IAMGOLD Reports Third Quarter 2023 Results

Press Release

Toronto, Ontario–(November 9, 2023) – IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) (“IAMGOLD” or the “Company”) today reported its financial and operating results for the third quarter ended September 30, 2023.

HIGHLIGHTS:

Operations

• Attributable gold production from continuing operations was 109,000 ounces. Attributable gold production guidance for 2023 is unchanged and is expected to be in the range of 410,000 to 470,000 ounces.
• Revenues from continuing operations were $224.5 million from sales of 116,000 ounces (106,000 ounces on an attributable basis) at an average realized gold price¹ of $1,937 per ounce.
• Cost of sales per ounce sold from continuing operations was $1,436, cash cost¹ per ounce sold from continuing operations was $1,400 and all-in-sustaining-cost¹ (“AISC”) per ounce sold from continuing operations was $1,975.
• The Company now expects cash costs¹ to be between $1,250 and $1,325 per ounce sold and AISC¹ to be between $1,750 and $1,825 per ounce sold for the year, an increase from prior guidance due to the impact of the security situation in Burkina Faso on the supply chain combined with continued elevated costs from the recent inflationary cycle in the industry.
• In health and safety, for the nine months ended September 30, 2023, the Company reported a DARTFR (days away, restricted, transferred duty frequency rate) of 0.36 and a TRIFR (total recordable injuries frequency rate) of 0.66, both with a decreasing trend since the last quarter.

Financial

• Net earnings (loss) attributable to equity holders¹ of $(0.8) million or $(0.00) per share and adjusted net loss attributable to equity holders¹ of $(4.0) million or $(0.01) per share.
• Net cash from operating activities was $37.5 million. Net cash from operating activities, before movements in non-cash working capital and non-current ore stockpiles¹ was $29.3 million.
• Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)¹from continuing operations was $61.8 million and adjusted EBITDA¹ was $57.8 million.
• The Company has available liquidity¹ of $1,001.8 million comprised of cash and cash equivalents of $548.9 million and the available balance of the secured revolving credit facility (“Credit Facility”) of $452.9 million as at September 30, 2023.

Côté Gold

• As of September 30, 2023, the Côté Gold Project was estimated to be 90.6% complete, with construction progress approximately 92% complete.
• On a 100% basis at the UJV level, the Côté Gold Project incurred project expenditures¹ of $317.3 million ($222.0 million at 70%) in the third quarter 2023.
• Since commencement of construction, $2.54 billion ($1.78 billion at 70%) of the planned $2.965 billion ($2.08 billion at 70%) of project expenditures has been incurred. The total expected project expenditures are expected to be in line with the planned $2.965 billion (± 1.5%) and the estimated remaining cost to complete the Côté Gold Project on a 100% basis is $425 million ($298 million at 70%) on an incurred basis assuming a USDCAD rate of 1.35 during the remainder of construction. A portion of the expenditures is expected to be incurred in 2024 during commissioning and ramp up.
• IAMGOLD is expected to fund $325 million during the remainder of construction based on its 60.3% ownership in the Côté Gold unincorporated joint venture.

Corporate

• On April 25, 2023, the Company completed the sale of its 90% interest in the Boto Gold Project in Senegal and its 100% interest in the early-stage exploration properties of Boto West, Senala West, Daorala and the vested interest in the Senala Option Earn-in Joint Venture, also in Senegal (“Senegal Assets”) for aggregate gross cash proceeds of $197.6 million. See “Bambouk Assets”. On October 26, 2023, the Company received $32.0 million in deferred consideration from the closing of the sale of Senegal Assets.
• On August 1, 2023, the Company entered into an agreement to sell its 100% interest in the Pitangui Project, a greenfield exploration property located in Brazil, as well as its interest in the Acurui Project, to Jaguar Mining Inc. (“Jaguar”) via a share purchase agreement. The Company received 6.3 million common shares from Jaguar for an aggregate value of $9.0 million. The Company will also retain a net smelter royalty on both projects.
• On September 21, 2023, the Company announced the retirement of Maryse Bélanger from the Board of Directors (the “Board”) for personal reasons and other commitments. Immediately following Ms. Bélanger’s retirement, the Board appointed David Smith as Chair of the Board.
• On September 27, 2023, Bruno Lemelin was appointed to the role of Chief Operating Officer, having served as SVP, Operations & Projects since March 2020.
• On November 9, 2023, the Company entered into a one year extension of its Credit Facility extending its maturity to January 31, 2026. As part of the extension, the Credit Facility was reduced to $425 million based on the Company’s requirements for a senior revolving facility for its overall business.
• On November 9, 2023, the Company announced the retirement of Ian Ashby from the Board, and the appointment of Anne Marie Toutant as an independent director.

“IAMGOLD finished the quarter with year-to-date production from continuing operations of 329,000 ounces, putting the company well on track to meet its annual production guidance of 410,000 to 470,000 ounces,” said Renaud Adams, President and Chief Executive Officer of IAMGOLD. “This performance has been driven by the continued resiliency of our Essakane operating teams as they manage the operation within a geopolitically challenging environment, as well as the continued dedication of the Westwood team as they rebuild and reopen mining areas underground. Despite these achievements, operating costs, particularly in Burkina Faso, remain high as price increases from the prior inflationary period are slow to decline and the higher cost of operating and moving goods within the country remain. At IAMGOLD, we always place the health and safety of our employees first, and we work continuously with a focus on our goal of Zero Harm^® – for the people and the places in which we operate.”

“At Côté Gold we are nearing the finish line of construction. Pre-commissioning teams are starting to receive hand-off of project elements from construction teams, as activities at site start the shift from major construction to finalization and commissioning. Construction at the end of September was 92% complete, putting the project on track for gold production in the first quarter of next year. It is an exciting time for IAMGOLD as this is a project that is critical for the repositioning of this company, as once online, IAMGOLD will have a significantly higher production base and lower cost profile, providing a strong foundation of cashflow and growth opportunities in Canada.”

QUARTERLY SUMMARY

The following table summarizes certain operating and financial results for the three months ended September 30, 2023 (Q3 2023), September 30, 2022 (Q3 2022) and the nine months ended September 30 (or YTD) 2023 and 2022 and certain measures of the Company’s financial position as at September 30, 2023 and December 31, 2022. Financial results of Rosebel include the one month period ended January 31, 2023, prior to the closing of the sale to Zijin Mining Group Co. Ltd. (“Zijin”) that was announced on October 18, 2022.

		Q3 2023			Q3 2022			YTD 2023			YTD 2022
Key Operating Statistics
Gold production – attributable (000s oz)
– Essakane		84			115			264			334
– Westwood		25			19			65			49
Total from continuing operations		109			134			329			383
– Rosebel		–			50			25			145
Total gold production – attributable (000s oz)		109			184			354			528
Gold sales – attributable (000s oz)
– Essakane		84			120			265			343
– Westwood		22			18			61			48
Total from continuing operations		106			138			326			391
– Rosebel		–			49			24			147
Total gold sales – attributable (000s oz)		106			187			350			538
Cost of sales1 ($/oz sold) – attributable
– Essakane	$	1,417		$	954		$	1,249		$	860
– Westwood		1,506			1,817			1,674			2,043
Total from continuing operations	$	1,436		$	1,067		$	1,329		$	1,007
– Rosebel		–			1,346			949			1,355
Total cost of sales1 ($/oz sold) – attributable	$	1,436		$	1,140		$	1,303		$	1,102
Cash costs2 ($/oz sold) – attributable
– Essakane	$	1,372		$	952		$	1,201		$	858
– Westwood		1,506			1,803			1,667			2,015
Total from continuing operations	$	1,400		$	1,063		$	1,288		$	1,001
– Rosebel		–			1,305			949			1,316
Total cash costs2 ($/oz sold) – attributable	$	1,400		$	1,126		$	1,265		$	1,087
AISC2 ($/oz sold) – attributable
– Essakane	$	1,798		$	1,248		$	1,510		$	1,171
– Westwood		2,138			2,208			2,486			2,541
Total from continuing operations	$	1,975		$	1,448		$	1,803		$	1,439
– Rosebel		–			1,873			1,358			1,845
Total AISC2 ($/oz sold) – attributable	$	1,975		$	1,559		$	1,773		$	1,550
Average realized gold price2 ($/oz)
– Continued operations	$	1,937		$	1,677		$	1,934		$	1,745
– Discontinued operations		–			1,726			1,905			1,824
Total average realized gold price2 ($/oz)	$	1,937		$	1,690		$	1,933		$	1,766

1. Throughout this news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the consolidated interim financial statements.
2. This is a non-GAAP measure. See “Non-GAAP Financial Measures” disclosure at the end of this news release for a description and calculation of these measures.

Read More:

IBF4