IAMGOLD Reports Second Quarter 2024 Results
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS SECOND QUARTER 2024 RESULTS
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario, August 8, 2024 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the “Company”) today reported its financial and operating results for the second quarter ended June 30, 2024.
“We are very proud of our achievements during the first half of the year at IAMGOLD," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "Essakane and Westwood teams have continued to deliver strong operational results, which has positioned the company to beat our production and cost guidance targets set at the beginning of the year. These achievements have been made while delivering our commitment to health and safety, and I want to commend the Essakane team, which recently surpassed a record health and safety milestone of 5 million hours worked without a recordable safety incident.”
“At Côté Gold, last week we announced the mine had reached commercial production, a significant achievement only four months after pouring our initial gold bar on March 31 of this year. We are very impressed with the progress to date and are very positive on what the milestones achieved so far mean for the future of the project. Early in the second quarter, our focus was on stress testing the capability of the plant to handle near nameplate throughput rates. The primary components of the plant responded well, proving the installed capacity of the major equipment and processing circuits to handle design rates. The operating teams have made significant strides over the last six weeks on increasing the availability of the plant, with a full production at nameplate of 36,000 tonnes milled achieved on August 1st. During the ramp up exercise, the company has identified key improvements and optimizations needed in the crushing and screening circuits of the dry side, which will be implemented in September in support of the goal of reaching the 90% throughput rate exiting this year.”
“The financial position of the company continues to improve, with over $915 million in total liquidity and increased production guidance this year in a strong gold price environment. With commercial production at Côté behind us and our financing completed in May, IAMGOLD is well funded to buy back the 10% interest in the mine in November – in order to increase our ownership to 70% of what we believe to be among the top gold mines in Canada."
HIGHLIGHTS:
Operating and Financial
- Attributable gold production was 166,000 ounces in the second quarter and 317,000 ounces year-to-date ("YTD"), driven by strong performance at Essakane and Westwood, as well as the first quarter of production at Côté Gold.
- Côté Gold reached commercial production on August 2, 2024. During the month of July, the operation processed over 620,000 tonnes and on August 1, 2024, the plant achieved a record daily high throughput rate of 36,000 tonnes per day. The project continues to be well positioned to achieve the goal of 90% throughput by the end of the year.
- Production guidance at Essakane and Westwood has been increased to 495,000 to 540,000 ounces, up from the previous guidance range of 430,000 to 490,000 ounces.
- Côté Gold production this year is expected to be on the lower end of the guidance range of 130,000 to 175,000 ounces on a 60.3% basis (220,000 to 290,000 ounces at 100%) as improvements to mill availability are made during the ramp-up of operations.
- The cash cost1 guidance range, excluding Côté Gold, is revised downwards from $1,280 to $1,400 per ounce sold to $1,175 to $1,275 per ounce sold and all-in-sustaining-cost1 (“AISC”) guidance range is also revised downwards from $1,780 to $1,940 per ounce sold to $1,700 to $1,825 per ounce sold.
- For Côté Gold, the company continues to expect that as Côté exits the year at 90% throughput, cash costs at that time will be in the range of approximately $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce.
- Revenues were $385.3 million from sales of 167,000 ounces at an average realized gold price1 of $2,294 per ounce and $724.2 million YTD from sales of 330,000 ounces at an average realized gold price of $2,187 per ounce.
- Essakane and Westwood cost of sales per ounce sold was $1,099 ($1,077 YTD), cash cost1 per ounce sold was $1,094 ($1,073 YTD) and AISC per ounce sold was $1,617 ($1,553 YTD).
- Côté Gold cost of sales and cash cost1 per ounce sold, net of capitalized operating costs, was $839 and $836 per ounce sold, respectively.
- Net earnings and adjusted net earnings per share attributable to equity holders1 of $0.16 and $0.16 for the second quarter, respectively; YTD net earnings and adjusted net earnings per share attributable to equity holders1 of $0.27 and $0.27, respectively.
- Net cash from operating activities was $160.1 million for the second quarter and $237.2 million YTD. Net cash from operating activities, before movements in working capital and non-current ore stockpiles1, was $169.2 million for the second quarter and $312.0 million YTD.
- Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 was $189.9 million during the second quarter ($344.0 million YTD) and adjusted EBITDA1 was $191.1 million during the second quarter ($343.6 million YTD).
- Mine-site free cash flow1, excluding Côté Gold, was $140.0 million for the second quarter and $186.2 million YTD.
- The Company has available liquidity1 of $915.7 million, mainly comprised of cash and cash equivalents of $511.4 million and the available balance of the secured revolving credit facility (“Credit Facility”) of $403.3 million as at June 30, 2024.
- In health and safety, for the quarter ended June 30, 2024, the Company reported a TRIFR (total recordable injuries frequency rate) of 0.60, an improved trend since last year.
Corporate
- On May 24, 2024, the Company announced the closing of a “bought deal” equity financing of 72.0 million common shares of the Company at a price of $4.17 per common share for aggregate gross proceeds of approximately $300.2 million ($287.5 million net of fees and transaction costs). The Company intends to use the proceeds towards the repurchase of the 9.7% interest from Sumitomo on November 30, 2024, which was transferred to Sumitomo in 2023 as part of the Joint Venture Funding and Amending Agreement. IAMGOLD’s ownership interest in the Côté Gold Mine following the repurchase would then return to 70%. See “Côté Gold”.
- On April 4, 2024, the Company announced that it entered into a gold prepayment arrangement and a partial amendment to one of its existing gold prepayment arrangements. The net result of these arrangements was the effective transition of the cash impact of the current gold delivery obligations out of the second quarter of 2024 into the same period in the following year, thereby increasing cashflow in the second quarter 2024 by approximately $74.1 million. See “Liquidity and Capital Resources”.
- On July 9, 2024, the Company finalized an insurance claim of $27.3 million relating to the property and business interruption loss arising from the October 30, 2020, seismic event in the Westwood mine. The proceeds are expected to be received in the third quarter of 2024.
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QUARTERLY REVIEW
For more details and the Company's overall outlook for 2024, see “Outlook”, and for individual mine performance, see “Quarterly Updates”. The following table summarizes certain operating and financial results for the three months ended June 30, 2024 (Q2 2024) June 30, 2023 (Q2 2023) and the six months ended June 30 (or YTD) 2024 and 2023 and certain measures of the Company's financial ("discontinued operations") position as at December 31, 2023, and June 30, 2023. Financial results of Rosebel include the one-month period ended January 31, 2023, prior to the closing of the sale to Zijin.
| Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | |
|---|---|---|---|---|
| Key Operating Statistics ($ millions from continuing operations) Gold production – attributable (000s oz) - Essakane - Westwood Subtotal - Côté Gold (60.3%) Total gold production – attributable (000s oz) Gold sales – attributable (000s oz) - Essakane - Westwood Subtotal - Côté Gold (60.3%) Total gold sales – attributable (000s oz) Cost of sales1 ($/oz sold) – attributable - Essakane - Westwood Subtotal - Côté Gold Total cost of sales1 ($/oz sold) – attributable Cash costs2 ($/oz sold) – attributable - Essakane - Westwood Subtotal - Côté Gold Total cash costs2 ($/oz sold) – attributable AISC2 ($/oz sold) – attributable - Essakane - Westwood Subtotal - Côté Gold Total AISC2 ($/oz sold) – attributable Average realized gold price2,3($/oz) | 88 19 | 180 40 | ||
| 111 | 229 | |||
| 35 | 67 | |||
| 146 | 107 — | 296 | 220 — | |
| 20 | 21 | |||
| 166 | 107 93 18 | 317 | 220 181 39 | |
| 107 | 224 | |||
| 35 | 68 | |||
| 142 | 111 — | 292 | 220 — | |
| 14 | 14 | |||
| 156 | 111 | 306 | 220 | |
| $ 1,084 | $ 1,274 | $ 1,042 | $ 1,171 | |
| 1,142 | 1,909 | 1,191 | 1,773 | |
| $ 1,099 | $ 1,376 | $ 1,077 | $ 1,277 | |
| 839 | — | 839 | — | |
| $ 1,076 | $ 1,376 | $ 1,066 | $ 1,277 | |
| $ 1,081 | $ 1,273 | $ 1,040 | $ 1,122 1,761 | |
| 1,131 | 1,896 | 1,182 | ||
| $ 1,094 | $ 1,372 | $ 1,073 | $ 1,234 — | |
| 836 | — | 836 | ||
| $ 1,071 | $ 1,372 | $ 1,062 | $ 1,234 $ 1,377 2,689 | |
| $ 1,481 | $ 1,587 | $ 1,393 | ||
| 1,663 | 2,903 | 1,747 | ||
| $ 1,617 | $ 1,912 | $ 1,553 | $ 1,719 | |
| $ 1,617 | $ 1,912 | $ 1,553 | $ 1,719 $ 1,933 | |
| $ 2,294 | $ 1,973 | $ 2,187 | ||
| Key Operating Statistics ($ millions from Rosebel discontinued operation) Gold production – attributable (000s oz) Gold sales – attributable (000s oz) Cost of sales1 ($/oz sold) – attributable Cash costs2 ($/oz sold) – attributable AISC2 ($/oz sold) – attributable | 25 24 | |||
| — | — — | — | ||
| — | — | |||
| $ — | $ — | $ — | $ 949 | |
| $ — | $ — | $ — | $ 949 | |
| $ — | $ — | $ — | $ 1,358 |
1. Throughout this MD&A, cost of sales, excluding depreciation, is disclosed in the segment note in the consolidated interim financial statements.
2. Refer to the “Non-GAAP Financial Measures” disclosure at the end of this MD&A for a description and calculation of these measures.
3. The average realized gold price in the second quarter 2024 excluding the impact of the 2022 Prepay Arrangement (as defined below) was $2,360 per ounce and $2,227 per ounce YTD 2024.
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| Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | |
|---|---|---|---|---|
| Financial Results ($ millions from continuing operations) Revenues Gross profit EBITDA1 | $ 465.0 $ 69.7 | |||
| $ 385.3 | $ 238.8 | $ 724.2 | ||
| $ 150.7 | $ 26.6 | $ 256.4 | ||
| $ 189.9 | $ 166.2 | $ 344.0 | $ 249.0 | |
| - Continuing operations | $ 189.9 | $ 166.2 | $ 344.0 | $ 234.6 |
| - Discontinued operations | $ — | $ — | $ — | $ 14.4 |
| Adjusted EBITDA1 | $ 191.1 | $ 63.8 | $ 343.6 | $ 170.6 |
| - Continuing operations | $ 191.1 | $ 63.8 | $ 343.6 | $ 147.2 |
| - Discontinued operations | $ — | $ — | $ — | $ 23.4 |
| Net earnings (loss) attributable to equity holders | $ 84.5 | $ 92.6 | $ 139.3 | $ 104.5 |
| - Continuing operations | $ 84.5 | $ 92.6 | $ 139.3 | $ 98.9 |
| - Discontinued operations | $ — | $ — | $ — | $ 5.6 |
| Adjusted net earnings (loss) attributable to equity holders1 | $ 84.8 | $ (3.3) | $ 137.8 | $ 36.6 |
| - Continuing operations | $ 84.8 | $ (3.3) | $ 137.8 | $ 22.0 |
| - Discontinued operations | $ — | $ — | $ — | $ 14.6 |
| Net earnings (loss) per share attributable to equity holders – continuing operations Adjusted net earnings (loss) per share attributable to equity holders1 – continuing operations Net cash from operating activities before changes in working capital1 – continuing operations Net cash from operating activities | ||||
| $ 0.16 | $ 0.19 | $ 0.27 | $ 0.21 | |
| $ 0.16 | $ (0.01) | $ 0.27 | $ 0.05 | |
| $ 169.2 | $ 21.8 | $ 312.0 | $ 77.5 | |
| $ 160.1 | $ 23.2 | $ 237.2 | $ 52.0 | |
| - Continuing operations | $ 160.1 | $ 23.2 | $ 237.2 | $ 36.6 |
| - Discontinued operations | $ — | $ — | $ — | $ 15.4 |
| Mine-site free cash flow1 | $ 140.0 | $ 14.6 | $ 186.2 | $ 23.2 |
| - Continuing operations | $ 140.0 | $ 14.6 | $ 186.2 | $ 17.3 |
| - Discontinued operations | $ — | $ — | $ — | $ 5.9 |
| Capital expenditures1,2 – sustaining Capital expenditures1,2 – expansion | $ 57.4 | $ 46.3 | $ 112.5 | $ 81.3 |
| $ 62.3 | $ 149.6 | $ 177.5 | $ 286.7 | |
| June 30 | December 31 | June 30 | December 31 2023 | |
| 2024 | 2023 | 2024 | ||
| Financial Position ($ millions) Cash and cash equivalents Long-term debt | $ 367.1 $ 830.8 $ (649.5) $ 387.0 | |||
| $ 511.4 | $ 367.1 | $ 511.4 | ||
| $ 814.8 | $ 830.8 | $ 814.8 | ||
| Net cash (debt)1 | $ (495.1) | $ (649.5) | $ (495.1) | |
| Available Credit Facility | $ 403.3 | $ 387.0 | $ 403.3 |
1. This is a non-GAAP financial measure. See “Non-GAAP Financial Measures”.
2. Sustaining and expansion capital expenditures represent incurred expenditures for property, plant and equipment and exploration and evaluation assets, and excludes right-of-use assets and working capital impacts.
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OUTLOOK
Production
| YTD 2024 | Updated Full Year Previous Full Year Guidance 2024 Guidance 2024 | ||
|---|---|---|---|
| Essakane (000s oz) Westwood (000s oz) | 229 | 380 – 410 | 330 – 370 |
| 67 | 115 – 130 | 100 – 120 | |
| Total attributable production (000s oz) | 296 | 495 – 540 | 430 – 490 |
| Côté Gold, 60.3% (000s oz) | 21 | 130 – 175 130 – 175 | |
| Côté Gold, 60.3% |
Essakane & Westwood
Production guidance at Essakane and Westwood has been increased to 495,000 to 540,000 ounces, up from the previous guidance range of 430,000 to 490,000 ounces
Essakane’s attributable production guidance was increased to 380,000 to 410,000 ounces, up from 330,000 to 370,000 ounces previously, due to the positive grade reconciliation and stable operations year to date.
Westwood guidance was increased to 115,000 to 130,000 ounces, up from 100,000 to 120,000 ounces, due to higher production from the underground mine.
Côté Gold
Production guidance at Côté Gold on a 100% basis is expected to be on the lower end of the guidance of 220,000 to 290,000 ounces (130,000 to 175,000 ounces on a 60.3% basis for IAMGOLD - see “Côté Gold” below), as improvements to mill availability are made during the ramp-up of operations. This estimate assumes that operations will continue to ramp-up and exit the year at a throughput rate of approximately 90% of the 36,000 tonnes per day nameplate production rate.
| Costs | ||||
|---|---|---|---|---|
| Updated Full Year Previous Full Year Guidance 20241 Guidance 20242 | ||||
| YTD 2024 | ||||
| Essakane (000s oz) | ||||
| Cash costs ($/oz sold) AISC ($/oz sold) | $1,040 | $1,175 – $1,275 | $1,300 – $1,400 $1,675 – $1,800 | |
| $1,393 | $1,575 – $1,675 | |||
| Westwood (000s oz) | ||||
| Cash costs ($/oz sold) AISC ($/oz sold) | $1,182 | $1,200 – $1,300 | $1,250 – $1,375 $1,800 – $2,000 | |
| $1,747 | $1,775 – $1,900 | |||
| Essakane + Westwood | ||||
| Cost of sales3 ($/oz sold) Cash costs3,4 ($/oz sold) AISC3,4 ($/oz sold) | $1,077 | $1,175 – $1,275 | $1,280 – $1,400 $1,280 – $1,400 $1,780 – $1,940 | |
| $1,073 | $1,175 – $1,275 | |||
| $1,553 | $1,700 – $1,825 | |||
| Côté Gold | Refer to Côté Gold section below | |||
| 1. | The updated full year guidance is based on the following 2024 full year assumptions, before the impact of hedging: average realized gold price of $2,233 per | |||
| ounce, USDCAD exchange rate of 1.36, EURUSD exchange rate of 1.08 and average crude oil price of $82 per barrel. | ||||
| 2. The previous 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. | ||||
| 3. Consists of Essakane and Westwood on an attributable basis of 90% and 100%, respectively. | ||||
| 4. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures". |
The 2024 cost guidance for Essakane and Westwood combined is now expected to be in the range of $1,175 to $1,275 for cash costs per ounce sold and $1,700 to $1,825 for AISC per ounce sold, compared to the previous guidance estimates of cash cost per ounce sold of $1,280 and $1,400 and AISC per ounce sold of $1,780 and $1,940.
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While inflationary pressures are easing, pricing for certain consumables, including cyanide and grinding media remains in line with the levels experienced in 2023.
Essakane
Cost guidance for Essakane has been revised downwards and is expected to be in a range of $1,175 to $1,275 for cash cost per ounce sold and $1,575 to $1,675 for AISC per ounce sold, compared to the previous guidance estimates for cash cost of $1,300 to $1,400 per ounce sold and AISC of $1,675 to $1,800 per ounce sold. Operating costs are expected to remain in line with prior guidance and levels experienced in recent quarters and capital is expected to increase, resulting in unit costs decreasing as a result of the anticipated production increasing more than the costs.
Westwood
Cost guidance for Westwood has been revised downwards, in line with the increase in production guidance, and is expected to be in the range of $1,200 to $1,300 for cash cost per ounce sold and $1,775 to $1,900 for AISC per ounce sold, compared to the previous guidance estimates for cash cost per ounce sold of $1,250 to $1,375 per ounce sold and AISC of $1,800 to $2,000 per ounce sold.
Côté Gold
During the ramp-up period and prior to achieving near nameplate production rates, operating and capitalized waste stripping unit costs are expected to be higher than the expected life of mine average as outlined in the existing 43-101 technical report (dated August 12, 2022) as fixed costs are absorbed by lower volumes, increases in certain cost inputs from the impact of inflation since completion of the technical report, and higher royalty costs due to higher gold prices. As Côté Gold achieves 90% throughput, which is expected by the end of the year, the Company estimates cash costs at that time to be in the range of approximately $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce.
Capital Expenditures
Essakane and Westwood
| ($ millions) | Updated Full Year Guidance | |||||
|---|---|---|---|---|---|---|
| YTD 20241 | ||||||
| 20242 | ||||||
| Sustaining3 | Expansion | Total | Sustaining3 | Expansion | Total | |
| Essakane (±5%) Westwood (±5%) | ||||||
| $ 76.1 | $ 2.1 | $ 78.2 | $ 170 | $ 5 | $ 175 | |
| 35.8 | 0.1 | 35.9 | 70 | — | 70 | |
| Corporate | $ 111.9 | $ 2.2 | $ 114.1 | $ 240 | $ 5 | $ 245 |
| 0.6 | — | 0.6 | — | — | — | |
| Total4 | $ 112.5 | $ 2.2 | $ 114.7 | $ 240 | $ 5 | $ 245 |
Previous Full Year Guidance 2024 Sustaining3 Expansion Total
| 150 $ | 5 $ | 155 |
| 65 | — | 65 |
| 215 $ | 5 $ | 220 |
| — | — | — |
| 215 $ | 5 $ | 220 |
1. 100% basis, unless otherwise stated.
2. Capital expenditures guidance (±5%) at Essakane and Westwood.
3. Sustaining capital includes capitalized stripping of (i) $27.6 million for Essakane and $1.8 million for Westwood in the second quarter 2024, (ii) $53.3 million for
| Essakane and | $4.1 millio |
| “Outlook” sections below. |
Essakane and $4.1 million for Westwood YTD 2024, and (iii) $115 million for Essakane and $7 million for Westwood for the revised full year guidance. See
4. Includes $3 million of capitalized exploration and evaluation expenditures also included in the Exploration Outlook guidance table.
Sustaining capital expenditures¹ estimates for Essakane and Westwood this year have been revised upwards to approximately $240 million (± 5%), up from $215 million (± 5%) previously, due to an increase in the strip ratio resulting in more mining costs being included in capitalized waste and the replacement of certain equipment to improve efficiency and maintenance costs at Essakane, and the early commencement of mill integrity projects at Westwood originally scheduled for 2025.
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| Côté Gold (100%) | ||||
|---|---|---|---|---|
| ($ millions) | Q2 20241 | Updated Full Previous Full Year Guidance Year Guidance 20242 20242 | ||
| YTD 20241 | ||||
| Project expenditures4 to first gold | $ — | $ 151.7 | $ 152 | $ 152 |
| Project expenditures4 post first gold | 30.7 | 30.7 | 67 | 67 |
| Subtotal Project expenditures4 | 30.7 | 182.4 | 219 | 219 |
| Capitalized waste stripping | 20.9 | 29.0 | 60 | 50 |
| Capitalized operating pre-production costs | 24.5 | 51.5 | 60 | 40 |
| Capital expenditures related to operations3 | 16.5 | 26.0 | 115 | 145 |
| Total | $ 92.6 | $ 288.9 | $ 454 | $ 454 |
1. 100% basis, unless otherwise stated.
2. Capital expenditures guidance (±5%).
3. Guidance reduced as a result of leasing of equipment.
4. Project expenditures is a non-GAAP financial measure and is inclusive of supplies inventories purchased during the project phase. See "Non-GAAP Financial Measures".
Côté Gold's capital expenditures related to operations 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 commercial production and the nature of the expenditure.
Exploration Outlook
Exploration expenditures for 2024 are expected to be approximately $20 million, including $5 million on the Gosselin resource delineation drilling program, as well as other near-mine and greenfield programs.
| ($ millions) | YTD 2024 | ||
|---|---|---|---|
| Capitalized | Expensed | Total | |
| Exploration projects – greenfield Exploration projects – brownfield | |||
| $ 0.1 | $ 8.7 | $ 8.8 | |
| 2.6 | 1.5 | 4.1 | |
| $ 2.7 | $ 10.2 | $ 12.9 |
Full Year Guidance 20241
| Capitalized Expensed | Total | |
|---|---|---|
| — $ | 15 $ | 15 |
| 3 | 2 | 5 |
| 3 $ | 17 $ | 20 |
1. The full year guidance does not include expenditures for the Bambouk Assets sales currently held for sale. See "Bambouk Assets, West Africa" for additional details.
Income Taxes Paid and Depreciation Outlook
The Company has revised the cash taxes guidance range upwards to $50 to $60 million from the initial guidance range of $45 to $55 million. The upward revision reflects the impact of higher revenues from increased gold prices and the withholding taxes related to increased intercompany dividends. Cash tax payments do not occur evenly by quarter, as amounts paid in a quarter can include payments of the final balance of the prior year taxes and payments of instalments for the current year, both required to be made at times as prescribed by different countries. The income taxes paid guidance reflects continuing operations and does not include cash tax obligations arising as part of the Bambouk sales process. See "Bambouk Assets" for additional details.
Depreciation expense for 2024 is expected to be in the range of $255 to $265 million revised downwards from initial
| expectations of $270 to $285 million due to the expected timing of commercial production at the Côté mine. | |||
|---|---|---|---|
| ($ millions) | |||
| YTD 2024 | |||
| Depreciation expense Income taxes paid | $116.1 | $255 – $265 | $270 – $285 |
| $35.4 | $50 – $60 | $45 – $55 |
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE
The Company is committed to:
- Maintaining its culture of accountable mining through high standards of ESG practices; and
- The vision of Zero Harm®, in key aspects of its business, with particular emphasis on respecting the natural environment, building strong community partnerships and putting the health and safety of the Company's employees, contractors and consultants first.
The Company reports annually on its ESG performance highlighting progress and achievements across a range of material topics and indicators and draws upon various ESG frameworks and standards and internationally recognized methodologies such as the Global Reporting Initiative (“GRI”) and Sustainability Accounting Standards Board (“SASB”) to guide its Sustainability Report. On May 15, 2024, the Company released its 17th annual Sustainability Report, outlining the Company’s 2023 sustainability performance.
Health and Safety
Health and safety is core to the Company’s pursuit of its Zero Harm® vision. Through various prevention programs, the Company continually promotes a wellness program and a safe work environment at its sites. The TRIFR (total recordable injuries frequency rate) was 0.60 as at June 30, 2024 (compared to 0.54 as at June 30, 2023), tracking below the Company's annual target of 0.66. In June, Essakane surpassed a record health and safety achievement of 5 million hours worked without any recordable safety incidents.
In the second quarter 2024, the Company began the development of a Critical Risks Program that focuses on the industry's most critical risks and controls. The Company drafted Critical Risks Protocols and continues to engage with its workforce to seek feedback on the Protocols.
Essakane maintained its ISO 45001 certification after an external audit. At Côté Gold and Westwood, the sites conducted incident cause analysis method (“ICAM”) trainings for supervisors.
Environmental
In 2024, the key environmental focus areas for the Company are on water and biodiversity. The Company has begun the development of a water stewardship framework that takes a catchment-based planning approach, to enhance its management capacities in this area and allow the Company to evaluate its impacts and contributions to regional watersheds. In the second quarter of 2024, the Company commenced the development of a standalone Water Management Standard and began detailed site-by-site assessments against the standard. In 2024, the Company will also expand on the initial biodiversity assessment performed in 2022 to develop a more comprehensive roadmap to support its goal of achieving net positive biodiversity and evaluate the appropriateness of the Company reporting against the Taskforce on Nature-related Financial Disclosures. In the second quarter of 2024, the Company continued to conduct biodiversity assessments at its active sites to understand its dependencies and impacts on nature.
At Essakane, the Falagountou’s Closure Plan was filed at the end of March 2024. Essakane's Closure Plan that was submitted in 2019 is currently being updated and the target timeline for the submission is at the end of 2024. Essakane conducted an external audit of its environmental management system and maintained its ISO 14001 certification.
At Westwood, the 2021 Closure Plan was approved by the Quebec Ministry of Natural Resources and Forestry (“MRNF”). The Doyon Closure Plan is still under review by the Ministry. Westwood commenced hydroseeding to prevent soil erosion in targeted areas which align with closure activities at the Fayolle satellite pit. Westwood continues to pilot water recycling projects to reduce water withdrawal from the Bousquet River.
Côté Gold continued the implementation of biodiversity monitoring programs, including the deployment of bird and bat monitors and to monitor the progress of the reclamation. Côté Gold also completed the installation of a walleye spawning habitat as part of its offsetting plan for the Fisheries Act Authorization and completed corresponding monitoring surveys. Côté Gold’s application to the Low Carbon Economy Challenge Fund, which proposed to convert select diesel-driven equipment to electric options, is proceeding to the next phase of evaluation. On June 26, 2024, Mattagami First Nation
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and Flying Post First Nation led a water ceremony at Côté Gold to commemorate the creation of the Oshki Lake which was developed during project construction to offset the loss of Côté Lake.
As of June 30, 2024, there were zero environmental significant incidents.
Social Performance
The Company reviewed its approach to community investment and is planning to develop a new Community Investment Strategy. The sites continue to engage with their communities of interest and support community investment initiatives. At Essakane, key engagements and activities included discussions on economic, social, security, and resettlement topics, engagements with stakeholders as part of the Essakane Closure Plan and monitoring of artisanal miners. The Company continues to address legacy issues from the original Relocation Action Plan ("RAP 1") with the rebuilding of select houses. The Company is expected to complete all rebuilding efforts associated with RAP 1 within a three-year time period.
At Côté Gold, a ribbon cutting event was held on May 22, 2024, to celebrate the official inauguration of the mine with various stakeholders and Indigenous community partners in attendance. The team also attended the Mattagami Open House and hosted the newly elected Mattagami First Nations Chief and Council for a tour of the site. An evaluation of the implementation of the First Nations Impact Benefit Agreement ("IBA") during construction was completed and the annual IBA Leadership Committee meeting was held on-site on June 26, 2024.
At Westwood, the team met with the Abitibiwinni First Nation to resume negotiations and discussions related to the development of an IBA.
As of June 30, 2024, there were zero community-related significant incidents.
Indigenous Relations
As a Canadian business committed to responding to the Truth and Reconciliation Commission of Canada’s Calls to Action, the Company continues to take meaningful action towards reconciliation by respecting and upholding Indigenous rights, founded upon relationships that foster trust, transparency and mutual respect. The Company is committed to engaging in a manner that respects the principle of self-determination of Indigenous people, aims to achieve their right to free, prior and informed consent and respects their cultural heritage and traditions. These principles are enshrined in the United Nations Declaration on the Rights of Indigenous People and form the foundation of IAMGOLD’s Indigenous Engagement Policy. In honour of Indigenous History Month and National Indigenous Peoples Day, IAMGOLD hosted a Courageous Conversation on June 20, 2024, in our Toronto office with Trina Maher, an expert Indigenous inclusion strategist and member of Mattagami First Nation.
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. With respect to Board membership renewal, it was decided that the average tenure of the Board should not exceed ten years and that no director should serve as the chair of the Board or the chair of any committee for more than ten consecutive years.
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
Côté Gold Mine (IAMGOLD interest – 60.3%) | Ontario, Canada
| Q2 2024 | YTD 2024 | |
|---|---|---|
| Key Operating Statistics (100% basis, unless otherwise stated) Ore mined (000s t) Grade mined (g/t) Operating waste mined (000s t) Capital waste mined (000s t) Material mined (000s t) – total Strip ratio1 Ore milled (000s t) Head grade (g/t) Recovery (%) Gold production (000s oz) – 100% Gold production (000s oz) – attributable 60.3% Gold sales (000s oz) – 100% Average realized gold price2 ($/oz) | ||
| 2,109 | 4,053 | |
| 0.93 | 0.83 | |
| 3,480 | 6,688 | |
| 4,925 | 7,370 | |
| 10,514 | 18,111 | |
| 4.0 | 3.5 | |
| 834 | 882 | |
| 1.39 | 1.35 | |
| 90 | 90 | |
| 34 | 35 | |
| 20 | 21 | |
| 23 | 23 | |
| $ 2,341 | $ 2,341 | |
| Financial Results ($ millions – 60.3% interest) Revenues3 Cost of sales3 Production costs (Increase)/decrease in finished goods Royalties Cash costs2 Total sustaining and expansion capital expenditures2 Earnings from operations | ||
| $ 32.0 | $ 32.0 | |
| 11.4 | 11.4 | |
| 14.5 | 15.3 | |
| (4.1) | (4.9) | |
| 1.0 | 1.0 | |
| 11.4 | 11.4 | |
| 60.6 | 175.3 | |
| 18.7 | 17.4 | |
| Unit costs per tonne2 Mine costs per tonne mined | ||
| $ 3.92 | $ 3.64 | |
| Operating costs per ounce4 Cost of sales excluding depreciation ($/oz sold) Cash costs2 ($/oz sold) | ||
| $ 839 | $ 839 | |
| $ 836 | $ 836 |
1. Strip ratio is calculated as waste mined divided by ore mined.
2. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures". Expansion capital expenditures include Project Expenditures.
3. As per note 30 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depreciation expense.
4. Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Operations
Attributable gold production in the second quarter 2024 was 20,000 ounces. The first gold pour was completed on March 31, 2024, with the initial gold shipments and sales occurring in the second quarter 2024. Gold sold was lower than ounces produced in the quarter due to the initial buildup of in-circuit inventory during commissioning and ramp-up.
Mining activity totaled 10.5 million tonnes in the second quarter 2024, an increase of 38% compared to the prior quarter. 2.1 million tonnes of ore were mined during the period. Mine productivity continued to improve after the improvement of operating practices and commissioning additional equipment that also allowed for double-side loading from hydraulic shovels, while periodic power curtailments negatively impacted the mine during the quarter. The mine is evaluating different blasting patterns and drill operating and maintenance practices to improve production levels to meet throughput requirements once the mill has ramped up.
Mill throughput in the second quarter 2024 was 834,000 tonnes at an average head grade of 1.39 g/t. While lower grade ore was used for initial testing, higher grade material is now being processed direct from the pit and from available high grade ore stockpiles, in line with the plan. The milling and leaching circuits have operated at design capacity, gravity
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circuits were successfully commissioned in the quarter, and overall recovery has been in line with expectations averaging 90% in the quarter.
Power consumption under peak loads when operating near nameplate throughput in the crushing and grinding circuits has been below design estimates.
The ramp-up of the mill continues to progress with all major equipment demonstrating the capability to operate at or above design levels when operated individually. The current priority for the ramp-up is increasing availability of the dry side of the plant. Availability of the crushing and screening circuits in the second quarter was impacted by high levels of wear on liners and chutes in the crushing circuit due to the abrasiveness of the ore, screening maintenance, and dust management. Solutions and optimizations are on-going including the systematic replacement of liners and identified areas of high wear with abrasive resistant material, balancing and sizing adjustments to improve screening performance, and improved operating practices.
Subsequent to quarter end, the processing plant made significant gains, allowing for Côté Gold to achieve commercial production on August 2, 2024. During the month of July, the operation processed over 620,000 tonnes and produced 25,900 ounces of gold. On August 1, 2024, the plant achieved a record daily high throughput rate of 36,000 tonnes per day. The Company is planning a multi-day shutdown in September, at which time it will deploy key optimizations to improve the long-term availability of the plant, in support of the goal to ramp up throughput to 90% by the end of the year and continued improvements in 2025.
Financial Performance (60.3% basis)
For accounting purposes, revenue and cost of sales are recognized at 60.3% from the commencement of the first sale. Prior to the exercise of the repurchase option from Sumitomo (see below), IAMGOLD will continue to fund operating and capital expenditures through cash calls at its 60.3% interest and will receive 60.3% of gold production (see “Funding Agreement with Sumitomo” below for accounting of IAMGOLD’s 60.3% interest in the project).
Production costs of $14.5 million were incurred during the three months ended June 30, 2024. Production cost is net of $24.5 million of operating expenditures incurred during the three months ended June 30, 2024, related to milling and surface costs that have been capitalized during commissioning and ramp-up efforts in advance of achieving commercial production.
Mining cost of $3.92 per tonne mined and $3.64 per tonne mined during the three and six months ended June 30, 2024, respectively, was higher during the second quarter due to higher contractor costs incurred to improve blasting patterns and to increase the inventory of blasted material, drill maintenance to improve fleet availability and to support the operation of the drill rigs.
Cost of sales, excluding depreciation, during the three and six months ended June 30, 2024, totaled $11.4 million and is net of $4.1 million and $4.9 million, respectively, of the production cost related to the in-circuit inventory that was built up during the period and is recorded in inventory as finished goods. Cost of sales includes $1.0 million of royalties for the three and six months ended June 30, 2024. Cost of sales per ounce sold, excluding depreciation, was $839 for the three and six months ended June 30, 2024.
Cash costs during the three and six months ended June 30, 2024, totaled $11.4 million and cash cost per ounce sold was $836 and excludes production costs that have been capitalized during commissioning and ramp-up efforts in advance of achieving commercial production.
Project and capital expenditures, on an 100% and incurred basis, of $92.6 million in the second quarter 2024 ($288.9 million YTD), includes:
- Project expenditures following first gold of $30.7 million to support the completion of commissioning and certain scopes of non-critical path earthwork and infrastructure. Prior to the first gold pour on March 31, 2024, project expenditures incurred were $151.7 million, totaling $182.4 million for the year.
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- In addition to the project expenditures, approximately $24.5 million of operating expenditures related to milling and surface costs have been capitalized in the second quarter 2024 ($51.5 million YTD) in support of the commissioning and ramp-up efforts in advance of achieving commercial production.
- Capital expenditures related to operations for the second quarter 2024 were $37.4 million ($55.0 million YTD), including $20.9 million of capitalized stripping ($29.0 million YTD), $12.6 million for tailings and earthworks ($19.7 million YTD), mobile equipment $2.2 million ($4.6 million YTD) and other projects of $1.7 million ($1.7 million YTD).
Total capital expenditures paid during the quarter, on a 60.3% basis, were $96.5 million ($180.2 million YTD), which includes, on a 60.3% basis, the $60.6 million incurred in the second quarter 2024 ($175.3 million YTD) and working capital adjustments and long term advances of $35.9 million ($4.8 million YTD). (see “Non-GAAP Financial Measures – Sustaining and Expansion Capital Expenditures”).
2024 Outlook – 100%
Production guidance at Côté Gold is expected to be on the lower end of the guidance range of 220,000 to 290,000 ounces (130,000 to 175,000 ounces on a 60.3% basis), as improvements to mill availability are made during the rampup of operations.
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.
Capital expenditures for 2024 at Côté Gold are outlined in the Outlook section above. Excluding project expenditures for completion of the project, capital expenditures, on a 100% basis, related to: capitalized waste stripping, capitalized operating pre-production costs, and capital expenditures related to operations (including expansion of the tailings management facility, additional mining equipment and owners' costs as outlined in the mine plan) are expected to total $235 million this 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 commercial production and the nature of the expenditure.
Gosselin Deposit
The Gosselin deposit is located immediately to the northeast of the Côté Gold deposit. Approximately 35,000 metres of expansion and delineation diamond drilling is planned for 2024, of which approximately 11,600 metres and 22,900 metres were completed in the three and six months ended June 30, 2024, respectively, to test different areas of the Gosselin deposit extensions and the gap between Gosselin West Breccia body and the Côté Breccia at depth. Another 6,000 metres is planned this year to test high potential targets along the favourable structural corridor that links the Côté and Gosselin deposits and runs through the Chester intrusive complex. Approximately 1,500 metres were drilled on the Clam Lake target area.
Technical studies are progressing to advance metallurgical testing, conduct mining and infrastructure studies in order to review alternatives for potential inclusion of the Gosselin deposit into a future Côté Gold LOM plan.
Funding Agreement with Sumitomo
On December 19, 2022, the Company announced it had entered into the JV Funding and Amending Agreement with SMM, whereby SMM contributed $250.0 million of the Company's funding obligations to the Côté Gold UJV and as a result, the Company transferred 9.7% of its interest in Côté Gold to SMM (the "Transferred Interests") with a right to repurchase the Transferred Interests on five remaining dates between November 30, 2024, and November 30, 2026, to return to its full 70% interest in the Côté Gold Mine.
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