Iamgold Reports Solid Third Quarter 2019 Results, with Pathway to Improved Fourth Quarter; Confirms Cost and Production Guidance
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS SOLID THIRD QUARTER 2019 RESULTS, WITH PATHWAY
TO IMPROVED FOURTH QUARTER; CONFIRMS COST AND PRODUCTION GUIDANCE
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 nine months ended September 30, 2019.
Toronto, Ontario, November 6, 2019 - IAMGOLD Corporation (“IAMGOLD” or the “Company”) reported
its consolidated financial and operating results for the quarter ended September 3 0, 2019.
"We had a solid third quarter, with operating cash flow increasing by 28% over the second quarter 2019
and 354% over the prior year period, and continuing efforts toward cost containment," commented Steve
Letwin, Chief Executive Officer of IAMGOLD. "Essakane is contributing to a strong second half, Westwood
is progressing and Rosebel continues to ramp back up to normal operations. On the exploration front, our
team has delivered a 3.2 million ounce initial inferred resource at Nelligan, recognized by the AEMQ with
the Discovery of the Year Award. Additionally, we announced the new Karita discovery in Guinea on trend
between our Boto and Diakha deposits. Through our self-funding lens, we completed the Essakane CIL/HL
feasibility study, which supports a lower capital investment with heap-leach optionality in the mine life. We
look forward to continuing our momentum with stronger fourth quarter results, and we confirm our
production and cost guidance. We believe that the combination of strong Essakane performance,
Saramacca ramp up, stabilization at Westwood, productivity improvements across all assets, and our
exploration successes build the case for investment in IAMGOLD."
Mr. Letwin continued: "It is with great enthusiasm that I would like to announce the appointment of P .
Gordon Stothart to the position of President & Chief Operating Officer of IAMGOLD. Gord has been with
the Company since late 2007 as Executive Vice President and COO, and we are thrilled to expand his
leadership role. I will continue in my role of Chief Executive Officer of IAMGOLD."
Third Quarter 2019 Highlights
• Attributable gold production of 187,000 ounces at cost of sales 1 per ounce of $986, total cash
costs2 per ounce produced of $902 and all-in sustaining costs2 per ounce sold of $1,118.
• Attributable gold sales of 186,000 ounces at an average realized gold price per ounce of $1,481.
• Revenues of $274.4 million.
• Net loss attributable to equity holders of $3.0 million, or $0.01 per share.
• Adjusted net loss attributable to equity holders2 of $0.0 million or $0.00 per share2.
• Net cash from operating activities of $51.8 million.
• Net cash from operating activities before changes in working capital 2 of $65.4 million.
• Cash, cash equivalents, short-term investments and restricted cash totaled $677.2 million at
September 30, 2019.
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Strategic Developments
Reserves and Resources
• On August 7, 2019, we reported initial drilling results testing the underground mining potential of the
Saramacca Project in Suriname. Drilling highlights included: 21.0 metres grading 6.05 g/t Au including
10.5 metres grading 9.72 g/t Au; 22.7 metres grading 8.54 g/t Au including 9.0 metres grading 15.23
g/t Au; 24.0 metres grading 9.67 g/t Au including 6.0 metres grading 26.41 g/t Au.
• On August 13, 2019, we reported additional drilling results from our delineation drilling program at the
Nelligan Gold Project in Quebec. Drilling highlights included: 123.7 metres grading 1.26 g/t Au; 50.2
metres grading 1.82 g/t Au; 17.3 metres grading 5.50 g/t Au.
Exploration
• On July 23, 2019, we reported drilling results from our 2019 drilling program completed at the Monster
Lake Joint Venture Project in Quebec. Drilling highlights included: 0.8 metres grading 357.0 g/t Au; 0.5
metres grading 133.0 g/t Au.
• On July 30, 2019, we reported drilling results from our 2019 drilling program completed at the Gosselin
Discovery at the Côté Gold Project in Ontario. Drilling highlights included: 342.5 metres grading 0.98
g/t Au; 412.0 metres grading 1.28 g/t Au.
• On July 31, 2019, we reported additional drilling results from our delineation program completed on the
Lac Gamble Zone at the Rouyn Gold Project in Quebec. Drilling highlights included: 9.7 metres
grading 6.64 g/t Au; 23.4 metres grading 6.08 g/t Au including 8.1 metres grading 13.25 g/t Au; 10.05
metres grading 6.59 g/t Au.
Operations and Development
• At Rosebel, we resumed mining activities in the northern pits in late August and began ramping up in
the southern pits in late September, following the temporary suspension of mining activities that
resulted from a security incident reported on August 1, 2019.
• Development work on Saramacca continued with the haul road construction and bush clearing
activities progressing, and deliveries for hauling fleet and technical engineering work continuing during
the quarter.
• The carbon-in-column plant at Rosebel, which became fully operational in the first quarter 2019,
produced an additional 1,300 ounces in the third quarter 2019, for total year -to-date recoveries of
5,600 ounces.
• We continued to advance our application for a mining concession and optimize the design elements of
the Boto Gold Project development, while we maintained stakeholder engagement.
Subsequent to the Quarter
• IAMGOLD appointed P . Gordon Stothart as President & Chief Operating Officer of the Company.
• IAMGOLD was awarded the Discovery of the Year at the Mining Exploration Association of Quebec’s
XPLOR 2019 Awards Gala for the Nelligan Gold Project.
• We reported an initial inferred resource estimate for the Nelligan Gold Project in Quebec of 97.0 million
tonnes grading 1.02 g/t Au for 3.2 million ounces (on a 100% basis).
• First ore was delivered to the Rosebel mill from the Saramacca deposit.
• The Carbon-In-Leach ("CIL") and Heap Leach feasibility study at Essakane was completed: the
feasibility study supported an investment in a mill optimization project to increase CIL plant capacity
and postponement of heap leach operations to the end of life of mine.
• We announced drilling results from our 2019 drilling program completed at the Karita Project in
Guinea, confirming a new grassroots exploration discovery along the Senegal -Mali Shear Zone, on
trend between our Boto and Diakha deposits. Drilling highlights included: 29.0 metres grading 2.96 g/t
Au; 21.0 metres grading 9.01 g/t Au; 16.0 metres grading 3.17 g/t Au.
• IAMGOLD participated in INV Metals' private placement of common shares and acquired an additional
13.9 million common shares of INV Metals at a price of C$0.40 per share for an aggregate amount of
$4.2 million (C$5.6 million). This acquisition allowed IAMGOLD to maintain a 35.6% ownership in INV
Metals, a Canadian mineral resource company focused on the development and exploration of the
Loma Larga Project in Ecuador.
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Upcoming Growth Catalysts
• At Rosebel, a scoping study is underway to evaluate the underground mining potential of Saramacca,
which could result in higher grades and significantly lower waste volumes, thereby reducing costs.
• We are continuing to advance exploration activities along the Saramacca-Brokolonko trend in
Suriname to confirm the presence of additional zones of mineralization and evaluate the resource
potential.
• We are studying various design approaches to Westwood with a preliminary life of mine plan update
expected in the fourth quarter 2019, followed by a plan, in accordance with NI 43 -101, in the first half
of 2020.
SUMMARY OF FINANCIAL AND OPERATING RESULTS
Three months
ended September
30,
Nine months ended
September 30,
Financial Results ($ millions, except where noted) 2019 2018 2019 2018
Revenues $ 274.4 $ 244.8 $ 771.9 $ 836.7
Cost of sales $ 251.6 $ 237.3 $ 743.4 $ 723.8
Gross profit $ 22.8 $ 7.5 $ 28.5 $ 112.9
Net earnings (loss) attributable to equity holders of IAMGOLD $ (3.0 ) $ (9.5 ) $ (58.7 ) $ 6.6
Net earnings (loss) attributable to equity holders ($/share) $ (0.01 ) $ (0.02 ) $ (0.13 ) $ 0.01
Adjusted net earnings (loss) attributable to equity holders of IAMGOLD1 $ — $ (6.9 ) $ (17.7 ) $ 45.9
Adjusted net earnings (loss) attributable to equity holders ($/share)1 $ — $ (0.01 ) $ (0.04 ) $ 0.10
Net cash from operating activities $ 51.8 $ 11.4 $ 100.5 $ 168.0
Net cash from operating activities before changes in working capital1 $ 65.4 $ 39.7 $ 141.3 $ 232.7
Key Operating Statistics
Gold sales – attributable (000s oz) 186 202 563 652
Gold production – attributable (000s oz) 187 208 570 651
Average realized gold price1 ($/oz) $ 1,481 $ 1,207 $ 1,367 $ 1,282
Cost of sales2 ($/oz) $ 986 $ 858 $ 963 $ 805
Total cash costs1 ($/oz) $ 902 $ 830 $ 894 $ 791
All-in sustaining costs1 ($/oz) $ 1,118 $ 1,086 $ 1,112 $ 1,035
Gold margin1 ($/oz) $ 579 $ 377 $ 473 $ 491
1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A.
2 Cost of sales, excluding depreciation, as disclosed in note 29 of the Company's consolidated interim financial statements is on an attributable ounce
sold basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel) and does not include Joint Ventures which are accounted
for on an equity basis.
THIRD QUARTER 2019 SUMMARY
Financial Performance
• Revenues for the third quarter 2019 were $274.4 million, up $29.6 million or 12% from the same prior
year period. The increase was primarily due to a higher realized gold price ($51.0 million), partially
offset by lower sales volume at Westwood ($9.5 million), Rosebel ($8.7 million) and Essakane ($2.4
million).
• Cost of sales for the third quarter 2019 was $251.6 million, up $14.3 million or 6% from the same prior
year period. The increase was primarily due to higher operating costs and depreciation expense.
Operating costs were higher primarily due to lower capitalized stripping and increased fuel
consumption at Essakane, combined with the processing of stockpile material at Rosebel as a result of
the temporary suspension of mining activities due to the security incident, partially offset by labour
reductions at Westwood.
• Depreciation expense for the third quarter 2019 was $69.9 million, up $5.3 million or 8% from the
same prior year period. The increase was primarily due to higher depreciation of capitalized stripping
at Essakane. We expect 2019 depreciation expense to be approximately $275 million.
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• Income tax expense for the third quarter 2019 was $8.6 million, up $8.1 million from the same prior
year period. Income tax expense for the third quarter 2019 comprised current income tax expense of
$15.8 million (September 30, 2018 - $24.7 million) and deferred income tax recovery of $7.2 million
(September 30, 2018 - recovery of $24.2 million). The increase in income tax expense was primarily
due to changes to deferred income tax assets and liabilities, differences in the impact of fluctuations in
foreign exchange, and differences in the level of taxable income in IAMGOLD’s operating jurisdictions
from one period to the next.
• Net loss attributable to equity holders for the third quarter 2019 was $3.0 million, or $ 0.01 per share,
compared to net loss of $9.5 million, or $0.02 per share in the same prior year period. The decrease in
net loss was primarily due to higher gross profit ($15.3 million) and interest income, derivatives and
other investment gains (losses) ($11.0 million), partially offset by higher income tax expense ($8.1
million), higher other expenses ($8.1 million) and lower foreign exchange gain ($5.7 million).
• Adjusted net loss attributable to equity holders2 was $0.0 million, or $0.00 per share2, compared to
adjusted net loss2 of $6.9 million, or $0.01 per share2 in the same prior year period.
• Net cash from operating activities for the third quarter 2019 was $51.8 million, up $40.4 million from
the same prior year period. The increase was primarily due to higher earnings after non-cash
adjustments ($18.2 million), lower movements in non-cash working capital items and non-current ore
stockpiles ($15.1 million) and lower income taxes paid ($6.9 million). Movements in non -cash working
capital items and non-current ore stockpiles was lower primarily due to lower inventories and non-
current ore stockpiles, partially offset by a temporary reduction in accounts payable and accrued
liabilities due to the temporary suspension of mining activities as a result of the security incident at
Rosebel. Accounts payable and accrued liabilities are expected to increase as mining activities ramp
up.
• Net cash from operating activities before changes in working capital 2 for the third quarter 2019 was
$65.4 million, up $25.7 million from the same prior year period.
• Moody's Investors Service downgraded the Company's long-term corporate credit rating to B1 from
Ba3 with a stable outlook.
Financial Position
• We ended the quarter in a strong financial position, with cash, cash equivalents, short-term
investments primarily in money market funds and restricted cash were $677.2 million at September 30,
2019, down $80.8 million from December 31, 2018. Cash and cash equivalents were $634.0 million,
short-term investments, primarily in money market funds, were $16.1 million and restricted cash was
$27.1 million. $499.6 million was available under the credit facility. The decrease was due to spending
on property, plant and equipment ($187.9 million), interest paid ($15.4 million) and payment of lease
obligations ($4.4 million), partially offset by cash generated from operating activities ($100.5 million)
and proceeds from an equipment loan ($23.3 million).
Production and Costs
• Attributable gold production, inclusive of joint venture operations, was 187,000 ounces for the third
quarter 2019, down 21,000 ounces from the same prior year period. The decrease was primarily due
lower head grades and recoveries at Rosebel, as the mill feed comprised low grade stockpiles due to
the temporary suspension of mining activities (12,000 ounces), lower grades at Westwood (7,000
ounces), lower throughput and recoveries at Sadiola (1,000 ounces) and the end of operations at
Yatela (1,000 ounces).
• Attributable gold sales, inclusive of joint venture operations, were 186,000 ounces for the third quarter
2019, down 16,000 ounces from the same prior year period. The decrease was due to lower sales at
Westwood (8,000 ounces), Rosebel (7,000 ounces) and Essakane (1,000 ounces).
• Cost of sales1 per ounce for the third quarter 2019 was $986, up 15% from the same prior year period
primarily due to lower sales volumes in addition to the factors noted above.
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• Total cash costs2 per ounce produced for the third quarter 2019 were $902, up 9% from the same prior
year period primarily due to lower production volumes at Rosebel and Westwood in addition to the
factors noted above.
• All-in sustaining costs2 per ounce sold for the third quarter 2019 were $1,118, up 3% from the same
prior year period. The increase was primarily due to higher cost of sales per ounce, partially offset by
lower sustaining capital expenditures.
• Total cash costs2 and all-in sustaining costs2 for the third quarter 2019 included a reduction of $49 per
ounce for the normalization of costs at Rosebel (2018 - $nil) and realized derivative gains from
hedging programs of $nil per ounce produced and sold (2018 - $13 and $13).
Commitment to Zero Harm Continues
• The DART rate3, representing the frequency of all types of serious injuries across all sites and
functional areas for the third quarter 2019 was 0.56, below IAMGOLD's target of 0.63. IAMGOLD
continues the implementation of several initiatives, including a behaviour-based safety program, to
ensure a safer work environment.
• Moody’s Investor Services released its first assessment of Corporate Governance for the Metals and
Mining sector, wherein IAMGOLD achieved the highest level (GA-1) based on adjusted scoring of 2.7,
the second highest scoring received of the companies reviewed. The Corporate Governance
framework is a subset of Moody’s initiative focusing on Environmental, Social and Corporate
governance reviews. The Corporate Governance framework comprises 168 questions reviewing
Ownership, Compensation, Board Oversight, Financial Oversight and Compliance Reporting.
ATTRIBUTABLE GOLD PRODUCTION AND COSTS
Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash
Costs2
($ per ounce
produced)
All-in Sustaining
Costs2
($ per ounce
sold)
Three months ended September 30, 2019 2018 2019 2018 2019 2018 2019 2018
Owner-operator
Essakane (90%) 96 96 $ 925 $ 809 $ 866 $ 762 $ 1,021 $ 993
Rosebel (95%)3,4 55 67 1,122 921 968 893 1,198 1,113
Westwood (100%)5,6 23 30 915 891 889 856 1,033 1,047
Owner-operator7 174 193 $ 986 $ 858 $ 901 $ 822 $ 1,137 $ 1,099
Joint ventures 13 15 915 933 891 922
Total operations 187 208 $ 902 $ 830 $ 1,118 $ 1,086
Cost of sales1 ($/oz) $ 986 $ 858
Cash costs, excluding royalties $ 832 $ 780
Royalties 70 50
Total cash costs2 $ 902 $ 830
All-in sustaining costs2 $ 1,118 $ 1,086
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Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash
Costs2
($ per ounce
produced)
All-in Sustaining
Costs2
($ per ounce
sold)
Nine months ended September 30, 2019 2018 2019 2018 2019 2018 2019 2018
Owner-operator
Essakane (90%) 274 302 $ 926 $ 761 $ 878 $ 716 $ 1,035 $ 968
Rosebel (95%)3,4 195 202 976 858 925 855 1,121 1,017
Westwood (100%)5,6 62 101 1,079 834 866 823 1,062 1,003
Owner-operator7 531 605 $ 963 $ 805 $ 894 $ 780 $ 1,129 $ 1,042
Joint Ventures 39 46 893 933 890 939
Total operations 570 651 $ 894 $ 791 $ 1,112 $ 1,035
Cost of sales1 ($/oz) $ 963 $ 805
Cash costs, excluding royalties $ 830 $ 736
Royalties 64 55
Total cash costs2 $ 894 $ 791
All-in sustaining costs2 $ 1,112 $ 1,035
1 Cost of sales, excluding depreciation, as disclosed in note 29 of the Company's consolidated interim financial statements is on an attributable ounce sold
basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel) and does not include Joint Ventures which are accounted for on an
equity basis.
2 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A. Consists of Essakane, Rosebel, Westwood and the
Joint Ventures on an attributable basis.
3 Cost of sales per ounce sold for Rosebel does not include the impact of normalization of costs for the three and nine months ended September 30, 2019 of
$49 and $16 per ounce (three and nine months ended September 30, 2018 - $nil and $nil), respectively.
4 Total cash costs per ounce produced and all-in sustaining costs per ounce sold for Rosebel include the impact of normalization of costs for the three and
nine months ended September 30, 2019 of $49 and $16 per ounce (three and nine months ended September 3 0, 2018 - $nil and $nil), respectively.
5 Cost of sales per ounce sold for Westwood does not include the impact of normalization of costs for the three and nine months ended September 30, 2019
of $nil and $20 per ounce (three and nine months ended September 30, 2018 - $nil and $nil), respectively.
6 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
nine months ended September 30, 2019 of $nil and $20 per ou nce (three and nine months ended September 30, 2018 - $nil and $nil), respectively.
7 Owner-operator all-in sustaining costs include corporate general and administrative costs. Refer to all-in sustaining costs reconciliation on page 29 of the
MD&A.
OPERATIONS ANALYSIS BY MINE SITE
Essakane Mine - Burkina Faso (IAMGOLD interest - 90%)
Attributable gold production for the third quarter 2019 was comparable to the same prior year period
primarily due to higher throughput offset by lower head grades. Mill throughput for the third quarter 2019
was favourably impacted by a lower proportion of hard rock processed relative to the prior year period.
Head grade for the third quarter was lower as a result of mine sequencing relative to prior year period.
Material mined for the third quarter 2019 was higher compared to the same prior year period primarily as a
result of continued improvement to equipment availability and an increase in the fleet size. Additional
equipment commissioned in the second and third quarter of 2019 will allow for increased hauling capacity
and reduced reliance on mining contractors. Ore mined for the third quarter 2019 was higher compared to
the same prior year period primarily due to increased mining of lower grade ore to support the constructi on
of a proposed heap leach facility at the end of carbon-in-leach (CIL) operations, in addition to the items
noted above.
The CIL and Heap Leach feasibility study at Essakane was completed in the fourth quarter 2019 and
concluded that increasing CIL plant capacity and postponing the heap leach operation to the end of life of
mine is more economical than operating both a heap leach and the CIL in parallel. Optimization work has
focused on increasing CIL capacity to 11.7 million tonnes per annum (at 100% hard rock) compared to the
original nameplate capacity of 10.8 million tonnes per annum (at 100% hard rock) with a minimal capital
investment of $9.0 million in a mill optimization project. The optimization of the CIL circuit will result in a
reduction of the Heap Leach material throughput from 10.0 million tonnes per annum, as disclosed in the
June 5th 2018 Pre-Feasibility Study, to 8.5 million tonnes per annum without a significant change to the
production profile due to improved recovery from 55.0% to 67.0%.
Cost of sales per ounce sold and total cash costs per ounce produced for the third quarter 2019 were
higher by 14% compared to the same prior year period primarily due to lower ca pitalized stripping and
sales volume. Operating costs were higher as a result of increased mining activity and higher fuel
consumption due to longer hauling distances from the Falagountou pit and reflecting the increased use of
mining contractors. These cost pressures were partially offset by a weaker euro relative to the U.S. dollar.
7
All-in sustaining costs per ounce sold for the third quarter 2019 were higher by 3% compared to the same
prior year period primarily due to higher cost of sales per ounce, partially offset by lower sustaining capital
expenditures. Included in total cash costs and all-in sustaining costs for the third quarter 2019 was the
impact of realized derivative losses from hedging programs of $2 per ounce produced and sold,
respectively (2018 - $19 and $19).
Sustaining capital expenditures for the third quarter 2019 of $8.6 million included capital spares of $2.4
million, mobile equipment of $2.2 million, resource development of $0.6 million, power generator overhaul
of $0.5 million, and various other sustaining capital expenditures of $2.9 million. Non -sustaining capital
expenditures of $11.5 million included capitalized stripping of $5.9 million, tailings liners and dams of $4.8
million, mill optimization of $0.5 million and Carbon-In-Leach and Heap Leach feasibility study of $0.3
million.
Outlook
We maintain Essakane's 2019 attributable gold production guidance of 380,000 to 390,000 ounces.
Capital expenditures are expected to be approximately $110 million, comprising $40 million of sustaining
and $70 million non-sustaining capital.
Rosebel Mine - Suriname (IAMGOLD interest - 95%)
Attributable gold production for the third quarter 2019 was 18% lower compared to the same prior year
period primarily due to the impact of the security incident which resulted in the temporary suspension of
mining activities. As a result of this incident, the mill feed comprised low grade stockpiles which resulted in
lower head grades than the prior year period. Since the incident, mining restarted in the northern pits in
late August and began ramping up in the southern pits in late September. During this downtime, major
preventative maintenance was undertaken on the mobile equipment, which will reduce downtime in future
periods. In addition, the majority of the hauling fleet has been modified to increase the average payload by
5%. The carbon-in-column plant continued to perform favorably with an additional 1,300 ounces recovered
from tailings in the third quarter 2019, bringing year-to-date tailings recoveries to 5,600 ounces. The plant
has now exceeded the current year targeted recovery of 5,000 ounces at a marginal operating cost of
approximately $35 per ounce to cover additional power and elution costs.
Development work on Saramacca continued in the third quarter with the construction of the haul road and
bush clearing activities. In the fourth quarter 2019, mining activities along with nominal production are
expected to commence at Saramacca. Deliveries for the hauling fleet continued, with an additional four
haul trucks and three excavators commissioned in the third quarter 2019. Technical and engineering work
also continued during the quarter, including surface water management engineering, grade control drilling,
and site infrastructure construction.
In accordance with International Financial Reporting Standards, Rosebel reduced the cash cos ts and
depreciation attributed to inventory for the third quarter 2019 by $9.6 million and $3.6 million, respectively
(2018 - $nil and $nil) to normalize for the amount of fixed overhead on a per unit basis as a consequence
of abnormally low material mined resulting from the security incident. Rosebel reduced total cash costs
and all-in sustaining costs for the third quarter 2019 by $167 per ounce produced and $170 per ounce sold
(2018 - $nil and $nil).
Cost of sales per ounce sold were higher by 22% compared to the same prior year period primarily due to
lower sales volumes as a result of the temporary suspension of mining activities due to the security
incident. Total cash costs per ounce produced for the third quarter 2019 were higher by 8% compared to
the same prior year period, primarily due to lower production volumes as a result of the security incident.
All-in sustaining costs per ounce sold for the third quarter 2019 were higher by 8% compared to the same
prior year period primarily due to higher cost of sales per ounce, partially offset by the impact of cost
normalization. Included in total cash costs and all-in sustaining costs for the third quarter 2019 was the
impact of realized derivative gains from hedging programs of $nil per ounce produced and sold (2018 - $13
and $15).
Sustaining capital expenditures for the third quarter 2019 of $12.4 million included capital spares of $7.9
million, mill equipment of $0.9 million, mobile equipment of $0.3 million, tailings dam of $0.2 million, and
various other sustaining capital expenditures of $3.1 million. Non-sustaining capital expenditures for the
third quarter 2019 of $8.1 million related to the Saramacca Project.
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Outlook
We maintain Rosebel's 2019 attributable gold production guidance range of 240,000 to 260,000 ounces.
Capital expenditures are expected to be $90 million, comprising $40 million of sustaining and $50 million of
non-sustaining capital expenditures.
Westwood Mine - Canada (IAMGOLD interest - 100%)
Gold production for the third quarter 2019 was 23% lower compared to the same prior year period primarily
due to lower head grades. Mine production activities continued to be limited on the levels affected by
seismic activity in localized areas in the fourth quarter 2018. Mining continued in areas unaffected by
seismicity, which mainly contained lower grade stopes. To manage the risk of seismicity, IAMGOLD is
continuing to study various design approaches at Westwood with a preliminary life of mine ("LOM") plan
update expected in the fourth quarter 2019, followed by a NI 43-101 compliant plan in the first half of 2020.
Underground development continued to progress in the third quarter 2019 to open up access to new
mining areas with lateral development of approximately 1,600 metres, averaging 18 metres per day. To
support continued underground development while respecting safety protocols in place for mining in areas
where seismicity is present, three units of bolting equipment designed to manage seismic exposure were
commissioned during the first quarter 2019. Training and optimization of these units continue and is
expected to be completed by the first half of 2020.
Cost of sales per ounce sold and total cash costs per ounce produced for the third quarter 2019 were
higher by 3% and 4%, respectively, compared to the same prior year period primarily due to lower sales
and production volumes.
All-in sustaining costs per ounce sold for the third quarter 2019 were lower by 1% compared to the same
prior year period primarily due to lower sustaining capital expenditures. Included in total cash costs and all-
in sustaining costs for the third quarter 2019 was the impact of realized derivative gains from currency
hedging programs of $2 per ounce produced and $3 per ounce sold, respectively (2018 - $nil and $nil).
Sustaining capital expenditures for the third quarter 2019 of $2.9 million included deferred development of
$2.1 million, underground equipment of $0.6 million, and underground construction of $0.2 million. Non -
sustaining capital expenditures for the third quarter 2019 of $2.4 million included deferred development of
$1.7 million, development drilling of $0.3 million and underground construction of $0.4 million.
Outlook
We maintain Westwood’s 2019 gold production guidance range of 95,000 to 105,000 ounces. This reflects
the steady progression of mining and development activities towards higher-grade zones, while respecting
safety protocols for areas where seismicity is present. Capital expenditures are expected to be $35 million,
comprising $15 million of sustaining and $20 million of non-sustaining capital expenditures.
Sadiola Mine - Mali (IAMGOLD interest - 41%)
Attributable gold production for the third quarter 2019 was 7% lower compared to the same prior year
period primarily due to lower throughput and recovery, partially offset by higher grades. Total cash costs
per ounce produced and all-in sustaining costs per ounce sold for the third quarter 2019 and the same
prior year period primarily include the cost of processing stockpiles.
An agreement with the Government of Mali, on terms for investment in the Sadiola Sulphide Project, must
be reached in order to prevent the operation from entering a phase of suspended exploitation (care and
maintenance), once processing of the ore stockpiles is complete. Processing of the ore stockpiles is
expected to be completed in the fourth quarter 2019. While this agreement has not yet been reached,
IAMGOLD and AngloGold Ashanti, who collectively own an 82% interest in Sadiola, have initiated a
process to identify third parties that may be interested in acquiring their collective interest in Sadiola. The
process is ongoing and there is no certainty of its outcome.
Yatela Mine - Mali (IAMGOLD interest - 40%)
On February 14, 2019, Sadiola Exploration Limited (“SADEX”), a subsidiary jointly held by IAMGOLD and
AngloGold Ashanti Limited, entered into a share purchase agreement with the Government of Mali,
whereby SADEX agreed to sell to the Government of Mali its 80% participation in Société d’Exploitation
des Mines d’Or de Yatela (“Yatela”), for a consideration of $1. The transaction remains subject to the
fulfillment of a number of conditions precedent, among which the adoption of two laws, confirming the
change of status of Yatela to a State Entity, and also the creation of a dedicated state agency, notably in
charge of mine rehabilitation and closure. As part of the transaction, and upon its completion, SADEX will
make a one-time payment of approximately $18.5 million to the said state agency, in an amount