Iamgold Provides Preliminary Operating Results FOR the Second Quarter 2021, Updates Production and Costs Guidance FOR 2021 and Costs Estimate FOR Its Côté GOLD Project
NEWS RELEASE
TSX: IMG NYSE: IAG
IAMGOLD PROVIDES PRELIMINARY OPERATING RESULTS FOR THE SECOND
QUARTER 2021, UPDATES PRODUCTION AND COSTS GUIDANCE FOR 2021 AND
COSTS ESTIMATE FOR ITS CÔTÉ GOLD PROJECT
Toronto, Ontario, July 22, 2021 – IAMGOLD Corporation (“IAMGOLD” or the “Company”) today provides
preliminary operating results for the second quarter 2021. The Company also announces a reduction in its
production guidance and an increase in its cost s guidance for 2021 as well as an increase in the cost s
estimate for its Côté Gold Project ("Côté" or the "Project"). All dollar amounts are in US dollars and a
CAD:USD exchange rate of $1.30, unless otherwise indicated.
PRELIMINARY OPERATING RESULTS
The following table summarizes preliminary second quarter operating results and updated full year 2021
guidance on an attributable basis for certain metrics. The guidance changes are based on the Company ’s
performance in the first half of 2021 and subsequent efforts to develop an updated preliminary outlook for
the second half of 2021.
Q2 2021
YTD 2021
Updated Full Year
Guidance 20211
Previous Full Year
Guidance 20212
Essakane (000s oz)3 106 208 390 – 400 365 – 390
Rosebel (000s oz)3 25 72 140 – 160 220 – 245
Westwood (000s oz)3 8 15 35 – 45 45 – 65
Total attributable production (000s oz) 139 295 565 – 605 630 – 700
Cash costs4 ($/oz sold) $1,102 $1,064 $1,115 – $1,150 $930 – $980
All-in sustaining costs3,4 ($/oz sold) $1,422 $1,324 $1,395 – $1,435 $1,230 – $1,280
1 The updated full year guidance is based on the following 2021 full year assumptions : average realized gold price of $1,745 per ounce, USD :CAD
exchange rate of 1.22, EUR:USD exchange rate of 1.20 and average crude oil price of $65 per barrel.
2 The previous full year guidance was based on the followi ng 2021 full year assumptions: average realized gold price of $1,750 per ounce, USD :CAD
exchange rate of 1.30, EUR:USD exchange rate of 1.19 and average crude oil price of $47 per barrel .
3 Consists of Essakane and Rosebel on an attributable basis, and Westwood on a 100% basis.
4 This is a non-GAAP performance measure. Refer to the Non-GAAP Performance Measures section at the end of this news release.
Total Company -wide attributable production guidance for 2021 has been reduced due to lower actual
production in the first half of 2021 from the Westwood and Rosebel mines and their anticipated output for
the remainder of 2021, par tially offset by higher production at the Essakane mine in the first half of 2021.
Total per-ounce costs guidance for 2021 has been increased mainly to reflect the lower total attributable
production guidance. Site capital expenditure estimates are expected to be slightly lower than previously
provided guidance (news release dated January 19, 2021), primarily due to an expected reduction in planned
work at Rosebel. In accordance with IFRS, the Company is reviewing the approximately $120 million carrying
amount of the Westwood mine to determine whether there is any indication of impairment, and if so, whether
an adjustment is necessary.
Essakane delivered strong second quarter results with higher gold production, desp ite ongoing challenges
in processing ore with high graphitic content, through operational efficiencies and the completion of the mill
upgrade. Essakane 2021 production guidance has been increased to reflect the higher production in the first
half of 2021.
Westwood 2021 production guidance has been reduced primarily to reflect additional safety measures
through the implementation of further ground support and egress es required in the East Zone and in
preparation for mining the Central and West Zone as well as slower-than-expected ramp-up of personnel.
We are also assessing the impact of these factors on 2022 planning.
Mining activities at Rosebel were primarily impacted in the second quarter by difficult operating conditions
caused by continuing unusually heavy rains and by challenging industrial relations up until the resolution of
the collective bargaining agreement in May. In addition, there was a significant increase in COVID-19 cases
due to the emergence of a new variant in Suriname during the second quarter. The increase in COVID -19
cases and social impacts, including multiple lockdowns in -country and a strained healthcare system,
adversely affected operations and projects. Furthermore, management of the high clay content ore from the
Saramacca deposit, exacerbated by the heavy rains, negatively impacted ore handling and mill throughput.
Due to the above-mentioned factors, and continued uncertainty related to the COVID-19 situation, Rosebel’s
2021 guidance has been adjusted downward. The Company is cont inuing to assess what, if any, ongoing
impacts these challenges may have on ore sequencing and 2022 production. Strategic mine development
activities have resumed and are intended to expose higher grade ore zones.
CÔTÉ GOLD PROJECT UPDATE
Construction Progress
Construction at Côté, a 70:30 joint venture (“JV”) between IAMGOLD, as the operator, and Sumitomo Metal
Mining Co., Ltd. ("SMM"), continues with the earthworks contractors advanc ing road widening and
overburden stripping and the commencement of work on water management infrastructure and the tailings
management facility. Plant site concrete works have commenced including the commissioning of the
concrete batch plant and the raft foun dations for the ball mill. Construction of the permanent camp is
progressing well with approximately 50% of the planned rooms complete. The Project is currently on
schedule and is 27% complete at June 30, 2021. The Project schedule remains on track for com mercial
production in H2-2023.
Costs Estimate Update
The Company has identified certain estimated project costs increases from a project review. The Company’s
70% share of updated estimated project costs from July 1, 2020, net of leasing, is now estimated at $1,125
million to $1,175 million (exclusive of expenditures prior to such date) at a CAD:USD exchange rate of $1.30
compared to the previous estimate of $875 million to $925 million at a CAD:USD exchange rate of $1.35. In
accordance with the terms of the joint venture, the updated capital costs will be reviewed by SMM.
The table below summarizes the updated estimated project costs:
Project costs estimate July 2020 July 2021
Company’s 70% share of project costs estimate $875 – $925 million $1,125 – $1,175 million1,2
Leasing (on a 70% project basis) $80 million $100 – $120 million3
CAD:USD exchange rate $1.35 $1.30
Expended4 - July 1, 2020 to June 30, 2021 – $193.0 million
Company’s remaining 70% share of project costs estimate $875 – $925 million $930 – $980 million
1 Total costs are approximately 95% capital expenditures and 5% non-capitalized costs. Approximately 95% of the estimated capital costs are in Canadian
dollars. The Company has implemented a hedge program which includes CAD:USD exchange rate hedging which will be described in greater detail in
the Company’s second quarter results.
2 Approximately $33 million of the increase is attributable to the unfavourable change in the currency exchange r ate.
3 Leasing is net of lease payments during the construction period . Previously $120 million at a CAD:USD exchange rate of $ 1.30 (see news release
dated May 3, 2021).
4 Calculated at an average CAD:USD exchange rate of $1.2871.
The change was primarily driven by increased structural, mechanical, piping , electrical and concrete
estimates for the process facility; increases to mine facilities costs; increases in earthworks materials and
manpower estimates; certain scope changes; inflation (including pricing increases due to COVID-19 related
supply chain challenges) ; changes in the currency exchange rate ; and costs related to COVID -19. The
project costs range increase includes new contingency amounts for the remaining expenditures estimate.
SECOND QUARTER 2021 RESULTS AND CONFERENCE CALL
Additional details regarding the second quarter operating and financial results as well as the progress of
activities at Côté will be provided when the Company discloses its second quarter financial results after
market hours on Wednesday, August 4th, 2021.
A conference call will be held on Thursday, August 5 th, 2021, at 8:30 a.m. (Eastern Time) for a discussion
with management regarding the Company’s operating performance and financial results for the second
quarter 2021. A webcast of the conference call will be available through the Company’s website at
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 available for one month following the call by dialing:
North America toll-free: 1-800-319-6413 or International number: 1-604-638-9010, passcode: 7235#
Please dial in 10 – 15 minutes prior to the scheduled start time as call volumes are heavy. If you are still
unable to connect from your primary telephone network after attempting all of the dial -in numbers provided,
if available, please retry using an alternate telephone network.
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, including
statements in respect of the prospects of the Company ’s projects, other than statements of historical fact, constitute forward -
looking information or forward-looking statements with the meaning of applicable securities laws 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 include, without limitation, statements with respect to: the Company ’s guidance for production , cash costs, all -in
sustaining costs, capi tal expenditures, operations outlook, construction costs, development and expansion projects,
exploration, the future price of gold, foreign exchange rates, 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, unantici pated 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”, "budget", "forecast", “anticipate”, “estimate”, “believe”, “intend”,
“plan”, "schedule", “guidance”, “ outlook”, “ potential”, "transformational", "best -in-class", "top -tier", “seek”, “ targets”,
"suspended", "superior return(s)", "superior shareholder return(s)", "cover", “strategy”, "superior" 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 and, as such, undue reliance must not be
placed on them.
The Company cautions the reader that reliance on such forward -looking statements involves known and unknown risks,
uncertainties and other factors that may cause the actual result s, 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. 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 hold ing derivative instruments; the level of liquidity and
capital resources; access to capital markets, and financing; mining tax regimes; ability to successfully integrate acquired assets;
legal, litigation, legislative, political or economic risks and new developments in the jurisdictions in which the Company carries
on business; the failure to obtain in a timely manner from authorities key permits, authorizations or approvals necessary for
exploration, development or operation ; operating or technical diffic ulties in connection with mining or development activities,
including geotechnical difficulties and major equipment failure, such as a conveyor belt breakdown, and seismicity, such as the
seismic event that occurred at Westwood mine on October 30, 2020; la ws and regulations governing the protection of the
environment; employee relations; attraction and retention of key employees and other qualified personnel ; availability and
increasing costs associated with mining inputs and labour ; negotiations with respect to new, reasonable collective labour
agreements may not be agreed to; the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and
operating costs, the speculative nature of exploration and development, including the risks of diminishing quantities or grades
of reserves; illegal mining; adverse changes in the Company’s credit rating; contests over title to properties, particularly title to
undeveloped properties; the inability to participate in any gold price increase above the cap in any collar transaction entered
into in conjunction with a forward gold sale arrangement; the potential direct or indirect operational impacts resulting from
external factors, including infectious diseases or pandemics, such as the COVID-19 outbreak, or adverse weather conditions;
and the inherent risks involved in the exploration, development and mining business generally. Please see the AIF or Form 40-
F available on www.sedar.com or www.sec.gov/edgar.shtml for a comprehensive discussion of the risks faced by the Company,
and which may cause the actual financial results, operating performance or achievements of IAMGOLD to be materially different
from the Company’s estimated future results, operating performance or achievements expressed or implied by forward-looking
information or forward-looking statements.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors tha t cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
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.
NON-GAAP PERFORMANCE MEASURES
IAMGOLD uses certain non-GAAP financial performance measures in its news release, which are described in the following
section.
Cash costs (“CC”) per ounce sold and all-in sustaining costs (“AISC”) per ounce sold, on an attributable basis, are non-GAAP
performance measures. Cash costs include mine site operating costs such as mining, processing, administration, royalties,
production taxes, and realized derivative gains or losses, exclusive of depreciation, reclamation, capital expenditures and
exploration and evaluation costs. AISC include cost of sales, excluding depreciation expense, and includes sustaining capital
expenditures which are required to maintain existing operations, sustaining exploration and evaluation expenses, sustaining
lease principal payments, environmental rehabilit ation accretion and depreciation, by -product credits, and corporate general
and administrative costs. These costs are then divided by the Company ’s attributable ounces of gold sold by mine sites in
commercial production to arrive at CC and AISC per ounce sold. The Company believes that the use of CC and AISC per ounce
sold metrics will assist analysts, investors and other stakeholders of the Company in assessing its operating performance and
its ability to generate free cash flow. CC and AISC per ounce sold are intended to provide additional information only and do
not have any standardized meaning prescribed by IFRS, and are unlikely to be comparable to similar measures presented by
other issuers, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS. Although the World Gold Council defined an all -in sustaining costs measure in 2013, it is not a regulatory
organization, and other companies may calculate this measure differently. These measures are not necessarily indicative of net
earnings or cash flow from operating activities as determined under IFRS.
About IAMGOLD
IAMGOLD is a mid -tier gold mining company operating in three regions globally: North America, South
America and West Africa. W ithin these regions the Company is developing high potential mining districts
that encompass operating mines, construction, development, and exploration projects. The Company’s
operating mines include Westwood in Canada, Rosebel (including Saramacca) in Su riname and Essakane
in Burkina Faso. A solid base of strategic assets is complemented by the Côté Gold construction project in
Canada, the Boto Gold development project in Senegal, as well as greenfield and brownfield exploration
projects in various countries located in the Americas and West Africa.
IAMGOLD employs approximately 5,000 people. IAMGOLD is committed to maintaining its culture of
accountable mining through high standards of Environmental, Social and Governance practices, including
its commitment to Zero Harm®, in every aspect of its business. IAMGOLD (www.iamgold.com) is listed on
the New York Stock Exchange (NYSE:IAG) and the Toronto Stock Exchange (TSX:IMG) and is one of the
companies on the JSI index1.
1 Jantzi Social Index (“JSI”). The JSI is a socially screened market capitalization-weighted common stock index modeled on the S&P/TSX 60. It consists
of companies which pass a set of broadly based environmental, social and governance rating criteria.
For further information please contact:
Indi Gopinathan, VP, Investor Relations & Corporate Communications, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (416) 388-6883
Philip Rabenok, Manager, Investor Relations, IAMGOLD Corporation
Tel: (416) 933-5783 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 Newsfile’s website
at www.newsfilecorp.com. 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
https://www.iamgold.com/French/accueil/default.aspx.