All 2016 numbers are preliminary and unaudited
and subject to final adjustment.
All amounts are
expressed in US dollars, unless otherwise indicated.
TORONTO, Jan. 16, 2017 /CNW/ - IAMGOLD Corporation
("IAMGOLD" or the "Company") announces preliminary operating
results for 2016 and guidance for 2017.
IAMGOLD's President and CEO, Steve
Letwin, said, "With gold production increasing in each
consecutive quarter of 2016, we had a strong finish to the year.
Strong operating performance drove production above guidance to
813,000 ounces. Production at all sites exceeded the top end
of the guidance ranges and Westwood's achievement of ambitious
underground development targets was outstanding, which well
positions them to nearly double production in 2017. We expect cash
costs and all-in sustaining costs to be within guidance, reflecting
continued success optimizing mine performance and improving
productivity.
"The year 2016 was pivotal for IAMGOLD," continued Mr. Letwin,
"as strong operating performance and the achievement of critical
milestones have well positioned us for growth. With strategies to
capitalize on organic growth opportunities at all of our mines and
a balance sheet that enables us to internally fund this growth,
we're confident that by 2020 we can take production to one million
ounces and reduce all-in sustaining costs by 15%. We expect
production in 2017 to increase by 4-9% from last year with all-in
sustaining costs ranging between $1,000 and
$1,080 an ounce."
Performance Highlights for 2016
- Attributable gold production of 813,000 ounces; above guidance
of 770,000 to 800,000 ounces; fourth quarter production 215,000
ounces.
- Total cash costs1 expected to be within guidance of
$740 to $770 per ounce.
- All-in sustaining costs1 expected to be within
guidance of $1,050 to $1,100 per
ounce.
- Capital expenditures of approximately $280 million were relatively in line with
guidance of $275 million.
- Approximately $750 million in
cash, cash equivalents and restricted cash as at December 31, 2016.
Guidance Highlights for 2017
- Attributable gold production expected to be between 845,000 and
885,000 ounces.
- Total cash costs expected to be between $740 and $780 per ounce.
- All-in sustaining costs expected to be between $1,000 and $1,080 per ounce.
- Capital expenditures guidance of $250
million ±5%.
1 This is
a non-GAAP measure.
|
2016 PRELIMINARY OPERATING RESULTS
Full year attributable production of 813,000 ounces was higher
than guidance of 770,000 to 800,000 ounces. All of our
operating mines exceeded the top end of their guidance.
Attributable gold production for the fourth quarter 2016 was
215,000 ounces.
The following table presents attributable production by
operating site:
(000s
oz)
|
Q1
2016
|
Q2
2016
|
Q3
2016
|
Q4
2016
|
2016
|
Guidance
|
Owner-Operator
|
|
|
|
|
|
|
Essakane
(90%)
|
88
|
89
|
104
|
96
|
377
|
365 – 375
|
Rosebel
(95%)
|
68
|
73
|
72
|
83
|
296
|
285 – 295
|
Westwood
(100%)
|
15
|
16
|
16
|
18
|
65
|
50 – 60
|
Total
Owner-Operator
|
171
|
178
|
192
|
197
|
738
|
700 –
730
|
Joint
Ventures
|
|
|
|
|
|
|
Sadiola
(41%)
|
19
|
18
|
17
|
16
|
70
|
|
Yatela
(40%)
|
1
|
1
|
1
|
2
|
5
|
|
Total Joint
Ventures
|
20
|
19
|
18
|
18
|
75
|
70
|
TOTAL
|
191
|
197
|
210
|
215
|
813
|
770 –
800
|
Both total cash costs and all-in sustaining costs for 2016 are
expected to be within guidance ranges of $740 to $770 per ounce and $1,050 to $1,100 per ounce, respectively.
2017 PRODUCTION AND COST GUIDANCE
|
|
Full Year
Guidance1
|
2017
|
Essakane (000s
oz)
|
370 –
380
|
Rosebel (000s
oz)
|
295 –
305
|
Westwood (000s
oz)
|
115 –
125
|
Total owner-operator
production (000s oz)
|
780 –
810
|
Joint ventures (000s
oz)
|
65 –
75
|
Total attributable
production (000s oz)
|
845 –
885
|
|
|
Total cash
costs2,3 – owner-operator ($/oz)
|
$740 –
$780
|
Total cash
costs2,4 ($/oz)
|
$740 –
$780
|
|
|
All-in sustaining
costs2,3 – owner-operator ($/oz)
|
$1,000 –
$1,080
|
All-in sustaining
costs2,4 ($/oz)
|
$1,000 –
$1,080
|
|
1 Guidance
for 2017 is based on the following assumptions:
- Average gold price per ounce of $1,250;
- Average crude oil price per barrel of $48;
- U.S. dollar value of the Euro of $1.08; and
- Canadian dollar value of the U.S. dollar of $1.35.
|
2 This is
a non-GAAP measure.
|
3 Consists
of Rosebel, Essakane, Westwood on an attributable basis.
|
4 Consists
of Rosebel, Essakane, Westwood, and joint ventures Sadiola and
Yatela on an attributable basis.
|
In 2017, we expect gold production to increase to 845,000 to
885,000 ounces, compared to 813,000 ounces in 2016. Westwood will continue to focus on underground
development, with expected production of 115,000 to 125,000 ounces,
nearly double that of 2016. The higher production at Westwood reflects commercial levels of
production from three mining blocks, including the zone where
remedial work was completed last year. At Rosebel, we expect higher
grades and improving productivity will drive production higher
despite the lower throughput anticipated with the proportion of
hard rock approaching 70%. At Essakane, throughput and recoveries
are expected to increase while grades are expected to be lower. The
joint ventures are expected to produce between 65,000 and 75,000
ounces.
We have lowered our all-in sustaining cost guidance to a range
of $1,000 to $1,080 per ounce, as we
have continued to realize significant benefits from performance
optimization initiatives across the sites.
2017 CAPITAL EXPENDITURE GUIDANCE ±5%
|
|
|
|
($
millions)
|
Sustaining
|
Development/
Expansion
(Non-sustaining)
|
Total3
|
|
Essakane
|
$
|
85
|
$
|
5
|
90
|
|
Rosebel
|
65
|
5
|
70
|
|
Westwood
|
20
|
45
|
65
|
Owner-operator
|
170
|
55
|
225
|
Corporate and
Development Projects
|
-
|
10
|
10
|
Total
owner-operator
|
170
|
65
|
235
|
Sadiola (Joint
Venture)1
|
5
|
10
|
15
|
Total2
(±5%)
|
$
|
175
|
$
|
75
|
$
|
250
|
|
1
Expansionary capital expenditures excludes the new construction for
Sadiola.
|
2
Capitalized borrowing costs are not included.
|
3
Includes $20 million of capitalized exploration expenditures. See
Exploration Plan 2017 table in the following section.
|
In 2017, we expect capital spending to be $250 million ± 5%. Of the $170 million allocated to sustaining capital for
owner-operated mines, 39% is for capitalized stripping at Essakane
($39 million) and Rosebel
($28 million) and another 30% is
related to spending on capital spares and equipment at these sites.
Westwood's non-sustaining capital
of $45 million is mainly for
expansion/ramp-up development. At Sadiola, the $10 million in non-sustaining capital is for
advancing the Sadiola Sulphide Project in 2017, including
completing an optimization study to refine project economics. Spend
for new construction is not included in the guidance provided at
this time. As previously communicated, our intention is to
move ahead with the project with our partner conditional upon the
Government of Mali renewing
construction and operating permits, the power agreement and fiscal
terms related to the project. Once these have been achieved and the
timing of project commencement known, guidance will be adjusted
accordingly.
The $10 million spend on Corporate
and Development Projects includes spending at Côté Gold and Boto
Gold. At Côté Gold the focus continues to be on de-risking the
project, with the completion of a pre-feasibility study expected by
the end of the second quarter 2017.
2017 EXPLORATION PLAN
An active exploration program is critical to replenishing
reserves and resources. Our exploration program is focused on the
discovery of new ounces through our wholly-owned and joint venture
projects in South and Central
America, West Africa and
Canada, as well as through
targeting of soft rock resources near our existing mines. We have
been very selective as to the projects we continue to advance and
are focusing on highly prospective projects. In 2017, we
increased our budget for exploration projects to $47 million to reflect exploration programs at
our Saramacca project, the saddle zones at Rosebel and highly
prospective targets at Essakane. This year we are targeting initial
resource estimates for our Saramacca project near Rosebel in
Suriname, our Monster Lake project in Quebec and our Eastern Borosi joint venture
project in Nicaragua. The increase in planned expenditures
for feasibility and other studies is largely due to the
continuation of technical studies for the Boto Gold project and
Côté Gold.
|
|
|
|
2016
Actual
|
2017
Plan
|
|
|
|
($
millions)
|
Capitalized
|
Expensed
|
Total
|
Capitalized
|
Expensed
|
Total
|
Exploration projects
- greenfield
|
$
|
2
|
$
|
17
|
$
|
19
|
$
|
-
|
$
|
25
|
$
|
25
|
Exploration projects
- brownfield1
|
9
|
11
|
20
|
11
|
11
|
22
|
Exploration
Projects
|
11
|
28
|
39
|
11
|
36
|
47
|
Feasibility and other
studies
|
2
|
3
|
5
|
9
|
6
|
15
|
|
|
|
|
|
|
|
Total
Exploration
|
$
|
13
|
$
|
31
|
$
|
44
|
$
|
202
|
$
|
42
|
$
|
62
|
|
1 Excludes
expenditures related to Joint Ventures of $1 million for 2016
Actual and $2 million for 2017 Plan, and includes near mine and
resource exploration of $9 million for 2016 Actual and $11 million
for 2017 Plan.
|
2 The
capitalized portion of the 2017 Plan of $20 million is included in
our capital spending guidance of $250 million ± 5%.
|
CONFERENCE CALL
A conference call will be held
on Thursday, February 23, 2017 at 8:30 a.m. (Eastern
Standard Time) for a discussion with management regarding
IAMGOLD`s 2016 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 International Number: 1-604-638-5340.
A replay of this conference call will be accessible for one
month following the call by dialing: North
America toll-free: 1-800-319-6413 or International
Number: 1-604-638-9010, passcode: 1091#.
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 "2017 Production and
Cost Guidance, 2017 Capital Expenditure Guidance and 2017
Exploration Plan", 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