All monetary amounts are expressed in U.S.
dollars, unless otherwise indicated.
Refer to the
Management Discussion and Analysis (MD&A) and Unaudited
Consolidated
Interim Financial Statements for the three
months ended September 30, 2016 for
more information.
TSX: IMG NYSE: IAG
TORONTO, Nov. 7, 2016 /PRNewswire/ - IAMGOLD
Corporation ("IAMGOLD" or the "Company") today reports its
financial and operating results for the quarter ended September 30, 2016.
"We had strong third quarter results, with net earnings
increasing $102 million and net
operating cash flow increasing $117
million from the same period last year," said Steve Letwin, IAMGOLD President and CEO.
"Comparing results to the second quarter, net earnings rose
$29 million and net operating cash
flow increased by $55 million. Gold
production increased by 7% from the second quarter to 210,000
ounces and all-in sustaining costs were reduced by $68 an ounce to $1,046 an ounce. Essakane's performance was
stellar, with production up 17% and all-in sustaining costs at
$815 an ounce, and Rosebel's
performance optimization initiatives are transforming the
operation. Lower operating costs are a major reason for reducing
our consolidated cash costs guidance for 2016 to $740 - $770 an ounce.
"The $230 million equity financing
enabled us to reduce long-term debt by 23%," continued Mr. Letwin,
"and has strengthened our capacity to fund organic growth.
Westwood is on track to achieving
full production by 2019. Moving forward with the Sadiola Sulphide
Project could see an expanded plant come on line by early 2019. And
at Rosebel, where the growth emphasis has been on securing soft
rock, we achieved a significant milestone with the signing of an
agreement to acquire Saramacca. Our exploration team is currently
drilling known mineralized zones to advance them to a resource
stage as soon as possible. Beyond these internally funded
priorities, Côté Gold, one of the largest undeveloped deposits in
Canada, remains a solid growth
opportunity."
Third Quarter 2016 Highlights
- Attributable gold production of 210,000 oz, up 7% from Q2/16
and Q3/15.
- All-in sustaining costs1 of $1,046/oz sold and total cash costs1
of $714/oz produced.
- Essakane increased gold production by 17% from Q2/16 and
reduced all-in sustaining costs by 25% to $815/oz.
- Earnings from operations of $33.8
million, up $27.8 million from
Q2/16 and up $76.0 million from
Q3/15.
- Gold margin1 of $612/oz up $99/oz
from Q2/16 and $282/oz from
Q3/15.
- Net earnings of $17.0 million
($0.04 per share) compared to a net
loss of $12.2 million ($0.03 per share) in Q2/16 and a net loss of
$85.0 million ($0.22 per share) in Q3/15.
- Adjusted net earnings from continuing operations1
were $21.8 million ($0.05 per share1) compared to adjusted
net earnings of $5.9 million
($0.01 per share) in Q2/16 and an
adjusted net loss of $46.9 million
($0.12 per share) in Q3/15.
- Net cash from operating activities of $126.6 million, up $55.4
million from Q2/16 and up $116.8
million from Q3/15.
- Cash, cash equivalents and restricted cash were $750.8 million as at September 30, 2016.
- Revolving credit facility commitments increased to $170 million with additional commitments of
$30 million.
- Completion of $230 million (gross
proceeds) equity financing enables debt reduction and strengthens
financial capacity to fund organic growth.
- Reduced long-term debt by 23% through the purchase of
$145.9 million (face value) of our
outstanding senior unsecured notes.
- Entered into an acquisition agreement for the Saramacca
property in Suriname with the intent of defining a National
Instrument 43-101 compliant mineral resource within the next 24
months.
- Additional assay results from the Boto project in Senegal confirm wide intervals of high-grade
mineralization in the footwall of the main deposit which was not
fully tested in previous drilling programs. Highlights include 22
metres grading 4.04 g/t Au and 32 metres grading 5.19 g/t Au.
- Expect to achieve higher end of 2016 production guidance of
770,000 - 800,000 ozs.
- Lowered and narrowed 2016 total cash costs1 guidance
range from $775 - $815/oz to
$740 - $770/oz; narrowed all-in
sustaining cost1 range from $1,000 - $1,100/oz to $1,050 - $1,100/oz.
- Moody's Investor Service updated the outlook for IAMGOLD to
"positive" from "negative" and S&P Global Ratings revised its
outlook to "positive" from "stable".
SUMMARY OF
FINANCIAL AND OPERATING RESULTS
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
Financial Results
($ millions, except where noted)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Continuing
Operations
|
|
|
|
|
|
|
|
Revenues
|
$
|
282.4
|
|
$
|
207.6
|
|
$
|
734.6
|
|
$
|
678.8
|
Cost of
sales
|
$
|
230.2
|
|
$
|
227.6
|
|
$
|
651.5
|
|
$
|
688.1
|
Gross
margin1
|
$
|
52.2
|
|
$
|
(20.0)
|
|
$
|
83.1
|
|
$
|
(9.3)
|
Net earnings (loss)
from continuing operations attributable to equity holders of
IAMGOLD
|
$
|
17.0
|
|
$
|
(85.0)
|
|
$
|
57.9
|
|
$
|
(121.2)
|
Net earnings (loss)
from continuing operations attributable to equity holders of
IAMGOLD per share ($/share)
|
$
|
0.04
|
|
$
|
(0.22)
|
|
$
|
0.14
|
|
$
|
(0.31)
|
Adjusted net earnings
(loss) from continuing operations attributable to equity holders of
IAMGOLD1
|
$
|
21.8
|
|
$
|
(46.9)
|
|
$
|
(1.3)
|
|
$
|
(107.2)
|
Adjusted net earnings
(loss) from continuing operations attributable to equity holders
per share ($/share)1
|
$
|
0.05
|
|
$
|
(0.12)
|
|
$
|
—
|
|
$
|
(0.28)
|
Net cash from
operating activities
|
$
|
126.6
|
|
$
|
9.8
|
|
$
|
249.2
|
|
$
|
72.7
|
Net cash from
operating activities before changes in working
capital1
|
$
|
112.1
|
|
$
|
34.9
|
|
$
|
226.8
|
|
$
|
139.4
|
Net earnings from
discontinued operations attributable to equity holders of
IAMGOLD
|
$
|
—
|
|
$
|
1.2
|
|
$
|
—
|
|
|
41.8
|
Net earnings from
discontinued operations attributable to equity holders of IAMGOLD
($/share)
|
$
|
—
|
|
$
|
0.01
|
|
$
|
—
|
|
|
0.11
|
Key Operating
Statistics
|
|
|
|
|
|
|
|
|
|
|
Gold sales –
attributable (000s oz)
|
212
|
|
186
|
|
590
|
|
589
|
Gold production –
attributable (000s oz)
|
210
|
|
197
|
|
598
|
|
607
|
Average realized gold
price1 ($/oz)
|
$
|
1,326
|
|
$
|
1,121
|
|
$
|
1,263
|
|
$
|
1,180
|
Total cash
costs1 ($/oz)
|
$
|
714
|
|
$
|
791
|
|
$
|
738
|
|
$
|
818
|
Gold
margin1 ($/oz)
|
$
|
612
|
|
$
|
330
|
|
$
|
525
|
|
$
|
362
|
All-in sustaining
costs1 ($/oz)
|
$
|
1,046
|
|
$
|
1,027
|
|
$
|
1,080
|
|
$
|
1,074
|
1
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
|
THIRD QUARTER 2016 HIGHLIGHTS
Financial Performance
- Revenues from continuing operations for the third quarter 2016
were $282.4 million, up $74.8 million or 36% from the same prior year
period. The increase was due to a higher realized gold price
($43.6 million) and higher sales
volume at Westwood ($15.7 million), Essakane ($14.4 million) and Rosebel ($1.0 million).
- Cost of sales from continuing operations for the third quarter
2016 was $230.2 million, up 1% from
the same prior year period. The increase was the result of higher
royalty expense due to a higher realized gold price ($3.8 million) and higher depreciation expense
($1.0 million), partially offset by
lower operating costs ($2.2 million).
Operating costs were lower due to higher capitalized stripping and
lower fuel prices at Rosebel and Essakane, the devaluation of the
Surinamese dollar relative to the U.S. dollar and lower labour
costs at Rosebel following the workforce reductions in 2015,
partially offset by higher costs at Westwood due to increased production.
Westwood continues to focus on
underground development related to the production ramp-up.
- Depreciation expense for the third quarter 2016 was
$69.3 million, up 1% from the same
prior year period, primarily due to timing of capital additions and
lower reserves at Rosebel.
- Income tax expense from continuing operations for the third
quarter 2016 was $14.4 million, up
$6.4 million from the same prior year
period. Taxes were higher due to differences in the level of
taxable income in our operating jurisdictions from one period to
the next, as well as changes to deferred tax assets and liabilities
as a result of fluctuations in foreign exchange.
- Net earnings from continuing operations attributable to equity
holders for the third quarter 2016 was $17.0
million or $0.04 per share, up
$102.0 million or $0.26 per share from the same prior year period.
The increase was mainly due to higher revenues ($74.8 million), a loss on non-hedge derivatives
in the third quarter 2015 ($28.5
million), lower other expenses ($4.5
million) and lower finance costs ($3.2 million), partially offset by higher income
tax expense ($6.4 million) and higher
cost of sales ($2.6 million).
- Adjusted net earnings from continuing operations attributable
to equity holders1 for the third quarter 2016 was
$21.8 million ($0.05 per share1), up from an adjusted
net loss of $46.9 million
($0.12 per share1) for the
same prior year period.
- Net cash from operating activities for the third quarter 2016
was $126.6 million, up $116.8 million from the same prior year period.
The increase was mainly due to higher earnings after non-cash
adjustments ($58.0 million), a change
in the movement of non-cash working capital ($39.6 million), lower net settlement of
derivatives ($14.1 million) and
dividends from joint ventures ($11.3
million).
- Net cash from operating activities before changes in working
capital1 for the third quarter 2016 was $112.1 million, up $77.2
million from the same prior year period.
Financial Position
- Cash, cash equivalents and restricted cash were $750.8 million as at September 30, 2016, up $193.7 million from December 31, 2015. The increase was mainly due to
cash generated from operating activities ($249.2 million), net proceeds from the equity
financing ($220.1 million), proceeds
from the sale of gold bullion ($170.3
million), and proceeds from the issuance of flow-through
shares ($30.3 million), partially
offset by spending on Property, plant and equipment and Exploration
and evaluation assets ($221.8
million), repurchase of senior unsecured notes ($141.5 million), repayment of the credit facility
($70.0 million) and interest paid
($41.9 million).
Production and Costs
- Attributable gold production, inclusive of joint venture
operations, for the third quarter 2016 was 210,000 ounces, up
13,000 ounces from the same prior year period. The increase was due
to Westwood (14,000 ounces) and
higher grades and throughput at Rosebel (2,000 ounces), partially
offset by lower production at Essakane due to lower throughput and
recoveries (3,000 ounces.)
- Attributable gold sales, inclusive of joint venture operations,
of 212,000 ounces for the third quarter of 2016, were higher than
production of 210,000 ounces due to the sale of gold contained in
carbon fines at Essakane.
- Total cash costs1 for the third quarter 2016 were
$714 per ounce produced, down 10%
from the same prior year period. The decrease was mainly due to
higher capitalized stripping, lower realized fuel prices, the
devaluation of the Surinamese dollar relative to the U.S. dollar,
and lower labour costs at Rosebel following workforce reductions in
2015, partially offset by higher operating costs at the joint
ventures. Total cash costs1 in the third quarter 2016
were reduced by $30 an ounce to
reflect the normalization of costs and revised ramp-up at
Westwood (September 30, 2015 - $76 an ounce), and included a realized derivative
gain of $1 an ounce (September 30, 2015 - realized derivative loss of
$65 an ounce) and a supplemental
labour cost of $13 per ounce at
Rosebel to support the employees with the devaluation of the
Surinamese dollar relative to the U.S. dollar.
- All-in-sustaining costs1 for the third quarter 2016
were $1,046 per ounce sold, up
$19 per ounce from the same prior
year period. The increase was primarily due to an increase in
sustaining capital expenditures, partially offset by higher sales
and lower cash costs. All-in sustaining costs1 in the
third quarter 2016 were reduced by $30 an ounce to reflect the normalization of
costs and revised ramp-up at Westwood (September 30,
2015 - $80 an ounce), and
included a realized derivative gain of $1 an ounce (September 30,
2015 - realized derivative loss of $73 an ounce) and a supplemental labour cost of
$13 per ounce at Rosebel to support
the employees with the devaluation of the Surinamese dollar
relative to the U.S. dollar.
Commitment to Zero Harm Continues
- Regarding health and safety, the frequency of all types of
serious injuries (measured as the DART rate2) for the
third quarter 2016 was 0.47, an improvement over our target of 0.62
for 2016 and 0.67 in 2015. Despite our strong health and safety
performance in 2016, performance in the third quarter was affected
by an accident involving personnel transport buses that occurred in
Burkina Faso on August 4, 2016, which resulted in one fatality
and serious injuries to four workers.
ATTRIBUTABLE GOLD
PRODUCTION AND ALL-IN SUSTAINING AND TOTAL CASH
COSTS
|
|
|
|
|
|
Gold
Production
(000s
oz)
|
Total Cash
Costs1
($ per ounce
produced)
|
All-in
Sustaining Costs1
($ per ounce sold)
|
Three months ended
September 30,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
Owner-operator
|
|
|
|
|
|
|
Essakane
(90%)
|
104
|
107
|
$
|
624
|
$
|
747
|
$
|
815
|
$
|
922
|
Rosebel
(95%)
|
72
|
70
|
728
|
866
|
1,183
|
|
1,111
|
Westwood
(100%)
|
16
|
2
|
888
|
1,438
|
1,391
|
|
1,751
|
|
192
|
179
|
685
|
801
|
1,035
|
|
1,056
|
Joint
Ventures
|
18
|
18
|
1,015
|
690
|
1,180
|
|
721
|
Total
operations
|
210
|
197
|
$
|
714
|
$
|
791
|
$
|
1,046
|
$
|
1,027
|
Cash costs, excluding
royalties
|
|
|
$
|
649
|
$
|
740
|
|
|
Royalties
|
|
|
65
|
51
|
|
|
Total cash
costs1
|
|
|
$
|
714
|
$
|
791
|
|
|
All-in sustaining
costs1
|
|
|
|
|
$
|
1,046
|
$
|
1,027
|
|
|
|
|
|
|
|
|
|
Gold
Production
(000s oz)
|
Total Cash
Costs1 ($ per ounce
produced)
|
All-in
Sustaining
Costs1
($ per ounce sold)
|
Nine months ended
September 30,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
Owner-operator
|
|
|
|
|
|
|
Essakane
(90%)
|
281
|
285
|
$
|
662
|
$
|
768
|
$
|
987
|
$
|
972
|
Rosebel
(95%)
|
213
|
217
|
753
|
860
|
1,062
|
1,082
|
Westwood
(100%)
|
47
|
47
|
900
|
1,003
|
1,146
|
1,297
|
|
541
|
549
|
719
|
824
|
1,089
|
1,102
|
Joint
Ventures
|
57
|
58
|
921
|
760
|
988
|
800
|
Total
operations
|
598
|
607
|
$
|
738
|
$
|
818
|
$
|
1,080
|
$
|
1,074
|
Cash costs, excluding
royalties
|
|
|
$
|
681
|
$
|
768
|
|
|
Royalties
|
|
|
|
57
|
|
50
|
|
|
Total cash
costs1
|
|
|
$
|
738
|
$
|
818
|
|
|
All-in sustaining
costs1
|
|
|
|
|
|
$
|
1,080
|
$
|
1,074
|
1
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A. Consists of Essakane, Rosebel, Westwood and the Joint
Ventures on an attributable basis.
|
OPERATIONS ANALYSIS BY MINE SITE
(Refer to the Q3 2016
MD&A for further details.)
Essakane Mine - Burkina Faso
(IAMGOLD interest - 90%)
Attributable gold production at Essakane in the third quarter
2016 was 104,000 ounces, which was 17% higher than the 89,000
ounces produced in the second quarter of this year. The increase
was due to a 5% increase in grade to 1.3 grams per tonne of gold
and an 11% increase in mill throughput. Compared to the third
quarter 2015, production was lower by 3,000 ounces primarily due to
lower throughput, driven by a higher proportion of hard rock, and
lower recoveries resulting from higher graphite content in the ore,
partially offset by a 6% increase in the grade.
Total cash costs per ounce produced of $624 in the third quarter 2016 were $55 per ounce lower than the second quarter 2016
and $123 per ounce lower than the
same prior year period. The 16% reduction from the third
quarter 2015 was primarily due to higher capitalized stripping and
lower realized fuel prices, partially offset by higher fuel
consumption as a result of mining at Falagountou which is
approximately eleven kilometres from the mill. Essakane continues
to pursue the development of a solar power plant.
All-in sustaining costs of $815 per ounce sold in the third
quarter 2016 were $275 per ounce
lower than the second quarter 2016 and $107 per ounce lower than the same prior year
period. The reduction from the third quarter 2015 was due to higher
sales driven primarily by 12,000 ounces of gold contained in carbon
fines sold during the third quarter 2016, lower cash costs, and
lower sustaining capital expenditures, other than capitalized
stripping.
During the quarter, Essakane initiated a geometallurgical study
to improve gold recovery when processing ore with high graphite
content. Also during the quarter, the carbon fines treatment plant
and the intensive leach reactor were commissioned. The carbon fines
treatment plant will help increase saleable gold by facilitating
the processing of carbon fines material on site and the intensive
leach reactor will further help improve overall recoveries.
Rosebel Mine - Suriname (IAMGOLD interest - 95%)
Attributable gold production in the third quarter 2016 was
72,000 ounces, which compared to 73,000 ounces produced in the
second quarter 2016 and 70,000 ounces produced in the same prior
year period. The 3% increase from the third quarter 2015 was
primarily due to higher grades and throughput.
During the third quarter 2016, a new Collective Labour Agreement
("CLA") was signed which provided support to the employees of
Rosebel with the devaluation of the Surinamese dollar relative to
the U.S. dollar. The CLA included a 15% increase in base
salaries as well as lump sum payments covering the period of
January 2016 through August 2018.
Included in third quarter 2016 cash costs and all-in sustaining
costs was a supplemental labour cost of $40 per ounce produced and $43 per ounce sold, respectively, related to the
new CLA.
Total cash costs per ounce produced of $728 in the third quarter 2016 were down
$37 an ounce from the second quarter
2016 and $138 an ounce from the same
prior year period. The 16% improvement from the third quarter 2015
was primarily due to lower labour costs following the 2015
workforce reductions, higher capitalized stripping, lower realized
fuel prices, lower fuel consumption and the devaluation of the
Surinamese dollar against the U.S. dollar, partially offset by the
impact of the supplementary labour cost.
All-in sustaining costs per ounce sold were $1,183 in the third quarter 2016 compared to
$1,051 in the second quarter 2016 and
$1,111 in the same prior year period.
The increase from the third quarter 2015 was primarily due to
higher sustaining capital expenditures, including an increase in
capitalized stripping, partially offset by lower cash costs.
The installation of a new secondary crusher, which will help
increase the grinding capacity of hard rock, progressed well during
the quarter with commissioning in the fourth quarter 2016 and
further optimization in early 2017. The ongoing metallurgical
improvements to elution, carbon management and gravity optimization
continue to help reduce gold inventory in circuit.
Significant progress was made during the third quarter towards
securing a source of soft rock for Rosebel. We entered into an
agreement to acquire the Saramacca property, which has high
potential for soft rock mineralization and is located approximately
25 kilometres straight line from the Rosebel mill. The Rosebel
exploration team has commenced an initial 9,000 metre diamond
drilling program with the objective of defining a National
Instrument 43-101 compliant mineral resource within the next 24
months. In addition, results from the drilling of saddle zones
between Rosebel's existing pits have been encouraging.
Westwood Mine - Canada
(IAMGOLD Interest - 100%)
Gold production in the third quarter 2016 was 16,000 ounces,
which was the same as the second quarter 2016 and 14,000 higher
than the third quarter 2015.
Throughout the quarter, Westwood continued to focus on underground
development to open up access to new mining areas. Lateral and
vertical development totalled more than 6,100 metres. Development
work is on target with lateral development averaging 70 metres a
day. The rehabilitation work related to reopening the 104 mining
block is progressing as planned, with the completion of all five
by-pass drifts. In addition, production from planned mining blocks
is on schedule and development of track drifts is ongoing and in
accordance with our revised mine ramp-up plan.
In accordance with International Financial Reporting Standards,
costs attributed to inventory for the third quarter 2016 were
reduced by $6.3 million to normalize
for the amount of fixed overhead on a per unit basis as a
consequence of abnormally low production. This reduced total cash
costs in the third quarter 2016 by $383 per ounce produced, and all-in sustaining
costs by $385 per ounce sold. As a
result, total cash costs per ounce produced and all-in sustaining
costs per ounce sold for the third quarter were $888 and $1,391,
respectively, compared to $1,438 and
$1,751 in the same prior year
period.
We expect to continue normalizing total cash costs and all-in
sustaining costs for Westwood for
the remainder of 2016.
Sadiola Mine - Mali (IAMGOLD
interest - 41%)
Attributable gold production in the third quarter 2016 of 17,000
ounces was consistent with the same quarter last year due to higher
grades offset by lower throughput.
In the third quarter 2016, total cash costs of $999 per ounce produced and all-in sustaining
costs of $1,057 per ounce sold were
up from $661 and $695, respectively, in the same prior year
period. Although the costs of fuel and consumables and contractor
costs were lower, the continued draw down on existing higher grade
stockpiles in the third quarter 2016 compared to milling a higher
level of marginal ore in the same prior year period drove unit
costs higher.
Sadiola is expected to continue mining into early 2018 and
processing oxides into early 2019. In the second quarter, we
announced our intention to move ahead with the Sadiola Sulphide
Project by the end of the year conditional upon the timely decision
by our joint venture partner to proceed and the Government of
Mali's renewal of construction and
operating permits, the power agreement and fiscal terms related to
the project.
EXPLORATION
(Refer to the Q3 2016 MD&A for
further details)
In the third quarter 2016, expenditures for exploration and
project studies were $10.6 million
compared to $8.2 million in the same
prior year period. Of the $10.6
million, $6.6 million was
expensed and $4.0 million
capitalized. Drilling on active projects and mine sites totalled
approximately 48,000 metres.
We have increased our 2016 exploration expenditure guidance from
$34 million to $39 million (excluding project studies), which
includes planned program expenditures of $3.6 million relating to the evaluation of the
Saramacca project in Suriname.
Wholly-Owned Projects
Boto - Senegal
During
the third quarter, the drilling program continued at the Malikoundi
deposit targeting mineralization in the footwall not completely
drilled in previous campaigns and testing for potential higher
grade extensions along strike to the north. With this phase
of the drilling program completed, drill assay results were
reported (see news release dated September
15, 2016) confirming wider intervals of mineralization in
the footwall as well as the extension of high grade mineralization
along strike to the north of the deposit. Drill highlights included
the intersection of 32.0 metres grading 5.19 g/t Au in the
footwall, and 12.0 metres grading 6.39 g/t Au and 4.04 g/t Au over
22.0 metres north of the Malikoundi deposit.
Pitangui - Brazil
During the third quarter,
approximately 2,700 metres of diamond drilling was completed
(nearly 7,500 metres year-to-date) to test targets along strike to
the southeast of the São Sebastião deposit. To date, drilling has
confirmed the presence of rock units similar to those hosting the
main São Sebastião deposit, which could potentially host additional
mineralization.
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 dependent upon the exploration results as time
progresses.
Siribaya - Mali (50:50 Joint
Venture with Merrex Gold Inc.)
During the third quarter,
just over 1,200 metres of diamond drilling was completed to
increase confidence in the mineralized zones at the Diakha deposit
and to extend the deposit at depth below the current resource pit
shell. Assay results were reported from 19 diamond drill holes
completed earlier in the year totalling over 6,400 metres. Drill
highlights included the intersection of 19.0 metres grading 9.28
g/t Au and 18.0 metres grading 6.73 g/t Au (see Merrex news release
dated August 30, 2016). The
results will be used in future updates to the current resource
model.
Monster Lake - Canada
(Option Agreement with TomaGold Corporation)
Exploration
activities continued through the summer field season involving
geological and structural mapping and selected geochemical and
geophysical surveys in advance of a follow-up diamond drilling
program.
Nelligan - Canada (Option
Agreement with Vanstar Mining Resources Inc.)
Activities
during the third quarter included the completion of an orientation
soil sampling program over the known mineralized zones and
geological compilation and interpretation of drill results in
preparation for further drilling campaigns as access conditions
permit.
Eastern Borosi - Nicaragua
(Option Agreement with Calibre Mining Corporation)
In the
third quarter, just over 2,900 metres of diamond drilling was
completed (nearly 7,200 metres year-to-date). Assay results were
reported from the East Dome target which included intersections of
15.35 metres grading 1.21 g/t Au and 120.9 g/t Ag and 16.50 metres
grading 2.27 g/t Au and 127.9 g/t Ag. Assay results were reported
from the first drill hole completed at the Veta Loca vein which
returned 6.3 metres grading 10.15 g/t Au and 6.9 g/t Ag (see
Calibre news release dated September 15,
2016). The results will be used to guide further drill
targeting.
Other
Loma Larga (formerly Quimsacocha) - Ecuador
IAMGOLD, through its 35.7%
equity ownership of INV Metal Inc., has an indirect interest in the
Loma Larga gold, silver and copper project in southern Ecuador. INV Metals Inc. has completed a
preliminary feasibility study supporting the proposed development
of an underground mine with an anticipated production rate of 3,000
tonnes per day, average annual gold production of 150,000 ounces,
and a mine life of approximately 12 years (see INV Metal's news
release dated July 14, 2016).
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
|
The DART refers to
the number of days away, restricted duty or job transfer incidents
that occur per 100 employees.
|
CONFERENCE CALL
A conference call will be held on Tuesday, November 8, 2016 at 7:30 a.m. (Eastern Standard Time) for a
discussion with management regarding IAMGOLD`s third quarter 2016
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: 00582#.
CAUTIONARY STATEMENT ON
FORWARD-LOOKING
INFORMATION
All information included in this news release, including any
information as to the Company's future financial or operating
performance, and other statements that express management's
expectations or estimates of future performance, other than
statements of historical fact, constitute forward looking
information or forward-looking statements and are based on
expectations, estimates and projections as of the date of this news
release. For example, forward-looking statements contained in this
news release are found under, but are not limited to being
included under, the heading "Third Quarter 2016 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",
"estimate", "plan", "guidance", "outlook", "potential", "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 the price
of gold, costs or construction schedules can affect project
economics. Actual costs and economic returns may differ materially
from IAMGOLD's estimates or IAMGOLD could fail to obtain the
governmental approvals necessary for the operation of a project; in
either case, the project may not proceed, either on its original
timing or at all.
For a more comprehensive discussion of the risks faced by the
Company, and which may cause the actual financial results,
performance or achievements of IAMGOLD to be materially different
from the company's estimated future results, performance or
achievements expressed or implied by forward-looking information or
forward-looking statements, please refer to the Company's latest
Annual Information Form, filed with Canadian securities regulatory
authorities at www.sedar.com, and filed under Form 40-F with the
United States Securities Exchange Commission at
www.sec.gov/edgar.shtml. The risks described in the Annual
Information Form (filed and viewable on www.sedar.com and
www.sec.gov/edgar.shtml, and available upon request from the
Company) are hereby incorporated by reference into this news
release.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise except as required by
applicable law.
Qualified Person Information
The technical information relating to exploration activities
disclosed in this news release was prepared under the supervision
of, and reviewed and verified by, Craig
MacDougall, P.Geo., Senior Vice President, Exploration,
IAMGOLD. Mr. MacDougall is a Qualified Person as defined by
National Instrument 43-101.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four
operating gold mines on three continents. A solid base of strategic
assets in North and South America
and West Africa is complemented by
development and exploration projects and continued assessment of
accretive acquisition opportunities. IAMGOLD is in a strong
financial position with extensive management and operational
expertise.
Please note:
This entire news release may be accessed via fax, e-mail,
IAMGOLD's website at www.iamgold.com and through CNW Group's
website at www.newswire.ca. All material information on
IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué,
veuillez consulter le
http://www.iamgold.com/French/accueil/default.aspx.
SOURCE IAMGOLD Corporation