IAMGOLD Reports Third Quarter 2024 Results
NEWS RELEASE
TSX: IMG NYSE: IAG
IAMGOLD REPORTS THIRD QUARTER 2024 RESULTS
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario, November 7, 2024 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the “Company”) today reported its financial and operating results for the third quarter ended September 30, 2024.
"We are proud of what IAMGOLD has achieved this year, with another strong quarter of safe, stable production and cash flow growth," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "This is a company that is rapidly moving closer to the goal of becoming a leading, modern Canadian gold producer with a strong balance sheet and assets that are poised to generate significant value for our stakeholders and investors."
"IAMGOLD finished the third quarter with year-to-date production of 490,000 gold ounces, inclusive of Côté, which puts the company well on track to meet its combined annual production guidance of 625,000 to 715,000 ounces. This result has been driven by the strong year to date performance at Essakane, building of momentum at Westwood, and the ramp-up progress at Côté Gold. Importantly, our teams have succeeded while continuing our strong health and safety record, ensuring that the safety of our people and communities is a defining priority in all that we do. Financially, IAMGOLD’s balance sheet and cash flow outlook continues to improve. In the third quarter the company made important first steps to reduce the balance of the gold prepayment with the delivery of 37,500 ounces into the legacy gold prepayment arrangement. Our full intention is to close out the arrangement by June 2025, increasing the exposure and flexibility of the company at an opportune time in the market."
"The Côté Gold Mine achieved multiple milestones in the third quarter, including reaching commercial production on August 1, 2024, and the completion of an important shutdown in September that allowed for the deployment of key operating improvements that had a near-immediate measurable and meaningful positive impact on operations. As a result of these efforts, we remain confident in our goal for Côté Gold to continue to ramp-up and achieve 90% throughput exiting this year. Further, on November 30th we plan to complete the repurchase of the 9.7% interest held by our respected joint venture partner, Sumitomo, to return to a 70% interest in the project.”
“Looking ahead, these achievements will position Côté Gold for a significant 2025 as throughput rates ramp-up to steady state. IAMGOLD will continue to pursue improvements in mining and processing activities, and our teams are examining the potential options to bring into a mine plan the full resource base estimate of the Côté and Gosselin zones – which combine for over 16.5 million ounces of measured and indicated and 4.2 million ounces of inferred resources. Côté Gold is a unique asset that we believe will become one of Canada's largest gold mines and a model for modern mining done right in Canada for years to come."
HIGHLIGHTS:
Operating and Financial
| ounces in the third quarter and | |
| Essakane |
•
Gold.
- Production guidance for 2024 is reaffirmed, with Essakane and Westwood attributable production expected to be at the top end of the previously raised guided range of 495,000 to 540,000 ounces, and Côté Gold attributable production expected to be at the lower end of the guidance range of 130,000 to 175,000 ounces on a 60.3% basis (220,000 to 290,000 ounces at 100%) as improvements to mill availability are made during the ramp-up of operations.
- Côté Gold reached commercial production on August 1, 2024, and achieved positive mine-site free cash flow in the quarter. The ramp-up of the operation continued to progress and remains on track to exit the year at 90% of the design throughput rate of 36,000 tonnes per day (“tpd”). Record daily throughput of 42,096 tpd was achieved
following the scheduled shutdown in September, during which key optimizations and improvements were made to improve the availability and performance of the processing plant.
- The cash cost1 guidance range, excluding Côté Gold, is unchanged and full year costs are expected to be at the low end of the previously lowered range of $1,175 to $1,275 per ounce sold and the all-in-sustaining-cost1 (“AISC”) guidance range is unchanged and full year costs are expected to be at the bottom end of the range of $1,700 to $1,825 per ounce sold.
- For Côté Gold, the company expects cash costs and AISC at the end of the year at the top end of the guidance range of $700 to $800 per ounce sold and $1,100 to $1,200 per ounce sold, respectively. The costs may exceed the top range depending on timing and one time cost of initiatives and improvements implemented to achieve the ramp-up target.
- Revenues were $438.9 million from sales of 184,000 ounces at an average realized gold price1 of $2,391 per ounce and $1,163.1 million YTD from sales of 514,000 ounces at an average realized gold price of $2,260 per ounce.
- Essakane and Westwood cost of sales per ounce sold was $1,213 ($1,119 YTD), cash cost1 per ounce sold was $1,208 ($1,115 YTD) and AISC per ounce sold was $1,789 ($1,626 YTD).
- Côté Gold cost of sales and cash cost1 per ounce sold, net of capitalized operating costs during the precommercial production period, was $1,033 ($984 YTD) and $1,030 ($982 YTD) per ounce sold, respectively.
- Net earnings and adjusted net earnings per share attributable to equity holders1 of $1.04 and $0.18 for the third quarter, respectively; YTD net earnings and adjusted net earnings per share attributable to equity holders1 of $1.39 and $0.45, respectively. The third quarter and YTD net earnings were adjusted for a $462.3 million gain on the reversal of the previously recorded impairment at Westwood.
- Net cash from operating activities was $146.2 million for the third quarter and $383.4 million YTD. Net cash from operating activities, before movements in working capital and non-current ore stockpiles1, was $161.2 million for the third quarter and $473.2 million YTD.
- Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 was $719.6 million during the third quarter ($1,063.5 million YTD) and adjusted EBITDA1 was $221.7 million during the third quarter ($565.2 million YTD). The third quarter and YTD EBITDA was adjusted for a $462.3 million gain on the reversal of the previously recorded impairment at Westwood.
| • Mine-site free cash flow1, excluding Côté Gold, was $97.4 million for the third quarter and $283.6 million YTD. | |
| • | The mine-site free cash flow from Côté Gold was $23.3 million during the third quarter. |
| The Company has available liquidity1 of $959.3 million, mainly comprised of cash and cash equivalents of |
$553.4 million and the available balance of the revolving credit facility (“Credit Facility”) of $404.9 million as at September 30, 2024.
- In health and safety, for the quarter ended September 30, 2024, the Company reported a TRIFR (total recordable injuries frequency rate) of 0.46, an improved trend since last year.
Corporate
- On July 9, 2024, the Company finalized an insurance claim of $27.3 million relating to the property and business interruption loss arising from the October 30, 2020, seismic event in the Westwood mine. The proceeds were received during the third quarter 2024.
- On September 30, 2024, the Company provided Sumitomo Metal Mining Co. Ltd. (“Sumitomo” or “SMM”) with the required 60 days formal irrevocable notice to repurchase the 9.7% interest of the Côté Gold that was transferred to Sumitomo as part of the JV funding and Amending Agreement entered into on December 19, 2022. This transaction is expected to close on November 30, 2024, and will return IAMGOLD to its full 70% interest in Côté Gold. The repurchase price of approximately $377 million will be funded using the proceeds from the $300 million equity financing completed during the second quarter 2024 and with available liquidity.
- During the quarter, the Company delivered 37,500 ounces into the 2022 Gold prepay arrangements. Subsequent to quarter end, the Company delivered its October obligations of 12,500 ounces into the arrangement, reducing the outstanding balance to 100,000 ounces.
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- The Company intends to renew its base shelf prospectus, following the expiry of the prior base shelf in October 2024. The renewal is consistent with past practice to provide financial flexibility. The new base shelf prospectus will be filed after market close on November 7, 2024. The Company has no present intention to offer securities pursuant to the new base shelf prospectus. The notice set out in this paragraph does not constitute an offer to sell or a solicitation of an offer to buy any securities.
QUARTERLY REVIEW
For more details and the Company's overall outlook for 2024, see “Outlook”, and for individual mine performance, see “Quarterly Updates”. The following table summarizes certain operating and financial results for the three months ended September 30, 2024 (Q3 2024) and September 30, 2023 (Q3 2023) and the nine months ended September 30, (or YTD) 2024 and 2023 and certain measures of the Company's financial ("discontinued operations") position as at December 31, 2023, and September 30, 2023.
| Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |
|---|---|---|---|---|
| Key Operating Statistics ($ millions from continuing operations) Gold production – attributable (000s oz) - Essakane - Westwood Subtotal - Côté Gold (60.3%) Total gold production – attributable (000s oz) Gold sales – attributable (000s oz) - Essakane - Westwood Subtotal - Côté Gold (60.3%) Total gold sales – attributable (000s oz) Cost of sales1 ($/oz sold) – attributable - Essakane - Westwood Subtotal - Côté Gold Total cost of sales1 ($/oz sold) – attributable Cash costs2 ($/oz sold) – attributable - Essakane - Westwood Subtotal - Côté Gold Total cash costs2 ($/oz sold) – attributable AISC2 ($/oz sold) – attributable - Essakane - Westwood Subtotal - Côté Gold4 Total AISC2 ($/oz sold) – attributable Average realized gold price2,3($/oz) | 84 25 | 264 65 | ||
| 100 | 329 | |||
| 32 | 99 | |||
| 132 | 109 — | 428 | 329 — | |
| 41 | 62 | |||
| 173 | 109 84 22 | 490 | 329 265 61 | |
| 101 | 325 | |||
| 29 | 97 | |||
| 130 | 106 — | 422 | 326 — | |
| 41 | 55 | |||
| 171 | 106 | 477 | 326 | |
| $ 1,226 | $ 1,417 | $ 1,099 | $ 1,249 | |
| 1,171 | 1,506 | 1,185 | 1,674 | |
| $ 1,213 | $ 1,436 | $ 1,119 | $ 1,329 | |
| 1,033 | — | 984 | — | |
| $ 1,170 | $ 1,436 | $ 1,103 | $ 1,329 | |
| $ 1,223 | $ 1,372 | $ 1,097 | $ 1,201 1,667 | |
| 1,157 | 1,506 | 1,174 | ||
| $ 1,208 | $ 1,400 | $ 1,115 | $ 1,288 — | |
| 1,030 | — | 982 | ||
| $ 1,165 | $ 1,400 | $ 1,099 | $ 1,288 $ 1,510 2,486 | |
| $ 1,730 | $ 1,798 | $ 1,498 | ||
| 1,617 | 2,138 | 1,708 | ||
| $ 1,789 | $ 1,975 | $ 1,626 | $ 1,803 $ — | |
| $ 1,602 | $ — | $ 1,602 | ||
| $ 1,756 | $ 1,975 | $ 1,625 | $ 1,803 $ 1,934 | |
| $ 2,391 | $ 1,937 | $ 2,260 |
1. Throughout this news release cost of sales, excluding depreciation, is disclosed in the segment note in the consolidated interim financial statements.
2. Refer to the “Non-GAAP Financial Measures” disclosure at the end of this news release for a description and calculation of these measures.
3. The average realized gold price in the third quarter 2024, excluding the impact of the 2022 Prepay Arrangement (as defined below), was $2,498 per ounce and $2,324 per ounce YTD 2024.
4. All-in sustaining cost for Côté Gold represents the two-month period following achievement of commercial production.
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| Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |
|---|---|---|---|---|
| Financial Results ($ millions from continuing operations) Revenues Gross profit EBITDA1 | $ 689.5 $ 74.3 | |||
| $ 438.9 | $ 224.5 | $ 1,163.1 | ||
| $ 162.6 | $ 4.6 | $ 419.0 | ||
| $ 719.6 | $ 61.8 | $ 1,063.5 | $ 310.8 | |
| - Continuing operations | $ 719.6 | $ 61.8 | $ 1,063.5 | $ 296.4 |
| - Discontinued operations | $ — | $ — | $ — | $ 14.4 |
| Adjusted EBITDA1 | $ 221.7 | $ 57.8 | $ 565.2 | $ 227.9 |
| - Continuing operations | $ 221.7 | $ 57.8 | $ 565.2 | $ 204.5 |
| - Discontinued operations | $ — | $ — | $ — | $ 23.4 |
| Net earnings (loss) attributable to equity holders | $ 594.1 | $ (0.8) | $ 733.4 | $ 103.7 |
| - Continuing operations | $ 594.1 | $ (0.8) | $ 733.4 | $ 98.1 |
| - Discontinued operations | $ — | $ — | $ — | $ 5.6 |
| Adjusted net earnings (loss) attributable to equity holders1 | $ 101.0 | $ (4.0) | $ 238.8 | $ 32.6 |
| - Continuing operations | $ 101.0 | $ (4.0) | $ 238.8 | $ 18.0 |
| - Discontinued operations | $ — | $ — | $ — | $ 14.6 |
| Net earnings (loss) per share attributable to equity holders – continuing operations Adjusted net earnings (loss) per share attributable to equity holders1 – continuing operations Net cash from operating activities before changes in working capital1 – continuing operations Net cash from operating activities | ||||
| $ 1.04 | $ (0.00) | $ 1.39 | $ 0.21 | |
| $ 0.18 | $ (0.01) | $ 0.45 | $ 0.04 | |
| $ 161.2 | $ 29.3 | $ 473.2 | $ 106.8 | |
| $ 146.2 | $ 37.5 | $ 383.4 | $ 89.5 | |
| - Continuing operations | $ 146.2 | $ 37.5 | $ 383.4 | $ 74.1 |
| - Discontinued operations | $ — | $ — | $ — | $ 15.4 |
| Mine-site free cash flow1 | $ 120.7 | $ 2.1 | $ 306.9 | $ 25.3 |
| - Continuing operations | $ 120.7 | $ 2.1 | $ 306.9 | $ 19.4 |
| - Discontinued operations | $ — | $ — | $ — | $ 5.9 |
| Capital expenditures1,2 – sustaining Capital expenditures1,2 – expansion | $ 84.7 | $ 50.4 | $ 197.2 | $ 131.7 |
| $ 11.2 | $ 191.6 | $ 188.7 | $ 478.3 | |
| September 30 | December 31 | September 30 | December 31 2023 | |
| 2024 | 2023 | 2024 | ||
| Financial Position ($ millions) Cash and cash equivalents Long-term debt | $ 367.1 $ 830.8 $ (649.5) $ 387.0 | |||
| $ 553.4 | $ 367.1 | $ 553.4 | ||
| $ 810.7 | $ 830.8 | $ 810.7 | ||
| Net cash (debt)1 | $ (449.0) | $ (649.5) | $ (449.0) | |
| Available Credit Facility | $ 404.9 | $ 387.0 | $ 404.9 |
1. This is a non-GAAP financial measure. See “Non-GAAP Financial Measures”.
2. Sustaining and expansion capital expenditures represent incurred expenditures for property, plant and equipment and exploration and evaluation assets, and exclude right-of-use assets and working capital impacts. Sustaining capital expenditures for Côté Gold represent the two-month period following achievement of commercial production.
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OUTLOOK
Production
| YTD 2024 | Full Year Guidance 2024 | |
|---|---|---|
| Essakane (000s oz) Westwood (000s oz) | 329 | 380 – 410 |
| 99 | 115 – 130 | |
| Total attributable production (000s oz) | 428 | 495 – 540 |
| Côté Gold, 60.3% (000s oz) | 62 | 130 - 175 |
Essakane & Westwood Production at Essakane is expected to be at the top end of the guidance of 410,000 ounces. On a quarter-over-quarter basis, Essakane production in the fourth quarter will be lower compared to prior quarters due to grade sequencing in the mine plan.
Production at Westwood is expected to be at the top end of the guidance range of 130,000 ounces for the year.
| Côté Gold | |
|---|---|
| Production guidance at Côté Gold on a 100% basis is expected to be on the lower end of the guidance of 220,000 to | |
| 290,000 ounces (130,000 to 175,000 ounces on a 60.3% basis for IAMGOLD - see “Côté Gold” below). This estimate | |
| assumes that operations will continue to ramp-up and exit the year at a throughput rate of approximately 90% of the | |
| 36,000 tonnes per day nameplate processing plant throughput rate | . |
Costs
| Full Year Guidance 20241 | |||
|---|---|---|---|
| YTD 2024 | |||
| Essakane (000s oz) | |||
| Cash costs ($/oz sold) AISC ($/oz sold) | $1,097 | $1,175 – $1,275 | |
| $1,498 | $1,575 – $1,675 | ||
| Westwood (000s oz) | |||
| Cash costs ($/oz sold) AISC ($/oz sold) | $1,174 | $1,200 – $1,300 | |
| $1,708 | $1,775 – $1,900 | ||
| Essakane + Westwood | |||
| Cost of sales2 ($/oz sold) Cash costs2,3 ($/oz sold) AISC2,3 ($/oz sold) | $1,119 | $1,175 – $1,275 | |
| $1,115 | $1,175 – $1,275 | ||
| $1,626 | $1,700 – $1,825 | ||
| Côté Gold | Refer to Côté Gold section below | ||
| 1. | The full year guidance is based on the following 2024 full year assumptions, before the impact of hedging: average realized gold price of $2,233 per ounce | ||
| USDCAD exchange rate of 1.36, EURUSD exchange rate of 1.08 and average crude oil price of $82 per barrel. |
2. Consists of Essakane and Westwood on an attributable basis of 90% and 100%, respectively.
3. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
The 2024 cost guidance for Essakane and Westwood combined is unchanged and is expected to be in the range of $1,175 to $1,275 for cash costs per ounce sold and $1,700 to $1,825 for AISC per ounce sold.
Essakane Cost guidance for Essakane is expected to be at the low end of the range of $1,175 to $1,275 for cash cost per ounce sold and within the range of $1,575 to $1,675 for AISC per ounce sold. Operating costs are expected to remain in line with levels experienced in recent quarters, while the unit cost is expected to increase due to the expected lower production in the fourth quarter. AISC is expected to be higher in the fourth quarter due to lower production and an increase in capitalized waste stripping to support the 2025 production plan.
Westwood Cost guidance for Westwood is expected to be at the low end of the range of $1,200 to $1,300 for cash cost per ounce sold and $1,775 to $1,900 for AISC per ounce sold. Fourth quarter unit costs are expected to be higher with the annual
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mill shutdown scheduled for November, which includes the replacement of certain mill equipment, in addition to new production drills expected to be commissioned in the quarter.
Côté Gold During the ramp-up period and prior to achieving near nameplate production rates, operating and capitalized waste stripping unit costs are expected to be higher than the expected life of mine average as outlined in the existing 43-101 technical report (dated August 12, 2022) as fixed costs are absorbed by lower volumes, increases in certain cost inputs from the impact of inflation since completion of the technical report, and higher royalty costs due to higher gold prices. As Côté Gold achieves 90% throughput, which is expected by the end of the year, the Company estimates cash costs at that time to be at the top end of the range of $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce. The costs may exceed the top range depending on timing and one time cost of initiatives and improvements implemented to achieve the ramp-up target.
Capital Expenditures
Essakane and Westwood
| ($ millions) | ||||||
|---|---|---|---|---|---|---|
| YTD 20241 | Full Year Guidance 20242 | |||||
| Total | ||||||
| Sustaining3 | Expansion | Total | Sustaining3 | Expansion | ||
| Essakane (±5%) Westwood (±5%) | $ 131.4 | $ 3.0 | $ 134.4 | $ 170 | $ 5 | $ 175 |
| 47.6 | 0.1 | 47.7 | 70 | — | 70 | |
| Corporate | $ 179.0 | $ 3.1 | $ 182.1 | $ 240 | $ 5 | $ 245 |
| 1.1 | — | 1.1 | — | — | — | |
| Total4 | $ 180.1 | $ 3.1 | $ 183.2 | $ 240 | $ 5 | $ 245 |
1. 100% basis, unless otherwise stated.
2. Capital expenditures guidance (±5%) at Essakane and Westwood.
3. Sustaining capital includes capitalized stripping of (i) $39.7 million for Essakane and $1.2 million for Westwood in the third quarter 2024, (ii) $93.0 million for Essakane and $5.3 million for Westwood YTD 2024, and (iii) $115 million for Essakane and $7 million for Westwood for the full year guidance. See “Outlook” sections below.
4. Includes $3 million of capitalized exploration and evaluation expenditures also included in the Exploration Outlook guidance table.
Sustaining capital expenditures¹ estimates for Essakane and Westwood this year are unchanged at approximately $240 million (± 5%) with capitalized waste stripping continuing to progress into new ore phases and the replacement of certain equipment to improve efficiency and maintenance costs at Essakane, and the early commencement of mill integrity projects originally scheduled for 2025 and renewal of the underground mining fleet at Westwood.
| Côté Gold (100%) | |||
|---|---|---|---|
| ($ millions) | Q3 20241 | Full Year Guidance 20242 | |
| YTD 20241 | |||
| Project expenditures3 to first gold | $ — | $ 151.7 | $ 152 |
| Project expenditures3 post first gold | 3.7 | 34.4 | 67 |
| Subtotal Project expenditures3 | 3.7 | 186.1 | 219 |
| Capitalized waste stripping | 7.5 | 36.5 | 60 |
| Capitalized operating pre-production costs | 4.8 | 56.3 | 60 |
| Capital expenditures related to operations | 29.2 | 55.2 | 115 |
| Total | $ 45.2 | $ 334.1 | $ 454 |
1. 100% basis, unless otherwise stated.
2. Capital expenditures guidance (±5%).
3. Project expenditures is a non-GAAP financial measure and is inclusive of supplies inventories purchased during the project phase. See "Non-GAAP Financial Measures".
Côté Gold's capital expenditures guidance is unchanged. Capital expenditures related to operations in 2024 are expected to be higher than the life-of-mine average as the mine progresses the completion of construction of the full tailings dam footprint to support the life of mine. Following the achievement of commercial production in early August 2024, the determination of the classification of capital expenditures as either sustaining or expansion is dependent upon the nature of the expenditure in accordance with World Gold Council guidelines. Certain scopes of work from the initial project, which were not on the critical path to achieve commercial production, such as the completion of required
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earthworks and support infrastructure, remain classified as expansion capital, as well as certain projects targeting expanded crushing capacity at the mill.
Exploration Outlook
Exploration expenditures for 2024 are expected to be approximately $20 million, including $5 million on the Gosselin resource delineation drilling program, as well as other near-mine and greenfield programs.
| ($ millions) | YTD 2024 | Full Year Guidance 20241 | ||
|---|---|---|---|---|
| Capitalized | Expensed | Total | Capitalized Expensed Total | |
| Exploration projects – greenfield Exploration projects – brownfield | $ — $ 15 $ 15 3 2 5 | |||
| $ 0.5 | $ 12.3 | $ 12.8 | ||
| 4.5 | 2.0 | 6.5 | ||
| $ 5.0 | $ 14.3 | $ 19.3 | $ 3 $ 17 $ 20 |
1. The full year guidance does not include expenditures for the Bambouk Assets sales currently held for sale. See "Bambouk Assets, West Africa" for additional details.
Income Taxes Paid and Depreciation Outlook
Guidance on cash taxes is unchanged, with the Company expecting to pay cash taxes in the range of $50 to $60 million during 2024. Cash tax payments do not occur evenly by quarter, as amounts paid in a quarter can include payments of the final balance of the prior year taxes and payments of instalments for the current year, both required to be made at times as prescribed by different countries. The income taxes paid guidance reflects continuing operations and does not include cash tax obligations arising as part of the Bambouk sales process. See "Bambouk Assets" for additional details.
Depreciation expense for 2024 is expected to be in the range of $255 to $265 million with increased depreciation expense in the fourth quarter following the achievement of commercial production at Côté Gold and the impairment reversal at the Doyon cash generating unit ("CGU"), which contains the Westwood mine complex.
| ($ millions) | Full Year Guidance 2024 | |
|---|---|---|
| YTD 2024 | ||
| Depreciation expense Income taxes paid | $177.4 | $255 – $265 |
| $45.5 | $50 – $60 |
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
The Company is committed to:
- Maintaining its culture of accountable mining through high standards of ESG practices; and
- The vision of Zero Harm®, in key aspects of its business, with particular emphasis on respecting the natural environment, building strong community partnerships and putting the health and safety of the Company's employees, contractors and consultants first.
Health and Safety
Health and safety is core to the Company’s pursuit of its Zero Harm® vision. Through various prevention programs, the Company continually promotes a wellness program and a safe work environment at its sites. The TRIFR (total recordable injuries frequency rate) was 0.46 as at September 30, 2024 (compared to 0.63 as at September 30, 2023), tracking below the Company's annual target of 0.66.
In the third quarter 2024, the Company continued to progress the development of a Critical Risks Program that focuses on the industry's most critical risks and controls. The Company drafted Critical Risks Protocols and continues to engage with its workforce to seek feedback on the Protocols.
Essakane conducted a management review of its health and safety management system and both Côté Gold and Westwood bolstered their health and safety teams with additional staff.
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Environmental
In 2024, the key environmental focus areas for the Company are on water and biodiversity. The Company has begun the development of a water stewardship framework that takes a catchment-based planning approach, to enhance its management capacities in this area and allow the Company to evaluate its impacts and contributions to regional watersheds. In the third quarter of 2024, the Company continued the development of a standalone Water Management Standard; this work is expected to be completed in the fourth quarter 2024. In 2024, the Company will also expand on the initial biodiversity assessment performed in 2022 to develop a more comprehensive roadmap to support its biodiversity goal and evaluate the appropriateness of the Company reporting against the Taskforce on Nature-related Financial Disclosures. In the third quarter of 2024, the Company continued to conduct biodiversity assessments at its active sites to understand its dependencies and impacts on nature.
At Essakane, the Falagountou Closure Plan was filed at the end of March 2024. Essakane's Closure Plan that was submitted in 2019 is currently being updated and the target timeline for the submission is the first quarter 2025. Essakane conducted a management review of its environmental management system. The site also ran an environmental 'stop incident' campaign to educate and empower employees to recognize and respond to environmental risks.
At Westwood, the 2021 Closure Plan was approved on June 11, 2024, and the Doyon Closure Plan was approved on July 3, 2024, by the Quebec Ministry of Natural Resources and Forestry. Westwood continued hydroseeding to prevent soil erosion in targeted areas as part of the closure activities at the Fayolle satellite pit. Westwood continues to pilot water recycling projects to reduce water withdrawal from the Bousquet River.
Côté Gold submitted its Phase 1 Environmental Effects Monitoring Report to Environment and Climate Change Canada. Côté Gold submitted its greenhouse gas emissions report for 2023 to Ontario’s Emissions Performance Standard Program, which required reasonable assurance under ISO 14064.
As of September 30, 2024, there were zero environmental significant incidents.
Social Performance
The Company reviewed its approach to community investment and initiated the development of a Community Investment Strategy. The sites continue to engage with their communities of interest and support community investment initiatives. At Essakane, key engagements and activities included discussions on economic, social, security, and resettlement topics, engagements with stakeholders as part of the Essakane Closure Plan and monitoring of artisanal miners. The Company continues to address legacy issues from the original Relocation Action Plan ("RAP 1") with the rebuilding of select houses. The Company is expected to complete all rebuilding efforts associated with RAP 1 within a three-year time period. As of September 30, 2024, there was one Level 2 communityrelated incident, as there was an intrusion at the closed Falagountou satellite pit at Essakane. Artisanal miners were removed from the site by the local Gendarmerie and no incidents were reported.
The Côté Gold Impact Benefit Agreement Annual Report was shared with First Nations Partners. Côté Gold hosted several academic institutions and non-governmental organizations for a tour of the site to share information on the advanced technologies used at the mine, approach to responsible mining and career opportunities offered at Côté Gold and within the industry. At Westwood, the team continued to meet with Abitibiwinni First Nation related to the development of an Impact Benefit Agreement.
Indigenous Relations
As a Canadian business committed to responding to the Truth and Reconciliation Commission of Canada’s Calls to Action, the Company continues to take meaningful action towards reconciliation by respecting and upholding Indigenous rights, founded upon relationships that foster trust, transparency and mutual respect. The Company is committed to engaging in a manner that respects the principle of self-determination of Indigenous people, aims to achieve their right to free, prior and informed consent and respects their cultural heritage and traditions. These principles are enshrined in the United Nations Declaration on the Rights of Indigenous People and form the foundation of IAMGOLD’s Indigenous Engagement Policy. In honour of the National Day for Truth and Reconciliation, IAMGOLD hosted a Courageous Conversation on October 3, 2024, in the Toronto office to learn and discuss the historical and current context of Indigenous relations within Canada, the business imperative for engaging Indigenous communities, and about opportunities for individuals to practice active allyship.
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OPERATIONS
Côté Gold Mine (IAMGOLD interest – 60.3%) | Ontario, Canada
| Q3 2024 | YTD 2024 | |
|---|---|---|
| Key Operating Statistics (100% basis, unless otherwise stated) Ore mined (000s t) Grade mined (g/t) Operating waste mined (000s t) Capital waste mined (000s t) Material mined (000s t) – total Strip ratio1 Ore milled (000s t) Head grade (g/t) Recovery (%) Gold production (000s oz) – 100% Gold production (000s oz) – attributable 60.3% Gold sales (000s oz) – 100% Average realized gold price, excluding prepay deliveries2 ($/oz) | ||
| 3,159 | 7,212 | |
| 1.02 | 0.91 | |
| 5,213 | 11,901 | |
| 2,006 | 9,376 | |
| 10,378 | 28,489 | |
| 2.3 | 3.0 | |
| 1,633 | 2,515 | |
| 1.41 | 1.39 | |
| 93 | 92 | |
| 68 | 103 | |
| 41 | 62 | |
| 69 | 92 | |
| $ 2,505 | $ 2,464 | |
| Financial Results ($ millions – 60.3% interest) Revenues3 Cost of sales3 Production costs (Increase)/decrease in finished goods Royalties Cash costs2 Sustaining capital expenditures2,4 Expansion capital expenditures2,4 Total sustaining and expansion capital expenditures2,4 Earnings from operations Mine site free cash flow2 | ||
| $ 104.4 | $ 136.4 | |
| 43.0 | 54.4 | |
| 39.1 | 54.4 | |
| (2.6) | (7.5) | |
| 6.5 | 7.5 | |
| 42.9 | 54.3 | |
| 17.1 | 17.1 | |
| 10.3 | 185.6 | |
| 27.4 | 202.7 | |
| 44.0 | 61.4 | |
| 23.3 | 23.3 | |
| Unit costs per tonne2 Mine costs per tonne mined Mill costs per tonne milled2 G&A costs per tonne milled2 | ||
| $ 3.95 | $ 3.77 | |
| $ 19.34 | $ 17.06 | |
| $ 10.46 | $ 9.60 | |
| Operating costs per ounce5 Cost of sales excluding depreciation ($/oz sold) Cash costs2 ($/oz sold) | ||
| $ 1,033 | $ 984 | |
| $ 1,030 | $ 982 | |
| AISC2,5 ($/oz sold) | $ 1,602 | $ 1,602 |
1. Strip ratio is calculated as waste mined divided by ore mined.
2. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
3. As per note 29 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depreciation expense.
4. All-in sustaining cost and sustaining capital expenditure represents the two-month period following achievement of commercial production on August 1, 2024, and excludes working capital adjustments. Expansion capital expenditures include Project Expenditures.
5. Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Operations Attributable gold production in the third quarter 2024 was 41,000 ounces, higher by 21,000 than the second quarter 2024, as the mill continued to ramp-up following the achievement of commercial production on August 1, 2024. Mining activity totaled 10.4 million tonnes in the third quarter 2024, in line with the prior quarter and ore tonnes mined increased to 3.2 million tonnes during the period with an associated decrease in the strip ratio to 2.3:1 waste to ore. The average grade of mined ore was 1.02 g/t, in line with the mine plan. The reconciliation between the grade control and reserve models is in line with expected tolerances.
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The mine has two CAT 6060 electric shovels and eighteen CAT 793 autonomous haul trucks in operation, with an additional three haul trucks to be commissioned before the end of the year. Drilling and blasting activity have seen month-over-month improvements, resulting from enhanced drill fleet performance with better blast pattern preparation, which has led to higher levels of in-pit blasted ore inventory available for loading and hauling operations. Mining activities are continually being optimized, including blasting patterns, drill operating procedures and maintenance practices, to increase production levels to meet throughput requirements once the mill has ramped-up.
Mill throughput in the third quarter 2024 totaled 1.6 million tonnes, approximately double the amount from the prior quarter. Throughput was impacted by the mid-September shutdown (discussed below) and an unplanned shutdown at the end of the month from an electrical failure in a motor control center. Head grades of 1.41 g/t were in line with the mine plan, which requires feed material from a combination of higher grade direct-feed ore and higher-grade stockpiles. Recoveries in the plant averaged 93% in the quarter. The gravity circuit was commissioned towards the end of the second quarter, though has yet to be brought online due to the better than planned recoveries to date versus the mine plan, and as the plant operates through periods of instability during the ramp-up. The in-circuit gold inventory is approximately 10,000 ounces of gold, in line with expectation.
The Company undertook an 8-day mill shutdown in September to deploy key optimizations and improve the operating availability of the plant, in support of the goal to ramp-up throughput to 90% by the end of the year and continued improvements in 2025 to achieve nameplate throughput. The priority of the work performed during the shutdown was to stabilize the crushing circuit and attend to the primary causes for low availability in the second quarter which included replacing 90% of the chutes with higher abrasive-resistant material to reduce the level of wear and using new types of screening with refined aperture-shapes in the coarse ore screening area. In order to provide flexibility, redundancy and improve overall capacity, Côté Gold added a mobile crushing unit in the third quarter, which operates in parallel with the crushing circuit. The capacity of the plant after the coarse ore dome, entailing the flow of material through the HPGR and into the wet-side of the plant (grind, leach, carbon in pulp), has demonstrated the ability to operate at levels of availability and throughput in line with or in excess of design capacity. The company will be installing an additional secondary crusher in the second half of next year to provide additional capacity and redundancy in support of the operation.
Following the restart, the performance and availability of the crushing circuit improved significantly, which has allowed for improved plant performance. Over the month of October, plant throughput averaged approximately 27,600 tpd, or 77% of nameplate, during which time a record daily throughput of 42,096 tpd was achieved on October 15.
Financial Performance (60.3% basis)
For accounting purposes, revenue and cost of sales are recognized at 60.3% from the commencement of the first sale. Up to the exercise of the repurchase option from Sumitomo (see below), IAMGOLD will continue to fund operating and capital expenditures through cash calls at its 60.3% interest and will receive 60.3% of gold production (see “Funding Agreement with Sumitomo” below for accounting of IAMGOLD’s 60.3% interest in the project).
Production costs of $39.1 million were incurred during the three months ended September 30, 2024. Production cost is net of $2.9 million of operating expenditures incurred during July, related to milling and surface costs that have been capitalized during commissioning and ramp-up efforts in advance of achieving commercial production.
- Mining cost of $3.95 per tonne mined and $3.77 per tonne mined during the three and nine months ended September 30, 2024, respectively, was higher during the third quarter due to higher than planned rehandling of ore to achieve the required segregation of high grade material, higher maintenance costs on the drill rigs to improve availability and higher contractor costs to support the ramp-up of the mine.
- Mill cost of $19.34 per tonne milled and $17.06 per tonne milled during the three and nine months ended September 30, 2024, respectively, is higher than expected as the average throughput during the quarter was below nameplate capacity as the mill is in the process of ramping up and due to the shutdown in the third quarter. Costs were also higher due to costs incurred during the quarter to deploy key optimizations to improve the operating availability of the plant. Unit costs are expected to decrease as throughput increases and costs stabilize.
G&A cost $10.46 per tonne milled and $9.60 per tonne milled during the three and nine months ended September • 30, 2024, respectively, is higher than expected as the average throughput during the quarter was below nameplate
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capacity as the mill is in the process of ramping up and due to the shutdown in the third quarter. Unit costs are expected to decrease as throughput increases.
Cost of sales, excluding depreciation, during the three and nine months ended September 30, 2024, totaled $43.0 million and $54.4 million, respectively, and is net of $2.6 million and $7.5 million, respectively, of the production cost related to the in-circuit inventory that was built up during the period and is recorded in inventory as finished goods. Cost of sales includes $6.5 million and $7.5 million of royalties for the three and nine months ended September 30, 2024, respectively. Cost of sales per ounce sold, excluding depreciation, was $1,033 and $984 for the three and nine months ended September 30, 2024, respectively.
Cash costs during the three and nine months ended September 30, 2024, totaled $42.9 million and $54.3 million, respectively. Cash cost per ounce sold during the three and nine months ended September 30, 2024, was $1,030 and $982, respectively. Cash costs exclude production costs that have been capitalized during commissioning and rampup efforts in advance of achieving commercial production.
AISC per ounce sold was $1,602 for the two months in the period following the achievement of commercial production, with the sustaining capital expenditures totaling $17.1 million that includes capitalized waste stripping and projects which are sustaining in nature in line with World Gold Council guidance. Included in sustaining capital and AISC is approximately $6.5 million and $226 per ounce sold, respectively, in support of the construction of the full tailings dam footprint to support the life of mine; excluding this non-recurrent capital item, AISC per ounce sold was $1,376 for the two months in the period following the achievement of commercial production.
Project and capital expenditures, on an 100% and incurred basis, of $45.2 million in the third quarter 2024 ($334.1 million YTD), includes:
- Project expenditures following first gold of $3.7 million to support the completion of commissioning and certain scopes of non-critical path earthwork and infrastructure. Prior to the first gold pour on March 31, 2024, project expenditures incurred were $151.7 million, totaling $186.1 million for the year.
- In addition to the project expenditures, approximately $4.8 million of operating expenditures related to milling and surface costs have been capitalized during the quarter ($56.3 million YTD) in support of the commissioning and ramp-up efforts in advance of achieving commercial production.
- Capital expenditures related to operations for the third quarter 2024 were $36.7 million ($91.7 million YTD), including $7.5 million of capitalized stripping ($36.5 million YTD), $18.0 million of tailings and earthworks ($37.7 million YTD), $0.8 million of mobile equipment ($5.4 million YTD) and $10.4 million of capital projects related to operation improvements and ramp-up ($12.1 million YTD).
Total capital expenditures paid during the quarter, on a 60.3% basis, were $37.2 million ($217.4 million YTD), which includes, on a 60.3% basis, the $27.4 million incurred in the third quarter 2024 ($202.7 million YTD) and working capital adjustments and long term advances of $9.8 million ($14.7 million YTD). (see “Non-GAAP Financial Measures
- Sustaining and Expansion Capital Expenditures”).
2024 Outlook – 100%
Production guidance at Côté Gold is reaffirmed and is expected to be on the lower end of the guidance range of 220,000 to 290,000 ounces (130,000 to 175,000 ounces on a 60.3% basis), as improvements to mill availability are made during the ramp-up of operations.
As Côté Gold achieves 90% of the 36,000 tonnes per day nameplate production rate, which is expected by the end of the year, the Company estimates cash costs at that time to be in the range of approximately $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce sold. The costs may exceed the top range depending on timing and one time cost of initiatives and improvements implemented to achieve the ramp-up target.
Capital expenditures for 2024 at Côté Gold are outlined in the Outlook section above. Excluding project expenditures for completion of the project, capital expenditures, on a 100% basis, related to: capitalized waste stripping, capitalized operating pre-production costs, and capital expenditures related to operations (including expansion of the tailings
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management facility, additional mining equipment and owners' costs as outlined in the mine plan) are expected to total $235 million this year with $148 million expended year to date.
Côté Gold’s capital expenditures in 2024 are expected to be higher than the life-of-mine average as the mine progresses the completion of the construction of the full tailings dam footprint to support the life of mine. Following the achievement of commercial production in early August 2024, the determination of the classification of capital expenditures as either sustaining or expansion is dependent upon the nature of the expenditure in accordance with World Gold Council guidelines. Certain scopes of work from the initial project, which were not on the critical path to achieve commercial production, such as the completion of required earthworks and support infrastructure, remain classified as expansion capital, as well as certain projects targeting expanded crushing capacity at the mill.
Exploration
Gosselin Zone Drilling
The Gosselin zone is located immediately to the northeast of the Côté zone. Approximately 35,000 metres of expansion and delineation diamond drilling was originally planned for 2024, and approximately 12,300 metres and 35,200 metres were completed in the three and nine months ended September 30, 2024, respectively, and the program has been increased by 4,000 metres. The drill program this year is being conducted to test the extensions of the Gosselin zone and the gap between the Gosselin West Breccia body and the Côté Breccia at depth. In addition, 6,000 metres is planned this year to test high potential targets along the favourable structural corridor that links the Côté and Gosselin zones and runs through the Chester intrusive complex. Approximately 2,200 metres were drilled on the Clam Lake target area.
On October 15, 2024, the Company provided an update on the assay results from its delineation and expansion drilling program at Gosselin with assay highlights including: 368.8 metres grading 0.96 g/t Au in drill hole GOS23-151 from 221.2 m; 235.0 metres grading 2.70 g/t Au in drill hole GOS24-160 from 697.0 m; 357.0 metres grading 1.10 g/t Au in drill hole GOS24-166 from 864.0 m; and 18.5 metres grading 12.33 g/t Au in drill hole GOS24-177 from 262.5 m (see news release dated October 15, 2024).
Côté Zone Drilling
During the three months ended September 30, 2024, a drilling program was initiated and approximately 2,000 metres of diamond drilling were completed as part of an infill drilling program to improve resource confidence within depth extensions of the Côté deposit.
Technical studies are progressing to advance metallurgical testing, conduct mining and infrastructure studies in order to review alternatives for potential inclusion of the Gosselin deposit into a future Côté Gold LOM plan.
Funding Agreement with Sumitomo
On December 19, 2022, the Company announced it had entered into the JV Funding and Amending Agreement with SMM, whereby SMM contributed $250.0 million of the Company's funding obligations to the Côté Gold UJV and as a result, the Company transferred 9.7% of its interest in Côté Gold to SMM (the "Transferred Interests") with a right to repurchase the Transferred Interests to return to its full 70% interest in the Côté Gold Mine.
The JV Funding Agreement also provides that until the earlier of the Company repurchasing the Transferred Interests and November 30, 2026, the Company will pay a repurchase option fee to Sumitomo equal to the three-month Secured Overnight Financing Rate ("SOFR") plus 4% on the contributions made by Sumitomo due to the Transferred Interests.
On September 30, 2024, the Company provided Sumitomo with the required 60 days formal irrevocable notice to exercise its right to repurchase the 9.7% interest in Côté Gold with the transaction closing expected on November 30, 2024, which will return IAMGOLD to its full 70% interest in Côté Gold.
The repurchase price is approximately $377 million and includes $23.7 million for the repurchase option fee accrued during 2023. The payment will be funded using the proceeds from the $300 million equity financing completed during the second quarter 2024 and with available liquidity.
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