Golden Goose Resources Corp. press release
IAMGOLD Reports Third Quarter 2023 Results
CSE - Canadian National Stock Exchange · Gold · Lithium · Silver · Copper · Canada
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
Toronto, Ontario--(Newsfile Corp. - November 9, 2023) - IAMGOLD Corporation(NYSE: IAG) (TSX: IMG) ("IAMGOLD" or the "Company") today reported its financial and operating results for the third quarter ended September 30, 2023.
HIGHLIGHTS:
Operations
Attributable gold production from continuing operations was 109,000 ounces. Attributable gold production guidance for 2023 is unchanged and is expected to be in the range of 410,000 to 470,000 ounces.
Revenues from continuing operations were $224.5 million from sales of 116,000 ounces (106,000 ounces on an attributable basis) at an average realized gold price1 of $1,937 per ounce.
Cost of sales per ounce sold from continuing operations was $1,436, cash cost1 per ounce sold from continuing operations was $1,400 and all-in-sustaining-cost1 ("AISC") per ounce sold from continuing operations was $1,975.
The Company now expects cash costs1 to be between $1,250 and $1,325 per ounce sold and AISC1 to be between $1,750 and $1,825 per ounce sold for the year, an increase from prior guidance due to the impact of the security situation in Burkina Faso on the supply chain combined with continued elevated costs from the recent inflationary cycle in the industry.
In health and safety, for the nine months ended September 30, 2023, the Company reported a DARTFR (days away, restricted, transferred duty frequency rate) of 0.36 and a TRIFR (total recordable injuries frequency rate) of 0.66, both with a decreasing trend since the last quarter.
Financial
Net earnings (loss) attributable to equity holders1 of $(0.8) million or $(0.00) per share and adjusted net loss attributable to equity holders1 of $(4.0) million or $(0.01) per share.
Net cash from operating activities was $37.5 million. Net cash from operating activities, before movements in non-cash working capital and non-current ore stockpiles1 was $29.3 million.
Earnings before interest, income taxes, depreciation and amortization ("EBITDA")1from continuing operations was $61.8 million and adjusted EBITDA1 was $57.8 million.
The Company has available liquidity1 of $1,001.8 million comprised of cash and cash equivalents of $548.9 million and the available balance of the secured revolving credit facility ("Credit Facility") of $452.9 million as at September 30, 2023.
Côté Gold
As of September 30, 2023, the Côté Gold Project was estimated to be 90.6% complete, with construction progress approximately 92% complete.
On a 100% basis at the UJV level, the Côté Gold Project incurred project expenditures1 of $317.3 million ($222.0 million at 70%) in the third quarter 2023.
Since commencement of construction, $2.54 billion ($1.78 billion at 70%) of the planned $2.965 billion ($2.08 billion at 70%) of project expenditures has been incurred. The total expected project expenditures are expected to be in line with the planned $2.965 billion (± 1.5%) and the estimated remaining cost to complete the Côté Gold Project on a 100% basis is $425 million ($298 million at 70%) on an incurred basis assuming a USDCAD rate of 1.35 during the remainder of construction. A portion of the expenditures is expected to be incurred in 2024 during commissioning and ramp up.
IAMGOLD is expected to fund $325 million during the remainder of construction based on its 60.3% ownership in the Côté Gold unincorporated joint venture.
Corporate
On April 25, 2023, the Company completed the sale of its 90% interest in the Boto Gold Project in Senegal and its 100% 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 October 26, 2023, the Company received $32.0 million in deferred consideration from the closing of the sale of Senegal Assets.
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 received 6.3 million common shares from Jaguar for an aggregate value of $9.0 million. The Company will also retain a net smelter royalty on both projects.
On September 21, 2023, the Company announced the retirement of Maryse Bélanger from the Board of Directors (the "Board") for personal reasons and other commitments. Immediately following Ms. Bélanger's retirement, the Board appointed David Smith as Chair of the Board.
On September 27, 2023, Bruno Lemelin was appointed to the role of Chief Operating Officer, having served as SVP, Operations & Projects since March 2020.
On November 9, 2023, the Company entered into a one year extension of its Credit Facility extending its maturity to January 31, 2026. As part of the extension, the Credit Facility was reduced to $425 million based on the Company's requirements for a senior revolving facility for its overall business.
On November 9, 2023, the Company announced the retirement of Ian Ashby from the Board, and the appointment of Anne Marie Toutant as an independent director.
"IAMGOLD finished the quarter with year-to-date production from continuing operations of 329,000 ounces, putting the company well on track to meet its annual production guidance of 410,000 to 470,000 ounces," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "This performance has been driven by the continued resiliency of our Essakane operating teams as they manage the operation within a geopolitically challenging environment, as well as the continued dedication of the Westwood team as they rebuild and reopen mining areas underground. Despite these achievements, operating costs, particularly in Burkina Faso, remain high as price increases from the prior inflationary period are slow to decline and the higher cost of operating and moving goods within the country remain. At IAMGOLD, we always place the health and safety of our employees first, and we work continuously with a focus on our goal of Zero Harm®- for the people and the places in which we operate."
"At Côté Gold we are nearing the finish line of construction. Pre-commissioning teams are starting to receive hand-off of project elements from construction teams, as activities at site start the shift from major construction to finalization and commissioning. Construction at the end of September was 92% complete, putting the project on track for gold production in the first quarter of next year. It is an exciting time for IAMGOLD as this is a project that is critical for the repositioning of this company, as once online, IAMGOLD will have a significantly higher production base and lower cost profile, providing a strong foundation of cashflow and growth opportunities in Canada."
QUARTERLY SUMMARY
The following table summarizes certain operating and financial results for the three months ended September 30, 2023 (Q3 2023), September 30, 2022 (Q3 2022) and the nine months ended September 30 (or YTD) 2023 and 2022 and certain measures of the Company's financial position as at September 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.
| | | Q3 2023 | | | Q3 2022 | | | YTD 2023 | | | YTD 2022 | | Key Operating Statistics | | | | | | | | | | | | | Gold production - attributable (000s oz) | | | | | | | | | | | | | - Essakane | | 84 | | | 115 | | | 264 | | | 334 | | - Westwood | | 25 | | | 19 | | | 65 | | | 49 | | Total from continuing operations | | 109 | | | 134 | | | 329 | | | 383 | | - Rosebel | | - | | | 50 | | | 25 | | | 145 | | Total gold production - attributable (000s oz) | | 109 | | | 184 | | | 354 | | | 528 | | Gold sales - attributable (000s oz) | | | | | | | | | | | | | - Essakane | | 84 | | | 120 | | | 265 | | | 343 | | - Westwood | | 22 | | | 18 | | | 61 | | | 48 | | Total from continuing operations | | 106 | | | 138 | | | 326 | | | 391 | | - Rosebel | | - | | | 49 | | | 24 | | | 147 | | Total gold sales - attributable (000s oz) | | 106 | | | 187 | | | 350 | | | 538 | | Cost of sales1($/oz sold) - attributable | | | | | | | | | | | | | - Essakane | $ | 1,417 | | $ | 954 | | $ | 1,249 | | $ | 860 | | - Westwood | | 1,506 | | | 1,817 | | | 1,674 | | | 2,043 | | Total from continuing operations | $ | 1,436 | | $ | 1,067 | | $ | 1,329 | | $ | 1,007 | | - Rosebel | | - | | | 1,346 | | | 949 | | | 1,355 | | Total cost of sales1($/oz sold) - attributable | $ | 1,436 | | $ | 1,140 | | $ | 1,303 | | $ | 1,102 | | Cash costs2($/oz sold) - attributable | | | | | | | | | | | | | - Essakane | $ | 1,372 | | $ | 952 | | $ | 1,201 | | $ | 858 | | - Westwood | | 1,506 | | | 1,803 | | | 1,667 | | | 2,015 | | Total from continuing operations | $ | 1,400 | | $ | 1,063 | | $ | 1,288 | | $ | 1,001 | | - Rosebel | | - | | | 1,305 | | | 949 | | | 1,316 | | Total cash costs2($/oz sold) - attributable | $ | 1,400 | | $ | 1,126 | | $ | 1,265 | | $ | 1,087 | | AISC2($/oz sold) - attributable | | | | | | | | | | | | | - Essakane | $ | 1,798 | | $ | 1,248 | | $ | 1,510 | | $ | 1,171 | | - Westwood | | 2,138 | | | 2,208 | | | 2,486 | | | 2,541 | | Total from continuing operations | $ | 1,975 | | $ | 1,448 | | $ | 1,803 | | $ | 1,439 | | - Rosebel | | - | | | 1,873 | | | 1,358 | | | 1,845 | | Total AISC2($/oz sold) - attributable | $ | 1,975 | | $ | 1,559 | | $ | 1,773 | | $ | 1,550 | | Average realized gold price2 ($/oz) | | | | | | | | | | | | | - Continued operations | $ | 1,937 | | $ | 1,677 | | $ | 1,934 | | $ | 1,745 | | - Discontinued operations | | - | | | 1,726 | | | 1,905 | | | 1,824 | | Total average realized gold price2 ($/oz) | $ | 1,937 | | $ | 1,690 | | $ | 1,933 | | $ | 1,766 |
1. Throughout this news release, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the consolidated interim financial statements. 2. 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.
| | | Q3 2023 | | | Q3 2022 | | | YTD 2023 | | | YTD 2022 | | Financial Results ($ millions from continuing operations) | | | | | | | | | | | | | Revenues | $ | 224.5 | | $ | 254.5 | | $ | 689.5 | | $ | 751.6 | | Gross profit | $ | 4.6 | | $ | 22.8 | | $ | 74.3 | | $ | 127.9 | | EBITDA1 | $ | 61.8 | | $ | (41.3) | | $ | 310.8 | | $ | 195.0 | | - Continuing operations | $ | 61.8 | | $ | 52.5 | | $ | 296.4 | | $ | 234.4 | | - Discontinued operations | $ | - | | $ | (93.8) | | $ | 14.4 | | $ | (39.4) | | Adjusted EBITDA1 | $ | 57.8 | | $ | 103.1 | | $ | 227.9 | | $ | 350.6 | | - Continuing operations | $ | 57.8 | | $ | 82.1 | | $ | 204.5 | | $ | 274.6 | | - Discontinued operations | $ | - | | $ | 21.0 | | $ | 23.4 | | $ | 76.0 | | Net earnings (loss) attributable to equity holders | $ | (0.8) | | $ | (108.3) | | $ | 103.7 | | $ | (94.1) | | - Continuing operations | $ | (0.8) | | $ | (45.5) | | $ | 98.1 | | $ | (51.7) | | - Discontinued operations | $ | - | | $ | (62.8) | | $ | 5.6 | | $ | (42.4) | | Adjusted net earnings (loss) attributable to equity holders1 | $ | (4.0) | | $ | (13.7) | | $ | 32.6 | | $ | 6.1 | | - Continuing operations | $ | (4.0) | | $ | (22.7) | | $ | 18.0 | | $ | (20.9) | | - Discontinued operations | $ | - | | $ | 9.0 | | $ | 14.6 | | $ | 27.0 | | Net earnings (loss) per share attributable to equity holders - continuing operations | $ | (0.00) | | $ | (0.10) | | $ | 0.21 | | $ | (0.11) | | Adjusted net earnings (loss) per share attributable to equity holders1- continuing operations | $ | (0.01) | | $ | (0.05) | | $ | 0.04 | | $ | (0.04) | | Net cash from operating activities before changes in working capital1- continuing operations | $ | 29.3 | | $ | 85.4 | | $ | 106.8 | | $ | 261.1 | | Net cash from operating activities | $ | 37.5 | | $ | 117.7 | | $ | 89.5 | | $ | 341.9 | | - Continuing operations | $ | 37.5 | | $ | 94.5 | | $ | 74.1 | | $ | 244.4 | | - Discontinued operations | $ | - | | $ | 23.2 | | $ | 15.4 | | $ | 97.5 | | Mine-site free cash flow1 | $ | 2.1 | | $ | 58.6 | | $ | 25.3 | | $ | 187.3 | | - Continuing operations | $ | 2.1 | | $ | 64.9 | | $ | 19.4 | | $ | 188.2 | | - Discontinued operations | $ | - | | $ | (6.3) | | $ | 5.9 | | $ | (0.9) | | Capital expenditures1,2- sustaining | $ | 50.4 | | $ | 44.3 | | $ | 131.7 | | $ | 139.8 | | Capital expenditures1,2- expansion | $ | 207.3 | | $ | 154.0 | | $ | 539.9 | | $ | 404.8 | | | | September 30 | | | December 31 | | | September 30 | | | December 31 | | | | 2023 | | | 2022 | | | 2023 | | | 2022 | | Financial Position ($ millions) | | | | | | | | | | | | | Cash and cash equivalents | $ | 548.9 | | $ | 407.8 | | $ | 548.9 | | $ | 407.8 | | Long-term debt | $ | 836.0 | | $ | 918.7 | | $ | 836.0 | | $ | 918.7 | | Net cash (debt)1 | $ | (478.1) | | $ | (605.6) | | $ | (478.1) | | $ | (605.6) | | Available credit facility | $ | 452.9 | | $ | 26.6 | | $ | 452.9 | | $ | 26.6 |
1. 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. 2. 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 | Updated Full Year Guidance 20231 | Previous Full Year Guidance 20232 | | Essakane (000s oz) | 264 | 340 - 380 | 340 - 380 | | Westwood (000s oz) | 65 | 70 - 90 | 70 - 90 | | Total attributable production (000s oz)3 | 329 | 410 - 470 | 410 - 470 | | Cost of sales3($/oz sold) | $1,329 | $1,250 - $1,325 | $1,125 - $1,175 | | Cash costs3,4($/oz sold) | $1,288 | $1,250 - $1,325 | $1,125 - $1,175 | | AISC3,4($/oz sold) | $1,803 | $1,750 - $1,825 | $1,625 - $1,700 | | Depreciation expense ($ millions) | $144.9 | $205 - $215 | $245 - $255 | | Income taxes5paid ($ millions) | $67.0 | $70 - $80 | $70 - $80 |
1. The updated full year guidance is based on the following 2023 full year assumptions, before the impact of hedging: average realized gold price of $1,912 per ounce, USDCAD exchange rate of 1.34, EURUSD exchange rate of 1.09 and average crude oil price of $80 per barrel. 2. The previous 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. 3. Consists of Essakane and Westwood on an attributable basis of 90% and 100%, respectively. 4. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures". 5. 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. Westwood production is expected to be at the top end of the guidance range and Essakane production is expected to be within the guidance range.
Costs Outlook
Cash costs1 guidance for 2023 has been revised to $1,250 and $1,325 per ounce sold and AISC1guidance is revised with costs expected to be between $1,750 and $1,825 per ounce sold, mainly due to cost pressures at Essakane resulting from the security situation, combined with continued elevated prices from recent inflation and increased underground rehabilitation performed at Westwood. At Essakane, the landed cost of fuel and other consumables has increased due to the measures taken to reduce the impact of the security situation on the supply chain as well as the increased cost of producing energy used in the mill arising from the periodic substitution of more expensive light fuel in periods when heavy fuel used for power generation is unavailable. At Westwood, the level of ground support required for the development and rehabilitation work increased relative to the annual plan combined with the advancing of a portion of the 2024 scope of work into the current year to de-risk future years.
Capital Expenditures
Sustaining capital expenditures¹ for 2023 have been revised downwards to approximately $190 million (± 5%). The reduction primarily relates to lower volumes of capitalized stripping year-to-date at Essakane due to periodic interruptions to mining activity due to supply shortages of light fuel. At Westwood, sustaining capital expenditure guidance has been refined following an increase in guidance last quarter as a result of increased visibility into end of year underground development and rehabilitation rates (See quarterly update on "Essakane, Burkina Faso" and "Westwood, Canada").
Expansion capital1 for 2023, excluding Côté Gold, is expected to be approximately $5 million, on an incurred basis. Project expenditures1to complete the Côté Gold Project, from January 1, 2023 onwards, are expected to be $875 million (± 5%), on a 70% basis (see also "Côté Gold Project"). Project expenditures1at Côté Gold consist of capital expenditures, right-of-use assets purchased through leasing, supplies inventory and the cost to build the ore stockpile. Some of the Côté Gold project expenditures will be incurred in early 2024 during commissioning and ramp up.
| | Actual YTD 20231 | Updated Full Year Guidance 20232 | Previous Full Year Guidance 2023 | | | | | | | | ($ millions) | Sustaining3 | Expansion | Total | Sustaining3 | Expansion | Total | Sustaining3 | Expansion | Total | | Essakane | $ 83.2 | $ 1.4 | $ 84.6 | $ 125 | $ 5 | $ 130 | $ 150 | $ 5 | $ 155 | | Westwood | 48.2 | 0.2 | 48.4 | 65 | - | 65 | 80 | - | 80 | | | $ 131.4 | $ 1.6 | $ 133.0 | $ 190 | $ 5 | $ 195 | 230 | 5 | 235 | | Côté Gold4,5 | - | 581.8 | 581.8 | - | 875 | 875 | - | 825 - 875 | 825 - 875 | | Corporate | 0.3 | - | 0.3 | - | - | - | - | - | - | | Total6,7,8 | $ 131.7 | $ 583.4 | $ 715.1 | $ 190 | $ 880 | $ 1,070 | $ 230 | $ 830 - 880 | $ 1,060 - 1,110 |
1. 100% basis, unless otherwise stated. 2. Capital expenditures guidance (±5%) at Essakane and Westwood and Côté Gold. 3. Sustaining capital includes capitalized stripping of (i) $20.8 million for Essakane and $0.3 million for Westwood in the third quarter 2023, (ii) $41.5 million for Essakane and $4.2 million for Westwood YTD 2023, and (iii) $65 million for Essakane and $5.0 million for Westwood for the full year revised guidance. See "Outlook" sections below. 4. 70% basis. Some of the Côté Gold project expenditures will be incurred in 2024 during commissioning and ramp up. 5. Represents Côté Gold project expenditures of $581.8 million (see Côté Gold Project) that consists of capital expenditures of $538.3 million, right-of-use assets of $39.8 million, supplies inventory and the cost to build the ore stockpile, less certain cash and non-cash corporate level adjustments included in capital expenditures. 6. Includes $3.0 million of capitalized exploration and evaluation expenditures also included in the Exploration Outlook guidance table. 7. Capitalized borrowing costs are not included. 8. See "Costs Outlook" section above.
Exploration Outlook
Exploration expenditures for 2023 are expected to be approximately $18.0 million, including $3.0 million on the Gosselin resource delineation drilling program, as well as other near-mine and greenfield programs.
| | | Actual YTD 2023 | | | Full Year Guidance 2023 | | | | | | | | | | | | | | ($ millions) | | Capitalized | | | Expensed | | | Total | | | Capitalized | | | Expensed | | | Total | | Exploration projects - greenfield | $ | - | | $ | 9.3 | | $ | 9.3 | | $ | - | | $ | 13 | | $ | 13 | | Exploration projects - brownfield | | 3.1 | | | 1.5 | | | 4.6 | | | 3 | | | 2 | | | 5 | | | $ | 3.1 | | $ | 10.8 | | $ | 13.9 | | $ | 3 | | $ | 15 | | $ | 18 |