UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of January, 2019
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.
[ ] Form 20-F [ x ] 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 registrants
home country), or under the rules of the home country exchange on which the
registrants 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
registrants 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.
Yes [ ]
No [ x ]
If "Yes" is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): 82- ________
SUBMITTED HEREWITH
Exhibits
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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(Registrant) |
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Date: January 16, 2019 |
By: |
/s/ Tim Bradburn |
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Tim Bradburn |
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Title: |
Vice President, Legal and Corporate Secretary |
IAMGOLD MEETS PRODUCTION AND COST GUIDANCE FOR
2018;
PROVIDES 2019 GUIDANCE
All 2018 numbers are preliminary and unaudited and subject to
final adjustment.
All amounts are expressed in US dollars, unless
otherwise indicated.
Toronto, Ontario, January 16, 2019 IAMGOLD Corporation
(IAMGOLD or the Company) today announced preliminary operating results
for 2018 and guidance for 2019.
IAMGOLD continued to execute on its operating strategy in
2018, said IAMGOLDs President and CEO, Steve Letwin. We anticipate annual
production of 882,000, including another record production year at Essakane, and
expect to meet cost guidance. We continue to progress value-enhancing
initiatives and delivered on a number of project milestones in 2018, including:
Feasibility Studies at Côté Gold and Boto Gold, declaration of reserves at
Saramacca, initial resource estimates at Gossey, Eastern Borosi, and Monster
Lake, in addition to a number of low-capex, short payback projects. IAMGOLD is
building a growth pipeline, which is expected to drive production to 1.2 to 1.3
million ounces by 2022, while decreasing all-in sustaining costs below $850 an
ounce.
Performance Highlights for 2018
- Attributable gold production of 882,000 ounces; near the high end of
guidance of 850,000 to 900,000 ounces; fourth quarter production of 231,000
ounces.
- Attributable gold sales of 872,000 ounces.
- Total cash costs1 expected at the high end of guidance of $750
to $800 per ounce produced.
- All-in sustaining costs1 expected near the high end of guidance
of $990 to $1,070 per ounce sold.
- Significant increase in reserves at Essakane, Rosebel, Côté Gold, and Boto
Gold and a maiden reserve declaration at Saramacca.
- Capital expenditures approximate guidance of $305 million ± 5%.
- Cash taxes expected to be approximately $40 million.
- Approximately $734 million in cash, cash equivalents and money market
investments as at December 31, 2018.
- Credit facility doubled to $500 million and the maturity extended to 2023.
Guidance Highlights for 2019
- Attributable gold production between 810,000 and 870,000 ounces.
- Cost of sales between $790 and $840 per ounce.
- Total cash costs between $765 and $815 per ounce.
- All-in sustaining costs between $1,030 and $1,080 per ounce.
- All-in sustaining costs and cash costs per ounce expected to trend
downwards in second half.
- Building on 2018 exploration success, we continue to target additional
resources at Saramacca, Essakane, Boto, Siribaya, Monster Lake, Nelligan and
Eastern Borosi.
- Capital expenditures of $335 million ± 5%, with sustaining capital at a
level consistent with 2018 and non-sustaining capital higher, mainly due to
the development of Saramacca.
- Côté Gold Project investment decision expected in the first quarter of
2019; associated capital expenditures will be provided at that time.
1 Non-GAAP measure.
2018 PRELIMINARY OPERATING RESULTS
Full year attributable production of 882,000 ounces was near
the high end of guidance of 850,000 to 900,000 ounces. Attributable gold
production for the fourth quarter 2018 was 231,000 ounces.
The following table presents attributable production by
operating site:
ATTRIBUTABLE
GOLD PRODUCTION |
(000s oz) |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
2018 |
Guidance |
Owner-Operator |
|
|
|
|
|
|
Essakane (90%) |
109 |
97 |
96 |
103 |
405 |
390 405 |
Rosebel (95%) |
65 |
70 |
67 |
85 |
287 |
280 295 |
Westwood (100%) |
40 |
31 |
30 |
28 |
129 |
125 135 |
Total Owner-Operator |
214 |
198 |
193 |
216 |
821 |
795 835 |
Joint Ventures |
15 |
16 |
15 |
15 |
61 |
55 65 |
TOTAL |
229 |
214 |
208 |
231 |
882 |
850 900 |
Total cash costs for 2018 are expected at the high end of
guidance of $750 to 800 per ounce produced, and all-in sustaining costs are
expected to be near the high end of guidance of $990 to $1,070 per ounce
sold.
2019 PRODUCTION AND COST GUIDANCE
Full Year Guidance1 |
2019 |
Essakane (000s oz)
|
375 390 |
Rosebel (000s oz)
|
315 330 |
Westwood (000s oz) |
100 120 |
Total owner-operator
production (000s oz) |
790 840 |
Sadiola Joint Venture (000s oz) |
20 30 |
Total attributable production (000s oz) |
810 870 |
|
|
Total cost of sales2 ($/oz) |
$790 $840 |
|
|
Total cash
costs3,4 owner-operator ($/oz) |
$765 $815 |
Total cash costs3,5 ($/oz) |
$765 $815 |
|
|
All-in sustaining
costs3,4 owner-operator ($/oz) |
$1,030 $1,080 |
All-in sustaining costs3,5 ($/oz) |
$1,030 $1,080 |
1 Guidance for 2019 is based on the following
assumptions:
- Average gold price per ounce of $1,225;
- Average crude oil price per barrel of $62;
- U.S. dollar value of the Euro of $1.15; and
- Canadian dollar value of the U.S. dollar of $1.30
2 Cost of sales, excluding depreciation, is on an
attributable ounce sold basis (excluding the non-controlling interest of 10% at
Essakane and 5% at Rosebel) and does not include the Sadiola Joint Venture which
is accounted for on an equity basis.
3 Non-GAAP
measure.
4 Consists of Rosebel, Essakane, and Westwood on an
attributable basis.
5 Consists of Rosebel, Essakane, Westwood, and
the Sadiola joint venture on an attributable basis.
page 2 of 6
For 2019, we provide production guidance between 810,000 and
870,000 ounces, with owner-operator production remaining flat, planned cessation
of Sadiola operations during 2019, ongoing ramp up at Westwood and increased
production at Rosbel. Following two years of record output at Essakane, we
expect production to be lower than 2018 due to lower availability of high grade
zones, partially offset by higher recoveries resulting from the positive impact
of the newly commissioned oxygen plant. At Rosebel, we expect production to be
higher than 2018 due to higher grades, the inclusion of Saramacca ore in the
second half of the year, and increased recoveries. Westwood production is
expected to be between 100,000 to 120,000 ounces as mining and development
activity continues to ramp up, while respecting our safety protocols for mining
in areas where seismicity is present. As Sadiola is expected to deplete oxide
ore stockpiles in the first half of 2019, production is expected to decrease to
between 20,000 and 30,000 ounces.
All-in sustaining cost guidance of $1,030 to $1,080 per ounce
for 2019 reflects continued progress with initiatives to improve productivity
and optimize performance across the sites. Readers are reminded that
the guidance we provide is annual and that quarterly variation is normal.
We expect 2019 production to be lighter in the first half of the year,
reflecting lower production at Rosebel as a result of mine sequencing. As
production builds in the second half of the year at Rosebel with production
commencing at Saramacca, cash costs and all-in sustaining costs per ounce are
expected to trend lower.
2019 CAPITAL EXPENDITURE GUIDANCE
|
|
Sustaining1 |
|
|
Non-Sustaining |
|
|
|
|
($
millions) |
|
|
|
|
(Development/ |
|
|
Total2 |
|
|
|
|
|
|
Expansion) |
|
|
|
|
Essakane |
$ |
75 |
|
$ |
50 |
|
$ |
125 |
|
Rosebel |
|
70 |
|
|
75 |
|
|
145 |
|
Westwood |
|
15
|
|
|
30
|
|
|
45 |
|
Owner-operator |
|
160 |
|
|
155 |
|
|
315 |
|
Corporate and Development Projects |
|
- |
|
|
20
|
|
|
20 |
|
Total owner-operator |
|
160 |
|
|
175 |
|
|
335 |
|
Sadiola (Joint Venture) |
|
- |
|
|
- |
|
|
- |
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Total3,4
(±5%) |
$ |
160 |
|
$ |
175 |
|
$ |
335 |
|
1 Sustaining capital includes capitalized stripping
of $40 million for Essakane and $30 million for Rosebel.
2
Includes $16 million of capitalized exploration expenditures. See Exploration
Plan 2019 table in the following section.
3 Capitalized borrowing
costs are not included.
4 In addition to the above capital
expenditures, $10 million in total principal lease payments are expected.
In 2019, we expect capital spending to be $335 million ± 5%.
The increase in spending over 2018 reflects advancement of the companys growth
projects as outlined in the non-sustaining capital section below. Sustaining
capital is expected to remain at a level similar to 2018. We anticipate a
construction decision on the Côté Gold project in the first quarter of 2019.
Associated capital expenditures will be provided at that time.
Non-Sustaining
Rosebels
non-sustaining capital of $75 million is for the development of Saramacca as we
target a production start in the second half of 2019. Essakanes non-sustaining
capital of $50 million is mainly for tailings facility liners, tailings
thickening plant, and the planned mill upgrade. Westwoods non-sustaining
capital of $30 million is mainly for expansion/ramp-up development. The $20
million for Corporate and Development Projects is mainly related to the Côté
Gold project Early Works.
Sustaining Capital
Sustaining capital
guidance of $160 million is expected to be at a level similar to 2018. Total
capitalized stripping, which is included in sustaining capital of $70 million,
is higher than 2018 primarily due to higher capitalized stripping at Rosebel.
page 3 of 6
2019 EXPLORATION PLAN
Through an active and sustained exploration program, we have
not only successfully increased Mineral Resources over the past two years, but
also nearly doubled our Mineral Reserves, net of depletion, over the same
period. Our exploration program is focused on continuing to upgrade Resources to
Reserves, and the discovery of new ounces through our wholly-owned and joint
venture projects in the Americas and West Africa, as well as through the
targeting of satellite deposits and resource expansions near our existing mines.
In 2019, we maintained our budget for exploration projects of $60 million, which
includes continued evaluation of satellite targets at Essakane in Burkina Faso,
evaluation of underground potential of Saramacca and other prospects along the
Saramacca-Brokolonko trend near Rosebel in Suriname, and the initiation of
delineation drilling at the newly optioned Rouyn-Yorbeau property near Westwood
in Quebec. In addition, we plan to continue exploration of targets near the Côté
Gold and Boto Gold development projects, and advancing our industry leading
portfolio of advanced to early-stage Greenfield projects.
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2018
Actual |
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2019 Plan |
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($ millions) |
|
Capitalized |
|
|
Expensed |
|
|
Total |
|
|
Capitalized2 |
|
|
Expensed |
|
|
Total |
|
Exploration projects
- greenfield |
$ |
2 |
|
$ |
29 |
|
$ |
31 |
|
$ |
- |
|
$ |
34 |
|
$ |
34 |
|
Exploration projects - brownfield1 |
|
16 |
|
|
10 |
|
|
26 |
|
|
16 |
|
|
10 |
|
|
26 |
|
Exploration Projects |
|
18 |
|
|
39 |
|
|
57 |
|
|
16 |
|
|
44 |
|
|
60 |
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Feasibility and other studies |
|
24 |
|
|
- |
|
|
24 |
|
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- |
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- |
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- |
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Total Exploration |
$ |
42 |
|
$ |
39 |
|
$ |
81 |
|
$ |
16 |
|
$ |
44 |
|
$ |
60 |
|
1 Includes near mine exploration and resource
development of $13 million for 2018 Actual and $13 million for 2019 Plan.
2 The capitalized portion of the 2019 Plan of $16 million is
included in our capital spending guidance of $335 million ± 5%.
CONFERENCE CALL
IAMGOLD will release its fourth quarter and full year 2018
financial results after market hours on Wednesday, February 20th,
2019. A conference call will be held on Thursday, February 21, 2019 at 8:30 a.m.
(Eastern Standard Time) for a discussion with management regarding IAMGOLDs
2018 fourth quarter and full-year operating performance and financial results. A
webcast of the conference call will be available through IAMGOLDs website -
www.iamgold.com.
Conference Call Information: North America Toll-Free:
1-800-319-4610 or International Number: 1-604-638-5340.
A replay of this conference call will be accessible for one
month following the call by dialing: North America toll-free: 1-800-319-6413 or
International Number: 1-604-638-9010, passcode: 2863#.
CAUTIONARY STATEMENT ON
FORWARD-LOOKING INFORMATION
All information included in this news release, including any information
as to the Companys future financial or operating performance, and other
statements that express managements 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 headings "Guidance Highlights for
2019", "2019 Production and Cost Guidance", 2019 Capital Expenditure Guidance,
and "2019 Exploration Plan", and include, without limitation, statements with
respect to: the Companys 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
managements 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", "superior",
"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, and, as
such, undue reliance must not be placed on them. 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 Companys estimated
future results, performance or achievements expressed or implied by those
forward-looking statements. Forward-looking statements are in no way 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 Companys credit rating; contests over title to
properties, particularly title to undeveloped properties; and the risks involved
in the exploration, development and mining business. Risks and unknowns inherent
in IAMGOLD's operations and projects include the inaccuracy of estimated
reserves and resources, metallurgical recoveries, capital and operating costs,
and the future price of gold. Exploration and 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 IAMGOLDs estimates or IAMGOLD could fail to obtain the
governmental approvals necessary for the continued development or operation of a
project.
page 4 of 6
For a comprehensive discussion of the risks faced by the
Company, and which may cause the actual financial results, operating performance
or achievements of IAMGOLD to be materially different from the companys
estimated future results, operating performance or achievements expressed or
implied by forward-looking information or forward-looking statements, please
refer to the Companys 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.
page 5 of 6
For further information please contact:
Indi Gopinathan, Investor Relations Lead, IAMGOLD
Corporation
Tel: (416) 360-4743 Mobile: (416) 388-6883
Martin Dumont, Senior Analyst Investor Relations,
IAMGOLD Corporation
Tel: (416) 933-5783 Mobile: (647) 967-9942
IAMGOLD Corporation 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
Newsfiles website at www.newsfilecorp.com.
All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué,
veuillez consulter le
http://www.iamgold.com/French/accueil/default.aspx
page 6 of 6
This regulatory filing also includes additional resources:
exhibit99-1.pdf
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