IAMGOLD Reports First Quarter 2024 Results
NEWS RELEASE
TSX: IMG NYSE: IAG
IAMGOLD REPORTS FIRST QUARTER 2024 RESULTS
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario, May 9, 2024 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the “Company”) today reported its financial and operating results for the first quarter ended March 31, 2024.
"IAMGOLD started 2024 with very strong performance across its operations, projects and in health and safety," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "At its operations, the Company reported attributable production of 151,000 ounces. This outperformance was driven by stable operations and positive grade reconciliation at Essakane, coupled with Westwood achieving its highest quarter of production since the restart of the mine in 2021. Looking forward, Essakane and Westwood are well positioned to achieve their guidance targets this year, and I want to thank both teams for the commitment to Zero Harm®, accountability and performance."
"The highlight of the quarter, and a major milestone for IAMGOLD was the announcement of the first gold pour at the Côté Gold mine," continued Mr. Adams. "This achievement represents the culmination of over 15 million hours of work and over four years of construction to bring the project online within the revised budget – an incredible effort for the team on the ground. While cause for celebration, the first gold achievement is but the first step in the road to bring Côté to full design capacity. The ramp up of the operation is progressing well, with all major equipment – including crushers, high pressure grinding rolls ("HPGR"), ball mill, cyclones, conveyors, piping, electrical connections and interplant programming communications – demonstrating their capability to operate at planned throughput levels. The key for Cote during this period is to steadily improve the plant availability and stability. We are seeing improvements every day and are confident in our estimate of commercial production in the third quarter 2024. This timeline will set us up well towards the goal of reaching 90% throughput exiting 2024 and ultimately position Côté Gold among the top gold mines in Canada."
HIGHLIGHTS:
Operating and Financial
- Attributable gold production was 151,000 ounces. Essakane had a strong first quarter with attributable production of 118,000 ounces, mainly due to higher grades, Westwood achieved its highest quarterly production since restarting with production of 32,000 ounces and initial attributable production was achieved at Côté Gold of 1,000 ounces.
- Operating guidance for the year is unchanged. Attributable gold production, excluding Côté Gold, for 2024 is expected to be in the range of 430,000 to 490,000 ounces, with cash costs per ounce sold for Essakane and Westwood to be between $1,280 and $1,400 per ounce sold and AISC expected to be in the range of $1,780 to $1,940 per ounce sold.
- Revenues were $338.9 million from sales of 163,000 ounces (150,000 ounces on an attributable basis) at an average realized gold price1 of $2,077 per ounce.
- Cost of sales per ounce sold was $1,056, cash cost1 per ounce sold was $1,053 and all-in-sustaining-cost1 (“AISC”) per ounce sold was $1,493 (excluding Côté Gold).
- Net earnings and adjusted net earnings per share attributable to equity holders1 of $0.11 and $0.11, respectively.
- Net cash from operating activities was $77.1 million. Net cash from operating activities, before movements in working capital and non-current ore stockpiles1 was $142.8 million.
- Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 was $154.1 million and adjusted EBITDA1 was $152.5 million.
- Mine-site free cash flow1, excluding Côté Gold, was $46.2 million.
- The Company has available liquidity1 of $693.8 million, mainly comprised of cash and cash equivalents of $291.2 million and the available balance of the secured revolving credit facility (“Credit Facility”) of $402.3 million as at March 31, 2024.
- In health and safety, for the quarter ended March 31, 2024, the Company reported a DARTFR (days away, restricted, transferred duty frequency rate) of 0.53, an improved trend since last year and a TRIFR (total recordable injuries frequency rate) of 0.61, an improved trend since last year.
- On April 19, 2024, the Company received an updated credit rating from Standard and Poor’s which upgraded the corporate credit rating from CCC+ to B- with a stable outlook. This compares with the Company’s existing corporate credit ratings from Fitch and Moody’s of B- and B3 respectively.
Côté Gold
- The first gold pour was completed on March 31, 2024, with the crushing, HPGR and processing circuits performing within expectations, including power consumption. Construction is also substantially complete and the construction teams have been demobilized with a successful handover to the operations team. Operations are scheduled to continue to ramp-up in the second quarter 2024 and commercial production is expected to be achieved during the third quarter 2024. The Company expects the Côté Gold operation to exit the year at approximately 90% of nameplate throughput.
- Operating guidance for Côté Gold is unchanged, with 2024 production (on a 100% basis) expected to be between 220,000 and 290,000 ounces for the year (132,000 and 174,000 ounces on a 60.3% basis for IAMGOLD). 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.
- On a 100% basis at the UJV level, the Côté Gold Project incurred project expenditures1 of $151.7 million in the first quarter 2024. Since commencement of construction, $2.935 billion of the planned $2.965 billion of project expenditures has been incurred up to achievement of first gold. Remaining project expenditures post first gold are estimated to be $67 million ±5%, in line with guidance.
- IAMGOLD will continue to fund 60.3% of the operating costs and capital expenditures and will receive 60.3% of the gold production. See “Côté Gold”.
Corporate
- On April 4, 2024, the Company announced that it entered into a gold prepay arrangement and a partial amendment to one of its existing gold prepayment arrangements. The net result of these arrangements is 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, increasing cashflow in the second quarter 2024 by approximately $73.6 million assuming gold prices at the time of the arrangement. See “Liquidity and Capital Resources”.
- 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 February 13, 2024, the Company acquired all of the issued and outstanding common shares of Vanstar for consideration of approximately 12.0 million common shares of the Company. Vanstar owned a 25% interest in the Nelligan Gold Project ("Nelligan") in Quebec, Canada. With the acquisition of Vanstar complete, the Company now owns a 100% interest in Nelligan.
- On February 27, 2024, the Company announced that it had completed the acquisition of all the outstanding common shares of EURO Ressources S.A., following the approval by the Autorité des Marchés Financiers in France on January 23, 2024. IAMGOLD France acquired the remaining outstanding common shares of EURO that IAMGOLD France did not already own for cash consideration of €3.50 per share for an aggregate consideration of €21.9 million ($23.7 million), followed immediately by a "squeeze-out" under French law and the subsequent delisting of Euro Ressources from the Euronext Paris stock exchange.
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QUARTERLY REVIEW
For more details and the Company's overall outlook for 2024, see “Outlook”, and for individual mine performance, see “Quarterly Updates”. The following table summarizes certain operating and financial results for the three months ended March 31, 2024 (Q1 2024) and March 31, 2023 (Q1 2023) and certain measures of the Company's financial ("discontinued operations") position as at December 31, 2023, and March 31, 2023. Financial results of Rosebel include the one-month period ended January 31, 2023, prior to the closing of the sale to Zijin.
| Q1 2024 | Q1 2023 | |
|---|---|---|
| Key Operating Statistics ($ millions from continuing operations) Gold production – attributable (000s oz) - Essakane - Westwood Subtotal - Côté Gold Total gold production – attributable (000s oz) Gold sales – attributable (000s oz) - Essakane - Westwood Subtotal - Côté Gold 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) | 92 21 | |
| 118 | ||
| 32 | ||
| 150 | 113 — | |
| 1 | ||
| 151 | 113 88 21 | |
| 117 33 | ||
| 150 — | 109 — | |
| 150 | 109 | |
| $ 1,004 1,243 | $ 1,063 1,657 | |
| $ 1,056 — | $ 1,176 — | |
| $ 1,056 | $ 1,176 $ 964 1,646 | |
| $ 1,002 1,236 | ||
| $ 1,053 — | $ 1,094 — | |
| $ 1,053 | $ 1,094 $ 1,157 2,508 | |
| $ 1,312 1,836 | ||
| $ 1,493 — | $ 1,525 — | |
| $ 1,493 | $ 1,525 | |
| $ 2,077 | $ 1,893 | |
| 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 news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the consolidated interim financial statements.
2. This is a non-GAAP financial measure. See “Non-GAAP Financial Measures”.
3. The average realized gold price in the first quarter 2024 excluding the impact of the 2022 Prepay Arrangement (as defined below) was $2,091.
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| Q1 2024 | Q1 2023 | |
|---|---|---|
| Financial Results ($ millions from continuing operations) Revenues Gross profit EBITDA1 | ||
| $ 338.9 | $ 226.2 $ 43.1 | |
| $ 105.7 | ||
| $ 154.1 | $ 82.8 | |
| - Continuing operations - Discontinued operations | $ 154.1 | $ 68.4 $ 14.4 |
| $ — | ||
| Adjusted EBITDA1 | $ 152.5 | $ 106.4 |
| - Continuing operations - Discontinued operations Net earnings (loss) attributable to equity holders | $ 152.5 $ — | $ 83.0 $ 23.4 |
| $ 54.8 | $ 11.9 | |
| - Continuing operations | $ 54.8 $ — | $ 6.3 $ 5.6 |
| - Discontinued operations Adjusted net earnings (loss) attributable to equity holders1 - Continuing operations - Discontinued operations | ||
| $ 53.0 | $ 39.5 | |
| $ 53.0 | $ 24.9 $ 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 | $ 0.11 | $ 0.01 $ 0.05 |
| $ 0.11 | ||
| $ 142.8 $ 77.1 | $ 55.7 | |
| $ 28.8 | ||
| - Continuing operations - Discontinued operations | $ 77.1 $ — | $ 13.4 $ 15.4 |
| Mine-site free cash flow1 | $ 46.2 | $ 8.6 |
| - Continuing operations - Discontinued operations | $ 46.2 | $ 2.7 $ 5.9 |
| $ — | ||
| Capital expenditures1,2 – sustaining Capital expenditures1,2 – expansion | $ 55.1 | $ 35.0 |
| $ 115.2 | $ 137.1 | |
| March 31 | December 31 | |
| 2024 | 2023 | |
| Financial Position ($ millions) Cash and cash equivalents Long-term debt | ||
| $ 291.2 | $ 367.1 | |
| $ 820.9 | $ 830.8 | |
| Net cash (debt)1 | $ (715.8) | $ (649.5) |
| Available Credit Facility | $ 402.3 | $ 387.0 |
1. This is a non-GAAP financial measure. See “Non-GAAP Financial Measures”.
2. Capital expenditures represent incurred expenditures for property, plant and equipment and exploration and evaluation assets, and exclude right-of-use assets.
OUTLOOK
Côté Gold Outlook (100% basis)
Production Production at Côté Gold is expected to be between 220,000 and 290,000 ounces for the year (130,000 and 175,000 ounces on a 60.3% basis for IAMGOLD - see “Côté Gold” below). This estimate assumes that following initial gold production in the first quarter 2024, operations ramp-up 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.
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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 $1,200 per ounce sold.
For accounting purposes, revenue and cost of sales will be recognized from the commencement of production.
The Company will continue to fund 60.3% of the operating costs and capital expenditures and will receive 60.3% of the gold production.
Capital Expenditures
| ($ millions) | Actual Q1 20241 | Adjusted Full Full Year Guidance 20242,3 Year 0G 2u 4id 2,a 3nce 2 | |
|---|---|---|---|
| Project expenditures4 to first gold Project expenditures4 post first gold | $ 151.7 | $ 179 $ 152 40 67 | |
| — | |||
| Subtotal Project expenditures4 Capitalized waste stripping Capitalized operating pre-production costs Capital expenditures related to operations3 | 151.7 | 219 219 50 50 40 40 145 145 | |
| 8.1 | |||
| 27.0 | |||
| 9.5 | |||
| Total | $ 196.3 | $ 454 | $ 454 |
1. 100% basis, unless otherwise stated.
2. Capital expenditures guidance (±5%).
3. Guidance assumes all equipment purchased and does not include the impact of the change to lease up to $25 million of equipment.
4. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
Côté Gold's capital expenditures related to operations in 2024 are expected to be higher than the life-of-mine average as the mine progresses the completion of the construction of the full tailings dam footprint to support the life of mine. The classification of capital expenditures as either sustaining or expansion during 2024 will be dependent on the timing of achieving commercial production and the nature of the expenditure.
Essakane and Westwood Outlook
| Actual Q1 2024 | Full Year Guidance 20241 | |
|---|---|---|
| Essakane (000s oz) Westwood (000s oz) | 118 32 | 330 – 370 |
| 100 – 120 | ||
| Total attributable production (000s oz)2 | 150 | 430 – 490 |
| Cost of sales2 ($/oz sold) Cash costs2,3 ($/oz sold) AISC2,3 ($/oz sold) | $1,056 | $1,280 – $1,400 |
| $1,053 $1,493 | $1,280 – $1,400 $1,780 – $1,940 |
1. 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. Consists of Essakane and Westwood on an attributable basis of 90% and 100%, respectively.
3. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
Production Outlook
Attributable gold production, excluding Côté Gold, for 2024 is unchanged and is expected to be in the range of 430,000 to 490,000 ounces.
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Costs Outlook
The 2024 costs guidance for Essakane and Westwood is unchanged with cash costs per ounce sold expected to be between $1,280 and $1,400 per ounce sold and AISC expected to be in the range of $1,780 to $1,940 per ounce sold. Costs in the first quarter of 2024 were in line with budget and guidance estimates, however, operating costs on a per ounce basis in the period were lower due to higher production and sales volume.
While inflationary pressures are easing, pricing for certain main consumables, including cyanide and grinding media is persisting in line with the levels of 2023, with easing pricing pressures expected in the second half of 2024.
Pricing of fuel and fuel-linked products is expected to remain under pressure, reflecting continued imbalances in global supply and demand. Increases in oil prices are expected to be partially mitigated by the existing oil hedge program, see “Market Risk”. Excluding the impact of the Company’s hedging program, a $10/bbl increase in the oil price is estimated to result in an increase to cash costs of $11 per ounce sold. With current hedges in place, the same movement is estimated to result in an increase in cash costs of $6 per ounce sold.
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 Q1 20241 | Full Year Guidance 20242 | |
|---|---|---|---|
| Sustaining3 Expansion Total | Sustaining3 Expansion Total | ||
| Essakane (±5%) Westwood (±5%) | $ 36.0 | $ 0.5 $ 36.5 | $ 150 $ 5 $ 155 65 — 65 |
| 19.0 — 19.0 | |||
| Corporate | $ 55.0 | $ 0.5 $ 55.5 | 215 5 220 — — — |
| 0.1 — 0.1 | |||
| Total4 | $ 55.1 | $ 0.5 $ 55.6 | $ 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) $25.7 million for Essakane and $2.3 million for Westwood in the first quarter 2024 and (ii) $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.
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 Q1 2024 | Full Year Guidance 20241 |
| Capitalized Expensed Total | Capitalized Expensed Total | |
| Exploration projects – greenfield Exploration projects – brownfield1 | $ — $ 4.0 $ 4.0 | $ — $ 15 $ 15 3 2 5 |
| 1.2 0.9 2.1 | ||
| $ 1.2 $ 4.9 $ 6.1 | $ 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 expects to pay cash taxes in the range of $45 million to $55 million during 2024. Cash tax payments do not occur evenly by quarter, as amounts paid in a quarter can include payments of the final balance of the prior year taxes and payments of instalments for the current year, both required to be made at times as prescribed by different countries. The income taxes paid guidance reflects continuing operations and does not include cash tax obligations arising as part of the Bambouk sales process. See "Bambouk Assets, West Africa" for additional details.
Depreciation expense in 2024 is expected to be in the range of $270 to $285 million.
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| Actual Q1 2024 | |
|---|---|
| $61.8 | $270 – $285 |
| $16.7 | $45 – $55 |
($ millions)
Depreciation expense Income taxes paid
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
The Company 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 reports annually on its ESG performance highlighting progress and achievements 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.
As member of the Mining Association of Canada (“MAC”), the Company participates in the Towards Sustainable Mining (“TSM”) initiative at all its operations, including internationally at Essakane, which exceeds MAC’s requirements. The Company’s operating facilities conduct an annual self-assessment to assess their performance against the TSM Assessment Protocols, with a third-party verification from a Verification Service Provider every three years.
In 2024, the Company has set ESG targets related to health and safety; equity, diversity, and inclusion; and environment, including:
- meeting or exceeding leading and lagging health and safety targets (achieve total recordable incident frequency rate (TRIFR) of 0.66 and implement the Critical Risks Protocols);
- increasing representation of women by achieving 15% representation of total employees in 2024;
- developing a biodiversity roadmap;
- developing a water stewardship framework; and
- zero significant environmental and community incidents.
In 2024, the Company will be conducting a self-assessment and seek external verification of the TSM results. The Company has developed action plans to maintain and/or achieve Level A and above scores across all of the TSM protocols.
Health and Safety
Health and safety is core to the Company’s relentless pursuit of its Zero Harm® vision. Through various prevention programs, the Company continuously promotes a wellness program and a safe work environment at all sites. The DARTFR (days away, restricted, transferred duty frequency rate) was 0.53 as at March 31, 2024 (compared to 0.56 as at March 31, 2023). The TRIFR (total recordable injuries frequency rate) was 0.61 as at March 31, 2024 (compared to 0.80 as at March 31, 2023), tracking below the Company's annual target of 0.66.
In the first quarter 2024, the Company strengthened its safety culture by developing a Critical Risks Program that focuses on the industry's most critical risks and controls. At Essakane, the site conducted a management review of its health and safety management system that is ISO 45001 certified. At Côté Gold, the site conducted emergency response and medical response preparedness for cyanide and caustic agents, in addition to completing a thorough third-party audit of grating, guarding, and handrails throughout the Mill complex. Westwood focused on enhancing incident investigation capabilities through incident cause analysis method (“ICAM”) training for supervisors and shared lessons learned to all workers.
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Environmental
In 2024, the key environmental focus areas for the Company are on water and biodiversity. The Company has begun the development of a water stewardship framework that takes a catchment-based planning approach, in order to enhance its management capacities in this area and allow the Company to evaluate its impacts and contributions to regional watersheds. The Company will also expand on the initial biodiversity assessment done in 2022 to develop a more comprehensive biodiversity 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.
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. The Closure Plan is expected to be filed in the second quarter 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 several biodiversity monitoring studies on fauna, including mammals, avians, reptiles, fish and insects as part of its Biodiversity Management Program.
At Westwood, the 2021 Closure Plan continues to be reviewed by the Quebec Ministry of Natural Resources and Forestry (“MRNF”). Westwood continues to pilot water recycling projects to reduce water withdrawal from the Bousquet River.
Côté Gold continued the review of its environmental management practices in preparation for the ramp-up of production. Côté Gold worked on freshet preparedness plans and mitigation measures in advance of the spring season. Côté Gold implemented a tool to monitor fauna on site. Côté Gold completed the installation of walleye spawning habitat as part of its offsetting plan for the Fisheries Act Authorization. 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.
As of March 31, 2024, there were zero environmental significant incidents.
Social Engagement
The sites continue to engage with their communities of interest and support community investment initiatives. At Essakane, key engagements and activities included discussions on the Yaya waste dump and monitoring of artisanal miners.
At Côté Gold, an evaluation of the implementation of the First Nations Impact Benefit Agreement (IBA) during construction was completed, the team met with the newly elected Mattagami First Nations Chief and Council and also provided a site tour for students at Laurentian University.
At Westwood, the team held the first meeting of the year with the Fayolle Stakeholder Monitoring Committee and conducted First Nations and communications training.
As of March 31, 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.
Equity, Diversity and Inclusion
Guided by the value principle to conduct ourselves with respect and embrace diversity, the Company continues to uphold its commitment to Equity, Diversity and Inclusion ("EDI") and to engage, empower and support our employees, as well as our partners in the communities in which we operate. The Company recognizes that diversity exists across many dimensions and lived experiences, and a diverse workforce and an inclusive work culture can inspire creativity and innovation, promote effective decision-making and lead to stronger business outcomes.
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The EDI Steering Committee, comprised of executive and senior business leaders and functional specialists, ensures that diversity efforts align with business strategy. Key prioritization for the Company is on retaining and attracting diverse talent through training and education, the improvement of working conditions and the expansion of individual growth opportunities. Additional focus is placed on the promotion of inclusive and equitable practices that enable a culture of belonging where every employee can excel both professionally and personally.
The Company has established a female representation target of 20% of overall workforce by 2030. Annual goals designed to achieve progress towards this are included as part of the ESG metric in the Company Scorecard, and progress towards goals is being tracked.
The Company is implementing the MAC TSM protocol on Equitable, Diverse and Inclusive Workplaces and also actively engages with the Mining Industry HR Council Canada, including representation on their Inclusion & Diversity Sub-Committee.
IAMGOLD has been recognized as a Greater Toronto Area Top 100 Employer for its efforts on various inclusion, engagement and culture work, and is a two-time Excellence Awardee in the Canadian HR Awards for financial, physical and mental wellness.
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.
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
Côté Gold Mine (IAMGOLD interest – 60.3%) | Ontario, Canada
| Q1 2024 | |
| Key Operating Statistics1 Ore mined (000s t) Grade mined (g/t) Operating waste mined (000s t) Capital 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 60.3% Gold sales (000s oz) – 100% | 1,944 0.72 |
| 3,208 2,445 | |
| 7,597 2.9 48 0.81 80 1 1 — |
1. 100% basis, unless otherwise stated.
2. Strip ratio is calculated as waste mined divided by ore mined.
Operations
On March 31, 2024, Côté Gold commenced production with the achievement of the first gold pour.
Mining activity totaled 7.6 million tonnes in the first quarter 2024, including 1.9 million tonnes of ore. The operations team continues to improve efficiencies of the mining operation, with new daily records achieved in April in excess of 160,000 tonnes hauled per day and 2,200 metres per day of drilling. The mining rate improvements were a result of commissioning of new autonomous haul trucks into the haulage fleet and commencement of double-side loading with the newly commissioned CAT 6060 hydraulic shovels. Combined with the 4.9 million tonnes of previously stockpiled ore, 6.7 million tonnes of material are available for the ramp-up of the processing plant.
A new 6060 hydraulic shovel and two additional autonomous haul trucks were commissioned in the first quarter 2024. An additional two autonomous haul trucks and a drill are expected to be commissioned later in the year.
Mill throughput in the first quarter 2024 was 48,000 tonnes at an average head grade of 0.81 g/t. Lower grade ore was used for initial testing following a build-up of in-circuit inventory. Head grades are expected to increase as the ramp up of the mill continues.
Mill commissioning activities in the first quarter 2024 progressed well with the crushing, HPGR and processing circuits performing as designed and power consumption being in line with expectations. The gravity circuit will be commissioned during the second quarter 2024. Throughout March and April, the crushing and milling circuits utilization rates progressively increased and the mill’s throughput capacity is in line with expectations at this stage of the ramp up. When online, the primary and secondary crushers, HPGR and ball mill operated at >95% of nominal throughput. Improving the stability and availability of the mill is the primary focus in order to ramp up the processing circuits’ utilization rates towards the goal of achieving commercial production in the third quarter of this year.
The initial discharge of tailings occurred in the final week of March and overall recovery is trending favorably, with the in-circuit gold inventory building up. Recovery during April has been in line with expectations.
Financial Performance (100% basis)
Mining costs of $25.2 million were incurred at an average cost of $3.32 per tonne. Mining costs per tonne continue to improve with the expansion of the autonomous haulage fleet and implementation of double sided loading with the 6060 shovels.
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For accounting purposes, revenue and cost of sales will be recognized from the commencement of sales. 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). Costs below are stated at 100%.
On March 8, 2024, based on the comprehensive energy management plan in place, the Ministry of Northern Development accepted the Côté Gold Mine into the Northern Energy Advantage Program (NEAP) providing the operation with a rebate on the price of electricity of C$0.02 per kWh.
Project and capital expenditures of $196.3 million on 100% basis, includes:
- Project expenditures of $151.7 million at an average USDCAD exchange rate of 1.34. Incurred project expenditures include the cost of consumable and supplies inventory purchased during the first quarter 2024. Since the commencement of construction, $2.935 billion of the planned $2.965 billion of project expenditures has been incurred. The plan assumed a USDCAD exchange rate of 1.25.
- In addition to the project expenditures, approximately $27.0 million of operating expenditures related to milling and surface costs have been capitalized in support of the commissioning and ramp-up efforts in advance of achieving commercial production.
- Capital expenditures for operations of $17.6 million, including $8.1 million of capitalized stripping, $8.0 million for tailings and earthworks, and other projects of $1.5 million.
2024 Outlook – 100%
Production at Côté Gold, on a 100% basis, is expected to be between 220,000 and 290,000 ounces for the year. This estimate is unchanged from previous guidance and 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.
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 11,300 metres were completed in the first quarter 2024 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.
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.
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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 six remaining dates between May 31, 2024, and November 30, 2026, to return to its full 70% interest in the Côté Gold Mine.
For accounting purposes, the JV Funding and Amending Agreement does not meet the requirements under IFRS to recognize the dilution of the Company's interest in the Côté UJV as a sale and the Company will continue to account for 70% of the assets and liabilities of the joint venture and for 60.3% of the revenues and costs, however, the Company will fund only 60.3% of the operating and capital expenditures through cash calls and receive 60.3% of the gold production. The Company has recognized a financial liability equal to the current repurchase price and option fee, which will include the incremental contributions made and less incremental gold production received by SMM due to its increased interest, up to achieving commercial production. SMM will retain the net proceeds or payments due from its increased interest from the achievement of commercial production up to the repurchase of the Transferred Interests.
The UJV agreement defines the start of commercial production as the first day of the month following the achievement of reaching 30 days of operations during which the mill operated at an average rate of not less than 60% of capacity. Up to the earlier of the Company exercising the Repurchase Option and November 30, 2026, the Company will pay a Repurchase Option fee to SMM equal to the three-month Secured Overnight Financing Rate ("SOFR") plus 4% on the amounts advanced by SMM, during construction and up to achieving commercial production, less the value of the incremental gold production up to achieving commercial production. The Repurchase Option fee accrued during 2023 will be payable upon the earlier of the Company’s exercise of the Repurchase Option or November 30, 2026. The Repurchase Option fee accrued from January 1, 2024 is payable in cash on a quarterly basis.
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