IAMGOLD Announces Closing of Previously Announced Sale of Exploration and Development Assets in Guinea

Rhea-AI Summary

IAMGOLD (TSX: IMG) (NYSE: IAG) has announced the completion of its Guinea Assets sale, including the Karita Gold Project. This transaction is part of a larger deal announced in December 2022 with Managem to divest exploration and development projects across Senegal, Guinea, and Mali for approximately $282 million (pre-tax). Following the April 2023 closure of the Senegal assets sale, which included the 90% stake in Boto Gold Project, the only remaining transaction pending is the sale of the Diakha-Siribaya Gold Project in Mali.

Positive

• Part of a larger $282 million asset sale strategy
• Successfully completed second phase of three-part divestment plan

Negative

• Reduction in exploration and development portfolio
• Decreased geographic diversification

Insights

Financial Analyst

The closure of IAMGOLD's Guinea assets sale represents another strategic step in the company's $282 million asset divestment program across West Africa. This transaction, following the successful completion of the Senegal assets sale in April 2023, demonstrates effective execution of IAMGOLD's portfolio optimization strategy. The company is streamlining operations by divesting non-core assets, which should strengthen its balance sheet and allow focus on core operations like the Côté Gold project in Ontario. The staged completion of these sales (Senegal, Guinea and pending Mali) helps manage transaction risks and ensures steady cash inflow. While the specific value of the Guinea portion isn't disclosed, the overall deal structure appears well-conceived, providing IAMGOLD with significant pre-tax proceeds to potentially reduce debt or fund growth initiatives. For investors, this represents positive progress in the company's strategic repositioning, though the full impact will be better assessed once the Mali transaction closes.

Mining Industry Specialist

The divestment of the Karita Gold Project and associated Guinea exploration assets reflects the broader industry trend of major mining companies optimizing their portfolios by concentrating on jurisdictions with lower operational risks. Managem, as the acquirer, gains a foothold in Guinea's prospective gold sector, while IAMGOLD reduces its exposure to challenging West African jurisdictions. The staged approach to completing these multi-country asset sales demonstrates sophisticated deal structuring, considering the complexity of mining rights transfers in different jurisdictions. For IAMGOLD, this transaction helps consolidate its operational footprint and reduces the management bandwidth required for early-stage projects, allowing greater focus on advancing near-term production assets. This strategic realignment positions IAMGOLD more favorably in the North American mining landscape, where investors typically assign higher valuations due to perceived lower geopolitical risks.

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 it has closed the sale of its 100% interest in the Karita Gold Project ("Karita") and associated exploration assets in Guinea (together, the "Guinea Assets").

The sale of the Guinea Assets is part of the previously announced transactions, as announced on December 20, 2022, with Managem (CAS:MNG) to sell the Company's interests in its exploration and development projects in Senegal, Guinea and Mali for aggregate consideration of approximately $282 million (pre-tax). Subsequent to the announcement, on April 26, 2023, IAMGOLD announced the closing of the sale of its interests in Senegal, including its 90% interest in the Boto Gold Project and 100% exploration interests within the country. With today's announcement the remaining transaction yet to close is associated with the Diakha-Siribaya Gold Project and associated exploration assets in Mali.

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 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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234976

FAQ

What is the total value of IAMGOLD's asset sale agreement with Managem?

IAMGOLD's asset sale agreement with Managem is valued at approximately $282 million (pre-tax), covering assets in Senegal, Guinea, and Mali.

Which assets are included in IAMGOLD's (IAG) Guinea sale?

The Guinea assets sale includes IAMGOLD's 100% interest in the Karita Gold Project and associated exploration assets in Guinea.

What remains to be sold in IAMGOLD's (IAG) asset sale agreement with Managem?

The Diakha-Siribaya Gold Project and associated exploration assets in Mali are the remaining assets yet to be sold under the agreement.

When did IAMGOLD (IAG) complete the Senegal assets sale?

IAMGOLD completed the sale of its Senegal assets, including the 90% interest in the Boto Gold Project, on April 26, 2023.