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, 2017
for more information.
TORONTO, Feb. 21, 2018 /PRNewswire/ - IAMGOLD
Corporation ("IAMGOLD" or the "Company") reported its
consolidated financial and operating results for the quarter and
year ended December 31, 2017.
"It was a year of outstanding accomplishments," said IAMGOLD's
President and CEO, Steve Letwin.
"Robust operating performance, including record production at
Essakane, and continued cost improvements drove gross profit up 50%
and we ended the year with $1 billion
in liquidity. Exploration results were, and continue to be,
exceptional. Gold reserves rose 86% to 14.5 million ounces, as
significant increases at Rosebel and Côté Gold were followed by a
1.4 million ounce reserve estimate at our Boto Gold Project. Boto's
recent pre-feasibility results indicate the potential for a
long-life, low-cost mine. As we deliver on our strategy to
increase net asset value per share, our core assets are proving to
be significant catalysts for growth. Last month we secured the
exploration rights for Brokolonko near Saramacca, another milestone
in our consolidation strategy at Rosebel. In 2019, we expect
production from Saramacca and potentially heap leaching at Essakane
soon after. A ramp-up to full production at Westwood is anticipated in 2020, followed by a
potential production start at Côté Gold in 2021."
2017 Highlights
Operating Performance
- Attributable gold production of 882,000 oz at top end of
guidance; up 8% from 2016.
- Production from owner-operator sites up 11% from 2016; Record
production at Essakane.
- Attributable gold sales of 871,000 oz up 8% from 2016.
- Cost of sales1 of $783/oz sold, down $11/oz from 2016.
- All-in sustaining costs2 of $1,003/oz sold, down $54/oz from 2016.
- Total cash costs2 of $755/oz produced, up $16/oz from 2016.
- Gold margin2 of $506/oz, virtually unchanged from 2016.
- Capital expenditures of $220.5
million within guidance of $225
million ±5%.
Financial Results
- Revenues of $1,094.9 million, up
11% from 2016.
- Gross profit of $152.9 million,
up 50% from 2016.
- Net earnings attributable to equity holders of $501.6 million ($1.08 per share), up $449.0 million ($0.95 per share) from 2016 primarily due to
impairment reversals at the Côté Gold Project and the Rosebel
mine.
- Adjusted net earnings2 attributable to equity
holders of $29.3 million
($0.06 per share2), up
$25.4 million ($0.05 per share) from 2016.
- Net cash from operating activities of $295.3 million, down $15.8
million from 2016.
- Net cash from operating activities before changes in working
capital2 of $294.0
million, up $2.5 million from
2016.
- Cash, cash equivalents, short-term investments in money market
instruments, and restricted cash totalling $815.8 million at December
31, 2017, up $53.1 million
from December 31, 2016.
Strategic Developments
- As at December 31, 2017
attributable proven and probable gold reserves were 14.5 million
ounces; up 86% from the end of 2016. Attributable measured and
indicated resources (including reserves) were 24.7 million ounces
and attributable inferred resources were 8.8 million ounces; up 6%
and 44%, respectively, from the end of 2016.
- Rosebel's attributable reserves increased by 69% from the end
of 2016 to 3.3 million ounces as at December
31, 2017, reflecting mine planning optimization and cost
reductions enabling access to additional ounces.
- Declared initial resource estimate for the Saramacca gold
deposit near the Rosebel mine, comprising 1.0 million indicated
ounces grading 2.20 g/t Au and 0.5 million inferred ounces grading
1.18 g/t Au (on a 100% basis). Subsequent infill and expansion
drilling results identified additional high-grade intersections.
Highlights included; 3.47 g/t Au over 39.0 metres; 4.50 g/t Au over
34.5 metres and 67.39 g/t Au over 6.0 metres. These, together with
remaining drill results, will be incorporated into an updated
resource model in 2018.
- Completed pre-feasibility study for the Côté Gold Project, with
highlights including the conversion of 3.8 million attributable
ounces of resources to probable reserves and a 17-year mine life
with average annual attributable production of 207,000 ounces and
life-of-mine all-in sustaining costs of $689 per ounce sold.
- Completed sale of a 30% interest in the Côté Gold Project to
Sumitomo Metal Mining for $195
million and established a (70:30) joint venture.
- Acquired 100% ownership in Merrex Gold Inc., providing us with
a 100% interest in the Siribaya Project in Mali.
- Resumed operating at a normal production level at Westwood.
- Amended credit facility, with maturity extended by two years to
March 2022 on more favourable terms
and the option to add $100 million to
the existing fully committed $250
million.
- Refinancing of Senior Notes reduced long-term debt and extended
maturity by five-years to 2025.
Subsequent to Year-end
- Granted exploration rights by the Government of Suriname to the
Brokolonko property located just northwest of Saramacca, a property
believed to be on the same mineralization trend as Saramacca.
- Reported high-grade drilling results from the 2017 drilling
program for the Diakha Deposit at the Siribaya Project in
Mali. Highlights from infill
drilling included 18.0 metres grading 11.06 g/t Au, including 6.0
metres grading 32.45 g/t Au, and from expansion drilling 16.0
metres grading 7.65 g/t Au, including 4.0 metres grading 28.94 g/t
Au.
- Announced positive pre-feasibility results for Boto Gold
Project in Senegal. As at
December 31, 2017, Boto had an
estimated 1.4 million ounces of probable reserves grading 1.64 g/t
Au. Indicated resources (including reserves) increased by 23% to
1.9 million ounces grading 1.60 g/t Au and inferred resources
increased by 375% to 594,000 ounces grading 1.66 g/t Au from the
end of 2016. Pre-feasibility highlights include a 13.5-year mine
life with life-of-mine average annual production of nearly 100,000
ounces, and all-in sustaining costs of $829 per ounce sold. A feasibility study has been
initiated.
Upcoming Growth Catalysts
- Preliminary reserve estimate expected for Saramacca H2/18;
integrated scheduling with Rosebel's resources to commence in 2018;
production start expected H2/19.
- Completion of pre-feasibility study for Essakane's Heap Leach
Project expected Q2/18.
- Commissioning of oxygen plant to improve recoveries at Essakane
expected end of 2018.
- Completion of 15 megawatt-peak solar power plant at Essakane
expected end of Q1/18.
- Completion of Boto Gold
feasibility study expected H2/18.
- Westwood ramp-up to full
production expected by 2020.
- Completion of feasibility study at Côté Gold expected H1/19;
potential production start 2021.
- Expansion of exploration programs at Saramacca and satellite
prospects at Essakane.
- Further exploration at Brokolonko to confirm mineralization and
advance to resource stage.
SUMMARY OF
FINANCIAL AND OPERATING RESULTS
|
|
|
|
Three months
ended
December 31,
|
Years ended
December 31,
|
Financial Results
($ millions, except where noted)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
$
|
291.1
|
$
|
252.5
|
$
|
1,094.9
|
$
|
987.1
|
Cost of
sales
|
$
|
250.0
|
$
|
233.4
|
$
|
942.0
|
$
|
884.9
|
Gross
profit
|
$
|
41.1
|
$
|
19.1
|
$
|
152.9
|
$
|
102.2
|
Net earnings (loss)
attributable to equity holders of IAMGOLD
|
$
|
(17.7)
|
$
|
(5.3)
|
$
|
501.6
|
$
|
52.6
|
Net earnings (loss)
attributable to equity holders ($/share)
|
$
|
(0.04)
|
$
|
(0.01)
|
$
|
1.08
|
$
|
0.13
|
Adjusted net earnings
(loss) attributable to equity holders of
IAMGOLD1
|
$
|
(13.8)
|
$
|
3.3
|
$
|
29.3
|
$
|
3.9
|
Adjusted net earnings
(loss) attributable to equity holders
($/share)1
|
$
|
(0.03)
|
$
|
0.01
|
$
|
0.06
|
$
|
0.01
|
Net cash from
operating activities
|
$
|
65.2
|
$
|
63.8
|
$
|
295.3
|
$
|
311.1
|
Net cash from
operating activities before changes in working
capital1
|
$
|
68.2
|
$
|
62.6
|
$
|
294.0
|
$
|
291.5
|
Key Operating
Statistics
|
|
|
|
Gold sales –
attributable (000s oz)
|
230
|
218
|
871
|
808
|
Gold production –
attributable (000s oz)
|
228
|
215
|
882
|
813
|
Average realized gold
price1 ($/oz)
|
$
|
1,277
|
$
|
1,190
|
$
|
1,261
|
$
|
1,244
|
Cost of
sales2 ($/oz)
|
$
|
802
|
$
|
784
|
$
|
783
|
$
|
794
|
Total cash
costs1 ($/oz)
|
$
|
751
|
$
|
740
|
$
|
755
|
$
|
739
|
All-in sustaining
costs1 ($/oz)
|
$
|
1,071
|
$
|
995
|
$
|
1,003
|
$
|
1,057
|
Gold
margin1 ($/oz)
|
$
|
526
|
$
|
450
|
$
|
506
|
$
|
505
|
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 37 of the Company's
annual consolidated financial statements is on an attributable
ounce sold basis (excluding the non-controlling interests of 10% at
Essakane and 5% at Rosebel) and doesn't include Joint Ventures
which are accounted for on an equity basis.
|
FULL YEAR AND FOURTH QUARTER 2017
HIGHLIGHTS
Financial Performance
- Revenues for 2017 were $1,094.9
million, up $107.8 million or
11% from 2016 primarily due to higher sales volume at Westwood ($70.6
million), Essakane ($11.9
million) and Rosebel ($9.6
million), combined with a higher realized gold price
($14.5 million). Revenues for the
fourth quarter 2017 were $291.1
million, up $38.6 million or
15% from the same prior year period primarily due to higher sales
volume at Westwood ($21.0 million) and Essakane ($4.8 million), and a higher realized gold price
($19.9 million), partially offset by
lower sales at Rosebel ($7.6
million).
- Cost of sales for 2017 was $942.0
million, up $57.1 million or
6% from 2016. The increase was due to higher operating costs
($52.1 million), depreciation
($4.1 million) and royalty expense
($0.9 million). Operating costs were
higher mainly due to a 73,000 attributable ounce increase in sales
at our owner-operator sites, with sales nearly doubling at
Westwood and higher sales at both
Rosebel and Essakane. Cost of sales for the fourth quarter 2017 was
$250.0 million, up $16.6 million or 7% from the same prior year
period. The increase was due to higher operating costs
($16.1 million) and royalty expense
($0.5 million) as depreciation
remained unchanged. Operating costs were higher primarily due to a
15,000 attributable ounce increase in sales, with Westwood's sales doubling from the same prior
year period.
- Depreciation expense for 2017 was $265.4
million, up $4.1 million from
2016, primarily due to higher amortization of capitalized stripping
and higher production, partially offset by lower depreciation at
Rosebel due to an increase in reserves. Depreciation expense for
the fourth quarter 2017 was $68.2
million, unchanged from the same prior year period primarily
due to the increase in reserves at Rosebel offset by higher
amortization of capitalized stripping.
- Income tax expense for 2017 was $97.6
million, up $64.2 million from
2016. Income tax expense for 2017 comprised current income tax
expense of $59.7 million (2016 -
$21.7 million) and deferred tax
expense of $37.9 million (2016 -
$11.7 million). The increase in
income tax expense in 2017 was primarily due to differences in the
level of taxable income in IAMGOLD's operating jurisdictions from
one period to the next and changes in deferred tax assets and
liabilities as a result of impairment reversals.
- Net earnings attributable to equity holders for 2017 were
$501.6 million ($1.08 per share), up $449.0 million ($0.95 per share) from 2016. The increase was due
to impairment reversals relating to the Côté Gold Project and the
Rosebel mine ($524.1 million), and
higher gross profit ($50.7 million),
partially offset by the gain on the sale of gold bullion in 2016
($72.9 million) and higher income
taxes ($64.2 million) in 2017. Net
loss attributable to equity holders for the fourth quarter 2017 was
$17.7 million ($0.04 per share), up $12.4
million ($0.03 per share) from
the same prior year period. The increase was due to higher income
tax expense ($31.3 million),
partially offset by a higher share of net earnings from investments
in associates and joint ventures ($6.2
million), lower foreign exchange loss ($4.7 million), higher interest and other
investment income ($3.6 million) and
lower finance costs ($2.2
million).
- Adjusted net earnings attributable to equity
holders2 for 2017 were $29.3
million ($0.06 per
share2), up $25.4 million
($0.05 per share2) from
2016. Adjusted net loss attributable to equity holders for the
fourth quarter 2017 was $13.8 million
($0.03 per share2),
compared to adjusted net earnings attributable to equity holders of
$3.3 million ($0.01 per share2) in the same prior
year period.
- Net cash from operating activities for 2017 was $295.3 million, down $15.8 from 2016. The decrease was due to an
increase in income tax paid ($33.7
million) and changes in the movement of non-cash working
capital items ($18.3 million),
partially offset by higher earnings after non-cash adjustments
($36.8 million). Net cash from
operating activities for the fourth quarter 2017 was $65.2 million, up $1.4
million from the same prior year period.
- Net cash from operating activities before changes in working
capital2 for 2017 was $294.0
million, up $2.5 million from
2016. Net cash from operating activities before changes in working
capital2 for the fourth quarter 2017 was $68.2 million, up $5.6
million from the same prior year period.
Financial Position
- We ended the year in a strong financial position with cash,
cash equivalents, short-term investments in money market
instruments, and restricted cash totalling $815.8 million at December
31, 2017, up $53.1 million
from December 31, 2016. The increase
was primarily due to net proceeds from the issuance of the 7%
Senior Notes ($393.6 million), which
extended the term of our debt by five years to 2025. A continued
focus on improving costs contributed to the generation of
$295.3 million in cash from operating
activities. Further, the Company received net proceeds from the
sale of a 30% interest in the Côté Gold Project, to form a joint
venture with Sumitomo Metal Mining Co., Ltd. ($96.5 million). We also benefited from proceeds
from the issuance of flow-through shares ($15.1 million). The increase was partially offset
by the redemption of the 6.75% Senior Notes ($505.6 million), and spending on Property, plant
and equipment and Exploration and evaluation assets, including
capitalized borrowing costs ($234.5
million).
Production and Costs
- Attributable gold production, inclusive of joint venture
operations, was 882,000 ounces in 2017, up 69,000 ounces from 2016.
The increase was primarily due to the continued ramp-up at
Westwood (60,000 ounces), higher
throughput at Essakane (12,000 ounces) and Rosebel (6,000 ounces),
partially offset by lower grades at Sadiola (7,000 ounces), and the
closure of Yatela (2,000 ounces). Attributable gold production,
inclusive of joint venture operations, was 228,000 ounces in the
fourth quarter 2017, up 13,000 ounces from the same prior year
period. The increase was due to the continued ramp-up at
Westwood (11,000 ounces) and
higher throughput at Essakane (6,000 ounces), partially offset by
lower grades at Rosebel (4,000 ounces).
- Attributable gold sales, inclusive of joint venture operations,
were 871,000 ounces in 2017, up 63,000 ounces from 2016, primarily
due to higher sales at Westwood
(57,000 ounces), Essakane (8,000 ounces), and Rosebel (8,000
ounces), partially offset by lower sales at the Joint Ventures
(10,000 ounces). Attributable gold sales, inclusive of joint
venture operations, were 230,000 ounces for the fourth quarter
2017, up 12,000 ounces from the same prior year period, primarily
due to higher sales at Westwood
(18,000 ounces) and Essakane (3,000 ounces), partially offset by
lower sales at Rosebel (6,000 ounces) and the Joint Ventures (3,000
ounces).
- Cost of sales1 per ounce for 2017 was $783, down 1% from 2016 due to higher sales
volume, partially offset by lower capitalized stripping and higher
energy costs. Cost of sales per ounce for the fourth quarter 2017
was $802, up 2% from the same prior
year period primarily due to higher energy costs, and a weaker U.S.
dollar relative to the euro and the Canadian dollar, partially
offset by higher sales volume.
- Total cash costs2 per ounce produced for 2017 were
$755, up 2% from 2016 primarily due
to lower capitalized stripping, and higher energy costs. Total cash
costs for the fourth quarter 2017 were $751 per ounce produced, up 2% from the same
prior year period primarily due to higher energy costs, and a
weaker U.S. dollar relative to the euro and the Canadian
dollar.
- The normalization of Westwood's costs was discontinued in the
second quarter 2017, and as such, total cash costs for the year
ended and fourth quarter 2017 included a reduction of $1 and $nil per ounce, respectively (2016 -
$32 and $44 per ounce). Also included in total cash costs
for the year ended and fourth quarter 2017 were realized derivative
gains from hedging programs of $3 and
$7 per ounce, respectively (2016 -
losses of $1 and $nil per
ounce).
- All-in sustaining costs2 per ounce sold for 2017
were $1,003, down 5% from 2016
primarily as a result of lower sustaining capital expenditures.
All-in sustaining costs1 per ounce sold for the fourth
quarter 2017 were $1,071, up 8% from
the same prior year period primarily as a result of higher
sustaining capital expenditures and higher cost of sales.
- As noted above, with the normalization of Westwood's costs discontinued in the second
quarter 2017, all-in sustaining costs for the year ended and fourth
quarter 2017 included a reduction of $1 and $nil per ounce, respectively (2016 -
$33 and $43 per ounce). Also included in all-in
sustaining costs for the year ended and fourth quarter 2017 were
realized derivative gains from hedging programs of $4 and $9 per
ounce, respectively (2016 - losses of $1 and $nil).
Commitment to Zero Harm Continues
- The DART rate3, representing the frequency of all
types of serious injuries across IAMGOLD, was 0.52 in 2017, below
our target of 0.56. We regret the fatality of an employee at the
Westwood mine during the first
quarter of 2017.
2018 GUIDANCE
Refer to the January
16, 2018 news release
Attributable Gold Production - 850,000 to 900,000
oz
Costs
Cost of
Sales1/oz
|
$765
- $815
|
Total Cash
Costs2/oz produced
|
$750
- $800
|
All-in Sustaining
Costs2/oz sold
|
$990 -
$1,070
|
Attributable gold production in 2018 is expected to trend
upwards in the second half of the year. Westwood will continue to focus on underground
development, with 125,000 to 135,000 ounces expected for the year.
Rosebel's higher grades and improving productivity are expected to
drive production higher (295,000 to 310,000 expected) despite lower
throughput anticipated with the proportion of hard rock approaching
60%. At Essakane (380,000 to 395,000 ounces expected), grades and
recoveries are expected to increase while throughput is expected to
be lower than the record throughput in 2017. The Sadiola Joint
Venture is expected to produce between 50,000 and 60,000 ounces.
With the continued focus on performance optimization and cost
reductions across the sites, we expect total cash costs2
and all-in sustaining costs2 per ounce to trend
downwards in the second half of the year.
Capital Expenditures - $365 million ± 5%
Capital expenditures in 2018 are expected to be significantly
higher than the $220.5 million spent
in 2017 as a result of advancing multiple growth projects as
outlined below in the non-sustaining capital section.
Sustaining Capital - $140
million - Consistent with 2017 spending.
Sustaining capital guidance of $140
million is similar to 2017. While total capitalized
stripping of $45 million is expected
to be at a level similar to 2017, an increase is expected at
Essakane reflecting higher mining activity at Falagountou, with an
offsetting decrease expected at Rosebel as strip ratios decrease as
the ore body is reached in active phases. Rosebel's strip ratios
are expected to be higher in 2019.
Non-Sustaining Capital (Development/Expansion) - $225 million - Advancing growth projects.
Non-sustaining capital guidance of $225
million includes $85 million
at Rosebel, predominantly for initial development work at
Saramacca, with a production start expected in the second half of
2019; $75 million at Essakane, which
includes an initial $30 million for
the Heap Leach Project, with construction expected to commence in
the second half of 2018; and $45
million at Westwood
primarily for expansion/ramp-up development. The $15 million for corporate and development
projects is primarily related to the Côté Gold Project feasibility
study targeted for completion in the first half of 2019. The
$5 million for Sadiola includes
previous commitments related to the Sulphide Project. Capital
spending estimates could be updated throughout the year as
additional studies are completed.
Depreciation
Depreciation expense in 2018 is expected to be between
$275 and $285
million.
Income Taxes
Cash taxes in 2018 are expected to range between $40 and $55
million. Additionally, adjustments to deferred tax assets
and/or liabilities may be recorded during the year.
ATTRIBUTABLE GOLD
PRODUCTION AND COSTS
|
|
|
|
|
|
Gold
Production
(000s oz)
|
Cost of
Sales1 ($ per ounce)
|
Total Cash
Costs3 ($ per ounce
produced)
|
All-in
Sustaining
Costs3
($ per ounce sold)
|
Three months
ended
December 31,
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
Owner-operator
|
|
|
|
|
|
|
|
|
Essakane
(90%)
|
102
|
96
|
$
|
792
|
$
|
725
|
$
|
715
|
$
|
686
|
$
|
990
|
$
|
948
|
Rosebel
(95%)
|
79
|
83
|
|
766
|
|
710
|
|
700
|
|
667
|
|
1,018
|
|
799
|
Westwood
(100%)2
|
29
|
18
|
|
909
|
|
1,452
|
|
928
|
|
880
|
|
1,017
|
|
1,281
|
Owner-operator4
|
210
|
197
|
$
|
802
|
$
|
784
|
|
739
|
|
695
|
|
1,068
|
|
966
|
Joint
Ventures
|
18
|
18
|
|
|
|
|
|
882
|
|
1,231
|
|
1,114
|
|
1,265
|
Total
operations
|
228
|
215
|
|
|
|
|
$
|
751
|
$
|
740
|
$
|
1,071
|
$
|
995
|
Cost of
sales1 ($/oz)
|
|
|
$
|
802
|
$
|
784
|
|
|
|
|
|
|
|
|
Cash costs, excluding
royalties
|
|
|
|
|
|
|
$
|
698
|
$
|
686
|
|
|
|
|
Royalties
|
|
|
|
|
|
|
|
53
|
|
54
|
|
|
|
|
Total cash
costs3
|
|
|
|
|
|
|
$
|
751
|
$
|
740
|
|
|
|
|
All-in sustaining
costs3
|
|
|
|
|
|
|
|
|
|
|
$
|
1,071
|
$
|
995
|
|
|
|
|
|
Gold
Production
(000s oz)
|
Cost of
Sales1 ($ per ounce)
|
Total Cash
Costs3 ($ per ounce
produced)
|
All-in
Sustaining
Costs3
($ per ounce sold)
|
Years ended
December 31,
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
Owner-operator
|
|
|
|
|
|
|
|
|
Essakane
(90%)
|
389
|
377
|
$
|
785
|
$
|
716
|
$
|
738
|
$
|
668
|
$
|
957
|
$
|
977
|
Rosebel
(95%)
|
302
|
296
|
|
755
|
|
768
|
|
716
|
|
729
|
|
931
|
|
988
|
Westwood
(100%)2
|
125
|
65
|
|
844
|
|
1,324
|
|
824
|
|
894
|
|
972
|
|
1,182
|
Owner-operator4
|
816
|
738
|
$
|
783
|
$
|
794
|
|
743
|
|
712
|
|
1,001
|
|
1,056
|
Joint
Ventures
|
66
|
75
|
|
|
|
|
|
909
|
|
996
|
|
1,023
|
|
1,067
|
Total
operations
|
882
|
813
|
|
|
|
|
$
|
755
|
$
|
739
|
$
|
1,003
|
$
|
1,057
|
Cost of
sales1 ($/oz)
|
|
|
$
|
783
|
$
|
794
|
|
|
|
|
|
|
|
|
Cash costs, excluding
royalties
|
|
|
|
|
|
|
$
|
703
|
$
|
683
|
|
|
|
|
Royalties
|
|
|
|
|
|
|
|
52
|
|
56
|
|
|
|
|
Total cash
costs3
|
|
|
|
|
|
|
$
|
755
|
$
|
739
|
|
|
|
|
All-in sustaining
costs3
|
|
|
|
|
|
|
|
|
|
|
$
|
1,003
|
$
|
1,057
|
1
|
Cost of sales,
excluding depreciation, as disclosed in note 37 of the Company's
annual consolidated financial statements is on an attributable
ounce sold basis (excluding the non-controlling interests of 10% at
Essakane and 5% at Rosebel) and does not include Joint Ventures
which are accounted for on an equity basis.
|
2
|
Cost of sales per
ounce for Westwood does not include the impact of normalization of
costs for the fourth quarter and year ended 2017 of $nil and $6 per
ounce (2016 - $518 and $385), respectively.
|
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.
|
4
|
Owner-operator cost
of sales and all-in sustaining costs include corporate general and
administrative costs. Refer to all-in sustaining costs
reconciliation on page 46 of the MD&A.
|
OPERATIONS ANALYSIS BY MINE SITE
Essakane Mine - Burkina Faso
(IAMGOLD interest - 90%)
Essakane achieved record gold production in 2017 as mill
throughput exceeded nameplate capacity. This reflected an updated
SAG mill liner design and improved operating and maintenance
practices, which increased mill capacity, speed, and circuit
availability.
Attributable gold production of 102,000 ounces for the fourth
quarter and 389,000 ounces for the full year 2017 was up 6% and 3%
from the same prior year periods, respectively. The increases were
due to higher throughput and recoveries, partially offset by lower
grades.
Mill throughput of 13.9 million tonnes in 2017 exceeded
nameplate capacity of 10.8 million tonnes, despite 86% hard
rock. And mill throughput for the fourth quarter was higher
than the same prior year period despite 85% hard rock content (2016
- 65%).
Due to mine sequencing, grades were lower in the fourth quarter
2017 compared to the same prior year period. Mining activities
increased as a result of ongoing initiatives to increase equipment
availability and productivity, including the addition of two
production drills and a loader. Mill recoveries continue to improve
as mining continues in non-graphitic zones.
Cost of sales per ounce was $792
for the fourth quarter 2017 and $785
for the full year, up 9% and 10%, respectively, from the same prior
year periods. The increases were primarily due to lower
capitalized stripping costs due to mine sequencing, higher energy
costs, higher processing costs due to increased throughput and a
higher proportion of hard rock, and a weaker US dollar relative to
the euro.
Total cash costs per ounce produced were $715 for the fourth quarter 2017 and $738 for the full year, up 4% and 10%,
respectively, from the same prior year periods. The increases were
mainly due to higher costs of sales for the reasons mentioned
above. Total cash costs per ounce for the fourth quarter and full
year 2017 included the positive impact of realized derivative gains
from hedging programs of $12 and
$5 per ounce, respectively (2016 -
losses of $1 for both periods).
All-in sustaining costs per ounce sold were $990 for the fourth quarter 2017, up 4% from the
same prior year period mainly due to higher cost of sales,
partially offset by higher sales volume and lower sustaining
capital expenditures. All-in sustaining costs per ounce were
$957 for the full year 2017, lower
than the previous year by 2% mainly due to lower sustaining capital
expenditures and higher sales volume, partially offset by higher
cost of sales. Included in all-in sustaining costs for the fourth
quarter and full year 2017 was the positive impact of realized
derivative gains from hedging programs of $14 and $6 per
ounce, respectively (2016 - losses of $1 and $nil).
Outlook
Essakane's attributable production for 2018 is expected to be
between 380,000 and 395,000 ounces. Essakane continues to focus on
optimizing production by increasing mining and milling efficiencies
at higher proportions of hard rock. To improve recoveries, we
expect to complete the geometallurgical study by the end of the
first quarter 2018. The study is expected to improve the ability to
better identify pockets of graphitic ore. The oxygen plant, which
is expected to increase recoveries through improved leach kinetics
and improve the efficiency of the circuit by reducing reagent
consumption, is to be commissioned at the end of 2018.
The pre-feasibility study on the Heap Leach Project is expected
to be completed by the second quarter 2018. A heap leach facility
could provide a low-cost method for processing marginal and low
grade mineralization as well as some existing stockpiles, which,
together with the carbon-in-leach (CIL) plant, would provide
significant upside potential to the site's annual production.
Additionally, a combined heap leach/CIL operation provides a strong
opportunity to justify additional pushbacks to extend the life of
the operation.
The construction of the solar power plant, which commenced
during the second quarter 2017, is expected to be completed by the
end of the first quarter 2018.
Essakane continues to focus on resource expansion in areas
adjacent to and at depth below the Essakane pit.
Essakane's strong mill performance, ongoing performance
optimization, growth potential from heap leaching, and a highly
prospective land package, provide significant upside to its current
life of mine plan.
Rosebel Mine - Suriname (IAMGOLD interest - 95%)
Attributable gold production for the fourth quarter 2017 was
79,000 ounces compared to 83,000 ounces in the same prior year
period. The lower production was due mainly to lower grades.
Despite 49% hard rock content in the fourth quarter 2017 (2016 -
26%), throughput continued to benefit from major mill improvements
completed in 2016. Further improvements to maximize SAG mill
performance and reduce power consumption are on-going. For the full
year, attributable production was 302,000 ounces, up 2% from 2016
due to higher throughput and grades, partially offset by lower
recoveries.
Cost of sales per ounce was $766
for the fourth quarter 2017, 8% higher than the same prior year
period primarily due to higher energy costs combined with lower
sales volume. Cost of sales per ounce for 2017 was $755 per ounce, 2% lower than 2016 primarily due
to higher sales volume, partially offset by higher energy
costs.
Total cash costs per ounce produced were $700 for the fourth quarter 2017, 5% higher than
the same prior year period primarily due to higher energy costs
combined with lower production. Total cash costs per ounce were
$716 for 2017, 2% lower than 2016
primarily due to higher production, partially offset by higher
energy costs.
All-in sustaining costs per ounce sold were $1,018 for the fourth quarter 2017, 27% higher
than the same prior year period primarily due to higher sustaining
capital expenditures. All-in sustaining costs per ounce were
$931 for 2017, 6% lower than 2016
primarily due to lower sustaining capital expenditures.
Outlook
Rosebel's attributable production for 2018 is expected to be
between 295,000 and 310,000 ounces. The site will continue to work
at optimizing mining capacity by improving drill yield and
increasing the payload of the hauling fleet. At the same time,
initiatives to further reduce costs continue, including
improvements in pit dewatering, which in turn will lower dilution
and increase tire life. Although mill throughput is expected to
decrease relative to 2017 with the proportion of hard rock
approaching 60%, the decrease is expected to be offset by
improvements in grade and recovery rates.
Rosebel's Reserves increased 69% as at December 31, 2017 (estimates exclude
Saramacca)
As at December 31, 2017, we
reported total estimated attributable proven and probable gold
reserves at Rosebel of 3.3 million ounces grading 1.0 g/t Au, a 69%
increase from the end of 2016. Total attributable measured and
indicated gold resources (inclusive of reserves) estimated for
Rosebel increased by 51% to 8.6 million ounces grading 0.95 g/t Au,
and estimated attributable inferred resources increased by 327% to
2.6 million ounces grading 1.0 g/t Au. (see news release dated
February 12, 2018). There were no
changes in the gold price assumptions of $1,200 per ounce for reserves and $1,500 per ounce for resources. The increases
were mainly due to mine design optimization, cost reductions, and
near-pit exploration.
Initial Resource Estimate for Saramacca - Targeting
Production in 2019
Within a year of acquiring the Saramacca property located
approximately 25 kilometres south of the mill, we declared an
initial resource estimate on September 5,
2017. The resource is estimated at 1.0 million indicated
ounces and 0.5 million inferred ounces on a 100% basis. With the
deposit open along strike and at depth there is significant
potential to expand the resource. Drilling in the second half of
the year aimed to increase confidence in the current resource,
target expansions and identify additional mineralized zones. By the
end of the year, 29,775 metres of drilling had been completed, with
results identifying additional high-grade intersections from infill
and expansion drilling. Highlights included 3.47 g/t Au over 39.0
metres, 4.50 g/t Au over 34.5 metres, and 67.39 g/t Au over 6.0
metres (see news release November 16,
2017). Results will be incorporated into an updated
resource model in 2018.
It is our intention to complete the permitting work and to
generate a preliminary reserve estimate for Saramacca during the
second half of 2018. An Environmental and Social Impact Study and
preliminary engineering work on mine design and infrastructure are
underway. Metallurgical testing will refine the recovery
assumptions, test the crushing and grinding characteristics of the
mineralization, and investigate the metallurgical variability
across the deposit. Using the new block model as a basis, new mine
designs and integrated scheduling with the main Rosebel resources
will commence in 2018. Rosebel is working to advance the deposit
towards production in the second half of 2019. Given the higher
grade (indicated resource grade more than double Rosebel's average
reserve grade) and abundance of soft ore (approximately 60%
of the resources), we expect Saramacca to have a significant
positive impact on Rosebel's cost profile once integrated into the
mine plan.
Granted Exploration Rights to Brokolonko
Property
On January 24, 2018, we announced
the signing of an agreement with the Government of Suriname
granting us the exploration rights to the Brokolonko property,
located just northwest of the Saramacca property. Brokolonko is
believed to be located on the same mineralization trend as
Saramacca, with the potential to yield another source of
higher-grade softer rock that could further extend the life of the
mine and improve its cost profile. Significant future exploration
will be required to confirm mineralization and to advance it to a
resource stage (see news release dated January 24, 2018).
Rosebel's continued success with performance optimization
initiatives, significant reserve expansion, the Saramacca resource,
and further consolidation of prospective land packages within the
vicinity of the mill, will allow for continued and improved
profitability and extend the life of the mine.
Westwood Mine - Canada
(IAMGOLD interest - 100%)
Gold production for the fourth quarter and year ended 2017 was
29,000 ounces and 125,000 ounces, up 61% and 92%, respectively,
from the same prior year periods. The increased production was
primarily due to the continued ramp-up resulting in increased
tonnes mined and higher throughput. While head grades to the mill
for the quarter and the year were higher than the same prior year
period, they were lower than the grades mined due to the processing
of marginal ore stockpiles to use available mill capacity as the
mine continued to ramp-up. Head grades excluding marginal ore for
the fourth quarter and year ended 2017 were 8.01 g/t and 7.8 g/t,
respectively (2016 - 8.51 g/t and 7.2 g/t).
During the fourth quarter, underground development continued to
open up access to new mining areas with lateral and vertical
development of approximately 2,800 and 400 metres, respectively,
averaging 35 metres per day. Westwood completed 18.1 kilometres of
development in 2017, including lateral and vertical development of
15.8 and 2.3 kilometres, respectively, with a focus on ramp
breakthroughs and infrastructure development in future development
blocks at lower levels.
Cost of sales per ounce for the fourth quarter and year ended
2017 of $909 and $844 were 37% and 36% lower, respectively, than
the same prior year periods primarily due to higher sales volume
resulting from the continued ramp-up.
Total cash costs per ounce produced for the fourth quarter 2017
were $928, up 5% from the same prior
year period primarily due to the impact of a weaker U.S. dollar
relative to the Canadian dollar. For the full year, total cash
costs per ounce of $824 were 8% lower
than 2016 due to higher production with the continued ramp-up.
All-in sustaining costs per ounce sold were $1,017 for the fourth quarter 2017 and
$972 for the full year, down
21% and 18%, respectively, from the same prior year periods,
primarily due to lower cost of sales and lower sustaining capital
expenditures.
Westwood had been normalizing
costs attributed to inventory in accordance with International
Financial Reporting Standards since the seismic event in
May 2015. Normalization of these
costs ended at the onset of the second quarter 2017 when
Westwood reached normal production
levels. The Company normalized costs for the fourth quarter and
year-ended 2017 by $nil and $0.7
million, respectively (2016 - $9.4
million and $26.4 million).
The Company reduced total cash costs and all-in sustaining costs
for the fourth quarter 2017 by $nil per ounce produced and sold,
respectively (2016 - $551 and
$518), and for the year ended 2017 by
$6 per ounce produced and sold (2016
- $409 and $385).
Outlook
In 2018, Westwood expects to
produce between 125,000 and 135,000 ounces, with production planned
from two of the six designed mining blocks. With the focus on
development activities in the production and expansion blocks, we
expect to meet 2018 production and cost targets while continuing to
ramp up to full production by 2020. In 2018, we plan to complete 12
kilometres of lateral and vertical development.
Sadiola Mine - Mali (IAMGOLD
interest - 41%)
Attributable gold production of 18,000 ounces for the fourth
quarter 2017 was slightly higher than the same prior year period as
a result of higher grades, partially offset by lower throughput.
For the full year, attributable gold production of 63,000 ounces
was 10% lower than the prior year as a result of lower grades,
partially offset by higher throughput.
Total cash cost per ounce produced of $880 for the fourth quarter 2017 and $903 for the full year were 25% and 7% lower than
the same prior year periods, respectively. All-in sustaining costs
per ounce sold of $1,118 for the
fourth quarter 2017 and $1,014 for
the full year were 14% and 3% lower than the same prior year
periods, respectively. The lower costs in 2017 were the result of a
greater draw down of marginal ore stockpiles
Sadiola is expected to produce between 50,000 and 60,000 ounces
in 2018.
Discussions with the Government of Mali continue regarding the Sadiola Sulphide
Project. Despite the Company's efforts and the benefits the Project
would generate locally and to the Government of Mali, there has been no resolution around the
terms critical to moving the Project forward. Although the Company
remains committed to the Project, upon failing to reach an
agreement the operation will enter a restricted exploitation phase,
and then at a later stage, when stockpiles are exhausted, it will
enter a phase of suspended exploitation (care and maintenance).
DEVELOPMENT PROJECT
Côté Gold Joint Venture Project, Canada
Since acquiring Côté Gold five years ago, we have been
completing activities necessary to advance the project, and in 2017
we achieved significant milestones which have allowed us to move
the project towards development. We completed a preliminary
economic assessment, obtained environmental assessment approvals
from the provincial government following approvals from the federal
government in the previous year, reported positive pre-feasibility
study ("PFS") results, converted nearly six million ounces from
resources to reserves (on a 100% basis), formed a joint-venture
with Sumitomo Metal Mining, and initiated a feasibility study.
The Côté Gold Project in northern Ontario is a 70:30 joint venture between the
operator IAMGOLD and Sumitomo Metal Mining Co. Ltd. The project
hosts estimated mineral reserves as at December 31, 2017 on a 100% project basis
comprising probable reserves of 196.1 million tonnes grading 0.94
g/t Au for 5.9 million ounces. Also on a 100% project basis,
indicated resources (inclusive of reserves) are estimated at 281.2
million tonnes grading 0.89 g/t Au for 8.0 million ounces, and
inferred resources of 76.5 million tonnes grading 0.50 g/t Au for
1.2 million ounces (see news release dated February 12, 2018).
The PFS outlined a potentially economically viable project that
at a $1,250 per ounce gold price
would generate an estimated 14.0% after-tax Internal Rate of
Return. The Project would have a 17-year mine life, producing on
average 207,000 attributable ounces of gold a year at average total
cash costs of $605 per ounce produced
and all-in sustaining costs of $689
per ounce sold. A technical report summarizing the PFS was filed on
SEDAR.
Based on the recommendations from the pre-feasibility study
completed in the second quarter (see news release dated
June 5, 2017), the joint venture
partners working with Wood Group (formerly Amec Foster Wheeler)
have initiated a feasibility study which is now expected to be
completed in the first half of 2019. In the third quarter 2017, a
delineation drilling program commenced with the objective to
upgrade near surface inferred resources to an indicated category as
well as to evaluate grade variation in the starter pit.
Approximately 27,000 metres of diamond drilling were completed by
year-end.
Subject to an acceptable feasibility study, a favourable
development environment and a positive construction decision by the
Côté Gold Joint Venture, commercial production is expected to begin
in 2021.
Regional exploration activities continue within the
516-square-kilometre property surrounding the Côté Gold deposit to
develop and assess exploration targets that could further maximize
our flexibility with respect to any future development
decisions.
EXPLORATION
In 2017, we spent $68 million on
exploration and project studies compared to $44.0 million in 2016. The increase is in line
with a larger planned exploration program and project studies. Of
the $68 million spent in 2017,
$38.4 million was expensed and
$29.6 million capitalized. The
following summarizes the status of our most advanced greenfield
projects:
Wholly-Owned Projects
Boto - Senegal
Subsequent to year-end we announced the results of a
pre-feasibility study ("PFS") completed jointly by IAMGOLD and
Lycopodium Minerals Canada Ltd., with inputs from technical studies
completed by other consultants (see news release dated
February 12, 2018). The PFS is
being used to identify the preferred development option,
demonstrate economic viability of the Project, support a mineral
reserve disclosure, and identify additional work recommended to
support the completion of a feasibility study.
Based on the results of the PFS, the Boto Gold Project hosts
estimated mineral reserves as at December
31, 2017 comprising probable reserves totaling 26.8 million
tonnes grading 1.64 g/t Au for 1.4 million ounces. Indicated
resources (inclusive of reserves) are estimated at 37.4 million
tonnes grading 1.60 g/t Au for 1.9 million ounces and inferred
resources of 11.0 million tonnes grading 1.66 g/t Au for 594,000
ounces (see news release dated February
12, 2018).
The PFS outlines a potentially economically viable project that
at a $1,275 per ounce gold price
would generate an estimated 13.3% after-tax Internal Rate of
Return. The Project would have a 13.5 year mine life, producing on
average 95,000 ounces of gold a year at average direct cash costs
of $707 per ounce produced and all-in
sustaining costs of $829 per ounce
sold. A technical report summarizing the PFS will be filed on
SEDAR.
The PFS recommended the completion of a feasibility study to
validate and detail the elements of the development concept set out
in the PFS. The feasibility study would include additional
drilling, metallurgical testing, engineering and environmental
studies, including hydrological, hydrogeological and geotechnical
analyses. The feasibility study has been initiated and is expected
to be completed in the second half of 2018.
In addition, exploration activities will continue on the Boto
exploration concession to evaluate high priority targets for
additional mineral resources.
Pitangui - Brazil
Effective December 31, 2017,
reported mineral resources at the São Sebastião deposit comprised
an inferred resource of 5.4 million tonnes grading 4.7 g/t Au for
819,000 ounces of gold (see news release dated February 12, 2018).
During 2017, approximately 9,600 metres of diamond drilling were
completed. The objective was to evaluate the up-plunge extension
area of the São Sebastião deposit for additional resources, the
results of which have been incorporated into the resource model,
and to test priority exploration targets for additional zones of
mineralization.
An exploration drilling program totalling approximately 17,000
metres is planned in 2018 to continue testing remaining exploration
targets on the property.
Siribaya – Mali
Effective December 31, 2017, total
resources estimated for the Siribaya Project include indicated
resources of 2.1 million tonnes grading 1.9 g/t Au for 129,000
ounces of gold, and inferred resources of 19.8 million tonnes
grading 1.7 g/t Au for 1.1 million ounces (see news release
dated February 12, 2018).
During 2017, approximately 19,500 metres of diamond and reverse
circulation drilling were completed. The drilling program is
designed to confirm the geometry of the known mineralized zones at
the Diakha deposit, and to extend the gold mineralization north and
south along strike where previous exploration has returned
encouraging results.
Subsequent to year-end, we announced drilling results for the
2017 drilling program, which delineated high-grade structures
within the known resources and confirmed extensions of the
mineralization. Highlights included 6.79 g/t Au over 26.0 metres,
including 20.52 g/t Au over 8.0 metres; 11.06 g/t Au over 18.0
metres, including 32.45 g/t Au over 6.0 metres; 7.65 g/t Au over
16.0 metres, including 28.94 g/t Au over 4.0 metres; and, 2.01 g/t
Au over 50.0 metres, including 9.7 g/t Au over 4.0 metres (see
news release dated January 31,
2018).
Approximately 15,000 metres of drilling is planned for 2018 to
continue testing for resource expansions at the Diakha deposit as
well as to test other identified exploration targets. The drilling
results, along with those from the 2017 program, will be
incorporated into the deposit model and used to update the mineral
resources in 2018.
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.
Monster Lake - Canada
(Option Agreement with TomaGold Corporation)
During 2017, we completed approximately 12,500 metres of diamond
drilling to evaluate the resource potential of the Megane and Lower
zones. Assay results reported during the year included the
following highlights: 5.21 g/t Au over 4.4 metres, 121.67 g/t Au
over 3.1 metres, 85.27 g/t Au over 1.8 metres, 67.42 g/t Au over
3.5 metres, 80.28 g/t Au over 5.0 metres and 39.48 g/t Au over 1.6
metres (see news releases dated May
11 and July 6, 2017). The
results will be used to guide future drilling and will be
incorporated into a deposit model to support the completion of an
initial mineral resource estimate currently in progress.
Nelligan - Canada (Option
Agreement with Vanstar Mining Resources Inc.)
In the first half of the year, we completed approximately 7,700
metres of diamond drilling that largely explored a newly discovered
alteration system hosting gold mineralization located to the north
of the Liam zone. Assay results reported through the year included
the following highlights: 29.9 metres grading 1.29 g/t Au, 24.0
metres grading 1.16 g/t Au, 8.0 metres grading 3.23 g/t Au, 11.3
metres grading 2.78 g/t Au, 34.3 metres grading 2.01 g/t Au,
including 7.66 g/t Au over 4.4 metres, and 11.6 metres grading 2.38
g/t Au (see Vanstar news releases dated June 1 and September 5,
2017).
In 2018, a diamond drilling program totalling approximately
12,000 metres is planned to evaluate the resource potential of this
newly discovered mineralized system.
Eastern Borosi - Nicaragua
(Option Agreement with Calibre Mining Corporation)
During 2017, approximately 9,800 metres of diamond drilling was
completed to evaluate the resource potential of the Guapinol,
Riscos de Oro, East Dome and
Cadillac veins. Reported assay results included the following
highlights: 8.0 metres grading 1.57 g/t Au and 38.3 g/t Ag, 1.8
metres grading 5.69 g/t Au and 71.1 g/t Ag, 4.1 metres grading 0.38
g/t Au and 328.3 g/t Ag, 6.0 metres grading 2.74 g/t Au and 42.5
g/t Ag from the East Dome vein (see Calibre news releases dated
June 2 and August 17, 2017).
An updated NI 43-101 resource estimate is currently in progress
which will incorporate an additional 26,000 metres of drilling
completed over the last four years.
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 Metals news release dated July 14, 2016). A feasibility study commenced
in the second quarter 2017, which is expected to take 18 months to
complete (see INV Metals news release dated June 22, 2017).
End Notes (excluding tables)
1
|
Cost of sales,
excluding depreciation, as disclosed in note 37 of the Company's
annual consolidated financial statements is on an attributable
ounce sold basis (excluding the non-controlling interests of 10% at
Essakane and 5% at Rosebel) and 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,
2017
|
December 31,
2016
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
664.1
|
$
|
652.0
|
|
Restricted
cash
|
|
—
|
|
92.0
|
|
Short-term
investments
|
|
127.2
|
|
—
|
|
Consideration
receivable
|
|
93.8
|
|
—
|
|
Receivables and other
current assets
|
|
75.9
|
|
61.0
|
|
Inventories
|
|
200.0
|
|
207.9
|
|
|
1,161.0
|
|
1,012.9
|
Non-current
assets
|
|
|
|
Investments in
associates and incorporated joint ventures
|
|
69.0
|
|
52.6
|
|
Property, plant and
equipment
|
|
1,940.2
|
|
1,868.2
|
|
Exploration and
evaluation assets
|
|
474.6
|
|
169.2
|
|
Income taxes
receivable
|
|
17.3
|
|
29.2
|
|
Restricted
cash
|
|
24.5
|
|
18.7
|
|
Inventories
|
|
177.6
|
|
156.0
|
|
Other
assets
|
|
102.7
|
|
93.7
|
|
|
2,805.9
|
|
2,387.6
|
|
$
|
3,966.9
|
$
|
3,400.5
|
Liabilities and
Equity
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
196.2
|
$
|
162.9
|
|
Income taxes
payable
|
|
14.9
|
|
14.7
|
|
Current portion of
provisions
|
|
17.1
|
|
15.8
|
|
Other
liabilities
|
|
2.9
|
|
2.1
|
|
|
231.1
|
|
195.5
|
Non-current
liabilities
|
|
|
|
Deferred income tax
liabilities
|
|
198.2
|
|
159.0
|
|
Provisions
|
|
299.0
|
|
289.8
|
|
Long-term
debt
|
|
391.6
|
|
485.1
|
|
Other
liabilities
|
|
0.2
|
|
—
|
|
|
889.0
|
|
933.9
|
|
|
1,120.1
|
|
1,129.4
|
Equity
|
|
|
Equity attributable
to IAMGOLD Corporation shareholders
|
|
|
|
Common
shares
|
|
2,677.8
|
|
2,628.2
|
|
Contributed
surplus
|
|
43.0
|
|
40.1
|
|
Retained earnings
(deficit)
|
|
91.3
|
|
(409.7)
|
|
Accumulated other
comprehensive loss
|
|
(20.5)
|
|
(36.9)
|
|
|
2,791.6
|
|
2,221.7
|
Non-controlling
interests
|
|
55.2
|
|
49.4
|
|
|
2,846.8
|
|
2,271.1
|
Contingencies and
commitments
|
|
|
|
|
|
$
|
3,966.9
|
$
|
3,400.5
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
|
|
|
(Unaudited)
Three months ended
December 31,
|
Years ended
December 31,
|
(In millions of U.S.
dollars, except per share amounts)
|
2017
|
2016
|
2017
|
2016
|
Revenues
|
$
|
291.1
|
$
|
252.5
|
$
|
1,094.9
|
$
|
987.1
|
Cost of
sales
|
|
250.0
|
|
233.4
|
|
942.0
|
|
884.9
|
Gross
profit
|
|
41.1
|
|
19.1
|
|
152.9
|
|
102.2
|
General and
administrative expenses
|
|
(12.5)
|
|
(10.0)
|
|
(40.3)
|
|
(38.8)
|
Exploration
expenses
|
|
(8.8)
|
|
(11.1)
|
|
(38.4)
|
|
(31.7)
|
Reversal of
impairment charges
|
|
—
|
|
—
|
|
524.1
|
|
—
|
Other income
(expenses)
|
|
(10.3)
|
|
11.0
|
|
(18.3)
|
|
0.8
|
Earnings from
operations
|
|
9.5
|
|
9.0
|
|
580.0
|
|
32.5
|
Share of net earnings
(loss) from investments in associates and incorporated joint
ventures, net of income taxes
|
|
4.8
|
|
(1.4)
|
|
15.0
|
|
6.1
|
Finance
costs
|
|
(1.3)
|
|
(3.5)
|
|
(10.9)
|
|
(25.2)
|
Foreign exchange gain
(loss)
|
|
(1.5)
|
|
(6.2)
|
|
7.3
|
|
(5.2)
|
Interest income and
derivatives and other investment gains
|
|
1.9
|
|
(1.7)
|
|
16.7
|
|
87.0
|
Earnings (loss)
before income taxes
|
|
13.4
|
|
(3.8)
|
|
608.1
|
|
95.2
|
Income
taxes
|
|
(30.3)
|
|
1.0
|
|
(97.6)
|
|
(33.4)
|
Net earnings
(loss)
|
$
|
(16.9)
|
$
|
(2.8)
|
$
|
510.5
|
$
|
61.8
|
Net earnings
(loss) attributable to
|
|
|
|
|
|
|
Equity holders of
IAMGOLD Corporation
|
$
|
(17.7)
|
$
|
(5.3)
|
$
|
501.6
|
$
|
52.6
|
Non-controlling
interests
|
|
0.8
|
|
2.5
|
|
8.9
|
9.2
|
Net earnings
(loss)
|
$
|
(16.9)
|
$
|
(2.8)
|
$
|
510.5
|
$
|
61.8
|
Attributable to
equity holders of IAMGOLD Corporation
|
|
|
|
|
Weighted average
number of common shares outstanding
(in millions)
|
|
|
|
|
|
Basic
|
|
465.2
|
|
451.8
|
|
463.0
|
|
420.8
|
|
Diluted
|
|
465.2
|
|
451.8
|
|
467.5
|
|
423.9
|
Earnings (loss) per
share ($ per share)
|
|
|
|
|
|
Basic
|
$
|
(0.04)
|
$
|
(0.01)
|
$
|
1.08
|
$
|
0.13
|
|
Diluted
|
$
|
(0.04)
|
$
|
(0.01)
|
$
|
1.07
|
$
|
0.12
|
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
|
|
|
|
(Unaudited)
Three months ended
December 31,
|
Years ended
December 31,
|
(In millions of U.S.
dollars)
|
2017
|
2016
|
2017
|
2016
|
Net earnings
(loss)
|
$
|
(16.9)
|
$
|
(2.8)
|
$
|
510.5
|
$
|
61.8
|
Other
comprehensive income, 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
|
|
9.9
|
|
(4.4)
|
|
17.9
|
|
7.5
|
Net realized change
in fair value of marketable securities
|
|
(9.1)
|
|
(0.8)
|
|
(10.9)
|
|
(2.8)
|
Tax impact
|
|
(0.3)
|
|
0.4
|
|
(0.6)
|
|
(1.2)
|
|
|
0.5
|
|
(4.8)
|
|
6.4
|
|
3.5
|
Items that may be
reclassified to the statements of earnings
|
|
|
|
|
Movement in cash
flow hedge fair value reserve
|
|
|
|
|
Effective portion of
changes in fair value of cash flow hedges
|
|
4.3
|
|
(0.7)
|
|
16.5
|
|
5.2
|
Time value of options
contracts excluded from hedge relationship
|
|
2.5
|
|
(2.8)
|
|
(1.9)
|
|
(4.2)
|
Net change in fair
value of cash flow hedges reclassified to the statements of
earnings
|
|
(2.0)
|
|
1.2
|
|
(4.0)
|
|
6.4
|
Tax impact
|
|
(0.4)
|
|
0.4
|
|
(0.3)
|
|
(0.2)
|
|
|
4.4
|
|
(1.9)
|
|
10.3
|
|
7.2
|
Currency
translation adjustment
|
|
(0.6)
|
|
(0.2)
|
|
0.8
|
|
(0.3)
|
Total other
comprehensive income (loss)
|
|
4.3
|
|
(6.9)
|
|
17.5
|
|
10.4
|
Comprehensive
income (loss)
|
$
|
(12.6)
|
$
|
(9.7)
|
$
|
528.0
|
$
|
72.2
|
|
|
|
|
|
Comprehensive
income (loss) attributable to:
|
|
|
|
|
Equity holders of
IAMGOLD Corporation
|
$
|
(13.4)
|
$
|
(12.2)
|
$
|
519.1
|
$
|
63.0
|
Non-controlling
interests
|
|
0.8
|
|
2.5
|
|
8.9
|
|
9.2
|
Comprehensive
income (loss)
|
$
|
(12.6)
|
$
|
(9.7)
|
$
|
528.0
|
$
|
72.2
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
(Unaudited)
Three months
ended December 31,
|
Years ended
December 31,
|
(In millions of U.S.
dollars)
|
2017
|
2016
|
2017
|
2016
|
Operating
activities
|
|
|
|
|
Net earnings
(loss)
|
$
|
(16.9)
|
$
|
(2.8)
|
$
|
510.5
|
$
|
61.8
|
Adjustments
for:
|
|
|
|
|
|
Finance
costs
|
|
1.3
|
|
3.5
|
|
10.9
|
|
25.2
|
|
Depreciation
expense
|
|
68.3
|
|
68.6
|
|
266.0
|
|
263.5
|
|
Derivative (gain)
loss
|
|
0.4
|
|
4.3
|
|
(6.9)
|
|
3.0
|
|
Income
taxes
|
|
30.3
|
|
(1.0)
|
|
97.6
|
|
33.4
|
|
Interest
income
|
|
(3.0)
|
|
(1.4)
|
|
(9.4)
|
|
(3.3)
|
|
Reversal of
impairment charges
|
|
—
|
|
—
|
|
(524.1)
|
|
—
|
|
Gain on sale of a 30%
interest in the Côté Gold Project
|
|
—
|
|
—
|
|
(19.2)
|
|
—
|
|
Share of net
(earnings) losses from investments in associates and incorporated
joint ventures, net of income taxes
|
|
(4.8)
|
|
1.4
|
|
(15.0)
|
|
(6.1)
|
|
Write-down of
inventories
|
|
2.3
|
|
0.7
|
|
14.2
|
|
5.7
|
|
Loss on redemption of
6.75% Senior Notes
|
|
—
|
|
—
|
|
20.2
|
|
—
|
|
Gain on sale of gold
bullion
|
|
—
|
|
—
|
|
—
|
|
(72.9)
|
|
Effects of exchange
rate fluctuation on cash and cash equivalents
|
|
(0.1)
|
|
2.3
|
|
(11.4)
|
|
0.6
|
|
Other non-cash
items
|
|
11.6
|
|
(1.7)
|
|
12.1
|
|
(2.2)
|
Adjustments for cash
items:
|
|
|
|
|
|
Dividends from joint
venture
|
|
—
|
|
—
|
|
2.1
|
|
11.3
|
|
Settlement of
derivatives
|
|
1.9
|
|
(0.8)
|
|
1.4
|
|
(9.5)
|
|
Disbursements related
to asset retirement obligations
|
|
(2.0)
|
|
(0.7)
|
|
(5.0)
|
|
(2.7)
|
Movements in non-cash
working capital items and non-current ore stockpiles
|
|
(3.0)
|
|
1.2
|
|
1.3
|
|
19.6
|
Cash from operating
activities, before income tax paid
|
|
86.3
|
|
73.6
|
|
345.3
|
|
327.4
|
Income taxes
paid
|
|
(21.1)
|
|
(9.8)
|
|
(50.0)
|
|
(16.3)
|
Net cash from
operating activities
|
|
65.2
|
|
63.8
|
|
295.3
|
|
311.1
|
Investing
activities
|
|
|
|
|
Capital expenditures
for property, plant and equipment
|
|
(63.0)
|
|
(51.2)
|
|
(197.0)
|
|
(269.5)
|
Capitalized borrowing
costs
|
|
(12.9)
|
|
—
|
|
(24.1)
|
|
(17.3)
|
Purchase of
short-term investments
|
|
99.8
|
|
—
|
|
(127.2)
|
|
—
|
Net proceeds from
sale of a 30% interest in the Côté Gold Project
|
|
—
|
|
—
|
|
96.5
|
|
—
|
Decrease (increase)
in restricted cash
|
|
(0.1)
|
|
10.0
|
|
88.1
|
|
(33.6)
|
Capital expenditures
for exploration and evaluation assets
|
|
(8.9)
|
|
(0.6)
|
|
(13.4)
|
|
(4.1)
|
Interest
received
|
|
2.1
|
|
1.4
|
|
7.7
|
|
3.3
|
Acquisition of
Saramacca exploration and evaluation asset
|
|
(5.0)
|
|
(10.0)
|
|
(5.0)
|
|
(10.0)
|
Purchase of
additional common shares of associate
|
|
—
|
|
—
|
|
(7.4)
|
|
—
|
Proceeds from sale of
gold bullion
|
|
—
|
|
—
|
|
—
|
|
170.3
|
Other investing
activities
|
|
7.7
|
|
0.7
|
|
4.4
|
|
(0.5)
|
Net cash from
(used in) investing activities
|
|
19.7
|
|
(49.7)
|
|
(177.4)
|
|
(161.4)
|
Financing
activities
|
|
|
|
|
Net proceeds from
issuance of 7% Senior Notes
|
|
—
|
|
—
|
|
393.6
|
|
—
|
Redemption of 6.75%
Senior Notes
|
|
—
|
|
—
|
|
(505.6)
|
|
—
|
Proceeds from
issuance of flow-through shares
|
|
—
|
|
13.3
|
|
15.1
|
|
43.6
|
Proceeds from
issuance of shares
|
|
—
|
|
—
|
|
—
|
|
220.1
|
Purchase of 6.75%
Senior Notes
|
|
—
|
|
—
|
|
—
|
|
(141.5)
|
Interest
paid
|
|
(3.3)
|
|
—
|
|
(8.6)
|
|
(24.6)
|
Repayment of credit
facility
|
|
—
|
|
—
|
|
—
|
|
(70.0)
|
Long-term prepayment
for finance lease
|
|
—
|
|
—
|
|
(4.9)
|
|
—
|
Other financing
activities
|
|
(1.2)
|
|
(0.4)
|
|
(6.8)
|
|
(5.7)
|
Net cash from
(used in) financing activities
|
|
(4.5)
|
|
12.9
|
|
(117.2)
|
|
21.9
|
Effects of
exchange rate fluctuation on cash and cash
equivalents
|
|
0.1
|
|
(2.3)
|
|
11.4
|
|
(0.6)
|
Increase in cash
and cash equivalents
|
|
80.5
|
|
24.7
|
|
12.1
|
|
171.0
|
Cash and cash
equivalents, beginning of the period
|
|
583.6
|
|
627.3
|
|
652.0
|
|
481.0
|
Cash and cash
equivalents, end of the year
|
$
|
664.1
|
$
|
652.0
|
$
|
664.1
|
$
|
652.0
|
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 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: 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 "2017 Highlights" and "2018 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",
"transformation", "targets", "significant", "outstanding",
"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.
For further information please contact:
Ken Chernin, VP Investor
Relations, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (416) 388-6883
Laura Young, Director,
Investor Relations, IAMGOLD Corporation
Tel: (416) 933-4952 Mobile: (416) 670-3815
Martin Dumont, Senior
Analyst, Investor Relations
Tel: (416) 933-5783 Mobile: (647) 967-9942
Toll-free: 1-888-464-9999 info@iamgold.com
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 de
presse, veuillez consulter le
http://www.iamgold.com/French/accueil/default.aspx.
SOURCE IAMGOLD Corporation