Iamgold Reports First Quarter 2023 Results
NEWS RELEASE TSX: IMG NYSE: IAG
IAMGOLD REPORTS FIRST QUARTER 2023 RESULTS
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario, May 11, 2023 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the “Company”) today
reported its financial and operating results for the first quarter ended March 31, 2023.
HIGHLIGHTS:
Operations
• Attributable gold production from continuing operations was 113,000 ounces.
• Revenues from continuing operations were $226.2 million from sales of 119,000 ounces (109,000 ounces on an
attributable basis) at an average realized gold price of $1,893 per ounce.
• Cost of sales per ounce sold from continuing operations was $1,176, cash cost 1 per ounce sold from continuing
operations was $1,094 and all-in-sustaining-cost1 ("AISC") per ounce sold from continuing operations was $1,525.
Financial
• Net earnings attributable to equity holders1 of $6.3 million or $0.01 per share and adjusted net earnings attributable
to equity holders1 of $24.9 million or $0.05 per share.
• Net cash from operating activities was $13.4 million. Net cash from operating activities, before movements in non -
cash working capital and non-current ore stockpiles1, was $55.7 million.
• Earnings before interest, income taxes, depreciation and amortization ("EBITDA") 1 from continuing operations was
$68.4 million and adjusted EBITDA1 was $83.0 million.
• Mine-site free cash flow1 from continuing operations was $2.7 million.
• Cash and cash equivalents of $532.1 million as at March 31, 2023 . The Company repaid $255.0 million of the
secured revolving credit facility (“Credit Facility”) during the first quarter 2023 and the available balance is $257.3
million as at March 31, 2023.
Côté Gold
• As of March 31, 2023, the Côté Gold project was estimated to be 79.8% complete.
• The Company incurred attributable construction costs at Côté of $158.6 million in the first quarter 2023, and
approximately $1.37 billion since the commencement of construction, on a 70% basis.
• Sumitomo Metal Mining Co., Ltd. and SMM Gold Cote Inc. ("Sumitomo" or "SMM") funded $189.0 million of the
Company's funding obligation and an incremental $7.1 million based on its increased ownership during the first
quarter 2023 as per the Côté Gold Joint Venture Funding and Amending Agreement ("JV Funding and Amending
Agreement"), reducing the Company's interest in the unincorporated joint venture to 62.5%.
• Sumitomo funded a total of $61.0 million of the Company's contributions during April and May, further decreasing
the Company's interest to 60.3% and concluding the funding arrangement . It is estimated that SMM will contribute
an additional $82.8 million during the remainder of 2023 based on its increased ownership.
• The estimated attributable cost to complete the construction is $625 to $700 million, on a 70% and incurred basis.
IAMGOLD is expected to fund $460 to $535 million during the remainder of 2023 based on its 60.3% ownership in
the Côté Gold unincorporated joint venture. See "Côté Gold Project".
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Corporate
• On January 31, 2023, the Company completed the sale of its interests in the Rosebel mine to Zijin Mining Group
Co. Ltd. ("Zijin") that was announced on October 18, 2022. The Company received cash proceeds of $386.4 million
in the first quarter 2023, consisting of sales proceeds of $360.0 million, plus $29.8 million of cash held by Rosebel
on January 31, 2023, less preliminary working capital adjustments of $3.4 million. The Company is due to receiv e
approximately $9.8 million by June 30, 2023, consisting of the remaining cash balance held by Rosebel on January
31, 2023 of $9.6 million plus $0.2 million of final working capital adjustments.
• On April 25, 2023, the Company completed the sale of its 90% interest in the Boto Gold Project in Senegal and its
100% interest in the early stage exploration properties of Boto West, Senala West, Daorala and the vested interest
in the Senala Option Earn -in Joint Venture, also in Senegal for aggregate gross cash pr oceeds of $197.6 million
(pre-tax). The gross proceeds include deferred payments of $32.0 million which are anticipated to be received during
the third quarter 2023. See "Bambouk Assets".
• The Company has available liquidity of $789.4 million comprised of cash and cash equivalents of $532.1 million and
the available balance of the Credit Facility of $257.3 million as at March 31, 2023. Following the closing of the
remaining strategic asset s ales described above, the Company believes that it has sufficient liquidity to fund the
remaining $460 to $535 million required for the completion of construction of the Côté Gold Project based on the
current schedule and estimate. The Company continues to advance additional financing initiatives to strengthen its
balance sheet and improve its liquidity in order to place the Company in a strong position to return to a 70% interest
in the Côté Gold Project. See “"Liquidity Outlook".
“Looking at the first quarter, IAMGOLD reported impressive production results from both Essakane and Westwood, while
cost pressures remained in line with our estimates and what is appearing to be a new normal for our industry,” said Renaud
Adams, President and Chief Executive Officer of IAMGOLD . “The Essakane mine reported 92,000 ounces of attributable
production, with our Burkinabe teams demonstrating remarkable resilience and flexibility, as higher than modeled grades
helped to offset lower than expected m ining tonnes due to the ongoing challenges managing the in -country supply chain
and security. At Westw ood, we saw the continued ramp up of production, with 21,000 ounces produced in the quarter as
the operation begins to reap the benefits of the past 18 months of rehabilitation work which is ongoing and expected to
position the operation well for exiting the year.”
“At Côté Gold , the project continues to advance rapidly towards initial production early next year. The project was
approximately 80% complete at the end of March, and is now ramping up to peak activity levels now that the spring thaw is
nearing completion with a clear road map in front of us to achieve success. The impact of Côté Gold on this company will
be substantial, with the long life, low cost asset shifting our production base to Canada. Further, we continue to examine
opportunities to increase the strength and flexibility of IAMGOLD’s balance sheet in order to better position the company for
an ultimate return to the 70% interest at Côté in the future. IAMGOLD is a company that is undergoing a significant transition,
and as we move forward we are eager to shift our focus from fixing operations and building – to optimizing and realizing the
growth potential of our projects – which in turn will accelerate and unlock our value drivers for the benefit of all stakeholders,”
added Mr. Adams.
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QUARTERLY SUMMARY
The following tables summarize certain operating and financial results for the three months ended March 31, 2023 (Q1
2023) and March 31, 2022 (Q1 2022) and certain measures of the Company's financial position as at March 31, 2023,
December 31, 2022, and March 31, 2022. Financial results of Rosebel include the one month period ended January 31,
2023, prior to the closing of the sale to Zijin.
Q1 2023 Q1 2022
Key Operating Statistics
Gold production – attributable (000s oz)
- Essakane 92 112
- Westwood 21 16
Total from continuing operations 113 128
- Rosebel 25 46
Total gold production – attributable (000s oz) 138 174
Gold sales – attributable (000s oz)
- Essakane 88 119
- Westwood 21 16
Total from continuing operations 109 135
- Rosebel 24 46
Total gold sales – attributable (000s oz) 133 181
Cost of sales1 ($/oz sold) – attributable
- Essakane $ 1,063 $ 784
- Westwood 1,657 1,922
Total from continuing operations $ 1,176 $ 921
- Rosebel 949 1,369
Total cost of sales1 ($/oz sold) – attributable $ 1,136 $ 1,035
Cash costs2 ($/oz sold) – attributable
- Essakane $ 964 $ 781
- Westwood 1,646 1,886
Total from continuing operations $ 1,094 $ 914
- Rosebel 949 1,315
Total cash costs2 ($/oz sold) – attributable $ 1,068 $ 1,017
AISC2 ($/oz sold) – attributable
- Essakane $ 1,157 $ 1,134
- Westwood 2,508 2,376
Total from continuing operations $ 1,525 $ 1,389
- Rosebel 1,358 1,784
Total AISC2 ($/oz sold) – attributable $ 1,495 $ 1,490
Average realized gold price ($/oz)
- Continued operations $ 1,893 $ 1,789
- Discontinued operations 1,905 1,886
Total average realized gold price ($/oz) $ 1,895 $ 1,813
1. Throughout this news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the consolidat ed interim financial statements.
2. This is a non-GAAP measure. See "Non-GAAP Financial Measures" disclosure at the end of this news release for a description and calculation of these measures.
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Q1 2023 Q1 2022
Financial Results
($ millions from continuing operations)
Revenues $ 226.2 $ 265.0
Gross profit $ 43.1 $ 71.0
EBITDA1 $ 82.8 $ 135.0
- Continuing operations $ 68.4 $ 110.3
- Discontinued operations $ 14.4 $ 24.7
Adjusted EBITDA1 $ 106.4 $ 137.6
- Continuing operations $ 83.0 $ 110.8
- Discontinued operations $ 23.4 $ 26.8
Net earnings attributable to equity holders $ 11.9 $ 23.8
- Continuing operations $ 6.3 $ 16.0
- Discontinued operations $ 5.6 $ 7.8
Adjusted net earnings attributable to equity holders1 $ 39.5 $ 26.1
- Continuing operations $ 24.9 $ 16.4
- Discontinued operations $ 14.6 $ 9.7
Net earnings per share attributable to equity holders - continuing operations $ 0.01 $ 0.03
Adjusted net earnings per share attributable to equity holders1 - continuing operations $ 0.05 $ 0.03
Net cash from operating activities before changes in working capital1 - continuing
operations $ 55.7 $ 108.7
Net cash from operating activities $ 28.8 $ 142.3
- Continuing operations $ 13.4 $ 116.0
- Discontinued operations $ 15.4 $ 26.3
Mine-site free cash flow1 $ 8.6 $ 86.6
- Continuing operations $ 2.7 $ 86.9
- Discontinued operations $ 5.9 $ (0.3)
Capital expenditures1,2 – sustaining $ 35.0 $ 56.1
Capital expenditures1,2 – expansion $ 159.1 $ 80.0
March 31 December 31
2023 2022
Financial Position ($ millions)
Cash, cash equivalents and short-term investments $ 532.1 $ 407.8
Long-term debt $ 661.8 $ 918.7
Net cash (debt)1 $ (261.6) $ (605.6)
Available Credit Facility $ 257.3 $ 26.6
1. This is a non-GAAP measure. See "Non-GAAP Financial Measures" disclosure at the end of this news release for a description and calculation of these measures.
2. Capital expenditures represent incurred expenditures for property, plant and equipment and exploration and evaluation assets
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OUTLOOK
Operating Performance Outlook
Actual Q1 2023 Full Year Guidance 20231
Essakane (000s oz) 92 340 – 380
Westwood (000s oz) 21 70 – 90
Total attributable production (000s oz)2 113 410 – 470
Cost of sales2 ($/oz sold) $1,176 $1,125 – $1,175
Cash costs2.3 ($/oz sold) $1,094 $1,125 – $1,175
AISC2,3 ($/oz sold) $1,525 $1,625 – $1,700
Depreciation expense ($ millions) $44.0 $245 – $255
Income taxes4 paid ($ millions) $11.0 $70 – $80
1. The full year guidance is based on the following 2023 full year assumptions, before the impact of hedging: average realized gold price of $1,650 per ounce, USDCAD
exchange rate of 1.32, EURUSD exchange rate of 1.10 and average crude oil price of $91 per barrel.
2. Consists of Essakane and Westwood on an attributable basis of 90% and 100%, respectively.
3. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
4. The income taxes paid guidance reflects continuing operations and does not include the cash tax obligation arising as part of the Bambouk sales process. See
"Bambouk Assets" for additional details.
Production Outlook
Attributable gold production guidance for 2023 is unchanged and is expected to be in the range of 410,000 to 470,000
ounces.
Costs Outlook
Costs guidance for 2023 is unchanged with cash costs 1 expected to be between $1,125 and $1,175 per ounce sold and
AISC1 expected to be in the range of $1, 625 to $1,700 per ounce sold. The Company anticipates that costs will increase
during the second and third quarters of 2023 and could be at or above the high end of the annual guidance range due to
higher volumes of waste stripping planned during these periods.
Pricing for the main consumables including cyanide, lime and grinding media remains in line with the levels realized in the
second half of 2022. Pricing of fuel and fuel -linked products are expected to remain under pressure, reflecting continued
imbalances in global supply and demand. Increases in oil prices are expected to be partially mitigated by the existing oil
hedge program. Excluding the impact of the Company’s hedging program, a $10/bbl increase in the oil price is estimated
to result in an increase to cash costs of $12 per ounce sold. With current hedges in place, the same movement is estimated
to result in an increase in cash costs of $7 per ounce sold.
Capital Expenditures1
Sustaining capital expenditures¹ for 2023 are expected to be approx imately $195 million (± 5%) of which the majority is
related to capitalized stripping at Essakane (see Operation Section on "Essakane, Burkina Faso ”) and underground
development at Westwood. Expansion capital expenditures¹ for 2023 are expected to be approximately $805 to $880 million
with Côté Gold expenditures, on an incurred basis, expected to be approximately $800 to $875 million, based on IAMGOLD's
70% accounting for Côté Gold (see also “Côté Gold Project"). Other expansion capital expenditures¹ (excluding Côté Gold)
are expected to be approximately $5 million (± 5%) at Essakane in fulfillment of the relocation commitment to the Essakane
village.
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Actual Q1 2023 Full Year Guidance 20232
($ millions) Sustaining3 Expansion Total Sustaining3 Expansion Total
Essakane $ 17.1 $ 0.5 $ 17.6 $ 150 $ 5 $ 155
Westwood 17.8 — 17.8 45 — 45
$ 34.9 $ 0.5 $ 35.4 $ 195 $ 5 $ 200
Côté Gold4 — 158.6 158.6 — 800 – 875 800 – 875
Corporate 0.1 — 0.1 — — —
Total5,6,7,8 $ 35.0 $ 159.1 $ 194.1 $ 195 $ 805 – 880 $ 1,000 – 1,075
1. 100% basis, unless otherwise stated.
2. Capital expenditures guidance (±5%) at Essakane and Westwood.
3. Sustaining capital includes capitalized stripping of (i) $6.4 million for Essakane and $2.7 million for Westwood in the first quarter 2023 and (ii) $90 million for
Essakane and $6.0 million for Westwood for the full year guidance. See “Outlook” sections below.
4. 70% basis.
5. Includes $3.0 million of capitalized exploration and evaluation expenditures also included in the Exploration Outlook guidance table.
6. Capitalized borrowing costs are not included.
7. See “Costs Outlook” section above.
8. The full year guidance does not include expenditures for the Boto asset currently held for s ale. See “Bambouk Assets” for additional details.
Exploration Outlook
Exploration expenditures for 2023 are expected to be approximately $18 .0 million, including $3.0 million on the Gosselin
resource delineation drilling program, as well as other near-mine and greenfield programs.
Actual Q1 2023 Full Year Guidance 20231
($ millions) Capitalized Expensed Total Capitalized Expensed Total
Exploration projects – greenfield2 $ — $ 2.8 $ 2.8 $ — $ 13
$ 13
Exploration projects – brownfield 1.1 0.5 1.6 3
2
5
$ 1.1 $ 3.3 $ 4.4 $ 3
$ 15
$ 18
1. The full year guidance does not include expenditures for the Boto asset currently held for sale. See “Bambouk Assets" for additional details.
2. Exploration projects - greenfield does not include $2.3 million of expenditures for the Boto asset currently held for sale.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
IAMGOLD is committed to maintaining its culture of accountable mining through high standards of ESG practices and the
principle of Zero Harm® in every aspect of its business , with particular emphasis on respecting the natural environment,
building strong c ommunity partnerships and putting the health and safety of the Company's employees , contractors and
consultants first.
Health and Safety
Health and safety is core to the Company’s relentless pursuit of its Zero Harm® vision. Through various prevention
programs, the Company continuously promotes a safe work environment and a wellness program at all sites. The DARTFR
(days away, restricted, transferred duty frequency rate) was 0.60 as at March 31, 2023 (compared to 0.29 as at March 31,
2022), tracking above the Company’s annual target of 0.40, with an increasing trend since October 2022. The TRIFR (total
recordable injuries frequency rate) was 0.84 as at March 31, 2023 (compared to 0.83 as at March 31, 2022), tracking above
the Company’s annual target of 0.69.
The increasing trend is due to the recordable incidents at Westwood that impacted the global TRIFR and DARTFR during
the first quarter 2023. In addition to the existing preventive Health and Safety program, specific actions have been
implemented to mitigate the reoccurrence of these incidents.
Environment
The Company recognizes that mining activities are energy intensive and generate significant greenhouse gas (“GHG”)
emissions. In September 2021, the Company announced that it had set a global target o f reaching net negative GHG
emissions by no later than 2050. The Company also announced a target of achieving net positive biodiversity. Medium-term
targets will be set as part of the Company’s roadmap to achieve these global targets. An external review of the Company’s
GHG emissions profile across all sites has been completed and a draft action plan of the Company’s global commitments
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is currently being updated with the recent sale of some Company assets. The details of the roadmap will be published in
the inaugural TCFD report in 2023.
At Côté Gold, permitting efforts continued in the first quarter 2023 with permit amendments received allowing for additional
temporary camp infrastructure to support an increase in workers on site during construction. During the first quarter 2023,
the Company applied to the Ontario Ministry of the Environment, Conservation and Parks for initial entry into the Emissions
Performance Standards program to further compliance with its environmental obligations including establishi ng an
emissions baseline for the Côté operation.
At Essakane, significant progress has been made in the studies and the action plan for the update of the mine closure plan,
in consultation with government authorities. The updated closure plan is scheduled to be completed by mid-2023.
Social and Economic Development
The Company is continuously exploring opportunities for investing and partnering with the communities impacted by its
continuing operations.
At Essakane, the Company continued its participation in the Mining Fund for Local Development in Burkina Faso, a program
established by the government, pursuant to which the Company committed to contribute 1% of its annual revenues. The
contribution for the first quarter 2023 is estimated at $1.9 million. Phase 2 of the Water Triangle project, the Company’s
partnership with Global Affairs Canada, Cowater and One Drop was approved and signed by the parties in late December
2022. In February 2023, Cowater carried out an exploratory information collection missio n and presentation of Phase 2 to
the partnership’s stakeholders in Dori. A subsequent mission is scheduled for April 2023. Phase 2 of the project is expected
to benefit an additional estimated 75,000 people once completed.
At Côté Gold, the Minister of Min es and Chief of Flying Post First Nation visited the site for a tour during the first quarter
2023. Various committee meetings were held with First Nations partners including the annual Impact Benefit Agreement
(IBA) Leadership Committee, IBA Committee, En vironmental Management Committee, Employment and Training sub -
Committee and Socio-economic Management and Monitoring Committee. An IBA Implementation Committee was held with
the Abitibi Inland Historic Métis Community (Métis Nation of Ontario, Region 3). T hrough a partnership with Indspire, an
Indigenous education charity, four educational bursaries were awarded to post -secondary students from Mattagami First
Nation, Flying Post First Nation and the Métis Nation of Ontario. Outreach also occurred with regio nal stakeholders in
Timmins and Sudbury.
Governance
The Board of Directors of IAMGOLD (the “Board”) adopted new diversity and renewal guidelines in 2021, reflecting
governance best practices. Currently, women represent approximately 44% of the directors an d the average tenure of
directors on the Board is less than two years.
• On February 22, 2023, Christiane Bergevin was appointed to the Company’s Board as an independent director.
• On March 6, 2023, Renaud Adams was appointed by the Board as President and Chief Executive Officer, effective
April 3, 2023. Mr. Adams is replacing Maryse Bélanger, Chair of the Board, who was acting as Interim President
and CEO during the executive search process. Ms. Bélanger will continue in her role as Chair of the Board.
• On March 6, 2023, Maarten Theunissen was appointed permanent Chief Financial Officer, having served as Interim
CFO since September 2022.
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OPERATIONS – CONTINUING
Essakane Mine (IAMGOLD interest – 90%)1 | Burkina Faso
Q1 2023 Q1 2022
Key Operating Statistics1
Ore mined (000s t) 1,657 3,832
Grade mined (g/t) 1.82 1.05
Waste mined (000s t) 4,628 11,346
Material mined (000s t) – total 6,285 15,178
Strip ratio2 2.8 3.0
Ore milled (000s t) 2,175 3,162
Head grade (g/t) 1.62 1.39
Recovery (%) 91 88
Gold production (000s oz) – 100% 103 124
Gold production (000s oz) – attributable 90% 92 112
Gold sales (000s oz) – 100% 98 131
Average realized gold price3 ($/oz) $ 1,893 $ 1,885
Financial Results ($ millions)1
Revenues4 $ 186.5 $ 248.2
Cost of sales4 104.6 103.1
Production costs 97.4 80.9
(Increase)/decrease in finished goods (2.3) 9.9
Royalties 9.5 12.3
Cash costs3 94.9 102.7
Sustaining capital expenditures3,5 17.1 47.7
Expansion capital expenditures3 0.5 1.0
Total capital expenditures 17.6 48.7
Earnings from operations 43.6 90.2
Performance Measures6
Cost of sales excluding depreciation ($/oz sold) $ 1,063 $ 784
Cash costs3 ($/oz sold) $ 964 $ 781
AISC3 ($/oz sold) $ 1,157 $ 1,134
1. 100% basis, unless otherwise stated.
2. Strip ratio is calculated as waste mined divided by ore mined.
3. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
4. As per note 28 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depre ciation expense.
5. Includes sustaining capitalized stripping for the first quarter 2023 of $6.4 million (first quarter 2022 - $29.9 million).
6. Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to round ing.
Operations
Attributable gold production in the first quarter 2023 was 92,000 ounces, lower by 20,000 or 18% compared to the same
prior year period, primarily as a result of lower throughput, partially offset by higher grades.
Mining activity of 6.3 million tonnes in the first quarter 2023 was 59% lower than the same prior year period as the mining
fleet could not be operated at full capacity during January and February as a result of considerable disruptions in fuel supply,
resulting from the security situation further described below. The situation improved during March and the mining fleet was
operating at near full capacity during April.
Mill throughput in the first quarter 2023 was 2.2 million tonnes at an average head grade of 1.62 g/t, with throughput 31%
lower than the same prior year period. The decline in throughput during the quarter is primarily due to lower plant utilization
due to the fuel supply constraints described below. The head grade was higher than the prior period due to positive grade
reconciliation and the direct feed of material from the bottom of Phase 4. The head grade is expected to decrease over the
course of the year as the mill feed will include lower grade material from the stockpiles.