GoldMining Inc. press release

IAMGOLD Reports Second Quarter 2024 Results

2024-08-08

TSX - Toronto Stock Exchange · Gold · Copper · Silver · Uranium · Canada · Corporate Finance

All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.

Toronto, Ontario--(Newsfile Corp. - August 8, 2024) - IAMGOLD Corporation(NYSE: IAG) (TSX: IMG) ("IAMGOLD" or the "Company") today reported its financial and operating results for the second quarter ended June 30, 2024.

"We are very proud of our achievements during the first half of the year at IAMGOLD," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "Essakane and Westwood teams have continued to deliver strong operational results, which has positioned the company to beat our production and cost guidance targets set at the beginning of the year. These achievements have been made while delivering our commitment to health and safety, and I want to commend the Essakane team, which recently surpassed a record health and safety milestone of 5 million hours worked without a recordable safety incident."

"At Côté Gold, last week we announced the mine had reached commercial production, a significant achievement only four months after pouring our initial gold bar on March 31 of this year. We are very impressed with the progress to date and are very positive on what the milestones achieved so far mean for the future of the project. Early in the second quarter, our focus was on stress testing the capability of the plant to handle near nameplate throughput rates. The primary components of the plant responded well, proving the installed capacity of the major equipment and processing circuits to handle design rates. The operating teams have made significant strides over the last six weeks on increasing the availability of the plant, with a full production at nameplate of 36,000 tonnes milled achieved on August 1st. During the ramp up exercise, the company has identified key improvements and optimizations needed in the crushing and screening circuits of the dry side, which will be implemented in September in support of the goal of reaching the 90% throughput rate exiting this year."

"The financial position of the company continues to improve, with over $915 million in total liquidity and increased production guidance this year in a strong gold price environment. With commercial production at Côté behind us and our financing completed in May, IAMGOLD is well funded to buy back the 10% interest in the mine in November - in order to increase our ownership to 70% of what we believe to be among the top gold mines in Canada."

HIGHLIGHTS:

Operating and Financial

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Attributable gold productionwas 166,000 ounces in the second quarter and 317,000 ounces year-to-date ("YTD"), driven by strong performance at Essakane and Westwood, as well as the first quarter of production at Côté Gold.

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Côté Gold reached commercial productionon August 2, 2024. During the month of July, the operation processed over 620,000 tonnes and on August 1, 2024, the plant achieved a record daily high throughput rate of 36,000 tonnes per day. The project continues to be well positioned to achieve the goal of 90% throughput by the end of the year.

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Production guidance at Essakane and Westwood has been increasedto 495,000 to 540,000 ounces, up from the previous guidance range of 430,000 to 490,000 ounces.

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Côté Gold production this year is expected to be on the lower end of the guidance rangeof 130,000 to 175,000 ounces on a 60.3% basis (220,000 to 290,000 ounces at 100%) as improvements to mill availability are made during the ramp-up of operations.

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The cash cost1guidance range, excluding Côté Gold, is revised downwards from $1,280 to $1,400 per ounce sold to $1,175 to $1,275 per ounce sold and all-in-sustaining-cost1("AISC") guidance range is also revised downwards from $1,780 to $1,940 per ounce sold to $1,700 to $1,825 per ounce sold.

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For Côté Gold, the company continues to expect that as Côté exits the year at 90% throughput, cash costs at that time will be in the range of approximately $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce.

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Revenueswere $385.3 million from sales of 167,000 ounces at an average realized gold price1of $2,294 per ounce and $724.2 million YTD from sales of 330,000 ounces at an average realized gold price of $2,187 per ounce.

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Essakane and Westwood cost of salesper ounce sold was $1,099 ($1,077 YTD), cash cost1per ounce sold was $1,094 ($1,073 YTD) and AISC per ounce sold was $1,617 ($1,553 YTD).

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Côté Gold cost of sales and cash cost1per ounce sold, net of capitalized operating costs, was $839 and $836 per ounce sold, respectively.

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Net earnings and adjusted net earnings per shareattributable to equity holders1of $0.16 and $0.16 for the second quarter, respectively; YTD net earnings and adjusted net earnings per share attributable to equity holders1of $0.27 and $0.27, respectively.

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Net cash from operating activitieswas $160.1 million for the second quarter and $237.2 million YTD. Net cash from operating activities, before movements in working capital and non-current ore stockpiles1, was $169.2 million for the second quarter and $312.0 million YTD.

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Earnings before interest, income taxes, depreciation and amortization("EBITDA")1was $189.9 million during the second quarter ($344.0 million YTD) and adjusted EBITDA1was $191.1 million during the second quarter ($343.6 million YTD).

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Mine-site free cash flow1, excluding Côté Gold, was $140.0 million for the second quarter and $186.2 million YTD.

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The Company has available liquidity1of $915.7 million, mainly comprised of cash and cash equivalents of $511.4 million and the available balance of the secured revolving credit facility ("Credit Facility") of $403.3 million as at June 30, 2024.

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In health and safety, for the quarter ended June 30, 2024, the Company reported a TRIFR (total recordable injuries frequency rate) of 0.60, an improved trend since last year.

Corporate

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On May 24, 2024, the Company announced the closing of a "bought deal" equity financing of 72.0 million common shares of the Company at a price of $4.17 per common share for aggregate gross proceeds of approximately $300.2 million ($287.5 million net of fees and transaction costs). The Company intends to use the proceeds towards the repurchase of the 9.7% interest from Sumitomo on November 30, 2024, which was transferred to Sumitomo in 2023 as part of the Joint Venture Funding and Amending Agreement. IAMGOLD's ownership interest in the Côté Gold Mine following the repurchase would then return to 70%. See "Côté Gold".

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On April 4, 2024, the Company announced that it entered into a gold prepayment arrangement and a partial amendment to one of its existing gold prepayment arrangements. The net result of these arrangements was the effective transition of the cash impact of the current gold delivery obligations out of the second quarter of 2024 into the same period in the following year, thereby increasing cashflow in the second quarter 2024 by approximately $74.1 million. See "Liquidity and Capital Resources".

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On July 9, 2024, the Company finalized an insurance claim of $27.3 million relating to the property and business interruption loss arising from the October 30, 2020, seismic event in the Westwood mine. The proceeds are expected to be received in the third quarter of 2024.

QUARTERLY REVIEW

For more details and the Company's overall outlook for 2024, see "Outlook", and for individual mine performance, see "Quarterly Updates". The following table summarizes certain operating and financial results for the three months ended June 30, 2024 (Q2 2024) June 30, 2023 (Q2 2023) and the six months ended June 30 (or YTD) 2024 and 2023 and certain measures of the Company's financial ("discontinued operations") position as at December 31, 2023, and June 30, 2023. Financial results of Rosebel include the one-month period ended January 31, 2023, prior to the closing of the sale to Zijin.

| | | Q2 2024 | | | Q2 2023 | | | YTD 2024 | | | YTD 2023 | | | Key Operating Statistics | | | | | | | | | | | | | | ($ millions from continuing operations) | | | | | | | | | | | | | | Gold production - attributable (000s oz) | | | | | | | | | | | | | | - Essakane | | 111 | | | 88 | | | 229 | | | 180 | | | - Westwood | | 35 | | | 19 | | | 67 | | | 40 | | | Subtotal | | 146 | | | 107 | | | 296 | | | 220 | | | - Côté Gold (60.3%) | | 20 | | | - | | | 21 | | | - | | | Total gold production - attributable (000s oz) | | 166 | | | 107 | | | 317 | | | 220 | | | Gold sales - attributable (000s oz) | | | | | | | | | | | | | | - Essakane | | 107 | | | 93 | | | 224 | | | 181 | | | - Westwood | | 35 | | | 18 | | | 68 | | | 39 | | | Subtotal | | 142 | | | 111 | | | 292 | | | 220 | | | - Côté Gold (60.3%) | | 14 | | | - | | | 14 | | | - | | | Total gold sales - attributable (000s oz) | | 156 | | | 111 | | | 306 | | | 220 | | | Cost of sales1($/oz sold) - attributable | | | | | | | | | | | | | | - Essakane | $ | 1,084 | | $ | 1,274 | | $ | 1,042 | | $ | 1,171 | | | - Westwood | | 1,142 | | | 1,909 | | | 1,191 | | | 1,773 | | | Subtotal | $ | 1,099 | | $ | 1,376 | | $ | 1,077 | | $ | 1,277 | | | - Côté Gold | | 839 | | | - | | | 839 | | | - | | | Total cost of sales1($/oz sold) - attributable | $ | 1,076 | | $ | 1,376 | | $ | 1,066 | | $ | 1,277 | | | Cash costs2($/oz sold) - attributable | | | | | | | | | | | | | | - Essakane | $ | 1,081 | | $ | 1,273 | | $ | 1,040 | | $ | 1,122 | | | - Westwood | | 1,131 | | | 1,896 | | | 1,182 | | | 1,761 | | | Subtotal | $ | 1,094 | | $ | 1,372 | | $ | 1,073 | | $ | 1,234 | | | - Côté Gold | | 836 | | | - | | | 836 | | | - | | | Total cash costs2($/oz sold) - attributable | $ | 1,071 | | $ | 1,372 | | $ | 1,062 | | $ | 1,234 | | | AISC2($/oz sold) - attributable | | | | | | | | | | | | | | - Essakane | $ | 1,481 | | $ | 1,587 | | $ | 1,393 | | $ | 1,377 | | | - Westwood | | 1,663 | | | 2,903 | | | 1,747 | | | 2,689 | | | Subtotal | $ | 1,617 | | $ | 1,912 | | $ | 1,553 | | $ | 1,719 | | | - Côté Gold | | | | | | | | | | | | | | Total AISC2($/oz sold) - attributable | $ | 1,617 | | $ | 1,912 | | $ | 1,553 | | $ | 1,719 | | | Average realized gold price2,3($/oz) | $ | 2,294 | | $ | 1,973 | | $ | 2,187 | | $ | 1,933 | | | Key Operating Statistics | | | | | | | | | | | | | | ($ millions from Rosebel discontinued operation) | | | | | | | | | | | | | | Gold production - attributable (000s oz) | | - | | | - | | | - | | | 25 | | | Gold sales - attributable (000s oz) | | - | | | - | | | - | | | 24 | | | Cost of sales1($/oz sold) - attributable | $ | - | | $ | - | | $ | - | | $ | 949 | | | Cash costs2($/oz sold) - attributable | $ | - | | $ | - | | $ | - | | $ | 949 | | | AISC2($/oz sold) - attributable | $ | - | | $ | - | | $ | - | | $ | 1,358 | | | 1. Throughout this MD&A, cost of sales, excluding depreciation, is disclosed in the segment note in the consolidated interim financial statements. 2. Refer to the "Non-GAAP Financial Measures" disclosure at the end of this MD&A for a description and calculation of these measures. 3. The average realized gold price in the second quarter 2024 excluding the impact of the 2022 Prepay Arrangement (as defined below) was $2,360 per ounce and $2,227 per ounce YTD 2024. | | | | | | | | | | | | |

| | | Q2 2024 | | | Q2 2023 | | | YTD 2024 | | | YTD 2023 | | | Financial Results | | | | | | | | | | | | | | ($ millions from continuing operations) | | | | | | | | | | | | | | Revenues | $ | 385.3 | | $ | 238.8 | | $ | 724.2 | | $ | 465.0 | | | Gross profit | $ | 150.7 | | $ | 26.6 | | $ | 256.4 | | $ | 69.7 | | | EBITDA1 | $ | 189.9 | | $ | 166.2 | | $ | 344.0 | | $ | 249.0 | | | - Continuing operations | $ | 189.9 | | $ | 166.2 | | $ | 344.0 | | $ | 234.6 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 14.4 | | | Adjusted EBITDA1 | $ | 191.1 | | $ | 63.8 | | $ | 343.6 | | $ | 170.6 | | | - Continuing operations | $ | 191.1 | | $ | 63.8 | | $ | 343.6 | | $ | 147.2 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 23.4 | | | Net earnings (loss) attributable to equity holders | $ | 84.5 | | $ | 92.6 | | $ | 139.3 | | $ | 104.5 | | | - Continuing operations | $ | 84.5 | | $ | 92.6 | | $ | 139.3 | | $ | 98.9 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 5.6 | | | Adjusted net earnings (loss) attributable to equity holders1 | $ | 84.8 | | $ | (3.3 | ) | $ | 137.8 | | $ | 36.6 | | | - Continuing operations | $ | 84.8 | | $ | (3.3 | ) | $ | 137.8 | | $ | 22.0 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 14.6 | | | Net earnings (loss) per share attributable to equity holders - continuing operations | $ | 0.16 | | $ | 0.19 | | $ | 0.27 | | $ | 0.21 | | | Adjusted net earnings (loss) per share attributable to equity holders1- continuing operations | $ | 0.16 | | $ | (0.01 | ) | $ | 0.27 | | $ | 0.05 | | | Net cash from operating activities before changes in working capital1- continuing operations | $ | 169.2 | | $ | 21.8 | | $ | 312.0 | | $ | 77.5 | | | Net cash from operating activities | $ | 160.1 | | $ | 23.2 | | $ | 237.2 | | $ | 52.0 | | | - Continuing operations | $ | 160.1 | | $ | 23.2 | | $ | 237.2 | | $ | 36.6 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 15.4 | | | Mine-site free cash flow1 | $ | 140.0 | | $ | 14.6 | | $ | 186.2 | | $ | 23.2 | | | - Continuing operations | $ | 140.0 | | $ | 14.6 | | $ | 186.2 | | $ | 17.3 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 5.9 | | | Capital expenditures1,2- sustaining | $ | 57.4 | | $ | 46.3 | | $ | 112.5 | | $ | 81.3 | | | Capital expenditures1,2- expansion | $ | 62.3 | | $ | 149.6 | | $ | 177.5 | | $ | 286.7 | | | | | June 30 | | | December 31 | | | June 30 | | | December 31 | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | Financial Position | | | | | | | | | | | | | | ($ millions) | | | | | | | | | | | | | | Cash and cash equivalents | $ | 511.4 | | $ | 367.1 | | $ | 511.4 | | $ | 367.1 | | | Long-term debt | $ | 814.8 | | $ | 830.8 | | $ | 814.8 | | $ | 830.8 | | | Net cash (debt)1 | $ | (495.1 | ) | $ | (649.5 | ) | $ | (495.1 | ) | $ | (649.5 | ) | | Available Credit Facility | $ | 403.3 | | $ | 387.0 | | $ | 403.3 | | $ | 387.0 | | | 1. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures". 2. Sustaining and expansion capital expenditures represent incurred expenditures for property, plant and equipment and exploration and evaluation assets, and excludes right-of-use assets and working capital impacts. | | | | | | | | | | | | |

OUTLOOK

Production

| | YTD 2024 | Updated Full Year Guidance 2024 | Previous Full Year Guidance 2024 | | Essakane (000s oz) | 229 | 380 - 410 | 330 - 370 | | Westwood (000s oz) | 67 | 115 - 130 | 100 - 120 | | Total attributable production (000s oz) | 296 | 495 - 540 | 430 - 490 | | Côté Gold, 60.3% (000s oz) | 21 | 130 - 175 | 130 - 175 |

Essakane & Westwood

Production guidance at Essakane and Westwood has been increased to 495,000 to 540,000 ounces, up from the previous guidance range of 430,000 to 490,000 ounces

Essakane's attributable production guidance was increased to 380,000 to 410,000 ounces, up from 330,000 to 370,000 ounces previously, due to the positive grade reconciliation and stable operations year to date.

Westwood guidance was increased to 115,000 to 130,000 ounces, up from 100,000 to 120,000 ounces, due to higher production from the underground mine.

Côté Gold

Production guidance at Côté Gold on a 100% basis is expected to be on the lower end of the guidance of 220,000 to 290,000 ounces (130,000 to 175,000 ounces on a 60.3% basis for IAMGOLD - see "Côté Gold" below), as improvements to mill availability are made during the ramp-up of operations. This estimate assumes that operations will continue to ramp-up and exit the year at a throughput rate of approximately 90% of the 36,000 tonnes per day nameplate production rate.

Costs

| | YTD 2024 | Updated Full Year Guidance 20241 | Previous Full Year Guidance 20242 | | Essakane (000s oz) | | | | | Cash costs ($/oz sold) | $1,040 | $1,175 - $1,275 | $1,300 - $1,400 | | AISC ($/oz sold) | $1,393 | $1,575 - $1,675 | $1,675 - $1,800 | | Westwood (000s oz) | | | | | Cash costs ($/oz sold) | $1,182 | $1,200 - $1,300 | $1,250 - $1,375 | | AISC ($/oz sold) | $1,747 | $1,775 - $1,900 | $1,800 - $2,000 | | Essakane + Westwood | | | | | Cost of sales3($/oz sold) | $1,077 | $1,175 - $1,275 | $1,280 - $1,400 | | Cash costs3,4($/oz sold) | $1,073 | $1,175 - $1,275 | $1,280 - $1,400 | | AISC3,4($/oz sold) | $1,553 | $1,700 - $1,825 | $1,780 - $1,940 | | Côté Gold | Refer to Côté Gold section below | | | | 1. The updated full year guidance is based on the following 2024 full year assumptions, before the impact of hedging: average realized gold price of $2,233 per ounce, USDCAD exchange rate of 1.36, EURUSD exchange rate of 1.08 and average crude oil price of $82 per barrel. 2. The previous full year guidance is based on the following 2024 full year assumptions, before the impact of hedging: average realized gold price of $1,900 per ounce, USDCAD exchange rate of 1.32, EURUSD exchange rate of 1.10 and average crude oil price of $83 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". | | | |

The 2024 cost guidance for Essakane and Westwood combined is now expected to be in the range of $1,175 to $1,275 for cash costs per ounce sold and $1,700 to $1,825 for AISC per ounce sold, compared to the previous guidance estimates of cash cost per ounce sold of $1,280 and $1,400 and AISC per ounce sold of $1,780 and $1,940.

While inflationary pressures are easing, pricing for certain consumables, including cyanide and grinding media remains in line with the levels experienced in 2023.

Essakane

Cost guidance for Essakane has been revised downwards and is expected to be in a range of $1,175 to $1,275 for cash cost per ounce sold and $1,575 to $1,675 for AISC per ounce sold, compared to the previous guidance estimates for cash cost of $1,300 to $1,400 per ounce sold and AISC of $1,675 to $1,800 per ounce sold. Operating costs are expected to remain in line with prior guidance and levels experienced in recent quarters and capital is expected to increase, resulting in unit costs decreasing as a result of the anticipated production increasing more than the costs.

Westwood

Cost guidance for Westwood has been revised downwards, in line with the increase in production guidance, and is expected to be in the range of $1,200 to $1,300 for cash cost per ounce sold and $1,775 to $1,900 for AISC per ounce sold, compared to the previous guidance estimates for cash cost per ounce sold of $1,250 to $1,375 per ounce sold and AISC of $1,800 to $2,000 per ounce sold.

Côté Gold

During the ramp-up period and prior to achieving near nameplate production rates, operating and capitalized waste stripping unit costs are expected to be higher than the expected life of mine average as outlined in the existing 43-101 technical report (dated August 12, 2022) as fixed costs are absorbed by lower volumes, increases in certain cost inputs from the impact of inflation since completion of the technical report, and higher royalty costs due to higher gold prices. As Côté Gold achieves 90% throughput, which is expected by the end of the year, the Company estimates cash costs at that time to be in the range of approximately $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce.

Capital Expenditures

Essakane and Westwood

| | | YTD 20241 | | | Updated Full Year Guidance 20242 | | | Previous Full Year Guidance 2024 | | | | | | | | | | | | | | | | | | | | | ($ millions) | | Sustaining3 | | | Expansion | | | Total | | | Sustaining3 | | | Expansion | | | Total | | | Sustaining3 | | | Expansion | | | Total | | | Essakane (±5%) | $ | 76.1 | | $ | 2.1 | | $ | 78.2 | | $ | 170 | | $ | 5 | | $ | 175 | | $ | 150 | | $ | 5 | | $ | 155 | | | Westwood (±5%) | | 35.8 | | | 0.1 | | | 35.9 | | | 70 | | | - | | | 70 | | | 65 | | | - | | | 65 | | | | $ | 111.9 | | $ | 2.2 | | $ | 114.1 | | $ | 240 | | $ | 5 | | $ | 245 | | | 215 | | | 5 | | | 220 | | | Corporate | | 0.6 | | | - | | | 0.6 | | | - | | | - | | | - | | | - | | | - | | | - | | | Total4 | $ | 112.5 | | $ | 2.2 | | $ | 114.7 | | $ | 240 | | $ | 5 | | $ | 245 | | $ | 215 | | $ | 5 | | $ | 220 | | | 1. 100% basis, unless otherwise stated. 2. Capital expenditures guidance (±5%) at Essakane and Westwood. 3. Sustaining capital includes capitalized stripping of (i) $27.6 million for Essakane and $1.8 million for Westwood in the second quarter 2024, (ii) $53.3 million for Essakane and $4.1 million for Westwood YTD 2024, and (iii) $115 million for Essakane and $7 million for Westwood for the revised full year guidance. See "Outlook" sections below. 4. Includes $3 million of capitalized exploration and evaluation expenditures also included in the Exploration Outlook guidance table. | | | | | | | | | | | | | | | | | | | | | | | | | | | |