IAMGOLD Reports First Quarter 2024 Results
IAMGOLD (NYSE: IAG) reported strong financial and operating results for Q1 2024, with attributable gold production of 151,000 ounces. The highlight was the first gold pour at the Côte Gold mine, marking a significant milestone. Operating guidance for the year remains unchanged, with expected gold production between 430,000 to 490,000 ounces. Revenues were $338.9 million, with an average realized gold price of $2,077 per ounce. The company reported positive EBITDA of $154.1 million and mine-site free cash flow of $46.2 million. IAMGOLD's available liquidity stands at $693.8 million. In terms of health and safety, the company reported improved DARTFR and TRIFR rates. The Côte Gold operation is expected to achieve commercial production in Q3 2024, positioning it among the top gold mines in Canada.
Attributable gold production for Q1 2024 was 151,000 ounces, with strong performance at Essakane and Westwood.
Revenues were $338.9 million, with an average realized gold price of $2,077 per ounce.
EBITDA was $154.1 million, and adjusted net earnings per share were $0.11.
Net cash from operating activities was $77.1 million, with available liquidity of $693.8 million.
The first gold pour at the Côte Gold mine was a major milestone, with commercial production expected in Q3 2024.
Cost of sales per ounce sold was $1,056, cash cost per ounce sold was $1,053, and AISC per ounce sold was $1,493.
Net earnings and adjusted net earnings per share attributable to equity holders were $0.11.
Mine-site free cash flow, excluding Côte Gold, was $46.2 million.
Cash costs at Côte Gold are expected to be in the range of approximately $700 to $800 per ounce sold as throughput increases.
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario--(Newsfile Corp. - May 9, 2024) - IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) ("IAMGOLD" or the "Company") today reported its financial and operating results for the first quarter ended March 31, 2024.
"IAMGOLD started 2024 with very strong performance across its operations, projects and in health and safety," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "At its operations, the Company reported attributable production of 151,000 ounces. This outperformance was driven by stable operations and positive grade reconciliation at Essakane, coupled with Westwood achieving its highest quarter of production since the restart of the mine in 2021. Looking forward, Essakane and Westwood are well positioned to achieve their guidance targets this year, and I want to thank both teams for the commitment to Zero Harm®, accountability and performance."
"The highlight of the quarter, and a major milestone for IAMGOLD was the announcement of the first gold pour at the Côté Gold mine," continued Mr. Adams. "This achievement represents the culmination of over 15 million hours of work and over four years of construction to bring the project online within the revised budget - an incredible effort for the team on the ground. While cause for celebration, the first gold achievement is but the first step in the road to bring Côté to full design capacity. The ramp up of the operation is progressing well, with all major equipment - including crushers, high pressure grinding rolls ("HPGR"), ball mill, cyclones, conveyors, piping, electrical connections and inter-plant programming communications - demonstrating their capability to operate at planned throughput levels. The key for Cote during this period is to steadily improve the plant availability and stability. We are seeing improvements every day and are confident in our estimate of commercial production in the third quarter 2024. This timeline will set us up well towards the goal of reaching
HIGHLIGHTS:
Operating and Financial
Attributable gold production was 151,000 ounces. Essakane had a strong first quarter with attributable production of 118,000 ounces, mainly due to higher grades, Westwood achieved its highest quarterly production since restarting with production of 32,000 ounces and initial attributable production was achieved at Côté Gold of 1,000 ounces.
Operating guidance for the year is unchanged. Attributable gold production, excluding Côté Gold, for 2024 is expected to be in the range of 430,000 to 490,000 ounces, with cash costs per ounce sold for Essakane and Westwood to be between
$1,280 and$1,400 per ounce sold and AISC expected to be in the range of$1,780 t o$1,940 per ounce sold.Revenues were
$338.9 million from sales of 163,000 ounces (150,000 ounces on an attributable basis) at an average realized gold price1 of$2,077 per ounce.Cost of sales per ounce sold was
$1,056 , cash cost1 per ounce sold was$1,053 and all-in-sustaining-cost1 ("AISC") per ounce sold was$1,493 (excluding Côté Gold).Net earnings and adjusted net earnings per share attributable to equity holders1 of
$0.11 and$0.11 , respectively.Net cash from operating activities was
$77.1 million . Net cash from operating activities, before movements in working capital and non-current ore stockpiles1 was$142.8 million .Earnings before interest, income taxes, depreciation and amortization ("EBITDA")1 was
$154.1 million and adjusted EBITDA1 was$152.5 million .Mine-site free cash flow1, excluding Côté Gold, was
$46.2 million .The Company has available liquidity1 of
$693.8 million , mainly comprised of cash and cash equivalents of$291.2 million and the available balance of the secured revolving credit facility ("Credit Facility") of$402.3 million as at March 31, 2024.In health and safety, for the quarter ended March 31, 2024, the Company reported a DARTFR (days away, restricted, transferred duty frequency rate) of 0.53, an improved trend since last year and a TRIFR (total recordable injuries frequency rate) of 0.61, an improved trend since last year.
On April 19, 2024, the Company received an updated credit rating from Standard and Poor's which upgraded the corporate credit rating from CCC+ to B- with a stable outlook. This compares with the Company's existing corporate credit ratings from Fitch and Moody's of B- and B3 respectively.
Côté Gold
The first gold pour was completed on March 31, 2024, with the crushing, HPGR and processing circuits performing within expectations, including power consumption. Construction is also substantially complete and the construction teams have been demobilized with a successful handover to the operations team. Operations are scheduled to continue to ramp-up in the second quarter 2024 and commercial production is expected to be achieved during the third quarter 2024. The Company expects the Côté Gold operation to exit the year at approximately
90% of nameplate throughput.Operating guidance for Côté Gold is unchanged, with 2024 production (on a
100% basis) expected to be between 220,000 and 290,000 ounces for the year (132,000 and 174,000 ounces on a60.3% basis for IAMGOLD). As Côté Gold achieves90% 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 t o$800 per ounce sold and AISC of$1,100 t o$1,200 per ounce sold.On a
100% basis at the UJV level, the Côté Gold Project incurred project expenditures1 of$151.7 million in the first quarter 2024. Since commencement of construction,$2.93 5 billion of the planned$2.96 5 billion of project expenditures has been incurred up to achievement of first gold. Remaining project expenditures post first gold are estimated to be$67 million ±5% , in line with guidance.IAMGOLD will continue to fund
60.3% of the operating costs and capital expenditures and will receive60.3% of the gold production. See "Côté Gold".
Corporate
On April 4, 2024, the Company announced that it entered into a gold prepay arrangement and a partial amendment to one of its existing gold prepayment arrangements. The net result of these arrangements is the effective transition of the cash impact of the current gold delivery obligations out of the second quarter of 2024 into the same period in the following year, increasing cashflow in the second quarter 2024 by approximately
$73.6 million assuming gold prices at the time of the arrangement. See "Liquidity and Capital Resources".On February 15, 2024, the Company announced that Murray Suey has been appointed to the Company's Board of Directors effective immediately. Mr. Suey has also been appointed as the Chair of the Audit and Finance Committee.
On February 13, 2024, the Company acquired all of the issued and outstanding common shares of Vanstar for consideration of approximately 12.0 million common shares of the Company. Vanstar owned a
25% interest in the Nelligan Gold Project ("Nelligan") in Quebec, Canada. With the acquisition of Vanstar complete, the Company now owns a100% interest in Nelligan.On February 27, 2024, the Company announced that it had completed the acquisition of all the outstanding common shares of EURO Ressources S.A., following the approval by the Autorité des Marchés Financiers in France on January 23, 2024. IAMGOLD France acquired the remaining outstanding common shares of EURO that IAMGOLD France did not already own for cash consideration of €3.50 per share for an aggregate consideration of €21.9 million (
$23.7 million ), followed immediately by a "squeeze-out" under French law and the subsequent delisting of Euro Ressources from the Euronext Paris stock exchange.
QUARTERLY REVIEW
For more details and the Company's overall outlook for 2024, see "Outlook", and for individual mine performance, see "Quarterly Updates". The following table summarizes certain operating and financial results for the three months ended March 31, 2024 (Q1 2024) and March 31, 2023 (Q1 2023) and certain measures of the Company's financial ("discontinued operations") position as at December 31, 2023, and March 31, 2023. Financial results of Rosebel include the one-month period ended January 31, 2023, prior to the closing of the sale to Zijin.
| Q1 2024 | Q1 2023 | |||||
| Key Operating Statistics ($ millions from continuing operations) | ||||||
| Gold production – attributable (000s oz) | ||||||
| - Essakane | 118 | 92 | ||||
| - Westwood | 32 | 21 | ||||
| Subtotal | 150 | 113 | ||||
| - Côté Gold | 1 | — | ||||
| Total gold production – attributable (000s oz) | 151 | 113 | ||||
| Gold sales – attributable (000s oz) | ||||||
| - Essakane | 117 | 88 | ||||
| - Westwood | 33 | 21 | ||||
| Subtotal | 150 | 109 | ||||
| - Côté Gold | — | — | ||||
| Total gold sales – attributable (000s oz) | 150 | 109 | ||||
| Cost of sales1 ($/oz sold) – attributable | ||||||
| - Essakane | $ | 1,004 | $ | 1,063 | ||
| - Westwood | 1,243 | 1,657 | ||||
| Subtotal | $ | 1,056 | $ | 1,176 | ||
| - Côté Gold | — | — | ||||
| Total cost of sales1 ($/oz sold) – attributable | $ | 1,056 | $ | 1,176 | ||
| Cash costs2 ($/oz sold) – attributable | ||||||
| - Essakane | $ | 1,002 | $ | 964 | ||
| - Westwood | 1,236 | 1,646 | ||||
| Subtotal | $ | 1,053 | $ | 1,094 | ||
| - Côté Gold | — | — | ||||
| Total cash costs2 ($/oz sold) – attributable | $ | 1,053 | $ | 1,094 | ||
| AISC2 ($/oz sold) – attributable | ||||||
| - Essakane | $ | 1,312 | $ | 1,157 | ||
| - Westwood | 1,836 | 2,508 | ||||
| Subtotal | $ | 1,493 | $ | 1,525 | ||
| - Côté Gold | — | — | ||||
| Total AISC2 ($/oz sold) – attributable | $ | 1,493 | $ | 1,525 | ||
| Average realized gold price2,3($/oz) | $ | 2,077 | $ | 1,893 | ||
| Key Operating Statistics ($ millions from Rosebel discontinued operation) | ||||||
| Gold production – attributable (000s oz) | — | 25 | ||||
| Gold sales – attributable (000s oz) | — | 24 | ||||
| Cost of sales1 ($/oz sold) – attributable | — | $ | 949 | |||
| Cash costs2 ($/oz sold) – attributable | — | $ | 949 | |||
| AISC2 ($/oz sold) – attributable | — | $ | 1,358 |
1Throughout this news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the consolidated interim financial statements.
2This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
3The average realized gold price in the first quarter 2024 excluding the impact of the 2022 Prepay Arrangement (as defined below) was
| Q1 2024 | Q1 2023 | |||||
| Financial Results ($ millions from continuing operations) | ||||||
| Revenues | $ | 338.9 | $ | 226.2 | ||
| Gross profit | $ | 105.7 | $ | 43.1 | ||
| EBITDA1 | $ | 154.1 | $ | 82.8 | ||
| - Continuing operations | $ | 154.1 | $ | 68.4 | ||
| - Discontinued operations | $ | — | $ | 14.4 | ||
| Adjusted EBITDA1 | $ | 152.5 | $ | 106.4 | ||
| - Continuing operations | $ | 152.5 | $ | 83.0 | ||
| - Discontinued operations | $ | — | $ | 23.4 | ||
| Net earnings (loss) attributable to equity holders | $ | 54.8 | $ | 11.9 | ||
| - Continuing operations | $ | 54.8 | $ | 6.3 | ||
| - Discontinued operations | $ | — | $ | 5.6 | ||
| Adjusted net earnings (loss) attributable to equity holders1 | $ | 53.0 | $ | 39.5 | ||
| - Continuing operations | $ | 53.0 | $ | 24.9 | ||
| - Discontinued operations | $ | — | $ | 14.6 | ||
| Net earnings (loss) per share attributable to equity holders – continuing operations | $ | 0.11 | $ | 0.01 | ||
| Adjusted net earnings (loss) per share attributable to equity holders1 – continuing operations | $ | 0.11 | $ | 0.05 | ||
| Net cash from operating activities before changes in working capital1 – continuing operations | $ | 142.8 | $ | 55.7 | ||
| Net cash from operating activities | $ | 77.1 | $ | 28.8 | ||
| - Continuing operations | $ | 77.1 | $ | 13.4 | ||
| - Discontinued operations | $ | — | $ | 15.4 | ||
| Mine-site free cash flow1 | $ | 46.2 | $ | 8.6 | ||
| - Continuing operations | $ | 46.2 | $ | 2.7 | ||
| - Discontinued operations | $ | — | $ | 5.9 | ||
| Capital expenditures1,2 – sustaining | $ | 55.1 | $ | 35.0 | ||
| Capital expenditures1,2 – expansion | $ | 115.2 | $ | 137.1 | ||
| March 31 | December 31 | |||||
| 2024 | 2023 | |||||
| Financial Position ($ millions) | ||||||
| Cash and cash equivalents | $ | 291.2 | $ | 367.1 | ||
| Long-term debt | $ | 820.9 | $ | 830.8 | ||
| Net cash (debt)1 | $ | (715.8 | ) | $ | (649.5 | ) |
| Available Credit Facility | $ | 402.3 | $ | 387.0 |
1This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
2Capital expenditures represent incurred expenditures for property, plant and equipment and exploration and evaluation assets, and exclude right-of-use assets.
OUTLOOK
Côté Gold Outlook (
Production
Production at Côté Gold is expected to be between 220,000 and 290,000 ounces for the year (130,000 and 175,000 ounces on a
Costs
During the ramp-up period and prior to achieving near nameplate production rates, operating and capitalized waste stripping unit costs are expected to be higher than the expected life of mine average as outlined in the existing 43-101 technical report (dated August 12, 2022) as fixed costs are absorbed by lower volumes, increases in certain cost inputs from the impact of inflation since completion of the technical report, and higher royalty costs due to higher gold prices. As Côté Gold achieves
For accounting purposes, revenue and cost of sales will be recognized from the commencement of production.
The Company will continue to fund
Capital Expenditures
| ($ millions) | Actual Q1 20241 | Full Year Guidance 20242,3 | Adjusted Full Year Guidance 20242,3 | ||||||
| Project expenditures4 to first gold | $ | 151.7 | $ |
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FAQ
What was IAMGOLD's attributable gold production for Q1 2024?
IAMGOLD reported attributable gold production of 151,000 ounces for Q1 2024.
What was the average realized gold price for IAMGOLD in Q1 2024?
IAMGOLD's average realized gold price for Q1 2024 was $2,077 per ounce.
What is the expected gold production range for IAMGOLD in 2024?
IAMGOLD expects gold production between 430,000 to 490,000 ounces for the year 2024.
When is commercial production expected at Côte Gold?
Commercial production at Côte Gold is expected to be achieved in the third quarter of 2024.
What were IAMGOLD's revenues for Q1 2024?
IAMGOLD reported revenues of $338.9 million for Q1 2024.
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