IAMGOLD REPORTS THIRD QUARTER 2020 RESULTS; GENERATING $105 MILLION IN OPERATING CASH FLOW, REFLECTING A 45% INCREASE OVER THE SECOND QUARTER Delivers Mine Site Free Cash Flow of $80 million
TSX: IMG NYSE: IAG
NEWS RELEASE
IAMGOLD REPORTS THIRD QUARTER 2020 RESULTS;
GENERATING $105 MILLION IN OPERATING CASH FLOW, REFLECTING A 45%
INCREASE OVER THE SECOND QUARTER
Delivers Mine Site Free Cash Flow of $80 million
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, 2020.
Toronto, Ontario, November 4, 2020 - IAMGOLD Corporation (“IAMGOLD” or the “Company”) reported
its consolidated financial and operating results for the quarter ended September 30, 2020.
“IAMGOLD performed well in challenging circumstances, generating $105.1 million in operating cash flows
and producing 159,000 ounces of gold, resulting in $80.0 million in free cash flows from our operating mine
sites.” commented Gordon Stothart, President and CEO of IAMGOLD.
“In the quarter, we successfully completed our new bond issuance, lowering our interest costs, extending
the maturity to 2028 and enhancing our financial flexibility with a cash balance of approximately $900 million.
This cash position, along with access to our largely undrawn $500 million credit facility, brings our total
liquidity to over $1.4 billion, enabling us to cover our portion of Côté's capital expenditures. Project
engineering at Côté is now 66% complete, as early works continue and permitting advances to enable
construction activities. Looking to the fourth quarter, production will be underpinned by Essakane and by
Saramacca’s contribution to Rosebel. As reported Monday, we had a seismic event at Westwood, with all
employees safely brought above ground. I would like to recognize our Westwood team for their safe and
successful response to this event. The Westwood mill is expected to restart operations in the next few days
while the underground mine operations remain suspended.”
"Periodically, we review opportunities to return capital to our shareholders, including a dividend policy and
share buyback program, in the context of market conditions, share price, our financial position, capital
requirements, forecast performance and realized gold prices. IAMGOLD is committed to delivering superior
shareholder returns, with the next thirty months centered on developing our top-tier Côté Gold Project. This
project requires significant capital investment funded by our current strong cash position and future cash
flows from operations. As Côté Gold becomes operational, dependent on the gold price environment, we
expect to generate significant free cash flow. This will allow IAMGOLD to consider its dividend policy through
instituting a sustainable dividend or a share repurchase program that would recognize the interests of our
shareholders in the Company’s anticipated strong performance, while balancing capital allocation between
future growth and distributions to shareholders."
THIRD QUARTER 2020 HIGHLIGHTS
• Attributable gold production from continuing operations of 159,000 ounces at cost of sales 1 per ounce
of $1,098, total cash costs2 per ounce produced of $1,006 and all-in sustaining costs2 per ounce sold of
$1,206.
• Attributable gold sales from continuing operations of 162,000 ounces.
• Revenues of $335.1 million, reflecting an average realized gold price of $1,908 per ounce sold.
• Net loss from continuing operations attributable to equity holders was $11.6 million, or $0.02 per share.
• Adjusted net earnings from continuing operations attributable to equity holders 2 was $52.1 million, or
$0.11 per share2.
• Net cash from operating activities was $105.1 million, a 45% increase over the second quarter.
• Net cash from operating activities before changes in working capital2 was $108.4 million, a 37% increase
over the second quarter.
• Mine-site free cash flow2 was $80.0 million, a 51% increase over the second quarter.
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• IAMGOLD remains in a solid liquidity position with cash, cash equivalents, short -term investments and
restricted cash increasing by $61.7 million over the second quarter to $928.0 million, as at September
30, 2020.
OPERATING PERFORMANCE
• Attributable gold production from continuing operations was 159,000 ounces, down 15,000 ounces from
the same prior year period mainly due to lower production at Rosebel as a result of the work stoppage
during July 2020, and up 4,000 ounces from the second quarter 2020.
• Attributable gold sales from continuing operations we re 162,000 ounces, down 9,000 ounces from the
same prior year period, and up 9,000 ounces from the second quarter 2020.
• Cost of sales1 from continuing operations was $1,098 per ounce, up 11% 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 and realized losses on input cost hedges, and up 7% from the second quarter 2020.
• All-in sustaining costs 2 from continuing operations were $1,206 per ounce, up 6% from the same prior
year period, and up 1% from the second quarter 2020.
• Total cash costs2 from continuing operations were $1,006 per ounce, up 12% from the same prior year
period, and up 8% from the second quart er 2020 primarily due to lower production volume and higher
royalties as a result of the increase in the gold price.
• Gold margin2 from continuing operations was $902 per ounce, up $320 per ounce from the same prior
year period, and up $113 per ounce from the second quarter 2020.
FINANCIAL RESULTS
• Revenues were $335.1 million, up $60.7 million from the same prior year period, and up $50.5 million
from the second quarter 2020, reflecting an average realized gold price of $1,908 per ounce.
• Gross profit was $78.1 million, up $55.3 million from the same prior year period, and up $21.8 million
from the second quarter 2020.
• Net loss from continuing operations attributable to equity holders was $11.6 million, or $0.02 per share,
compared to net loss from continuing operations of $10.2 million, or $0.02 per share in the same prior
year period, and compared to net income from continuing operations of $25.5 million, or $0.05 per share
in the second quarter 2020.
• Adjusted net earnings from continuing operations attributable to equity holders 2 was $52.1 million, or
$0.11 per share 2, compared to adjusted net loss from continuing operations 2 of $7.2 million, or $0.02
per share 2 in the same prior year period, and compared to adjusted net earnings from continuing
operations2 of $20.1 million, or $0.04 per share2 in the second quarter 2020.
• Net cash from operating activities was $105.1 million, up $53.3 million from the same prior year period,
and up $32.7 million from the second quarter 2020.
• Net cash from operating activities before changes in working capital1 was $108.4 million, up $43.0 million
from the same prior year period, and up $29.4 million from the second quarter 2020.
• Mine-site free cash flow 2 was $80.0 million, up $56.8 million from the same prior year period, and up
$27.0 million from the second quarter 2020.
• Cash, cash equivalents, short -term investments and restricted cash totaled $928.0 million at
September 30, 2020. Cash and cash equivalents were $890.6 million, short-term investments were $6.6
million and restricted cash was $30.8 million. $498.3 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
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 IAMGOLD
operates. IAMGOLD continues to work closely with local and national governments and communities on
limiting the impact of the COVID-19 crisis on its 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 and COVID -19
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prevention protocols. The protocols address risk controls, including: restricting site access to employees,
contractors and incoming supplies; screening processes (introduction of Antigen test kits and the use of
thermal cameras to check temperatures before entering the site); physical distancing; the use of
personal protective equipment; arranging additional transportation buses and increasing on-site medical
personnel. Along with these measures, 200 beds were added at E ssakane and a project to add 300
beds at Rosebel is in development and planned to be completed in the first quarter 2021.
• 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 conduct ed 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. In conjunction with the Surinamese Health
Authorities, Rosebel implemented all required preventive measures, including the disinfecting of
sleeping quarters and work areas. The beginning of the qua rter showed a steeper curve of new cases
as the measures were being implemented. These measures were proven to be effective with a flat curve
of new cases through the remainder of the third quarter. Strict protocols ensured that personnel
exhibiting flu like symptoms were immediately isolated and tested. Positive cases were managed by the
Health Authorities, and isolated in governmental quarantine locations in Paramaribo. By the end of the
third quarter 2020, 98% of affected personnel had recovered.
• In line with IAMGOLD's COVID -19 safety protocols, additional steps have been taken to protect the
health and safety of employees and contractors at the Côté Gold Project which include screening of all
personnel and visitors entering the site and the mandatory use of masks in vehicles, common areas, or
where social distancing is not possible.
STRATEGIC DEVELOPMENTS
IAMGOLD’s transformational strategy centres on delivering the lower cost Côté Gold Project, de-risking the
Boto Gold Project, optimizing our current ope rations and continuing to invest in our pipeline of brownfield
and greenfield exploration. Together with our financial strategy of maintaining a strong balance sheet,
opportunistically securing favourable hedges on cost inputs and protective hedges on a po rtion of gold
production during Côté construction, we believe IAMGOLD is positioned to deliver on its goal of superior
returns to shareholders.
Financial
• On September 8, 2020, IAMGOLD issued a notice to redeem its 7% Senior Notes due 2025 for a total
amount of $421.3 million and funded the redemption on September 29, 2020 and the indenture
governing the 2025 Notes was satisfied and discharged on this date.
• On September 23, 2020, IAMGOLD announced that it had completed its private offering of $450 million
aggregate principal amount of 5.75% Senior Notes ("Notes") due 2028. IAMGOLD used the net
proceeds from the offering of the Notes to fund the redemption of all of its outstanding 7% Senior Notes
due 2025 and for general corporate purposes.
• The redemption of the 7% Senior Notes and issuance of the 5.75% Senior Notes will result in lower
interest expense over an extended term. The redemption also resulted in a cash loss of $21.3 million
that is expected to be offset by lower interest expense over the remaining term of the 7% Notes.
• During the third quarter 2020, IAMGOLD implemented a gold hedging strategy to mitigate gold price
exposure and to further de -risk the balance sheet during the Côté Gold Project construction period.
IAMGOLD intends, under appropriate conditions, to hedge 15% to 20% of total production between 2021
and mid-2023 through a combination of options and/or collars (see news release dated July 21, 2020).
During the quarter, IAMGOLD executed gold bullion collar option contracts with strike pric es of $1,800
to $3,000 per ounce on 114,000 ounces for 2021 and 18,000 ounces for 2022, for which premiums of
$5.3 million were paid.
• Subsequent to the end of the third quarter 2020, IAMGOLD added to its gold hedge position for 2021
with a zero cost collar with strike prices of $1,600 to $2,505 per ounce on 28,000 ounces as well as a
collar with strike prices of $1,700 to $2,800 per ounce on 50,040 ounces, for which a premium of $1.3
million was paid.
• During the third quarter 2020, IAMGOLD executed zero cos t collar option contracts based on the West
Texas Intermediate ("WTI") benchmark, in the range of $33.80 to $50.00 per barrel, from January 2021
to July 2023 to hedge attributable fuel consumption related to the Côté Gold Project. These contracts
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represent approximately 90% of anticipated attributable fuel consumption during construction.
IAMGOLD also hedged C$65 million of the Project’s Canadian dollar exposure at an average forward
contract rate of $1.3604 from April 2023 to July 2023. These contracts rep resent approximately 6% of
the attributable Canadian dollar capital expenditures on the Project.
• Following the new bond issuance, both Moody's and S&P re -affirmed their ratings of B1 and B+,
respectively for IAMGOLD.
• In a recent ESG assessment, Moody’s affiliate Vigeo Eiris ranked IAMGOLD 4th out of 45 sector
peers,with notable strengths in community involvement, environmental strategy, health & safety and
governance.
• IAMGOLD lowered its 2020 total attributable gold pr oduction guidance to the range of 630,000 to
680,000 ounces due to the suspension of operations at Westwood resulting from a seismic event
subsequent to the quarter.
• IAMGOLD revised upwards its 2020 cost of sales 1 per ounce sold and total cash costs 2 per o unce
produced guidance to the range of $1,045 to $1,075 and $980 to $1,010, respectively, to reflect higher
costs incurred from processing lower grade stockpiles to compensate for lower levels of production as
a result of the COVID-19 crisis.
• IAMGOLD revised upwards its 2020 all -in sustaining costs 2 per ounce sold guidance to the range of
$1,240 to $1,270 to reflect higher operating costs incurred to date, lower production at Westwood and
higher royalties.
• IAMGOLD maintained its 2020 depreciation expense guidance range of $245 million to $255 million.
• IAMGOLD maintained its cash taxes guidance range of $30 million to $45 million.
• IAMGOLD reduced its 2020 capital expenditures guidance by $25 million to $315 million (±5%) primarily
due to the timing of expend itures on the Côté Gold and Boto Gold Projects and lower expected capital
expenditures at Westwood.
• IAMGOLD has withdrawn its 2021 production guidance and expects to provide its regular annual
guidance in early 2021.
Exploration
• On August 11, 2020, IAMGOLD reported additional assay results from its 2020 diamond drilling program
at the Nelligan Gold Project in Canada. Drilling highlights included: 39.1 metres grading 2.14 g/t Au, 34.5
metres grading 1.85 g/t Au, and 5.1 metres grading 2.81 g/t Au.
• On August 13, 2020, IAMGOLD reported assay results from its 2020 drilling program at the Monster
Lake Project in Canada. Drilling highlights included: 3.8 metres grading 16.9 g/t Au, 2.82 metres grading
5.63 g/t Au, and 12.3 metres grading 2.09 g/t Au.
• On August 20, 2020, IAMGOLD reported additional assay results from its 2020 diamond drilling program
at the Rouyn Gold Project in Canada. Drilling highlights included: 4.1 metres grading 10.4 g/t Au, 8.9
metres grading 4.3 g/t Au, and 7.4 metres grading 8.3 g/t Au.
Development and Operations
• 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
third quarter 2020, Early Works activities were ongoing, including for the camp pad, fish salvage, site
access roads and aggregate production. The permit to take water was received on August 21, 2020 as
well as an Environmental Compliance Approval for dewatering the tailings management facility (“TMF”)
ponds in time to begin the TMF fish salvage activities. Project engineering is approximately 66%
complete.
• On August 5, 2020, IAMGOLD filed a National Instrument ("NI") 43 -101 Technical Report for its
Westwood mine, confirming t he 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 assumptio ns. In
this context, total attributable reserves decreased by 48% to 0.618 million ounces (2.698 million tonnes
grading 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.
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• The Rosebel mine in Suriname resumed operations on July 24, 2020 after a work stoppage initiated by
the Rosebel Union on June 12, 2020 (see news releases dated June 16, 2020 and July 24, 2020).
Organizational Changes
• On August 5, 2020, IAMG OLD 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. IAMGOLD's succession program is in progress.
Subsequent to the Quarter
• On November 2, 2020, IAMGOLD reported that a seismic event occurred at Westwood on October 30,
2020. All employees were brought safely above ground. The appropriate government authorities were
notified and the cause of the seismic event is being investigated. IAMGOLD is expected to restart milling
operations in the next few days to process stockpile and Grand Duc open pit ore. The Westwood
underground mine operations are suspended pending the results of the investigation and while a
business recovery plan is being assessed.
UPCOMING GROWTH CATALYSTS
• Over the fourth quarter 2020, IAMGOLD expects to obtain further k ey permits for construction work at
the Côté Gold Project and advance Early Works in preparation for the Major Earthworks activities, which
commence in the second quarter 2021.
• At Westwood, work is being done to evaluate the Fayolle deposit, which, pending permitting, is targeted
to provide incremental feed commencing in the fourth quarter 2022 to the Westwood mill as part of its
"hub-and-spoke" model. This model exploits the significant mill capacity available at Westwood to bring
forward regional explorat ion value from assets like Fayolle and the optioned Rouyn Gold Project and
enhance the overall value of Westwood with incremental production growth from such supplementary
feed.
• 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 its 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
September 30,
Nine months ended
September 30,
Financial Results ($ millions, except where noted) 2020 2019 2020 2019
Continuing Operations
Revenues $ 335.1 $ 274.4 $ 894.2 $ 771.9
Cost of sales $ 257.0 $ 251.6 $ 727.9 $ 743.4
Gross profit $ 78.1 $ 22.8 $ 166.3 $ 28.5
Net loss from continuing operations attributable to equity holders of
IAMGOLD $ (11.6) $ (10.2) $ (20.5) $ (69.5)
Net loss from continuing operations attributable to equity holders of
IAMGOLD ($/share) $ (0.02) $ (0.02) $ (0.04) $ (0.15)
Adjusted net earnings (loss) from continuing operations attributable
to equity holders of IAMGOLD1 $ 52.1 $ (7.2) $ 68.6 $ (33.8)
Adjusted net earnings (loss) from continuing operations attributable
to equity holders of IAMGOLD ($/share)1 $ 0.11 $ (0.02) $ 0.15 $ (0.07)
Net cash from operating activities $ 105.1 $ 51.8 $ 218.9 $ 100.5
Net cash from operating activities before changes in working
capital1 $ 108.4 $ 65.4 $ 260.2 $ 141.3
Mine-site free cash flow1 $ 80.0 $ 23.2 $ 145.5 $ 3.7
Key Operating Statistics
Gold sales – attributable (000s oz) 162 171 474 523
Gold production – attributable (000s oz) 159 174 484 531
Average realized gold price1 ($/oz) $ 1,908 $ 1,483 $ 1,747 $ 1,368
Cost of sales2 ($/oz) $ 1,098 $ 986 $ 1,061 $ 963
Total cash costs1 ($/oz) $ 1,006 $ 901 $ 979 $ 894
All-in sustaining costs1 ($/oz) $ 1,206 $ 1,137 $ 1,209 $ 1,129
Gold margin1 ($/oz) $ 902 $ 582 $ 768 $ 474
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 fina ncial statements expressed on an attributable
ounce sold basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel).
THIRD QUARTER 2020 SUMMARY
Financial Performance
• Revenues from continuing operations for the third quarter 2020 were $335.1 million, up $60.7 million or
22% from the same prior year period. The increase was primarily due to a higher realized gold price
($74.4 million) and higher sales volume at Essakane ($9.8 million) and Westwood ($1.0 million), partially
offset by lower sales volume at Rosebel ($24.7 million).
• Cost of sales from continuing operations for the third quarter 2020 was $257.0 million, up $5.4 million or
2% from the same prior year period. Th e increase was due to higher operating costs ($6.6 million) and
higher royalties ($3.4 million) partially offset by lower depreciation expense ($4.6 million).
• Depreciation expense from continuing operations for the third quarter 2020 was $65.3 million, down $4.6
million or 7% 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 third quarter 2020 was $9.3 million, up $0.7 million from the same prior year
period. Income tax expense for the third qua rter 2020 comprised current income tax expense of $19.1
million (September 30, 2019 - $15.8 million) and deferred income tax recovery of $9.8 million
(September 30, 2019 - deferred income tax recovery of $7.2 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 from continuing operations attributable to equity holders for the third quarter 2020 was $11.6
million, or $0.02 per share, compared to net loss of $10.2 million, or $ 0.02 per share in the same prior
year period. The increase in net loss was primarily due to lower interest income, derivatives and other
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investment gains (losses) ($46.8 million), primarily due to the loss on redemption of the 7% Senior Notes,
and higher other expenses ($13.1 million), primarily due to COVID-19 expenses, partially offset by higher
gross profit ($55.3 million).
• Adjusted net earnings from continuing operations attributable to equity holders 2 was $52.1 million, or
$0.11 per share 2, compared to adjusted net loss from continuing operations 2 of $7.2 million, or $0.02
per share2 in the same prior year period.
• Net cash from operating activities for the third quarter 2020 was $105.1 million, up $53.3 million from
the same prior year period. The incre ase was primarily due to higher earnings after non -cash
adjustments ($51.9 million) and lower movements in non -cash working capital items and non -current
ore stockpiles ($10.3 million), partially offset by the settlement of derivatives ($6.9 million)
• Net cash from operating activities before changes in working capital 2 for the third quarter 2020 was
$108.4 million, up $43.0 million from the same prior year period.
• Mine-site free cash flow2 was $80.0 million, up $56.8 million from the same prior year period, and up $27
million from the second quarter 2020.
Financial Position
• Our cash, cash equivalents, short -term investments and restricted cash were $928.0 million at
September 30, 2020, up $63.2 million from December 31, 2019. The increase was primarily due to cash
generated from operating activities ($218.9 million) and net proceeds from issuance of the 5.75% Senior
Notes ($443.6 million), partially offset by the redemption of the 7% Senior Notes ($421.3 million) and
spending on Property, plant and equipment ($186.3 million).
Production and Costs
• Attributable gold production from continuing operations was 159,000 ounces for the third quarter 2020,
down 15,000 ounces from the same prior year period. The decrease was primarily due to lower
production at Rosebel (13,000 ounces) as a result of the work stoppage during July 2020.
• Attributable gold sales from continuing operations were 162,000 ounces for the third quarter 2020, down
9,000 ounces from the same prior year period. The decrease was due to lower sales volume at Rosebel
(16,000 ounces), partially offset by higher sales volume at Essakane (6,000 ounces) and at Westwood
(1,000 ounces).
• Cost of sales1 per ounce from continuing operations for the third quarter 2020 was $1,098, up 11% from
the same prior year peri od primarily due to realized losses on input cost hedges, higher royalties as a
result of an increase in the gold price and lower sales volumes.
• Total cash costs2 per ounce produced from continuing operations for the third quarter 2020 were $1,006,
up 12% from the same prior year period primarily due to lower production volume and higher royalties
as a result of the increase in the gold price.
• All-in sustaining costs2 per ounce sold from continuing operations for the third quarter 2020 were $1,206,
up 6% from the same prior year period primarily due to higher cost of sales per ounce partially offset by
lower sustaining capital expenditures.
Commitment to Zero Harm Continues
• The DART rate3, representing the frequency of all types of serious injuries across all sites and functional
areas for the third quarter 2020 was 0.36, below IAMGOLD's target of 0.57. IAMGOLD continues the
implementation of several initiatives, including a behaviour-based safety program, to ensure a safer work
environment.
COVID-19 Crisis
• In response to the global COVID -19 crisis, IAMGOLD has taken extensive steps to protect the health
and safety of employees and contractors.
• As the global COVID -19 crisis evolved, IAMGOLD adjusted and expanded the extensive measures
previously implemented to protect the health and safety of employees, contractors and local
communities. These measures included training on new procedures and sanitary measures
recommended by Health Authorities, adjusted work schedules, physical distancing and protective
equipment, restricted site access, screening processes for employees, contractors and incoming
supplies, use of thermal cameras to check temperatures before site entrance, and arranging additional
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transportation buses and on -site medical personnel. In addition, the number of living quarters at
Essakane and Rosebel were increased. Initially the on-site workforce was limited to essential personnel
only. As IAMGOLD’s COVID -19 health and safety protocols were embedded in the operations, the
workforce was expanded with Essakane now at normal capacity and Rosebel expected to reach normal
capacity in the first quarter 2021.
ATTRIBUTABLE GOLD PRODUCTION AND COSTS
Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash Costs2
($ per ounce
produced)
All-in Sustaining
Costs2,3
($ per ounce sold)
Three months ended
September 30, 2020 2019 2020 2019 2020 2019 2020 2019
Continuing operations
Essakane (90%) 94 96 $ 1,050 $ 925 $ 954 $ 866 $ 1,054 $ 1,021
Rosebel (95%) 42 55 1,049 1,122 987 968 1,164 1,198
Westwood (100%)4,5 23 23 1,387 915 1,254 889 1,515 1,033
159 174 $ 1,098 $ 986 $ 1,006 $ 901 $ 1,206 $ 1,137
Cost of sales1 ($/oz) $ 1,098 $ 986
Cash costs, excluding royalties $ 912 $ 833
Royalties 94 68
Total cash costs2 $ 1,006 $ 901
All-in sustaining costs2,3 $ 1,206 $ 1,137
Gold Production
(000s oz)
Cost of Sales1
($ per ounce)
Total Cash Costs2
($ per ounce
produced)
All-in Sustaining
Costs2,3
($ per ounce sold)
Nine months ended
September 30, 2020 2019 2020 2019 2020 2019 2020 2019
Continuing operations
Essakane (90%) 261 274 $ 1,036 $ 926 $ 939 $ 878 $ 1,076 $ 1,035
Rosebel (95%) 158 195 1,045 976 980 925 1,194 1,121
Westwood (100%)4,5 65 62 1,197 1,079 1,140 866 1,304 1,062
484 531 $ 1,061 $ 963 $ 979 $ 894 $ 1,209 $ 1,129
Cost of sales1 ($/oz) $ 1,061 $ 963
Cash costs, excluding royalties $ 897 $ 832
Royalties 82 62
Total cash costs2 $ 979 $ 894
All-in sustaining costs2,3 $ 1,209 $ 1,129
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 reconciliatio n on page 33 of IAMGOLD's
MD&A.
4 Cost of sales per ounce sold for Westwood does not include the impact of normalization of costs for the three and nine months e nded September 30,
2020 of $nil and $nil per ounce (three and nine months ended September 30, 2019 - $nil and $174 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 nine months ended September 30, 2020 of $nil and $nil per ounce (three and nine months ende d September 30, 2019 - $nil per ounce produced
and $174 per ounce sold, respectively).