Iamgold Reports Third Quarter 2022 Results
NEWS RELEASE
TSX: IMG NYSE: IAG
IAMGOLD REPORTS THIRD QUARTER 2022 RESULTS
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario, November 8, 2022 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the “Company”)
today reported its financial and operating results for the third quarter ended September 30, 2022.
HIGHLIGHTS:
• Attributable gold production of 184,000 ounces in the third quarter and 528,000 ounces year -to-date (“YTD”) as a
result of continued strong performance from Essakane and improvements at Rosebel.
• The Company expects that annual production will exceed the top end of the previous guidance range of 570,000 to
640,000 ounces and is revising guidance upwards to 650,000 to 705,000 ounces.
• Cost of sales per ounce sold of $1,140 ($1,102 YTD), cash cost 1 per ounce sold of $1,126 ($1,087 YTD) and all-in
sustaining costs1 ("AISC") per ounce sold of $1,559 ($1,550 YTD).
• The Company expects AISC 1 to be below the bottom end of guidance range of $1,650 to $1,690 and revised
guidance downwards to between $1,600 and $1,650 per ounce sold. Cash costs 1 guidance for 2022 is revised
downwards to be between $1,100 and $1,130 per ounce sold from the previous guidance range of $1,100 to $1,150
per ounce.
• Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)1 of $(41.3) million ($195.0 million
YTD) and adjusted EBITDA1 of $103.1 million ($350.6 million YTD).
• Mine-site free cash flow1 of $59.2 million ($189.3 million YTD).
• Net loss and adjusted net loss per share attributable to equity holders1 of $(0.23) and $(0.03), respectively; YTD net
earnings (loss) and adjusted net earnings (loss) per share attributable to equity holders 1 of $(0.20) and $0.01,
respectively.
• Cash, cash equivalents and short -term investments of $536.1 million and liquidity 1 of $636.8 million at September
30, 2022.
• As of September 30, 2022, the Côté Gold project was approximately 64.2% complete, with detailed engineering
fully complete and construction in line with the updated technical report. The Company's share of remaining project
spend to bring Côté Gold into production is estimated to be between $1.0 and $1.1 billion from October 1, 2022, net
of leases and working capital.
• On October 18, 2022, the Company announced that it had entered into a definitive agreement with Zij in Mining
Group Co. Ltd. to sell its interest s in the Rosebel mine for cash consideration of $360 million plus working capital
adjustments, as well as the release of approximately $41 million of IAMGOLD obligations related to equipment
leases, on closing.
“IAMGOLD has continued to build upon its recent successes, reporting attributable gold production of 184,000 ounces,
which represents th e highest quarterly production for the Company in over 2.5 years, driven by record production from
Essakane,” said Maryse Bélanger, Chair and Interim President and CEO of IAMGOLD. “On behalf of the Board and the
executive team, we applaud the tireless efforts of the IAMGOLD team for this achievement and their continued commitment
to operating safely and responsibly.
“The Côté Gold Project is approximately 64% complete and advancing well following the schedule and cost update released
in the summer. With approximately 1,500 workers on site, the project is nearing peak capacity and has seen significant
progress in the third quarter towards the target of production in early 2024. The announced sale of Rosebel to Zijin Mining
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last month represents the first significant step towards addressing the funding commitments to deliver Côté Gold. The
remaining funding alternatives are well advanced and we expect to be able to provide further updates in the fourth quarter.”
QUARTERLY REVIEW
The following table summarizes certain operating and financial results for the three months ended September 30, 2022 (Q3
2022), June 30, 2022 (Q2 2022) and September 30, 2021 (Q3 2021) and the nine months ended September 30 (or YTD),
2022 and 2021 and certain measures of the Company's financial position as at September 30, 2022, June 30, 2022 and
December 31, 2021:
Q3 2022 Q2 2022 Q3 2021 YTD 2022 YTD 2021
Key Operating Statistics
Gold production – attributable (000s oz) 184 170 153 528 448
Gold sales – attributable (000s oz) 187 170 150 538 438
Average realized gold price1 ($/oz) $ 1,690 $ 1,799 $ 1,787 $ 1,766 $ 1,788
Cost of sales2 ($/oz sold) – attributable $ 1,140 $ 1,130 $ 1,247 $ 1,102 $ 1,157
Cash costs1 ($/oz sold) – attributable $ 1,126 $ 1,119 $ 1,245 $ 1,087 $ 1,155
AISC1 ($/oz sold) – attributable $ 1,559 $ 1,604 $ 1,508 $ 1,550 $ 1,387
Financial Results ($ millions, except where noted)
Revenues $ 343.3 $ 334.0 $ 294.1 $ 1,033.9 $ 857.1
Gross profit $ 29.7 $ 49.4 $ 6.9 $ 160.1 $ 79.0
EBITDA1 $ (41.3) $ 101.4 $ 19.6 $ 195.0 $ 220.5
Adjusted EBITDA1 $ 103.1 $ 110.0 $ 82.5 $ 350.6 $ 265.7
Net earnings (loss) attr. to equity holders $ (108.3) $ (9.6) $ (75.3) $ (94.1) $ (60.3)
Adjusted net earnings (loss) attr. to equity holders1 $ (13.7) $ (6.3) $ (20.1) $ 6.1 $ (17.5)
Net earnings (loss) per share attr. to equity holders $ (0.23) $ (0.02) $ (0.16) $ (0.20) $ (0.13)
Adjusted EPS3 attr. to equity holders1 $ (0.03) $ (0.01) $ (0.04) $ 0.01 $ (0.04)
Net CFO4 before changes in working capital1 $ 108.8 $ 93.9 $ 79.6 $ 336.6 $ 217.0
Net cash from operating activities $ 117.7 $ 81.9 $ 78.5 $ 341.9 $ 217.5
Mine-site free cash flow1 $ 59.2 $ 42.8 $ 31.9 $ 189.3 $ 121.6
Capital expenditures1,5 – sustaining $ 71.1 $ 67.1 $ 26.4 $ 214.8 $ 64.0
Capital expenditures1,5 – expansion $ 158.9 $ 189.0 $ 113.0 $ 440.0 $ 330.2
September 30 June 30 December 31 September 30 December 31
2022 2022 2021 2022 2021
Financial Position ($ millions)
Cash, cash equivalents and short-term investments $ 536.1 $ 452.9 $ 552.5 $ 536.1 $ 552.5
Long-term debt $ 844.6 $ 612.0 $ 464.4 $ 844.6 $ 464.4
Net cash (debt)1 $ (409.3) $ (225.1) $ 16.3 $ (409.3) $ 16.3
Available credit facility $ 100.7 $ 348.7 $ 498.3 $ 100.7 $ 498.3
1. This is a non-GAAP measure. See "Non-GAAP Financial Measures".
2. Throughout this news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the annual con solidated financial statements.
3. EPS: “net earnings (loss) per share “
4. CFO: “cash from operating activities”
5. Starting in 2022, a higher portion of stripping costs are categorized as sustaining capital versus expansion capital, due to the particular areas that are scheduled
to be mined and the stage of the life of mine aligning with World Gold Council guidelines. See "Non-GAAP Financial Measures section".
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Operating Results
Attributable gold production for the third quarter was 184,000 ounces, up 14,000 ounces or 8% from the prior quarter ,
primarily due to higher production at Essakane ( 8,000 ounces) and Westwood (5,000 ounces). Attributable gold sales of
187,000 ounces were slightly higher than production due to the timing of gold sales, with the average realized gold price of
$1,690 per ounce reflecting the delivery of 37,500 ounces at $1,500 per ounce under the 2019 Prepay Arrangement.
Cost of sales (excluding depreciation) per ounce sold was $1,140 for the third quarter, up $10 per ounce or 1% from $1,130
per ounce sold in the prior quarter . Production costs per ounce sold were in line with the prior quarter with higher costs
being offset by higher production. Included was the positive impact of realized derivative gains of $40 per ounce sold
(second quarter 2022 - gains of $64 per ounce sold).
Cash costs per ounce sold in the third quarter were $1,126, up $7 per ounce or 1% from the prior quarter. Cash costs per
ounce sold reflected higher cost of sales per ounce, partially offset by the exclusion of the long term NRV adjustment that
is included in cost of sales. AISC per ounce sold of $1,559 was down $45 per ounce or 3% from the prior quarter, primarily
due higher sales volume and a decrease in general administrative expenses.
Health and Safety
Health and safety is core to the Company’s relentless pursuit of its Zero Harm ® vision. Through various programs, the
Company continuously promotes a safe work environment and a wellness program at all sites. The DARTFR 2 (days away,
restricted, transferred duty frequency rate) was 0.27 (on YTD basis) at the end of the third quarter of 2022, tracking below
the global annual target of 0.42, with a decreasing trend. The TRIFR2 (total recordable injuries frequency rate) was 0.72 (on
YTD basis) at the end of the third quarter of 2022, tracking below the global annual target of 0.73 , also with a decreasin g
trend. Côté Gold has surpassed over 6.9 million hours with no lost time injuries to date. The operations have been increasing
focus on situational awareness and preventative activities related to work tasks.
The global COVID-19 pandemic continues to evol ve and the management thereof remains a focus for the business . The
Company continues to closely monitor developments and is taking necessary measures to manage the impact of the
COVID-19 pandemic on its personnel, operations, construction and development projects and exploration activities. COVID-
19 detection and mitigation protocols at our sites are reviewed on an ongoing basis to adapt to the evolving situation.
Financial Results
For the third quarter ended September 30, 2022 , net loss and adjusted net loss1 per share attributable to equity holders
were ($0.23) and ($0.03), respectively. EBITDA1 was ($41.3) million and adjusted EBITDA1 was $103.1 million. Adjusted
net loss per share attributable to equity holders and adjusted EBITDA include the reversal of a n after -tax non -cash
impairment charge of $7 4.0 million ($115.8 million before tax) related to the announced definitive agreement to sell
IAMGOLD’s interests in the Rosebel mine to align the carrying value of the Rosebel cash generating unit with the sales
price.
Mine-site free cash flow for the t hird quarter 2022 was $59.2 million, up $16.4 million, from the prior quarter, primarily due
to higher free cash flow at Essakane ($20.2 million) and Westwood ($9.2 million) due to higher sales volume, partially offset
by lower free cash flow at Rosebel ($13.0 million) primarily due to changes in working capital and lower average realized
gold price.
Net cash from operating activities for the third quarter 2022 was $117.7 million, an increase of $35.8 million from the prior
quarter, primarily due to decrease in income taxes paid ($22.4 million) and a net inflow in non -cash working capital
movements ($20.9 million), partially offset by lower net cash earnings ($5.2 million) and lower settlement of derivatives ($1.7
million). Net cash from operating activities for YTD 2022 was $341.9 million, an increase of $124.4 million from the same
prior year period, primarily due to proceeds from 2022 Prepay Arrangements ($177.0 million) and an increase of cash
inflows from the settlement of derivatives ($21.9 million), partial ly offset by lower net cash earnings ($48.9 million), an
increase in income taxes paid ($21.1 million), and a decrease in proceeds from insurance claim ($9.5 million).
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Net cash used in investing activities for the third quarter 2022 was $228.9 million, a decrease of $40.3 million from the prior
quarter, primarily due to a decrease in capital expenditures for property, plant and equipment ($26.1 million) mainly related
to the Cóté Gold construction and timing of financing costs paid and capitalized as borrowing costs ($9.8 million). Net cash
used in investing activities for YTD 2022 was $658.6 million, an increase of $291.2 million from the same prior year period,
primarily due to an increase in capital expenditures for property, plant and equipment ($261.1 million) mainly related to the
Cóté Gold construction and an increase in financing costs paid and capitalized as borrowing costs ($8.8 million), partially
offset by proceeds from the disposal of marketable securities ($25.1 million).
Net cash from financi ng activities in the third quarter 2022 was $217.4 million, an increase of $87.5 million from the prior
quarter, primarily due to proceeds from the Credit Facility drawdowns ($80.0 million), proceeds from the equipment loans
($4.6 million), and decrease in dividends paid to non-controlling interest ($4.8 million) on the declaration of dividends from
subsidiaries. Net cash from financing activities for YTD 2022 was $339.8 million, an increase of $381.4 million from the
same prior year period, primarily due to proceeds from the Credit Facility drawdowns ($380.0 million).
Liquidity and Capital Resources
As at September 30, 2022, the Company had $535.6 million in cash and cash equivalents, $0.5 million in short -term
investments and net debt 1 of $409.3 million. Approximately $100.7 million was available under the Company’s secured
revolving credit facility (“Credit Facility”) resulting in liquidity1 at September 30, 2022, of approximately $637 million.
The Côté Gold UJV requir ed its joint venture partners to fund, in advance, two months of future expenditures. During the
third quarter, the Côté UJV amended this requirement to two months from three months. The Company uses dividends and
intercompany loans to repatriate funds from its operations and the timing of dividends may impact the timing and amount of
required financing, including the Company's drawdowns under the Credit Facility. As at September 30, 2022, $237.8 million
of cash and cash equivalents was held by Côté Gold and Essakane. The company has funded its portion of the Côté UJV
funding cash generated from its operations and drawdowns on the Credit Facility. Restricted cash in support of
environmental closure costs obligations related to Essakane, Doyon division and Côté Gold project totaled $47.2 million.
The following table summarizes the Company's outstanding long-term debt:
September 30 June 30 December 31
($ millions)1 2022 2022 2021
Credit Facility $ 380.0 $ 150.0 $ —
5.75% senior notes 447.5 447.4 445.7
Equipment loans 17.1 14.6 18.7
$ 844.6 $ 612.0 $ 464.4
1. Long-term debt does not include leases of $78.9 million as at September 30, 2022 (June 30, 2022 - $62.0 million; December 31, 2021 - $65.6 million),
Credit Facility
The Company has a $500 million Credit Facility, which was entered into in December 2017 and amended including in
February 2021, to primarily extend the maturity date from January 31, 2023, to January 31, 2025, for $490 million of the
available credit. During the nine months ended Septem ber 30, 2022, the Company drew down $380 million on the Credit
Facility. As at September 30, 2022, the Company had letters of credit in the amount of $19.3 million issued under the Credit
Facility to guarantee certain environmental indemnities and $100.7 million was available under the Credit Facility.
The Credit Facility is secured by certain of the Company's real assets, guarantees by certain of the Company’s subsidiaries
and pledges of shares of certain of the Company's subsidiaries. The key terms of the Credit Facility include certain limitations
on incremental debt, certain restrictions on distributions and financial covenants including Net Debt to EBITDA and Interest
Coverage. The Company entered into an amendment in conjunction with entering into a d efinitive agreement to sell its
interests in the Rosebel mine where the lenders under the credit facility provided consent to release their security over the
Rosebel mine at the close of the transaction. The amendment requires that the proceeds from the sale be used for funding
the Côté Gold project with certain exceptions.
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OUTLOOK
Liquidity Outlook
The remaining attributable spend to complete the construction of the Côté Gold project is estimated to be between $1.0 and
$1.1 billion from October 1, 2022, net of leases and working capital (see “Côté Gold Project”). At September 30, 2022, the
Company had $536.1 million in cash and cash equivalents (compared to $452.9 million at June 30, 2022) and $100.7 million
available for draw down under the Credit Facility. As at September 30, 2022, $237.8 million of cash and cash equivalents
was held by Côté Gold and Essakane.
On October 18, 2022, the Company announced that it had entered into a defini tive agreement with Zijin Mining Group Co.
Ltd. to sell its interest s in the Rosebel mine for cash consideration of $360 million plus working capital adjustments on
closing. The transaction is expected to close in the first quarter 2023 or earlier.
Based on the information currently available and prevailing market conditions, which impact project expenditures and
operating cash flows, the Company will require additional liquidity in 2023 , in addition to the proceeds expected to be
received from the sale of Rosebel, to complete construction of the Côté Gold project and continues to seek a financing plan
by the end of the year. The Company is actively pursuing various alternatives to increase its liquidity and capital resources
including additional secured debt and/or royalties and streams, which could be provided by banks, private capital providers
and/or institutional investors and specialist streaming or royalty companies, additional unsecured debt including unsecured
and/or convertible notes, sales of comm on shares and the extension of the 2022 Prepay Arrangement . In addition, the
Company continues to progress its strategic alternatives with respect to certain of its development and exploration assets
in South America and West Africa (excluding Essakane), that may include the disposition of all or an interest in one or more
of such assets.
There can be no assurance that the Company will be successful in achieving financing solutions in time and/or on terms
acceptable to the Company or that the strategic evaluations discussed above will result in a transaction. In this case and in
order to execute its plans for the foreseeable future, including financing alternatives, the Company has developed certain
potential alternatives to defer or reduce its capital spending and various other expenditures. These alternatives may impact
future operating and financial performance and/or could extend the Côté Gold project construction timeline and significantly
increase project costs, and/or dilute the Company's interest in the Côté Gold project. Reductions in capital expenditures at
the Côté Gold project requires approval from the Côté UJV oversight committee.
The Company’s financial results are highly dependent on the price of gold, oil and foreign exchange rates and future
changes in these prices will, therefore, impact performance. The Company will be dependent on the cash flows generated
from the Côté Gold project to eventually repay its existing and any additional indebtedness that it may incur to fund the
remaining construction costs of the Côté Gold project. Readers are encouraged to read the “Caution Regarding Forward
Looking Statements” and the “Risk Factors” sections contained in the Company’s 2021 Annual Information Form, which is
available on SEDAR at www.sedar.com and the “Caution Regarding Forward Looking Statements” and “Risk and
Uncertainties” section of the MD&A.
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Operating Guidance
Actual YTD 2022
Updated Full Year
Guidance 20221
Previous Full Year
Guidance 20222
Essakane (000s oz) 334 410 – 430 360 – 385
Rosebel (000s oz) 145 175 – 200 155 – 180
Westwood (000s oz) 49 65 – 75 55 – 75
Total attributable production (000s oz)3 528 650 – 705 570 – 640
Cost of sales3 ($/oz sold) $ 1,102 $1,100 – $1,130 $1,100 – $1,150
Cash costs3,4 ($/oz sold) $ 1,087 $1,100 – $1,130 $1,100 – $1,150
AISC3,4 ($/oz sold) $ 1,550 $1,600 – $1,650 $1,650 – $1,690
Depreciation expense5 ($ millions) $ 237.4 $305 – $315 $280 – $290
Income taxes paid $ 59.0 $69 – $79 $69 – $79
1. The updated full year guidance is based on the following 2022 full year assumptions, before the impact of hedging: average realized gold price of $1,792 per ounce,
USDCAD exchange rate of 1.30, EURUSD exchange rate of 1.04 and average crude oil price of $100 per barrel.
2. The previous full year guidance is based on the following 2022 full year assumptions, before the impact of hedging: average realized gold price of $1,700 per ounce,
USDCAD exchange rate of 1.25, EURUSD exchange rate of 1.20 and average crude oil price of $70 per barrel.
1 Consists of Essakane, Rosebel and Westwood on an attributable basis of 90%, 95% and 100%, respectively.
4. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
5. The updated full year depreciation expense guidance includes an estimated $12 million o f depreciation in the fourth quarter at Rosebel. Effective October 18, 2022,
the Rosebel mine will be accounted for as held for sale, and its operating results will be reported as discontinued operation s.
Production Outlook
The Company expects that annual attributable production will exceed the top end of the previous guidance range of 570,000
to 640,000 ounces due to stronger operating performance, particularly at Essakane, and is revising guidance upwards to
650,000 to 705,000 ounces.
Costs Outlook
Cash costs guidance for 2022 has been revised downwards to $1,100 and $1,130 per ounce sold and AISC guidance is
revised downwards with costs expected to be between $1,600 and $1,650 per ounce sold, largely reflecting the higher sales
expected for the full year, partially offset with higher costs from inflation. The estimates issued in January 2022 included
an inflation assumption of 5% to 7% on key consumables, translating to an increase of 1% to 2% in cash costs and AISC
(reflected in the previous guidance figures). During the first nine months of the year, higher production offset the additional
cost pressures from systemic inflation, constrained global supply chains and the sanctions on trade with Russia that
increased the average cost of key consumables such as oil, ammonium nitrate, grinding media, lime and cyanide. The
impact of the above -mentioned cost pressures stabilized during the third quarter of 2022 when compared to the first six
months of the year. The Company continues to work with its supply chain and seek alternatives to mitigate ongoing costs
pressures, including the sourcing of appropriate alternatives as well as progressing productivity initiatives at its operatio ns
through the IAMALLIN operational improvement program. Increases in oil prices have been partially mitigated by the existing
oil hedge program, see the “Market Risk” section of the Company’s Q3 2022 MD&A. For reference, excluding the impact of
the Company’s hedging program, a $10/bbl increase in the oil price would translate to a $15 per ounce increase in cash
costs; however, with current hedges in place, the same movement would equate to a $6 per ounce increase in cash costs.
The Company notes that continued external cost pressures may result in an increase in costs and capital expenditures.
Income Taxes Paid
Income taxes paid guidance for 2022 is reaffirmed between $69 and $79 million.
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Depreciation Expense
Depreciation expense guidance for 2022 is expected to be in the range of $305 and $315 million, reflecting higher YTD
2022 production and sales at Essakane . The updated full year depreciation expense guidance includes an estimated $12
million of depreciation in the fourth quarter at Rosebel. Effective October 18, 2022, the Rosebel mine will be accounted for
as held for sale, and its operating results will be reported as discontinued operations.
Capital Expenditures1
Actual YTD 2022 Updated Full Year Guidance 2022 Prior Full Year Guidance 2022
($ millions) Sustaining2 Expansion3 Total Sustaining2 Expansion3 Total Sustaining2 Expansion3 Total
Essakane $ 116.4 $ 2.5 $ 118.9 $ 175 $ 5 $ 180 $ 165 $ 5 $ 170
Rosebel4 75.0 23.4 98.4 105 30 135 105 35 140
Westwood 22.5 2.7 25.2 30 5 35 40 10 50
213.9 28.6 242.5 310 40 350 310 50 360
Boto Gold — 11.8 11.8 — 20 20 — 20 20
Corporate 0.9 — 0.9 — — — — — —
Total5,6,7,8
(±5%)
$ 214.8 $ 40.4 $ 255.2 $ 310 $ 60 $ 370 $ 310 $ 70 $ 380
1. 100% basis, unless otherwise stated.
2. Sustaining capital includes capitalized stripping of (i) $18.6 million for Essakane and $15.6 m illion for Rosebel in Q3 2022 (ii) $65.7 million for Essakane and $35.4
million for Rosebel YTD 2022 and (iii) $110 million for Essakane and $45 million for Rosebel for both the revised and previous full year guidance. See "Outlook"
sections below.
3. Expansion capital includes capitalized stripping of (i) $nil million for Essakane and $3.8 million for Rosebel in Q3 2022 (ii ) $nil for Essakane and $18.6 million for
Rosebel YTD 2022 and (iii) $nil for Essakane and $20 million for Rosebel for the both the revised and previous full year 2022 guidance. See "Outlook" se ctions
below.
4. Rosebel includes Saramacca at 70%.
5. Includes $10 million of capitalized exploration and evaluation expenditures also i ncluded in the Exploration Outlook guidance table.
6. Capitalized borrowing costs are not included.
7. In addition to the above capital expenditures, $22 million in total principal lease payments are expected.
8. See "Costs Outlook" section above.
Exploration
Actual YTD 2022 Full Year Guidance 2022
($ millions) Capitalized Expensed Total Capitalized Expensed Total
Exploration projects – greenfield $ — $ 19.5 $ 19.5 $ — $ 21 $ 21
Exploration projects – brownfield1 5.2 3.4 8.6 10 4 14
$ 5.2 $ 22.9 $ 28.1 $ 10 $ 25 $ 35
1 Exploration projects - brownfield includes planned near -mine exploration and resource development of (i) 5.2 million YTD 2022, and (ii) $10 million for the full year
2022 guidance.
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OPERATIONS AND PROJECTS
Essakane Mine (IAMGOLD interest – 90%)1 | Burkina Faso
Q3 2022 Q2 2022 Q3 2021 YTD 2022 YTD 2021
Key Operating Statistics
Ore mined (000s t) 3,259 3,803 3,908 10,894
11,902
Waste mined (000s t) 9,357 7,602 11,335 28,305 33,502
Material mined (000s t) – total 12,616 11,405 15,243 39,199 45,404
Strip ratio2 2.9 2.0 2.9 2.6 2.8
Ore milled (000s t) 2,978 2,704 3,298 8,844 9,656
Head grade (g/t) 1.50 1.52 1.33 1.47 1.37
Recovery (%) 90 90 83 89 82
Gold production (000s oz) – 100% 129 119 118 372 349
Gold production (000s oz) – attributable 90% 115 107 106 334 314
Gold sales (000s oz) – 100% 133 117 122 381 351
Average realized gold price3 ($/oz) $ 1,739 $ 1,882 $ 1,790 $ 1,833 $ 1,794
Financial Results ($ millions)1
Revenues4 $ 232.2 $ 218.8 $ 217.4 $ 699.2 $ 629.7
Operating costs (115.7)
)
(86.4) (101.1) (292.5) (303.3)
Royalties (11.4) (10.6) (10.9) (34.3) (31.5)
Cash costs3 $ (127.1) $ (97.0) $ (112.0) $ (326.8) $ (334.8)
Other mine costs5 (0.3) (0.3) (0.3) (1.0) (0.7)
Cost of sales4 $ (127.4) $ (97.3) $ (112.3) $ (327.8) $ (335.5)
Sustaining capital expenditures3,6 (37.6) (31.1) (11.6) (116.4) (28.3)
Other costs and adjustments7 (1.5) (2.0) (1.5) (1.8) (4.9)
AISC3 $ (166.5) $ (130.4) $ (125.4) $ (446.0) $ (368.7)
Expansion capital expenditures3,8 $ (1.0) $ (0.5) $ (27.2) $ (2.5) $ (60.3)
Performance Measures9
Cost of sales excluding depreciation ($/oz sold) $ 954 $ 838 $ 925 $ 860 $ 956
Cash costs3 ($/oz sold) $ 952 $ 836 $ 923 $ 858 $ 955
AISC3 ($/oz sold) $ 1,248 $ 1,124 $ 1,033 $ 1,171 $ 1,051
1. 100% basis, unless otherwise stated.
2. Strip ratio is calculated as waste mined divided by ore mined.
3. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
4. As per note 27 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depre ciation expense.
5. Other mine costs exclude by-product credits.
6. Includes sustaining capitalized stripping for the third quarter 2022 of $18.6 million (second quarter 2022 - $17.2 million; third quarter 2021 - $1.0 million) and YTD
2022 of $65.7 million (YTD 2021 - $1.0 million).
7. Other costs and adjustments include sustaining lease principal payments, environmental rehabilitation accretion and depletion and p rior period operating costs,
partially offset by by-product credits.
8. Includes expansion capitalized stripping for the third quarter 2022 of $nil (second quarter 2022 - $nil; third quarter 2021 - $21.8 million) and YTD 2022 of $nil (YTD
2021 - $43.9 million).
9. Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Essakane continued to deliver strong results and achieved attributable gold production of 115,000 ounces in the third quarter
of 2022, higher by 8,000 ounces or 7% compared to the prior quarter and 9,000 ounces or 8% compared to the same
quarter of the prior year. Higher production is attributed mainly to higher mill throughput when compared with the prior
quarter and better head grade at higher recovery rates when compared to the same prior year period.
Mining activity of 12.6 million tonnes in t he third quarter was higher compared to the prior quarter mainly due to the return
of mining operations to full capacity during September as a result of mitigation efforts and an easing of supply chain
challenges in the country.