FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
Report of Foreign Private
Issuer
Pursuant to Rule 13a-16
or 15d-16
of the Securities Exchange
Act of 1934
Date: February 21, 2018
Commission File Number 001-31528
IAMGOLD
Corporation
(Translation of registrant's name into English) |
|
401 Bay Street Suite 3200, PO Box 153 |
Toronto, Ontario, Canada M5H 2Y4 |
Tel: (416) 360-4710
(Address of principal executive offices) |
Indicate by check mark whether the registrant
files or will file annual reports under cover Form 20-F or Form 40-F.
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
|
Note: Regulation
S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report
to security holders. |
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
|
Note: Regulation
S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that
the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant
is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of
the home country exchange on which the registrant’s securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if
discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR. |
Indicate by check mark whether
by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
If
"Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
Description
of Exhibit
Signatures
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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IAMGOLD CORPORATION |
|
|
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Date: February 21, 2018 |
By: |
/s/ Tim Bradburn |
|
Tim Bradburn |
|
Vice President, Legal and Corporate Secretary |
Exhibit 99.1
IAMGOLD Reports Significant Improvements in 2017 Year-end
Results, Including Production and All-in Sustaining Costs, and Achieves Key Strategic Milestones for Continued 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, 2017 for more information.
TORONTO, Feb. 21, 2018 /CNW/ - 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 $829 per ounce sold.
A feasibility study has been initiated. |
Upcoming Growth Catalysts
| · | Preliminary reserve estimate expected for Saramacca
H2/18; integrated scheduling with Rosebel's resources to commence in 2018; production start expected H2/19. |
| · | Completion of pre-feasibility study for Essakane's
Heap Leach Project expected Q2/18. |
| · | Commissioning of oxygen plant to improve recoveries
at Essakane expected end of 2018. |
| · | Completion of 15 megawatt-peak solar power plant at
Essakane expected end of Q1/18. |
| · | Completion of Boto Gold feasibility study expected
H2/18. |
| · | Westwood ramp-up to full production expected by 2020.
|
| · | Completion of feasibility study at Côté
Gold expected H1/19; potential production start 2021. |
| · | Expansion of exploration programs at Saramacca and
satellite prospects at Essakane. |
| · | Further exploration at Brokolonko to confirm mineralization
and advance to resource stage. |
SUMMARY OF FINANCIAL AND OPERATING RESULTS |
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Three months ended
December 31, |
Years ended
December 31, |
Financial Results ($ 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
View original content: http://www.newswire.ca/en/releases/archive/February2018/21/c5772.html
%CIK: 0001203464
CO: IAMGOLD Corporation
CNW 17:05e 21-FEB-18
This regulatory filing also includes additional resources:
ex991.pdf
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