Côté Gold saw "remarkable progress" in 2023 - IAMGOLD reports

IAMGOLD Corporation has reported its financial and operating results for the fourth quarter and year ended December 31, 2023. The Company also provided updated outlook and operating guidance for 2024. Preliminary operating results for the fourth quarter and year ended 2023 were disclosed on January 22, 2024. 

"In 2023, IAMGOLD made significant strides towards its goal of becoming a leading mid-tier gold producer with a long life, cornerstone asset in Canada," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "Last year saw significant changes in leadership across the organization to allow for a reinforced focus on operations as IAMGOLD prioritizes operational excellence, positions Côté Gold for success, and fosters the talent within the company. Operationally, 2023 was a strong year with attributable gold production from continuing operations of 465,000 ounces, which was at the top end of the guidance range of 410,000 to 470,000 ounces. We congratulate the Essakane team who achieved their targets while facing considerable challenges within the region, and the Westwood team who continue to execute on the plan to ramp up underground operations while employing industry-leading underground seismic monitoring and management."

"Côté Gold construction saw remarkable progress last year," continued Mr. Adams. "The project entered 2023 with construction approximately 64% complete and finished the year at 98% complete. This progress entailed significant advancement across the project scope, including the mechanical, piping, electrical and instrumentation of the plant, electrification of the site to the provincial hydro grid, initiation and ramp up of mining activities and continued heavy lifting to raise the tailings management facility. Mining activities advanced very well through the year with the successful roll out of Ontario's first autonomous haulage fleet and stockpiling of approximately 5 million tonnes of ore. During this period, project costs tracked in line with the 2022 updated budget estimate."

"Côté Gold is poised to begin production next month. While first gold is on the horizon, our primary focus and efforts are on positioning the project for a steady ramp up of gold production through the year to achieve commercial production in the third quarter. We are now executing and ramping up commissioning activities, with crushing and screening successfully commissioned, and pre-commissioning ongoing on the HPGR and wet side of the plant. At steady run-rate, Côté Gold will be the third largest gold mine in Canada with an expected mine life exceeding 18 years and significant opportunities for growth."

HIGHLIGHTS:

Operating and Financial

• Attributable gold production from continuing operations was 136,000 ounces for the fourth quarter and 465,000 ounces for the year, at the top end of the guidance range of 410,000 to 470,000 ounces. Essakane had a strong fourth quarter with attributable production of 108,000 ounces and year to date attributable production of 372,000 ounces, which was near the top end of the guidance range of 340,000 to 380,000 ounces. Westwood exceeded the top end of its guidance range of 70,000 to 90,000 ounces with 93,000 ounces produced for the year, including 12,400 ounces produced in December, a record since the mine restarted.
   
• In health and safety, for the year ended December 31, 2023, the Company reported a TRIFR (total recordable injuries frequency rate) of 0.69, an improved trend since last year. 
   
• Revenues from continuing operations were $297.6 million in the fourth quarter from sales of 147,000 ounces (136,000 ounces on an attributable basis) at an average realized gold price1 of $2,005 per ounce and $987.1 million for the year from sales of 503,000 ounces (462,000 ounces on an attributable basis) at an average realized gold price of $1,955 per ounce.
   
• Cost of sales per ounce sold in the fourth quarter was $1,201, cash cost1 per ounce sold was $1,197 and all-in-sustaining-cost1 ("AISC") per ounce sold was $1,735. Cash cost per ounce sold of $1,261 for the year was at the bottom end of the revised guidance range of $1,250 to $1,325 per ounce sold, and AISC per ounce sold of $1,783 for 2023 was within the revised guidance range of $1,750 to $1,825 per ounce sold.
   
• Net earnings (loss) and adjusted net earnings (loss) per share attributable to equity holders1 of $(0.02) and $0.06 for the fourth quarter, respectively. Net earnings (loss) and adjusted net earnings (loss) per share attributable to equity holders1 of $0.18 and $0.09 for the year ended December 31, 2023, respectively.
   
• Net cash from operating activities was $69.9 million for the fourth quarter and $144.0 million for the year. Net cash from operating activities, before movements in non-cash working capital and non-current ore stockpiles1was $52.1 million for the fourth quarter and $158.9 million for the year.
   
• Earnings before interest, income taxes, depreciation and amortization ("EBITDA")1 from continuing operations was $70.2 million during the fourth quarter and $366.6 million for the year, and adjusted EBITDA1 was $110.6 million for the fourth quarter and $315.1 million for the year.
   
• Mine-site free cash flow1 from continuing operations was $28.9 million for the fourth quarter and $48.2 million for the year.
   
• The Company has available liquidity1 of $754.1 million comprised of cash and cash equivalents of $367.1 million and the available balance of the secured revolving credit facility ("Credit Facility") of $387.0 million as at December 31, 2023.

Côté Gold

• As of December 31, 2023, construction progress at Côté Gold was estimated to be 98% complete, while overall project progress was approximately 95.5% complete which includes demobilization of construction teams and facilities.
   
• On a 100% basis at the UJV level, the Côté Gold Project incurred project expenditures1 of $242.9 million ($170.5 million at 70%) in the fourth quarter 2023 and $1,074.2 million ($752.3 million at 70%) for the full year. 
   
• Since commencement of construction, $2.786 billion ($1.95 billion at 70%) of project expenditures has been incurred. The estimated remaining project expenditures, on a 100% basis, to achieve first gold is $179.0 million (± 5%) bringing total project expenditures up to first gold in line with the planned $2.965 billion ($2.08 billion at 70%) on an incurred basis. Post first gold, completion of certain infrastructure and earthworks projects are estimated to $40 million (± 5%). 
   
• In addition to the project expenditures, an estimated $40 million (± 5%) of operating expenditures related to milling and surface costs are expected to be capitalized during commissioning and ramp-up until the project achieves commercial production. 
   
• Production at Côté Gold, on a 100% basis, is expected to be between 220,000 and 290,000 ounces for the year. This estimate assumes that following initial gold production by the end of March, operations ramp-up in the second quarter 2024 and commercial production is achieved in the third quarter 2024. The Company expects Côté Gold operations to exit the year at a throughput rate of approximately 90% of nameplate. 
   
• As Côté Gold achieves 90% of throughput, which is expected by the end of the year, the Company estimates cash costs at that time to be in the range of approximately $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce sold.
   
• The estimated capital expenditures related to operations for 2024, excluding capital waste stripping, total $145 million (± 5%). Capitalized waste stripping is estimated to be $50 million (± 5%) for the year. 
   
• IAMGOLD will continue to fund 60.3% of the operating costs and capital expenditures and will receive 60.3% of the gold production.

 

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