IAMGOLD Reports Second Quarter 2023 Results
- Attributable gold production from continuing operations was 107,000 ounces.
- Revenues from continuing operations were $238.8 million from sales of 121,000 ounces (111,000 ounces on an attributable basis) at an average realized gold price of $1,973 per ounce.
- Cost of sales per ounce sold from continuing operations was $1,376.
- Net earnings attributable to equity holders of $92.6 million or $0.19 per share and adjusted net loss attributable to equity holders of $3.3 million or $0.01 per share.
- Net cash from operating activities was $23.2 million. EBITDA from continuing operations was $166.2 million and adjusted EBITDA was $63.8 million.
- The company has available liquidity of $1,200.2 million comprised of cash and cash equivalents of $747.7 million and the available balance of the secured revolving credit facility of $452.5 million as of June 30, 2023.
- None.
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario--(Newsfile Corp. - August 10, 2023) - IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) ("IAMGOLD" or the "Company") today reported its financial and operating results for the second quarter ended June 30, 2023.
HIGHLIGHTS:
Operations
- Attributable gold production from continuing operations was 107,000 ounces.
- Revenues from continuing operations were
$238.8 million from sales of 121,000 ounces (111,000 ounces on an attributable basis) at an average realized gold price of$1,973 per ounce. - Cost of sales per ounce sold from continuing operations was
$1,376 , cash cost1per ounce sold from continuing operations was$1,372 and all-in-sustaining-cost1("AISC") per ounce sold from continuing operations was$1,912. - Attributable gold production guidance for 2023 is unchanged and is expected to be in the range of 410,000 to 470,000 ounces. Full year costs are expected to come in at the top end of the guided ranges of between
$1,125 and$1,175 per ounce sold for cash costs1 and between$1,625 t o$1,700 per ounce sold for AISC1. - In health and safety, for the six months ended June 30, 2023, the Company reported a DARTFR (days away, restricted, transferred duty frequency rate) of 0.39 and a TRIFR (total recordable injuries frequency rate) of 0.68, with a decreasing trend since the last quarter.
Financial
- Net earnings attributable to equity holders1of
$92.6 million or$0.19 per share and adjusted net loss attributable to equity holders1of$3.3 million or$0.01 per share. - Net cash from operating activities was
$23.2 million . Net cash from operating activities, before movements in non-cash working capital and non-current ore stockpiles1was$21.8 million . - Earnings before interest, income taxes, depreciation and amortization ("EBITDA")1from continuing operations was
$166.2 million and adjusted EBITDA1was$63.8 million . - Mine-site free cash flow1from continuing operations was
$14.6 million . - The Company has available liquidity of
$1,200.2 million comprised of cash and cash equivalents of$747.7 million and the available balance of the secured revolving credit facility ("Credit Facility") of$452.5 million as at June 30, 2023.
Côté Gold
- As of June 30, 2023, the Côté Gold Project was estimated to be
85.7% complete. - Since commencement of construction,
$2.23 billion ($1.56 billion at70% ) of the planned$2.96 5 billion ($2.08 billion at70% ) of project expenditure has been incurred. - The estimated cost to complete the Côté Gold Project on a
100% basis is$665 t o$735 million ($465 t o$515 million at70% ) on an incurred basis assuming a USDCAD rate of 1.32, with the top end of the range approximating the planned$2.96 5 billion. - Sumitomo Metal Mining Co., Ltd. and SMM Gold Cote Inc. ("Sumitomo" or "SMM") funded the final
$61.0 million of the Company's funding obligation and an incremental$18.0 million based on its increased ownership during the second quarter 2023 as per the Joint Venture Funding and Amending Agreement ("JV Funding and Amending Agreement"), reducing the Company's interest in the unincorporated joint venture to60.3% . - On a
100% basis at the UJV level, the Côté Gold Project incurred project expenditures1 of$270.1 million ($189.1 million at70% ) in the second quarter 2023. IAMGOLD is expected to fund$425 t o$475 million during the remainder of 2023 based on its60.3% ownership in Côté Gold unincorporated joint venture. See "Côté Gold Project".
Corporate
- On April 25, 2023, the Company completed the sale of its
90% interest in the Boto Gold Project in Senegal and its100% 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 May 16, 2023, the Company announced that it had entered into a five-year second lien secured term loan (the "Term Loan") of
$400 million from three institutional lenders. The Term Loan proceeds have been used to pay down amounts drawn under its existing revolving Credit Facility, increasing liquidity and flexibility during the completion of construction, commissioning and ramp up of Côté Gold, as it allows for the Credit Facility to be available to support working capital and additional liquidity in case of unforeseen changes in the operating or macroeconomic environment. - 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 will receive 6.3 million common shares from Jaguar, for an aggregate value of$9.0 million . The Company will also retain a net smelter returns royalty on both projects. The transaction is subject to customary closing conditions, including the approval of the TSX. The transaction is expected to close in the third quarter 2023.
"As we move into the second half of 2023, IAMGOLD is proud of its achievements so far this year," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "Gold production from continuing operations year to date is 220,000 ounces at cash costs of
"As we look to the end of this year, we see IAMGOLD is well on track to meet its gold production guidance targets of 410,000 to 470,000 ounces. We are currently forecasting costs to come in on the upper end of our guidance ranges, due to sustained higher costs of doing business from cooling, yet still present, inflationary pressures and associated complexities in the regions in which we operate. We are excited about where IAMGOLD is positioned today, as when Côté Gold comes online, the Company will have a significantly higher production base and lower cost profile, providing a strong foundation of cashflow and growth opportunities in Canada," added Mr. Adams.
QUARTERLY SUMMARY
The following table summarizes certain operating and financial results for the three months ended June 30, 2023 (Q2 2023), June 30, 2022 (Q2 2022) and the six months ended June 30 (or YTD) 2023 and 2022 and certain measures of the Company's financial position as at June 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.
| Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | ||||||||
| Key Operating Statistics | |||||||||||
| Gold production - attributable (000s oz) | |||||||||||
| - Essakane | 88 | 107 | 180 | 219 | |||||||
| - Westwood | 19 | 14 | 40 | 30 | |||||||
| Total from continuing operations | 107 | 121 | 220 | 249 | |||||||
| - Rosebel | - | 49 | 25 | 95 | |||||||
| Total gold production - attributable (000s oz) | 107 | 170 | 245 | 344 | |||||||
| Gold sales - attributable (000s oz) | |||||||||||
| - Essakane | 93 | 104 | 181 | 223 | |||||||
| - Westwood | 18 | 14 | 39 | 30 | |||||||
| Total from continuing operations | 111 | 118 | 220 | 253 | |||||||
| - Rosebel | - | 52 | 24 | 98 | |||||||
| Total gold sales - attributable (000s oz) | 111 | 170 | 244 | 351 | |||||||
| Cost of sales1 ($/oz sold) - attributable | |||||||||||
| - Essakane | $ | 1,274 | $ | 838 | $ | 1,171 | $ | 810 | |||
| - Westwood | 1,909 | 2,463 | 1,773 | 2,176 | |||||||
| Total from continuing operations | $ | 1,376 | $ | 1,034 | $ | 1,277 | $ | 974 | |||
| - Rosebel | - | 1,349 | 949 | 1,359 | |||||||
| Total cost of sales1 ($/oz sold) - attributable | $ | 1,376 | $ | 1,130 | $ | 1,245 | $ | 1,081 | |||
| Cash costs2 ($/oz sold) - attributable | |||||||||||
| - Essakane | $ | 1,273 | $ | 836 | $ | 1,122 | $ | 807 | |||
| - Westwood | 1,896 | 2,427 | 1,761 | 2,141 | |||||||
| Total from continuing operations | $ | 1,372 | $ | 1,028 | $ | 1,234 | $ | 967 | |||
| - Rosebel | - | 1,327 | 949 | 1,321 | |||||||
| Total cash costs2 ($/oz sold) - attributable | $ | 1,372 | $ | 1,119 | $ | 1,206 | $ | 1,066 | |||
| AISC2 ($/oz sold) - attributable | |||||||||||
| - Essakane | $ | 1,587 | $ | 1,124 | $ | 1,377 | $ | 1,129 | |||
| - Westwood | 2,903 | 3,147 | 2,689 | 2,738 | |||||||
| Total from continuing operations | $ | 1,912 | $ | 1,485 | $ | 1,719 | $ | 1,434 | |||
| - Rosebel | - | 1,874 | 1,358 | 1,832 | |||||||
| Total AISC2 ($/oz sold) - attributable | $ | 1,912 | $ | 1,604 | $ | 1,684 | $ | 1,545 | |||
| Average realized gold price ($/oz) | |||||||||||
| - Continued operations | $ | 1,973 | $ | 1,773 | $ | 1,933 | $ | 1,781 | |||
| - Discontinued operations | - | 1,861 | 1,905 | 1,873 | |||||||
| Total average realized gold price ($/oz) | $ | 1,973 | $ | 1,799 | $ | 1,930 | $ | 1,806 |
- Throughout this news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the consolidated interim financial statements.
- 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.
| Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | ||||||||
| Financial Results ($ millions from continuing operations) | |||||||||||
| Revenues | $ | 238.8 | $ | 232.1 | $ | 465.0 | $ | 497.1 | |||
| Gross profit | $ | 26.6 | $ | 34.1 | $ | 69.7 | $ | 105.1 | |||
| EBITDA1 | $ | 166.2 | $ | 101.4 | $ | 249.0 | $ | 236.3 | |||
| - Continuing operations | $ | 166.2 | $ | 71.7 | $ | 234.6 | $ | 181.9 | |||
| - Discontinued operations | $ | - | $ | 29.7 | $ | 14.4 | $ | 54.4 | |||
| Adjusted EBITDA1 | $ | 63.8 | $ | 110.0 | $ | 170.6 | $ | 247.5 | |||
| - Continuing operations | $ | 63.8 | $ | 81.8 | $ | 147.2 | $ | 192.5 | |||
| - Discontinued operations | $ | - | $ | 28.2 | $ | 23.4 | $ | 55.0 | |||
| Net earnings (loss) attributable to equity holders | $ | 92.6 | $ | (9.6) | $ | 104.5 | $ | 14.2 | |||
| - Continuing operations | $ | 92.6 | $ | (22.2) | $ | 98.9 | $ | (6.2) | |||
| - Discontinued operations | $ | - | $ | 12.6 | $ | 5.6 | $ | 20.4 | |||
| Adjusted net earnings (loss) attributable to equity holders1 | $ | (3.3) | $ | (6.3) | $ | 36.6 | $ | 19.8 | |||
| - Continuing operations | $ | (3.3) | $ | (14.6) | $ | 22.0 | $ | 1.8 | |||
| - Discontinued operations | $ | - | $ | 8.3 | $ | 14.6 | $ | 18.0 | |||
| Net earnings (loss) per share attributable to equity holders - continuing operations | $ | 0.19 | $ | (0.05) | $ | 0.21 | $ | (0.01) | |||
| Adjusted net earnings (loss) per share attributable to equity holders1 - continuing operations | $ | (0.01) | $ | (0.03) | $ | 0.05 | $ | - | |||
| Net cash from operating activities before changes in working capital1 - continuing operations | $ | 21.8 | $ | 67.0 | $ | 77.5 | $ | 175.7 | |||
| Net cash from operating activities | $ | 23.2 | $ | 81.9 | $ | 52.0 | $ | 224.2 | |||
| - Continuing operations | $ | 23.2 | $ | 33.9 | $ | 36.6 | $ | 149.9 | |||
| - Discontinued operations | $ | - | $ | 48.0 | $ | 15.4 | $ | 74.3 | |||
| Mine-site free cash flow1 | $ | 14.6 | $ | 42.0 | $ | 23.2 | $ | 128.7 | |||
| - Continuing operations | $ | 14.6 | $ | 36.4 | $ | 17.3 | $ | 123.3 | |||
| - Discontinued operations | $ | - | $ | 5.6 | $ | 5.9 | $ | 5.4 | |||
| Capital expenditures1,2 - sustaining | $ | 46.3 | $ | 39.4 | $ | 81.3 | $ | 95.5 | |||
| Capital expenditures1,2 - expansion | $ | 173.5 | $ | 170.8 | $ | 332.6 | $ | 250.8 | |||
| | June 30 | December 31 | June 30 | December 31 | |||||||
| | 2023 | 2022 | 2023 | 2022 | |||||||
| Financial Position ($ millions) | |||||||||||
| Cash and cash equivalents | $ | 747.7 | $ | 407.8 | $ | 747.7 | $ | 407.8 | |||
| Long-term debt | $ | 837.3 | $ | 918.7 | $ | 837.3 | $ | 918.7 | |||
| Net cash (debt)1 | $ | (280.3) | $ | (605.6) | $ | (280.3) | $ | (605.6) | |||
| Available credit facility | $ | 452.5 | $ | 26.6 | $ | 452.5 | $ | 26.6 |
- 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.
- Capital expenditures represent incurred expenditures for property, plant and equipment and exploration and evaluation assets, and exclude right-of-use assets.
OUTLOOK
Operating Performance Outlook
| Actual YTD 2023 | Full Year Guidance 20231 | ||||
| Essakane (000s oz) | 180 | 340 - 380 | |||
| Westwood (000s oz) | 40 | 70 - 90 | |||
| Total attributable production (000s oz)2 | 220 | 410 - 470 | |||
| Cost of sales2 ($/oz sold) | $ | 1,277 | $ | 1,125 - | |
| Cash costs2.3 ($/oz sold) | $ | 1,234 | $ | 1,125 - | |
| AISC2,3 ($/oz sold) | $ | 1,719 | $ | 1,625 - | |
| Depreciation expense ($ millions) | $ | 91.0 | $ | 245 - | |
| Income taxes4 paid ($ millions) | $ | 43.0 | $ | 70 - |
- The full year guidance is based on the following 2023 full year assumptions, before the impact of hedging: average realized gold price of
$1,650 per ounce, USDCAD exchange rate of 1.32, EURUSD exchange rate of 1.10 and average crude oil price of$91 per barrel. - Consists of Essakane and Westwood on an attributable basis of
90% and100% , respectively. - This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
- The income taxes paid guidance reflects continuing operations and does not include the cash tax obligation arising as part of the Bambouk sales process. See "Bambouk Assets" for additional details.
Production Outlook
Attributable gold production guidance for 2023 is unchanged and is expected to be in the range of 410,000 to 470,000 ounces.
Costs Outlook
The Company expects full year costs to come in at the top end of the guided ranges of between
At Essakane, the landed cost of fuel has increased due to the measures taken to reduce the impact of the security situation on the supply chain which allowed for a return to full mining and milling capacity during the quarter. In addition, heavy fuel used for power generation is periodically substituted with more expensive light fuel due to availability, further increasing the cost of producing energy used in the mill.
At Westwood, the level of ground support required for the development and rehabilitation work increased relative to the annual plan; however, productivity rates are higher than plan and allowed for an increased rate of underground rehabilitation and repair work thereby advancing a portion of the 2024 scope of work into the current year to de-risk future years.
The Company notes that continued pressures on the Essakane supply chain and costs may result in an increase to costs and capital expenditure guidance estimates and will provide further updates as warranted.
Capital Expenditures
Sustaining capital expenditures¹ for 2023 have been revised upwards to approximately
Expansion capital1 and project expenditures¹ for 2023 are expected to be approximately
| Actual YTD 2023 | Full Year Guidance 20232 | ||||||||||||||||
| ($ millions) | Sustaining3 | Expansion | Total | Sustaining3 | Expansion | Total | |||||||||||
| Essakane | $ | 46.6 | $ | 1.0 | $ | 47.6 | $ | 150 | $ | 5 | $ | 155 | |||||
| Westwood | 34.4 | 0.2 | 34.6 | 80 | - | 80 | |||||||||||
| $ | 81.0 | $ | 1.2 | $ | 82.2 | $ | 230 | $ | 5 | $ | 235 | ||||||
| Côté Gold4,5 | - | 359.8 | 359.8 | - | 825 - 875 | 825 - 875 | |||||||||||
| Corporate | 0.3 | - | 0.3 | - | - | - | |||||||||||
| Total6,7,8 | $ | 81.3 | $ | 361.0 | $ | 442.3 | $ | 230 | $ | 830 - 880 | $ | 1,060 - 1,110 | |||||
100% basis, unless otherwise stated.- Capital expenditures guidance (±
5% ) at Essakane and Westwood. Sustaining capital expenditure guidance at Westwood increased by$35 million . Côté Gold expansion capital guidance narrowed from$800 -$875 million to$825 -$875 million . - Sustaining capital includes capitalized stripping of (i)
$14.3 million for Essakane and$1.2 million for Westwood in the second quarter 2023, (ii)$20.7 for Essakane and$3.9 million at Westwood YTD 2023, and (iii)$90 million for Essakane and$6.0 million for Westwood for the full year guidance. See "Outlook" sections below. 70% basis.- Represents Côté Gold project expenditures of
$359.8 million (see Côté Gold Project) that consists of capital expenditures of$331.4 million , right of use assets of$34.8 million , supplies inventory and the cost to build the ore stockpile, less certain cash and non-cash corporate level adjustments included in capital expenditures. - Includes
$3.0 million of capitalized exploration and evaluation expenditures also included in the Exploration Outlook guidance table. - Capitalized borrowing costs are not included.
- See "Costs Outlook" section above.
Exploration Outlook
Exploration expenditures for 2023 are expected to be approximately
| Actual YTD 2023 | Full Year Guidance 2023 | ||||||||||||||||
| ($ millions) | Capitalized | Expensed | Total | Capitalized | Expensed | Total | |||||||||||
| Exploration projects - greenfield | $ | - | $ | 5.7 | $ | 5.7 | $ | - | $ | 13 | $ | 13 | |||||
| Exploration projects - brownfield | 2.1 | 1.0 | 3.1 | 3 | 2 | 5 | |||||||||||
| $ | 2.1 | $ | 6.7 | $ | 8.8 | $ | 3 | $ | 15 | $ | 18 | ||||||
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
IAMGOLD is committed to maintaining its culture of accountable mining through high standards of ESG practices and the principle of Zero Harm® in every aspect of its business, with particular emphasis on respecting the natural environment, building strong community partnerships and putting the health and safety of the Company's employees, contractors and consultants first. The Company will issue its 16th annual Sustainability Report in the third quarter of this year.
Health and Safety
Health and safety is core to the Company's relentless pursuit of its Zero Harm® vision. Through various prevention programs, the Company continuously promotes a safe work environment and a wellness program at all sites. The DARTFR was 0.39 for the six months ended June 30, 2023, with a decreasing trend since the last quarter (compared to 0.31 for the same period ended June 30, 2022). The TRIFR was 0.68 for the six months ended June 30, 2023 (compared to 0.85 for the same period ended June 30, 2022). At Côté Gold, total project hours worked reached 11.5 million hours with an LTIFR (lost time injury frequency rate) of 0.03.
During the month of June, wildfires contributed to regional adverse air quality at Côté Gold and Westwood. Air monitoring stations at our sites recorded values for particulate matter that exceeded recommended limits with notifications provided to the respective Ministries of the Environment, Conservation and Parks.
Environment
The Company recognizes that mining activities are energy intensive and generate significant greenhouse gas ("GHG") emissions. To this end, IAMGOLD began working on each operation in 2022 to develop site-specific emissions reduction roadmaps. That work continues and is expected to culminate in a corporate roadmap, accompanying targets, and the publication of a TCFD report by the fourth quarter of 2023.
At Côté Gold, permitting efforts continued in the second quarter 2023 with permit amendments received allowing for additional temporary camp infrastructure to support an increase in workers on site during construction. A Notice of Material Change to the Closure Plan was also filed in March 2023 to update financial assurance and consolidate the existing Côté Gold and Chester mine closure plans. During the quarter, the Company's environment department prepared the site for freshet conditions, continued to work closely with the construction and operational readiness teams and is developing the departmental strategy to lead into operations.
At Essakane, progress has been made in the studies and the action plan for the update of the mine closure plan, in consultation with government authorities. The updated closure plan is scheduled to be completed by mid-2023.
At Westwood, the 2021 closure plan update is currently under review by the Quebec Ministry of Natural Resources and Forestry (MRNF), with the MRNF engaging the Company with a list of questions in accordance with their ongoing analysis.
Social and Economic Development
The Company is continuously exploring opportunities for investing and partnering with the communities impacted by its continuing operations.
At Essakane, the Company continued its participation in the Mining Fund for Local Development in Burkina Faso, a program established by the government, pursuant to which the Company committed to contribute
At Côté Gold, various meetings were held (Impact Benefit Agreement ("IBA") Committee, Environmental Management Committee, Employment and Training sub-Committee and Socio-economic Management and Monitoring Committee) as part of the implementation of the IBA between the Company and its First Nation Partners Mattagami First Nation and Flying Post First Nation. In May, an annual environmental session was held at Mattagami First Nation to share information about the environmental management best practices employed at Côté Gold.
At Westwood, the second monitoring committee meeting for Fayolle was held on June 15 and the Grand Duc monitoring committee met on June 22. Scholarships were awarded to students of the Cégep in Abitibi-Témiscamingue while financial support was given to the Defi IAMGOLD fundraiser event to help raise a record amount of
Governance
The Board of Directors of IAMGOLD (the "Board") adopted new diversity and renewal guidelines in 2021, reflecting governance best practices. Currently, women represent approximately
OPERATIONS - CONTINUING
Essakane Mine (IAMGOLD interest -
| Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | ||||||||
| Key Operating Statistics1 | |||||||||||
| Ore mined (000s t) | 2,697 | 3,803 | 4,354 | 7,635 | |||||||
| Grade mined (g/t) | 1.12 | 1.05 | 1.39 | 1.05 | |||||||
| Waste mined (000s t) | 10,818 | 7,602 | 15,446 | 18,948 | |||||||
| Material mined (000s t) - total | 13,515 | 11,405 | 19,800 | 26,583 | |||||||
| Strip ratio2 | 4.0 | 2.0 | 3.5 | 2.5 | |||||||
| Ore milled (000s t) | 3,084 | 2,704 | 5,259 | 5,866 | |||||||
| Head grade (g/t) | 1.11 | 1.52 | 1.32 | 1.45 | |||||||
| Recovery (%) | 89 | 90 | 90 | 89 | |||||||
| Gold production (000s oz) - | 97 | 119 | 200 | 243 | |||||||
| Gold production (000s oz) - attributable | 88 | 107 | 180 | 219 | |||||||
| Gold sales (000s oz) - | 103 | 117 | 201 | 248 | |||||||
| Average realized gold price3 ($/oz) | $ | 1,975 | $ | 1,882 | $ | 1,935 | $ | 1,883 | |||
| Financial Results ($ millions)1 | |||||||||||
| Revenues4 | $ | 203.8 | $ | 218.8 | $ | 390.3 | $ | 467.0 | |||
| Cost of sales4 | 131.4 | 97.3 | 236.0 | 200.4 | |||||||
| Production costs | 128.0 | 93.0 | 225.4 | 173.9 | |||||||
| (Increase)/decrease in finished goods | (6.9) | (6.3) | (9.2) | 3.6 | |||||||
| Royalties | 10.3 | 10.6 | 19.8 | 22.9 | |||||||
| Cash costs3 | 131.2 | 97.0 | 226.1 | 199.7 | |||||||
| Sustaining capital expenditures3,5 | 29.5 | 31.1 | 46.6 | 78.8 | |||||||
| Expansion capital expenditures3 | 0.5 | 0.5 | 1.0 | 1.5 | |||||||
| Total capital expenditures | 30.0 | 31.6 | 47.6 | 80.3 | |||||||
| Earnings from operations | 30.4 | 61.9 | 74.0 | 152.1 | |||||||
| Performance Measures6 | |||||||||||
| Cost of sales excluding depreciation ($/oz sold) | $ | 1,274 | $ | 838 | $ | 1,171 | $ | 810 | |||
| Cash costs3 ($/oz sold) | $ | 1,273 | $ | 836 | $ | 1,122 | $ | 807 | |||
| AISC3 ($/oz sold) | $ | 1,587 | $ | 1,124 | $ | 1,377 | $ | 1,129 |
100% basis, unless otherwise stated.- Strip ratio is calculated as waste mined divided by ore mined.
- This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
- As per note 29 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depreciation expense.
- Includes sustaining capitalized stripping for the second quarter 2023 of
$14.3 million (second quarter 2022 -$17.2 million ) and$20.7 million for YTD 2023 (YTD 2022 -$47.1 million ). - Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Operations
Attributable gold production in the second quarter 2023 was 88,000 ounces lower by
Mining activity of 13.5 million tonnes in the second quarter 2023 was higher by 2.1 million tonnes or
Mill throughput in the second quarter 2023 was 3.1 million tonnes at an average head grade of 1.11 g/t, with throughput
The mill achieved recoveries of
The continued deteriorating security situation in Burkina Faso continues to be a focus for the Company. Terrorist related incidents continue unabated in the country, the immediate region of the Essakane mine and, more broadly, the West African region. The Company was able to return to full mining and milling capacity during the quarter, however, the security situation in Burkina Faso and its neighboring countries continues to apply pressures to supply chains and continued security incidents and concerns could have a material adverse impact on future operating performance. The Company continues to take proactive measures to ensure the safety and security of in-country personnel and is constantly adjusting its protocols and the activity levels at the site according to the security environment. Combined with its program to make investments in security and supply chain infrastructure in the region and at the mine site in addition to the cost of these investments, the measures have increased the cost of bringing employees, contractors, supplies and inventory to the mine.
Financial Performance
Production costs in the second quarter of
Cost of sales, excluding depreciation, of
Cash costs of
AISC per ounce sold of
Total capitalized stripping of
Sustaining capital expenditures, excluding capitalized stripping, of
Outlook
Attributable gold production at Essakane in 2023 is expected to be in the range of 340,000 to 380,000 ounces. Mining activity is expected to maintain normal operating levels in the second half of the year, including increased levels of waste stripping. The mill feed will consist of a combination of direct feed and stockpiles as the mine fleet sequences through the targeted phases of waste stripping.
Capital expenditures are expected to be approximately
The Company plans to file an updated NI 43-101 compliant technical report during the fourth quarter of 2023 detailing the life of mine plan for Essakane and the updated mineral reserve and mineral resource. The technical report will incorporate the decision to forego a capital-intensive heap leach project in favour of processing through the existing CIL circuit the 9.9 million tonnes of the previously stockpiled material over the life of mine.
Westwood Mine (IAMGOLD interest -
| Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | ||||||||
| Key Operating Statistics | |||||||||||
| Underground lateral development (metres) | 1,381 | 1,207 | 2,875 | 2,055 | |||||||
| Ore mined (000s t) - underground | 56 | 53 | 124 | 116 | |||||||
| Ore mined (000s t) - other sources | 156 | 218 | 349 | 377 | |||||||
| Ore mined (000s t) - total | 212 | 271 | 473 | 493 | |||||||
| Grade mined (g/t) - underground | 7.56 | 4.18 | 6.89 | 5.22 | |||||||
| Grade mined (g/t) - other sources | 1.18 | 1.03 | 1.33 | 0.98 | |||||||
| Grade mined (g/t) - total | 2.86 | 1.65 | 2.79 | 1.97 | |||||||
| Ore milled (000s t) | 251 | 284 | 506 | 534 | |||||||
| Head grade (g/t) - underground | 7.32 | 4.01 | 6.89 | 5.06 | |||||||
| Head grade (g/t) - other sources | 1.19 | 1.04 | 1.27 | 1.00 | |||||||
| Head grade (g/t) - total | 2.53 | 1.62 | 2.65 | 1.88 | |||||||
| Recovery (%) | 94 | 93 | 93 | 92 | |||||||
| Gold production (000s oz) | 19 | 14 | 40 | 30 | |||||||
| Gold sales (000s oz) | 18 | 14 | 39 | 30 | |||||||
| Average realized gold price1 ($/oz) | $ | 1,958 | $ | 1,854 | $ | 1,923 | $ | 1,864 | |||
| Financial Results ($ millions) | |||||||||||
| Revenues2 | $ | 34.9 | $ | 27.1 | $ | 74.5 | $ | 57.9 | |||
| Cost of sales2 | 33.8 | 35.4 | 68.3 | 66.4 | |||||||
| Production costs | 36.7 | 37.0 | 72.5 | 68.7 | |||||||
| (Increase)/decrease in finished goods | (2.9) | (1.6) | (4.2) | (2.3) | |||||||
| Cash costs1 | 33.5 | 34.8 | 67.8 | 65.3 | |||||||
| Sustaining capital expenditures1,5 | 16.6 | 8.8 | 34.4 | 16.1 | |||||||
| Expansion capital expenditures1 | 0.2 | 0.7 | 0.2 | 1.2 | |||||||
| Total capital expenditures1 | 16.8 | 9.5 | 34.6 | 17.3 | |||||||
| Earnings/(loss) from operations | (4.2) | (14.1) | (9.4) | (19.1) | |||||||
| Performance Measures3 | |||||||||||
| Cost of sales excluding depreciation4 ($/oz sold) | $ | 1,909 | $ | 2,463 | $ | 1,773 | $ | 2,176 | |||
| Cash costs1 ($/oz sold) | $ | 1,896 | $ | 2,427 | $ | 1,761 | $ | 2,141 | |||
| AISC1 ($/oz sold) | $ | 2,903 | $ | 3,147 | $ | 2,689 | $ | 2,738 |
- This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
- As per note 29 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depreciation expense.
- Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
- Includes non-cash ore stockpile and finished goods inventories NRV write-down of
$2.6 million for the second quarter 2023 (second quarter 2022 -$3.3 million ) and$3.2 million for YTD 2023 (YTD 2022 -$5.0 million ), which had an impact on cost of sales, excluding depreciation, per ounce sold of$148 for the second quarter 2023 (second quarter 2022 -$232) and$84 for YTD 2023 (YTD 2022 -$165) . - Includes sustaining capitalized stripping for the second quarter 2023 of
$1.2 million (second quarter 2022 - $nil) and$3.9 million for YTD 2023 (YTD 2022 - $nil).
Operations
Gold production in the second quarter 2023 was 19,000 ounces, higher by 5,000 ounces or
Mining activity in the second quarter 2023 was 212,000 tonnes of ore, a
Underground development in the second quarter 2023 continued to improve over prior periods, with 1,381 metres of lateral development completed, higher by 174 metres or
Mill throughput in the second quarter 2023 was 251,000 tonnes at an average head grade of 2.53 g/t. Head grades increased
In March 2023, all required environmental and regulatory permits were received to commence mining of the Fayolle satellite deposit, located approximately 30 kilometres northwest of the Westwood complex. Primary activities in the quarter include improving the access to the mine pit, preparing the waste stockpile pads and improving the haul road network to facilitate transport of ore volumes to the Westwood mill in the second half of 2023. Incidental volumes of ore were processed during the second quarter 2023 with the remaining ore mined stockpiled at the Fayolle site for future transport. The comparatively higher-grade material from the Fayolle deposit is expected to increase the average head grade of ore milled from surface sources as the year progresses.
Financial Performance
Production costs in the second quarter of
Cost of sales, excluding depreciation, of
Cash costs of
AISC per ounce sold of
Sustaining capital expenditures, excluding capitalized stripping, in the second quarter 2023 of
Outlook
Westwood gold production is expected to be in the range of 70,000 to 90,000 ounces in 2023. Production levels and unit costs are expected to continue to improve into the second half of the year, benefiting from the continued advancement of underground development providing access to more and higher-grade stope sequences. Mill feed will continue to be supplemented from available satellite surface deposits, including increased proportions of ore feed from the Fayolle property in the second half of the year.
Capital expenditures are expected to be approximately
During the fourth quarter of the year, the Company plans to file an updated NI 43-101 compliant technical report detailing the results of certain mine optimization efforts and strategic assessments of the Westwood complex.
PROJECTS
Côté Gold Project | Ontario, Canada
As of June 30, 2023, overall, the project was estimated to be
| Project Activity | Update |
| Health and safety | Total project hours worked of 11.5 million hours with a project-to-date DARTFR of 0.05 and a TRIFR of 0.68. During the month of June, wildfires created regional adverse air quality. Air monitoring stations on site recorded values for particulate matter that exceeded site recommended limits with notification provided to Ministry of the Environment, Conservation and Parks. |
| Labour and workforce | In June, the project workforce exceeded 1,900 workers on site, achieving peak camp capacity. Labour availability and turnover continues to be a primary focus for Côté management. |
| Earthworks activities | Earthworks activities advanced with a focus on the tailings management facility ("TMF"). East Starter Dam Phase 1 was completed in June. Water accumulation in the TMF has started in order to have sufficient water for the plant startup. Phase 2 dam raising has been initiated which will give a year of storage once complete. TMF earthworks has now achieved over Mining activities are continuing to ramp up to debottleneck mine production and prepare for final hand-off of all pit related activities to the operations team later in the third quarter. |
| Processing plant | Considerable progress was made in the process area during the second quarter as the project begins the evolution from bulk construction to the completion phase with a focus on finishing activities. Primary crusher steel assembly restarted in June with installation of the overhead crane and continuing the overall primary crusher structure. Work continued with the gyratory crusher installation including all ancillary equipment being placed. The HPGR crusher rolls and reducing gear drives were installed. Preparation for the cone crusher also commenced. Construction of the Triodetic coarse ore dome structure made significant progress and will be completed in the beginning of the third quarter. Feed conveyor belting in the fine ore bin area is complete, and welding of the final two screen box girders in the screening building is nearing completion. Installation of ball mill liners began in June and ball mill motors are on site and preparations for installation commenced. Piping to the compressors and water filtration equipment is completed. Night shift has started with cable pulls starting in the electrical rooms. Main cable tray in the building is substantially complete with only off tray routing remaining to be completed. Leach tank construction is ongoing with final completion and installation of agitators expected later than planned. Construction sequence has been adjusted to prioritize critical tanks for commissioning to mitigate potential delays on the overall schedule. |
| Infrastructure | The overhead power line has been completed. Commissioning of the main electrical substation has started and the connection to the provincial hydro grid and the substation is on track for the third quarter 2023. Installation of underground services has progressed significantly. Fuel distribution and storage, including the refueling station, is expected to be completed in the third quarter 2023. Truck shop building A is near completion with handover planned for August, followed by building B in September. The installation of the electrical room for the assay lab is ongoing with completion of the lab expected by September. |
| Procurement | The majority of equipment has been delivered with the remaining delivery progressing on schedule. Heavy mobile equipment continues to arrive on site with fourteen CAT 793F haul trucks, the 6060 electrical shovel, two 994 loaders and three D10 dozers having been delivered by the end of June. Commissioning of the first electric shovel is ongoing, awaiting electrification at site in order to be deployed for in-pit activities. |
| Operational readiness | Commissioning teams are working with construction teams to begin planning for optimal overlapping of pre-operation activities with construction. Operational readiness continues in multiple areas with a focus on ramping up mining activities, hiring and training of process plant personnel, development and standardization of mine, mill and site maintenance processes and systems, and preparation for the transition of site services contracts. Autonomous hauling in support of mining activities began in January. During the second quarter 2023, up to seven CAT 793F haul trucks have begun operating in autonomous mode and a total of fourteen haul trucks have been commissioned. Autonomous drilling with two Pit Vipers began in the second quarter, with a third nearing commissioning completion. Owner mining has progressed well with nearly 1.1 million tonnes mined in the second quarter 2023. The stockpile has approximately 2.0 million tonnes of material on track to the target build-up of 5.0 million tonnes by the end of the year. The IAMGOLD mine operations team started operating 24/7 effectively in July. |
| Permitting and sustainability | All critical permitting and sustainability work is complete with non-critical path work ongoing and expected to be received during the remainder of the project. Community consultation and the implementation of the IBA with Indigenous partners continue. The health, safety and environmental programs and the emergency response plan are in development along with standard operating procedures. |
Funding Transaction with Sumitomo
On December 19, 2022, the Company announced it had entered into the JV Funding and Amending Agreement with SMM. As outlined in the JV Funding and Amending Agreement, as of May 1, 2023, SMM has contributed
For accounting purposes, the JV Funding and Amending Agreement does not meet the requirements under IFRS to recognize the dilution of the Company's interest in the Côté UJV as a sale - and so the Company will continue to account for
The Company has a right to repurchase the Transferred Interests on seven dates between November 30, 2023, and November 30, 2026, to return to its full
Up to the earlier of the Company exercising the Repurchase Option and November 30, 2026, the Company will pay a Repurchase Option fee to SMM equal to the three-month SOFR plus
The JV Funding and Amending Agreement also includes changes to the operator's fee, the governance structure, including increasing the approval threshold of the Oversight Committee for annual budgets and unbudgeted expenditures above specified amounts. IAMGOLD's rights on the Oversight Committee are maintained and IAMGOLD remains as the operator.
Project Expenditures1
On a
Since commencement of construction,
The estimated cost to complete the Côté Gold Project on a
The Company funded approximately
Based on the Company's
Upcoming Milestones and Schedule Summary
Côté Gold is expected to commence production in early 2024. Construction of the project commenced in the third quarter 2020 and major earthworks commenced in the first quarter 2021. Recently achieved milestones and those remaining of note are as follows:
Côté Gold Upcoming Milestones
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6077/176795_242ecc2b543e09e3_001full.jpg
The Company that potential further impacts, including, without limitation, inflationary pressures, global supply chain disturbances, disruptions from weather events resulting in limited or no productivity such as extreme cold or forest fires in dry, hot summer months, labour disputes and the tight labour market could impact the timing of activities, costs, availability of workforce, productivity and supply chain and logistics and, consequently, could further impact the timing of actual commercial production and, consequently, project costs.
Gosselin Zone
The Gosselin zone is located immediately to the northeast of the Côté Gold deposit. During the first quarter 2023, the Company reported assay results from its ongoing drill program with highlights including: 342.2 metres grading 1.99 g/t Au, 313.0 metres grading 1.29 g/t Au and 181.0 metres grading 1.50 g/t Au (see news release dated February 2, 2023).
Approximately 15,500 metres of diamond drilling is planned in 2023 to further delineate and expand the Gosselin mineral resources and test selected targets along an interpreted favourable deposit corridor, of which approximately 12,900 metres were completed in the first half of 2023. Technical studies are planned to advance metallurgical testing, conduct mining and infrastructure studies in order to review alternatives for potential inclusion of the Gosselin deposit into a future Côté Gold LOM plan.
Nelligan Gold Project | Chibougamau District, Quebec, Canada
The Nelligan Gold project is located approximately 45 kilometres south of the Chapais - Chibougamau area in Québec and is operating as a 75:25 earn-in option to joint venture with Vanstar Mining Resources Inc ("Vanstar"). The Company holds an option to earn an additional
During the first quarter 2023, the Company reported and filed an updated Mineral Resource Estimate (on a
Approximately 10,000 metres of step-out and delineation diamond drilling is planned in 2023, of which approximately 3,500 metres were completed in the first half of 2023.
Subsequent to the quarter, Vanstar reported assay result from the 2023 drill program with highlights including: 4.5 metres grading 10.53 g/t Au, 5.2 metres grading 6.97 g/t Au and 9.0 metres grading 3.76 g/t Au, (see Vanstar news release dated July 5, 2023).
Bambouk Assets | West Africa
On December 20, 2022, the Company announced it had entered into definitive agreements with Managem S.A (CAS: MNG) ("Managem") to sell its interests in the Bambouk Assets. Under the terms of the agreements, IAMGOLD will receive total cash payments of approximately
On April 25, 2023, the Company completed the sale of its
The remaining transactions are subject to certain regulatory approvals from the respective Governments, as well as other customary closing conditions included in the transaction agreements. The Company received consent of IAMGOLD's syndicate of lenders to complete the sale of its interests in the Bambouk Assets. Closings of the remaining parts of the Bambouk Assets transactions are anticipated before the end of the year.
Under the terms of the transaction agreements, exploration expenditures incurred to further develop the Bambouk Assets will be recouped from Managem upon closing.
FINANCIAL REVIEW
Liquidity and Capital Resources
As at June 30, 2023, the Company had
Within cash and cash equivalents,
Restricted cash in support of environmental closure costs obligations related to Essakane, Doyon division and Côté Gold project totaled
The following table summarizes the Company's outstanding long-term debt:
| June 30 | December 31 | ||||
| ($ millions)1 | 2023 | 2022 | |||
| Credit Facility | $ | - | $ | 455.0 | |
| 447.8 | 447.6 | ||||
| Term Loan | 377.6 | - | |||
| Equipment loans | 11.9 | 16.1 | |||
| $ | 837.3 | $ | 918.7 |
- Long-term debt does not include leases in place at continuing operations of
$128.5 million as at June 30, 2023 (December 31, 2022 -$73.8 million ). IFRS requires that the Company recognize100% of the Côté Gold UJV lease liability and right-of-use assets on its balance sheet, including the$24.0 million portion guaranteed by SMM.
Credit Facility
As at June 30, 2023, the Credit Facility was undrawn and the Company issued letters of credit under the Credit Facility in the amount of
Senior Notes
In September 2020, the Company completed the issuance of
Term Loan
On May 16, 2023, the Company entered into the
The Company incurred transaction costs of
The Term Loan has a minimum liquidity (
Liquidity Outlook
At June 30, 2023, the Company had available liquidity of
Based on
On April 25, 2023, the Company completed the sale of its
On May 16, 2023, the Company entered into the Term Loan of
Based on prevailing market conditions, which could impact project expenditures and operating cash flows, the Company believes that its available liquidity at June 30, 2023, combined with cash flows from operations and the expected proceeds from the sale of the remaining Bambouk Assets, is sufficient to fund the Côté UJV to complete the construction, commissioning and ramp up of the Côté Gold Project.
The Company's financial results are highly dependent on the price of gold, oil and foreign exchange rates and future changes in these prices will, therefore, impact performance. The Company's ability to draw down on the Credit Facility is dependent on its ability to meet net debt to EBITDA and interest ratio covenants.
Income Statement
Revenues - Revenues from continuing operations were
Cost of sales - Cost of sales excluding depreciation was
Depreciation expense - Depreciation expense was
Exploration expense - Exploration expense was
General and administrative expense - General and administrative expense was
Income tax expense - Income tax expense was
Operating Activities
Net cash flow from operating activities from continuing operations was
- Higher cash earnings of
$16.0 million , - A decrease in receivables and other current assets of
$31.5 million , and - An increase in trade and other payables of
$5.2 million primarily due to the timing of supplier payments.
Investing Activities
Net cash used in investing activities from continuing operations for the second quarter 2023 was
Financing Activities
Net cash from financing activities from continuing operations for the second quarter 2023 was
CONFERENCE CALL
A conference call will be held on Friday, August 11, 2023 at 8:30 a.m. (Eastern Time) for a discussion with senior management regarding IAMGOLD's second quarter 2023 operating performance and financial results.
Listeners may access the conference call via webcast from the events section of the Company's website at www.iamgold.com (webcast link below), or through the following dial-in numbers:
Toll free (North America): 1 (800) 319-4610
International: +1 (604) 638-5340
Webcast: https://services.choruscall.ca/links/iamgold2023q2.html
An online archive of the webcast will be available by accessing the Company's website at www.iamgold.com. A telephone replay will be available for one month following the call by dialing toll free 1 (800) 319-6413 within North America or +1 (604) 638-9010 from international locations and entering the passcode: 0315.
For more information, refer to the Management Discussion and Analysis ("MD&A") and unaudited consolidated interim Financial Statements as at and for the six months ended June 30, 2023, available on the Company's website at www.iamgold.com and on SEDAR at www.sedar.com. The Company uses certain non-GAAP financial performance measures throughout this news release. Please refer to the "Non-GAAP Financial Performance Measures" section of this news release and the MD&A for more information.
____________________
End Notes (excluding tables)
- This is a non-GAAP financial measure. See "Non-GAAP Financial Measures" section below. Further information on these non-GAAP financial measures is included on pages 30 to 37 of the Company's Q2 2023 MD&A filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
ABOUT IAMGOLD
IAMGOLD is an intermediate gold producer and developer based in Canada with operating mines in North America and West Africa. The Company is building the large-scale, long life Côté Gold project in Canada in partnership with Sumitomo Metal Mining Co. Ltd., which is expected to commence production in early 2024. In addition, the Company has an established portfolio of early stage and advanced exploration projects within high potential mining districts in the Americas. IAMGOLD employs approximately 3,300 people and is committed to maintaining its culture of accountable mining through high standards of Environmental, Social and Governance ("ESG") 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 ("JSI"), 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
info@iamgold.com
NON-GAAP FINANCIAL MEASURES
The Company has included certain non-GAAP financial measures to supplement its consolidated interim financial statements, which are presented in accordance with IFRS, including the following:
- Average Realized Gold Price per Ounce Sold
- Cash costs, cash costs per ounce sold, all in sustaining cost and all in sustaining cost per ounce sold
- Net earnings (loss) attributable to shareholders and adjusted net earnings (loss) attributable to shareholders
- Net cash from operating activities, before movements in non-cash working capital and non-current ore stockpiles
- Earnings before interest, income taxes, depreciation and amortization ("EBITDA")
- Mine-site free cash flow
- Sustaining and expansion capital expenditures
- Project expenditures
The Company believes that, in addition to conventional financial measures prepared in accordance with IFRS, these non-GAAP financial measures will provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS, may not be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The definitions of these measures, the reconciliation to the amounts presented in the consolidated interim financial statements, and the reasons for the presentation of these measures are included below. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.
Average Realized Gold Price per Ounce Sold
Average realized gold price per ounce sold is intended to enable management to understand the average realized price of gold sold in each reporting period after removing the impact of non-gold revenues and by-product credits, which, in the Company's case, are not significant and to enable investors to understand the Company's financial performance based on the average realized proceeds of selling gold production in the reporting period.
| ($ millions, continuing operations, except where noted) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||
| Revenues | $ | 238.8 | $ | 232.1 | $ | 465.0 | $ | 497.1 | |||
| By-product credits and other revenues | (0.5) | (0.8) | (1.0) | (1.7) | |||||||
| Gold revenues | $ | 238.3 | $ | 231.3 | $ | 464.0 | $ | 495.4 | |||
| Sales (000s oz) - | 121 | 131 | 240 | 278 | |||||||
| Average realized gold price per ounce1,2,3 ($/oz) | $ | 1,973 | $ | 1,773 | $ | 1,933 | $ | 1,781 |
- Average realized gold price per ounce sold may not be calculated based on amounts presented in this table due to rounding.
- Average realized gold price per ounce sold is calculated based on sales from the Company's Westwood and Essakane mines.
- Average realized gold price per ounce sold in the second quarter 2022 includes 37,500 ounces (75,000 ounces YTD 2022) at
$1,500 per ounce as delivered in accordance with the 2019 Prepay Arrangement.
Cash Costs, Cash Costs per Ounce Sold, AISC and AISC per Ounce Sold
The Company reports cash costs, cash costs per ounce sold, AISC and AISC per ounce sold in order to provide investors with information about key measures used by management to monitor performance of mine sites in commercial production and its ability to generate positive cash flow.
Cash costs include mine site operating costs such as mining, processing, administration, royalties, production taxes and realized derivative gains or losses, exclusive of depreciation, reclamation, capital expenditures and exploration and evaluation costs. AISC include cost of sales exclusive of depreciation expense, sustaining capital expenditures, which are required to maintain existing operations, capitalized exploration, sustaining lease principal payments, environmental rehabilitation accretion and depreciation, by-product credits and corporate general and administrative costs. These costs are then divided by the Company's attributable gold ounces sold by mine sites in commercial production in the period to arrive at the cash costs per ounce sold and the AISC per ounce sold. The Company reports the AISC measure with and without a deduction for by-product credits and reports the measure for the Essakane, Rosebel and Westwood mines.
The following table provides a reconciliation of cash costs and cash costs per ounce sold on an attributable basis to cost of sales as per the consolidated statements.
| ($ millions, continuing operations, except where noted) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||
| Cost of sales | $ | 212.2 | $ | 198.0 | $ | 395.3 | $ | 392.0 | |||
| Depreciation expense1 | (47.0) | (65.3) | (91.0) | (125.2) | |||||||
| Cost of sales1, excluding depreciation expense | $ | 165.2 | $ | 132.7 | $ | 304.3 | $ | 266.8 | |||
| Adjust for: | |||||||||||
| Other mining costs | (0.5) | (0.9) | (0.9) | (1.8) | |||||||
| Abnormal portion of operating costs at Essakane | - | - | (9.5) | - | |||||||
| Cost attributed to non-controlling interests2 | (13.1) | (9.7) | (22.6) | (20.0) | |||||||
| Cash costs - attributable | $ | 151.6 | $ | 122.1 | $ | 271.3 | $ | 245.0 | |||
| Total gold sales (000 oz) - attributable | 111 | 118 | 220 | 253 | |||||||
| Cash costs4 ($/oz sold) - attributable | $ | 1,372 | $ | 1,028 | $ | 1,234 | $ | 967 | |||
| Cash costs Rosebel - attributable | $ | - | $ | 69.0 | $ | 22.4 | $ | 129.7 | |||
| Gold sales Rosebel (000 oz) - attributable | - | 52 | 24 | 98 | |||||||
| Total cash costs4 all operations - attributable | $ | 151.6 | $ | 191.1 | $ | 293.7 | $ | 374.7 | |||
| Total gold sales3 all operations (000 oz) - attributable | 111 | 170 | 244 | 351 | |||||||
| Cash costs4 all operations ($/oz sold) - attributable | $ | 1,372 | $ | 1,119 | $ | 1,206 | $ | 1,066 |
- As per note 29 of the consolidated interim financial statements for cost of sales and depreciation expense.
- Adjustments for the consolidation of Essakane (
90% ) to its attributable portion of cost of sales. - Consists of Essakane, Rosebel and Westwood on an attributable basis of
90% ,95% and100% , respectively. - Cash costs per ounce sold may not be calculated based on amounts presented in this table due to rounding.
The following table provides a reconciliation of AISC and AISC per ounce sold on an attributable basis to cost of sales as per the consolidated interim financial statements.
| ($ millions, continuing operations, except where noted) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||
| Cost of sales | $ | 212.2 | $ | 198.0 | $ | 395.3 | $ | 392.0 | |||
| Depreciation expense1 | (47.0) | (65.3) | (91.0) | (125.2) | |||||||
| Cost of sales1, excluding depreciation expense | $ | 165.2 | $ | 132.7 | $ | 304.3 | $ | 266.8 | |||
| Adjust for: | |||||||||||
| Sustaining capital expenditures1 | 47.1 | 39.4 | 81.2 | 95.5 | |||||||
| Corporate general and administrative costs2 | 12.4 | 14.4 | 24.3 | 27.3 | |||||||
| Other costs3 | 2.9 | 3.0 | 5.5 | 1.6 | |||||||
| Abnormal portion of operating costs at Essakane | - | - | (9.5) | - | |||||||
| Cost attributable to non-controlling interests4 | (16.4) | (13.0) | (27.8) | (27.9) | |||||||
| AISC - attributable | $ | 211.2 | $ | 176.5 | $ | 378.0 | $ | 363.3 | |||
| Total gold sales (000s oz) - attributable | 111 | 118 | 220 | 253 | |||||||
| AISC6 ($/oz sold) - attributable | $ | 1,912 | $ | 1,485 | $ | 1,719 | $ | 1,434 | |||
| AISC excluding by-product credits6 ($/oz sold) - attributable | $ | 1,916 | $ | 1,492 | $ | 1,723 | $ | 1,441 | |||
| AISC Rosebel - attributable | $ | - | $ | 97.5 | $ | 32.0 | $ | 179.7 | |||
| Gold sales Rosebel (000s oz) - attributable | - | 52 | 24 | 98 | |||||||
| AISC all operations - attributable | $ | 211.2 | $ | 274.0 | $ | 410.0 | $ | 543.0 | |||
| Total gold sales5 all operations (000s oz) - attributable | 111 | 170 | 244 | 351 | |||||||
| AISC6 all operations ($/oz sold) - attributable | $ | 1,912 | $ | 1,604 | $ | 1,684 | $ | 1,545 | |||
| AISC all operations excluding by-product credits6 ($/oz sold) - attributable | $ | 1,916 | $ | 1,609 | $ | 1,688 | $ | 1,550 |
- Sustaining capital expenditures are expenditures required to support current production levels at a mine site and excludes all expenditures at the Company's development projects as well as certain expenditures at the Company's operating sites that are deemed expansionary in nature which result in a material increase in annual or life of mine gold ounce production, net present value, or reserves. Sustaining capital expenditures are further described below.
- Corporate general and administrative costs exclude depreciation expense.
- Other costs include sustaining lease principal payments and environmental rehabilitation accretion and depletion, insurance proceeds, partially offset by by-product credits.
- Adjustments for the consolidation of Essakane (
90% ) to its attributable portion of cost of sales. - Consists of Essakane, Rosebel and Westwood on an attributable basis of
90% ,95% and100% , respectively. - AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Sustaining and Expansion Capital Expenditure
Sustaining capital expenditures are expenditures required to support current production levels at a mine site and excludes all expenditures at the Company's development projects as well as certain expenditures at the Company's operating sites that are deemed expansionary in nature which result in a material increase in annual or life of mine gold ounce production, net present value, or reserves. The distinctions between sustaining and expansion capital used by the Company align with the guidelines set out by the World Gold Council. Expansion capital is capital expenditures incurred at new projects and capital expenditures related to major projects or expansion at existing operations where these projects will materially benefit the operations. This non-GAAP financial measure provides investors with transparency regarding the capital expenditures required to support the ongoing operations at its mines, relative to its total capital expenditures.
| ($ millions, except where noted) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||
| Capital expenditures for property, plant and equipment1 | $ | 219.8 | $ | 210.2 | $ | 413.9 | $ | 346.3 | |||
| Less: Capital expenditures - expansion: | 173.5 | 170.8 | 332.6 | 250.8 | |||||||
| Côté Gold | 172.8 | 169.6 | 331.4 | 248.1 | |||||||
| Essakane | 0.5 | 0.5 | 1.0 | 1.5 | |||||||
| Westwood | 0.2 | 0.7 | 0.2 | 1.2 | |||||||
| Capital expenditures - sustaining | 46.3 | 39.4 | 81.3 | 95.5 | |||||||
| Capital expenditures for exploration and evaluation assets | - | 0.4 | - | 0.8 | |||||||
| Working capital adjustments | 0.8 | (0.4) | $ | (0.1) | $ | (0.8) | |||||
| Capital expenditures - sustaining included in AISC | $ | 47.1 | $ | 39.4 | $ | 81.2 | $ | 95.5 |
- Capital expenditures as per the segmented note on an incurred basis
Project Expenditure
Project expenditure at Côté represents all the project construction capital costs incurred during construction and commissioning phase of the Côté Gold Project in line with the Côté Gold NI43-101 technical report and includes expansion capital expenditures, right-of-use assets acquired through leases, supplies inventory and the cost to build the ore stockpile, less certain cash and non-cash corporate level adjustments included in capital expenditures.
EBITDA and Adjusted EBITDA
EBITDA (earnings before income taxes, depreciation and amortization of finance costs), is an indicator of the Company's ability to produce operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures.
Adjusted EBITDA represents EBITDA excluding certain impacts such as changes in estimates of asset retirement obligations at closed sites, unrealized (gain) loss on non-hedge derivatives, impairment charges and reversal of impairment charges, write-down of assets and foreign exchange (gain) loss which are non-cash items and certain cash items that are non-recurring or temporary in nature as such items are not indicative of recurring operating performance. Management believes this additional information is useful to investors in understanding the Company's ability to generate operating cash flow by excluding from the calculation these non-cash amounts and cash amounts that are not indicative of the recurring performance of the underlying operations for the periods presented.
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to the consolidated interim financial statements:
| ($ millions, except where noted) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||
| Earnings before income taxes - continuing operations | $ | 112.1 | $ | 4.7 | $ | 131.4 | $ | 53.5 | |||
| Add: | |||||||||||
| Depreciation | 47.3 | 65.7 | 91.7 | 125.9 | |||||||
| Finance costs | 6.8 | 1.3 | 11.5 | 2.5 | |||||||
| EBITDA - continuing operations | $ | 166.2 | $ | 71.7 | $ | 234.6 | $ | 181.9 | |||
| Adjusting items: | |||||||||||
| Unrealized (gain)/loss on non-hedge derivatives | (3.2) | 6.9 | (2.4) | 3.6 | |||||||
| Insurance recoveries | (0.6) | - | (0.6) | (1.2) | |||||||
| Write-down of assets | 1.1 | - | 1.1 | 0.1 | |||||||
| NRV write-down of stockpiles/finished goods | 2.6 | 3.4 | 3.2 | 5.1 | |||||||
| Foreign exchange (gain)/loss | 4.6 | 1.2 | 4.6 | 4.8 | |||||||
| Write-down of Jubilee property | 1.3 | - | 1.3 | - | |||||||
| Abnormal portion of operating costs at Essakane | - | - | 9.5 | - | |||||||
| Fair value of deferred consideration from sale of Sadiola | (0.6) | (0.4) | (1.1) | (0.8) | |||||||
| Gain on sale of Bambouk | (109.1) | - | (109.1) | - | |||||||
| Changes in estimates of asset retirement obligations at closed sites | (1.1) | - | 3.1 | - | |||||||
| Other | 2.6 | (1.0) | 3.0 | (1.0) | |||||||
| Adjusted EBITDA - continuing operations | $ | 63.8 | $ | 81.8 | $ | 147.2 | $ | 192.5 | |||
| Including discontinued operations: | |||||||||||
| EBITDA - discontinued operations | $ | - | $ | 29.7 | $ | 14.4 | $ | 54.4 | |||
| Adjusted items: | |||||||||||
| Unrealized (gain) on non-hedge derivatives | - | (3.5) | - | (5.1) | |||||||
| Write-down of stockpile/finished goods | - | 1.1 | - | 3.7 | |||||||
| Loss on sale of Rosebel | - | - | 7.4 | - | |||||||
| Foreign exchange (gain)/loss | - | 0.2 | - | - | |||||||
| Severance costs | - | - | 1.5 | - | |||||||
| Write-down of assets | - | 0.7 | 0.1 | 2.0 | |||||||
| EBITDA - all operations | $ | 166.2 | $ | 101.4 | $ | 249.0 | $ | 236.3 | |||
| Adjusted EBITDA - all operations | $ | 63.8 | $ | 110.0 | $ | 170.6 | $ | 247.5 |
Adjusted Net Earnings Attributable to Equity Holders
Adjusted net earnings (loss) attributable to equity holders represents net earnings (loss) attributable to equity holders excluding certain impacts, net of taxes, such as changes in estimates of asset retirement obligations at closed sites, unrealized (gain) loss on non-hedge derivatives and warrants, impairment charges and reversal of impairment charges, write-down of assets and foreign exchange (gain) loss which are non-cash items and certain cash items that are non-recurring or temporary in nature as such items are not indicative of recurring operating performance. This measure is not necessarily indicative of net earnings (loss) or cash flows as determined under IFRS. Management believes this measure better reflects the Company's performance for the current period and is a better indication of its expected performance in future periods. As such, the Company believes that this measure is useful to investors in assessing the Company's underlying performance. The following table provides a reconciliation of earnings before income taxes and non-controlling interests as per the consolidated statements of earnings (loss) to the adjusted net earnings (loss) attributable to equity holders of the Company.
| ($ millions, except where noted) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||
| Earnings before income taxes and non-controlling interests - continuing operations | $ | 112.1 | $ | 4.7 | $ | 131.4 | $ | 53.5 | |||
| Adjusting items: | |||||||||||
| Unrealized gain/(loss) on non-hedge derivatives | (3.2) | 6.9 | (2.4) | 3.6 | |||||||
| Insurance recoveries | (0.6) | - | (0.6) | (1.2) | |||||||
| Write-down of assets | 1.1 | - | 1.1 | 0.1 | |||||||
| NRV write-down of stockpiles/finished goods | 2.7 | 7.3 | 3.4 | 9.1 | |||||||
| Foreign exchange (gain)/loss | 4.6 | 1.2 | 4.6 | 4.8 | |||||||
| Write-down of Jubilee property | 1.3 | - | 1.3 | - | |||||||
| Other finance costs | 3.3 | - | 6.0 | - | |||||||
| Abnormal portion of operating costs at Essakane | - | - | 10.1 | - | |||||||
| Fair value of deferred consideration from sale of Sadiola | (0.6) | (0.4) | (1.1) | (0.8) | |||||||
| Gain on sale of Bambouk | (109.1) | - | (109.1) | - | |||||||
| Changes in estimates of asset retirement obligations at closed sites | (1.1) | - | 3.1 | - | |||||||
| Other | 2.6 | (1.0) | 2.5 | (1.0) | |||||||
| Adjusted earnings before income taxes and non-controlling interests - continuing operations | $ | 13.1 | $ | 18.7 | $ | 50.3 | $ | 68.1 | |||
| Income taxes | (16.9) | (21.2) | (25.5) | (46.2) | |||||||
| Tax on foreign exchange translation of deferred income tax balances | (0.5) | (6.4) | 2.6 | (6.8) | |||||||
| Tax impact of adjusting items | 3.6 | - | 1.6 | 0.2 | |||||||
| Non-controlling interests | (2.6) | (5.7) | (7.0) | (13.5) | |||||||
| Adjusted net earnings (loss) attributable to equity holders - continuing operations | $ | (3.3) | $ | (14.6) | $ | 22.0 | $ | 1.8 | |||
| Adjusted net earnings (loss) per share attributable to equity holders - continuing operations | $ | (0.01) | $ | (0.03) | $ | 0.05 | $ | - | |||
| Including discontinued operations: | |||||||||||
| Net earnings before income tax and non-controlling interest - discontinued operations | $ | - | $ | 16.9 | $ | 14.3 | $ | 26.5 | |||
| Adjusted items: | |||||||||||
| Unrealized (gain) on non-hedge derivatives | - | (3.5) | - | (5.1) | |||||||
| NRV write-down of stockpiles/finished goods | - | (2.1) | - | 1.4 | |||||||
| Loss on sale of Rosebel | - | - | 7.4 | - | |||||||
| Foreign exchange (gain)/loss | - | 0.2 | - | - | |||||||
| Severance costs | - | - | 1.5 | - | |||||||
| Write-down of assets | - | 0.7 | 0.1 | 2.0 | |||||||
| Adjusted earnings before income taxes and non-controlling interests - discontinued operations | $ | - | $ | 12.2 | $ | 23.3 | $ | 24.8 | |||
| Income taxes | - | (3.9) | (8.0) | (5.5) | |||||||
| Tax impact of adjusting items | - | 0.4 | - | (0.7) | |||||||
| Non-controlling interests | - | (0.4) | (0.7) | (0.6) | |||||||
| Adjusted net earnings attributable to equity holders - discontinued operations | $ | - | $ | 8.3 | $ | 14.6 | $ | 18.0 | |||
| Adjusted net earnings per share attributable to equity holders - discontinued operations | $ | - | $ | 0.02 | $ | 0.03 | $ | 0.04 | |||
| Adjusted net earnings (loss) attributable to equity holders - all operations | $ | (3.3) | $ | (6.3) | $ | 36.6 | $ | 19.8 | |||
| Adjusted net earnings (loss) per share attributable to equity holders - all operations | $ | (0.01) | $ | (0.01) | $ | 0.08 | $ | 0.04 | |||
| Basic weighted average number of common shares outstanding (millions) | 481.0 | 478.9 | 480.0 | 478.3 |
Net Cash from Operating Activities before Changes in Working Capital
The Company makes reference to net cash from operating activities before changes in working capital which is calculated as net cash from operating activities less non-cash working capital items and non-current ore stockpiles. Working capital can be volatile due to numerous factors, including a build-up or reduction of inventories. Management believes that this non-GAAP measure, which excludes these non-cash items, provides investors with the ability to better evaluate the operating cash flow performance of the Company.
The following table provides a reconciliation of net cash from operating activities before changes in working capital to net cash from operating activities:
| ($ millions, except where noted) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||
| Net cash from operating activities - continuing operations | $ | 23.2 | $ | 33.9 | $ | 36.6 | $ | 149.9 | |||
| Adjusting items from non-cash working capital items and non-current ore stockpiles | |||||||||||
| Receivables and other current assets | (21.2) | 10.3 | (17.8) | 9.5 | |||||||
| Inventories and non-current ore stockpiles | 23.0 | 20.8 | 37.8 | 13.0 | |||||||
| Accounts payable and accrued liabilities | (3.2) | 2.0 | 20.9 | 3.3 | |||||||
| Net cash from operating activities before changes in working capital - continuing operations | 21.8 | 67.0 | 77.5 | 175.7 | |||||||
| Net cash from operating activities before changes in working capital - discontinued operations | - | 26.9 | 21.9 | 52.1 | |||||||
| Net cash from operating activities before changes in working capital | $ | 21.8 | $ | 93.9 | $ | 99.4 | $ | 227.8 |
Mine-Site Free Cash Flow
Mine-site free cash flow is calculated as cash flow from mine-site operating activities less capital expenditures from operating mine sites. The Company believes this measure is useful to investors in assessing the Company's ability to operate its mine sites without reliance on additional borrowing or usage of existing cash.
| ($ millions, except where noted) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||
| Net cash from operating activities - continuing operations | $ | 23.2 | $ | 33.9 | $ | 36.6 | $ | 149.9 | |||
| Add: | |||||||||||
| Operating cash flow used by non-mine site activities | 39.0 | 43.6 | 63.2 | 71.0 | |||||||
| Cash flow from operating mine-sites - continuing operations | 62.2 | 77.5 | 99.8 | 220.9 | |||||||
| Capital expenditures - continuing operations | 210.6 | 213.7 | 425.7 | 355.9 | |||||||
| Less: | |||||||||||
| Capital expenditures from construction and development projects and corporate | (163.0) | (172.6) | (343.2) | (258.3) | |||||||
| Capital expenditures from operating mine-sites - continuing operations | 47.6 | 41.1 | 82.5 | 97.6 | |||||||
| Mine-site cash flow - continuing operations | 14.6 | 36.4 | 17.3 | 123.3 | |||||||
| Cash flow from discontinued mine-sites | - | 48.0 | 15.4 | 74.3 | |||||||
| Capital expenditures from discontinued operations | - | (42.4) | (9.5) | (68.9) | |||||||
| Mine-site cash flow - discontinued operations | - | 5.6 | 5.9 | 5.4 | |||||||
| Total mine-site free cash flow | $ | 14.6 | $ | 42.0 | $ | 23.2 | $ | 128.7 |
Liquidity and Net Cash (Debt)
Liquidity is defined as cash and cash equivalents, short-term investments and the credit available under the Credit Facility. Net cash (debt) is calculated as cash, cash equivalents and short-term investments less long-term debt, lease liabilities and the drawn portion of the Credit Facility. The Company believes this measure provides investors with additional information regarding the liquidity position of the Company.
| June 30 | December 31 | ||||
| ($ millions, continuing operations, except where noted) | 2023 | 2022 | |||
| Cash and cash equivalents | $ | 747.7 | $ | 407.8 | |
| Available Credit Facility | 452.5 | 26.6 | |||
| Available Liquidity | $ | 1,200.2 | $ | 434.4 |
| June 30 | December 31 | ||||
| ($ millions, continuing operations, except where noted) | 2023 | 2022 | |||
| Cash and cash equivalents | $ | 747.7 | $ | 407.8 | |
| Lease liabilities | (128.5) | (73.8) | |||
| Long-term debt1 | (862.0) | (921.2) | |||
| Drawn letters of credit issued under Credit Facility | (37.5) | (18.4) | |||
| Net cash (debt) | $ | (280.3) | $ | (605.6) |
- Includes principal amount of the Notes of
$450.0 million , Term Loan of$400.0 million , Credit Facility of $nil and equipment loans of$12.0 million (December 31, 2022 -$450 million , $nil,$455.0 million and$16.2 million , respectively). Excludes deferred transaction costs and embedded derivative on the Notes.
CONSOLIDATED BALANCE SHEETS
| (Unaudited) (In millions of U.S. dollars) | June 30, 2023 | December 31, 2022 | ||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 747.7 | $ | 407.8 | ||
| Receivables and other current assets | 128.3 | 128.0 | ||||
| Inventories | 249.9 | 199.9 | ||||
| Assets held for sale | 34.7 | 785.6 | ||||
| 1,160.6 | 1,521.3 | |||||
| Non-current assets | ||||||
| Property, plant and equipment | 3,028.8 | 2,598.0 | ||||
| Exploration and evaluation assets | 15.9 | 28.3 | ||||
| Restricted cash | 58.9 | 56.3 | ||||
| Inventories | 74.6 | 92.4 | ||||
| Other assets | 106.6 | 128.8 | ||||
| 3,284.8 | 2,903.8 | |||||
| $ | 4,445.4 | $ | 4,425.1 | |||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 257.8 | $ | 294.1 | ||
| Income taxes payable | 26.0 | 37.8 | ||||
| Other current liabilities | 46.2 | 24.2 | ||||
| Current portion of lease liabilities | 13.6 | 5.1 | ||||
| Current portion of long-term debt | 8.7 | 8.7 | ||||
| Current portion of deferred revenue | 128.8 | - | ||||
| Liabilities held for sale | 6.4 | 276.3 | ||||
| 487.5 | 646.2 | |||||
| Non-current liabilities | ||||||
| Deferred income tax liabilities | 15.7 | 22.6 | ||||
| Provisions | 318.3 | 310.4 | ||||
| Lease liabilities | 114.9 | 68.7 | ||||
| Long-term debt | 828.6 | 910.0 | ||||
| Côté Gold repurchase option | 281.2 | - | ||||
| Deferred revenue | 117.3 | 240.8 | ||||
| Other liabilities | 5.2 | 19.6 | ||||
| 1,681.2 | 1,572.1 | |||||
| 2,168.7 | 2,218.3 | |||||
| Equity | ||||||
| Attributable to equity holders | ||||||
| Common shares | 2,731.5 | 2,726.3 | ||||
| Contributed surplus | 56.6 | 58.2 | ||||
| Accumulated deficit | (527.9) | (632.4) | ||||
| Accumulated other comprehensive income (loss) | (39.8) | (21.3) | ||||
| 2,220.4 | 2,130.8 | |||||
| Non-controlling interests | 56.3 | 76.0 | ||||
| 2,276.7 | 2,206.8 | |||||
| Contingencies and commitments | ||||||
| Subsequent event | ||||||
| $ | 4,445.4 | $ | 4,425.1 |
Refer to Q2 2023 Financial Statements for accompanying notes
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
| (Unaudited) | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (In millions of U.S. dollars, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||
| Continuing Operations: | ||||||||||||
| Revenues | $ | 238.8 | $ | 232.1 | $ | 465.0 | $ | 497.1 | ||||
| Cost of sales | (212.2) | (198.0) | (395.3) | (392.0) | ||||||||
| Gross profit | 26.6 | 34.1 | 69.7 | 105.1 | ||||||||
| General and administrative expenses | (12.8) | (16.3) | (25.5) | (30.5) | ||||||||
| Exploration expenses | (8.8) | (9.0) | (16.5) | (17.0) | ||||||||
| Other expenses | (3.6) | 2.1 | (8.9) | (0.7) | ||||||||
| Earnings from operations | 1.4 | 10.9 | 18.8 | 56.9 | ||||||||
| Finance costs | (6.8) | (1.3) | (11.5) | (2.5) | ||||||||
| Foreign exchange loss | (4.6) | (1.2) | (4.6) | (4.8) | ||||||||
| Gain on sale of Bambouk assets | 109.1 | - | 109.1 | - | ||||||||
| Interest income, derivatives and other investment gains (losses) | 13.0 | (3.7) | 19.6 | 3.9 | ||||||||
| Earnings before income taxes | 112.1 | 4.7 | 131.4 | 53.5 | ||||||||
| Income tax expense | (16.9) | (21.2) | (25.5) | (46.2) | ||||||||
| Net earnings (loss) from continuing operations | 95.2 | (16.5) | 105.9 | 7.3 | ||||||||
| Net earnings from discontinued operations, net of income tax | - | 13.0 | 6.3 | 21.0 | ||||||||
| Net earnings (loss) | $ | 95.2 | $ | (3.5) | $ | 112.2 | $ | 28.3 | ||||
| Net earnings (loss) from continuing operations attributable to: | ||||||||||||
| Equity holders | $ | 92.6 | $ | (22.2) | $ | 98.9 | $ | (6.2) | ||||
| Non-controlling interests | 2.6 | 5.7 | 7.0 | 13.5 | ||||||||
| Net earnings (loss) from continuing operations | $ | 95.2 | $ | (16.5) | $ | 105.9 | $ | 7.3 | ||||
| Net earnings (loss) attributable to: | ||||||||||||
| Equity holders | $ | 92.6 | $ | (9.6) | $ | 104.5 | $ | 14.2 | ||||
| Non-controlling interests | 2.6 | 6.1 | 7.7 | 14.1 | ||||||||
| Net earnings (loss) | $ | 95.2 | $ | (3.5) | $ | 112.2 | $ | 28.3 | ||||
| Attributable to equity holders | ||||||||||||
| Weighted average number of common shares outstanding (in millions) | ||||||||||||
| Basic | 481.0 | 478.9 | 480.0 | 478.3 | ||||||||
| Diluted | 484.2 | 478.9 | 483.8 | 482.5 | ||||||||
| Basic and diluted earnings (loss) per share from continuing operations | $ | 0.19 | $ | (0.05) | $ | 0.21 | $ | (0.01) | ||||
| Basic and diluted earnings per share from discontinued operations | $ | 0.00 | $ | 0.03 | $ | 0.01 | $ | 0.04 | ||||
| Basic and diluted earnings (loss) per share | $ | 0.19 | $ | (0.02) | $ | 0.22 | $ | 0.03 | ||||
Refer to Q2 2023 Financial Statements for accompanying notes
CONSOLIDATED STATEMENTS OF CASH FLOWS
| (Unaudited) | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (In millions of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||
| Operating activities | ||||||||||||
| Net earnings from continuing operations | $ | 95.2 | $ | (16.5) | $ | 105.9 | $ | 7.3 | ||||
| Adjustments for: | ||||||||||||
| Depreciation expense | 47.3 | 65.7 | 91.7 | 125.9 | ||||||||
| Gain on sale of Bambouk assets | (109.1) | - | (109.1) | - | ||||||||
| Deferred revenue recognized | - | (48.7) | - | (97.5) | ||||||||
| Income tax expense | 16.9 | 21.2 | 25.5 | 46.2 | ||||||||
| Write-down of inventories | 3.5 | 4.1 | 4.4 | 6.3 | ||||||||
| Other non-cash items | (2.6) | 9.4 | (3.3) | 1.5 | ||||||||
| Adjustments for cash items: | ||||||||||||
| Proceeds from gold prepayment | - | 59.0 | - | 118.0 | ||||||||
| Proceeds from insurance claim | - | 0.7 | - | 0.7 | ||||||||
| Settlement of derivatives | 3.2 | 8.6 | 6.2 | 13.4 | ||||||||
| Disbursements related to asset retirement obligations | (0.6) | (0.6) | (0.8) | (1.0) | ||||||||
| Movements in non-cash working capital items and non-current ore stockpiles | 1.4 | (33.1) | (40.9) | (25.8) | ||||||||
| Cash from operating activities, before income taxes paid | 55.2 | 69.8 | 79.6 | 195.0 | ||||||||
| Income taxes paid | (32.0) | (35.9) | (43.0) | (45.1) | ||||||||
| Net cash from operating activities related to continuing operations | 23.2 | 33.9 | 36.6 | 149.9 | ||||||||
| Net cash from operating activities related to discontinued operations | - | 48.0 | 15.4 | 74.3 | ||||||||
| Net cash from operating activities | 23.2 | 81.9 | 52.0 | 224.2 | ||||||||
| Investing activities | ||||||||||||
| Capital expenditures for property, plant and equipment | (210.6) | (213.3) | (425.7) | (355.1) | ||||||||
| Capitalized borrowing costs | (17.6) | (13.4) | (24.5) | (13.7) | ||||||||
| Disposal of marketable securities (net) | - | 2.1 | - | 9.9 | ||||||||
| Proceeds from sale of Rosebel | 2.8 | - | 389.2 | - | ||||||||
| Proceeds from sale of Bambouk assets | 165.6 | - | 165.6 | - | ||||||||
| Other investing activities | 5.9 | - | 10.3 | - | ||||||||
| Net cash from (used in) investing activities related to continuing operations | (53.9) | (224.6) | 114.9 | (358.9) | ||||||||
| Net cash used in investing activities related to discontinued operations | - | (44.6) | (8.2) | (70.8) | ||||||||
| Net cash from (used in) investing activities | (53.9) | (269.2) | 106.7 | (429.7) | ||||||||
| Financing activities | ||||||||||||
| Proceeds from (repayment of) credit facility | (200.0) | 150.0 | (455.0) | 150.0 | ||||||||
| Proceeds from second lien term loan | 379.0 | - | 379.0 | - | ||||||||
| Funding from Sumitomo Metal Mining Co. Ltd. | 79.0 | - | 275.1 | - | ||||||||
| Dividends paid to non-controlling interests | (1.7) | (11.6) | (1.7) | (11.6) | ||||||||
| Other financing activities | (10.1) | (4.3) | (15.6) | (7.7) | ||||||||
| Net cash from financing activities related to continuing operations | 246.2 | 134.1 | 181.8 | 130.7 | ||||||||
| Net cash used in financing activities related to discontinued operations | - | (4.2) | (2.0) | (8.3) | ||||||||
| Net cash from financing activities | 246.2 | 129.9 | 179.8 | 122.4 | ||||||||
| Effects of exchange rate fluctuation on cash and cash equivalents | 0.1 | (11.0) | 2.2 | (10.7) | ||||||||
| Increase (decrease) in cash and cash equivalents - all operations | 215.6 | (68.4) | 340.7 | (93.8) | ||||||||
| Increase (decrease) in cash and cash equivalents - held for sale | - | 2.7 | (0.8) | (16.0) | ||||||||
| Increase (decrease) in cash and cash equivalents - continuing operations | 215.6 | (65.7) | 339.9 | (109.8) | ||||||||
| Cash and cash equivalents, beginning of the period | 532.1 | 500.8 | 407.8 | 544.9 | ||||||||
| Cash and cash equivalents, end of the period | $ | 747.7 | $ | 435.1 | $ | 747.7 | $ | 435.1 | ||||
Refer to Q2 2023 Financial Statements for accompanying notes
QUALIFIED PERSON AND TECHNICAL INFORMATION
The technical and scientific information relating to exploration activities disclosed in this document was prepared under the supervision of and verified and reviewed by Craig MacDougall, P.Geo., Executive Vice President, Growth, IAMGOLD. Mr. MacDougall is a "qualified person" (a "QP") as defined in NI 43-101.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
All information included in this news release, including any information as to the Company's future financial or operating performance and other statements that express management's expectations or estimates of future performance, 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", "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", or "project" or the negative of these words or other variations on these words or comparable terminology. For example, forward-looking statements in this news release include, without limitation, those under the headings "Outlook", "Quarterly Updates", "Exploration", "Liquidity and Capital Resources" and "Market Trends" and 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, costs and capital and other expenditures such as exploration and including depreciation expense and effective tax rate; the expected costs and schedule to complete construction of the Côté Gold project; the updated life-of-mine plan, ramp up assumptions and other project metrics including operating costs in respect to the Côté Gold project; 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; 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 and inflationary pressures; global supply chain constraints; the ability to secure alternative sources of consumables of comparable quality and on reasonable terms; workforce and contractor availability, labour costs and other labour impacts; the impacts of weather; the future price of gold and other commodities; foreign exchange rates and currency fluctuations; impairment assessments and assets carrying values estimates; safety and security concerns in the jurisdictions in which the Company operates and the impact thereof on the Company's operational and financial performance and financial condition; and government regulation of mining operations.
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 successfully complete the construction of Côté Gold and commence commercial production from the 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; security risks, including civil unrest, war or terrorism and disruptions to the Company's supply chain as a result of such security risks, particularly in Burkina Faso and the Sahel region surrounding the Company's Essakane mine; the ongoing impacts of COVID-19 (and its variants) on the Company and its workforce; 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 (such as diesel 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 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; 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 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.sedar.com or www.sec.gov/edgar.shtml 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.
All material information on IAMGOLD can be found at www.sedar.com 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/176795
FAQ
What were IAMGOLD's gold production and revenues for Q2 2023?
What was the cost of sales per ounce sold for IAMGOLD in Q2 2023?
What were IAMGOLD's net earnings and adjusted net loss for Q2 2023?
What was IAMGOLD's available liquidity as of June 30, 2023?
What was IAMGOLD's EBITDA from continuing operations for Q2 2023?
