Iamgold Reports First Quarter 2019 Results; Reinforcing Our Self-Funding Model
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS FIRST QUARTER 2019 RESULTS;
REINFORCING OUR SELF-FUNDING MODEL
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
For more information, refer to the Management Discussion and Analysis (MD&A) and Unaudited Consolidated
Interim Financial Statements for the three months ended March 31, 2019.
Toronto, Ontario, May 6, 2019 - IAMGOLD Corporation (“IAMGOLD” or the “Company”) reported its
consolidated financial and operating results for the quarter ended March 31, 2019.
"Despite a challenging first quarter, we are driving towards achieving a self-funded, self-sustaining
operating model," commented Steve Letwin, President and CEO of IAMGOLD, “This encompasses our
goal to reduce costs and increase margins, preserve cash, fund site capital expenditures within site cash
flows, and work safely and responsibly. At Essakane, we had strong production and cash flow generation
and are optimizing performance through de-bottlenecking and other projects. At Rosebel, we reported
significant reserve growth extending the mine life, with Saramacca first production planned in the second
half of 2019. At Westwood, we have a long-life production asset in a transition year, with mine redesign in
progress. Production remains on track for the year, with the first half lighter than the balance of the year, as
anticipated, and we reinforce our 2019 annual production guidance. Our exploration successes highlight
the district potential of each of our major sites and projects. Our balance sheet is stro ng, and we continue
to exercise prudence in our allocation of capital. We remain committed to our goal of delivering
shareholder value in 2019 and well beyond.”
First Quarter 2019 Highlights
• Attributable gold production of 185,000 ounces at cost of sales 1 per ounce of $962, total cash
costs2 per ounce produced of $884 and all-in sustaining costs2 per ounce sold of $1,086.
Attributable gold sales of 190,000 ounces at an average realized gold price per ounce of $1,308.
• Revenues of $251.0 million.
• Net loss attributable to equity holders of $41.3 million, or $0.09 per share.
• Adjusted net loss attributable to equity holders2 of $2.2 million, or $nil per share2.
• Net cash from operating activities of $8.8 million.
• Net cash from operating activities before changes in working capital2 of $33.8 million.
• Cash, cash equivalents, short-term investments, and restricted cash totaled $696.6 million at March
31, 2019. Cash and cash equivalents were $589.2 million, short term investments, primarily in
money market funds, were $83.8 million and restricted cash was $23.6 million.
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Strategic Developments
Financial
• We entered into a forward gold sale arrangement ("Arrangement") with a syndicate of banks to receive
a cash prepayment of $170 million in December 2019 in exchange for delivering 150,000 ounces of
gold in 2022, with a gold floor price of $1,300 per ounce and a cap price of $1,500 per ounce, to
provide additional financial flexibility as we execute our growth strategy. The cost of the Arrangement is
5.38% per annum.
• IAMGOLD, together with AngloGold Ashanti Limited, entered into an agreement with the Government
of Mali for the sale of the joint venture partners’ combined 80% indirect interest in the Yatela mine for
$1. The sale is subject to the fulfillment of certain conditions and a one-time payment of estimated
rehabilitation, closure and social program costs of approximately $18.5 million.
Reserves and Resources
• On January 30, 2019, we reported a 57% increase in resources at the Diakha -Siribaya Gold Project in
Mali based on an updated resource estimate as at December 31, 2018, comprising 18.0 million tonnes
of indicated resources grading 1.28 g/t Au for 744,000 ounces and 23.2 million tonnes of inferred
resources grading 1.58 g/t Au for 1.2 million ounces.
• On March 26, 2019, we announced that a new gold discovery, referred to as the Gosselin Zone, has
been identified approximately 1.5 kilometres northwest of the Côté Gold deposit. Drilling highlights
included: 350 metres grading 0.81 g/t Au; 132.3 metres grading 1.13 g/t Au; 139.7 metres grading 1.36
g/t Au.
Operations and Development
• We received notice of approval of its Environmental and Social Impact Assessment from the
Government of Suriname for the Saramacca Project.
• Development activities at the Saramacca Project continued to advance with a primary focus on the
haul road construction to enable the operation to deliver ore to the Rosebel mill in the second half of
2019.
• The carbon-in-column ("CIC") plant at Rosebel, designed to improve recoveries, was com missioned
and became fully operational, producing an additional 2,200 ounces in the first quarter 2019.
• The oxygen plant at Essakane, designed to improve recoveries by 0.5%, was commissioned.
• Following the completion of a feasibility study in the fourth quarter 2018, IAMGOLD has continued to
optimize the design elements of the Boto Gold Project development, maintained stakeholder
engagement and commenced a drilling program.
• On January 28, 2019, we announced that we deferred a decision to proceed with the construction of
the Côté Gold Project in Canada.
Upcoming Growth Catalysts
• Development of Saramacca continues on schedule, with production expected to begin in the second
half of 2019.
• At Rosebel, a scoping study is underway to evaluate the underground mining potential of Saramacca,
which could result in higher grades and significantly lower waste volumes, thereby reducing costs.
• We continue to advance exploration activities along the Saramacca-Brokolonko trend in Suriname to
confirm the presence of mineralization and evaluate the resource potential.
• The Carbon-in-Leach and Heap Leach feasibility study at Essakane is progressing well and is
expected to be completed in the second quarter 2019.
• Discussions with the Government of Senegal on obtaining a mining concession for the Boto Gold
Project are well advanced, with approval expected in the second half of 2019.
• We are studying various design approaches to Westwood with a preliminary life of mine plan expected
in the fourth quarter 2019, followed by a NI 43-101 compliant plan in the first half 2020.
• A delineation diamond drilling program to support an initial mineral resource estimate for the Nelligan
Project in Quebec commenced during the first quarter 2019.
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SUMMARY OF FINANCIAL AND OPERATING RESULTS
Three months ended March 31,
Financial Results ($ millions, except where noted) 2019 2018
Revenues $ 251.0 $ 314.5
Cost of sales $ 251.9 $ 238.7
Gross profit (loss) $ (0.9 ) $ 75.8
Net earnings (loss) attributable to equity holders of IAMGOLD $ (41.3 ) $ 42.3
Net earnings (loss) attributable to equity holders ($/share) $ (0.09 ) $ 0.09
Adjusted net earnings (loss) attributable to equity holders of IAMGOLD1 $ (2.2 ) $ 40.4
Adjusted net earnings (loss) attributable to equity holders ($/share)1 $ — $ 0.09
Net cash from operating activities $ 8.8 $ 106.0
Net cash from operating activities before changes in working capital1 $ 33.8 $ 119.6
Key Operating Statistics
Gold sales – attributable (000s oz) 190 235
Gold production – attributable (000s oz) 185 229
Average realized gold price1 ($/oz) $ 1,308 $ 1,331
Cost of sales2 ($/oz) $ 962 $ 741
Total cash costs1 ($/oz) $ 884 $ 737
All-in sustaining costs1 ($/oz) $ 1,086 $ 953
Gold margin1 ($/oz) $ 424 $ 594
1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A.
2 Cost of sales, excluding depreciation, as disclosed in note 29 of the Company's consolidated interim financial statements is on an attributable ounce
sold basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel) and does not include Joint Ventures which are accounted
for on an equity basis.
FIRST QUARTER 2019 SUMMARY
Financial Performance
• Revenues for the first quarter 2019 were $251.0 million, down $63.5 million or 20% from the same
prior year period. The decrease was primarily due to lower sales volume at Essakane ($28.9 million),
Westwood ($26.4 million), and Rosebel ($3.4 million), combined with a lower realized gold price ($4 .4
million).
• Cost of sales for the first quarter 2019 was $251.9 million, up $13.2 million or 6% from the same prior
year period. The increase was due to higher operating costs ($10.7 million) and higher depreciation
expense ($4.3 million), partially offset by lower royalties ($1.8 million). Operating costs were higher
primarily due to lower capitalized stripping and higher maintenance costs at Essakane and increased
mining and milling volumes at Rosebel, partially offset by a stronger U.S. dollar relative to the euro and
the Canadian dollar.
• Depreciation expense for the first quarter 2019 was $68.6 million, up $4.3 million or 7% from the same
prior year period. The increase was primarily due to the timing of capital additions, partially offset by an
increase in reserves at Essakane and Rosebel.
• Income tax expense for the first quarter 2019 was $1.4 million, down $10.4 million in the same prior
year period. Income tax expense for the first quarter 2019 comprised current income tax expense of
$9.7 million (March 31, 2018 - $22.5 million) and deferred income tax recovery of $8.3 million (March
31, 2018 - $10.7 million). The decrease in income tax expense was primarily due to changes to
deferred income tax assets and liabilities, differences in the impact of fluctuations in foreign exchange,
and differences in the level of taxable income in IAMGOLD's operating jurisdictions from one period to
the next.
• Net loss attributable to equity holders for the first quarter 2019 was $41.3 million, or $0.09 per share,
compared to net earnings of $42.3 million, or $0.09 per share in the same prior year period. The
decrease was primarily due to lower gross profit ($76.7 million) and higher other expenses ($17.3
million) which included an impairment charge of $12.5 million and restructuring costs at Westwood of
$3.2 million, partially offset by lower income taxes ($10.4 million).
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• Adjusted net loss attributable to equity holders2 was $2.2 million, or $nil per share2, compared to
adjusted net earnings2 of $40.4 million, or $0.09 per share2 in the same prior year period.
• Net cash from operating activities for the first quarter 2019 was $8.8 million, down $97.2 million from
the same prior year period. The decrease was due to lower earnings after non-cash adjustments
($74.8 million), higher movements in non-cash working capital items and non-current ore stockpiles
($11.1 million), higher income taxes paid ($9.5 million) and lower net settlement of derivatives ($2.7
million), partially offset by net cash used in operating activities related to closed mines ($0.9 million).
• Net cash from operating activities before changes in working capital2 for the first quarter 2019 was
$33.8 million, down $85.8 million from the same prior year period.
Financial Position
• We ended the quarter in a strong financial position, with cash, cash equivalents, short -term
investments primarily in money market funds and restricted cash were $696.6 million at March 31,
2019, down $61.4 million from December 31, 2018. The decrease was primarily due to spending on
property, plant and equipment ($69.7 million), partially offset by cash generated from operating
activities ($8.8 million).
Production and Costs
• Attributable gold production, inclusive of joint venture operations, was 185,000 ounces for the first
quarter 2019, down 44,000 ounces from the same prior year period. The decrease was primarily due
to the impact of increased seismicity at Westwood in December 2018 (25,000 ounces), lower head
grades and throughput at Essakane (19,000 ounces) and lower head grades at the Joint Ventures
(3,000 ounces), partially offset by higher recoveries at Rosebel (3,000 ounces).
• Attributable gold sales, inclusive of joint venture operations, were 190,000 ounces for the first quarter
2019, down 45,000 ounces from the same prior year period. The decrease was due to lower sales at
Essakane (20,000 ounces), Westwood (19,000 ounces), Rosebel (3,000 ounces) and the Joint
Ventures (3,000 ounces).
• Cost of sales1 per ounce for the first quarter 2019 was $962, up 30% from the same prior year period
primarily due to the impact of lower sales volumes at Essakane and Westwood.
• Total cash costs2 per ounce produced for the first quarter 2019 were $884, up 20% from the same prior
year period. The increase was primarily due to the impact of lower production volumes . Included in
total cash costs2 for the first quarter 2019 was a reduction of $61 per ounce produced reflecting the
reduction of costs attributed to inventory to normalize for the amount of fixed overhead on a per unit
basis as a consequence of abnormally low production at Westwood (2018 - $nil) and realized
derivative gains from hedging programs of $2 per ounce produced (2018 - $11).
• All-in sustaining costs2 per ounce sold for the first quarter 2019 were $1,086, up 14% from the same
prior year period. The increase was primarily due to higher cost of sales per ounce, partially offset by
lower sustaining capital expenditures. Included in all-in sustaining costs2 for the first quarter 2019 was
a reduction of $60 per ounce sold reflecting the reduction of costs attributed to inventory to normalize
for the amount of fixed overhead on a per unit basis as a consequence of abnormally low production at
Westwood (2018 - $nil) and realized derivative gains from hedging programs of $2 per ounce sold
(2018 - $13).
2019 Guidance
(Refer to MD&A for more detail)
The Company maintains its full-year 2019 production guidance of 810,000 to 870,000 attributable ounces
and its guidance for all-in sustaining costs2 per ounce sold of $1,030 to $1,080. The Company also
maintains its full-year guidance for cost of sales per ounce of $790 to $840 and total cash costs 2 per ounce
produced of $765 to $815, but notes that a number of cost and productivity improvement initiatives are
underway to mitigate the risk that these two targets may not be achieved by the end of the year. Guidance
will be reviewed in the second quarter 2019 and updated as necessary. Gold production at Westwood is
expected to improve starting in the second quarter 2019 compared to the first quarter, and is expected to
be strongest in the fourth quarter.
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Commitment to Zero Harm Continues
The DART rate3, representing the frequency of all types of serious injuries across all sites and functional
areas for the first quarter 2019 was 0.58, below IAMGOLD's target of 0.63. Unfortunately, the health and
safety performance of IAMGOLD was affected by a fatality of a contractor at the Essakane mine in the first
quarter 2019 due to an equipment fire. Zero Harm remains IAMGOLD's number one priority. We are
implementing several initiatives, including a behaviour-based safety program, to ensure a safer work
environment.
ATTRIBUTABLE GOLD PRODUCTION AND COSTS
Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash
Costs2
($ per ounce
produced)
All-in Sustaining
Costs2
($ per ounce
sold)
Three months ended March 31, 2019 2018 2019 2018 2019 2018 2019 2018
Owner-operator
Essakane (90%) 90 109 $ 896 $ 712 $ 883 $ 665 $ 1,010 $ 914
Rosebel (95%) 68 65 889 798 901 829 1,064 914
Westwood (100%)3 15 40 1,549 719 858 716 1,192 873
Owner-operator4 173 214 $ 962 $ 741 $ 888 $ 725 $ 1,103 $ 955
Joint Ventures 12 15 828 904 838 924
Total operations 185 229 $ 884 $ 737 $ 1,086 $ 953
Cost of sales1 ($/oz) $ 962 $ 741
Cash costs, excluding royalties $ 822 $ 678
Royalties 62 59
Total cash costs2 $ 884 $ 737
All-in sustaining costs2 $ 1,086 $ 953
1 Cost of sales, excluding depreciation, as disclosed in note 29 of the Company's consolidated interim financial statements is on an attributable ounce sold
basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel) and does not include Joint Ventures which are accounted for on an
equity basis.
2 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A. Consists of Essakane, Rosebel, Westwood and the
Joint Ventures on an attributable basis.
3 Costs of sales per ounce sold for Westwood does not include the impact of normalization of costs for the three months ended March 31, 2019 of $60 per
ounce (2018 - $nil).
4 Owner-operator all-in sustaining costs include corporate general and administrative costs. Refer to all-in sustaining costs reconciliation on page 26 of the
MD&A.
OPERATIONS ANALYSIS BY MINE SITE
Essakane Mine - Burkina Faso (IAMGOLD interest - 90%)
Attributable gold production for the first quarter 2019 of 90,000 ounces was lower by 17% compared to the
same prior year period primarily due to lower head grades and throughput. Ore feed for the first quarter
2019 was primarily sourced from lower grade zones relative to higher grades realized in the same prior
year period. Mill throughput was unfavourably impacted in the first quarter 2019 by coarser mill feed and
lower mill availability due to the timing of mill maintenance. The oxygen plant was commissioned during
the quarter and the optimization of oxygen injection is ongoing. The oxygen plant is expected to increase
recoveries by 0.5% through improved leach kinetics and to improve the efficiency of the circuit by reducing
reagent consumption. Despite this, production for the quarter was adversely impacted by low er recoveries
as the mine sequenced through more graphitic zones.
Total material mined in the first quarter 2019 was lower compared to the same prior year period primarily
due to lower equipment availability. Essakane commissioned six haul trucks and one wheel dozer in March
2019 with an additional haul truck and two excavators expected to be commissioned in the second quarter
2019. The new equipment is expected to increase hauling capacity, improve equipment availability and
reduce reliance on the contracted mining fleet in future periods. Ore mined in the first quarter 2019 was
higher compared to the same prior year period due to mining and stockpiling of lower grade ore to support
the construction of a proposed heap leach facility at the end of carbon-in-leach ("CIL") operations.
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The CIL and Heap Leach feasibility study progressed well during the quarter and is expected to be
completed in the second quarter 2019. The feasibility study is expected to support an investment in mill
optimization through a de-bottlenecking project and the postponement of the higher capital Heap Leach
Project to the end of CIL operations. The Mill De-Bottlenecking Project is a lower capital intensive option
and could increase CIL plant throughput to 13.5 million tonnes per annum at 100% hard rock which is
significantly higher than the current capacity of 12 million tonnes per annum at 100% hard rock and the
original nameplate capacity of 10.8 million tonnes per annum at 100% hard rock. The CIL crushing circuit
would be used for the heap leach process at the end of CIL operations.
Cost of sales of $896 per ounce sold and total cash costs of $883 per ounce produced for the first quarter
2019 were higher by 26% and 33%, respectively compared to the same prior year period primarily due to
the impact of lower sales and production volumes. Essakane also continued to face cost pressures with
rising energy costs which were partially mitigated by the supply of energy from the solar plant and
IAMGOLD's hedging program. Operating costs were higher primarily due to increased mining equipment
maintenance, however a stronger U.S. dollar relative to the euro for the quarter helped to alleviate the
impact of these cost pressures.
All-in sustaining costs of $1,010 per ounce sold for the first quarter 2019 were higher by 11% compared to
the same prior year period primarily due to higher cost of sales per ounce, partially offset by lower
sustaining capital expenditures. Included in total cash costs and all-in sustaining costs for the first quarter
2019 was the impact of realized derivative gains from hedging programs of $3 per ounce produced and $3
per ounce sold, respectively (2018 - $18 and $21).
Sustaining capital expenditures for the first quarter 2019 of $10.2 million included capital spares of $2.5
million, mobile equipment of $2.4 million, capitalized stripping of $1.6 million and various other sustaining
capital expenditures of $3.7 million. Non-sustaining capital expenditures of $20.2 million included
capitalized stripping of $8.8 million, tailings liners and dams of $6.9 million, mobile equipment of $3.4
million and CIL and Heap Leach feasibility study of $1.1 million.
Outlook
We expect attributable production at Essakane in 2019 to be in the range of 375,000 and 390,000 ounces.
Capital expenditures are expected to be approximately $125 million, consisting of $55 million in sustaining and
$70 million in non-sustaining capital expenditures.
Rosebel Mine - Suriname (IAMGOLD interest - 95%)
Attributable gold production of 68,000 ounces in the first quarter 2019 was 5% higher compared to the
same prior year period primarily due to recoveries. The CIC plant became fully operational in January
2019, which had a favourable impact on recoveries with an additional 2,200 ounces recovered from tailings
in the quarter. The plant has been installed between the two existing ponds at the Rosebel tailings
management facility and will be used to passively treat tailings decant water to recover residual gold that is
present in the solution. The plant is currently on track to exceed the minimum expected recovery of 5,000
ounces annually at a marginal operating cost of approximately $35 per ounce to cover additional power
and elution costs.
Development work on Saramacca continued during the quarter, targeting the commencement of
production in the second half of 2019. Construction of the 18 kilometre haul road from Rosebel to
Saramacca and the 5 kilometre long section on the Rosebel mineral lease continued during the quarter. In
addition, deliveries for the hauling fleet from orders placed in 2018 are on track to commence in the
second quarter 2019. The Environmental and Social Impact Study (“ESIA”) was approved on January 17,
2019, allowing for the commencement of infrastructure construction, which is expected in the second
quarter 2019.
Rosebel is also conducting a scoping study to evaluate the underground mining potential of Saramacca
which could result in higher grades and substantially reduced waste stripping costs. Saprolite mining in the
initial years is expected to continue as planned with future potential for underground mining once hard rock
is reached. Diamond drilling to support this study commenced in the quarter and work to continue defining
the mineral resource is ongoing.
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Cost of sales of $889 per ounce sold and total cash costs of $901 per ounce produced for the first quarter
2019 were higher by 11% and 9%, respectively, compared to the same prior year period. Operating costs
were higher, driven by an increase in mining and milling volumes with harder rock in addition to higher
local labour cost following the finalization of the Collective Labour Agreement in the third quarter 2018.
However, Rosebel did see a decline in energy costs combined with lower light fuel consumption resulting
from shorter hauling distances to the mill, despite higher mine production.
All-in sustaining costs of $1,064 per ounce sold for the first quarter 2019 were 16% higher compared to the
same prior year period primarily due to higher cost of sales per ounce and higher sustaining capital
expenditures. Included in total cash costs and all-in sustaining costs for the first quarter 2019 was the
impact of realized derivative gains from hedging programs of $1 per ounce produced and $1 per ounce
sold, respectively (2018 - $5 and $4).
Sustaining capital expenditures for the first quarter 2019 of $11.1 million included capital spares of $4.6
million, mill equipment of $1.9 million, capital stripping of $1.5 million, and various other sustaining capital
expenditures of $3.1 million. Non-sustaining capital expenditures for the first quarter 2019 of $9.2 million
related to the Saramacca Project.
Outlook
We expect attributable production at Rosebel in 2019 to be in the range of 315,000 and 330,000 ounces.
Capital expenditures are expected to be approximately $145 million, consisting of $70 million in sustaining and
$75 million in non-sustaining capital.
Westwood Mine - Canada (IAMGOLD interest - 100%)
Gold production for the first quarter 2019 of 15,000 ounces was 63% lower than the same prior year period
as the mine assessed and adjusted stope sequences to address increased seismic activity in localized
areas in the fourth quarter 2018 impacting production. The risk of seismicity varies according to the
geometry of the openings and mining sequence. To manage this, we are studying various design
approaches to Westwood with a preliminary life of mine ("LOM") plan expected in the fourth quarter 2019,
followed by a NI 43-101 compliant plan in the first half of 2020. To ensure that mining is both profitable and
safe, we expect that the steady state production level for the mine may be lower than prior ramp -up target
levels.
We continue to adjust mining methods, ground support and safety protocols to address seismic activity,
with the commissioning of additional equipment capable of operating remotely in challenging areas. Mine
production activities are limited on the affected levels until an updated risk mitigation plan can be
formalized. Mining has been expanded in unaffected areas which contain lower grade stopes and is
expected to increase in the second quarter 2019 as areas with lower seismic risk are access ed for
production.
On March 19, 2019, we announced a 32% reduction in the mine workforce. The decision resulted from
both planned reductions due to the current stage of mine development as well as a realignment of costs
with reduced production levels, with a cash-flow neutral position projected for 2019. IAMGOLD remains
committed to the development of the Westwood mine and is taking these actions to optimize the future
development of the resource that is both safe and profitable.
Despite heading closures in respect of seismic protocol, underground development continued at planned
rates in the first quarter 2019 to open up access to new mining areas with lateral development of
approximately 2,500 metres, averaging 28 metres per day. To aid in the continuation of underground
development while respecting safety protocols in place for mining in areas where seismicity is present,
three units of bolting equipment received in 2018 which are designed to manage seismic exposure were
commissioned during the quarter. Infrastructure development continued in future development blocks at
lower levels.
In accordance with International Financial Reporting Standards, we reduced the cash costs and
depreciation attributed to inventory for the first quarter 2019 by $11.3 million and $5.0 million, respectively
(2018 - $nil and $nil) to normalize for the amount of fixed overhead on a per unit basis as a consequence
of abnormally low production. We reduced total cash costs and all-in sustaining costs for the first quarter
2019 by $778 per ounce produced and $610 per ounce sold, respectively (2018 - $nil and $nil).
8
Cost of sales per ounce sold for the first quarter 2019 of $1,549 were 115% higher compared to the same
prior year period primarily due to lower sales volume. Total cash costs per ounce produced, which included
the impact of normalization, was 20% higher compared to the same prior year period.
All-in sustaining costs per ounce sold for the first quarter 2019 of $1,192 were higher compared to the
same prior year period by 37% primarily due to higher cost of sales per ounce, partially offset by the
impact of cost normalization and lower sustaining capital expenditures. Included in total cash costs and all -
in sustaining costs for the first quarter 2019 was the impact of realized derivative gains from currency
hedging programs of $2 per ounce produced and $2 per ounce sold, respectively (2018 - $8 and $11).
Sustaining capital expenditures for the first quarter 2019 of $4.7 million included deferred development of
$3.0 million, underground equipment of $1.3 million, and underground construction of $0.4 million. Non -
sustaining capital expenditures for the first quarter 2019 of $7.9 million included deferred development of
$4.9 million, underground construction of $1.2 million, development drilling of $1.0 million and other non-
sustaining capital expenditures of $0.8 million.
Outlook
We expect production at Westwood in 2019 to be in the range of 100,000 and 120,000 ounces as mining
and development activities continue to progress as the new life of mine is being developed, while
respecting safety protocols for areas where seismicity is present. Capital expenditures are expected to be
approximately $45 million, consisting of $15 million in sustaining and $30 million in non -sustaining capital.
Sadiola Mine - Mali (IAMGOLD interest - 41%)
Attributable gold production for the first quarter 2019 of 12,000 ounces was lower by 20% compared to the
same prior year period primarily due to lower head grades as a result of greater drawdowns of margin al
ore stockpiles. Total cash costs per ounce produced and all-in sustaining costs per ounce sold for the first
quarter 2019 were lower compared to the same prior year period as a result of lower mining costs and
greater utilization of marginal stockpiles due to the cessation of mining activity in the second quarter 2018.
An agreement with the Government of Mali, on terms for investment in the Sadiola Sulphide Project, must
be reached in order to prevent the operation from entering a phase of suspended exploitation (care and
maintenance), once processing of the ore stockpiles is complete. Processing of the ore stockpiles is
expected to be completed in the second half of 2019. While this agreement has not yet been reached,
IAMGOLD and AngloGold Ashanti, who collectively own an 82% interest in Sadiola, have initiated a
process to identify third parties that may be interested in acquiring their collective interest in Sadiola. The
process is at a preliminary stage and there is no certainty of its outcome.
Yatela Mine - Mali (IAMGOLD interest - 40%)
The Yatela mine had limited production and sales for the first quarter 2019, consistent with the same prior
year period. A limited quantity of production continues from rinsing of the leach pads.
On 14 February 2019, Sadiola Exploration Limited ("SADEX"), the entity jointly held by AngloGold Ashanti
Limited and IAMGOLD Corporation, entered into a share purchase agreement with the Government of
Mali, whereby SADEX agreed to sell to the Government of Mali its 80% participation in Société
d’Exploitation des Mines d’Or de Yatela S.A. ("Yatela"), for a consideration of $1. The transaction remains
subject to the fulfillment of a number of conditions precedent, among which the adoption of two laws,
confirming the change of status of Yatela to a state entity, and also the creation of a dedicated state
agency, notably in charge of mine rehabilitation and closure. As part of the transaction, and upon its
completion, SADEX will make a one-time payment of approximately $18.5 million to the said state agency,
in an amount corresponding to the estimated costs of completing the rehabilitation and closure of the
Yatela mine, and also financing certain outstanding social programs. Upon completion and this payment
being made, SADEX and its affiliated companies will be released of all obligations relating to the Yatela
mine including those relating to rehabilitation, mine closure and the financing of social programs.