IAMGOLD Corporation
TSX : IMG
NYSE : IAG
ASX : IGD
BOTSWANA : IAMGOLD

IAMGOLD Corporation

May 11, 2005 17:12 ET

IAMGOLD First Quarter Financial Results




TSX Trading Symbol: IMG
AMEX Trading Symbol: IAG
Total Shares Outstanding: 146.5MM
Fully Diluted: 151.6MM
52-Week Trading Range: Cdn$5.75 - $10.77


TORONTO, ONTARIO--(May 11, 2005) -



HIGHLIGHTS:

- Net earnings for the first quarter of 2005 amounting $7.7 million is
higher by 8% compared to the first quarter of 2004.
- Attributable gold production for the quarter was to 106,403 ounces at
a cash cost, as defined by the Gold Institute, of US$273/oz.
- Operating cash flow for the quarter was US$8.5 million.
- Consolidated cash and gold bullion position at March 31, 2005 stood at
US$84.4 million (market value US$99.0 million), including
US$68.0 million (market value US$82.6 million) in cash and gold
bullion directly held by the Company and its subsidiaries.


CONSOLIDATED FINANCIAL RESULTS SUMMARY (US$000's):

-------------------------------------------------------------------------
Three Months Ended
Mar. 31, Mar. 31,
2005 2004
-------------------------------------------------------------------------
Net earnings $ 7,743 $ 7,182
Operating cash flow $ 8,533 $ 5,773
Net earnings per share - basic and diluted $ 0.05 $ 0.05
Operating cash flow per share - basic and
diluted $ 0.06 $ 0.04
Gold produced (oz) IMG share 106,403 105,657
GI cash cost (US$/oz)(i) $ 273 $ 239
Average realized gold price (US$/oz) $ 428 $ 411
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) GI cash cost per ounce is a non-GAAP measure. Please refer to the
Supplemental Information attached to the Management's Discussion and
Analysis for a reconciliation to GAAP.


ANNUAL AND SPECIAL MEETING

The annual and special meeting of the shareholders of IAMGOLD is to be
held at the TSX Conference Centre, 130 King Street West, Toronto, Ontario on
Monday, May 16, 2005 at 4:00 p.m. (EST).

CONFERENCE CALL

A conference call to review the Corporation's first quarter results will
take place on Wednesday, May 11, 2005 at 3:00 pm EST. Local call-in number:
416-640-4127 and N.A. toll-free: 1-800-814-4860. This conference call will
also be audiocast on our website (www.iamgold.com).

A replay of this conference call will be available from approximately
5:00 pm May 11-18, 2004 by dialing local: 416-640-1917, passcode: 21124155
followed by the number sign and N.A. toll-free: 1-877-289-8525, passcode:
21124155 followed by the number sign. A replay will also be available on
IAMGOLD's website.

MANAGEMENT'S DISCUSSION AND ANALYSIS

(All monetary amounts in this MD&A are expressed in US$ unless otherwise indicated)

OVERVIEW

Net earnings for the first quarter of 2005 were $7.7 million or $0.05 per
share compared to $7.2 million or $0.05 per share for the first quarter of
2004. The increase in earnings is attributable to higher gold prices, offset
by higher cash costs, and to higher royalty revenues. 2004 earnings also
included a $1.1 million gain on the sale of a loan receivable.

Operating cash flow for the first quarter of 2005 was $8.5 million or
$0.06 per share compared to $5.8 million or $0.04 per share for the first
quarter of 2004. In addition to higher gold prices and higher royalty
revenues, operating cash flow for the first quarter of 2005 was positively
impacted by improved performance by Yatela compared to the corresponding
period for 2004.



Summarized Financial Results
(in $000's except where noted)
-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
-------------------------------------------------------------------------

Net earnings $7,743 $2,897 $908 $622 $7,182
Net earnings per
share
- basic and
diluted 0.05 0.02 0.01 0.00 0.05

Operating cash
flow (deficiency) 8,533 (4,713) 18,886 (6,263) 5,773
Operating cash
flow (deficiency)
per share
- basic and
diluted 0.06 (0.03) 0.13 (0.04) 0.04

Cash and bullion
balance
(at cost) 84,361 85,436 93,017 94,900 113,190

Gold produced
(000 oz - IMG
share) 106 119 99 108 106

Weighted average
GI cash cost
($/oz - IMG
share)(i) 273 253 255 243 239
Gold spot price
($/oz)(xx) 427 434 401 393 408
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Summarized Financial Results
(in $000's except where noted)
-------------------------------------------------
2003
-------------------------------------------------
4th Qtr 3rd Qtr 2nd Qtr
-------------------------------------------------
Net earnings 6,977 6,174 2,440
Net earnings per
share
- basic and
diluted 0.04 0.04 0.02

Operating cash
flow (deficiency) 4,011 6,485 7,850
Operating cash
flow (deficiency)
per share
- basic and
diluted 0.03 0.04 0.05

Cash and bullion
balance
(at cost) 113,958 106,463 99,816

Gold produced
(000 oz - IMG
share) 108 103 103

Weighted average
GI cash cost
($/oz - IMG
share)(i) 246 221 215
Gold spot price
($/oz)(xx) 391 363 347
-------------------------------------------------
-------------------------------------------------
(i) Weighted average Gold Institute cash cost per ounce is a non-GAAP
measure. Please refer to the Supplemental Information to the
Management's Discussion and Analysis for reconciliations to GAAP.
(xx) Average gold price as per the London pm fix.


IAMGOLD Attributable Production and Costs
-------------------------------------------------------------------------
2005 2004
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
-------------------------------------------------------------------------
Production (000 oz)
Sadiola - 38% 38 47 38 44 45
Yatela - 40% 23 28 24 25 20
Tarkwa - 18.9% 35 32 24 23 26
Damang - 18.9% 10 12 13 16 15
Total production 106 119 99 108 106

Total cash cost
($/oz - IMG
share)(i) 283 266 264 268 262
GI cash cost ($/oz
- IMG share)(i) 273 253 255 243 239
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Cash costs per ounce are non-GAAP measures. Please refer to the
Supplemental Information attached to the Management's Discussion and
Analysis for a reconciliation to GAAP.


IAMGOLD's attributable share of gold production in 2005 from the above
four operating mines is expected to remain at previous estimate of 450,000
ounces, however, estimated total cash cost per ounce, as defined by the Gold
Institute, is increased from $270 to $275 for the year.



RESULTS OF OPERATIONS
-------------------------------------------------------------------------

Mining Interests

-------------------------------------------------------------------------
Three Months Ended
Mar. 31, Mar. 31,
($ 000's) 2005 2004
-------------------------------------------------------------------------
Gold sales $ 27,230 $ 26,105
Mining expense 18,536 15,558
Depreciation and depletion 4,727 4,985
-------------------------------------------------------------------------
Earnings from mining interests $ 3,967 $ 5,562
-------------------------------------------------------------------------
-------------------------------------------------------------------------


The Company records its proportionate share of assets, liabilities and
results of operations from its joint venture interests in the Sadiola and
Yatela mines.

The average gold revenue in the first quarter of 2005 at Sadiola and
Yatela was $429 per ounce compared to $414 per ounce for the same period in
2004. Average gold spot price for the respective periods were $427 per ounce
and $408 per ounce. First quarter 2004 revenue included amortization for
deferred hedge revenue and a mark-to-market adjustment on Sadiola call
options. As of December 31, 2004, all deferred hedge revenue has been fully
amortized and all call options have expired.

The Company's share of Sadiola and Yatela operating expenses were 19%
higher than the first quarter of 2004. Consolidated Gold Institute cash costs
at Sadiola and Yatela were $280 per ounce in the first quarter of 2005 versus
$240 per ounce in the same period for 2004. Costs have increased as a result
of higher costs for fuel, supplies and labour.



Sadiola Mine (IAMGOLD interest - 38%)
Summarized Results
100% Basis
-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
-------------------------------------------------------------------------
Tonnes mined
(000t) 4,600 4,770 3,050 3,650 4,070
Ore milled (000t) 1,180 1,360 1,330 1,300 1,160
Head grade (g/t) 3.6 3.8 3.5 3.8 3.9
Recovery (%) 80 77 70 74 80

Gold production -
100% (000 oz) 101 123 101 117 117
Gold sales -
100% (000 oz) 102 121 103 116 118

Gold revenue ($/oz) 429 440 410 411 418
Direct cash costs
($/oz)(xx) 295 245 248 234 210
Production taxes
($/oz)(xx) 26 25 24 23 25
Total cash costs
($/oz)(xx) 321 270 272 257 235
Stockpile
adjustments
($/oz)(xx) (33) (15) (4) (15) (15)
GI cash cost
($/oz)(xx) 288 255 268 242 220
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(xx) Cash costs per ounce are non-GAAP measures. Please refer to the
Supplemental Information attached to the Management's Discussion and
Analysis for a reconciliation to GAAP.


For the Company's mines in Mali, the fourth quarter of any given year
normally includes five to six additional operating days as compared to the
first quarter of the subsequent year. This difference should be taken into
account when quarterly comparisons of performance measures are made.

For the quarter, the tonnes of ore milled was 18% lower than the fourth
quarter of 2004 but comparable to the first quarter of 2004, the variances
being primarily a result of the difference in operating days. Recoveries on
sulphide ore have improved and averaged 76% for the quarter.

Direct cash costs, at $29.6 million, were somewhat below the
$30.1 million recorded during the fourth quarter of 2004. Per ounce cash costs
were higher, at $288, primarily due to the lower ounces produced. A pilot
plant to look at the feasibility of recovering and recycling the cyanide used
in the process leach circuit has been installed and testwork is currently
underway. Initial results look promising and indicate that significant savings
in reagent costs may be achievable with the installation of a plant scale
circuit.

Additions to capital assets at Sadiola amounted to $5.6 million for the
first quarter of 2005. $3.1 million of the amount was spent on the purchase of
mining equipment, $1.6 million for the demolition of the original construction
camp and the planned relocation of the workers to a 115 house extension of the
mine village, and the remainder was spent on a variety of smaller capital
projects. Exploration expenditures for the first quarter amounted to
$0.8 million, of which $0.3 million was spent on the deep sulphides project.

Subsequent to quarter-end, a profit distribution of $11.0 million was
paid, with IAMGOLD's share being $4.2 million. Operating cash flow for the
quarter at Sadiola was $16.0 million.

Gold production for the second quarter will be negatively impacted by 10
days of downtime on one of the two milling circuits due to a bearing failure
on a primary mill. The production lost during the downtime is expected to be
made up by the end of the year.



Yatela Mine (IAMGOLD interest - 40%)
Summarized Results
100% Basis
-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
-------------------------------------------------------------------------
Tonnes mined
(000t) 4,200 5,470 3,270 4,960 7,420
Ore crushed (000t) 810 830 640 760 640
Head grade (g/t) 2.6 3.2 3.6 3.4 3.6
Gold stacked (oz) 85 86 73 81 74

Gold production -
100% (000 oz) 58 70 59 62 51
Gold sales - 100%
(000 oz) 62 65 59 71 46

Gold revenue ($/oz) 428 438 402 395 405
Direct cash costs
($/oz)(xx) 248 286 225 283 335
Production taxes
($/oz)(xx) 29 25 25 28 22
Total cash costs
($/oz)(xx) 277 311 250 311 357
Cash cost
adjustments
($/oz)(xx) (9) (32) (11) (61) (72)
GI cash cost
($/oz)(xx) 268 279 239 250 285
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(xx) Cash costs per ounce are non-GAAP measures. Please refer to the
Supplemental Information attached to the Management's Discussion and
Analysis for a reconciliation to GAAP.


Gold production for the quarter was 17% lower than the fourth quarter of
2004 but 14% higher than that achieved during the first quarter of 2004. The
grade stacked during the quarter was 28% lower than the reserve grade of
3.6 g/t for the Yatela pit. Grades for the second quarter will be similar to
those achieved during the first quarter and access to reserve grade ore or
better should be achieved in the third quarter. The ore at the Alamoutala
satellite pit is now fully depleted and reclamation activities are commencing
at that site.

Direct cash costs for the quarter were $14.3 million, which is
significantly less than the $19.9 million recorded in the fourth quarter of
2004. This is primarily a result of lower tones mined in the first quarter.
Gold Institute cash costs of $268 per ounce were 4% lower than the fourth
quarter of 2004.

Capital expenditures at Yatela totaled $2.5 million for the first quarter
of 2005. Of this amount, $2.4 million was spent on the expansion of the leach
pads.

Operating cash flow at Yatela for the quarter was $8.8 million.
Shareholder loan repayments from Yatela are expected in the second and fourth
quarters of 2005.



Working Interests
-------------------------------------------------------------------------
Three Months Ended
Mar. 31, Mar. 31,
($ 000's) 2005 2004
-------------------------------------------------------------------------
Tarkwa $ 5,278 $ 2,187
Damang 444 1,929
-------------------------------------------------------------------------
Earnings from working interests $ 5,722 $ 4,116
-------------------------------------------------------------------------
-------------------------------------------------------------------------


The Company records on its consolidated statement of earnings, the
proportionate share of the profits from its working interests in the Tarkwa
mine and the Damang mine.

Earnings in the first quarter of 2005 improved 35% over the same period
in 2004 as a result of higher gold prices, increased production at Tarkwa due
to the new mill and a non-cash and non-recurring increase to earnings relating
to future taxes at Tarkwa and Damang of $2.1 million (IMG share) as a result
of a general reduction of effective tax rates in Ghana from 35% to 29%. This
improvement is offset by a reduction in production at Damang as the ore grade
at Damang has reduced as was expected. The amount of depreciation and
amortization included in the above earnings are $2.6 million and $1.4 million
for the first quarter of 2005 and 2004 respectively. The increase in
depreciation is mainly a result of the amortization of the new mill and mine
equipment fleet at Tarkwa.



Tarkwa Mine (IAMGOLD interest - 18.9%)
Summarized Results
100% Basis
-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
-------------------------------------------------------------------------
Tonnes mined
(000t) 21,120 18,690 20,780 18,520 16,270

Heap Leach:
-----------
Ore crushed (000t) 4,070 4,910 4,090 3,840 4,160
Head grade (g/t) 1.2 1.2 1.3 1.4 1.4
Gold stacked
(000 oz) 150 158 175 179 193
Recovery (%) 80 82 81 74 73
Gold production
(000 oz) 126 140 125 123 137

CIL:
----
Ore milled (000t) 1,160 850 - - -
Head grade (g/t) 1.8 1.74 - -
Recovery (%) 89 95 - - -
Gold production
(000 oz) 59 28 - - -

Total gold
production & sales
- 100% (000 oz) 185 168 125 123 137

Gold revenue
($/oz)(i) 428 434 401 395 407
Direct cash costs
($/oz)(xx) 223 220 274 269 244
Production taxes
($/oz)(xx) 13 13 12 12 12
Total cash costs
($/oz)(xx) 236 233 286 281 256
Gold-in-process
adjustments
($/oz)(xx) 2 3 (25) (20) (8)
GI cash cost
($/oz)(xx) 238 236 261 261 248
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(xx) Cash costs per ounce are non-GAAP measures. Please refer to the
Supplemental Information attached to the Management's Discussion and
Analysis for a reconciliation to GAAP.


First quarter gold production at Tarkwa is 10% higher than that of the
fourth quarter of 2004 due to the completion of the new CIL plant which began
production in November 2004. Stripping ratios continue to be higher than the
life of mine average, which is required to increase the availability of ore
for the mill.

Direct cash costs for the quarter were $41.3 million. Gold Institute cash
costs of $238 per ounce is comparable to the fourth quarter of 2004 and remain
somewhat elevated due to the high levels of stripping being achieved at the
site.

Capital expenditures during the first quarter 2005 were $10.2 million.
$1.6 million was spent on the mill, $4.9 million was spent on new heap leach
facilities, $1.0 million was spent on the purchase of haul trucks and the
remaining $2.5 million was spent on other smaller capital projects.

Total cash flow at Tarkwa during the quarter was $20.4 million. Cash
balances at Tarkwa as at March 31, 2005 were $81.5 million.



Damang Mine (IAMGOLD interest - 18.9%)
Summarized Results
100% Basis
-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
-------------------------------------------------------------------------
Tonnes mined
(000t) 3,120 1,910 2,750 3,630 3,980
Ore milled (000t) 1,260 1,350 1,340 1,390 1,300
Head grade (g/t) 1.4 1.7 1.8 2.1 2.0
Recovery (%) 91 91 90 90 90

Gold production
& sales - 100%
(000 oz) 54 66 69 83 78

Gold revenue
($/oz)(i) 429 432 399 395 406
Direct cash costs
($/oz)(xx) 302 218 212 200 210
Production taxes
($/oz)(xx) 13 13 12 12 12
Total cash costs
($/oz)(xx) 315 231 224 212 222
Gold-in-process
adjustments
($/oz)(xx) 30 (3) 13 (6) (5)
GI cash cost
($/oz)(xx) 345 228 237 206 217
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Gold revenue is calculated as gold sales divided by ounces of gold
sold.
(xx) Cash costs per ounce are non-GAAP measures. Please refer to the
Supplemental Information attached to the Management's Discussion and
Analysis for a reconciliation to GAAP.


Gold production at the Damang mine for the first quarter was 54,000
ounces which reflects the impact of the depletion of the higher grade ores
coming from the main Damang pit.

Direct cash costs for the quarter were $16.3 million, $2.0 million above
the $14.4 million spent during the fourth quarter. The higher costs reflect
the costs of mining at multiple satellite ore bodies. Gold Institute cash
costs were $345 per ounce and reflected the lower production levels and higher
mining costs.

Capital expenditures for the quarter were $3.3 million, which was spent
on a variety of small capital projects.

Total cash flow at Damang for the first quarter of 2004 was $1.8 million.
Cash balances at Damang as of March 31, 2005 were $36.2 million.



Royalty Interests
-------------------------------------------------------------------------
Three Months Ended
Mar. 31, Mar. 31,
($ 000's) 2005 2004
-------------------------------------------------------------------------
Gold Royalties
Revenue $ 706 $ 537
Amortization 344 331

Diamond Royalties
Revenue 1,557 990
Amortization 818 521
-------------------------------------------------------------------------
Earnings from Royalty Interests $ 1,101 $ 675
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Earnings from royalty interests increased 58% in the first quarter of
2005 compared to the prior year's quarter due to increased gold prices and
increased production at Diavik. Revenue was recorded from the following gold
royalty interests for the first quarter of 2005: the Williams mine in northern
Ontario; the Limon mine in Nicaragua; the Vueltas del Rio mine in Honduras,
the Don Mario mine in Bolivia; and the Magistral mine in Mexico.

Corporate Administration and Other

Corporate administration, excluding corporate transaction costs, were in
line with the same period in 2004. Corporate transaction costs were
$0.1 million for the first quarter of 2005 and $0.5 million for the same
period in 2004. 2005 costs represents an underaccrual of 2004 transaction
costs. 2004 costs represents costs associated with the proposed business
combination with Wheaton River Minerals.

Exploration expenditures for the first quarter of 2005 were in line with
the same period in 2004. However, this level is lower than levels that will
occur in subsequent quarters and is due to a later start in the 2005
exploration programs. Budgeted exploration expenditures for the full 2005 year
are $8.9 million versus the $7.8 million spent in 2004.

In the first quarter of 2004, earnings were augmented by the sale of a
loan for proceeds of $1.8 million, resulting in a gain of $1.1 million which
was included in investment income.

Cash Flow

Operating cash flow was $8.5 million for the first quarter of 2005
compared to $5.8 million for the same period in 2004. In respect of investing
activities, $3.4 million was invested in the Sadiola and Yatela operations
during the quarter.

The corporate cash position was reduced from $26.3 million at
December 31, 2004, to $19.7 million as at March 31, 2005, primarily from the
payment of the $0.06 per share dividend ($7.3 million) in January 2005.

Exploration

Ecuador

Quimsacocha Project

At IAMGOLD's 100% owned Quimsacocha project in southern Ecuador, two
diamond drills are presently working and a third is due to start shortly. To
the end of March a total of 4,215 metres in 20 holes had been drilled.
Following on from the excellent drill results of last year some outstanding
intersections have been reported in 2005 (see Press Releases of January 26 and
April 18). The most impressive result was from hole 168 which intersected a
28 metre zone averaging 61.9 grams per tonne (g/t) of gold, 69.5 g/t silver
and 1.8% copper.

The exploration budget for Quimsacocha is $3.9 million and work includes
21,000 metres of diamond drilling and metallurgical testing.

Argentina

A reverse circulation (RC) drill program commenced in April at Dos
Lagunas and then the drill moved to Canadon del Moro. Both targets are
epithermal gold systems in Rio Negro province. Results are awaited.

Brazil

In the first quarter, the Company continued to identify epithermal gold
drill targets in the south of the country and a diamond drill program
commenced in late April.

Senegal

Preparatory field work was carried out on the Bambadji property in
eastern Senegal prior to the commencement of a minimum 10,000 metre rotary air
blast drill program in late April.

Mali

Two exploration prospecting permits have been granted and reconnaissance
work has begun in the field.

LIQUIDITY AND CAPITAL RESOURCES

The Company maintains a strong balance sheet and has sufficient liquidity
and capital resources to fund its known commitments.

Working Capital



The Company's consolidated working capital position is set out below
(in $ millions):

-------------------------------------------------------------------------
December
March 31, 31,
2005 2004
-------------------------------------------------------------------------
Working Capital $ 106.5 102.6
Current Ratio 9.3 5.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Cash

Consolidated cash balances totaled $36.1 million at March 31, 2005
compared to $37.4 million at year-end 2004, and can be segmented as follows
(in $ millions):



-------------------------------------------------------------------------
December
March 31, 31,
2005 2004
-------------------------------------------------------------------------
Corporate cash $ 19.7 $ 11.1
Joint venture cash 16.4 26.3
-------------------------------------------------------------------------
Total $ 36.1 $ 37.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Joint venture cash represents the Company's proportionate share of cash
at the Sadiola and Yatela mines and forms part of the working capital at those
operations.

Corporate cash in the first quarter of 2005 decreased by $6.5 million
compared to a decrease of $3.3 million in the same period of 2004. Cash flows
that determined this decrease can be shown as below (in $ millions):

The above cash balances exclude the Company's proportionate share of cash
balances held at the Tarkwa and Damang mines which would equate to
$15.4 million and $6.8 million respectively as at March 31, 2005 and
$3.1 million and $5.4 million respectively as at March 31, 2004.



-------------------------------------------------------------------------
Three Months Ended
March 31, March 31,
2005 2004
-------------------------------------------------------------------------
Inflows
Royalties received, net of withholding taxes
and gold bullion receipts $ 1.9 $ 1.3
Share issuances, net of share issue costs 1.2 0.5
Interest income 0.2 0.2
Foreign exchange gain on cash balances 0.1 -
Sadiola cash receipts - 2.7
Proceeds from sale of marketable securities
and loans receivable - 1.8
Other 0.3 0.2
-------------------------------------------------------------------------
$ 3.7 $ 6.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Outflows
Dividends $ 7.3 $ 6.7
Corporate administration 1.6 1.5
Exploration and exploration administration 1.2 1.1
Investment and merger transaction costs 0.1 0.5
Foreign exchange loss on cash balances - 0.2
-------------------------------------------------------------------------
$ 10.2 $ 10.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net inflow (outflow) $ (6.5) $ (3.3)
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Gold Bullion

At March 31, 2005, the accumulated gold bullion balance is 147,146 ounces
at an average cost of $328 per ounce. The market value of the bullion was
$62.9 million using a March 31, 2005 gold price of $428 per ounce.

Some of the disclosures included in this interim report for the first
quarter of 2004 represent forward-looking statements (as defined in the US
Securities Exchange Act of 1934). Such statements are based on assumptions and
estimates related to future economic and market conditions. While management
reviews the reasonableness of such assumptions and estimates, unusual or
unanticipated events may occur which render them inaccurate. Under such
circumstances, future performances may differ materially from projections.

The Corporation's auditors have not reviewed the contents of this MD&A or
the accompanying financial statements.

As at May 11, 2005, the number of shares issued and outstanding of the
Corporation was 146.5 million.

Please note:

This entire press release may be accessed via fax, email, IAMGOLD's
website at www.iamgold.com and through CCNMatthews' website at
www.ccnmatthews.com. All material information on IAMGOLD can be found at
www.sedar.com or at www.sec.gov. If you wish to be placed on IAMGOLD's email
press release list, please contact us at info@iamgold.com.

SUPPLEMENTAL INFORMATION TO THE MANAGEMENT'S DISCUSSION AND ANALYSIS

NON-GAAP PERFORMANCE MEASURES

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



-------------------------------------------------------------------------
(in $000's except 2005 2004
where noted) --------------------------------------------------
Q1 Q4 Q3 Q2 Q1
-------------------------------------------------------------------------
Mining Interests
----------------

Mining expense:
Sadiola $ 11,519 $ 13,111 $ 10,335 $ 10,969 $ 10,362
Yatela 7,017 6,316 5,583 7,461 5,196
-------------------------------------------------------------------------
As per financial
statements $ 18,536 $ 19,427 $ 15,918 $ 18,430 $ 15,558
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Sadiola
Total cash costs per
ounce - ($/oz) $ 321 $ 270 $ 272 $ 257 $ 235
Gold Institute cash
costs per ounce -
($/oz) $ 288 $ 255 $ 268 $ 242 $ 220
Gold production - 100%
(000 oz) 101 123 101 117 117

38% proportionate
share:
Gold production (000 oz) 38 47 38 44 45
Total cash costs $ 12,260 $ 12,606 $ 10,468 $ 11,475 $ 10,449
Stockpile movement (1,273) (678) (168) (693) (652)
-------------------------------------------------------------------------
Gold Institute cash
costs $ 10,987 $ 11,928 $ 10,300 $ 10,782 $ 9,797

Change in bullion
inventory 38 (127) 16 (1) (71)
Exploration expensed 62 10 6 27 43
Foreign exchange and
interest 774 1,399 113 261 692
Other non-cash
adjustments (342) (99) (100) (100) (99)
-------------------------------------------------------------------------
532 1,183 35 187 565
-------------------------------------------------------------------------
Mining expense $ 11,519 $ 13,111 $ 10,335 $ 10,969 $ 10,362
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Yatela
Total cash costs per
ounce - ($/oz) $ 277 $ 311 $ 250 $ 311 $ 357
Gold Institute cash
costs per ounce -
($/oz) $ 268 $ 279 $ 239 $ 250 $ 285
Gold production - 100%
(000 oz) 58 70 59 62 51

(40% proportionate
share):
Gold production (000 oz) 23 28 24 25 20
Total cash costs $ 6,374 $ 8,669 $ 5,949 $ 7,696 $ 7,292
Cash cost adjustments:
Stockpile movement 429 (1,731) (695) (455) (1,173)
Deferred stripping (249) 1,253 600 (508) (54)
Gold in process (382) (415) (166) (538) (250)
-------------------------------------------------------------------------
(202) (893) (261) (1,501) (1,477)
-------------------------------------------------------------------------
Gold Institute cash
costs $ 6,172 $ 7,776 $ 5,688 $ 6,195 $ 5,815

Change in bullion
inventory 611 (612) - 1,228 (572)
Exploration expensed - (10) 5 51 -
Foreign exchange and
interest 214 (34) 37 166 131
Other non-cash adjustments 20 (804) (147) (179) (178)
-------------------------------------------------------------------------
845 (1,460) (105) 1,266 (619)
-------------------------------------------------------------------------
Mining expense $ 7,017 $ 6,316 $ 5,583 $ 7,461 $ 5,196
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Working Interests
-----------------
Earnings from working
interests:
Tarkwa $ 5,278 $ 2,744 $ 1,304 $ 1,506 $ 2,187
Damang 444 1,110 927 1,442 1,929
-------------------------------------------------------------------------
As per financial
statements $ 5,722 $ 3,854 $ 2,231 $ 2,948 $ 4,116
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Tarkwa
Total cash costs per
ounce - ($/oz) $ 236 $ 233 $ 286 $ 281 $ 256
Gold Institute cash
costs per ounce -
($/oz) $ 238 $ 236 $ 261 $ 261 $ 248
Gold production - 100%
(000 oz) 185 168 125 123 137

(18.9% proportionate
share):
Gold production (000 oz) 35 32 24 23 26
Total cash costs $ 8,253 $ 7,395 $ 6,745 $ 6,532 $ 6,659
Gold in process 76 101 (594) (455) (207)
-------------------------------------------------------------------------
Gold Institute cash
costs $ 8,329 $ 7,496 $ 6,151 $ 6,077 $ 6,452

Gold revenue $ 14,954 $ 13,780 $ 9,452 $ 9,182 $ 10,557
Gold Institute cash costs (8,329) (7,496) (6,151) (6,077) (6,452)
Interest income (expense) 129 77 76 (12) 75
Depreciation (2,201) (2,072) (1,330) (812) (759)
Income taxes 725 (1,545) (743) (775) (1,234)
-------------------------------------------------------------------------
Earnings from working
interest $ 5,278 $ 2,744 $ 1,304 $ 1,506 $ 2,187
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Damang
Total cash costs per
ounce - ($/oz) $ 315 $ 231 $ 224 $ 212 $ 222
Gold Institute cash
costs per ounce -
($/oz) $ 345 $ 228 $ 237 $ 206 $ 217
Gold production - 100%
(000 oz) 54 66 69 83 78

18.9% proportionate
share:
Gold production (000 oz) 10 12 13 16 15
Total cash costs $ 3,209 $ 2,906 $ 2,929 $ 3,308 $ 3,287
Gold in process 311 (40) 169 (89) (75)
-------------------------------------------------------------------------
Gold Institute cash
costs $ 3,520 $ 2,866 $ 3,098 $ 3,219 $ 3,212
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Gold revenue $ 4,367 $ 5,431 $ 5,205 $ 6,162 $ 6,002
Gold Institute cash
costs (3,520) (2,866) (3,098) (3,219) (3,212)
Exploration expensed (74) (69) (106) (95) (105)
Interest income (expense) 48 9 3 11 4
Depreciation (381) (466) (483) (644) (606)
Income taxes 4 (929) (594) (773) (154)
-------------------------------------------------------------------------
Earnings from working
interests $ 444 $ 1,110 $ 927 $ 1,442 $ 1,929
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Weighted Average
----------------
Cash Costs
----------

Gold Institute cash
costs, total - IMG
share $ 29,008 $ 30,066 $ 25,237 $ 26,273 $ 25,276
Total cash costs,
total - IMG share $ 30,096 $ 31,576 $ 26,091 $ 29,011 $ 27,687
Attributable production
(000 oz) 106 119 99 108 106
Gold Institute cash
costs per ounce -
($/oz) $ 273 $ 253 $ 255 $ 243 $ 239
Total cash costs per
ounce - ($/oz) $ 283 $ 266 $ 264 $ 268 $ 262
-------------------------------------------------------------------------



CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS

(unaudited)
(United States Dollars in 000's, except per share data)

For the period ended March 31, 2005
-------------------------------------------------------------------------
Three months ended
Mar. 31, Mar. 31,
2005 2004
-------------------------------------------------------------------------
Revenue:
Gold sales $ 27,230 $ 26,105
Royalties 2,263 1,527
-------------------------------------------------------------------------
29,493 27,632
Expenses:
Mining costs, excluding depreciation
and depletion 18,536 15,558
Depreciation and depletion 4,727 4,985
Amortization of royalty interests 1,162 852
-------------------------------------------------------------------------
24,425 21,395
-------------------------------------------------------------------------
5,068 6,237
Earnings from working interests 5,722 4,116
-------------------------------------------------------------------------
10,790 10,353
-------------------------------------------------------------------------
Other expenses (income):
Corporate administration 1,815 1,832
Corporate transaction costs 139 496
Exploration 1,157 1,068
Foreign exchange (156) (43)
Investment income (175) (1,324)
-------------------------------------------------------------------------
2,780 2,029
-------------------------------------------------------------------------
Earnings before income taxes 8,010 8,324
Income taxes (recovery):
Current 936 1,386
Future (669) (244)
-------------------------------------------------------------------------
267 1,142
-------------------------------------------------------------------------
Net earnings 7,743 7,182
Retained earnings, beginning of period 42,397 38,064
-------------------------------------------------------------------------
Retained earnings, end of period $ 50,140 $ 45,246
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Number of common shares
Average outstanding during period 145,835,000 145,481,000
Outstanding at end of period 146,116,000 145,536,000

Net earnings per share - basic and diluted $ 0.05 $ 0.05
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to the consolidated financial statements.



CONSOLIDATED BALANCE SHEET

(unaudited)
(United States Dollars in 000's, except per share data)

As at March 31, 2005
-------------------------------------------------------------------------
As at As at
Mar. 31, Dec. 31,
2005 2004
-------------------------------------------------------------------------
ASSETS

Current assets:
Cash and cash equivalents (note 1) $ 36,093 $ 37,380
Gold bullion
(market value $62,905; Dec. 31, 2004 -
$63,880) (note 2) 48,268 48,056
Accounts receivable and other 24,751 27,330
Inventories 10,312 11,605
-------------------------------------------------------------------------
119,424 124,371
Marketable securities 1,285 1,285
Long-term inventory 17,726 16,883
Long-term receivables 6,933 6,861
Working interests 98,198 92,476
Royalty interests 56,057 57,219
Mining interests 71,760 72,825
Other assets 1,184 1,196
Goodwill 74,886 74,886
-------------------------------------------------------------------------
$ 447,453 $ 448,002
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable & accrued liabilities $ 12,929 $ 21,809

Long-term liabilities:
Non-recourse loans payable (note 3) 10,537 10,437
Future income tax liability 17,688 18,464
Asset retirement obligations 5,472 5,549
-------------------------------------------------------------------------
46,626 56,259
-------------------------------------------------------------------------
Shareholders' equity:
Common shares (Issued: 146,116,000 shares)
(note 4) 345,503 343,957
Stock-based compensation (note 4(b)) 5,469 5,675
Share purchase loans (285) (286)
Retained earnings 50,140 42,397
-------------------------------------------------------------------------
400,827 391,743
-------------------------------------------------------------------------
$ 447,453 $ 448,002
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to the consolidated financial statements.



CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)
(United States Dollars in 000's, except per share data)

For the period ended March 31, 2005
-------------------------------------------------------------------------
Three months ended
Mar. 31, Mar. 31,
2005 2004
-------------------------------------------------------------------------
Operating activities:
Net earnings $ 7,743 $ 7,182
Items not affecting cash:
Earnings from working interests,
net of dividends (5,722) (4,116)
Depreciation, depletion and amortization 5,905 5,853
Deferred revenue - (414)
Future income taxes (669) (244)
Stock-based compensation 189 320
Gain on sale of marketable securities and
long-term receivables - (1,121)
Unrealized foreign exchange gains (107) (221)
Change in non-cash current working capital 2,010 225
Change in non-cash long-term working capital (816) (1,691)
-------------------------------------------------------------------------
8,533 5,773
-------------------------------------------------------------------------
Financing activities:
Issue of common shares, net of issue costs 1,166 537
Dividends paid (7,276) (6,725)
Repayments of non-recourse loans (4) (3)
-------------------------------------------------------------------------
(6,114) (6,191)
-------------------------------------------------------------------------
Investing activities:
Mining interests (3,418) (2,120)
Note receivable (72) (48)
Gold bullion royalties (212) (162)
Proceeds from disposition of marketable
securities and long-term receivables - 1,833
Other assets (4) (15)
-------------------------------------------------------------------------
(3,706) (512)
-------------------------------------------------------------------------
Decrease in cash and cash equivalents (1,287) (930)
Cash and cash equivalents, beginning of period 37,380 66,675
-------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 36,093 $ 65,745
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Supplemental cash flow information:
Interest paid $ - $ -
Income taxes 936 1,386
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to the consolidated financial statements.



NOTES TO CONSOLIDATED STATEMENTS
(unaudited)
(Tabular amounts in thousands of United States Dollars except
per share data)

For the period ended March 31, 2005

The interim consolidated financial statements of IAMGOLD Corporation
("the Company") have been prepared by management in accordance with
accounting principles generally accepted in Canada. 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, 2004 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,
2004. The results of operations for the three-month period are not
necessarily indicative of the results to be expected for the full year.

1. CASH AND CASH EQUIVALENTS:
-------------------------------------------------------------------------

Mar. 31, Dec. 31,
2005 2004
---------------------------------------------------------------------
Corporate $ 19,743 $ 26,260
Joint ventures 16,350 11,120
---------------------------------------------------------------------
$ 36,093 $ 37,380
---------------------------------------------------------------------
---------------------------------------------------------------------

2. GOLD BULLION:
-------------------------------------------------------------------------

As at March 31, 2005, the Company held 147,146 ounces of gold bullion
at an average cost of $328 per ounce. The market value of this gold
bullion, based on the market close price of $428 per ounce was
$62,905,000.

3. NON-RECOURSE LOANS PAYABLE:
-------------------------------------------------------------------------

Mar. 31, Dec. 31,
2005 2004
---------------------------------------------------------------------
Yatela loans $ 10,537 $ 10,437
Note receivable from the Government of Mali,
included in long-term receivables 6,683 6,611
---------------------------------------------------------------------
Net Yatela obligation $ 3,854 $ 3,826
---------------------------------------------------------------------
---------------------------------------------------------------------

4. SHARE CAPITAL:
-------------------------------------------------------------------------

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:

---------------------------------------------------------------------
Number of
shares Amount
---------------------------------------------------------------------
Issued and outstanding, December 31, 2004 145,761,646 $ 343,957
Exercise of options 347,066 1,493
Share bonus issued 7,390 53
---------------------------------------------------------------------
Issued and outstanding, March 31, 2005 146,116,102 $ 345,503
---------------------------------------------------------------------
---------------------------------------------------------------------

(a) Share Option Plan:

The Company has a comprehensive share option plan for its
full-time employees, directors and officers and self-employed
consultants. The options vest over three years and expire no
longer than 10 years from the date of grant.

A summary of the status of the Company's share option plan as of
March 31, 2005 and changes during the three months then ended is
presented below. All exercise prices are denominated in Canadian
dollars.

-----------------------------------------------------------------
Weighted
Average
Exercise
Options Price
-----------------------------------------------------------------
Outstanding, beginning of period 5,691,899 $ 5.78
Granted 100,000 8.49
Exercised (347,066) 4.14
Forfeited (24,999) 8.46
-----------------------------------------------------------------
Outstanding, March 31, 2005 5,419,834 $ 5.92
-----------------------------------------------------------------
-----------------------------------------------------------------
Options exercisable, March 31, 2005 4,370,668 $ 5.34
-----------------------------------------------------------------
-----------------------------------------------------------------

(b) Stock-based compensation:

The Company accounts for all stock-based compensation granted on
or after January 1, 2002, using the fair value based method.

The fair value of the options granted subsequent to January 1,
2002 has been estimated at the date of grant using a
Black-Scholes option pricing model with the following
assumptions: risk-free interest rate of 5%, dividend yield of 1%,
volatility factor of the expected market price of the Company's
common stock of 37%; and a weighted average expected life of
these options of 4 or 8 years. The estimated fair value of the
options is expensed over the options' vesting period of 3 years.

For the three months ended March 31, 2005, $154,000 was recorded
as compensation expense relating to the following options:

-----------------------------------------------------------------
Weighted Total
Average Weighted
Exercise Average March 31,
Year of Grant/ No. of (Cdn$) Fair 2005
Modification Options Price Value Expense
-----------------------------------------------------------------
2002 212,333 $ 7.42 $ 2.44 $ (47)
2003 510,002 7.60 1.42 34
2004 686,667 9.02 2.10 160
2005 100,000 8.49 2.09 7
-----------------------------------------------------------------
1,509,002 $ 8.07 $ 1.96 $ 154
-----------------------------------------------------------------
-----------------------------------------------------------------

The Company awarded 22,173 restricted common shares to certain
executives of the Company under the Company's share bonus plan in
2004. These restricted shares have a value of Cdn$200,000 and
will be issued and expensed over their three-year vesting period.
For the three months ended March 31, 2005, $19,000 was recorded
as compensation expense relating to the restricted share awards.
The Company also awarded 2,500 shares to non-executive board
members under the Company's share bonus plan in 2005. For the
three months ended March 31, 2005, $15,000 was recorded as
compensation expense related to the share bonuses to directors.

5. SEGMENTED INFORMATION:
-------------------------------------------------------------------------

(a) The Company's assets, liabilities, revenue and expenses, and cash
flows allocated to the appropriate reporting segments identified
by the Company are as follows:

-----------------------------------------------------------------
Joint Venture
and Working
March 31, 2005 Interests Royalties Corporate Total
-----------------------------------------------------------------
Cash and gold bullion $ 16,350 $ 2,156 $ 65,855 $ 84,361
Other current assets 33,757 783 523 35,063
Long-term assets 96,169 71,783 2,719 170,671
Long-term assets
related to working
interests 157,358 - - 157,358
-----------------------------------------------------------------
$ 303,634 $ 74,722 $ 69,097 $ 447,453
-----------------------------------------------------------------
-----------------------------------------------------------------
Current liabilities 9,806 - 3,123 12,929
Long-term liabilities 17,797 21,955 (6,055) 33,697
-----------------------------------------------------------------
$ 27,603 $ 21,955 $ (2,932) $ 46,626
-----------------------------------------------------------------
-----------------------------------------------------------------
Revenues $ 27,230 $ 2,263 $ - $ 29,493
Earnings from working
interests 5,722 - - 5,722
Operating costs of mine 17,548 - - 17,548
Depreciation, depletion
and amortization 4,727 1,162 16 5,905
Exploration - - 1,157 1,157
Other 942 (144) 1,906 2,704
Interest and investment
expense (income), net 46 - (155) (109)
Income taxes 750 (667) 184 267
-----------------------------------------------------------------
Net earnings (loss) $ 8,939 $ 1,912 $ (3,108) $ 7,743
-----------------------------------------------------------------
-----------------------------------------------------------------

(b) The Company's share of joint venture cash flows for the three
months ended March 31, 2005 is as follows:

-----------------------------------------------------------------
Mar. 31, 2005
-----------------------------------------------------------------
Cash flows from (used in) operations $ 8,724
Cash flows from (used in) financing (4)
Cash flows from (used in) investments (3,490)
-----------------------------------------------------------------
-----------------------------------------------------------------

6. CONTINGENCIES AND COMMITMENTS:
-------------------------------------------------------------------------

(a) In December 2003, the Department of Taxation in Mali performed an
audit of the mining operations at the Yatela and Sadiola mines in
Mali for the years 2000, 2001 and 2002. The audit report claimed
taxes and penalties payable of approximately $15.6 million of
which the Company's share is $5.9 million. In 2004, Sadiola paid
approximately $5.2 million, of which the Company's share is
$2.0 million, as a deposit towards the assessment. Sadiola and
Yatela management have reviewed the claims with legal and tax
advisors and are of the opinion that all taxes were properly paid
and that the audit report is without merit. As of December 2004,
the Department of Taxation has withdrawn or abandoned significant
portions of the audit claims. The Company continues to work with
the other partners in the Yatela and Sadiola mines to negotiate a
resolution of the remaining audit claims and to achieve greater
certainty regarding tax and customs matters going forward. The
mines may also elect to commence arbitration to enforce their
rights under the original Convention Agreements with the
Government of Mali.

Contact Information

  • Joseph F. Conway
    President & Chief Executive Officer
    Grant A. Edey
    Chief Financial Officer
    Tel: (416) 360-4710
    North America Toll-Free: 1 (888) IMG-9999
    Fax: (416) 360-4750