Iamgold Reports Second Quarter 2020 Results
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS SECOND QUARTER 2020 RESULTS
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 six months ended June 30, 2020.
Toronto, Ontario, August 5, 2020 - IAMGOLD Corporation (“IAMGOLD” or the “Company”) reported its
consolidated financial and operating results for the quarter ended June 30, 2020.
“IAMGOLD delivered solid operating results in the quarter, generating $72.4 million in operating cash flow
and producing 155,000 ounces of gold. These results were achieved despite the temporary suspension of
mining activities at Westwood and Rosebel, with both operations back on line as of April 15 and July 24,
respectively, and the anticipated continued impact of the global COVID -19 crisis,” commented Gordon
Stothart, President and CEO of IAMGOLD. “During the quarter, we have taken significant, proactive steps
at each of our oper ations to establish protocols enabling us to deliver on our long -term strategy, while
prioritizing the health and safety or our workforce and host communities. I would like to commend our
employees for their extraordinary dedication, perseverance, and prof essionalism during these
unprecedented times."
Mr. Stothart stated, “On July 21, together with our JV partner, Sumitomo Metal Mining Co., we announced
the decision to proceed with the construction of the Côté Gold Project, located in northern Ontario. Côt é is
a world -class deposit and is transformational to IAMGOLD’s future, reducing overall operating costs,
increasing total production, increasing the number of mines and bringing greater geographic diversity to our
portfolio. Our strong financial position, with over $860 million in cash and short -term investments, coupled
with operating cash flows from our existing mines, enable us to take this important step toward executing on
our best-in-class growth pipeline.”
Mr. Stothart announced, "After 13 years with the Company, Carol Banducci has advised us of her intention
to retire from IAMGOLD on March 31, 2021. Carol has steadfastly seen the Company through a bull market,
a bear market and several transitions. Her disciplined approach to financial management and success in
building an outstanding finance and accounting team, has positioned the Company exceptionally well today
for both challenges and opportunities. I wish her all the best in retirement, and look forward to our continued
work together until that time."
Carol Banducci, EVP and CFO, commented, "It is with mixed emotions that I announce my retirement from
the Company. IAMGOLD is an exciting place to be, with an incredible pipeline of projects and outstanding
people. I look forward to working with G ord and the team to advance our ongoing work, and to ensure a
smooth transition process."
“In addition,” Mr. Stothart continued, “Jeffery Snow, General Counsel and Senior Vice President, Business
Development, will be retiring from the Company effective Au gust 31, 2020. Jeff has had a storied 39 -year
career at the intersection of law and mining. We will miss his wise counsel, and wish him all the best in his
well-deserved retirement.”
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Second Quarter 2020 Highlights
• Attributable gold production from continuing operations of 155,000 ounc es at cost of sales 1 per ounce
of $1,030, total cash costs2 per ounce produced of $935 and all-in sustaining costs2 per ounce sold of
$1,189. Production was impacted by the suspension of operations at Rosebel.
• Attributable gold sales from continuing operations of 153,000 ounces at an average realized gold price
per ounce of $1,724.
• Revenues of $284.6 million, reflecting an average realized gold price of $1,724 per ounce sold.
• Net income from continuing operations attributable to equity holders was $25.5 million, or $0.05 per
share, benefiting from improved operating margins.
• Adjusted net earnings from continuing operations attributable to equity holders 2 was $20.1 million, or
$0.04 per share2.
• Net cash from operating activities was $72.4 million, a 65% increase over the first quarter.
• Net cash from operating activities before changes in working capital2 was $79.0 million, a 9% increase
over the first quarter.
• IAMGOLD remains in a solid liquidity position with cash, cash equivalents, short-term investments and
restricted cash increasing by $36.5 million over the first quarter to $866.3 million, as at June 30, 2020.
OPERATING PERFORMANCE
• Attributable gold production from continuing operations was 155,000 ounces, down 29,000 ounces from
the same prior year period, and down 15,000 ounces from the first quarter 2020.
• Attributable gold sales from continuing operations were 153,000 ounces, down 21,000 ounces from the
same prior year period, and down 6,000 ounces from the first quarter 2020.
• Cost of sales1 from continuing operations was $1,030 per ounce, up 9% from the same prior year period,
and down 2% from the first quarter 2020.
• All-in sustaining costs2 from continuing operations were $1,189 per ounce, up 4% from the same prior
year period, and down 3% from the first quarter 2020.
• Total cash costs 2 from continuing operations were $935 per ounce, up 5% from the same prior year
period, and down 6% from the first quarter 2020.
• Gold margin2 from continuing operations was $789 per ounce, up $366 per ounce from the same prior
year period, and up $179 per ounce from the first quarter 2020.
FINANCIAL RESULTS
• Revenues were $284.6 million, up $38.1 million from the same prior year period, and up $10.1 million
from the first quarter 2020, reflecting an average realized gold price of $1,724 per ounce sold.
• Gross profit was $56.3 million, up $49.7 million from the same prior year period, and up $24.4 million
from the first quarter 2020.
• Net income from continuing operations attributable to equity holders was $25.5 million, or $0.05 per
share, compared to net loss from continuing operations of $18.6 million, or $0.04 per share in the same
prior year period, and compared to net loss from continuing operations of $34.4 million, or $0.07 per
share in the first quarter 2020.
• Adjusted net earnings from continuing o perations attributable to equity holders 2 was $20.1 million, or
$0.04 per share2, compared to adjusted net loss from continuing operations 2 of $15.5 million, or $0.03
per share2 in the same prior year period, and compared to adjusted net loss from continuing operations2
of $4.9 million, or $0.01 per share2 in the first quarter 2020.
• Net cash from operating activities was $72.4 million, up $31.8 million from the same prior year period,
and up $28.4 million from the first quarter 2020.
• Net cash from operating activities before changes in working capital1 was $79.0 million, up $36.2 million
from the same prior year period, and up $6.2 million from the first quarter 2020.
• Cash, cash equivalents, short-term investments and restricted cash totaled $866.3 million at June 30,
2020. Cash and cash equivalents were $831.9 million, short -term investments were $6.2 million and
restricted cash was $28.2 million. $499.6 million was available under the credit facility.
GLOBAL COVID-19 CRISIS
• The global COVID-19 crisis continues to evolve including the continuing imposition of restrictions on the
movement of people and goods, social distancing measures, restrictions on group gatherings,
quarantine requirements and contact tracing. IAMGOLD has b een closely monitoring and taking
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necessary measures to manage the impact of the COVID -19 crisis on its operations, development
projects and exploration activities. IAMGOLD is managing the financial and operational challenges of
COVID-19 while rapidly addressing the needs of its employees and the communities where we operate.
IAMGOLD continues to work closely with local and national governments and communities on limiting
the impact of the COVID -19 crisis on our people and business, and supporting the local efforts to
manage the crisis.
• IAMGOLD has taken extensive steps, across its operations and offices, to protect the health and safety
of employees, contractors and local communities in response to the COVID -19 crisis. These steps
included: implementation of sanitary measures recommended by Health Authorities; physical distancing;
use of personal protective equipment; restricted site access; screening processes for employees,
contractors and incoming supplies; use of thermal cameras to check temperatures before site entrance;
reduction of the on -site workforce to essential personnel only and arranging additional transportation
buses and on-site medical personnel. In addition, the number of sleeping quarters at the mine sites will
be further increased.
• Additional measures included reconfiguration of site facilities to accommodate physical distancing rules,
setting up of a field hospital, 24/7 ambulance service and air evacuation plans for emergency situations
at the Essakane mine site. As well, detailed safety procedures were developed, communication
channels were created for questions and concerns, and regular inspections were conducted by internal
site health professionals and by the local health authorities to ensure these measures were appropriately
implemented and consistently followed.
• Given the surge of COVID-19 infections in the region, a number of personnel at the Rosebel Gold Mine
operations in Suriname were diagnosed with COVID-19. Affected personnel were moved to Government
supervised quarantine facil ities in Paramaribo and received medical care, as appropriate. Currently,
there are no cases at the mine site and a limited number in quarantine offsite, with the majority of affected
personnel having already recovered. In conjunction with the Surinamese H ealth Authorities, Rosebel
implemented all required preventive measures, including the disinfecting of living quarters and work
areas.
• Westwood commenced the restart of operations from care and maintenance on April 15, 2020. The
restart was done in accordance with the standards set by the Government of Quebec, the Public Health
Directorate and the Commission des normes, de l'équité, de la santé et de la sécurité du travail
("CNESST") to limit the risk of the spread of COVID-19. Ramp-up activities included training employees
on new procedures and sanitary measures, adjusted work schedules and transport, and physical
distancing and protective equipment.
STRATEGIC DEVELOPMENTS
Exploration
• On May 13, 2020, IAMGOLD reported assay results from the 2020 diamond drilling program at the
Rouyn Gold Project in Canada. Drilling highlights included: 9.8 metres grading 10.4 g/t Au, 9.8 metres
grading 27.8 g/t Au (including 4.4 metres grading 58.4 g/t Au), and 9.0 metres grading 5.8 g/t Au.
• On June 18, 2020, IAMGOLD reported initial assay results from the 2020 infill and expansion diamond
drilling program at the Nelligan Project in Canada. Drilling highlights included: 25.1 metres grading 1.87
g/t Au, 27.0 metres grading 2.86 g/t Au, and 10.5 metres grading 10.5 g/t Au.
Development and Operations
• On April 22, 2020, Rosebel Gold Mines N.V. ("Rosebel") signed an Unincorporated Joint Venture
(“Rosebel UJV”) agreement with Staatsolie Maatschappij Suriname N.V. (“Staatsolie”) relating to the
concession areas within the Rosebel UJV Area of Interest, which includes Saramacca. The Rosebel
UJV excludes the existing gross Rosebel mining concession, which is 95% owned by Rosebel and 5%
owned by the Republic of Suriname. Rosebel holds a 70% participating interest and Staatsolie holds a
30% participating interest in the Rosebel UJV on behalf of the Republic of Suriname. Staatsolie has paid
Rosebel an initial amount of $34.0 million toward an aggregate owing of $54.9 million for all operating
and capital expenses related to the Saramacca Project. The remaining amount will be paid out of
Staatsolie’s gold entitlement from the Saramacca property.
• On April 15, 2020, IAMGOLD's Westwood Gold Mine commenced the res tart of operations from care
and maintenance following the April 13, 2020 confirmation from the Government of Quebec that mining
is an essential business. Previously, Westwood was placed on care and maintenance on March 25,
2020, along with other mining companies province-wide, as directed by the Government of Quebec in
response to the global COVID-19 crisis as mining was considered a non-essential business.
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• The Rosebel mine in Suriname was moved into self -confinement on March 22, 2020 to better protect
employees and communities, and to support the continuity of operations. Following a surge in COVID-
19 infections in the region, a number of personnel at Rosebel were diagnosed with COVID -19 in mid-
June. IAMGOLD implemented further protocols in response to the se cases to enable quarantining,
contact tracing, disinfection and increased physical distancing. Unfortunately, the Union chose to use
one of these preventative measures, which would support physical distancing through the reduction of
the number of peopl e sharing accommodations, as the basis for a work stoppage on June 12, 2020,
which required Rosebel to concurrently suspend operations until the appropriate controls could be
implemented to protect the safety of all employees. With confirmation and advice from the medical
experts of the COVID -19 Outbreak Management Team of Suriname, and explicit agreement between
the Union and Rosebel, Rosebel resumed operations on July 24, 2020.
• On March 24, 2020, the Essakane mine in Burkina Faso was also moved into self-confinement to better
protect employees and communities, and to support the continuity of operations. The Government of
Burkina Faso subsequently imposed a curfew and limited movement in the country by placing a number
of locations, including Ouagadougou and Essakane under administrative quarantine on April 8, 2020.
Administrative quarantine was lifted on May 19, 2020. Production continued uninterrupted during the
quarantine period.
Subsequent to the Quarter
• On July 21, 2020, IAMGOLD, together with joint venture partner Sumitomo Metal Mining Co., Ltd.
(“SMM”) announced the decision to proceed with the construction of the Côté Gold Project. During the
second quarter 2020, de -risking activities related to the development of the Project continued, with
project engineering over 60% complete. De -risking activities remain within the capital expenditure
guidance and include detailed engineering, refining the resource block model, and advancing project
permitting, including receipt of notification of approval for t he application under Section 36 of the
Fisheries Act (Canada) for the Project, a key milestone in attaining permits relating to impacts on fish
habitats and tailings management. The first phase of camp construction and site tree clearing were also
completed during the quarter.
• IAMGOLD filed a National Instrument ("NI") 43-101 Technical Report for its Westwood mine on August
5, 2020, confirming the details of a safe and profitable operation and re -affirmed long-term production
guidance originally disclosed in December 2019. The NI 43-101 Technical Report incorporated modified
mining methods, operational practices and revised productivity assumptions. In this context, total
attributable reserves decreased by 48% to 0.618 million ounces (2.698 million tonnes gr ading 7.1 g/t
Au), with the balance of reserve ounces being reclassified to resource ounces. While overall mineral
resources have remained largely unchanged at 4.764 million tonnes grading 10.2 g/t Au for a total of
1.557 million ounces in measured and indicated resources, mineral reserves were impacted primarily by
more conservative geotechnical assumptions related to specific zones located in higher seismic risk
areas. As is typical for underground operations, and supported by reasonable assumptions in-line with
historical operating experience, IAMGOLD continues to work on converting its significant underground
mineral resources to mineral reserves over time.
• On August 5, 2020, IAMGOLD announced the retirement of Carol Banducci, EVP and CFO, effective
March 31, 2021 and the retirement of Jeffery Snow, General Counsel and SVP Business Development,
effective August 31, 2020.
UPCOMING GROWTH CATALYSTS
• IAMGOLD continues de-risking activities at the Boto Gold Project, by advancing engineering, building
access infrastructure, and progressing with environmental and social programs to support the project
development. Building on our exploration success along the Senegal-Mali Shear Zone with several other
discoveries located within 15 kilometres of the Boto Gold Project in adjacent countries, IAMGOLD has
also initiated a strategic study, referred to as the “Bambouk Gold Complex,” to advance resource
evaluation and delineation at the Diakha-Siribaya and Karita projects to support the evaluation of various
potential development scenarios and identify regional synergies.
• IAMGOLD continues to advance various ongoing and planned delineation and resource evaluation
drilling programs at selected projects including the Nelligan Gold, the Monster Lake and the Rouyn Gold
Projects in Quebec, the Gosselin discovery on the Côté Gold property in Ontario, and the Karita Gold
discovery in Guinea.
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SUMMARY OF FINANCIAL AND OPERATING RESULTS
Three months ended
June 30,
Six months ended
June 30,
Financial Results ($ millions, except where noted) 2020 2019 2020 2019
Continuing Operations
Revenues $ 284.6 $ 246.5 $ 559.1 $ 497.5
Cost of sales $ 228.3 $ 239.9 $ 470.9 $ 491.8
Gross profit $ 56.3 $ 6.6 $ 88.2 $ 5.7
Net earnings (loss) from continuing operations attributable to
equity holders of IAMGOLD $ 25.5 $ (18.6) $ (8.9) $ (59.3)
Net earnings (loss) from continuing operations attributable to
equity holders of IAMGOLD ($/share) $ 0.05 $ (0.04) $ (0.02) $ (0.13)
Adjusted net earnings (loss) from continuing operations
attributable to equity holders of IAMGOLD1 $ 20.1 $ (15.5) $ 16.5 $ (17.7)
Adjusted net earnings (loss) from continuing operations
attributable to equity holders of IAMGOLD ($/share)1 $ 0.04 $ (0.03) $ 0.03 $ (0.04)
Net cash from operating activities $ 72.4 $ 40.6 $ 116.4 $ 48.7
Net cash from operating activities before changes in working
capital1 $ 79.0 $ 42.8 $ 151.8 $ 75.9
Key Operating Statistics
Gold sales – attributable (000s oz) 153 174 312 352
Gold production – attributable (000s oz) 155 184 325 357
Average realized gold price1 ($/oz) $ 1,724 $ 1,316 $ 1,663 $ 1,312
Cost of sales2 ($/oz) $ 1,030 $ 941 $ 1,042 $ 952
Total cash costs1 ($/oz) $ 935 $ 893 $ 966 $ 891
All-in sustaining costs1 ($/oz) $ 1,189 $ 1,146 $ 1,210 $ 1,124
Gold margin1 ($/oz) $ 789 $ 423 $ 697 $ 421
1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of IAMGOLD's MD&A.
2 Cost of sales, excluding depreciation, as disclosed in note 31 of IAMGOLD's consolidated interim financial statements express ed on an attributable
ounce sold basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel).
SECOND QUARTER 2020 SUMMARY
Financial Performance
• Revenues from continuing operations for the second quarter 2020 were $284.6 million, up $38.1 million
or 15% from the same prior year period. The increase was primarily due to a higher realized gold price
($67.3 million), partially offset by lower sales volume at Rosebel ($15.5 million), Essakane ($9.2 million)
and Westwood ($4.5 million).
• Cost of sales from continuing operations for the second quarter 2020 was $228.3 million, down $11.6
million or 5% from the same prior year period. The decrease was primarily due to lower operating costs
($8.2 million) and depreciation expense ($5.3 million) partially offset by higher royalty expense as a
result of an increase in the gold price ($1.9 million). Operating costs were lower primarily due to lower
operating activity at Rosebel resulting from the work stoppage on June 12, 2020.
• Depreciation expense from continuing operations for the second quarter 2020 was $58.4 million, down
$5.3 million or 8% from the same prior year period. The decrease was primarily due to lower depreciation
at Westwood resulting from the impairment charge recorded in the fourth quarter 2019.
• Income tax expense for the second quarter 2020 was $14.3 million, up $10.4 million from the same prior
year period. Income tax expense for the second quarter 2020 comprised current income tax expense of
$13.3 million (June 30, 2019 - $0.2 million) and deferred income tax expense of $1.0 million (June 30,
2019 - $3.7 million). The increase in income tax expense was due to a lower deferred tax recovery
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 income from continuing operations attributable to equity holders for the second quarter 2020 was
$25.5 million, or $0.05 per share, compared to net loss of $18.6 million, or $0.04 per share in the same
prior year period. The increase in net income was primarily due to higher gross profit ($49.7 million),
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higher interest income, derivatives and other investment gains (losses) ($22.5 million) and lower
exploration expenses ($5.6 million), partially offset by higher other expenses ($22.1 million) and higher
income taxes ($10.4 million).
• Adjusted net earnings from continuing operations attributable to equity holders 2 was $20.1 million, or
$0.04 per share2, compared to adjusted net loss from continuing operations 2 of $15.5 million, or $0.03
per share2 in the same prior year period.
• Net cash from operating activities for the second quarter 2020 was $72.4 million, up $31.8 million from
the same prior year period. The increase was primarily due to higher earnings after non -cash
adjustments ($40.3 million).
• Net cash from operating activities before changes in working capital 1 for the second quarter 2020 was
$79.0 million, up $36.2 million from the same prior year period.
Financial Position
• Our cash, cash equivalents, short-term investments and restricted cash were $866.3 million at June 30,
2020, up $1.5 million from December 31, 2019. The increase was primarily due to cash generated from
operating activities ($116.4 million) and proceeds from the equipment loan ($10.9 million), partially offset
by spending on property, plant and equipment ($125.7 million).
• As previously noted in the July 21, 2020 news release concerning the construction of the Côté Gold
Project, IAMGOLD indicated that it may enter into derivative contracts to mitigate financial exposures.
In order to mitigate gold price exposure and to further de-risk the balance sheet, IAMGOLD intends,
under appropriate conditions, to hedge 15 – 20% of total production to cover the construction period of
the Project between 2021 and mid-2023 through a combination of options and/or collars.
Production and Costs
• Attributable gold production from continuing operations was 155,000 ounces for the second quarter
2020, down 29,000 ounces from the same prior year period. The decrease was primarily due to lower
production at Rosebel (20,000 ounces) as a result of the work stoppage during June 2020.
• Attributable gold sales from continuing operations were 153,000 ounces for the second quarter 2020,
down 21,000 ounces from the same prior year period. The decrease was due to lower sales at Rosebel
(12,000 ounces), Essakane (6,000 ounces) and at Westwood (3,000 ounces).
• Cost of sales 1 per ounce from continuing operations for the second quarter 2020 was $1,030, up 9%
from the same prior year period primarily due to lower sales volume and higher royalties as a result of
an increase in the gold price.
• Total cash costs 2 per ounce produced from continuing operations for the second quarter 2020 were
$935, up 5% from the same prior year period primarily due to lower production volume and higher
royalties as a result of an increase in the gold price.
• All-in sustaining costs 2 per ounce sold from continuing operations for the second quarter 2020 were
$1,189, up 4% from the same prior year period primarily due to higher cost of sales per ounce partially
offset by lower sustaining capital expenditures.
Commitment to Zero Harm Continues
• The DART rate3, representing the frequency of all types of serious injuries across all sites and functional
areas for the second quarter 2020 was 0.11, below IAMGOLD's target of 0.57. We continue the
implementation of several initiatives, including a behaviour-based safety program, to ensure a safer work
environment.
COVID-19 Crisis
• In response to the global COVID -19 crisis, IAMGOLD has taken extensive steps to protect the health
and safety of employees and contractors.
• As the global COVID-19 crisis evolved, we adjusted and expanded the extensive measures previously
implemented to protect the health and safety of employees, contractors and local communities. These
measures included training on new procedures and sanitary measures recommended by Health
Authorities, adjus ted work schedules, physical distancing and protective equipment, restricted site
access, screening processes for employees, contractors and incoming supplies, use of thermal cameras
to check temperatures before site entrance, reduction of the on -site workforce to essential personnel
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only and arranging additional transportation buses and on -site medical personnel. In addition, the
number of sleeping quarters at the mine sites will be further increased.
ATTRIBUTABLE GOLD PRODUCTION AND COSTS
Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash Costs2
($ per ounce
produced)
All-in Sustaining
Costs2,3
($ per ounce sold)
Three months ended June 30, 2020 2019 2020 2019 2020 2019 2020 2019
Continuing operations
Essakane (90%) 83 88 $ 1,079 $ 960 $ 952 $ 887 $ 1,123 $ 1,077
Rosebel (95%) 52 72 959 944 896 915 1,150 1,116
Westwood (100%)4,5 20 24 1,020 869 968 849 1,133 990
155 184 $ 1,030 $ 941 $ 935 $ 893 $ 1,189 $ 1,146
Cost of sales1 ($/oz) $ 1,030 $ 941
Cash costs, excluding royalties $ 855 $ 836
Royalties 80 57
Total cash costs2 $ 935 $ 893
All-in sustaining costs2,3 $ 1,189 $ 1,146
Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash Costs2
($ per ounce
produced)
All-in Sustaining
Costs2,3
($ per ounce sold)
Six months ended June 30, 2020 2019 2020 2019 2020 2019 2020 2019
Continuing operations
Essakane (90%) 167 178 $ 1,027 $ 927 $ 930 $ 885 $ 1,090 $ 1,043
Rosebel (95%) 116 140 1,044 916 977 908 1,204 1,089
Westwood (100%)4,5 42 39 1,093 1,165 1,077 853 1,189 1,078
325 357 $ 1,042 $ 952 $ 966 $ 891 $ 1,210 $ 1,124
Cost of sales1 ($/oz) $ 1,042 $ 952
Cash costs, excluding royalties $ 890 $ 832
Royalties 76 59
Total cash costs2 $ 966 $ 891
All-in sustaining costs2,3 $ 1,210 $ 1,124
1 Cost of sales, excluding depreciation, as disclosed in note 31 of IAMGOLD's consolidated interim financial statements express ed on an attributable
ounce sold basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel).
2 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of IAMGOLD's MD&A.
3 All-in sustaining costs include corporate general and administrative costs. Refer to all -in sustaining costs reconciliation on page 29.
4 Cost of sales per ounce sold for Westwood does not include the impact of normalization of costs for the three and six months ended June 3 0, 2020 of
$nil and $nil per ounce (three and six months ended June 30, 2019 - $nil and $30 per ounce), respectively.
5 Total cash costs per ounce produced and all-in sustaining costs per ounce sold for Westwood include the impact of normalization of costs for the three
and six months ended June 30, 2020 of $nil and $nil per ounce (three and six months ended June 30, 2019 - $nil per ounce produced and $266 per
ounce sold, respectively).
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OUTLOOK
IAMGOLD Full Year Attributable Guidance1 Revised1 Previous2
Essakane (000s oz) 350 – 370 350 – 370
Rosebel (000s oz) 210 – 230 250 – 270
Westwood (000s oz) 85 – 100 85 – 100
Total attributable production (000s oz) 645 - 700 685 - 740
Cost of sales3 ($/oz) $990 - $1,030 $955 - $995
Total cash costs4,5 ($/oz) $940 - $980 $920 - $960
All-in sustaining costs4,5 ($/oz) $1,195 - $1,245 $1,195 - $1,245
1. The revised outlook is based on 2020 full year assumptions with an average realized gold price of $1,675 per ounce, USDCAD ex change rate of 1.36,
EURUSD exchange rate of 1.12 and average crude oil price of $40 per barrel.
2. The previous outlook is based on 2020 full year assumptions with an average realized gold price of $1,500 per ounce, USDCAD exchange rate of 1.40,
EURUSD exchange rate of 1.12 and average crude oil price of $35 per barrel.
3. Cost of sales, excluding depreciation, is on an attributable ounce sold basis (excluding the non -controlling interest of 10% at Essakane and 5% at
Rosebel).
4. This is a non-GAAP measure. Refer to the non-GAAP performance measures section of IAMGOLD's MD&A.
5. Consists of Essakane, Rosebel, and Westwood on an attributable basi s.
GOLD PRODUCTION, COST OF SALES, TOTAL CASH COSTS AND ALL-IN SUSTAINING COSTS
IAMGOLD lowered its 2020 total attributable gold production guidance to the range of 645,000 to 700,000
ounces from 685,000 to 740,000 ounces reflecting the suspension of operations on June 12, 2020 at the
Rosebel Gold Mine in response to COVID-19 being detected amongst operations personnel. This operations
suspension was lifted on July 24, 2020 once the Suriname national health authorities confirmed it was safe
to do so, and that the appropriate controls have been adopted by personnel to ensure the safety of all
employees. COVID-19 prevention protocols implemented include a reduced workforce to promote physical
distancing in the camp facilities, which has in turn resulted in modifications to planned production volumes.
To safely achieve the full year produc tion guidance, IAMGOLD is expected to incur incremental costs
including increased number of sleeping quarters, adjusted work schedules and transport, expediting key
supplies, additional security and screening measures, and personal protective equipment to protect
IAMGOLD's workforce. Higher royalty expenses are expected due to the higher gold price expected in the
year.
We revised upwards our 2020 cost of sales per ounce sold guidance to the range of $990 to $1,030 from
$955 to $995 primarily due to the glo bal COVID-19 crisis resulting in lower sales volume relative to the
previous guidance.
We revised upwards our 2020 total cash costs2 per ounce produced guidance to the range of $940 to $980
from $920 to $960 primarily due to the global COVID-19 crisis resulting in lower production volume relative
to the previous guidance.
IAMGOLD maintains its 2020 all-in sustaining costs2 per ounce sold guidance range of $1,195 to $1,245.
All-in sustaining costs2 in the third quarter 2020 are expected to be higher than the second quarter due to
the resumption of sustaining capital programs with similar production levels. In addition, costs are expected
to be higher in the third quarter as compared to the second quarter due to additional COVID -19 related
expenditures.
DEPRECIATION EXPENSE
Depreciation expense in 2020 is expected to be in the range of $245 million to $255 million, a decrease of
$5 million from previous guidance.
INCOME TAXES
We expect to pay cash taxes in the range of $30 million to $45 million in 2020. IAMGOLD is subject to
income tax in several jurisdictions, at various tax rates. However, the consolidated effective tax rate for
IAMGOLD is subject to significant fluctuations period over period due to: expenditures and revenues
recognized only for financial accounting purposes or only for income tax purposes; income tax unrelated to
the income or loss before taxes for the current period, such as withholding taxes; and adjustments for
deferred tax purposes that are not directly related to the income or loss before taxes for the current period,
such as foreign exchange rate changes. In addition, adjustments to deferred income tax assets and /or
liabilities may be recorded during the year.