FOURTH QUARTER ALL-IN
SUSTAINING COSTS DOWN $209 PER OUNCE
YR/YR
BEGINS 2015 WITH ~$800 MILLION IN CASH AND BULLION
All monetary amounts are expressed in U.S.
dollars, unless otherwise indicated.
Refer to the annual
Management Discussion and Analysis (MD&A) and Audited
Consolidated
Financial Statements as at December 31, 2014 for more information.
TORONTO, Feb. 18, 2015 /CNW/ - IAMGOLD Corporation
("IAMGOLD" or the "Company") today reports its consolidated
financial and operating results for the fourth quarter and year
ended December 31,
2014.
IAMGOLD's President and CEO, Steve
Letwin, stated, "Strong operating performance reflecting
consistent improvements enabled us to either meet or exceed our
operating targets in 2014. Robust growth at Essakane, improving
grades at Rosebel, and a solid ramp-up at Westwood in its first six months of commercial
operation drove production higher for three consecutive quarters to
end the year with 844,000 ounces. We beat our cost guidance,
with all-in sustaining costs falling consistently throughout the
year to $1,021 an ounce in the final
quarter - $209 per ounce less than
the same quarter last year.
"Our operating teams have been highly effective at optimizing
performance at both our mines and mills, and with our spending
outlook reduced from last year we expect further success in 2015,"
continued Mr. Letwin. "With the sale of Niobec driving our
cash and bullion position to approximately $800 million, we have the financial capacity to
enhance the profitability of our existing assets while at the same
time take advantage of growth opportunities. We're seeing some
excellent results from our advanced exploration projects and will
continue to drive these forward. Rosebel and Essakane both
generated positive free cash flow in 2014 and by the end of 2015 we
expect to see that at a consolidated level."
Fourth Quarter 2014 Highlights
- Attributable gold production of 241,000 ozs. increased for
third consecutive quarter; up 7% from Q3/14 due to improving grades
at Essakane and Rosebel.
- Attributable gold sales of 234,000 ozs.
- All-in sustaining costs1,2 – gold
mines3 of $1,021/oz. declined for fourth consecutive
quarter; down $94/oz. from Q3/14 and
$209/oz. from Q4/13.
- Total cash costs1 – gold mines of
$788/oz. declined for third
consecutive quarter; down $63/oz.
from Q3/14 and $40/oz. from
Q4/13.
- Net cash from operating activities, including discontinued
operations, of $72.0 million; up 64%
from Q4/13.
2014 Full-Year Highlights
- Attributable gold production of 844,000 ozs. within
guidance.
- Attributable commercial production of 834,000 ozs., up 9% from
2013.
- Attributable gold sales of 835,000 ozs.
- Essakane grew production 33%; driven by higher grades and
throughput.
- Westwood ramped up commercial
production, producing 70,000 ozs. in first six months.
- All-in sustaining costs – gold mines of $1,101/oz., $49/oz.
below bottom of guidance and down 10% or $121/oz. from 2013.
- Total cash costs – gold mines of $848/oz., in line with guidance.
- Capital expenditures of $325
million were 10% below guidance and 51% lower than
2013.
- Cash, cash equivalents and gold bullion (at market value) from
continuing operations of $321.0
million at December 31, 2014;
compared to $334.4 million at
September 30, 2014 and $384.6 million at December
31, 2013.
- Initiatives to monetize non-cash working capital contributed
more than $50 million in cash.
- Net cash from operating activities, including discontinued
operations, increased 27% to $312.2
million.
Subsequent to Year End
- On January 22, 2015, we completed
the sale of Niobec and received cash of $500
million after tax, increasing cash, cash equivalents and
gold bullion (at market value) to approximately $800 million.
- Positive results continued from the 2014 drilling program at
the 100% owned Boto Gold project in Senegal, West
Africa. Highlights from further drilling included 9 metres
grading 10.5 g/t Au, 44 metres grading 4.46 g/t Au and 40 metres
grading 3.24 g/t Au. (Refer to news release dated February 3, 2015).
- In February 2015, we issued
flow-through shares for proceeds of CAD$50
million.
|
SUMMARY OF
FINANCIAL AND OPERATING RESULTS
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Three months ended
December 31,
|
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Years ended
December 31,
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Financial Results
($ millions, except where noted)
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2014
|
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2013
|
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2014
|
|
2013
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Continuing
Operations
|
|
|
|
|
|
|
|
|
|
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Revenues
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$
|
272.5
|
|
$
|
195.1
|
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$
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1,007.9
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$
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947.5
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Cost of
sales
|
|
$
|
239.5
|
|
$
|
161.8
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$
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892.9
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|
$
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668.5
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Earnings from
continuing mining operations1
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$
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33.0
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$
|
33.3
|
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$
|
115.0
|
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$
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279.0
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Net losses including
discontinued operations attributable to equity holders of
IAMGOLD
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|
$
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(122.0)
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$
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(840.3)
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$
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(206.8)
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$
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(832.5)
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Net losses including
discontinued operations attributable to equity holders of IAMGOLD
per share ($/share)
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|
$
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(0.32)
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$
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(2.23)
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$
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(0.55)
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$
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(2.21)
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Adjusted net earnings
including discontinued operations attributable to equity holders of
IAMGOLD1
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|
$
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10.2
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$
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19.7
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$
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32.8
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$
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137.3
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Adjusted net earnings
including discontinued operations per share
($/share)1
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|
$
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0.03
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$
|
0.05
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$
|
0.09
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$
|
0.36
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Net cash from
operating activities including discontinued operations
|
|
$
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72.0
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$
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44.0
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$
|
312.2
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$
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246.3
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Net cash from
operating activities before changes in working capital including
discontinued operations1
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$
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93.7
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$
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54.7
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$
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317.3
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$
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305.6
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Net cash from
operating activities before changes in working capital including
discontinued operations ($/share)1
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$
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0.25
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$
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0.15
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$
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0.84
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$
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0.81
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Net earnings from
discontinued operations attributable to equity holders of
IAMGOLD
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$
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26.7
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$
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3.5
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$
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62.7
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$
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30.1
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Net earnings from
discontinued operations attributable to equity holders of IAMGOLD
($/share)
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$
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0.07
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$
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0.01
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$
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0.17
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$
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0.08
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Key Operating
Statistics
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Gold sales -
attributable (000s oz)
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234
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173
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835
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740
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Gold commercial
production - attributable (000s oz)
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241
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175
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834
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762
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Gold production -
attributable2(000s oz)
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241
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|
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195
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844
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835
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Average realized gold
price1($/oz)
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$
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1,201
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$
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1,273
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$
|
1,259
|
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$
|
1,399
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Total cash
costs1,3,4- gold mines5($/oz)
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$
|
788
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$
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828
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$
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848
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$
|
801
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Gold
margin1($/oz)
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$
|
413
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$
|
445
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$
|
411
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$
|
598
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All-in sustaining
costs1,4,6- gold mines ($/oz)
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$
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1,021
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$
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1,230
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$
|
1,101
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$
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1,222
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All-in sustaining
costs including discontinued operations -
total7($/oz)
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$
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938
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$
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1,113
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$
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992
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$
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1,143
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Financial results
from discontinued operations
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Niobium production
(millions of kg Nb)
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1.5
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1.6
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5.6
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5.3
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Niobium sales
(millions of kg Nb)
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1.5
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1.3
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5.8
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4.9
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Operating
margin1($/kg Nb)
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$
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20
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$
|
20
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$
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20
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$
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18
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1
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This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
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2
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Attributable gold
production includes Westwood pre-commercial production for the year
ended December 31, 2014 of 10,000 ounces, and for the three months
and year ended December 31, 2013 of 20,000 ounces and 73,000
ounces, respectively.
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3
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The total cash costs
computation does not include Westwood pre-commercial production for
the year ended December 31, 2014 of 10,000 ounces, and for the
three months and year ended December 31, 2013 of 20,000 and 73,000
ounces, respectively.
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4
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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.
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5
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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.
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6
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In the third quarter
2014, we began including the income from our Diavik royalty as an
offset to operating costs in the calculation of this measure.
Previous periods were revised for comparability.
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7
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Total, as used with
all-in sustaining costs, includes the impact of niobium
contribution which is classified as discontinued operations,
defined as the Niobec operating margin and sustaining capital, on a
per gold ounce sold basis. Refer to the all-in sustaining costs
table in the non-GAAP performance measures section of the
MD&A.
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FOURTH QUARTER AND FULL-YEAR 2014
HIGHLIGHTS
Sale of Niobec
On January 22, 2015, we completed
the sale of our Niobec business and the adjacent rare earth element
deposit ("REE") for a total consideration of $530 million. We received $500 million in cash for the niobium business
upon the closing of the transaction. An additional $30 million is due when the REE deposit commences
commercial production, as well as a 2% gross royalty on REE
production.
Niobec Disclosed as Discontinued Operations
As at
December 31, 2014, the assets and
liabilities of Niobec were classified as held for sale in the
consolidated balance sheet. The net earnings for Niobec are
presented separately as net earnings from discontinued operations,
net of tax, in the consolidated statement of earnings. Comparative
periods have been adjusted accordingly. The net earnings from
discontinued operations for 2014 were $62.7
million, up $32.6 million from
the prior year.
Financial Performance
- Revenues from continuing operations for the fourth quarter 2014
were $272.5 million, up 40% from the
same prior year period, mainly due to higher gold sales volume
partially offset by a lower average realized gold price. Revenues
for 2014 were $1,007.9 million, up 6%
from 2013. The increase was the result of higher gold sales of
122,000 ounces at our owner-operator mines ($163.3 million) partly offset by a lower average
realized gold price ($103.7 million).
The growth in sales volume in 2014 was mainly due to Essakane, as
the expanded mill and a 21% increase in grades drove production
higher by 33%. Also contributing to the increase was the
commencement of commercial production at Westwood, partially offset by lower sales from
Mouska as it ceased production in the third quarter 2014.
- Cost of sales from continuing operations for the fourth quarter
2014 was $239.5 million, up
$77.7 million from the same prior
year period, the result of higher production volumes and
depreciation. Cost of sales for 2014 was $892.9 million, up $224.4
million from the previous year. The increase was mainly the
result of increased production at Essakane ($102.5 million), higher costs of processing more
hard rock and lower capitalized stripping at Rosebel ($56.6 million), commencement of commercial
production at Westwood
($50.9 million) and higher
depreciation expense ($61.2 million),
partially offset by closure of Mouska ($40.6
million).
- The depreciation expense in 2014 was $205.0 million, up 43% from the prior year. This
is primarily the result of the commencement of commercial
production at Westwood in the
third quarter 2014, Essakane's commissioning of the expanded
milling facilities, and higher amortization of capital stripping at
Essakane and Rosebel.
- Income tax expense for the year was $117.9 million, of which $113.7 million was deferred. With substantial
losses from continuing operations prior to income taxes for the
year, it would be reasonable to expect an income tax benefit rather
than an income tax expense. However, we had significant loss carry
forwards valued at $76.0 million that
were recorded as a deferred tax asset, and with the sale of Niobec
we no longer had the benefit of the projected future taxable income
that would have offset taxable losses in Canada. Accordingly, we wrote off the entire
asset in the third quarter in accordance with IFRS. This resulted
in a non-cash deferred tax expense. In addition, the strengthening
U.S. dollar reduced the tax base of mining assets in foreign
jurisdictions that had the effect of lowering future tax deductions
when translated into U.S. dollars, and higher mining duty tax rates
and other tax related adjustments also contributed to the deferred
tax expense totalling $113.7 million.
These are non-cash items and the write off of the asset is not
indicative of the economic value of the underlying tax pools that
may be used to reduce cash income taxes in the future.
- Net losses from continuing operations attributable to equity
holders for the fourth quarter 2014 were $148.7 million, compared to net losses of
$843.8 million for the same prior
year period. This improvement is mainly due to the following
factors explaining the year over year variance. Net losses from
continuing operations attributable to equity holders for 2014 were
$269.5 million, or $0.72 per share, an improvement of $593.1 million, or $1.57 per share, from the prior year. This
improvement mainly related to the non-recurrence of the prior year
impairment charges on goodwill and mining assets ($888.1 million) and marketable securities and
associates ($72.5 million), higher
revenues ($60.4 million), lower
write-down of receivables ($54.6
million), lower share of net losses from investments in
associates and joint ventures ($41.2
million), and lower exploration expense ($26.5 million). This is partially offset by the
increased cost in estimates of asset retirement obligations at
closed sites, mainly related to Doyon ($57.5
million), net derivative losses mostly related to hedging a
portion of anticipated fuel consumption over the next three years
($48.5 million), and higher cost of
sales and income tax expense as noted above.
- Adjusted net earnings including discontinued operations
attributable to equity holders1 for
the fourth quarter 2014 were $10.2
million ($0.03 per
share1), down $9.5 million ($0.02
per share) from the fourth quarter 2013. Adjusted net earnings
including discontinued operations attributable to equity holders
for 2014 were $32.8 million
($0.09 per share), down $104.5 million ($0.27 per share) from the prior year.
- Over the past 12 months, the initiative to convert a portion of
non-cash working capital to cash has contributed over $50 million to our cash position. In 2015, we
will continue to manage working capital, effectively balancing our
liquidity position, while maintaining appropriate inventory levels
to support operations.
- Net cash from operating activities including discontinued
operations was $72.0 million for the
fourth quarter 2014, up $28.0 million
from the fourth quarter 2013. For 2014, net cash from operating
activities including discontinued operations was $312.2 million, up $65.9
million from the prior year. The increase was mainly due to
reducing inventory levels ($51.3
million), lower income taxes paid ($95.4 million) and managing vendor payment terms
($15.3 million), partially offset by
lower earnings from operations.
- Net cash from operating activities before changes in working
capital including discontinued operations for the fourth quarter
2014 was $93.7 million ($0.25 per share1),
up $39.0 million ($0.10 per share1)
from the same period in 2013. For 2014, net cash from operating
activities before changes in working capital including discontinued
operations was $317.3 million
($0.84 per share), up $11.7 million ($0.03 per share) from 2013.
Financial Position
- Cash, cash equivalents and gold bullion (at market value) was
$321.0 million as at December 31, 2014, excluding the discontinued
operations ($12 million), compared
with $384.6 million as at
December 31, 2013. The variance was
mainly due to capital expenditures on property, plant and equipment
and exploration and evaluation assets ($376.7 million) and dividends to non-controlling
interests and interest paid ($26.8
million), partially offset by cash generated from operating
activities ($312.2 million), proceeds
on sale and leaseback arrangements ($31.5
million) and net repayments from related parties
($14.7 million). Cash held by the
discontinued operations was $12.0
million.
Production and Costs
Gold Operations
- Attributable gold production, inclusive of joint venture
operations, grew in each consecutive quarter throughout the year.
In the fourth quarter we produced 241,000 ounces, up 24% from the
same quarter 2013 and 7% from the third quarter 2014, mainly due to
higher grades at Rosebel and Essakane. For the full year,
attributable gold production was 844,000 ounces, up 9,000 ounces
from 2013. The increase year-over-year reflects 33% growth in
production at Essakane (82,000 ounces) due to higher grades and
increased throughput with the mill expansion, and the ramp-up of
production at Westwood (7,000
ounces). Partially offsetting were lower ounces at Mouska as the
operation came to a close (51,000 ounces), lower production at
Rosebel due to lower grades (11,000 ounces) and the winding down of
the joint venture operations. Excluding the pre-commercial
production from Westwood prior to
July 1, 2014 (10,000 ounces in 2014
and 73,000 ounces in 2013), attributable commercial production was
834,000 ounces, up 72,000 ounces from the prior year.
- Attributable gold sales, inclusive of joint venture operations,
for the fourth quarter 2014, were up 61,000 ounces or 35% from the
same prior year period, mainly due to the recognition of
Westwood sales, increased
production at Essakane and Rosebel, partially offset by the closure
of Mouska in 2014 and the winding down of production from the joint
venture operations. For 2014, attributable gold sales, inclusive of
joint ventures, was 835,000 ounces compared to attributable
commercial gold production of 834,000 ounces. The variance of 1,000
ounces was due to a decrease in gold inventory at Rosebel (7,000
ounces), the depletion of remaining gold doré at Mouska (4,000
ounces) and timing of sales at Sadiola (1,000 ounces), partially
offset by the timing of sales at Essakane (6,000 ounces) and
Westwood (5,000 ounces).
- Total cash costs1, 4 - gold
mines3 – for the fourth quarter 2014
were $788 per ounce, down
$63 an ounce from the third quarter
2014. A major contributor to this improvement was the 18% decline
in cash costs per ounce at Rosebel, reflecting the benefits from
initiatives to improve operating efficiency and grades. Total cash
costs for 2014 were $848 per ounce,
up 6% from 2013. The increase was mainly due to the higher
proportions of hard rock processed at Rosebel and Essakane,
partially offset by the benefits from the ongoing cost reduction
initiatives.
- All-in sustaining costs1, 2 - gold
mines3 – declined for the fourth
consecutive quarter, reflecting lower sustaining capital. At
$1,021 per ounce sold in the fourth
quarter, all-in sustaining costs fell $94 per ounce from the third quarter and
$209 per ounce, or 17%, from the
fourth quarter 2013. For the full year 2014, all-in sustaining
costs were down 10% to $1,101 per
ounce sold from 2013, reflecting the significant reduction in
sustaining capital expenditures at Rosebel and Essakane.
Commitment to Zero Harm Continues
- As safety is a critical performance metric at IAMGOLD, we
deeply regretted having to report the death of an employee at
Rosebel in May 2014, in an area of
the operation being prepared for mining later in the year.
- The frequency of all types of serious injuries (measured as
DART rate5), an important health and safety measure, was
0.66 in 2014, a 35% improvement from 1.01 in 2013.
RESERVES AND RESOURCES
(Additional detail behind the gold price assumptions used to
determine reserves and resources can be found in the Reserves and
Resources section of the MD&A)
Effective at December 31, 2014, we
reduced our gold price per ounce assumption for estimating mineral
reserves by $100 as compared to 2013
to $1,300 in line with current
industry trends and prudent business practices. This, along with
other factors in the estimation process, has contributed to a
decrease in total proven and probable mineral reserves.
- Total attributable proven and probable gold reserves decreased
by 15% or 1.5 million ounces (net of depletion) to 8.6 million
ounces of gold at the end of 2014, mainly due to general mine
depletion not compensated by the addition of new reserves at
Rosebel, Essakane and Westwood
(0.8 million ounces), economic and geotechnical parameters at
Rosebel (0.7 million ounces), and the use of a lower gold price per
ounce assumption to estimate reserves at owner-operated sites (0.4
million ounces). This was partially offset by positive economic
parameters at Sadiola (0.3 million ounces) and a transfer of
resources at Westwood (0.1 million
ounces). The weighted average gold price assumption used to
determine mineral reserves as at December
31, 2014 was $1,263 per ounce
compared to $1,357 per ounce as at
December 31, 2013.
- Total attributable measured and indicated gold resources
(inclusive of reserves) decreased by 9% or 2.0 million ounces to
21.4 million ounces of gold at the end of 2014, mainly due to the
influence of economic parameters and depletion at Rosebel (1.6
million ounces) and Essakane (0.5 million ounces), partially offset
by the addition of resources from the Boto project (0.1 million
ounces) and Côté Gold project (0.1 million ounces).
2015 OUTLOOK
|
|
|
|
|
|
IAMGOLD Full Year
Guidance
|
|
|
|
|
2015
|
Rosebel (000s
oz)
|
|
|
|
|
290 -
300
|
Essakane (000s
oz)
|
|
|
|
|
360 -
370
|
Westwood (000s
oz)
|
|
|
|
|
110 -
130
|
Total owner-operator
production (000s oz)
|
|
|
|
|
760 -
800
|
Joint ventures (000s
oz)
|
|
|
|
|
60
|
Total attributable
production (000s oz)
|
|
|
|
|
820 -
860
|
|
|
|
|
|
|
Total cash
costs1 – owner-operator ($/oz)
|
|
|
|
|
$825 -
$865
|
Total cash costs –
gold mines2 ($/oz)
|
|
|
|
|
$850 -
$900
|
|
|
|
|
|
|
All-in sustaining
costs1 – owner-operator ($/oz)
|
|
|
|
|
$1,050 –
$1,150
|
All-in sustaining
costs – gold mines ($/oz)
|
|
|
|
|
$1,075 –
$1,175
|
|
|
|
|
|
|
1
|
This is a non-GAAP
measure. Refer to 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, Sadiola and Yatela on an attributable
basis.
|
Our 2015 guidance is based on the following assumptions:
- Average realized gold price of $1,250 per ounce.
- Canadian $/U.S.$ exchange rate of 1.15.
- U.S.$/€ exchange rate of 1.20.
- Average crude oil price of $73
per barrel, reflecting a weighted average of multiple fuel
contracts ranging between $75 and $95
per barrel for 77% of our anticipated fuel purchases and the
consensus forecasted price for WTI, for which we could purchase the
unhedged portion of our anticipated fuel purchases on the open
market.
GOLD PRODUCTION AND COST GUIDANCE
In 2015, we expect to produce between 820,000 and 860,000 ounces
of gold. We expect a ramp-up in production at Westwood in its first full year of commercial
production. There will be some variation from quarter to quarter,
with the first and final quarters the lightest due to the
sequencing of underground development activity. Building on the 33%
increase in production that we had at Essakane in 2014, this
operation is expected to have four strong quarters of production as
the operation continues to benefit from higher grades and the
previous mill expansion to accommodate a higher proportion of hard
rock processing. At Rosebel, we continue to focus on
improving grades and increasing productivity. The joint ventures
are expected to produce 60,000 ounces.
In 2014, we made significant progress in reducing our all-in
sustaining costs throughout the year, particularly given the
increased costs associated with the higher consumption of power and
reagents required to process an increasing proportion of hard rock
at Rosebel and Essakane. Building on this momentum, we have reduced
our all-in sustaining cost guidance by $75 an ounce from what we guided in 2014 to a
range of $1,075 to $1,175 an ounce.
This reflects the positive impact from the reduction in the oil
price and a stronger US dollar. It should be noted that depending
upon the terms of contractual supply agreements for oil with select
host countries, we may experience a lag in recognizing the effect
of a change in oil prices as compared to spot oil prices. This is
due to the timing of pricing reviews over which we have no
control.
INCOME TAXES
We expect to pay cash taxes in the range of $17.0 million to $22.0 million for the twelve
months ending December 31,
2015. In addition, adjustments to deferred tax assets and or
liabilities may also be recorded during this period.
DEPRECIATION
Depreciation expense, excluding Niobec, is expected to increase
by approximately 40% in 2015 from 2014 as a result of a full year
of commercial production at Westwood, higher amortization of capitalized
stripping costs at Rosebel, lower reserves at Essakane and Rosebel,
and expected timing of capital additions. Depreciation
expense in 2015 is expected to be within the range of $285 to $295 million.
CAPITAL EXPENDITURES OUTLOOK1
|
|
|
|
|
|
|
|
|
|
|
|
|
($
millions)
|
|
|
|
Sustaining
|
|
Development/
Expansion
(Non-sustaining)
|
|
|
|
Total
|
Gold
segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rosebel
|
|
|
|
$
|
70
|
|
$
|
10
|
|
$
|
|
80
|
|
Essakane
|
|
|
|
|
55
|
|
|
5
|
|
|
|
60
|
|
Westwood
|
|
|
|
|
30
|
|
|
50
|
|
|
|
80
|
|
|
|
|
|
155
|
|
|
65
|
|
|
|
220
|
Côté Gold
|
|
|
|
|
-
|
|
|
5
|
|
|
|
5
|
Total
owner-operator
|
|
|
|
|
155
|
|
|
70
|
|
|
|
225
|
Joint venture -
Sadiola
|
|
|
|
|
5
|
|
|
-
|
|
|
|
5
|
TOTAL
(±10%)
|
|
|
|
$
|
160
|
|
$
|
70
|
|
$
|
|
230
|
1
|
Capitalized borrowing
costs are not included.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE GOLD
PRODUCTION AND ALL-IN SUSTAINING AND TOTAL CASH
COSTS
|
|
|
|
|
|
|
|
|
|
Gold Production
(000s oz)
|
|
Total Cash
Costs1,2 ($ per gold ounce
produced)
|
|
All-in Sustaining
Costs1
($ per gold ounce sold)
|
Three months ended
December 31
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-operator
|
|
|
|
|
|
|
|
|
|
|
|
|
Rosebel
(95%)
|
|
94
|
|
70
|
|
$
678
|
|
$
674
|
|
$
916
|
|
$
1,104
|
Essakane
(90%)
|
|
89
|
|
59
|
|
828
|
|
822
|
|
955
|
|
1,242
|
Doyon
division(100%)
|
|
35
|
|
15
|
|
845
|
|
813
|
|
1,119
|
|
822
|
|
|
218
|
|
144
|
|
766
|
|
749
|
|
1,001
|
|
1,198
|
Joint
ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
Sadiola
(41%)
|
|
20
|
|
24
|
|
931
|
|
1,181
|
|
1,100
|
|
1,351
|
Yatela
(40%)
|
|
3
|
|
7
|
|
1,532
|
|
1,223
|
|
1,954
|
|
1,429
|
|
|
23
|
|
31
|
|
995
|
|
1,191
|
|
1,199
|
|
1,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial
operations
|
|
241
|
|
175
|
|
788
|
|
828
|
|
1,021
|
|
1,230
|
Doyon
division(100%)
|
|
-
|
|
20
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
241
|
|
195
|
|
788
|
|
828
|
|
1,021
|
|
1,230
|
Cash costs, excluding
royalties
|
|
|
|
|
|
738
|
|
770
|
|
|
|
|
Royalties
|
|
|
|
|
|
50
|
|
58
|
|
|
|
|
Total cash
costs3
|
|
|
|
|
|
$
788
|
|
$
828
|
|
|
|
|
All-in sustaining
costs3,4- gold mines5
|
|
|
|
|
|
|
|
|
|
1,021
|
|
1,230
|
Including
discontiued operation
|
|
|
|
|
|
|
|
|
|
|
|
|
Niobium
contribution6
|
|
|
|
|
|
|
|
|
|
(83)
|
|
(117)
|
All-in sustaining
costs - total7
|
|
|
|
|
|
|
|
|
|
$
938
|
|
$
1,113
|
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 quarter ended December 31, 2013 of 20,000
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.
|
4
|
|
In the third quarer
2014 we began including the income from our Diavik royalty as an
offset to operating costs in the calculation of this measure.
Previous periods have been revised for comparability
|
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.
|
6
|
|
Niobium contribution
consists of Niobec mine's operating margin and sustaining capital
on a per gold ounce sold basis.
|
7
|
|
Total, as used with
all-in sustaining costs, includes the impact of niobium
contribution which is classified as discontinued operations,
defined as the Niobec operating margin and sustaining capital, on a
per gold ounce sold basis. Refer to the all-in sustaining costs
table in the non-GAAP performance measures section of the
MD&A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE GOLD
PRODUCTION AND ALL-IN SUSTAINING AND TOTAL CASH
COSTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold Production
(000s oz)
|
|
Total Cash
Costs1,2 ($ per gold ounce
produced)
|
|
All-in Sustaining
Costs1
($ per gold ounce sold)
|
Years ended
December 31
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-operator
|
|
|
|
|
|
|
|
|
|
|
|
|
Rosebel
(95%)
|
|
325
|
|
336
|
|
$
804
|
|
$
718
|
|
$
1,045
|
|
$
1,063
|
Essakane
(90%)
|
|
332
|
|
250
|
|
852
|
|
753
|
|
1,060
|
|
1,177
|
Doyon
division(100%)
|
|
82
|
|
63
|
|
768
|
|
832
|
|
955
|
|
889
|
|
|
739
|
|
649
|
|
822
|
|
743
|
|
1,090
|
|
1,162
|
Joint
ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
Sadiola
(41%)
|
|
84
|
|
86
|
|
985
|
|
1,101
|
|
1,083
|
|
1,476
|
Yatela
(40%)
|
|
11
|
|
27
|
|
1,590
|
|
1,243
|
|
1,929
|
|
1,789
|
|
|
95
|
|
113
|
|
1,055
|
|
1,136
|
|
1,182
|
|
1,551
|
Total commercial
operations
|
|
834
|
|
762
|
|
848
|
|
801
|
|
1,101
|
|
1,222
|
Doyon
division(100%)
|
|
10
|
|
73
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
844
|
|
835
|
|
848
|
|
801
|
|
1,101
|
|
1,222
|
Cash
costs1, excluding royalties
|
|
|
|
|
|
790
|
|
729
|
|
|
|
|
Royalties
|
|
|
|
|
|
58
|
|
72
|
|
|
|
|
Total cash
costs3
|
|
|
|
|
|
$
848
|
|
$
801
|
|
|
|
|
All-in sustaining
costs3,4- gold mines5
|
|
|
|
|
|
|
|
|
|
1,101
|
|
1,222
|
Including
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Niobium
contribution6
|
|
|
|
|
|
|
|
|
|
(109)
|
|
(79)
|
All-in sustaining
costs - total7
|
|
|
|
|
|
|
|
|
|
$
992
|
|
$
1,143
|
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 years ended December 31, 2014 and 2013 of 10.000 ounces
and 73,000 ounces respectively.
|
3
|
|
By-product credits
are included in the calculation of this measure; refer to the
non-GAAP performance measures section of the MD&A.
|
4
|
|
In the third quarter
2014 we began including the income from our Diavik royalty as an
offset to operating costs in the calculation of this measure.
Previous periods have been revised for comparability
|
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.
|
6
|
|
Niobium contribution
consists of Niobec mine's operating margin and sustaining capital
on a per gold ounce sold basis.
|
7
|
|
Total, as used with
all-in sustaining costs, includes the impact of niobium
contribution which is classified as discontinued operations,
defined as the Niobec operating margin and sustaining capital, on a
per gold ounce sold basis. Refer to the all-in sustaining costs
table in the non-GAAP performance measures section of the
MD&A.
|
OPERATIONS ANALYSIS BY MINE SITE
(Refer to the MD&A for further details and analyses
about our operations.)
Westwood Mine – Canada
(IAMGOLD Interest – 100%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Years ended
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
2014
|
|
|
2013
|
Westwood operating
statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined (000s
t)
|
|
|
|
132
|
|
|
69
|
|
|
327
|
|
|
233
|
Ore milled (000s
t)
|
|
|
|
140
|
|
|
78
|
|
|
328
|
|
|
326
|
Head grade
(g/t)
|
|
|
|
8.12
|
|
|
8.47
|
|
|
7.98
|
|
|
7.45
|
Recovery
(%)
|
|
|
|
96
|
|
|
95
|
|
|
95
|
|
|
94
|
Pre-commercial gold
production - 100% (000s oz)
|
|
|
|
-
|
|
|
20
|
|
|
10
|
|
|
73
|
Pre-commercial gold
sales - 100% (000s oz)
|
|
|
|
-
|
|
|
20
|
|
|
11
|
|
|
66
|
Commercial gold
production - 100% (000s oz)
|
|
|
|
35
|
|
|
-
|
|
|
70
|
|
|
-
|
Commercial gold sales
- 100% (000s oz)
|
|
|
|
31
|
|
|
-
|
|
|
65
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westwood
performance measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized gold
price1($/oz)
|
|
|
$
|
1,206
|
|
|
-
|
|
$
|
1,237
|
|
|
-
|
All-in sustaining
costs1($/oz)
|
|
|
$
|
1,119
|
|
|
-
|
|
$
|
1,031
|
|
|
-
|
Cash
costs1excluding royalties ($/oz)
|
|
|
$
|
845
|
|
|
-
|
|
$
|
822
|
|
|
-
|
Royalties
($/oz)
|
|
|
$
|
-
|
|
|
-
|
|
$
|
-
|
|
|
-
|
Total cash
costs1($/oz)
|
|
|
$
|
845
|
|
|
-
|
|
$
|
822
|
|
|
-
|
1
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
|
The Westwood mine commenced
commercial production on July 1,
2014, producing 70,000 ounces of gold in the first six
months, split evenly between the third and fourth quarters.
During the pre-commercial stage, the operation produced
10,000 ounces of gold in 2014 and 73,000 ounces in the prior year.
Westwood is our highest grade
mine, with grades in the fourth quarter of 8.12 grams of gold per
tonne.
Total cash costs of $845 an ounce
in the fourth quarter and $822 an
ounce for the year were in line with our estimated range of
$750 to $850 per ounce for the first
six months of commercial production. All-in sustaining costs per
ounce reflect the impact of underground development work, and over
time will trend lower as the operation ramps up to design capacity
over the next four to five years.
For 2015, which will be Westwood's first full year of commercial
production, the operation is expected to produce between 110,000 to
130,000 ounces of gold. While the mill will operate
continuously throughout the year, we expect some variation in
production levels from quarter to quarter due to the sequencing of
underground development which will offer flexibility to the mine
over the ramp-up period. Our plan shows the first and fourth
quarters to be the lightest, with the second and third quarters
accounting for approximately 60% of the year's production.
ROSEBEL MINE – SURINAME (IAMGOLD interest –
95%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
|
Years ended
December 31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Mine operating
statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined (000s
t)
|
|
|
|
4,112
|
|
|
4,163
|
|
|
13,851
|
|
|
13,508
|
Waste mined (000s
t)
|
|
|
|
11,896
|
|
|
12,560
|
|
|
49,215
|
|
|
47,818
|
Total material
mined(000s t)
|
|
|
|
16,008
|
|
|
16,723
|
|
|
63,066
|
|
|
61,326
|
Strip
ratio1
|
|
|
|
2.9
|
|
|
3.0
|
|
|
3.6
|
|
|
3.5
|
Ore milled (000s
t)
|
|
|
|
3,341
|
|
|
3,125
|
|
|
13,050
|
|
|
12,349
|
Head grade
(g/t)
|
|
|
|
0.96
|
|
|
0.78
|
|
|
0.86
|
|
|
0.94
|
Recovery
(%)
|
|
|
|
96
|
|
|
95
|
|
|
95
|
|
|
95
|
Gold production -
100% (000s oz)
|
|
|
|
99
|
|
|
74
|
|
|
342
|
|
|
354
|
Attributable gold
production - 95% (000s oz)
|
|
|
|
94
|
|
|
70
|
|
|
325
|
|
|
336
|
Gold sales - 100%
(000s oz)
|
|
|
|
96
|
|
|
80
|
|
|
349
|
|
|
342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized gold
price2($/oz)
|
|
|
$
|
1,200
|
|
$
|
1,271
|
|
$
|
1,256
|
|
$
|
1,400
|
All-in sustaining
costs2($/oz)
|
|
|
$
|
916
|
|
$
|
1,104
|
|
$
|
1,045
|
|
$
|
1,063
|
Cash
costs2excluding royalties ($/oz)
|
|
|
$
|
613
|
|
$
|
612
|
|
$
|
732
|
|
$
|
639
|
Royalties
($/oz)
|
|
|
$
|
65
|
|
$
|
62
|
|
$
|
72
|
|
$
|
79
|
Total cash
costs2($/oz)
|
|
|
$
|
678
|
|
$
|
674
|
|
$
|
804
|
|
$
|
718
|
1
|
Strip ratio is
calculated as waste mined divided by ore mined.
|
2
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
|
In 2014, Rosebel produced 325,000 attributable ounces of gold.
The lower production compared to the previous year was the result
of lower grades in the first half of 2014, partially offset by
higher throughput. To mitigate the impact of an increasing
proportion of hard rock on throughput, we have been stabilizing the
mill feed blend prior to it reaching the primary crusher. The
reduced variation in the rock hardness contributed to a 6% increase
in mill throughput in 2014 from the previous year.
A more consistent ore feed blend has also helped to reduce costs
as it provides for more stability in the milling circuit, which in
turn reduces the consumption of power and reagents. We're also
having success with initiatives to improve grades, such as moving
to reverse circulation drilling for in-pit grade control. A 14%
increase in the grade in the third quarter was followed by another
14% increase in the fourth quarter. In the third and fourth
quarters of the year, attributable production increased by 22% and
13%, respectively, reflecting higher throughput and grades in the
third quarter and higher grades in the fourth.
Comparing the fourth quarter 2014 to the same quarter in 2013,
attributable gold production of 94,000 ounces was up 34%, the
result of better grades and higher throughput. The higher
production, together with cost efficiencies resulted in cash costs
per ounce in the fourth quarter that were in line with the same
quarter in 2013.
Cash costs improved significantly in the second half of the
year, reflecting both higher production and the initial benefits
from the many operational enhancements implemented throughout 2014.
Also helping to lower cash costs in the fourth quarter was the
effect of lower oil prices on power costs. Total cash costs of
$678 per ounce in the fourth quarter
were down from $828 an ounce in the
third quarter and from $942 an ounce
in the second quarter. All-in sustaining costs of $916 an ounce in the fourth quarter were 17%
lower than the same quarter in 2013 mainly due to lower sustaining
capital and higher sales volume.
In 2015, we estimate attributable production in the range of
290,000 to 300,000 ounces. We expect the majority of the cost
savings realized from the initiatives in 2014 to affect our cost
structure this year and beyond. Our priorities at this operation
continue to be on improving grades and increasing operating
efficiency. We will continue to work at reducing unit costs through
initiatives such as electronic monitoring of blasting to reduce
dilution, improved fuel and tire management through better road
maintenance practices, and possibly the use of alternative
processing methods, such as heap leaching.
The drilling program at Rosebel continues to target
higher-grade, softer rock on both the Rosebel mine lease and
surrounding mineral concessions. With respect to our joint venture
agreement with the Government of Suriname, we completed more than
5,000 metres of diamond and reverse circulation drilling to
evaluate priority targets identified in the first half of 2014.
Assay results are incomplete and will be assessed as received to
help guide future programs. At the same time, we continue to
evaluate possible transactions for other prospective properties
with the potential for higher-grade, softer rock.
ESSAKANE MINE - BURKINA
FASO (IAMGOLD interest – 90%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Years ended
December 31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Mine operating
statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined (000s
t)
|
|
|
|
2,955
|
|
|
3,360
|
|
|
12,580
|
|
|
11,869
|
Waste mined (000s
t)
|
|
|
|
9,129
|
|
|
7,724
|
|
|
34,118
|
|
|
33,263
|
Total material mined
(000s t)
|
|
|
|
12,084
|
|
|
11,084
|
|
|
46,698
|
|
|
45,132
|
Strip
ratio1
|
|
|
|
3.1
|
|
|
2.3
|
|
|
2.7
|
|
|
2.8
|
Ore milled (000s
t)
|
|
|
|
2,596
|
|
|
2,606
|
|
|
11,897
|
|
|
10,613
|
Head grade
(g/t)
|
|
|
|
1.28
|
|
|
0.88
|
|
|
1.08
|
|
|
0.89
|
Recovery
(%)
|
|
|
|
92
|
|
|
89
|
|
|
91
|
|
|
92
|
Gold production -
100% (000s oz)
|
|
|
|
99
|
|
|
65
|
|
|
369
|
|
|
277
|
Attributable gold
production - 90% (000s oz)
|
|
|
|
89
|
|
|
59
|
|
|
332
|
|
|
250
|
Gold sales - 100%
(000s oz)
|
|
|
|
98
|
|
|
60
|
|
|
363
|
|
|
270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized gold
price2($/oz)
|
|
|
$
|
1,200
|
|
$
|
1,274
|
|
$
|
1,261
|
|
$
|
1,408
|
All-in sustaining
costs2($/oz)
|
|
|
$
|
955
|
|
$
|
1,242
|
|
$
|
1,060
|
|
$
|
1,177
|
Cash
costs2 excluding royalties ($/oz)
|
|
|
$
|
781
|
|
$
|
772
|
|
$
|
799
|
|
$
|
687
|
Royalties
($/oz)
|
|
|
$
|
47
|
|
$
|
50
|
|
$
|
53
|
|
$
|
66
|
Total cash
costs2($/oz)
|
|
|
$
|
828
|
|
$
|
822
|
|
$
|
852
|
|
$
|
753
|
1
|
Strip ratio is
calculated as waste mined divided by ore mined.
|
2
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
|
In 2014, Essakane produced 332,000 attributable ounces of gold,
an increase of 33% from 2013. This reflected a 21% increase in
grades and a 12% increase in throughput. The commissioning of the
expanded mill early in 2014 enabled the processing of a higher
proportion of hard and transition rock. Whereas soft rock comprised
42% of the mill feed in 2013, it accounted for 25% in 2014. The
proportion of soft rock in the mill feed declined significantly
throughout the year, accounting for 11% in the second half of the
year compared to 36% in the first half.
While throughput has benefited from the mill expansion, the
decline in the proportion of soft rock is significant, thus the
progressive increase in grades throughout the year has been a major
contributor to production growth as well. In the fourth quarter
2014, production was 89,000 attributable ounces, up 51% from the
same quarter 2013 reflecting a 45% increase in the grade to 1.28
grams of gold per tonne. Compared to the third quarter 2014, a 9%
increase in grades drove production higher by 7%.
Total cash costs in the fourth quarter 2014 were $828 an ounce, up slightly from the same quarter
2013 mainly due to lower capitalized stripping, but down 4% from
the third quarter 2014. All-in sustaining costs in the fourth
quarter of $955 an ounce were
$287 per ounce lower than the same
quarter in 2013, mainly the result of a significant increase in
production after the commissioning of the expanded mill early in
2014.
In 2015, Essakane is expected to have four strong quarters of
production, with annual production growing by approximately 10% as
the expanded mill achieves design capacity. To continue improving
grades and to maintain optimal throughput levels, Essakane will use
one of its two processing lines to process 100% hard rock and the
other for processing blended ore.
This year, we plan to begin mining the Falagountou deposit
having completed an infill drilling program in 2014 that confirmed
the continuity of the mineralization and an extension down-dip
which remains open.
SADIOLA MINE - MALI
(IAMGOLD interest – 41%)
|
|
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
|
2014
|
2013
|
2014
|
2013
|
Mine operating
statistics
|
|
|
|
|
Total material mined
(000s t)
|
|
1,082
|
|
3,096
|
|
5,044
|
|
|
13,344
|
Ore milled (000s
t)
|
|
564
|
|
538
|
|
2,061
|
|
|
1,991
|
Head grade
(g/t)
|
|
1.25
|
|
1.39
|
|
1.32
|
|
|
1.38
|
Recovery
(%)
|
|
93
|
|
90
|
|
93
|
|
|
91
|
Attributable gold
production - (000s oz)
|
|
20
|
|
24
|
|
84
|
|
|
86
|
Attributable gold
sales - (000s oz)
|
|
21
|
|
24
|
|
85
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
Performance
measures
|
|
|
|
|
|
|
|
|
|
Average realized gold
price1($/oz)
|
$
|
1,197
|
$
|
1,269
|
$
|
1,263
|
|
$
|
1,404
|
All-in sustaining
costs1($/oz)
|
$
|
1,100
|
$
|
1,351
|
$
|
1,083
|
|
$
|
1,476
|
Total cash
costs1($/oz)
|
$
|
931
|
$
|
1,181
|
$
|
985
|
|
$
|
1,101
|
1
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
|
Attributable gold production at Sadiola was 84,000 ounces in
2014 and 20,000 ounces in the fourth quarter. The slightly lower
production levels from the previous year reflect lower grades,
partially offset by higher throughput and recoveries. As of this
time, a decision respecting a future expansion at Sadiola to
accommodate hard rock processing has not been made. As we've stated
before, any future expansion requires a willing partner and a
long-term supply of lower-cost, reliable and uninterrupted power.
In 2015, we will deplete the existing supply of soft rock and
production will rapidly decline.
EXPLORATION
In 2014 we spent $68.9 million,
which was 26% lower than the previous year. The decrease reflects a
smaller planned exploration program and project prioritization. In
2015, our exploration budget 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.
The following summarizes the status of these projects. Refer to
the MD&A for more detail.
Wholly-Owned Projects
Boto - Senegal
On February 3, 2015 we reported final assay results
from our 2014 drilling program at our Boto Gold project in
Senegal. The results from the 16
infill diamond drill holes included 9 metres grading 10.5 g/t Au
(including 5 metres grading 17.55 g/t Au), 44 metres grading 4.46
g/t Au (including 6 metres grading 14.46 g/t Au) and 40 metres
grading 3.24 g/t Au (including 11 metres grading 8.15 g/t Au).
These results, along with those previously reported, continue to
demonstrate wide intervals of high-grade mineralization from the
core of the Malikoundi deposit, which is the largest deposit
discovered to date on the property. The Boto Gold Project hosts an
indicated resource of 22.0 million tonnes averaging 1.62 grams of
gold per tonne for 1.14 million ounces and an inferred resource of
1.9 million tonnes averaging 1.35 grams of gold per tonne for
81,000 ounces (refer to news release dated July 29, 2013). In 2014, we completed a scoping
study to examine a range of development options. In 2015, we plan
to complete our ongoing 50 metre by 50 metre infill delineation
campaign started in 2014 for the purpose of upgrading resources at
the Malikoundi deposit. Results will be incorporated in a further
resource estimate to support ongoing technical studies.
Pitangui - Brazil
At our Pitangui project in
Brazil, 24,500 metres of diamond
drilling was completed in 2014 to confirm the continuity of gold
mineralized zones within the core area of the São Sebastião
deposit. The program continues to focus on upgrading the resources
within the core area of the deposit and to test for extensions.
Although final assay results are pending, highlights of results
released during the year include 7.5 metres grading 9.73 g/t Au and
4.9 metres grading 10.16 g/t Au (refer to news release dated
June 23, 2014). These results will be
incorporated in an updated resource model once all results are
received and validated. The mineral resource estimate for the São
Sebastião gold deposit comprises a 4.07 million tonne inferred
resource grading 4.88 grams of gold per tonne for 638,000 contained
ounces (refer to news release dated April 9,
2014). An airborne survey completed during the fourth
quarter identified a number of conductive targets with
characteristics similar to the São Sebastião deposit. These targets
will be prioritized for future drilling programs.
JOINT VENTURE PROJECTS
Following are the highlights
for our joint venture exploration projects. The agreements are
typically structured in a way that gives us the option of
increasing our ownership interest over time, with the decision to
do so a function of the exploration results as time progresses.
Monster Lake – Canada
(Option Agreement with TomaGold Corporation)
At our Monster
Lake project, we completed a 12,761 metre diamond drilling program
targeting select areas along a 4-kilometre long mineralized
corridor in the Abitibi Greenstone belt. On February 5, 2015, we reported assay results from
the final 17 holes of the 26 drill hole program. Highlights include
9.18 metres, grading 46.33 g/t Au (including 2.2 metres grading
182.8 g/t Au), 3.42 metres grading 18.68 g/t Au and 7.1 metres
grading 6.74 g/t Au. The results completed as part of our first
exploration program at Monster Lake have been encouraging in that
they not only extend the high grade 325-Megane zone at depth below
previous drilling where it remains open, but they have identified
several new gold-bearing structures for further exploration.
Eastern Borosi – Nicaragua
(Option Agreement with Calibre Mining Corporation)
During
2014, the phase I diamond drilling program at the Eastern Borosi
project in northeast Nicaragua was
completed. In total, 40 drill holes tested 5 gold-silver vein
systems over a strike length of three kilometres within the 176
square kilometer land package. On January
21, 2015, Calibre Mining announced the final assay results
from 17 of the 40 holes, of which the highlights included 5.1
metres grading 13.44 g/t Au and 14.49 g/t Ag and 2.8 metres grading
26.48 g/t Au and 24.2 g/t Ag. The drilling program was successful
in intercepting high grade gold and/or silver mineralization on all
five vein systems. The Phase II drilling program planned for 2015
will focus on delineating the 2014 discoveries by testing for
extensions to the mineralized shoots along with step out drilling
on the currently defined vein systems.
Siribaya – Mali – (50:50
Joint Venture with Merrex Gold Inc.)
In 2014, nearly 11,500
metres of diamond and reverse circulation drilling was completed at
the Diakha prospect, a new discovery located on the southern
extension of our Boto Gold Malikoundi mineralized trend in
Senegal. Our joint venture
partner, Merrex Gold, provided exploration updates throughout 2014,
reporting highlights from assay results including 34 metres grading
4.85 g/t Au, 19 metres grading 7.31 g/t Au, 12 metres grading 10.99
g/t Au. The drill program in 2014 has confirmed the presence of
multiple zones of gold mineralization with significant widths and
grades. The primary focus for 2015 will be to complete an infill
delineation drilling program (reverse circulation and diamond
drilling) to enable the declaration of an initial 43-101 compliant
resource estimate by the end of 2015 as results warrant.
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
|
|
In the third quarter
2014 we began including the income from our Diavik royalty as an
offset to operating costs in the calculation of this measure.
Previous periods have been revised for comparability.
|
3
|
|
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.
|
4
|
|
The total cash costs
computation does not include Westwood pre-commercial production for
the year ended December 31, 2014 of 10,000 ounces, and for the
three months and year ended December 31, 2013 of 20,000 ounces and
73,000 ounces respectively.
|
5
|
|
The DART refers to
the number of days away, restricted duty or job transfer incidents
that occur per 100 employees.
|
NON-GAAP PERFORMANCE MEASURES – ADJUSTED NET
EARNINGS
Adjusted net earnings attributable to equity holders of IAMGOLD
and adjusted net earnings attributable to equity holders of IAMGOLD
per share are non-GAAP performance measures. Management believes
that these measures better reflect the Company's performance for
the current period and are better indications of its expected
performance in future periods. Adjusted net earnings
attributable to equity holders of IAMGOLD and adjusted net earnings
attributable to equity holders of IAMGOLD per share are intended to
provide additional information, but are unlikely to be comparable
to similar measures presented by other issuers. These measures do
not have any standardized meaning prescribed by IFRS and should not
be considered in isolation or a substitute for measures of
performance prepared in accordance with IFRS. Adjusted net earnings
attributable to equity holders of IAMGOLD represents net earnings
attributable to equity holders excluding certain impacts, net of
taxes, such as write-down of assets, gains or losses on sales of
assets, unrealized non-hedge derivative gains or losses, interest
expense that is unrelated to financing working capital, foreign
exchange gains or losses, restructuring charges, and changes in
estimates of asset retirement obligations at closed sites. These
measures are not necessarily indicative of net earnings or cash
flows as determined under IFRS. The following table provides a
reconciliation of earnings before income taxes of IAMGOLD as per
the consolidated statements of earnings, to adjusted net earnings
attributable to equity holders of IAMGOLD.
|
|
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
($ millions,
except where noted)
|
2014
|
2013
|
2014
|
2013
|
Losses from
continuing operations before income taxes and non-controlling
interests
|
$
|
(105.8)
|
$
|
(995.4)
|
$
|
(143.7)
|
$
|
(925.6)
|
Adjusted
items:
|
|
|
|
|
|
|
|
|
|
Impairment
|
|
-
|
|
888.1
|
|
-
|
|
888.1
|
|
Changes in estimates
of asset retirement obligations at closed sites
|
|
39.7
|
|
4.7
|
|
48.7
|
|
(7.8)
|
|
Unrealized derivative
losses
|
|
49.1
|
|
7.8
|
|
56.2
|
|
22.3
|
|
Write-down of
assets
|
|
0.2
|
|
113.8
|
|
7.3
|
|
126.7
|
|
Restructuring and
other charges
|
|
4.9
|
|
0.3
|
|
8.1
|
|
1.8
|
|
Interest expense on
senior unsecured note
|
|
-
|
|
1.8
|
|
0.3
|
|
17.6
|
|
Foreign exchange
losses (gains)
|
|
(3.4)
|
|
0.7
|
|
(1.0)
|
|
4.5
|
|
Losses (gains) on
sale of assets
|
|
0.7
|
|
(12.2)
|
|
3.7
|
|
(12.8)
|
|
Yatela closure
provision (reversal)
|
|
(1.6)
|
|
-
|
|
7.7
|
|
-
|
|
Impairment (reversal)
of investments
|
|
-
|
|
4.9
|
|
(3.4)
|
|
69.1
|
|
|
89.6
|
|
1,009.9
|
|
127.6
|
|
1,109.5
|
Adjusted earnings
(losses) from continuing operations before income taxes and
non-controlling interests
|
|
(16.2)
|
|
14.5
|
|
(16.1)
|
|
183.9
|
|
Income
taxes
|
|
(42.0)
|
|
111.8
|
|
(117.9)
|
|
34.9
|
|
Tax impact of
adjusted items and effective tax rate adjustment
|
|
50.1
|
|
(117.5)
|
|
126.0
|
|
(104.0)
|
|
Non-controlling
interest
|
|
(0.9)
|
|
(0.6)
|
|
(7.9)
|
|
(12.3)
|
Adjusted net earnings
(losses) from continuing operations attributable to equity holders
of IAMGOLD
|
$
|
(9.0)
|
$
|
8.2
|
$
|
(15.9)
|
$
|
102.5
|
Basic weighted
average number of common shares outstanding (millions)
|
|
376.9
|
|
376.6
|
|
376.8
|
|
376.6
|
Adjusted net earnings
(losses) from continuing operations attributable to equity holders
of IAMGOLD per share ($/share)
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.04)
|
$
|
0.27
|
Including
discontinued operations
|
|
|
|
|
|
|
|
|
Adjusted net earnings
(losses) from continuing operations
|
|
(9.0)
|
|
8.2
|
|
(15.9)
|
|
102.5
|
Net earnings from
discontinued operations attributable to equity holders of
IAMGOLD
|
|
26.7
|
|
3.5
|
|
62.7
|
|
30.1
|
Effective tax rate
adjustment on discontinued operations
|
|
(7.5)
|
|
8.0
|
|
(14.0)
|
|
4.7
|
Adjusted net earnings
including discontinued operations
|
$
|
10.2
|
$
|
19.7
|
$
|
32.8
|
$
|
137.3
|
Basic weighted
average number of common shares outstanding (millions)
|
|
376.9
|
|
376.6
|
|
376.8
|
|
376.6
|
Adjusted net earnings
including discontinued operations per share
|
$
|
0.03
|
$
|
0.05
|
$
|
0.09
|
$
|
0.36
|
Effective adjusted
tax rate (%)
|
|
50%
|
|
38%
|
|
50%
|
|
38%
|
NON-GAAP PERFORMANCE MEASURES
NET
CASH FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING
CAPITAL
The Company makes reference to a non-GAAP performance measure
for net cash from operating activities before changes in working
capital and net cash from operating activities before changes in
working capital per share. Working capital can be volatile due to
numerous factors including a build-up or reduction of inventories.
Management believes that, by excluding these items, this non-GAAP
measure provides investors with the ability to better evaluate the
cash flow performance of the Company. The following table provides
a reconciliation of net cash from operating activities before
changes in working capital.
|
|
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
($ millions,
except where noted)
|
2014
|
2013
|
2014
|
2013
|
Net cash from
operating activities per consolidated financial
statements
|
$
|
72.0
|
$
|
44.0
|
$
|
312.2
|
$
|
246.3
|
Adjusting items from
non-cash working capital items and non-current ore
stockpiles
|
|
|
|
|
|
|
|
|
|
Receivables and other
current assets
|
|
15.8
|
|
(10.7)
|
|
2.4
|
|
(10.0)
|
|
Inventories and
non-current ore stockpiles
|
|
17.9
|
|
21.8
|
|
(0.3)
|
|
51.0
|
|
Accounts payable and
accrued liabilities
|
|
(12.0)
|
|
(0.4)
|
|
3.0
|
|
18.3
|
Net cash from
operating activities before changes in working capital including
discontinued operations
|
$
|
93.7
|
$
|
54.7
|
$
|
317.3
|
$
|
305.6
|
Basic weighted
average number of common shares outstanding (millions)
|
|
376.9
|
|
376.6
|
|
376.8
|
|
376.6
|
Net cash from
operating activities before changes in working capital including
discontinued operations ($/share)
|
$
|
0.25
|
$
|
0.15
|
$
|
0.84
|
$
|
0.81
|
IAMGOLD
CORPORATION
|
Consolidated Balance
Sheets
|
|
|
|
December
31,
|
December
31,
|
(In millions of U.S.
dollars)
|
2014
|
2013
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
158.5
|
$
|
222.3
|
|
Gold bullion (market
value - $162.5; December 31, 2013 - $162.3)
|
|
96.9
|
|
96.9
|
|
Income taxes
receivable
|
|
0.2
|
|
37.2
|
|
Receivables and other
current assets
|
|
55.5
|
|
80.0
|
|
Inventories
|
|
245.1
|
|
300.2
|
|
Assets held for
sale
|
|
628.5
|
|
-
|
|
|
|
1,184.7
|
|
736.6
|
Non-current
assets
|
|
|
|
|
|
Deferred income tax
assets
|
|
-
|
|
74.0
|
|
Investments in
associates and joint ventures
|
|
56.4
|
|
65.5
|
|
Property, plant and
equipment
|
|
2,152.9
|
|
2,520.4
|
|
Exploration and
evaluation assets
|
|
544.8
|
|
533.3
|
|
Income taxes
receivable
|
|
67.4
|
|
31.6
|
|
Other
assets
|
|
216.6
|
|
229.0
|
|
|
|
3,038.1
|
|
3,453.8
|
|
|
$
|
4,222.8
|
$
|
4,190.4
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
169.5
|
$
|
185.6
|
|
Income taxes
payable
|
|
8.7
|
|
12.1
|
|
Current portion of
provisions
|
|
13.7
|
|
11.4
|
|
Other
liabilities
|
|
36.2
|
|
6.2
|
|
Liabilities held for
sale
|
|
167.0
|
|
-
|
|
|
|
395.1
|
|
215.3
|
Non-current
liabilities
|
|
|
|
|
|
Deferred income tax
liabilities
|
|
165.5
|
|
212.3
|
|
Provisions
|
|
297.7
|
|
247.0
|
|
Long-term
debt
|
|
641.7
|
|
640.3
|
|
Other
liabilities
|
|
59.2
|
|
3.0
|
|
|
|
1,164.1
|
|
1,102.6
|
|
|
|
1,559.2
|
|
1,317.9
|
Equity
|
|
|
|
|
Equity attributable
to IAMGOLD Corporation shareholders
|
|
|
|
|
|
Common
shares
|
|
2,322.7
|
|
2,317.6
|
|
Contributed
surplus
|
|
38.2
|
|
35.2
|
|
Retained
earnings
|
|
301.2
|
|
465.1
|
|
Accumulated other
comprehensive income (loss)
|
|
(43.6)
|
|
13.3
|
|
|
|
2,618.5
|
|
2,831.2
|
Non-controlling
interests
|
|
45.1
|
|
41.3
|
|
|
|
2,663.6
|
|
2,872.5
|
Contingencies and
commitments
|
|
|
|
|
|
|
$
|
4,222.8
|
$
|
4,190.4
|
IAMGOLD
CORPORATION
|
Consolidated
Statement of Earnings
|
|
|
|
|
Three months
ended
December
31,
|
Years ended
December 31,
|
|
(Unaudited)
|
|
|
(In millions of U.S.
dollars, except per share amounts)
|
2014
|
2013
|
2014
|
2013
|
Continuing
Operations
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
272.5
|
$
|
195.1
|
$
|
1,007.9
|
$
|
947.5
|
Cost of
sales
|
|
239.5
|
|
161.8
|
|
892.9
|
|
668.5
|
General and
administrative expenses
|
|
10.5
|
|
10.9
|
|
44.8
|
|
48.4
|
Exploration
expenses
|
|
12.0
|
|
17.6
|
|
42.7
|
|
69.2
|
Impairment
charges
|
|
-
|
|
888.1
|
|
-
|
|
888.1
|
Other
|
|
46.9
|
|
7.8
|
|
70.1
|
|
1.6
|
Operating
costs
|
|
308.9
|
|
1,086.2
|
|
1,050.5
|
|
1,675.8
|
Losses from
operations
|
|
(36.4)
|
|
(891.1)
|
|
(42.6)
|
|
(728.3)
|
Share of net losses
from investments in associates and joint ventures, net of income
taxes
|
|
(5.3)
|
|
(62.9)
|
|
(26.2)
|
|
(67.4)
|
Finance
costs
|
|
(10.3)
|
|
(3.4)
|
|
(26.5)
|
|
(22.9)
|
Foreign exchange
losses
|
|
(6.5)
|
|
(2.6)
|
|
(8.2)
|
|
(4.9)
|
Interest income and
derivatives and other investment losses
|
|
(47.3)
|
|
(35.4)
|
|
(40.2)
|
|
(102.1)
|
Losses before
income taxes
|
|
(105.8)
|
|
(995.4)
|
|
(143.7)
|
|
(925.6)
|
Income
taxes
|
|
(42.0)
|
|
111.8
|
|
(117.9)
|
|
34.9
|
Net losses from
continuing operations
|
|
(147.8)
|
|
(883.6)
|
|
(261.6)
|
|
(890.7)
|
Net earnings from
discontinued operations, net of income taxes
|
|
26.7
|
|
3.5
|
|
62.7
|
|
30.1
|
Net
losses
|
$
|
(121.1)
|
$
|
(880.1)
|
$
|
(198.9)
|
$
|
(860.6)
|
Net losses from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
Equity holders of
IAMGOLD Corporation
|
$
|
(148.7)
|
$
|
(843.8)
|
$
|
(269.5)
|
$
|
(862.6)
|
Non-controlling
interests
|
|
0.9
|
|
(39.8)
|
|
7.9
|
|
(28.1)
|
Net losses from
continuing operations
|
$
|
(147.8)
|
$
|
(883.6)
|
$
|
(261.6)
|
$
|
(890.7)
|
Net losses
attributable to
|
|
|
|
|
|
|
|
|
Equity holders of
IAMGOLD Corporation
|
$
|
(122.0)
|
$
|
(840.3)
|
$
|
(206.8)
|
$
|
(832.5)
|
Non-controlling
interests
|
|
0.9
|
|
(39.8)
|
|
7.9
|
|
(28.1)
|
Net losses
|
$
|
(121.1)
|
$
|
(880.1)
|
$
|
(198.9)
|
$
|
(860.6)
|
Attributable to
equity holders of IAMGOLD Corporation
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in millions)
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
376.9
|
|
376.6
|
|
376.8
|
|
376.6
|
Losses per share from
continuing operations ($ per share)
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.39)
|
$
|
(2.24)
|
$
|
(0.72)
|
$
|
(2.29)
|
|
Diluted
|
$
|
(0.39)
|
$
|
(2.24)
|
$
|
(0.72)
|
$
|
(2.29)
|
Earnings per share
from discontinued operation ($ per share)
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.07
|
$
|
0.01
|
$
|
0.17
|
$
|
0.08
|
|
Diluted
|
$
|
0.07
|
$
|
0.01
|
$
|
0.17
|
$
|
0.08
|
Net losses per share
including discontinued operations ($ per share)
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.32)
|
$
|
(2.23)
|
$
|
(0.55)
|
$
|
(2.21)
|
|
Diluted
|
$
|
(0.32)
|
$
|
(2.23)
|
$
|
(0.55)
|
$
|
(2.21)
|
IAMGOLD
CORPORATION
|
Consolidated
Statement of Comprehensive Income
|
|
|
|
|
Three months
ended
December 31,
|
Years
ended
December
31,
|
|
(Unaudited)
|
|
|
(In millions of U.S.
dollars)
|
2014
|
2013
|
2014
|
2013
|
Net
losses
|
$
|
(121.1)
|
$
|
(880.1)
|
$
|
(198.9)
|
$
|
(860.6)
|
Other
comprehensive loss, net of income taxes
|
|
|
|
|
|
|
|
|
Items that will
not be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
Movement in
marketable securities fair value reserve
|
|
|
|
|
|
|
|
|
Net unrealized change
in fair value of marketable securities
|
|
(8.7)
|
|
2.8
|
|
(9.1)
|
|
(46.9)
|
Net realized change
in fair value of marketable securities
|
|
4.4
|
|
0.1
|
|
5.2
|
|
13.5
|
Tax impact
|
|
0.2
|
|
(0.4)
|
|
(0.5)
|
|
4.6
|
|
|
(4.1)
|
|
2.5
|
|
(4.4)
|
|
(28.8)
|
Items that may be
reclassified to profit or loss
|
|
|
|
|
|
|
|
|
Movement in cash
flow hedge fair value reserve from continuing
operations
|
|
|
|
|
|
|
|
|
Effective portion of
changes in fair value of cash flow hedges
|
|
(4.8)
|
|
-
|
|
(2.1)
|
|
-
|
Time value of options
and forward element of forward contracts excluded from hedge
relationship
|
|
(2.8)
|
|
-
|
|
(5.1)
|
|
-
|
Net change in fair
value of cash flow hedge reclassified
|
|
(2.4)
|
|
-
|
|
(2.6)
|
|
-
|
Net change in time
value of options and forward element of forward contracts
reclassified
|
|
0.2
|
|
-
|
|
2.3
|
|
-
|
Tax impact
|
|
1.0
|
|
|
|
0.4
|
|
|
Movement in cash
flow hedge fair value reserve from discontinued operations, net of
tax
|
|
(2.2)
|
|
-
|
|
(1.6)
|
|
-
|
|
|
(11.0)
|
|
-
|
|
(8.7)
|
|
-
|
Currency translation
adjustment
|
|
(0.7)
|
|
(0.7)
|
|
(2.7)
|
|
(0.3)
|
Other from
discontinued operations
|
|
1.8
|
|
-
|
|
1.8
|
|
1.4
|
Total other
comprehensive loss
|
|
(14.0)
|
|
1.8
|
|
(14.0)
|
|
(27.7)
|
Comprehensive
loss
|
$
|
(135.1)
|
$
|
(878.3)
|
$
|
(212.9)
|
$
|
(888.3)
|
Comprehensive loss
attributable to
|
|
|
|
|
|
|
|
|
Equity holders of
IAMGOLD Corporation
|
$
|
(136.0)
|
$
|
(838.5)
|
$
|
(220.8)
|
$
|
(860.2)
|
Non-controlling
interests
|
|
0.9
|
|
(39.8)
|
|
7.9
|
|
(28.1)
|
|
$
|
(135.1)
|
$
|
(878.3)
|
$
|
(212.9)
|
$
|
(888.3)
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to equity holders arises from:
|
|
|
|
|
|
|
|
|
Comprehensive loss
from continuing operations
|
$
|
(161.4)
|
$
|
(881.8)
|
$
|
(275.8)
|
$
|
(918.4)
|
Comprehensive income
from discontinued operations
|
|
26.3
|
|
3.5
|
|
62.9
|
|
30.1
|
Comprehensive
loss
|
$
|
(135.1)
|
$
|
(878.3)
|
$
|
(212.9)
|
$
|
(888.3)
|
IAMGOLD
CORPORATION
|
Consolidated
Statement of Cash Flow
|
|
|
|
|
Three months
ended
December
31,
|
Years ended
December 31,
|
|
(Unaudited)
|
|
|
(In millions of U.S.
dollars)
|
2014
|
2013
|
2014
|
2013
|
Operating
activities
|
|
|
|
|
|
|
|
Net losses
|
$
|
(121.1)
|
$
|
(880.1)
|
$
|
(198.9)
|
$
|
(860.6)
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
10.5
|
|
3.8
|
|
28.0
|
|
24.4
|
|
Depreciation
expense
|
|
58.0
|
|
46.2
|
|
231.2
|
|
175.2
|
|
Changes in estimates
of asset retirement obligations at closed sites
|
|
39.6
|
|
3.7
|
|
48.7
|
|
(8.8)
|
|
Income
taxes
|
|
56.7
|
|
(96.7)
|
|
155.1
|
|
(9.2)
|
|
Impairment charges
(reversals) of investments in associates and marketable
securities
|
|
-
|
|
4.9
|
|
(3.4)
|
|
69.1
|
|
Impairment
charges
|
|
-
|
|
888.1
|
|
-
|
|
888.1
|
|
Share of net losses
from investments in associates and joint ventures, net of income
taxes
|
|
5.3
|
|
79.6
|
|
26.2
|
|
83.9
|
|
Effects of exchange
rate fluctuation on cash and cash equivalents
|
|
1.7
|
|
2.8
|
|
9.2
|
|
0.5
|
|
Other non-cash
items
|
|
49.6
|
|
45.8
|
|
68.3
|
|
63.6
|
Adjustments for cash
items
|
|
(4.9)
|
|
1.0
|
|
(14.5)
|
|
7.4
|
Movements in non-cash
working capital items and non-current ore stockpiles
|
|
(21.7)
|
|
(10.7)
|
|
(5.1)
|
|
(59.3)
|
Cash from operating
activities, before income taxes paid
|
|
73.7
|
|
88.4
|
|
344.8
|
|
374.3
|
Income taxes
paid
|
|
(1.7)
|
|
(44.4)
|
|
(32.6)
|
|
(128.0)
|
Net cash from
operating activities
|
|
72.0
|
|
44.0
|
|
312.2
|
|
246.3
|
Investing
activities
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(61.4)
|
|
(128.1)
|
|
(343.7)
|
|
(617.4)
|
|
Capitalized borrowing
costs
|
|
(1.5)
|
|
(14.4)
|
|
(22.1)
|
|
(19.5)
|
|
Proceeds on sales and
leaseback
|
|
-
|
|
-
|
|
31.5
|
|
-
|
|
Proceeds from
disposals
|
|
1.5
|
|
(1.3)
|
|
2.4
|
|
1.4
|
Advances to related
parties
|
|
-
|
|
(30.1)
|
|
(10.1)
|
|
(57.7)
|
Repayment from
related parties
|
|
12.6
|
|
-
|
|
24.8
|
|
10.0
|
Capital expenditures
for exploration and evaluation assets
|
|
(3.1)
|
|
-
|
|
(10.9)
|
|
-
|
Other investing
activities
|
|
7.3
|
|
2.7
|
|
8.4
|
|
(5.1)
|
Net cash used in
investing activities
|
|
(44.6)
|
|
(171.2)
|
|
(319.7)
|
|
(688.3)
|
Financing
activities
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1.9)
|
|
-
|
|
(4.1)
|
|
(102.4)
|
Interest
paid
|
|
(20.8)
|
|
(7.8)
|
|
(22.7)
|
|
(25.8)
|
Other
|
|
(3.0)
|
|
(0.7)
|
|
(8.3)
|
|
(4.3)
|
Net cash used in
financing activities
|
|
(25.7)
|
|
(8.5)
|
|
(35.1)
|
|
(132.5)
|
Effects of
exchange rate fluctuation on cash and cash
equivalents
|
|
(1.7)
|
|
(2.8)
|
|
(9.2)
|
|
(0.5)
|
Decrease in cash
and cash equivalents
|
|
0.0
|
|
(138.5)
|
|
(51.8)
|
|
(575.0)
|
Cash and cash
equivalents, beginning of the period
|
|
170.5
|
|
360.8
|
|
222.3
|
|
797.3
|
Cash and cash
equivalents held for sale
|
|
(12.0)
|
|
-
|
|
(12.0)
|
|
-
|
Cash and cash
equivalents, end of the period
|
$
|
158.5
|
$
|
222.3
|
$
|
158.5
|
$
|
222.3
|
CONFERENCE CALL
A conference call will be held on Thursday, February 19, 2015 at 8:30 a.m. (Eastern Standard Time) for a
discussion with management regarding IAMGOLD's 2014 fourth quarter
and full-year 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 headings "Fourth Quarter and
Full-Year 2014 Highlights" and "Fourth Quarter 2014 Operating
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.html. The risks described in the Annual
Information Form (filed and viewable on www.sedar.com and
www.sec.gov/edgar.html, 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.
NOTES TO INVESTORS REGARDING THE USE OF RESOURCES
CAUTIONARY NOTE TO INVESTORS CONCERNING ESTIMATES OF MEASURED
AND INDICATED RESOURCES
This news release uses the terms "measured resources" and
"indicated resources". The Company advises investors that while
those terms are recognized and required by Canadian regulations,
the United States Securities and Exchange Commission ("the SEC")
does not recognize them. Investors are cautioned not to assume that
any part or all of mineral deposits in these categories will ever
be converted into reserves.
CAUTIONARY NOTE TO INVESTORS CONCERNING ESTIMATES OF INFERRED
RESOURCES
This news release also uses the term "inferred resources". The
Company advises investors that while this term is recognized and
required by Canadian regulations, the SEC does not recognize it.
"Inferred resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases. Investors are cautioned not to
assume that part or all of an inferred resource exists, or is
economically or legally mineable.
SCIENTIFIC AND TECHNICAL DISCLOSURE
IAMGOLD is reporting mineral resource and reserve estimates in
accordance with the CIM guidelines for the estimation,
classification and reporting of resources and reserves.
CAUTIONARY NOTE TO U.S. INVESTORS
The United States Securities and Exchange Commission limits
disclosure for U.S. reporting purposes to mineral deposits that a
company can economically and legally extract or produce. IAMGOLD
uses certain terms in this news release, such as "measured,"
"indicated," or "inferred," which may not be consistent with the
reserve definitions established by the SEC. U.S. investors are
urged to consider closely the disclosure in the IAMGOLD Annual
Reports on Forms 40-F. Investors can review and obtain copies of
these filings from the SEC's website at
http://www.sec.gov/edgar.shtml or by contacting the Investor
Relations department.
The Canadian Securities Administrators' National Instrument
43-101 ("NI 43-101") requires mining companies to disclose reserves
and resources using the subcategories of "proven" reserves,
"probable" reserves, "measured" resources, "indicated" resources
and "inferred" resources. Mineral resources that are not mineral
reserves do not demonstrate economic viability.
A mineral reserve is the economically mineable part of a
measured or indicated mineral resource demonstrated by at least a
preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and
other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified. A mineral reserve
includes diluting materials and allows for losses that may occur
when the material is mined. A proven mineral reserve is the
economically mineable part of a measured mineral resource
demonstrated by at least a preliminary feasibility study. A
probable mineral reserve is the economically mineable part of an
indicated, and in some circumstances, a measured mineral resource
demonstrated by at least a preliminary feasibility study.
A mineral resource is a concentration or occurrence of natural,
solid, inorganic material, or natural, solid fossilized organic
material including base and precious metals in or on the Earth's
crust in such form and quantity and of such a grade or quality that
it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a
mineral resource are known, estimated or interpreted from specific
geological evidence and knowledge. A measured mineral resource is
that part of a mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics are so well
established that they can be estimated with confidence sufficient
to allow the appropriate application of technical and economic
parameters, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on
detailed and reliable exploration, sampling and testing information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced
closely enough to confirm both geological and grade continuity. An
indicated mineral resource is that part of a mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably
assumed. An inferred mineral resource is that part of a mineral
resource for which quantity and grade or quality can be estimated
on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade
continuity. The estimate is based on limited information and
sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. Mineral
resources which are not mineral reserves do not have demonstrated
economic viability. Investors are cautioned not to assume that part
or all of an inferred resource exists, or is economically or
legally mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project that
includes appropriately detailed assessments of realistically
assumed mining, processing, metallurgical, economic, marketing,
legal, environmental, social and governmental considerations
together with any other relevant operational factors and detailed
financial analysis, that are necessary to demonstrate at the time
of reporting that extraction is reasonably justified (economically
mineable). The results of the study may reasonably serve as the
basis for a final decision by a proponent or financial institution
to proceed with, or finance, the development of the project. The
confidence level of the study will be higher than that of a
Pre-Feasibility Study.
A pre-feasibility study is a comprehensive study of a range of
options for the technical and economic viability of a mineral
project that has advanced to a stage where a preferred mining
method, in the case of underground mining, or the pit
configuration, in the case of an open pit, is established and an
effective method of mineral processing is determined. It includes a
financial analysis based on reasonable assumptions on mining,
processing, metallurgical, economic, marketing, legal,
environmental, social and governmental considerations and the
evaluation of any other relevant factors which are sufficient for a
qualified person, acting reasonably, to determine if all or part of
the Mineral Resource may be classified as a Mineral Reserve.
Qualified Person Information
The mineral resource estimates contained in this news release
have been prepared in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101") and
JORC. The "Qualified Person" responsible for the supervision of the
preparation and review of all resource and reserve estimates for
IAMGOLD is Lise Chenard, Eng., Director, Mining Geology. Lise has
worked in the mining industry for more than 30 years, mainly in
operations, project development and consulting. She joined
IAMGOLD in April 2013 and acquired
her knowledge of the Company's operations and projects through site
visits and information reviews.
She is considered a "Qualified Person" for the purposes of NI
43-101 with respect to the mineralization being reported on. The
technical information has been included herein with the consent and
prior review of the above noted Qualified Person. The Qualified
person has verified the data disclosed, and data underlying the
information or opinions contained herein.
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, for
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 (including current joint ventures) on three
continents. A solid base of strategic assets in Canada, South
America and 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