Iamgold Reports Fourth Quarter and Year-End 2021 Results; Generated $285 Million IN Operating Cash Flow
NEWS RELEASE
TSX: IMG NYSE: IAG
IAMGOLD REPORTS FOURTH QUARTER AND YEAR-END 2021 RESULTS;
GENERATED $285 MILLION IN OPERATING CASH FLOW
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 audited consolidated
financial statements for the year ended December 31, 2021.
FY2021 HIGHLIGHTS:
• Attributable production of 601,000 ounces near the top of updated production guidance
• Achieved updated operating cost guidance with full year cost of sales per ounce sold of $1,270, cash cost1
per ounce sold of $1,132 and all-in sustaining cost1 per ounce sold of $1,426
• Generated $293 million in operating cash flow before changes in working capital1
• Mine-site free cash flow1 of $133.8 million and adjusted EBITDA1 of $355.7 million
• Net loss attributable to equity holders of $0.53 per share and a djusted net earnings attributable to equity
holders1 of $0.06 per share
• Total available liquidity1 of $1.1 billion, including $544.9 million in cash and cash equivalents
• Côté Gold project 43.4% complete and detailed engineering at 92.2%
• Initial mineral resource estimate for Gosselin deposit, located adjacent to Côté, of 3.35 million indicated
ounces and 1.71 million inferred ounces
• Committed to achieving net negative greenhouse gas (“GHG”) emissions by no later than by 2050
Toronto, Ontario, February 23, 2022 – IAMGOLD Corporation (“IAMGOLD” or the “Company”) reports consolidated
financial and operating results for the fourth quarter and year ended December 31, 2021. Preliminary operating results for
the fourth quarter and year ended 2021 were disclosed on January 12, 2022. Key highlights of financial results include:
Corporate Highlights
• On February 14, 2022, the Company announced a collaboration agreement with RCF Management L.L.C ("RCF").
Pursuant to the Agreement, Maryse Bélanger, David Smith and Ian Ashby were appointed to the Board of Directors of
IAMGOLD (the “Board”) as independent directors, and Ms. Bélanger was appointed Chair. Richard Hall stepped down
from the Board. With today’s announcement of the Company’s year-end results, Ronald Gagel has resigned from the
Board, effective immediately. In addition, Mr. Tim Snider has advised that he will not stand for re -election at the
Company’s 2022 annual shareholders’ meeting.
• The Company continues to advance its strategy to prioritize an appropriate allocation of capital and resources between
the Company's existing mines and its Côté Gold project to generate the best return on invested capital while advancing
Côté Gold to production.
• On January 29, 2022, Don ald Charter, Chair of the Board, retired from the Company ’s Board in accordance with his
longstanding plans and the 2020 Board guidelines regarding tenure and Board composition.
• On January 12, 2022 Gordon Stothart, President and Chief Executive Officer (“CEO”), stepped down from his role and
resigned from the Board. Daniella Dimitrov, Chief Financial Officer ("CFO"), was appointed President, CFO and Interim
CEO.
• In December 2021, the Company appointed Jerzy Orzechowski as Executive Project Director for Côté Gold to oversee
management of the development of Côté Gold.
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• IAMGOLD launched the IAMALLIN operational excellence program focused on uncovering improvement opportunities
in the areas of cash preservation, c ost control, capital allocation and process optimization across operations. The
program was initiated at Essakane and will be launched at Rosebel and Westwood this year.
($ millions, except where noted) Q4 2021 Q3 2021 2021 2020
Revenues $ 294.6 $ 294.1 $ 1,151.7 $ 1,241.7
Gross profit $ (76.3) $ 6.9 $ 2.7 $ 250.3
EBITDA1 $ (193.4) $ 19.6 $ 27.1 $ 380.3
Adjusted EBITDA1 $ 90.0 $ 82.5 $ 355.7 $ 450.4
Net earnings (loss) attributable to equity holders $ (194.1) $ (75.3) $ (254.4) $ 38.5
Adjusted net earnings (loss) attributable to equity holders1 $ 44.3 $ (20.1) $ 26.8 $ 87.7
Net earnings (loss) per share attributable to equity holders $ (0.41) $ (0.16) $ (0.53) $ 0.08
Adjusted net earnings (loss) per share attributable to equity holders1 $ 0.09 $ (0.04) $ 0.06 $ 0.19
Net cash from operating activities before changes in working capital1 $ 76.0 $ 79.6 $ 293.0 $ 368.1
Net cash from operating activities $ 67.5 $ 78.5 $ 285.0 $ 347.6
Mine-site free cash flow1 $ 12.3 $ 31.9 $ 133.8 $ 223.2
Capital expenditures1 – sustaining $ 41.4 $ 26.4 $ 105.4 $ 79.1
Capital expenditures1 – expansion $ 190.1 $ 113.0 $ 520.3 $ 213.6
Dec 31 Sep 30 Dec 31 Dec 31
2021 2021 2021 2020
Financial Position ($ millions)
Cash, cash equivalents and short-term investments $ 552.5 $ 748.3 $ 552.5 $ 947.5
Long-term debt $ 464.4 $ 466.8 $ 464.4 $ 466.6
Available Credit Facility $ 498.3 $ 498.3 $ 498.3 $ 498.3
1 This is a non-GAAP measure. See "Non-GAAP Financial Measures".
Financial Results
Net earnings (loss) per share attributable to equity holders was $(0.41) for the fourth quarter and $(0.53) for the year ended
December 31, 2021. Adjusted net earnings (loss) per share attributable to equity holders 1 was $0.09 for the fourth quarter
and $0.06 for the year ended December 31, 2021, after adjusting for the non-cash net realizable value (“NRV”) write-down
of ore stockpiles and impairment charge on Rosebel, discussed below.
Loss before interest, income taxes, depreciation an d amortization1 was $193.4 million for the fourth quarter and earnings
before interest, income taxes, depreciation and amortization (“EBITDA”)1 was $27.1 million for the year ended December
31, 2021. Adjusted EBITDA 1 was $90.0 million for the fourth quarte r and $355.7 million for the year ended December 31,
2021.
Mine-site free cash flow1 was $12.3 million for the fourth quarter and $133.8 million for the year ended December 31, 2021.
Annual mine-site free cash flow was down $89.4 million from the prior yea r, primarily due to lower operating cash flow at
Rosebel ($111.6 million) and Westwood ($68.5 million), and higher capital expenditures at Rosebel ($ 30.8 million) and
Essakane ($21.9 million), partially offset by higher operating cash flow at Essakane ($136.5 million).
Net cash from operating activities was $67.5 million ($76.0 million before changes in working capital) for the fourth quarter
and $285.0 million ($293.0 million before changes in working capital) for the year ended December 31, 2021. Annual n et
cash from operating activities was down $62.6 million from the year prior, primarily due to lower revenue and higher cash
operating costs ($98.2 million), higher income tax es paid ($10.5 million), partially offset by higher cash receipts from the
settlement of derivatives ($31.7 million) and proceeds from insurance claims ($10.2 million).
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The updated mineral reserves and mineral resources estimates and life -of-mine plan for Rosebel were considered by the
Company to be an indicator of impairment. A non-cash impairment charge of $205.1 million (post-tax impairment charge of
$132.9 million) was recognized in the consolidated statements of earnings (loss) in the fourth quarter.
Operating Performance
Q4 2021 Q3 2021 2021 2020
Gold production – attributable (000s oz) 153 153 601 653
Gold sales – attributable (000s oz) 152 150 590 646
Average realized gold price2 ($/oz) $ 1,794 $ 1,787 $ 1,790 $ 1,778
Cost of sales1 ($/oz sold) – attributable $ 1,597 $ 1,247 $ 1,270 $ 1,057
Cash costs2 ($/oz sold) – attributable $ 1,184 $ 1,208 $ 1,132 $ 988
AISC2 ($/oz sold) – attributable $ 1,537 $ 1,508 $ 1,426 $ 1,232
1 Throughout this news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the annual consolidated financial statemen ts.
2 This is a non-GAAP measure. See "Non-GAAP Financial Measures".
Attributable gold production was 153,000 ounces for the fourth quarter and 601,000 ounces for 2021, near the top of the
updated production guidance.
Cost of sales (excluding depreciation) per ounce sold was $1,597 for the fou rth quarter and $1,270 per ounce sold for the
year ended December 31, 2021, up 20% from $1,057 per ounce sold in 2020. Included was a non-cash NRV write-down of
ore stockpile and finished goods inventories of $147 per ounce sold (2020 - $nil) comprised of $49 per ounce included in
cash costs and AISC per ounce sold as short -term and $98 per ounce excluded from cash cost and AISC per ounce sold
as long-term, and the positive impact of realized derivative gains of $19 per ounce sold (2020 – loss of $27 per ounce sold).
Excluding the NRV write-down, cost of sales per ounce sold was higher primarily due to lower production and sales volumes.
Cash cost1 per ounce sold was $1,184 for the fourth quarter and $1,132 per ounce sold for the year ended December 31,
2021, in line with the updated guidance. Cash costs were up 15%, from $988 per ounce sold in 2020, due to higher operating
costs, which included a non -cash NRV write-down of short -term ore stockpile and finished goods inventories of $50 per
ounce sold (2020 - $nil), and lower production and sales volumes.
AISC per ounce sold was $1,537 for the fourth quarter and $1,426 per ounce sold for the year ended December 31, 2021,
near the top end of the updated guidance. AISC were up 16%, from $1,232 per ounce sold in 2020, primarily due to lower
production and sales volumes as well as higher sustaining capital expenditures. Included was a non-cash NRV write-down
of short-term ore stockpile and finished goods inventories of $50 per ounce sold (2020 - $nil).
The DARTFR2 (days away, restricted, transferred duty frequency rate) was 0.3 7 and the TRIFR2 (total recordable injuries
frequency rate) was 0. 76 for 2021, below the global annual targets of DARTFR 0.51 and TRIFR 0.85, respectively. Côté
Gold has surpassed over 3.4 million hours with no lost time injuries to date.
Exploration
($ millions) Q4 2021 Q3 2021 2021 2020
Exploration projects – greenfield $ 5.6 $ 7.4 $ 27.8 $ 19.9
Exploration projects – brownfield1 5.5 4.8 19.6 16.4
$ 11.1 $ 12.2 $ 47.4 $ 36.3
1. Exploration projects - brownfield for the fourth quarter 2021 included near -mine exploration and resource development of $3.0 million (third quarter 2021 - $2.5
million, fourth quarter 2020 - $2.7 million, 2021 - $10.7 million, 2020 - $8.4 million).
For the fourth quarter, expenditures for exploration and project studies totaled $11.1 million, of which $8.1 million was
expensed and $3.0 million was capitalized. During the year, drilling activities on active projects and mine sites totaled
approximately 195,000 metres.
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Liquidity and Capital Resources
As at December 31, 2021, the Company had $544.9 million in cash and cash equivalents, $7.6 million in short -term
investments and net cash 1 of $1 6.3 million. Approximately $498 million was available under the Company ’s secured
revolving credit facility (the "Credit Facility") resulting in available liquidity1 at December 31, 2021 of $1.1 billion.
During 2021, the Company entered into gold sale prepayment arrangements (the "2022 Prepay Arrangements") at a
weighted average cost of 4.45% per annum in respect of 150,000 gold ounces. These arrangements have an average
forward contract price of $1,753 per ounce on 50,000 gold ounces and a collar range of $1,700 to $2,100 per ounce on
100,000 gold ounces. This will result in a total prepayment to the Company of $236 million over the course of 2022 and the
requirement on the part of the Company to physically deliver 150,000 gold ounces over the course of 2024. The 2022
Prepay Arrangements have the effect of rolling the 150,000 ounce gold sale prepay arrangement entered into in 2019 (the
“2019 Prepay Arrangement”), from 2022 to 2024 after the completion of the construction of Côté Gold. In January 2022, the
first 12,500 ounces were delivered into the 2019 Prepay Arran gement and the Company received $2.5 million in cash in
relation to the collar on the 2019 Prepay Arrangement and $19.7 million in cash pursuant to the 2022 Prepay Arrangements.
The Company is in the process of finalizing lease agreements for mobile equip ment with a value of approximately $125
million that will be purchased on behalf of the unincorporated Côté Gold joint venture. Sumitomo Metal Mining Co. (“SMM”)
will guarantee some of the leases for their 30% ownership. The remaining Côté Gold project dev elopment costs are net of
these leases, as previously disclosed.
In addition to the gold sale prepayment arrangements noted above, and in order to mitigate volatility during the construction
of Côté Gold between 2021 and mid-2023, the Company entered into certain derivative contracts in respect of certain of its
future gold sales, exchange rates and certain other commodities exposure. At December 31, 2021, approximately 26% and
10% of the Company ’s 2022 and 2023 estimated attributable production, respective ly, was hedged at average prices
between $1,300 per ounce and $3,000 per ounce. The Company has also entered into various oil and currency hedging
transactions. Refer to the MD&A "Market Risk – Summary of Hedge Portfolio" for information relating to the Co mpany’s
outstanding derivative contracts.
The net cash generated by operations is highly dependent on the gold price as well as other factors, including the USDCAD
exchange rate. The Company is scheduled to complete the remaining construction of Côté Gold during 2022 and 2023
resulting in significant capital expenditures that, together with sustaining and expansion capital expenditures at its existi ng
mines, are expected to exceed total current cash and cash generated from operations. As a result, the Compa ny expects
to make its first draw down on its credit facility in the first half of 2022 and expects to draw down most this facility over the
course of 2022 and 2023. Assuming the continuation of prevailing commodity prices and exchange rates, operations
performing in accordance with the 2022 guidance and 2023 plan, and no significant change in the Côté Gold costs or the
time of achieving commercial production (see also “Côté Gold Project” section below), the Company believes it should have
adequate liquidity, in addition to its existing credit facility and the additional equipment leases, to implement its near -term
operational plans and complete the development of Côté Gold.
To ensure adequate liquidity and flexibility, the Company regularly reviews expenditures and assesses opportunities taking
into consideration current liquidity, the capital markets, foreign exchange rates, ongoing operational and financial
performance and progress in the development of projects. As a result, the Company may take additiona l measures to
increase its liquidity and capital resources including additional financing, strategically disposing of assets or pursuing jo int-
venture partnerships.
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OPERATIONS AND PROJECTS
Essakane District, Burkina Faso – Essakane Mine (IAMGOLD interest – 90%)1
Q4 2021 Q3 2021 2021 2020 2019
Key Operating Statistics
Ore mined (000s t) 4,113 3,908 16,015 15,762 17,702
Waste mined (000s t) 10,903 11,335 44,405 39,479 38,605
Material mined (000s t) – total 15,016 15,243 60,420 55,241 56,307
Strip ratio2 2.7 2.9 2.8 2.5 2.2
Ore milled (000s t) 3,292 3,298 12,948 12,439 13,373
Head grade (g/t) 1.13 1.33 1.31 1.18 1.04
Recovery (%) 91 83 84 86 91
Gold production (000s oz) – 100% 108 118 457 404 409
Gold production (000s oz) – attributable 90% 98 106 412 364 368
Gold sales (000s oz) – 100% 102 122 453 399 413
Average realized gold price3 ($/oz) $ 1,794 $ 1,790 $ 1,794 $ 1,791 $ 1,400
Financial Results ($ millions)1
Revenue5 $ 184.2 $ 217.4 $ 813.9 $ 715.0 $ 579.2
Operating costs (80.3) (95.5) (364.8) (335.4) (330.6)
Royalties (9.2) (10.9) (40.7) (36.8) (27.1)
Cash costs3 $ (89.5) $ (106.4) $ (405.5) $ (372.2) $ (357.7)
Other mine costs4 (47.1) (5.9) (66.6) (35.8) (7.7)
Cost of sales5 $ (136.6) $ (112.3) $ (472.1) $ (408.0) $ (365.4)
Sustaining capital expenditures3,6 (22.9) (11.6) (51.2) (37.3) (39.0)
Other costs and adjustments7 41.6 (1.5) 36.7 7.6 (20.2)
All-in sustaining costs3 $ (117.9) $ (125.4) $ (486.6) $ (437.7) $ (424.6)
Expansion capital expenditures3,8 $ (24.1) $ (27.2) $ (84.4) $ (76.4) $ (62.0)
Performance Measures9
Cost of sales excluding depreciation ($/oz sold) $ 1,333 $ 925 $ 1,042 $ 1,023 $ 884
Cash costs3 ($/oz sold) $ 873 $ 878 $ 895 $ 934 $ 866
All-in sustaining costs3 ($/oz sold) $ 1,150 $ 1,033 $ 1,074 $ 1,098 $ 1,028
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 Other mine costs include the add-back of non-cash long-term portion of stockpile inventory NRV write-down for the fourth quarter of $42.9 million (third quarter 2021
- $nil; 2020 - $nil and 2019 - $nil) in addition to certain taxes and permits related costs, certain provisions, prior period operating costs and the exclus ion of by -
product credits.
5 As per note 36 of the annual consolidated financial statements for revenue a nd cost of sales. Cost of sales is net of depreciation expense.
6 Includes sustaining capitalized stripping for the fourth quarter 2021 of $6.7 million (third quarter 2021 - $1.0 million) and 2021 of $7.7 million (2020 - $nil and 2019 -
$3.6 million).
7 Other costs and adjustments include adjustments to exclude the non-cash long-term portion of stockpile inventory NRV write -down for the fourth quarter and 2021
of $42.9 million (third quarter 2021 - $nil; 2020 - $nil and 2019 - $nil), in addition to sustaining l ease principal payments, environmental rehabilitation accretion and
depletion, and prior period operating costs, partially offset by by -product credits.
8 Includes expansion capitalized stripping for the fourth quarter 2021 of $21.1 million (third quarter 2021 - $21.8 million) and 2021 of $65.0 million (2020 - $57.8 million
and 2019 - $30.4 million).
9 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.
Essakane continued to deliver strong results and achieved attributable gold production of 98,000 ounces in the fourth quarter
and a record 412,000 ounces for the year. Production was lower in the quarter due to lower grades in the mining schedule,
partially offset by higher recovery.
Mining activity of 15.0 million tonnes for the fourth quarter was in line with the prior quarter, while the strip ratio of 2.7 was
lower by 7%. The mine began sequencing out of the enriched ore zones at the bottom of the main pit resulting in lower
grade in the fourth quarter. Mining activity of 60.4 million tonnes for the year was higher than in 2020 as a result of operational
efficiencies and reduction of cycle times achieved from the modifications to the hauling fleet. The strip ratio of 2.8 in 202 1
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was higher by 12% as a result of continued focus on stripping campaigns in the upper benches during the year.
Mill throughput of 3.3 million tonnes in the fourth quarter was in line with the prior quarter and plant availability remaine d
above 92%. Mill throughput of 12.9 million tonnes in 2021 was 4% higher than in 2020 as a result of the mill debottlenecking
project and other optimization initiatives.
As the COVID-19 situation evolved towards the end of 2021 and into 2022, measures and controls are being strengthened
to limit transmission, reinforce awareness and promote vaccination. Approximately 64% of the workforce is fully vaccinated.
The IAMALLIN improvement project has now progressed to the execution phase and is focusing on mill and mine
productivities and working capital including spare parts management, operations efficiency and maintenance programs.
The Company reported on certain security incidents and developments in Burkina Faso ( see news releases dated
September 1, 2021, October 29, 2021, November 1, 2021 and January 25, 2022). All IAMGOLD personnel continues to be
safe and associated supply chains have not been significantly impacted by the security situation. The workforce has been
progressively increased to close to normal levels following a tempo rary reduction towards the end of 2021 , while the
Company continues to monitor the situation . The Company continues to expect that 2022 production will be within the
guidance range. The Company has taken proactive measures to ensure the safety and security of in-country personnel and
continuously evaluates the security environment. Investments in infrastructure in the region and at the mine site are being
made to further strengthen security measures, while regularly engaging with relevant authorities and ot her partners in
Burkina Faso in relation to security in the region as well as its supplies and transportation routes.
Outlook
Attributable gold production at Essakane in 2022 is expected to be in the range of 360,000 to 385,000 ounces, with
production expected to be relatively steady over the year as planned grades normalize closer to reserve grades, offset
slightly by higher recoveries due to expected lower graphitic content. Looking beyond 2022, Essakane is expected to
continue to produce in the range of 325,000 to 375,000 ounces in each of 2023 and 2024. Cash costs are expected to
increase slightly due to inflationary cost pressures, changes in transportation and logistics in relation to our workforce, and
the upgrade to transportation infrastructure at and outside of the mine site to address the security situation. The cost of our
main consumables consisting of explosives, cyanide, lime and grinding media are expected to be 5% to 7% higher on
average compared to 2021 pricing, resulting in an approximate 1% to 2% increase in cash costs reflected in 2022 guidance
estimates. The increase in AISC reflects the increase in operating costs, as well as higher sustaining capital and capitalized
stripping. Capital expenditures are expected to be approximately $170 million, compared to $136 million in 2021, primarily
consisting of capitalized stripping.
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Rosebel District, Suriname – Rosebel Mine (IAMGOLD interest – 95%)1
Q4 2021 Q3 2021 2021 2020 2019
Key Operating Statistics
Ore mined2 (000s t) 2,194 1,432 5,975 7,032 12,277
Waste mined2 (000s t) 11,594 9,703 37,163 35,348 41,049
Material mined2 (000s t) – total 13,788 11,135 43,138 42,380 53,326
Strip ratio2,3 5.3 6.8 6.2 5.0 3.3
Ore milled (000s t) – Rosebel 1,461 1,719 6,232 7,973 12,166
Ore milled2 (000s t) – Saramacca 988 956 3,655 2,347 —
Ore milled2 (000s t) – total 2,449 2,675 9,887 10,320 12,166
Head grade2,4 (g/t) 0.78 0.68 0.70 0.82 0.71
Recovery2 (%) 86 82 85 91 95
Gold production2 (000s oz) – 100% 53 47 188 245 264
Gold production1 (000s oz) – owner operator 44 42 162 221 264
Gold production (000s oz) – attributable 95% 42 40 154 210 251
Gold sales1 (000s oz) – owner operator 50 36 156 216 254
Average realized gold price5 ($/oz) $ 1,795 $ 1,779 $ 1,777 $ 1,757 $ 1,387
Financial Results ($ millions)1
Revenue8 $ 88.2 $ 64.0 $ 276.2 $ 380.5 $ 352.5
Operating costs (68.3) (59.5) (218.3) (201.6) (222.0)
Royalties (5.4) (5.1) (19.9) (22.4) (21.5)
Cash costs5,6 $ (73.7) $ (64.6) $ (238.2) $ (224.0) $ (243.5)
Other mine costs7 (20.7) (0.5) (21.9) (7.1) (12.3)
Cost of sales8 $ (94.4) $ (65.1) $ (260.1) $ (231.1) $ (255.8)
Sustaining capital expenditures5 (13.3) (10.8) (42.2) (29.3) (42.7)
Other costs and adjustments9 18.1 (1.6) 13.5 (4.4) 2.6
AISC5 $ (89.6) $ (77.5) $ (288.8) $ (264.8) $ (295.9)
Expansion capital expenditures5,10 $ (17.1) $ (12.8) $ (56.4) $ (38.5) $ (41.0)
Performance Measures11
Cost of sales excluding depreciation ($/oz sold) $ 1,922 $ 1,808 $ 1,674 $ 1,068 $ 1,007
Cash costs5 ($/oz sold) $ 1,501 $ 1,796 $ 1,533 $ 1,035 $ 959
AISC5 ($/oz sold) $ 1,824 $ 2,156 $ 1,859 $ 1,224 $ 1,165
1. Rosebel at 100% and Saramacca at 70% from April 1, 2020, as included in the annual consolidated financial statements, unless otherwise stated.
2. Includes Saramacca at 100%.
3. Strip ratio is calculated as waste mined divided by ore mined.
4. Includes head grade / tonne for the fourth quarter 2021 related to the Rosebel concession of 0.70 g/t and the Saramacca concession of 0.9 1 g/t (third quarter 2021 - 0.64 g/t and 0.76 g/t
respectively) and 2021 of 0.61 g/t and 0.85 g/t respectively (2020 - 0.68 g/t and 1.27 g/t, respectively).
5. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
6. Cash costs includes by-product credit.
7. Other mine costs include the add-back of non-cash long-term portion of stockpile inventory NRV write-downs for the fourth quarter and 2021 of $20.0 million (third quarter 2021 - $nil and 2020
- $nil), in addition to community development costs, certain provisions, prior period operating costs and the exclusion of by-product credits.
8. As per note 36 of the annual consolidated financial statements for revenue and cost of sales. Cost of sales is net of depreciation expense.
9. Other costs and adjustments includes adjustment to exclude the non-cash long-term portion of stockpile inventory NRV write-downs for the fourth quarter and full year 2021 of $20.0 million
(third quarter 2021 - $nil and full year 2020 - $nil), in addition to sustaining lease principal payments and environmental rehabilitation accretion and depletion, partially offset by by-product
credits.
10. Includes expansion capitalized stripping for the fourth quarter 2021 of $10.3 million (third quarter 2021 - $8.4 million) and 2021 of $33.6 million (2020 - $14.9million).
11. Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Rosebel achieved attributable gold production of 42,000 ounces in the fourth quarter and 154,000 ounces for the year.
Production increased in the quarter due to higher grades processed and higher recovery.
Material mined of 13.8 million tonnes in the quarter reflected the continued ramp up of mining activities over the year. Focus
on strategic pushbacks and stripping continued. The backlog in maintenance work on the aging mining fleet and the resulting
lower equipment availability and reliability continued to be challenges during the quarter, however, deliveries of new mobile
equipment replacing the aged mining fleet have commenced.
Mill throughput of 2.4 million tonnes in the fourth quarter decreased 8% compared with the prior quarter due to maintenance
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related work. Increased recoveries in addition to the higher sales and drawdown of inventories were due to the efficiency
improvements of the carbon adsorption/desorption circuit which were completed near the en d of the quarter. The increase
in recoveries and lower in-circuit gold inventory levels are expected to be maintained from 2022 onward. Rosebel provided
48% of the mill feed at an average grade of 0.72 g/t and Saramacca provided 37% of the mill feed at an average grade of
0.95 g/t. The remaining 15% mill feed was from low grade long-term ore stockpiles at an average grade of 0.58 g/t.
The COVID-19 situation at site and in Suriname has started to stabilize and improved during the fourth quarter, however
the new Omicron variant remains a concern as new cases in January 2022 were the highest recorded since the start of the
pandemic. Throughout 2021, workforce productivity levels were adversely impacted as a result of approximately 40% of the
total workforce having had COVID-19 since the start of the pandemic. The site continues to monitor and implement mitigating
measures to reduce the impact, including actively engaging in community related initiatives. Approximately 41% of the
workforce was fully vaccinated as of December 2021.
The Company has been collaborating with the government task force assigned to manage the security situation at site with
regards to illegal miners. The government security force have increased their patrols of the mine site during the fo urth
quarter, resulting in some decreases in pit intrusions.
The construction of required infrastructure at the Saramacca project, including the facility pad, the sedimentation dams
(functional), haul road, and public road crossings, as well as the majori ty of the previously planned activities related to the
West Dump rock drains have been completed by the end of the fourth quarter. Additionally, the dewatering wells, further
development of the rock drains and the completion of other earthworks activities, including slope remediation and bypass
road phase 2, are expected to be completed during 2022.
The Company has completed an updated Mineral Resource and Mineral Reserve estimate as of December 31, 2021 and
an updated life -of-mine plan for Rosebel ( see new s release dated January 12, 2022 ). The updated Mineral Reserves
estimate for Rosebel (on 100% basis and at $1,300 gold price) is comprised of Proven and Probable Mineral Reserves
totaling 3.8 million ounces of gold and the updated Mineral Resources estimate (on a 100% basis, at $1,500 gold price and
including Mineral Reserves) is comprised of Measured and Indicated Mineral Resources totaling 6.3 million ounces of gold.
Production is expected to ramp up to an estimated 300,000 ounces per year on a 100% basis starting in 2025 until the
current expected end of mine life in 2033 based on the updated Mineral Reserves estimate.
The updated mineral reserves and mineral resources estimates and life -of-mine plan for Rosebel were considered by the
Company to be an indicator of impairment for the Rosebel cash generating unit, which consists of the Rosebel complex and
the Rosebel royalty payable to Euro Resources S.A. by the Company. As a result, an assessment was performed and it
was determined that the carrying amount exceeded its recoverable amount of approximately $373.8 million. This resulted
in a non -cash impairment charge of $205.1 million (post -tax impairment charge of $132.9 million) being recorded in the
consolidated statements of earnings (loss) in the fourth quarter.
The IAMALLIN improvement project is in the discovery phase with on-site consultation commencing in the first half of 2022.
Outlook
Attributable gold production at Rosebel in 2022 is expected to be in the range of 155,000 to 180,000 ounces, with production
expected to be stronger in the second half after the seasonal rains subside. In addition, recoveries are expected to increase
compared to 2021 from continuing refurbishment initiatives at the mill complex. Cash costs are expected to increase due to
inflationary cost pressures, however unit costs per ounce sold are expected to decrease with higher expected production
levels. The cost of our main consumables consisting of explosives, cyanide, lime and grinding media are expected to be
5% to 7% higher compared to 2021 pricing, resulting in an approximate 1% to 2% increase in cash costs reflected in 2022
guidance estimates. Capital expenditures are expected to be approximately $140 million, compared to $99 million in 2021,
the majority of which relate to capitalized stripping and Saramacca development. Looking beyond 2022, Rosebel is expected
to produce 180,000 to 200,000 of attributable gold ounces in 2023 and 2024. As a result of the Company's current capital
allocation prioritization, the Company will be commencing a strategic review process to evaluate options for Rosebel.