IAMGOLD Announces Commercial Production at Côté Gold

Rhea-AI Summary

IAMGOLD (NYSE: IAG) announces that its Côté Gold Mine in Ontario, Canada, has achieved commercial production. The mine, operated as a joint venture with Sumitomo Metal Mining Co., , reached this milestone by operating at an average of 60% of its 36,000 tpd nameplate throughput for 30 consecutive days.

CEO Renaud Adams highlighted the achievement and the team's efforts in ramping up operations since the first gold pour on March 31, 2024. The company aims to improve plant availability and reach 90% of nameplate throughput by year-end. IAMGOLD plans to repurchase a 9.7% interest in Côté in November, increasing its ownership to 70%.

The company will report its Q2 2024 results on August 8, 2024, followed by a conference call on August 9, 2024.

Positive

• Côté Gold Mine achieved commercial production, operating at 60% of nameplate throughput
• All major equipment demonstrated capability to operate at or above design levels
• IAMGOLD plans to repurchase 9.7% interest in Côté, increasing ownership to 70%
• Company completed equity financing in May, strengthening financial position

Negative

• availability of dry-side processing facilities, particularly in crushing and screening circuits
• Multi-day shutdown planned in September to address wear and tear issues

Mining Industry Analyst

IAMGOLD's announcement of commercial production at Côté Gold marks a significant milestone for the company and the Canadian mining sector. This development is highly positive for IAMGOLD's future prospects and could potentially reshape its market position.

The achievement of commercial production, defined as 30 consecutive days of operations at 60% of nameplate capacity, demonstrates the mine's operational stability. This is particularly impressive given the complexity of modern mining operations and the scale of Côté Gold, which is poised to become one of Canada's largest gold mines.

Key points to consider:

• The company's goal to reach 90% of nameplate throughput by year-end is ambitious but achievable, given the current progress.
• The planned repurchase of 9.7% interest in Côté will increase IAMGOLD's exposure to this asset, potentially boosting future revenues and profitability.
• The multi-day shutdown in September for maintenance is a proactive measure that should support long-term operational efficiency.

While the news is overwhelmingly positive, investors should monitor the company's ability to address challenges in the crushing and screening circuits, as these could impact production targets if not resolved effectively.

Financial Analyst

The commencement of commercial production at Côté Gold is a pivotal financial event for IAMGOLD. This development signals the transition from a capital-intensive construction phase to a revenue-generating operational phase, which should significantly impact the company's financial profile.

Key financial implications include:

• Revenue growth: As production ramps up, IAMGOLD's top line should see substantial improvement in the coming quarters.
• Cash flow enhancement: The shift to commercial production should positively impact operating cash flows, potentially improving the company's liquidity position.
• Debt servicing capacity: Increased cash generation could enhance IAMGOLD's ability to manage its debt obligations more effectively.
• Capital allocation: The planned repurchase of 9.7% interest in Côté demonstrates confidence in the project and could provide better returns for shareholders in the long run.

The recent equity financing has strengthened IAMGOLD's balance sheet, providing flexibility for the ownership increase in Côté. However, investors should closely monitor production ramp-up progress and associated costs, as any delays or unexpected expenses could impact near-term financial performance.

Overall, this news positions IAMGOLD for potentially stronger financial performance, subject to gold price movements and successful execution of their operational plans.

Toronto, Ontario--(Newsfile Corp. - August 2, 2024) - IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) ("IAMGOLD" or the "Company") is pleased to announce that the Côté Gold Mine ("Côté Gold" or "Côté") has reached commercial production. Côté Gold is located in Ontario, Canada and is operated as a joint venture between IAMGOLD, as the operator, and Sumitomo Metal Mining Co., Ltd. ("Sumitomo"). Commercial production is defined as the achievement of reaching a minimum of 30 consecutive days of operations during which the mill operated at an average of 60% of nameplate throughput of 36,000 tpd.

"I would like to commend our teams at Côté Gold who have come together to achieve another great milestone as we progress and ramp up what we believe will be one of Canada's largest gold mines and a model for modern mining in Canada," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "Since achieving the first pour of gold on March 31, 2024, our teams have spent the last four months methodically and iteratively testing and ramping up all facets of the mine. This process has required remarkable commitment, ingenuity and teamwork to bring all the systems online together to achieve this milestone."

"With commercial production behind us we continue to focus on improving plant availability towards our goal of Côté exiting the year at 90% of nameplate throughput. Further, in May we completed our equity financing which has positioned us well to repurchase the 9.7% interest in Côté this November and return to 70% ownership thereby gaining more exposure to this foundational and keystone asset for the benefit of all our stakeholders."

The ramp up of the plant continues to progress, with all major equipment demonstrating the capability to operate at or above design levels. After the initial pour, focus early in the second quarter was on testing the processing circuits to handle nameplate loads. The primary components of the overall plant responded well achieving at or above nameplate throughput, though availability of the dry-side of the processing facilities was limited, in particular in the crushing and screening circuits. The Company is planning a multi-day shutdown in September to address and mitigate the impact of traditional wear and tear on availability of the circuits, in support of the goal to ramp up throughput to 90% by the end of the year.

IAMGOLD will be reporting its second quarter 2024 operating and financial results after market hours on Thursday, August 8, 2024, followed by a conference call with senior management to discuss the operating performance and financial results on Friday, August 9, 2024, at 8:30 a.m. (Eastern Time). Details of the conference call are available on the company's website at www.iamgold.com.

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 highly prospective mining districts. IAMGOLD employs approximately 3,700 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.

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

All material information on IAMGOLD can be found at http://www.sedarplus.ca or at www.sec.gov.

Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le www.iamgold.com/French/accueil/default.aspx.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/218633

FAQ

When did IAMGOLD's Côté Gold Mine achieve commercial production?

IAMGOLD announced that the Côté Gold Mine achieved commercial production on August 2, 2024.

What is the nameplate throughput capacity of Côté Gold Mine?

The nameplate throughput capacity of Côté Gold Mine is 36,000 tonnes per day (tpd).

What is IAMGOLD's production target for Côté Gold Mine by the end of 2024?

IAMGOLD aims to ramp up Côté Gold Mine's throughput to 90% of nameplate capacity by the end of 2024.

When will IAMGOLD (IAG) report its Q2 2024 financial results?

IAMGOLD (IAG) will report its Q2 2024 financial results after market hours on Thursday, August 8, 2024.