except where otherwise indicated.)

For the six month period ended June 30, 2007

The interim consolidated financial statements of IAMGOLD Corporation ("IAMGOLD" or "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, 2006 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, 2006. The results of operations for the first six month period of 2007 are not necessarily indicative of the results to be expected for the full year.

1. CHANGES IN CANADIAN ACCOUNTING POLICIES

(a) Financial Instruments, Comprehensive Income And Hedges:

Effective January 1, 2007, IAMGOLD adopted the new CICA accounting standards related to: Section 1530, "Comprehensive Income", Section 3855, "Financial Instruments-Recognition and Measurement", and Section 3865, "Hedges".

Section 3855 "Financial Instruments-Recognition and Measurement"

One of the basic principles of Section 3855 is that fair value is the most relevant measure for financial instruments.

Financial assets must be classified into one of the four following categories:

- Held-to-maturity investments (measured at cost);

- Loans and receivables (measured at amortized cost);

- Held for trading assets (measured at fair value with changes in fair value recognized in earnings immediately);

- Available-for-sale assets, including investments in equity securities, held-to-maturity investments that an entity elects to designate as being available for sale and any financial asset that does not fit into any other category (measured at fair value with changes in fair value accumulated in other comprehensive income until the asset is sold).

Financial liabilities, which include long-term debt and other similar instruments, must be accounted for at amortized cost, except for those classified as held for trading, which must be measured at fair value.

Section 1530 "Comprehensive Income":

According to Section 1530, comprehensive income is defined as net earnings and other comprehensive income and represents all changes in equity during a period, from transactions and events from non-owners sources. Accumulated other comprehensive income will include unrealized gains and losses on the translation of self sustaining foreign operations and unrealized gains/losses on financial assets which are classified as available- for-sale.

Impact:

On January 1, 2007, these changes in accounting policies required the following adjustments:



---------------------------------------------------------------------------
Balance Balance
December 31, January 1,
($000) 2006 Adjustments 2007
---------------------------------------------------------------------------
$ $ $
Assets
Other long-term assets-Debenture
receivable 2,000 280 2,280
Other long-term assets-Marketable
securities 9,379 2,310 11,689
Other long-term assets-Gold receivable 15,281 (42) 15,239
Other long-term assets-Embedded
derivative - 148 148
Liabilities
Future income and mining tax liability 185,015 199 185,214
Shareholders' equity
Comprehensive income
Retained earnings 108,932 106 109,038
Cumulative translation adjustment (4,836) 4,836 -
Other comprehensive loss - (2,445) (2,445)
---------------------------------------------------------------------------


Marketable securities and debenture receivable are classified as available-for-sale assets and are measured at fair value using the last quoted price when available or a valuation technique such as the Black-Scholes pricing model. Unrealized gains or losses are reported as a separate component of other comprehensive income. When realized, they are recorded in net earnings.

Gold receivable is considered a hybrid instrument composed of a receivable and an embedded derivative that must be accounted for separately. The receivable is accounted for as an interest bearing receivable, with accrued interest charged to earnings. The embedded derivative is marked-to-market at each balance sheet date based on the change in gold price with the variation charged to earnings under "non-hedge derivative gain or loss".

Long-term debt is accounted for at amortized cost, using the effective interest method which did not have any impact on its carrying value on the adoption date.

Adjustments to future income and mining tax liability reflect the tax impact of the previous adjustments.

During the second quarter of 2007, a decrease, net of income tax, in the fair value of marketable securities and debenture totaling $2,410 (year-to-date: $3,526) was reflected in "accumulated other comprehensive loss". An unrealized gain on translation of the net investment in self-sustaining foreign operations totaling $13,468 for the second quarter of 2007 (year-to-date $15,063) was classified under other comprehensive income. The decrease of the gold receivable embedded derivatives totaling $272 during the second quarter of 2007 (year-to-date: increase of $488) was accounted for as a non-hedge derivative gain/loss in the statement of earnings.

(b) Stripping Costs:

EIC-160 - "Stripping Costs incurred in the production phase of a mining operation" requires that stripping costs be expensed unless the stripping activity can be shown to represent a betterment to the mineral property which requires such costs be capitalized. Any capitalized stripping costs or any opening existing balance should be amortized over the reserves that directly benefit from the stripping activity on a units of production basis. The application of this accounting treatment began on January 1, 2007 and was applied on a prospective basis.

There are capitalized stripping costs related to the Yatela mine for which a pit cutback of the main pit was approved in 2006. As a result of the deepening of the pit, the life of Yatela will be extended to 2010 rather than closing in 2007 as previously planned. Amortization is based on the estimated additional reserves of the pit deepening using the units-of-production method.



Reconciliation of capitalized stripping costs in 2007 is as follows:
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2007 June 30, 2007
---------------------------------------------------------------------------
$ $
Beginning balance 12,286 9,459

Stripping costs capitalized 3,574 7,036

Amortization (1,339) (1,974)
---------------------------------------------------------------------------
Ending balance 14,521 14,521
---------------------------------------------------------------------------


(c) Future Accounting Changes:

Financial instruments-disclosures and presentation:

The CICA issued new accounting standards: 3862-Financial instruments - disclosures, and 3863-Financial instruments - presentation which will be effective for IAMGOLD on January 1, 2008. The new sections replace Section 3861-Financial instruments - disclosure and presentation, and require the disclosure of additional qualitative and quantitative information that enable users to evaluate the significance of financial instruments for the entity's financial position and performance and the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the balance sheet date, and how the entity manages those risks.

Capital disclosures:

On December 1, 2006, the CICA issued the new accounting standard: 1535-Capital disclosures which will be effective for IAMGOLD on January 1, 2008. Section 1535 specifies the disclosure of information that enables users of the Company's financial statements to evaluate the entity's objectives, policies and processes for managing capital such as qualitative information about its objectives, policies and processes for managing capital, summary quantitative data about what the entity manages as capital, whether the entity has complied with any capital requirements and, if it has not complied, the consequences of non-compliance.

Inventories:

In June 2007, the CICA issued Section 3031-Inventories which replaces Section 3030 and establishes standards for the measurement and disclosure of inventories. This section applies to fiscal years beginning on or after January 1, 2008. The main features of the new section are: Measurement at the lower of cost and net realizable value; Cost of items that are not ordinarily interchangeable, and goods and services produced and segregated for specific projects; Consistent use of either first-in first-out or weighted average cost formula to measure the cost of other inventories; Reversal of previous write-downs to net realizable value when there is a subsequent increase in the value of inventories. This new section also provides for additional disclosure. The Company is currently evaluating the effect that the adoption of Section 3031 will have on its consolidated results of operations and financial condition.

2. ACQUISITIONS:

Gallery Gold Limited:

On March 22, 2006, the Company acquired all of the issued and outstanding shares of Gallery Gold Limited ("GGL"). The purchase price has been determined to be $202,329, including acquisition expenses of $2,479 and the purchase of GGL common share options for $2,402.

Cambior Inc.:

On November 8, 2006, the Company acquired all of the issued and outstanding shares of Cambior. The purchase price has been determined to be $1,104,704, including acquisition costs of $4,634. The Company has made a preliminary allocation of this price to the individual assets acquired and is in the process of determining the final allocation with the assistance of third party consultants.

Changes to Purchase Price Allocation:

The allocation of the fair values of the consideration paid for both transactions to the fair values of the identifiable assets and liabilities on the respective closing dates are set out below. The Company retained outside specialists to assist in determining the final allocations for GGL.



---------------------------------------------------------------------------
---------------------------------------------------------------------------
FAIR VALUE GGL Cambior
(Final) (Preliminary) Total
---------------------------------------------------------------------------
$ $ $
Assets acquired and liabilities
assumed:
Cash and cash equivalents 971 7,183 8,154
Mining assets 123,874 879,201 1,003,075
Exploration and development 99,775 94,774 194,549
Other assets 20,472 100,112 120,584
Net assets held for sale - 26,343 26,343
Goodwill 62,837 328,885 391,722
Current liabilities (11,186) (94,335) (105,521)
Long-term debt (16,589) (33,716) (50,305)
Forward sales liability and gold
call option (59,711) (16,205) (75,916)
Asset retirement obligations (2,791) (38,380) (41,171)
Accrued benefit liabilities - (9,829) (9,829)
Future income and mining tax
liabilities (15,323) (135,827) (151,150)
Non-controlling interest - (3,502) (3,502)
---------------------------------------------------------------------------
202,329 1,104,704 1,307,033
---------------------------------------------------------------------------

Consideration paid:
Issue of 26,221,468 common shares of
the Company 197,448 - 197,448
Issue of 116,258,765 common shares
of the Company - 1,062,605 1,062,605
Settlement of GGL common share
options 2,402 - 2,402
Issue of 2,428,873 IAMGOLD
equivalent options - 13,062 13,062
Issue of warrants equivalent to
8,400,000 IAMGOLD shares - 24,403 24,403
Transaction costs 2,479 4,634 7,113
---------------------------------------------------------------------------
202,329 1,104,704 1,307,033
---------------------------------------------------------------------------
---------------------------------------------------------------------------


3. IMPAIRMENT CHARGE:

Due to the under performance of the Mupane mine over the last year, a review of all aspects on the operation was competed during the second quarter of 2007. The long-term plan was updated based on estimated higher unit operating costs and a reduction of mineral reserves as well as estimated future realized gold prices.

In accordance with its accounting policies, the Company reviewed the carrying value of the Mupane mine based on its long-term plan, revised production costs and updated mineral reserves and determined that an impairment loss of $93,725 was necessary. This charge to earnings was recognized as a reduction in goodwill, other long-term assets, and mining assets, by $32,782, $8,038, and $52,905, respectively.

Net estimated future cash flows from the Mupane mine were calculated, on an undiscounted basis, based on best estimates of future gold production, which were established using long-term gold price. Future expected operating costs, capital expenditures and asset retirement obligations were based on the life of the mine. The fair value was calculated by discounting the estimated future net cash flows using a single interest rate, commensurate with the risk. Management's estimate of future cash flow is subject to risks and uncertainties therefore, it is reasonably possible that future changes could be required with respect to their cash flows and the overall value of the mine.

4. ASSETS HELD FOR SALE

Bauxite Operations

On February 13, 2007, the Company announced that it had concluded an agreement for the sale of its 70% equity interest in Omai Bauxite Mining Inc. ("OBMI") and its 100% equity interest in Omai Services Inc. ("OSI"). The effective date of the agreement was December 31, 2006. Assets and liabilities related to OBMI and OSI were classified as assets and liabilities held for sale and the statement of cash flows separately disclosed the cash flows attributable to discontinued operations. The fair value of OBMI and OSI was considered in the purchase equation of Cambior (note 2) and revised with the receipt of $28,451 from the purchaser on March 21, 2007.



5. CASH AND CASH EQUIVALENTS:
---------------------------------------------------------------------------
---------------------------------------------------------------------------
June 30, 2007 December 31, 2006
---------------------------------------------------------------------------
$ $
Corporate 76,306 71,111
Joint ventures 16,458 30,389
---------------------------------------------------------------------------
92,764 101,500
---------------------------------------------------------------------------

6. GOLD BULLION:
---------------------------------------------------------------------------
---------------------------------------------------------------------------
June 30, 2007 December 31, 2006
---------------------------------------------------------------------------
Ounces held (oz) 148,704 148,704
Weighted average acquisition cost ($/oz) 330 330
Acquisition cost ($) 49,012 49,012
Spot price for gold ($/oz) 651 632
Market value ($) 96,732 93,981
---------------------------------------------------------------------------
7. GOODWILL:
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Six Months Ended
June 30, 2007
---------------------------------------------------------------------------
$
Goodwill, beginning of period 464,975
Goodwil acquired-GGL (note 2) (9,568)
Goodwill acquired-Cambior (note 2) (1,755)
Impairment-GGL (note 3) (32,782)
---------------------------------------------------------------------------
Goodwill, end of period 420,870
---------------------------------------------------------------------------


8. LONG-TERM DEBT:

Following the acquisition of Cambior on November 8, 2006, the Company assumed a credit facility consisting of a non-revolving term loan and a revolving credit facility.

After scheduled repayments of $3,500 in the first and second quarter of 2007, the outstanding balance of the term loan at the end of the second quarter was $11,000.

For the revolving portion of the credit facility, the year end 2006 outstanding balance of $14,028 was fully repaid during the first quarter of 2007. As at June 30, 2007, the $30,000 revolving portion of the credit facility was unutilized except for $10,898 in letters of credit issued to guarantee asset retirement obligations.



9. 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:

---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2007 June 30, 2007
---------------------------------------------------------------------------
Number Amount Number Amount
of Shares of Shares
---------------------------------------------------------------------------
$ $
---------------------------------------------------------------------------
Issued and outstanding,
beginning 292,975,365 1,627,909 292,559,957 1,625,994
Exercise of options 143,912 1,527 510,616 3,027
Share purchase plan - - 5,613 50
Warrants exercised 3,360 37 3,360 37
Share bonus plan - - 43,091 365
---------------------------------------------------------------------------
Issued and outstanding,
end 293,122,637 1,629,473 293,122,637 1,629,473
---------------------------------------------------------------------------

(b) Share options:

The Company has a comprehensive share option plan for its full-time
employees, directors and officers and self-employed consultants.

A summary of the status of the Company's share option plan as of June 30,
2007, and changes during the first six months then ended is presented
below. All exercise prices are denominated in Canadian dollars. The
exchange rate at June 30, 2007 and December 31, 2006 were 1.0654 and
1.1654 respectively.

---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2007 June 30, 2007
---------------------------------------------------------------------------
Weighted Weighted
average average
exercise exercise
price price
Options ($C) Options ($C)
---------------------------------------------------------------------------
Outstanding, beginning 7,004,291 8.41 5,685,495 7.66
Granted - - 1,695,500 10.09
Exercised (143,912) 5.63 (510,616) 4.74
Forfeited (61,508) 10.11 (71,508) 10.07
---------------------------------------------------------------------------
Outstanding, end 6,798,871 8.46 6,798,871 8.46
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Exercisable, June 30, 2007 3,793,204 7.10
---------------------------------------------------------------------------
---------------------------------------------------------------------------


The fair value of the options granted during the first quarter of 2007 has been estimated at the date of grant using a Black-Scholes option pricing model with the following assumptions. The expected life of these options is five years and the estimated fair value will be expensed over the options' vesting period of four years.



---------------------------------------------------------------------------
2007
---------------------------------------------------------------------------
Risk free interest rate 4%
Volatility 37%
Dividend 1%
---------------------------------------------------------------------------


(c) Share purchase plan:

The existing share purchase plan was terminated on December 31, 2006, and replaced by a new share purchase plan whereby the Company will contribute 75% of the participant's contribution towards the purchase of shares on the open market. Common shares purchased under the plan are restricted until December of each year. During the first quarter of 2007, 5,613 shares were issued for $50 under the terminated plan relating to shares issuable and expensed at December 31, 2006.

(d) Share bonus plan:

The Company has a share bonus plan for employees whereby a maximum of 600,000 common shares may be awarded.



---------------------------------------------------------------------------
Three Months Ended Six Months Ended
Number of shares June 30, 2007 June 30, 2007
---------------------------------------------------------------------------
Outstanding, beginning 153,801 85,092
Granted 5,000 116,800
Issued - (43,091)
---------------------------------------------------------------------------
Outstanding, end 158,801 158,801
---------------------------------------------------------------------------

(e) Stock-based compensation:

---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Share options (b) 1,017 717 1,434 1,081
Share purchase plan (c) - 31 - 62
Share bonus plan (d) 200 100 361 201
---------------------------------------------------------------------------
Total 1,217 848 1,795 1,344
---------------------------------------------------------------------------


(f) Warrants:

On acquisition of Cambior, 20,000,000 warrants were issued, exercisable for 8,400,000 shares at a price of C$8.93 each. During the second quarter of 2007, 8,000 warrants were exercised to acquire 3,360 shares. The remaining 19,992,000 warrants expire August 12, 2008.

(g) Earnings per share:

Basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding for the year. Diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued.



Basic earnings (loss) per share computation:
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Numerator:
Net earnings (loss) (81,370) 29,838 (70,085) 49,689
---------------------------------------------------------------------------
Denominator (000's):
Average common shares outstanding 293,042 175,693 292,920 163,848
Basic earnings (loss) per share
($ per share) (0.28) 0.17 (0.24) 0.30
---------------------------------------------------------------------------
Diluted earnings (loss) per share computation:
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Numerator:
Net earnings (loss) (81,370) 29,838 (70,085) 49,689
---------------------------------------------------------------------------
Denominator (000's):
Average common shares outstanding 293,042 175,693 292,920 163,848
Dilutive effect of employee stock
options - 641 - 747
Dilutive effect of warrants - - - -
---------------------------------------------------------------------------
Total average common shares
outstanding 293,042 176,334 292,920 164,595
---------------------------------------------------------------------------
Diluted earnings (loss) per share
($ per share) (0.28) 0.17 (0.24) 0.30
---------------------------------------------------------------------------

Stock options and warrants excluded from the computation of diluted
earnings (loss) per share which could be dilutive in the future were
as follows:

---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
(000's) 2007 2006 2007 2006
---------------------------------------------------------------------------
Outstanding options 6,799 1,405 6,799 1,405
Warrants 19,992 - 19,992 -
---------------------------------------------------------------------------
26,791 1,405 26,791 1,405
---------------------------------------------------------------------------


(h) Flow-through Common Shares:

Flow-through common shares require the Company to incur an amount equivalent to the proceeds of the issue on prescribed resource expenditures in accordance with the applicable tax legislation. If the Company does not incur the committed resource expenditures, it will be required to indemnify the holders of the shares for any tax and other costs payable by them as a result of the Company not making the required resource expenditures. As at June 30, 2007, there was no remaining commitment with respect to unspent resource expenditures under flow-through common share agreements.



10. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Cumulative Unrealized Unrealized Income Accumulated
translation gain (loss) gain (loss) tax other
adjustment on on impact comprehensive
debenture marketable income (loss)
receivable securities
---------------------------------------------------------------------------
$ $ $ $ $
Opening balance (4,836) - - - (4,836)
Change in
accounting
policy for
financial
instruments
(note 1) - 280 2,310 (199) 2,391
---------------------------------------------------------------------------
Adjusted balance,
beginning of
period (4,836) 280 2,310 (199) (2,445)
Change during the
first quarter
of 2007 1,595 (360) (883) 127 479
---------------------------------------------------------------------------
Balance as at
March 31, 2007 (3,241) (80) 1,427 (72) (1,966)
Change during the
second quarter of
2007 13,468 (320) (2,243) 153 11,058
---------------------------------------------------------------------------
Balance as at
June 30, 2007 10,227 (400) (816) 81 9,092
---------------------------------------------------------------------------

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the carrying amounts and estimated fair values
of the Company's financial instruments and commodities:

---------------------------------------------------------------------------
---------------------------------------------------------------------------
June 30, 2007 December 31, 2006
---------------------------------------------------------------------------
Carrying Fair Carrying Fair
value value value Value
---------------------------------------------------------------------------
$ $ $ $
Financial Assets
Cash and cash equivalents(1) 92,764 92,764 101,500 101,500
Short-term deposits(1) 42 42 22,864 22,864
Gold bullion(2) 49,012 96,732 49,012 93,981
Receivables excluding gold
receivable(1) 49,240 49,240 49,142 49,142
Debenture receivable(3) 1,600 1,600 2,000 2,280
Marketable securities(4) 7,478 7,478 9,379 10,830
Gold receivable-contract(5) 15,864 15,961 15,125 15,120
Gold receivable-embedded derivative(5) 636 636 156 156
Restricted cash and other(1) 1,278 1,278 1,179 1,179

Financial liabilities
Accounts payable and accrued
liabilities(1) 112,733 112,733 128,981 128,981
Long-term debt (including current
portion)(6) 17,439 17,439 38,888 38,888
Fair value of gold forwards
(Note 12(a))(7) 43,544 50,081 61,194 69,449
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(1) Recorded at amortized cost. The fair value of cash and cash equivalents, short-term deposits, receivables excluding gold receivable, restricted cash and other and, accounts payable and accrued liabilities is equivalent to the carrying amount given the short maturity period.

(2) Recorded at amortized cost. The carrying value of the gold bullion represents its cost and the fair value is based on the spot price for gold at the end of the period.

(3) Recorded at fair value. The fair value of the debenture receivable is based on the last quoted market price of the related shares.

(4) Recorded at fair value. The fair value of the marketable securities was based on the last quoted market price and on the Black-Scholes pricing model for options included in the Company's portfolio.

(5) The contract is accounted for as an interest bearing receivable. The embedded derivative is marked-to-market based on the change in gold price between the inception date of the contract and the end of the period.

(6) Recorded at amortized cost. Since most of the long-term debt is variable rate debt, the fair value of the Company's long-term debt is equivalent to the carrying amount. Fair value is estimated using discounted cash flow analysis based on the Company's current borrowing rate for similar borrowing arrangements.

(7) The Company obtains a valuation from counterparty of its portfolio of gold and foreign exchange commitments. This valuation is based on forward rates considering the market price, rate of interest, gold lease rate and volatility.

12. COMMITMENTS AND CONTINGENCIES:

(a) Gold sales commitments:

On the acquisition of Cambior in November 2006, the Company assumed gold sales commitments of 56,420 ounces to be delivered in 2007 at $350 per ounce. The estimated fair value was recognized on the balance sheet and these commitments are treated as non- hedge instruments. As at June 30, 2007, the marked-to-market value of the remaining 22,311 ounces was $6,789 and the change in market value during the first six month period of 2007 was included in the earnings statement as a non-hedge derivative loss. On delivery of gold into the forward contracts, the related marked-to-market value is amortized and recorded into gold revenue.

As of June 30, 2007, the remaining outstanding forward sales contracts acquired on acquisition of GGL (Mupane) were as follows:



---------------------------------------------------------------------------
Year Forward Sales Average Forward Price
(oz) ($/oz)
---------------------------------------------------------------------------
2007 38,888 403
2008 77,776 402
2009 43,888 407
---------------------------------------------------------------------------
Total 160,552 404
---------------------------------------------------------------------------


The Mupane forward sales contracts are accounted for as normal purchase and sales contracts 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 first six month period of 2007, 38,888 ounces of gold were delivered under forward sales contracts.

The estimated fair value of the Company's gold forward sales, calculated using forward rates considering market prices, interest rate, gold lease rate and volatilities, was as follows:



---------------------------------------------------------------------------
---------------------------------------------------------------------------
June 30, December 31,
2007 2006
---------------------------------------------------------------------------
$ $
Fair value of non-hedge derivatives - Forwards
(Cambior) 6,789 16,409
Fair value of normal sales contracts (Mupane) 43,292 53,040
---------------------------------------------------------------------------
Estimated mark-to-market value 50,081 69,449
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Recognized on the balance sheet:
Non-hedge derivatives - Forwards (Cambior) 6,789 16,409
Forward sales liability - Normal sales (Mupane) 36,755 44,785
---------------------------------------------------------------------------
43,544 61,194
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Off-balance sheet - net fair value of forwards 6,537 8,255
---------------------------------------------------------------------------
---------------------------------------------------------------------------



(b) Non-hedge derivative gain (loss):
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Variation of the fair value
of the non- hedge derivative
instruments 312 - (972) -
Gain (loss)resulting from the
variation in market prices of
ounces of gold receivable (272) - 488 -
---------------------------------------------------------------------------
Non-hedge derivative gain (loss) 40 - (484) -
---------------------------------------------------------------------------


(c) Other Contractual Commitments

As at June 30, 2007, the Company had contractual commitments to complete facilities, summarized as follows:



$
--------------------------------------------------------------------------
Niobec 2,710
Caiman 4,540
Rosebel 220
--------------------------------------------------------------------------
7,470
--------------------------------------------------------------------------


13. SEGMENTED INFORMATION:

(a) As a result of the acquisitions of GGL and Cambior and the sale of the majority of the Company's gold royalties in 2006, the reportable segments have been revised. Comparative figures have been reclassified to conform to the new segments.

The Company's gold mine segment is divided into geographic segments, as follows:

Mali: Joint venture in Sadiola (38%) and Yatela (40%)

Ghana: Working interests in Tarkwa and Damang (18.9%)

Botswana: Mupane mine

Canada: Doyon division and Sleeping Giant mine

Suriname: Rosebel Mine

Guyana: Omai gold mine

The Company's segments also include non-gold activities (Niobec mine located in Canada and diamond royalty on the Diavik mine located in Canada), Exploration and development, and Corporate.



Gold mines Total

Bots- Suri- Guy- Gold
2007 Mali Ghana wana Canada name ana mines
---------------------------------------------------------------------------
---------------------------------------------------------------------------
June 30, 2007

Cash and gold
bullion 16,458 - 8,451 (43) 1,026 110 26,002
Other current
assets 30,183 - 7,217 17,635 26,510 343 81,888
Equity
investments - 99,683 - - - - 99,683
Goodwill - 59,160 - 69,289 214,851 - 343,300
Other long-term
assets 101,088 - 55,485 157,281 454,013 8,733 776,600
------------------------------------------------------------
147,729 158,843 71,153 244,162 696,400 9,186 1,327,473
------------------------------------------------------------
Current
Liabilities 30,475 - 25,105 21,568 26,390 2,606 106,144
Long-term
Liabilities 8,901 - 23,090 29,342 137,756 - 199,089
------------------------------------------------------------
39,376 - 48,195 50,910 164,146 2,606 305,233
------------------------------------------------------------

Three months
ended June 30,
2007

Revenues 44,617 - 14,287 30,518 46,987 - 136,409
Earnings from
working
interests - 6,313 - - - - 6,313
------------------------------------------------------------
44,617 6,313 14,287 30,518 46,987 - 142,722
------------------------------------------------------------
Operating
costs of mine 21,330 - 13,208 22,728 33,052 384 90,702
Depreciation,
depletion and
amortization 2,879 - 7,207 5,335 7,597 - 23,018
Other expense 1,938 - 94,028 138 1,532 1,277 98,913
Interest and
investment
expense
(income) (342) - (94) 159 (24) (1) (302)
Non-controlling
interest - - - - 294 - 294
Income
taxes(recovery) 8,184 - - (766) 1,999 - 9,417
------------------------------------------------------------
33,989 - 114,349 27,594 44,450 1,660 222,042
------------------------------------------------------------
Net earnings
(loss) 10,628 6,313(100,062) 2,924 2,537 (1,660) (79,320)
------------------------------------------------------------
------------------------------------------------------------
Capital
expenditures 5,169 12,772 (374) 4,223 5,684 - 27,474
------------------------------------------------------------
------------------------------------------------------------



Gold mines Total

Bots- Suri- Guy- Gold
2006 Mali Ghana wana Canada name ana mines
---------------------------------------------------------------------------
---------------------------------------------------------------------------
December 31,
2006
Cash and gold
bullion 30,389 - 10,177 28 545 209 41,348
Other current
assets 38,723 - 7,277 7,231 24,089 1,188 78,508
Equity
investments - 87,086 - - - - 87,086
Goodwill - 59,160 38,823 89,854 182,959 - 370,796
Other long-term
assets 90,459 - 136,309 150,718 456,749 8,741 842,976
------------------------------------------------------------
159,571 146,246 192,586 247,831 664,342 10,138 1,420,714
------------------------------------------------------------
Current
Liabilities 33,638 - 20,855 22,904 25,511 3,713 106,621
Long-term
Liabilities 10,521 - 39,508 25,803 140,412 - 216,244
------------------------------------------------------------
44,159 - 60,363 48,707 165,923 3,713 322,865
------------------------------------------------------------

Three months
ended June 30,
2006
Revenues 56,177 - 14,351 - - - 70,528
Earnings from
working
interests - 8,012 - - - - 8,012
------------------------------------------------------------
56,177 8,012 14,351 - - - 78,540
------------------------------------------------------------
Operating
costs of mine 21,416 - 9,480 - - - 30,896
Depreciation,
depletion and
amortization 7,401 - 4,243 - - - 11,644
Other expense (365) - 141 - - - (224)
Interest and
investment
expense
(income) (1,600) - 28 - - - (1,572)
Income
taxes(recovery) 5,085 - (412) - - - 4,673
------------------------------------------------------------
31,937 - 13,480 - - - 45,417
------------------------------------------------------------
Net earnings
(loss) 24,240 8,012 871 - - - 33,123
------------------------------------------------------------
------------------------------------------------------------
Capital
expenditures 1,453 4,010 - - - - 5,463
------------------------------------------------------------
------------------------------------------------------------



Explora-
Non tion and
2007 GoldMines Gold Development Corporate Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
June 30, 2007
Cash and gold
bullion 26,002 210 2,866 112,740 141,818
Other current assets 81,888 26,499 5,334 25,529 139,250
Equity investments 99,683 - - - 99,683
Goodwill 343,300 - 74,799 2,771 420,870
Other long-term
assets 776,600 306,085 221,086 19,227 1,322,998
------------------------------------------------------------
1,327,473 332,794 304,085 160,267 2,124,619
------------------------------------------------------------
Current Liabilities 106,144 10,223 5,764 34,717 156,848
Long-term
Liabilities 199,089 25,451 23,445 (5,589) 242,396
------------------------------------------------------------
305,233 35,674 29,209 29,128 399,244
------------------------------------------------------------
Three months ended
June 30, 2007
Revenue 136,409 30,897 - - 167,306
Earnings from
working interests 6,313 - - - 6,313
------------------------------------------------------------
142,722 30,897 - - 173,619
------------------------------------------------------------
Operating
costs of mine 90,702 17,826 - 13 108,541
Depreciation,
depletion and
amortization 23,018 5,715 - - 28,733
Other expense 98,913 1,330 3,262 9,950 113,455
Interest and
investment expense
(income) (302) 24 (3) (623) (904)
Non-controlling
interest 294 - - - 294
Income
taxes(recovery) 9,417 (77) (569) (3,901) 4,870
------------------------------------------------------------
222,042 24,818 2,690 5,439 254,989
------------------------------------------------------------
Net earnings (loss) (79,320) 6,079 (2,690) (5,439) (81,370)
------------------------------------------------------------
------------------------------------------------------------
Capital
expenditures 27,474 5,703 8,796 - 41,973
------------------------------------------------------------
------------------------------------------------------------



Explora-
Non tion and
2006 GoldMines Gold Development Corporate Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
December 31, 2006
Cash and gold
bullion 41,348 679 2,940 128,409 173,376
Other current assets 78,508 22,675 2,832 23,252 127,267
Equity investments 87,086 - - - 87,086
Goodwill 370,796 - 91,407 2,772 464,975
Other long-term
assets 842,976 300,808 203,196 27,902 1,374,882
Assets held for sale - 51,090 - - 51,090
------------------------------------------------------------
1,420,715 375,252 300,376 182,334 2,278,676
------------------------------------------------------------
Current Liabilities 106,622 7,358 6,514 86,122 206,616
Long-term Liabilities 216,245 23,461 30,940 2,961 273,607
Liabilities relating
to assets held for
sale - 25,102 - - 25,102
------------------------------------------------------------
322,867 55,921 37,454 89,083 505,325
------------------------------------------------------------

Three months ended
June 30, 2006
Revenue 70,528 1,262 - 165 71,955
Earnings from working
interests 8,012 - - - 8,012
------------------------------------------------------------
78,540 1,262 - 165 79,967
------------------------------------------------------------
Operating
costs of mine 30,896 - - - 30,896
Depreciation,
depletion and
amortization 11,644 696 - 37 12,377
Other expense (224) 885 2,481 2,567 5,709
Interest and
investment income (1,572) - (11) (1,832) (3,415)
Income taxes(recovery) 4,673 (332) - 223 4,564
------------------------------------------------------------
45,417 1,249 2,470 995 50,131
------------------------------------------------------------
Net earnings (loss) 33,123 13 (2,470) (830) 29,836
------------------------------------------------------------
------------------------------------------------------------
Capital expenditures 5,463 - 3,183 - 8,646
------------------------------------------------------------
------------------------------------------------------------



Gold mines Total
Gold
2007 Mali Ghana Botswana Canada Surinam Guyana mines
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Six months ended
June 30, 2007
Revenues 90,172 - 26,064 63,898 78,256 - 258,390
Earnings from
working
interests - 12,597 - - - - 12,597
----------------------------------------------------------
90,172 12,597 26,064 63,898 78,256 - 270,987
----------------------------------------------------------
Operating costs
of mine 41,781 - 25,575 45,916 57,184 331 170,787
Depreciation,
depletion and
amortization 5,613 - 12,259 9,717 13,004 - 40,593
Other expense 1,843 - 94,223 307 2,514 3,429 102,316
Interest and
investment
expense
(income) (648) - (200) 309 (27) (3) (569)
Non-controlling
interest - - - - 401 - 401
Income
taxes(recovery) 15,541 - - (402) 993 - 16,132
----------------------------------------------------------
64,130 - 131,857 55,847 74,069 3,757 329,660
----------------------------------------------------------
Net earnings
(loss) 26,042 12,597 (105,793) 8,051 4,187 (3,757) (58,673)
----------------------------------------------------------
----------------------------------------------------------
Capital
expenditures 10,170 18,448 573 10,199 10,190 - 49,580
----------------------------------------------------------
----------------------------------------------------------



Gold mines Total
2006 Mali Ghana Botswana Canada Suriname Guyana Gold
mines
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Six months ended
June 30, 2006
Revenues 98,928 - 14,351 - - - 113,279
Earnings from
working
interests - 16,813 - - - - 16,813
-----------------------------------------------------------
98,928 16,813 14,351 - - - 130,092
-----------------------------------------------------------
Operating
costs of mine 40,070 - 9,480 - - - 49,550
Depreciation,
depletion and
amortization 13,506 - 4,243 - - - 17,749
Other expense 1,695 - 141 - - - 1,836
Interest and
investment
expense
(income) (1,692) - 28 - - - (1,664)
Income
taxes(recovery) 8,104 - (412) - - - 7,692
-----------------------------------------------------------
61,683 - 13,480 - - - 75,163
-----------------------------------------------------------
Net earnings
(loss) 37,246 16,813 871 - - - 54,929
-----------------------------------------------------------
-----------------------------------------------------------
Capital
expenditures 2,113 7,075 - - - - 9,188
-----------------------------------------------------------
-----------------------------------------------------------



Exploration
Total and
2007 Gold mines Non Gold Development Corporate Total
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Six months ended
June 30, 2007
Revenues 258,390 55,274 - - 313,664
Earnings from
working interests 12,597 - - - 12,597
-----------------------------------------------------
270,987 55,274 - - 326,261
-----------------------------------------------------
Operating
costs of mine 170,787 32,957 - 16 203,760
Depreciation,
depletion and
amortization 40,593 11,579 - - 52,172
Other expense 102,316 1,508 7,252 17,549 128,625
Interest and
investment
expense
(income) (569) 43 (8) (1,475) (2,009)
Non-controlling
interest 401 - - - 401
Income taxes
(recovery) 16,132 199 (687) (2,247) 13,397
-----------------------------------------------------
329,660 46,286 6,557 13,843 396,346
-----------------------------------------------------
Net earnings (loss) (58,673) 8,988 (6,557) (13,843) (70,085)
-----------------------------------------------------
-----------------------------------------------------
Capital expenditures 49,580 8,151 14,909 - 72,640
------------------------------------------------------
------------------------------------------------------



Exploration
Total and
2006 Gold mines Non Gold Development Corporate Total
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Six months ended
June 30, 2006
Revenues 113,279 3,075 - 82 116,436
Earnings from
working interests 16,813 - - - 16,813
------------------------------------------------------
130,092 3,075 - 82 133,249
------------------------------------------------------
Operating
costs of mine 49,550 - - - 49,550
Depreciation,
depletion and
amortization 17,749 1,655 - (24) 19,380
Other expense 1,836 803 3,784 5,453 11,876
Interest and
investment income (1,664) - (11) (2,284) (3,959)
Income taxes
(recovery) 7,692 (777) - (202) 6,713
------------------------------------------------------
75,163 1,681 3,773 2,943 83,560
------------------------------------------------------
Net earnings (loss) 54,929 1,394 (3,773) (2,861) 49,689
------------------------------------------------------
------------------------------------------------------
Capital expenditures 9,188 - 4,106 - 13,294
------------------------------------------------------
------------------------------------------------------


(b) Joint ventures

The Company's share of mining asset additions in the Company's joint ventures for the second quarter of 2007 was $5,169 (Q2 2006 - $1,200) and $10,170 for the six month period ended June 30, 2007 ($1,900 for the six month period ended June 30, 2006).

The Company's share of cash in the joint ventures is not under the Company's direct control. The Company's share of joint venture cash flows was as follows:



---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------------------------------------------------------------------------
$ $ $ $
Cash flows from operations 4,528 27,243 29,339 44,397
Cash flows used in financing - (5,059) - (8,034)
Cash flows from (used in) investments (5,169) 1,113 (10,170) 2,603


14. COMPARATIVE FIGURES:

Certain 2006 comparative figures have been reclassified to the financial statement presentation adapted in 2007.

Contact Information

  • IAMGOLD Corporation
    Joseph F. Conway
    President & Chief Executive Officer
    (416) 360-4710 or North America Toll-Free: 1-888-IMG-9999
    or
    IAMGOLD Corporation
    Carol Banducci
    Chief Financial Officer
    (416) 360-4710 or North America Toll-Free: 1-888-IMG-9999
    (416) 360-4750 (FAX)
    Email: info@iamgold.com
    Website: www.iamgold.com