IAMGOLD Announces Amended and Upsized Credit Facility
IAMGOLD has announced significant amendments to its secured revolving credit facility. The facility has been upsized from $425 million to $650 million and extended to a four-year term, maturing on December 20, 2028. The expanded facility will support general working capital and provide flexibility for debt cost reduction in 2025.
The company expects to generate substantial cashflows after mid-2024 following the termination of gold prepayment arrangements, supported by strong mine-site free cashflow from Essakane, Westwood, and Côté Gold operations. Côté Gold is anticipated to reach nameplate production later in 2025.
The facility's interest rate margin varies based on the company's Net Debt to EBITDA ratio, with SOFR advances ranging from 2.75% to 3.75%. The facility is secured by company assets, subsidiary guarantees, and share pledges.
IAMGOLD ha annunciato modifiche significative alla propria linea di credito rotativa garantita. La linea è stata aumentata da 425 milioni a 650 milioni di dollari e prorogata a un termine di quattro anni, con scadenza il 20 dicembre 2028. La struttura ampliata supporterà il capitale circolante generale e offrirà flessibilità per la riduzione dei costi del debito nel 2025.
L'azienda prevede di generare flussi di cassa sostanziali dopo metà del 2024, a seguito della cessazione degli accordi di prepagamento dell'oro, sostenuta da forti flussi di cassa liberi dai siti minerari di Essakane, Westwood e Côté Gold. Si prevede che Côté Gold raggiunga la produzione nominale entro la fine del 2025.
Il margine di interesse della linea varia in base al rapporto tra il debito netto dell'azienda e l'EBITDA, con avanzamenti SOFR che vanno dal 2,75% al 3,75%. La struttura è garantita da beni aziendali, garanzie delle filiali e pegni sulle azioni.
IAMGOLD ha anunciado enmiendas significativas a su línea de crédito rotativa garantizada. La línea ha sido aumentada de 425 millones a 650 millones de dólares y extendida a un plazo de cuatro años, que vencerá el 20 de diciembre de 2028. La línea ampliada apoyará el capital de trabajo general y brindará flexibilidad para la reducción de costos de deuda en 2025.
Se espera que la compañía genere flujos de caja sustanciales después de mediados de 2024, tras la terminación de los acuerdos de prepago de oro, respaldados por un fuerte flujo de caja libre de las operaciones de Essakane, Westwood y Côté Gold. Se anticipa que Côté Gold alcanzará la producción nominal a finales de 2025.
El margen de tasa de interés de la línea varía según la relación de la deuda neta de la empresa al EBITDA, con avances SOFR que van del 2,75% al 3,75%. La línea está garantizada por activos de la empresa, garantías de subsidiarias y pignoraciones de acciones.
IAMGOLD는 보장된 회전 신용시설에 대한 중요한 수정 사항을 발표했습니다. 이 시설은 4억 2500만 달러에서 6억 5000만 달러로 증가했으며, 2028년 12월 20일 만료되는 4년 기한으로 연장되었습니다. 확대된 시설은 일반 운전 자본을 지원하고 2025년 부채 비용 감소를 위한 유연성을 제공할 것입니다.
회사는 2024년 중반 이후 금 관련 선금 지급 계약 종료에 따라 상당한 현금 흐름을 창출할 것으로 예상하고 있으며, 이는 Essakane, Westwood 및 Côté Gold 사업장에서 나오는 강력한 현장 자유 현금 흐름에 의해 지원됩니다. Côté Gold는 2025년 후반에 명판 생산에 도달할 것으로 예상됩니다.
시설의 이자율 마진은 회사의 순부채 대비 EBITDA 비율에 따라 달라지며, SOFR 대출은 2.75%에서 3.75%까지 다양합니다. 이 시설은 회사 자산, 자회사 보증 및 주식 담보로 보장됩니다.
IAMGOLD a annoncé des modifications significatives de sa ligne de crédit renouvelable sécurisée. La ligne a été augmentée de 425 millions à 650 millions de dollars et prolongée pour un terme de quatre ans, arrivant à échéance le 20 décembre 2028. La ligne élargie soutiendra le fonds de roulement général et offrira une flexibilité pour la réduction des coûts de la dette en 2025.
La société s'attend à générer des flux de trésorerie substantiels après la mi-2024, suite à la résiliation des accords de prépaiement de l'or, soutenue par de forts flux de trésorerie disponibles des sites miniers d'Essakane, Westwood et Côté Gold. On prévoit que Côté Gold atteindra sa production nominale fin 2025.
Le taux d'intérêt de la ligne varie en fonction du ratio de la dette nette de l'entreprise par rapport à l'EBITDA, avec des avances SOFR variant de 2,75 % à 3,75 %. La ligne est garantie par des actifs de l'entreprise, des garanties de filiales et des nantissements d'actions.
IAMGOLD hat bedeutende Änderungen an seiner besicherten revolvierenden Kreditfazilität angekündigt. Die Fazilität wurde von 425 Millionen auf 650 Millionen US-Dollar erhöht und auf einen Zeitraum von vier Jahren bis zum 20. Dezember 2028 verlängert. Die erweiterte Fazilität wird das allgemeine Betriebskapital unterstützen und Flexibilität zur Reduzierung der Schuldenkosten im Jahr 2025 bieten.
Das Unternehmen erwartet, nach der Beendigung der Gold-Vorauszahlungsvereinbarungen nach Mitte 2024 erhebliche Cashflows zu generieren, unterstützt durch starke freie Cashflows von den Bergwerken Essakane, Westwood und Côté Gold. Es wird erwartet, dass Côté Gold Ende 2025 die Produktionskapazität erreicht.
Der Zinssatz der Fazilität variiert je nach Verhältnis von Nettoverschuldung zu EBITDA des Unternehmens, wobei SOFR-Vorschüsse zwischen 2,75 % und 3,75 % liegen. Die Fazilität ist durch Unternehmensvermögen, Garantien von Tochtergesellschaften und Aktienhypotheken besichert.
- Increased credit facility from $425M to $650M
- Extended facility maturity to December 2028
- Expected strong cashflow generation post-mid-2024
- Côté Gold projected to achieve nameplate production in 2025
- Enhanced financial flexibility for debt restructuring
- Current high debt levels requiring de-leveraging
- Interest rate margin up to 3.75% above market rates
- Significant asset collateralization required for facility
Insights
The amended credit facility represents a substantial 52.9% increase from
The extended maturity to December 2028 provides long-term stability, while the variable interest rate structure (SOFR + 2.75-3.75%) links borrowing costs to the company's leverage metrics. Looking ahead, multiple catalysts could improve IAMGOLD's financial position: the termination of gold prepayment arrangements mid-2025, expected strong free cash flow from three operating mines and Côté Gold reaching nameplate production. These factors should support deleveraging initiatives and optimize the capital structure.
The secured nature of the facility, backed by real assets and subsidiary guarantees, suggests lenders' confidence in IAMGOLD's asset quality and future prospects. This expanded facility provides a robust liquidity buffer and enhanced financial optionality for strategic initiatives in 2025.
The timing of this credit facility expansion aligns perfectly with IAMGOLD's operational trajectory. The Côté Gold project, approaching nameplate production in 2025, represents a important inflection point for the company's production profile. The combination of established cash flow from Essakane and Westwood operations, plus the anticipated ramp-up at Côté Gold, creates a compelling operational foundation that justified lenders' willingness to increase exposure.
The termination of gold prepayment arrangements in mid-2025 will unlock significant cash flow potential, eliminating a key constraint on revenue recognition. This operational confluence - three producing assets generating free cash flow simultaneously - should materially strengthen IAMGOLD's financial position and support debt reduction initiatives.
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario--(Newsfile Corp. - December 23, 2024) - IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) ("IAMGOLD" or the "Company") is pleased to announce that the Company and its syndicate of lenders have executed an amendment to its existing secured revolving credit facility (the "Facility"). Under the amendment, the term has been extended to four years now maturing on December 20, 2028 and the Facility size has been increased from
"We would like to thank our lenders for their continued support and confidence in IAMGOLD," commented Renaud Adams, President and Chief Executive Officer of IAMGOLD. "The upsize to the credit facility will position the company well as it provides additional flexibility to potentially lower the cost of our debt, as the make-whole premium expires on our 2nd Lien Term Loan in May and assuming no unforeseen changes in the operating or macroeconomic environment. As we look into next year, IAMGOLD is positioned to generate significant cashflows following the termination of the gold prepayment arrangements mid-year, coupled with the expectation of strong mine-site free cashflow at Essakane, Westwood, and Côté Gold - which is expected to achieve nameplate production later in 2025. Together, this will allow IAMGOLD to begin the important process of de-levering the balance sheet and put in place a more efficient capital structure."
The Facility provides for an interest rate margin above market rates (ex. the Secured Overnight Financing Rate ("SOFR"), Canadian Overnight Repo Rate Average, banker's acceptance prime rate and base rate advances) which vary, together with fees related thereto, according to the total Net Debt to EBITDA ratio of the Company. The margin on SOFR advances will range from
The terms and conditions of the Facility are set out in the Second Amended and Restated Credit Agreement that will be filed on SEDAR. National Bank acted as administrative agent, and along with Royal Bank of Canada as Co-Lead Arrangers and Joint Bookrunners.
About IAMGOLD
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 strive for the goal of 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).
IAMGOLD Contact Information
Graeme Jennings, Vice President, Investor Relations
Tel: 416 360 4743 | Mobile: 416 388 6883
Toll-free: 1 888 464 9999
info@iamgold.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
All information included or incorporated by reference in this news release, including any information as to the Company's vision, strategy, future financial or operating performance and other statements that express management's expectations or estimates of future performance or impact, including statements in respect of the prospects and/or development of the Company's projects, other than statements of historical fact, constitutes forward-looking information or forward-looking statements within the meaning of applicable securities laws (collectively referred to herein as "forward-looking statements") and such forward-looking statements are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements are generally identifiable by the use of words such as "may", "will", "should", "would", "could", "continue", "expect", "budget", "aim", "can", "focus", "forecast", "anticipate", "estimate", "believe", "intend", "plan", "schedule", "guidance", "outlook", "potential", "seek", "targets", "cover", "strategy", "during", "ongoing", "subject to", "future", "objectives", "opportunities", "committed", "prospective", "likely", "progress", "strive", "sustain", "effort", "extend", "remain", "pursue", "predict", or "project" or the negative of these words or other variations on these words or comparable terminology.
For example, forward-looking statements include, but are not limited to, statements with respect to: the estimation of mineral reserves and mineral resources and the realization of such estimates; operational and financial performance including the Company's guidance for and actual results of production, ESG (including environmental) performance, costs and capital and other expenditures such as exploration and including depreciation expense and effective tax rate; the updated life-of-mine plan, ramp-up assumptions and other project metrics including operating costs in respect to the Côté Gold Mine; expected production of the Côté Gold Mine, expected benefits from the operational improvements and de-risking strategies implemented or to be implemented by the Company; mine development activities; the Company's capital allocation and liquidity; the announced intention to repurchase the Transferred Interests in the Côté Gold Mine, the composition of the Company's portfolio of assets including its operating mines, development and exploration projects; the completion of the sale of the Bambouk Assets; permitting timelines and the expected receipt of permits; inflation, including global inflation and inflationary pressures; global supply chain constraints; environmental verification, biodiversity and social development projects; plans, targets, proposals and strategies with respect to sustainability, including third party data on which the Company relies, and their implementation; commitments with respect to sustainability and the impact thereof, including the Company's "Zero Harm" vision; commitments with respect to greenhouse gas emissions and decarbonization initiatives (eg. interim target of achieving
The Company cautions the reader that forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, financial, operational and other risks, uncertainties, contingencies and other factors, including those described below, which could cause actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed or implied by such forward-looking statements and, as such, undue reliance must not be placed on them. Forward-looking statements are also based on numerous material factors and assumptions, including as described in this news release, including with respect to: the Company's present and future business strategies; operations performance within expected ranges; anticipated future production and cash flows; local and global economic conditions and the environment in which the Company will operate in the future; the price of precious metals, other minerals and key commodities; projected mineral grades; international exchanges rates; anticipated capital and operating costs; the availability and timing of required governmental and other approvals for the construction of the Company's projects.
Risks, uncertainties, contingencies and other factors that could cause actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed or implied by such forward-looking statements include, without limitation: the ability of the Company to complete the repurchase of the Transferred Interest in the Côté Gold Mine; the ability of the Company to complete the sales of the remaining Bambouk Assets; the Company's business strategies and its ability to execute thereon; the ability of the Company to complete pending transactions; the development and execution of implementing strategies to meet the Company's sustainability vision and targets; security risks, including civil unrest, war or terrorism and disruptions to the Company's supply chain and transit routes as a result of such security risks, particularly in Burkina Faso and the Sahel region surrounding the Company's Essakane mine; the availability of labour and qualified contractors; the availability of key inputs for the Company's operations and disruptions in global supply chains; the volatility of the Company's securities; litigation; contests over title to properties, particularly title to undeveloped properties; mine closure and rehabilitation risks; management of certain of the Company's assets by other companies or joint venture partners; the lack of availability of insurance covering all of the risks associated with a mining company's operations; unexpected geological conditions; competition and consolidation in the mining sector; the profitability of the Company being highly dependent on the condition and results of the mining industry as a whole, and the gold mining industry in particular; changes in the global prices for gold, and commodities used in the operation of the Company's business (included, but not limited to diesel, fuel oil and electricity); legal, litigation, legislative, political or economic risks and new developments in the jurisdictions in which the Company carries on business; changes in taxes, including mining tax regimes; the failure to obtain in a timely manner from authorities key permits, authorizations or approvals necessary for transactions, exploration, development or operation, operating or technical difficulties in connection with mining or development activities, including geotechnical difficulties and major equipment failure; the inability of the Company to participate in any gold price increase above the cap in any collar transaction entered into in conjunction with certain gold sale prepayment arrangements; the availability of capital; the level of liquidity and capital resources; access to capital markets and financing; the Company's level of indebtedness; the Company's ability to satisfy covenants under its credit facilities; changes in interest rates; adverse changes in the Company's credit rating; the Company's choices in capital allocation; effectiveness of the Company's ongoing cost containment efforts; the Company's ability to execute on de-risking activities and measures to improve operations; availability of specific assets to meet contractual obligations; risks related to third-party contractors, including reduced control over aspects of the Company's operations and/or the failure and/or the effectiveness of contractors to perform; risks arising from holding derivative instruments; changes in U.S. dollar and other currency exchange rates or gold lease rates; capital and currency controls in foreign jurisdictions; assessment of carrying values for the Company's assets, including the ongoing potential for material impairment and/or write-downs of such assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; the fact that reserves and resources, expected metallurgical recoveries, capital and operating costs are estimates which may require revision; the presence of unfavourable content in ore deposits, including clay and coarse gold; inaccuracies in life of mine plans; failure to meet operational targets; equipment malfunctions; information systems security threats and cybersecurity; laws and regulations governing the protection of the environment (including greenhouse gas emission reduction and other decarbonization requirements and the uncertainty surrounding the interpretation of omnibus Bill C-59 and the related amendments to the Competition Act (Canada)); employee relations and labour disputes; the maintenance of tailings storage facilities and the potential for a major spill or failure of the tailings facilities due to uncontrollable events, lack of reliable infrastructure, including access to roads, bridges, power sources and water supplies; physical and regulatory risks related to climate change; unpredictable weather patterns and challenging weather conditions at mine sites; disruptions from weather related events resulting in limited or no productivity such as forest fires, flooding, heavy snowfall, poor air quality, and extreme heat or cold; attraction and retention of key employees and other qualified personnel; availability and increasing costs associated with mining inputs and labour, negotiations with respect to new, reasonable collective labour agreements and/or collective bargaining agreements may not be agreed to; the ability of contractors to timely complete projects on acceptable terms; the relationship with the communities surrounding the Company's operations and projects; indigenous rights or claims; illegal mining; the potential direct or indirect operational impacts resulting from external factors, including infectious diseases, pandemics, or other public health emergencies; and the inherent risks involved in the exploration, development and mining business generally. Please see the Company's AIF or Form 40-F available on www.sedarplus.ca or www.sec.gov/edgar for a comprehensive discussion of the risks faced by the Company and which may cause actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed or implied by forward-looking statements.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as required by applicable law.
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FAQ
What is the new size of IAMGOLD's (IAG) credit facility after the December 2023 amendment?
When will IAMGOLD's (IAG) amended credit facility mature?
What is the interest rate margin range for IAMGOLD's (IAG) new credit facility?
When is IAMGOLD's (IAG) Côté Gold expected to reach nameplate production?
What are IAMGOLD's (IAG) plans for debt management in 2025?
