Iamgold Announces Results of Côté GOLD Project Update
NEWS RELEASE TSX: IMG NYSE: IAG
IAMGOLD ANNOUNCES RESULTS OF CÔTÉ GOLD PROJECT UPDATE
Toronto, Ontario, August 3 , 2022 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the
“Company”) today announced its updated estimate of costs to complete , project economics and life -of-mine
(“LOM”) plan for the Côté Gold project (“Côté Gold” or the “Project”) in Ontario, Canada. A NI 43-101 technical
report will be filed on SEDAR on or before September 17, 2022 . The project update concludes the Côté Gold
costs, schedule, execution strategy and risk review (“project review and risk analysis”) initiated by the Company
earlier this year. All dollar amounts are expressed in United States dollars, unless otherwise indicated.
Highlights of the Côté Gold 2022 Technical Report:
• After-tax net present value at a 5% discount rate (“NPV5%”) of $1, 109 million on a 100% basis , and an
internal rate of return (“IRR”) of 13.5% – at a gold price assumption of $1,700 in 2024 and 2025 and $1,600
thereafter and CAD:USD exchange rate of 1.25 (from May 1, 2022);
• Estimated remaining project costs to complete construction and bring Côté Gold into production of $1,908
million ($1,335 million attributable to IAMGOLD) including escalation and contingency as of May 1, 2022;
• Mine life of 18 years with initial production expected in early 2024;
• Average annual production of 495,000 ounces (3 20,500 ounces attributable) during the first six years
following commercial production, and 365,000 ounces (236,000 ounces attributable) over the LOM;
• LOM average cash costs of $693 per ounce gold (“/oz Au”) sold and all-in sustaining costs (“AISC”) of $854/oz
Au sold;
• Cumulative net operating cash flow of $6,086 million and after-tax free cash flow of $2,597 million;
• Côté Gold LOM plan based on Mineral Reserves of 7.2 million ounces in the Côté deposit;
• Côté deposit Measured & Indicated Mineral Resource estimate (inclusive of Mineral Reserves) of 10.2 million
ounces; Gosselin deposit Measured & Indicated Resource estimate of 3.4 million ounces; and
• District scale potential with demonstrated exploration upside in one of the world’s leading mining jurisdictions.
Maryse Bélanger, Chair of the Board and Interim President and CEO, said: “ The completion of the Côté Gold
project review, risk analysis and updated mine plan is the culmination of months of in-depth analysis of the project,
based on first principles , by the Company ’s management and project teams, EPCM contractor and technical
experts. The project today is over 57% complete and the updated project costs and schedule give us greatly
improved visibility towards completion. Côté Gold is a project that is being advanced in an environment with
significant headwinds, including COVID-19, inflation and other global events – and their impacts on global supply
chains, labour availability, and the associated costs of doing business. We are very proud of our teams as they
navigate these challenges to continue to advance the project for the benefit of our partners, stakeholders and our
business.
“Côté Gold is transformational for IAMGOLD. Once in production, the Project is projected to offer robust free cash
flow generation, averaging 365,000 ounces per year at AISC of $854 per ounce for 18 years , based on the 7.2
million ounces currently estimated in Mineral Reserves. There is also tremendous potential for future expansion,
starting with the Gosselin deposit , located immediately adjacent to the Côté pit containing 3.4 million ounces in
Indicated Mineral Resource and an additional 1.7 million ounces in Inferred Resources. Gosselin has only been
drilled to half the depth of Côté and remains open along strike. We believe th at Côté Gold is not just a project,
but the start of a district, with minimal historical exploration targeting Côté/Gosselin style intrusion-hosted deposits
within our 596 km2 land package.
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“Given the importance of Côté Gold to achieve our goal of becoming a leading high-margin gold producer, we are
actively pursuing various alternatives to increase liquidity to complete construction and deliver Côté on the
updated schedule. We expect to address these near -term challenges to advance Côté and better position
IAMGOLD as a more resilient, agile company for the current environment.”
SUMMARY OF THE 2022 TECHNICAL REPORT FOR CÔTÉ GOLD
Metrics Unit Côté Gold
@ 100%3,4
Gold Price
2024/2025 $/oz $1,700
LT $/oz $1,600
Exchange Rate USD:CAD 1.25
Production
Mine Life (from commercial production) Years 18
Total Ore Tonnes Mined kt 236,000
Total Waste Tonnes Mined kt 568,000
Strip ratio waste:ore 2.4
Total Ore Processed kt 233,000
Processing throughput rate tpd 37,200
Average Gold Grade, Processed g/t Au 0.96
Average Recovery Rate % 91.8
Recovered Gold oz 6,578,000
Average Annual Gold Production oz 365,000
Avg. Annual Gold Production (years 1 - 6) oz 495,000
Unit Operating Costs
Mining (gross cost incl. CWS) $/t mined $2.62
Mining (net cost excl. CWS) $/t processed $6.20
Processing $/t processed $7.97
G&A $/t processed $3.31
On-site operating cost $/t processed $17.48
Total operating cost $/t processed $19.56
Operating Costs
Cash costs2 $/oz Au sold $693
AISC2 $/oz Au sold $854
Project Costs
Costs to complete1 $M $1,908
Sustaining capital2 (excl. capitalized waste stripping) $M $518
Capitalized waste stripping $M $462
Closure $M $83
Economic Results
Net Operating Cash Flow $M $6,086
Cumulative After-Tax Free Cash Flow1,2 $M $2,597
After-Tax NPV5%1 $M $1,109
After-Tax IRR1 % 13.5
Payback Period1 Years 5
Notes:
1. Costs to complete, cumulative after-tax free cash flow, NPV5%, IRR and payback period are on a go forward basis and exclude
sunk costs up to May 1, 2022.
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2. This is a non-GAAP measure. Refer to “Non-GAAP Financial Measures” at the end of his news release.
3. Project costs incurred until May 1, 2022 at 1. 27 CADUSD and project costs from May 1, 2022 and operating costs at 1.25
CADUSD.
4. The updated metrics are based on what was previously known as the Base Case (203 Mt) plus the Extended Case (30 Mt). The
Extended Case mine plan, supported by exploitation of the total Mineral Reserves estimate, includes 233 million tonnes compared
to the Base Case of 203 million tonnes over the LOM and adds two additional years to the Base Case mine life without expanding
the footprint of the Project. Please see "Cautionary Statement Regarding Forward-Looking Information" below.
The Côté Gold project is a 70:30 joint venture between IAMGOLD, as the operator, and Sumitomo Metal Mining
Co., Ltd. ("SMM"), which collectively has a 92.5% ownership in the project. The Company effectively owns 64.75%
of the Côté Gold project, including the Côté and Gosselin deposits, and associated land packages. In accordance
with the terms of the joint venture, the updated project costs, sched ule and LOM plan is being independently
reviewed by SMM.
The updated information will be incorporated in a new technical report titled “Technical Report on the Côté Gold
Project, Ontario, Canada” (the “2022 Technical Report”) prepared by representatives of SLR Consulting (Canada)
Ltd., Wood Canada Limited and IAMGOLD, each of whom is a "qualified person" (a "QP") , in accordance with
National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The 2022 Technical
Report supersedes the technical report on the Côté Gold project dated November 26, 2021 (the “2021 Technical
Report”). The 2022 Technical Report will be filed on SEDAR on or before September 17, 2022 and readers are
encouraged to re view the 2022 Technical Report in its entirety, including all qualifications, assumptions and
exclusions that relate to the details summarized in this news release.
Information relating to the property description and location, land tenure, existing infrastructure, history, geology
and minera lization, mineral resources, mineral reserves, mining method, mineral processing, infrastructure,
environmental, permitting and social considerations remains materially similar to information provided in respect
of these elements in the 2021 Technical Report adjusted, as applicable, to reflect the status of the project as of
May 1, 2022. In addition, current information in respect of the mine plan, capital and operating costs estimates
and economic analysis is presented in the 2022 Technical Report.
Figure 1 – Côté Gold Production Profile (100%)
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100
200
300
400
500
600
700
Production (000 oz)
Cόté Gold Production
2022 Technical Report 2021 Technical Report
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Project Description
The Côté Gold project is located in the Chester and Yeo Townships, District of Sudbury, in northeastern Ontario.
It is approximately 25 km southwest of Gogama, 125 km southwest of Timmins, and 175 km northwest of Sudbury.
The project is accessible year-round via a 5 km road connecting to Highway 144. The Côté Gold properties were
assembled through staking and option agreements covering a total area of approximately 596 km2. Côté Gold is
located on Treaty 9 Territory, on the traditional lands of Mattagami First Nation and Flying Post First Nation, and
within the traditional harvesting area of the Métis Nation of Ontario, Region 3.
Mineral Resources and Reserves Summary
Mineral Resources
Mineral Resources for the Côté Gold deposit are unchanged from the 2021 Technical Report.
Summary of Côté Mineral Resources – December 19, 2019
Côté Gold Project
Classification Tonnage
(Mt)
Grade
(g/t Au)
Contained Metal
(Moz Au)
Measured 152.1 0.97 4.72
Indicated 213.4 0.80 5.48
Measured and Indicated 365.5 0.87 10.20
Inferred 189.6 0.63 3.82
Notes:
1. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves
(CIM (2014) definitions) were followed for Mineral Resources.
2. Mineral Resources are inclusive of Mineral Reserves.
3. Mineral Resources are estimated at a cut-off grade of 0.3 g/t Au.
4. Mineral Resources are estimated using a long term price of US$1,500/oz Au, and a CADUSD exchange rate of 1.30.
5. Bulk density varies from 2.69 t/m3 to 2.85 t/m3.
6. Mineral Resources are constrained by an optimized resource pit shell.
7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
8. Numbers may not add due to rounding.
Mineral Reserves
Mineral Reserves were classified in accordance with the CIM (2014) definitions. Only Mineral Resources that
were classified as Measured and Indicated were given economic attributes in the mine design and when
demonstrating economic viability were classified as Mineral Reserves . Mineral Reserves for the Côté deposit
incorporate mining dilution and mining recovery estimations for the open pit mining method.
Mineral Reserves Statement – May 1, 2022
Côté Gold Project
Classification Tonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(Moz Au)
Total Mineral Reserves
Proven 130.9 1.01 4.26
Probable 102.1 0.88 2.91
Proven and Probable 233.0 0.96 7.17
Notes:
1. Measured Mineral Resources and Indicated Mineral Resources that are not Mineral Reserves are considered uneconomic at the
price used for Mineral Reserve estimations but are deemed to have a reasonable prospect of economic extraction.
2. The effective date of the Mineral Reserves estimate is May 1, 2022.
3. The Mineral Reserves were estimated assuming open pit mining methods and are reported on a 100% Project basis.
4. Mineral Reserves used the following assumptions: price of $1,200/oz Au; fixed process recovery of 91.8%; treatment and
refining costs, including transport and selling costs of $1.75/oz Au; variable royalty percentages by zone: 0.75% for Zone 1,
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1.00% for zone 2, 0.00% for zone 3, 1.50% for zone 4, 0.75% for zone 5, 1.50% for zone 6, and 0.75% for zones 7 and 8;
overall pit slope angles varying by sector with a range of 45.8° to 56.4°; processing costs of $10.17/t, which includes process
operating costs of $7.01/t, general and administrative costs of $1.84/t, sustaining costs of $0.82/t, and closure costs of $0.50/t;
mining costs of $1.61/t incremented at $0.029/t/12m below 388 elevation (life-of-mine average mining costs of $2.01/t); and
rehandling costs of $0.87/t. The cut-off applied to the reserves is 0.35 g/t Au.
5. Numbers have been rounded. Totals may not sum due to rounding.
Pit optimization parameters, financial assumptions, pit -shell selection, and mining dilution and recovery factors
remain unchanged from the 2018 feasibility study technical report. The mine design was updated to optimize pit
phasing, ramp location, and waste stripping, resulting in negligible changes to Mineral Reserves compared to the
previous estimate, and small reductions in waste.
Mine Design and Mining Methods
The mine will operate a fleet of autonomous trucks and blasthole drills, supported by a conventional fleet for
loading and ancillary equipment. The truck fleet is diesel-powered and provides enough capacity to mine an
average of approximately 54 Mtpa, with a peak of 70 Mtpa by the addition of five haul trucks by year 8 . The
loading fleet will include two electric-powered hydraulic shovels, supplemented by three large diesel -powered
front-end loaders (FELs). Primary mobile equipment will consist of:
• Loading – CAT 6060 electric/hydraulic (6060E) shovel and CAT 994K high lift FELs
• Hauling – CAT 793F mechanical drive truck operated in autonomous mode
Pre-production commenced with contract mining in the first quarter 2021 and consists of overburden removal,
construction material supply, and initial bench development. Contractor mining will phase out in the first quarter
2023 towards a handoff to owner mining in the second quarter 2023. In parallel, delivery of autonomous
equipment has begun in the second quarter of 2022 and owner mining is expected to commence in the first
quarter of 2023. The mine is scheduled to operate 24 hours per day, seven days per week (24/7 schedule), using
four rotating crews working 12 hour shifts.
The Côté pit design has been updated to be mined in five phases. The scheduling constraints establish the
maximum mining capacity at 70 Mtpa and the maximum number of benches mined per year at eight in each
phase. The design parameters include a ramp width of 36 m, maximum road grades of 10%, bench height of 12
m, berm height interval of 24 m, geotechnical catch bench of 20 m if stacking height is greater than 150 m, a
minimum mining width of 40 m, and variable slope angles and berm widths by sector.
The final pit design contains 235 Mt of ore at 0.95 g/t Au and 575 Mt of waste for a resulting stripping ratio of 2.4:1
(waste:ore). The total LOM mill feed is 233 Mt at 0.96 g/t Au, constrained by the TMF capacity, and 2.3 Mt of low
grade ore material remaining in stockpiles at the end of mine life.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Material Moved (000 tonnes)
Total Material Moved
Direct Feed Rehandle To Stockpile Waste
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Figure 2 –Material Movement Schedule
The updated mine plan in the 2022 Technical R eport has made the following changes in assumptions in mine
design and mining from the 2021 Technical Report:
• Revised pit phasing incorporating a Phase 1 Pit design centered on a higher-grade zone and re-phasing
of Phases 2-4;
• Steeper ramp gradient in Phase 1 (10% versus 8% previously) allowing to reach an additional bench at
the bottom of the Phase 1 pit;
• Modification to starter pit boundaries to optimize waste mined during the project period;
• Modified stockpile strategy for LOM plan to minimize stockpile re-handling of mill feed material;
• Reviewed owner mining ramp-up assumptions and expanded shift schedules; and
• During the pre-production period, the truck and shovel equipment utilization has been reduced to account
for autonomous commissioning, initial site conditions, and operator skill level. The schedule allows for a
one year truck commissioning period.
Figure 3 – Pit Phasing Comparison for 2022 Technical Report
Processing Plant
The process flowsheet includes a primary/secondary crushing circuit, HPGR tertiary stage, followed by two stages
of grinding (ball and vertical milling), gravity concentration and cyanide leaching, gold recovery by CIP, stripping
and electrowinning (EW). The HPGR and grinding circuits will target a final product size of P 80 100μm. Cyanide
destruction and tailings thickening are also integrated in the processing facility. Average recovery is estimated at
91.8% throughout LOM, with gold recovery by gravity estimated at 23%.
The new mine plan contains updated assumptions and inputs for initial ramp-up of the plant. The updated model
forecasts early ramp-up to be per design up to about 70% mill utilization. Steady-state is expected to be achieved
over 20 months (previously 10 months) achieving a maximum of 92.6% utilization (previously 94%).
Design throughput is for 1,596 tph ore (35,500 tpd) processing capacity but several components including
electrical circuit, chutes, pumps and pump boxes are designed for 1,862 tph (42,000 tpd) . The maximum
throughput potential of the plant was reviewed against McNulty start -up curves, with the Côté Gold plant and
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technology fitting the type 1 curve. The project economic model assumes a McNulty 1 start-up curve resulting in
the processing plant achieving 105% of nameplate capacity, or 37,200 tpd, by year 3.
Figure 4 – Processing Plant Throughput and Head Grade
Project Costs
From May 1, 2022, the remaining costs to complete Côté Gold are estimated at $1,908 million on a 100% basis
and net of leases ($1,335 million attributable to IAMGOLD) including contingency of $185 million and escalation
allowance of $80 million.
Project Scope
Project Costs
@ 100%
(US$ million)1
Procurement 343
Earthworks 575
Process 519
Infrastructure 162
Indirects and EPCM 533
Mining 274
Owner’s Costs 294
Contingency 185
Escalation 80
Revised Project Budget (100% Basis) 2,965
Less Early Works Sunk Cost -75
Subtotal excluding Sunk 2,890
Less incurred to April 30, 2022 -982
Costs Going Forward 1,908
Costs attr. to IAMGOLD (70%) 1,335
Notes:
1. Project costs incurred prior to May 1, 2022 at an actual exchange rate of 1.27 CADUSD. Estimated project costs from May 1,
2022 onwards at 1.25 CADUSD.
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
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2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Head grade (g/t)
Annual Throughput (000 tpa)
Throughput vs Head grade
Throughput Grade
0
100
200
300
400
500
600
Procurement
Earthworks
Process
Infrastructure
Indirects and EPCM
Mining
Owner’s Costs
$ million
Project Costs
Incurred Remaining
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Operating Costs
Over the LOM, total cash costs are expected to average $693/oz Au sold or $19.56 per tonne (“/t”), and AISC are
expected to average $854/oz Au sold.
LOM $/tonne $/tonne $/oz
$M material processed sold
Mining (gross costs incl. CWS)1 $2.62
Mining (net cost excl. CWS)2 $1,445 $6.20 $220
Processing $1,856 $7.97 $282
G&A $772 $3.31 $117
Subtotal $4,073 $17.48 $619
Royalties + Offsite costs $485 $2.08 $74
Total cash costs $4,558 $19.56 $693
Sustaining Capital $518 $2.22 $79
Capitalized waste stripping (CWS) $462 $1.98 $70
Asset retirement obligation $83 $0.35 $13
AISC $5,620 $24.12 $854
Totals may not add up due to rounding
1. Mining (gross cost incl. CWS) is the mining cost including capitalized waste stripping costs
2. Mining (net cost excl. CWS) is the mining cost excluding capitalized waste stripping, with this amount being transferred
to sustaining capital
Mining Costs
Mining costs are estimated to average $ 2.62/t of material mined over the LOM. Net mining costs are estimated
at $6.20/t processed, which excludes capitalized waste stripping (“CWS”) expenditures transferred to sustaining
capital based on World Gold Council (WGC) guidelines. A total of 220 Mt of mined material is classified as CWS
during the LOM with a small amount in Phase 4 and Phase 5 classified as non-sustaining capital (27 Mt) and the
remainder as sustaining capital (193 Mt).
On a cost by cost centre basis, mine haulage accounts for 39% of the mine operating costs. Open pit servi ces
accounts for 7% of the mine costs, followed by loading, blasting, and drilling. Contract mining accounts for 6% of
the costs and stockpile rehandle accounts for 5%. Other costs include costs for pit dewatering, engineering and
geology, and operations and management overhead.
Mining costs increased 1 5% from the 2021 Technical Report due to a number of factors, including increased
headcount and extended ramp up assumptions. Diesel fuel, maintenance parts and supplies, and personnel costs
are the largest cost items, followed by contract services, autonomous licence fees, explosives, and tire costs.
Process Costs
Process operating costs over the LOM are estimated to average $7 .97/t of processed ore, increasing 7.7% from
the 2021 Technical Report. The cost increases are related to higher contractor maintenance costs for monthly
and annual shutdowns, increased maintenance costs in the first three years, and an increase in TMF operations
and monitoring costs.
The cost breakdown of operating costs for the processing plant include the following:
• Reagents represent approximately 25% of the total process operating cost at $1.99/t milled;
• Wear parts and maintenance supplies represent approximately 22% of the total process operating cost
at $1.75/t milled;
• Grinding media represent approximately 15% of the total process operating cost at $1.19/t milled;
• Personnel costs represent approximately 15% of the total process operating cost at $1.21/t milled;