GoldHaven Resources Corp. press release
IAMGOLD Reports Third Quarter 2021 Results
CSE - Canadian National Stock Exchange · Gold · Copper · Arsenic · Lead · Zinc · Silver · Tin · Indium · Tungsten · Molybdenum · Gemstone · Lithium · Niobium · Beryllium · Tantalum · Canada
_All monetary amounts are expressed in U.S. dollars, unless otherwise indicated. _For more information, refer to the management discussion and analysis ("MD&A") and unaudited consolidated interim financial statements as at and for the three and nine months ended September 30, 2021.
HIGHLIGHTS:
Attributable production of 448,000 ounces YTD 2021
Mine-site free cash flow of $121.6 million and adjusted EBITDA of $265.7 million YTD 2021
Q3 2021 adjusted net loss of $20.1 million or $0.04 per share attributable to equity holders
Total available liquidity of $1.2 billion, including $748.3 million in cash and equivalents
Côté Gold 36% complete; project remains on track for commercial production in H2-2023
Commitment to achieve net negative GHG emissions by no later than by 2050
Toronto, Ontario--(Newsfile Corp. - November 3, 2021) - IAMGOLD Corporation (TSX: IMG) (NYSE: IAG)("IAMGOLD" or the "Company") reports its consolidated financial and operating results for the three and nine months ended September 30, 2021. Preliminary operating results for the third quarter of 2021 were disclosed on October 18, 2021. Key highlights of operating performance and financial results include:
| ($ millions, except where noted) | | | Q3 2021 | Q2 2021 | YTD 2021 | | | | | | | Revenues | | | $ | 294.1 | | $ | 265.6 | | $ | 857.1 | | Gross profit | | | $ | 6.9 | | $ | 27.9 | | $ | 79.0 | | EBITDA1 | | | $ | 19.6 | | $ | 87.0 | | $ | 220.5 | | Adjusted EBITDA1 | | | $ | 82.5 | | $ | 83.0 | | $ | 265.7 | | Net earnings (loss) attributable to equity holders | | | $ | (75.3 | ) | $ | (4.5 | ) | $ | (60.3) | | Net earnings (loss) per share attributable to equity holders | | | $ | (0.16 | ) | $ | (0.01 | ) | $ | (0.13) | | Adjusted net earnings (loss) attributable to equity holders1 | | | $ | (20.1 | ) | $ | (3.6 | ) | $ | (17.5) | | Adjusted net earnings (loss) per share attributable to equity holders1 | | | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.04) | | Net cash from operating activities | | | $ | 78.5 | | $ | 37.3 | | $ | 217.5 | | Net cash from operating activities before changes in working capital1 | | | $ | 79.6 | | $ | 54.9 | | $ | 217.0 | | Mine-site free cash flow1 | | | $ | 31.9 | | $ | 1.9 | | $ | 121.6 | | Capital expenditures - sustaining | | | $ | 26.4 | | $ | 23.9 | | $ | 64.0 | | Capital expenditures - expansion | | | $ | 113.0 | | $ | 128.4 | | $ | 330.2 | | | | | | | | | | | | | | | | | Q3 2021 | Q2 2021 | Q1 2021 | | | | | | | Cash, cash equivalents and short-term investments | | | $ | 748.3 | | $ | 829.8 | | $ | 967.8 | | Long-term debt | | | $ | 466.8 | | $ | 456.5 | | $ | 466.7 | | Available credit facility | | | $ | 498.3 | | $ | 498.2 | | $ | 498.2 |
1. This is a non-GAAP performance measure. See "Non-GAAP Performance Measures".
Gordon Stothart, President and CEO of IAMGOLD commented, "The third quarter of 2021 saw improvement in our operating performance supported by the continued strong results at Essakane. Rosebel performed in line with the revised plan. Construction activities at Côté continue to proceed well, reaching 36% project completion at quarter end. First steel installation of the plant building commenced in mid-October, and the project remains on track for commercial production in the second half of 2023."
"A significant exploration milestone was achieved at Gosselin, located immediately to the northeast of Côté Gold. In October we published an initial mineral resources estimate of 3.4 million ounces in indicated and 1.7 million ounces in inferred categories, further enhancing the long-term value and district-scale potential of Côté. As part of our Zero Harm®vision, we were also very pleased to announce our greenhouse gas initiative with a commitment to achieve net negative emissions by no later than 2050."
COMPANY UPDATES
Environmental, Social and Governance
DARTFR2and TRIFR2of 0.38 and 0.74, respectively, YTD 2021 tracking below the global annual targets of 0.51 and 0.85, respectively. Côté Gold surpassed 2.9 million hours and 1,100 days without a lost time injury since October 2018.
The previously implemented COVID-19 protocols remain in place at our sites.
At Boto, the Company continued with the implementation of its sustainability strategy, focusing on the improvement of water availability and distribution, sanitation, the fight against malaria with a focus on women and children and the enhancement of local health centers capacities.
In partnership with Giants of Africa, the Company is investing $950,000 in a 4-year program, starting in 2021, aimed at encouraging the development of youth through sports. The joint project implementation has started with the completion and unveiling of a new basketball court at the City Youth Center in Ouagadougou, Burkina Faso, in October 2021.
Kevin O'Kane and Dr. Ann K. Masse, Ph.D., were appointed as independent directors of the Company, continuing with our board renewal in accordance with guidelines set out at the beginning of 2021.
The Company has published its 2020 Sustainability Report in accordance with the Global Reporting Initiative and Sustainability Accounting Standards Board reporting standards.
The Company separately published its climate change policy committing to achieve net negative emissions by no later than 2050 and net positive biodiversity on a company-wide basis. A more detailed roadmap and interim targets will be published in an upcoming report in late 2022.
As part of its accountability and reporting framework, IAMGOLD has also committed to report in accordance with the Task Force on Climate-Related Financial Disclosures ("TCFD") guidelines, and expects to release its initial TCFD report by the end of 2022.
OPERATING PERFORMANCE AND FINANCIAL POSITION
| | | Q3 2021 | | | YTD 2021 | | | YTD 2020 | | | | | | | Gold production - attributable (000s oz) | | 153 | | | | 448 | | | | 484 | | | | | Gold sales - attributable (000s oz) | | 150 | | | | 438 | | | | 474 | | | | | Average realized gold price ($/oz) | | $ | 1,787 | | | | $ | 1,788 | | | | $ | 1,747 | | Mine-site free cash flow1 ($ million) | | $ | 31.9 | | | | $ | 121.6 | | | | $ | 145.5 |
1 This is a non-GAAP performance measure. See "Non-GAAP Performance Measures".
Mine-site free cash flow totaled $121.6 million for the nine months ended September 30, 2021.
Cash, cash equivalents and short-term investments totaled $748.3 million and available liquidity totaled $1.2 billion at September 30, 2021, including $498.3 million available under the Company's secured revolving credit facility.
On October 29, 2021, Moody's Investors Service downgraded the Company's long-term corporate credit rating to B2 from B1 with a stable outlook.
OPERATIONS AND PROJECTS
Essakane District, Burkina Faso - Essakane Mine (IAMGOLD interest - 90%)1
| | | | | Q3 2021 | | Q2 2021 | | Q3 2020 | | YTD 2021 | YTD 2020 | | | | | | | | | | | Key Operating Statistics | | | | | | | | | | | | | | | | | | | | | | Ore mined (000s t) | | | | 3,908 | | | 3,559 | | | 4,282 | | | 11,902 | | 12,052 | | | | | | | Waste mined (000s t) | | | | 11,335 | | | 11,730 | | | 10,334 | | | 33,502 | | 29,663 | | | | | | | Material mined (000s t) - total | | | | 15,243 | | | 15,289 | | | 14,616 | | | 45,404 | | 41,715 | | | | | | | Strip ratio2 | | | | 2.9 | | | 3.3 | | | 2.4 | | | 2.8 | | 2.5 | | | | | | | Ore milled (000s t) | | | | 3,298 | | | 3,169 | | | 3,014 | | | 9,656 | | 9,173 | | | | | | | Head grade (g/t) | | | | 1.33 | | | 1.44 | | | 1.26 | | | 1.37 | | 1.12 | | | | | | | Recovery (%) | | | | 83 | | | 81 | | | 85 | | | 82 | | 88 | | | | | | | Gold production (000s oz) - 100% | | | | 118 | | | 118 | | | 104 | | | 349 | | 290 | | | | | | | Gold production (000s oz) - attributable 90% | | | | 106 | | | 106 | | | 94 | | | 314 | | 261 | | | | | | | Gold sales (000s oz) - 100% | | | | 122 | | | 115 | | | 112 | | | 351 | | 284 | | | | | | | Average realized gold price3($/oz) | | | | $ | 1,790 | | | $ | 1,801 | | | $ | 1,906 | | | $ | 1,794 | | $ | 1,762 | | Financial Results ($ millions)1 | | | | | | | | | | | | | | | | | | | | | | Revenue4 | | | | $ | 217.4 | | | $ | 208.2 | | | $ | 214.1 | | | $ | 629.7 | | $ | 500.7 | | Operating costs | | | | (95.5) | | | (92.3) | | | (94.6) | | | (284.5) | | (240.3) | | | | | | | Royalties | | | | (10.9) | | | (10.5)) | | | (10.9) | | | (31.5) | | (25.9) | | | | | | | Cash costs3 | | | | $ | (106.4) | | | $ | (102.8) | | | $ | (105.5) | | | $ | (316.0) | | $ | (266.2) | | Other mine costs | | | | (5.9) | | | (6.6) | | | (12.2) | | | (19.5) | | (27.7) | | | | | | | Cost of sales4 | | | | $ | (112.3) | | | $ | (109.4) | | | $ | (117.7) | | | $ | (335.5) | | $ | (293.9) | | Sustaining capital expenditures5 | | | | (11.6) | | | (11.3) | | | (6.1) | | | (28.3) | | (20.6) | | | | | | | Other costs6 | | | | (1.5) | | | (1.7) | | | 5.7 | | | (4.9) | | 9.3 | | | | | | | All-in sustaining costs3 | | | | $ | (125.4) | | | $ | (122.4) | | | $ | (118.1) | | | $ | (368.7) | | $ | (305.2) | | Expansion capital expenditures7 | | | | $ | (27.2) | | | $ | (18.6) | | | $ | (16.6) | | | $ | (60.3) | | $ | (55.7) | | Performance Measures8 | | | | | | | | | | | | | | | | | | | | | | Cost of sales ($/oz sold) | | | | $ | 925 | | | $ | 947 | | | $ | 1,050 | | | $ | 956 | | $ | 1,036 | | Cash costs3($/oz sold) | | | | $ | 878 | | | $ | 890 | | | $ | 941 | | | $ | 901 | | $ | 938 | | All-in sustaining costs3($/oz sold) | | | | $ | 1,033 | | | $ | 1,060 | | | $ | 1,054 | | | $ | 1,051 | | $ | 1,076 |
1. 100% basis, unless otherwise stated. 2. Strip ratio is calculated as waste mined divided by ore mined. 3. This is a non-GAAP performance measure. See "Non-GAAP Performance Measures". 4. As per note 28 of the consolidated interim financial statements for revenue and cost of sales. Cost of sales is net of depreciation expense. 5. Includes sustaining capitalized stripping for the third quarter 2021 of $1.0 million (second quarter 2021 - $nil, third quarter 2020 - $nil) and YTD 2021 of $1.0 million (YTD 2020 - $nil) 6. Other costs include sustaining lease principal payments, environmental rehabilitation accretion and depletion, and prior period operating costs, partially offset by by-product credits. 7. Includes expansion capitalized stripping for the third quarter 2021 of $21.8 million (second quarter 2021 - $12.9 million, third quarter 2020 - $12.6 million) and YTD 2021 of $43.9 million (YTD 2020 - $42.2 million). 8. Cost of sales, cash costs and all-in sustaining costs per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Essakane continued to deliver strong results and achieved attributable gold production of 106,000 ounces, in line with the prior quarter, as increased throughput and improved recoveries offset the impact of planned lower grades.
Mining activity of 15.2 million tonnes was in line with the prior quarter. Operational efficiencies continued to be achieved from the modifications to the hauling fleet as noted in the previous quarter, with an increased focus on stripping campaigns in the upper benches. The strip ratio of 2.9 was lower by 12% compared with the prior quarter and higher by 21% compared with the same prior year period.
Mill throughput of 3.3 million tonnes was higher by 4% compared with the prior quarter and higher by 9% compared with Q3 2020, benefiting from the positive results of the mill debottlenecking project as hard rock feed and plant availability exceeded 90%. In-circuit gold inventory reduced during the quarter resulting in higher gold sales when compared with production.
The Company reported on certain security incidents during the quarter and subsequent to the quarter (see news releases dated September 1, 2021, October 29, 2021 and November 1, 2021). The Company continues to assess the security situation and make appropriate precautionary adaptations. Logistics of materials, supplies and gold shipments are being managed and have not been materially impacted to date. However, the Company does note that the security situation has notably deteriorated recently. The Company also continues to engage with the relevant authorities and other partners in Burkina Faso in connection with security in the region around Essakane and its supplies and transportation routes.
The COVID-19 situation at Essakane remains relatively stable. Approximately 60% of the workforce is fully vaccinated.
Outlook
Essakane's 2021 full year production is trending towards the upper end of the 390,000 to 400,000 ounce guidance range. Certain costs pressures are expected to continue, including transportation and security costs.
Bambouk District - Boto Gold Project, Senegal (IAMGOLD interest - 90%)
During the third quarter, planned capital expenditures for 2021 were further lowered from $60 million to approximately $35 million by deferring certain previously planned de-risking activities. The scope for 2021 includes a preliminary work package for the completion of a road to provide permanent access to the site, engineering for critical plant equipment and sustainability programs to promote cohesion with local communities and ensure adequate environmental protections. The Company continues to evaluate the project scope, the associated capital expenditures and timing, as well as potential value enhancing alternatives for this project in general. Capital expenditures totaled $4.9 million in the third quarter and $27.6 million YTD 2021.
Abitibi District, Canada - Westwood Mine (IAMGOLD interest - 100%)
| | | Q3 2021 | | | Q2 2021 | | | Q3 2020 | | | YTD 2021 | | | YTD 2020 | | | | | | | | | | | Key Operating Statistics | | | | | | | | | | | | | | | | | | | | | | | | | Ore mined (000s t) - underground | | 31 | | | | 14 | | | | 123 | | | | 45 | | | | 330 | | | | | | | Ore mined (000s t) - other sources | | 171 | | | | 273 | | | | 169 | | | | 690 | | | | 389 | | | | | | | Ore mined (000s t) - total | | 202 | | | | 287 | | | | 292 | | | | 735 | | | | 719 | | | | | | | Ore milled (000s t) | | 220 | | | | 264 | | | | 290 | | | | 711 | | | | 711 | | | | | | | Head grade (g/t) - underground | | 4.17 | | | | 4.50 | | | | 4.66 | | | | 4.26 | | | | 5.27 | | | | | | | Head grade (g/t) - other sources | | 0.59 | | | | 0.74 | | | | 1.09 | | | | 0.82 | | | | 1.06 | | | | | | | Head grade (g/t) - total | | 1.11 | | | | 0.92 | | | | 2.64 | | | | 1.03 | | | | 3.01 | | | | | | | Recovery (%) | | 92 | | | | 93 | | | | 94 | | | | 93 | | | | 94 | | | | | | | Gold production (000s oz) - 100% | | 7 | | | | 8 | | | | 23 | | | | 22 | | | | 65 | | | | | | | Gold sales (000s oz) - 100% | | 7 | | | | 7 | | | | 23 | | | | 22 | | | | 66 | | | | | | | Average realized gold price1($/oz) | | $ | 1,779 | | | | $ | 1,810 | | | | $ | 1,913 | | | | $ | 1,790 | | | | $ | 1,749 | | Financial Results ($ millions) | | | | | | | | | | | | | | | | | | | | | | | | | Revenue2 | | $ | 12.7 | | | | $ | 12.2 | | | | $ | 44.8 | | | | $ | 39.4 | | | | $ | 116.8 | | Cash costs1 | | $ | (24.6) | | | | $ | (13.8) | | | | $ | (28.5) | | | | $ | (47.5) | | | | $ | (73.6) | | Other mine costs | | (0.1) | | | | (0.3) | | | | (3.6) | | | | (0.6) | | | | (5.1) | | | | | | | Cost of sales2 | | $ | (24.7) | | | | $ | (14.1) | | | | $ | (32.1) | | | | $ | (48.1) | | | | $ | (78.7) | | Sustaining capital expenditures | | (3.8) | | | | (2.1) | | | | (4.7) | | | | (6.3) | | | | (9.6) | | | | | | | Other costs3 | | (0.4) | | | | 0.1 | | | | 1.7 | | | | (0.2) | | | | 2.5 | | | | | | | All-in sustaining costs1 | | $ | (28.9) | | | | $ | (16.1) | | | | $ | (35.1) | | | | $ | (54.6) | | | | $ | (85.8) | | Expansion capital expenditures | | $ | (0.8) | | | | $ | (1.2) | | | | $ | (3.2) | | | | $ | (2.6) | | | | $ | (7.6) | | Performance Measures4 | | | | | | | | | | | | | | | | | | | | | | | | | Cost of sales ($/oz sold) | | $ | 3,512 | | | | $ | 2,100 | | | | $ | 1,387 | | | | $ | 2,205 | | | | $ | 1,197 | | Cash costs1($/oz sold) | | $ | 3,482 | | | | $ | 2,056 | | | | $ | 1,229 | | | | $ | 2,176 | | | | $ | 1,119 | | All-in sustaining costs1($/oz sold) | | $ | 4,087 | | | | $ | 2,412 | | | | $ | 1,515 | | | | $ | 2,501 | | | | $ | 1,304 |
1. This is a non-GAAP measure. See "Non-GAAP Performance Measures".
2. As per note 28 of the consolidated interim financial statements for revenue and cost of sales. Cost of sales is shown net of depreciation expense. 3. Other costs include sustaining lease principal payments and environmental rehabilitation accretion and depletion, partially offset by by-product credits. 4. Cost of sales, cash costs and all-in sustaining costs per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Gold production in the third quarter of 7,000 ounces was 13% lower than in the prior quarter and 70% lower than in Q3 2020. Although underground mine productivity is improving, production continues to be impacted by labour shortages and turnover in addition to the impact of implementing additional safety measures. The Company is using additional training, schedule changes and focused hiring activities to mitigate labour market conditions and productivity rates.
Mill throughput was impacted by lower ore availability and an increase in the ratio of hard rock ore from the Grand Duc pit. Potential solutions to improve processing of the hard rock ore from Grand Duc are being investigated.
The estimated asset retirement obligation for Westwood, including the Doyon closed site, has increased by $52.3 million due to an updated closure plan. Of that total, $11.9 million of the increase relates to Westwood and was accounted for as an increase to Property, plant and equipment and $40.4 million relates to the Doyon closed site and was accounted for as an increase to Other expenses.
The COVID-19 situation continues to be stable. Approximately 19% of the workforce has reported that it is fully vaccinated.
Outlook
Underground development, rehabilitation and mining activities are expected to continue to ramp up in the fourth quarter of 2021 as more mining areas become available in the underground mine. Underground conditions in the West and Central Zones continue to remain under assessment. Based on information currently available, management expects that mining in these zones will resume in the first half of 2022.
The Company is optimizing a short-term three year operating plan that is now expected to be released with the Company's 2022 guidance. In addition, the Company is continuing to evaluate this asset to identify the optimal path forward for the Company and the site workforce.
Côté Gold Project (IAMGOLD interest - 64.75%)
On October 18, 2021, the Company provided a construction progress update at its Côté Gold Project, a tier 1 asset located in Ontario, Canada. Major earthworks, processing plant civil works and waste stripping activities are progressing. The first ore blast was completed in October 2021 and first steel installation for the plant building shell commenced in mid-October. As at September 30, 2021 the project was overall 36% complete and detailed engineering was 85% complete. The project schedule remains on track for commercial production in the second half of 2023.
Concurrently with the construction progress update, the Company reported an initial mineral resources estimate for the Gosselin deposit, located immediately to the northeast of the Côté Gold deposit. The Company intends to file a new technical report titled "Technical Report on the Côté Gold Project, Ontario, Canada" (the "2021 Technical Report") prepared by SLR Consulting (Canada) Ltd. in accordance with National Instrument 43-101 _Standards of Disclosure for Mineral Projects_("NI 43-101"), including a description of the Gosselin deposit mineral resources estimate, by December 2, 2021. When filed with applicable securities regulatory authorities, the new 2021 Technical Report will be the current NI 43-101 technical report on Côté Gold and will replace prior filed technical reports.
The project operating metrics, outlined in the 2021 Technical Report, remain similar as previously announced in the Company's July 21, 2020 news release. Cash costs and all-in-sustaining costs per ounce of gold sold have been estimated to increase to an average of approximately $659 and $802 per gold ounce sold, respectively, over the life-of-mine primarily due to the impact of recent inflation, including on operating consumables. The Company's remaining 70% share of Côté Gold project costs estimated from October 1, 2021 onwards is estimated at approximately $860 million to $910 million. Incurred and expended costs at Côté Gold are summarized in the table below: