Honey Badger Silver Inc press release

IAMGOLD Reports Third Quarter 2024 Results

2024-11-07

TSXV - TSX Venture Exchange · Silver · Gold · Zinc · Lead · Copper · Antimony · Tellurium · Arsenic · Bismuth · Iron · Gallium · Germanium · Canada · Corporate Finance

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

Toronto, Ontario--(Newsfile Corp. - November 7, 2024) - IAMGOLD Corporation(NYSE: IAG) (TSX: IMG) ("IAMGOLD" or the "Company") today reported its financial and operating results for the third quarter ended September 30, 2024.

"We are proud of what IAMGOLD has achieved this year, with another strong quarter of safe, stable production and cash flow growth," said Renaud Adams, President and Chief Executive Officer of IAMGOLD. "This is a company that is rapidly moving closer to the goal of becoming a leading, modern Canadian gold producer with a strong balance sheet and assets that are poised to generate significant value for our stakeholders and investors."

"IAMGOLD finished the third quarter with year-to-date production of 490,000 gold ounces, inclusive of Côté, which puts the company well on track to meet its combined annual production guidance of 625,000 to 715,000 ounces. This result has been driven by the strong year to date performance at Essakane, building of momentum at Westwood, and the ramp-up progress at Côté Gold. Importantly, our teams have succeeded while continuing our strong health and safety record, ensuring that the safety of our people and communities is a defining priority in all that we do. Financially, IAMGOLD's balance sheet and cash flow outlook continues to improve. In the third quarter the company made important first steps to reduce the balance of the gold prepayment with the delivery of 37,500 ounces into the legacy gold prepayment arrangement. Our full intention is to close out the arrangement by June 2025, increasing the exposure and flexibility of the company at an opportune time in the market."

"The Côté Gold Mine achieved multiple milestones in the third quarter, including reaching commercial production on August 1, 2024, and the completion of an important shutdown in September that allowed for the deployment of key operating improvements that had a near-immediate measurable and meaningful positive impact on operations. As a result of these efforts, we remain confident in our goal for Côté Gold to continue to ramp-up and achieve 90% throughput exiting this year. Further, on November 30thwe plan to complete the repurchase of the 9.7% interest held by our respected joint venture partner, Sumitomo, to return to a 70% interest in the project."

"Looking ahead, these achievements will position Côté Gold for a significant 2025 as throughput rates ramp-up to steady state. IAMGOLD will continue to pursue improvements in mining and processing activities, and our teams are examining the potential options to bring into a mine plan the full resource base estimate of the Côté and Gosselin zones - which combine for over 16.5 million ounces of measured and indicated and 4.2 million ounces of inferred resources. Côté Gold is a unique asset that we believe will become one of Canada's largest gold mines and a model for modern mining done right in Canada for years to come."

HIGHLIGHTS:

Operating and Financial

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Attributable gold productionwas 173,000 ounces in the third quarter and 490,000 ounces year-to-date ("YTD"), driven by strong performance at Essakane and Westwood, as well as the second quarter of production at Côté Gold.

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Production guidance for 2024 is reaffirmed, with Essakane and Westwood attributable production expected to be at the top end of the previously raised guided rangeof 495,000 to 540,000 ounces, and Côté Gold attributable production expected to be at thelower 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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Côté Gold reached commercial production on August 1, 2024, and achieved positive mine-site free cash flow in the quarter. The ramp-up of the operation continued to progress and remains on track to exit the year at 90% of the design throughput rate of 36,000 tonnes per day ("tpd"). Record daily throughput of 42,096 tpd was achieved following the scheduled shutdown in September, during which key optimizations and improvements were made to improve the availability and performance of the processing plant.

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The cash cost1guidance range, excluding Côté Gold, is unchanged and full year costs are expected to be at the low end of the previously lowered range of $1,175 to $1,275 per ounce sold and the all-in-sustaining-cost1 ("AISC") guidance range is unchanged and full year costs are expected to be at the bottom end of the range of $1,700 to $1,825 per ounce sold.

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For Côté Gold, the company expects cash costs and AISC at the end of the year at the top end of the guidance range of $700 to $800 per ounce sold and $1,100 to $1,200 per ounce sold, respectively. The costs may exceed the top range depending on timing and one time cost of initiatives and improvements implemented to achieve the ramp-up target.

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Revenueswere $438.9 million from sales of 184,000 ounces at an average realized gold price1of $2,391 per ounce and $1,163.1 million YTD from sales of 514,000 ounces at an average realized gold price of $2,260 per ounce.

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Essakane and Westwood cost of salesper ounce sold was $1,213 ($1,119 YTD), cash cost1per ounce sold was $1,208 ($1,115 YTD) and AISC per ounce sold was $1,789 ($1,626 YTD).

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Côté Gold cost of sales and cash cost1per ounce sold, net of capitalized operating costs during the pre-commercial production period, was $1,033 ($984 YTD) and $1,030 ($982 YTD) per ounce sold, respectively.

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Net earnings and adjusted net earnings per shareattributable to equity holders1of $1.04 and $0.18 for the third quarter, respectively; YTD net earnings and adjusted net earnings per share attributable to equity holders1of $1.39 and $0.45, respectively. The third quarter and YTD net earnings were adjusted for a $462.3 million gain on the reversal of the previously recorded impairment at Westwood.

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Net cash from operating activitieswas $146.2 million for the third quarter and $383.4 million YTD. Net cash from operating activities, before movements in working capital and non-current ore stockpiles1, was $161.2 million for the third quarter and $473.2 million YTD.

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Earnings before interest, income taxes, depreciation and amortization("EBITDA")1was $719.6 million during the third quarter ($1,063.5 million YTD) and adjusted EBITDA1was $221.7 million during the third quarter ($565.2 million YTD). The third quarter and YTD EBITDA was adjusted for a $462.3 million gain on the reversal of the previously recorded impairment at Westwood.

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Mine-site free cash flow1, excluding Côté Gold, was $97.4 million for the third quarter and $283.6 million YTD. The mine-site free cash flow from Côté Gold was $23.3 million during the third quarter.

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The Company has available liquidity1of $959.3 million, mainly comprised of cash and cash equivalents of $553.4 million and the available balance of the revolving credit facility ("Credit Facility") of $404.9 million as at September 30, 2024.

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In health and safety, for the quarter ended September 30, 2024, the Company reported a TRIFR (total recordable injuries frequency rate) of 0.46, an improved trend since last year.

Corporate

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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 were received during the third quarter 2024.

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On September 30, 2024, the Company provided Sumitomo Metal Mining Co. Ltd. ("Sumitomo" or "SMM") with the required 60 days formal irrevocable notice to repurchase the 9.7% interest of the Côté Gold that was transferred to Sumitomo as part of the JV funding and Amending Agreement entered into on December 19, 2022. This transaction is expected to close on November 30, 2024, and will return IAMGOLD to its full 70% interest in Côté Gold. The repurchase price of approximately $377 million will be funded using the proceeds from the $300 million equity financing completed during the second quarter 2024 and with available liquidity.

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During the quarter, the Company delivered 37,500 ounces into the 2022 Gold prepay arrangements. Subsequent to quarter end, the Company delivered its October obligations of 12,500 ounces into the arrangement, reducing the outstanding balance to 100,000 ounces.

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The Company intends to renew its base shelf prospectus, following the expiry of the prior base shelf in October 2024. The renewal is consistent with past practice to provide financial flexibility. The new base shelf prospectus will be filed after market close on November 7, 2024. The Company has no present intention to offer securities pursuant to the new base shelf prospectus. The notice set out in this paragraph does not constitute an offer to sell or a solicitation of an offer to buy any securities.

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 September 30, 2024 (Q3 2024) and September 30, 2023 (Q3 2023) and the nine months ended September 30, (or YTD) 2024 and 2023 and certain measures of the Company's financial ("discontinued operations") position as at December 31, 2023, and September 30, 2023.

| | | Q3 2024 | | | Q3 2023 | | | YTD 2024 | | | YTD 2023 | | | Key Operating Statistics ($ millions from continuing operations) | | | | | | | | | | | | | | Gold production - attributable (000s oz) | | | | | | | | | | | | | | - Essakane | | 100 | | | 84 | | | 329 | | | 264 | | | - Westwood | | 32 | | | 25 | | | 99 | | | 65 | | | Subtotal | | 132 | | | 109 | | | 428 | | | 329 | | | - Côté Gold (60.3%) | | 41 | | | - | | | 62 | | | - | | | Total gold production - attributable (000s oz) | | 173 | | | 109 | | | 490 | | | 329 | | | Gold sales - attributable (000s oz) | | | | | | | | | | | | | | - Essakane | | 101 | | | 84 | | | 325 | | | 265 | | | - Westwood | | 29 | | | 22 | | | 97 | | | 61 | | | Subtotal | | 130 | | | 106 | | | 422 | | | 326 | | | - Côté Gold (60.3%) | | 41 | | | - | | | 55 | | | - | | | Total gold sales - attributable (000s oz) | | 171 | | | 106 | | | 477 | | | 326 | | | Cost of sales1($/oz sold) - attributable | | | | | | | | | | | | | | - Essakane | $ | 1,226 | | $ | 1,417 | | $ | 1,099 | | $ | 1,249 | | | - Westwood | | 1,171 | | | 1,506 | | | 1,185 | | | 1,674 | | | Subtotal | $ | 1,213 | | $ | 1,436 | | $ | 1,119 | | $ | 1,329 | | | - Côté Gold | | 1,033 | | | - | | | 984 | | | - | | | Total cost of sales1($/oz sold) - attributable | $ | 1,170 | | $ | 1,436 | | $ | 1,103 | | $ | 1,329 | | | Cash costs2($/oz sold) - attributable | | | | | | | | | | | | | | - Essakane | $ | 1,223 | | $ | 1,372 | | $ | 1,097 | | $ | 1,201 | | | - Westwood | | 1,157 | | | 1,506 | | | 1,174 | | | 1,667 | | | Subtotal | $ | 1,208 | | $ | 1,400 | | $ | 1,115 | | $ | 1,288 | | | - Côté Gold | | 1,030 | | | - | | | 982 | | | - | | | Total cash costs2($/oz sold) - attributable | $ | 1,165 | | $ | 1,400 | | $ | 1,099 | | $ | 1,288 | | | AISC2($/oz sold) - attributable | | | | | | | | | | | | | | - Essakane | $ | 1,730 | | $ | 1,798 | | $ | 1,498 | | $ | 1,510 | | | - Westwood | | 1,617 | | | 2,138 | | | 1,708 | | | 2,486 | | | Subtotal | $ | 1,789 | | $ | 1,975 | | $ | 1,626 | | $ | 1,803 | | | - Côté Gold4 | $ | 1,602 | | $ | - | | $ | 1,602 | | $ | - | | | Total AISC2($/oz sold) - attributable | $ | 1,756 | | $ | 1,975 | | $ | 1,625 | | $ | 1,803 | | | Average realized gold price2,3($/oz) | $ | 2,391 | | $ | 1,937 | | $ | 2,260 | | $ | 1,934 | |

1. Throughout this news release 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 news release for a description and calculation of these measures. 3. The average realized gold price in the third quarter 2024, excluding the impact of the 2022 Prepay Arrangement (as defined below), was $2,498 per ounce and $2,324 per ounce YTD 2024. 4. All-in sustaining cost for Côté Gold represents the two-month period following achievement of commercial production.

| | | Q3 2024 | | | Q3 2023 | | | YTD 2024 | | | YTD 2023 | | | Financial Results ($ millions from continuing operations) | | | | | | | | | | | | | | Revenues | $ | 438.9 | | $ | 224.5 | | $ | 1,163.1 | | $ | 689.5 | | | Gross profit | $ | 162.6 | | $ | 4.6 | | $ | 419.0 | | $ | 74.3 | | | EBITDA1 | $ | 719.6 | | $ | 61.8 | | $ | 1,063.5 | | $ | 310.8 | | | - Continuing operations | $ | 719.6 | | $ | 61.8 | | $ | 1,063.5 | | $ | 296.4 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 14.4 | | | Adjusted EBITDA1 | $ | 221.7 | | $ | 57.8 | | $ | 565.2 | | $ | 227.9 | | | - Continuing operations | $ | 221.7 | | $ | 57.8 | | $ | 565.2 | | $ | 204.5 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 23.4 | | | Net earnings (loss) attributable to equity holders | $ | 594.1 | | $ | (0.8 | ) | $ | 733.4 | | $ | 103.7 | | | - Continuing operations | $ | 594.1 | | $ | (0.8 | ) | $ | 733.4 | | $ | 98.1 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 5.6 | | | Adjusted net earnings (loss) attributable to equity holders1 | $ | 101.0 | | $ | (4.0 | ) | $ | 238.8 | | $ | 32.6 | | | - Continuing operations | $ | 101.0 | | $ | (4.0 | ) | $ | 238.8 | | $ | 18.0 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 14.6 | | | Net earnings (loss) per share attributable to equity holders - continuing operations | $ | 1.04 | | $ | (0.00 | ) | $ | 1.39 | | $ | 0.21 | | | Adjusted net earnings (loss) per share attributable to equity holders1- continuing operations | $ | 0.18 | | $ | (0.01 | ) | $ | 0.45 | | $ | 0.04 | | | Net cash from operating activities before changes in working capital1- continuing operations | $ | 161.2 | | $ | 29.3 | | $ | 473.2 | | $ | 106.8 | | | Net cash from operating activities | $ | 146.2 | | $ | 37.5 | | $ | 383.4 | | $ | 89.5 | | | - Continuing operations | $ | 146.2 | | $ | 37.5 | | $ | 383.4 | | $ | 74.1 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 15.4 | | | Mine-site free cash flow1 | $ | 120.7 | | $ | 2.1 | | $ | 306.9 | | $ | 25.3 | | | - Continuing operations | $ | 120.7 | | $ | 2.1 | | $ | 306.9 | | $ | 19.4 | | | - Discontinued operations | $ | - | | $ | - | | $ | - | | $ | 5.9 | | | Capital expenditures1,2- sustaining | $ | 84.7 | | $ | 50.4 | | $ | 197.2 | | $ | 131.7 | | | Capital expenditures1,2- expansion | $ | 11.2 | | $ | 191.6 | | $ | 188.7 | | $ | 478.3 | | | | | September 30 | | | December 31 | | | September 30 | | | December 31 | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | Financial Position ($ millions) | | | | | | | | | | | | | | Cash and cash equivalents | $ | 553.4 | | $ | 367.1 | | $ | 553.4 | | $ | 367.1 | | | Long-term debt | $ | 810.7 | | $ | 830.8 | | $ | 810.7 | | $ | 830.8 | | | Net cash (debt)1 | $ | (449.0 | ) | $ | (649.5 | ) | $ | (449.0 | ) | $ | (649.5 | ) | | Available Credit Facility | $ | 404.9 | | $ | 387.0 | | $ | 404.9 | | $ | 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 exclude right-of-use assets and working capital impacts. Sustaining capital expenditures for Côté Gold represent the two-month period following achievement of commercial production.

OUTLOOK

Production

| | YTD 2024 | Full Year Guidance 2024 | | Essakane (000s oz) | 329 | 380 - 410 | | Westwood (000s oz) | 99 | 115 - 130 | | Total attributable production (000s oz) | 428 | 495 - 540 | | Côté Gold, 60.3% (000s oz) | 62 | 130 - 175 |

Essakane & Westwood

Production at Essakane is expected to be at the top end of the guidance of 410,000 ounces. On a quarter-over-quarter basis, Essakane production in the fourth quarter will be lower compared to prior quarters due to grade sequencing in the mine plan.

Production at Westwood is expected to be at the top end of the guidance range of 130,000 ounces for the year.

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). 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 processing plant throughput rate.

Costs

| | YTD 2024 | Full Year Guidance 20241 | | Essakane (000s oz) | | | | Cash costs ($/oz sold) | $1,097 | $1,175 - $1,275 | | AISC ($/oz sold) | $1,498 | $1,575 - $1,675 | | Westwood (000s oz) | | | | Cash costs ($/oz sold) | $1,174 | $1,200 - $1,300 | | AISC ($/oz sold) | $1,708 | $1,775 - $1,900 | | Essakane + Westwood | | | | Cost of sales2($/oz sold) | $1,119 | $1,175 - $1,275 | | Cash costs2,3($/oz sold) | $1,115 | $1,175 - $1,275 | | AISC2,3($/oz sold) | $1,626 | $1,700 - $1,825 | | Côté Gold | Refer to Côté Gold section below | |

1. The 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. 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".

The 2024 cost guidance for Essakane and Westwood combined is unchanged and is 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.

Essakane

Cost guidance for Essakane is expected to be at the low end of the range of $1,175 to $1,275 for cash cost per ounce sold and within the range of $1,575 to $1,675 for AISC per ounce sold. Operating costs are expected to remain in line with levels experienced in recent quarters, while the unit cost is expected to increase due to the expected lower production in the fourth quarter. AISC is expected to be higher in the fourth quarter due to lower production and an increase in capitalized waste stripping to support the 2025 production plan.

Westwood

Cost guidance for Westwood is expected to be at the low end of 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. Fourth quarter unit costs are expected to be higher with the annual mill shutdown scheduled for November, which includes the replacement of certain mill equipment, in addition to new production drills expected to be commissioned in the quarter.

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 at the top end of the range of $700 to $800 per ounce sold and AISC of $1,100 to $1,200 per ounce. The costs may exceed the top range depending on timing and one time cost of initiatives and improvements implemented to achieve the ramp-up target.

Capital Expenditures

Essakane and Westwood

| | | YTD 20241 | | | Full Year Guidance 20242 | | | | | | | | | | | | | | | ($ millions) | | Sustaining3 | | | Expansion | | | Total | | | Sustaining3 | | | Expansion | | | Total | | | Essakane (±5%) | $ | 131.4 | | $ | 3.0 | | $ | 134.4 | | $ | 170 | | $ | 5 | | $ | 175 | | | Westwood (±5%) | | 47.6 | | | 0.1 | | | 47.7 | | | 70 | | | - | | | 70 | | | | $ | 179.0 | | $ | 3.1 | | $ | 182.1 | | $ | 240 | | $ | 5 | | $ | 245 | | | Corporate | | 1.1 | | | - | | | 1.1 | | | - | | | - | | | - | | | Total4 | $ | 180.1 | | $ | 3.1 | | $ | 183.2 | | $ | 240 | | $ | 5 | | $ | 245 | |