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IAMGOLD strengthens balance sheet by deferring Q2 2024 prepay obligations

Apr 5, 2024

IAMGOLD Corporation has entered into a forward gold sale arrangement and a partial amendment to one of its existing gold prepay arrangements. The net result of these Arrangements is the effective transition of current gold delivery obligations totaling 37,500 ounces out of the second quarter of 2024 into the same period in the following year, increasing cashflow in Q2 2024 by approximately $73.6 million assuming current gold prices.

"The deferral of the prior prepay arrangement for gold deliveries out of the second quarter provides additional liquidity during a period when our Côté Gold mine is taking its first steps toward commercial production, following a successful start of production and commissioning of all major equipment," said Renaud Adams, President and CEO of IAMGOLD. "In the current strong gold price environment, we saw an opportunity to further strengthen our balance sheet against other risks, including potential further delays in the closing of the two remaining transactions for the West Africa exploration assets, which are still expected to close this year. Initial ramp up activities at Côté Gold are progressing well, with a high degree of confidence in achieving commercial production in the third quarter towards our goal of Côté operations reaching 90% throughput exiting 2024."

Maarten Theunissen, Chief Financial Officer of IAMGOLD commented: "The deferral arrangement allows us sell 6,250 ounces in the current gold price environment by deferring the physical delivery into the arrangement to the second quarter of 2025. The prepay allows us to realize value on the sale of 31,250 gold ounces at a floor price of $2,100 per ounce while maintaining upside exposure on these ounces up to a gold price of $2,925 per ounce. Further, the arrangements were very competitive on a cost of capital basis versus drawing on the credit facility during the ongoing pre-commercial ramp up of operations at Côté." 

Under the 2025 Q2 Prepay Arrangement, the Company will receive a prepayment amount of $59.4 million during Q2 2024 in exchange for delivering 31,250 ounces in the second quarter of 2025. The Q2 Deferral Prepay Arrangement allows for the deferral of 6,250 ounces that were previously scheduled for delivery in Q2 2024, under the existing gold prepay arrangements entered into in 2022 (the "2022 Prepay Arrangements"), to now be delivered in Q2 2025. This deferral allows for the Company to sell the equivalent ounces in Q2 2024 which equates to approximately $14.2 million at current spot prices. The combined Arrangements effectively transition the cashflow impact of the prior obligation, as defined in the 2022 Prepay Arrangements, to deliver 37,500 ounces in the second quarter 2024 to the second quarter of 2025. The Arrangements are supported by the Company's syndicate of banks under its revolving credit facility.

Key terms of the 2025 Q2 Prepay Arrangement are as follows:

  • Funding of $59.4 million is provided to IAMGOLD at an effective gold price of $1,900 per ounce (net of financing costs) and paid equally in three monthly increments in the second quarter of 2024 for physical delivery of 31,250 ounces of gold over the period of April 2025 to June 2025.
  • The arrangement has a collar range of $2,100 to $2,925 and IAMGOLD will receive a cash payment based on the market price, if it is within the collar range in the month of delivery.
  • Delivery can be made from the production of gold from any of IAMGOLD's operating mines.

Key terms of the Q2 Deferral Prepay Arrangement are as follows:

  • Deferral of the delivery of 6,250 ounces from Q2 2024 under the 2022 Prepay Arrangements to Q2 2025. The ounces that are deferred were previously funded at a forward price of $1,753 per ounce.
  • The Company will make a cash payment of $0.6 million in total at the time of delivery in Q2 2025 in consideration for the deferral. 
  • Delivery can be made from the production of gold from any of IAMGOLD's operating mines.

As background, during 2021, the Company entered the 2022 Prepay Arrangements in respect of 150,000 gold ounces. These arrangements had an average forward contract pre-funded price of $1,753 per ounce on 50,000 gold ounces and a collar range of $1,700 to $2,100 per ounce on the remaining 100,000 gold ounces. The Company received $236.0 million in 2022 and was to physically deliver the 150,000 ounces in equal monthly increments of 12,500 ounces (37,500 ounces quarterly) over the course of 2024. On December 18, 2023, IAMGOLD announced similar gold prepay arrangements to defer the gold deliveries due in the first quarter of 2024 into the first quarter of 2025. 


IAMGOLD is an intermediate gold producer and developer based in Canada with operating mines in North America and West Africa. The Company has commenced production at the large-scale, long life Côté Gold Mine in partnership with Sumitomo Metal Mining Co. Ltd., which is expected to be among the largest gold mines in Canada. In addition, the Company has an established portfolio of early stage and advanced exploration projects within high potential mining districts. IAMGOLD employs approximately 3,600 people and is committed to maintaining its culture of accountable mining through high standards of Environmental, Social and Governance practices, including its commitment to Zero Harm®, in every aspect of its business. IAMGOLD is listed on the New York Stock Exchange (NYSE: IAG) and the Toronto Stock Exchange (TSX: IMG) and is one of the companies on the Jantzi Social Index, a socially screened market capitalization-weighted consisting of companies which pass a set of broadly based environmental, social and governance rating criteria.

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