IAMGOLD Reports First Quarter 2023 Results

2023-05-11

TSXV - TSX Venture Exchange · Gold · Copper · Graphite · Zinc · Canada

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

Toronto, Ontario--(Newsfile Corp. - May 11, 2023) - IAMGOLD Corporation(NYSE: IAG) (TSX: IMG) ("IAMGOLD" or the "Company") today reported its financial and operating results for the first quarter ended March 31, 2023.

HIGHLIGHTS:

Operations

Attributable gold production from continuing operations was 113,000 ounces.

Revenues from continuing operations were $226.2 million from sales of 119,000 ounces (109,000 ounces on an attributable basis) at an average realized gold price of $1,893 per ounce.

Cost of sales per ounce sold from continuing operations was $1,176, cash cost1per ounce sold from continuing operations was $1,094 and all-in-sustaining-cost1("AISC") per ounce sold from continuing operations was $1,525.

Financial

Net earnings attributable to equity holders1of $6.3 million or $0.01 per share and adjusted net earnings attributable to equity holders1of $24.9 million or $0.05 per share.

Net cash from operating activities was $13.4 million. Net cash from operating activities, before movements in non-cash working capital and non-current ore stockpiles1, was $55.7 million.

Earnings before interest, income taxes, depreciation and amortization ("EBITDA")1from continuing operations was $68.4 million and adjusted EBITDA1was $83.0 million.

Mine-site free cash flow1from continuing operations was $2.7 million.

Cash and cash equivalents of $532.1 million as at March 31, 2023. The Company repaid $255.0 million of the secured revolving credit facility ("Credit Facility") during the first quarter 2023 and the available balance is $257.3 million as at March 31, 2023.

Côté Gold

As of March 31, 2023, the Côté Gold project was estimated to be 79.8% complete.

The Company incurred attributable construction costs at Côté of $158.6 million in the first quarter 2023, and approximately $1.37 billion since the commencement of construction, on a 70% basis.

Sumitomo Metal Mining Co., Ltd. and SMM Gold Cote Inc. ("Sumitomo" or "SMM") funded $189.0 million of the Company's funding obligation and an incremental $7.1 million based on its increased ownership during the first quarter 2023 as per the Côté Gold Joint Venture Funding and Amending Agreement ("JV Funding and Amending Agreement"), reducing the Company's interest in the unincorporated joint venture to 62.5%.

Sumitomo funded a total of $61.0 million of the Company's contributions during April and May, further decreasing the Company's interest to 60.3% and concluding the funding arrangement. It is estimated that SMM will contribute an additional $82.8 million during the remainder of 2023 based on its increased ownership.

The estimated attributable cost to complete the construction is $625 to $700 million, on a 70% and incurred basis. IAMGOLD is expected to fund $460 to $535 million during the remainder of 2023 based on its 60.3% ownership in the Côté Gold unincorporated joint venture. See "Côté Gold Project".

Corporate

On January 31, 2023, the Company completed the sale of its interests in the Rosebel mine to Zijin Mining Group Co. Ltd. ("Zijin") that was announced on October 18, 2022. The Company received cash proceeds of $386.4 million in the first quarter 2023, consisting of sales proceeds of $360.0 million, plus $29.8 million of cash held by Rosebel on January 31, 2023, less preliminary working capital adjustments of $3.4 million. The Company is due to receive approximately $9.8 million by June 30, 2023, consisting of the remaining cash balance held by Rosebel on January 31, 2023 of $9.6 million plus $0.2 million of final working capital adjustments.

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 for aggregate gross cash proceeds of $197.6 million (pre-tax). The gross proceeds include deferred payments of $32.0 million which are anticipated to be received during the third quarter 2023. See "Bambouk Assets".

The Company has available liquidity of $789.4 million comprised of cash and cash equivalents of $532.1 million and the available balance of the Credit Facility of $257.3 million as at March 31, 2023. Following the closing of the remaining strategic asset sales described above, the Company believes that it has sufficient liquidity to fund the remaining $460 to $535 million required for the completion of construction of the Côté Gold Project based on the current schedule and estimate. The Company continues to advance additional financing initiatives to strengthen its balance sheet and improve its liquidity in order to place the Company in a strong position to return to a 70% interest in the Côté Gold Project. See ""Liquidity Outlook".

"Looking at the first quarter, IAMGOLD reported impressive production results from both Essakane and Westwood, while cost pressures remained in line with our estimates and what is appearing to be a new normal for our industry," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "The Essakane mine reported 92,000 ounces of attributable production, with our Burkinabe teams demonstrating remarkable resilience and flexibility, as higher than modeled grades helped to offset lower than expected mining tonnes due to the ongoing challenges managing the in-country supply chain and security. At Westwood, we saw the continued ramp up of production, with 21,000 ounces produced in the quarter as the operation begins to reap the benefits of the past 18 months of rehabilitation work which is ongoing and expected to position the operation well for exiting the year."

"At Côté Gold, the project continues to advance rapidly towards initial production early next year. The project was approximately 80% complete at the end of March, and is now ramping up to peak activity levels now that the spring thaw is nearing completion with a clear roadmap in front of us to achieve success. The impact of Côté Gold on this company will be substantial, with the long life, low cost asset shifting our production base to Canada. Further, we continue to examine opportunities to increase the strength and flexibility of IAMGOLD's balance sheet in order to better position the company for an ultimate return to the 70% interest at Côté in the future. IAMGOLD is a company that is undergoing a significant transition, and as we move forward we are eager to shift our focus from fixing operations and building - to optimizing and realizing the growth potential of our projects - which in turn will accelerate and unlock our value drivers for the benefit of all stakeholders," added Mr. Adams.

QUARTERLY SUMMARY

The following tables summarize certain operating and financial results for the three months ended March 31, 2023 (Q1 2023) and March 31, 2022 (Q1 2022) and certain measures of the Company's financial position as at March 31, 2023, December 31, 2022, and March 31, 2022. Financial results of Rosebel include the one month period ended January 31, 2023, prior to the closing of the sale to Zijin.

| | | Q1 2023 | | | Q1 2022 | | Key Operating Statistics | | | | | | | Gold production - attributable (000s oz) | | | | | | | - Essakane | | 92 | | | 112 | | - Westwood | | 21 | | | 16 | | Total from continuing operations | | 113 | | | 128 | | - Rosebel | | 25 | | | 46 | | Total gold production - attributable (000s oz) | | 138 | | | 174 | | Gold sales - attributable (000s oz) | | | | | | | - Essakane | | 88 | | | 119 | | - Westwood | | 21 | | | 16 | | Total from continuing operations | | 109 | | | 135 | | - Rosebel | | 24 | | | 46 | | Total gold sales - attributable (000s oz) | | 133 | | | 181 | | Cost of sales1($/oz sold) - attributable | | | | | | | - Essakane | $ | 1,063 | | $ | 784 | | - Westwood | | 1,657 | | | 1,922 | | Total from continuing operations | $ | 1,176 | | $ | 921 | | - Rosebel | | 949 | | | 1,369 | | Total cost of sales1($/oz sold) - attributable | $ | 1,136 | | $ | 1,035 | | Cash costs2($/oz sold) - attributable | | | | | | | - Essakane | $ | 964 | | $ | 781 | | - Westwood | | 1,646 | | | 1,886 | | Total from continuing operations | $ | 1,094 | | $ | 914 | | - Rosebel | | 949 | | | 1,315 | | Total cash costs2($/oz sold) - attributable | $ | 1,068 | | $ | 1,017 | | AISC2($/oz sold) - attributable | | | | | | | - Essakane | $ | 1,157 | | $ | 1,134 | | - Westwood | | 2,508 | | | 2,376 | | Total from continuing operations | $ | 1,525 | | $ | 1,389 | | - Rosebel | | 1,358 | | | 1,784 | | Total AISC2($/oz sold) - attributable | $ | 1,495 | | $ | 1,490 | | Average realized gold price($/oz) | | | | | | | - Continued operations | $ | 1,893 | | $ | 1,789 | | - Discontinued operations | | 1,905 | | | 1,886 | | Total average realized gold price($/oz) | $ | 1,895 | | $ | 1,813 |

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.

| | | Q1 2023 | | | Q1 2022 | | Financial Results ($ millions from continuing operations) | | | | | | | Revenues | $ | 226.2 | | $ | 265.0 | | Gross profit | $ | 43.1 | | $ | 71.0 | | EBITDA1 | $ | 82.8 | | $ | 135.0 | | - Continuing operations | $ | 68.4 | | $ | 110.3 | | - Discontinued operations | $ | 14.4 | | $ | 24.7 | | Adjusted EBITDA1 | $ | 106.4 | | $ | 137.6 | | - Continuing operations | $ | 83.0 | | $ | 110.8 | | - Discontinued operations | $ | 23.4 | | $ | 26.8 | | Net earnings attributable to equity holders | $ | 11.9 | | $ | 23.8 | | - Continuing operations | $ | 6.3 | | $ | 16.0 | | - Discontinued operations | $ | 5.6 | | $ | 7.8 | | Adjusted net earnings attributable to equity holders1 | $ | 39.5 | | $ | 26.1 | | - Continuing operations | $ | 24.9 | | $ | 16.4 | | - Discontinued operations | $ | 14.6 | | $ | 9.7 | | Net earnings per share attributable to equity holders - continuing operations | $ | 0.01 | | $ | 0.03 | | Adjusted net earnings per share attributable to equity holders1- continuing operations | $ | 0.05 | | $ | 0.03 | | Net cash from operating activities before changes in working capital1- continuing operations | $ | 55.7 | | $ | 108.7 | | Net cash from operating activities | $ | 28.8 | | $ | 142.3 | | - Continuing operations | $ | 13.4 | | $ | 116.0 | | - Discontinued operations | $ | 15.4 | | $ | 26.3 | | Mine-site free cash flow1 | $ | 8.6 | | $ | 86.6 | | - Continuing operations | $ | 2.7 | | $ | 86.9 | | - Discontinued operations | $ | 5.9 | | $ | (0.3) | | Capital expenditures1,2- sustaining | $ | 35.0 | | $ | 56.1 | | Capital expenditures1,2- expansion | $ | 159.1 | | $ | 80.0 | | | | March 31 | | | December 31 | | | | 2023 | | | 2022 | | Financial Position ($ millions) | | | | | | | Cash, cash equivalents and short-term investments | $ | 532.1 | | $ | 407.8 | | Long-term debt | $ | 661.8 | | $ | 918.7 | | Net cash (debt)1 | $ | (261.6) | | $ | (605.6) | | Available Credit Facility | $ | 257.3 | | $ | 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.

OUTLOOK

Operating Performance Outlook

| | | Actual Q1 2023 | | | Full Year Guidance 20231 | | Essakane (000s oz) | | 92 | | | 340 - 380 | | Westwood (000s oz) | | 21 | | | 70 - 90 | | Total attributable production (000s oz)2 | | 113 | | | 410 - 470 | | Cost of sales2($/oz sold) | $ | 1,176 | | $ | 1,125 - $1,175 | | Cash costs2.3($/oz sold) | $ | 1,094 | | $ | 1,125 - $1,175 | | AISC2,3($/oz sold) | $ | 1,525 | | $ | 1,625 - $1,700 | | Depreciation expense ($ millions) | $ | 44.0 | | $ | 245 - $255 | | Income taxes4paid ($ millions) | $ | 11.0 | | $ | 70 - $80 |

1. 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. 2. Consists of Essakane and Westwood on an attributable basis of 90% and 100%, respectively. 3. This is a non-GAAP financial measure. See "Non-GAAP Financial Measures". 4. 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

Costs guidance for 2023 is unchanged with cash costs1expected to be between $1,125 and $1,175 per ounce sold and AISC1expected to be in the range of $1,625 to $1,700 per ounce sold. The Company anticipates that costs will increase during the second and third quarters of 2023 and could be at or above the high end of the annual guidance range due to higher volumes of waste stripping planned during these periods.

Pricing for the main consumables including cyanide, lime and grinding media remains in line with the levels realized in the second half of 2022. Pricing of fuel and fuel-linked products are expected to remain under pressure, reflecting continued imbalances in global supply and demand. Increases in oil prices are expected to be partially mitigated by the existing oil hedge program. Excluding the impact of the Company's hedging program, a $10/bbl increase in the oil price is estimated to result in an increase to cash costs of $12 per ounce sold. With current hedges in place, the same movement is estimated to result in an increase in cash costs of $7 per ounce sold.

Capital Expenditures1

Sustaining capital expenditures¹ for 2023 are expected to be approximately $195 million (± 5%) of which the majority is related to capitalized stripping at Essakane (see Operation Section on "Essakane, Burkina Faso") and underground development at Westwood. Expansion capital expenditures¹ for 2023 are expected to be approximately $805 to $880 million with Côté Gold expenditures, on an incurred basis, expected to be approximately $800 to $875 million, based on IAMGOLD's 70% accounting for Côté Gold (see also "Côté Gold Project"). Other expansion capital expenditures¹ (excluding Côté Gold) are expected to be approximately $5 million (± 5%) at Essakane in fulfillment of the relocation commitment to the Essakane village.

| | | Actual Q1 2023 | | | Full Year Guidance 20232 | | | | | | | | | | | | | | ($ millions) | | Sustaining3 | | | Expansion | | | Total | | | Sustaining3 | | | Expansion | | | Total | | Essakane | $ | 17.1 | | $ | 0.5 | | $ | 17.6 | | $ | 150 | | $ | 5 | | $ | 155 | | Westwood | | 17.8 | | | - | | | 17.8 | | | 45 | | | - | | | 45 | | | $ | 34.9 | | $ | 0.5 | | $ | 35.4 | | $ | 195 | | $ | 5 | | $ | 200 | | Côté Gold4 | | - | | | 158.6 | | | 158.6 | | | - | | | 800 - 875 | | | 800 - 875 | | Corporate | | 0.1 | | | - | | | 0.1 | | | - | | | - | | | - | | Total5,6,7,8 | $ | 35.0 | | $ | 159.1 | | $ | 194.1 | | $ | 195 | | $ | 805 - 880 | | $ | 1,000 - 1,075 |

1. 100% basis, unless otherwise stated. 2. Capital expenditures guidance (±5%) at Essakane and Westwood. 3. Sustaining capital includes capitalized stripping of (i) $6.4 million for Essakane and $2.7 million for Westwood in the first quarter 2023 and (ii) $90 million for Essakane and $6.0 million for Westwood for the full year guidance. See "Outlook" sections below. 4. 70% basis. 5. Includes $3.0 million of capitalized exploration and evaluation expenditures also included in the Exploration Outlook guidance table. 6. Capitalized borrowing costs are not included. 7. See "Costs Outlook" section above. 8. The full year guidance does not include expenditures for the Boto asset currently held for sale. See "Bambouk Assets" for additional details.

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 Q1 2023 | | | Full Year Guidance 20231 | | | | | | | | | | | | | | ($ millions) | | Capitalized | | | Expensed | | | Total | | | Capitalized | | | Expensed | | | Total | | Exploration projects - greenfield2 | $ | - | | $ | 2.8 | | $ | 2.8 | | $ | - | | $ | 13 | | $ | 13 | | Exploration projects - brownfield | | 1.1 | | | 0.5 | | | 1.6 | | | 3 | | | 2 | | | 5 | | | $ | 1.1 | | $ | 3.3 | | $ | 4.4 | | $ | 3 | | $ | 15 | | $ | 18 |

1. The full year guidance does not include expenditures for the Boto asset currently held for sale. See "Bambouk Assets" for additional details. 2. Exploration projects - greenfield does not include $2.3 million of expenditures for the Boto asset currently held for sale.

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.

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 (days away, restricted, transferred duty frequency rate) was 0.60 as at March 31, 2023 (compared to 0.29 as at March 31, 2022), tracking above the Company's annual target of 0.40, with an increasing trend since October 2022. The TRIFR (total recordable injuries frequency rate) was 0.84 as at March 31, 2023 (compared to 0.83 as at March 31, 2022), tracking above the Company's annual target of 0.69.

The increasing trend is due to the recordable incidents at Westwood that impacted the global TRIFR and DARTFR during the first quarter 2023. In addition to the existing preventive Health and Safety program, specific actions have been implemented to mitigate the reoccurrence of these incidents.

Environment

The Company recognizes that mining activities are energy intensive and generate significant greenhouse gas ("GHG") emissions. In September 2021, the Company announced that it had set a global target of reaching net negative GHG emissions by no later than 2050. The Company also announced a target of achieving net positive biodiversity. Medium-term targets will be set as part of the Company's roadmap to achieve these global targets. An external review of the Company's GHG emissions profile across all sites has been completed and a draft action plan of the Company's global commitments is currently being updated with the recent sale of some Company assets. The details of the roadmap will be published in the inaugural TCFD report in 2023.

At Côté Gold, permitting efforts continued in the first quarter 2023 with permit amendments received allowing for additional temporary camp infrastructure to support an increase in workers on site during construction. During the first quarter 2023, the Company applied to the Ontario Ministry of the Environment, Conservation and Parks for initial entry into the Emissions Performance Standards program to further compliance with its environmental obligations including establishing an emissions baseline for the Côté operation.

At Essakane, significant 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.

Social and Economic Development

The Company is continuously exploring opportunities for investing and partnering with the communities impacted by its continuing operations.