IAMGOLD REPORTS FOURTH QUARTER AND YEAR-END 2020 RESULTS; GENERATED $348 MILLION IN OPERATING CASH FLOW Mine-Site Free Cash Flow up 280% YoY; Commenced Construction of Côté with Major Earthworks Ahead of Schedule
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS FOURTH QUARTER AND YEAR-END 2020 RESULTS;
GENERATED $348 MILLION IN OPERATING CASH FLOW
Mine-Site Free Cash Flow up 280% YoY;
Commenced Construction of Côté with Major Earthworks Ahead of Schedule
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
For more information, refer to the Management Discussion and Analysis (MD&A) and Audited Consolidated Financial Statements for the year ended December 31, 2020.
Toronto, Ontario, February 17, 2021 - IAMGOLD Corporation (“IAMGOLD” or the “Company”) reports its consolidated financial and operating results for the quarter and year ended December 31, 2020.
"IAMGOLD's efforts in advancing our peer-leading growth platform took a significant step forward in 2020 with the commencement of construction of the Côté Gold Project in Canada, supported by both robust gold prices and nearly $1.5 billion in liquidity at year-end. As reported on January 19, 2021, IAMGOLD achieved its updated production and cost guidance, generating $347.6 million in annual operating cash flows and producing 653,000 ounces of gold, resulting in $223.2 million in mine-site free cash flows,” commented Gordon Stothart, President and CEO of IAMGOLD.
“In 2021, we expect to produce between 630,000 to 700,000 ounces of gold, while concurrently advancing our growth platform in North America with major earthworks underway at Côté ahead of schedule, ongoing de-risking infrastructure work at Boto in West Africa and contribution of Saramacca to Rosebel in South America. At all of our sites globally, we remain committed to achieving high standards in ESG practices alongside our Zero Harm® vision, founded in 2007. Our efforts have been recognized by a number of independent research agencies including, among others, Moody's affiliate Vigeo Eiris, MSCI, and Bloomberg GEI. We also remain committed to ensuring the health and safety of our employees and host communities, proactively implementing numerous safety initiatives, particularly in the context of the current global COVID-19 pandemic, and achieving a DART rate3 of 0.46 in 2020, demonstrating a 10% improvement year-over-year.”
2020 FULL YEAR HIGHLIGHTS
- Attributable gold production from continuing operations of 653,000 ounces at cost of sales1 per ounce of $1,057, total cash costs2 per ounce produced of $984 and all-in sustaining costs2 per ounce sold of $1,232.
- Attributable gold sales from continuing operations of 646,000 ounces.
- Revenues of $1,241.7 million, reflecting an average realized gold price of $1,778 per ounce sold.
- Gross profit was $250.3 million, up $180.7 million or 260% from the prior year.
- Net earnings from continuing operations attributable to equity holders was $38.5 million, or $0.08 per share.
- Adjusted net earnings from continuing operations attributable to equity holders2 was $87.7 million, or $0.19 per share2.
- Net cash from operating activities was $347.6 million, a 4% decrease over the prior year.
- Net cash from operating activities before changes in working capital2 was $368.1 million, consistent with the prior year.
- Mine-site free cash flow2 was $223.2 million, a 280% increase over the prior year.
- Liquidity - IAMGOLD remains in a solid liquidity position with cash, cash equivalents, short-term investments and restricted cash increasing by $121.3 million over the prior year to $986.1 million, as at December 31, 2020. At year end, $498.3 million was available under the credit facility.
- Health & Safety - In 2020, IAMGOLD's global safety statistics show a 10% improvement from 2019 in the DART3 (days away, restricted, transferred duty) frequency rate, and a 23% improvement in the TRI (total recordable injuries) frequency rate. Through various programming, IAMGOLD continuously promotes a safe work environment.
- ESG Activities - IAMGOLD is committed to high standards in Environmental, Social and Governance practices, reflected in our global implementation of the Mining Association of Canada’s Toward Sustainable Mining framework and ongoing implementation of the World Gold Council’s Responsible Gold Mining Principles. IAMGOLD has contributed over $1.5 million to COVID-19 efforts in host countries, completed Phase 1 of the Triangle d'eau public-private partnership to bring potable water to 60,000 people in Burkina Faso, and established the Suriname Community Fund with initial funding of $2.5 million to support qualifying local projects.
- Growth Projects - IAMGOLD’s growth projects continue to progress, with the early commencement of major earthworks at the Côté Gold Project and camp expansion ongoing. A delineation drilling program on the Gosselin zone, located 1.5 kilometres from Côté, is underway to support the completion of a maiden resource estimate, expected in the second half of 2021. IAMGOLD continues de-risking activities at the Boto Gold Project in Senegal, advancing engineering, building access infrastructure, and progressing with environmental and social programs to support the project development.
- Non-Core Transaction - On December 30, 2020, IAMGOLD together with its joint venture partner AngloGold Ashanti Limited ("AGA") completed the sale of their collective interest in Société d'Exploitation des Mines d'Or de Sadiola S.A. ("Sadiola") to Allied Gold Corp ("Allied Gold"). Upon closing, IAMGOLD and AGA each received $25.0 million. In addition, on January 4, 2021, IAMGOLD and AGA each received additional agreed upon consideration of $1.8 million. IAMGOLD and AGA remain entitled to deferred consideration of $12.5 million each upon the production of the first 250,000 ounces from the Sadiola Sulphides Project ("SSP"), $12.5 million each upon the production of a further 250,000 ounces from the SSP, and $1.25 million each in the event a favourable settlement is achieved by Sadiola in ongoing litigation pending before the Malian courts.
- Non-Core Transaction - On January 12, 2021, IAMGOLD entered into an agreement to sell a royalty portfolio to Triple Flag Precious Metals Corp for up to $47.6 million. The royalty portfolio includes up to 39 royalties on various non-core exploration and development properties. The transaction has not been completed and is subject to customary closing conditions, a minimum value condition and, in certain instances, rights of first refusal. The transaction is expected to close during the first quarter 2021.
OPERATING PERFORMANCE
- Attributable gold production from continuing operations was 653,000 ounces, down 57,000 ounces from the prior year, and within updated guidance. Attributable gold production from continuing operations for the fourth quarter was 169,000 ounces, down 10,000 ounces from the same prior year period, and up 10,000 ounces from the third quarter.
- Attributable gold sales from continuing operations were 646,000 ounces, down 61,000 ounces from the prior year. Attributable gold sales from continuing operations for the fourth quarter were 172,000 ounces, down 12,000 ounces from the same prior year period, and up 10,000 ounces from the third quarter.
- Cost of sales1 from continuing operations was $1,057 per ounce, up 11% from the prior year. Cost of sales1 from continuing operations for the fourth quarter was $1,045, up 15% from the same prior year period, and down 5% from the third quarter.
- All-in sustaining costs2 from continuing operations were $1,232 per ounce sold, up 8% from the prior year, and below updated guidance. All-in sustaining costs2 from continuing operations for the fourth quarter were $1,294, up 10% from the same prior year period, and up 7% from the third quarter.
- Total cash costs2 from continuing operations were $984 per ounce produced, up 8% from the prior year. Total cash costs2 from continuing operations for the fourth quarter were $998, up 6% from the same prior year period, and down 1% from the third quarter.
- Gold margin2 from continuing operations was $794 per ounce, up $304 per ounce from the prior year. Gold margin2 from continuing operations for the fourth quarter was $867 per ounce, up $331 per ounce from the same prior year period, and down $35 per ounce from the third quarter.
- Capital expenditures were $292.7 million, below the 2020 guidance of $315.0 million.
FINANCIAL RESULTS
•
| Revenues were $1,241.7 million, up $176.4 million or 17% from the prior year. Revenues for the fourth | ||
| quarter were $347.5 million, up $54.1 million or 18% from the same prior year period, and up $12.4 | ||
| million from the third quarter, | reflecting an average realized gold price | of $1,865 per ounce. |
- Gross profit was $250.3 million, up $180.7 million or 260% from the prior year. Gross profit for the fourth quarter was $84.0 million, up $42.9 million or 104% from the same prior year period, and up $5.9 million from the third quarter.
- Net earnings from continuing operations attributable to equity holders was $38.5 million, or $0.08 per share, compared to net loss from continuing operations of $373.3 million, or $0.80 per share in the
| Net earnings from million, or $0.12 $0.65 per share in | t earnings | from | |
|---|---|---|---|
| $0.12 | |||
| $0.65 |
prior year. Net earnings from continuing operations attributable to equity holders for the fourth quarter was $59.0 million, or $0.12 per share, compared to net loss from continuing operations of $303.8 million, or $0.65 per share in the same prior year period, and a net loss from continuing operations of
| $11.6 million, or $0.02 per share in the third quarter. | Net earnings for the fourth quarter and year |
| ended 2020 included reversal of impairment charge on the Essakane Mine ($45.8 million). Net losses | |
| for the fourth quarter and year ended 2019 included an impairment charge on the Westwood Mine | |
| ($395.0 million), partially offset by a reversal of impairment charge on the Essakane Mine ($122.0 | |
| million). |
| Adjusted net earnings from continuing operations attributable to equity holders2 was $87.7 million, or | |
| $0.19 per share2, compared to adjusted net loss from continuing operations2 of $30.0 million, or $0.06 | |
| per share2 in the prior year. Adjusted net earnings from continuing operations attributable to equity | |
| holders2 for the fourth quarter was $19.1 million, or $0.04 per share2, compared to adjusted net loss | |
| from continuing operations2 of $3.8 million, or $0.01 per share2 in the same prior year period, and an | |
| adjusted net earnings from continuing operations2 of $52.1 million, or $0.11 per share2 in the third | |
| quarter. | Adjusted net earnings from continuing operations attributable to equity holders2 for the fourth |
•
quarter of $0.04 per share was primarily impacted by the removal of deferred tax recoveries arising solely from movements in foreign exchange rates, higher general and administrative expenses related to executive retirement benefits, and higher depreciation expense.
- Net cash from operating activities was $347.6 million, down $15.4 million from the prior year. Net cash from operating activities for the fourth quarter was $128.7 million, down $133.8 million from the same prior year period, and up $23.6 million, $56.3 million, and $84.7 million from the third, second, and first quarter, respectively.
- Net cash from operating activities before changes in working capital2 was $368.1 million, up $0.6 million from the prior year. Net cash from operating activities before changes in working capital2 for the fourth quarter was $108.0 million, down $118.2 million from the same prior year period, and down $0.4 million from the third quarter.
- Mine-site free cash flow2 was $223.2 million, up $164.5 million from the prior year. Mine-site free cash flow2 for the fourth quarter was $77.7 million, up $22.6 million from the same prior year period, and down $2.3 million from the third quarter.
- Cash, cash equivalents, short-term investments and restricted cash totaled $986.1 million at December 31, 2020. Cash and cash equivalents were $941.5 million, short-term investments were $6.0 million and restricted cash was $38.6 million. $498.3 million was available under the credit facility.
GLOBAL COVID-19 PANDEMIC
- The global COVID-19 pandemic continues to evolve including the continuing imposition of restrictions on the movement of people and goods, social distancing measures, restrictions on group gatherings, quarantine requirements and contact tracing. IAMGOLD has been closely monitoring and taking necessary measures to manage the impact of the COVID-19 pandemic on its operations, development projects and exploration activities. IAMGOLD is managing the financial and operational challenges of COVID-19 while rapidly addressing the needs of its employees and the communities where IAMGOLD operates. IAMGOLD continues to work closely with local and national governments and communities on limiting the impact of the COVID-19 pandemic on its people and business, and supporting local efforts to manage the pandemic.
- IAMGOLD has taken extensive steps, across its operations and offices, to protect the health and safety of employees, contractors and local communities in response to the COVID-19 pandemic. These steps included: implementation of sanitary measures recommended by Health Authorities and COVID-19 prevention protocols. The protocols address risk controls, including: restricting site access to employees, contractors and incoming supplies; screening processes (the use of external laboratories for PCR testing, the acquisition of Antigen test kits and the use of thermal cameras to
check temperatures before entering the sites); physical distancing; the use of personal protective equipment; arranging additional transportation buses and increasing on-site medical personnel.
| STRATEGIC DEVELOPMENTS | |
| IAMGOLD's transformational strategy centres on delivering the lower cost Côté Gold Project, de-risking | |
| the Boto Gold Project, optimizing its current operations and continuing to invest in its pipeline of brownfield | |
| and greenfield exploration. Together | with its financial strategy of maintaining a strong balance sheet, |
IAMGOLD expects to secure favourable hedges on cost inputs and protective hedges on a portion of gold production during construction of the Côté Gold Project as appropriate, management believes IAMGOLD is positioned to deliver on its goal of superior returns to shareholders.
Financial
- On December 30, 2020, IAMGOLD together with its joint venture partner AngloGold Ashanti Limited ("AGA") completed the sale of their collective interest in Société d'Exploitation des Mines d'Or de Sadiola S.A. ("Sadiola") to Allied Gold Corp ("Allied Gold"). Upon closing, IAMGOLD and AGA each received $25 million. In addition, on January 4, 2021, IAMGOLD and AGA each received additional consideration of $1.8 million based upon the amount by which the cash balance of Sadiola at April 30, 2020 was greater than the amount agreed pursuant to the agreement entered into by IAMGOLD and AGA with Allied Gold in December 2019.
- During the third quarter 2020, IAMGOLD implemented a gold hedging strategy to mitigate gold price exposure and to further strengthen the balance sheet during the Côté Gold Project construction period. IAMGOLD intends, under appropriate conditions, to hedge 15% to 20% of total production between 2021 and mid-2023 through a combination of options and/or collars (see news release dated July 21, 2020). During the fourth quarter, IAMGOLD executed gold hedges for 2021 in the range of $1,600 to $2,800 per ounce on 78,040 ounces, for which a premium of $1.3 million was paid.
•
| During the fourth quarter 2020, IAMGOLD executed zero cost collar option contracts based on the | |
|---|---|
| Brent benchmark, in the range of $40.70 to $55.00 per barrel, for the period January 2023 to | |
| September 2024 to hedge attributable fuel consumption related to mining operations at Essakane. | |
| IAMGOLD also executed zero cost collar option contracts relating to the West Texas Intermediate | |
| ("WTI") benchmark, in the range of $31.15 to $45.00 per barrel for 2021, and in the range of $36.10 to | |
| $50.00 for the period January 2023 to September 2024. These WTI hedges are attributed to fuel | |
| consumption related to mining operations at Rosebel | . |
- In the third quarter 2020, IAMGOLD issued a notice to redeem its 7% Senior Notes due 2025 for a total amount of $421.3 million and funded the redemption on September 29, 2020 and the indenture governing the 2025 Notes was satisfied and discharged on this date.
- In the third quarter 2020, IAMGOLD announced that it had completed its private offering of $450 million aggregate principal amount of 5.75% Senior Notes ("Notes") due 2028. IAMGOLD used the net proceeds from the offering of the Notes to fund the redemption of all of its outstanding 7% Senior Notes due 2025 and for general corporate purposes.
- The redemption of the 7% Senior Notes and issuance of the 5.75% Senior Notes extended the term by three and a half years at a lower rate of interest. The refinancing further supports the balance sheet and helps mitigate the risk of gold price volatility and exposure. The redemption also resulted in a cash loss of $21.3 million that is expected to be offset by lower interest expense over the original term of the 7% Notes.
- Following the new Notes issuance, both Moody’s and S&P re-affirmed their ratings of B1 and B+, respectively, for IAMGOLD.
- In the third quarter 2020, an ESG assessment by Moody’s affiliate Vigeo Eiris ranked IAMGOLD 4th out of 45 sector peers, with notable strengths in community involvement, environmental strategy, health & safety and governance.
- In the first quarter 2020, IAMGOLD amended its $500 million credit facility with a maturity date of January 31, 2023. IAMGOLD further amended its credit facility on September 30, 2020. These amendments included, among other things, extending $472 million of credit available under the credit facility agreement to a maturity date of January 31, 2024.
Exploration
- In the third quarter 2020, IAMGOLD reported assay results from its 2020 drilling program at the Monster Lake Project in Canada. Drilling highlights included: 3.8 metres grading 16.9 g/t Au, 2.82 metres grading 5.63 g/t Au, and 12.3 metres grading 2.09 g/t Au.
- In the second quarter 2020, IAMGOLD reported assay results from its 2020 diamond drilling program at the Rouyn Gold Project in Canada. Drilling highlights included: 9.8 metres grading 10.4 g/t Au and 9.8 metres grading 27.8 g/t Au (including 4.4 metres grading 58.4 g/t Au). IAMGOLD reported additional assay results in the third quarter 2020. Drilling highlights included: 4.1 metres grading 10.4 g/t Au and 7.4 metres grading 8.3 g/t Au.
- In the second quarter 2020, IAMGOLD reported initial assay results from its 2020 infill and expansion diamond drilling program at the Nelligan Project in Canada. Drilling highlights included: 25.1 metres grading 1.87 g/t Au and 27.0 metres grading 2.86 g/t Au. IAMGOLD reported additional assay results in the third quarter 2020. Drilling highlights included: 39.1 metres grading 2.14 g/t Au and 34.5 metres grading 1.85 g/t Au. IAMGOLD reported the remaining assay results in the fourth quarter 2020. Drilling highlights included: 17.3 metres grading 7.62 g/t Au and 42.0 metres grading 1.15 g/t Au.
Development and Operations •
| On November 2, 2020, | IAMGOLD | reported that a seismic event occurred at Westwood on October 30, | |
|---|---|---|---|
| 2020. All employees were brought safely above ground. The appropriate government authorities were | |||
| notified and the cause of the seismic event is being investigated | . Milling operations restarted on |
November 4, 2020 to process stockpile material and Grand Duc open pit ore. The Westwood underground mine operations were suspended pending the results of the investigation and while a business recovery plan was being assessed.
- In the third quarter 2020, prior to the seismic event, IAMGOLD filed a National Instrument ("NI") 43- 101 Technical Report for the Westwood mine, incorporating modified mining methods, operational practices and revised productivity assumptions. In this context, total attributable mineral reserves at year end decreased by 47% to 0.626 million ounces, primarily the result of more conservative geotechnical assumptions related to specific zones located in higher seismic risk areas. Overall mineral resources at year end have remained largely unchanged. As is typical for underground operations, and supported by reasonable assumptions in-line with historical operating experience, IAMGOLD continues to work on converting its significant underground mineral resources to mineral reserves over time.
- In the third quarter 2020, IAMGOLD, together with joint venture partner Sumitomo Metal Mining Co., Ltd. (“SMM”) announced the decision to proceed with the construction of the Côté Gold Project. During the fourth quarter 2020, activities related to the construction of the Project continued with all key permits required for currently planned construction in place. Additional permits are required to complete subsequent construction elements and commissioning for operations, which IAMGOLD expects to receive in due course. At December 31, 2020, detailed engineering reached 73%, which has enabled IAMGOLD to obtain firm bids and secure prices on all major equipment. As a result, approximately 45% of total expenditures from July 1, 2020 have been committed, further reducing technical and cost risks for the Project. Earthwork contractors also mobilized to site ahead of schedule and commenced work including pad preparation, road widening, and overburden stripping. Camp construction progressed with two additional dormitories in place in January 2021, allowing further ramp up at site.
- In the second quarter 2020, Rosebel Gold Mines N.V. ("Rosebel") signed an Unincorporated Joint Venture (“Rosebel UJV”) agreement with Staatsolie Maatschappij Suriname N.V. (“Staatsolie”) relating to the concession areas within the Rosebel UJV Area of Interest, which includes Saramacca. The Rosebel UJV excludes the existing gross Rosebel mining concession, which is 95% owned by Rosebel and 5% owned by the Republic of Suriname. Rosebel holds a 70% participating interest and Staatsolie holds a 30% participating interest in the Rosebel UJV on behalf of the Republic of Suriname. Staatsolie has paid Rosebel an initial amount of $34.0 million toward an aggregate owing of $54.9 million for all operating and capital expenses related to the Saramacca Project. The remaining amount will be paid out of Staatsolie’s gold entitlement from the Saramacca property.
- In the first quarter 2020, IAMGOLD announced that the Government of the Republic of Senegal approved the mining permit application for the Boto Gold Project for an initial 20-year period. The receipt of the mining permit positions the Project for an eventual construction decision and production.
Organizational and Board of Directors Changes •
| In the fourth quarter 2020, | IAMGOLD | announced the appointment of Anne Marie Toutant and Deborah | |
| Starkman as independent non-executive Directors to | 's Board of Directors, effective | ||
| December 14, 2020. |
- In the third quarter 2020, IAMGOLD announced the retirement of Carol Banducci, EVP and CFO, effective March 31, 2021 and the retirement of Jeffery Snow, General Counsel and SVP Business
Development, effective August 31, 2020. In the fourth quarter 2020, Craig MacDougall was appointed Executive Vice President, Growth, and Tim Bradburn was appointed Senior Vice President, General Counsel and Corporate Secretary.
- In the first quarter 2020, IAMGOLD announced the retirement of Stephen J.J. Letwin, Chief Executive Officer; P. Gordon Stothart, President and Chief Operating Officer, succeeded Mr. Letwin on the Board of Directors and in the role of President and Chief Executive Officer, effective March 1, 2020.
•
| In the first quarter 2020, Bruno Lemelin was appointed to the role of Senior Vice President, Operations | |
| & Projects, with oversight of all operational and project development activities across | IAMGOLD. |
•
| In the first quarter 2020, Oumar Toguyeni was appointed to the role of Senior Vice President, | |
| International Affairs & Sustainability, with the primary objective of managing | 's relationships |
| with governments and other stakeholders in West Africa and South America. |
Reserves and Resources
- Total attributable proven and probable gold reserves decreased by 2.8 million ounces or 17% to 13.9 million ounces from the prior year. The decrease was primarily due to the sale of Sadiola, mine depletion at all operations and the previously announced reclassification of a portion of reserves at Westwood (see news release dated August 5, 2020). Excluding the sale of Sadiola, a discontinued operation, total attributable proven and probable reserves decreased by 1.2 million ounces or 7%.
- Total attributable measured and indicated resources decreased by 12% to 23.9 million ounces, as a result of the sale of Sadiola and the Eastern Borosi Project, and mine depletion. Total attributable inferred resources decreased by 6% to 11.3 million ounces primarily as a result of the asset sales mentioned above.
Subsequent to Year End
•
| On January 4, 2021, | IAMGOLD | announced it has adopted new governance guidelines with respect to | |
| board renewal to reflect evolving governance best practices. The guidelines provide that: the average | |||
| Board tenure should not exceed ten years, no director should chair a standing committee of the Board | |||
| for more than ten years and no director should be the Board Chair for more than ten years. In addition, | |||
| IAMGOLD | announced that John Caldwell voluntarily decided to step down from the Board, effective | ||
| January 4, 2021, and Mahendra Naik decided not to stand for re-election at the upcoming meeting of | |||
| shareholders. Ron Gagel was appointed as Chair of the Audit and Finance Committee. |
- On January 12, 2021, IAMGOLD entered into an agreement to sell a royalty portfolio to Triple Flag Precious Metals Corp for up to $47.6 million. The royalty portfolio includes up to 39 royalties on various non-core exploration and development properties. The transaction has not been completed and is subject to customary closing conditions, a minimum value condition and, in certain instances, rights of first refusal. The transaction is expected to close during the first quarter 2021.
•
| On January 21, 2021, | IAMGOLD | reported initial assay results from its delineation drilling program at |
| the Gosselin Zone discovery in Canada. Drilling highlights included: 417.3 metres grading 0.95 g/t Au | ||
| (including 197.2 metres grading 1.60 g/t Au), 353.0 metres grading 1.04 g/t Au (including 46.0 metres | ||
| grading 3.39 g/t Au) and 86.0 metres grading 5.57 g/t Au (including 30.35 metres grading 14.70 g/t Au). |
- Subsequent to year end, IAMGOLD added gold hedges for the first half of 2023 with a collar option at strike prices between $1,700 and $2,700 per ounce on 24,000 ounces, for which a premium of $1.1 million was paid.
- On February 12, 2021, IAMGOLD further amended the $500 million credit facility to primarily, among other things, extend the maturity date by two years to January 31, 2025 for $490 million of the available credit.
- In January 2021, Bloomberg re-iterated IAMGOLD's inclusion in the 2021 Bloomberg Gender-Equality Index ("GEI") for the 3rd consecutive year. The 2021 Bloomberg GEI recognizes 380 global companies that foster a more inclusive and equitable workplace.
- IAMGOLD ranked 10th out of 116 global mining peers based on the Corporate Knights 2021 Global 100 Sustainability scorecard. Corporate Knights reviews over 8,000 global, publicly traded companies with greater than $1 billion in annual revenues.
UPCOMING GROWTH CATALYSTS
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| In North America, IAMGOLD is advancing construction of the Côté Gold Project, with the early | |
| commencement of major earthworks and the continued expansion of the construction camp. In 2021, | |
| approximately 17,000 metres of diamond drilling is planned, including 14,500 metres to continue the | |
| delineation drilling program on the Gosselin zone to support the completion of a maiden resource | |
| estimate, expected in the second half of 2021. IAMGOLD | continues to advance various ongoing and |
planned delineation and resource evaluation drilling programs at selected projects including the Nelligan Gold, Monster Lake and Rouyn Gold projects in Quebec. At Westwood, work is being done to evaluate the potential development of the Fayolle deposit, which, pending permitting, may provide incremental feed commencing in the fourth quarter 2022 to the Westwood mill as part of its "hub-andspoke" model. This model exploits the significant mill capacity available at Westwood to bring forward regional exploration value from assets like Fayolle and the optioned Rouyn Gold Project and to enhance the overall value of Westwood with incremental production growth from such supplementary feed.
- In West Africa, the Mill Upgrade Project at Essakane is expected to be completed in the first quarter 2021. IAMGOLD continues de-risking activities at the Boto Gold Project, by advancing engineering, building access infrastructure, and progressing with environmental and social programs to support the project development. Building on its exploration success along the Senegal-Mali Shear Zone with several other discoveries located within 15 kilometres of the Boto Gold Project in adjacent countries, IAMGOLD has also initiated a strategic study, referred to as the “Bambouk Gold Complex,” to advance resource evaluation and delineation at the Diakha-Siribaya and Karita projects to support the evaluation of various potential development scenarios and identify regional synergies.
- In South America, Rosebel's camp expansion is expected to be completed by the second quarter 2021, enabling Rosebel to return to full mining rates. Remaining non-critical Saramacca infrastructure is expected to be completed by mid-year.
SUMMARY OF FINANCIAL AND OPERATING RESULTS
Three months ended Years ended December 31, December 31,
| Financial Results ($ millions, except where noted) | 2019 2018 | 2019 2018 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2020 | |||||||||||
| Continuing Operations Revenues Cost of sales | $ 293.4 $ 274.3 $ 252.3 $ 250.3 | $ 1,065.3 $ 1,111.0 $ 995.7 $ 974.1 | ||||||||||
| $ | 347.5 | $ | 1,241.7 | |||||||||
| $ | 263.5 | $ | 991.4 | |||||||||
| Gross profit | $ | 84.0 | $ 41.1 $ 24.0 | $ | 250.3 | $ 69.6 $ 136.9 | ||||||
| Net earnings (loss) from continuing operations | $ (303.8) $ (39.5) $ (0.65) $ (0.08) | $ (373.3) $ (31.4) $ (0.80) $ (0.07) | ||||||||||
| attributable to equity holders of IAMGOLD | $ | 59.0 | $ | 38.5 | ||||||||
| Net earnings (loss) from continuing operations | ||||||||||||
| attributable to equity holders of IAMGOLD | $ | 0.12 | $ | 0.08 | ||||||||
| ($/share) | ||||||||||||
| Adjusted net earnings (loss) from continuing operations attributable to equity holders of IAMGOLD1 Adjusted net earnings (loss) from continuing operations attributable to equity holders of IAMGOLD ($/share)1 | $ 3.8 $ (20.8) $ 0.01 $ (0.04) | $ (30.0) $ 13.3 $ (0.06) $ 0.03 | ||||||||||
| $ | 19.1 | $ | 87.7 | |||||||||
| $ | 0.04 | $ | 0.19 | |||||||||
| Net cash from operating activities Net cash from operating activities before changes in working capital1 | $ | 128.7 | $ 262.5 $ 23.1 $ 226.2 $ 55.7 | $ | 347.6 | $ 363.0 $ 191.1 $ 367.5 $ 288.4 | ||||||
| $ | 108.0 | $ | 368.1 | |||||||||
| Mine-site free cash flow1 | $ | 77.7 | $ | 55.1 | $ | (51.2) | $ | 223.2 | $ | 58.7 | $ | 8.4 |
| Key Operating Statistics Gold sales – attributable (000s oz) Gold production – attributable (000s oz) Average realized gold price1 ($/oz) Cost of sales2 ($/oz) Total cash costs1 ($/oz) All-in sustaining costs1 ($/oz) Gold margin1 ($/oz) | 184 206 179 216 $ 1,480 $ 1,233 $ 912 $ 843 $ 944 $ 792 $ 1,175 $ 1,141 $ 536 $ 441 | 707 812 710 821 $ 1,397 $ 1,270 $ 950 $ 815 $ 907 $ 783 $ 1,141 $ 1,068 $ 490 $ 487 | ||||||||||
| 172 | 646 | |||||||||||
| 169 | 653 | |||||||||||
| $ | 1,865 | $ | 1,778 | |||||||||
| $ | 1,045 | $ | 1,057 | |||||||||
| $ | 998 | $ | 984 | |||||||||
| $ | 1,294 | $ | 1,232 | |||||||||
| $ | 867 | $ | 794 |
1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of IAMGOLD's MD&A.
2 Cost of sales, excluding depreciation, as disclosed in note 38 of IAMGOLD's annual consolidated financial statements expressed on an attributable ounce sold basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel).
FULL YEAR AND FOURTH QUARTER 2020 SUMMARY Financial Performance
•
| Revenues from continuing operations for 2020 were $1,241.7 million, up $176.4 million or 17% from | |
| the prior year. | The increase was primarily due to higher realized gold prices ($265.6 million), partially |
offset by lower sales volume at Rosebel ($52.1 million), Essakane ($20.4 million) and Westwood
| ($17.4 million). | Revenues from continuing operations for the fourth quarter 2020 were $347.5 million, | |
| up $54.1 million or 18% from the same prior year period. | The increase was primarily due to higher |
realized gold prices ($71.9 million) and higher sales volume at Essakane ($8.1 million), partially offset by lower sales volume at Westwood ($19.3 million) and Rosebel ($6.4 million).
•
| Cost of sales from continuing operations for 2020 was $991.4 million, down $4.3 million from the prior | |
| year. | The decrease was due to lower depreciation expense ($18.4 million), partially offset by higher |
royalties ($10.6 million) resulting from higher realized gold prices and higher operating costs ($3.5
| million). | Cost of sales from continuing operations for the fourth quarter 2020 was $263.5 million, up | |
| $11.2 million or 4% from the same prior year period due to | higher operating costs ($11.2 million) and |
royalties ($3.3 million), partially offset by lower depreciation expense ($3.3 million). Operating costs increased due to higher drawdowns of stockpiles compared to the reversal of previous impairments of ore stockpiles at Essakane and Rosebel in the fourth quarter 2019. The higher operating costs were partially offset by reduced costs at Westwood as the underground mine was put into care and maintenance following the seismic event. The increase in royalties was driven by higher realized gold prices.
•
| Depreciation expense from continuing operations for 2020 was $256.7 million, down $18.4 million or | |
| 7% from the prior year. | The decrease was primarily due to lower depreciation at Westwood resulting |
from the extended life of the underground blocks and impairment charge recorded in the fourth quarter 2019. Depreciation expense from continuing operations for the fourth quarter 2020 was $69.6 million, down $3.3 million or 5% from the same prior year period due to the same factor as the annual decrease partially offset by higher depreciation related to stockpiles.
- Income tax expense for 2020 was $44.1 million, up $13.7 million from the prior year. Income tax expense for 2020 comprised current income tax expense of $55.8 million (December 31, 2019 - $38.3 million) and deferred income tax recovery of $11.7 million (December 31, 2019 - deferred income tax recovery of $7.9 million). The increase in income tax expense was primarily due to changes to deferred income tax assets and liabilities, differences in the impact of fluctuations in foreign exchange, and differences in the level of taxable income in IAMGOLD’s operating jurisdictions from one period to the next.
- Net earnings from continuing operations attributable to equity holders for 2020 was $38.5 million, or $0.08 per share, compared to net loss from continuing operations of $373.3 million, or $0.80 per share in the prior year. The increase in net earnings was primarily due to lower impairment charges, net of reversal ($333.6 million) and higher gross profit ($180.7 million), partially offset by lower interest income, derivatives and other investment gains (losses) ($53.0 million), higher other expenses ($32.6 million) and higher income tax expense ($13.7 million). Net earnings from continuing operations
| $0.12 per share, | ||||
|---|---|---|---|---|
| compared to net loss from continuing operations of $303.8 million, or $0.65 per share from the same prior year period. The increase in net earnings was primarily due to lower impairment charges, net of | $0.65 | per share from the same | ||
| The increase in net earnings was primarily due to lower impairment charges, net of | ||||
| reversal ($321.1 million) and higher gross profit ($42.9 million). |
- Adjusted net earnings from continuing operations attributable to equity holders2 was $87.7 million, or $0.19 per share2, compared to adjusted net loss from continuing operations2 of $30.0 million, or $0.06 per share2 in the prior year. Adjusted net earnings from continuing operations attributable to equity holders2 for the fourth quarter 2020 was $19.1 million, or $0.04 per share2, compared to adjusted net loss from continuing operations2 of $3.8 million, or $0.01 per share2 in the same prior year period.
- Net cash from operating activities for 2020 was $347.6 million, down $15.4 million from the prior year. The decrease was primarily due to proceeds received in the prior year from the forward gold sale arrangement ($169.8 million), settlement of derivatives ($17.9 million) and higher movements in noncash working capital items and non-current ore stockpiles ($16.0 million), partially offset by higher earnings after non-cash adjustments ($189.4 million). Net cash from operating activities for the fourth quarter 2020 was $128.7 million, down $133.8 million from the same prior year period. The decrease was primarily due to proceeds received in the prior year from the forward gold sale arrangement ($169.8 million) and lower movements in non-cash working capital items and non-current ore stockpiles ($15.6 million), partially offset by higher earnings after non-cash adjustments ($54.5 million).
- Net cash from operating activities before changes in working capital2 for 2020 was $368.1 million, up
| $0.6 million from the | prior year. | Net cash from operating activities before c | |
| for the fourth qu | arter 2020 was $108.0 million, down $118.2 million from the |
•
| Mine-site free cash flow2 for 2020 was $223.2 million, up $164.5 million from the prior year. Mine-site | |
|---|---|
| free cash flow2 for the fourth quarter 2020 was $77.7 million, up $22.6 million from the same prior year | |
| period | . |
Financial Position
- Cash, cash equivalents, short-term investments and restricted cash were $986.1 million at
| December 31, 2020, | up | $121.3 million from December 3 |
| cash generated from operating activities ($347.6 million), |
in the Saramacca Project ($34.0 million) and net proceeds from the sale of Sadiola ($25.0 million), partially offset by spending on property, plant and equipment ($292.1 million).
Production and Costs
- Attributable gold production from continuing operations was 653,000 ounces for 2020, down 57,000 ounces from the prior year. The decrease was primarily due to lower throughput at Rosebel (41,000 ounces) resulting from a temporary labour disruption between June 12 and July 24, 2020, the underground mine at Westwood being placed on care and maintenance due to the seismic event in the fourth quarter and the government mandated province-wide COVID-19 related shutdown between March 15 and April 15, 2020 (12,000 ounces), and lower throughput at Essakane resulting from COVID-19 related restrictions (4,000 ounces). Attributable gold production from continuing operations was 169,000 ounces for the fourth quarter 2020, down 10,000 ounces from the same prior year period. The decrease was due to the seismic event at Westwood (15,000 ounces), lower throughput at Rosebel (4,000 ounces), partially offset by higher head grades at Essakane (9,000 ounces) due to mine sequencing.
- Attributable gold sales from continuing operations were 646,000 ounces for 2020, down 61,000 ounces from the prior year. The decrease was due to lower sales volume at Rosebel (35,000 ounces), Westwood (13,000 ounces), and Essakane (13,000 ounces). Attributable gold sales from continuing operations were 172,000 ounces for the fourth quarter 2020, down 12,000 ounces from the same prior year period. The decrease was due to lower sales volume at Westwood (14,000 ounces) and Rosebel (4,000 ounces), partially offset by higher sales volume at Essakane (6,000 ounces).
- Cost of sales1 per ounce from continuing operations for the fourth quarter and year ended 2020 of $1,045 and $1,057, respectively, were up 15% and 11% from the same prior year periods primarily due to lower sales volume in addition to the factors noted above.
•
| Total cash costs2 per ounce produced from continuing operations for the fourth quarter and year ended | |
| 2020 of $998 and $984, respectively, we | re up 6% and 8% from the same prior year periods due to |
lower production and factors noted above.
- All-in sustaining costs2 per ounce sold from continuing operations for the fourth quarter 2020 was $1,294, up 10% from the same prior year period due to higher cost of sales1 per ounce. All-in sustaining costs2 per ounce sold from continuing operations for the year ended 2020 was $1,232, up 8% from the prior year due to higher cost of sales1 per ounce, partially offset by lower sustaining capital expenditures.
Continued Commitment to Zero Harm®
- In 2020, IAMGOLD's global safety statistics show a 10% improvement from 2019 in the DART3 (days away, restricted, transferred duty) frequency rate, and a 23% improvement in the TRI (total recordable injuries) frequency rate. Through various programming, IAMGOLD continuously promotes a safe work environment.
Global COVID-19 Pandemic
- In response to the global COVID-19 pandemic, IAMGOLD has taken extensive steps to protect the health and safety of employees and contractors.
- As the global COVID-19 pandemic evolved, IAMGOLD adjusted and expanded the extensive measures previously implemented to protect the health and safety of employees, contractors and local communities. These measures included training on new procedures and sanitary measures recommended by Health Authorities, adjusted work schedules, physical distancing and protective
equipment, restricted site access, screening processes for employees, contractors and incoming supplies, use of thermal cameras to check temperatures before site entrance, and arranging additional transportation buses and on-site medical personnel. In addition, the number of living quarters at Essakane and Rosebel were increased. Initially the on-site workforce was limited to essential personnel only. As IAMGOLD’s COVID-19 health and safety protocols were embedded in the operations, the workforce was expanded with Essakane reaching normal capacity in the third quarter 2020 and Rosebel expected to reach normal capacity in the first quarter 2021.
ATTRIBUTABLE GOLD PRODUCTION AND COSTS
The table below presents gold production attributable to IAMGOLD and cost of sales1 per ounce sold.
Gold Production Cost of Sales1 (000s oz) ($ per ounce)
| Three months ended December 31, | 2020 | 2019 2018 | 2020 | 2019 2018 |
| Continuing operations Essakane (90%) Rosebel (95%) Westwood (100%) | 94 103 56 85 29 28 | $ 767 $ 763 1,108 856 1,019 1,086 | ||
| 103 | $ 993 | |||
| 52 | 1,135 | |||
| 14 | 1,083 | |||
| 169 | 179 216 | $ 1,045 | $ 912 $ 843 | |
| Cost of sales1 ($/oz) | $ 1,045 | $ 912 $ 843 |
Gold Production Cost of Sales1 (000s oz) ($ per ounce)
| Years ended December 31, | 2020 | 2019 2018 | 2020 | 2019 2018 |
| Continuing operations Essakane (90%) Rosebel (95%)2 Westwood (100%)3 | 368 405 251 287 91 129 | $ 884 $ 762 1,007 857 1,061 886 | ||
| 364 | $ 1,023 | |||
| 210 | 1,068 | |||
| 79 | 1,175 | |||
| 653 | 710 821 | $ 1,057 | $ 950 $ 815 | |
| Cost of sales1 ($/oz) | $ 1,057 | $ 950 $ 815 |
1 Cost of sales, excluding depreciation, as disclosed in note 38 of IAMGOLD's annual consolidated financial statements expressed on an attributable ounce sold basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel).
2 Cost of sales per ounce sold for Rosebel does not include the impact of normalization of costs for the year ended 2020 of $nil (2019 - $13 per ounce; 2018 - $nil).
3 Cost of sales per ounce sold for Westwood does not include the impact of normalization of costs for the year ended 2020 of $nil (2019 - $16 per ounce; 2018 - $nil).
The table below presents total cash costs2 per ounce produced and all-in sustaining costs2 per ounce sold.
Total Cash Costs1 All-in Sustaining Costs1,2 ($ per ounce produced) ($ per ounce sold)
| Three months ended December 31, | 2020 | 2019 2018 | 2020 | 2019 2018 |
| Continuing operations Essakane (90%) Rosebel (95%) Westwood (100%) | $ 848 $ 723 $ 1,074 774 1,007 1,102 | $ 1,006 $ 1,114 1,307 981 1,117 1,334 | ||
| $ 928 | 1,153 | |||
| 1,133 | 1,310 | |||
| 1,016 | 1,212 | |||
| $ 998 | $ 944 $ 792 $ | 1,294 | $ 1,175 $ 1,141 | |
| Cash costs, excluding royalties Royalties | $ 909 | $ 877 $ 742 67 50 | ||
| 89 | ||||
| Total cash costs1 | $ 998 | $ 944 $ 792 | ||
| All-in sustaining costs1,2 $ | 1,294 | $ 1,175 $ 1,141 |
Total Cash Costs1 All-in Sustaining Costs1,2 ($ per ounce produced) ($ per ounce sold)
| Years ended December 31, | 2020 | 2019 2018 | 2020 | 2019 2018 | ||
| Continuing operations Essakane (90%) Rosebel (95%)3 Westwood (100%)4 | $ 871 $ 718 958 831 911 884 | $ 1,028 $ 1,002 1,165 1,006 1,079 1,073 | ||||
| $ | 936 | $ | 1,098 | |||
| 1,017 | 1,224 | |||||
| 1,117 | 1,286 | |||||
| $ | 984 | $ 907 $ 783 | $ | 1,232 | $ 1,141 $ 1,068 | |
| Cash costs, excluding royalties Royalties | $ | 900 | $ 843 $ 730 64 53 | |||
| 84 | ||||||
| Total cash costs1 | $ | 984 | $ 907 $ 783 | |||
| All-in sustaining costs1,2 | $ | 1,232 | $ 1,141 $ 1,068 |
1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of IAMGOLD's MD&A.
2 All-in sustaining costs include corporate general and administrative costs. Refer to all-in sustaining costs reconciliation on page 38 of IAMGOLD's MD&A.
3 Total cash costs per ounce produced and all-in sustaining costs per ounce sold for Rosebel include the impact of normalization of costs for the year ended 2020 of $nil (2019 - $13 per ounce; 2018 - $nil).
4 Total cash costs per ounce produced and all-in sustaining costs per ounce sold for Westwood include the impact of normalization of costs for the year ended 2020 of $nil (2019 - $16 per ounce; 2018 - $nil).
2021 OUTLOOK
| IAMGOLD Full Year Attributable Guidance1 | 2021 |
| Essakane (000s oz) Rosebel (000s oz) Westwood (000s oz) | 365 – 390 |
| 220 – 245 | |
| 45 – 65 | |
| Total attributable production (000s oz) | 630 - 700 |
| Cost of sales2 ($/oz) | $980 - $1,030 |
| Total cash costs3,4 ($/oz) | $930 - $980 |
| All-in sustaining costs3,4 ($/oz) | $1,230 - $1,280 |
1 The outlook is based on 2021 full year assumptions with an average realized gold price of $1,750 per ounce, USDCAD exchange rate of 1.30, EURUSD exchange rate of 1.19 and average crude oil price of $47 per barrel.
2 Cost of sales, excluding depreciation, is on an attributable ounce sold basis (excluding the non-controlling interest of 10% at Essakane and 5% at Rosebel).
3 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of IAMGOLD's MD&A.
4 Consists of Essakane, Rosebel, and Westwood on an attributable basis.
GOLD PRODUCTION, COST OF SALES, TOTAL CASH COSTS AND ALL-IN SUSTAINING COSTS IAMGOLD expects 2021 attributable gold production to be in the range of 630,000 to 700,000 ounces. At Essakane, production is expected to be between 365,000 and 390,000 ounces, improving from 2020 levels, with increased recoveries and throughput anticipated benefiting from targeted mill improvements. At Rosebel, production is expected to be between 220,000 and 245,000 ounces, increasing from 2020 levels as the mining operations resume their operating cadence resulting in increased mill throughput with higher grade feed. Westwood production is expected to be between 45,000 to 65,000 ounces, below 2020 levels, with continuous mill feed supplied by the Grand Duc open pit near the mill complex and a stronger second half, which is expected to benefit from the safe restart of underground operations.
IAMGOLD expects cost of sales1 on an attributable ounce sold basis to be in the range of $980 to $1,030. IAMGOLD’s guidance on total cash costs2 and all-in sustaining costs2 for 2021 is expected to be in the range of $930 to $980 per ounce produced and $1,230 and $1,280 per ounce sold, respectively. All-in sustaining cost guidance for 2021 reflects ongoing efforts to improve productivity and optimize performance across the sites, while safeguarding operations from any resurgent impacts of the global COVID-19 pandemic. The guidance IAMGOLD provides is annual and quarterly variation is normal. Costs are expected to be lower in the second half of the year compared to the first half, benefitting from higher anticipated production in the second half. The guidance also considers the impact of IAMGOLD’s assumptions related to oil prices and foreign exchange rates as outlined in the Market Trends section.
ESSAKANE
IAMGOLD expects attributable production at Essakane in 2021 to be in the range of 365,000 to 390,000 ounces. Essakane expects to continue to optimize mining activity, lower unit costs and pursue mine and mill efficiencies as higher proportions of hard rock are processed.
Mining activity is expected to achieve elevated levels in 2021 supported through the use of a mining contractor to secure strategic pushback objectives providing greater access to higher grade ore zones. Essakane is also targeting improvements to the mine hauling fleet through upgrades that increase unit payloads and overall truck utilization. Maintenance activities are expected to sustain the improvements that have been realized in overall truck fleet availability and reliability, as well as increasing the drill fleet reliability.
Essakane is targeting completion of the mill upgrade in the first half of 2021 with improvements expected to de-bottleneck the crushing circuit which is expected to yield higher grinding capacities increasing overall throughput in addition to optimizing liner and grate configurations. Essakane expects to continue to realize improvements in gravity recoveries from the addition of a third gravity screen to mitigate any adverse effects encountered from ore pockets containing graphitic carbon.
These initiatives are designed to deliver on the 2021 production and cost targets, while positioning Essakane to pursue the evaluation of additional resources at satellite zones with the potential to add to the mine life of the Essakane operation.
ROSEBEL
IAMGOLD expects attributable production at Rosebel in 2021 to be in the range of 220,000 to 245,000 ounces. 2021 production guidance reflects the resumption of strategic pushbacks and mine development on the Rosebel concession, which were paused in 2020. These activities are intended to expose higher grade ore zones, while mining volumes at the Saramacca deposit continue to ramp up into higher grade zones. Cycle times are expected to be optimized along the newly completed haul road linking the Saramacca deposit to the Rosebel mill. While the Rosebel mining operations return to normal operating levels, the mill feed is expected to be supplemented through the processing of available ore stockpiles. Mill throughput is expected to return to normal operating levels in 2021 reflecting continuous mining activities in the year, with head grades reflective of higher grade material sourced from the Saramacca deposit. Hard rock run rates are targeted to increase in 2021 through improvements in both blast fragmentation and crusher performance. Additional improvements to the mill are planned including replacements in the process water piping network to improve throughput, as well as upgrades to the elution circuit designed to reduce liquid losses and improve mill recoveries.
WESTWOOD
IAMGOLD expects production at Westwood in 2021 to be in the range of 45,000 to 60,000 ounces benefitting from the safe restart of underground extraction activities expected in the second half of the year. Throughout 2021 the mill feed will be supplemented with lower grade surface material from the Grand Duc satellite pit nearby the mill complex.
INCOME TAXES
IAMGOLD expects to pay cash taxes in the range of $78 million to $88 million in 2021. In that regard, total cash taxes in 2021 include an estimated additional $8 million of tax to be paid by Rosebel, pursuant to a temporary 10% Government of Suriname “Solidarity Levy”, due to expire December 31, 2021, for which the Rosebel tax stability agreement only serves to reduce the extra levy from 10% to 9%, making the rate of tax for Rosebel 45% instead of 36% for the period February 1 through December 31, 2021. IAMGOLD is subject to income tax in several jurisdictions, at various tax rates. However, the consolidated effective tax rate for IAMGOLD is subject to significant fluctuations period over period due to: expenditures and revenues recognized only for financial accounting purposes or only for income tax purposes; income tax unrelated to the income or loss before taxes for the current period, such as withholding taxes; and adjustments for deferred tax purposes that are not directly related to the income or loss before taxes for the current period, such as foreign exchange rate changes. In addition, adjustments to deferred income tax assets and/or liabilities may be recorded during the year.
DEPRECIATION EXPENSE
Depreciation expense in 2021 is expected to be in the range of $295 million to $305 million.