IAMGOLD Reports Fourth Quarter and Year-End 2023 Results; Provides 2024 Outlook
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS FOURTH QUARTER AND YEAR-END 2023 RESULTS; PROVIDES 2024 OUTLOOK
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario, February 15, 2024 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the “Company”) today reported its financial and operating results for the fourth quarter and year ended December 31, 2023. The Company also provided updated outlook and operating guidance for 2024. Preliminary operating results for the fourth quarter and year ended 2023 were disclosed on January 22, 2024.
"In 2023, IAMGOLD made significant strides towards its goal of becoming a leading mid-tier gold producer with a long life, cornerstone asset in Canada," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "Last year saw significant changes in leadership across the organization to allow for a reinforced focus on operations as IAMGOLD prioritizes operational excellence, positions Côté Gold for success, and fosters the talent within the company. Operationally, 2023 was a strong year with attributable gold production from continuing operations of 465,000 ounces, which was at the top end of the guidance range of 410,000 to 470,000 ounces. We congratulate the Essakane team who achieved their targets while facing considerable challenges within the region, and the Westwood team who continue to execute on the plan to ramp up underground operations while employing industry-leading underground seismic monitoring and management."
"Côté Gold construction saw remarkable progress last year," continued Mr. Adams. "The project entered 2023 with construction approximately 64% complete and finished the year at 98% complete. This progress entailed significant advancement across the project scope, including the mechanical, piping, electrical and instrumentation of the plant, electrification of the site to the provincial hydro grid, initiation and ramp up of mining activities and continued heavy lifting to raise the tailings management facility. Mining activities advanced very well through the year with the successful roll out of Ontario’s first autonomous haulage fleet and stockpiling of approximately 5 million tonnes of ore. During this period, project costs tracked in line with the 2022 updated budget estimate."
"Côté Gold is poised to begin production next month. While first gold is on the horizon, our primary focus and efforts are on positioning the project for a steady ramp up of gold production through the year to achieve commercial production in the third quarter. We are now executing and ramping up commissioning activities, with crushing and screening successfully commissioned, and pre-commissioning ongoing on the HPGR and wet side of the plant. At steady run-rate, Côté Gold will be the third largest gold mine in Canada with an expected mine life exceeding 18 years and significant opportunities for growth."
HIGHLIGHTS:
Operating and Financial
| • Attributable gold production from continuing operations was 136,000 ounces for the fourth quarter and 465,000 ounces | |
| for the year, at the top end of the guidance range of 410,000 to 470,000 ounces. Essakane had a strong fourth quarter | |
| with attributable production of 108,000 ounces and year to date attributable production of 372,000 ounces, which was | |
| near the top end of the guidance range of 340,000 to 380,000 ounces. Westwood exceeded the top end of its guidance | |
| range of 70,000 to 90,000 ounces with 93,000 ounces produced for the year, including 12,400 ounces produced in | |
| December, a record since the mine restarted. |
| • In health and safety, for the year ended December 31, 2023, the Company reported a TRIFR (total recordable injuries | |
| frequency rate) of 0.69, an improved trend since last year. |
| • Revenues from continuing operations were $297.6 million in the fourth quarter from sales of 147,000 ounces (136,000 | |
| ounces on an attributable basis) at an average realized gold price1 of $2,005 per ounce and $987.1 million for the year | |
| from sales of 503,000 ounces (462,000 ounces on an attributable basis) at an average realized gold price of $1,955 | |
| per ounce. |
| • Cost of sales per ounce sold in the fourth quarter was $1,201, cash cost1 per ounce sold was $1,197 and all-in- | |
| sustaining-cost1 (“AISC”) per ounce sold was $1,735. Cash cost per ounce sold of $1,261 for the year was at the bottom | |
| end of the revised guidance range of $1,250 to $1,325 per ounce sold, and AISC per ounce sold of $1,783 for 2023 | |
| was within the revised guidance range of $1,750 to $1,825 per ounce sold. |
| • Net earnings (loss) and adjusted net earnings (loss) per share attributable to equity holders1 of $(0.02) and $0.06 for | |
| the fourth quarter, respectively. Net earnings (loss) and adjusted net earnings (loss) per share attributable to equity | |
| holders1 of $0.18 and $0.09 for the year ended December 31, 2023, respectively. |
| • Net cash from operating activities was $69.9 million for the fourth quarter and $144.0 million for the year. Net cash from | |
| operating activities, before movements in non-cash working capital and non-current ore stockpiles1 was $52.1 million | |
| for the fourth quarter and $158.9 million for the year. |
| • Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 from continuing operations was | |
| $70.2 million during the fourth quarter and $366.6 million for the year, and adjusted EBITDA1 was $110.6 million for the | |
| fourth quarter and $315.1 million for the year. |
| • Mine-site free cash flow1 from continuing operations was $28.9 million for the fourth quarter and $48.2 million for the | |
| year. |
| • The Company has available liquidity1 of $754.1 million comprised of cash and cash equivalents of $367.1 million and | |
| the available balance of the secured revolving credit facility (“Credit Facility”) of $387.0 million as at December 31, 2023. |
Côté Gold
| • As of December 31, 2023, construction progress at Côté Gold was estimated to be 98% complete, while overall project | |
| progress was approximately 95.5% complete which includes demobilization of construction teams and facilities. |
| • On a 100% basis at the UJV level, the Côté Gold Project incurred project expenditures1 of $242.9 million ($170.5 million | |
| at 70%) in the fourth quarter 2023 and $1,074.2 million ($752.3 million at 70%) for the full year. |
| • Since commencement of construction, $2.786 billion ($1.95 billion at 70%) of project expenditures has been incurred. | |
| The estimated remaining project expenditures, on a 100% basis, to achieve first gold is $179.0 million (± 5%) bringing | |
| total project expenditures up to first gold in line with the planned $2.965 billion ($2.08 billion at 70%) on an incurred | |
| basis. Post first gold, completion of certain infrastructure and earthworks projects are estimated to $40 million (± 5%). |
| • In addition to the project expenditures, an estimated $40 million (± 5%) of operating expenditures related to milling and | |
| surface costs are expected to be capitalized during commissioning and ramp-up until the project achieves commercial | |
| production. |
| • Production at Côté Gold, on a 100% basis, is expected to be between 220,000 and 290,000 ounces for the year. This | |
| estimate assumes that following initial gold production by the end of March, operations ramp-up in the second quarter | |
| 2024 and commercial production is achieved in the third quarter 2024. The Company expects Côté Gold operations to | |
| exit the year at a throughput rate of approximately 90% of nameplate. |
| • As Côté Gold achieves 90% of throughput, 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 estimated capital expenditures related to operations for 2024, excluding capital waste stripping, total $145 million | |
| (± 5%). Capitalized waste stripping is estimated to be $50 million (± 5%) for the year. |
| • IAMGOLD will continue to fund 60.3% of the operating costs and capital expenditures and will receive 60.3% of the | |
| gold production. |
Outlook – Essakane and Westwood
| • Consolidated 2024 attributable gold production for Essakane and Westwood is expected to be in the range of 430,000 | |
| to 490,000 ounces, with Essakane attributable gold production expected to be in the range of 330,000 to 370,000 | |
| ounces and Westwood gold production expected to be in the range of 100,000 to 120,000 ounces. |
| • Cash costs, excluding Côté Gold, are expected to be between $1,280 and $1,400 per ounce sold, and AISC per ounce | |
| sold, excluding Côté Gold, is expected to be in the range of $1,780 to $1,940 per ounce sold. |
Page | 2 of 35
Mineral Reserves and Resources
- Subsequent to quarter end, on February 15, 2024, the Company announced its updated Mineral Reserves and Mineral Resources statement as at December 31, 2023.
- Proven and Probable (“P&P”) Mineral Reserves (100% basis) of current assets increased 12% to 11 million ounces of gold in 302 Mt at 1.14 g/t Au (7.8 million ounces attributable).
- Measured and Indicated (“M&I”) Mineral Resources (100% basis) of current assets increased 16% to 25.9 million ounces of gold in 811.7 Mt at 0.99 g/t Au (18.3 million ounces attributable).
| • Updated Gosselin Mineral Resource estimate (100% basis) of 4.4 million Indicated gold ounces in 161.3 million tonnes | |
| (“Mt”) at 0.85 grams per tonne gold (“g/t Au”), and 3.0 million Inferred ounces (123.9 Mt at 0.75 g/t Au). This represents | |
| an estimated increase of 1.1 million ounces in Indicated and 1.3 million ounces in Inferred, representing a 32% and | |
| 74% increase respectively. |
Corporate
| • Subsequent to quarter end, on February 15, 2024, the Company announced that Murray Suey has been appointed to | |
| the Company's board of directors effective immediately. Mr. Suey has also been appointed as the Chair of the Audit and | |
| Finance Committee. |
| • On December 18, 2023, the Company announced that it entered into a forward gold sale arrangement and a partial | |
| amendment to one of its existing gold prepay arrangements. The net result of these arrangements is the effective | |
| transition of current gold delivery obligations out of the first quarter of 2024 into the following year, increasing cashflow | |
| in the first quarter 2024 by approximately $72.5 million assuming current gold prices. |
| • On November 9, 2023, the Company entered into a one year extension of its Credit Facility extending its maturity to | |
| January 31, 2026. As part of the extension, the Credit Facility was reduced to $425 million based on the Company's | |
| requirements for a senior revolving facility for its overall business. |
| • On November 9, 2023, the Company announced the retirement of Ian Ashby from the board of directors and the | |
| appointment of Anne Marie Toutant as an independent director. |
| • On September 21, 2023, the Company announced the retirement of Maryse Bélanger from the board of directors for | |
| personal reasons and other commitments. Immediately following Ms. Bélanger's retirement, the board appointed David | |
| Smith as Chair of the Board. |
Page | 3 of 35
QUARTERLY REVIEW
The following table summarizes certain operating and financial results for the three months ended December 31, 2023 (Q4 2023) and December 31, 2022 (Q4 2022) and the years ended December 31 for 2023, 2022 and 2021 and certain measures of the Company's financial position as at December 31, 2023, December 31, 2022, and December 31, 2021. Financial results of Rosebel include the one month period ended January 31, 2023, prior to the closing of the sale to Zijin Mining Group Co. Ltd. ("Zijin") that was announced on October 18, 2022.
| Q4 2022 | 2022 2021 | ||||
|---|---|---|---|---|---|
| Q4 2023 | 2023 | ||||
| Key Operating Statistics Gold production – attributable (000s oz) - Essakane - Westwood Total from continuing operations - Rosebel Total gold production – attributable (000s oz) Gold sales – attributable (000s oz) - Essakane - Westwood Total from continuing operations - Rosebel Total gold sales – attributable (000s oz) Cost of sales1 ($/oz sold) – attributable - Essakane - Westwood Total from continuing operations - Rosebel Total cost of sales1 ($/oz sold) – attributable Cash costs2 ($/oz sold) – attributable - Essakane - Westwood Total from continuing operations - Rosebel Total cash costs2 ($/oz sold) – attributable AISC2 ($/oz sold) – attributable - Essakane - Westwood Total from continuing operations - Rosebel Total AISC2 ($/oz sold) – attributable Average realized gold price2 ($/oz) - Continuing operations - Discontinued operations Total average realized gold price2 ($/oz) | 98 18 | 432 412 67 35 | |||
| 108 | 372 | ||||
| 28 | 93 | ||||
| 136 | 116 69 | 465 | 499 447 214 154 | ||
| — | 25 | ||||
| 136 | 185 97 18 | 490 | 713 601 440 408 66 34 | ||
| 107 | 372 | ||||
| 29 | 90 | ||||
| 136 | 115 68 | 462 | 506 442 215 148 | ||
| — | 24 | ||||
| 136 | 183 | 486 | 721 590 | ||
| $ 1,134 | $ 958 | $ 1,216 | $ 882 | $ 1,042 | |
| 1,446 | 2,230 | 1,600 | 2,093 | 2,252 | |
| $ 1,201 | $ 1,157 | $ 1,291 | $ 1,041 | $ 1,135 | |
| — | 1,085 | 949 | 1,269 | 1,674 | |
| $ 1,201 | $ 1,130 | $ 1,274 | $ 1,109 | $ 1,270 | |
| $ 1,132 | $ 1,043 | $ 1,181 | $ 899 2,068 | $ 945 | |
| 1,434 | 2,210 | 1,591 | 2,240 | ||
| $ 1,197 | $ 1,226 | $ 1,261 | $ 1,052 1,243 | $ 1,045 | |
| — | 1,083 | 949 | 1,545 | ||
| $ 1,197 | $ 1,173 | $ 1,246 | $ 1,109 $ 1,234 2,568 | $ 1,170 | |
| $ 1,548 | $ 1,456 | $ 1,521 | $ 1,074 | ||
| 2,049 | 2,639 | 2,344 | 2,600 | ||
| $ 1,735 | $ 1,741 | $ 1,783 | $ 1,508 1,753 | $ 1,281 | |
| — | 1,554 | 1,358 | 1,859 | ||
| $ 1,735 | $ 1,672 | $ 1,762 | $ 1,581 $ 1,721 1,793 | $ 1,426 | |
| $ 2,005 | $ 1,639 | $ 1,955 | $ 1,793 | ||
| — | 1,725 | 1,905 | 1,777 | ||
| $ 2,005 | $ 1,670 | $ 1,953 | $ 1,741 $ 1,790 |
1. Throughout this MD&A, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the consolidated financial statements.
2. Refer to the “Non-GAAP Financial Measures” disclosure at the end of this MD&A for a description and calculation of these measures.
Page | 4 of 35
| 2022 2021 | ||||||
|---|---|---|---|---|---|---|
| Q4 2023 | Q4 2022 | 2023 | ||||
| Financial Results ($ millions from continuing operations) Revenues Gross profit EBITDA1 | $ 958.8 $ 875.5 $ 147.9 $ 62.2 | |||||
| $ 297.6 | $ 207.2 | $ 987.1 | ||||
| $ 49.8 | $ 20.0 | $ 124.1 | ||||
| $ 70.2 | $ 105.4 | $ 381.0 | $ 300.4 | $ 27.1 | ||
| - Continuing operations | $ 70.2 | $ 57.8 | $ 366.6 | $ 292.3 | $ 216.6 | |
| - Discontinued operations | $ — | $ 47.6 | $ 14.4 | $ 8.1 | $ (189.5) | |
| Adjusted EBITDA1 | $ 110.6 | $ 83.6 | $ 338.5 | $ 434.0 | $ 355.7 | |
| - Continuing operations | $ 110.6 | $ 38.9 | $ 315.1 | $ 313.4 | $ 307.0 | |
| - Discontinued operations | $ — | $ 44.7 | $ 23.4 | $ 120.6 | $ 48.7 | |
| Net earnings (loss) attributable to equity holders | $ (9.4) | $ 24.0 | $ 94.3 | $ (70.1) | $ (254.4) | |
| - Continuing operations | $ (9.4) | $ (3.8) | $ 88.7 | $ (55.5) | $ (95.8) | |
| - Discontinued operations | $ — | $ 27.8 | $ — | $ (14.6) | $ (158.6) | |
| Adjusted net earnings (loss) attributable to equity | ||||||
| holders1 | $ 26.8 | $ 16.6 | $ 59.3 | $ 22.7 | $ 26.8 | |
| - Continuing operations | $ 26.8 | $ (9.0) | $ 44.7 | $ (35.6) | $ 25.0 | |
| - Discontinued operations | $ — | $ 25.6 | $ 14.6 | $ 58.3 | $ 1.8 | |
| 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 | ||||||
| $ (0.02) | $ (0.01) | $ 0.18 | $ (0.12) | $ (0.20) | ||
| $ 0.06 | $ (0.02) | $ 0.09 | $ (0.07) | $ 0.05 | ||
| $ 52.1 | $ 36.2 | $ 158.9 | $ 298.2 | $ 256.0 | ||
| $ 69.9 | $ 66.8 | $ 159.4 | $ 408.7 | $ 285.0 | ||
| - Continuing operations | $ 69.9 | $ 12.3 | $ 144.0 | $ 257.6 | $ 257.8 | |
| - Discontinued operations | $ — | $ 54.5 | $ 15.4 | $ 151.1 | $ 27.2 | |
| Mine-site free cash flow1 | $ 28.9 | $ 0.2 | $ 54.1 | $ 187.6 | $ 128.3 | |
| - Continuing operations | $ 28.9 | $ (21.9) | $ 48.2 | $ 167.2 | $ 199.6 | |
| - Discontinued operations | $ — | $ 22.1 | $ 5.9 | $ 20.4 | $ (71.3) | |
| Capital expenditures1,2 – sustaining Capital expenditures1,2 – expansion | $ 68.6 | $ 50.6 | $ 200.3 | $ 190.4 | $ 63.2 | |
| $ 194.0 | $ 135.5 | $ 733.9 | $ 540.3 $ 430.3 | |||
| Dec 31 | Dec 31 | Dec 31 | Dec 31 Dec 31 2022 2021 | |||
| 2023 | 2022 | 2023 | ||||
| Financial Position ($ millions) Cash and cash equivalents Long-term debt | $ 407.8 $ 552.5 $ 918.7 $ 464.4 $ (605.6) $ 16.3 $ 26.6 $ 498.3 | |||||
| $ 367.2 | $ 407.8 | $ 367.1 | ||||
| $ 830.8 | $ 918.7 | $ 830.8 | ||||
| Net cash (debt)1 | $ (649.5) | $ (605.6) | $ (649.5) | |||
| Available Credit Facility | $ 387.0 | $ 26.6 | $ 387.0 | |||
| 1. 2. | Refer to the “Non-GAAP Financial Measures” disclosure at the end of this MD&A for a description and calculation of these measures. | |||||
| Capital expenditures represent incurred expenditures for property, plant and equipment and exploration and evaluation assets, and exclude right-of-use assets. |
Page | 5 of 35
OUTLOOK
Côté Gold (100% basis)
Production
Production at Côté Gold is expected to be between 220,000 and 290,000 ounces for the year. This estimate assumes that following initial gold production, operations ramp-up early in the second quarter 2024 and commercial production is achieved in the third quarter 2024. The Company defines commercial production as an average throughput of the mill of 60% over a period of 30 days. The Company expects Côté Gold operations to exit the year at a throughput rate of approximately 90% of nameplate.
Costs
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 in the range of approximately $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce sold. For accounting purposes, revenue and cost of sales will be recognized from the commencement of production.
Capital Expenditures
The estimated remaining project expenditures to achieve first gold is $179.0 (± 5%) bringing the total project expenditures up to first gold to $2.965 billion on an incurred basis. Post first gold, completion of certain infrastructure and earthworks projects are estimated to be $40 million (± 5%).
In addition to the project expenditures, an estimated $40.0 million (± 5%) of operating expenditures related to milling and surface costs are expected to be capitalized during commissioning and ramp until the project achieves commercial production.
The estimated capital expenditures related to operations for 2024, excluding capital waste stripping, total $145 million (± 5%). These expenditures will be incurred from January to December and include:
- $60 million (± 5%) for the expansion of the tailings management facility as part of phase 2.
| • $50 million (± 5%) for equipment purchases that includes four additional haulage trucks, drills and other mobile | |
| equipment. | |
| • $35 million (± 5%) for capital projects that includes owners' costs. |
Capitalized waste stripping is estimated to be $50 million (± 5%) for the year.
Côté Gold's capital expenditures in 2024 are expected to be higher than the life-of-mine average as the mine progresses the completion of the construction of the full tailings dam footprint to support the life of mine. The classification of capital expenditures as either sustaining or expansion during 2024 will be dependent on the timing of achieving first gold and the nature of the expenditure.
The Company will continue to fund 60.3% of the operating costs and capital expenditures and will receive 60.3% of the gold production.
Essakane and Westwood
| Full Year Guidance 20241 | ||
|---|---|---|
| Actual 2023 | ||
| Essakane (000s oz) Westwood (000s oz) | 372 | 330 – 370 |
| 93 | 100 – 120 | |
| Total attributable production (000s oz)2 | 465 | 430 – 490 |
| Cost of sales2 ($/oz sold) Cash costs2,3 ($/oz sold) AISC2,3 ($/oz sold) Depreciation expense ($ millions) Income taxes4 paid ($ millions) | $1,291 | $1,280 – $1,400 |
| $1,261 | $1,280 – $1,400 | |
| $1,783 | $1,780 – $1,940 | |
| $216.0 | $270 – $285 | |
| $82.3 | $45 – $55 |
Page | 6 of 35
| The full year guidance is based on the following 2024 full year assumptions, before the impact of hedging: average realized gold price of $1,900 per ounce, USDCAD | |
|---|---|
| exchange rate of 1.32, EURUSD exchange rate of 1.10 and average crude oil price of $83 per barrel. | |
| 2. |
3. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
4. The income taxes paid guidance does not include the cash tax obligation arising as part of the Bambouk sales process. See "West Africa – Bambouk assets" for additional details.
Production Outlook
Attributable gold production, excluding Côté Gold, for 2024 is expected to be in the range of 430,000 to 490,000 ounces:
| • Essakane attributable gold production is expected to be in the range of 330,000 to 370,000 ounces. Production is | |
|---|---|
| expected to remain relatively stable throughout the year with mill throughput expected to operate at nameplate capacity | |
| and head grades are expected to decrease compared to the prior year as the mill feed is supplemented with stockpiled | |
| ore to sustain throughput rates as mining continues through Phase 5 and Phase 6 and into the initial benches of Phase | |
| 7. |
| • Westwood gold production is expected to be in the range of 100,000 to 120,000 ounces in 2024, with an increasing | |
| proportion of underground material milled as the underground mine continues to access higher grade areas. Production | |
| levels are expected to be higher in the first half of 2024 due to mine sequencing in the underground mine and as | |
| supplementary mill feed from the Fayolle open pit is replaced with lower grade material from Grand Duc in the second | |
| half of the year. |
Costs Outlook
| Consolidated cash costs per ounce sold for Essakane and Westwood are estimated to be between $1,280 and $1,400 per | |
|---|---|
| ounce sold and AISC estimated to be in the range of $1,780 to $1,940 per ounce sold. Unit costs at Westwood are expected | |
| to decrease from 2023 levels due to increasing production levels, a planned reduction in rehabilitation costs in the | |
| underground mine, and lower development expenses at the short life Fayolle satellite deposit. This is expected to be offset | |
| by an increase in unit costs at Essakane due to higher planned maintenance activities, the continued pressures on the | |
| landed cost of fuel at the operation, and the application of increased royalty rates announced by the Burkina Faso | |
| government in the fourth quarter 2023, while production levels are expected to remain the same with an increase in mill | |
| throughput offset by a slightly lower grade mill feed | . |
While inflationary pressures are easing, pricing for certain main consumables including cyanide and explosives are expected to remain in line with the levels of 2023, while the price of certain other consumables such as grinding media are expected to decrease.
Capital Expenditures
Sustaining capital expenditures¹ for 2024 are expected to be approximately $215 million (± 5%) of which the majority is related to capitalized stripping at Essakane and underground development at Westwood, with an additional $5 million (± 5%) in expansion capital¹ expected at Essakane.
| ($ millions) | Actual 20231 | Full Year Guidance 20242 | ||
|---|---|---|---|---|
| Sustaining3 | Expansion | Total | Sustaining3 Expansion Total | |
| Essakane (±5%) Westwood (±5%) | $ 134.9 | $ 1.7 | $ 136.6 | $ 150 $ 5 $ 155 65 — 65 |
| 65.0 | 0.6 | 65.6 | ||
| Corporate | $ 199.9 | $ 2.3 | $ 202.2 | 215 5 220 — — — |
| 0.4 | — | 0.4 | ||
| Total4 | $ 200.3 | $ 2.3 | $ 202.6 | $ 215 $ 5 $ 220 |
1. 100% basis, unless otherwise stated.
2. Capital expenditures guidance (±5%) at Essakane and Westwood.
| Sustaining capital includes capitalized stripping of (i) | $32.3 million for Essakane and $1.7 million for Westwood | in the fourth quarter 2 | 023, (ii) $73.8 million for |
| Essakane and $5.8 million for Westwood for 2023, and (iii) $100 million for Essakane and $4 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.
Page | 7 of 35
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) | Actual 2023 | Full Year Guidance 20241 | ||
|---|---|---|---|---|
| Capitalized | Expensed | Total | Capitalized Expensed Total | |
| Exploration projects – greenfield Exploration projects – brownfield1 | $ — | $ 11.0 | $ 11.0 | $ — $ 15 $ 15 3 2 5 |
| 4.4 | 1.9 | 6.3 | ||
| $ 4.4 | $ 12.9 | $ 17.3 | $ 3 $ 17 $ 20 |
1. The full year guidance does not include expenditures for the Bambouk Assets sales currently held for sale. See "West Africa – Bambouk Assets" for additional details.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
IAMGOLD is committed to maintaining its culture of accountable mining through high standards of ESG practices and the principle of Zero Harm® in every aspect 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.
The Company issued its 16th annual Sustainability Report on October 16, 2023, highlighting progress and achievements in 2022 across a range of material topics and indicators. ESG policies, systems and practices are embedded throughout the business and the Company reports annually on its ESG performance via its Global Reporting Initiative (“GRI”) and Sustainability Accounting Standards Board (“SASB”) aligned Sustainability Report. The Company has also released its inaugural Climate Action Report in accordance with the Task Force on Climate-Related Financial Disclosures (“TCFD”) recommendations on December 14, 2023. The Climate Action Report focuses on the Company’s target of achieving a 30% absolute reduction in Scopes 1 and 2 greenhouse gas (“GHG”) emissions by 2030.
Health and Safety
Health and safety are core to the Company’s relentless pursuit of its Zero Harm® vision. Through various prevention programs, the Company continuously promotes a safe work environment and a wellness program at all sites. The DARTFR (days away, restricted, transferred duty frequency rate) was 0.39 as of the end of 2023 (compared to 0.31 as of the end of 2022). The TRIFR (total recordable injuries frequency rate) was 0.69 as of the end of 2023 (compared to 0.76 as of the end of 2022). At Côté Gold, total project hours worked reached 14.8 million hours with a LTIFR (lost time injury frequency rate) of 0.12.
The Essakane team achieved historical Health & Safety performance in 2023, with a level of 0.06 for DARTFR and 0.18 for TRIFR. The results, which matched (TRIFR) and surpassed (LTIFR) the site’s best-ever results, were supported by exceptional performance of proactive or ‘leading’ H&S activities such as safety and management inspections.
Environment
At Essakane, progress continued on Falagountou’s Closure Plan, including collaborative work with INERA (Institute of Environment and Agricultural Research) on the best practice phytoremediation of the closed mine site. Essakane conducted a quarterly review of the Asset Retirement Obligation with the corporate team and is also working on a water management study as part of the Essakane Closure Plan.
The 2021 Closure Plan update at Westwood was reviewed by the Quebec Ministry of Natural Resources and Forestry (“MRNF”) and IAMGOLD submitted an amended Closure Plan on September 8, 2023, following this review process. Water recycling projects have been initiated to reduce water withdrawal from the Bousquet River. Westwood is continuing to implement a biodiversity project to develop snake hibernacula and swallows’ nests.
At Côté Gold, biodiversity monitoring studies were completed for birds and bats. At Mattagami Lake, a fish population study was also conducted as part of the Project’s Fisheries Offsetting Plan. The first cycle of environmental effects monitoring was completed per the Metal and Diamond Mining Effluent Regulations.
Social and Economic Development
The Company is continuously exploring opportunities for investing in and partnering with the communities impacted by its continuing operations.
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At Essakane, the Company continued its participation in the Mining Fund for Local Development in Burkina Faso, a program established by the government, pursuant to which the Company committed to contribute 1% of its annual revenues. To support local communities in the fight against the latest Dengue fever outbreak, the Company supported the distribution of test kits and supplies to surrounding medical clinics. In December, Essakane provided donated food kits to 1,000 vulnerable households in the Essakane mine impact zone. The Company also invested in several agricultural projects during the quarter in the communes of Falagountou and Gorom-Gorom.
At Côté Gold, various meetings were held in support of Impact Benefit Agreement (“IBA”) implementation with First Nation Partners ("FNP") Mattagami and Flying Post and the Métis Nation of Ontario, Region 3. Côté Gold supported several events and initiatives during the quarter through community investments, donations, and sponsorships.
The Westwood team supported seven community initiatives during the quarter. This included support for lodging for people attending cancer treatments, scholarships for CEGEP Abitibi and UQAT, as well as support for various cultural and sporting events.
Equity, Diversity and Inclusion
The Company unequivocally condemns inequity, discrimination and hatred in all its forms. One of the Company’s values is to conduct itself with respect and to embrace diversity. The Company has established an Equity, Diversity and Inclusion (“EDI”) Steering Committee to further enhance the Company’s strong commitment to these important values through data collection, education, awareness and action planning at the enterprise level. The Company completed a diagnostic evaluation of its EDI status, and the findings and recommendations (global and site specific) were rolled out across the Company to develop action plans. The Company is a sponsor of various initiatives aimed at promoting female business owners and entrepreneurs in the mining sector, in addition to hiring under-represented groups within IAMGOLD. The Company is also an active contributor to the Mining Association of Canada’s TSM protocol on EDI and is working closely with Mining HR Canada on various initiatives, including with the representation of a member of management as Chair of the “Safe Workplaces for All” council.
In addition, IAMGOLD was recognized as a GTA Top 100 Employer for its efforts on various inclusion, engagement and culture work.
Governance
The Board of Directors of IAMGOLD (the “Board”) adopted new diversity and renewal guidelines in 2021, reflecting governance best practices. Regarding diversity, the Board agreed that its membership should comprise, at a minimum, the greater of (i) two and (ii) 30% female directors. Highlights from the fourth quarter include:
| • On November 9, 2023, the Company announced the retirement of Ian Ashby from the Board and the appointment of | |
| Anne Marie Toutant as an independent director. |
| • On December 31, 2023, Craig MacDougall, Executive Vice President Growth and Oumar Toguyeni, Senior Vice | |
| President External Affairs and Sustainability, retired from their positions at the Corporation. |
- On February 15, 2024, the Company announced that Murray Suey has been appointed to the Company’s board of directors effective immediately. Mr. Suey has also been appointed as the Chair of the Audit and Finance Committee.
Currently, women represent 44% of the directors and 50% of the independent directors. The average tenure of directors on the Board is less than two years.
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OPERATIONS – CONTINUING
Essakane Mine (IAMGOLD interest – 90%)1 | Burkina Faso
| Q4 2022 | 2022 2021 | |||
|---|---|---|---|---|
| Q4 2023 | 2023 | |||
| Key Operating Statistics1 Ore mined (000s t) Grade mined (g/t) Waste mined (000s t) Material mined (000s t) – total Strip ratio2 Ore milled (000s t) Head grade (g/t) Recovery (%) Gold production (000s oz) – 100% Gold production (000s oz) – attributable 90% Gold sales (000s oz) – 100% Average realized gold price3 ($/oz) | 1,691 1.70 8,795 10,486 5.2 2,788 1.35 89 108 98 108 $ 1,702 | 12,585 16,015 1.20 0.91 37,100 44,405 49,685 60,420 2.9 2.8 11,632 12,948 1.44 1.31 89 84 480 457 432 412 489 453 $ 1,804 $ 1,794 | ||
| 3,217 | 9,586 | |||
| 1.42 | 1.35 | |||
| 9,693 | 33,763 | |||
| 12,910 | 43,349 | |||
| 3.0 | 3.5 | |||
| 3,116 | 11,283 | |||
| 1.32 | 1.26 | |||
| 91 | 90 | |||
| 120 | 413 | |||
| 108 | 372 | |||
| 118 | 413 | |||
| $ 2,009 | $ 1,957 | |||
| Financial Results ($ millions)1 Revenues4 Cost of sales4 Production costs (Increase)/decrease in finished goods Royalties Cash costs3 Sustaining capital expenditures3 Expansion capital expenditures3 Total capital expenditures Earnings from operations | $ 184.1 103.4 | $ 883.3 $ 813.9 431.2 472.1 | ||
| $ 238.3 | $ 809.6 | |||
| 134.3 | 502.4 | |||
| 112.2 | 94.9 (1.0) 9.5 | 458.6 | 382.6 433.1 4.8 (1.7) 43.8 40.7 | |
| 6.3 | (0.8) | |||
| 15.8 | 44.6 | |||
| 134.1 | 112.7 42.4 1.3 43.7 29.0 | 488.0 | 439.5 $ 428.3 158.8 51.2 3.8 84.4 162.6 135.6 219.5 83.4 | |
| 51.7 | 134.9 | |||
| 0.3 | 1.7 | |||
| 52.0 | 136.6 | |||
| 14.3 | 92.0 | |||
| Performance Measures5 Cost of sales excluding depreciation ($/oz sold) Cash costs3 ($/oz sold) AISC3 ($/oz sold) | $ 958 $ 1,043 $ 1,456 | $ 882 $ 1,042 $ 899 $ 945 $ 1,234 $ 1,074 | ||
| $ 1,134 | $ 1,216 | |||
| $ 1,132 | $ 1,181 | |||
| $ 1,548 | $ 1,521 |
1. 100% basis, unless otherwise stated.
2. Strip ratio is calculated as waste mined divided by ore mined.
3. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
4. As per note 36 of the consolidated financial statements for revenues and cost of sales. Cost of sales is net of depreciation expense.
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
Essakane delivered its highest quarterly production for the year with 108,000 attributable ounces produced in the fourth quarter, finishing the year with 372,000 attributable ounces produced, at the upper end of the guidance range of 340,000 to 380,000 ounces. For the quarter, this is an increase of 10,000 ounces or 10% from the same prior year period, primarily due to increased throughput, benefiting from improvements to increase throughput capacity at the mill. For the year, this is a decrease of 60,000 attributable ounces or 14% from the record levels achieved in 2022, primarily due to lower grades in accordance with the planned mill throughput.
| Mining activity of 12.9 million tonnes in the | fourth quarter | 2023 was higher by 2.4 million tonnes or 23% compared to the | ||
| same prior year period, resulting in mining activity of 43.3 million tonnes for the year, 6.3 million tonnes or 13% | lower | than | ||
| the prior year. The lower mining activity for the year is due to periodic operational interruptions experienced in the first and | ||||
| third quarters due to supply chain constraints related to the security environment in the country, which began in the fourth | ||||
| quarter 2022. During the fourth quarter 2023, the supply chain constraints lessened allowing the mining fleet to operate at |
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full capacity, including mining the deeper benches of Phase 5 and the resumption of stripping activities in Phases 6 and 7 in support of the 2024 and 2025 ore supply. At quarter end, sufficient fuel and other consumables were on hand to ensure normal operating levels for a minimum of 50 days.
Mill throughput in the fourth quarter 2023 was 3.1 million tonnes at an average head grade of 1.32 g/t, 12% higher and 2% lower than the same prior year period, respectively. For the full year, mill throughput was 11.3 million tonnes at an average head grade of 1.26 g/t, 3% and 13% lower than the prior year, respectively. During the quarter, the increase in throughput was partially due to the successful implementation and ramp-up of the MP 1250 crusher that was installed in anticipation of processing of higher proportions of hard rock as the pit deepens. The decrease in head grade for the quarter and the year is due to higher proportions of stockpiled ore milled in accordance with the mine plan, compared to the same prior year periods.
| The mill achieved recoveries of 91% in the | fourth quarter | 2023, 2% higher than the same prior year period, benefiting from |
| the successful installation and commissioning of three new screens in the gravity circuit. Plant availability in the quarter was | ||
| higher in the current year period at 94.8% compared to 88.6% in the prior year period. |
The security situation in Burkina Faso continues to be a focus for the Company. Terrorist-related incidents are still occurring in the country, the immediate region of the Essakane mine and, more broadly, the West African region. The security situation in Burkina Faso and its neighbouring countries continues to apply pressures to supply chains, although with a reduced impact in the fourth quarter 2023. The Company continues to take proactive measures to ensure the safety and security of in-country personnel and is constantly adjusting its protocols and the activity levels at the site according to the security environment. The Company continues to invest in the security and supply chain infrastructure in the region and at the mine site. It is also incurring additional costs to bring employees, contractors, supplies and inventory to the mine.
The Company announced that the Essakane Proven and Probable Mineral Reserves, on a 100% basis, increased an estimated 7% from the prior year to 2.2 million ounces (2.0 million ounces attributable) at an average grade of 1.10 g/t Au. Probable Mineral Reserves (open pit) were estimated, on a 100% basis, at 1.8 million ounces (1.6 million ounces attributable) at an average grade of 1.32 g/t Au. (see news release dated February 15, 2024).
On October 27, 2023, the President of Burkina Faso signed a decree resulting in an increase to royalty rates on gold sales occurring at prices above $1,500 per ounce. The decree increases the royalty from the previous rate of 5% on all gold sold over $1,500 per ounce to new rates applied at 6% on gold sold between $1,500 and $1,700 per ounce, 6.5% on gold sold between $1,700 and $2,000 per ounce, and 7% for gold sold exceeding $2,000 per ounce.
In 2018, the Attorney General of Burkina Faso initiated proceedings against Essakane S.A. and certain of its employees relating to its practice at that time of exporting carbon fines containing gold and silver from Burkina Faso to a third-party facility in Canada for processing and eventual sale. This matter proceeded to trial and a settlement agreement was ultimately entered into by the parties, as Essakane S.A. determined it to be in the best interest of stakeholders to settle the proceedings acknowledging immaterial regulatory violations. The settlement consideration agreed to with the Government of Burkina Faso to fully and finally resolve the proceedings consisted of a forfeiture, direct to the State, of the embargoed carbon fines shipment and an additional monetary penalty of $15 million paid directly to the State.
Financial Performance
Production costs of $112.2 million were higher by $17.3 million or 18% primarily due to increased mining and milling activity as the operation was able to operate at full capacity during the fourth quarter 2023, compared to the fourth quarter 2022 which was impacted by the supply chain constraints as described above. Cost pressures as a result of the security situation and inflation continued during the quarter, resulting in higher landed fuel and other key consumable prices, transportation and camp costs.
Cost of sales, excluding depreciation, of $134.3 million was higher by $30.9 million or 30% primarily due to higher production costs described above, an NRV write-up of $9.6 million recorded in the fourth quarter 2022, and increased royalties due to higher gold prices and the new royalty rate structure described above. Cost of sales per ounce sold, excluding depreciation, of $1,134 was higher by $176 or 18% primarily due to the items noted above, partially offset with higher production and sales volumes.
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Cash costs of $134.1 million were higher by $21.4 million or 19% due to the higher production costs and royalties noted above. Cash costs per ounce sold of $1,132 were higher by $89 or 9%, primarily due to the higher production costs and royalties noted above, partially offset with higher production and sales volumes.
AISC per ounce sold of $1,548 was higher by $92 or 6% primarily due to higher cash costs per ounce sold.
Total capitalized stripping of $32.3 million was higher by $2.1 million or 7% primarily due to higher mining costs resulting from the increased landed cost of fuel.
Sustaining capital expenditures, excluding capitalized stripping, of $19.4 million included capital spares of $6.1 million, mobile and mill equipment of $5.1 million, tailings management of $1.9 million, resource development of $1.2 million, generator overhaul $0.4 million and other sustaining projects of $4.7 million. Expansion capital expenditures of $0.3 million were incurred in support of fulfilling the community village resettlement commitment.
2024 Outlook
Essakane attributable production is expected to be in the range of 330,000 to 370,000 ounces. The mill is expected to operate at nameplate capacity and head grades are expected to decrease compared to the prior year as the mill feed is supplemented with stockpiled ore to sustain throughput rates as mining continues through Phase 5 and Phase 6 and into the initial benches of Phase 7.
Cash costs at Essakane are expected in the range of $1,300 to $1,400 per ounce sold and AISC per ounce sold are expected in the range of $1,675 to $1,800, higher when compared to 2023 costs due to a scheduled increase in planned maintenance activities, continued pressures on the landed cost of fuel at the operation, and the application of increased royalty rates announced by the Burkina Faso government in the fourth quarter 2023. Additionally, as the mine resumes capitalized waste stripping with full mining capacity, the AISC per ounce sold for 2024 is expected to increase in line with the increase in the associated sustaining capital before stripping activities and costs decrease in line with the mine plan from 2025 and 2026 onwards.
Capital expenditures are expected to be approximately $155 million, compared to $136.6 million in 2023, and primarily consist of capitalized waste stripping to provide access to ore as per the 2024 and 2025 production plan, assuming no significant disruptions in the supply chain resulting from the security situation described above.
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