All 2017 numbers are preliminary and unaudited
and subject to final adjustment.
All amounts are
expressed in US dollars, unless otherwise indicated.
TORONTO, Jan. 16, 2018 /PRNewswire/ - IAMGOLD
Corporation ("IAMGOLD" or the "Company") today announced
preliminary operating results for 2017 and guidance for 2018.
"As indicated by the preliminary numbers, we had another year of
solid operating performance," said IAMGOLD's President and CEO,
Steve Letwin. "Annual production of
882,000 ounces was at the top end of our target range, all-in
sustaining costs are expected at the low end of guidance, and we
ended the year with $1 billion in
liquidity. In 2017 we achieved milestones that have ignited our
major growth projects, and now as we head into 2018 it's all about
execution. Our capital spending plan this year includes the
development of Saramacca, the heap leaching project at Essakane,
and the Côté Gold feasibility study. Our continued success in
building our growth pipeline is expected to drive production to 1.2
to 1.3 million ounces by 2022, with all-in sustaining costs below
$850 an ounce."
Performance Highlights for 2017
- Attributable gold production of 882,000 ounces; at the top end
of guidance of 845,000 to 885,000 ounces; fourth quarter production
of 228,000 ounces.
- Attributable gold sales expected to be approximately 870,000
ounces.
- Total cash costs1 expected at mid-point of guidance
of $740 to $780 per ounce.
- All-in sustaining costs1 expected at low end of
guidance of $1,000 to $1,040 per ounce.
- Significant increase in reserves at Rosebel and Côté Gold and a
maiden resource at Saramacca
- Capital expenditures in line with guidance of $225 million.
- Cash taxes expected to be approximately $50 million.
- Approximately $790 million in
cash, cash equivalents and money market investments as at
December 31, 2017.
Guidance Highlights for 2018
- Attributable gold production between 850,000 and 900,000
ounces.
- Cost of sales between $765 and
$815 per ounce.
- Total cash costs between $750 and
$800 per ounce.
- All-in sustaining costs between $990 and $1,070 per
ounce.
- All-in sustaining costs and cash costs per ounce expected to
trend downwards in second half.
- Exploration continues to target additional resources at
Saramacca, Essakane, Boto, Siribaya, Monster Lake, Nelligan and
Eastern Borosi.
- Capital expenditures of $365
million ±5%, with sustaining capital at a level consistent
with 2017 and non-sustaining capital higher mainly due to the
development of Saramacca and Essakane's heap leaching project.
1 Non-GAAP measure.
2017 PRELIMINARY OPERATING RESULTS
Full year attributable production of 882,000 ounces was at the
top end of guidance of 845,000 to 885,000 ounces, with production
from owner-operator sites exceeding guidance and Essakane achieving
record production. Attributable gold production for the fourth
quarter 2017 was 228,000 ounces.
The following table presents attributable production by
operating site:
Attributable Gold
Production
|
(000s
oz)
|
Q1
2017
|
Q2
2017
|
Q3
2017
|
Q4
2017
|
2017
|
Guidance
|
Owner-Operator
|
|
|
|
|
|
|
Essakane
(90%)
|
93
|
101
|
93
|
102
|
389
|
370-380
|
Rosebel
(95%)
|
74
|
74
|
75
|
79
|
302
|
295-305
|
Westwood
(100%)
|
30
|
33
|
33
|
29
|
125
|
115-125
|
Total
Owner-Operator
|
197
|
208
|
201
|
210
|
816
|
780-810
|
Joint
Ventures
|
17
|
15
|
16
|
18
|
66
|
65-75
|
TOTAL
|
214
|
223
|
217
|
228
|
882
|
845-885
|
Total cash costs for 2017 are expected to be at the mid-point of
guidance of $740-$780 an ounce, and all-in sustaining costs are
expected to be at the low end of guidance of $1,000 to $1,040 an
ounce.
2018 PRODUCTION AND COST GUIDANCE
|
|
Full Year
Guidance1
|
2018
|
Essakane (000s
oz)
|
380 –
395
|
Rosebel (000s
oz)
|
295 –
310
|
Westwood (000s
oz)
|
125 –
135
|
Total owner-operator
production (000s oz)
|
800 –
840
|
Sadiola Joint Venture
(000s oz)
|
50 –
60
|
Total attributable
production (000s oz)
|
850 –
900
|
|
|
Total cost of
sales2 ($/oz)
|
$765 –
$815
|
|
|
Total cash
costs3,4 – owner-operator ($/oz)
|
$750 –
$800
|
Total cash
costs3,5 ($/oz)
|
$750 –
$800
|
|
|
All-in sustaining
costs3,4 – owner-operator ($/oz)
|
$990 –
$1,070
|
All-in sustaining
costs3,5 ($/oz)
|
$990 –
$1,070
|
1
|
Guidance for 2018 is
based on the following assumptions:
|
|
- Average gold price per ounce of $1,250;
- Average crude oil price per barrel of $54;
- U.S. dollar value of the Euro of $1.18; and
- Canadian dollar value of the U.S. dollar of $1.26.
|
2
|
Cost of sales,
excluding depreciation, is on an attributable ounce sold basis
(excluding the non-controlling interest of 10% at Essakane and 5%
at Rosebel) and does not include the Joint Ventures which are
accounted for on an equity basis.
|
3
|
Non-GAAP
measure.
|
4
|
Consists of Rosebel,
Essakane, Westwood on an attributable basis.
|
5
|
Consists of Rosebel,
Essakane, Westwood, and the Sadiola joint venture on an
attributable basis.
|
In 2018, we expect production to range between 850,000 and
900,000 ounces. At Rosebel and Essakane, we expect production to be
at a similar level to 2017 due to higher grades, partially offset
by lower throughput. The proportion of hard rock in Rosebel's mill
feed is expected to increase to approximately 60% from 45% in 2017.
Westwood continues to ramp up with
production expected to be between 125,000 and 135,000 ounces.
Blocks 1 and 2 will provide most of the production in 2018, as
infrastructure development continues in blocks 3 and 4. The Sadiola
joint venture is expected to produce between 50,000 and 60,000
ounces. The Yatela joint venture has ceased production and is in
closure mode. Retrenchment is expected to be completed early this
year.
All-in sustaining cost guidance of $990 to $1,070 per
ounce for 2018 reflects continued progress with initiatives to
improve productivity and optimize performance across the sites.
Readers are reminded that the guidance we provide is annual and
that quarterly variation is normal. We expect 2018 production to be
lighter in the first half of the year, reflecting lower production
at Rosebel as a result of mine sequencing. As production builds in
the second half of the year at Rosebel, cash costs and all-in
sustaining costs per ounce are expected to trend lower. We also
expect to see all-in sustaining costs at Essakane trend downwards
in the second half of the year with declining levels of sustaining
capital (including capitalized waste stripping). Therefore, we
expect all-in sustaining costs at the consolidated level to trend
downwards in the third and fourth quarters.
2018 CAPITAL EXPENDITURE GUIDANCE
|
|
|
|
($
millions)
|
Sustaining1
|
Non-Sustaining
(Development/
Expansion)
|
Total2
|
Essakane
|
$
|
75
|
$
|
75
|
$
|
150
|
Rosebel
|
45
|
85
|
130
|
Westwood
|
20
|
45
|
65
|
Owner-operator
|
140
|
205
|
345
|
Corporate and
Development Projects
|
-
|
15
|
15
|
Total
owner-operator
|
140
|
220
|
360
|
Sadiola (Joint
Venture)
|
-
|
5
|
5
|
Total3
(±5%)
|
$
|
140
|
$
|
225
|
$
|
365
|
1
|
Sustaining capital
includes capitalized stripping of $40 million for Essakane and $5
million for Rosebel.
|
2
|
Includes $38 million
of capitalized exploration expenditures. See Exploration Plan 2018
table in the following section.
|
3
|
Capitalized borrowing
costs are not included.
|
In 2018, we expect capital spending to be $365 million ± 5%. The increase in spending over
2017 reflects advancement of the company's growth projects as
outlined in the non-sustaining capital section below. Sustaining
capital is expected to remain at a level similar to 2017.
Non-Sustaining
Rosebel's non-sustaining capital of $85
million is for the development of Saramacca as we target a
production start in 2019. Essakane's non-sustaining capital of
$75 million includes an estimated
$30 million for the heap leaching
project, with the commencement of construction expected in the
second half of the year and the oxygen plant to be commissioned by
the end of 2018. Westwood's
non-sustaining capital of $45 million
is mainly for expansion/ramp-up development and remains at the same
level as 2017. The $5 million in
non-sustaining capital for Sadiola includes previous commitments
related to the Sadiola Sulphide Project. The $15 million for Corporate and Development
Projects is mainly related to the Côté Gold feasibility study
targeted for completion in the first half of 2019.
Sustaining Capital
Sustaining capital guidance of $140
million is expected to be at a level similar to 2017. Total
capitalized stripping, which is included in sustaining capital, of
$45 million is expected to be at a
level similar to 2017, as an increase at Essakane reflecting
increased mining activity at Falagountou will be offset by a
decrease at Rosebel.
Amended Credit Facility
The company's revolving credit facility has been extended by two
years to March 2022 at more
favourable terms. Additionally, the facility has been amended to
include the option to add a further $100
million to the existing fully committed $250 million.
2018 EXPLORATION PLAN
An active and sustained 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 the Americas and West Africa, as well as through the targeting
of soft rock resources near our existing mines. In 2018, we
increased our budget for exploration projects to $60 million to include expanded exploration
programs at our Saramacca project near Rosebel in Suriname and
satellite targets at Essakane in Burkina
Faso. This year we are targeting initial reserve estimates
for both Saramacca and the heap leach project at Essakane. In
addition, we plan to update resource estimates at our Siribaya
Project in Mali and possibly other
projects as results merit. The increase in planned
expenditures for feasibility and other studies is largely due to
the continuation of activities for the Saramacca, Boto Gold and Côté Gold projects.
|
|
|
($
millions)
|
2017
Actual
|
2018
Plan
|
Capitalized
|
Expensed
|
Total
|
Capitalized2
|
Expensed
|
Total
|
Exploration projects
- greenfield
|
$
|
-
|
$
|
25
|
$
|
25
|
$
|
-
|
$
|
32
|
$
|
32
|
Exploration projects
- brownfield1
|
21
|
10
|
31
|
19
|
9
|
28
|
Exploration
Projects
|
21
|
35
|
56
|
19
|
41
|
60
|
Feasibility and other
studies
|
9
|
3
|
12
|
19
|
-
|
19
|
|
|
|
|
|
|
|
Total
Exploration
|
$
|
30
|
$
|
38
|
$
|
68
|
$
|
38
|
$
|
41
|
$
|
79
|
1
|
Excludes expenditures
related to Joint Ventures of $1 million for 2017 Actual, and
includes near mine and resource exploration of $11 million
for 2017 Actual and $15 million for 2018 Plan.
|
2
|
The capitalized
portion of the 2018 Plan of $38 million is included in our capital
spending guidance of $365 million ± 5%.
|
CONFERENCE CALL
A conference call will be held on Thursday, February 22,
2018 at 8:30 a.m. (Eastern Standard Time) for a
discussion with management regarding IAMGOLD`s 2017 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: 1989#.
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 "2018 Production and
Cost Guidance, 2018 Capital Expenditure Guidance and 2018
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", "significant", "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