ROSEBEL AND ESSAKANE CONTINUE GENERATING FREE
CASH FLOW AS
WESTWOOD RAMPS UP ACCORDING TO
PLAN
All monetary amounts are expressed in U.S.
dollars, unless otherwise indicated.
Refer to the
Management Discussion and Analysis (MD&A) and Unaudited
Condensed Consolidated Interim
Financial Statements for
the three months ended March 31, 2015
for more information.
TSX: IMG
NYSE:
IAG
TORONTO, May 5, 2015 /CNW/ - IAMGOLD
Corporation ("IAMGOLD" or the "Company") today reports its
financial and operating results for the first quarter ended
March 31, 2015.
"Last year we said we would continue to focus on cost
containment, capital discipline and cash preservation," commented
Steve Letwin, IAMGOLD's President
and CEO. In the first quarter we delivered on that plan, performing
well across key metrics. Production was up 21% year-over-year,
all-in sustaining costs were down 7%, capital spending was down
43%, net cash from operating activities was up 7%, and we ended the
quarter with nearly $900 million in
cash and bullion.
"Rosebel and Essakane continue to generate positive free cash
flow, and the pace of ramp-up at Westwood is aligned with our goal of achieving
positive free cash flow at a consolidated level while executing on
our growth strategy. We are evaluating options for investing cash
in excess of our capital commitments that will sustain growth and
offer attractive returns. Exploration continues to build a strong
growth pipeline for our future, with recent positive drilling
results at the Boto Gold project and Essakane's indicated ounces
increasing 6% with the 84% increase at the Falagountou
deposit."
First Quarter 2015
Highlights:
- Attributable gold production and gold sales of 208,000
ozs.
- All-in sustaining costs1 – gold mines2 of
$1,113/oz.
- Total cash costs1,3 – gold mines of $846/oz.
- Cash, cash equivalents and gold bullion (at market value) of
$889.1 million at March 31, 2015 compared to $321.0 million at December
31, 2014.
- Net cash from operating activities of $30.0 million.
- Maintaining production guidance of 820,000 to 860,000 ounces at
total cash costs of $850 to $900 per
ounce produced and all-in sustaining costs of $1,075 to $1,175 per ounce sold.
- January 22, 2015 – received
$502.6 million cash from sale of
Niobec; recorded an after-tax gain of $37.8
million.
- February 2015 – issued
flow-through shares for net proceeds of $39.3 million.
- March 23, 2015 – completed sale
of Diavik royalty for proceeds of $56.8
million, with $52.5 million
cash received in the quarter; recorded an after-tax gain of
$43.5 million.
- March 2015 – repurchased
$5.4 million (face value) of
long-term debt.
- Announced retirement of current Chairman of the Board,
Bill Pugliese, and a reduction in
board size from ten to seven directors.
Subsequent to Quarter-end:
- April 23, 2015 - announced
updated resource estimate for the Falagountou deposit at Essakane.
The indicated resource increased by 84% to 613,000 ounces and the
average grade by 10% to 1.52 g/t Au, contributing to a 6% increase
in Essakane's estimated indicated resource to 5.0 million
ounces.
|
SUMMARY OF
FINANCIAL AND OPERATING RESULTS
|
|
|
|
Three months
ended
March 31,
|
Financial Results
($ millions, except where noted)
|
2015
|
2014
|
Continuing
Operations
|
|
|
Revenues
|
$
|
244.7
|
|
$
|
217.3
|
Cost of
sales
|
$
|
231.7
|
|
$
|
185.2
|
Earnings from
continuing mining operations1
|
$
|
13.0
|
|
$
|
32.1
|
Net earnings
including discontinued operations attributable to equity holders of
IAMGOLD
|
$
|
24.1
|
|
$
|
3.7
|
Net earnings
including discontinued operations attributable to equity holders of
IAMGOLD per share ($/share)
|
$
|
0.06
|
|
$
|
0.01
|
Adjusted net earnings
(loss) including discontinued operations attributable to equity
holders of IAMGOLD1
|
$
|
(26.7)
|
|
$
|
12.0
|
Adjusted net earnings
(loss) including discontinued operations per share
($/share)1
|
$
|
(0.07)
|
|
$
|
0.03
|
Net cash from
operating activities including discontinued operations
|
$
|
30.0
|
|
$
|
28.1
|
Net cash from
operating activities before changes in working capital including
discontinued operations1
|
$
|
54.8
|
|
$
|
64.6
|
Net cash from
operating activities before changes in working capital including
discontinued operations ($/share)1
|
$
|
0.14
|
|
$
|
0.17
|
Net earnings from
discontinued operations attributable to equity holders of
IAMGOLD
|
$
|
40.6
|
|
$
|
17.8
|
Net earnings from
discontinued operations attributable to equity holders of IAMGOLD
($/share)
|
$
|
0.10
|
|
$
|
0.05
|
Key Operating
Statistics
|
|
|
Gold sales –
attributable (000s oz)
|
208
|
|
176
|
Gold commercial
production – attributable (000s oz)
|
208
|
|
171
|
Gold production –
attributable2 (000s oz)
|
208
|
|
172
|
Average realized gold
price1 ($/oz)
|
$
|
1,221
|
|
$
|
1,286
|
Total cash
costs1,3,4 - gold mines5 ($/oz)
|
$
|
846
|
|
$
|
886
|
Gold
margin1 ($/oz)
|
$
|
375
|
|
$
|
400
|
All-in sustaining
costs1,4 – gold mines ($/oz)
|
$
|
1,113
|
|
$
|
1,198
|
1
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
|
2
|
Attributable gold
production includes Westwood pre-commercial production for the
three months ended March 31, 2014 of 1,000 ounces.
|
3
|
The total cash costs
computation does not include Westwood pre-commercial production for
the three months ended March 31, 2014 of 1,000 ounces.
|
4
|
By-product credits
are included in the calculation of this measure; refer to the
non-GAAP performance measures section of the MD&A for the
reconciliation to GAAP.
|
5
|
Gold mines, as used
with total cash costs and all-in sustaining costs, consist of
Rosebel, Essakane, Westwood (commercial production), Mouska,
Sadiola and Yatela on an attributable basis.
|
FIRST QUARTER 2015 HIGHLIGHTS
Sale of Niobec
- On January 22, 2015, we completed
the sale of Niobec Inc., comprising the niobium business and the
rare earth element ("REE") deposit, for total consideration of
$530 million plus working capital
adjustments. We received $502.6
million in cash, which included working capital adjustments,
for the niobium business. An additional $30
million is due when the REE deposit commences commercial
production, as well as a 2% gross proceeds royalty on REE
production. In the first quarter, we recorded an after-tax gain on
the sale of $37.8 million based on
the carrying amount of Niobec, which included the recognition of a
$16 million deferred tax asset
related to the REE deposit upon its transfer to Niobec prior to the
closing of the transaction.
- For the first quarter 2015, Niobec's net earnings were
disclosed separately as net earnings from discontinued operations,
net of income taxes in the Consolidated statement of earnings.
Comparative periods have been adjusted accordingly. The net
earnings from discontinued operations for the period January 1, 2015 to January
22, 2015 when the sale of Niobec was completed, were
$40.6 million, comprising mainly a
$37.8 million gain on the sale.
Sale of Diavik Royalty
- Further bolstering our cash position, on March 23, 2015 we completed the sale of our
Diavik Diamond Royalty for total proceeds of $56.8 million, comprising $52.5 million cash on closing and three million
five-year warrants exercisable after initial production from the
Diavik Diamond Mine's A21 pipe at an exercise price of $4.50, valued at $4.3
million based on our internal valuation methodology. The net
realized after-tax gain was $43.5
million.
Financial Performance
- Revenues from continuing operations for the first quarter 2015
were $244.7 million, up 13% from the
same prior year period. The increase was the result of higher gold
sales of 33,000 ounces at our owner-operated mines ($41.3 million), partially offset by a lower
average realized gold price ($12.0
million) and lower royalties following the sale of Diavik
($2.3 million). The higher sales
volume was mainly due to the inclusion of Westwood's revenues in the operating results
after achieving commercial production status post first quarter
2014 and a 30% increase in production at Essakane, partially offset
by lower production at Rosebel and the closure of Mouska.
- Cost of sales from continuing operations for the first quarter
2015 was $231.7 million, up
$46.5 million from the same prior
year period. The increase was mainly the result of higher operating
costs ($22.9 million) and higher
depreciation expense ($24.4 million).
Operating costs were higher year-over-year mainly due to the
inclusion of Westwood's operating
costs in the operating results after achieving commercial
production status post first quarter 2014 ($30.3 million). Also contributing factors were
harder rock and lower capitalized stripping at Essakane
($4.2 million). Partially offsetting
these increases were lower mining and milling costs at Rosebel
($7.6 million) and the closure of
Mouska ($4.0 million).
- Depreciation expense from continuing operations for the first
quarter 2015 was $62.3 million, up
64% from the first quarter 2014. This was primarily due to the
inclusion of Westwood's
depreciation expense in the operating results after achieving
commercial production status post first quarter 2014, higher
production and lower reserves at Essakane, and higher amortization
of capitalized stripping at Rosebel.
- Income tax expense from continuing operations for the first
quarter 2015 was $21.8 million, up
$12.7 million from the same prior
year period. The increase was mainly due to the increase in the
non-cash deferred tax expense as a result of the strengthening of
the U.S. dollar. This reduced the tax basis of mining assets in
foreign jurisdictions, which lowered the future tax deductions
available when translated into U.S. dollars.
- Net loss from continuing operations attributable to equity
holders for the first quarter 2015 was $16.5
million or $0.04 per share, up
$2.4 million from the same prior year
period. The increase in the net loss was mainly related to higher
cost of sales ($46.5 million) and
income taxes ($12.7 million), higher
non-hedge derivative losses ($10.7
million) and higher finance costs ($8.0 million), partially offset by the gain on
the sale of the Diavik royalty ($43.5
million) and higher revenues ($27.4
million).
- Adjusted net loss including discontinued operations
attributable to equity holders1 for the first quarter
2015 was $26.7 million ($0.07 per share1), down $38.7 million ($0.10 per share1) from the adjusted
net earnings of $12.0 million
($0.03 per share1) for the
same prior year period.
- Net cash from operating activities including discontinued
operations was $30.0 million for the
first quarter 2015, up 7% from the first quarter 2014. The increase
was mainly due to collecting cash on outstanding receivables
($16.7 million), paying less income
taxes ($13.8 million) and managing
vendor payment terms ($9.4 million),
partially offset by lower earnings from operations.
- Net cash from operating activities before changes in working
capital1 including discontinued operations for the first
quarter 2015 was $54.8 million
($0.14 per share1), down
$9.8 million ($0.03 per share1) from the same prior
year period.
Financial Position
- Cash, cash equivalents and gold bullion (at market value) was
$889.1 million as at March 31, 2015 compared with $321.0 million as at December 31, 2014. The $568.1 million increase was mainly due to gross
proceeds from the sale of the niobium business ($502.6 million), proceeds from the sale of the
Diavik royalty ($52.5 million),
proceeds from the issuance of flow-through shares ($39.3 million) and cash generated from operating
activities ($30.0 million), partially
offset by spending on Property, plant and equipment ($48.6 million) and a repurchase of long-term debt
($4.5 million).
Production and Costs
Gold Operations
- Attributable gold production, inclusive of joint venture
operations, was 208,000 ounces in the first quarter 2015, up 21% or
36,000 ounces from the first quarter 2014. The increase was mainly
due to the commencement of commercial production at Westwood in the third quarter 2014 (21,000
ounces) and a 49% increase in grades at Essakane (21,000 ounces).
This was partially offset by lower grades at Rosebel (4,000 ounces)
and the winding down of operations at Yatela (2,000 ounces).
Compared to the fourth quarter 2014, production was down 14% due to
lower grades at Rosebel and the mining of lower grade lenses at
Westwood as planned. We had guided
at the beginning of the year that production at Westwood would be lightest in the first and
fourth quarters, with mining of higher grade lenses planned for the
second and third quarters.
- Attributable gold sales, inclusive of joint venture operations,
for the first quarter 2015, were 208,000 ounces, in line with
attributable gold production despite offsetting timing differences
between production and sales at Westwood, Rosebel and Essakane.
- Total cash costs1, 3 - gold mines2 for
the first quarter 2015 were $846 per
ounce produced, down $40 an ounce
from the first quarter 2014. The improvement reflects lower unit
costs at Essakane, as higher grades drove production higher, and
lower mining costs at our joint venture operations. The decrease
was partially offset by higher costs at Westwood due to rehabilitation activities in
the area affected by the localized rock burst on January 22, 2015, as well as the impact of lower
grades at Rosebel. Included in total cash costs in the first
quarter 2015 were realized hedge and non-hedge derivative losses of
$60 per ounce produced, compared to
$nil per ounce in the first quarter 2014.
- All-in sustaining costs1 - gold mines were
$1,113 per ounce sold in the first
quarter 2015, down $85 an ounce from
the first quarter 2014. This was mainly due to higher sales volume
and lower cash costs. Included in all-in sustaining costs in the
first quarter 2015 were realized hedge and non-hedge derivative
losses of $64 per ounce sold,
compared to $nil per ounce in the first quarter 2014.
Commitment to Zero Harm Continues
- Regarding health and safety, the frequency of all types of
serious injuries (measured as the DART rate4), for the
first quarter 2015 was 0.70, in line with our target for
2015. Based on the exceptional performance of 0.66 in 2014,
we have set an aggressive target of 0.69 for 2015.
|
|
|
|
ATTRIBUTABLE GOLD
PRODUCTION AND ALL-IN SUSTAINING AND TOTAL CASH
COSTS
|
|
|
|
|
|
Gold
Production
(000s
oz)
|
Total Cash
Costs 1,2
($ per ounce
produced)
|
All-in Sustaining
Costs1
($ per ounce sold)
|
Three months ended
March 31,
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
Continuing
operations
|
|
|
|
|
|
|
Owner-operator
|
|
|
|
|
|
|
Rosebel
(95%)
|
76
|
80
|
$
|
850
|
$
|
813
|
$
|
1,037
|
$
|
1,031
|
Essakane
(90%)
|
89
|
68
|
761
|
|
875
|
|
988
|
|
1,233
|
Westwood
(100%)
|
22
|
—
|
1,130
|
|
—
|
|
1,507
|
|
969
|
|
187
|
148
|
841
|
|
842
|
|
1,135
|
|
1,185
|
Joint
ventures
|
|
|
|
|
|
Sadiola
(41%)
|
19
|
19
|
887
|
|
1,106
|
|
914
|
|
1,170
|
Yatela
(40%)
|
2
|
4
|
913
|
|
1,551
|
|
992
|
|
1,885
|
|
21
|
23
|
889
|
|
1,175
|
|
921
|
|
1,291
|
Total commercial
operations
|
208
|
171
|
846
|
|
886
|
|
1,113
|
|
1,198
|
Westwood
(100%)
|
—
|
1
|
—
|
|
—
|
|
—
|
|
—
|
|
208
|
172
|
846
|
|
886
|
|
1,113
|
|
1,198
|
Cash costs, excluding
royalties
|
|
796
|
|
820
|
|
|
|
Royalties
|
|
50
|
|
66
|
|
|
|
Total cash
costs3
|
|
$
|
846
|
$
|
886
|
|
|
|
All-in sustaining
costs3 – gold mines4
|
|
|
|
|
$
|
1,113
|
$
|
1,198
|
1
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
|
2
|
The total cash costs
computation does not include Westwood pre-commercial production for
the three months ended March 31, 2014 of 1,000
ounces.
|
3
|
By-product credits
are included in the calculation of this measure; refer to the
non-GAAP performance measures section of the MD&A for the
reconciliation to GAAP.
|
4
|
Gold mines, as used
with total cash costs and all-in sustaining costs, consist of
Rosebel, Essakane, Westwood (commercial production), Mouska,
Sadiola and Yatela on an attributable basis.
|
FIRST QUARTER 2015 - OPERATIONS ANALYSIS
BY MINE SITE
(Refer to the MD&A for further details and analyses
of our operations.)
WESTWOOD MINE – CANADA (IAMGOLD Interest –
100%)
As we guided for the year, Westwood will have some variability in its
quarterly production until the operation ramps up to full capacity
over the next four years. Gold production is expected to range
between 110,000 to 130,000 ounces in 2015, with the first and
fourth quarters accounting for approximately 40% and the second and
third quarters for approximately 60%. The variability is the
result of mine sequencing within a single sector, as mining focuses
on the lower grade lenses in the first and last quarters and the
higher grade lenses in the second and third quarters. There are
five mining sectors in total, and once the operation is mining more
than two sectors the ability to blend ore from multiple sectors
will result in less grade variability.
In the first quarter 2015, Westwood produced 22,000 ounces of gold, in
line with expectations. Total cash costs were $1,130 per ounce produced and all-in sustaining
costs $1,507 per ounce sold. The
increase in unit costs from the fourth quarter 2014 reflects the
high level of stope preparation necessary to bring multiple mining
sectors into production and the costs associated with
rehabilitation activities in the area affected by the rock burst on
January 22, 2015. Although unit costs
were driven higher by the rock burst in the first quarter, we
expect Westwood's all-in
sustaining costs for 2015 to be in the range of $1,100 to $1,175 per ounce sold. We remain
confident in the long-term economics of the life-of-mine plan, and
expect that as the operation ramps up to design capacity there will
be a corresponding decline in all-in sustaining costs per ounce
sold.
ROSEBEL MINE – SURINAME (IAMGOLD interest –
95%)
Rosebel produced 76,000 attributable ounces of gold in the first
quarter 2015 compared to 94,000 ounces in the fourth quarter 2014.
The lower production over the previous quarter was due to declining
throughput reflecting a decline in the proportion of soft rock from
27% to 16% and a decline in the grade as a result of mine
sequencing.
Compared to the first quarter 2014, production was down
marginally from 80,000 ounces as lower grades were partially offset
by higher recovery and throughput. Despite the proportion of soft
rock decreasing to 16% from 50% in the same period last year, mill
throughput increased by 2%. This was due to improved mill
availability and measures taken in the second half of 2014 to
stabilize the mill feed blend prior to it reaching the primary
crusher, thereby reducing the variation in rock hardness.
First quarter 2015 total cash costs of $850 per ounce produced and all-in sustaining
costs of $1,037 per ounce sold
compared to $678 per ounce and
$916 per ounce, respectively, in the
fourth quarter 2014. The increase over the previous quarter was the
result of lower production.
Compared to the first quarter 2014, total cash costs per ounce
produced increased by 5% mainly due to lower grades. All-in
sustaining costs per ounce sold increased by 1% mainly due to
higher cash costs and lower sales volume, partially offset by lower
capital expenditures.
We expect the majority of the cost savings realized from the
initiatives in 2014 to flow through our cost structure this year
and beyond. Our priorities continue to be on improving grades and
increasing operating efficiency.
The drilling program at Rosebel continues to target
higher-grade, softer rock in the vicinity of the Rosebel operation
and on the Sarafina Option property, with results assessed on an
ongoing basis. We continue to evaluate possible transactions for
other prospective properties with the potential for higher-grade,
softer rock mineral resources.
ESSAKANE MINE - BURKINA
FASO (IAMGOLD interest – 90%)
Essakane produced 89,000 attributable ounces of gold in the
first quarter 2015, a level unchanged from the fourth quarter 2014.
This reflects a 4% increase in grades to 1.33 g/t Au offset by
lower throughput.
Compared to the first quarter 2014, production was up 31%
reflecting a 49% increase in grades attributable to processing a
greater proportion of hard rock containing higher grades. The
positive impact of the higher grades was partially offset by a 12%
decrease in mill throughput as the proportion of soft rock in the
mill feed decreased from 45% to 13%.
Total cash costs in the first quarter 2015 were $761 per ounce produced, down $67 per ounce from the fourth quarter 2014.
All-in sustaining costs in the first quarter 2015 were $988 per ounce sold, up $33 per ounce from the previous quarter,
reflecting an increase in capitalized stripping.
Compared to the first quarter 2014, total cash costs per ounce
produced were $114 per ounce lower
due to higher production resulting from the increase in grades,
lower mill consumables, lower diesel prices and lower royalties
driven by lower gold prices. All-in sustaining costs per ounce sold
were $245 per ounce lower mainly due
to lower cash costs and a 37% decrease in sustaining capital
expenditures.
As guided previously, production in 2015 is expected to increase
10% over 2014 as the expanded mill achieves design capacity. There
will be an increased emphasis on optimizing the asset through many
of the same milling and mining efficiency initiatives that were
successfully implemented at Rosebel in 2014, such as those aimed at
improving blasting and drilling efficiency and loading unit
productivity.
Falagountou
On April 23, 2015, we announced an
updated NI 43-101 compliant resource estimate for the Falagountou
deposit located about 8 kilometres south east of the Essakane main
pit. The updated resource estimate incorporates assay results from
an additional 165 reverse circulation and diamond infill drill
holes totaling 15,065 metres completed since the reported
December 31, 2014 Essakane resource
and reserve update. The indicated resource increased by 84% from
333,000 contained ounces to 613,000 contained ounces, and the
average grade by 10% from 1.38 to 1.52 grams per tonne of gold. The
estimated indicated resource for Essakane, which includes the
Falagountou deposit, increased by 6% from 4.7 million contained
ounces to 5.0 million ounces at a grade of 1.2 grams per tonne of
gold. The updated resource estimate for Essakane benefited from
both step-out drilling to expand the overall resource base of the
Falagountou deposit as well as infill drilling that substantially
upgraded the confidence of the estimate through conversion of
inferred resources to indicated resources. The additional
high-grade material from the Falagountou deposit is expected to
extend Essakane's peak production levels out beyond the previously
forecasted next four years. In preparation for the commencement of
mining at Falagountou in the second half of this year, the
construction of a mine haulage road is currently in progress.
SADIOLA MINE - MALI
(IAMGOLD interest – 41%)
Attributable gold production at Sadiola was 19,000 ounces in the
first quarter 2015 compared to 20,000 ounces in the fourth quarter
2014. The slightly lower production levels from the previous year
reflect lower grades, partially offset by higher throughput and
recoveries.
Compared to the first quarter 2014, production was unchanged as
improving throughput and recoveries offset lower grades.
Total cash costs in the first quarter 2015 were $887 per ounce produced, down $44 an ounce from the fourth quarter 2014. All-in
sustaining costs were $914 per ounce
sold, down $186 an ounce from the
previous quarter.
Compared to the first quarter 2014, total cash costs per ounce
produced were 20% lower, primarily due to a reduction in total
tonnage mined as mining ended at the Timbali pit. All-in sustaining
costs per ounce sold were 22% lower due to lower cash costs and
higher gold sales.
Discussions with AngloGold Ashanti to facilitate the disposition
of their interest in Sadiola continued in the first quarter
2015. Acquiring AngloGold Ashanti's interest in Sadiola under
the right terms has always been an option as it would enable us to
move forward with a full mill expansion to mine the sulphides or a
modified expansion at a lower capital cost. Our preference is
to have a partner for a full-scale expansion, and the projected
economic returns will drive our decision.
EXPLORATION
In the first quarter 2015, expenditures for exploration and
project studies totaled $14.4
million, of which $9.6 million
was expensed and $4.8 million
capitalized. This compares to a total of $14.0 million for the same period in 2014. As
disclosed previously, our exploration budget for 2015 is
$56 million, of which $16 million will be capitalized. It should be
noted that the capitalized portion is included in our $230 million capital spending guidance for
2015.
Refer to our first quarter 2015 MD&A for a more fulsome
discussion of exploration activity at our wholly-owned and joint
venture projects during the first quarter.
Boto Gold – Senegal
The infill delineation program
that began in 2014 on the Malikoundi deposit at our wholly-owned
Boto project for the purpose of upgrading the resource has been
completed. Infill drilling has confirmed wide zones of high grade
mineralization at the core of the deposit. The results are being
incorporated in a revised resource estimate, due for completion in
the third quarter 2015, and will support ongoing technical
studies.
Pitangui – Brazil
Diamond drilling at our
wholly-owned Pitangui project continues to focus on upgrading
resources within the core area of the São Sebastião resource. The
50 metre X 50 metre infill drilling program is expected to be
completed in the second quarter and assay results will be
incorporated in an updated resource model once received and
validated.
Siribaya – Mali (50:50 Joint
Venture with Merrex Gold Inc.)
On February 27, 2015, our joint venture partner,
Merrex Gold, announced the final assay results from six diamond
drill holes at the Siribaya project's Diakha prospect. Results from
the final six holes from the 2014 drilling program, included 6
metres grading 10.53 g/t Au, including 4 metres grading 15.45 g/t
Au; 8 metres grading 1.75 g/t Au; 10 metres grading 0.95 g/t Au and
8 metres grading 2.18 g/t Au. (see Merrex news release dated
February 27, 2015). The drill program
in 2014 has confirmed the presence of multiple zones of gold
mineralization with significant widths and grades. In 2015, the
focus is on completing an infill delineation drilling program to
enable the declaration of an initial 43-101 compliant resource
estimate by the end of 2015 as results warrant.
Eastern Borosi – Nicaragua
(Option Agreement with Calibre Mining Corporation)
On
April 1, 2015, Calibre Mining
announced the first set of results from the 2015 drilling program
on the Eastern Borosi gold-silver project. Drilling on
multiple veins in the La Sorpresa gold-silver vein system resulted
in the discovery of three new gold-silver mineralized shoots,
including 4.1m grading 8.93 g/t Au and 57.4 g/t Ag and 3.2 m
grading 2.41 g/t Au and 32.9 g/t Ag. (See Calibre news release
dated April 1, 2015).The diamond
drilling program for 2015 will test selected vein systems at
shallow depths as well as target the depth extent of higher grade
intervals identified from the 2014 program.
Monster Lake – Canada
(Option Agreement with TomaGold Corporation)
The drilling
program continued in the first quarter, targeting extensions to the
high grade 325-Megane zone as well as testing prioritized areas
along the projected main shear zone hosting the 325-zone. Assay
results are pending.
End Notes (excluding tables)
1
|
This is a non-GAAP
measure. Refer to the reconciliation in the non-GAAP performance
measures section of the MD&A.
|
2
|
Gold mines, as used
with total cash costs and all-in sustaining costs, consist of
Rosebel, Essakane, Westwood (commercial production), Mouska,
Sadiola and Yatela on an attributable basis.
|
3
|
The total cash costs
computation does not include Westwood pre-commercial production for
the three months ended March 31, 2014 of 1,000 ounces.
|
4
|
The DART refers to
the number of days away, restricted duty or job transfer incidents
that occur per 100 employees.
|
CONFERENCE CALL
A conference call will be held on Wednesday, May 6, 2015 at 8:30 a.m. (Eastern Daylight Time) for a
discussion with management regarding IAMGOLD`s first quarter 2015
operating performance and financial results. A webcast of the
conference call will be available through IAMGOLD`s website
www.iamgold.com.
Conference Call Information: North America Toll-Free:
1-800-319-4610 or 1-604-638-5340.
A replay of this conference call will be accessible for one
month following the call by dialling: North America toll-free: 1-800-319-6413 or
1-604-638-9010, passcode: 1952#.
CAUTIONARY STATEMENT ON
FORWARD-LOOKING
INFORMATION
All information included in this news
release, including any information as to the Company's future
financial or operating performance, and other statements that
express management's expectations or estimates of future
performance, other than statements of historical fact, constitute
forward looking information or forward-looking statements and are
based on expectations, estimates and projections as of the date of
this news release. For example, forward-looking statements
contained in this news release are found under, but are not
limited to being included under, the heading "First Quarter 2015
Highlights", and include, without limitation, statements with
respect to: the Company's guidance for production, total cash
costs, all-in sustaining costs, depreciation expense, effective tax
rate, capital expenditures, operations outlook, cost management
initiatives, development and expansion projects, exploration, the
future price of gold, the estimation of mineral reserves and
mineral resources, the realization of mineral reserve and mineral
resource estimates, the timing and amount of estimated future
production, costs of production, permitting timelines,
currency fluctuations, requirements for additional capital,
government regulation of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage. Forward-looking statements
are provided for the purpose of providing information about
management's current expectations and plans relating to the future.
Forward-looking statements are generally identifiable by, but are
not limited to the, use of the words "may", "will", "should",
"continue", "expect", "anticipate", "estimate", "believe",
"intend", "plan", "suggest", "guidance", "outlook",
"potential", "prospects", "seek", "targets", "strategy" or
"project" or the negative of these words or other variations on
these words or comparable terminology. Forward-looking statements
are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by management, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. The Company cautions the reader
that reliance on such forward-looking statements involve risks,
uncertainties and other factors that may cause the actual financial
results, performance or achievements of IAMGOLD to be materially
different from the Company's estimated future results, performance
or achievements expressed or implied by those forward-looking
statements, and the forward-looking statements are not guarantees
of future performance. These risks, uncertainties and other factors
include, but are not limited to, changes in the global prices for
gold, copper, silver or certain other commodities (such as diesel,
and electricity); changes in U.S. dollar and other currency
exchange rates, interest rates or gold lease rates; risks arising
from holding derivative instruments; the level of liquidity and
capital resources; access to capital markets, and financing; mining
tax regimes; ability to successfully integrate acquired assets;
legislative, political or economic developments in the
jurisdictions in which the Company carries on business; operating
or technical difficulties in connection with mining or development
activities; laws and regulations governing the protection of the
environment; employee relations; availability and increasing costs
associated with mining inputs and labour; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of reserves; adverse changes in the Company's
credit rating; contests over title to properties, particularly
title to undeveloped properties; and the risks involved in the
exploration, development and mining business. With respect to
development projects, IAMGOLD's ability to sustain or increase its
present levels of gold production is dependent in part on the
success of its projects. Risks and unknowns inherent in all
projects include the inaccuracy of estimated reserves and
resources, metallurgical recoveries, capital and operating costs of
such projects, and the future prices for the relevant minerals.
Development projects have no operating history upon which to base
estimates of future cash flows. The capital expenditures and time
required to develop new mines or other projects are considerable,
and changes in costs or construction schedules can affect project
economics. Actual costs and economic returns may differ materially
from IAMGOLD's estimates or IAMGOLD could fail to obtain the
governmental approvals necessary for the operation of a project; in
either case, the project may not proceed, either on its original
timing or at all.
For a more comprehensive discussion of the risks faced by the
Company, and which may cause the actual financial results,
performance or achievements of IAMGOLD to be materially different
from the company's estimated future results, performance or
achievements expressed or implied by forward-looking information or
forward-looking statements, please refer to the Company's latest
Annual Information Form, filed with Canadian securities regulatory
authorities at www.sedar.com, and filed under Form 40-F with the
United States Securities Exchange Commission at
www.sec.gov/edgar.shtml. The risks described in the Annual
Information Form (filed and viewable on www.sedar.com and
www.sec.gov/edgar.shtml, and available upon request from the
Company) are hereby incorporated by reference into this news
release.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise except as required by
applicable law.
Qualified Person Information
The technical information
relating to exploration activities disclosed in this news release
was prepared under the supervision of and reviewed by Craig MacDougall, P.Geo., Senior Vice President,
Exploration, IAMGOLD. Mr. MacDougall is a Qualified Person as
defined by National Instrument 43-101.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier
mining company with four operating gold mines on three continents.
A solid base of strategic assets in North and South America and West Africa is complemented by development and
exploration projects and continued assessment of accretive
acquisition opportunities. IAMGOLD is in a strong financial
position with extensive management and operational
expertise.
Please note:
This entire news release may be accessed via fax, e-mail,
IAMGOLD's website at www.iamgold.com and through CNW Group's
website at www.newswire.ca. All material information on IAMGOLD can
be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué,
veuillez consulter le
http://www.iamgold.com/French/Home/default.aspx.
SOURCE IAMGOLD Corporation