IAMGOLD EXCEEDS PRODUCTION TARGET AND EXPECTS TO ACHIEVE COST GUIDANCE FOR 2016; PLANNED PRODUCTION TO INCREASE IN 2017 WITH LOWER ALL-IN SUSTAINING COSTS All 2016 numbers are preliminary and unaudited and subject to final adjustment.
NEWS RELEASE
TSX: IMG NYSE: IAG
IAMGOLD EXCEEDS PRODUCTION TARGET AND
EXPECTS TO ACHIEVE COST GUIDANCE FOR 2016;
PLANNED PRODUCTION TO INCREASE IN 2017
WITH LOWER ALL-IN SUSTAINING COSTS
All 2016 numbers are preliminary and unaudited and subject to final adjustment.
All amounts are expressed in US dollars, unless otherwise indicated.
Toronto, Ontario, January 16, 2017 – IAMGOLD Corporation (“IAMGOLD” or the “Company”)
announces preliminary operating results for 2016 and guidance for 2017.
IAMGOLD’s President and CEO, Steve Letwin, said, “With gold production increasing in each consecutive
quarter of 2016, we had a strong finish to the year. Strong operating performance drove production above
guidance to 813,000 ounces. Production at all sites exceeded the top end of the guidance ranges and
Westwood’s achievement of ambitious underground development targets was outstanding, which well
positions them to nearly double production in 2017. We expect cash costs and all-in sustaining costs to be
within guidance, reflecting continued success optimizing mine performance and improving productivity.
“The year 2016 was pivotal for IAMGOLD,” continued Mr. Letwin, “as strong operating performance and
the achievement of critical milestones have well positioned us for growth. With strategies to capitalize on
organic growth opportunities at all of our mines and a balance sheet that enables us to internally fund this
growth, we’re confident that by 2020 we can take production to one million ounces and reduce all-in
sustaining costs by 15%. We expect production in 2017 to increase by 4-9% from last year with all-in
sustaining costs ranging between $1,000 and $1,080 an ounce.”
Performance Highlights for 2016
Attributable gold production of 813,000 ounces; above guidance of 770,000 to 800,000 ounces;
fourth quarter production 215,000 ounces.
Total cash costs1 expected to be within guidance of $740 to $770 per ounce.
All-in sustaining costs1 expected to be within guidance of $1,050 to $1,100 per ounce.
Capital expenditures of approximately $280 million were relatively in line with guidance of $275
million.
Approximately $750 million in cash, cash equivalents and restricted cash as at December 31,
2016.
Guidance Highlights for 2017
Attributable gold production expected to be between 845,000 and 885,000 ounces.
Total cash costs expected to be between $740 and $780 per ounce.
All-in sustaining costs expected to be between $1,000 and $1,080 per ounce.
Capital expenditures guidance of $250 million ±5%.
1 This is a non-GAAP measure.
page 2 of 5
2016 PRELIMINARY OPERATING RESULTS
Full year attributable production of 813,000 ounces was higher than guidance of 770,000 to 800,000
ounces. All of our operating mines exceeded the top end of their guidance. Attributable gold production for
the fourth quarter 2016 was 215,000 ounces.
The following table presents attributable production by operating site:
Both total cash costs and all-in sustaining costs for 2016 are expected to be within guidance ranges of
$740 to $770 per ounce and $1,050 to $1,100 per ounce, respectively.
2017 PRODUCTION AND COST GUIDANCE
Full Year Guidance1 2017
Essakane (000s oz) 370 – 380
Rosebel (000s oz) 295 – 305
Westwood (000s oz) 115 – 125
Total owner-operator production (000s oz) 780 – 810
Joint ventures (000s oz) 65 – 75
Total attributable production (000s oz) 845 – 885
Total cash costs2,3 – owner-operator ($/oz) $740 – $780
Total cash costs2,4 ($/oz) $740 – $780
All-in sustaining costs2,3 – owner-operator ($/oz) $1,000 – $1,080
All-in sustaining costs2,4 ($/oz) $1,000 – $1,080
1 Guidance for 2017 is based on the following assumptions:
Average gold price per ounce of $1,250;
Average crude oil price per barrel of $48;
U.S. dollar value of the Euro of $1.08; and
Canadian dollar value of the U.S. dollar of $1.35.
2 This is a non-GAAP measure.
3 Consists of Rosebel, Essakane, Westwood on an attributable basis.
4 Consists of Rosebel, Essakane, Westwood, and joint ventures Sadiola and Yatela on an attributable basis.
In 2017, we expect gold production to increase to 845,000 to 885,000 ounces, compared to 813,000
ounces in 2016. Westwood will continue to focus on underground development, with expected production
(000s oz) Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Guidance
Owner-Operator
Essakane (90%) 88 89 104 96 377 365 – 375
Rosebel (95%) 68 73 72 83 296 285 – 295
Westwood (100%) 15 16 16 18 65 50 – 60
Total Owner-Operator 171 178 192 197 738 700 – 730
Joint Ventures
Sadiola (41%) 19 18 17 16 70
Yatela (40%) 1 1 1 2 5
Total Joint Ventures 20 19 18 18 75 70
TOTAL 191 197 210 215 813 770 – 800
page 3 of 5
of 115,000 to 125,000 ounces, nearly double that of 2016. The higher production at Westwood reflects
commercial levels of production from three mining blocks, including the zone w here remedial work was
completed last year. At Rosebel, we expect higher grades and improving productivity will drive production
higher despite the lower throughput anticipated with the proportion of hard rock approaching 70%. At
Essakane, throughput and recoveries are expected to increase while grades are expected to be lower. The
joint ventures are expected to produce between 65,000 and 75,000 ounces.
We have lowered our all-in sustaining cost guidance to a range of $1,000 to $1,080 per ounce, as we have
continued to realize significant benefits from performance optimization initiatives across the sites.
2017 CAPITAL EXPENDITURE GUIDANCE ±5%
($ millions)
Sustaining
Development/
Expansion
(Non-sustaining)
Total3
Essakane $ 85 $ 5 90
Rosebel 65 5 70
Westwood 20 45 65
Owner-operator 170 55 225
Corporate and Development Projects - 10 10
Total owner-operator 170 65 235
Sadiola (Joint Venture)1 5 10 15
Total2 (±5%) $ 175 $ 75 $ 250
1 Expansionary capital expenditures excludes the new construction for Sadiola.
2 Capitalized borrowing costs are not included.
3 Includes $20 million of capitalized exploration expenditures. See Exploration Plan 2017 table in the following section.
In 2017, we expect capital spending to be $250 million ± 5%. Of the $170 million allocated to sustaining
capital for owner-operated mines, 39% is for capitalized stripping at Essakane ($39 million) and Rosebel
($28 million) and another 30% is related to spending on capital spares and equipment at these sites.
Westwood’s non-sustaining capital of $45 million is mainly for expansion/ramp-up development. At
Sadiola, the $10 million in non-sustaining capital is for advancing the Sadiola Sulphide Project in 2017,
including completing an optimization study to refine project economics. Spend for new construction is not
included in the guidance provided at this time. As previously communicated, our intention is to move
ahead with the project with our partner conditional upon the Government of Mali renewing construction and
operating permits, the power agreement and fiscal terms related to the project. Once these have been
achieved and the timing of project commencement known, guidance will be adjusted accordingly.
The $10 million spend on Corporate and Development Projects includes spending at Côté Gold and Boto
Gold. At Côté Gold the focus continues to be on de-risking the project, with the completion of a pre-
feasibility study expected by the end of the second quarter 2017.
2017 EXPLORATION PLAN
An active exploration program is critical to replenishing reserves and resources . Our exploration program
is focused on the discovery of new ounces through our wholly-owned and joint venture projects in South
and Central America, West Africa and Canada, as well as through targeting of soft rock resources near our
existing mines. We have been very selective as to the projects we continue to advance and are focusing
on highly prospective projects. In 2017, we increased our budget for exploration projects to $47 million to
reflect exploration programs at our Saramacca project, the saddle zones at Rosebel and highly prospective
targets at Essakane. This year we are targeting initial resource estimates for our Saramacca project near
Rosebel in Suriname, our Monster Lake project in Quebec and our Eastern Borosi joint venture project in
Nicaragua. The increase in planned expenditures for feasibility and other studies is largely due to the
continuation of technical studies for the Boto Gold project and Côté Gold.
page 4 of 5
2016 Actual
2017 Plan
($ millions) Capitalized Expensed Total Capitalized Expensed Total
Exploration projects - greenfield $ 2 $ 17 $ 19 $ - $ 25 $ 25
Exploration projects - brownfield1 9 11 20 11 11 22
Exploration Projects 11 28 39 11 36 47
Feasibility and other studies 2 3 5 9 6 15
Total Exploration $ 13 $ 31 $ 44 $ 202 $ 42 $ 62
1 Excludes expenditures related to Joint Ventures of $1 million for 2016 Actual and $2 million for 2017 Plan, and includes near mine
and resource exploration of $9 million for 2016 Actual and $11 million for 2017 Plan.
2 The capitalized portion of the 2017 Plan of $20 million is included in our capital spending guidance of $250 million ± 5%.
CONFERENCE CALL
A conference call will be held on Thursday, February 23, 2017 at 8:30 a.m. (Eastern Standard Time) for a discussion
with management regarding IAMGOLD`s 2016 fourth quarter and full-year operating performance and financial
results. A webcast of the conference call will be available through IAMGOLD`s website - www.iamgold.com.
Conference Call Information: North America Toll-Free: 1-800-319-4610 or International Number: 1-604-638-5340.
A replay of this conference call will be accessible for one month following the call by dialing: North America toll-free:
1-800-319-6413 or International Number: 1-604-638-9010, passcode: 1091#.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
All information included in this news release, including any information as to the Company’s future financial or
operating performance, and other statements that express management’s expectations or estimates of future
performance, other than statements of historical fact, constitute forward looking information or forward-looking
statements and are based on expectations, estimates and projections as of the date of this news release. For
example, forward-looking statements contained in this news release are found under, but are not limited to being
included under, the heading “2017 Production and Cost Guidance, 2017 Capital Expenditure Guidance and 2017
Exploration Plan”, and include, without limitation, statements with respect to: the Company’s guidance for production,
total cash costs, all-in sustaining costs, depreciation expense, effective tax rate, capital expenditures, operations
outlook, cost management initiatives, development and expansion projects, exploration, the future price of gold, the
estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource
estimates, the timing and amount of estimated future production, costs of production, permitting timelines, currency
fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Forward-looking
statements are provided for the purpose of providing information about management’s current expectations and plans
relating to the future. Forward-looking statements are generally identifiable by, but are not limited to the use of the
words “may”, “will”, “should”, “continue”, “expect”, “estimate”, “plan”, “guidance”, “outlook”, “potential”, “targets”,
“strategy” or “project” or the negative of these words or other variations on these words or comparable terminology.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to significant business, economic and competitive
uncertainties and contingencies. The Company cautions the reader that reliance on such forward-looking statements
involve risks, uncertainties and other factors that may cause the actual financial results, performance or achievements
of IAMGOLD to be materially different from the Company’s estimated future results, performance or achievements
expressed or implied by those forward-looking statements, and the forward-looking statements are not guarantees of
future performance. These risks, uncertainties and other factors include, but are not limited to, changes in the global
prices for gold, copper, silver or certain other commodities (such as diesel, and electricity); changes in U.S. dollar and
other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the
level of liquidity and capital resources; access to capital markets, and financing; mining tax regimes; ability to
successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the
Company carries on business; operating or technical difficulties in connection with mining or development activities;
laws and regulations governing the protection of the environment; employee relations; availability and increasing costs
associated with mining inputs and labour; the speculative nature of exploration and development, including the risks of
diminishing quantities or grades of reserves; adverse changes in the Company’s credit rating; contests over title to
properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and
mining business. With respect to development projects, IAMGOLD’s ability to sustain or increase its present levels of
gold production is dependent in part on the success of its projects. Risks and unknowns inherent in all projects include
the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such
page 5 of 5
projects, and the future prices for the relevant minerals. Development projects have no operating history upon which to
base estimates of future cash flows. The capital expenditures and time required to develop new mines or other
projects are considerable, and changes in the price of gold, costs or construction schedules can affect project
economics. Actual costs and economic returns may differ materially from IAMGOLD’s estimates or IAMGOLD could
fail to obtain the governmental approvals necessary for the operation of a project; in either case, the project may not
proceed, either on its original timing or at all.
For a more comprehensive discussion of the risks faced by the Company, and which may cause the actual financial
results, performance or achievements of IAMGOLD to be materially different from the company’s estimated future
results, performance or achievements expressed or implied by forward-looking information or forward-looking
statements, please refer to the Company’s latest Annual Information Form, filed with Canadian securities regulatory
authorities at www.sedar.com, and filed under Form 40-F with the United States Securities Exchange Commission at
www.sec.gov/edgar.shtml. The risks described in the Annual Information Form (filed and viewable on www.sedar.com
and www.sec.gov/edgar.shtml, and available upon request from the Company) are hereby incorporated by reference
into this news release.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise except as required by applicable law.
Qualified Person Information
The technical information relating to exploration activities disclosed in this news release was prepared under the
supervision of, and reviewed and verified by, Craig MacDougall, P.Geo., Senior Vice President, Exploration,
IAMGOLD. Mr. MacDougall is a Qualified Person as defined by National Instrument 43-101.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three
continents. A solid base of strategic assets in North and South America and West Africa is complemented
by development and exploration projects and continued assessment of accretive acq uisition opportunities.
IAMGOLD is in a strong financial position with extensive management and operational expertise.
For further information please contact:
Bob Tait, VP Investor Relations, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (647) 403-5520
Laura Young, Director, Investor Relations, IAMGOLD Corporation
Tel: (416) 933-4952 Mobile: (416) 670-3815
Shae Frosst, Investor Relations Associate
Tel: (416) 933-4738 Mobile: (647) 967-9942
Toll-free: 1-888-464-9999 [email protected]
Please note:
This entire news release may be accessed via fax, e -mail, IAMGOLD's website at www.iamgold.com and through CNW Group’s
website at www.newswire.ca. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le
http://www.iamgold.com/French/accueil/default.aspx.