A Year of Achievements Sets the Stage for
Growth
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, 2016 for more
information.
TSX: IMG NYSE: IAG
TORONTO, Feb. 22, 2017 /CNW/ - IAMGOLD
Corporation ("IAMGOLD" or the "Company") reported its
consolidated financial and operating results for the quarter and
year ended December 31, 2016.
"We had an excellent year," said Steve
Letwin, President and CEO of IAMGOLD. "Operating results
were strong, with all of our mines exceeding production guidance
and costs benefiting from significant performance improvement
initiatives. Operating cash flow increased by 721%, gold margins
rose by 56% and we ended the year with $763
million in cash. Throughout the year, we achieved objectives
that set the stage for our growth opportunities today and in the
future. We signed an agreement to acquire the rights to the
Saramacca property in Suriname, and recently reported drilling
results indicating significant mineralization. At Sadiola, we made
a decision to proceed with the expansion as soon as our agreements
with the government are finalized. At Essakane, we expect to
delineate a resource for the eastern portion of the Falagountou
deposit. And at Westwood, the team
has done outstanding work to achieve aggressive ramp-up targets.
These accomplishments form the backbone of a plan to extend the
life of our mines, lower our cost structure, and grow production by
25% over the next four years.
"Further out, we have solid growth options in our own backyard.
Following positive government decisions on environmental
assessments for Côté Gold and a positive preliminary economic
assessment, we expect to complete a pre-feasibility study by the
end of the second quarter. Additionally, we have exploration
projects with declared resources and others fast approaching that
stage."
2016 Highlights
- Attributable gold production of 813,000 oz exceeded top end of
guidance; up 7,000 oz from 2015.
- Production at all sites exceeded top end of guidance
ranges.
- Cost of sales1 of $794/oz sold, a new measure added in 2016,
$111/oz lower than 2015.
- All-in sustaining costs2 of $1,057/oz sold, at low end of guidance and
$61/oz lower than 2015.
- Total cash costs2 of $739/oz produced, below guidance and $96/oz lower than 2015.
- Gross profit of $102.2 million,
up $156.8 million from 2015.
- Gold margin2 of $505/oz, up $182/oz
from 2015.
- Net earnings of $52.6 million
($0.13 per share), up $849.7 million ($2.17 per share) from 2015.
- Adjusted net earnings from continuing operations2 of
$3.9 million ($0.01 per share2), up $173.9 million ($0.45 per share) from 2015.
- Net cash from operating activities of $314.4 million, up $276.1
million from 2015.
- Cash, cash equivalents and restricted cash of $762.7 million as at December 31, 2016.
- Established a $250 million
revolving credit facility; with commitments of $170 million.
- Subsequent to year end, amended the credit facility adding
$80 million of additional commitments
resulting in total commitments of $250
million, with similar terms and conditions.
- Completed $230 million (gross
proceeds) equity financing to strengthen balance sheet, reduce debt
and fund organic growth, including the expansion of Sadiola.
- Purchased $145.9 million (face
value) of outstanding senior unsecured notes.
- Sold gold bullion for proceeds of $170.3
million; realizing a $72.9
million gain after transaction costs.
- Issued flow-through shares for total proceeds of $43.6 million.
- Finalized agreement with Government of Suriname to acquire the
rights to the Saramacca property, and expect to complete an initial
mineral resource estimate by Q3 2017.
- Subsequent to year end, announced assay results for the 2016
drilling program at Saramacca. Highlights included: 4.31 g/t Au
over 101.0 metres; 3.98 g/t Au over 78.0 metres, 5.22 g/t Au over
46.5 metres and 4.78 g/t Au over 24.0 metres.
- Announced intention to move ahead with Sadiola Sulphide Project
contingent upon Government of Mali's renewal of operating and construction
permits, power agreement and fiscal terms.
- Achieved ramp-up targets at Westwood, including 25 km of underground
development.
- Signed definitive agreement with Merrex Gold to acquire, in an
all-share transaction, all issued and outstanding shares not
already owned by IAMGOLD; transaction expected to close Q1
2017.
- Subsequent to year end, announced results of a Preliminary
Economic Assessment setting out a potential alternative development
scenario for the Côté Gold project, and a positive decision on the
provincial environmental assessment, which followed a positive
decision on the federal environmental assessment in April 2016.
- On February 16, 2017, INV Metals
Inc. ("INV Metals") announced a C$27.6
million bought deal financing, including a C$3.6 million over-allotment option, for
advancing the development of the Loma Larga project in Ecuador and for general corporate purposes.
Our intent is to maintain our existing equity ownership interest of
35.6% in INV Metals.
SUMMARY OF
FINANCIAL AND OPERATING RESULTS
|
|
|
|
|
Three months
ended
December 31,
|
Years ended
December 31,
|
Financial Results
($ millions, except where noted)
|
2016
|
2015
|
2016
|
2015
|
Continuing
Operations
|
|
|
|
|
Revenues
|
$
|
252.5
|
$
|
238.2
|
$
|
987.1
|
$
|
917.0
|
Cost of
sales
|
$
|
233.4
|
$
|
283.5
|
$
|
884.9
|
$
|
971.6
|
Gross
profit
|
$
|
19.1
|
$
|
(45.3)
|
$
|
102.2
|
$
|
(54.6)
|
Net earnings (loss)
from continuing operations attributable to equity holders of
IAMGOLD
|
$
|
(5.3)
|
$
|
(675.9)
|
$
|
52.6
|
$
|
(797.1)
|
Net earnings (loss)
from continuing operations attributable to equity holders of
IAMGOLD per share ($/share)
|
$
|
(0.01)
|
$
|
(1.73)
|
$
|
0.13
|
$
|
(2.04)
|
Adjusted net earnings
(loss) from continuing operations attributable to equity holders of
IAMGOLD1
|
$
|
3.3
|
$
|
(62.8)
|
$
|
3.9
|
$
|
(170.0)
|
Adjusted net earnings
(loss) from continuing operations attributable to equity holders
per share ($/share)1
|
$
|
0.01
|
$
|
(0.16)
|
$
|
0.01
|
$
|
(0.44)
|
Net cash from (used
in) operating activities
|
$
|
65.2
|
$
|
(37.3)
|
$
|
314.4
|
$
|
38.3
|
Net cash from (used
in) operating activities before changes in working
capital1
|
$
|
63.3
|
$
|
(59.9)
|
$
|
290.1
|
$
|
79.5
|
Net earnings from
discontinued operations attributable to equity holders of
IAMGOLD
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
41.8
|
Net earnings from
discontinued operations attributable to equity holders of IAMGOLD
($/share)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
0.11
|
Key Operating
Statistics
|
|
|
|
|
Gold sales –
attributable (000s oz)
|
218
|
219
|
808
|
808
|
Gold production –
attributable (000s oz)
|
215
|
199
|
813
|
806
|
Average realized gold
price1 ($/oz)
|
$
|
1,190
|
$
|
1,101
|
$
|
1,244
|
$
|
1,158
|
Cost of
sales2 ($/oz)
|
$
|
784
|
$
|
1,019
|
$
|
794
|
$
|
905
|
Total cash
costs1 ($/oz)
|
$
|
740
|
$
|
825
|
$
|
739
|
$
|
835
|
All-in sustaining
costs1 ($/oz)
|
$
|
995
|
$
|
1,202
|
$
|
1,057
|
$
|
1,118
|
Gold
margin1 ($/oz)
|
$
|
450
|
$
|
276
|
$
|
505
|
$
|
323
|
|
1
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A.
|
2
|
Cost of sales,
excluding depreciation, as disclosed in note 35 of the Company's
annual consolidated financial statements on an attributable ounce
sold basis (excluding the non-controlling interests of 10% at
Essakane and 5% at Rosebel) does not include Joint Ventures which
are accounted for on an equity basis.
|
FULL YEAR AND FOURTH QUARTER 2016
HIGHLIGHTS
Financial Performance
- Revenues from continuing operations for 2016 were $987.1 million, up $70.1
million or 8% from the prior year primarily due to a higher
realized gold price ($67.8 million)
and higher sales volume at Westwood ($4.5
million), partially offset by lower sales volume at Rosebel
($3.6 million). Revenues from
continuing operations for the fourth quarter 2016 were $252.5 million, up $14.3
million or 6% from the same prior year period due to higher
sales volume at Rosebel and Westwood ($20.4
million) and a higher realized gold price ($18.9 million), partially offset by lower sales
volume at Essakane ($25.5
million).
- Cost of sales from continuing operations for 2016 was
$884.9 million, down $86.7 million or 9% from the prior year. The
decrease was primarily the result of lower operating costs
($91.8 million), partially offset by
higher royalty expense due to a higher realized gold price
($4.7 million). Operating costs were
lower primarily due to higher capitalized stripping at Essakane,
lower realized fuel prices, lower inventory write-downs, the
devaluation of the Surinamese dollar relative to the U.S. dollar,
lower labour costs at Rosebel following workforce reductions in
2015, lower realized derivative losses and the stronger U.S. dollar
relative to the Canadian dollar and the Euro, partially offset by
higher fuel consumption at Essakane.
- Cost of sales from continuing operations for the fourth quarter
2016 was $233.4 million, down
$50.1 million or 18% from the same
prior year period. The decrease was primarily the result of lower
operating costs ($55.0 million),
partially offset by higher depreciation expense ($4.3 million). Operating costs were lower
primarily due to lower inventory write-downs, higher capitalized
stripping and lower realized fuel prices at Essakane, the
devaluation of the Surinamese dollar relative to the U.S. dollar
and lower realized derivative losses, partially offset by the
timing of mill maintenance at Rosebel, higher fuel consumption at
Essakane and Rosebel, and higher realized fuel prices at
Rosebel.
- Depreciation expense for 2016 was $261.3
million, which was comparable to $260.9 million in the prior year primarily due to
higher production and lower reserves at Rosebel and the timing of
capital additions, partially offset by lower amortization of
capitalized stripping at Essakane. Depreciation expense for the
fourth quarter 2016 was $68.2
million, up $4.3 million from
the same prior year period primarily due to the timing of capital
additions and higher production at Rosebel, partially offset by
lower amortization of capitalized stripping at Essakane.
- Income tax expense from continuing operations for 2016 was
$33.4 million, up $21.9 million from the prior year. The income tax
expense for 2016 comprised current income tax expense of
$21.7 million (2015 - $30.4 million) and deferred tax expense of
$11.7 million (2015 - deferred tax
recovery of $18.9 million). The
increase in income tax expense in 2016 was primarily due to
differences in the level of taxable income in our operating
jurisdictions from one period to the next and to 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 2016 was $52.6 million or
$0.13 per share, up $849.7 million or $2.17 per share from 2015. The increase was
mainly due to impairment charges in the fourth quarter 2015
($621.3 million), lower cost of sales
($86.7 million), gain on sale of gold
bullion ($72.9 million), higher
revenues ($70.1 million), lower
realized derivative losses($43.7
million) and revisions to asset retirement obligation
estimates at closed sites ($13.4
million), partially offset by higher income tax expense
($21.9 million) and a gain on the
sale of the Diavik royalty asset in 2015 ($43.5 million). The net loss from continuing
operations attributable to equity holders for the fourth quarter
2016 was $5.3 million, down
$670.6 million or 99% from the same
prior year period. The decrease was mainly due to impairment
charges in the fourth quarter 2015 ($621.3
million), lower cost of sales ($50.1
million), higher revenues ($14.3
million) and revisions to asset retirement obligation
estimates at closed sites ($12.2
million), partially offset by higher income tax expense
($24.0 million).
- Adjusted net earnings from continuing operations attributable
to equity holders2 for 2016 was $3.9 million ($0.01
per share2), up from an adjusted net loss of
$170.0 million ($0.44 per share2) for the prior year.
Adjusted net earnings from continuing operations attributable to
equity holders2 for the fourth quarter 2016 was
$3.3 million ($0.01 per share2), up from an adjusted
net loss of $62.8 million
($0.16 per share2) for the
same prior year period.
- Net cash from operating activities for 2016 was $314.4 million, up $276.1
million from 2015. The increase was mainly due to lower net
settlement of derivatives ($118.8
million), higher earnings after non-cash adjustments
($103.7 million) and a change in the
movement of non-cash working capital ($65.5
million). Net cash from operating activities for the fourth
quarter 2016 was $65.2 million, up
$102.5 million from the same prior
year period, primarily due to the reasons noted above.
- Net cash from operating activities before changes in working
capital2 for 2016 was $290.1
million, up $210.6 million
from 2015. Net cash from operating activities before changes in
working capital2 for the fourth quarter 2016 was
$63.3 million, up $123.2 million from the same prior year
period.
Financial Position
- Cash, cash equivalents and restricted cash were $762.7 million as at December 31, 2016, up $205.6 million from December 31, 2015. The increase was due to cash
generated from operating activities ($314.4
million), net proceeds from an equity financing
($220.1 million), proceeds from the
sale of gold bullion ($170.3
million), and proceeds from the issuance of flow-through
shares ($43.6 million), partially
offset by spending on Property, plant and equipment and Exploration
and evaluation assets ($273.6
million), repurchase of senior unsecured notes ($141.5 million), repayment of the credit facility
($70.0 million), interest paid
($41.9 million) and income taxes paid
($16.3 million).
Production and Costs
- Attributable gold production, inclusive of joint venture
operations, for 2016 was 813,000 ounces, up 7,000 ounces from 2015.
The increase was due to higher grades and throughput at Rosebel
(9,000 ounces), higher grades at Westwood (5,000 ounces) and higher grades at
Sadiola (1,000 ounces), partially offset by lower grades and
recoveries at Essakane (6,000 ounces) and the closure of Yatela
(2,000 ounces). Attributable gold production, inclusive of joint
venture operations, for the fourth quarter 2016 was 215,000 ounces,
up 16,000 ounces from the same prior year period. The increase was
due to higher grades and throughput at Rosebel (13,000 ounces) and
higher grades and recoveries at Westwood (5,000 ounces), partially offset by
lower recoveries at Essakane (2,000 ounces).
- Attributable gold sales, inclusive of joint venture operations,
for 2016 were 808,000 ounces, which was consistent with the prior
year primarily as a result of higher sales at Westwood (3,000 ounces), offset by lower sales
at Rosebel (3,000 ounces).
- Cost of sales per ounce sold for the full year and fourth
quarter 2016 was $794 and
$784, respectively, down 12% and 23%
from the same prior year periods due to the factors noted in the
cost of sales discussion under the Financial Performance section
above.
- Total cash costs per ounce produced were $739 in 2016, 11% lower than 2015. The decrease
was mainly due to higher capitalized stripping at Essakane, lower
realized fuel prices, the devaluation of the Surinamese dollar
relative to the U.S. dollar, lower labour costs at Rosebel
following workforce reductions in 2015, lower realized derivative
losses and higher production at Rosebel. Total cash costs for the
fourth quarter 2016 were $740 per
ounce, down 10% from the same prior year period. The decrease was
due to higher capitalized stripping at Essakane, lower realized
fuel prices and lower costs at Rosebel due to the devaluation of
the Surinamese dollar relative to the U.S. dollar and lower
realized derivative losses, partially offset by higher operating
costs at the Joint Ventures. Included in total cash costs were:
- Reductions of $32 per ounce for
2016 ($35/oz for 2015) and
$44/oz for the fourth quarter 2016
($39/oz for Q4 2015) for the
normalization of costs and revised ramp-up at Westwood.
- Realized derivative losses of $1
per ounce for 2016 ($55/oz for 2015)
and nil for the fourth quarter 2016 ($58/oz for Q4 2015).
- All-in sustaining costs per ounce sold were $1,057 in 2016, 5% lower than 2015 as a result of
lower cost of sales, partially offset by higher sustaining capital
expenditures. Fourth quarter 2016 all-in sustaining costs were
$995 per ounce, 17% lower than the
fourth quarter 2015, primarily due to lower cost of sales and lower
sustaining capital expenditures. Included in all-in sustaining
costs were:
- Reductions of $33 per ounce for
2016 ($35/oz for 2015) and
$43 per ounce for the fourth quarter
2016 ($36/oz for Q4/15) for the
normalization of costs and revised ramp-up at Westwood.
- Realized derivative losses of $1
per ounce sold for 2016 ($63/oz for
2015) and $nil for the fourth quarter 2016 ($59/oz for Q4/15).
- All-in sustaining costs for 2015 also included the impact from
the purchase of assets held under finance leases at Rosebel, which
increased all-in sustaining costs for the full year 2015 by
$33 per ounce sold and for the fourth
quarter by $123 per ounce.
Commitment to Zero Harm Continues
- In 2016, we achieved record health and safety performance as
measured by the frequency of all types of serious injuries (DART
rate3 ). The rate of 0.30 for 2016 was better than our
target of 0.62 and an improvement from 0.67 in 2015. Unfortunately,
our health and safety performance was affected by a fatality in the
third quarter 2016, the result of an accident involving personnel
transport buses in Burkina
Faso.
2017 GUIDANCE
Refer to the
January 16, 2017 news release and
annual MD&A for more detail.
Attributable Gold Production 845,000
to 885,000 oz
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 in 2016. At Rosebel, higher
grades and improving productivity are expected to 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.
Costs
Cost of
Sales/oz
|
$765 -
$815
|
Total Cash
Costs/oz
|
$740 -
$780
|
All-in Sustaining
Costs/oz
|
$1,000 -
$1,080
|
The cost of sales measure, which is used to monitor the
performance of the Company, was added in the fourth quarter 2016 to
provide additional operational guidance. Our cost guidance for 2017
reflects our assumptions related to oil prices and foreign exchange
and our expectation that we will sustain performance optimization
initiatives across the sites, while recognizing that an increasing
proportion of harder rock at Rosebel and Essakane is expected to
exert greater demand on crushing and grinding capacity, thereby
increasing the consumption of energy and reagents.
Capital Expenditures $250 million ±5%
Of the $250 million, $175 million is sustaining capital and
$75 million development capital.
Sustaining capital includes capitalized stripping for Essakane
($39 million) and Rosebel
($28 million) and $51 million for capital spares and equipment at
these operations. Of the development/expansion capital,
$45 million is for underground
development work at Westwood and
$10 million is to advance the Sadiola
Sulphide Project, including completing an optimization study to
refine project economics. Capital expenditures for new construction
are not included in our guidance for Sadiola at this time. We
plan to move forward once the Government of Mali renews construction and operating
permits, the power agreement and fiscal terms related to the
project. Once the timing of project commencement is known, guidance
for Sadiola will be adjusted accordingly.
Exploration Projects $47 million
The $47 million includes
exploration work at the Saramacca project near Rosebel, the
drilling of saddle zones between the pits at Rosebel and highly
prospective targets at Essakane. As we advance projects this year,
we will be targeting initial resource estimates for Saramacca, the
Monster Lake project in Quebec and
the Eastern Borosi project in Nicaragua. Of the $47
million in exploration expenditures, $20 million will be capitalized and is included
in the $250 million in anticipated
capital expenditures for the year.
Depreciation $260
million to $270 million
The expected depreciation expense for 2017 is consistent with
2016.
Income Taxes $35 million to $45 million
We expect to pay cash taxes of between $35 million and $45 million in 2017. In addition,
adjustments to deferred tax assets and/or liabilities may be
recorded during the year.
ATTRIBUTABLE GOLD
PRODUCTION AND COSTS
|
|
|
|
|
|
|
Gold
Production
(000s
oz)
|
Cost of
Sales1
($ per ounce
sold)
|
Total Cash
Costs3
($ per ounce
produced)
|
All-in
Sustaining
Costs3
($ per ounce sold)
|
Three months
ended
December 31,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
Owner-operator
|
|
|
|
|
|
|
|
|
Essakane
(90%)
|
96
|
98
|
$
|
725
|
$
|
983
|
$
|
686
|
$
|
802
|
$
|
948
|
$
|
1,024
|
Rosebel
(95%)
|
83
|
70
|
710
|
943
|
667
|
812
|
799
|
1,420
|
Westwood
(100%)2
|
18
|
13
|
1,452
|
1,963
|
880
|
995
|
1,281
|
1,265
|
|
197
|
181
|
$
|
784
|
$
|
1,019
|
695
|
820
|
966
|
1,218
|
Joint
Ventures
|
18
|
18
|
|
|
1,231
|
877
|
1,265
|
1,043
|
Total
operations
|
215
|
199
|
|
|
$
|
740
|
$
|
825
|
$
|
995
|
$
|
1,202
|
Cost of
sales1 ($/oz)
|
|
|
$
|
784
|
$
|
1,019
|
|
|
|
|
Cash costs, excluding
royalties
|
|
|
|
|
$
|
686
|
$
|
771
|
|
|
Royalties
|
|
|
|
|
54
|
54
|
|
|
Total cash
costs3
|
|
|
|
|
$
|
740
|
$
|
825
|
|
|
All-in sustaining
costs3
|
|
|
|
|
|
|
$
|
995
|
$
|
1,202
|
|
|
1
|
Cost of sales,
excluding depreciation, as disclosed in note 35 of the Company's
annual consolidated financial statements on an attributable ounce
sold basis (excluding the non-controlling interests of 10% at
Essakane and 5% at Rosebel) does not include Joint Ventures which
are accounted for on an equity basis.
|
2
|
Cost of sales per
ounce sold for Westwood does not consider the impact of
normalization of costs and revised ramp-up for the fourth quarter
2016 of $518 per ounce (fourth quarter 2015 - $826).
|
3
|
This is a non-GAAP
measure. Refer to the non-GAAP performance measures section of the
MD&A. Consists of Essakane, Rosebel, Westwood and the Joint
Ventures on an attributable basis.
|
|
|
|
|
|
|
Gold
Production
(000s oz)
|
Cost of
Sales1
($ per ounce
sold)
|
Total Cash
Costs3 ($ per ounce
produced)
|
All-in
Sustaining
Costs3
($ per ounce sold)
|
Years
ended
December
31,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
Owner-operator
|
|
|
|
|
|
|
|
|
Essakane
(90%)
|
377
|
383
|
$
|
716
|
$
|
836
|
$
|
668
|
$
|
808
|
$
|
977
|
$
|
1,010
|
Rosebel
(95%)
|
296
|
287
|
768
|
860
|
729
|
849
|
988
|
1,165
|
Westwood
(100%)2
|
65
|
60
|
1,324
|
1,467
|
894
|
1,001
|
1,182
|
1,292
|
|
738
|
730
|
$
|
794
|
$
|
905
|
712
|
840
|
1,056
|
1,145
|
Joint
Ventures
|
75
|
76
|
|
|
996
|
787
|
1,067
|
862
|
Total
operations
|
813
|
806
|
|
|
$
|
739
|
$
|
835
|
$
|
1,057
|
$
|
1,118
|
Cost of
sales1 ($/oz)
|
|
|
$
|
794
|
$
|
905
|
|
|
|
|
Cash costs, excluding
royalties
|
|
|
|
|
$
|
683
|
$
|
784
|
|
|
Royalties
|
|
|
|
|
56
|
51
|
|
|
Total cash
costs3
|
|
|
|
|
$
|
739
|
$
|
835
|
|
|
All-in sustaining
costs3
|
|
|
|
|
|
|
$
|
1,057
|
$
|
1,118
|
|
|
1
|
Cost of sales,
excluding depreciation, as disclosed in note 35 of the Company's
annual consolidated financial statements on an attributable ounce
sold basis (excluding the non-controlling interests of 10% at
Essakane and 5% at Rosebel) does not include Joint Ventures which
are accounted for on an equity basis.
|
2
|
Cost of sales per
ounce sold for Westwood does not consider the impact of
normalization of costs and revised ramp-up for the year ended 2016
of $385 per ounce (year ended 2015 - $436).
|
3
|
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 annual MD&A for further
details.)
Essakane Mine - Burkina Faso
(IAMGOLD interest - 90%)
Attributable gold production for the fourth quarter and full
year 2016 was 96,000 and 377,000 ounces, respectively, compared to
98,000 and 383,000 ounces in the same prior year periods.
Production was lower than the prior year primarily due to lower
recoveries resulting from higher graphite content in the ore, and
lower grades, partially offset by higher throughput. Mill
throughput in the fourth quarter was 7% higher than the same prior
year period despite an increase in the proportion of hard rock to
65% from 60% in the same prior year period.
Cost of sales per ounce sold for the fourth quarter and full
year 2016 was $725 and $716, respectively, compared to $983 and $836 in
same prior year periods. The decreases of 26% and 14% were
primarily due to lower inventory write-downs, higher capitalized
stripping, lower realized derivative losses, lower realized fuel
prices, lower mine consumables driven by lower tonnes mined, the
stronger U.S. dollar relative to the Euro, lower royalties driven
by lower sales impacting the fourth quarter 2016, partially offset
by higher fuel consumption from mining at Falagountou, and an
increase in fleet maintenance costs from mining harder rock.
All-in sustaining costs per ounce sold for the fourth quarter
and full year 2016 were $948 and
$977, respectively, compared to
$1,024 and $1,010 in the same prior year periods. The
decreases of 7% and 3% from the same prior year periods were
primarily due to lower cost of sales, partially offset by higher
sustaining capital expenditures, including an increase in
capitalized stripping. Included in all-in sustaining costs for the
fourth quarter and full year 2015 was the impact of realized
derivative losses of $55 and
$75 per ounce sold, respectively.
2017 Outlook
During 2016, Essakane completed several initiatives to improve
operating performance. The commissioning of an intensive leach
reactor in Q2 2016 will further improve recoveries and a
geometallurgical study to improve gold recoveries when processing
ore with high graphite content is expected to be completed in Q2
2017. To increase the amount of salable gold, a carbon fines
treatment plant was commissioned in Q2 2016 to allow for the
processing of carbon fines material at the site.
Essakane will continue optimizing production, lowering unit
costs and increasing mining and milling efficiencies at higher
proportions of hard rock in the mill feed. Initiatives include
optimization of the grinding circuit and the addition of an oxygen
plant to improve recoveries.
In 2017, attributable production is expected to range between
370,000 and 380,000 ounces.
Rosebel Mine - Suriname (IAMGOLD interest - 95%)
Attributable gold production for the fourth quarter and full
year 2016 was 83,000 ounces and 296,000 ounces, respectively,
compared to 70,000 ounces and 287,000 ounces in the same prior year
periods. Production was higher in 2016 primarily due to higher
grades and throughput, partially offset by lower recoveries. Mill
throughput and production during the fourth quarter 2015 were
impacted by an 11 day work stoppage in December.
Cost of sales per ounce sold for the fourth quarter 2016 was
$710 compared to $943 in the same prior year period. The decrease
of 25% was primarily due to lower inventory write-downs and the
devaluation of the Surinamese dollar relative to the U.S. dollar,
partially offset by the timing of mill maintenance, higher realized
fuel prices, higher fuel consumption, and higher contractor
costs.
Cost of sales per ounce sold for 2016 was $768 compared to $860 in the prior year. The decrease of 11% was
primarily due to the devaluation of the Surinamese dollar relative
to the U.S. dollar, lower inventory write-downs, lower realized
fuel prices and lower labour costs following the 2015 workforce
reductions, partially offset by higher contractor costs.
All-in sustaining costs per ounce sold for the fourth quarter
and full year 2016 were $799 and
$988, respectively, compared to
$1,420 and $1,165 in the same prior year periods. The
decreases of 44% and 15% compared to the same prior year periods
were primarily due to lower sustaining capital expenditures and
lower cost of sales. Included in all-in sustaining costs for the
fourth quarter and full year 2015 was the impact of the purchase of
assets held under finance leases of $382 and $94 per
ounce sold, respectively, and the impact of realized derivative
losses of $58 and $46 per ounce.
During the fourth quarter 2016, we finalized an agreement with
the Government of Suriname to acquire the rights to Saramacca, a
property with high potential for soft rock mineralization located
approximately 25 kilometres from the Rosebel mill. An initial
diamond drilling program commenced at the end of the third quarter
2016 to validate historical mineral resources. Final assay results
from the 2016 drilling program were reported subsequent to the year
end. Highlights include 4.31 g/t Au over 101.0 metres, 3.98 g/t Au
over 78.0 metres, 5.22 g/t Au over 46.5 metres and 4.78 g/t Au over
24.0 metres (see news release dated February
13, 2017). Delineation drilling is expected to continue
throughout 2017 with the objective to complete an initial mineral
resource estimate by Q3 2017.
2017 Outlook
Mill throughput in 2017 is expected to decrease relative to 2016
as the proportion of hard rock milled continues to increase. To
manage the increasing proportions of hard rock in the mill feed,
Rosebel made three major mill improvements in 2016: commissioning
of a secondary crusher to increase the grinding capacity of hard
rock, installation of a power flex drive to increase torque
capacity in the SAG mill, and a new liner design in the grinding
circuit. As well, the metallurgical improvements to elution, carbon
management and gravity optimization are on-going and will continue
to help reduce gold inventory in circuit. Rosebel will continue to
optimize mining capacity by improving blast fragmentation, and to
improve loading and hauling efficiency while reducing costs through
improved fuel and tire management. Despite levels of hard rock
expected to approach 70% this year from 26% in the fourth quarter
2016, we expect that grade improvements and the impact of these
initiatives will enable Rosebel to deliver on its 2017 production
and cost targets. Rosebel expects attributable production in 2017
to be in the range of 295,000 to 305,000 ounces.
Westwood Mine - Canada
(IAMGOLD Interest - 100%)
Gold production in the fourth quarter and full year 2016 was
18,000 and 65,000 ounces, respectively, compared to 13,000 and
60,000 ounces in the same prior year periods. Production was higher
primarily due to the continued ramp-up and higher grades, partially
offset by lower throughput.
Underground development continued throughout 2016 to open up
access to new mining areas, with lateral and vertical development
of over 5,800 and 800 metres for the fourth quarter, and 22,700 and
2,000 metres for 2016, respectively. Development work continues to
be on target with lateral development averaging 74 metres per day.
The rehabilitation work related to reopening the 104 mining block
has been completed, including all of the bypass 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.
Cost of sales per ounce sold for the fourth quarter and full
year 2016 was $1,452 and $1,324, respectively, compared to $1,963 and $1,467
in the same prior year periods. The decrease of 26% for the fourth
quarter 2016 was primarily due to higher sales. The decrease of 10%
for 2016 was primarily due to the stronger U.S. dollar relative to
the Canadian dollar and higher sales.
Total cash costs per ounce produced for the fourth quarter and
full year 2016 were $880 and
$894, respectively, compared to
$995 and $1,001 in the same prior year periods. Total
all-in sustaining costs per ounce sold for the fourth quarter and
full year 2016 were $1,281 and
$1,182, respectively, compared to
$1,265 and $1,292 in the same prior year periods. In
accordance with International Financial Reporting Standards, costs
attributed to inventory for the fourth quarter and full year 2016
were reduced by $9.4 million and
$26.4 million, respectively, to
normalize for the amount of fixed overhead on a per unit basis as a
consequence of abnormally low production. As a result, total cash
costs and all-in sustaining costs for the fourth quarter 2016 were
reduced by $551 per ounce produced
and $518 per ounce sold,
respectively, and for the full year 2016 by $409 per ounce produced and $385 per ounce sold.
The Company expects to discontinue normalizing total cash costs
and all-in sustaining costs for Westwood during the first quarter of 2017,
when Westwood is expected to
resume operating at normal production levels.
2017 Outlook
Westwood's production in 2017
is expected to range between 115,000 and 125,000 ounces, which is
nearly double that of 2016. We expect to be operating at commercial
levels of production in 2017 from three of the five planned mining
blocks, including the zone where remedial work was completed in
2016. With a focus on development activities in the production and
expansion blocks, we expect to deliver on our 2017 production and
cost targets while continuing to ramp up to full production by
2020. We expect to complete approximately 17 kilometres of lateral
development and 3 kilometres of vertical development in 2017.
Sadiola Mine - Mali (IAMGOLD
interest - 41%)
Attributable gold production for the fourth quarter and full
year 2016 of 16,000 and 70,000 ounces, respectively, was consistent
with the same prior year periods as higher grades were offset by
lower throughput.
All-in sustaining costs per ounce for the fourth quarter and
full year 2016 were $1,297 and
$1,042, respectively, compared with
$1,010 and $839 in the same prior year periods.
Although the cost of inputs, including fuel, contractor costs
and other consumables, were lower in the fourth quarter and full
year 2016 than in the same prior year periods, the processing of a
higher proportion of ore stockpiles in 2016 versus 2015 when more
marginal ore was processed, resulted in higher cash costs
quarter-over-quarter and year-over-year. This is because the
marginal ore would have been expensed as waste mined in prior years
compared to the expensing of ore stockpiles in the same period it
is processed.
With respect to the Sadiola Sulphide Project, an optimization
study is being completed to refine project economics and we intend
to commence construction upon the Government of Mali renewing construction and operating
permits, the power agreement and fiscal terms related to the
project. We expect Sadiola to continue mining oxides into early
2018 and processing oxides into early 2019.
EXPLORATION
(Refer to the annual MD&A for
further details.)
In 2016, we spent $44.0 million on
exploration and project studies, of which $31.7 million was expensed and $12.3 million capitalized. This compared to
$48.5 million in the previous year.
The following summarizes the status of our most advanced
projects:
Wholly-Owned Projects
Boto - Senegal
During
2016, we completed diamond drilling at the Malikoundi deposit to
target mineralization in the footwall not completely drilled out in
previous campaigns and to test for potential extensions along
strike to the north. We reported initial drill assay results
confirming wider intervals of mineralization in the footwall and
the extension of high grade mineralization along strike to the
north of the deposit. Highlights included: the intersection of 32.0
metres grading 5.19 g/t Au in the footwall; and intersections of
12.0 metres grading 6.39 g/t Au and 22.0 metres grading 4.04 g/t Au
north of the deposit (see news release dated September 15, 2016). As remaining drill results
from 2016 are received and validated, they will be incorporated
into a revised geological model to support an updated resource
estimate in 2017. During 2017, further drilling will focus on
expanding the current mineral resource and identifying additional
satellite zones. We plan to continue technical and environmental
studies to advance the economic evaluation of the project.
Pitangui - Brazil
During 2016, diamond drilling
tested targets along strike to the southeast and southwest of the
São Sebastião deposit having similar electromagnetic signatures and
corresponding geochemical soil anomalies to that of the São
Sebastião deposit. To date, drilling has confirmed the presence of
rock units similar to those hosting the São Sebastião deposit,
which could potentially host additional mineralization. In
addition, work commenced on various technical and environmental
studies to advance the economic evaluation of the project. Diamond
drilling will continue in 2017 to explore and expand the current
resource base.
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.)
The Siribaya exploration
project is operated by IAMGOLD under a 50:50 joint venture with
Merrex Gold Inc. ("Merrex"). On December 22,
2016, we signed a definitive agreement with Merrex to
acquire, in an all-share transaction, all of the issued and
outstanding shares of Merrex not already owned by IAMGOLD (see news
release dated December 22, 2016). The
transaction is expected to close in the first quarter of 2017.
During 2016, diamond and reverse circulation drilling was
completed to increase confidence in the mineralized zones at the
Diakha deposit, extend the deposit at depth below the current
resource pit shell, and test for the potential northern strike
extension of the Diakha deposit. Reported assay results included:
the intersections 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). Initial
wide-spaced, reverse circulation drilling along the northern strike
extension confirmed the presence of gold mineralization highlighted
by the intersection of 70.0 metres grading 1.55 g/t Au, including
12.0 metres grading 2.79 g/t Au (see Merrex news release dated
July 6, 2016). Drilling in 2017 will
focus on increasing the confidence in the current Diakha resources
and delineating mineralization northward along strike and at depth.
The results will be used to update the mineral resources in
2017.
Monster Lake - Canada
(Option Agreement with TomaGold Corporation)
A winter
drilling program ended in April 2016
with the completion of just over 8,100 metres of diamond drilling
targeting the Monster Lake Shear Zone ("MLSZ"), which is host to
the 325-Megane zone. Results reported included 1.2 metres grading
20.16 g/t Au; 0.7 metres grading 9.01 g/t Au and 5.5 metres grading
2.68 g/t Au. This last hole is interpreted to have intersected a
new, second zone along the MLSZ structure in an area located 200 to
400 metres to the north of the 325-Megane zone (see news release
dated June 15, 2016), and requires
additional drilling. Exploration activities continued throughout
the latter portion of the year and involved geological and
structural mapping, limited trenching and select geochemical
surveys elsewhere on the property and in the immediate vicinity of
the 325-Megane zone. The accumulated results and mapping programs
will guide the next diamond drilling program expected to continue
in 2017 to better define and extend the known mineralization along
the MLSZ, with the objective to estimate an initial mineral
resource during the year.
Nelligan - Canada (Option
Agreement with Vanstar Mining Resources Inc.)
In the first
half of 2016, we completed 4,500 metres of diamond drilling
targeting extensions to known zones (Liam and Dan zones) and
testing nearby Induced Polarization ("IP") anomalies. Initial
results have identified the discovery of a new zone of gold
mineralization coincident with an IP anomaly located immediately
north of the known zones. Initial assay results (see Vanstar news
release dated April 5, 2016) have
confirmed intersections from the new discovery area with up to 35.8
metres grading 1.90 g/t Au from 138.0 metres depth, including 18.0
metres grading 3.20 g/t Au; and 23.0 metres grading 1.23 g/t Au
from 229.0 metres depth, including 10.3 metres grading 2.02 g/t Au
from 238.5 metres depth within a wide zone of altered
metasedimentary rocks with numerous gold bearing intervals.
Activities during the fourth quarter 2016 included the completion
of an additional 5 drill holes totaling approximately 2,200 metres
of diamond drilling to evaluate a newly discovered mineralized gold
zone. The results are pending, and when received and validated will
be used to guide further drill targeting that is expected to
continue in 2017.
Eastern Borosi - Nicaragua
(Option Agreement with Calibre Mining Corporation)
During
2016, diamond drilling tested selected gold-silver vein systems.
Encouraging assay results were reported by Calibre from a number of
vein systems, including: 5.6 metres grading 11.13 g/t Au and 13.7
g/t Ag from the Main Blag vein system (see Calibre news release
dated July 26, 2016), and
intersections of 15.4 metres grading 1.21 g/t Au and 120.9 g/t Ag
and 16.5 metres grading 2.27 g/t Au and 127.9 g/t Ag from the East
Dome target (see Calibre news release dated September 15, 2016). Assay results were
also 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 objective of the diamond drilling program in
2017 is to evaluate the resource potential of the Guapinol, Riscos
de Oro and East Dome veins. If the
results are positive, they will be used to complete a National
Instrument 43-101 resource estimate. In 2017, IAMGOLD expects to
vest an initial 51% interest in the project, upon which it may
elect to enter the second Option to earn up to a 70% interest in
the project by completing additional exploration expenditures
totaling $4.5 million and making
$450,000 in payments to Calibre
Mining by May 26, 2020.
Other
Loma Larga (formerly Quimsacocha) - Ecuador
IAMGOLD, through its 35.6%
equity ownership of INV Metals, has an indirect interest in the
Loma Larga gold, silver and copper project in southern Ecuador. INV Metals 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). On
February 16, 2017, INV Metals
announced a C$27.6 million bought
deal financing, including a C$3.6
million over-allotment option, for advancing the development
of the Loma Larga project and for general corporate purposes. Our
intent is to maintain our existing equity ownership interest of
35.6%.
End Notes (excluding tables)
1
|
Cost of sales,
excluding depreciation, as disclosed in note 35 of the Company's
annual consolidated financial statements on an attributable ounce
sold basis (excluding the non-controlling interests of 10% at
Essakane and 5% at Rosebel) does not include Joint Ventures which
are accounted for on an equity basis.
|
2
|
This is a non-GAAP
measure. Refer to the reconciliation in the non-GAAP performance
measures section of the MD&A.
|
3
|
The DART refers to
the number of days away, restricted duty or job transfer incidents
that occur per 100 employees.
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
(In millions of U.S. dollars)
|
December 31,
2016
|
|
December 31,
2015
|
Assets
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
652.0
|
|
$
|
481.0
|
|
Restricted
cash
|
92.0
|
|
67.0
|
|
Gold bullion (market
value - $nil; December 31, 2015 - $143.3)
|
—
|
|
97.4
|
|
Income taxes
receivable
|
—
|
|
3.1
|
|
Receivables and other
current assets
|
61.0
|
|
79.5
|
|
Inventories
|
207.9
|
|
223.9
|
|
1,012.9
|
|
951.9
|
Non-current
assets
|
|
|
|
Investments in
associates and joint ventures
|
52.6
|
|
56.6
|
|
Property, plant and
equipment
|
1,868.2
|
|
1,853.8
|
|
Exploration and
evaluation assets
|
169.2
|
|
155.1
|
|
Income taxes
receivable
|
29.2
|
|
35.1
|
|
Restricted
cash
|
18.7
|
|
9.1
|
|
Other
assets
|
249.7
|
|
189.8
|
|
2,387.6
|
|
2,299.5
|
|
$
|
3,400.5
|
|
$
|
3,251.4
|
Liabilities and
Equity
|
|
|
Current
liabilities
|
|
|
|
Bank
indebtedness
|
$
|
—
|
|
$
|
70.0
|
|
Accounts payable and
accrued liabilities
|
162.9
|
|
143.2
|
|
Income taxes
payable
|
14.7
|
|
14.6
|
|
Current portion of
provisions
|
15.8
|
|
13.4
|
|
Current portion of
other liabilities
|
2.1
|
|
9.1
|
|
195.5
|
|
250.3
|
Non-current
liabilities
|
|
|
|
Deferred income tax
liabilities
|
159.0
|
|
145.8
|
|
Provisions
|
289.8
|
|
289.3
|
|
Long-term
debt
|
485.1
|
|
628.1
|
|
933.9
|
|
1,063.2
|
|
1,129.4
|
|
1,313.5
|
Equity
|
|
|
Equity attributable
to IAMGOLD Corporation shareholders
|
|
|
|
Common
shares
|
2,628.2
|
|
2,366.2
|
|
Contributed
surplus
|
40.1
|
|
38.2
|
|
Deficit
|
(409.7)
|
|
(461.2)
|
|
Accumulated other
comprehensive loss
|
(36.9)
|
|
(47.4)
|
|
2,221.7
|
|
1,895.8
|
Non-controlling
interests
|
49.4
|
|
42.1
|
|
2,271.1
|
|
1,937.9
|
|
|
|
|
$
|
3,400.5
|
|
$
|
3,251.4
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
|
|
|
Three months
ended
December 31,
(unaudited)
|
Years ended
December 31,
|
(In millions of U.S.
dollars, except per share amounts)
|
2016
|
2015
|
2016
|
2015
|
Continuing
Operations
|
|
|
|
|
Revenues
|
$
|
252.5
|
$
|
238.2
|
$
|
987.1
|
$
|
917.0
|
Cost of
sales
|
233.4
|
283.5
|
884.9
|
971.6
|
Gross profit
(loss)
|
19.1
|
(45.3)
|
102.2
|
(54.6)
|
General and
administrative expenses
|
(10.0)
|
(9.2)
|
(38.8)
|
(39.1)
|
Exploration
expenses
|
(11.1)
|
(6.6)
|
(31.7)
|
(30.7)
|
Impairment
charges
|
—
|
(621.3)
|
—
|
(621.3)
|
Other income
(expenses)
|
11.0
|
(1.5)
|
0.8
|
(16.3)
|
Earnings (loss)
from operations
|
9.0
|
(683.9)
|
32.5
|
(762.0)
|
Share of net earnings
(loss) from investments in associates and joint ventures, net of
income taxes
|
(1.4)
|
4.4
|
6.1
|
9.7
|
Finance
costs
|
(3.5)
|
(9.1)
|
(25.2)
|
(38.3)
|
Foreign exchange gain
(loss)
|
(6.2)
|
(3.4)
|
(5.2)
|
0.5
|
Interest income and
derivatives and other investment gains
|
(1.7)
|
(10.5)
|
87.0
|
6.3
|
Earnings (loss)
before income taxes
|
(3.8)
|
(702.5)
|
95.2
|
(783.8)
|
Income
taxes
|
1.0
|
25.0
|
(33.4)
|
(11.5)
|
Net earnings
(loss) from continuing operations
|
(2.8)
|
(677.5)
|
61.8
|
(795.3)
|
Net earnings from
discontinued operations
|
—
|
—
|
—
|
41.8
|
Net earnings
(loss)
|
$
|
(2.8)
|
$
|
(677.5)
|
$
|
61.8
|
$
|
(753.5)
|
Net earnings
(loss) from continuing operations attributable to
|
|
|
|
|
Equity holders of
IAMGOLD Corporation
|
$
|
(5.3)
|
$
|
(675.9)
|
$
|
52.6
|
$
|
(797.1)
|
Non-controlling
interests
|
2.5
|
(1.6)
|
9.2
|
1.8
|
Net earnings (loss)
from continuing operations
|
$
|
(2.8)
|
$
|
(677.5)
|
$
|
61.8
|
$
|
(795.3)
|
Net earnings
(loss) attributable to
|
|
|
|
Equity holders of
IAMGOLD Corporation
|
$
|
(5.3)
|
$
|
(675.9)
|
$
|
52.6
|
$
|
(755.3)
|
Non-controlling
interests
|
2.5
|
(1.6)
|
9.2
|
1.8
|
Net earnings
(loss)
|
$
|
(2.8)
|
$
|
(677.5)
|
$
|
61.8
|
$
|
(753.5)
|
Attributable to
equity holders of IAMGOLD Corporation
|
|
|
|
|
Weighted average
number of common shares outstanding
(in millions)
|
|
|
|
|
|
Basic
|
451.8
|
391.6
|
420.8
|
389.9
|
|
Diluted
|
451.8
|
391.6
|
423.9
|
389.9
|
Earnings (loss) per
share from continuing operations ($ per share)
|
|
|
|
|
|
Basic
|
$
|
(0.01)
|
$
|
(1.73)
|
$
|
0.13
|
$
|
(2.04)
|
|
Diluted
|
$
|
(0.01)
|
$
|
(1.73)
|
$
|
0.12
|
$
|
(2.04)
|
Basic and diluted
earnings per share from discontinued operations ($ per
share)
|
$
|
—
|
$
|
0.01
|
$
|
—
|
$
|
0.11
|
Earnings (loss) per
share ($ per share)
|
|
|
|
|
|
Basic
|
$
|
(0.01)
|
$
|
(1.73)
|
$
|
0.13
|
$
|
(1.93)
|
|
Diluted
|
$
|
(0.01)
|
$
|
(1.73)
|
$
|
0.12
|
$
|
(1.93)
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
Three months
ended
December 31,
(unaudited)
|
Years ended
December 31,
|
(In millions of U.S.
dollars)
|
2016
|
2015
|
2016
|
2015
|
Net earnings
(loss)
|
$
|
(2.8)
|
$
|
(677.5)
|
$
|
61.8
|
$
|
(753.5)
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
Items that will not
be reclassified to the statements of earnings
|
|
|
|
|
Movement in
marketable securities fair value reserve
|
|
|
|
|
Net unrealized change
in fair value of marketable securities
|
(4.4)
|
6.0
|
7.5
|
(0.1)
|
Net realized change
in fair value of marketable securities
|
(0.8)
|
(6.5)
|
(2.8)
|
(1.2)
|
Tax impact
|
0.4
|
0.3
|
(1.2)
|
0.7
|
|
(4.8)
|
(0.2)
|
3.5
|
(0.6)
|
Items that may be
reclassified to the statements of earnings
|
|
|
|
|
Movement in cash
flow hedge fair value reserve from continuing
operations
|
|
|
|
|
Effective portion of
changes in fair value of cash flow hedges
|
(0.7)
|
(7.8)
|
5.2
|
(36.3)
|
Time value of options
and forward contracts excluded from hedge relationship
|
(2.8)
|
0.4
|
(4.2)
|
3.8
|
Net change in fair
value of cash flow hedges reclassified to the statements of
earnings
|
1.2
|
3.4
|
6.4
|
20.6
|
Time value of options
and forward contracts reclassified to the statements of
earnings
|
—
|
(0.1)
|
—
|
(0.6)
|
Tax impact
|
0.4
|
0.5
|
(0.2)
|
0.1
|
Movement in cash
flow hedge fair value reserve from discontinued operations, net of
income taxes
|
—
|
—
|
—
|
1.6
|
|
(1.9)
|
(3.6)
|
7.2
|
(10.8)
|
Currency
translation adjustment
|
(0.2)
|
0.5
|
(0.3)
|
(0.8)
|
Other
|
—
|
(0.3)
|
—
|
(0.3)
|
Total other
comprehensive income (loss)
|
(6.9)
|
(3.6)
|
10.4
|
(12.5)
|
Comprehensive
income (loss)
|
$
|
(9.7)
|
$
|
(681.1)
|
$
|
72.2
|
$
|
(766.0)
|
|
|
|
|
|
Comprehensive
income (loss) attributable to:
|
|
|
|
|
Equity holders of
IAMGOLD Corporation
|
$
|
(12.2)
|
$
|
(679.5)
|
$
|
63.0
|
$
|
(767.8)
|
Non-controlling
interests
|
2.5
|
(1.6)
|
9.2
|
1.8
|
Comprehensive
income (loss)
|
$
|
(9.7)
|
$
|
(681.1)
|
$
|
72.2
|
$
|
(766.0)
|
|
|
|
|
|
Comprehensive
income (loss) arises from:
|
|
|
|
|
Continuing
operations
|
$
|
(9.7)
|
$
|
(680.8)
|
$
|
72.2
|
$
|
(809.1)
|
Discontinued
operations
|
—
|
(0.3)
|
—
|
43.1
|
Comprehensive
income (loss)
|
$
|
(9.7)
|
$
|
(681.1)
|
$
|
72.2
|
$
|
(766.0)
|
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
Three months
ended
December 31,
(unaudited)
|
Years ended
December 31,
|
(In millions of U.S.
dollars)
|
2016
|
2015
|
2016
|
2015
|
Operating
activities
|
|
|
|
|
Net earnings
(loss)
|
$
|
(2.8)
|
$
|
(677.5)
|
$
|
61.8
|
$
|
(753.5)
|
Adjustments
for:
|
|
|
|
|
|
Finance
costs
|
3.5
|
9.0
|
25.2
|
38.8
|
|
Depreciation
expense
|
68.6
|
64.7
|
263.5
|
264.2
|
|
Changes in asset
retirement obligations at closed sites
|
(13.1)
|
(0.9)
|
(9.8)
|
3.6
|
|
Income tax
expense
|
(1.0)
|
(25.0)
|
33.4
|
11.5
|
|
Derivative loss
(gain)
|
4.3
|
16.9
|
3.0
|
66.6
|
|
Gain on sale of gold
bullion
|
—
|
—
|
(72.9)
|
—
|
|
Share of net earnings
(loss) from investments in associates and joint ventures, net of
income taxes
|
1.4
|
(4.4)
|
(6.1)
|
(9.7)
|
|
Impairment
charges
|
—
|
621.3
|
—
|
621.3
|
|
Gain on sale of
royalty asset
|
—
|
—
|
—
|
(43.5)
|
|
Gain on disposal of
discontinued operations
|
|
(39.0)
|
—
|
(39.0)
|
|
Effects of exchange
rate fluctuation on restricted cash
|
2.8
|
0.2
|
(1.0)
|
0.5
|
|
Effects of exchange
rate fluctuation on cash and cash equivalents
|
2.3
|
5.8
|
0.6
|
19.5
|
|
Other non-cash
items
|
8.6
|
50.2
|
9.6
|
23.3
|
Adjustments for cash
items:
|
|
|
|
|
|
Dividends from joint
ventures
|
—
|
8.2
|
11.3
|
12.3
|
|
Settlement of
derivatives
|
(0.8)
|
(86.5)
|
(9.5)
|
(128.3)
|
|
Disbursements related
to asset retirement obligations
|
(0.7)
|
(0.5)
|
(2.7)
|
(2.5)
|
|
Other
|
—
|
(0.1)
|
—
|
(0.1)
|
Movements in non-cash
working capital items and non-current ore stockpiles
|
1.9
|
22.6
|
24.3
|
(41.2)
|
Cash from operating
activities, before income taxes paid
|
75.0
|
(35.0)
|
330.7
|
43.8
|
Income tax
paid
|
(9.8)
|
(2.3)
|
(16.3)
|
(5.5)
|
Net cash from
(used in) operating activities
|
65.2
|
(37.3)
|
314.4
|
38.3
|
Investing
activities
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
|
|
Capital
expenditures
|
(51.2)
|
(49.2)
|
(269.5)
|
(191.4)
|
|
Capitalized borrowing
costs
|
—
|
(6.6)
|
(17.3)
|
(12.3)
|
Proceeds from sale of
gold bullion
|
—
|
—
|
170.3
|
—
|
Net proceeds from
disposal of discontinued operations
|
—
|
—
|
—
|
491.2
|
Proceeds from sale of
royalty asset
|
—
|
—
|
—
|
52.5
|
Decrease (increase)
in restricted cash
|
10.0
|
(67.0)
|
(33.6)
|
(67.9)
|
Acquisition of
Saramacca exploration and evaluation asset
|
(10.0)
|
—
|
(10.0)
|
—
|
Capital expenditures
for exploration and evaluation assets
|
(0.6)
|
(4.2)
|
(4.1)
|
(9.3)
|
Acquisition of
non-controlling interests
|
—
|
(8.4)
|
—
|
(8.4)
|
Other investing
activities
|
0.7
|
(0.8)
|
(0.5)
|
11.7
|
Net cash from
(used in) investing activities
|
(51.1)
|
(136.2)
|
(164.7)
|
266.1
|
Financing
activities
|
|
|
|
|
Interest
paid
|
—
|
(15.6)
|
(24.6)
|
(33.1)
|
Net proceeds from
issuance of common shares
|
—
|
—
|
220.1
|
—
|
Proceeds from
issuance of flow-through common shares
|
13.3
|
3.7
|
43.6
|
43.0
|
Purchase of senior
unsecured notes
|
—
|
—
|
(141.5)
|
(11.5)
|
Proceeds (repayment)
of credit facility
|
—
|
70.0
|
(70.0)
|
70.0
|
Repayment of finance
leases
|
—
|
(28.3)
|
—
|
(28.3)
|
Other financing
activities
|
(0.4)
|
(2.3)
|
(5.7)
|
(14.5)
|
Net cash from
financing activities
|
12.9
|
27.5
|
21.9
|
25.6
|
Effects of
exchange rate fluctuation on cash and cash
equivalents
|
(2.3)
|
(5.8)
|
(0.6)
|
(19.5)
|
Increase
(decrease) in cash and cash equivalents
|
24.7
|
(151.8)
|
171.0
|
310.5
|
Cash and cash
equivalents, beginning of the period
|
627.3
|
632.8
|
481.0
|
158.5
|
Cash and cash
equivalents held for sale, beginning of the period
|
—
|
—
|
—
|
12.0
|
Cash and cash
equivalents, end of the year
|
$
|
652.0
|
$
|
481.0
|
$
|
652.0
|
$
|
481.0
|
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 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: 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 "2016 Highlights" and
"2017 Guidance", and include, without limitation, statements with
respect to: the Company's guidance for production, cost of sales,
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