Iamgold Reports Fourth Quarter and Year-End 2022 Results
NEWS RELEASE TSX: IMG NYSE: IAG
IAMGOLD REPORTS FOURTH QUARTER AND YEAR-END 2022 RESULTS
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario, February 16, 2023 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the “Company”)
today reported its financial and operating results for the fourth quarter and year ended December 31, 2022. Preliminary
operating results for the fourth quarter and year ended 2022 were disclosed on January 17, 2023.
HIGHLIGHTS:
Operations
• Attributable gold production was 185,000 ounces in the fourth quarter and 713,000 ounces for the year, above the
top end of revised production guidance of 650,000 to 705,000 ounces.
• Cost of sales per ounce sold in the fourth quarter was $1,130, cash cost 1 per ounce sold was $1,173 and all -in
sustaining cost1 ("AISC") per ounce sold was $1,672. Cash cost 1 per ounce sold of $1,109 for the year was with in
the bottom end of the revised guidance range of $1,100 to $1,130 per ounce sold and AISC 1 per ounce sold of
$1,581 for 2022 was below the bottom end of the revised range of $1,600 to $1,650 per ounce sold.
• Attributable gold production from continuing oper ations, excluding Rosebel, was 116,000 ounces in the fourth
quarter and 499,000 ounces for the year. Cost of sales per ounce sold in the fourth quarter was $1,157 ($1,041 for
2022), cash cost 1 per ounce sold in the fourth quarter was $1,226 ($1,052 for 202 2) and AISC 1 per ounce sold in
the fourth quarter was $1,741 ($1,508 for 2022) on the same basis.
Financial
• Net earnings (loss) and adjusted net loss per share attributable to equity holders 1 of $(0.01) and $(0.02) for the
fourth quarter, respectively and net earnings (loss) and adjusted net earnings (loss) per share attributable to equity
holders1 of $(0.12) and $(0.07) for the year ended December 31, 2022, respectively.
• Net cash from operating activities was $12.3 million for the fourth quarter and $257.6 million for the year. Net cash
from operating activities, before movements in non-cash working capital and non-current ore stockpiles, was $36.2
million for the fourth quarter and $298.2 million for the year.
• Earnings before interest, income taxes, depreciation and amortization (“EBITDA”) 1 from continuing operations was
$57.8 million during the fourth quarter ($292.3 million for 2022) and adjusted EBITDA 1 from continuing operations
was $38.9 million for the fourth quarter ($313.4 million for 2022).
• Mine-site free cash flow1 from continuing operations was negative $21.9 million for the fourth quarter ($167.2 million
for 2022) and from all operations was $0.2 million for the fourth quarter ($187.6 million for 2022).
• Cash and cash equivalents held by continuing operations of $407.8 million and liquidity 1 of $434.4 million at
December 31, 2022. Cash and cash equivalents of $40.8 million was held by discontinued operations and assets
held for sale at December 31, 2022.
Côté Gold
• As of December 31, 2022, the Côté Gold project was estimated to be approximately 73% complete.
• The estimated attributable cost to complete the construction, on an incurred basis, and the Company’s attributable
funding requirement for 2023 is $800 to $875 million, assuming a USDCAD rate of 1.32. Sumitomo is expected to
fund approximately $340 million of the 2023 funding requirement as per the amended Côté Gold Joint Venture
Agreement (“Amended JVA”), requiring IAMGOLD to fund $460 to $535 million during 2023.
• The Company believes that the aggregate proceeds from the sale of its interest in the Rosebel mine, the anticipated
proceeds from the sale of the Bambouk assets and funds to be provided by Sumitomo under the Amended JVA
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meet the estimated remaining funding requirements for the completion of construction at the Côté Gold Project
based on the current schedule and estimate.
• On February 2, 2023, the Company announced additional assay results from its ongoing diamond drilling program
at the Gosselin zone, supporting the anticipated expansion potential at Gosselin, specifically south of and below the
interpreted resource boundaries of the deposit model.
Corporate
• On December 19, 2022, the Company announced that it had entered into an agreement with Sumitomo Metal Mining
Co., Ltd. and SMM Gold Cote Inc. ("Sumitomo" or "SMM") to amend the Côté Gold Joint Venture Agreement .
Commencing in January 2023, Sumitomo will contribute certain of the Company's funding amounts to the Côté Gold
Project that in aggregate are expected to total approximately $340 million over the course of 2023. As a result of
Sumitomo funding such amount s, the Company will progressively transfer, in aggregate, an approximate 10%
interest in Côté to SMM (the "Transferred Interests") as funding is made by SMM, subject to the right for the
Company to repurchase the Transferred Interests at one of seven future dates pursuant to the terms of the Amended
JVA, to return to its full 70% interest in the Côté Gold Project. Subsequent to December 31, 2022, SMM funded
$126.4 million under the funding arrangement, resulting in the Company’s interest in the Côté Gold pr oject being
diluted by 5.0% to 65.0%.
• On December 20, 2022, the Company announced it had entered into definitive agreements with Managem, S.A
(CAS:MNG) (“Managem”) to sell, for aggregate consideration of approximately $282 million, the Company's interests
in its exploration and development projects in Senegal, Mali and Guinea.
• On January 31, 2023 the Company completed the sale of its interests in the Rosebel mine to Zijin Mining Group Co.
Ltd. that was announced on October 18, 2022. The transaction closed o n January 31, 2023 and the Company
received net proceeds of $371.5 million, consisting of sale proceeds of $360.0 million, plus $15.0 million of cash
held by Rosebel on January 31, 2023, less a preliminary working capital adjustment of $3.5 million. The Co mpany
is due to receive approximately $24.8 million by March 31, 2023 consisting of the balance of cash held by Rosebel
on January 31, 2023, subject to final working capital adjustments.
Outlook
• Attributable gold production for 2023, excluding Rosebel, is expected to be in the range of 410,000 to 4 70,000
ounces, with Essakane attributable gold production expected to be in the range of 340,000 to 3 80,000 ounces and
Westwood gold production is expected to be in the range of 70,000 to 90,000 ounces.
• Cash costs¹ are expected to be between $1,125 and $1,175 per ounce sold, and AISC1 per ounce sold is expected
to be in the range of $1,625 to $1,700 per ounce sold. The estimate includes assumptions related to the escalated
pricing levels of certain consumables as experienced during the second half of 2022. Cash costs and AISC per
ounce sold in the first half of 2023 are expected to be at or above the high end of the annual guidance range due to
lower gold production and sales volumes, in addition to higher waste stripping in accordance with the mine plans,
as compared to the second half of the year.
“IAMGOLD is successfully emerging from a period of significant transformation over the past year, which was made possible
by the dedication and resiliency of our employees at every level of the company who have demonstrated a commitment to
working safely and responsibly towards a shared vision of generating superior value for our stakeholders through
accountable mini ng,” said Maryse Bélanger, Chair and Interim President and Chief Executive Officer of IAMGOLD.
“Operationally, the Company finished the year with a strong quarter, driving production above the top end of our revised
guidance estimates. Our construction tea ms at Côté Gold continued to advance the project allowing for critical project
activities to move inside the plant during the winter season while accelerating the deployment of the autonomous haulage
and drilling systems to better position the project for commencement of production next year. Financially, the Company
ended the year in a much stronger position with the announcement of key strategic transactions, including the amended
agreement with our partner Sumitomo Metal Mining.”
“As we look forward, 2023 will be a pivotal year for the Company, with a strong focus on continuing to execute at Côté. We
remain on track to commence production at Côté early next year and are eager to show case what will be Canada's third
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largest gold mine by production. In 2022, the industry was faced with considerable inflationary headwinds, and this year is
expected to continue to underscore the necessity to focus on safety, productivity and efficiency at all our operations . At
Essakane, following a record performance last year, we will be conducting additional stripping in the first half of the year to
position the mine for stronger production in the second half; while at Westwood, we expect to see continued gains in
underground development providing access to higher grade zones in the second half of the year.”
QUARTERLY REVIEW
The following tables summarize certain operating and financial results for the three months ended December 31, 2022 (Q4
2022) and December 31, 2021 (Q4 2021) and the twelve months ended December 31 for 2022 and 2021; and certain
measures of the Company's financial position as at December 31, 2022 and December 31, 2021:
Q4 2022 Q4 2021 2022 2021
Key Operating Statistics
Gold production – attributable (000s oz)
- Essakane 98 98 432 412
- Westwood 18 13 67 35
Total from continuing operations 116 111 499 447
- Rosebel 69 42 214 154
Total gold production – attributable (000s oz) 185 153 713 601
Gold sales – attributable (000s oz)
- Essakane 97 93 440 408
- Westwood 18 12 66 34
Total from continuing operations 115 105 506 442
- Rosebel 68 47 215 148
Total gold sales – attributable (000s oz) 183 152 721 590
Cost of sales1 ($/oz sold) – attributable
- Essakane $ 958 $ 1,333 $ 882 $ 1,042
- Westwood 2,230 2,335 2,093 2,252
Total from continuing operations $ 1,157 $ 1,451 $ 1,041 $ 1,135
- Rosebel 1,085 1,922 1,269 1,674
Total cost of sales1 ($/oz sold) – attributable $ 1,130 $ 1,597 $ 1,109 $ 1,270
Cash costs2 ($/oz sold) – attributable
- Essakane $ 1,043 $ 912 $ 899 $ 945
- Westwood 2,210 2,325 2,068 2,240
Total from continuing operations $ 1,226 $ 1,079 $ 1,052 $ 1,045
- Rosebel 1,083 1,514 1,243 1,545
Total cash costs2 ($/oz sold) – attributable $ 1,173 $ 1,213 $ 1,109 $ 1,170
AISC2 ($/oz sold) – attributable
- Essakane $ 1,456 $ 1,150 $ 1,234 $ 1,074
- Westwood 2,639 2,775 2,568 2,600
Total from continuing operations $ 1,741 $ 1,410 $ 1,508 $ 1,281
- Rosebel 1,554 1,824 1,753 1,859
Total AISC2 ($/oz sold) – attributable $ 1,672 $ 1,537 $ 1,581 $ 1,426
Average realized gold price ($/oz)
- Continued operations $ 1,639 $ 1,794 $ 1,721 $ 1,793
- Discontinued operations 1,725 1,795 1,793 1,777
Total average realized gold price ($/oz) $ 1,670 $ 1,794 $ 1,741 $ 1,790
Gold margin ($/oz) from continuing operations $ 413 $ 715 $ 669 $ 748
1. Throughout this news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the annual consolidated 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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Q4 2022 Q4 2021 2022 2021
Financial Results
($ millions)
Revenues $ 207.2 $ 206.4 $ 958.8 $ 875.5
Gross profit $ 20.0 $ (42.7) $ 147.9 $ 62.2
EBITDA1 $ 105.4 $ (193.4) $ 300.4 $ 27.1
- Continuing operations $ 57.8 $ 16.7 $ 292.3 $ 216.6
- Discontinued operations $ 47.6 $ (210.1) $ 8.1 $ (189.5)
Adjusted EBITDA1 $ 83.6 $ 90.0 $ 434.0 $ 355.7
- Continuing operations $ 38.9 $ 74.3 $ 313.4 $ 307.0
- Discontinued operations $ 44.7 $ 15.7 $ 120.6 $ 48.7
Net earnings (loss) attributable to equity holders $ 24.0 $ (194.1) $ (70.1) $ (254.4)
- Continuing operations $ (3.8) $ (51.9) $ (55.5) $ (95.8)
- Discontinued operations $ 27.8 $ (142.2) $ (14.6) $ (158.6)
Adjusted net earnings (loss) attributable to equity holders1 $ 16.6 $ 44.3 $ 22.7 $ 26.8
- Continuing operations $ (9.0) $ 36.3 $ (35.6) $ 25.0
- Discontinued operations $ 25.6 $ 8.0 $ 58.3 $ 1.8
Net earnings (loss) per share attributable to equity holders –
continuing operations $ (0.01) $ (0.11) $ (0.12) $ (0.20)
Adjusted net earnings (loss) per share attributable to equity
holders1 - continuing operations $ (0.02) $ 0.08 $ (0.07) $ 0.05
Net cash from operating activities before changes in working
capital1 - continuing operations $ 36.2 $ 63.3 $ 298.2 $ 256.0
Net cash from operating activities $ 66.8 $ 67.5 $ 408.7 $ 285.0
- Continuing operations $ 12.3 $ 52.7 $ 257.6 $ 257.8
- Discontinued operations $ 54.5 $ 14.8 $ 151.1 $ 27.2
Mine-site free cash flow1 $ 0.2 $ 10.8 $ 187.6 $ 128.3
- Continuing operations $ (21.9) $ 26.5 $ 167.2 $ 199.6
- Discontinued operations $ 22.1 $ (15.7) $ 20.4 $ (71.3)
Capital expenditures1,2,3 – sustaining $ 50.6 $ 28.1 $ 190.4 $ 63.2
Capital expenditures1,2,3 – expansion $ 137.6 $ 173.0 $ 554.2 $ 463.9
Dec 31 Dec 31 Dec 31 Dec 31
2022 2021 2022 2021
Financial Position
($ millions from continuing operations)
Cash, cash equivalents and short-term investments $ 407.8 $ 552.5 $ 407.8 $ 552.5
Long-term debt $ 918.7 $ 464.4 $ 918.7 $ 464.4
Net cash (debt)3 $ (605.6) $ 16.3 $ (605.6) $ 16.3
Available credit facility $ 26.6 $ 498.3 $ 26.6 $ 498.3
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. Throughout this news release, capital expenditures represent cash expenditures for property, plant and equipment and exploration and evaluation assets.
3. Starting in 2022, a higher portion of stripping costs are categorized as sustaining capital versus expansion capital, due to the particular areas that are scheduled
to be mined and the stage of the life of mine aligning with World Gold Council guidelines. See "Non -GAAP Financial Measures section".
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Operating Results – Continuing Operations
Note that all figures below are reflective of continuing operations and exclude Rosebel
Attributable gold production for the fourth quarter was 116,000 ounces, up 5,000 ounces or 5% from the prior year period,
due to higher production at Westwood resulting from higher mill throughput and grades. Attributable gold production for the
full year 2022 was 499,000 ounces, up 52,000 ounces or 12% from the prior year period, due to higher production at
Westwood (32,000 ounces) as the underground operations continue ramping up after being in care and maintenance in the
first half of 2021 and Essakane (20,000 ounces) resulting from higher grade and recoveries, partially offset by lower
throughput.
Attributable gold sales for the fourth quarter was 115,000 ounces, up 10,000 ounces or 10% from the prior year period, due
to higher production at Westwood ( 6,000 ounces) and timing of sales at Essakane (4,000 ounces) . Attributable gold sales
for the full year 2022 was 506,000 ou nces, up 64,000 ounces or 14%, due to higher production and timing of sales at
Essakane (32,000 ounces) and higher production at Westwood (32,000 ounces) . The average realized gold price for the
fourth quarter and the full year 2022 was $1,639 per ounce an d $1,721 per ounce, respectively, reflecting the monthly
physical gold deliveries of 12,500 ounces at $1,500 per ounce as required under the 2019 Prepay Arrangement. During the
year ended December 31, 2022, the Company delivered 150,000 ounces into the 201 9 Prepay Arrangement and received
$30.0 million in cash in relation to the collar.
Cost of sales (excluding depreciation) per ounce sold for the fourth quarter was $1,157, down $294 or 20% from the prior
year period, due to the Essakane NRV adjustment of $441 per ounce sold included in 2021 and higher gold sales, partially
offset by higher production costs in the fourth quarter of 2022. Cost of sales includes the positive impact of realized derivative
gains of $24 per ounce sold (fourth quarter 2021 - gains of $24 per ounce sold). Cost of sales (excluding depreciation) per
ounce sold for the full year 2022 was $ 1,041, down $94 or 8% from the prior year period, due to the Essakane NRV
adjustment of $100 per ounce sold in cluded in 2021 and higher gold sales, partially offset by higher production costs in
2022.
Cash costs per ounce sold in the fourth quarter were $1,226, up $147 per ounce or 14% from the prior year period, primarily
due to higher production costs, partially offset by higher gold sales. Cash costs per ounce sold for the full year 2022 were
$1,052, in line with the prior year period, as higher production costs were offset by higher gold sales. AISC per ounce sold
in the fourth quarter were $1,741, up $331 per ounce or 23% from the prior year period, primarily due to higher production
costs and higher sustaining capital expenditures, partially offset by higher gold sales . AISC per ounce sold for the full year
2022 were $1,508, up $227 or 18% from the prior year period, due to higher sustaining capital expenditures, primarily at
Essakane.
Health and Safety
IAMGOLD is committed to maintaining its culture of accountable mining through high standards of ESG practices and the
principle of Zero Harm® in every as pect of its business , with particular emphasis on respecting the natural environment,
building strong community partnerships and putting the health and safety of the Company's employees first .
Health and safety is core to the Company’s relentless pursuit o f its Zero Harm ® vision. An IAMGOLD employee sadly lost
his life in November in Burkina Faso as a result of injuries sustained in an off -site accident. A thorough investigation has
been undertaken to implement improvements to prevent future recurrences and respect the Company's Zero Harm ®
principle. Côté Gold surpassed over 8.3 million hours with no lost time injuries to date. The DARTFR (days away, restricted,
transferred duty frequency rate) was 0.31 as of the end of 2022 (compared to 0.37 as of the end of 2021), tracking below
the global annual target of 0.42, with an increasing trend since October 2022. The TRIFR (total recordable injuries frequency
rate) was 0.76 as of the end of 2022 (compared to 0.76 as of the end of 2021), tracking above the global annual target of
0.73.
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Financial Results
Revenues from continuing operations of $207.2 million in the fourth quarter from sales of 126,000 ounces (115,000 ounces
on an attributable basis) at an average realized gold price of $1,639 per ounce and $958.8 million for the year from sales
of 555,000 ounces (506,000 ounces on an attributable basis) at an average realized gold price of $1,721 per ounce.
Net earnings (loss) and adjusted net loss per share attributable to equity holders 1 of $(0.01) and $(0.02) for the fourth
quarter, respectively and net earnings (loss) and adjusted net earnings (loss) per share attributable to equity holders 1 of
$(0.12) and $(0.07) for the year ended December 31, 2022, respectively.
Net cash from operating activities was $12.3 million for the fourth quarter and $257.6 million for the year. Net cash from
operating activities, before movements in non-cash working capital and non-current ore stockpiles, was $36.2 million for the
fourth quarter and $298.2 million for the year.
Earnings before interest, income taxes, depreciation and amortization (“EBITDA”) 1 from continuing operations was $57.8
million during the fourth quarter and $292.3 million for the year and adjusted EBITDA1 was $38.9 million for the fourth quarter
and $313.4 million for the year.
Mine-site free cash flow 1 from continuing operations was negative $21.9 million for the fourth quarter and po sitive $167.2
million for the year. Mine-site free cash flow from all operations was $0.2 million for the fourth quarter and $187.6 million for
the year.
Net cash flow from operating activities for the fourth quarter of 2022 was $66.8 million and includes cash flow from operating
activities of $12.3 million from continuing operations and $54.5 million from discontinued operations. Net cash from operating
activities from the continuing operations decreased by $40.4 million from the same prior year period, primarily due to: lower
cash earnings of $3 5.6 million and a net unfavourable change in non -cash working capital movements of $13.3 million ,
partially offset by net proceeds from the 2022 Prepay Arrangements of $10.3 million. Net cash flow from operating activities
for the year ended 2022 was $408.7 million and includes cash flow from operating activities of $257.6 million from continuing
operations and $151.1 million from discontinued operations.
Net cash used in investing activities for the fourth quarter 2022 was $233.3 and included cash used in investing activities
from continuing operations of $205.4 million and discontinued operations of $27.9 million. Compared with the fourth quarter
2021, net cash used in investing activities from the continuing operations decreased by $28. 3 million, primarily due to a
decrease in capital expenditures for property, plant and equipment of $13.4 million and proceeds from the disposal of bond
fund investments and marketable securities of $1 3.3 million. Net cash used in investing activities for the year ended 2022
was $891. 9 million and included cash used in investing activities from continuing operations of $761. 2 million and
discontinued operations of $130.7 million. Net cash used in investing activities from the continuing operations increases by
$234.2 million when compared with the prior year, primarily due to an increase in capital expenditures for property, plant
and equipment of $217.5 million mainly related to the Cóté Gold construction, an increase in restricted cash of $10 million
as well as the increase in borrowing costs of $8.6 million, partially offset by proceeds from the disposal of marketable
securities and bond fund investments of $38.0 million. The prior year’s investing activities also included the proceeds of
selling non-core royalties for $45.9 million.
Net cash from (used in) financing activities for the fourth quarter 202 2 was $64.2 million and included cash from financing
activities from continuing operations of $68.6 million and discontinued operations of ($4.4) million. Compared with the fourth
quarter 2021, net cash from financing activities for the continuing operations increased by $66. 1 million, primarily due to
proceeds from the Credit Facility drawdowns of $75.0 million. Net cash from financing activities for the year ended 202 2
was $404.0 million and included cash from financing activities from continuing operations of $420.9 million and discontinued
operations of ($16.9) million. Net cash from financing activities for continuing operations increased by $443.7 million from
the prior year, primarily due to proceeds received from the Credit Facility drawdowns of $455.0 million and the eq uipment
loans of $6.0 million, partially offset by an increase in dividends paid to non-controlling interest of $13.4 million.
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Liquidity and Capital Resources
As at December 31, 2022, the Company had $ 407.8 million in cash and cash equivalents at its continuing operations and
net debt of $605.6 million. Approximately $26.6 million was available under the Company’s secured revolving credit facility
(“Credit Facility”) resulting in liquidity1 at December 31, 2022, of approximately $434 million. At December 31, 2022, assets
held for sale included cash and cash equivalents of $40.8 million of which $38.5 million was held at Rosebel, resulting in
total cash and cash equivalents of $448.6 million. On the closing of the Rosebel sales transaction, the C ompany received
$15 million of the January 31, 2023 Rosebel cash balance of $3 9.8 million and will receive the remaining balance by the
end of March 2023. Restricted cash in support of environmental closure costs obligations related to Essakane, Doyon
division and Côté Gold project totaled $56.3 million.
The Côté Gold UJV requires its joint venture partners to fund, in advance, two months of future expenditures. During the
third quarter, the Côté Gold UJV amended this requirement to two months from three months. The Company uses dividends
and intercompany loans to repatriate funds from its operations and the timing of dividends may impact the timing and amount
of required financing at the corporate level, including the Company's drawdowns under the Credit Facility. As at December
31, 2022, $236.4 million of cash and cash equivalents was held by Côté Gold and Essakane. The cash at Côté will be used
for expenditures of Côté Gold and excess cash at Essakane is repatriated through dividend payments, of which the
Company will receive its 90% share, net of dividend taxes. The Company funded its portion of the Côté Gold UJV funding
in 2022 with available cash balances, cash generated from its operations and drawdowns on the Credit Facility.
The following table summarizes the Company's outstanding long-term debt:
Dec 31 Dec 31 Dec 31
($ millions)1 2022 2021 2020
Credit Facility $ 455.0 $ — $ —
5.75% senior notes 447.6 445.7 438.6
Equipment loans 16.1 18.7 28.0
$ 918.7 $ 464.4 $ 466.6
1. Long-term debt does not include leases in place at continuing operations of $73.8 million as at December 31, 2022 (December 31, 2021 - $11.4 million, December
31, 2020 - $10.3 million).
Credit Facility
The Company has a $500 million Credit Facility, which was entered into in December 2017 and amended including in
February 2021, to primarily extend the maturity date from January 31, 2023, to January 31, 2025, for $490 million of the
available credit. During the year ended December 31, 2022, the Company drew down $455 million on the Credit Facility.
As at December 31, 2022, the Company had letters of credit in the amount of $18.4 million issued under the Credit Facility
to guarantee certain environmental indemnities and $26.6 million was available under the Credit Facility. Subsequent to the
year ended December 31, 2022, the Comp any issued a letter of credit totaling $10.8 million under the Credit Facility to
guarantee certain environmental indemnities. The Company repaid $9.1 million on the Credit Facility on January 31, 2023
as the available credit reduced to $490 million.
The Credit Facility provides for an interest rate margin above London Interbank Offered Rate, banker’s acceptance prime
rate and base rate advances which vary, together with fees related thereto, according to the total Net Debt to EBITDA ratio
of the Company. T he Credit Facility is secured by certain of the Company's real assets, guarantees by certain of the
Company’s subsidiaries and pledges of shares of certain of the Company's subsidiaries. The key terms of the Credit Facility
include certain limitations on i ncremental debt, certain restrictions on distributions and financial covenants including Net
Debt to EBITDA and Interest Coverage. The Company entered into an amendment in conjunction with entering into a
definitive agreement to sell its interests in the Rosebel mine where the lenders under the credit facility provided consent to
release their security over the Rosebel mine at the close of the transaction. The amendment requires that the proceeds
from the sale be used for funding the Côté Gold project with certain exceptions. The Company entered into a further
amendment to obtain consent for the amendment to the Amended UJV agreement as part of the funding agreement with
SMM. Subsequent to December 31, 2022, the Company obtained consent for the sale of the Bambouk assets.
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OUTLOOK
Liquidity Outlook
The remaining attributable funding required by the Company to the Côté Gold UJV to complete the construction of the Côté
Gold Project is estimated to be between $800 and $875 million from January 1, 2023. SMM will be funding up to $340
million of this amount on behalf of the Company as per the funding agreement entered into with S MM on December 19,
2022 (see “Côté Gold Project”), requiring the Company to fund approximately $460 to $535 million during 2023.
The transaction with Zijin Mining Group Co. Ltd. to sell the Company’s interests in the Rosebel mine closed on January 31,
2023, and the Company received total cash consideration of $371.5 million on January 31, 2023, with estimated additional
proceeds of $24.8 million expected to be received by the end of March 2023, subject to closing working capital adjustments.
The Company is expecting to close the transaction for the sale of its interests in the Bambouk assets during the second and
third quarters of 2023 for pre-tax cash consideration of $282 million.
Based on strategic transactions executed in the fourth quarter of 2022, the information currently available and prevailing
market conditions, which impact project expenditures and operating cash flows, the Company believes it has met the
remaining funding requirements to complete construction of the Côté Gold Project based on the current estimated cost and
schedule and does not expect that it will require additional liquidity in 2023. The Company continues to advance additional
financing initiatives to strengthen its balance sheet, improve its liquidity and reduce amounts drawn under its credit facility,
and in order to place the Company in a strong position to return to a 70% interest in the Côté Gold Project.
The Company’s financial results are highly dependent on the price of gold, oil and foreign exchange rates and future
changes in these prices will, therefore, impact performance. The Company will be dependent on the cash flows generated
from the Côté Gold project to repay its existing and any additional indebtedness that it may incur to fund the remaining
construction costs of the Côté Gold project. Readers are encouraged to read the “Caution Regarding Forward Looking
Statements” and the “Risk Factors” sections contained in the Company’s 2021 Annual Information Form, which is available
on SEDAR at www.sedar.com and the “Cauti on Regarding Forward Looking Statements” and “Risk and Uncertainties”
section of the MD&A.
Operating Performance Outlook
Actual 2022 Full Year Guidance 20231
Essakane (000s oz) 432 340 – 380
Westwood (000s oz) 67 70 – 90
Total attributable production (000s oz)2 499 410 – 470
Cost of sales2 ($/oz sold) $ 1,041 $1,125 – $1,175
Cash costs2.3 ($/oz sold) $ 1,052 $1,125 – $1,175
AISC2,3 ($/oz sold) $ 1,508 $1,625 – $1,700
Depreciation expense ($ millions) $ 240.5 $245 – $255
Income taxes4 paid ($ millions) $ 67.5 $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 1.00 and average crude oil price of $91 per ba rrel.
2. Consists of Essakane and Westwood on an attributable basis of 90% and 100%, respectively. Westwood production includes approximately 10,000 to 15,000
ounces of production from the Fayolle property in the second half of 2023.
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
"West Africa – Bambouk assets" for additional details.