Iamgold Announces Updated Strategic Focus & Asset Portfolio Optimization, Preliminary 2021 Operational Results & 2022 Guidance, Côté Q4 Activities and Rosebel Update Strategic Focus
NEWS RELEASE TSX: IMG NYSE: IAG
IAMGOLD ANNOUNCES UPDATED STRATEGIC FOCUS & ASSET PORTFOLIO
OPTIMIZATION, PRELIMINARY 2021 OPERATIONAL RESULTS & 2022 GUIDANCE,
CÔTÉ Q4 ACTIVITIES AND ROSEBEL UPDATE
Strategic Focus
Prioritizing highest return portfolio assets with the strongest net free cash flow and value creation; commencing
a strategic review process to evaluate options for Rosebel
2021 Operational Results
2021 attributable gold production of 601,000 ounces near the top of the updated production guidance
Cash costs1 expected to be within updated guidance range of $1,115 to $1,150 per ounce sold
All-in sustaining costs (“AISC”)1 expected to be within updated guidance range of $1,395 to $1,435 per ounce
sold2
2022 Outlook
Attributable gold production guidance of 570,000 to 640,000 ounces
Cash costs guidance of $1,100 to $1,150 per ounce sold3 and AISC guidance of $1,650 to $1,690 per ounce
sold
Côté Gold Project
Project completion at 43.4% and remains on track for H2 2023 commercial production
Rosebel Life of Mine Plan
Potential for extended mine life; expected to ramp up to over 300,000 ounces per year
Toronto, Ontario, January 12, 2022 – IAMGOLD Corporation (“IAMGOLD” or the “Company”) today announced
preliminary full year and fourth quarter 2021 operational results, 2022 operational outlook, a progress update for
the Côté Gold Project (“Côté Gold”), updated Mineral Reserves and Mineral Resources estimates and a new life-
of-mine plan (the “Rosebel 2022 LOMP”) for the Rosebel Gold Mine, including the satellite Saramacca Mine
(together, “Rosebel”).
As part of a focused strategy to prioritize the highest return assets within the portfolio to achieve the strongest net
free cash flow and value creation for shareholders, while concentrating on core operating jurisdictions, th e
Company has been progressing a review of its portfolio of assets. The key objective of this review is to deliver an
appropriate allocation of capital and resources between the Company’s existing mines and its Côté Gold project
to generate the best return on invested capital while advancing Côté Gold to production.
“IAMGOLD finished with a strong quarter bringing production for the year to the upper end of revised guidance as
we strive to deliver on our commitments ,” stated Gordon Stothart, President and Chief Executive Officer of
IAMGOLD. “Looking ahead, we are fully focused on bringing Côté Gold into production and we remain on track to
commence commercial production in the second half of 2023 . Operationally, we expect continued strong
performance at Essakane, following a record year of production in 2021, supporting the turnaround at Rosebel
and continued ramp up of Westwood. At the same time, we will continue our review to ensure we focus on value
generating assets, maximizing net free cash flow, and prudent management of IAMGOLD’s capital – towards our
goal of becoming a leading high-margin gold producer.”
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OPERATIONS
Fourth Quarter and Full Year 2021 Operational Results
In 2021, IAMGOLD achieved attributable gold production of 601,000 ounces, in line with updated guidance of
565,000 to 605,000 ounces, and including 153,000 ounces produced in the fourth quarter. Annual revenues4 were
approximately $1.2 billion based on attributable gold sales of 590,000 ounces. Fourth quarter revenues were
approximately $295 million based on attributable gold sales of 152,000 ounces.
Quarter ended December 31, 2021 Essakane Rosebel Westwood Consolidated
Q4 2021 Q3 2021
Gold produced, attributable* koz 98 42 13 153 153
Material mined kt 15,016 13,788 290
Waste mined kt 10,903 11,594 -
Ore mined kt 4,113 2,194 290
Mill feed kt 3,292 2,449 254
Mill feed grade g/t 1.13 0.78 1.83
Gold recovery % 91 86 90
Full year 2021
Essakane Rosebel Westwood Consolidated
2021 2020
Gold produced, attributable* koz 412 154 35 601 653
2021 guidance koz 390 – 400 140 – 160 35 – 45 565 – 605
Material mined kt 60,420 43,138 1,025
Waste mined kt 44,405 37,163 -
Ore mined kt 16,015 5,975 1,025
Mill feed kt 12,948 9,887 965
Mill feed grade g/t 1.31 0.70 1.24
Gold recovery % 84 85 92
Cash costs1 $/oz $1,115 – $1,150 $988
AISC1 $/oz $1,395 – $1,435 $1,232
Notes: The numbers contained in this document are subject to finalization.
Attributable ounces account for IAMGOLD ownership interest s: Essakane – 90%; Rosebel (excluding Saramacca) – 95%, Saramacca – 66.5%;
Westwood – 100%
Annual attributable gold production for Essakane was 412,000 ounces (457,000 ounces on a 100% basis) ,
exceeding the upper end of the updated guidance range of 390,000 to 400,000 ounces, as the mine continued to
benefit from the mill debottlenecking project completed earlier in the year. In the fourth quarter, attributable
production was 98,000 ounces based on a record mill feed of 3.3 million tonnes at a head grade of 1.13 grams
per tonne gold (“g/t Au”) and improved gold recoveries of 91% as mining activities moved into lower graphitic ore
zones.
Annual attributable gold production for Rosebel was 154,000 ounces (188,000 ounces on a 100% basis) , at the
upper end of the updated guidance range of 140,000 to 160,000 ounces. In the fourth quarter, attributable
production was 42,000 ounces based on total mill feed of 2.4 million tonnes at an average head grade of 0.78 g/t
Au and average recovery of 86%. Mining activities saw the Rosebel pits contribute 1.16 million ore tonnes with a
strip ratio of 8.1 (waste to ore), and Saramacca contribute 1.03 million ore tonnes with a strip ratio of 2.1 (waste
to ore). Efficiency improvements of the carbon adsorption/desorption circuit were completed at the end of the
fourth quarter, with further improvements in the drawdown from gold-in-circuit expected in the first quarter of 2022.
Annual gold production for Westwood w as 35,000 ounces, at the lower end of updated guidance of 35,000 to
45,000 ounces, following the restart of underground operations in June 2021. In the fourth quarter, the operations
produced 13,000 ounces, as ore production from Westwood underground ramped up and resulted in a higher
average head grade of 1.83 g/t Au. Mill feed totaled 254,000 tonnes and gold recoveries were 90%. Although
underground mine productivity is improving, the pace of the ramp up remains cautious in keeping with the safety-
first culture of IAMGOLD, as the Company continues to prioritize the implementation of enhanced ground support
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and additional safety measures , coupled with continued pressures associated with general labour shortages in
the region.
The Company’s consolidated cash costs and consolidated AISC for its three operating mines are expected to be
between the 2021 updated guidance ranges of $1,115 and $1,150 per ounce sold and $1,395 and $1,435 per
ounce sold, respectively , excluding the impact of potential net realizable value adjustments on long term
stockpiles. Long term stockpiles include historic costs which relate to ore mined in prior periods not expected to
be processed in 2022. Capital expenditures for 2021 are exp ected to come in line with expectations, with Côté
Gold preliminary spending in the fourth quarter estimated at $147 million, comparing well with guidance estimates
of $150 million.
IAMGOLD ended 2021 with approximately $545 million in cash and cash equivalents, $42 million in restricted
cash, $8 million in short term investments and $498 million in its undrawn credit facility.
COVID-19 Response
The global COVID-19 pandemic continues to evolve. Despite widespread mass immunization programs intended
to limit the effect of the virus in many countries, including Canada and Suriname, the emergence of new variants,
such as the new Omicron variant, has been causing rates of infection to rapidly increase again globally . The
Company continues to closely monitor developments and is taking necessary measures to manage the impact of
the COVID-19 pandemic on its personnel, operations, construction and development projects and exploration
activities. The previously implemented protocols remain in place at our sites and are reviewed on an ongoing
basis to adapt to the evolving situation.
2022 Guidance
IAMGOLD’s operational guidance for 2022 is as follows:
Attributable gold production of 570,000 to 640,000 ounces;
Cash costs1 between $1,100 and $1,150 per ounce sold;
AISC1 between $1,650 and $1,690 per ounce sold. Sustaining capital expenditures have increased due to a
higher proportion of stripping costs categorized as sustaining capital due to the particular areas that are mined
and the stage of the mine's life to align with World Gold Council guidelines;
Sustaining capital expenditures 1 of $310 million (± 5%) of which the majority is related to capital waste
stripping and underground development;
Côté Gold expenditures of between approximately $590 to $620 million;
Other expansion capital expenditures 1 (ex-Côté Gold) of approximately $70 million (± 5%) including
approximately $20 million at Boto Gold project; and
Exploration expenditures of approximately $35 million, including near-mine and greenfield programs.
Operating Guidance Consolidated Essakane Rosebel Westwood Côté Boto
Gold production, attributable* koz 570 – 640 360 – 385 155 – 180 55 – 75
Cash costs1 $/oz 1,100 – 1,150
AISC1,2 $/oz 1,650 – 1,690
Sustaining capital1 expenditures
(± 5%) incl. capitalized stripping* $M 310 165 105 40
Expansion capital1 expenditures
(± 5%)* $M 660 – 690 5 35 10 590 – 620 20
Notes: Figures may not add due to rounding. The 2022 guidance is based on the following full year assumptions: USD:CAD exchange rate of 1.25
(Côté 2022 capital expenditures assumes USD:CAD of 1.30), EUR:USD exchange rate of 1.20 and average crude oil price of $70 per barrel.
* Attributable ounces and capital expenditures account for IAMGOLD ownership interests: Essakane – 90%; Rosebel (ex -Saramacca) – 95%,
Saramacca – 66.5%; Westwood – 100%; The Company owns 64.75% of Côté Gold and is contributing 70% of the Côté Gold joint venture capital
expenditures.
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In 2022, Essakane attributable gold production is forecast to be in the range of 360,000 to 385,000 ounces, with
production expected to be relatively steady over the year as planned grades normalize closer to reser ve grades,
offset slightly by higher recoveries due to expected lower graphitic content. Cash costs are expected to increase
slightly due to increased cost pressures and additional security measures . The increase in AISC reflects the
increase in operating costs, as well as higher sustaining capital and capitalized waste stripping. Sustaining capital
expenditures of $165 million include capitalized waste stripping , while expansion capital expenditures are
expected to reduce accordingly to approximately $5 million. Looking beyond 2022, Essakane is expected to
continue to produce in the range of 325,000 ounces and 375,000 ounces in each of 2023 and 2024.
In 2022, Rosebel attributable gold production is forecast to be in the range of 155,000 to 180,000 ounces, with
production expected to be stronger in the second half after the seasonal rains subside and as a result of expected
increased recoveries from continuing refurbishment initiatives at the mill complex. Sustaining capital expenditures
of $105 million include capitalized waste stripping, tailings facility expansion and maintenance. Expansion capital
of $35 million includes the completion of non -critical path items related to Saramacca and investments in the
processing facility. Looking beyond 2022, Rosebel is expected to produce 180,000 to 200,000 of attributable gold
ounces in 2023 and 2024. The Company has completed an updated Mineral Resource and Mineral Reserve
estimate and life -of-mine plan for Rosebel, details of which are outlined below in the sec tion titled “ Rosebel
Update”.
In 2022, gold production at the Westwood complex is forecast to be in the range of 55,000 to 75,000 ounces,
assuming the safe re -start of two additional underground zones ( Central and West ). Production levels are
expected to increase each quarter benefitting from the continued ramp -up of underground mining activities and
increasing grade from the adjacent Grand Duc open pit. Looking beyond 2022, the Company is continuing to
evaluate potentia l strategic alternatives for Westwood, while ramping up mining activities and development ,
balanced with the need for the ground support activities implemented in 2021. The additional development and
resumption of mining in the Central and West zones are expected to allow for the Westwood complex to ramp up
to the 90,000 to 100,000 ounce per year production level with corresponding improvements in cost profile.
Fourth Quarter and Full Year 2021 Financial Results
IAMGOLD will release its fourth quarte r and full year 2021 financial results after market hours on Wednesday,
February 23, 2022. A conference call will be held on Thursday, February 24, 2022, at 8:30 a.m. (Eastern Time)
for a discussion with management regarding IAMGOLD’s 2021 fourth quarter and full-year operating performance
and financial results.
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CÔTÉ GOLD - FOURTH QUARTER PROJECT UPDATE
Project Activities
In December 2021, the Company announced the appointment of Jerzy Orzechowski as Executive Project Director
for Côté Gold. Mr. Orzechowski is a senior executive specializing in project development, management,
engineering, construction and strategic planning with 40 years of experience working in various project execution
strategies (EPC, EPCM, joint ventures, turn -key) and in all phases of large capital project s implementation and
execution. His wealth of experience with large projects will be invaluable in bringing Côté Gold through
construction completion to production. The management of the project now reports to Mr. Orzechowski and he
reports directly to the CEO and is involved in the oversight by the Côté Project Review Committee of the Board.
As of December 31, 2021, detailed engineering reached approximately 92.2% with plant civil and concrete
deliverables principally completed and mechanical, piping, electrical and instrumentation continuing into the first
quarter of 2022. O verall the Project was approximately 43.4% complete. The following provides an update on
project activities for the fourth quarter of 2021:
Project Activity Q4 2021 Update
Health and safety The Project surpassed 3.4 million hours with no lost time injuries. Our COVID -19
monitoring programs, including antigen, PCR and sewage testing, remain robust and we
continue to assess site protocols in view of the emergence of the Omicron variant. The
return of the workforce from the holiday period is being structured to adjust ramp up and
permit close monitoring of the Omicron variant threats. Improvements in vaccination rates
on site continued.
Earthworks activities Earthwork activities continued with the main focus on ensuring major infrastructure for
2022 freshet are in place. Water realignment channel work continued. Clam Lake Dam #1
and #2 are now complete. Work on New Lake South Dam final lifts was completed prior to
the end of the year and New Lake North Dam is progressing well. Tailings management
facility starter dam foundation excavation commenced as planned in early December.
Mining activities Overburden pre-stripping in the pit is advancing and during the period access to fresh rock
was achieved to the east. The first ore blast was taken in October 2021 in the southern
area of the pit and mining activities broke through elevation 382 throughout several areas
of the pit – a significant milestone achieved for the project.
Processing plant Processing facility structural steel erection, which commenced in mid -October, has
completed all major lifts with only a minor part of in-fill steel remaining to be erected for the
high-bay grinding section of the building. Wall panel cladding installation has started with
approximately 32% completed at quarter end. The Company remains on track for process
building enclosure by the end of the first quarter of 2022. Other civil works associated with
the processing facility including the HPGR/secondary crusher building and primary
crushing building were completed during the quarter. The primary crusher feeder frames,
chutes and associated supports are now on site. Fabrication of conveyors is progressing
well with delivery as sections are completed. Major components of the ball mill such as
motor, chillers and shells are progressing well and elements have started shipping.
Other activities and
supply chain
Permanent camp commissioning is complete providing, along with the construction camp,
a total of 1388 rooms. The project averaged approximately 800 workers at site prior to the
ramp down for the holidays. The permanent potable water treatment plant has been
commissioned and the camp is planning to switch to grid power early in the new year.
Work on the 42 kilometer 115KV power line has started with tree clearing.
Equipment delivery is ongoing and inventory on site continues to increase. We continue to
closely monitor global logistics risks and, a t this time, are not expecting material impacts
on the project schedule, although challenges in the global supply chain persist which may
be amplified by impacts from the current Omicron wave.
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Project Activity Q4 2021 Update
Permitting and
sustainability
The Company secured a number of key operations phase permits during the quarter,
including the provincial Environmental Compliance Authorization for operations, the key
remaining permit, the permit to take water and permits required to support the construction
of the transmission line. Community consultations and ongoing implementation of the
impact benefit agreements signed with indigenous partners continue. Remaining, non -
critical path, minor permits are expected to be received during the remainder of the project.
Operational
readiness
Operational readiness continued to advance mainly focused on organizational design, and
hiring, and initiation of training programs which are expected to ramp up in the first quarter
of 2022. Other key activities included the ongoing work related to the identification of spare
parts requirements for critical equipment and procurement strategies for key consumables.
Project Expenditures
At the end of the fourth quarter 2021, 87% of procurement and 79% of contracts packages have been awarded.
The Company incurred $119 million and expended $147 million in project costs (at an average recorded USDCAD
exchange rate, excluding the impact of hedges, of 1.27) in the fourth quarter of 2021 and expended $412 million
(at an average recorded USDCAD exchange rate of 1.26) since July 1, 2020, including capital expenditures
summarized in the table below and non-capital project costs.
Q4 2021
Q3 2021
Q2 2021
Q1 2021
2021
Since
July 1, 2020
Expended costs* ($ millions) $147 $72 $90 $50 $359 $412
Project costs prior to July 1, 2020 are not included in the Company’s portion of reported total expended costs. Project costs include (i) o re mined
recorded as stockpiles which totaled $1.8 million in the fourth quarter 2021, and (ii) certain offsets including realized derivative gains of $4.8 million
in the fourth quarter and $16.2 million in 2021.
The Company's share of estimated remaining total costs to completion from January 1, 2022 onwards is $710 to
$760 million and is estimated to be expended based on the following updated schedule: 2022 – approximately
$590 to $620 million; and 2023 – approximately $120 to $140 million. These amounts are estimated at a USDCAD
exchange rate of 1.30 and take into consider ation working capital adjustments and the schedule and upcoming
milestones set out below. Accordingly, actual reported results may vary.
Schedule and Upcoming Milestones
Construction of the project commenced in the third quarter 2020 and major earthworks commenced in the first
quarter 2021. The project remains on track for commercial production in the second half of 2023 with the following
remaining key milestones:
• Process building enclosed: Q1 2022
• Start of owner mining: Q3 2022
• Tailings Management Facility Phase 1: Q4 2022
• Permanent power available: Q4 2022
• Commissioning completed: Q3 2023
• Commercial production: H2 2023
Although to the end of the fourth quarter 2021, n o material delays due to the COVID-19 pandemic have been
experienced at site, cases in Ontario and other provinces have risen rapidly into January 2022. The schedule and
timing of expenditures going forward do not account for any potential delays or disruptions caused by the COVID-
19 pandemic, including potential impacts on timing of activities, availability of workforce and productivity, supply
chain and logistics.
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Other Developments in the Fourth Quarter 2021
The Company reported in October 2021 an initial mineral resource estimate for the Gosselin deposit (on a 100%
basis using a US$1,500 per ounce gold price) of 124.5 million tonnes of indicated resources averaging 0.84 grams
of gold per tonne for 3.35 million ounces of gold and 72.9 million ton nes of inferred resources averaging 0.73
grams of gold per tonne for 1.71 million ounces of gold. This represents a 33% increase in total contained gold at
Côté Gold in measured and indicated resource categories to 13.55 million ounces and a 45% increase i n total
contained gold in the inferred resources category to 5.5 million ounces. The Gosselin deposit has only been drilled
to approximately half of the depth of the Côté Gold deposit and remains open at depth and along strike. This
demonstrates the long-term district scale potential and the exploration upside of the Project. Please refer to the
Company’s news release dated October 18, 2021 for further details.
Côté Construction Photos
Côté Gold – Processing Plant Wall Panel Cladding (January 2022)
Côté Gold – TMF Starter Dam Foundation Excavation (January 2022)
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ROSEBEL UPDATE
The Company is reporting an updated M ineral Reserves estimate for Rosebel (on 100% basis ) of 3.8 million
ounces of gold and an updated Measured and Indicated Mineral Resources estimate (on a 100% basis and
including Mineral Reserves) of 6.3 million ounces of gold as of December 31, 2021 . Production is expected to
ramp up to an estimated 300,000 ounces per year on a 100% basis starting in 2025 until the current expected end
of mine life in 2033 based on the updated Mineral Reserves estimate.
Over the last two years, Rosebel has encountered certain challenges that have resulted in delays in stripping,
strategic pit pushbacks, maintenance and the completion of required infrastructure at Saramacca. The Rosebel
2022 LOMP requires material capital investment in 2022 and 2023 to implement projects and initiatives a imed at
redressing some of these challenges. As a result of the Company’s current capital allocation prioritization , the
Company is commencing a strategic review process to evaluate options for Rosebel.
The Rosebel 2022 LOMP is supported by the updated M ineral Reserves and Resources estimates as at
December 31, 2021 contained in this news release. The Rosebel technical results will be incorporated in a new
technical report titled "Technical Report on the Rosebel Gold Mine, Suriname" (the "Rosebel Technical Report")
prepared by Rosebel Gold Mines N.V. ( “RGM”), a subsidiary of the Company, in collaboration with WSP Global
Inc. ( “WSP”) and SRK Consulting (Canada) Inc. ( “SRK”) in accordance with National Instrument 43 -101
— Standards of Disclosure for Mineral Projects ("NI 43 -101"). The Rosebel Technical Report will be filed on
SEDAR within 45 days of this news release and readers are encouraged to read the Rosebel Technical Report in
its entirety, including all qualifications, assumptions and exclusions that r elate to the details summarized in this
news release.
Rosebel 2022 LOMP
The Rosebel 2022 LOMP is based on revised geological models incorporating further drilling results for the
Rosebel and Saramacca deposits, accounts for cost increases and is conservati vely constrained given the other
capital requirements of the Company at the present time. Two of the key priorities for Rosebel relate to stripping
and mill capacity to treat hard rock. Considerable stripping is required to access deep, higher grade ore in existing
pits resulting in the necessity for a material capital outlay in the next five years. The capacity for the mill to deal
with the Rosebel ore hardness could be alleviated by the replacement and expansion of two crushers at an
estimated cost of approximately $30 million.
Various additional value -accretive scenarios were reviewed in connection with completing the Rosebel 2022
LOMP, including the acceleration of the investment in the comm inution circuit, expansion of the mining fleet to
accelerate stripping and access to higher grade ore, the advancement of throughput expansion opportunities
within the processing facility, and the achievement of certain productivity and costs optimization opportunities .
These scenarios assumed additional availab le capital and demonstrated material potential opportunities to
improve the economics of the operations. Further, Rosebel is located in a geologically endowed region for gold
with potential for further discovery through increased investment in exploration.
The mining rate in the Rosebel 2022 LOMP is estimated at a rate of 59 million tonnes per year in 2022 and steadily
increases to a rate of 64 million tonnes per year from the Rosebel and Saramacca pits until 2026 through a period
of increased stripping. From 2027 the mining rate will further increase to 73 million tonnes per year with additional
loading and hauling units and will start to decline from 2031 as pits are mined out.
Appendix “A” to this news release outlines the Rosebel 2022 LOMP schedule including mining, stripping ratio,
milling, head grades and capital and operating costs. The table below provides a summary of the key operating
parameters for the Rosebel 2022 LOMP on a 100% basis: